Reclaiming the Business…the Conclusion or Perhaps, the Beginning
Well, the presentation took place this past Tuesday and now it’s time to review the recommendations.
There are really two distinct issues in this discussion.
(1) How does this industry protect and grow its current business (with Wal-Mart, Target and the other superstores)? and
(2) Should it and if it should, how does it create a sustainable business outside of this clientele?
The solution set must take into consideration these constraints or challenges:
1) There is, and will likely be, a low frequency of purchasing houseware products multiple times
2) These items tend to be modestly priced so spending extensively on advertising is not feasible
3) Branding on the web is very difficult
4) The cost of selling low priced items through the web is prohibitive ehen you factor in associated labor costs
To address these issues and constraints, a framework was offered. In order to avoid being redundant, I will simply reference the prior two posts. Please review them to get the details.
The key takeaway is that, in this framework, doing any one of the suggested steps will help the business situation but doing all of them, I believe, will produce a very dramatic and meaningful result.
The second key point in having a framework is that it creates flexibility in thinking. There is “no one size fits all” solution but that does not mean that there is no solution at all. It must be tailored and constructed based on reasoned thinking and analysis.
And it requires one more element – COURAGE.
In recessionary times, we are prone to inaction. Our confidence is shaken and we see all the other companies around us taking very limited actions to grow their business. Each of us is no different and when faced with an environment where inaction is acceptable, we invariably find it easier to go along with the pack
The framework that was presented speaks to having the courage to move forward with a decision and action plan if one has confidence in the plan. That can only be achieved by taking all of the analytical steps outlined in detail in this blog.
So let’s go back to our issues that we raised above.
The overarching message is that when a company has ceded its client relationships to a third party (and that is what every company does when it uses distributors) and when that distributor takes advantage of the relationship, the only solution is to get the client relationship back. And in this circumstance, creativity is a requirement.
In working with the superstores, the companies must perform the necessary in-store and out-of-store research to understand what its customers need, value and appreciate and respond in the context of what it learns. It must use traditional low cost marketing tools such as public relations to create presence and branding. It must identify new promotional opportunities and collaborative marketing opportunities. It cannot and must not be held hostage by its distributors.
Because the way we communicate is changing, it is imperative that the new social media techniques are utilized to their fullest and a new additional way of connection be created. A web store won’t work for this industry for all of the reasons noted above but creating a central community for those who share the passion probably would. Determining the nature of that community would be the challenge.
The most important reason though for undertaking such an effort is simply this: Make no mistake about it. If these companies don’t undertake a new social media effort and associated community building soon, someone else will.
So there you have it.
A special thanks to all those who shared the fervor and enthusiasm in creating the solution set and, particularly to Carl, Suzy, Mitch of Raspberry Red, Yair, Steve Clark of Andover Communications and of course my wife, Annie, and son, Eli. Learning from you made this enlightening but more important than that, it made it fun. Special thanks to Karla Robertson of Shifting Gears for being a superb coach and guide.
And to Chuck Rosner of CORE (Chief Officers Reaching Excellence) and the International Housewares Association, we thank him for his love for the organization, industry and its leaders. A tip of the hat to you sir. Your leadership and commitment is inspiring and is reflective of the desire to learn that was so evident in all those that attended the session.
If anyone would like a copy of the PowerPoint or would like to discuss the session in more detail, please e-mail at david_blumenthal@msn.com or call me at 201-837-2445 and we’ll set up a time to chat.
Explore posts in the same categories: Leadership, Sales, Strategic Plans, StrategyTags: Branding, community, Framework, superstores, Target, Wal-Mart
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