Aggressive promotions, `value for money’ driving marketing – Alvis
Sustained and aggressive promotions and a “value for money policy” have helped Courts (Guyana) Inc. to record a marginal increase in sales revenue for the first six months of 2009 compared with the same period last year despite what Country Manager Lester Alvis told Stabroek Business was “a difficult and challenging period” for the company.
“We are slightly ahead of last year in terms of the numbers of customers that we have had as well in terms of revenue. I think that given the economic climate that we are experiencing that is a very good result. We certainly had a lower expectation,” Alvis told Stabroek Business.
And according to Alvis, Courts has set itself “an even more challenging target” for the second half of the year. He said that the company is pressing ahead with a number of promotions aimed at further strengthening its customer base while seeking to offer consumers both a broader range of purchasing choices and ‘greater value for money’.
And according to Alvis, Courts’ strong showing during the first half of this year was due to “the broad spectrum of the total retail offer” which he said had served to further enhance the level of customer trust in the company. “Our customers are aware that if we put out an offer in the media they can trust that offer. If we say, for example, that customers are going to win particular prizes in one of our promotions, that is exactly what happens. There is no anonymity or secrecy in what we do. There is full transparency,” Alvis said. He added that he believed that trust was “particularly important” in an economic environment in which consumers were seeking to make the most cost-effective choices based on limited spending power.
Meanwhile, the Courts Country Manager told Stabroek Business that he believed that Courts’ revenue increase during the first half of the current year was also attributable to the company’s continued focus on a ‘value for money’ policy. “Because of our reputation as a major international company we wouldn’t sell the very cheapest items since the quality does not match what we seek to offer our customers. Given the quality of what we sell, however, we certainly offer the greatest value,” he added. Alvis said that the company believed that this was a sound marketing strategy. “We believe that in an economic climate such as this where people are concerned about prudent spending, value for money matters the most,” Alvis said.
As part of its focus on offering customers both better value for money and a wider range of choice Courts has been seeking to expand its range of high-quality imported items of furniture while continuing to provide a considerable market for locally produced items. Alvis said that this year Courts had sought to further utilize its access to international sources in the Far East and Latin America, among other places, to bring to the local market attractive, high quality furnishing options. Alvis was quick to add, however, that Courts remained committed to supporting local craftsmen. Asked to comment on the standards that the company had encountered in the local furniture-making industry Alvis said that while there were challenges associated with the industry the quality of what was being offered locally was “getting better.” He said that while the percentage ratio in terms of high quality, locally produced furniture was improving, Courts wanted it to get even better still. “The truth is that I will probably never be totally satisfied since I have to be fighting that battle on behalf of our customers to ensure that we only accept top quality every time. That is what our customers demand of us; that is what they expect; that is the challenge that we have set ourselves and we are determined to deliver on that challenge,” Alvis said, adding that the focus on the delivery of high quality work by local craftsmen had become even more important.
In the current economic crisis the company could not afford the cost of poor quality work. “Not only is the customer dissatisfied but it also costs the business money when we accept sub-standard work,” Alvis said.
According to Alvis while locally produced goods account for at least 50 per cent of Courts’ furniture sales, imported furniture was also in considerable demand locally. “It is a constant challenge to get the balance right. Part of it has to do with the fact that there is the demand out there and part of it has to do with the success of our marketing thrust in creating that demand. Because we are the market leader when we make these items available people tend to say they must be good. The reality is, however, that even in the face of the demand for imported furniture we will not move away from a very strong local customer base. Part of our reason for being here is to assist the development of the local market.”
Alvis told Stabroek Business that Courts had also been seeking to help local producers benefit from styles imported from abroad that were popular with local consumers. ‘When we get a really good imported sofa set where the design is right, the shape is right and the fabric is right what we do is to approach our top local craftsmen and ask them to build something similar. Since there are copyright issues it will not be exactly the same but it will be similar in both design and quality, We believe that by doing that we help develop the local market while giving our customers what they want at the same time. Sometimes this approach works and sometimes it doesn’t. What interests us is the willingness of our suppliers to take on these challenges. They want to do better, they want to be a stronger part of our business and we want their businesses to be stronger and healthier,” Alvis said.
