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Another season of holiday sales and advertising is so quickly coming to an end. It’s often said that this is the most important sales season of the year, and yet so much of the marketing efforts are so predictable–so redundant. Let’s look at some of this year’s efforts …what works and what doesn’t.

BLACK FRIDAY: I have to admit that I’m not a big fan of this sales event that makes more media noise than profits (as in the black). I think that most retailers have just shifted the sales revenues to earlier day parts so that now Black Friday has almost become Black Thursday Night and Friday Dawn. Then again, I started thinking about the successful post-Thanksgiving events of years gone by and remembered that the excitement was all part of the experience of shopping for Christmas presents and being caught up in the stores “dressed in holiday style”. To some extent, Black Friday has recaptured that excitement for many shoppers. Part of the new holiday tradition is to get to the store at the crack of dawn, or earlier (sometimes with the whole family) and take advantage of the super saver items. If more stores put as much effort and budget behind the rest of the holiday season—not to mention the rest of the year—there would be a lot more customers and a lot more revenue.

MACY’S: I have to hand it to the bastion of department store retailing.. From the parade to the multi-media assault every day leading up to Christmas, They really put out an effort to create the glory days of 34th Street. However, they—and Dillard’s, Sears, and the other traditional department stores—just seem to put as much on sale in as many one-day sales events as possible. There just doesn’t seem to be anything exciting to make all of the customers want to go into the store for the experience. The watch catalogue was well done, but boring. The fragrance catalogue was a cacophony of scents that make you want to peel each and every one of the scratch and sniffs just for exercise. But do they make you want to go there instead of Target, Kohl’s , Walmart or any of the specialty chains? I think not. Let’s get back to making the brand an exciting place to go and the gifts with your logo a symbol of something special and not just a one-day sale.

HYUNDAI: I think this is one of the great brand development strategies over the past several years and certainly has made this car one of the new powerhouse brands in the industry. However, this year’s holiday efforts (and a Hyundai would be a nice stocking stuffer) were really quite silly. A bunch of weirdo-looking singers and musicians singing poorly with brief shots of the cars didn’t live up to the new styling and certainly doesn’t compete with the great effort put forth by Lexus this year.

HALLMARK AND FOLGERS: These two brands with everyday products continue to do a great job at Christmas to bring back the traditions and feelings that make the holidays so great. Hallmark’s commercials outshone the 200 holiday movies that were featured on their cable network, and Folger’s spots are so good you can almost smell those mountain-grown beans brewing. Great spots. Well-placed.

KOHL’S AND JCPENNEY: Help save the forests! With all the circulars that fill the paper and mailboxes, it appears to me that these two must have printing subsidiaries that make more profit than the stores. They seem so redundant and I wish they would take some of the dollars spent in print and do something exciting in broadcast. Great stores, but please how about some brand statements to fight the discounters.

GAITHER HOMECOMING: I had the pleasure to attend the final Gaither Homecoming Christmas concert in Jacksonville, FL, last week. It was a moving, exciting experience even if you don’t like gospel music. However, what is most impressive is how Bill Gaither and his family and organization have built a brand that is so consistent and so on target in television, dvds, cds, magazines, books, programming, gifts, concerts, and events. The Gaithers have become a resounding success as a brand and yet have maintained a sincerity and down-home personality that keeps their brand in the hearts of thousands of loyal followers (and customers).

OFFICE MAX: OK, my family “elfed” ourselves again this year and shared it with our friends and families. I can’t help it, it’s so funny! This office supply store, however, knows that it takes more than good prices on laptops and thumb drives to win over customers in this competitive category.

These are just a few of many brands to look at. Overall, I think many retailers and other consumer brands have left the creativity at home when it comes to the holidays. And while retail sales have increased versus last year’s poor showing, there is so much more that could be done with some breakthrough thinking and creative execution to make this the season for branding as well as giving.

Merry Christmas!!
Ken

There’s been a lot of criticism in the trade press about the new theme line introduced this past week for Chevrolet. “Chevy Runs Deep” is the signature that the car company has put on a series of nostalgic spots which stress that Chevy is a brand that we grew up with and that has been part of the American scene for as long as most can remember. The spots are well produced and, for us baby boomers, the memories are as vivid as Don McLean’s “Bye Bye Miss American Pie” verses.

Once again, the marketing experts have forgotten what the brand is all about and are focusing their attention on the theme line, tagline, or slogan for the product and not the essence of why people buy it in the first place.

According to Jeff Goodby from the company’s ad agency (in Advertising Age), “It’s not fair to judge a tagline out of context.” I would go further and say that it’s not fair to judge a brand by its tagline—in or out—of context. I believe the Chevrolet branding has been one of the best in the auto industry for the past few years with or without great taglines we’re used to, such as “An American Revolution” or “Like a Rock”. The car/brand is part of the American scene and they have appealed to basic American values ever since it was part of “Baseball, Hotdogs, Apple Pie and Chevrolet” decades ago.

