I parked in front of the dry cleaners on Friday, walked in, and the Asian lady owner said, “Hello Mr. Lemmond, here are your shirts.” She had recognized my car, activated her mammoth retrieval system, found my shirts, and hung them up in front of me.
I said, “Thank you! Amazing----how did you remember my name?”
“Well,” she said. “That’s my business. We have five hundred customers, and so far I only know four hundred of them.”
Then I drove home. At 4:50 I discovered that my power was off. I thought---“Did I forget to play the bill? I better do something about it, because I’m going out of town for a week.” I raced to the nearest office of the power company. As I stepped out of the car, two things happened at once. My radio binged, signaling five o’clock, and the sole employee of the power company slammed her door behind her.
She looked at me, pointed to the sign on the door---Hours 8-5. Then she shouted. “Closed!” and gleefully roared away
.
I returned home, calmly of course. (The power was back on.) I emailed the president of the electric company, suggesting that his employee might have said I’m sorry or asked if it was an emergency and that I expected this kind of service from the post office but not from his esteemed service organization. (I got a form reply, saying sorry we’ll look into it.)
What’s happened to service? The dry cleaning lady has it. The electric lady was unplugged.
At least can’t we expect some human contact?
Sunday, July 1, 2012
Friday, December 11, 2009
Work, Jobs and Brands
Work, Jobs, and Brands
During the depression, government make-work “jobs” gave a lot of people money, but the paychecks were funded by taxes. (Another benefit to society was the grand buildings and roads that were built; my home town is still graced by a magnificent town hall built in the ’30s.) But those jobs ended.
To me, a real job is one that has staying power because it has a continuing value. In other words the fruits of that job are for sale.
Isn’t it true that wealth is created by selling or adding something to a commodity? A farmer takes things out of the ground for you, a manufacturer takes raw materials and makes something you want, and an entrepreneur takes raw data and converts it to usable information.
Does government create wealth? Only if it takes control of a source, transforms it, distributes it and sells it at a profit. That of course entails taking over or competing with the private sector.
A continuing stream of wealth depends on satisfying a continuing demand. To satisfy that, the seller must deliver a product or a service that is consistent. The product must be up-to-date and the seller must assume that competitors will try to take his business away.
That’s why brands are important. Brands are born of the social contract, based on trust and a law-abiding, mutually dependent society.
With a level playing field, who do you think would give you good, up-to-date products? A free society or a monopolistic government? Where would innovation come from? What about competence or trust?
Brands are the essence of freedom. Anyone can enter the game, then win or lose. Brands come and go (most of them). That’s called creative destruction. A brand doesn’t have a right to exist, just because it’s there. It must always earn its way.
How does a country get out of a recession? By creating wealth. That can only come from the bottom up. Someone will have a great idea---something that somehow makes somebody’s life a little better. Then the idea is made into a product or a service. If it sells, it can develop an identity, a personality, and reputation for consistency and trustworthiness. It becomes a brand, and in the process creates jobs.
During the depression, government make-work “jobs” gave a lot of people money, but the paychecks were funded by taxes. (Another benefit to society was the grand buildings and roads that were built; my home town is still graced by a magnificent town hall built in the ’30s.) But those jobs ended.
To me, a real job is one that has staying power because it has a continuing value. In other words the fruits of that job are for sale.
Isn’t it true that wealth is created by selling or adding something to a commodity? A farmer takes things out of the ground for you, a manufacturer takes raw materials and makes something you want, and an entrepreneur takes raw data and converts it to usable information.
Does government create wealth? Only if it takes control of a source, transforms it, distributes it and sells it at a profit. That of course entails taking over or competing with the private sector.
A continuing stream of wealth depends on satisfying a continuing demand. To satisfy that, the seller must deliver a product or a service that is consistent. The product must be up-to-date and the seller must assume that competitors will try to take his business away.
That’s why brands are important. Brands are born of the social contract, based on trust and a law-abiding, mutually dependent society.
