Shop Talk by Tim Manners

11:08 am | 2 recommendations | Be the first to comment

Fig Newmans

Paul Newman will be remembered for many things -- acting, philanthropy, race-car driving.  I will always think of him as an incredibly astute marketing guy.

About ten years ago, I was lucky enough to visit the Newman's Own offices in Westport, Conn., and interview its president, Tom Indoe (interview here).  After the interview, Tom gave me a tour of the place, including Paul's office.  He wasn't there at the time, so my fondest memory is simply a small sign tacked to the wall that read:

“You can get straight A’s in marketing and still flunk ordinary life.” ~ Paul Newman to Lee Iacocca after his Ford Pinto caught fire.

As far as I'm concerned, that says it all, and with the great sense of humor that is the signature of the Newman's Own brand.
This was, after all, only salad dressing.  But Paul understood that people might buy his brand once because it had his name on it and  might buy it twice because all profits went to charity.  But they would only become loyal, long-term customers if it were a really good product.  And it is.

Just as important, Newman's Own never deviated from the core idea that every one of its products was either created or inspired by the man himself.  Paul Newman made certain of that by personally approving every single one of the brand's new products, of which there are now more than 150.

That legacy is now largely in the hands of Paul's daughter, Nell, who in 1993 convinced her dad to launch a line of organic food items. In a New York Times article, Nell confirmed that he didn't plan to help revolutionize the market for organic products:  “He did know that it was a big thing, but I don’t know that he realized he changed snacking in America in terms of natural foods,” said Nell, adding,  “He probably would have laughed at that."

According to the Times, Newman's Own "pioneered the use of sustainable, organic palm fruit oil.  That led to the first trans-fat free microwave popcorn and to a filling for Newman-O's that was creamy without trans fat."  His Fig Newmans actually built the market for organic fig paste.

As Nell pointed out: “Everything had to be something that my father, who was born in 1925, would look at, recognize and eat ... We wanted people of his generation to say, that really tastes good — and then say, oh, it’s organic.”

And, oh, it's also raised more than $250 million for various charities (must-see video here).

Now, that's "change" we can believe in. 

08:59 am | 1 recommendation | Be the first to comment

Wal-Mart Moms

Wal-Mart is out with a fascinating presidential election poll of its female shoppers (a.k.a. Wal-Mart Moms) that reveals as much about Wal-Mart's fortunes as it does about Obama's and McCain's.

The poll of five battleground states finds Sen. Obama leading in three (Virginia, Nevada, Colorado) and Sen. McCain in the other two (Ohio and Florida), albeit by slim margins all around.  

Obama's strength is surprising because Wal-Mart defines "Wal-Mart Moms" as "more socially conservative women who typically don't have a college degree, who are feeling the economic pinch and are shopping for its lower prices." Clearly, this sounds more like a description of a McCain supporter than an Obama backer.

So what's going on?  Have these "socially-conservative women" gone liberal all of a sudden? Obviously not.  What's happened is that as the economy has softened, the profile of the Wal-Mart shopper has changed.  Apparently, more "college-educated, socially-liberal women" are now shopping at Wal-Mart because they are also "feeling the economic pinch and shopping for its lower prices."

This could be a momentary aberration that will correct the instant people are feeling better about the economy.  Granted, that may not be anytime soon, but the point is that it also presents a huge opportunity for Wal-Mart to expand its base over the long-term.

Wal-Mart does appear to be attempting to capitalize on the situation by going "green" in a big way and offering $4 prescriptions, for example. This can't hurt, but Wal-Mart may be missing its greatest opportunity to win over women (and everybody else) for a long time to come.  

What Wal-Mart needs to do, quite simply, is improve the shopping experience to a point where people don't shop there because they need to, but because they like to. Easier said than done, but Wal-Mart can look no further than to Best Buy, where a woman named Julie Gilbert is making Best Buy a great place for women to shop by becoming a great place for women to work.  This is paying off for Best Buy big-time.

