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AMAZING BRAND…AMAZING SERVICE!
I was speaking recently with a long-time advertising colleague and friend and we were talking about the state of retail marketing. He indicated that he thought that all of the hype about Amazon was exaggerated and that brick & mortar retail was still the foundation of consumer selling. I agreed that “no, retail stores were not going to completely disappear anytime soon”, but I felt that the retail landscape had been changed forever. And, I pointed out that Amazon was probably the biggest factor in this retail revolution. Granted, the internet in total was the reason that shopping patterns had dramatically changed, but Amazon has been the leader in the changes in the way people shop more than any other single marketer in the world.
Watching the vans and trucks and golf carts going up and down our neighborhood streets over the holidays delivering package after package with those smile symbols on the side should be evidence enough that Americans are shopping more from their laptops and phones than we ever imagined just a few short years ago. And the pattern crosses all demographic and economic profiles with male and females, young and old, rich and poor, etc., etc. and there is no turning back. The disappearance of shopping malls personifies the changing shopping habits, but the delivery boxes demonstrate how we have become a nation of purchasers instead of a land of shoppers more than ever. I have to admit that we receive on average 2-3 Amazon deliveries a week and we don’t consider ourselves online junkies at all. The reason this is so common is simple. Amazon has created a brand that means convenience, time-saving, and savings for just about anything that you want to buy.
I’ve purchased everything from pool pumps to green tea, from auto wheel covers to protein shakes, and more and more. The reasons are simple. 1. It’s easy. I can buy just about anything we need with one click with Prime. 2. Not sure what you need? Search in general topics and you’ll find what you need quickly. 3. Not sure what to pay? You can compare prices at conventional retailers, online, catalogues, you name it…and the savings are usually significant enough that it’s a no brainer.
Amazon has made it simple and they continue to use the technology and logistics to make it fast and trustworthy. Making a return is as easy as purchasing. Getting a credit is fast and hassle free. As an author, Amazon made it easy to self-publish with Create Space. Then it was easy to reach readers with Kindle online access. Amazon’s Web Services (AWS) is the largest provider of Cloud service in the world and that technological advantage is passed on to its consumer services every day. Amazon is a huge factor in video streaming and service and had moved into production in a big way. Have any more questions? Just get Alexa and ask away. The voice recognition service has Siri running and fostering a number of other in-home voice service like Google and Home Pad growing at a hectic pace. The other big news recently was the launch of Amazon Go, a check-out free food store that is a game changer in the grocery industry using technology being developed for other high-tech innovations. Over 15 years ago, I attended the National Retail Federation’s annual convention in New
York where there was a Store of the Future exposition demonstrating the RFID technology developed by Magna in Germany which not only promised the check-out free capability and automatic replenishment systems of the future. This really hasn’t developed in the US or mass markets around the world as expected. However, the Amazon Go prototype in Seattle is definitely the sign of things to come in retail. There are many other innovations that Amazon has announced in the past year, but it would take 2-3 more pages here to just briefly describe what’s in store. Suffice it to say that the Amazon brand is growing by leaps and bounds and the customers are loyal and really satisfied.
Is it working? Well, consider that Amazon’s 2017 net sales were nearly $180 Billion, a 31% increase over the previous year. Operating income, even after the investment in new technology and systems was still over $4 Billion in 2017. Innovation is the key. The company launched 1430 new services last year, while continuing to develop community service programs like its “Delivering Smiles” where it donates thousands of items to families to help fight homelessness. It’s an appropriate name for a brand that is now part of the fabric of our life as every time another package is picked up by the doorstep another smile takes place!
A TRIBUTE TO A GREAT AD MAN AND FRIEND
Last week, the Tampa Bay area lost one of its truly great advertising executives, and I lost a good friend. Cedar Hames was one of the first advertising people I met when I moved to St. Petersburg some 43 years ago. We instantly hit it off because we shared a passion for advertising excellence, marketing strategy and branding. We also shared a craziness that made doing business fun. During this time Cedar grew from media sales to the advertising agency business, where he started a couple of firms, including Paradise Advertising, which he grew to being one of the largest in the Tampa Bay area and Florida. He recently sold his agency to enjoy the paradise of Florida where he was a native. I’m sure he will be enjoying a higher paradise than he planned, and we will truly miss him.
