BLACK FRIDAY. CYBER MONDAY. BRANDING TUESDAY…?

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So, another Thanksgiving weekend has come and gone (quickly I might add). I remember my department store days when working the day after was as challenging as my first day of Army basic training…only a lot more exciting. Now that Black Friday has become such a media event, it’s hard t believe that anyone wants to shop that day—especially at 4am or 5am. I was surprised to see that there were people camped out in front of my local Best Buy on WEDNESDAY afternoon just to be first in line for the bargains two days later. So much for a nice family holiday on Thanksgiving Day! The advertising in general over the weekend was non-descript. The two department store competitors (successful ones, that is) Kohl’s and JCPenney literally bombarded the media with more preprint pages and spots than I can remember. More surprising was how identical their print ads were. Almost like they knew what the other was going to do not only the vehicles and style, but also the merchandise and prices. It reminded me of Doner CEO Alan Kalter’s description of the disease plaguing today’s retailers—“emulitis”. Of course, he said this over a decade ago but the copycat strategy is alive and well. Overall, there were more bargain shoppers this past weekend, but they spent less thanks to the continuing decline in prices on flat screen TV’s, mp3 players, and laptops. It will be difficult indeed to achieve even the predicted 2% growth for the holiday selling season.

Now, we are infatuated by Cyber Monday. So all of us who have something better to do than stand in line on Friday (or Wednesday night) can wait and get bargains online by just loggin in on Monday morning. And it seems to work there as well, with significant increases even with retailers who are in a slump (like Circuit City and Sears). The growth on line continues to amaze analysts. Yet, it should be no surprise given the over 80% of consumers who go online prior to visiting a store to make a purchase these days. The integration of the store and online marketing efforts is more critical today than ever. By the way, I “elfed” myself on Office Max’s site (http://elfyourself.com/) and it was as much fun as watching Bob Thacker’s examples of last year’s big success stories. The whole extended family is now dancing in their green costumes this year online.

Now it’s back to reality. With all the effort and spending toward getting the bargain hunters this weekend so we can clear inventory and reduce our margins, isn’t it time for stores to devote a day to making sure that there brand is alive and well…or at least existing? With the exception of Zale’s and Kay Jewelers, I have not seen much effort to do great advertising and give customers a reason to choose your store for any reason other than super values and 75% discounts. What happened to giving the customer a reason to be loyal and have a preference for your store so that you don’t have to wait for the next big sale to give a reason to shop. The print ads that I received from Sam’s Club were the closest thing to holiday advertising that makes you want to visit the store for the merchandise and not just the discount. Great photography, great design and great prices make the store look better than any conventional department store advertising that I reviewed.

In broadcast, it’s pretty much the same. Seldom is there a brand message that positions the retailers as a preferred choice for the holidays. Sure, with the economy, price is as important as ever. But with the amount of competition and the growing lack of shopping time or interest, wouldn’t one want to be the preferred store going in to the weekend and make holiday shopping a special occasion like it once was. I was in Saks a couple days after the Thanksgiving holiday and it seemed like it was no more exciting than a random weekend in July. We blame it on the Internet, or the economy, but we ought to look into the mirror and pick a day to promote our brand to our customers and to our employees so that there is a reason beyond price to come to our stores all year round.

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It's Always Someone Else's Fault

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It seems like it’s the same old story when the monthly retail sales reports come out. The chains that have been doing well (like the new Kohl’s that I just visited) continue to maintain their comp sales growth and the others (like most department stores) can’t figure out what’s happening in the marketplace.

A couple of reports this month pointed out what’s wrong with these stores. It’s the brand, stupid! An article in the New York Times talked about Macy’s strategy backfiring and that the new consolidated brand had forgotten about what made May Co. and Marshall Field’s so successful. It went on to say that the reason customers weren’t going to the stores as much was because there weren’t enough “deals” (as in coupons and promotions) and therefore the customers were opting for other chains (like Kohl’s and Target). CEO Terry Lundgren stated that Macy’s moved “too far, too fast” from the promotions and basic merchandise (like Dockers) that the previous chains built their volume on and that they would have to “backtrack” to get some of those customers back. I don’t think that’s the problem and those customers that only shopped because of a coupon only accelerated the downfall of the previous department stores. Wouldn’t it be much better to give people a reason to shop at your stores other than the “stars” (like Martha Stewart and P Diddy?) have stuff there to sell? The new campaign for the “global Macy’s brand” really fell short in creating any reason to shop there or to expect a better experience than the specialty and discount chains have been offering. Department stores, when they were the heart of retailing, made shopping an exciting experience or at the very least a place for special purchases. As they have expanded and consolidated, there simply is nothing special about the stores. And a discount coupon or loads of 50% off Dockers or Liz Claiborne isn’t really special, particularly when they are always on sale. Who shops for regular price at a department store anyway? I happen to agree with the consolidation of all the former store names under the Macy’s logo. It is a legendary brand with a lot going for it. But all of these stores aren’t on Herald Square and the experience is nothing special. What Macy’s needs to figure out is what the brand should be so that it can have a special relationship (aka a brand) with its new and future customers. Until they define the brand better, all the coupons in the world won’t reverse the downward trend and the disgruntled customers of the former stores.

