Wide Angle

On Monday, Fortune came out with a long, in-depth piece on the success of Trader Joe’s – the wildly popular small gourmet grocery store. The chain, owned by German grocery conglomerate Aldi, has experienced dynamite growth in the last 15 years, expanding from its base in Southern California to over 200 stores nationwide. Their sales numbers ($8 billion in 2009) are similar to those of semi-competitor Whole Foods, and their sales per square foot are an estimated $1,750, more than double those of Whole Foods.

Fortune spends a lot of ink (or pixels, I suppose) analyzing aspects of Trader Joe’s success. It’s a good article, but what has made TJ’s such a cultural phenomenon isn’t too difficult to discern. I’d separate it into a few key buckets: Read More »

Ah, the dog days of summer. The inevitable 90-degree day followed by the unpredictable afternoon thunderstorm and flash flood warning. If you’re lucky, the storm hits at 2pm before the commute; on the one day you absolutely must get home, I guarantee the storm hits at rush hour. The beauty and agony of summer: the uncertainty of late afternoon.

And that is exactly where our manufacturing members find today’s economy – a late summer afternoon, with limited predictive ability as to coming market conditions. They’ve seen the sun peek through the clouds (11 straight months of sector expansion per ISM’s Report on Business) but with markedly slower growth in June’s new orders, that grey cloud seeps back into the picture. With a consumer-driven economy, manufacturers can’t be too pleased that June housing starts also dropped 5.0%, while consumer confidence hit a low not seen since August 2009. Read More »

Everywhere we look, there’s evidence that consumers are a little more skeptical, a little more cynical, and sometimes even a little angry. While these consumer sentiments are widely recognized by marketers, many brands continue with the feel-good aspects of their message: family, friendship, security, trust, and even hope.  At the same time, Surly Brewing and Angry Little Girl totes are migrating from niche to mainstream with a different message—you’ve got attitude, and we understand that. Red Tettemer illustrates the approach perfectly in Tub Gin’s recent campaign:

One of the sharpest subversive ads of the year (a humble opinion) is available at http://www.tubgin.com/, and click on “A short, short story”.

These brands offer just a few examples of a broader trend in tapping directly into the edgier, snarkier sentiments of today’s consumer (Whitney had to tell me what snarky means).

Iconoculture—MLC’s new partner for bringing real-time consumer insights to our members—has picked up on this trend in its most recent research on “Subversive Branding.”  Iconoculture’s findings point marketers in an interesting direction: while subversive branding can breathe new life into our marketing messages, it also runs the risk of alienating consumers. Read More »

Susan Wassel, PR Manager at Sharpie, launched a social media campaign with the help of a single fellow employee and now manages the project singlehandedly – with a $2,000 budget.  Her work exemplifies how your team can move forward even if you lack the resources necessary to bring on external support.

Video: Social Media on a Shoestring

Slidedeck: Social Media on a Shoestring

“Sharpie Susan’s” goal was increase brand loyalty by leveraging brand advocates they termed “bold expressionmakers,” who are Sharpie uber-users that gravitate toward new media.  To achieve this objective, Sharpie decided to showcase content from these “bold expressionmakers” that demonstrated creative ways to use Sharpie pens in daily life. Read More »

Ah, the sweet smell of redemption on a Thursday morning. Last week, I wrote about whether executives could tag companies as ‘innovative’ if they failed to deliver revenue growth (and implicitly, fail to meet customer needs). BCG’s listing of the top 50 innovative companies said yea; I, nay. And this week, I think I’ve got 23 companies to back me up: Fortune’s list of 23 companies that achieved double-digit revenue growth despite the turbulent economy in 2009. Perhaps not innovative, but doing a great job of exceeding shareholder expectations.