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KEN BANKS’ BLOG DECEMBER 2017
HOLIDAY BRANDING AT ITS BEST!
Merry Christmas! This time of year used to be a period when it was a time for retailers and products to showcase their creative skills in communicating their brand. It was the peak selling season and the time when budgets were increased to try to make your message stand out among all of the great advertising of the season. Once again this year, the airwaves, websites, mail, and newsprint ads simply aren’t that special. Preprints look remarkably similar to each other. Catalogues look like the preprints. Television spots talk more price than spirit and seem to be redundant. Online messages—ditto. I have to admit that Target broke through with a creative use of television media this week on The Voice on NBC when they ran short spots with the two voice talents singing a Christmas carol with a Target in the background immediately after the duo sang together on their semifinal appearance show. Not sure there was much branding, but for those watching the timing couldn’t have been better and the interest was at its peak.
However, there still are some great campaigns running during the holiday. Unfortunately, many of them aren’t seen here in the US as some great creativity again comes from the UK and Europe. Here are some examples of brands that reach out and touch their customers with award winning creative and a message that hits the holiday spirit precisely.
John Lewis consistently sets high standards for Christmas creativity that reflects their unique partnership strategy for their stores and online business. This year they feature Mox the Monster in a fairy-tale-come-true spot that hits home. The Beatles’ classic tune sets the pace and completes the engaging message.
Take a look by clicking on this link https://youtu.be/Jw1Y-zhQURU
ALDI has been a leader in food retailing in Germany for over 40 years and it’s making aggressive inroads in building market share in the US. The chain has grown to over 1700 stores in 35 states serving over 40 million customers each month in their simple, streamlined stores and product assortments. Their advertising here reflects that organization but when it comes to branding, the company hasn’t exported its creativity as seen in this spot featuring carrots. Not your most typical Christmas product (unless you’re Frosty) but the veggie makes sense in these UK spots. Take a look by clicking on this link https://youtu.be/UJQG2lqm5ek
M&S (Marks & Spencer) was founded in 1884 as a single-stall retailer that has grown internationally as a multi-channel retailer with 914 stores serving 32 million customers in the UK. It does it successfully by providing a unique British shopping experience and by tying in with a favorite in Britain—Paddington bear. Take a look by clicking on this link https://youtu.be/KfaSxIkLslE
McDonalds may not be the first place you think of when it comes to carrots (yes, carrots again for Christmas…maybe a new trend in the UK) but the company has always set the standard for great campaigns here in the states but this year the US has seen nothing but breakfasts and burgers while overseas the company remembers that McDonald’s is the #1 convenient fast food store.
Take a look by clicking on this link https://youtu.be/XZ2PenyNRjE
Amazon has more presence (presents?) at Christmas than any retail establishment that I can think of. The smiling boxes are on everyone’s porch daily and the UPS drivers in their golf carts are loaded up in every neighborhood. Amazon brings those boxes to life this year with singing smiles that drive home the reason why the online company is giving most conventional retailers more competition both with their products and their brand messages.
NFL Shops may not be the first place you think of at this time of the year, but their merchandise becomes more relevant as the playoffs near. Usually, the branding is tied only into the weekly televised games but this year they have a special holiday message that scores a touchdown in my branding offense.
Take a look by clicking on this link https: https://youtu.be/-vZFXI6l52o
Coke is a part of many Christmas celebrations and gatherings and its awareness continues to grow each year. This year in Europe Coca Cola gives a whole new meaning to sharing the Christmas spirit not only with your neighbors but good old St. Nick as well.
Take a look by clicking on this link https://youtu.be/ZeTAuvu3U08
I hope you took the time to click on and watch these commercials. Not only is it a great example of holiday branding, but they surely will bring the Christmas spirit to you as well.
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A 2-MINUTE DRILL ON BRANDING
I’ve always been a big football fan. In high school, Friday nights were football game nights. Later, I became an avid Michigan andMichigan State fan (Wayne State was no football power). I became a Detroit Lions fan early on and can remember listening avidly to their last NFL Championship team in 1957. Later on, I was a charter season ticket holder for the Tampa Bay Buccaneers and went to every game for 13 seasons until I got tired of losing. Now…not so much. Like many others around the country I’m not addicted to NFL football or college football anymore.
