Q2 2009 / Tell ’Em Quick, and Tell ’Em Often
Ron Lucas
Editor
Specialty Gas Report
rlucas@specgasreport.com
Gases play an important role in many industries, and food is one of them. Applications from argon in wine production to carbon dioxide for beverages, food freezing, and even boosting crop yields in green houses are among the myriad of uses. So, I think it’s only fair in tough economic times for our industry to borrow a tip or two from one of the all time giants in the food industry, William Wrigley Jr.
Wrigley was born in Philadelphia, PA, in 1861. Even from his earliest days in business he recognized the power of advertising, often giving away promotional items ranging from lamps and razors to cookbooks and fishing tackle. He also bought space in newspapers, magazines, and outdoor posters. His motto was, “Tell ’em quick, and tell ’em often.”
I think that is a big historical take home lesson for the gas industry today. Get your message out there. Get it out there as fast as possible and get it out there as often as possible – by every means possible. Simply put, promotion is how you acquire new customers and grow.
It is especially important if your company has something new to offer. It might be a new product or service that could save your customers operational time, reduce downtime, or eliminate the hassles that can distract them from paying attention to their core customers. All of these translate into their bottom line.
If you as a gas or equipment supplier, choose not to promote your products in the tough times, how are any of your customers going to know what you can do for them? How will they know you can be a key partner in their business?
Wrigley understood this. Way back in 1893 when he first introduced spearmint gum. He knew how important the message would be to the success of the product, so he even
took the time to personally design the logo for its package.
Now it may sound amazing today, but the general public didn’t take to spearmint gum at first bite. Still, Wrigley pushed it relentlessly. He didn’t give up on his philosophy of promotion despite circumstances.
For example, in another historical parallel with today’s economy, there was a downturn in 1907. Many companies at that time reacted by cutting back on expenses including all promotional activities.
Today, as we roll down yet another rough economic road, the allure is the immediate reduction in expenses. The fallacy is that it doesn’t cost anything. Well, it could cost big, and take years to recoup even in the rebound.
“If you as a gas or equipment supplier, choose not to promote your products in the tough times, how are any of your customers going to know what you can do for them?”
Wrigley’s experience is a classic example of how it does not have to play out that way. He went ahead and spent a whopping $284,000 on advertising – mostly for the unpopular spearmint gum. What happened? Sales jumped dramatically. The company’s revenue topped $1.3 million by 1909 ? quite a tidy sum in those days. Only a year later, spearmint was the top selling gum in the U.S. And by the time of his death in 1932 the firm’s global sales hit $75 million.
Well, many might say times change and things are much different in the gas industry and today’s market. True, today, market share frequently changes hands through acquisitions. However, another way it can change hands is when a competitor cuts back its advertising campaign, public relations efforts, and trade show attendance – and you don’t! Market share can change in more subtle ways too, like when you attend a show your competitor didn’t and you find a new way to improve your business.
Wrigley passed along that philosophy to his son Philip. He faced a new set of challenges too from a sudden and dramatic change in the economic and political landscape – World War II.
America soon faced shortages everywhere and his firm was no exception. Overnight supplies of gum ingredients became limited. However, the need for gum actually increased at the same time since large quantities were being supplied to the U.S. Armed Forces overseas to boost morale.
The company found it could no longer make enough gum to meet everyone’s needs. It had to take unprecedented steps. For civilians, the company developed a wartime brand. But it also did one other thing for the folks at home. Incredibly, the firm mounted a huge advertising campaign!
What? Pay to advertise when you don’t even have a product to sell and the economy was still reeling from the Great Depression? A lot of folks probably thought Wrigley had taken leave of his senses. But Wrigley wanted to keep the name and quality of his firm’s gum in every consumers’ mind ? even though they couldn’t buy it.
Dramatic ads featured a picture of an empty spearmint gum wrapper with the slogan “Remember This Wrapper.” And of course they did. When the war ended and ingredients became available again the company quickly regained and soon exceeded its pre-war business levels.
So during not just one, but two tough historical periods the firm maintained its vision and continued to push its message out to its customers. For our industry this proves that this kind of commitment yields powerful rewards. During the storm of the day it can keep you afloat and on course. It can solidify your position in the market. It can help you maintain a bond with your core customers while reaching out to new ones. It also sends them the message that despite any bad news they read in the papers your firm remains solid – you are here to stay.
Secondly, when the economic cycle rebounds, as it always has, your firm will be in the best position possible to capture the maximum benefit from that surge. It is apparent by the support we receive from our advertisers and conference participants that they concur.
But perhaps it is something for the entire industry to chew on. SGR
Ron Lucas
Ron Lucas has written on gases, equipment and technologies used in the medical, specialty, and industrial gas markets for several industrial trade publications over the last twelve years. Now, serving as editor of Specialty Gas Report magazine, he can be reached at:
rlucas@specgasreport.com
