THE WEST - Stran Promotional Solutions

ADVANTAGES
An ASI Publication www.advantagesmag.com
MID-APRIL 2015 $5.00
REGIONAL SALES REPORT
BOOM
4.7 BILLION
$
TIMES
CONTINUE:
REGIONAL
SALES UP
ACROSS
THE BOARD
Eye On Energy
NORTHEAST
NETS
3.6 BILLION
$
Gourmet BBQ sauce from Panola Pepper (asi/75787), Lousiana
MIDWEST
RAKES IN
HONE IN ON
HOSPITALITY
INDUSTRY
SOUTHERN
SALES
ADD ZING AT
$
8.8
BILLION
THE WEST
IS WINNING AT
4.4
BILLION
$
TARGET TOURISM & TECH
EDITOR’S PICKS:
APPAREL
FOOD GIFTS
DRINKWARE
BEACH TOWELS
NOVELTY ITEMS
AUTO ACCESSORIES
… AND MORE
NORTHEAST
DEMAND
Hot pockets create business opportunities in the Northeast where
sales are up 3% to $3.6 billion.
58 ADVANTAGES • MID-APRIL 2015
NORTHEAST
BY JEAN ERICKSON
RESEARCH BY
NATHANIEL KUCSMA
D
espite some challenges, suppliers and
distributors in the region say they’re more
than holding their own, as the Northeast
houses a number of industries that are
performing well and helping to drive business. Health care, education and technology continue
to lead the pack in terms of promotional product
opportunities.
Understanding the needs and sometimes unique
demands of Northeastern clients can set distributors
and suppliers apart and help drive business. Discerning
and demanding Northeasterners appreciate and value
quick turnaround times, multiple shipping options, onpoint style trends and cutting-edge tech products.
TOP MARKETS
The Northeast has benefited from improved job markets in Boston and New York City. A Wells Fargo report
cited New York’s emerging tech sector as helping boost
employment in the city. The report cited technology and
health care as being largely responsible for stimulating
job growth in Boston, in particular in software development, big data, cloud computing, life sciences and
medical device manufacturers.
“New York is increasingly becoming a high-tech
city. Incubators as well as more established technology companies are moving to New York because of the
pool of talent here,” says Larry Cohen, president of New
York City-based Axis Promotions (asi/128263). “These
companies bring other businesses along with them; for
example, real estate has exploded,” he says.
Axis derives some 85% of its business from the
Northeast, in particular, Boston, New York City and
White Plains, NY. “There are many corporate headquarters in this area, we have exposure to a lot of different
businesses,” he says.
“Axis is well-positioned in areas where there has
been lots of business growth,” says Cohen. “We are on a
great trajectory. Our business has increased every year.”
Company sales in 2014 were up 9% over 2013,
according to Cohen. Among the company’s diverse client roster are the financial and technology industries,
fashion, media and advertising, travel and hospitality.
Boston’s collegiate market is a major draw for
companies looking to hire good talent. “With over
100 colleges and universities in and around Boston,
including elite schools like Harvard and Massachusetts
Institute of Technology, there is an amazing talent pool
for companies to choose from,” says Rob Haughey, VP
of sales at Boston-based Stran Promotional Solutions
(asi/337725). He notes that this makes the city attractive to startup ventures, and many top companies in
the technology and biotechnology areas.
“We are seeing good demand from financial,
technology, health-care, education and retail clients,”
he says. While seasonality can impact the types of
products Northeast clients prefer, design and functionality prevail.
“Our clients like that we offer one-stop solutions,
including product, print, point-of-sale, e-commerce
stores, kitting, fulfillment and awards programs,”
says Haughey. “While they may come to us for one
need, most clients quickly learn that our suite of
services and broad range of capabilities help them to
be more successful.”
For one of its large program clients, a manufacturing company looking to incentivize its various divisions
to achieve goals, Stran bundled a variety of tech products together to create “tech crates.”
The crates were filled with branded Bluetooth speakers, power chargers, headphones, a flat-screen TV and
other relevant tech accessories, says Haughey. Each
crate was worth $5,000-$10,000, and contained about
four dozen items.
Employees within the winning departments would
each pick a number and, based on that number, participate in a Yankee Swap. The tech crate was then
delivered, via white-glove service, and items were distributed to those departments. Employees would win
either a gift from the crate or points that could be used
to purchase items from the online company store.
“When all the products were bundled together, it was
a cool and interactive kit,” says Haughey. “There was
something in it that everyone could relate to.”
ADVANTAGES • MID-APRIL 2015 59
NORTHEAST
TRENDS OF NOTE
“My top market in the Northeast
remains higher education, specifically colleges and universities, and
in the past few years, the legal
industry has been a huge part of
our success,” says Mark J. Resnick, VP of sales and promotional
branding at North Attleboro,
MA-based The Artcraft Co. Inc.