What has happened to the NFL that makes millions lose interest. I think it’s a lack of effective branding. So far this year, television ratings for the NFL broadcasts are down 6.8% from last year, and 2016 was down 8% from the previous year. Many believe that this year’s sideline protests against our flag and country are the reason, and I agree that it is a contributing factor. If the media hadn’t been so infatuated with providing more coverage to the kneeling instead of the playing, I suspect it wouldn’t have been such a big deal, but I don’t think it would have helped the ratings or attendance. The fact is the NFL brand is boring and (like Major League Baseball and the NBA )the prospects for growth or a return to the glorious days of yesteryear is not likely.
So, what caused the decline in interest? Let’s start with over-exposure. As the league added more coverage to collect TV revenue with Thursday night games, Saturday games (near the season’s end), Monday night double headers, Sunday night games and early broadcasts from London, the fans are getting bored. The increase in free agency and career ending injuries have made the rosters so temporary that the loyalty of the fans to the players has all but disappeared. Gone are the days of the Steelers who won 4 super bowls with basically the same lineup on the field every year. Even today’s perennial champs, the New England Patriots, have done so with the only constants at QB and coach. Fans like to identify the players as people not just numbers or end zone celebrations. They want winners and they want to know them on a more personal basis. The dedication to Sunday game watching in the fall has diminished as players move more and touchdowns become less attractive.
And this lack of interest starts early. If you’ve been to a high school football game recently, you can see that about the only fans are family members and very few students who aren’t on the field. Away team fans don’t even bother to come unless it’s a state championship (or it’s one of those towns that have nothing but Friday night high school games to catch their interest). On the other hand, go to one of the soccer complexes on a Friday night and catch one of 6 or 7 games in progress with kids from age 3 to 13 and more than soccer moms in attendance). On a Saturday, the club soccer teams take over and again loyal fans make treks all over the state or metro area to catch the games.
Football has long benefited from the free coverage in the media and it continues to dominate the sports channel dialogues. However, the brand is suffering from increased head injuries, protests, contract hold-outs, drug suspensions, and spouse or child abuse by several players. All of which turn off the once rabid fans who made the NFL a cult brand for many years. I still watch the home team games on Sunday (or whenever they are on. However, I (like most former fans) haven’t been to a game at the stadium for several years now. It’s simply too much hassle for such a time investment (and money too). The key is for teams to identify more with their communities and to encourage kids to watch more games and play more touch or flag games in the neighborhood. I’m tired of hearing “It’s just a business”. It should be more of a sport that identifies with the home team and its loyal fans. Just like a successful brand, fans (customers) must have a positive relationship with the product or service. Football needs to recognize this soon.
HAPPY THANKSGIVING. It’s a great time to be thankful for many things—including great marketing. Publix food stores does it again with an award winning spot on the importance of family at this time of year. Take a look: https://youtu.be/5ztNg7-fxR4
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BUILDING A GREAT BRAND…BRICK BY BRICK!
I’ve always been a big fan of LEGO’s. I enjoyed helping my kids put together all kinds of LEGO kits and models. Then, the grandkids brought even more elaborate and intricate models. I am fascinated by the LEGO stores that I’ve visited here and abroad, and recently enjoyed visiting LEGOLAND near Orlando. I particularly was amazed at the creation of major US and Florida cities at the park which were completely made out of millions of LEGO bricks. So, it shouldn’t be a surprise that when a LEGO sculpture exhibit (The Art of the Brick) came to Tampa, we had to see what sculptor Nathan Sawaya could do to add magic to these simple bricks that have been the same since 1932.
Sawaya’s quotes which were placed throughout the exhibit and on some of the individual sculptures were as interesting as the art themselves. His description of the exhibit describes his motivation very well: “This exhibition engages the child in all of us while at the same time highlighting sophisticated and complex concepts. Chances are you probably don’t have a slab of marble or a ceramic kiln at home. But I bet you have some LEGO bricks. You can say that again, Nathan. We find one or two quite frequently around our house and enjoy putting them together as much as the kids. I’ve also been fascinated by the LEGO brand for years and how it manages to endure and thrive from one generation to another. It has also grown to a $2.1 Billion brand that is now the world’s largest toymaker by revenue.
