Direct Marketing to Professional Landscapers

A Case Study of the 2010 STIHL Southeast Marketing Campaign

Executive Summary

• Red Letter crafted and delivered a tailored, effective direct mail and interactive campaign targeting professional landscapers in Florida, Georgia and Alabama.

• The marketing goals of the campaign were two-fold; “block and tackle” existing customers keeping them loyal to the STIHL line and convert non-existing customers to the STIHL line.

– According to Ward Brooks, non-existing customers in the Stihl Southeast territory must routinely switch Dealers to convert their crew to the STIHL line of equipment, making the task of conversion.

• In order to address both targets (existing and non-existing customers) two separate creative platforms were created.

• Response rates through July were 15.7% and 10.1% for existing and non-existing customers, respectively.

– Response rates for the 2010 program are vast improvements over the 2009 program. The 2009 program used one creative platform for both existing and non-existing customers and kept the same format throughout the year.

Situation

• Professional landscapers are a vital part of the STIHL Southeast customer base

• It is important to cultivate relationships with current customers while also acquiring new customers who use competing brands – predominently Echo© and Shindaiwa©

Key Marketing Problems

• How do we efficiently and effectively target professional landscapers?

• What kind of message will elicit a response from professional landscapers?

What We Know…

• In 2009, mailings featured messaging focused on the quality of STIHL equipment

• Identical creative was sent to existing and non-existing customers

• All price promotion on products were shown on the inside spreads

What We Know…

• Response rates (measured by a recipient purchasing a STIHL product) were very low

• Response rates from non-existing customers were less than .5% over the entire, year-long program

A Fresh Start

• 2010’s campaign featured an entirely new creative approach

– Distinct and separate messaging for existing and non-existing customers

– Greater focus on what makes STIHL better for landscapers

• In order to increase conversions from non-customers a more aggressive message was chosen

• The STIHL BR 600 Magnum™ delivers more engine displacement and air volume than Echo© and Shindaiwa©

• The STIHL FS 90 R delivers more displacement and weighs less than Echo© and Shindaiwa©

• STIHL is the number one selling brand of handheld outdoor power equipment in America**”Number one selling brand” is based on syndicated Irwin Broh Research (commercial landscapers) as well as independent consumer research of 2009 U.S. sales and market share data for gasoline-powered handheld outdoor power equipment category combined sales to consumers and commercial landscapers.

Messaging to Non-Existing Customers

Messaging to Existing Customers

• Sales figures were used to allow the advertising to call out the top selling units to recipients

• Tactically, the goal was to remind our customers that STIHL is the best choice to fit their demanding needs– The inside spread of mailers also contained contained competitive

product comparisons – “another reason STIHL is #1”

• Highlighting promotions on products is a key factor in appealing to existing customers – They are aware of the value of a STIHL – any price promotion

must be prominently displayed throughout the piece

• The campaign has also added an interactive element – Personalized URLs or PURLs

• Each recipient is sent a PURL, the Web page contains customized messaging as well as interactive, dynamic content

– BR 600 Fuel Calculator– Pro Landscaper Testimonial

Videos

• PURLs offer a rich reporting, detailing who, when and where visits the page

Added Depth in 2010

Creative Sample

Mailer Cover

Creative Sample

Inside Fold

Creative Sample

Inside Spread

The Results

• Through July, the program has seen response rates of 15.7% from existing customers and 10.1% from non-existing customers.– Response rate is defined as a product purchased by a list

recipient– 13 Mailers have been sent since early February

• Non-existing customers’ response rate has improved from less .5% to 10.1%

• Over 10,000 units have been sold to recipients– The entire list contains approximately 28,000 professional

landscapers

• Mention total retail sales?????

Thank you!

• For more information please contact Stephanie Shreve (shreve@rlci.com) or Clay Schermann (clay@rlci.com)