25 Years of Peer Group Stories: Rob Pedersen
This article's content originated on Peer Talk podcast ep. 31 from March of 2021
Building Market Awareness in a Metro Area
In today’s competitive rental industry, creating market awareness is essential for long-term success. A Tool Shed, a family-owned rental company operating in the Silicon Valley area, has leveraged a diverse mix of traditional and digital marketing strategies to expand its reach and strengthen its brand presence. In this chapter, Robert H. and Robert W. Pedersen share their insights into building market awareness, targeting the right audience, and integrating modern marketing techniques with traditional approaches.
Establishing a Strong Brand Identity
A Tool Shed operates on a clear mission: "To create an exceptional customer experience." As a fourth-generation family-owned business, they emphasize their longevity and deep-rooted ties to the community. This commitment to customer service and community engagement differentiates them from larger, national rental chains.
Traditional Advertising Methods
Radio & Television Advertising
Despite the shift to digital platforms, traditional advertising remains a key part of A Tool Shed's marketing strategy.
Radio Advertising: The company focuses on local and Hispanic radio stations, recognizing that job sites and work environments still heavily rely on radio for entertainment and information.
Television Advertising: Through partnerships with Comcast, they strategically place ads during sporting events to target their core audience of blue-collar workers, homeowners, and contractors.
Print Advertising: Print ads are used selectively in local home and garden publications to reach homeowners, as well as in trade publications targeting professional contractors.
Digital & Social Media Marketing
Recognizing the increasing importance of digital marketing, A Tool Shed has invested in search engine marketing, social media, and online video content.
Google AdWords & Paid Search: Partnering with Reach Local, they have refined their online advertising efforts to maximize visibility on search engines.
YouTube & Social Media Video Content: Demonstrating equipment in action and highlighting seasonal promotions have proven to be effective in engaging both homeowners and contractors.
Organic Content Creation: Moving away from over-reliance on stock photos, they aim to create more authentic content that showcases their business, employees, and community involvement.
Targeted Marketing Strategies
Understanding Customer Segments
Marketing efforts are tailored to two primary customer groups: homeowners and contractors.
Homeowner Marketing: Campaigns focus on DIY-friendly equipment, such as power tools, lawn equipment, and smaller machinery for weekend projects.
Contractor Marketing: Advertising showcases of larger equipment such as forklifts, backhoes, and reach lifts, with an emphasis on delivery services and reliability.
Sponsorships & Community Engagement
A Tool Shed actively supports local sports teams, including the San Jose Giants and Santa Cruz Warriors, by sponsoring mascots and in-game promotions. Community sponsorships provide visibility and reinforce their brand as a local, family-owned business invested in the region.
Budgeting for Marketing Success
Unlike many rental businesses that allocate 2-3% of revenue to marketing, Tool Shed dedicates over 5% of revenue to a combination of traditional and digital advertising. Their investment strategy includes:
Radio & TV (Largest Allocation)
Social Media & Google AdWords
Print & Seasonal Advertising
Community Sponsorships & Event Participation
Conclusion
By balancing traditional and digital marketing efforts, A Tool Shed has successfully grown its brand and strengthened its market position. Their focus on customer experience, authentic content, and strategic advertising ensures they remain a top rental provider in the Silicon Valley area. Other rental businesses looking to enhance market awareness can learn from their approach, leveraging data-driven decisions and multi-channel marketing strategies to drive growth.