In the mail were glossy well-produced catalogs from Frontgate, REI, ULINE and Chefwear. The last one clearly represents the challenge of catalogs – list rental. None of us at Thought-Tech are chef’s, work in restaurant business or own a stake in food service. So the folks at Chefwear may have spent good money on sending their catalog to an address that will not produce revenue. Or did they introduce their brand to someone who’d never heard of Chefwear before.

Right now it looks like both.

Chefwear, in Addison, Illinois, has a complete line pants, jackets, shirts, footwear, headwear – all for the stylish chef. Some of their product is downright good-looking.

But back to catalogs. In today’s omnichannel world there may be a place for catalogs. Consumer Reports estimates we are exposed to around 250 marketing messages daily. This number is bit more realistic that the 2,500 to 3,000 messages tossed around by those who believe walking down an aisle in a grocery store exposes us to hundreds of marketing messages. We don’t buy it.

We do believe taking a digital only approach to marketing is short-sighted. Catalogs can trigger a reminder to go to a website, read a blog or check the brand’s Facebook page.

The catalog side of sales and marketing took it hard beginning in 2007 and into 2008. Catalogs are making a comeback and the global mail order business is projected to reach $835 billion in 2015. That’s some serious coin.

Marketing to an audience that’s overexposed to branding messages is a challenge. Ignoring a proven winner like catalogs is a mistake.

These, combined with your product work together to create your corporate persona. This is how consumers identify a brand, relate to it and transact to it.

Who hasn’t driven down a busy boulevard with eyes darting the strip malls searching for the green word Starbucks or the white circle that makes the Starbucks logo?

Considering the importance of a brand’s logo it’s surprising how many companies are tempted to tinker with their logo.

Brands like Netflix, Gap and Tropicana have had brand. logo and corporate persona disasters. More recently in JCPenney. They’ve redesigned their logo so many times in the past several years half of America no longer recognizes it. Yikes!

JCPenney is attempting to recover from the damaging strategies it took on during ex-CEO Ron Johnson’s tenure. Its logo is one of its main concerns, with branding surveys showing JCP logo awareness dropped as much as 28 percentage points from 2010 and 2012.

It costs precious time and money to brand (or re-brand) your business, so if you’re going to do it, you need to do it right. So how do you make sure your next branding experience is a hit? Here are our top four tips:

Get your thinking straight - In many ways the strategic planning behind a brand is more important the brand itself. Invest some time and effort into getting this important foundation straight and the actual development of your brand should be smooth sailing.

Hire a professional for at least some of the process - Even if your budget doesn’t stretch to hiring an outside team for the whole journey, consider bringing in some outside advice to help you stand back and see how your brand looks (and has the potential to look) from the outside.

See the big picture - No matter how tempting it may seem, don’t pay someone to design your logo and then just apply it to your collateral yourself. Branding is about so much more than just plastering a logo everywhere, and important consideration needs to be made around how the logo fits in with your other design elements, and how your brand works across different materials to ensure consistency and a professional finish.

Invest in brand guidelines -  These give  you a watertight guide of how your brand should be used, now and in the future. A good set of brand guidelines will make sure your branding investment is protected, no matter who is working with your brand.

Be mindful of your brand. Changing it is like disarming a bomb. One false move and KABLOOM!

]]> http://blog.thought-tech.com/2013/05/14/branding-disasters-are-brand-killers/feed/ 0 thoughttech gap_logos e-score brand - jcpenney logo trends http://blog.thought-tech.com/2013/05/10/say-thank-you-to-your-customers/ http://blog.thought-tech.com/2013/05/10/say-thank-you-to-your-customers/#comments Fri, 10 May 2013 12:57:45 +0000 Rick Rusch http://blog.thought-tech.com/?p=7464 ]]> Communication in today’s hyper-connected environment is at an all-time high.

Six billion SMS (short message service) messages are sent every day in the United States, according to Forrester Research, and over 2.2 trillion are sent a year. Globally, 8.6 trillion text messages are sent each year, according to Portio Research.

Marketers are tempted to use every screen available to promote, cajole, up sell, introduce, discount 100% of the time.

LinkedIn, the ‘professional’ social network took a different approach with a simple message, on our 10th anniversary we’d like to say Thank you. Every now and then it isn’t all bad to just thank the people who make your business a success – your customers.

‘Nuff said.

American’s love of cashmere has become tough on the planet.

