Mile$tone for us…(Facebook: take note!)

Posted on May 24, 2012 by Manager
facebook

Maybe TOO much poking goin’ on?  (Photo credit: sitmonkeysupreme)

Dear Reader:  This month we reached a small milestone.  Thanks to your support and our dogged determination to continue this blog  into its third year, we have finally gotten what every agency lives for… advertisers!  It just goes to show that social media frequency pays.

You’ll note below our post sometimes it will say ADVERTISEMENT, and  there will be one or a few tasteful ad links.  This proves we are now in the process of  “monetization“, or finding ways to make the blog pay for itself.  (If it could only WRITE itself, we would be even more thrilled!) 

 But let’s give credit where credit is due here, and it should go to our gracious host: WordPress.  In plain words, WordPress “gets” it. 

From the very beginning, when blogging was young and we were foolish, they were there for us.  They have always offered great features and support. 

 If you had a question, some person with an actual name and email would answer within 24 hours or less… and re-answer and re-answer those of us a bit thick about tech.  In our view, compared with other hosts we’ve tried and seen others use, there’s no better service for wanna-be writers. 

Under our agreement with them, however, we coudn’t run ads in the past, even going against what their competition allowed.  No worries there, though, as many of ads we’d seen in other blogs were not to our liking anyway.

 But recently WordPress upgraded their systems and changed their rules (assume pressure from customers for this service) and so this month we received  a nice letter from Corporate indicating some of our blogs (including our sister site:  www.vivafreshproduce.org and others we “ghostwrite”  for  clients and colleagues) were “carefully selected” to receive ads. 

Best thing is they do all the planning,  placement and layout.  We just sit back and receive the smallish but potentially-compounding commissions. (“Now, that ain’t working:  that’s the way you do it!  Money for nothin’ and ads for free!”…But you may be too young to remember this 80s hit. )  Importantly, we were assured the ads would be relevant and tasteful, but if they’re not we can just turn the ad switch to “OFF”.

In fact, given WordPress’ new ad monetization strategy, excellent service and fast growth, we’re expecting they will soon announce their own IPO.   But perhaps that’s not such a great idea given the recent news re Facebook’s…

Speaking of which, your faithful blogger removed her profile from Facebook a couple weeks ago due to privacy issues, but we can assure the world with great confidence that move was not what affected the performance of this IPO.  Frankly, it  just felt personally better at LinkedIn for the serious stuff and Pinterest for the after-hours fun.

As of this writing, lawsuits are piling up at Facebook and related banks, and some ‘splaining ought to happen soon…But we always remember we’re a marketing blog, so we won’t go there.

We prefer to go where we know, and in speaking with some marketing colleagues in the know, their points supported by recent trade articles, the underlying reason the stock did not take off like a rocket from hell can be summed up in one word:  ads. 

 Man cannot live by bread alone, but social media badly needs bread.  The monetization of sites like Facebook, LinkedIn and others,  is what the venture capitalists are waiting patiently for.  They want these start-ups to show’em the money, and the sooner the better.  And the money comes (mostly) from ads.

Unfortunately, reports show that around 50% of  ads on Facebook get clicked-thru, considered a poor rate given their huge reach.  Importantly, they seem to have violated Marketing Rule #12.5:  never put all your eggs in one basket.  With Zynga as their main advertiser by far, investors seem to have seen a red light.

Please do not construe these comments as our dislike for Facebook.  To the contrary: we are amazed by it and most of our friends are on it.  They have their reasons to be there and they are good ones.  The great thing about social media sites is that you can select the ones that work best for YOU socially.

Which takes us right back to one of our favorite topics:  YOU.  Without your continued interest we would have remained anonymous, shaking our tin cup in the dark corners of cyberspace, waiting for the coins to tinkle in…

But now, who knows, we may even be able to afford one or two shares of Facebook!

Thank you, amigos, and have a great Holiday weekend! 

 (And now for pitch:  if you feel so inclined as to click thru on some of the ads that appeal to you we can show we are up to the task, and also can help ensure only the most relevant ads are placed here.  Plus, if you actually buy something from these ad click-thrus, well, we might even give YOU money!)

