The Brand Man Speaks

Black Friday moves to Turkey Day, Thanksgiving but will consumers respond positively to this move?

Getting a jump on Black Friday retail sales has become an obsession for millions of Americans. In the past few years most electronic and mass merchandiser retail concerns have opened their doors in the wee hours of the Friday after Thanksgiving. Some open at Midnight to lure shoppers to (supposedly) great bargains. Consumers have been seen lining up for hours to get into these special shopping events. But there maybe a backlash this holiday season.

This year a handful of retailers are pushing the time frame even earlier announcing they will open at 10pm on Thanksgiving. Some consumers think this is great news. However, a growing number are publicly saying they think stores opening in the evening of Thanksgiving Day is "crossing the line".

The line being crossed is the one which says making employees shorten their holiday family time to come to work is unfair, unreasonable and at one extreme a violation of workers rights. In many news articles over the past few days, thousands of consumers have expressed concern to full blown outrage that greedy retailers are forcing their employees (even with holiday pay) to give up time with family to work. Is this going to far? Are these outraged consumers right? Will retailers who open "too early" see a negative feedback in their sales? It is too early to tell but things are a brewing.

The "Occupy" rallies around the US have shown many Americans are fed up with corporate greed and the needs of the wealthy to make more and more money off the backs of the average guy. It is within this cultural paradigm shift that such a backlash against retailers forcing workers to work on holidays is getting much of its fuel.

It is a tricky line to cross because many retailers feel they must be competitive and lure shoppers in as quickly as possible to "snap up" the available holiday gift buying dollars especially in this on-going weak economy. Those retailers who will not open on Thanksgiving evening have expressed support for workers and their families but also acknowedge it could be a costly risk to lose valuable consumer sales.

Personally I cannot imagine being a part of this craziness and have found many of the same desirable items available from the comfort of one's home office online at comparable prices. But what is important here is the underlying voice of average Americans which has until the "Occupy" rallies been kind of quiet. I think it is very important for consumer products and service companies to be mindful of this increasingly vocal group and not to dismiss it as unimportant or minor in anyway. There will be changes in our culture that come out of this still undefined movement across the US. As of yet, as always when you are in the middle of a paradigm shift, it is unclear what kind or what magnitude of change will be forthcoming. Be rest assured, however, that an important shift is coming.

Watching out for you everyday.

Eli

What's wrong with the under 35 set? Common courtesies out the window

Normally this blog column focuses on brands, mostly products and services. On occasion I write about individual people as brands. Today, I am compelled to go slightly off-track and write about some of the issues I see with young people (classified here as under 35 years of age).

The issue? A complete lack of common courtesy behavior with their peers and more importantly with older folks like myself.

As part of understanding brands and brand building, one has to also understand human behavior as it impacts consumer decision making. A significant change I see between baby-boomers and their children and grandchildren is how they handle day to day interactions with other people.

These young people who increasingly socialize not in person but through online social media seem to have lost the understanding (and the art form) of how to deal with people one on one. It is so common for a younger person to make commitments (professional and personal) and break them or not live up to them as it is for them to use texting as their main form of communications.

I am astounded how often I personally experience this and how often corporate managers complain about their younger employees. They expect the world to be given to them but seem to also think failing to live up to a responsibility or an agreement as "no big deal". Making an appointment and not showing is not something a baby-boomer would do without (generally) contacting someone in advance to explain why the appointment would be missed. Or, in a extreme case, follow up immediately afterward to explain. Young people very often do neither. They expect their elders to respond to them quickly give them immediate feedback and answers but they see no reason to do the same in return.

For a group facing lives that likely for the first time since World War II will not be better than their parents, they are contributing in my opinion to this situation beyond just the economics of the world. A lack of reliability and dependabilty does not bode well for anyone in a world where jobs are increasingly harder to find and keep. It is no surprise that many employers would now rather hire retired "older" people than younger ones because of this behavioral situation.

I am not sure what has caused such a notable change in behavior but one thing I am sure is this seems to be another example of the decline of society as we know it.

Watching out for you everyday.

Eli

Missoni for Target launch wildly successful. A true lux brand goes mass

Target Stores launched another limited edition designer line on Tuesday this week that proved Americans want truly lux brands at cheap prices. The line from Italian textile fashion house Missoni included apparel, beauty, home goods, luggage and bedding among other categories.

The consumer response was overwhelming with stores selling out in a matter of hours and Target.com shutting down due to traffic overload.

Why the craziness? Missoni is one of the old guard true luxury brands that has not made any effort over its history to discount or offer cheaper lines to aspirational consumers. The quality of their designs and manufacturing is top notch. For such a lux brand to offer a large collection of goods at "flash fashion" prices is unprecedented.

