Hoyt Publishing Co.
www.instoremarketer.org
VOL. 2, NO. 5
October 2004 Contents
Director's Note: Arriving Late at Target

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


P-O-P Show/Chicago Highlights: Wal-Mart's Bob Connolly and The Home Depot's John Costello

"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:


Research Insights: "Measuring & Enhancing Shelf Visibility" by Scott Young of Perception Research Services

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.


Desktop Marketing Conference: "Selling More Stuff at Wal-Mart" by Patrick Sbarra of New Creature

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.


Research: "Cross-Channel Shopping Triggers" by Meyers Research Center

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.


Welcome New Institute Members

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


NEW in the Library...

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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