With a level playing field, who do you think would give you good, up-to-date products? A free society or a monopolistic government? Where would innovation come from? What about competence or trust?
Brands are the essence of freedom. Anyone can enter the game, then win or lose. Brands come and go (most of them). That’s called creative destruction. A brand doesn’t have a right to exist, just because it’s there. It must always earn its way.
How does a country get out of a recession? By creating wealth. That can only come from the bottom up. Someone will have a great idea---something that somehow makes somebody’s life a little better. Then the idea is made into a product or a service. If it sells, it can develop an identity, a personality, and reputation for consistency and trustworthiness. It becomes a brand, and in the process creates jobs.
Monday, December 7, 2009
Brand Compression---How Many Choices Do You Really Need?
The ongoing battle between manufacturers and retailers seems to be tilting more to the stores.
• Costco announced they will no longer carry Coca Cola in their stores.
• CVS/Caremark will get rid of most Energizer Alkaline batteries.
• Wal*Mart will add hundreds of products under their Great Value name.
What does that mean for consumers and for brands? In the down economy, not only are people downsizing their buying habits but retailers are squeezing their assortments.
While we all have favorites, most of us have a short list of acceptable brands in every category. There are (almost) none that we would die for. I asked a group ten men if there were any brands that they would absolutely positively accept no substitutes for. One said Trader Joe’s Peanut Butter. Another said Mercedes Benz. The rest said no.
I would have thought that Coke buyers would rather drink warm milk than be forced to swallow Pepsi. Maybe Costco will prove otherwise. Energizer vs. Duracell? I wouldn’t know or care. Wal*Mart butter? Probably OK. Wal*Mart cologne, no way.
Here’s what three groups might think about:
1. Retailers. I think it would wise for them to get rid of the fifth or sixth brand in many categories. There would be less stock keeping units to manage and their shelves would be simpler and easier to shop. People demand alternatives, but studies show that displays of three or four choices sell more than five or more.
The key word here is choice. I was the head of the private label program at Target Stores. If a buyer wanted to add a private label brand in his category he had to demonstrate that it would add an important dimension (usually price). Our policy was that our product had to at least as good as the leading brand, and we had an independent testing lab for verification. I can tell you that is virtually impossible to do. There was high pressure to cut a little on quality so that we could also offer a better price.
Private labels are stronger in Europe than here, and I’m not sure why. But there is a danger that a store goes too far. Remember when Sears mostly sold the Sears brands? They almost went out of business until they added manufacturers’ brands. The same happened with Radio Shack, but they are prospering with wide assortments. The Target brand accounted for less than five percent of their sales.
2. Manufacturers. They are losing clout. More than 80% of their new products or line extensions are doomed. You have to pay serious money to stores to get them to stock your brainchild. And you are out the door quickly if you can’t cut it. And as I said above, if you aren’t one of the top brands you are in jeopardy.
The secret of branding has always been to “own” some unique, important benefit. Maybe not so strong that people would die for it, but so in demand that the stores would hesitate to bury it. Maybe it identifies with the role it could play in the user’s life. Maybe it would participate with new social media.
3. Consumers. They are the winners if they are smart. They will have sharper choices and a more pleasant shopping experience. The advertising they are forced to look at will be more focused and less frivolous. They will get better deals and better products.
After the economy rights itself I would predict that these trends will continue, and that’s good. Some new problem and its solution will no doubt replace it. Stay tuned----
George Lemmond
• Costco announced they will no longer carry Coca Cola in their stores.
• CVS/Caremark will get rid of most Energizer Alkaline batteries.
• Wal*Mart will add hundreds of products under their Great Value name.
What does that mean for consumers and for brands? In the down economy, not only are people downsizing their buying habits but retailers are squeezing their assortments.
While we all have favorites, most of us have a short list of acceptable brands in every category. There are (almost) none that we would die for. I asked a group ten men if there were any brands that they would absolutely positively accept no substitutes for. One said Trader Joe’s Peanut Butter. Another said Mercedes Benz. The rest said no.
