Retail Marketing

    Services Delivered Through Screens.

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    A few years ago I did some contract work at ad agency JWT on the Microsoft business. While there that I met Josh Shabtai. Josh had a digital title but his thing was gaming and coding. You could tell he wasn’t one of those guys you easily could put a label on or fit into a box. He was just Josh and you knew he could invent and solve problems. Fast forward a few years and lo-and-behold he is living in the NC piedmont working at Lowe’s. Didn’t see that coming.

    His title is Sr. Director | Ecosystem, Lowe’s Innovation Labs at Lowe’s Companies, Inc. and yesterday I had a chance to see him online at a PSFK event (thanks Piers Fawkes) entitled Future of Retailing, something/something.

    I shop at Lowes because it is closer, but I’ve always thought of it as Burger King to Home-Depot’s McDonald’s. Well, I’m not so sure anymore.

    Josh and Lowe’s understand that a real opportunity zone for Lowe’s is service — for consumers and professionals. Tool geeks want to geek-out with other tool geeks. Pretenders like me want to learn without embarrassment. Tyros want their hands held. And for all DIYers, YouTube is the go-to platform. Josh sees a future in which “services are delivered through screens” and his job is to make the Lowe’s Innovation Labs ground zero. Why cede the home improvement service to YouTube? So he’s building.

    The journey should be an exciting one. Watch out for it.

    Peace.

     

    Sears Spanish Inquisition

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    sears

    “All Spanish all the time” is the business strategy I have recommended to Sears in this blog a number of times. Once again, quarterly earnings are out for the Sears Holding Company (owner of Kmart) showing it is hemorrhaging money. You can’t continue to lose a billion plus a year and stay a viable business (listening Blackberry?).

    Think about the country. Think about the state of retailing…with more and more sales conducted online and delivered via the mail and package carriers. Where does this leave Sears? And all retailers, for that matter.  In need of bold moves. All Spanish speaking today, is a first-mover strategy. And frankly a no-brainer. If it doesn’t happen in 2014 it will happen at some point. If not Sears or Kmart, someone. The purchasing power of Spanish speaking Americans is too great. The growth rate of this segment of the pop. too great. 

    Sure stores will have to close. But the idea is solid. The market is solid and the move will have unexpected positive impact not only on the expense side of the ledge, but also the growth side…with new opportunities for other services hitting this massive part of the economy.

    Edward S. Lampert, CEO, pull that Band Aid off right now. I smell a Fortune (cover) in it for you. Peace.   

    Offline Retail Sales are Dying.

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    Who is the Mark Zuckerberg of retail?  Who is the David Droga of retail? (You never heard Mr. Droga ask the question “How big can we get before we suck?)  Is it Jeff Bezos? Where is the vision in retail?  Who is going to makeover Sears as the first national Spanish language seller of goods and services?

    Radio Shack lost $120M last quarter. Sears, J.C. Penny, Best Buy are hemorrhaging or are under pressure. Penny’s brought in a visionary retail guy — from Apple. Off the shelf vision?  Didn’t work.  

    All those marketing folk with their PowerPoints talking about “disruption” and “market discontinuities” aren’t making any money by changing retail, they are getting honorariums and speaking in front of pop-up tables topped with water cruets and note pads. The seminar circuit.

    Where’s the vision?

    Some kid is going to have an epiphany while in a college books store and it is going to lead to real idea.  That kid just might have the huevos to turn things upside down.  Perhaps a free retail channel powered by advertising. Or the opposite — a high cost, high touch, high value, all-in subscription approach.

    This is one ripe category. And there are a few dollars at stake.

    Peace.

    Marshalls and Recent Grads.

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    My daughter, freshly graduated from college and about a month into her first full-time job, loves Marshalls.  Marshalls is a department store chain with a very nice selection and great prices.  Apparently, she and her friend would shop there every day if they could.   They have a little jing in their pocketbooks and for the first time have the flexibility to shop on demand. That’s not to say they buy something every time they’re there but they look around (enjoy the air conditioning) and feel the power of consumerism.