The fact is, the brand has several really good, quality models now that continue to sell quite well (not like they used to when Toyota, Hyundai, and Honda weren’t as strong). Despite the economy, it has many loyal customers (and non-owers as well!) who have a clear understanding of the Chevy brand and its history. The concept of building a brand based on its American roots is not new and, quite frankly, today has a lot more resonance than others (“Droid Does” comes to mind).

The campaign is more that just a look back. I believe it stresses loyalty, quality, and uniqueness in a very engaging manner. However, I also believe the key to Chevy’s future success is that its brand strategy “runs deep” as it continually improves its models, quality and can maintain a positive positioning in the face of overwhelming competition from abroad (even if they are made in Tennessee or Ohio). Chevy has staked its claim on the values that many of its target customers (middle of the road Americans) feel are important when making a significant purchase.

I think if they stick with this understanding of their brand and let the critics keep on writing without a knee-jerk change in strategy, the brand will truly run deep in hearts of the market. Now, if they can only get their dealers to understand and live up to it as well!

With the announcement of the impending bankruptcy of Blockbuster, it seems that there are a number of companies, and, for that matter, industries, that may bite the dust as a result of consumers going more online to complete their transactions. While movie rentals make a lot of sense as an online product, there is still an opportunity for companies to build loyalty through an effective brand strategy and execution on a consistent basis.

One of those industries is travel—and there probably hasn’t been a category that has been revolutionized by the Internet as much as this one. Whether it’s airlines, hotels, car rentals, cruises, or vacation resorts, almost everything necessary to “purchase” the service can be done quickly and easily with a few keystrokes. Now if we can just push “escape” and be transported to our destinations, we would have it all under control. Unfortunately that isn’t going to happen any time soon so the need for personal service and brand loyalty is more important than ever. While we have a number of choices in making our travel plans—from the direct company websites to the many travel consolidation sites out there—there is still a need to have a source for information and help to make the right decision. We still want an expert to give us the advice that can, not only make the trip more productive and less stressful, but also we still want to be sure that we aren’t paying too much.

This need is where the companies must make their sites as helpful and as easy to navigate as possible with information and follow up to make sure that you are comfortable with your plans and arrangements. I recently was interviewed by marketing consultant, Terry Brock, for a client of his (travel agents) and you can view those comments by clicking on http://www.youtube.com/watch?v=jqCH_2NjDj8

Certainly this is an industry that has been reeling from all the changes, but it has survived. I believe the reason is that despite all the technology at the consumer’s fingertips, they still want help to relieve them of the emotional stress of travel before their departure. Sometimes this is still a real person, or more often than not, it may be a user-friendly program that makes it easy to get the information and the reservations. I personally use Travelocity as my basis for travel not only because I’m used to it, but because my profile is already loaded and my preferences are in place. More important, however, is the follow up and verification that automatically appears even if haven’t confirmed the trip yet. I also use Hotwire, Kayak, and the dedicated sites to check price, but the brand preference keeps me coming back to Travelocity.

We still have preferences to certain brands. Southwest has consistently reinforced its brand to become the nation’s leading airline. Hilton and Marriott have established several brands to appeal to a variety of travelers’ needs. Enterprise has grown to the top of the car rental business through its personalized service. It’s still all about differentiating your brand by creating a distinctive value and then following it up with a personalized service—either in person or online.

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I’ve talked a lot in these articles over the years about the need for consistency in developing and maintaining a successful brand strategy. There’s no doubt the brands that have the most equity with their customers also are those that adhere to the strategy with every decision made. Whether it’s the marketing message or the product design, it’s important to maintain a unified front in all aspects of the brand’s execution. Unfortunately, many companies adhere to strictly to the adage:
“If it ain’t broke, don’t fix it.” In doing so, they often ignore the changes in customer trends and expectations as well as changes in the economy and the competitive marketplace.

I’m reminded of a Wall Street Journal article I read not long ago about the taxis in Mumbai, India. For years, the streets have been “served” by a collective fleet of over 50,000 cabs and over 200,000 taxi drivers. To say that most of these taxis are uncomfortable would be an understatement. The black and yellow cab is as much an icon in Mumbai as the yellow cabs of New York City. However, the fleet is made up mostly of a model called the Premier Padmini—a version of an Italian Fiat model which ceased production in 1966 or the Indian manufactured version, the last of which rolled off the production lines locally over 10 years ago. They are uncomfortable, non-air conditioned (something I can’t imagine in Mumbai) with scrap metal patches and parts to keep them on the potholed riddled streets with suspensions that gave out long ago. This leaves the passengers in almost as bad a mood as the veteran drivers who insist on keeping their old cars in service.

