Why wait until Black Friday?

Fighting for early consumer holiday spending in a poor economy.

Traditionally, Black Friday marked the start of the holiday shopping season... but that's now in the past. It's early November and the promotions to attract 2011 holiday spending dollars have already begun.  A variety of business types are already doing it -- Home Depot, Glade, ebay, Kmart -- and more will start soon.

Via television commercials, websites, print ads, social media, and discounts, businesses are already vying for this year's holiday consumer spending that is projected to be lower due to economic conditions.  Businesses worry that if they wait too long to attract shoppers, consumers will spend their limited holiday dollars elsewhere.

 

Opening a new range of apps

Square mobile payment app blends software and hardware

The Square Mobile Payment System is early on the curve of a new wave of applications for phones (iPhone and Android) and other mobile technologies like tablet PCs (iPad, etc.).  These emerging apps go beyond current ones as they integrate hardware into the systems.

Plugging Square's hardware into a device's audio jack allows the user to use the app to pay by credit or debit cards, gift cards and prepaid cards.  These payments can go to businesses or individuals who also have Square.

Crystal ball

A couple things will be interesting to watch for:

• When will consumers adopt these types of apps?
• How quickly will businesses adapt to the such new apps?
• When will other types of apps that integrate hardware be offered?

The shopping experience

Dressing rooms, merchandising, the senses, and more...

This morning, the Today Show showed an interesting segment on retail shopping. The segment shows several retailing strategies and tactics that facilitate a pleasurable experience.

The portion of the segment below features a visit to a mall by the reporter, Janice Lieberman, and Marshal Cohen -- the author of "Why Customers Do What They Do".

Retailers need to analyze if, and if so how, their stores provide customers with experiences that makes shopping pleasurable and interesting.

The last shopping days before Christmas (2009)

'Twas the last days before Christmas, when all through the stores

Not enough customers were coming thru the sliding front doors.

The shopping carts were arranged in a tidy neat row,

Awaiting frenzied shoppers to spend lots of dough.

The registers were staffed by an anticipating crew,
With hopes that paying shoppers were surely soon due.
And the manager with keys and the new hire named Don,
Had just checked the front sign to make sure it was on.

When out in the parking lot there arose such a stew,
Employees rushed to the windows to see the new view.
Away from the panes they returned to their places,
With not a grin but frowns on their faces.

For it was not future buyers making the fuss,
But just a trash truck and a big passing bus.
Now time was short to start making sales,
Discounts and coupons should cure all that ails.

But customers still did not buy in quantities sought,
Retailers scared of low revenues from products not bought.
Wishing but knowing that holiday earnings wouldn't be stout,
But in the back of their minds, Congress might bail them out.

Maybe this is a time to just try to scrape by,
And come back December 26th to give it another try.
For then unwrapped gift cards will be burning a hole,
In wallets of shoppers ready to give it another go.

To get what they want, to make post-Christmas hay,
Let's hope they spend until this New Year's Day.
Retailing is tough, this holiday season two thousand-eight,
Let's just survive and see next year's fate.

So from the advertisements giving it one more last try,
"Happy Christmas to all, and please from us buy."

.....

Not much has changed since last year --

re-posted from this blog (12-18-08)

Veterans Day promotions

Applebee's and Macy's approach national holiday differently.

Applebee's Veterans Day 2009 promotion

Applebee's Restaurants offered free entrees to all veterans and active military personnel on Veterans Day to show "sincere gratitude for your honorable service".

Macy's Veterans Day 2009 promotion

A traditional sale.

With the U.S. military at war in multiple theaters
++++Macy's promotion rings a bit shallow.
++++Applebee's promotion feels right.

It's (already) beginning to look a lot like Christmas

Retailers not waiting to start the holiday season... will it be discounts as usual?

Sitting in my home waiting for trick-or-treaters to start arriving in a few hours, it is interesting to consider the upcoming holiday retail season. Retailers of all types -- from big box discounters to small specialty stores, brick-and-mortars to clicks-only -- are struggling to figure out how to handle another slow holiday season. ............................................. ................................................
Typical move

Many have already started offering and promoting products for purchase for the holidays -- either as gifts or decorations -- in the hope to capture the expected limited consumer spending this season.

While this might have a bit of success for some, this strategy has to overcome a major hurdle taught to consumers by retailers themselves.

Retailers have taught consumers that if they wait, retailers will flinch first when holiday sales are slow and then the discounts will come. Consumers are not dumb. They've learned that they will be rewarded with lower prices if they postpone the start of their holiday shopping. ...................................................................... .........................

What retailers are trying

It seems that more retailers are trying to move away from extreme holiday discounting by limiting inventory -- hoping consumers will buy at closer-to-full price if they are concerned that the products they want are in short supply.

Price-conscious shoppers or retailers... who will win?

My money is on consumers. Several major retailers have already started holiday discounting including Sears, Borders, and Kohl's. About a week ago, Walmart announced a holiday season discount pricing format where sales would rotate for different products throughout the holiday shopping season.

