Archive for the ‘Business’ Category

Gap, Inc. (finally) integrates all brands online

Almost one year ago, I discussed the number of reasons why Gap, Inc. should integrate all of their brands online. Today, they’ve taken the first steps to doing exactly this. They’ve announced upgrades to their website that integrates their brand websites into one shopping session. Now, the customer is able to shop all four brands (Gap, Old Navy, Banana Republic, and Piperlime) using one shopping cart, one checkout process, and one shipping method. Kudos to Gap for making it easier for the user to shop their brands all at once.

I would still like Gap to recommend products across brands - Sell me a pair of Old Navy shorts with my Gap hoodie. I would still like to see them blog about new fashion items and offer ways to mix and match items across brands. But an integrated shopping and checkout experience is a positive step forward for this retailer.

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It’s 2007 and retailers need Community Managers

Imagine it is Friday at 5:00PM and someone just posted, on their blog, about a horrible shopping experience they had at your store. Maybe a cashier was rude or maybe a store was disgusting - but whatever their frustration, they just posted their thoughts online and now it’s gotten linked to from two dozen websites and now people are talking about it across the country.

In this day, do you really want to wait until corporate PR gets into the office at 9:00AM on Monday morning before someone even thinks about reacting to this story? Monday is too late when there’s the potential that someone, reading the blog post, has decided not to shop at your store on Sunday.

Think it is far-fetched? I talked about this earlier in the year, when one consumer posted about their bad experience at a Kohl’s.

Think something like this can’t happen to your business? I can tell you that no matter how well you think you are training your employees, something somewhere is going to happen and someone is going to talk about it online. The next big story could be affecting your retail chain.

Today I read, over at Consumerist, about an unpleasant experience a person had returning items at Victoria’s Secret. Look through the comments and you will see a range of responses - some agree with the poster and complain about Victoria’s Secret customer service, while some stick up for Victoria’s Secret, while others debate the quality of merchandise Victoria’s Secret carries.

You know what I would love to see? Someone from Limited Brands posting a comment in that thread. Maybe they say that they are sorry for the experience, that they will look into it, and get in touch with the original poster privately. They could talk about how they are going to look into the policy and figure out if the sales person was poorly trained, rude, or even correct in what they do. A personal face of the corporation, being honest and engaging conversation, could stop an already bad experience from spiraling out of control. A personal face who could prevent the same situation from happening again.

This is the role of an online Community Manager: someone who represents a brand, online, and engages in honest communication with managers. It’s not hard to go through blogs, social networks, and community websites to find out what is being said about your brand. It’s not that hard to engage and welcome conversation and criticism. It’s not that hard to admit that, hey maybe someone made a mistake at the store level but it was due to poor training and we are going to correct that.

People make mistakes and they want to see big businesses admit that they do, as well. But a retailing remaining silent and ignoring the conversation around them is going to hurt their business and drive away customers.

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7-11 / Kwik-E-Mart marketing campaign

In what I think is one of the most brilliant move marketing campaigns of the past few years, 7-Eleven has turned 11 of their stores into Kwik-E-Marts, the fictional convenience store from the Simpsons. This is to promote the upcoming release of the Simpsons movie. 11 stores across the country have been outfitted in Kwik-E-Mart branding, complete with brands featured in the show that never actually existed before (Buzz Cola, Squishees, and KrustyOs cereal).

What makes this interesting is that 7-Eleven is putting up the bulk of the cost associated with this promotion. They’ve put out the money (”somewhere n the single millions”) to outfit their stores with the new look for the month. They believe this will show that they have a sense of humor about themselves and attract new customers.

It is a big gamble for the company, but the press they will generate from this will probably be great. The important thing is that they didn’t half-ass this - this is a company who took an idea and ran full force from it. The level of detail is impressive and will attract die-hard Simpsons fanatics, as well as casual viewers and non-fans alike.

The messageboard the No Homers Club has a thread with tons of photos of the interior and exterior of one of these converted locations while the Associated Press has more on the business end of things.

