David & Ben Grossman – Interview

The Grossman Marketing Group is a full-service provider of marketing communications materials and promotional products.  David Grossman & Ben Grossman are the co-presidents.  The company was founded as Massachusetts Envelope Company in 1910 by David & Ben’s great-grandfather Maxwell Grossman.

In January the two of you provided the keynote address for an event I was involved in organizing.  At this event we learned that you would be assuming the role of co-presidents and your father as chairman.

So let me begin by asking the most obvious question.  How is it working out, two brothers sharing the role of president?

David: Six months into it, it’s working out really well.  Ben and I are very lucky in that we generally see eye-to-eye on anything important, yet have perfectly complementary skill sets.

Keeping on the family business theme, how do you delegate responsibilities as co-presidents?  Does one brother handle operations and the other sales and marketing?

Ben: As David mentioned, our skill sets are well-aligned.  We both handle sales and marketing for the organization, but I focus more on strategy and growth and David focuses more on operations.

During periods of leadership transition in family-owned businesses the employees sometimes struggle with the change in management styles which might take place once in their entire career with a company.  I am curious as to the impact a co-president transition has had on your employees?

Ben: That’s a great question.  We are very proud to say that our colleagues have handled the transition very smoothly.  Sure, it has been a change, as our Dad, Steve, has run the business for 35 years.  However, we try to run the business with the same values.  These include trying to foster an environment where individual initiative and personal growth are encouraged, and where there is mutual respect among colleagues (we mean to use the word “colleagues” rather than “employees,” as we are all on the same team.

By the way, how is your father adjusting to his new role as chairman?  Has turning over day-to-day operations to his sons been difficult?

David: It’s been a relatively easy transition for him, both because he’s been keeping himself busy running for State Treasurer of Massachusetts, but also because he knows the business is in the capable hands of his two sons.

This year represents 100 years in business for Grossman Marketing.  Are you aware the odds of a family-owned business making it to the fourth generation is 3%?

Ben: Yes – we have heard that statistic before, and we’re proud to be part of this select group.

How is Grossman Marketing celebrating a century in business?

David: We felt that since our 100 years are all about our customers, we wanted to publish a thought piece that would compile our expertise across all our business lines.  We recently published a booklet, entitled “100 Tips for Marketing Success” and, true to 21st Century marketing practice, we mailed them, posted them online for download, and leveraged a wide range of social media to spread the word.  Here’s a link: http://www.gmg100.com.

Over your firms long history it has evolved into a full-service provider of marketing solutions.  One of the new product offerings is promotional items.  How well is this segment of your business performing?

Ben: Promotional products have been a fun and profitable business to get into.  It is the fastest-growing segment of our business, and, seven years into it, accounts for more than 25% of business.  We are proud to work with clients like Zipcar, Yahoo and Facebook, among others, on their promotional programs.

Your firm has been recognized as a leader in the marketplace for your green initiatives.  What can you tell us about your green marketing solutions and how has the market responded?

David: The market has responded incredibly well.  In fact, we rarely have a conversation with clients and prospects that doesn’t have some green component to it.  The fact is that sustainability is top of mind in the business world.  The economic downturn has led to the misperception that going green is an expensive proposition.  However, if done right, it can help save organizations money, while helping to save the environment.  As a result of our early leadership in green marketing and sustainability, we have been recognized by Forbes Magazine as well as the Boston Business Journal!

On the topic of green initiatives, I saw a 2008 press release where your firm offsets 100% of its energy use with wind power.  What can you tell us about your use of wind power?

Ben: We offset 100% of our energy use with Green-e certified wind power through Renewable Choice Energy (the same firm that works with Whole Foods and Burt’s Bees).  Since we launched this initiative, we have put more than a third of a billion envelopes in the mail stream that were made using wind power!

Ben, I noticed that you have your blog, Sustainable Ink, where you discuss topics associated with sustainable marketing.  You also use Twitter.  I was wondering if you could comment on how prominent a role social media tools play in your company’s marketing strategy.

Ben: They are very important to help us engage with our customers, colleagues and prospects.  My blog has helped us attract interns who are interested in sustainability, speaking engagements and, most importantly, new clients.

I remember it being mentioned that last year your firm avoided lay-offs.  An accomplishment that I am certain is a matter of great pride to you.  I can also imagine there are a few business owners who would like to hear how you avoided a disastrous year?

David:  Like everyone, our business suffered in 2009.  However, through shared sacrifice, we were able to keep our entire team intact.  Our growth strategy has never been dependent upon mountains of debt and, therefore, huge risk.  As a result, we were able to survive the downturn by going into it from a position of strength.  We feel that by keeping our entire team intact, we have positioned ourselves to emerge from this recession stronger than our competition.

Can you share with us any new developments or projects in the works?

Ben: We have invested in a best-in-class technology & e-commerce solutions firm, CMS Associates (www.cmsassociates.com), in Wilmington, MA.  This partnership allows us to offer customized, online marketing solutions to our existing clients as well as new prospects.  Our combined offerings add significant value in the area of brand visibility. We are now able to create dynamic websites for the sale and distribution of promotional products and print collateral through e-catalogs or online stores.  In addition, we have deployed e-philanthropy programs for clients like the Brigham & Women’s Hospital.

Last two questions.

Would the two of you be willing to respond to comments and questions from our readers?  We will moderate the comments so that you are not asked the same question multiple times as well as to filter out any off-topic remarks.

Yes

Second question, if a member of a family-owned business wants to ask a question off-line do you mind our making the introduction?  If asked, we would seek to validate that they represent a family-owned business before contacting you.

That works great!