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Paying to play

Posted on April 27, 2012 by Manager
Supermarket

Expensive real estate (Photo credit: Sean MacEntee)

The reports of Walmart paying bribes in Mexico to get permits to build stores  have certainly stirred a lot of industry buzz.  Pundits pose on both sides of the issue, debating whether this is truly illegal or merely how global business is done today. (For a thoughtful discussion of this issue, see:  www.perishablepundit.com )

While the final verdict on the case may take years and we’re not expressing our opinion, nor are we legal experts (disclaimers!), we can safely say here that this type of thing is rampant in most parts of the world.  In fact, in most cases it is just life as usual.

In Brazil, for example, the country would not function were it not for what the Mexicans call “gestores” and in Portuguese are “procuradores” and their many minions.  In a country where bureaucracy is endemic,  it’s the only way to survive.

If you have to wait in line for a document to prove you are still alive, you may very well die before you get it.   That’s why you hire someone to stand in line for you:  so you can get on with your life.

We assume this also applies to commercial construction permits.   In retail, a month may be a lifetime, so it’s easy to see the type of pressure this exerts on a company trying to enter a new market.

But let’s digress a bit to something we do know a little about, and that’s the concept of “paying to play”.  When we talk about this we are of course referring to the cost of doing business at retail outlets, sometimes delicately termed “real estate fees”.

Clients are often shocked when we tell them what it takes to get their products up on supermarket shelves.  Shelf slotting fees are said to be a $9B+ industry alone, and can easily run over $30,000 per SKU. (AMA) 

So, if you have a brand with three different flavors, that’s three separate SKUs (you do the math.)  Note that this is typically in addition to off-invoice, case allowances or any other relevant fees to get your products promoted properly.

When you look at the one to two percent annual margins of most supermarket chains today you can see  that slotting is an attractive profit center.   But it’s important to also remember that a simpatico retail partner can make or break you.  So,  if you’re lucky and end up with your products on their shelves, why, you may soon retire in grand style.

Yet many of the sweet-hearted folk who make the great-tasting  jams you see at your local farmer’s markets don’t know or understand this.  They remain at the farmer’s market for that key reason:  they can’t get their products into the great indoors because they have no money.

We often run into the great  jam-&-jelly-makers of this world who spend thousands of dollars to participate in trade shows where they hope to meet supermarket buyers, yet have no capital to go any further.  They believe that just having great-tasting stuff is enough.

It’s like a pretty, aspiring actress hoping to be discovered sitting at a Hollywood lunch counter.   Does it still happen?  Maybe, but the “price” can be high, as these gals will tell ‘ya…

“No such thing as a free lunch” is the adage marketers need to keep in mind here.   If not actual hard cash, then certainly you need the “capital” of a well-thought out strategic marketing plan and a product that is totally of  the moment:  ideally, an “Aha!” item a chain may wish to keep for itself.   Additionally, to deal with the pressure you need a large set of what from Spanish roughly translates to ”spherical male organs”…

Still, even if you have THOSE, you may wish to pray for some venture capital angel or a M&A expert to show up and offer to sell your wonder product to a major company so you can go sip Margaritas pool-side and forget all this stuff.

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Sex and the Sixties

Posted on April 16, 2012 by Manager
Mad Men Dinner

Mad Men Dinner (Photo credit: zandwacht)

Good morning, boys and girls!  On last night’s episode of Mad Men we learned some valuable lessons on how marketers should conduct themselves with regard to that, ahem… sensitive subject.  Here are the answers to some of the key questions posed:

When returning home from a boring dinner party in suburbia, should you have sex (a) after you arrive safely to your East Side penthouse, or (b) right there in the car?   The answer is, of course, (b), especially if you bested your underlings by fixing your hostess’ spraying kitchen faucet with a toothpick.   But remember:  it’s very important to first pull over to the side of the road!

The next question is:  should the agency arrange for and/or pay for the client’s sexual amusement?  This one is as old as the Borgias, but continues to stump today. 

First, you need to consider whether this is a current agency client or one about to be (or not)?  If the latter, then kid gloves are certainly in order because the first rule of good account management is:  know thy client. 

 This way you can target the proper entertainment and not make the fatal mistake of, say, packing him off to a bordello when he might prefer a stroll in the Park.  This is why we do market research!

Which leads us to the next question:  should you beat up the partner who got the answer above all wrong and thus cost the agency the account?  

The answer is: Yes! Yes! A thousand times: Yes.  Especially if that partner is Pete Campbell.