    A club?

    Stores like Marshalls have been advertising and mailing to my daughter for years. Perhaps it has worked, perhaps not, but why not take advantage of recent graduates new found status by create a tailored marketing plan and in-store experience for them; one that might just make lifelong customers of them.  How about taking some of that hundred thousand square feet of retail space and turning it into a college graduate corner. Display clothes, apartment furnishings, some appropriate books, maybe some free coffee and a financial advisor. Put up some PC stations with access to Facebook. Create a Foursquare check in incentive. Cookies? (The kind with raisins.)  Celebrate these young ladies as they enter a scary part of their lives.  Help them cope. Let them commune. Test it out Marshalls!  Peace.

    Brand Plan for Today.

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    Brand planners love the future. Almost as much as they love the past.  Google is introducing some type of campaign or game or something today at South By whereby it’s mashing up some old school ads form the 60s with new school media.  I’m sure it is going to be lovely and may even sell a little Coke, Alka-Seltzer and few Volvos — participating brands.  Hopefully, the effort will sell some Google thingies.

    Planners — and I’m one of them — love the future.  Do things that have never been done. Build new categories. Break new use-case ground.  Design ideas that are future-proof.  Plan “beyond the dashboard” as I like to call it.

    But what’s wrong with today?  Today is not sexy for most. Today is boring.  Or is it?  Retailers and those focused on retail marketing are all about today.  And they are so amped it’s scary. Zimmerman Advertising is a retail advertising specialist and they’re not too famous, but they could be.  They are all about the now and have had long-term success. Cash registers are their mana.

    The past is gone.  The future never arrives (Remember being a kid in bed on Christmas Eve?  That was some existential shizz, no?)  “Now” is what’s up.  Sell more now.  Today.  Plan for today. Peace!

     

    T-Mobile Advertising is Working.

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    Right now, T-Mobile’s advertising is the best in the category.  The way it integrates print, TV and web is beautiful, the art direction is constant, and spokesperson Carly Foulkes has been managed brilliantly.  Never tarted up, always positive, always girl next door, Ms, Foulkes and agency Publicis Seattle are building a place in our brains for this price shopper 4G mobile brand.

    As ubiquitous as this advertising is, it’s not Geico annoying.  Not AT&T message meandering or Verizon techno mappish. It’s a clean, retail brand imprint and it’s beginning to work.

    Creative advertising dudes (less so dudettes) will snark at this comment saying the work is as creative as chipped nail polish, but from a brand management point of view, in a muddled market, this work is moving phones.  And T-Mobile doesn’t even have an iPhone.    

    Imagine if T-Mobile changed its spokesperson every couple of ads.  Or tried to compete with Verizon by employed a lot of red in its color palette. Or rather than hammer home price it showed all the cool phone innovations (okay, they do a bit of that on TV).

    If the AT&T purchase goes through next year, don’t be surprised to see BBDO morph the campaign Ms. Foulkes way.  They won’t cut over using the Magenta color the way they did using Cingular orange, but they know enough to keep the price work clean. Or we might just see Publicis hold the retail business and cede network and inno to BBDO.

    T-Mobile has organized its brand and kept to the plan. That’s why its numbers are creeping up! Peace.

    A Tale of Two Salespeople.

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    I go to REI yesterday to exchange a pair of Oboz hiking shoes for a wider pair on what was Day 2 of their retail reopening. I had purchased Oboz because a friend, Skip, told me a wonderful story about his buying experience. If you read my previous two posts you’ll recognize Skip as an Oboz “Advocate.” Skip went to REI having done some research but uncommitted to a brand (he likes researching things). His salesman was of a certain age – not an age you’d associate with lots of rigorous hiking – but Skip’s a mensch and didn’t hold it against him. Good thing.

    The dude tells Skip he’s been in the shoe business his whole life, sharing bits of his resume. Then he goes on to tell the Oboz story, highlighting their special “O Fit Insole” and all the other cool, comfort and durability features. Skip was sold and now swears they are the most comfortable hiking shoes he’s ever owned.