As Dori Molitor notes in the current issue of The Hub magazine: "The immediate impact on Best Buy's business is evident in its $2 billion of market-share growth from female shoppers between 2005 and 2007." 

You can read all about Julie Gilbert and Best Buy here.  It's a truly amazing story and a must-read for anyone who wants to understand how keen insights into women can drive phenomenal growth.

10:09 am | 2 recommendations | Be the first to comment

FAO Schwarz

A tour of the FAO Schwarz flagship store in NYC should be mandatory for everyone who wants to understand the relevance of really good retail.

When last we left FAO, we left it for dead.  Every single one of its stores was closed, and it was in Chapter 11 bankruptcy.  Seems like yesterday but that was five years ago.  FAO had made the fatal mistake of attempting to compete with Wal-Mart and Toys R US on price and, worse, its merchandise mix had turned pedestrian.

If you're lucky enough to visit FAO Schwartz today, you'll see retail as retail should be done.  You're greeted by a singing doorman, who looks like he just stepped off the set of the Nutcracker.  A few steps away, you've got the now-famous Myachi guys, doing amazing tricks with beanbags.  

Step inside the Harry Potter boutique and it's like you've stepped into Hogwarts.  The young wizard behind the counter takes one look at you and you're convinced that you actually have. Little kids are dancing with delight on the famous giant keyboard. And, yes, the fellow with the boomerang airplanes is still there, throwing his little toy plane at the crowd and watching us duck as it pulls a u-ey and returns to him.

The place is teeming with people but somehow it doesn't feel crowded.  Staffers in blue shirts seem to be at every turn, ready to help and answer questions. You've really got to see it to believe it -- I've just barely scratched the surface here.

What matters is, FAO Schwarz has done what every great brand does when it loses its way.  It has re-ignited what made FAO great to begin with. The coolest part of the story is that FAO is about to expand exponentially, but it's going to do it right.  This time, it will open its stores as small boutiques, inside some 600-700 Macy's department stores nationwide.

FAO Schwartz is a profile in relevance if I ever did see one.

07:44 am | 1 recommendation | Be the first to comment

Relevant Responses

Earlier this week, I asked members of the Relevance Group on Facebook (see link at the bottom of the page) as well as subscribers of my newsletter to pick a brand that they feel is most relevant to them and explain why. (Here's a link to my newsletter: "Cool News of the Day").

We promised a signed copy of my forthcoming book, "Relevance: Making Stuff That Matters" to 28 people, picked at random. Not surprisingly, many people chose Apple as their most relevant brand.  However, what was surprising was the diversity of the responses from those who didn't pick Apple.  Also interesting is that so many of the chosen brands were not exactly household names, or the usual suspects.  

But perhaps most revealing was simply the highly personal nature of the responses.  That strikes me as one of those things that should be obvious, but isn't until it's pointed out. Relevance is a relative concept and a highly personal matter.  It's worth thinking about.

One last thing -- we provided two ways to respond -- either via SurveyMonkey or via a "wall" post on Facebook.  There were nearly twice as many responses on Facebook versus SurveyMonkey!

I've included links to both sets of responses, but as you know you have to belong to Facebook to access Facebook.  If you don't belong, I urge you to join the fun!

http://www.facebook.com/group.php?gid=27406960979

http://reveries.com/reverb/research/relevance/

10:08 am | 2 recommendations | Be the first to comment

Sigrid Olsen

The news that Liz Claiborne has closed all 54 Sigrid Olsen stores is sad indeed for Sigrid and the boomer women for whom her fashions were designed.  But it was also a setback for those who see retail as less of a tactical tool of sales and distribution, and more a strategic medium for marketing a lifestyle.

Sigrid Olsen stores were something special. As Claire Wilson reported in the November 19, 2006 edition of the New York Times, to walk through the front door of Sigrid Olsen’s  fashion boutique in SoHo was to walk through the back door of her own home in Hamilton, Massachusetts.