(asi/125023).
Artcraft has been selling printing to the legal market for 75 years,
and since Resnick came on board
two years ago to run the company’s promotional business, he
has focused on leveraging existing
relationships with its legal clients
to secure their promotional business as well.
“Once we began promoting
promotional products full-time,
and not as a value-added service
like most printers, the transition
was natural,” he says. “Now we
manage their entire brand, not
just on the print side.”
Last year, Artcraft created
white takeout boxes filled with
gourmet chocolate-covered
fortune cookies for one of its law
firm clients. Each cookie had an
original fortune inside supplied by
the customer, as a thank-you for
registered conference attendees.
Another large law firm wanted
a fun promotional item for a
trade show booth, so Artcraft
provided mini Jenga games as the
giveaway, with an oversized Jenga
game at the booth itself to draw
people in. “It was a very successful giveaway, and the client has
since ordered additional game
pieces,” Resnick says.
Companies are spending more
on their employees too. “We’re
seeing a trend in employee recognition, apparel and internal company
stores,” he says. “I’m certainly focusing more on these opportunities.”
Gina Barreca, director of marketing at Avenel, NJ-based Vantage
Apparel (asi/93390), points to
insurance companies as a strong
market for branded apparel. “They
have larger staffs out in the field
who wear branded apparel, which
helps promote company credibility,” she says. In addition, some
larger insurance companies have
had logo changes, which also drive
demand for apparel.
60 ADVANTAGES • MID-APRIL 2015
STATE-BY-STATE BREAKDOWN
New
Hampshire
$83 million
Total
Northeast
Maine
$73 million
Vermont
$3.6
billion
$42 million
Massachusetts
$496 million
New York
$1.2 billion
Rhode Island
$63 million
Connecticut
$230 million
Pennsylvania
$859 million
New Jersey
$564 million
“Everyone is looking for
the next cool tech thing.”
“We are definitely seeing the
millennial influence on apparel
styles,” says Barreca. “There is a
younger, hipper, trendier vibe driving sales.” Trends in the Northeast
have an overall preppy undertone,
but with more of a modern or
urban edge, especially in the New
York metro area.
“Technical outerwear is key in
this space,” says Barreca. “Look for
transitional styles that can be worn
as activewear or as sportswear
with your workday outfit.” Quilted
fabrics and mixed-media styles are
hot-sellers.
The climate is definitely an
important factor for apparel sales in
the Northeast. “There are four seasons in the Northeast, so the weather
really provides clients with a number
of opportunities to buy various types
of apparel,” Barreca says.
TECH PRODUCTS HOTTER
THAN EVER
Axis is constantly keeping abreast
of new developments in the tech
world, combing different websites and attending the Consumer
Electronics Show to stay on top of
what is new. “Every week someone
asks us about a new product, and
we want to be the first to get it,”
Cohen says.
In December, Axis and the Peernet Group teamed up with Tile to
offer a tech product that helps the
recipient keep track of their most
valuable possessions. Tile helps
make losing things a concept of the
past, allowing everyone to reclaim
all that lost time spent looking for
misplaced items.
The way it works? Attach the
Tile, which can be branded, to a set
of keys, wallet, iPad, etc., and the
companion app will cast a Bluetooth signal up to 100 feet to help
locate the item. If outside of that
range, Tile can access its entire network to have other people help you
find your belongings too, simply by
walking by it.
“Every phone is an access point
in a gigantic lost-and-found network,” says Cohen. “Our clients
are going crazy for it. Everyone is
looking for the next cool tech thing.
The Tile is a $20 item with lots
of functionality. And if I give it to
you, there’s a good chance you’ll
use it. It’s cool and practical and
NORTHEAST
FIVE-YEAR REVIEW
CASE STUDY
(in billions)
Promoting Brand Growth
$3.6
$3.5
$3.3
$3.2
$3.1
2014 2013 2012 2011 2010
universally acceptable among a
variety of clients.”
In fact, Axis sent out 1,000
holiday mailers this year centered
on the Tile to thank its clients. The
accompanying card read, “There
is nothing more important to Axis
than you – our partners. We’d never
want to lose you and we’d also
never want you to lose your stuff!”
Selfie sticks are also so hot right
now that the biggest problem can
be finding enough inventory to fill
demand. There are selfie remotes
and non-Bluetooth versions of the
selfie stick that are more widely
available and less expensive than
the Bluetooth version, Cohen says.
Another tech/non-tech combo
that Axis has had success with
in the Northeast is the combination Rainalertz app paired with a
customized branded umbrella, says
Cohen. The phone app alerts clients that there is a chance of rain,
and reminds them to take along
their umbrella.