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Looking for retailers interested in social media/community opportunities

I don’t often use my own site to solicit anything of a commercial nature. But looking at my server logs, it is obvious that I get a lot of traffic from some pretty major retailers. So I’d like to put this out there:

I’m working with a client on a relaunch of a sports-focused community-based website. It’s pretty specific to one geographic area, but it currently has some pretty solid traffic behind it and a very loyal community behind it. With this relaunch, I am actively looking for retailers who may want to create a co-branded marketing strategy and reach out to this highly targeted demographic. I think it’s a great opportunity for a retailer, especially a sports or outdoor orientated retailer.

I’d really like to create a dialogue with retailers or businesses who may be interested in this type of opportunity. In addition to this client, I’ve got other clients that I consult and work with on an ongoing basis and I am interested in helping retailers connect with their market.

For more information, contact me via e-mail at [ts AT robotictom.com] or use my contact form.

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Advice for job seekers and recent college grads

Over at Lightheavyweight, Finn has posted some excellent advice for recent college graduates who are seeking their first job. While geared towards recent college graduates in the design field, I think the advice is worth re-reading for anyone who is going through the job hunt at any stage of their career.

Two of his pieces of advice, “Be prolofic” and “Show your passion” are two things that I think are often forgotten by people as the grind of a job wears them down. During the first tech bubble in the 90’s, I remember looking around at some of the other people in my field who were just getting into technology for a quick buck. In 1998, a comp-sci degree became the new business degree and the industry was flooded with people who had no passion for development or the technologies they were creating.

I think Finn’s dished out some good advice, worth reading no matter what stage of your career you are in. Sometimes we need to look back and rekindle the passion that got you to love what you love, no matter what it is, in the first place. Whether it is design, development, marketing, customer relations, or any of the million other things people do every day, be passionate about what you do and never forget that.

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JCP goes back to 1998 and releases downloadable, desktop sales application

JCP

I’ve come across a press releasing from JCPenney, announcing the release of a new downloaded desktop application called JCPToday. From their press release:

AUSTIN, Texas–(BUSINESS WIRE)–Skinkers, T3 and WTG have collaborated on the development of a unique desktop application that is helping one of America’s largest retailers, JCPenney, reach customers in a whole new way. The application, JCPToday, is designed to enhance relationships between JCPenney and its customers by delivering sales offers, new product announcements and in-depth features directly to a computer’s desktop. The application can be downloaded from www.jcptoday.com.

In essence, they’ve created a desktop calendar that allows you to keep track of things that you have to do while being reminded of upcoming sales and seeing some of the products JCP offers.

The press release intrigued me enough to download the application, but I can’t say that I’m impressed. While I appluad JCPenney for looking for different ways to reach their customer, this application seems outdated, stinks like spyware, and is short sighted in scope.

First, the good things about it:

1. I applaud retailers when they look for non-traditional ways to reach their customers. Using any sort of technology to market a retailer is a good step, since most retailers are still relying on traditional means of print, radio, and television advertising.

2. JCPenney is trying to establish a connection with the customer, reminding them to shop the entire store. As such, the application seems to not focus on any one area of the store and really tries to drive the store home, rather than individual products. Sure, there are individual products listed here, but click around and the customer gets a feel for the range of products that the store carries.

Now, my problems with this:

1. A downloadable application? What is this, 1998? In 2007, who is still trying to reach consumers with downloadable applications. Recent report states that 1 in 5 people in the world have high speed internet access. In an age of user distrust due to adware and spyware, I can’t imagine that many people are going to jump at the chance to download another application that will sit in the background of their computer and potentially hog resources and send private information to someone else. Whether or not the application actually does this is irrelevent, this is what a lot of people would think a downloadable application like this would do.

(Note: No matter how many times they put on the website that no private data is being shared or that the application isn’t spyware, how much trust do people have in corporations to actually be honest? Probably not that much. I don’t think I’m the only person to feel this way. In fact, Angelo Mandato had to develop his own uninstall application to completely get this application off of his mom’s computer. While it may not be spyware, making it hard for a user to uninstall an application is not cool.)

