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Executives Predict Trump Administration Will Improve Education Sales

Q1 2017 Showing Steady Growth

Apr 19, 2017

By Bob Stimolo

Results are in from our 2017 first quarter survey of school marketers and they show steady growth.  Overall first quarter 2017 sales are up +3% from last year.  This follows an FY 2016 finish that was reported up +3%. The school market appears to be on a steady course of growth.

School marketers forecast Q2 2017 sales will be up +2% over last year and FY 2017 sales will be up by +3%.

Forty percent of school marketing executives think that the Trump administration will improve sales for education marketers, one-third (33%) think it will not, and just over one-quarter (26%) are not sure.

More than half (53%) of school marketers cited a change in the overall economy as the main reason for sales performance.  Some 43% cited changes in school funding levels.  Thirty-five percent said marketing strategies mainly drove sales performance, and 33% said sales performance was the result of new product development.

Fifty-nine percent of the respondents say they plan no change to their promotion and advertising budgets in response to current economic conditions.  Twenty-nine percent said they plan to increase their promotion and advertising budget by an average of +10%.

Forty-three percent of survey respondents expect to see an improvement in economic conditions before the end of the 2017 -18 school year.

 

Primary Business

            School Supplies                       40%

            Furniture                                   26%

            Publishing                                23%

            Technology                                9%

            Other                                         2%

 

What is your title?

            President/Owner/General Manager         65%

            VP Marketing/Director of Marketing       14%

            Marketing Manager                                 5%

            Marketing Assistant                                2%

            Product Manager                                    2%

            Other                                                    12%

 

Which do you consider to be your primary market? (multiple responses)

            Preschools/Day Cares              23%

            Elementary Schools                  63%

            Middle Schools                        49%

            High Schools                            44%

            Colleges/Universities                 14%

            School/Public Libraries               9%

            Other                                        12%

 

Relative to last year, would you say that your first quarter 2017 (January 1st through

March 31st) school market sales were:

                                                Average                                       Average

                           2017      Increase/(Decrease)         2016      Increase/(Decrease)

            Up           47%                  10%                     70%                  12%

            Flat         30%                    0                       16%                    0

            Down      23%                  (8%)                    14%                  (8%)

Overall Q1 Sales +3%

 

To what reason(s) do you attribute this performance?  (multiple responses)

            Overall Economy                                  53%

            Change in School Funding Levels          43%

            Marketing Strategies                             35%

            New Product Development                    33%

            Competition from Amazon.com             15%

            Education Reform                                  8%

            Growth of Technology in Schools            5%

 

Are you changing your promotion and advertising budget in response to current economic conditions?

                                                                 Average Cut/Increase

            Cutting Budget                12%                    (27%)

            No Change                      59%                       0

            Increasing Budget            29%                     10%

 

Relative to the second quarter of 2016, what are you forecasting for the second quarter of 2017 (April 1st through June 30th)?

                                                Average                                       Average

                           2017      Increase/(Decrease)         2016      Increase/(Decrease)

            Up           56%                   7%                     81%                  11%

            Flat         30%                    0                       16%                    0

            Down      14%                  (9%)                     3%                  (2%)

Overall Q2 2017 Forecast +3%

 

Do you expect economic conditions to improve before the end of the school year?

            No Change                               40%

            Modest Improvement                38%

            Modest Decline                        14%

            Major Improvement                     5%

            Major Decline                             2%

 

Relative to full year 2016, what are you forecasting for full year 2017?

                                                Average                                       Average

                           2017      Increase/(Decrease)         2016      Increase/(Decrease)

            Up           70%                   7%                     86%                  12%

            Flat         12%                    0                       13%                    0

            Down      19%                 (11%)                     1%                  (5%)

Overall FY2017 Forecast +3%.

 

Do you think the Trump administration will improve sales for education marketers?

            Yes                                          40%

            No                                           33%

            Not sure                                   26%

 

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