I have written before how Kroger Marketplaces are taking on mass merchants. As more mass merchants stock groceries, groceries are staring to stock mass merchant products.

Here is a video taken recently at a Kroger Marketplace. You could see that next to the milk is furniture. This store carries a wide variety of products, most are very economical. I have myself bought a few pieces of home goods from Kroger stores. My area rug costs only $20. I think in the current economy, Kroger Marketplace posts a specific threat. To furnish an entire house / apartment at one time could post a significant financial strain on a family. This is exactly where Kroger could fit in. Along with buying the necessities (e.g. milk), you could easily pick up something for your new / existing home that you’ve been wanting to pick up. Because of the price point, Kroger can actually encourage impulse purchase for home goods. It’s a very different proposition than making a specific trip to a Target.

It doesn’t appear that Kroger is eager to expand this model. It’s being very selective in where to put in a Marketplace store. I look forward to see how this story would continue to evolve.

Related Post: Groceries fighting back!

Retailers can be our biggest enemy (as it’s evident with the current environment of private labels gaining shelf space over brand names). Or, they can be our biggest friend. At the end of the day, our products get sold off their shelves. Therefore, I have always had a healthy fascination toward the retail industry.

The other day, I visited a local Dillion’s, a Kroger store brand, and was amazed at the level of localization. This particular store was not in Texas, or San Diego. It was in Kansas, but in a Latino neighborhood. I thought I stepped into Mexico in the product assortment and the way the store was merchandised. It shows how sophisticated the art of retailing has become. In fact, today’s retailers have very comprehensive and important information about our consumers at each of their stores. This is why joint business planning has increased in importance. Manufacturers have long conducted extensive consumer researches to understand the consumers. Retailers now are empowered with real time information. Together, we can bring to our consumer exactly the product they want at exactly where they’re looking for it.

I am fortunate to live in a testing ground, somewhat, for retailers. It’s a great place to be for someone who’s fascinated about the industry. Therefore, in the next few weeks, I’d like to bring to you what I see on the transformation that had been unfolding in the last few years on groceries.

Related Posts: Groceries Fighting Back

Recently, I believe I was at Macy’s. The “ThISit” store not only has different selections, different displays, different color schemes… it even plays different music.

I wonder at the end of the day what this means. I believe it’s all in the shopping experience. If my specific brands are in a specifically designated area, it makes it easier for me to find. It’s like shopping at a boutique, but knowing that I have the resources of the big store backing this boutique. It may mean easier returns. It may mean lower prices. It may mean convenience. It is really the best of the two worlds!

Now, as a brand, if you could get into these specialized stores where the retailer is trying to build a loyal following… you’re improving your relationship with the retailer as a business partner helping to grow each other’s mutual business!

I was as surprised at how much I was surprised.

It just did not look right. Especially amongst all the other brands.

I would have enjoyed seeing the original research that supported this redesign. As I stood at the aisle, I tried to dissect why I could not connect with the packaging. I think it was because the packaging was too aspirational.

First, it moved too far away from the message. Tropicana had always heroed the orange. The move to hero the juice was a far move away from the brand’s image. Also, losing the straw from the orange actually lost a lot of the freshness message. It could have been any juice in that glass that was on the packaging.

Second, it was too pretty. Orange juice is simple. Orange juice is breakfast. Orange juice is family. Orange juice is drank from a simple juice glass, or straight from the box (don’t tell mom). Rarely would I drink it out of fancy juice stemware, if I was at home. And when I saw Trop50, all I could think of was mimosa. That has orange juice, yes, but I certainly don’t drink mimosa because it’s healthy. So while the packaging heroed the juice, it lost the juice at the same time. Ironic.

Third, it was hard to shop. Color-blocking is one of the simplest ways to help consumer identify their product from the line on shelf. The old packaging did this effectively, and the new packaging made it hard for consumers. This was especially true when you consider how the packaging actually sit on the shelf.