Discerning a common thread among those on the Fortune list isn’t easy, especially since most would rarely appear on an ‘innovative company’ list. You could certainly argue that value positioning helped tremendously, i.e., the right economic proposition to capitalize on retrenched consumer spending. Companies like Dollar General, Dollar Tree, and Ross Stores certainly fit the bill. Yet, there are plenty of ‘value’ retailers that noticeably didn’t make the cut, from Family Dollar to the granddaddy of them all, Walmart. There isn’t an easy industry lens to the list either – in what was generally another poor year for financial services, USAA, Wells Fargo, and Erie Insurance beat the odds handily. Even with oil prices up across 2009, there isn’t an energy company to be found. Read More »

The Sales and Marketing relationship at many B2B companies can be characterized by the term “managed dissatisfaction”.  Competing goals and time horizons prevent the functions from seeing eye-to-eye, resulting in Marketing and Sales doing just enough to placate each other while pursuing separate agendas.

Marketing and Sales have traditionally seemed resigned to this, content to work around each other if they couldn’t work together.  That’s changing.  We’ve seen a dramatic rise in the attention marketers are paying to alignment with their sales counterparts.  Three factors are driving this interest in improved coordination across the commercial organization: Read More »

Let’s face it – as the frontline for cutbacks in consumer spending, traditional retail has suffered through a miserable two years. Abercrombie & Fitch gambled that higher prices would keep its panache and lost terribly. Sears Holdings’ stores had their best quarter since 2005 – with a 2.3% year-on-year same store sales decline. Even the McDonald’s ‘I’m lovin’ it’ juggernaut stumbled to a 0.7% same store sales decrease this January. Does the rest of 2010 provide any hope for recovery? And if so, can retailers take advantage of it? Read More »

Amsterdam Schiphol Airport, Concourse D and I’m eating Sbarro, drinking a Coke, and overlooking flag carriers from the Netherlands, France, Italy, and the UK. The voice from above announces flight information in three languages – Dutch, English, and the language of the country’s destination. The passengers next to me are listening to iPods singing American pop, heading for Africa.

Whither globalization? I beg to differ.

There was a bit of consternation at the Davos confab earlier this year as to whether the era of globalization was the root cause of the global financial meltdown, and as a result, perhaps it was time to roll back some of that interconnectedness. Nicolas Sarkozy was particularly pungent in his argument to this effect. Granted, globalization certainly hastened the onset of recessionary tendencies the world over; international capital flows have only increased since the Asia financial crisis of the late 1990s sent a minor shock wave through the system. Read More »

Advance warning: this post will likely open more doors than it closes. But they are important doors that need opening, especially if they aren’t already. Haniel Lynn pushed the first one open with his earlier post, asking if Marketing could foment a corporate cultural revolution through social media. Member conversations I’ve had over the past week have demonstrated there is a root-cause question that must come first – where does Marketing fit in the organization? Better yet, where should it? Read More »

Marketers would be remiss to ignore the U.S. political events of the past week. Scott Brown’s upset victory in Massachusetts’ Senate race removed the air of inevitability from health care reform. President Obama’s plan for a tax on the largest financial institutions sent the Dow plummeting 5% across three sessions. As December home resale data proved less than stellar, the administration announced a wind-down of federal support for mortgage rates – potentially a double blow to that sector’s recovery. Let me back up: why should marketers care?

Political affiliations aside, government touches more elements of our consumer-driven economy than ever before. One policy change here, another there, ripples through the system with unprecedented speed (like perhaps, an unintended consequence). If banks feel less wealthy as a result of taxation and more limited mortgage support, the less likely they are to expand credit. Tighter credit, as we saw vividly in the fourth quarter of 2008, leads to lower business investment and greater consumer savings – starting another cycle of money removed from our economy exactly at the time it needs capital injected.

Senior leadership teams don’t want excuses, though. After two years of stumbles, most executives look to 2010 for growth. Yet the number of extraneous variables affecting that potential growth is incredibly high, hence marketers’ collective uncertainty. Just take several possible scenarios that could happen across 2010: Read More »