Monday, April 30, 2007

Non-Traditional Retail Outlets

Similar to my blog about the need for marketers to find new, non-traditional mediums (which, you can read HERE or maybe even HERE), I recently saw an article in the Maryland Daily Record written by Kathleen Jarboe that discusses the need for retailers to think of alternate sales channels to get it done these days. I wanted to pass it along, because it really illustrates a retailer thinking out of the box to connect on an even deeper level with its clients. Here's the article:

You’d need determination to find a copy of “A Gentleman Gets Dressed Up” at the Borders book store in Columbia. There are no aisles dedicated to Grooming. And the book is not on the tables of best sellers and new releases that greet shoppers at the entrance.

Instead, Borders sells the tome back in the Health and Diet section.

But down the road at Jos. A. Bank Clothiers, the book is showcased with colorful silk ties next to the cash register — just where men thinking about dressing well are likely to see it.


Sometimes a bookstore isn’t the best place to sell a book. And publishers are increasingly taking note.

“You’re going to start finding books where you wouldn’t have expected to before,” said Damon Goude, a publicist with publisher Thomas Nelson Inc. in Nashville.


Retailer Jos. A. Bank has purchased more than 8,000 copies of “A Gentleman Gets Dressed Up,” according to publishing house Thomas Nelson, and Brooks Brothers has bought at least 15,000 copies of a leather-bound edition of the book.

In comparison, traditional bookstores nationwide have only sold 4,000 of the same title since it was published in 2003, according to Nielsen BookScan.

An assistant manager at Jos. A. Bank says the book and others from the Gentleman series sell well during the holidays and as gifts. One customer bought each groomsman in his wedding party a copy of “How to Be a Gentleman.”
“If we relied on [traditional book] stores to carry it, it wouldn’t be alive anymore,” said David Leach, a national account manager for special sales at Thomas Nelson.

Jos. A. Bank also sells a book on grilling, a collection of Sudoku puzzles, a tome of quotes from sports legend Yogi Berra and several books of advice for fathers.

Men’s clothing chains aren’t alone in selling books to their customers.
Starbucks began selling novels last year. At home design shop Calico Corners in Fulton, you can pick up a book on decorating tips.

The Vitamin Shoppe hosts a lending library in stores and sells books, too. The health supplement chain has bought at least 125,000 copies of “Prescription for Natural Cures” for its stores, according to the book’s publisher, John Wiley & Sons Inc.

And, of course, there are even more stores selling books these days, from craft stores to home improvement centers. Williams-Sonoma has been selling books for years. But now they also sell their own books, featuring kitchenware in the store.

The “Williams-Sonoma Food Made Fast, Slow Cooker” title retails for $17.95. They also sell the All-Clad Deluxe Slow Cooker for $249.95.

“There truly is a customer for everything. You just have to make the match,” said Kim Hendrickson, associate director of special sales at Wiley.

Most major publishers have long had personnel dedicated to placing books outside of the traditional market of colleges, libraries, bookstores and online booksellers such as Amazon.com.

Beyond retail deals, the departments focus on selling books at traveling book fairs, gift stores, trade associations and even online via e-books.

Not all sales to retailers involve thousands of copies of books like the ones at The Vitamin Shoppe and Jos. A. Bank. Still, the potential for growth has caught the eye of upper management, especially as book sales have lagged.


Consumers bought 1 percent fewer books at bookstores in January 2007 than the previous January, according to the American Booksellers Association. January marked the seventh consecutive month that bookstore sales had lagged sales from the previous year.

“The bookstore market is flat,” Leach said. “We have to find another way to get the books out.”

The sales are still small compared to traditional bookstores. Leach of Thomas Nelson said traditional booksellers bring in three times more revenue than non-traditional shops.

But non-traditional booksellers have given life to titles that would once be collecting dust. Most of the special sales at publishing houses involve books that are more than a year old that might not be getting big marketing pushes anymore. While bookstores snap up new titles, non-traditional booksellers often want a title they can already see, touch and feel that might ring in good sales for the season.

Leach said Thomas Nelson would likely have stopped selling the Gentleman books by now if Brooks Brothers hadn’t kept buying them and requesting the publisher to put out new titles in the series.

At publishing house John Wiley & Sons, one of the best selling special sales books now is a title on making margaritas.

“[Non-traditional booksellers] are marketing to their demographic, who might not necessarily know about the book but are looking for the book,” said Francesca Minerva, director of special sales at New York-based publisher Rodale Inc.

Thursday, April 26, 2007

Shoppin' For Mom's Day

Good info from the Center for Media Research:

According to the National Retail Federation's 2007 Mother's Day Consumer Actions and Intentions survey, consumers plan to spend $15.73 billion This Mother's Day, spending an average of $139.14 on the holiday compared to last year's $122.16.







The study found 84.5% of consumers plan to celebrate this year by spending:

  • $1.6 billion on clothes and accessories (37.0%)
  • $2.1 billion on jewelry (32.8%)
  • $2.3 billion on flowers (72.4%)
  • $3.1 billion on a special dinner or brunch at their favorite restaurant (61.0%)
  • $1.3 billion on a trip to the spa or beauty salon (19.7%)

NRF President and CEO, Tracy Mullin, said "For mom, it's the thought that counts..."