But, I am always conscious that sometimes my opinion is just my opinion. It was interesting to realize that it wasn’t, and Pepsi is bringing back the old packaging. In this NY times article, the flop was compared to the New Coke in how it allienated its own core consumers.

Of course, like many, I found the new orange shaped squeeze cap a very neat innovation. Too bad that one good did not overcome the many bad… (But in execution, I don’t think this cap went on every carton, which was unfortunate…) The good news is that they are keeping the cap.

Photo credit:
Shelf set ShopperCulture.com
Trop50 PRnewswire.com

It impresses me even when I knew it was coming.

For example, last month, MTA rolled out a test last month that put digital billboards on the side of buses around Manhattan. These are impressive because they are not only animated, they are targeted. As these buses drive around Manhattan, the ad changes depending on the location and time. So, if you’re on Wall Street just after the market closes, you may see an animated ad for an ice cool Bud. (They assume you may need one after another rough day…)

Today, Bloom, a chain of upscale grocery stores, announced that they will be launching smart shopping carts. So, as you go through the aisle, it can make product recommendations. This is probably about as targeted as advertising get.

As a marketer, I’m very excited about what is the next thing that will impress me.

Source:
http://www.nypost.com/seven/10212008/news/regionalnews/next_stop__digital_ads_134589.htm
http://www.businesswire.com/news/google/20081113006322/en

The economy is in trouble, no doubt about it. And everyone is trying to figure out how to get a share of consumers’ shrinking wallets.

I subscribe to several Smartbrief newsletters (if you don’t, you should.) And one of the top headline is “Kraft Tests Recipe for Selling in a Recession”. (Full article is available with subscription to Advertising Age. Once again, if you’re not currently subscribing, you should.)

The same day, I was emailed an article from New York Times ”Goodbye Seduction, Hello Coupons”.

And of course, last but not least, I’m working on a value proposition campaign at work myself. I’m sure many of you are, one way or another.

So, how do we sell ourselves out of this mess?

Stay true to your brand! If you got it, flaunt it!

If you’re an economy brand – flaunt it! You’re cheap, and there is no better time to be cheap.

If you’re a lux brand – flaunt it! The rich won’t cheapen themselves…

If you’re somewhere in between… well, flaunt what you got.

Consumers bought you for a reason. Take Target for example. Everyone is now worried about them, including Target themselves. However, it’s not like consumers used to shop there BECAUSE it was more expensive than Wal-Mart. They shopped at Target because they enjoyed the shopping experience better, because they enjoyed the selection better. And now is the most important time to remind them. Now is NOT the time for Target to become Wal-Mart. Otherwise, people would just go to Wal-Mart

So, remind consumers why should choose you. Flaunt what you got.

Look at it another way. If you consider yourself to be a fashionista and you can’t afford to shop at the designer stores at the moment, you get creative! You shop vintage. You won’t all of a sudden ditch your “brand” and start shopping at the Gap. So, be creative, but stay true to yourself!

But, this is not a political blog, so I’m not writing another political post. However, what I am going to write about again is how important it is to bring your product to your customers.

During yesterday’s voting, Vote and Vax did just that! This non-profit organization brought flu vaccination to people, and during the perfect time of the year. What a great idea!

Commercially, it appears that marketers are trying harder and harder to improve their relevance, as consumers are making harder and more choices with regards to their wallets.

P&G’s Tide Total Care and Downy Total Care recently had a very interesting campaign, in conjunction with other elements of an integrative marketing campaign that launched the products and touts “50 Washes. Still Beautiful”. They partnered with Ann Taylor. This was to capture the opportunity of women dry cleaning clothes that need not be dry cleaned. So, P&G used this campaign to highlight how the products are made to keep clothes at its best for a long time. While they did not exactly sell detergents at Ann Taylor, they did hand out coupons.