    My shopping experience was different. I had picked up my Oboz the day before, sight unseen due to the Virus, and was returning them to get a wider size. Arriving in the shoe area I was met by a very nice young saleswoman. She knew her brands, models names and sizes. She went back to the store room and returned with my wider shoes. Then she slid the shoes to me across the floor. (Perhaps as instructed.) This saleswomen though simply transacting business had an opportunity to work me a bit. Maybe even turn me into an advocate. But she did not. It was a lost opportunity.

    This is a tale of two sales people. One I’d never met but who had a multiplier effect on a Oboz sale and likely hundreds more. The other was a transactor of business. Friendly and efficient.

    Just as there are two types of sales people there are also two types of marketing: the “slide the product” and the “engage and educate” the consumer. Which makes more sense?

    Peace.

     

    The price/convenience trade-off.

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    I’m a man. Here’s how I shop: I go to a store, walk around, talk to a salesperson, maybe another shopper and I buy.  If the store doesn’t have what I want, I either go home or visit another store.  More often than not, it’s a one store and buy experience.  Price is important, but usually only when comparing choices in the store.  Convenience.

    As technology wends its way more and more into the shopping process and the best price on a skew (product number) is only a click away, (#bestpricesamsungTV) many of the shopping choices we make will be made for us. And price variation will be minimized.

    There will be Amazon for eshoppers and for those who want instant gratification there will be SuperRetailStoreCo or something.  Variability will be minimized in marketing. All that will be left, variability-wise, will be the brands. But marketers who spend too much on branding, will have reduced margins and will likely fall off.  Will it be a brand new marketing world in 2050?  Oh yeah. Should be exciting. Peace!

    Sears Big Opportunity

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    I’m no demographer but it doesn’t take a numbers nerd to know that a growing and sizeable portion of America is populated by Hispanics and Latinos.  Name a national retail store brand that caters to this group?  In NY we have independent bodegas, but that’s about it.  Among the retailers that index high for the Hispanic and Latino communities, the one I think should attempt to corner the market is Sears. 

    The company is talking about selling off its most profitable stores to generate cash but the bold move – the future-forward move – would be to go “all Spanish all the time.”  Find the high density markets, tailor the skews, hire the right sales associates, alter the layout and colors.  Celebrate Spanish culture in a store retrenchment that will not only save the company but make it thrive. The Sear Roebuck Catalog was a cornerstone of America marketing. Sears can create another transformational marketing moment by following our changing demographics. Be bold, be brave… as they might say at David & Goliath.

    Peace (in Syria)!

    One Mis-Direction

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    Office Depot, according to Stuart Elliott the ad writer for The New York Times, will be conducting an anti-bullying, back to school campaign this summer, using a boy band called One Design (or some such, JKJK). The grab-all idea is: “Live. Love. More” — as in “Live kind. Love everyone. Move together against bullying.” I’m not into 3 word taglines or ideas and the ones that require 8 more words to explain are even more perplaxing but I do love causes. Unfortunately, using causes as a way to break through with your advertising is a fairly common mistake.  They are easy to talk about, easy to surround with quotes, advocates and a powerful narrative. Often though, they are off the brand plan and only slightly tethered to sales — if at all. Plus they are kind of transparent.

    That said, bullying is bad so let’s hope this campaign works. The creative idea is a montage too far. It’s almost ad-silly. The idea would be best boiled down to “Live Kind.”  I don’t think Lance would mind (not Lance Stephenson).  You see, if you “live kind,” then you probably try to love all and shun bullying. Live kind is memorable. Familiar, yet unique. It’s also a baby step, not the whole enchilada.  

    This campaign is more for parents then kids, I get it. And like aroma therapy, it may provide a nice glow for the brand.  Were I the brand manager, however, I’d do this through the PR group and use my ad dollars to de-position Wal-Mart, Office Max and Amazon.  With a kick-ass, 360 retail effort – trotting out some mobile and twitch point planning tricks. Peace.