(Baltimore Sun photo by Gene Sweeny Jr 10-30-09)

Retailers... let customers know about your services

It is a great service that I had never heard about. In fact, it is a bit difficult to get information about the service from the retailer's website. Bed Bath and Beyond allows you to shop and order online or at a store and then have the order waiting for pick up at a different store -- even if that location is across the country.

The service worked well for my family as we shipped a child off to college... no need to stuff a car full of items bought at home or pay for extra suitcases to carry more things on an airplane. Just order and have the products waiting at the local (to where ever the university is) Bed Bath and Beyond store.

The only problem was we found out about this valuable service by chance. We never heard or saw any ads about it. Even the retailer's website does not make it clear -- even on their "Shop for College" web page.

Using the service worked out great for us... I just wonder how many more families would have used it if they would have only known?

Profiting from local "super bowls"

Businesses need to maximize benefits from local happenings.

With the kick off of Super Bowl XLIII just a few hours away, the vast majority of game-related purchases of flat screen TVs, food and drink have been made.

But before sitting back and watching the game and commercials (or should that be commercials and the game?), a bit of marketing reflection is in order.

What's in it if your business is not a Pepsi, E-Trade or Budweiser?

How can a local business benefit from the Super Bowl if you don't sell chips, pizzas, drinks and television? It's pretty limited if it's only the real Super Bowl. Either you sell "game" items or you don't.

The wider lesson is what can be learned from the business of the Super Bowl.

What local events provide a "super bowl" for the customer base served by your business?

The area I reside in hosts:

• a street 3-on-3 basketball tournament that draws tens of thousands of players
• a 7 mile run with over 40,000 participants annually
• a wide range of events in the main city park - from concerts to fireworks, food-fests to theatre.
• events at the convention center
• sporting events of the local universities and high schools

These are just a few of the many events... most of which are smaller events targeting a tightly focused group of customers who share many traits -- a true target marketing opportunity.

Businesses should identify and benefit from events in their areas that offer mini-super bowls. Consider sponsorships, participation in as vendors, offering products for participants, special pricing, event ticket sales for a discount price when bought at your business, and so forth.

The opportunities for your business to benefit from a (local) super bowl are there. Consider taking them.

Every store can't be Walmart

Every business cannot offer the lowest prices... so what else can be done to increase the chances that customers will buy?

Two January 2009 shopping trips, two very different scenes.

Trip #1 to a local mall on a Saturday afternoon. Few shoppers. Even fewer buyers -- it was startling how few people were carrying shopping bags with purchases.

Trip #2 to a local Walmart on a Saturday afternoon. Hard to find an empty parking spot (picture just below). The store was packed with shoppers. 35 of 38 cash registers were open and all had lines.














Fact: In the current economic climate, shoppers are attracted to low prices.

Fact: Not all stores can compete price-wise with the Walmarts of the world.

Question:
Beyond low prices, what are businesses doing to increase customer purchases?

Note: While not new tactics, the following are examples of methods some firms are employing in attempt to keep customers buying.

1. Bundle current products together for a "deal". Recently, Jack In The Box announced the new "Jumbo Deal" (picture below) that combined a sandwich, tacos and fries for $2.99. Even if the price covers only costs, the fast food restaurant can profit from the likely sale of a highly profitable soft drink.



2. Reduce purchase risk by offering attractive warranties and guarantees. Already tightening their purse strings and wallets, even willing consumers are looking for methods to minimize risks of unwise spending on products. Businesses can increase consumer confidence in purchases by offering strong (as perceived by the buyers) product warranties and guarantees (money back if not satisfied, you will not find at a lower price, etc.).
   
   
3. Allow consumers to try the product before purchasing. More businesses are finding ways to allow customers to "test drive" their products. Starbucks is offering free trials of two new Tazo tea drinks (with a coupon from a USA Today advertising insert -- picture below). This allows customers to be more sure that they like the product before purchase thereby increasing their buying confidence to overcome risks of spending money that is in short supply.
   
   

The last shopping days before Christmas

'Twas the last days before Christmas, when all through the stores
Not enough customers were coming thru the sliding front doors.
The shopping carts were arranged in a tidy neat row,
Awaiting frenzied shoppers to spend lots of dough.

The registers were staffed by an anticipating crew,

With hopes that paying shoppers were surely soon due.

And the manager with keys and the new hire named Don,

Had just checked the front sign to make sure it was on.

When out in the parking lot there arose such a stew,

Employees rushed to the windows to see the new view.

Away from the panes they returned to their places,

With not a grin but frowns on their faces.

For it was not future buyers making the fuss,

But just a trash truck and a big passing bus.

Now time was short to start making sales,

Discounts and coupons should cure all that ails.

But customers still did not buy in quanities sought,

Retailers scared of low revenues from products not bought.

Wishing but knowing that holiday earnings wouldn't be stout,

But in the back of their minds, Congress might bail them out.

Maybe this is a time to just try to scrape by,

And come back December 26th to give it another try.

For then unwrapped gift cards will be burning a hole,

In wallets of shoppers ready to give it another go.

To get what they want, to make post-Christmas hay,

Let's hope they spend until this New Year's Day.

Retailing is tough, this holiday season two thousand-eight,

Let's just survive and see next year's fate.

So from the advertisements giving it one more last try,

"Happy Christmas to all, and please from us buy."