There is great synergy in this campaign. Ann Taylor can encourage more clothing purchases because now the clothes are cheaper to maintain. Tide and Downy were still in front of the consumers. They were not in detergent shopping mode at the mall, but that coupon would probably incent them to purchase Tide on their next grocery trip. But the truth is in the numbers, it’d be interesting to see redemption and sales numbers for these products.

Photo credit: New York Times

This got me thinking about brands, and brand experiences.

First, let’s start with my hotel. I stayed at Trump International Tower and Hotel. It’s part hotel, part vacation home. In any case, it was TRUMP. It was gold and it was glittery. It was luxury. Everything you expect from Trump. Amongst my group, many appreciated the little touches such as the pool, the lilac scent that fills the lobby, the whirlpool tub, the built-in TV in the bathroom, etc.

The Pool at Trump Tower, Las Vegas, originally uploaded by ranmano.

Vegas is truly a blend of brands. We had brunch at Thomas Keller’s Bouchon. In this case, the chef is definitely the defining brand. He is about French bistro fare. Having been to French bistros in France, I think Keller’s restaurant is a success. Talk about a brand experience. Bouchon is about the atmosphere as much as it is about food. It transports a patron to France, in the middle of the desert, and not in the cheesy, over-the-top way Vegas is famous for.

Vin Rouges @ Bouchon, originally uploaded by cabayarea.

Then, there was the shopping. It reminded me of how many interesting retail shops are out there, and how many innovative products are out there!

Last post I wrote about Vosges, and of course, given the opportunity, I had to stop in. Once again, it was a divine experience. I walked away with a drinking chocolate, and introduced another friend to the “amazingness” of Vosges. Apparently, they have a factory in Chicago. Next time I go to Chicago, I’d make sure to make the Vosges factory a stop and report back.

Of course, amongst the shops are some of the best brands. Apple, Louis Vuitton, Cartier, DKNY, Roberto Cavalli, Michael Kors, etc. Vegas has became a Mecca for brands, and everyone tries to showcase their best.

Another brand came to play at this Mecca: Playboy. I was not able to stop by the Playboy club at the Palm, but I did stop in the Playboy store. I thought that store was great. It was filled with fun and sexy goods, what Playboy is about. More important was that it was today. Playboy as a brand had suffered from age, but this store does not show age at all. It was sexy in that hip and cool way. In other words, it was the sexy girl that you want to get to know because she seems cool, not that sexy girl who’s a little past her prime and is trying too hard. It’s a great step for Playboy.

Lastly, there is Vegas as a brand. Not too long ago, this post would have been about the glitter of Las Vegas. Or, it would had been about the crazy décor of the various casino. But, today, it is about the restaurants and the shops. Vegas as a brand is going through a transition, and people is interacting with this brand differently. However, it is always difficult to transform a known and trusted brand. It’d be interesting to see if the new Vegas brand would truly take hold, or if it will forever remain as Sin City.

I started with attending a local food festival with my co-worker featuring locally owned restaurants, and then I hit a chocolate festival. And it is my theory that every food can be made better with cheese and chocolate… these two events reminded me of this theory

First, a most peculiar tasting experience happened at the local food festival… and I have tasted a lot of peculiar foods before… Chocolate covered bacon! It was weird. I do not recommend it.

But it did remind me of an execution of chocolate and bacon that I did enjoy… brought to us by Vosges.

Mo’s Bacon Bar, originally uploaded by Wananga.

“The Vosges Haut-Chocolat mission is to create a luxury chocolate experience rooted in a sensory journey of bringing about awareness to indigenous cultures through the exploration of spices, herbs, roots, flowers, fruits, nuts, chocolate and the obscure. We invite you to be aware and open to the many cultures, artists and theories of the world’s people, through the medium of chocolate. What better way to learn about a culture, person or object than through eating. If we can embrace the idea of trying something new such as the perplexing oddity of curry and chocolate, we just may come one step closer to bringing peace to the world through chocolate. One Love, One Chocolate.“  http://www.vosgeschocolate.com/

I had always thought that this was a great idea. I was first introduced to it by a fellow foodie, who is known in our circle as the cupcake queen… her blog explains all (link provided below).

