|  
             Prior to writing my book, Predatory Marketing, I studied 
              the critical issues that business leaders stressed they needed to 
              know. 
            That research on 1,000 business leaders revealed they have six 
              really big concerns. This is the second of that series. Their first 
              concern was, "How do I avoid making the wrong decision?" 
              Their second concern is, "Why don't more people buy my products/shop 
              my store?"  
            Do you have two days?  
            And that would not be enough time to fully answer this nagging 
              question that frustrates business executives. But, here's how our 
              research says you need to focus your decision-making to conquer 
              this age old problem. 
            Before there can be market share, shoppers must exist. Our research 
              shows the "time-short" American visits fewer stores today 
              than even just 3-4 years ago. Today, Americans visit .5 fewer stores 
              to buy home furnishings, electronics and major appliances. That 
              shopper who visited 2-3 stores in 1990 is today only going to 1.8 
              stores. As you can see, in 1990 three stores had a shot at potential 
              buyers, while today only two stores are that lucky. 
            During 1988-1989, our research showed this trend developing. 
            That is why we coined the phrase, "Be First, Be Right or Be 
              Dead!" As shoppers reduce their shopping time, the battle for 
              shopper share will become the key determinant for judging survival 
              in America. 
            And shopper share is not only restricted to retailers because manufacturers 
              will need to determine the right channel or distribution strategy, 
              as well as the ideal location within the store to survive. There 
              are only so many end-caps or bargain table locations so store placement 
              will become the next real battleground for manufacturers. 
            According to our findings, there are five core reasons why products 
              don't sell or stores do not get shopped. 
            In order of importance, the first and most important reason 
              is lack of awareness. 
            The consumer didn't know the product or the store existed. That's 
              hard to believe, but with 83% of consumers saying all furniture 
              stores look the same and 74% of consumers saying stores look the 
              same in other retail sectors, these numbers reflect how retail stores 
              have created a "sea of sameness". With this dulling of 
              the consumers' store awareness, stores must have a bold marketing 
              strategy to get on the consumer's radar screen. This bold marketing 
              strategy must take form in either an unique advertising position, 
              outstanding merchandising strategy and/or dynamic store exterior. 
              The absence of these three means a store is falling into that "sea 
              of sameness" and never gets noticed. 
            The second core reason why more don't buy a product or shop 
              a particular store is no compelling reason.  
            When one walks into a store to make a purchase, why should they 
              buy one product and not another? In today's fast-paced, competitive 
              environment, consumers need to know. They want a reason to buy or 
              shop that makes sense to them. Marketing executives express belief 
              in their marketing strategies because they helped to create them, 
              but consumers rate many of these strategies as "failures to 
              communicate". 
            The inability to communicate to the targeted customer results in 
              consumers never understanding why they need a particular product. 
              Without this understanding, there is no reason to buy or to shop 
              a particular store. 
            The third core reason is no identity to force a positive action. 
            Too many stores have no product identity, which means they never 
              reach a high enough level on the consumer's shopping list to be 
              the first or second store shopped. Sears has a product identity 
              in laundry, which brings them half of American shoppers who buy 
              a washer/dryer. 
            Those retail stores which are "merchandise blobs" stand 
              for nothing except another store selling a product category. 
            Manufacturers must also be aware of this problem, because if they 
              select the wrong product identity like Zenith which dominated color 
              console TVs at a time when the category was shrinking, your product 
              identity must change as the market dictates. 
            The fourth core reason is lack of a unique selling proposition 
              (service element) to build repeat purchases. 
            Unless you have the largest advertising cannon, you better offer 
              something unique in order to cut through the advertising clutter. 
              The more dynamic the selling proposition, the more effective your 
              advertising. 
            In the world of retailing, something unique today can be accepted 
              practice in one year and boring in two years. The appliance and 
              electronics superstore was unique, now it's expected. 
            Retailers who offered a quick delivery program in major appliances 
              or in mattress/box springs have to do more today to get the same 
              impact. Having an impressive TV wall was once exciting, now it's 
              called "a nice presentation". 
            Retailers are re-discovering that consumers who want "price" 
              want "lower prices" next time. The lack of something extra 
              has produced a mass of shoppers who demand lower prices making many 
              retail categories unprofitable. 
            Without a unique service, the customer is unable to build a sense 
              of loyalty to that retailer. In the 1950's when 66% of America was 
              loyal, advertising had to drive 1 in 3 shoppers. Today, advertising 
              is driving 7 in 8 shoppers since only 12% of Americans are loyal. 
              Advertising expenses have risen largely due to the fact that it 
              must pull a much bigger wagon. 
            Offering a unique selling proposition on a unique service costs 
              more, but it's money well spent. 
            The final reason is an awareness level exists, but nothing more. 
            This is the best example of why the independent "ma and pa" 
              retailer is vanishing in America. 
            Consumers who shop at a superstore or a new retail format drive 
              by many local retailers. When we ask them, why did they shop here 
              but drive by this locally-owned store, the answer is: "I have 
              heard of them, but I haven't been there for years," or "I 
              have heard of them, but I didn't realize they were still open". 
            These responses reveal that some awareness exists, and maybe prior 
              shopping experience, but these stores have been lost in the shuffle 
              and survive only as long as the owner is willing to devote his whole 
              life to the store. 
            Hopefully, when reading this analysis, you have noticed that many 
              of these five points are inter-related. Some could argue these five 
              points are actually versions of the same problem: A missed marketing 
              message to the desired customer. 
            The lessons to be learned are: What does it take to have a merchandising 
              offer or product area that is truly superior to your competitors 
              in the marketplace? And, what unique service will you offer that 
              gives the customer a reason to make you first on their shopping 
              list? 
            By not fulfilling these two vital functions of either a retail 
              store or a manufacturer, your ability to be profitable long-term 
              is doubtful. 
            This will be a year when more companies will face extinction because 
              they have this attitude: "Things will turn around, they always 
              have". 
            With a shrinking pie due to consumers trying to save more, it may 
              be a long time before "it turns around". 
             |