Another report came out that after 20 years, the Bombay Company’s new owners were abandoning the US and were just going to operate the Canadian stores. I knew the dollar in Canada had grown in value, but not that much! The articles generally stated that Bombay’s demise was due to its (and many other smaller stores’) failure to compete with the big box and larger specialty chains. That may be true but it’s not all a matter of size that matters. For the 20 years, I could never really figure out what Bombay’s reason for being (a key element to a successful brand) was and why anyone would shop there. Sure the stores were neat and the merchandise was nice, but why should I go there? They never developed a brand that was based on the customer and the result was that the chain was always “just there”. Maybe they will do better in Canada, but I am surprised that they lasted as long as they did. There are plenty of smaller sized chains (like Coach, Christopher and Banks, Hollister) that do very well because they have a great brand strategy and they execute it very well in the store, everyday.

Without a great brand strategy, a retailer can blame poor performance on a lot of other reasons (like the weather) but what they really need to do is take a good look inside and find out what they really stand for with the customer and then communicate that more effectively.

"Brand" New Retail Campaigns

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The past several months have been pretty much a wasteland for new creative on the retail advertising front. Not that there haven’t been new spots and new ads on the scene, but nothing has stood out as break-through creative or really spot-on branding.

Recently, however a few campaigns have broken that have caught my attention and, I think, the attention of the consumer as well. Additionally, I think these are examples of campaigns that reinforce the stated brand strategies for these stores. Let’s take a look at three of them.

1. Stein Mart. Always a great off-price alternative to the traditional department stores, Stein-Mart has never really differentiated itself with a strong brand message. As a matter of fact, their advertising, in my opinion, has been a non-entity. Great brand strategy but they kept it a secret. The new campaign, however, from Devito-Verdi, really breaks through with a tongue-n-cheek slam on the main floor piano players that so many department stores think are important.

With the pianist (kind of a Will Farrell look-alike) slamming the competition and their policies that ignore what the customer wants, the spots drive home a positioning that makes a lot of sense to today’s smart shoppers. Stein Mart’s business has not kept up with its former pace in recent months. Maybe now that they are taking their brand proposition to the consumer, more will visit the stores. Check out all the spots at their site at:
http://steinmart.com/

2. Kohl’s. The store has been a real success story and their latest campaign featuring their Vera Wang collections is not just another “we’ve hooked up with a designer” series. The spots are creative, contemporary and drive home the personality of Vera and Kohl’s at the same time. Another example of how these specialty stores have taken a position that has made them favorites with customers in all demographic and psychographic groups with the money and the smarts to know they don’t have to spend too much for good style and quality. The spots from McCann are not just fashion and they certainly are a lot more effective than the new Macy’s spots.

3. Wal-Mart. After more than a year of fumbling around with more problems than just some new creative, the world’s largest store broke its first spots since naming the Martin Agency its new AOR a few months ago. It’s interesting that most of the news around the agency change and the new campaigns focused on the fact that it was time to replace the long-standing smiling happy face “Price roll back” spots. From what is written, one would think this is has been Wal-Mart’s only advertising message for years. In fact, the smiley-face campaign was never the majority of the spots that have run for the store. Spots featuring employees, customers, suppliers, charities, and events were extremely well-done and which built the trust of the customer were one of the big reasons that the company has grown to be the most successful retailer in the world.

The new campaign gets back to building that trust while still driving home the fact that Wal-Mart saves you money for the things in your life that you like to do. They are well-produced and targeted and I think it’s time for the company to focus its messages on building the trust and quality of the company while saving its customers money. (”Save Money. Live Better”) I’m not sure what they changed with the media plan, but I used to be hit by at least 4-5 messages a week (and I’m not a high television watcher) and now I have only seen these spots in advertising trade publications and video links. Maybe that’s why the performance has been so poor the past several months. You can check it out in Bob Garfield’s column at www.adage.com.

I’ve said many times that retailers tend to think that branding is nothing more than coming up with a new ad campaign and then wonder why nothing happens with the consumer. In these cases, the positioning is right, the stores get it, and the message is creatively succinct.