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THE PROBLEM
Facing declining sales of Real Christmas trees over a 10-year period, the Real Christmas Tree industry association formed a market expansion task force to 1) stop the decline and 2) grow sales.
THE CONTEXT
Purchases of Real Christmas Trees dropped from 32 million in 2000 to 22.2 million in 2002. Even more alarming, Real Trees were losing market share among young adults. NCTA formed a Campaign Task Force composed of seven industry volunteers and key staff of its association management company (Drake & Company).
Smith & Harroff worked with the task force members and Drake and Company (NCTA's association management company) to develop both a short-term fundraising campaign and a long-term market expansion campaign. Since all of the campaign's elements depending on funding levels, a good portion of the first year of the campaign was spent educating members about planned activities and generating enthusiasm among the membership.
THE SOLUTION
Smith & Harroff helped evaluate ongoing research commissioned by the industry that provided attitudinal data to help craft strategies. From that research and dialogue with industry members, The Task Force established the following Campaign Strategies:
1. Tailor messages to market segments including: (a) Young adults (18-39 year-olds); (b) First-time home buyers; (c) Special market niches such as Hispanics and the Gay community.
2. Make efficient use of media including: (a) Earned media with emphasis on targeted audiences; (b) Public Service Announcements (PSAs); (c) Provide marketing tools that industry professionals could implement locally
3. Integrate the Campaign with other communications tools including the NCTA Web site, the Youth & Schools program; recycling programs, etc.
4. Seek support of corporations and other organizations to expand reach of the Campaign
Execution
The professional staff and agency implemented an integrated PR and communications campaign:
Public Relations: Media contact and news releases to generate earned media. This included placing positive Real Christmas Tree messages in key media (such as Bravo’s Queer Eye for the Straight Guy).
Marketing: Sponsored a “Help Santa Find the Perfect Real Christmas Tree” National Contest (offering college scholarships and enlisting volunteer celebrity judges); created a Viral Marketing advergame “The Attack of the Mutant Artificial Christmas Trees”; produced and distributed radio PSAs in English and Spanish; and distributed 4,000 marketing kits to Christmas Tree professionals.
Special Events & Programming: Implemented (and publicized) special events including the presentation of the official Real Tree for the White House; reaching teachers and children through a Real Trees 4 Kids Web site (with curriculum and games); and emphasizing environmental benefits through a formal Real Christmas Tree recycling program.
Promotion Partners: Reaching out to companies and organizations to generate additional support for the Real Tree campaign. This included participating with Warner Bros. Pictures and the New Holland company in a cross-promotional program with The Polar Express; working with GM on a satellite media tour featuring a GM vehicle and care tips for Real Christmas Trees.
THE RESULTS
Four specific metrics demonstrate the success of the Market Expansion Campaign. As outlined below, the metrics include impact of the campaign elements; participation in the campaign; support of organizational partners and results of the annual consumer tracking poll.
Program Measurement:
“Earned” Media Coverage resulting from NCTA’s public relations efforts included:
23.0 million readers Key Real Tree messages in Mark Trail comic strip
10.6 million readers USA Today (2 major Real Tree stories; 2 smaller stories)
8.1 million viewers White House Real Tree featured on NFL Sunday Football & HGTV program
8.3 million viewers Tree care tips communicated through General Motors satellite media tour
2.5 million viewers Queer Eye for the Straight Guy show of family buying/decorating a Real Tree
925,000 readers 7-page Real Tree feature in December issue of Midwest Living
Advergame: Attack of the Mutant Artificial Christmas Trees:
8 million listeners Kim Komando’s “Cool Sites” mention on her show and USA Today column
258,000 Games played with 686,000 hits on the NCTA game site
Radio Public Service Announcements (PSAs)
50.8 million listeners On 184 radio stations airing the PSA 13,608 times
The Polar Express connection:
4.3 million households Reported hearing, seeing or reading about The Polar Express-Real Tree coupon offer. Promotion mentioned in publications such as Los Angeles Times and Lakeland (FL) Ledger; Northwest (AR) Democrat Gazette and New York Times, Topeka Capital-Journal and Toledo Blade; Cincinnati Post and CNBC.
NCTA Web site:
8.01 million Hits on the NCTA Web sites (up 36%) and a 44% increase in number of unique visitors (consumers, media, others)
Industry Participation:
• The number of donors increased from 888 in 2003 to 1,289 in 2004
• Donated promotion funds increased from $187,500 in 2003 to $888,937 in 2004
• Donors came from 42 states & DC; 6 Canadian provinces, Mexico and Guatemala
Support of Corporate Partners:
• Organizations providing cash or in-kind support increased from 2 in 2003 to 9 in 2004.
Bottom Line Evaluation: Research Shows Dramatic Increase in Purchases & Profits
1. Consumer purchases of Real Trees increased 3.7 million (15.8%) from 23.4 million in 2003 to 27.1 million in 2004.
2. Consumers reported paying 26% more for a Real Tree from $33.80 to $42.60 per tree.
3. The share of Real Trees increased 4.2% from 70.9% to 75.1% of trees purchased.
4. The total value of the Real Tree industry increased 46% from $790,920,000 to $1.15 billion ... an increase of $363.5 million in total value.
5. Consumers reported purchasing 600,000 fewer fake trees.
6. In targeted age groups, purchases of Real Trees increased 6% among 18 to 29 year olds and 5% among 30-39 year olds ... a dramatic turnaround from the 2000 to 2003 trend.
The Marketing Expansion Campaign produced even greater suceess in 2005, as sales of real trees reached record highs.
In 2006, S&H won the 2006 Gold SABRE Award (Superior Achievement in Reputation and Branding) in the Category "Associations" for the NCTA Market Expansion Campaign. The marketing program for Real Trees also became a case study in a collegiate level book, Consumer Behavior (2006, Thomson, South-Western).
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