“I want my customers to feel as comfortable in my store as they would be visiting their best friend’s home,” Sigrid explained. “I want them to feel as though they’ve entered a work in progress, as most homes are.” The space, designed by Pompei A.D., consisted of “a loose configuration of roomlike settings.” For example, fitting rooms surrounded a “luxurious bedroom suite.” The cash desk was in the kitchen (because the kitchen is where everybody congregates).

Because Sigrid began her career as an artist, the space was accented with artifacts including “an easel, a stool and some well-used paintbrushes.” Some of her artwork graced the walls and the coffee table in the “living-seating area” was “strewn with design magazines and art books.”

As Sigrid explained: “Just like my house … but without the fireplace." But the idea, said Ron Pompei, the designer, was not so much a celebration of Sigrid’s lifestyle as it was an open door to the shopper’s own sense of self, and artistry. “Rather than ask customers to take on the value of the brand … we created a retail space that encourages them to express themselves in new ways,” said Ron.

He added: “We try to create a landscape where people will meander, make a circle, discover the stairs and look for more … Sigrid is saying to the customer, ‘You are a complex woman, with many different aspects to your life’.”  Ron also color-coded the different rooms: “The different blocks of color … is a signal that you turned a page,” he explained.

Unfortunately for Sigrid -- and for anyone who admires great retail -- she is in a kind of contractual purgatory. While Liz Claiborne has shut down Sigrid's label, it still retains the rights to it and suggests it may revive it at some point. Naturally, that frustrates Sigrid, but she’s not giving up: “Being a child of the 60s, I still have that idealist in me that I think I can pull it all together and give people an uplifting, positive message … and still be an entrepreneur and a capitalist at the same time.”

10:06 am | 1 recommendation | Be the first to comment

Economy Candy

Economy Candy, on New York's Lower East Side, is not a huge store, but it creates a huge impression. It is actually rather narrow, although it is long and the ceiling is high. It feels like a warehouse and a small shop all in one shot.

But what makes Economy Candy memorable is its religious focus on just one thing: Candy, candy and more candy. From the highest-end chocolate bars to the cheapest gumballs. It's hard to imagine that Economy Candy omits any kind of candy known to humankind -- including some brands that you would have thought had been extinct for decades. They just pile 'em high and watch 'em fly.

True to its name, Economy Candy prides itself on its low prices. But it is this singular focus on just one thing, and taking it to its insanely wonderful extreme, that makes Economy Candy so special. Starbucks would do well to a look at Economy Candy as it considers how to get back to where it once belonged.

Two other things are worth noting about Economy Candy. One is that it is so obviously family run. It's been that way since 1937. The young guy at the register calls out to his dad, and a customer asks him, "Where's your mom today?" It gives off a great, friendly, heartfelt vibe.

The other thing about Economy Candy is the smell, which can be described in just one word: Sugar.

Oh, and one more thing. On a Sunday afternoon, the place was jammed with customers. Retail as media, indeed.

You can visit Economy Candy online here.

09:33 am | 1 recommendation | Be the first to comment

Retail Strategy

For all intents and purposes, retail strategy is an oxymoron. Most marketers view retail as a tactic, not a strategy. They see it as a function of sales, not marketing. But those who understand the potential of a "retail strategy" to make or break a brand have a real edge over those who don't.

Take for instance, Under Armour. A recent story about the brand's amazing success by David Coleman in the New York Times (8/7/08) goes into great detail about its carefully cultivated, high-testosterone image and how that image plays out on in its advertising.

But buried deep in the article is the insight that Under Armour's success is in no small part because of its deft retail strategy: "For years it has largely restricted sales to sporting goods stores, military-base exchanges and sports- and military-oriented outlets."

Using retail strategically to bolster its brand image is at least part of the reason why Under Armour has logged "$314 million in sales for the first half of 2008, a jump of nearly $70 million over the first half of 2007."

Tupperware is a very different example of the importance of understanding retail as part of the brand strategy. As documented in a new book called Tupperware Unsealed, Tupperware was invented by a guy named Earl Tupper, who was a brilliant inventor but knew nothing about how to market his invention.

