For Retailers, The Struggle Continues

Two years ago I wrote about the struggle of retailers. At that time the big story was Target’s retreat from Canada. The chain closed 133 stores, laid-off 17,600 employees and absorbed US$2-billion in losses. That figure did not include the $7 billion the company invested to enter the market.

Target dominated the headlines but at the same time in Canada Sony closed all 14 of its stores, Mexx 95, Smart Set 107, and Jacob 92. In North America, Staples shuttered 225 stores, Office Depot 500, Radio Shack 200, Abercrombie & Fitch 180, Aeropostale 250, JC Penny 39, Wet Seal 338 and Coach 70.

Are they missed? Not really and the numbers and types of stores shedding physical locations continues to grow. Credit consulting firm F&D Reports that in the U.S. 3,600 stores have closed since January. That is about 20 a day. The firm expects the number will reach 10,000 by the end of the year. Vulnerable brands include Neiman Marcus, Sears (no surprise), Claire’s, and J. Crew.

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Measured Marketing: Why Aren’t Marketing Departments Run on a P&L?

Jay Baer has it right. Baer is a marketing consultant, speaker, and the author of book, Youtility. He said, “Make your marketing so useful people would pay you for it.” It is a wonderful notion. The quote gets at excellence in marketing while holding the practice accountable.

It is strange that most marketing departments are structured so loosely. I am not talking about the organizational structure. There is far too much written and explored on that topic. I contend that the organization of a marketing department would become extremely clear, efficient and effective if it was subject to being its own profit and loss center.

Instead the vast majority of marketing departments get a budget. The team executes within that spend and produces mediocre results for the most part. The next year the budget gets a little bump to reflect inflation and higher costs. This cycle repeats until the CEO removes the head of marketing due to vague results.

I have run global marketing teams and advise companies on how best to set-up their marketing organizations. In chats with CEOs and CMOs I passionately suggest the P&L route. CEOs love it. CMOs not so much. That is too bad because it would make marketing so much better and would weed out the real good CMOs from the ones who bluster and obfuscate. This move would have positive impact on CMO turnover.

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Taglines…need to be all they can be

Read this piece below or download the nicely designed PDF (Taglines).

It is ironic that a short bit of writing used to concisely convey an idea is called different names. These communication devices go by slogan, catchphrase, motto or tagline. For the sake of this piece and my preference, I call them taglines. Slogans possess a cheap connotation, 8701catchphrases seem vacuous bits of pop culture, and a motto is actually a hard rule more than an idea or aspiration. You can also throw jingles amongst them as a type of slogan set to music. So tagline it is.

Taglines are battle cries and statements of benefit and intent. They exist to offer information in a succinct, appealing and creative way. Ideally they deliver a message that shapes opinion and changes behavior. Taglines, when combined with action, have spurned whole movements.

These tools have been around for centuries and were refined during political campaigns in the 1800’s. In the latter half of that century they began to be employed to create awareness for products and services. Ivory Soap’s 99 and 44/100ths percent pure was a pledge of quality to ivory_old_1954consumers. It floats was added in 1891 because competitive soaps did not float. Heinz’s “57 Varieties” came along, as well as, Nabisco’s clever Uneeda Biscuit that was both tagline and name all in one.

Memorable taglines have stated clear positions. There is American by Birth. Rebel by Choice. for Harley-Davidson, A Diamond is Forever for De Beers, and AVIS’ We Try Harder. Some engage by asking questions including Capital One’s What’s In Your Wallet? And UPS’ What Can Brown Do For You?

These lines tend to offer clear benefits like M&Ms Melts In Your Mouth, Not In Your Hand or the United States Postal Service We Deliver for You. Others include the name of the product or company to firmly plant them in our conscious or subconscious. Examples include Virginia Is For Lovers for Virginia Tourism and Like A Good Neighbor, State Farm Is There. Some appear www-VA4L-neg-verdefensive like Live in your world. Play in ours. for PlayStation.