I would have thought that Coke buyers would rather drink warm milk than be forced to swallow Pepsi. Maybe Costco will prove otherwise. Energizer vs. Duracell? I wouldn’t know or care. Wal*Mart butter? Probably OK. Wal*Mart cologne, no way.
Here’s what three groups might think about:
1. Retailers. I think it would wise for them to get rid of the fifth or sixth brand in many categories. There would be less stock keeping units to manage and their shelves would be simpler and easier to shop. People demand alternatives, but studies show that displays of three or four choices sell more than five or more.
The key word here is choice. I was the head of the private label program at Target Stores. If a buyer wanted to add a private label brand in his category he had to demonstrate that it would add an important dimension (usually price). Our policy was that our product had to at least as good as the leading brand, and we had an independent testing lab for verification. I can tell you that is virtually impossible to do. There was high pressure to cut a little on quality so that we could also offer a better price.
Private labels are stronger in Europe than here, and I’m not sure why. But there is a danger that a store goes too far. Remember when Sears mostly sold the Sears brands? They almost went out of business until they added manufacturers’ brands. The same happened with Radio Shack, but they are prospering with wide assortments. The Target brand accounted for less than five percent of their sales.
2. Manufacturers. They are losing clout. More than 80% of their new products or line extensions are doomed. You have to pay serious money to stores to get them to stock your brainchild. And you are out the door quickly if you can’t cut it. And as I said above, if you aren’t one of the top brands you are in jeopardy.
The secret of branding has always been to “own” some unique, important benefit. Maybe not so strong that people would die for it, but so in demand that the stores would hesitate to bury it. Maybe it identifies with the role it could play in the user’s life. Maybe it would participate with new social media.
3. Consumers. They are the winners if they are smart. They will have sharper choices and a more pleasant shopping experience. The advertising they are forced to look at will be more focused and less frivolous. They will get better deals and better products.
After the economy rights itself I would predict that these trends will continue, and that’s good. Some new problem and its solution will no doubt replace it. Stay tuned----
George Lemmond
Tuesday, November 24, 2009
Mindset Marketing
A lot of effort and study has been spent on the process of how a consumer chooses a brand.
The traditional “Four P’S of Marketing” are in order. The Product exists, The Price is set, the Promotion is out there trying to convince you to buy, and of course the Place determines where you actually fork out the cash---whether it’s a store, a catalog, or the internet.
But these all about what happens before you actually use the product. All the above have happened, and now the moment of truth is here.
What is going through your mind? What are you doing right now? What role are you playing? How’s your mood? Are you different than you were yesterday, or this morning?
Your mindset changes frequently and it has a lot to do with choices you make. In marketing that’s key. How can you tap into the experience of using the brand, so that it will be chosen the next time?
If you focus on the actual use you are practicing Mindset Marketing.
Here are the new “Four P’s”:
Persona. That‘s the role you are playing as you use the product. What are the touch points of your day, and what are you trying to do? How will the product help you to fulfill that role?
Perception. That’s the preconceived notion of a brand. It’s the de facto wide spread consensus of what the brand is all about---how it is thought of, compared to other brands in the category. It may or may not have anything to do with what’s most important to users. But it is vital to understand this to begin.
Positioning. This is the key. You should find out what benefits are being delivered, through research and watching how and when the product is being used.
Then you determine which benefit is the most important. That will become the one thing you will be known for---your positioning, the basis for your brand’s success.
Participation. Mindset Marketing identifies with a user’s persona and taps into his most basic needs with a winning positioning. It also makes possible marketers’ fondest dream---that users become fans. They might communicate with us through social media, become loyal customers, and recommend us to friends.
Mindset Marketing means walking in the user’s shoes, feeling what he feels, and making human contact at the tipping point of brand prefence.
The traditional “Four P’s” proceed from the makers’ point view---Product, Price, Place and Promotion.