Founded in Denmark, the word is derived from the Danish words “lego godt” which means play well. I also can come from the Latin “lego” meaning “I put together” and marketers can certainly recognize that this brand plays well in the competitive retail market place and that they have put together a brand strategy that endures and continues to grow surpassing brands like Mattel as an all year/all ages brand.
The brand has expanded into the retail world with 36 stores in Europe and over 90 in North America. There also is another in India and Asian expansion will soon follow. To reach even more potential customers (and creative sculptors) the company has five LEGOLAND amusement parks in its home city of Billund, Denmark, Carlsbad, CA, Winter Haven, FL, Windsor, England, and Gunzburg, Germany, which are operated by Merlin Entertainment. We found the park to be fascinating and enjoyed staying at the LEGOLAND Resort Hotel which brings the brand alive not only in the rooms but throughout the property.
LEGO has followed the lead of Hallmark of taking its brand to Hollywood and has made the bricks and their interchangeable characters the stars of animated moves that have been very successful and continue to build the brand both among children and adult audiences as well. Click on these links to view a couple recent LEGO commercials: LEGO City: https://youtu.be/G7W1-R8L1to and Ninjago Movie: https://youtu.be/A81QT9GlQ54
What has made LEGO such a successful brand is by sticking to its basic founding product and creative premise while constantly updating it to current trends and interests. Then, reaching out to its customers in new and different ways to add to the experience of the brand and the fun it provides.
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THE BRAND IS…AN EMOTIONAL CONNECTION!
I always enjoy attending the National Speakers Association Annual Convention. Not only is it educational and inspiring for those of us who speak professionally, but I’m always impressed at how the principles of talking to an audience is in total sync with branding to customers. The importance of a relevant message, well-prepared, and on-target is critical in an effective, creative presentation. The same holds true with branding a product or service to the right target customer.
One of the critical steps is to make sure that you create an emotional connection with your audience/customer. I always make the point in my branding presentations that unless you have a relationship with your customer, you have no brand. Seems simple and yet it’s so often overlooked as marketers seek to gain or create market share. Walking through some of the few remaining shopping malls verifies this premise as one can pass by store after store without having any emotional feelings (or awareness for that matter) for the store and the products it sells. Many chains believe that all is necessary is to have a prime physical location, a robust website, a mobile app, and product to sell in order to capture market share. That’s why so many of the chain stores in the country are downsizing or disappearing all together. They failed to realize that they have to communicate effectively with their customers in a language that builds a relationship that endures. Bill Bernbach, the advertising agency legend, identified this when he said that “If you stand for something, you’ll find some people for you and some people against you. If you stand for nothing, you’ll have nobody for you or against you.” It’s critical to establish who you are (the truth of the brand) and why your brand will enhance a customer’s life or well-being (the heart of the brand).
As I look at chains like Sears, Circuit City/HH Gregg, Rite Aid, Kmart, Limited, Rue 21 and many others who will soon be forgotten completely, it becomes more apparent that what these brands lack is simply being a brand—they never cultivated a relationship that resonated with their customers. Dr. Leonard Berry of Texas A&M pointed out that you should ask the question “If my brand were to disappear tomorrow, would anyone notice?” If the answer is “probably not”, it’s likely that there never was an emotional connection with the customer in the marketing communications, the experience, the service.
That’s why it’s so critical to constantly reach out to the market and gauge the way customers (potential and existing) feel about you and adjust your messages accordingly to insure they will indeed miss you if you leave. Examples of brands that have always done well in communicating the TRUTH and the HEART of their brands are:
Budweiser—while being challenged by the craft brew craze, Bud keeps communicating in a way that pulls at the heartstrings or the funny bones while still emphasizing its King of Beers positioning. Check out their latest epic spot by clicking on https://youtu.be/huQrvmrJbXk for the best Independence Day message this year.
