Growing indoors
Seeing an opportunity in container gardening that was not being met by other manufacturers, the Weathashade division of the Gale Group (an Apopka, Florida-based manufacturer of outdoor lawn and garden fabric) introduced a line of polyethylene planters in 1986 under the brand name Plagar Pots.
Plagar Pots, manufactured in several different shapes and sizes, have several unique properties that provide benefits to consumers. Referred to using the term "terra" as the primary descriptor, followed by a shape descriptor, e.g. terra pots, terra bowls, the pots are terra cotta in color and look like traditional clay pots, but they are lightweight, UV stabilized to prevent fading, and are resistant to cracking and dust. Because the pots don't absorb moisture, less watering is needed for maintenance of healthy plants.
With most plastic pots in this category, the strength of the pot is primarily dependent upon the thickness of the plastic in the wall of the pot (thick-wall technology). In Weathashade's products the structural design provides the strength and a thin-wall technology is used. Because a smaller amount of material is used, the pots are less expensive to produce and these cost savings can be passed on to the consumer.
Sold in lawn and garden centers or the outdoor section of larger home centers and hardware stores, the pots were primarily marketed as an outdoor product and competed both with clay pots and other brands of plastic pots. The product experienced consistent growth and garnered about an 80 % share of the outdoor plastic pot market by the end of 1988.
Develop indoor pots
Weathashade realized that to ensure continued sales and expand to a less seasonal market, they needed to develop an offering in indoor pots as well. They had experimented with some colors in the current line, with inconsistent success. In 1988, they developed a new pot design primarily aimed at expansion into the indoor market.
To help Weathashade expand from a manufacturer of outdoor pots to one with a full line of pots for both indoor and outdoor markets, the firm called on Fitch RichardsonSmith (Fitch RS), a Worthington, Ohio-based international design consultancy.
Fitch RS conducted research to:
1. Determine competitive players and product lines, including strengths and weaknesses, positioning, price points, merchandising approaches, point of sale materials and program sales support,
2. Determine market opportunities for Weathashade's product line based on information from consumers and the trade,
3. Develop specific recommendations for strategic marketing, positioning, naming, color, packaging and merchandising plans.
Information base
The research began with a review of secondary research, trade publications, and competitive sales materials. This added to Weathashade's information base of key trends and players and provided an objective overview of the competition- who they were, positioning strategies and packaging structures, graphic directions, and merchandising systems.
Additionally, retail audits and in-store interviews were conducted to understand the operating environment, and consumers and members of the trade were interviewed to determine their perceptions of the products and the process of selling and selecting plastic garden pots.
Interviews were conducted with retail buyers and distributors by telephone. Over 20 buyer and distributor interviews with representation of mass merchants, garden centers, and hardware and home centers were completed. Focus groups were held in four markets: Columbus, Atlanta, Seattle, and Los Angeles. These groups focused on indoor vs. outdoor perceptions, information needs, merchandising, and reactions to colors and design of the new product.
Findings
The secondary data revealed that trends and potential market size supported expansion into the indoor market. Industry figures showed that close to 10 million households purchased outdoor pots, but over 15 million purchased indoor pots. The advent of working women and dual income households contributed to a scarcity of time and a popularity of convenience features. Increasing interest in gardening activities, natural environments. and population shifts to areas with longer growing seasons all supported growth in this market.
Among retailers, product innovation was beginning to play a more significant role, and there was increased availability of better quality and a broader selection of products.
Retail environment
Most retailers carried three or four brands, and Weathashade was the outdoor leader in plastic pots. Several retailers described Weathashade's pots as a dual (indoor and outdoor) product, but most displayed it outdoors. Fitch RS found that in general most retail displays were merchandised poorly, though a few retailers attempted to merchandise products by color. Outdoor merchandising was in even worse condition than indoor offerings.
Retailers indicated that in this category, branding was of no concern to consumers and as expected brand awareness was very low (Rubbermaid and Terrapot were the only brands or companies mentioned).
Knew little
Many people purchased plastic pots, but generally they knew little about the care and feeding of plants. Style and color were very important in the purchase of plastic pots and "cheap" plastic was to be avoided at all costs. Retailers and consumers agreed about the benefits and detriments of the products, but they disagreed about the purchase process. Retailers assumed pots were an impulse purchase, but most consumers described their product purchases as planned. This presented an opportunity to offer consumer information at the point of sale.