I am familiar with Missoni through family friends in Italy who over the years brought us various apparel gifts on visits to the US. Scarfs and sweaters that cost many hundreds of dollars ( I have a sweater given to me 20 years ago that cost $1200 then) are still in our family because the products are timely in design and crafted to last.

I called to several local stores and was immediately told by noon on Tuesday that all Missoni products were "sold out" with no idea when the stores would be re-stocked.I was able to finally get online and buy a few things to see (in a few days) how good the low priced items are in terms of quality. I truly was shocked. I expected a good turn out but not a sell out this quickly.

Most Americans have never heard of Missoni as the family run company has not pushed to brand their products as household names in this country. They have preferred to be a bit off the radar for most consumers and cater to a smaller well-heeled audience who appreciate the quality of their fabrics and their unique patterned designs.

With the mass PR that this "sell-out" has garnered in the past 24 hours, it is clear the Missoni name will be far better known across the US by week's end. Additionally, products are already showing up on Ebay and other sites for re-sale at quite inflated prices given the limited edition of the entire collection. (The plan was to offer the line through October...depending on inventory. It seems unlikely there will be enough merchandise to keep the promotion going that long.)

A good question I am being asked is, "will this damage Missoni's brand image among its more elite customers?" Honestly, I do not think so. The designs look similar to the "real" McCoy, however, the quality is likely substantially lower end and good for limited wear and durability. I highly doubt the dresses and other fabric designs will have the same hand down generation to generation quality the originals do which will keep the loyalists buying the high end. Missoni has successfully reached a broader audience with this one move which could assist it with greater distribution (if desired) in the US for its luxury products assuming the economy improves (at some point in the future). Overall, a smart brand building move by Missoni and Target.

Watching out for you everyday.

Eli

 

Southwest Air one of only the carriers NOT refunding FAA taxes to fliers directly

As of today most of the major airlines including US Air and Delta have announced they are directly refunding FAA taxes paid by fliers for trips occurring during the non collection time by the FAA (which will go through this fall as the Senate failed to resolve this matter before their summer recess).

Originally the airlines instructed fliers to try to navigate the IRS.gov site to get a refund. You can imagine if the debt ceiling legislation matter in Washington was an example of government failures, you can further imagine trying to address this refund matter directly with the IRS to be just as difficult for the lowly consumer.

A call to Southwest Airlines this morning proves the usually consumer friendly airline is behind the 8 ball on this issue and is refusing to refund the funds directly or assist fliers who paid these taxes prior to the FAA tax collection shut-down with handling it through the government. Shame on Southwest as consumers have come to know this brand as one that steps to the plate and handles these kinds of matters proactively versus the legacy carriers specifically. Management and marketing asleep at the wheel on this one.

Watching out for you everyday.

Eli

TD Bank: America's Most Incompetent Bank

SEE UPDATE from 6/20/11 below

 

With unemployment unabated around the US, it might make one wonder why companies seem to be having a hard time getting good talent to work for them.

Here's a prime example of the problems facing consumers today that I personally experienced.

TD Bank recently bought out my small regional bank. My small financial institution was known for lots of personal care to individual and small business owners. I wasn't thrilled when I got a letter some months ago telling me that Mercantile Bank would become TD Bank. I was told to be reassured because TD Bank positions itself as "America's Most Convenient Bank" committed to outstanding customer service like no other bank in the US. Sounds good, but so do so many other positioning statements companies put out these days but fail to deliver on.

I was informed by a letter initially telling me that nothing would change with the acquisition; that everything would be seamless. This turned out to not be the case at all.

I received a call some weeks ago telling me my accounts WOULD BE CHANGING because my account numbers which I have had with Mercantile for over 20 years match accounts already in existence at TD Bank. I was informed to not worry because I would be receiving new account information well in advance of the turnover including new FREE checks.

Of course this did not happen. I had to do all the work myself as no information arrived as promised. I had to spend nearly an hour at my old branch getting things fixed...on two occasions.

With new account information and checks in hand I thought the worst would be over. Not so. I was then notified that my bank debit cards would be deactivated this week but again not to worry new cards were on the way and easy to activate.

No cards were forthcoming by the deadline and a call to my old original branch generated news that on Saturday June 18th I could come down to the bank and they would have the equipment to produce replacement cards. No waiting, no issues, easy and simple.

As you can tell from the gist of this account, I arrived at the bank this morning to find they were NOT equipped to do anything and won't be until next week "sometime". However, my cards were deactivated so for the meantime I am in limbo, "so sorry for the INCONVENIENCE" I was told from my "new" bank TD Bank which calls itself, "America's Most Convenient Bank".

