Segment Blurring: Getting More Business
September 14th, 2006 at 08:22am Lorie Obernauer
An article in Gourmet Retailer Newletter describes a practice followed by grocery retailers called “segment blurring”. Essentially, in response to increased competition by superstores such as Walmart, smaller retailers are expanding their product lines in an attempt to attract the ever busy retail consumer who is looking for “one stop shopping”.
For gift basket business owners, this practice may also provide a way to increase market share. Rave Reviews Magazine now includes a regular feature in each issue that focuses on teaching basket designers how to also be floral designers. By adding florals to basket designs, or by offering floral arrangements as a separate product line, gift basket businesses can offer their customers another type of service.
Before adding any type of new product line to your mix, make sure you check out your market. Try to add products or services that are unique in your marketplace. Do your research before adding costly inventory and related expenses to your business.
Entry Filed under: Industry News, Business Tips
1 Comment Add your own
1. Shirley George Frazier | September 15th, 2006 at 2:58 pm
Research, through formal and informal surveys, is a smart step before moving into another level of inventory.
This has always been true for gift basket designers, especially because there are so many options available and just as many inventory decisions to make.
I just read and commented about a story on a well-known fruit franchise and how they are positioning their product to complete against gift baskets. Fruit is another one of those items to research before adding it to inventory.
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