Sales Promotion Services

Sales Promotion Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide promotional products imprinted with the name, logo, or marketing message of clients. Major companies include BDA, HALO Branded Solutions, and Staples (all based in the US), as well as Aimia (based in Canada), Cimpress (Netherlands), and 4imprint (UK).

COMPETITIVE LANDSCAPE

Demand is driven by economic growth and by corporate profits. The profitability of individual companies depends on efficient order fulfillment and marketing. Large companies have economies of scale in procurement and the ability to offer other marketing services. Small companies specialize by type of sales promotion product and differentiate themselves on customer service, particularly speed of delivery. The US industry is fragmented: the top 50 companies account for about 40% of revenue.

Sales promotion products are often viewed as discretionary expenses that can be cut during economic downturns. Competition comes from office supply stores, print shops, and ad agencies that offer promotional products as part of larger, integrated marketing programs. These competitors may be able to leverage their brand recognition and existing relationships with customers to expand into sales promotion products.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services offered by companies in the sales promotion services industry include the coordination of production and delivery of premiums which accounts for about 50% of the industry revenue. This is followed by multiple advertising services (about 10%), manufacturing of nonelectric signs and displays (about 5%), and advertising creative services which include graphic design (about 5%). Other products include...