I believe TD Bank is America's Most INCOMPETENT and INCONVENIENT Bank and needs to stop marketing itself otherwise because they are failing every step of the way. So BEWARE of this banking institution they talk with forked tongue. And bank ad spokespersons Regis and Kelly should think twice about being associated with this bank if they know what's good for them long term.

Watching out for you everyday.

Eli

 

UPDATE

The power of social media: I posted this upset with TD Bank here on my blog and on my twitter account. Within 24 hours I heard from top officials at TD Bank. They were extremely concerned about my experience and have made a major effort to resolve the issues quickly. They are taking action where appropriate to address the problems that led to my horrific experience. I am impressed with both their effort and the power of social media to get a major corporation's attention quickly.

EP

No Surprise: Consumer Reports study says Americans fed up with poor customer service which is rampant in this country.

In a new customer service study just released by Consumer Reports, Americans say they are totally fed up with poor customer service and find few companies doing a good job.

As a branding expert I have commented frequently on this subject identifying it as one of the key areas companies can make a difference in people's lives (and build brand loyalty). However, it has been clear for the past decade that companies treat customer service as an expense and not a revenue generating opportunity and with tightening of corporate belts, pay little attention to this area.

64% people of people polled have walked out of a retail store for not being able to get assistance. Do you have any idea how much money that adds up to? Sometimes when I read about the woes of retailers who blame poor sales on the weak economy I counter that retail sales would be far better if stores even tried to help consumers BUY products in their stores versus losing them because staffers just are indifferent to consumer's needs/inquiries. 67% said they have recently hung up on a phone call to a business concern prior to having their problem addressed because of either extremely long waiting times to get help or incompetent (often outsourced overseas) customer service agents.

Retailers who focus on (low) price over anything else like Wal-Mart and Sam's Club top the negative service list. Southwest Airlines and Apple are rated the best with customer service.

I recently walked out of two stores; West Elm and Office Depot, because after searching for help in both retail concerns, I could find no one willing to address my inquiries. Additionally, in a second visit to West Elm to simply buy two bowls to replace recently broken ones (by visiting guests) I also walked out again because in a nearly empty store (of customers)  two check out people were pre-occupied with an involved dialogue with one customer and the 6 (yes 6 I counted) other staffers I saw could not be bothered to assist me some of whom were walking around the store doing virtually nothing (I could see). After waiting nearly ten minutes to pay for the two items I publicly stated to all I was walking out because the service was so deficient. And did so.

If retailers want to see improved sales in a slowly improving economy the first thing they must do is take customer service (leading to customer satisfaction) seriously as a revenue generator. Those that do will easily take market share away from those that do not and recover faster and build greater loyalty with customers as they open their wallets wider in the next year.

Do you have a good or bad customer service story of recent vintage? If so, send me a comment.

Watching out for you everday.

Eli

 

 

Netflix stock rises amidst a major down market set off by signficant worries about Japan and its global impact, why?

Admittedly, I am a fan of Netflix (own some stock and am a subscriber) and watch consumer companies from the perspective of empirical evidence. That is why I am not surprised by Netflix's recovery from a few weeks of declines after many weeks of sharp increases in stock price.

Here is my reasoning, from a consumer marketing point of view.

Netflix was a game changer of sorts when it first surfaced and has helped dramatically change the way we view entertainment at home. Although the economy is improving, I still see consumers spending a lot of time at home enjoying their upgraded entertainment viewing options. Even today the average home has at least one flat screen, many have multiple units, some homes now have 3DTV. DVDs, DVRs, Apple TV Xbox, Playstation among many other toys allow consumers to make choices about their viewing options and times. With the technology to easily view major movies shortly after release either downloaded to your computer or streamed to your TV set, we have so much entertainment at our figure tips.

The key is I do not see consumers spending much more time OUT of the home for some time to come. Since Faith Popcorn and her concept of "cocooning", Americans as well as consumers around the globe have spent trillions upgrading their home environments to make them more comfortable and not worth leaving. With the housing problem still at hand, it is still too expense for many to go out to the movies, dinner and pay parking etc than staying at home.

And this week, after the disaster in Japan, most financial markets are reflecting gloom and doom, with good reason. However, as things get worse again economically around the globe before we see another turnaround, it is more likely that consumers will retrench into the home environment more, cut back on travel, dining out and other disposable income activities.

Another reason for Netflix success:They seem to be pretty shrewd business folks keeping satisfaction high among users while providing frequent new opportunities for their loyalists to stay loyal.

Additionally, the idea that the Netflix brand name will appear of many TV set remote controls in the very near future (if not already) is a huge win for the entertainment provider keeping their ID in front consumers everyday and having virtually no competition in front of the consumer when they begin the entertainment choice process. How amazing is that?