First, a little background. Cashmere is one of the softest, warmest, and longest lasting materials on the market today. Cashmere fibers become softer as it is worn more. Cashmere is said to be eight times warmer than sheep’s wool, and about that many times softer.

Cashmere is also one of the most expensive fibers on the market today.

Cashmere originates from Kashmiri goats found in the Himalayas. Cashmere wool comes from the downy undercoat that grows on goats from midsummer to winter. The quality varies from goat to goat. The long hair on goats protects the cashmere down from the elements. It is removed each spring by shearing or gradual combing of the goat’s hair.

Goats produce about three to eight ounces of cashmere per year. The average single ply women’s sweater requires approximately ten ounces of wool, which is equivalent to about three or four goats. Yikes!

The quality of cashmere wool is measured by its length, texture, and the diameter of the fiber. The quality is affected by the climate, and nutrients that the goats consume. The climate and geography of Mongolia is especially suited for herding goats because they thrive in harsh dry mountainous climates. The highest quality of wool is found in these climates. Goats cannot grow the downy coats that produce cashmere in moderate climates.

A dramatic increase in cashmere demand has resulted in larger herd sizes on alpine grazeland that cannot withstand intensive grazing. Larger goat herds in sensitive terrain = extreme environmental stress.

Cashmere goats are tough on the fragile land. They:

• Consume more than 10 percent of their body weight daily in roughage
• Eat very close to the roots, destroying plants
• Damage topsoil and grass root systems with their sharp hoofs
• Yield per cashmere goat is also very low
• World production of coarse cashmere about 15,000 to 20,000 tons—as little as 6,500 tons of “pure cashmere” after scouring and de-hairing

The result has been desertification of the Inner Mongolian region, causing increasingly severe and frequent dust storms in China that travel around the world.

Desertification from overgrazing is the largest environmental threat to the cashmere industry in Mongolia. Almost 30% of Mongolia’s territory has the conditions necessary for desertification to occur. About 13% of desertification is due to nature and the other 87% of desertification in Mongolia is caused by humans. Desertification has affected 30% of pasture lands in Mongolia. Pasture lands account for a total of 80% of Mongolia’s land mass. The population of goats is a problem because goats destroy grasslands and soil. These environmental problems are caused to a large extent by the very thing that Mongolians make their living by doing. Global demand will only worsen the problem because of the economic pressure to produce more.

The solution? Buy polyester fleece. Some of which is made from recycled soda bottles. It’s soft, warm, easy-care and doesn’t turn China into a desert.

Global clothing brands involved in Bangladesh’s troubled garment industry responded in different ways to the building collapse that killed more than 600 people. Some quickly acknowledged their links to the tragedy and promised compensation. Others denied they authorized work at factories in the building even when their labels were found in the rubble.

There have been three deadly disasters in Bangladesh’s $20 billion garment industry in the past six months. A factory fire killed 112 workers in November and a January blaze killed seven.

Over the past decade, major players in the fashion industry have flocked to Bangladesh, where a minimum wage of about $38 a month has helped boost profits in a global business worth $1 trillion a year. Clothing and textiles now make up 80% of Bangladesh’s exports and employ several million people.

For brands doing business in Bangladesh, there are two paths to take.

First – the high road. Admit presence in the factory. Retailers and clothing brands can protect their reputations by visibly and genuinely working to overhaul safety in Bangladesh’s garment factories.

Only a few companies, including Britain’s Primark and Canada’s Loblaw Inc., which owns the Joe Fresh clothing line, have acknowledged production at Rana Plaza and promised compensation.

The alternative is to distance your brand from Bangladesh production altogether. Brands downplaying involvement in Bangladesh’s factory safety problems may be counting on the short memories of Western consumers, who tend to focus on price and may not even check where a piece of clothing has been made.

This is not without risk. In the months to come it’s likely there will be continued coverage of the overhaul of the garment industry in Bangladesh. As that unfolds brands will be exposed. They will then be forced to come clean. And the repercussion?

Well, it can take decades to build a brand reputation. Heck, when Steve Jobs returned to Apple in 1996, eleven years after being fired, the Apple brand (and company) was in shambles. Fast forward to today where Apple is the most revered brand on the planet.

Just as it can take only a few months to take down a brand as has happened at JCPenney.