Hallmark is in the emotional connection business. So, it’s not surprising that the company also has a reputation for marketing that connects as well. Through its Hall of Fame movies, the Hallmark Channel and other specials, the company lives up to it “when you care enough to give the very best”. Check out one of their best spots by clicking on: https://youtu.be/7-eYeiQn5YU.
Subaru has differentiated itself from the other car companies recently with its love campaign. While most other carmakers are shouting about factory rebates, dealer incentives, and “name the brand”-a-thons, Subaru has identified the important events of our lives and how our car is a part of them. Love the family, love the car. Check it out at: https://youtu.be/b_O4CeZ7cmU
Publix is not just a grocery store. To most families in Florida and now the Southeast states, Publix is part of our lives. Where shopping is a pleasure is not just a slogan with a company that goes out of its way to give excellent customer service, clean, organized stores, and messages that hit straight to the heart (while still promoting good prices to compete with Walmart). Here’s one of their best: https://youtu.be/12bw00SoHOE
University of Phoenix has grown to one of the largest educational institutions in the country by not only giving access nationwide to its online programs and courses but also by understanding that many people in the workforce would like to improve their current status in life by gaining more education and a specialty. The marketing doesn’t just state that they have classes and graduates, rather it inspires its prospective students to use their brain and make life more meaningful in the process. The result is stimulating their brain by communicating with their heart.
Click on this link to view one of their messages:https://youtu.be/UabtBNRAc14
These are just a few of the companies that know that it’s the emotional connection that strengthens their brand position by really “standing for something”.
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As I discovered more than once, breaking away from the corporate world and going independent can be exhilarating and exciting—as well as risky. In branding, it often makes sense to split off a successful (or struggling) brand to breathe new life into the marketing and create that same exhilaration within the organization to sustain growth in market share. Standing at the battlefields of Culloden in the Scottish Highlands recently, it was interesting to learn more about the drive for independence by the Scottish clans in the 18th Century and which is now being revived in the UK.
Sometimes, a brand gets caught up in the internal competitiveness of a major CPG corporation and even though it’s successful, the time comes for a change of venue and management. My first marketing position was in brand management with P&G where I worked on the Folger’s coffee brand. Folger’s had the #1 share in all its markets at that time and I worked on some fo the plans to take the brand national within the next 5 years. The growth continued and Folger’s became the top grocery brand and sustained its growth even as new concepts like Starbucks or aggressive brands like Dunkin’ started to capture more of the coffee drinking market share. Eventually, as they have done many times, P&G spun off its coffee business (this time to Smuckers) and it continues to grow and maintain its position as one of the top promotional, traffic-building brands in the country. With all the change, however, Folger’s marketing has maintained its consistent, quality messages built on flavor and aroma (from those “mountain grown” beans) and is still one of the top brands in any category today. Its marketing has been refreshed many times, but it has stayed true to its loyal customer base by making it “the best part of waking up” again and again.
Red Lobster is another brand that was actually the original brand for Darden Restaurants back in the late ‘60’s. Red Lobster was the original chain of moderate seafood restaurants and continues to grow with marketing featuring product shots that still whet my appetite whenever a TV spot airs. As the company grew with other brands like Olive Garden, Seasons 52, Longhorn Steaks, and Capital Grille. Darden decided that Red Lobster whose growth had stagnated would be spun off and eventually bought out by Golden Gate Capital. Now the brand has been refreshed with new management, a new store prototype modeled after New England fishing towns, updated menus, and a consistent marketing campaign that still features the food, yes the food, presented in mouth-watering spots and messages that have revitalized the chain and the brand.
There are many other similar examples and it isn’t always necessary to break away from the parent company to revitalize a brand. Nor is it a good reason to simply fire your ad agency and hire a new one just for a different point of view. However, it does makes sense to encourage new, independent thinking that will question the past while bringing some perspective to what customer thinks about your brand and your competition.
While, we may not have to roll over the market like Mel Gibson in “Brave Heart”, an independent viewpoint can often bring more market share and excitement to your brand.
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BUILDING A BRAND THAT LASTS
We returned to London recently after not having been to one of the world’s great cities in nearly 47 years, and it was great to visit all the sights again and realize that not much has changed over the years and yet the city is as modern and state-of-the-art as ever. We enjoyed seeing the sights and were particularly impressed by two attractions that we hadn’t visited before—the Churchill World War II Museum and the London Eye.