I have personally visited two Vosges Haut Chocolat boutiques by now. And I truly enjoyed the shopping experience. The store is set up, so it lures you in, like any other good boutiques. Inside, you have the opportunity to sample the chocolate, which allows you to fall in love with flavors that you may not have thought you’d like. Also, the sales associates are most helpful in encourage you to try new flavors. (Think wine sales associates)

Vosges Haute Chocolat, originally uploaded by JamesTaft.

But, how does Vosges fare outside its wonderful boutiques?

I have recently seen it at a local European food boutique (and Vosges is not European, it’s Chicagoan.) But European is not the trick here… “boutique” is…

Once again, it’s useful to compare Vosges to wine… Vosges is not two-buck chuck. It is boutique and unique. It’s for someone who is seeking an experience with its chocolate… and it needs to be distributed in places where these people shop. It is understand what you are as a product, and making yourself available to people seeking such product. So far, Vosges have been a huge success in that regard!

Speaking of the free samples at Vosges and making your products available… there was many free chocolate samples to be had at the Chocolate festival… (no, there weren’t any Vosges… The festival was more family-centric than foodie-centric).

But, what was interesting was that there was one booth that did not have any products to sell. All it had was samples. They referred you to the store if you were interested in purchasing. Sadly, it was the best chocolate available at that fair, and you were not able to take home any of it. So, what do people do? Take home chocolate from the next booth that was selling their goods…

Now, just as I raved about the shopping experience at Vosges before, I’m sure that the shopping experience at this chocolate shop would be amazing. However, giving free samples only at a venue that encourages sales seems to be missing a great opportunity for an immediate sale and building a consumer base… While free samples build good will, it is forgettable in a setting such as a food festival. However, if you allow people to bring the product home, it gives them another opportunity to evaluate your product. If you have a good product, this is how you turn a sampler into a loyal customer.

I guess the point I’m trying to make is once again make your product available where your consumers are! If you have consumers at a festival – make it available for them to buy! Otherwise, don’t waste money setting up a booth there.  At the end of the day, no matter how good your product is, how great your shop is, it really doesn’t matter if there is not a sale at the end of the day…

Link – My friend’s blog: cupcakeproject.com

With the Olympics Games, Coke had executed an innovative and well-rounded campaign.  It started months before the Games started with the limited edition designs.  It started quite a buzz amongst my friends when they first appeared at a local café.  It was like did our little café started carrying something international and global?   

img323, originally uploaded by jeannie8p.

Then, during the actual Games, Coke executed a digital campaign that pushes what’s happening with the social networking space in the cyberworld (www.coca-cola.com/olympics/).  Across the world, Coke delivered the most loved ad into consumers’ home, via their television. 

But as much success as Coke has enjoyed internationally for this campaign… It’s almost just the icing on the cake for Coke.  For Coke, the primary target for this entire campaign is far closer to the Games… China and the 1.3 billion people who lives there.  In Beijing, Coke executed a marketing campaign with Bluetooth – well into uncharted territories on how we can deliver ads right into consumers’ hands, or phones.  Around the country, Coke brings its marketing genius wherever the Olympic torches go.  Setting up sampling booths and cheerleaders to make sure everyone who’s cheering on the torch knows that Coke is an Olympic sponsor.  But you’d expect Coke to deliver an amazing campaign in 2008, considering Coke unveiled a congratulatory ad in Beijing hours after it was awarded the right to host the Games back in 2001.

Photo credit: P.T. Black / AdAge.com

But the genius of this entire campaign is Coke was able to successfully leverage the Olympic halo.  While the host cities are always excited to host the Games, China went above and beyond to make the entire country excited.  And if you’re a good marketer looking for a good ROI on your Olympic sponsorship, you figure out how to ride the waves the Chinese government had already created.