But the Mindset Marketing “Four P’s” are more basic---Persona, Perception, Positioning, and Participation---come from the users. That’s a good place to start and to end.
end
The traditional “Four P’S of Marketing” are in order. The Product exists, The Price is set, the Promotion is out there trying to convince you to buy, and of course the Place determines where you actually fork out the cash---whether it’s a store, a catalog, or the internet.
But these all about what happens before you actually use the product. All the above have happened, and now the moment of truth is here.
What is going through your mind? What are you doing right now? What role are you playing? How’s your mood? Are you different than you were yesterday, or this morning?
Your mindset changes frequently and it has a lot to do with choices you make. In marketing that’s key. How can you tap into the experience of using the brand, so that it will be chosen the next time?
If you focus on the actual use you are practicing Mindset Marketing.
Here are the new “Four P’s”:
Persona. That‘s the role you are playing as you use the product. What are the touch points of your day, and what are you trying to do? How will the product help you to fulfill that role?
Perception. That’s the preconceived notion of a brand. It’s the de facto wide spread consensus of what the brand is all about---how it is thought of, compared to other brands in the category. It may or may not have anything to do with what’s most important to users. But it is vital to understand this to begin.
Positioning. This is the key. You should find out what benefits are being delivered, through research and watching how and when the product is being used.
Then you determine which benefit is the most important. That will become the one thing you will be known for---your positioning, the basis for your brand’s success.
Participation. Mindset Marketing identifies with a user’s persona and taps into his most basic needs with a winning positioning. It also makes possible marketers’ fondest dream---that users become fans. They might communicate with us through social media, become loyal customers, and recommend us to friends.
Mindset Marketing means walking in the user’s shoes, feeling what he feels, and making human contact at the tipping point of brand prefence.
The traditional “Four P’s” proceed from the makers’ point view---Product, Price, Place and Promotion.
But the Mindset Marketing “Four P’s” are more basic---Persona, Perception, Positioning, and Participation---come from the users. That’s a good place to start and to end.
end
Saturday, November 21, 2009
Loud Laughs, Fake Friends
Some salesmen use the “Big Ha-Ha” technique to announce they are here, they are with it, and you are included in their joyful and productive reason-for-being.
Some members in the country-club-set use “Forced Hilarity” to establish that they are indeed the in-crowd, sharing the in-secrets and the everlasting good will of the group.
Some sycophantic social climbers use “Loudly Assumed Status” as a tool to bring instant acceptance into privately held domains.
These high-decibel shouters haven’t heard that silence is golden, or that less is more. Instead, they practice that noise is better. Their overbearing shrillness marks insecurity and insincerity, not the confidence and stature they covet. To them, silence is a vacuum to be abhorred.
The salesman bursts into a room with a hearty guffaw, a demand that all within his hearing should bow to his superiority and emulate his mirth. “Hey, did you hear this one?” Then, “How many did you conquer (wink and smirk) yesterday?” This verbal slap on the back says, “I’m in charge here and I am a funny, down-to-earth guy, let’s all hear it---ha ha ha!”
The Country Club regulars assemble again---liquidity fortified---by restating last week’s banal nothings---
“I saw the Galbraiths at Aspen!” (Chuckles)
“My shrink says I should eat more lettuce.” (Laughs)
“I think they should turn up the speakers.” (Knee slapper)
The upward mobile wannabe interrupts by announcing, “It was nice to see everybody at the Van Gogh Exhibit!” After the nods, she continues, “Oh Marge, I loved your remarks at the ball--- priceless! And how can I help at the next bazaar?”
Why do some people need to talk loud and laugh louder? Is it because their arguments are weak and their egos weaker?
Why do some people shout into their cell phones? Are the phones their tickets into the breathlessly waiting world?
If “A soft answer turneth away wrath,” can a softer voice silence the false prophets?
Turn the radio volume down for the car commercials; turn away the ha ha’s.
Some members in the country-club-set use “Forced Hilarity” to establish that they are indeed the in-crowd, sharing the in-secrets and the everlasting good will of the group.