Other popular gifts for the holiday are:

  • Greeting cards (86.8%)
  • Gift certificates (39.3%)
  • Books or CDs (29.3%)
  • Housewares or gardening tools (18.5%)
  • Consumer electronics or computer related accessories (11.3%)

Consumers intentions to purchase at various locations include:

  • 37.5% will purchase at a specialty store, such as a florist, jeweler or electronics store
  • 24.0% of consumers will shop at a discount store
  • 29.0% will head to a department store
  • 2.9% will buy from a catalog
  • 20.0% of consumers will shop for mom online

Phil Rist, Vice President of Strategy at BIGresearch, who conducted the study, said "... consumers continue to spend on special, one-of-a-kind gifts for (mom)."

According to the findings, men plan to spend the most this Mother's Day, with the average male shopper planning to spend $172.91, compared to women's estimated $107.18.

  • Shoppers ages 25-34 will spend $151.42
  • 35-44 year olds will spend $147.30
  • 55-64 year olds: $138.14
  • 18-24 year olds: $137.73
For more information, please visit the National Retail Federation here.

Thursday, April 19, 2007

Health Providers Doing Things Differently

Hi there -

As an agency that does a lot of healthcare marketing, we like to stay up on the trends in the industry. I've been hearing a lot about changes in the healthcare field, brought on by frustrations with the current system, but until last night, I hadn't been affected, nor had I seen real evidence of change. Then I received this letter from my primary care physician:


Dear Patients:

As many of you already know, I have been considering changing the way I practice medicine. Over the past decade, pressure from insurance companies and HMO's has grown intensely, resulting in less time for direct patient care, added referral-preauthorization requirements, and more restrictive medication formularies. The Doctor-Patient relationship has been trivialized. Health care delivery is laden with unnecessary delays and obstacles. We are all frustrated.

I have decided to break free of this system and cease participation in the present insurance environment. I invite you to join me in a new practic limited to a maximum of 600 patients, as opposed to the current 3,000+. This will enable me to provide personalized and comprehensive outpatient preventive healthcare. Appointments will be a half hour long, with same or next day access. The rush and interference of a larger practice will be eliminated, and it its place will be ample time to answer all your questions and meet all your needs. I will be on call twenty-four hours a day. Appropriate coverage would be arranged if I am on vacation or ill. My staff and I will deliver timely, caring, and comprehensive care. The Doctor-Patient relationship will return to what it used to be, a collaborative effort where the doctor is an advocate and a partner in achieving the greater good as opposed to a bureaucratic intermediary forced to make decisions based on formularies, regulations, and cost containment.

To achieve this goal of substantially fewer patients and more personalized service, there will be an annual professional fee of $1,300 paid annually, $1,400 paid semiannually, or $1,500 paid quarterly. Dependents and children younger than twenty-five years old will be half the adult fee. The annual will cover one comprehensive physical examination and associated routine lab work, outpatient sick visits for a year, routine immunizations (i.e. tetanus, flu and pneumonia), EKG's, and pulmonary function testing. Patients with all types of insurance can join, but this arrangement will not be a substitute for health insurance. I will not be able to write referrals for HMO's directly, but would facilitate obtaining them from a designated primary care provider.

If you are interested in investigating this exciting opportunity, please contact me as soon as possible by completing and returning the enclosed, nonbinding survey............



I was floored when I read this. Part of me was excited and intrigued that a doctor would care so much for patient care that he would be willing to take a chance like this. Another part of me was ticked that I probably wouldn't be able to pay that right now to stay with him. I think this kind of service should be marketed to the affluent - those that expect the best and can also pay for it. I'm sure he'll be able to keep a good amount of his patients.

As more health professionals go in this direction, I predict healthcare marketing and advertising will change. We're excited about the change, and hope many new client relationships ensue as a result. I invite any that are exploring a similar change to call us to discuss.

As for my doctor - I am going to give him a call and encourage him to talk with us about marketing this concept. It gives his brand incredible leverage and a USP that most don't have. It will also require an entirely different marketing strategy.

Best,

Garret Ohm

Monday, April 09, 2007

Scion Launching Branded TV Show

Product placement is gaining even more momentum in the marketplace, it seems. I read an article today, written by Karl Greenberg of Media Post's Marketing Daily, about Scion, a division of Toyota Motor Company. It seems they are in talks with networks about launching a show branded by Scion that centers around hip-hop celebrities that travel to their old neighborhoods in Scions. Appropriately called "Stomping Grounds," the show is the brand's new appeal to the lucrative young urban market.

As you can see by this picture of a Scion, this car is perfect for this market:














I think it's going to be wildly successful.


By the way, if you're not receiving MediaPost's stuff, you should definitely go online and sign up: https://www.mediapost.com/?fa=r2c.check.

Garret

Thursday, April 05, 2007

Easter is About More Than Candy?

Ever since I can remember, Easter has been synonymous with candy. Baskets and baskets full. Based on this USA Today article that I recently read, it sounds like moms are wising up and realizing that chocolate bunnies and Marshmallow Peeps aren't all you can put in an Easter basket.

Here's the article:
http://www.usatoday.com/money/advertising/2007-04-05-easter-marketing-usat_N.htm?csp=34

I particularly like Hasbro's use of market research in the form of interviews with moms to realize that if promoted properly, board games could be a good alternative to candy. I really enjoyed their "Think outside the basket" campaign - I've seen it a few times on TV. Their research told them that Easter, the world's 3rd largest retail holiday, would be a great way to promote their products. While sitting around playing games isn't exactly a great workout, it is a step in the right direction to conquering childhood obesity....
...But that's another story entirely. I'll leave that to the health bloggers.












Later!

Garret