Competition has picked up with newer, more comfortable cars driven by courteous drivers who will take appointments, provide air conditioned comfort and a much happier clientele. However, the old line is resistant to change insisting that the old jalopies are more economical and part of the Mumbai street scene. The veteran drivers prohibit the new taxis from cueing at the most desirable street corners. They block gas stations so that only older cabs can refuel. They even physically attack the new breed of drivers to intimidate them in a way that a gang of hoodlums protect their territory.

The customers? They overwhelmingly would prefer the new taxi service, but they too are intimidated by the older drivers and fear for their safety. In fact, the new fleet receives over 10,000 calls a day for reservations. The issue has gone to court to allow free competition and calling for enforcement of the law to prevent further violence, or at least the intimidation.

While this may be an extreme example,it does demonstrate that companies often ignore the desires of the customers in order to keep doing what they’ve always done. It’s easier, more comfortable, and less chaotic to simply sticking with the same old, same old.
Today’s successful brands ignore the challenges and instead develop their plans to grow by keeping up with the changes in customer demands and expectations. To beat the competition, we can’t resort to roadblocks or intimidation; we have to exceed those expectations and stay in front of the competition with better marketing and better branding. Kodak had to change from a brand built on film and processing to one on the cutting edge of digital technology. Google could have stuck with being the world’s largest search engine, but change brought online videos, social networks and more. Apple could have stayed with a strong product brand, but retail brought change that helps both the customer and the products. The brands that are in an ongoing state of change and modification—based on what the customer wants—are the ones who continue to grow and succeed. While Mumbai’s citizens suffer through an antiquated system of transportation, the newer, more comfortable brand of taxi is slowly but gradually changing the landscape and providing a long-awaited change

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5 Ways to Endear Your stores to Your Customers.

We all talk about customer relationships but do we really take the time to build a special bond with our customers? To be successful, your store has to become something special to each customer and the best way is to become a good neighbor.
In their glory days, department stores were a special place and important citizens in their communities. They were a part of our lives and special purchases had to come from these special places. The box and the label on it were sometimes as meaningful as the actual gift inside. With consolidation and changing customer trends, the specialness of department stores has faded and they simply aren’t thought of as good neighbors any more. Building your brand requires being a good neighbor,however, as much now as it did back then. Here are five ways you can become the preferred brand by being a good neighbor.

1. MAKE IT SPECIAL. Stores are always having special events, but those that are successful get the local community involved. Bass Pro Shops recently held its big Summer Camp Out, but really made it special by turning their parking lots and stores into a place for all the fun and games of summer camp and their employees and the customers had a lot of fun. And they bought a lot of stuff, too. They did the same with Santa’s Workshop at Christmas. Not a new idea, but the involvement of making this a special outing for the entire community (with a lot of media coverage as well), made this already special store, an important part of the community’s holiday festivities.
   2. MAKE YOUR PEOPLE THE STARS. Store associates work long and hard to help make the sales goals. But, they really enjoy and will put forth extra effort to do something special for the community. Walmart’s support of children’s hospitals in every market is a great example of getting their associates and the customers involved in a common cause. Whether it’s a bake sale, car wash, or answering phones at a telethon. These associates love what they’re doing and it carries on through to the sale floor and registers.
   3. KEEP THEM LOYAL. In my days in the drugstore business, I found that the best performing stores also had the managers and staff with the longest length of service. That’s not by accident. They build a team and they work together to know their customers…and they do. When customers come in and call the manager, the pharmacist, the photo person, the front register clerk by name, you know you are not just a corner store, you’re a good neighbor. Walgreen’s for years has outperformed the industry in sales per store and one of the reasons is their longevity of store staff who know their customers well.
   4. SUPPORT LOCAL CAUSES. Granted as chains with hundred’s of locations, your companies have to keep some control on this. However, encouraging each store to support some local teams, charities, or causes (sometimes the local team like the New Orleans Saints last year become a rallying point for all of the associates to show their pride.) These don’t always require funding. By supporting these local events with in-kind or personal helpers, the store becomes the star and a good neighbor.
   5. INTERACT WITH YOUR CUSTOMERS. I heard a retailer from Chihuahua, Mexico, talk recently that his store managers actually become celebrities in their neighborhoods and towns. So much so that local children want their pictures taken with the manager! Your stores are important to the communities, but the people need to see you and know who you are on the local level because you are an important person in town and represent the chain.
   As I’ve said many times, without a relationship with your customer, there is no brand. Being a good neighbor is having a positive relationship.

Note:  With conversion from Blogger to WordPress, this month’s article was delayed.  Let me know if you have any trouble opening or viewing.  As always, your comments are welcome.