The last question posed last night is perhaps the most important as it addresses a more subtle area:  should you admit your feelings of vast insecurity to your attractive and trusted assistant hoping that there will be some, ahem…specific comfort there?

This is where so many of us get it wrong.  The definitive answer is:  there should be NO feelings of insecurity when you are in the advertising business! 

 Including the above-mentioned attractive assistant, there are multiple industry perks such as three-Martini lunches, a bar in your office, great looking clothes, and endless dinner parties in suburbia.  Plus,  if you’re a partner you’re probably one of the 1% the politicos are targeting.

We have always said lessons learned from one industry can be useful for another, but that’s even more so when they’re lessons learned from another era. 

 OK, class dismissed!

 

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Hot new format

Posted on April 6, 2012 by Manager
Storefronts along York Avenue in Highland Park...

Prime (or not so?) pop-up space along York Avenue in Highland Park, in Los Angeles, CA (Photo credit: Wikipedia)

The industry trades have recently been a-buzz about pop-up stores.   That’s because the success rate of  these “instant stores” bodes likely changes to two giant and interrelated  industries:  retail and real estate.

The concept of pop-ups started in the fashion biz a few years back to liquidate surpluses of yesterday’s fads.  But today it seems it’s used to sell anything, even perishables.  It’s now even been designated its own format, alongside conventional,  mass marketers, limited distribution and others.

 The concept is especially relevant when you consider what some of the venerable chains  (see 2/24 post)  are doing to their stores today to regain lost market share.  Once they start the revamping process they are committed to the whole enchilada:  new logo, remodels, racks, signage, advertising etc., etc. 

Then, there is the new practice known as showrooming, where consumers come into stores to see and test-drive products with no intention of buying, then go home and order them from cheaper online competitors. 

While traditional retailers’ concern with this trend is understandable,  pop-ups simply deliver what shoppers crave right now:  the thrill of the hunt and the ultimate retailtainment experience.  (To find where some of these are, visit blog:  www.findapopupstore.wordpress.com.  Also see our previous post:  “Hunger Games”)

Pop-ups — like the Pop Art movement of the 60s — are a reflection of what was wrong with what came before.  In this case, the millions of square footage from companies that went bankrupt or became irrelevant (Blockbuster, anyone?)  Pop-ups are essentially a commitment-less relationship, with all the benefits and none of the hassles.   

Our mothers warned us about casual live-in boyfriends, saying:  “Why should he buy the cow when he can get the milk for free?”  Except in this case we’re talking about a veritable cash cow.

It sounds like a typically-savvy American concept, but in fact pop-ups started in Tokyo, land of Hello Kitty and other cute (and huge) concepts.  Shoppers there noted that a designer outlet would just arrive one day, unannounced, and set up in a vacant store front.  It would feature a unique merchandising mix,  become wildly popular and then close, leaving everyone wanting more:  the shopping equivalent of the one-night stand.

Pop-up fans soon became like Pavlov’s dogs, anticipating the treats and afraid they would miss out, so they lined up for hours and brought en masse.  The stores closed when they met their sales goals or when they ran out of merchandise, and not a moment later, sometimes all in the same day.  In fact, the shorter the stay, the taller the money pile, it seemed.

Los Angeles-based Vacant packaged the concept and made it uniquely American (i.e. convenient) in a region where empty store space was ubiquitous.  Anyone could come in, lease space, sell like hell, and move out.   Pop-ups ended up doing a lot of good such as revitalizing old downtown areas,  in many cases making them safer again while adding much-needed sizzle to shopping.

The retail chains soon noticed they were losing business to these upstarts so they did the next best thing with their vast resources:  they copied them.  “From Hermes to WalMart”, notes a retail pundit, they’re now employing these ”temporary formats”. 

But to them it’s indeed that:  an employment, an additional expense…just like having an affair.  After all, they are already ”married” to their realtor and cannot just come and go, unencumbered.  They still have to make the mortgage payments and keep the family happy.

On their part, real estate brokers are showing all the signs of the jilted spouse, trying to lure back their bread-and-butter with loving offers.   But the harm is already done.  Retail leasing will never be the same again.

All this to open our eyes to a concept that not only changed one industry (retailing) but it’s backbone:  real estate.  Like their tenants, the retailers, real estate companies are just going to have to be a lot more creative attracting and holding onto customers.  For shoppers, pop-ups simply mean more power in their pockets.