Pretty amazing to me.

Watching out for you everyday

Eli

The Brand Man Speaks launches "@elitalks" on twitter for current updates on marketing news

Beginning today, The Brand Man Speaks launches its first twitter account @elitalks to provide its readers with faster more current and sometimes of the moment comments on what's happening in our world of consumption.

Using twitter for its greatest strengths, @elitalks will comment on news, rumors and information as it happens/surfaces that sparks a Brand Man response or reaction.

Please sign up for my twitter account.

Thanks

Eli

Starbucks venturing into wine and cheese in revamped coffee stores; good brand strategy?

Starbucks once the high flying coffee house retailer and community center brand has been tripped up by a variety of circumstances and off strategy activities in the past few years. Additionally, the recession hurt business as their pricey coffee products were substituted with less expensive and tasty offerings from McDonald's and Dunkin Donuts.

Starbucks now is testing a concept to offer wine and cheese and artisan beers after 4PM to bring more business back into their pricey real estate given a whopping 70% of their business in generated before 2PM.

Unlike their foray into music and movies which diverted their focus from coffee and their "community" center, gathering place brand strategy, (efforts that were deemed very unsuccessful), the evening come and relax after a caffeine fueled day idea may work.

Starbucks' brand was always intended to be more than just upmarket coffee. It was about creating an environment to enjoy a little self-indulgence in one's hectic life. It evolved into a place for friends to meet and for small business entrepreneur types to set up "offices" (not always to the delight of other customers) utilizing the retailer's WIFI internet service.

Bringing people back to Starbucks in the evening for another gatheirng experience seems to make sense and to be reflective of the original brand strategy. They have excellent real estate all over the country affording them the ability to create little neighborhood evening cafe environments during a time when consumers have cut back on dining out but still don't want to give up time out of the home to relax and unwind with friends.

With a focus on beverages that are a cut above average and priced slightly premium but not over the top, I believe Starbucks will find this an excellent new source of revenue.

The concept is being tested in one of their prime Seattle area stores that has been completely revamped to handle coffee sales during the day and wine, cheese, cured meats and beer during the evening hours. The store palate has been redesigned to increase a feeling of ease comfort and relaxing for evening patrons along with the use of environmentally friendly materials.

Finally, I also think this concept will help people on first dates. Instead of just meeting for coffee in a place that is comfortable for both parties (activity neutral I might call it), first daters may find that the wine and cheese offerings expands their repertoire of choices that are equally safe and benign.

Watching out for you everyday.

Eli

 

Retail brand "All Saints Spitalfields" hits US with edgy apparel and equally arrogant management and store employees

Despite the ailing US economy, a UK based retailer of edgy apparel (with some Goth overtones) has arrived in LA and Miami Beach. The brand, All Saints Spitalfields, aims to appeal to affluent twenty and thirty somethings with its euro-casual look.

The Miami Beach store, located on trendy Lincoln Road in South Beach, looks like a sewing machine factory at first glance into the cavernous space.

Based on several initial visits, it appears locals but primarily tourists are finding this new retail concern of some interest. However, there is a serious problem brewing.

The retailer is very coy about its return store policy, not providing it to buyers until after the transaction is complete in violation of state laws. It appears that the store only provides store credit or exchanges. On further inspection the store's second receipt (not the one you sign or the transactional one you get for a credit card payment) states this but also states that the consumer is entitled to a refund as per one's rights. 

Confusing huh? You bet. There's more.

On a recent trip I tried to return a T shirt purchased on American Express. After a 15 minute wait to get to the front of the one man cash register check out, I was told that "no one" is available to address my return needs for half an hour. WTF? I never heard of such nonsense. Meanwhile, I was told that they wouldn't provide a refund only store credit but again, no one in the entire huge store among the entire staff could handle a return.

Fumed, but determined to resolved the matter, I was able to "persuade" one store employee to fetch a manager after 15 minutes. The manager reiterated the store's return policy claiming two things. 1) The second receipt explains no refunds (despite not seeing this until after the transaction is complete) and 2) the disclaimer about entitlement to a refund means (to the UK management) store credit not a US understood refund. I laughed hard at this explanation. I told this manager that what she was saying is that the Kings English supersedes American English and American laws. She said yes.

I politely told her that just wouldn't fly with the AG of the State of Florida or most customers.

I contacted various state agencies and indeed ALL Saints is in violation of various retail laws and will now be investigated. 

There have always been retailers who exude a sense of arrogance to create an "image" behind whatever brand identity they think is best for their success. But this case took things to new levels in my opinion.

Will keep your informed.

Watching out for you everyday.

Eli