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This year’s GRMA Leadership Summit was a real eye-opener for those of us who monitor retail trends and opportunities. There’s no question that to build our brands today means that we have to be more responsive to change than ever before. It’s not just a matter of getting on the bandwagon of the new technologies and media, but it requires marketers to re-think their programs and strategies and to constantly be ready to adjust how they are going to reach today’s consumer with their messages. Two of the speakers at this summit, Ray Kurzweil and Rob Conway were particularly visionary with what they see happening in technology and mobil media. I wanted to share my notes with you this month to give you some of the highlights as I reported in GRMA’s blog as well. These presentations brought a telescopic look into the future. The speakers were beyond being experts. They brought us an opportunity to look down the road at how technology is going to effect retail business but how it will affect our lives in the years to come.

You should have been there.

8:00am to 9:30am KEYNOTE ADDRESS: Innovation in an Era of Accelerating Technologies
Ray Kurzweil, Famed Futurist, Visionary and Bestselling Author,
Transcend and The Singularity is Near

Reading Ray Kurzweil’s bio and introduction, I knew we were in for an experience. When he started to speak and modestly talked about some of his accomplishments and the people he has dealt with, I was in awe and felt I could relate to those who have climbed the mountain for an audience with the Dalai Lama. Here is renowned inventor and genius, who not only has lived through the information boom of the last 4 decades, but has been instrumental in much of what has happened, and has predicted much of it. The “restless genius” (as the Wall Street Journal has called him) said that the pace of change is accelerating exponential and that the next decade will bring in unprecedented change and innovation. The fact that 400 million people already on Facebook—an idea that hatched just 6 years ago—is just an indication that soon everyone on the planet will have a cell phone and that will bring them access to knowledge that has never been so readily available to everyone.

While the growth is exponential, the size of the hardware reduces at a similar rate (think Univac compared to iPhone). And this underscores the potential that we will be able to infuse our bloodstream with mini-computers the size of a single cell that will help ward off cancer or administer insulin or other antibodies is just the tip of the iceberg when it comes to the potential for changing life as we know it. And we will know it longer than ever. Some 15 years more to be added to our life expectancy—so much for retirement soon. Solar energy is also growing exponentially and within 20 years, Ray predicts, it will replace fossil fuels as our energy source. For us marketers, we need to know that human intelligence is growing in the same way and if our brands are going to continue to succeed in the long run they must grow and change along with the smarter customers. In education, we need to recognize that all the new technology provides knowledge on their belt and in their hand. So we don’t need to teach them facts as much as helping them know how to find the information with the available tools. We talk about social networking and mobile marketing and we are still learning. But the realization of the revolution that we are in requires us to think more outside the box than ever and tap in to the expertise that is required (but is available) to help our companies, our brands, and our people keep up with the pace of an ever-changing world.

Check out www.kurzweiltech.com for more information on this brilliant man and his teachings.

9:30am to 10:30am Integration of Mobile and Wireless Technologies and
The Real Impact on the Consumer Experience
Rob Conway, CEO, GSMA, recognized as the most influential person
in telecom in 2009 by GTB Power 100 Magazine

“GSM is the technology behind the mobile platform that enables universal interaction via mobile devices. “
And if you stop and think about this statement, you’ll understand what an important role Rob Conway plays in the future of the world today.

“Mobile 4.5 Billion Connectiona, Fixed 1.1 Billion Lines.
Mobile will overtake desktop users in 2013 (predictions)”

Mobile marketing is not just an important trend. It’s obviously the future of where we need to be if we are going to keep pace with today’s consumer. They are moving there fast and we, as marketers, need to run to keep up with them. Google has now said that they are “mobile first” and judging by the proliferation of Apps being sold to iPhone users like myself, they are right on track.
Only 4% of advertising spending is online today, but will grow exponentially as more people go mobile for information and more. Look at how many iPhones have been sold. And the iPad, according to Rob, is the next revolution that has already started. One of my fellow attendees demo’d his iPad for me and I was amazed and wanted one for myself. We will soon, I know. This is just the tip of the iceberg when you consider that an average iPhone user downloads 10 Apps per month and spends 30 minutes a day doing research. It’s not just a phone for sure.

Brand Apps are the next big opportunity, but you have to make sure it’s not just a key to getting to your ad. It has to provide a service (like priceline.com’s app—hotel negotiator. Check it out.) If makes the user’s life easier, then there is potential—big potential.

And iAd’s are on the way. Where you’ll be able to advertise your store, product or service to just the right person via their mobile device right when they want it and where they want it. And they will be able to act upon it right away in real time.
I could go on. Augmented reality will help customers more than ever to find your store and your brand right where they are. And mobile coupons are way more than a store or product coupon that you can print out. They convert your device into the coupon which can be redeemed with a wave of your iPhone at the store. Wow.