So he did the obvious thing and tried to get his product into stores. But it didn't sell. Why? Because shoppers had no idea what Tupperware was. It was a new product that required explanation. It was a woman named Brownie Wise who came up with the idea of demonstrating Tupperware at parties (she actually got the idea from Stanley Home Products, which was already doing the same thing).

Eventually, Tupperware stopped selling at retail altogether and Ed sold the company for $16 million in 1958.

So, sometimes retail should be part of the brand strategy and sometimes it shouldn't. But as both Under Armour and Tupperware prove, a brand's success demands a retail strategy.

08:30 am | 1 recommendation | 1 comment

What about Me?

The most frustrating thing about Apple's newly introduced "mobileme" service is that it seems I can’t create an alias return address with my own domain name. Yes, I can forward all of my other email addresses to my me.com address, but if I reply using the me.com service I must use my me.com email identity.

At best, it's not obvious how to use my own email address if I want to.

Why is this important? For one, I generally don’t use my me.com address when I’m at the office (where I can’t seem to kick my Entourage habit). I only use it when I’m “on the road,” meaning I don’t check it as often. So anyone who receives a me.com email from me replies to my me.com address — and I don’t necessarily see (and could easily miss) those emails.

And, by the way, I have five different emails, each of which serves a distinct and important business purpose — my me.com address, by comparison, is meaningless.

I understand that Apple’s grand scheme is that they will “own” my email experience, that I will use their “cloud” exclusively, and in their world my complaint is irrelevant. But what about letting “the rest of us” keep our own identities if we want to instead of turning them over to Apple?

09:40 am | 2 recommendations | 1 comment

Seven Words

No, not those seven words.

The seven words I’m talking about are just fine with the FCC but maybe deserve a little more scrutiny from the FDA.

We all know these words: green, organic, free-range, all-natural, low-cholesterol, biodegradable, and pure.

These are seven words we should never use to describe our brands. Although pure really shouldn’t be on the list. It’s such a noble-sounding word. King Arthur was pure. Dudley Do-Right was pure.

But our brands are not pure. They may be pure chemicals. They may be pure sugar (but probably not). More likely, they are pure nonsense.

The reason we should not use these seven words (and the list is certainly longer) isn’t just that it’s misleading, or even dishonest. It’s that nobody believes us (see Green Fatigue).

It’s as if we could just take the good old days of bolder and brighter and replace those words with greener and leaner and everything would be as it was before.

It’s as though we could just hand a few empty words to our fellow shoppers and everything will be okay again in our world.

George Carlin once said that words were just tools to conceal the truth. In fact, he used words to expose what he saw as the truth. George Carlin was a comedian and a gosh-darn funny one.

But what’s so funny about truthful words in branding?

09:05 am | 0 recommendations | Be the first to comment

Mind Space

The next big thing in retail merchandising is here and it is ... nothing.

At least that's the thinking at the new Jil Sander Store in Soho, which, according to a story in Sunday's New York Times magazine section, is stone, cold empty save for "a system of louvers that rotate at regular intervals to enclose the entire space in whiteness or open it up to reflected glimpses of the outside."

It is the creation of Germaine Kruip, a Dutch artist, in collaboration with Raf Simons, creative director of Jil Sander, who thinks the time is right for a little bit of ... nothing.

"I think it's a form of luxury not to open the door and get hit over the head with a bag," he says. So, you have to venture upstairs for that.

But will shoppers stop and appreciate the merchandising of nothingness? Or rush right upstairs to get to the merchandise? Or just turn around and leave, confused?

Raf plans to give "nothing" about six weeks, at which time he'll start to play around with it, maybe adding some "mannequins ... or even actual merchandise." He says he sees the space as a "laboratorium" where he can try something new every month and a half or so.

"There's been a lot of talk about the evolution of retail environments," he says. "But to me it feels right to do something with space and light that breathes."