"The Manifesto"

Special Markets Dialogues was a week or so ago.  As a public service to the 15 people who read the blog (10 of whom were probably there), here's "The Manifesto"--a summary of the high spots we discussed during the two days.  Enjoy...

A group of thought leaders from the incentive, recognition, and promotional products markets recently gathered at Special Markets Dialogues in Myrtle Beach, SC. The discussion covered a wide range of subjects pertinent to the business as it currently is configured and explored strategies to address the challenges facing our market.

The main takeaways were:

• In an age of “Big Data”, we know more about our participants than ever but there is considerable “noise” that distorts our ability to effectively serve our clients. This presents us with an opportunity to become even more of a resource for clients to assist them in understanding what all that data means.

• Our market often pursues a single “Silver Bullet” solution to challenges. We need to increase experimentation of different strategies that will provide more immediate benefits.

• The relevance of programs offering “millions of choices” is beginning to ebb. Clients understand that the right merchandise mix, geared to the participant, is a more effective way to reward and recognize.

• New technologies present a threat to our channel. Retailers are increasingly becoming a destination for product redemption, and our channel must respond to these new capabilities or face marginalization.

• A grassroots effort must be undertaken to protect our market from the possible elimination of IRS Code 274(j), the provision that allows companies to deduct the cost of recognition and safety programs. A change to 274(j) threatens major portions of our business. Again, a “Magic Solution” does not exist and it’s incumbent on all the stakeholders in our channel to influence the process however and wherever they can. Funding is critical to this effort.

Other issues discussed included:

• The prognosis for 2013 is good. Budgets are loosening and there is general optimism. There will continue to be opportunity for innovative providers to acquire business from less-nimble incumbents.

• A general improvement in the Supply Chain has occurred, but suppliers are more cautious about inventory and in some cases it impedes their ability to respond to opportunities

• The “average reseller” is brought into the selling cycle very late by the end buyer. This places stress on all parts of the supply chain and does not leverage the strengths of our market.

• By 2015, 50% of the workforce will be under 30 years old. Our market has been relatively slow to understand the needs and wishes of this segment. As this generation becomes ascendant, and as Baby Boomers retire we must re-tool the way we reward and recognize performance.

• The changes to the Chicago Motivation Show have profound impact on our channel. Absent our traditional “meeting place” in 2013, new options will be considered and it may create torque on the “new” Motivation Show for 2014.

• Retailers, and their access to product, are becoming more relevant as options for program fulfillment. Our providers must be aware of these threats and position themselves to compete with it.

• End-Users are seeking input from providers on what awards create the most motivating environment. Knowing when and how gift cards, merchandise, or travel are used is critical for helping the End-User motivate their stakeholders.

The attendee list:

Paul Bellantone PPAI

Rick Blabolil Marketing Innovators

Darel Cook PPAI

George Delta Incentive Federation

Fran Ford Castelli North America

Joe Gabler Gabler Sales

Joe Hafenscher Fuji Photo

Grace Hanrehan Alliance Marketing

Barb Hendrickson Visible Communications

Norma Knollenberg Top Brands, Inc.

Mike Landry Tumi

Chris Lovell ASI

Rick Low Hamilton Beach

Cindy Mielke JC Penney Gift Card

Pete Mitchell Samsonite

Ted Moravec Elite Creations

Dave Peer Hinda

Karen Renk IMA

Mark Repkin Certif-a-Gift

Dean Resnekov Indigo

Leslie Roark PromoPros/IncentPros

Sean Roark PromoPros/IncentPros

Michelle Smith O.C. Tanner

Rodger Stotz Incentive Research Foundation

Tom Whaley Aloe Up


The meeting was facilitated by Pete Mitchell, Director, B-to-B Sales at Samsonite LLC. For more information about Special Markets Dialogues you can contact Pete Mitchell at pete.mitchell@samsonite.com or (843) 597-4281.