Picture yourself driving down the road on a long trip. Ahead, you see a billboard advertising a Burger King at the next exit. How often have you hastily peeled off the road because you just had to have a Whopper? Rarely, I’m sure.
However, although that billboard may not have enticed you to immediately react – you probably did think about food and eating, in general. Thus, the seed was planted and your subconscious search for a restaurant of your liking had begun. That billboard for BK may have sparked an underlying desire for food that eventually led you to a hole-in-the-wall barbecue joint 50 miles down the road.
The owner of the BBQ restaurant reaped the benefits of that BK billboard. Yet in his mind, it was his hand-drawn, homemade sign stuck on the side of the road that generated your interest.
Half of that equation is correct – and half is pure misconception … but which half?
There’s an old saying in business that 50% of all advertising dollars spent are wasted – the problem is that no one really knows which 50%. Effective marketing campaigns supported by well-conceived and strategically positioned advertisements will always produce measureable results for the specific business, products and services advertised.
However, they also help generate demand (albeit unintentionally) for the product or service category, as a whole. How many times have you been drawn into a store to purchase a specific advertised item – only to leave with something completely different?
This also holds true for the business of indoor tanning. When a new salon opens in town – or a new health club or beauty salon that offers indoor tanning – they often bombard the marketplace with massive advertising campaigns highlighting their products and services.
Unless the new business is completely inept (which does happen), they will garner their fair share of customers. In fact, studies show that after one year in business, 90% of that new facility’s database will consist of “stolen customers” – the majority of which were pilfered from the weakest competitors. Only about 10% of their database consists of new customers – that is, people who never tanned indoors before.
The net result? Some businesses will, no doubt, feel the sting of the new competitor. Collectively, however, their marketing efforts will also raise the awareness level for indoor tanning in your marketplace. As more and more people hear and see the ads, they begin thinking more and more about indoor tanning. New tanners are created while stagnant tanners come out of hibernation.
So, how can your business survive and even prosper from the waves created by the competitor’s marketing blitz?
First, you need to analyze the advertising message that your competitors are using as they attempt to steal your customers. Usually, they target the weaknesses and shortcomings of the existing salons in the area. Is it lower prices? Better hours? A wider variety of equipment and services? All of the above?
Next, evaluate your strengths and weaknesses. What does your facility offer that they do not? What is your primary business focus – and what is theirs? If the new competitor does not offer spray-tans, use that to your advantage. If they do not sell a wide variety of lotions, skin care, health, wellness and beauty products, you can capitalize on that.
If pricing is an issue, evaluate your structure and consider cross-promotional opportunities that generate higher dollars-per-customer-per-year.
Regardless of who initiates the marketing and advertising in your marketplace, all businesses will feel the effects – some positive, some negative. Be proactive and prepare your business to enjoy the ride!
For more information on this subject, email jerry.deveney@fstanning.com ■
There’s an old saying in business that 50% of all advertising dollars spent are wasted – the problem is that no one really knows which 50%.