The Churchill Museum brought back to mind the the enormity of the second world war and the leadership that Sir Winston Churchill demonstrated as an allied leader and government official. The meeting rooms and demonstrations brought that era in history back to life and I highly recommend a visit on your next trip to England. The London Eye is a new trademark on the London skyline and there are some who would rather it wasn’t still there. However, we found it to be an exciting way to get a spectacular viewpoint of the London and all of the sights and sounds of the city. It’s a slow 360 ride that gives one an opportunity to truly appreciate the expanse and the history of this great city. Coca Cola sponsors the ride but their presence is subtle and allows the city to provide the excitement and spectacle for everyone.
Speaking of Coke, I mention in my video from Westminster Abbey that we should have a lasting memorial to great brands that have made an impact on marketing as well as the world that we live in. These are the brands that have become a fabric of our lives (sounds familiar) and have consistently been recognized for their marketing and advertising excellence. Coca Cola is certainly high on that list with a brand that continues to grow and excel despite the competition from other soft drinks and beverages. Coke has done it by providing messages and images that withstand the test of time and continue to stir the imagination as well as the thirsts of legions of consumers in all demographics and lifestyles. The great spots are reinforced with sponsorships at the national, worldwide and local levels that keep Coke not only top of mind but also as favored members of our community.
More recently, Apple has done the same thing by not only leading the world in technology and innovation but also by producing some of the most memorable marketing messages in all media. From the classic “1984” to competitive defense against Microsoft (I’m a PC, I’m a Mac campaign) to the outstanding imagery in promoting iphones, itunes, ipads, Apple manages to keep itself on the cutting edge and judging by the number of iphones that I observed on the tubes and busses of London, Scotland and Wales, there’s no stopping them now. They keep this brand alive in their retail stores, online, on mobile and everywhere in between. This brand is already a legend and only a couple decades old.
Walmart has grown to the largest business in the world and has an effect on the way the world does business in many ways (read “The WalMart Effect” by Charles Fishman) and it isn’t just by having everyday low prices. The company built a great brand strategy and then executes every day in every store with every customers. It’s marketing has been exceptional from the start by not relying solely on price/item print like most of its competitors, but rather by producing messages with real people, with great creative that makes the messages come through loud and clear. In the process, the company has built a brand that people trust and continue to shop no matter what their psychographics or demographics are.
Lexus has become the largest luxury car seller in the world by being an innovator and stylish choice among its target customers. However, there are many other great cars in the category. So, how does Lexus outsell all of them in the category combined. By marketing themselves smartly, logically and creatively and making a logical case for their brand over the others. They continue to improve on the product while maintaining the high standards of quality, features, and customer service that have re-established the standard of excellence in the automotive category.
McDonalds is everywhere in Great Britain and despite the hundreds of other food chains and local pubs and eating establishments, they continue to grow. We passed by the golden arches in almost every town and hamlet we visited and they were always busy and while they haven’t replaced English fish& chips on my list of favorites, they certainly sell their share of Big Mac’s and fries along the way. Again, McDonalds continues to improve on their product with innovation in food, service and stores, but they excel by an ongoing brand message that stands out among all of the other fast food providers in the market. They know that McD’s is part of life not just in the states but world-wide and their messages resonate with the customers no matter what part of the world they reside.
There are many others that deserve their own memorials in the Branding Abbeys and Monuments, and we’ll find that they share the common strengths in having an effective, customer-driven brand strategy. This is supported by creative, on-target advertising messages that resonate with the various thinking styles of an increasingly selective consumer. And they maintain a consistency of message throughout the years and in all marketplaces that provide a reason for being and a reason to prefer their brand over the others. Jolly good, I say!
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BRANDING AT THE STORE
For many years now, I have used Disney as a great example of an excellent brand that keeps on improving itself. Living only 90 minutes from Walt Disney World has not only been convenient but it also affords me the opportunity to visit regularly and observe first-hand how the company improves those things that just don’t seem to work or appeal as well as the standards that we’ve come to expect from Disney.
