October 2004 Contents
| Director's Note: Arriving Late at Target |
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In his keynote address last month at The P-O-P Show/Chicago,
The Home Depot's John Costello suggested that the various
components of the "in-store experience" are blurring.
Once-distinct elements such as product, promotion,
merchandising displays, store design and customer service are
necessarily converging, he said, as retailers seek to provide
solutions for time-pressed customers.
His comments were on my mind last week as I walked out
of Target, a chain I've visited numerous times as a trade
reporter but had never really "shopped" before.
As an industry observer, the Target experience always had
been somewhat underwhelming for me. Have you ever
watched a highly acclaimed film after it wins the Academy
Award for Best Picture, and found yourself wondering what all
the fuss was about? To me, Target was the retail equivalent of
The English Patient.
Sure, the store's graphic design truly defines the term,
"simple elegance," which makes the chain nearly unrivaled in
its ability to embody market positioning ("cheap chic"). And,
yes, the clean, clutter-free merchandising scheme makes the
store far easier to shop than any other discounter. (During his
P-O-P Show keynote, Wal-Mart marketing chief Bob Connolly
said Target is "quantum leaps" ahead of his chain in this
regard.)
It's just that Target never appealed to me personally
-- until I decided to buy something.
Lured into the store by a feature in the chain's circular, I
found myself facing a typical shopping dilemma: the one
package left on the shelf was damaged, and there wasn't a
single employee in sight. But Target offers an atypical solution
to the problem: telephones in each department -- prominently
mounted to endcaps -- that promise the arrival of an employee
within 60 seconds. Even more atypically, my call prompted
action in the guaranteed time. And it took maybe another
minute for the employee who came to my assistance to
determine that the product was out of stock and send me off
with a rain check. (It should be here within two days, she said,
and it was.)
Next, I spent several minutes discussing the merits of
various digital cameras with a well-informed employee, only to
learn that the one "we" decided would be best was out of stock.
When I told her a rain check wouldn't do in this case, she
suggested I go upstairs to Circuit City. "I know they've got it
for the same price," she offered.
In 10 quick and surprisingly pleasant, pain-free minutes,
my mind was changed. Target lost a sale but sold the customer.
I now firmly believe that Target deserves all the praise it has
received, and that John Costello really knows what he's talking
about.
Peter Breen
Managing Director, Content
In-Store Marketing Institute
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| P-O-P Show/Chicago Highlights: Wal-Mart's Bob Connolly and The Home Depot's John Costello |
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"Wheel it in, open it up, and it's there." That's how Wal-Mart
marketing chief Bob Connolly describes displays best suited for
Wal-Mart's environment. The Home Depot, meanwhile, wants
signage that can help the chain sell not just products, but
home-improvement solutions. The Institute presents highlights
from two keynote addresses that drew standing-room-only
crowds at last month's P-O-P Show/Chicago:
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| Research Insights: "Measuring & Enhancing Shelf Visibility" by Scott Young of Perception Research Services |
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P-O-P materials increase a product's visibility in three ways:
pre-empting competition at the shelf by generating
consideration from endcaps and stand-alone displays; serving
as a "signpost" that leads shoppers to begin shopping at that
particular brand; and breaking up the monotony of a category
display to create contrast and visual involvement. Perception
Research Services president Scott Young examines the best
ways to measure and improve a product's impact in the store.
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| Desktop Marketing Conference: "Selling More Stuff at Wal-Mart" by Patrick Sbarra of New Creature |
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Wal-Mart's "spare all expense" business approach
carries through to display design, where the pressure to reduce
costs may prompt probing questions from buyers about the
wisdom of using expensive materials, according to Patrick
Sbarra, principal partner of New Creature Inc. In an
audio-enhanced presentation from the The P-O-P
Show/Chicago, Sbarra urges product marketers to keep display
programs simple -- or be fully prepared to explain why a more
elaborate design is vital to the program.
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| Research: "Cross-Channel Shopping Triggers" by Meyers Research Center |
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Dollar stores are great at offering everyday bargains, but stink
at customer service. C-stores have quick checkouts, but lousy
prices. Using results from a recent survey of 400-plus
consumers, Meyers Research Center examines the factors
motivating cross-channel shopping behavior and the reasons
why many consumers say they "can't live without" Wal-Mart,
Costco and Target.
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| Welcome New Institute Members |
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The In-Store Marketing Institute is delighted to welcome 35
new and renewing members to the Institute family. Below is a
list of the companies that graciously allowed us to crow about
their decision. Welcome aboard.
- AMD Industries, Inc., www.amdpop.com
- Bar-S Foods, www.bar-s.com
- Belkin Corporation, www.belkin.com
- Callahan Creek, www.callahancreek.com
- Draft, www.draftnet.com
- GFX International, www.gfxi.com
- Georgia-Pacific, www.gp.com
- Gillette, www.gillette.com
- S.C. Johnson and Son Inc., www.sjc.com
- Master Tag, www.mastertag.com
- Maybelline Garnier, www.maybelline.com
- Midland Container, www.midlandcontainer.com
- Miramar Designs, www.miramardesigns.com
- Osram Sylvania, www.sylvania.com
- Protool Manufacturing, LLC, www.protoolmfg.com
- Saatchi & Saatchi X, www.saatchi.com
- Target, www.target.com
- Spring-Roll, www.spring-roll.com
- 20th Century Fox, www.fox.com
- Toys 'R' Us, www.toysrus.com
- Traver & Asociados, www.traverasociados.com
- Walgreen Co., www.walgreen.com
- Weber Display & Packaging,
www.weberdisplay-pkg.com
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NEW in the Library... |
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Retail
Handbook
New Retailer Profiles of Pep Boys Auto and The Sports
Authority, and an update of Food Lion parent Delhaize America.
Plus, a Virtual Store Tour of Rite Aid
Research
Library
This month's Featured Research spotlights the insights of Scott
Young and Perception Research Services through 10 articles on
effective in-store marketing strategies.
Case Studies
Kraft plugs the South Beach Diet, Big O Tires targets
non-grease monkeys, Allied Domecq rises above the
Catwoman flop, and Wolverine hosts a sweeps for no
reason.
Plus, the latest installment of Ricci at Retail
Image
Vault
More than 150 new images of displays and signs at The Sports
Authority, Pep Boys, Rite Aid, King Soopers, Target, Safeway,
7-Eleven and more.
Plus, a gallery of winning displays from
P-O-P Times' annual Design of the Times
awards competition.
Legal
Corner
Albertsons is named a co-defendant in the latest legal spat
between on-shelf media suppliers Insignia Systems and News
America Marketing. Read the complaint.
Lecture
Hall
Coming this month: Recent highlights from presentations at
the HBA Show and NACS Show.
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