2. Using PUSH-technology to send information is, literally, a one way street. We PUSH the information to you that we want you to see. In an age of web 2.0, consumer-centric communities and interactive technology, people want to interact and share information. They don’t want to be spoon fed information.

3. 1 (the downfalls of a downloadable application) + 2 (the one-way communication of said application) = 3: the people who are likely going to take the time to actually download, install, and use the program are going to be consumers who are already enthusiastic about the JCP brand. This application is going to reach out to the already converted, but won’t do much to convert new people to the JCP brand. This goes back to relying on traditional advertising methods to market the retailer.

I hate to say it, but I think that this application is a failure. I do think they have a good concept for what they want to do, but I wish they would have executed it differently. How I would have done it:

1. JCP: retailer and desktop software publisher? Instead of using the time and the resources to create a new calendanr application, I would have reached out to already existing applications in order to create a co-branded service. There’s a myriad of organizational and calendar applications, and now JCP is competiting with them. In addition to already existing desktop applications such as Outlook, iCal, and Sunbird, there are plenty of web-based services, like those developed by Google and Yahoo, as well as others like 30 Boxes, Spongecell, and Remember the Milk. JCP should have reached out and attempted to integrate their marketing message into a pre-existing service.

2. Let’s say JCP reached out to everyone and no one wanted to integrate JCP branding into their service: I still wouldn’t have gone the downloable application route. Integrate the calendar application into JCP.com and brand it there. You are keeping the user on your own site and will have so many more opportunities to make the sale than by having the user in another window in a desktop application. Make it easy for the user to purchase what they want.

3. By keeping things on the web, JCP would have an opportunity to create a real interactive user community. The other day I laid out some ideas for ways Gap Inc. could integrate their sites together, and most of them apply here. Use a blog to showcase new fashion and reach out to the customer. JCP is expanding their stores and enhancing the in-store shopping experience - but not in my area. I’d love to see more about these new features and a blog would be a great area to show things like this.

But the key to the blog is interaction. With the application JCP has created, they’re able to feature items and trends but they’re not soliciting feedback and allowing the user to create their own connection to the JCP brand. This one way communication isn’t going to fly with today’s consumer. By building a community around the blog and calendanr, they would keep people coming back and, in turn, keep people coming back to their own website.

AdWeek has an article about the launch of this application with some quotes from people behind it. They seem to see this application as a way to reach already existing customers. While I have already pointed that out and agree with that, I think that they could have easily done this in a way that could really reach out to other people who don’t already shop at JCP.

I really wanted this application to be good, but I think JCP has missed the mark. If JCP had taken the concept and altered it, only slightly, they could have a real smash hit on their hands; something that would have enhanced their brand and something that other retailers would use a case study. But instead, they have an application that will most likely be thought of as intrusive spyware and will soon be forgotten.

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How Verizon gets their message across

I thought this was funny.

Last night, I went out to my driveway to pick up the new copy of the free local weekly paper. When picking it up, I noticed it seemed a bit heavier than normal. Much heavier, in fact.

Did they add a new section? Nope. Just fifty advertisements for the new Verizon Fios service!

Sign up for Verizon Fios!!!

Guess they really want me to sign up? Or maybe they want me to give them out?

(Or maybe a machine messed up at the printing plant and stuff them all in there, mistakenly? I guess that’s it.)

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Hot Topic, lifestyle marketing, and integrating store and web design

One of my local malls, the Monmouth Mall in Eatontown NJ, recently has seen a number of retailers relocate and remodel their stores: Victoria Secret, The Limited, Express, New York and Company, and Hot Topic. Add in the conversion of a Rampage to Forever 21 and new stores being built (Charlotte Russe, Hollister, and Modell’s), the mall is generating excitement with their newness.

The Hot Topic remodel interested me. It’s been 10 years since they opened in their spot that they were in. The new store has better lighting, better merchandise presentation, more excitement, and it is more inviting to shop in.

Not only did they remodel this store, but this is one of the first 10 percent of Hot Topic stores to get the new, reworked layout.