A few days ago, I decided to visit Disney Springs—the new and improved version of the Downtown Disney area near the Orlando theme parks. To be sure, Downtown Disney was pretty exciting when it first opened over 20 years ago, but after a couple visits it never seemed to hold the appeal or excitement to warrant a return visit whenever we visited the other attractions at Disney. Well, welcome to Disney Springs—what an improvement.
Disney has not just updated the area, it has re-invented it and made a new destination for central Florida visitors and residents alike. Great new restaurants, a market place that competes with some of the best in the country, new attractions and plenty of parking make this an exciting stop for a great time and outstanding marketing. One of the highlights in the Market Place was the UNIQLO store—the Japanese fashion store that has aggressively become one of the top retailers in the world and definitely the largest fashion store of its kind anywhere.
UNIQLO has grown world-wide to almost 1800 stores with over half of them in its home country of Japan. There are 45 now in the US as
the company has moved toward larger stores in larger markets and has grown its sales to over $16 Billion (if my yen/dollar conversion is accurate). These are exciting numbers, but what’s really exciting is the in-store experience. UNIQLO’s theme for its Life Wear is “Simple Made Better” and the simplicity of the store is apparent the minute you walk in. With merchandise displays that make an immediate statement of volume and color that only exceeded by the neatness that is a constant. The training of employees on how to fold the clothes is legendary and is only superseded by customer service commitment that provides friendly faces who seem to be everywhere straightening and colorizing while helping anyone in sight.
I was surprised and impressed by the overpowering display of foldable winter quilted jackets and coats as I walked in from the Central Florida heat. They came in a variety of colors, they light-weight, warm and fold up easily to fit in one’s purse or backpack. And…they are priced to make you stop and say how can they do that for such a low price. Well, maybe it’s world-wide production or maybe the “Made in Vietnam tags”! I asked one of the staff if they really sold that many of these coats and jackets here in Florida, and she said “Oh yes. We have a lot of Brazilian and other South American tourists here and they buy them to take back where winter is coming soon. The company knows its markets and has partnered with its suppliers to develop state-of-the-art fabrics that fit the lifestyles. I don’t wear many turtlenecks anymore, but when I felt the light-weight, super dry HEATTECH fabric and then looked at the $18 price tag I was sold.
UNIQLO builds its brand at store level every day. Its flagship stores in major cities, are not just revenue producers but they are brand
communicators that say a lot about the company’s culture and its strategy. When CBS Sunday Morning did a feature on the store a few years ago when it opened in New York, the company’s COO demonstrated a mirror that could show you the various colors of whatever garment you were wearing without ever having to take it off. UNIQLO plans to be at $50 Billion in sales in the near future. With stores that build the brand and make shopping exciting, there’s no doubt they’ll exceed that and their customer’s expectations.
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OUT OF THE ASHES, BUILDING A BRAND….AGAIN..
Usually, my first blog of the year is dedicated to reviewing the holiday marketing efforts and commenting on those who missed the target again. Again, this year I could focus on the news of closings at stores like Sears, Macy’s, and the latest disappearance of The Limited which for years failed to communicate a reason to shop any of their many branded stores. Instead, let’s take a look again at what one great company did at the holidays to build its relationship with its customers and communities by going above and beyond promotion and doing something great…and building it’s brand in the process.
Once again, WestJet, the Calgary-based economy airline, took a look around and found a reason to do something really extraordinary at the holidays. This time it was to bring the spirit of the holidays and send a message that it’s more than just good business to do the right thing for the people in your markets. This year, WestJet decided to do something big for the people of Fort McMurray, Alberta, which was devastated by wild fires last spring. In case you might not remember the tragedy, here’s a summary from Wikepedia on what happened:
approximately 2,400 homes and buildings and forcing the largest wildfire evacuation in Albertan history. It continued to spread across northern Alberta and into Saskatchewan, consuming forested areas and impacting Athabasca oil sands operations. The fire spread across approximately 590,000 hectares (1,500,000 acres) before it was declared to be under control on July 5, 2016. It is the costliest disaster in Canadian history.”
