Trendspeak

Three Ways to Position to Customers for BtoB Growth

May 4, 2009

Reuters reported that there is High Growth Reported for the World Corrugated Box Market.  The report sites that the market is expect to grow at around 3.4% annually through 2013.  There are two interesting (almost contradictory) points made back-to-back in the article that point to important marketing strategies for BtoB companies.

First, it points to the fact that boxes in most of the developed world are limited in growth because they are seen as a commodity.  Second, it cites some of the advantages that boxes have over plastic containers in terms of recycling and and point-of-purchase display potential.  It’s interesting because it shows the strong interest in leading economic indicators.  In this case,  the consumer and investor market is looking to BtoB for some glimmer of hope in the economy.  It’s not uncommon for BtoB to be used in this way, but this kind of hunger for information can be an opportunity to position yourself for growth with your customers.

Here are three tips for leveraging this hunger for leading economic indicators:

1.) Be a Crystal Ball

Let customers see changes in your business as information on how their business is going to grow.  Are there changes in your suppliers?  Do you see overall trends in your orders changing that might be valuable.  You obviously don’t want to share information about your other customers but broad trends can position you as a valuable partner in preparing for future trends.

2.)  Lead the Way

Everyone knows that the economy is down.  Helping out with lower prices may help now, but what about the future?  How can you help position your customers better in the marketplace of tomorrow?  Everyone believes that the economy will come back, but will markets be exactly the same as they used to be?  Are there opportunities to position your customers better in the future?  Lead your customers down paths for growth and you’ll be rewarded in the short and long term.

3.)  Talk About Today and Tomorrow

Too many times we have conversations about putting out the fires today that we don’t have time to build a better tomorrow.  It’s important to recognize the problems your customers have right now and work to solve them.  It’s also important to look ahead.  It may be tough to get your customers mindset there, but they’ll appreciate your input on long-term strategies.  In the box article, Reuters talks about reasonable growth year after year, but it also points out opportunities for increasing that growth by following trends in point-of-purchase as well as sustainability.  Help your customers to see that today is just another opportunity to change and improve their tomorrow.

From the Reuters Article:

World demand for corrugated boxes is forecast to increase 3.4 percent per year
to 213 billion square meters in 2013, in line with real (inflation-adjusted)
gains in GDP. Factors contributing to rising box demand will include growth in
industrial activities, particularly the manufacturing sector, which often
requires corrugated packaging to protect and transport goods. In addition,
ongoing developments in small flute and high-quality graphic board will allow
corrugated boxes to penetrate traditional folding carton applications,
especially in the developed world. Greater interest in corrugated packaging as a
point-of-sale display in retail applications will also boost demand for
value-added corrugated boxes. 

However, gains will be limited by the mature state of the corrugated box
industry in developed areas such as the US, Western Europe and Japan, where
boxes are essentially commodity items used in well-established markets.
Corrugated boxes also face competition from reusable plastic shipping crates and
other types of plastic packaging. Nonetheless, corrugated boxes will benefit
from their environmentally friendly image, as well as certain cost advantages
compared to plastics crates -- especially considering that old corrugated boxes
can often be sold to recycling companies, whereas the usage of plastic crates
typically involves cleaning and returning costs.

Link to the full article

Entry Filed under: Closing the Loop, Decommodification, Economy, Environment, Recession. Tags: boxes, corrugated, leading economic indicators, messaging, packaging, position, reuters.