OUR BEST WISHES TO YOU AND YOURS FOR PASSOVER & EASTER!

Filed under: global marketing, marketing strategy, Shopping behavior | Tagged: , | Leave a Comment »

Hunger Games: Top supermarket chains

Posted on March 26, 2012 by Manager
A typical interior of a modern "superstor...

Temple of great shopping. (Photo credit: Wikipedia)

It’s good to be in the food biz today.  For one thing, everyone has to eat.  Then, there is the recession that means more at-home eating and, in fact, eating as entertainment. 

Speaking of which, “food as pornography” is a viral message out there these days, thanks to the ever-irreverent Anthony Bourdain (Yes, that means you’re guilty if you send friends photos of your meals.)  Let’s face it, food is just plain fun (especially if you’re not actually going hungry.)

It’s also big money.  Supermarket News recently announced the annual ranking of its Top 75 U.S. food retailers and wholesalers who, for the first time, topped the $1 billion sales mark.  While some of this increase is attributable to inflation, much of it is due to acquisition strategies.

One of the nice surprises in SN‘s “Top” list this year was the first-time addition of Sprouts Farmer’s Markets (#68), whose recent buyout of Phoenix’s Sunflower Markets was the result of many years of planning for this savvy home-town company.  It’s good to see the smaller operators join the big leagues.  Fresh & Easy also appears to have overcome its challenges (chief among them of adapting  British concepts and style to America) to join the list for the first time as #75.

Of the big boys, merchandising wiz Target also joined the food winners for its first year because of its new P-fresh concept, which, while low on assortment, is high on enthusiasm.   Costco jumped to #3 to reaffirm its hold as the club category killer, with license to thrill. 

Large fish eating small fish is as old as time, and gaining market share via M&A is standard practice.  But that strategy is mostly about satiating hunger and not about being special.  That takes a different sort of metrics, and that’s where the industry awards come in.

This year, SN voted for giant Ahold USA (Stop & Shop, Giant-Landover, Giant-Carlisle) as Marketer of the Year by “providing value and enhancing the shopping experience”.  One of their big winners is their huge private-label program, and they are committed miners of consumer data to leverage promotions.

At about the same time SN announced the supermarket supers, J.D. Power & Associates (of auto industry fame)  put out their Customer Service Champions Study.  So while SN‘s ranking is based on  numbers (quantitative), JDP’s is based on consumer opinion (qualitative.) 

Acording to the study’s Executive Summary,  winners at retail focused on four key areas:  people, presentation, process, and price.  Importantly, they measured responses in tables that correlate to conversion and retention: things dear to the heart of every retailer.

This year’s selection of Publix (Southeast) and Wegmans (Northeast) as Champions in the supermarket sector was no great surprise, but it was interesting that they were the only two food chains selected from 50 winners (out of 800 companies) in varying industries.  Given that most of us buy food in supermarkets as opposed to, say, iPads at Amazon, it seems more chains should have made the cut.

That’s not to say these winners are not notable:  to the contrary.   Publix has long been a favorite in the Southeast, and folks who move from the region still get misty-eyed when talking about the stores. (One of the nicest things they do is hire senior citizens as ambassadors) while Wegmans is almost a religion in the Northeast.

Concurrently, Wegmans and Publix were also recently named by Fortune magazine as one of the 100 Best Companies to work for.  This is the 15th consecutive year Wegmans  has been listed and means they walk the talk, such as living a “work-life” balance.  They set out to show that happy employees means satisfied customers.

While it’s a good thing these chains were honored, it’s too bad only a few Americans will ever shop in them because they’re regional.  So, while they may hunger for the human hand of a Publix or the superior service of a Wegmans, many just don’t have a choice.  They may frequent a chain because it’s the only game in town, but that doesn’t necessarily mean they’re thrilled with it.  

As we noted in earlier posts, customers crave deals,  but they’re also hungry for intangibles that these JDP and SN award-winners provide:  the feeling that you’re on a special adventure.  It just goes to show that  feed the soul, and the stomach will follow.

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Pinteresting stuff

Posted on March 14, 2012 by Manager
Pinterest

The new darling of the internet (Photo credit: stevegarfield)

As marketers, we need to be on the leading-edge (sometimes bleeding-edge) of things, embracing new ideas and technologies that drive folks to spend.  Even if we don’t adopt them ourselves or recommend them to clients, it’s our job to know what it’s all about.  To know for sure we need to actually taste the tech du jour.  