Needless to say,the impact of this disaster on the people of Fort McMurray was indescribable and the holidays would only serve to remind them of their losses– both physical and emotional. WestJet and its employees decided to make this Christmas special in the town and created an event that its citizens would remember. The stories that they recorded from some of the townspeople are moving, the personal contribution and spirit of the employees is exemplary, the gift of a free flight for each citizen was above and beyond. Then the marketing of the event once again proves that a big company can act as a close friend or family in an authentic way. Take a few minutes to view the story at this link and I think you’ll see what I mean. Be sure to scroll to the interviews which are best ROI a company can achieve on something like this:
This isn’t the first time that WestJet has won over the hearts of its cusomters at the holidays and I doubt that it will be the last. This is a company that gets it. It’s growth continues by running a good airline but its brand is stronger by being a good citizen. The companies that have downsized or closed failed to realize that branding is a culture that must be sustained and nurtured all year with every transaction and through every communication. With that kind of commitment, we can all look forward to a great 2017.
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Season’s Greetings from Cincinnati, Ohio. Being back in the Queen City on the Ohio River, brings back memories of my first career job in brand management on Folger’s Coffee. Back then, going to work at P&G was comparable to getting your doctorate in marketing and the strong foundation for a career in branding. One of the first things I learned was that SHARE OF MARKET was the most important measurement of a brand’s success. In my time on Folger’s, we never looked at a sales report like I did when I moved to retail a few years later. It was all about share and analyzing Nielsen reports every other month by market, by brand, by product and then analyzing what we did that worked to improve share or what the competitors did to take away share. Did a special promotion work? Did a change in campaigns have a positive effect? (Although we never change our ad strategy in my time there.)
Looking at all of the holiday campaigns that have broken this past couple weeks makes me wonder whether anyone is watching their market share or is all about the next big promotion. I’ve talked about Black Friday the past few years, and I won’t waste any time going into that debacle. Nor will I spend any time lamenting the thick sale inserts in the Thanksgiving day newspapers which have less readership than the papers themselves these days. Rather let’s look at a couple examples of companies that still believe that the key to holiday sales is to make this time of year truly special and that visiting their stores is a special experience.
Macy’s continues to run its BELIEVE campaign for the ninth straight year and it’s better than ever. If you’ve been reading my blogs for a while, you know that I’m not a big fan of any department store marketing for quite some time. However, Macy’s still has a commitment to making its store an important part of their customer’s holiday season.
The benchmark of the campaign is its Make a Wish program where the company donates a dollar for each letter to Santa that’s mailed at special store mailboxes. Yes, Virginia, they’re doing it again and it’s just as special as the first year with driving home the true meaning of Christmas giving and benefiting the community at the same time.
But that’s not all that makes Macy’s special during the holidays. Of course there is the annual Thanksgiving Day Parade which continues to be must viewing every Thanksgiving morning around our house and millions of others around the country. Still a tradition that makes the store special. Then, there is their Macy’s Santa Land in select stores that warrant a special trip by families who could easily go to the mall nearby, but there’s nothing special about that. In Philadelphia, Macy’s continues the city’s 50-year tradition of the Christmas Light Show with tree lightings and story-telling. In Chicago, there’s Breakfast with Santa throughout the holidays while in Dalls, Texas Montly teams with Macy’s for a Holiday Fashion Party on Friday, December 2. Add to these events, New York’s Holiday Fireworks Spectacular, Philadelphia’s Dickens Village, San Francisco’s Winter Walk Holiday Entertainment on Union Square, New York’s Holiday Window Unveiling, and a Hanukkah Celebration as well.
In short, Macy’s gives us a reason to make the season special besides their one-day sales, 12 hour sales, holiday specials, etc. It’s all part of the Macy’s Brand that would hold true for any major department store as was the case in Christmas’s gone-by. Let’s hope this tradition continues!
There are other companies that have the Christmas spirit as well. Subaru’s LOVE campaign compliments their ongoing brand strategy and helps them stand out from the other car companies. Bass Pro continues its Santa’s Wonderland which brings in large crowds every day to the store for more than just good gift ideas. By adding special events to the Christmas advertising not only builds traffic but also enhances the brand all year long.
Have a Merry Christmas!