Some sycophantic social climbers use “Loudly Assumed Status” as a tool to bring instant acceptance into privately held domains.
These high-decibel shouters haven’t heard that silence is golden, or that less is more. Instead, they practice that noise is better. Their overbearing shrillness marks insecurity and insincerity, not the confidence and stature they covet. To them, silence is a vacuum to be abhorred.
The salesman bursts into a room with a hearty guffaw, a demand that all within his hearing should bow to his superiority and emulate his mirth. “Hey, did you hear this one?” Then, “How many did you conquer (wink and smirk) yesterday?” This verbal slap on the back says, “I’m in charge here and I am a funny, down-to-earth guy, let’s all hear it---ha ha ha!”
The Country Club regulars assemble again---liquidity fortified---by restating last week’s banal nothings---
“I saw the Galbraiths at Aspen!” (Chuckles)
“My shrink says I should eat more lettuce.” (Laughs)
“I think they should turn up the speakers.” (Knee slapper)
The upward mobile wannabe interrupts by announcing, “It was nice to see everybody at the Van Gogh Exhibit!” After the nods, she continues, “Oh Marge, I loved your remarks at the ball--- priceless! And how can I help at the next bazaar?”
Why do some people need to talk loud and laugh louder? Is it because their arguments are weak and their egos weaker?
Why do some people shout into their cell phones? Are the phones their tickets into the breathlessly waiting world?
If “A soft answer turneth away wrath,” can a softer voice silence the false prophets?
Turn the radio volume down for the car commercials; turn away the ha ha’s.
Friday, September 25, 2009
How the Little Guys Can Win
Here’s a story about a little guy. His name is John Lamb and he runs “Bagel Boys,” right next to a Starbucks in the Atlanta suburbs. Here’s why he is successful, and this is a template for anyone who runs a store and wants to survive and prevail.
He has a great distinctive product. He worked for a big bagel chain for years, so he knows all their secrets. He knows how to make a better product even though it costs more.
He knows his market. Location is key. He chose a high traffic spot right next to a Starbucks! He stole some of their customers, and he’s proud of the comparison and the choice. The moral---don’t hide it, flaunt it!
He knows his customers and how to serve them. He calls most of them by their name, and they say, “Hi, John.” His presence is there.
He lives his business. It’s personal. The “Bagel Boys” are literally his boys. Life sized pictures of his adorable sons are the art works of his décor. It depicts them joyfully turning dough into bagels.
He sticks to his guns. He sells tasty sandwiches and salads, but he closes shop at 3:00.
“Nobody eats bagels for dinner,” he says. If Burger King wants to stay open ’till 2 AM, that’s their problem. “I have a life after work. I want to go home with my boys.”
He knows where he’s going. I’d bet his formula works. He’s looking for a second location, and possibly franchising is in the future. But I can’t see him trading his life for a position as a corporate executive.
He has the secret. He works hard, and he smiles. “I love this business,” says John Lamb.
John Lamb connects with his customers and they connect with him. Some big stores and big advertisers are pretty good at that, but most are not. They act as if they are entitled to your patronage and your loyalty. Lamb thinks like he’s your friend.
Does WalMart force thousands of small stores out of business? Or do their customers do it for them? Small stores can’t compete with the big guys on price and variety because they don’t have a big boxes or big bucks. So they have to do something different. They have to go down to the personal level, to one customer--like John Lamb and the Bagel Boys.
He has a great distinctive product. He worked for a big bagel chain for years, so he knows all their secrets. He knows how to make a better product even though it costs more.
He knows his market. Location is key. He chose a high traffic spot right next to a Starbucks! He stole some of their customers, and he’s proud of the comparison and the choice. The moral---don’t hide it, flaunt it!
He knows his customers and how to serve them. He calls most of them by their name, and they say, “Hi, John.” His presence is there.
He lives his business. It’s personal. The “Bagel Boys” are literally his boys. Life sized pictures of his adorable sons are the art works of his décor. It depicts them joyfully turning dough into bagels.
