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Marketing in the Nursery Industry
This material addresses aspects of the following syllabus outcome:
H3.4 evaluates the management of the processes in agricultural systems
H4.1 applies appropriate experimental techniques, technologies, research methods and data presentation analysis in relation to agricultural problems and situations
H5.1 evaluates the impact of innovation, ethics and current issues on Australian agricultural systems.
(Source: NSW Board of Studies Agriculture Stage 6 syllabus p 26)
The Nursery Industry
OVERVIEW
In this activity you will be assessing the marketing of potted plants in the nursery industry. You will have the opportunity to compare and contrast several different nurseries, and identify what the key mechanisms for promotion and marketing are in this industry.
HISTORY
The Nursery Industry started its beginning in Sydney in the early 1800’s.The industry has always been characterised by the ownership being mainly controlled by family businesses. Despite large investors moving into the industry in the 1980’s, the main growth segment today is still family businesses.
As with any industry there is a national organisation (Nursery and Garden Industry Association of Australia – NIGAA) which covers the major producers of plants, as well as individual state associations. These associations help with technology, marketing and promotions. On a national level the association attends to issues such as plant quarantine, Plant Breeders Rights, environmental issues, Greening Australia, Horticultural Research and Development, international garden festivals, potting mix standards, national accreditation and registration of nurseries.
The industry website provides important information for its members. In respect to marketing and promotion, the industry has developed a series of promotional resources for use by retail and wholesale nurseries in promoting their business and products. For example:
In this activity you will need to visit a local retail nursery. If you can visit several it will enhance your findings. Walk around and identify the overall feeling of the nursery. Use the following questions to help you describe the atmosphere:
- How are the plants displayed?
- What sort of signage is used? Do these signs offer more information than just categorising the plants?
- What products / services does the nursery provide other than potted plants?
- Is there a coffee shop?
INDUSTRY INFORMATION
In the past 20 years the Nursery Industry has been a growth industry in the Agriculture sector. One of the influencing factors for this has been the emergence of the Lifestyle shows commencing with ‘Burke’s Backyard’ in the 80’s through to House and Garden on the commercial channels as well as Gardening Australia which runs on the ABC. Promoting the industry in this manner has proven to be very successful. These shows have not only sparked an interest in gardening but also in all DIY activities around the home, this follows on to increasing sales of potted plants and other associated products sold by retail nurseries.
When Burke’s Backyard first started screening, Don Burke would recommend a specific plant each week – this plant would be promoted throughout the show along with the growth requirements and examples of where it could be planted or used in the home garden situation. The show ran on a Friday night and for the following weekend retail nurseries across Australia would be swamped with customers wanting to buy the plant that had been on the show – retailers would sell out and wholesalers would be swamped with orders for the plant which would follow on to be virtually unavailable for months after. In this way, these shows were great for promotion and marketing of plants but mores success could have been achieved if greater networking and communication between the nurseries and the media had been established.
CHANGING TIMES
Within the nursery industry in more recent times, the industry is undergoing a high level of change driven by factors that include:
- New styles of household dwellings with smaller courtyards gardens
- Time poor consumers with lower gardening skills who are purchasing more advanced products through distribution channels that also provide on site service
- Water resources issues that have discouraged gardening activity
We will address the main ways that the marketing and promotion of potted plants needs to adapt to the changing needs and situations in our society.
TYPES OF NURSERIES
| WHOLESALE | RETAIL |
|---|---|
| Indoor plants | Tree Transplanters |
| Field Nurseries | Garden Centres |
| Container Nurseries | Plant Shops |
| Seedling Nurseries | |
| Propagation / Tube Growers | |
| Tissue Culture / Micro Propagation | |
| Flowering Pot Plants (Potted Colour) | |
| Bulb and Seeds | |
| Forest Nurseries (Government) |
Nurseries can be separated into two main types – Wholesale and Retail. Wholesalers tend to grow and produce plants for sale to retail outlets and landscapers, Retailers sell direct to the public.
Using the yellow pages, and the internet, make a list of wholesale and retail nurseries.
Once you have compiled your lists make a comparison of the numbers and answer the following questions:
- Which are there more of?
VALUE OF THE INDUSTRY
The Nursery Industry is the most valuable Horticulture industry in Australia, supporting a whole range of allied trades such as soil and compost suppliers, plastic pots, fertilisers and motor vehicles.
PLANT MARKETS
The majority of nurseries control their own marketing.
The production nurseries use sales people who travel the rounds of retailers and chain stores and newly developed plant markets in Victoria, Queensland and NSW.
These plant markets tend to be 20-30 hectares in area. Space is allocated to individual wholesale nurseries that display their plants, tend their stands 2-3 times a week and restock them.
These plant markets are serving the retailers, landscapers and market sellers. They are a popular and highly successful set up providing a one stop shop for many retail outlets.
Go online and explore the following sites:
- Davidsons Nursery : http://www.davidsonsnurseries.com.au/
- Plantmark : http://plantmark.com.au/
Answer the following questions:
- Davidsons Nursery
- Discuss how this nursery has diversified to attract more customers.
- Discuss how this nursery has diversified to attract more customers.
- Plantmar
- Consider what a difference to the industry these plant markets have made to retailers and landscapers – make a list of the advantages and disadvantages of purchasing plants and products from these markets.
- Discuss how the development of plant markets for retailers has improved the retailers ability to market and promote products more successfully.
It is largely through the promotion of gardening as a healthy hobby, not hard work and through educating people on how to maintain low water use gardens and yet still have an attractive outdoor area that this industry will continue to grow.
Retail nursery owners act as educators/ landscape consultants to the public and in this manner they are promoting and marketing their products.
Advice on using the correct plant, proper watering systems to save water, labour saving mulches and ground cover plantings are all essential elements of successful gardening.
Promotion of gardening through the Australian Open Garden Scheme is a step in improving the marketing of the product because it markets the hobby and this is necessary prior to actually marketing the plants and other products.
Visit AOGS on the internet. Explore the site and gather some information on what the scheme is about. When you have a good idea of the Open Garden Scheme, discuss what sort of effect on the industry this scheme may have and how it can increase consumer demand for nursery products. (http://www.opengarden.org.au/ )
CONCLUSION
Promotion and marketing of potted plants in the nursery industry starts from the first seed or cutting planted and continues to the most beautifully designed garden. Promotion of the activity of gardening is in itself crucial to increasing demand for the product.
The media has and still does play a significant role in promoting gardening as a healthy, enjoyable past time and this has increased the industries success.
The invention of wholesale plant markets has also improved the demand of the product through education and inspiration of the retailers by the wholesalers and growers.
Individual nursery owners are able to promote and market their products once they have lured the customers in by using innovative and stylish displays and by acting as educators and advisors.
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