Consumers and retailers agreed that some of Weathashade's current Plagar Product line could be used either indoors or outdoors. Color, style, size, variety, and a ceramic look were all important features of indoor products. Price was more critical in the selection of outdoor pots, whereas size, color, and style were more important than price in the selection of pots used indoors. Thus, there was an opportunity to enhance the line by adding additional indoor product that would meet these needs.
Consumer information needs focused more on plant care than on product information. Pots (especially indoor) were "more of a design issue" than an information issue, though pot size was important.
Consumers wanted to see plants displayed in the pots or see suggested uses for the products in a merchandising system. As the purchasing environment currently had little to offer, consumers had some difficulty describing their needs. They were concerned that labels and information not cover up the pots.
Well-received
The new product design was well-received. Consumers wanted colors to blend with their furnishings. They again stressed that the looks and quality of the indoor product were more important than the price, making comments such as, "It would sell better if it looks good. The cost wouldn't matter."
Room for improvement
At the end of the study, it was determined that the market situation offered room for improvement in packaging, point of purchase, branding, and merchandising of garden pots. There was great opportunity for growth in both indoor and outdoor lines, especially for innovative solutions that enhanced the pot purchase environment. It would be easier for Weathashade to penetrate the indoor market than it would be for a competitor to expand into the outdoor market.
Based on the study findings, Fitch RS made a number of recommendations:
-Integrate the indoor and outdoor offering under one umbrella, but develop a brand, name, and merchandising system in which either brand can stand alone.
-Take advantage of the planned purchase behavior and develop emotional appeals to both the novice and expert gardener.
-In the outdoor offering, emphasize size, durability, and fade resistance. In the indoor offering, emphasize size, color, style, value, and quality.
-Emphasize lifestyle and performance convenience for both lines.
-Because of the potential opportunity, Weathashade should be the first company to create major brand recognition in this product category.
-The packaging and merchandising system will increase sales by creating excitement, attracting attention, creating interest with product ideas, and suggesting lifestyles. Information should be provided to maintain interest and aid purchase, but avoid being highly technical.
-The system should create a selling environment to take advantage of space efficient stacking, display the product, and increase brand presence and awareness. A small on-product label denoting pot size and usage should be explored to reinforce brand awareness in the absence of the full merchandising system. Unique free standing merchandisers could be incorporated into the design. The merchandising system must be flexible enough to allow use of one component or multiple components or any combination.
Planterra
Weathashade followed the recommendation to develop a new brand, under the name Planterra. The outdoor products were designated as the Terra line, the indoor products the Flora line.
Colors on outdoor products will be kept natural (terra cotta, sand). The Flora line will incorporate colors responsive to current trends, softer, grayer colors with an emphasis on the southwest. Shelf talkers are color coded by product category and contain size and price information (including UPC). The system uses a series of rings that make it easier for retailers to arrange the pots and keep the shelves looking neat. Overhead banners attract attention by displaying the product in use and providing additional information about product benefits. The tag line, "pretty pot, smart pot, pretty smart pot" is used to describe the positioning and benefit.
The "package" developed is a printed disk/label that fits inside the pots. In buying behavior observed during the research, it was noted that people looked inside of the pot while reviewing the product. The disk contains features and benefits information on one side, with a photograph that helps consumers visualize the use of the product. On the opposite side, plant care information is provided with step-by-step instructions for potting plants, as well as watering information.
 |
Sales materials developed to help sell the system into the trade used consumer research to build credibility and emphasize the memorable logo and name.
Weathashade initially decided not to add an outside label, but this decision is currently under review. Subsequent research indicated that a small photographic label providing name, size, and UPC information would attract more consumers than identical products without labels.
Phenomenal effects
The Planterra program was presented at the National Hardware Show in Chicago in August, 1989. The effects on Weathashade's business were phenomenal. In the past year, sales have increased over 200%, surpassing even the most optimistic estimates. A distribution facility built to house Weathashade's three main products is currently used only for Planterra, and the inventory turns completely about once each month. The result of staying on top of and being responsive to consumer and retail trends has enabled the Gale Group to become the fastest growing manufacturer of plant pots. They have revolutionized the way the products are sold.