Not too long ago we delved into (and posted about) business networking (e.g. LinkedIn),  social couponing (Groupon,  etc.) and mobile apps  (Foursquare, etc.) that are drastically changing the way we shop…heck, live!  Today we’re taking a deeper dive into the new social media site that appears to even be bypassing the popularity of Twitter:  Pinterest.   

If you’ve been living under a pin cushion, this is news to you.  If you’re an early adopter (like our colleague and fellow blogger, Bev Oster - www.osterads.blogspot.com - who deserves credit for telling us how hot this was) then Pinterest is already old hat.

If you clicked on the link above, you’ve already learned all about Pinterest.  This way we don’t waste your valuable time explaning what it is, but just jump directly into why or why not it’s hot.

First of all, let’s admit that these baby-faced geeks who come up with this crazy stuff, launch an IPO and become billionaires before they even get facial hair make marketers green with envy.  In contrast, we have to really work for our money…and into middle-age, at that!  

That being said, we can now move onto the subject of passion.  That’s what Pinterest is really about:  what floats your boat, or more specifically, a photo of your actual or dream boat a-floating.  And, as we all know, a picture is worth a thousand words…

It seems a picture is soon going to be worth more than the 400 or so characters allowed on Twitter.  For those  genetically unable to explain things briefly, this is not the preferred medium.  (Ergo: the blog! ) Facebook is perhaps too personal for some, especially for B2B marketing.  However, photos we all get.

Can you feel the love tonight?  Certainly Pinterest founder Ben Silvermann did as he stepped in front of thousands of clicking (they still do that??) cameras at the South by Southwest Interactive Conference in Las Vegas.  With more than 11 million unique users per month, Pinterest has doubled its audience in the past six months.   

Importantly, the average Pinterest user spends 98 minutes/month on the site, soon slated to exceed the time spent on the “other, older” social  sites.  They talked today about improvements and additional capabilities geared to steal even more of our time, including an Apple iPad app:  the perfect accompaniment to the recently served-up Version 3…with more resultant publicity for both companies, of course.

After jumping “in it” recently (late adopters), we believe this new darling of the internet bears exploring as a marketing tool. 

 First of all, you have to be invited to join the site.  Admittedly, the 24-hour waiting period for acceptance caused some hand-wringing…”Anticipation, is keepin’ me waitin’… as Carly Simon famously sang.  Certainly a brilliant intro.

Secondly, the visual impact of Pinterest  is powerful, if not overwhelming, at first.  But soon you realize all those images (boards) that you can control, select and add to is exciting.  If you have the type of spatial ability that makes you good at video games, “this Bud’s for you”.

The viral capabilities are also impressive:  we had dozens of “followers” within seconds of posting.  We’ve never experienced this type of heady popularity!  More than words, images elicit the most visceral and instant response.  What’s more, the follow-up emails linking directly to all your new fans generate an instant database.

 The ability to create numerous ”boards” geared to your specific interests (test concepts), while remaining fairly anonymous (no profile needed but you can link to your other “salesy” site) and thus disguise the true intent of the posts (shamefully promote yourself or product) is, to us, the real magic here. 

In summary, the site relies on the brain’s ability to knit common images and threads together for a sum greater than the parts: a total that penetrates like no verbal message.  It’s intelligent marketing for today’s smart consumer. 

In short, Pinterest may just be the new kingpin of pull.  Or it may become just another social media site.  Let’s see what happens?

(P.S. update 3/21:  Since we posted the above we have noticed there is an increase in “long copy” posts on this site.  This means folks are writing too much:  entire manuals, in some cases.  Please stop!  This is ruining the whole idea of this site which is all about visuals.)

Filed under: global marketing, marketing strategy, Shopping behavior, social media | Tagged: , , , | Leave a Comment »

Apple vs. orange [updated]

Posted on February 24, 2012 by Manager
J.C. Penney Co., Miles City

The oldie but goodie model?