U.S. consumers talk a big game. They say they prefer Made in the U.S.A., they want more ‘green’ production and they want safety for factory workers. But in the end they vote with their wallets. And they generally gravitate to cheaper prices. Today Bangladesh is a source of cheap product. There’s a pretty good chance those days are nearing an  end.

According to a survey conducted by Leger Marketing on behalf of Walmart Canada, Canadians would pay their mom an average annual salary of $161,287 per year. If that were possible it’s likely there’d be many more stay at home Mom’s and the world would be a better place.

Think about it for a minute. Most Mom’s wear so many hats they need an SUV to hold all those hats. Roles like driver, medic, chef, therapist, coach, tutor, housekeeper – and the list goes on.

Those Canadians are little wacky when it comes to identifying their ideal Mom character. Walmart’s survey also asked Canadians who they thought embodied the quintessential TV mom. The Cosby Show’s Clair Huxtable led the poll being named by one in five respondents (21%). Marge Simpson of The Simpsons came in second at 17%. When asked who their mom would be if she was a superhero, 43% said Wonder Woman, followed by the Bionic Woman at 23%.

Marge Simpson?

What about Marion Cunningham from Happy Days? Or Barbara Billingsley, “As June Cleaver” on Leave It To Beaver? Or Morticia Addams on the Addams Family? Or Carol Brady on the Brady Bunch?

Absurd? Of, course!

But everyone has their favorite Mom on TV and in real life.

This year let the real life Mom know how much she is truly appreciated.

According to National Retail Federation’s Mother’s Day spending survey conducted by BIGinsight, consumers will spend an average of $168.94 on mom, up 11% from last year’s $152.52. Total spending is expected to reach $20.7 billion.

Do your part. Break leather for Mom. You’ll be glad you did.

A national survey released in September of 2012 by Hampton Hotels uncovered that 33% of American claim they are a “completely different person” on the weekends than they are during the week.  The survey, which delves into consumers’ weekend mindset, shows that more positive, outgoing and friendly personality traits emerge for most Americans during the weekend.  Respondents reported that 53% tend to be more impulsive, more imaginative (46%), more agreeable (45%) and more creative (44%) on Saturdays and Sundays.  They are also likely to be less organized (34%), less neurotic (34%) and less competitive (23%) than their weekday personas.

This past weekend we must have been particularly a “completely different person” based upon the emails in our spam folder. Last weekend’s incoming contained some potential ‘SPAM HALL OF FAMER’S’.

The spam inbox was chock full of:

“Meet me tonight” – Me – Can’t. I go to bed by 9.

“Booty Call Alert !” – Me – Wait. What?

“Contact Western Union Now” – Me – But I haven’t been to Walmart in over a year!

“I miss you” – Me – Miss you too. Who are you?

“Scientist discovers strange secret to getting hot women” – Me – How come the smart guys always figure that stuff out?

“Your second chance in life just arrived” – Me – Thank heaven as I was heading over to the bridge to jump later.

“Cannot wait to receive your message” – Me – Well, you’re going to have to….

In the past 10 years, email spam has become a multimillion industry. Despite a significant drop in email spam in 2012 (dropping to an average of 72% compared with 75% in 2011), spam continues to be a serious problem for many companies and individual email users. Here’s why: over 3% of spam emails contain malicious attachments.

So, no matter how tempting it is to find out what exactly your second chance in life is…don’t open spam. Don’t do it.

Harping like a carney barker gets you no where. Especially if your grammar is pathetic.

Retailers are facing another challenging year.

Factors such as a weak economy, weather and intense competition make for difficult odds. Toss a general lack of creativity, mis-guided marketing and me-too product, all of which are self-inflicted, and things get dicier still. For good-measure heap on showrooming and, well, things look pretty dismal for most retail brands.

Even for retail’s high-performance brands such as Walmart, Target and Home Depot gains made in 2012 were modest and hard-won.

It’s easy to blame tepid retail performance on the economy or weather. But are those the real reasons?

We believe there are three macro trends that are holding those retail brands down.

The cost of commodities is up — Retailers have to be more efficient while still maintaining quality levels, and so they’re figuring out new ways to cut costs. This means looking to labor, shipping, inventory management and more to keep costs low.

Consumer spending is constrained — Income growth is slow and consumer confidence still hasn’t fully returned, so people aren’t flocking to stores to buy – much of anything.

Power is shifting to the shopper — Social media is forcing retailers to be more transparent and engaging, and it’s “irreversible.” A dialogue between the brand and the customer has been created, and it’s no longer a one-way street.

