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Wednesday, August 10, 2005

It's about people, not advertising!


Just over a month ago, I finished an exciting and challenging assignment with Doner Advertising in Detroit. Doner is one of the leading agencies in the country and one which still specializes in working with companies who need to reposition themselves in a hurry in order to survive.

Working with a terrific account team in Detroit, I revisited the marketing department of Circuit City in Richmond, where I had been VP-Marketing back in 1994. The challenges were even greater now than a decade ago for the chain. However, instead of being #1 in the industry as it was back then , Circuit City now trailed both Best Buy and Wal-Mart as the preferred choice for America's consumer electronics dollar. It was a great opportunity as we worked to reposition the stores as the places that had "Just What I Needed" in the complex, sometimes-intimidating electronics business.

One thing became blatantly obvious and that was that the lines between category competition are more blurred than ever. No longer can a big box store only worry about its similar competitors and ignore the mass merchandisers, the warehouse clubs, the drug stores, department stores, and, oh yeah,even my old favorites, the chain drug stores. Don't forget all of the online marketers as well who have taught consumers that the easiest way to "shop" is to simply log on and take a look and learn. It still comes back to being the preferred choice by your target customer. Creating a brand that reassures you that you'll get just what you need, at a good price, with an easy return and service policy, and with the convenience of making it easy to get what you wanted and get back to your busy lifestyle.

However, I am more convinced than ever that the most important piece of the branding strategy is often left untouched by all the marketing efforts--the people in the store must live up to the brand everyday. We simply can't expect to hire some warm bodies, give them some essential floor training, and then expect them to personify the brand that we marketers spend so much time and money trying to develop with our customers. For the past five years, I have discussed this in presentations and conversations as we developed totalbrandintegration (tm) as a strategy to make the brand come alive at store level with everyone who comes in contact with the customer. I am more convinced now and am re-focusing my energies to develop programs that will integrate the people into the brand and help companies stop disappointing their customers when they come back to the store.

This web communication is the first of many that I hope will engage others in the business to bring ideas and concepts to the readers on how to better make the brand come alive at the store. Your input will be invaluable and will serve as the catalyst for more research and strategies to help retailers (and any other companies that serve customers directly) make it happen. I look forward to your help and comments.

This blog is just part of the process to keep me and my associates in this crazy business in touch about the business and what's going on today with the consumer.

I hope you'll join me often as we try to understand the consumer better and figure out ways to help companies become their brand of choice.

Let's go.

Ken



5 comments:

Anonymous said...

Be assured, you have found a new regular reader in me. I look forward to the benefit of the same wisdom and expertise I have enjoyed in person over the years.

Doug Smiley
Small Business Media Network
sbmn.net

Anonymous said...

Welcome back. Put me on your "blog list". I got this one from Dailey.


Dave Egbert
imsgroup@tampabay.rr.com

Anonymous said...

Hello to Ken - I enjoyed reading your new "blog" - Congratulations! I could not agree with you more!!! As you know I have been in the ad game for over 30 years (but who's counting!). And at the end of the day, it really doesn't matter how good your spot is if the branding message and spirit are not delivered at retail. Thanks for all of the insight.

Anonymous said...

Ken,

Thanks so much for the heads-up on your new blog. I enjoyed your post.

One opportunity I see for Circuit City is to redefine their competitive set. Currently they compete, to one degree or another, with giants such as Wal Mart, enormous electronic stores such as Best Buy and even chain drug stores. The weakness of these competitors is that they try to be so many things to so many people. Circuit City, by comparison, focuses on a more select group of electronics products. The opportunity may lie in a further exploitation of the electronics niche - to offer a more select group of "best of" electronics products sold by knowledgeable sales people. In this environment, Circuit City does the homework, and vows to carry only the best, most select group of products.

As I thought about Circuit City, a trend I read about on Trendwatching.com came to mind. Look for a trend called "Nouveau
Niche" (www.trendwatching.com/trends/NOUVEAU_NICHE.htm). It discusses the fact that consumers "hunt for the best of the best, and the best is often NOT mass." It talks about retailers who have exploited this to the extreme, with examples that include retailers selling only oils and vinegars or only white home accessories. While these are far-flung examples, the point is that credibility can be built with consumers through specialization. I see this as Wal Mart's, and even Best Buy's, achilles heel. By comparison, they carry huge numbers of products that I (and I'm sure a great number of other consumers) feel must be "waded through." When, really, I just want to know what stereo receiver is the rated best by Consumer Reports in a variety of price ranges.

As you can see, I still love to ponder branding, retail and consumer needs. I hope I'm not too long-winded. I miss our opportunities to talk shop.

KEN BANKS said...

Thanks to all who have responded to my inaugural blog, the amount of notes and the positive feedback has been very gratifying. The greatest thing is the real time response measurement.
I'm actually working on my next posting (in between working on the book in Detroit)as there has been so much in the news the past few days. More on that later. Sean, thanks for your input. Ironically, I just had a discussion last night about CC and their opportunity to take a category and really run with it. In order to stand out from the intense (and often better)competition, it makes sense to pick a category and become the standard for that. Sharper Image did that with air purifiers; Crate& Barrell with stemware, and so on. Once the store picks their "stake in the ground" category then it's easier to gear the staff in the store to that category and make them the experts on one category then disinterested direction givers and order takers. Again, it's back to people who can help differentiate when everyone is in the same businesses.
Thanks again.
Ken