There have been numerous reports in the trades about J.C. Penney’s (JCP) new “fair pricing” strategy, although  in the grocery biz we just call it EDLP (every-day low pricing.)  Yet while there is something elegant about this new JCP term, according to some it’s not so fair a practice…

We’ve posted here before about how EDLP is now the norm.  Whereas, not so long ago, many chains embraced  “Hi/Lo” (promotional) pricing, today’s competitive and ever-changing retail scene made it a cumbersome strategy.   We understand JCP found it so when it became mired in coupon hell…

A couple of years ago the venerable chain, eager to rebrand itself as hip, redesigned the logo and shortened its name (a la KFC).  It then supported the new look by hiring Apple former retail wiz, Ron Johnson.  (We’ve posted about Apple many times: the last on 10/19 as a tribute to Jobs.)

With this hire, JPC sang  “Get ready, ‘cos here I come! “  Now the question is:  has it arrived?

When the company introduced the new pricing strategy earlier this month they explained that it reflected the six “maxims” of retailing:  Price, Promotion, Personality, Product, Presentation and Place.  Today, some folks are saying they forgot a very important “P”… as in People.

Savvy marketers know that no matter how sexy a strategy, if employees are not executing it properly, it’s a goner.  Even if it comes from the man who came up with the “Genius Bar“.  In fact, Johnson re-positioned the entire sales function at Apple.  In addition to resident nerds manning the Genius Bar, customer service reps became Concierges and retail associates, Shopping Specialists. 

Rival Microsoft even criticized Apple’s “More than a retail job” recruiting ad headline, as though “retail” were a dirty word.  Say what you may:  Apple stores continue to be one of the highest per-square-foot grossers around and a true retailtainment experience.

But let’s call a spade a spade:  JCP is no Apple.  Some have even called it a lemon… We’re not saying that.  We’re just saying that what’s good for the goose may not be good for the gander.

Speaking of which, your blogger took a gander at the new strategy at work at the local JCP.  (It’s our policy not  to criticize retail strategies until we do some “secret shopping” of our own…)  Here are some initial observations:

  • Managers full-front & center.  In the past we’ve searched for anyone ”in charge” for special assistance, an explanation, a tricky exchange, and found no one.  Now they’re everywhere:  pep-talking the associates, moving racks around, etc.   It’s clear that executing this strategy is requiring top-down, hands-on work.
  • Chatty Cathys.  We are aware that many shoppers find this a benefit, and it especially makes sense if the boss is hanging around, watching.  For those of us who prefer a more solitary experience (especially when hunting for the embarrasingly cheap)  the “NBF” attitude was a bit off-putting. 
  • Discretion not the better part of value.  Maybe the new “fairness” also means discreet, but racks that don’t shout “SALE!” may simply be bypassed.  The smaller signs were difficult to spot across the crowded room.
  • Some  prices more fair than others.  We found the three-tier pricing confusing.  Their ads say:  “Three types of price, that’s all.  Nothing Complicated…”  That depends on how complicated you like it.   Racks with “Best Prices” were assumed to mean bargain basement, but seemed not to be the case.  The “Month-Long Values” rack had some better deals…but then, so did the “Fair & Square” group.   In short, for shoppers in a hurry (like this one), this is not a good thing.  For JCP this may be a strategy to get you to paw through it all, assuming you have all day.
  • Better assortment and  merchandising.  On the bright side, we saw a more open, sophisticated ambiance, with better merchandise.  There was also innovative pairings of accessories, with improved color blocking and displays showcasing  the hue “du jour” as seen in the fashion mags.  This alone made the pricing confusion (above) bearable (barely).

We have found that there are many lessons that can be learned across industries, and we are big proponents of cross-pollinization.  We have also seen it go wrong at retail, as when WalMart believed its expertise in groceries would translate easily to fresh produce. (But they then hired just the right person to head this department and fixed that.)

We’re seeing challenges now with TARGET expanding its fresh food offerings.  We are not saying they won’t  eventually succeed.  After all,  if anyone “gets” merchandising, it’s them.

Perhaps JCP may find it’s limited in this new direction by its own positioning:  a lower-level chain with an economically-challenged clientele.  Importantly, their salespeople don’t earn that much:  they’re no Genius Baristas, at least.  What is the incentive for them to ensure this new strategy takes off?

In summary, it’s apparent that succeeding at retail today takes more than catchy slogans by industry gurus.  Most importantly, you gotta know your apple from your orange.

