Floral Marketing Funding Initiative Coalition president Charles Kremp 3rd talks about how and why the coalition was formed and the impact it could have on floral sales.

Q. How did the idea of this coalition get started?

A. For years, we all have been listening to people within the industry lament the fact that there is no national flower promotion program. In conversations with industry leaders, it became clear that something needed to be done and that the cost of such an initiation would be more than any one organization could bear. In addition, if there was not widespread support throughout the industry for a coalition, there certainly would not be the necessary support for a program.

I started talking to the major organizations and they all said that they would participate if the others did. As of this past March, the commitments were in and a planning meeting was held.

Q. How will the formation of an all-industry marketing initiative impact the programs in place, such as the Flower Promotion Organization's Flowers. Alive with Possibilities campaign or America in Bloom?

A. A board will be put in place for the marketing initiative coalition from those who are paying. The board will decide on how the money will be spent and the creative message that will be promoted. The boards of other flower industry groups will continue to do what they feel is best for their constituents.

Q. Does the coalition seriously think that this all-industry initiative can actually be an all-encompassing industry program involving all segments of the market?

A. I have been asked to explore all avenues. This is a big effort. If the structure that will be put in place can benefit all segments of floriculture, why not.

We are working on a funding mechanism not a marketing program. The marketing program must follow the money. If we are able to find a funding mechanism which works for the cut flower segment and could also work for growers of pot, bedding or foliage plant growers, then each of those groups would need to determine their own funding parameters and govern how the money would be spent.

We can definitely have an industrywide initiative, but must remember that every segment would be included as a separate piece. It would not be fair or appropriate for one segment to decide what happens in the other.

Q. Considering the low margins that many companies in the industry are facing, why do you think most companies will embrace the initiative?

A. I want to talk to anyone who thinks that an investment in marketing will not benefit them. Business people have to identify the obstacles they face and establish a strategy to achieve success.

Low margins are a result of low consumption and low perception of value. These are two of the most obvious targets for marketing.

There are only two ways for those businesses to go -- ride things out as they are going until they are out of business or make a positive effort to make things better.

Q. Of the segments in the industry, from which group do you think the coalition will receive the most opposition?

A. So far, we have not heard any opposition -- only a unified cry from our industry that we desperately need major national promotion of our products. Any eventual opposition will not break down by segments but by philosophy of business.

There are business people who just go along for the ride and will do nothing but take what they can. And, there are those who lead. These leaders are not just the largest but they are the ones who can see that business can be better than it is and are willing to invest in that future.

Q. Has the coalition speculated on how much money could be raised for the marketing of floral products if such a program was implemented?

A. For many years, marketing experts have said that to make any effective difference at least $50 million per year needs to be spent. If we are going to establish a program it must generate enough to do the job or we should not even bother.

Q. Is there any other industry that has an all-industry marketing program that the coalition has or will study or is looking to emulate because of the success it has had?

A. We are totally different. Look at the existing agricultural promotion programs, including beef, pork, eggs, peanuts, popcorn and milk. There is not a food program. We are going to develop a floral program, not a rose, petunia or poinsettia program. Even the cotton program is not a clothing program.

I have talked to those professionals that would help put a program together. They like the concept, said that it has never been done before, but see no reason why it couldn't be done. Remember, every program started with the first. We can be the first in this area. A mango order was put in place just a few years ago and consumption of mangoes has increased 22 percent.

Q. Do you think such an initiative is possible to implement without getting the federal government involved to collect the funds?

A. No. Everyone with whom I have talked has said that to be successful and acceptable the program must be fair and broadly based. USDA has a department set up for these types of activities. What we really need is to have consensus within the industry and then implement it. No one can tell us what we want or will do. That has to come from us.

Q. Has the coalition developed a tentative timeline as to when it would like to see the initiative in place?

A. The most important activity is building consensus within the industry. It is very important for everyone to know that there is no program at this time. The effort is broken up into these parts:

1. Find out what is possible. This is the phase we are now in. Every idea is being explored. Every concern is being addressed. This will probably take until July. We have a meeting scheduled for July 11 at the OFA Short Course.

2. Find out what the industry would like to do. After all the options are identified, industry members will have a chance to add their feelings into the discussions that will lead to a consensus. We hope to have that consensus by the Society of American Florists' convention in the fall.

3. The industry's wishes will then be formulated into a program for implementation and depending on what those wishes are, it is possible to reach a consensus within the industry that a program could be in place in one to two years.

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© 2006 Branch-Smith Publishing