A social outing
One way PAJ Canada has cut costs is by trimming its print advertising budget and finding other means of connecting consumers to its retailers, such as through co-op advertising. Retailers are given a percentage of their total sales that can be put toward advertising, whether it’s a Christmas flyer, direct mailing, or a billboard.
“I think that worked much better for us for the most part,” Milan says. “Our retailers find this is quite effective. Unless you’re advertising in every consumer magazine, you’re not going to get a lot of attention. By using flyers or direct mailing, it’s a more concentrated method of reaching our retailers’ client base. We will still do print ads, but we will be more selective on which editions they’ll be in, such as the issues that come out before Mother’s Day, Valentine’s Day, and Christmas.”
PAJ Canada is also looking to reach consumers by ramping up its social media efforts. “It’s something you have to do these days,” Milan says. “We’re in the midst of looking for someone now who understands social media and how to effectively put it to use in promoting a product or brand.” The company is also exploring working with bloggers to reach new audiences and engage with them in a different way.
Once you’ve reached those audiences, however, the product you present them should resonate, which is why PAJ Canada offers brands in different materials to hit various price points.
“We know what the end consumer is willing to pay for a certain product and because we have our own designers, we are capable of making it,” Milan says. “We know everything over $200 is difficult for us, unless it has gemstones, which is why we design product that sells from $50 to $200.”