____________________________

POST UPDATE — Since we posted above, the news on 5/31 from JCP is that their new pricing and promotional programs failed to generate the response expected, with visits during last quarter down 10 percent and sales five percent.  Today the company announced it will reinstate some new promotional programs including “Best Price Fridays” .   Now we have FOUR pricing strategies to remember when we shop there. (But remember:  you read it here first… :) )

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Rolling in it deep

Posted on February 13, 2012 by Manager
English: Whitney Houston talking to the audien...

She could have had it all...

“The show must go on”  is the dictum for those both in showbiz and the smoke-&-missors (i.e. advertising) biz.  If you are handed lemons, make Limoncello, or so the saying goes.   This means that when you have a great event to pull off yet tragedy strikes, do you cancel or slog through it? 

This year’s Grammy Awards producers had to wrestle with just this situation, as the Whitney Houston tragedy took place right before their eyes and shook the industry to its core.  Must the Show really go on?  If so, do we recognize the tragedy?  How much of it?

Striking just the right note is always of concern to singers, as it is for marketers.  Last night’s situation meant a critical balance, as the whole world wanted to see if they’d do it right.  To their credit, they decided to do it, and they pulled it off. 

 It started with the opening prayer:  brief and to the point.  Whether you believe in public prayer or not, the key is they addressed it immediately and they did it with dignity.  #1 crisis publicity rule:  come out with it, then get on with it.

Yet finding the right road between a tribute and a tributary is a difficult one.  A few raindrops are good:  a raging river, not so.  Plus, it’s real bad for all those fake eyelashes…

The cringe factor is always high at these types of awards anyway (Kate Winslet-type acceptance speeches, and all) and after so many similar awards events over the past several weeks, there was a sense of exhaustion all around.

Importantly, the focus was on the talent of the Lost One, not the tragedy of a life wasted.  They’ve seen it all too often before:  let’s not remind everyone that it all hangs by a thread.

The commercials were also thoughtful, notably Chipotle‘s,  addressing “a better world” theme  (but are they really going to help make it so?), and some gave us the giggles:  those silly insurance salesmen!  But we needed them after the somber opening.

Then, there was a healthy dose of nostalgia:  always good to get us misty-eyed and conclude that, yes, life is worth living, especially if you’re gonna end up that rich…McCartney, Campbell, The Beach Boys,  Bennett:  they all still have it: if not it all, certainly enough to still keep them going and us interested.

In contrast were the gyrations of the younger set:  Perry’s pyrotechnics; Rihanna’s rough & tumble rock, the amazing Chris-obatics…Young performers today apparently can’t just get up to the mike and sing their little song:  they have to have a full orchestra and dancing entourage behind them.  Not even just dancers, but Cirque de Soleil-style acrobats! 

To their credit, for the most part they are sharp, energetic and skillful performers.  When not being repetitive, that is.  There is something about a lot going on at once that makes it seem like nothing is.

But then there was Adele, the refreshing throwback to the 60s, when nice, English gals with soft curls and skin like peaches actually rolled around in the muck…  This one, from the “less is more” school, packages herself and her shadowed back-up ladies in elegant black, belts out the nasties, and then cleans up on the awards.

In short, it was a tour de force, illustrating the ability of American showbiz folks to rally around their own and to showcase all they have, while they’ve still got it.  We marketers can learn from that.

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New year…new directions!

Posted on January 27, 2012 by Manager
English: Infographic on how Social Media are b...

So many more media affecting retail today

It’s been a long time since we’ve posted, so a belated (but just right for the Chinese) HAPPY NEW YEAR, and the best for 2012!

Some of our loyal readers have asked why we haven’t posted in a few months.  We’re pleased some of you have “missed” us, but we believe we have good reasons for being MIA lately, mostly having to do with more work.  (And for that we’re truly grateful!)

But the truth is we’ve also been thinking seriously about new directions for this blog.  After all, good marketers re-invent themselves every few years…

After going and growing for almost three years(!) where we saw our readership triple in 2011, frankly, we felt we had achieved our initial goals for this blog.

 Also, as you can see in our “topic cloud”, on right, we’ve covered a lot of ground and touched on so many issues we risked becoming repetitive.  Repetitive and boring are death knolls for bloggers…

There is also the issue of competition.  When we started this blog there were only a few sites dedicated to marketing professionals (or marketeers, as industry groupies are called).

Today, not only has business blogging exploded  but everyone, it seems, is a pundit.  There is more advice floating out there than anyone can or even wants to absorb.