Taglines have been historically a pithy short sentence or combination of words meant to live for several years if not decades. They have been locked up with a brand name and logo. That choice of words, “locked up”, is deliberate. This use of taglines is incredibly confining and tethered to antiquated marketing thinking that has lost relevance.

They should not always be carved in stone. While the idea of finding some all-encompassing nirvana statement that nails it and resonates for years is appealing, I believe the tagline can be doing so much more for a brand. In fact, I view them as mini campaigns that deserve far more freedom.

This epiphany came to me through a series of client rebranding engagements. A new brand or rebrand all demand fresh communications. When launching a rebrand I was repeatedly recommending a launch tagline that would live for a few months or upwards of a year. Then at the appropriate time it would be swapped for an attempt at a more timeless rendition. This meant avis-logoconcocting a handful or more for the client to evaluate. In every case this bundle of taglines had one or two that did not create a spark but the others were always enjoyed. So why cast them all away?

I advocate the use of different taglines at different times for different audiences. Branding is much more flexible and tailored these days. The heavy and thick guideline books that once dominated the practice no longer exist for a reason. A single tagline has diminishing value given the fluid and variable applications we use today. I often think that brand guidelines were less about consistency and more about command and control from the brand owner. They limited creativity in a monolithic manner.

There was also the fear of the cost of changing anything “locked up” in the guidelines. This I can understand. No business can change where a key brand element lives with frequency. Now in this time of digital, brands can afford and need to tailor their communications and that includes taglines.

Arguably HSBC has been doing this for years. Granted they go by The World’s Local Bank but all of their communications leverage the notion of tailored taglines used in combination. They employ, We see no problem in different points of view. Only potential. Then there is, The more you look at the world, the more you recognize people’s different values. and The more you look at the world, the more you recognize what really matters to people.

So though A Diamond is Forever a tagline does not have to be. Taglines need to ‘try harder’. Rather than use a tagline as a static statement or one battle cry, set loose a manageable army of them. Lead them and make them work together but act fast because soon every brand will be doing the same.

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This is not a Turf War: Consultancies as Agencies and Agencies as Consultancies

Consulting firms have always sized-up the marketing space as a potential service offering. They have flirted with it for decades. Most large-scale forays have ended up in retreat after just a few years. Meanwhile, ad agencies have long-looked to shore up their dusty, old revenue models and expand by purportedly delivering more strategic offers. This too, has been largely episodic and unsuccessful.

Stick around and I will tell you why neither have historically worked but why they may work now. First off let’s substantiate that this mash-up is taking place:

  • Eight of North America’s top 10 agencies are owned by consultancies. Accenture has acquired at least 40 of them. Deloitte, Accenture, KPMG, PwC, and McKinsey now have agency arms.
  • Deloitte is out to create “the world’s first creative digital consultancy.” Meanwhile, IBM’s digital agency unit, iX, has over 10,000 employees and 1,000 designers in 25 offices worldwide.
  • Del Monte Foods selected Epsilon as its U.S. creative agency of record reflecting a fresh focus on data-driven marketing and a move away from traditional advertising agencies.
  • PwC made waves in 2016 when they appointed their first Chief Creative Officer. It should be noted that PwC also named a Chief Purpose Officer, which seems very much like an agency-thing-to-do.
  • Omnicom created Hearts & Science, an integrated digital agency leveraging technology to scale customer relationships. It has attracted Proctor & Gamble and AT&T as clients.
  • Razorfish, a division of Publicis Groupe, partnered with Adobe to build its own digital marketing platform.
  • Starcom MediaVest Group launched marketing consulting brand Zero Dot and sibling Zenith soft-launched a media-focused consultancy called Apex.
  • R/GA and GroupM now offer broad-based consulting services for the purposes of higher margins while securing traditional ad business. This is the strategy of O&M’s strategy consultancy, Ogilvy Red. Carla Hendra, global chairman of Ogilvy Red, is quoted as saying, “If we sell $1 of consulting work, down the road it can lead to $3 to $4 dollars of communications work.”

Clearly, traditional lines are crossing and blurring but why?

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