Archway Marketing Competition
Now Viewing Archway Marketing's competition in: Sales Promotion Services (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Who are the company's customers? - Customers range from small service and manufacturing companies to major corporations, primarily in the healthcare, banking, insurance, pharmaceutical, education, and high-tech industries.
How many customers does the company service? - Large sales promotion services companies can have more than 80,000 customers.
What sales channels does the company use? - Catalogs and websites are used by many sales promotion companies; trade shows are attended by sales promotion companies to exhibit new products.
What is the company’s customer retention rate? - Most business involves one-time orders, so a sales focal point is to develop repeat customers.
What competitive pressure is the company facing? - Minimal barriers to entry mean many small competitors; recently, national office supply stores have started offering sales promotion products.
What is the company’s primary competitive advantage? - Companies compete on delivery time, breadth of products, relationships, and price.
What are typical prices for the company's products? - Sales promotion products are generally low priced, ranging from less than a dollar for items such as pens and key chains, to $20 for some kinds of apparel.
Competitive Landscape
Demand is driven by economic growth and by corporate profits. The profitability of individual companies depends on efficient order fulfillment and marketing. Large companies have economies of scale in procurement and the ability to offer other marketing services. Small companies specialize by type of sales promotion product and differentiate themselves on customer service, particularly speed of delivery. The industry is labor-intensive: average annual revenue per employee is about $125,000.
Business Challenges
CRITICAL ISSUES
Dependence on Corporate Profits - The sales promotion services industry depends on the health of the national economy and business profitability. Specific companies can be very sensitive to particular industries as most sales promotion companies are small and many cater to just a few industries. Sales promotion products are often viewed as discretionary expenses that can be cut during economic downturns.
Customer Consolidations - The sales promotion services industry’s best customers are undergoing substantial consolidation. Major customers of sales promotion items, such as banks and pharmaceutical, telecommunication, and high-tech companies, are frequent merger or acquisition targets. Customer consolidation usually leads to lost business for sales promotion suppliers.
Industries Where Archway Marketing Competes
- Business Services
- Advertising & Marketing
- Sales Promotion & Specialized Marketing Services(primary)
- Advertising & Marketing
- Media
- Information Collection & Delivery