Hot Topic’s dark Goth stores, which were once a huge hit with rebellious teen shoppers, are getting a lighter, brighter makeover as the retailer struggles to pull sales out of a deep hole, the company’s chief financial officer said Wednesday.

“Based on feedback from our customers and changes in the [apparel] industry, we’re changing the look of our stores,” James McGinty told a gathering of analysts at the Piper Jaffray Annual Consumer Conference in New York.

“People were telling us that the stores were too dark, gothic and intimidating to the average customer,” McGinty said.

(More from CNN/Money.)

Over at Lightheavyweight, Finn is talking about talking about how this new layout ties in with lifestyle marketing. To really capture your marketshare, as a lifestyle marketer, you have to evolve with your clients and adapt through the times.

One can create a great shopping experience and display merchandise well, but if it doesn’t connect with the customers, there will be no business. The challenge with lifestyle marketing is not only to create an exciting shopping experience, but to create one that connects. As Finn discusses, I think Hot Topic has done this.

This new layout is a fresh look for the retailer and a needed change. Adapting as the marketplace grows is not only good business, but it is something the retailer needed to do. The last 12 months have not been kind to them:

What I also like is how well their new website design ties in to the new store concept. Brighter colors, better navigation, better presentation of merchandise. Not only does the new site work well and look nice, but it’s a direct reflection of the thoughts that drove the new store layout. This is a great integrated effort to create a cohesive shopping experience across all mediums. This is something that not very many retailers get right and Hot Topic did.

It will take a while to get this concept off of the ground and really reinvigorate the business, but the seeds of growth and change are there for the long run. Watch out for Hot Topic (again).

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H&M to offer virutal fashions through The Sims

Fashionable retailer H&M is teaming up with game maker Electronic Arts to offer their Summer fashion collection, virtually, in The Sims 2.

Electronic Arts Inc. and H&M, the international fashion retailer, today announced an innovative partnership that encourages fans of The Sims™, designers, and fashionistas alike to participate in The Sims 2 H&M Fashion Runway and discover the summer themed collection with The Sims 2 H&M Fashion Stuff pack. The fashion runway provides participants the tools to create their very own fashions using the most popular PC game ever, The Sims 2.

In addition to the fashion options available in the game, it appears that players will be able to play with cash registers, mannequins, and clothing racks to create their own store.

On the surface, this may seem like a very strange announcement. But really, it is a good strategy by H&M to extend their brand and create more awareness of their fashion offerings. This is also a great example of a retailer embracing technology and using non-traditional means to reach their consumer.

More information from GameZone and Geek Sugar.

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Lesson in how not to brand: Cocaine Energy Drink

Cocaine energy drink is a drink marketed by Redux Beverages, LLC. Last month, it was announced that the FDA had issued a warning letter to them suggesting that it was not proper to market an energy drink under that name with the slogan “a legal alternative”. In response to mounting pressure against the drink name, the drinkmaker said that it was ceasing distribution of the Cocaine energy drink and shortly after announced that they would be renaming it as Censored.

As I wrote last month, this was the first time I had ever heard of the drink. I agree that the name of the drink was quite silly and they were trying to build a brand about something controversial without actually investing the time to build an lasting brand. It was a horrible attempt to be edgy.

Last night, while at my local deli, I noticed that they still had several cans of the energy drink. I figured I would give it a try to see if maybe, just maybe, there was something there. If the drink is great, maybe the company can spin the band press and use that level of awareness during the rebranding. All PR is good PR, right?

But boy, is this drink putrid. I’m sorry, I’ve drank a lot of energy drinks and weird sodas, but this one was pretty nasty. I couldn’t even finish the can without getting heartburn, so I put it down and moved along.

Maybe the drinkmaker was right to try to brand themselves in an edgy, controversial way in order to gain marketshare. It’s obvious they don’t have much else going for them. The product, in this case, seems like an afterthought. It’s almost as if the brand was conceived of first and then the product was developed.

Lesson learned: develop a great product first and build a brand around that. Focus on what sets you apart from the competition and what you deliver to the customer. Don’t rely on a gimmick when sculpting your brand, today’s consumers are too smart for that and eventually, they will move on.

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