As the total number of businesses and households continues to rise, demand for door-to-door advertising distribution is anticipated to expand and drive prices upward.
Los Angeles, CA (PRWEB) September 06, 2014
Door-to-door advertising distribution has a buyer power score of 3.9 out of 5. This score stems from a low market share concentration, a low level of specialization involved with this service and the high availability of practical substitutes. “However, the supply chain presents buyers with a moderate risk of service disruptions and price fluctuations,” says IBISWorld procurement analyst Ian Buchanan.
Of the suppliers operating in this market, the top four providers of door-to-door advertising distribution account for a relatively small portion of total market revenue, which indicates a low market share concentration. “With no major players influencing the price of this service, competition among suppliers remains high,” adds Buchanan. “As a result, buying power is strengthened as suppliers reduce prices or offer incentives to attract customers.” In addition, providing door-to-door advertising distribution requires very little specialized knowledge and equipment. Although suppliers provide customized designs for each buyer, the process of developing these ads is largely standardized. The low level of specialization associated with this service allows buyers to easily find a supplier that can meet their desired requirements while providing a high level of quality, which contributes to greater buying power.
Furthermore, buyers are afforded additional power due to the high availability of alternative services. Buyers can effectively advertise directly to their target market through direct mail advertising, telemarketing and print advertising, among other forms of media. With the knowledge that buyers have a variety of substitutes to their service, supplier-pricing leverage is diminished while buyers gain negotiation power.
Although buying power is favorable in this market, buyers face a moderate level of uncertainty derived from the key input costs for door-to-door advertising distribution. The sensitivity of paper suppliers to changes in revenue and the volatile price of fuel both introduce the risk of fluctuating operating costs for suppliers. As such, buyers are presented with a moderate risk of price spikes or service disruptions due to issues with upstream suppliers. For more information, visit IBISWorld’s Door-to-Door Advertising Distribution procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of door-to-door advertising distribution services. Service providers circulate advertising materials to targeted neighborhoods that the buyer selects. Buyers provide service suppliers with the design and specifications such as black and white or color printing and the color of the paper. Advertising materials that might be distributed include, but are not limited to, door hangers, flyers, product samples, newsletters and magazines. This report excludes the machinery used to print the advertising materials. This report also excludes the distribution of other materials such as mail and packages.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics
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