Tech accessories and bags
are the two best-selling product
categories for Bridgeport, CTbased Prime Line (asi/79530) in
the Northeast. Its Econo Silicone
Device Pocket, introduced last year,
has ranked in the top five in sales
in eight states, according to CEO
Jeff Lederer. “On the flip side, our
String-A-Sling backpack, which
has been a staple of our line for
years, is still among the top sellers
in the region.”
ROBUST OPPORTUNITIES
“With the year ending and the
new year starting, we’re fortunate
sales in the region were up over
10% last year end, and in the first
“As a brand-management company, our job is to grow brands and we’ve created some unique
print and promo combination pieces around the theme, ‘Grow Your Brand,’” says Mark J. Resnick,
vice president of sales and promotional branding at The Artcraft Co. (asi/125023). The company
began rolling out the campaign last year to targeted prospects and clients, mailing branded planters with soil and seed packets and bearing the message, “Time to Grow Your Brand.”
“The feedback has been overwhelmingly positive and has made a strong impression on both clients and prospects,” he says. “The marketing piece has caught the attention of existing customers,
who have since given us many opportunities to sell new print products, such as pocket folders and
specialty print pieces, and most certainly promotional products for a wide range of customers.”
Artcraft will be distributing 500 of the kits at a national legal marketing event this month. “We
secured a $250,000 customer as a result of last year’s giveaway, and the goal is to replicate that
same success this year,” he adds.
TOP FIVE
DISTRIBUTORS
TOP FIVE
SUPPLIERS
Geiger
iPROMOTEu
Myron
Artcraft Promotional Concepts
Axis Promotions
alphabroder
Polyconcept North America
Bodek and Rhodes
Gemline
Prime Line
two months of this year, sales are
running above a 25% growth pace,”
says Fred E. Snyder, MAS, vice
president of sales at Maine-based
Geiger East (asi/202900). “We
have a good sales presence in Philadelphia, New York, Connecticut
and Boston, an experienced sales
force and aggressive marketing.”
The company is targeting key
industries in the region. Snyder
says medical, hospitals, pharmaceutical and education have been
very strong and that sales reps
continue to nurture and grow business in those areas. The corridor
between Connecticut and Boston is
experiencing demand in technical
and scientific fields, he adds.
“The most dramatic opportunity
we’re seeing is in health care,” says
Roy S. Ryniker, president of New
York-based Positive Promotions Inc.
(asi/297370). “The goals for healthcare providers are to reduce readmission rates, increase nurses’ productivity, prevent infection and increase
patient satisfaction and safety, not
just in hospitals, but also in other
health care-related businesses.”
Patient satisfaction is also an
important goal. Ryniker notes that
many patients complain about
noise at health-care facilities, so
products to combat noise are a promotional product opportunity.
No-skid socks, branded with the
name of the provider, or signage in
a shower, are great ways to promote
patient safety. He also suggests
health-care facilities give patients
parting gifts.
In the past year, Positive Promotions has also been doing a lot of
packaging and repackaging for its
clients. For example, presenting an
item like a pen in customized packaging can take a commodity item
and elevate it to a recognition product with a higher perceived value.
Health care is also a leading
market for Vantage Apparel. “From
the traditional pharmaceutical
industry base in New Jersey, we still
have many entities that purchase
apparel for employees in labs, physician, dental and physical therapy
offices,” says Shirley Bennett,
regional sales rep.
Lederer breaks down Prime
Line’s business in the region as
follows: “In New York, the leading
markets for our distributors are
health care, education, financial
and entertainment. In New England, technology and health care are
driving sales, and in the southern
part of the territory, the strongest
vertical markets are financial,
health care and education.”
Within health care, wellness
programs are a good opportunity
for distributors. “Companies have
found employees are not signing
up anywhere near the 50%-60%
target levels they had been seeking, so they are using promotional
products to encourage employee
engagement in wellness programs,”
says Snyder. In addition, events
such as Nurses’ Week offer even
more sales opportunities.
Always be on the lookout for
those opportunities. One Geiger rep
snapped a photo of a camo rifle case
at a trade show and sent the local VA
hospital the photo of the case along
with the full selection of bags from
the vendor. The VA wanted a case for
veterans to carry prosthetic limbs.
The VA asked the rep if the rifle
case could fit a prosthetic arm and
leg, which it could, and the hospital has been buying the cases ever
since. To date, Geiger has sold three
orders of fifty bags, priced at $27.98
each, and is currently showing the
product to other VA locations. _
Jean Erickson is a NJ-based contributor
to Advantages; Nathaniel Kucsma is
Director of Market Research at ASI.
ADVANTAGES • MID-APRIL 2015 61