He sticks to his guns. He sells tasty sandwiches and salads, but he closes shop at 3:00.
“Nobody eats bagels for dinner,” he says. If Burger King wants to stay open ’till 2 AM, that’s their problem. “I have a life after work. I want to go home with my boys.”
He knows where he’s going. I’d bet his formula works. He’s looking for a second location, and possibly franchising is in the future. But I can’t see him trading his life for a position as a corporate executive.
He has the secret. He works hard, and he smiles. “I love this business,” says John Lamb.
John Lamb connects with his customers and they connect with him. Some big stores and big advertisers are pretty good at that, but most are not. They act as if they are entitled to your patronage and your loyalty. Lamb thinks like he’s your friend.
Does WalMart force thousands of small stores out of business? Or do their customers do it for them? Small stores can’t compete with the big guys on price and variety because they don’t have a big boxes or big bucks. So they have to do something different. They have to go down to the personal level, to one customer--like John Lamb and the Bagel Boys.
The Perfect Ad: Yogi and the Duck
What are your favorite current ads? A lot of my young students answered that
question with the Chic-fil-A “Eat More Chikin” campaign. (Others chose products
and ads that I’m not familiar with. I guess those advertisers know who their target
is not.)
I had to suggest my choice, and here it is, and why. In case you are one of the few
who hadn’t seen it---
Yogi Berra is in the chair and admonishes the barber not to
cut it too close---“Do you think I got that insurance?”
The barber asks, “What insurance is that, Yogi?” A
dialogue ensues between Yogi and the Aflac duck, that
includes the memorable lines “The one that you need when
you don’t need it,” and “And it gives you cash, which is as
good as money.”
The duck leaves the shop, with a trail of mystified
customers.
I think this is a classic, because:
• It uses a recognizable and likeable celebrity. (It’s risky to use famous
people, because they sometimes they fall from fame, some consumer
groups don’t like them, or the connection with the product is vague.)
• The central point is the benefit of the product.
• The conversation is low key and short.
• It is funny. Why do I think it’s funny? Because I’ve seen people laugh.
• It lasts. This is at the least its third year.
Back to the “Eat More Chiken” ads. It has legs---it lends itself to other related
materials. It is centered on the benefit of eating chicken. It has a memorable charm.
Again, what are your favorite ads? What makes them click, what makes them
timeless in your mind?
Oh, before we forget. The Aflac/Yogi and the “More Chikin” ads have the most
important attribute: they (at least apparently) have sold a lot of insurance and
chicken sandwiches.
question with the Chic-fil-A “Eat More Chikin” campaign. (Others chose products
and ads that I’m not familiar with. I guess those advertisers know who their target
is not.)
I had to suggest my choice, and here it is, and why. In case you are one of the few
who hadn’t seen it---
Yogi Berra is in the chair and admonishes the barber not to
cut it too close---“Do you think I got that insurance?”
The barber asks, “What insurance is that, Yogi?” A
dialogue ensues between Yogi and the Aflac duck, that
includes the memorable lines “The one that you need when
you don’t need it,” and “And it gives you cash, which is as
good as money.”
The duck leaves the shop, with a trail of mystified
customers.
I think this is a classic, because:
• It uses a recognizable and likeable celebrity. (It’s risky to use famous
people, because they sometimes they fall from fame, some consumer
groups don’t like them, or the connection with the product is vague.)
• The central point is the benefit of the product.
• The conversation is low key and short.
• It is funny. Why do I think it’s funny? Because I’ve seen people laugh.
• It lasts. This is at the least its third year.
Back to the “Eat More Chiken” ads. It has legs---it lends itself to other related
materials. It is centered on the benefit of eating chicken. It has a memorable charm.
Again, what are your favorite ads? What makes them click, what makes them
timeless in your mind?
Oh, before we forget. The Aflac/Yogi and the “More Chikin” ads have the most
important attribute: they (at least apparently) have sold a lot of insurance and
chicken sandwiches.