Needs and Wants

Publix is a familiar name in supermarkets in the Southeastern United States. It was just announced that in their second quarter of 2009, revenues were up marginally (+3%) as were profits. In this ultra difficult economic period when so many businesses are struggling, here is one firm that is actually doing relatively well.If you stop and reflect on it though, this company should be doing well. We all have to eat, and it is becoming increasingly more difficult for many to afford eating out. But, what has this to do with the furniture industry?

Just this. Food is a necessity. It is a need. We all have to consume it to survive and unless one owns, operates, or otherwise has access to a farm or a ranch, most of us buy our victuals in a grocery store. It is an absolute need. Therefore, supermarket chains primarily compete with other supermarket chains for their customers’ dollars.

Furniture, on the other hand is definitely a want in most households. No one MUST have a new sofa for his or her very survival. As such, furniture retailers compete with other furniture retailers but they also compete with every other seller of any merchandise that is a want and not a need. Sellers of Jewelry, cars, vacations, TV’s, audio equipment, fragrances, etc. also vie for the same discretionary dollar. We all eat from the same trough.

If this is so, the message to every furniture retailer is clear. A portion of a furniture retailer’s marketing efforts should be aimed at competitors in other industries. If a customer is trying to decide between buying a new car when the old one is still fine and buying a new houseful of furniture, marketing might be aimed at helping the potential buyer make the right decision. In my book set, “Furniture Retailing 101″ I write about a number of ways to do just that.

When Publix markets the foodstuffs they have for sale, they might promote a can of Progresso chicken noodle soup for $.99. Sometimes they may present the notion that Progresso soups are chunkier than Campbell’s, but essentially, they deal in price/item marketing because they realize that people must buy food. They may communicate the idea that buying at Publix is easier, more convenient, or a better place to shop but basically, they promote recognizable merchandise at value prices that are identifiable from one store to another.

Furniture, as a want is also often promoted using price/item approaches. However, retailers might also market their merchandise as to how it might affect customers’ lifestyles, enhance comfort, facilitate better sleep, elevate status, or any number of other more emotional benefits. This becomes an argument for buying furniture rather than some other “want” merchandise sold by retailers in another industry. Furniture, after all, is a want, and as such is an emotional purchase. Retailers might be well served by recognizing this and incorporate it into their marketing strategies.