Then, there are popular social networking sites such as LinkedIn that provide a forum for members to automatically post their own blogs (we’re guilty) thus effectively doubling the number of posts in the internet…Too much noise, we think.

Finally, there is the global business context we operate in.  We’re doing more internationally than even one year ago.  New trends are blasted worldwide within seconds. 

With the help of our network of colleagues and reps in North, Central and South America, we hope to bring you the latest in trends in these cultures (and others) that might affect us here in the U.S. the minute they emerge.

Today, clients come from anywhere; we work any place, any time.  (Folks don’t notice nor care any more when our email is sent at 2 a.m.) In short, never has our “Think global; act local” e-mail signature line been more relevant.

So, for this year, starting next month, we’re going to try some new things:

1.  We’re cutting the posting frequency:  once a week is too often, as many of our readers told us that they read past posts when they read the current one.  Less, we hope, will mean more.

2. While we’ll continue addressing the marketing “angle” of  topics recently in the news (our readers say they like that), we’re also going to be more focused on the retail arena.   After all, that’s the main concern of our clients’ and colleagues.

This is also an area that is constantly in flux today due to the tech innovations, social media growth (see illustration above) plus the changing consumer and economy.  The latter is, of course, a concern to all for 2012:  how is the global recessive economy affecting shopping habits?

3.  Were’ also going to focus on specific areas of interest to marketers planning their programs.  Here are some we hope to cover:

  • Key industry trends as reported by respected retail journals and marketing experts (other than us!)
  • Review of technology and systems that are changing the face of retail
  • Insights into consumers:  what is the new “face” of the shopper?  What makes them buy?
  • Changes at the store or service level:  how they operate successfully in this environment.

We hope you will like these new directions, and continue to read and share your views with us.  Please also let us know what other topics you’d like to see…and a warm welcome back!

Filed under: global marketing, marketing strategy, Shopping behavior | Tagged: , , , , , | Leave a Comment »

The Retail Games

Posted on November 30, 2011 by Manager
Black Friday line

Let the Games begin!

For the sake of your health and safety, not to mention sanity,  we trust you came away unscathed from the recent shopping madness this past weekend that concluded with Cyber Monday.

What’s next:  “Techie Tuesday”?, “Wacky Wednesday?”  (Don’t laugh, and remember:  you saw it here first).

You’d hardly know there was a recession going on for the crowds that made this Black Friday allegedly the best on record (final sales figures still to be tallied), sending retail chain stocks soaring 5%+.  The Occupy Wall Street folks who organized to boycott “big chains” during the Holiday didn’t seem to have made a dent.

For marketers this urge to splurge is a rather thrilling, if unsettling, phenom.  After all, it was only a few years ago that the term “Black Friday” even became part of the American lexicon.  An elderly family member still thinks it’s some newfangled  religious holiday…

With stores now open during the sacrosant Thanksgiving Day, retail is now a new ball game:  one where nice guys finish last.

The protests of the pious about spending this time with family makes a good point, but the harsh truth is that retailers would not be opening their doors if there wasn’t demand.  And consumer demand has apparently reached a fever pitch as shoppers with pepper sprays and push strategies win the day.

As marketers, here are some key questions to ask ourselves about this trend:

  • If everyone’s already shopped out by Black Friday, what becomes of other Fridays…or any other day before Christmas?
  • What happens to manufacturers when inventories are already depleted for the Holidays and no new orders come in?
  • What do retailers do when their gross margins are dented by these deep discounts?  Do they dive even deeper?
  • If consumers only crave deep discounts, how will we wean them back into EDLP?

You may recall the halcyon days when many chains employed  Hi/Low pricing strategies, where discounts were something to be savored, special promotions were creative hallmarks, and blowouts only occurred post-Holiday. 

With Everyday Low Pricing the norm and “extreme couponing” the end game, it’s a challenge to make a case for brand-building.  Or is it?

We’ve blogged about the complex human character that hungers to shop.  There are elements at work in our subconscious that take pleasure in these animalistic rituals taking place in the retail jungles.  In short, the Thanksgiving spending spree is just one big game hunt.

Yet, once the thrill of the chase, the stampede of the crowd, and all that glitters disappears and shoppers finally view their prize quietly at home, do they hear the little voice asking:  “What is this garbage you just spent your last dollar on?!”

Filed under: global marketing, marketing strategy, Shopping behavior | Tagged: , , , | Leave a Comment »

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