What’s the solution for retailers?

Get creative – Creativity is what got them into business in the first place. Somewhere along the line they’ve become complacent, risk-adverse and me-too.

Get social – Consumers see retail as omni-channel. They want a seamless approach to their experience through all available shopping channels, i.e. mobile internet devices, computers, bricks-and-mortar, television, catalog, etc. Retailers who aren’t on board with omni-channel retailing will wither – fast.

Get distinctive – Unless brands give consumers a reason to buy from them, well…they won’t. Why go to the mall when 100% of what’s sold there at premium price can be bought at flash sales, outlet stores or discounters like TJMaxx?

If you’re a retailer it’s time to come to grips with the fact business will never be the same as it was in 2003. Ten years and a generations-worth of technology change has made the old model just plain old.

Of particular concern was (and still is) the merchandising. Regardless of what anyone tells you – product is the epicenter of any brand’s success.

After product comes the story – known in business lingo as marketing. JCP’s marketing was so far off the mark, yet few called Johnson out on the fact. By May of 2012 we couldn’t take it anymore and right here, on “On The Horizon”, itemized JCP’s marketing misses.

The post “JCPenney Marketing Must Focus On Product” ended with the sentence, “This is not rocket-science…but JCPenney cannot continue its current marketing tact.” Hindsight is always 20/20 but the handwriting has been on the wall since before that post was published.

So we were intrigued when learning about Penney’s new spot, “It’s No Secret”.

The commercial starts off promisingly with the voice-over, “It’s no secret. Recently JCPenney changed. Some changes you liked, and some you didn’t. But what matters with mistakes is what we learn. We learned a very simple thing: to listen to you.”

The message begins to lose focus in the next sentence, “To hear what you need to make your life more beautiful.” Huh?

But then the whole things falls off the tracks…The spot continues to drivel with flowery language about how “we’re listening” and “we’d love to see you”.

That’s it? That’s your plan to win customers back? Listening, inviting customers to come to their empty stores?

In a retailers calendar business begins with back-to-school. Retailers like JCPenney have long relied on the succession of events and holidays that begin in August and end in January to drive revenue into profitability.

That said JCPenney has slightly more than 3 months to get its entire merchandising and marketing act together. It’s going to take more grit and straight-talk then the fluff of “It’s No Secret” to pull the brand out of the muck.

The Track Your Bud site is visually interesting. Using large-scale graphics the “tracking of your Bud’s origins becomes a platform to promote the brand’s quality steps, ingredients and brewmasters.

So what?

Does anyone at Anheuser-Busch InBev really believe that Bud swilling consumers really want to get to know the brewmaster of their beer? C’mon man! If your drinking Bud you want a cheap buzz – pure and simple.

As is often the case – when sales are down it’s easy to blame the weather. A rainy spring has left big beer sales flat. Wait! What? Whatever the cause, it has been a spring to forget for big beer brands, which after showing signs of life last year are slumping through a brutal 2013 so far.

According to an article in AdAge, the latest bad news came from Anheuser-Busch InBev, the guys who brew Budweiser, which yesterday reported a 4.1% drop in sales to U.S. retailers for the first quarter ending in March. Sales for MillerCoors brands, meanwhile, dropped 3.3% in the quarter, parent company SABMiller recently reported, while Heineken USA sales were down by low-single digits. The only big beer marketer reporting gains was Corona-seller Crown Imports, but the importer’s sales were only up slightly, (stats from Beer Marketer’s Insights).

Overall, beer sales by volume increased just 1% in 2012. Sales of traditional mass-produced beer in the U.S. have basically remained flat for several years, giving the impression that if consumers are drinking more beer, they’re probably turning to craft beverages. Drinkers even seem to be shying away from the usual beer options on chug-happy holidays like St. Patrick’s Day, when beer sales declined by 4% over the weekend at bars, compared to last year.

It’s unlikely American’s a drinking less. There’s a greater chance they’re drinking differently.

Craft brewers are growing. Craft brewer retail dollar value in 2012 was an estimated $10.2 billion, up from $8.7 billion in 2011.

Superior taste, more interesting packaging and intriguing names like Moose Drool, Prescription Pils and Pandora’s Bock make for engaged consumers. Even at a premium price.

Track Your Bud will not increase sales and is certainly no replacement for the 2006 Budweiser “Whassup?” campaign.