Value On Sale

Value On Sale

I just had Lasik surgery done on both eyes. Good news? Perhaps, but the better news is I got the first one for 25% off and the second one for close to 65% off. More, Dr. Burnyak allowed me to finance it with no money down and no interest. My vision is still a tad fuzzy, but it was such a good deal, I could not resist.

Far fetched? Not really if you consume any media at all. In response to the economic pressures, retailers in almost every sector are dropping their pants and taking discounting to a new level. If you buy one tire at full price, you can get three free. If you buy one burger, you can get the second for a penny. If you need a suit, you can get two, with two ties, two shirts and two pocket squares for less than $200. Stroll the mall and it is like a clash of the % signs. 40% off, 60% off and even 70% off! How can that be? How can something really be 70% off? One of only four things happen:

  1. The retailer is in a spiral of death and doesn’t realize it
  2. They overly inflate original prices enough to make shoppers sick, which will lead to #1 above
  3. They are training consumers to never pay real prices again, which will again lead to #1 above
  4. They are pouring onto the anti-trust movement in society, which will soon enough lead to #1 above

How can so many retailers be so blinded by their own paranoia that they fail to see the better model right under their nose? If you look at the most successful retail brands, not one of them drop their pants. Instead, they build undeniable and unwavering value in their brands, in their store experiences and in their trust. Think about it:

Apple There are too many computers to chose from, yet Apple demands a premium without apology and people stand in line to get into the store to talk to a Genius.

WalmartWal-Mart doesn’t have to create fake discounts because we already trust they always have low prices.

Five Guys Try asking for two burgers for the price of one at Five Guys. All five guys will laugh at you.

MercedesMercedes will charge you $360 for a “Service A” oil change that you feel good about when sipping a latte from their Benz Bistro.

Papa John's Pizza If you want a pizza delivered, you will not get “Papa in the House” unless you value better ingredients and more than saving a buck on some new, “still cardboard-like” substance.

Abercrombie You need to access your credit line to buy the shirt off the naked dude’s back at Abercrombie just because we believe we will get interest from the opposite sex (or with whomever you’re into.)

No matter how much things change, they always stay the same in retail. Value has never been about price alone no matter how many fools try and prove it wrong. Consumers will always spend what is necessary when they find worth – be it physical, intellectual or emotional. There is nothing for consumers to do except buy with your eyes wide open. If retailers give you true value for less, that is not your problem. As brand marketers, our responsibility is much greater. We have to guide them to better business practices and, as much as we advise them to respect the consumer, it is as valuable to make sure they respect themselves.

As much as I could go on, I need to get to the Urologist by close of business, as he just email blasted me an opportunity I could not refuse.

Go Packers. Go Steelers. Go Daddy.

They say the big game is now the big show. More eyeballs watching the tube, more clicks on websites, more pizzas being ordered, more chips being dipped. To this Broadway loving ad guy, the Super Bowl has also become the Great White Way of advertising. Just like the game being played on the field, there are winners and losers off the field as well. Here is my take on some of the ads and some lessons they each provide:

Previous Super Bowl Winners:

Apple “1984”

This was the shot heard around the world. It was the breaking point when commercials hit prime time and became as important as the game itself. It was bold and powerful statement. While others in the ad business will speak of Ridley Scott, the great cinematography, the iconic representation of the Orwell book and such, I respect it for two reasons. The basic reason is that it translated into over a billion dollars of sales volume. More, it opened up a new segment of the industry, gave birth to the creative class and paved a way for Apple to be the most successful brand and retailer of our time – selling more sales per square foot than any retailer ever thought possible. What you may not know is that consumers hated the spot in pre-testing. After trying to sell off the space before the game, Apple trusted their instincts and history was made. Lesson? Trust your gut.

Google “Paris”

Last years’ spot was a perfect, emotionally crafted story about how relevant Google is in our daily lives. It was the spot that made people realize Google is not just a noun, but can also be used as a verb. I applaud them for not just talking about the features and benefits of the company, but rather depicted how important it is as consumers/shoppers in our society. Lesson? Become vital. Position yourself not just as something nice to have, but rather a need to have and the value will always take care of itself.

Previous Super Bowl losers:

Denny’s “Free Breakfast”

Some say the spot was funny. Maybe it was, but who cares? Most say that it drove an unprecedented amount of people into Denny’s. Maybe so, but who cares if the company could not operationalize the brand? What happened was that the actual restaurants were not able to handle the traffic and ran out of product. The good deed went punished, as the very same people who they motivated to go to Denny’s are the same people (because of a negative experience) that will never come back. So, it turned into a huge investment with little chance of return visitation. Lesson? ROI must be your friend, as Denny’s has already learned- they pulled out this year.

Lions, Tigers, Frogs, Lizards, Hamsters, oh my!

Most every single take on cute animals have historically served little purpose beyond driving awareness. I have news for you; you can pick up the business section of the paper and see companies with high awareness going out of business. The reality is that – because of that awareness – everybody knows, but nobody really cares. Lesson? Cash never lies.

All this attention calls for greater responsibility. The downside of the bright lights and big stage is that many abuse the moment with irresponsible acts. The ad business often likes to forget that we are in business to help clients sell things. The more they sell, the more they make and in turn, the more agencies get to grow. Reckless spending is one of the main reasons so many don’t stay around too long and the trust rating of our industry remains so low. Yet, on any blank sheet of paper, your ad could be the ad other ads smell like. Make the most of it.

Enjoy the show.

Don’t Yuck My Yum.

0111-01

The clock struck 1/1/11.

What more evidence do we need that the way we live our lives gets to start over? We face fresh slates and new windows. In an instant, all of last year’s excuses related to the economy, lack of time, family pressure and “I’ll get to it later” are no longer valid. We have a somewhat blind sense of optimism and we begin living anew. All that said, unless you made the hard decisions to drive change for your life, nothing will really change. The pressure will soon mount, the weight will soon be gained, the time will soon evaporate, the money will soon be spent and the excuses will soon appear.

One of the most pressing issues is living the life one truly wants to live. To be someone who gets more from life through giving and to be the busy person who somehow finds the time to check more things off the wish list. We all seem to realize this, but lose the will to make a difference down the road. What holds us back from giving, doing, caring and being all we can be? Why does it take a resolution to get us going? With such procrastination, it’s no wonder our dreams take so long to become reality.

It doesn’t have to be this way. We should expect more. Why not start today? I am going to – and choose to use this forum to ask for accountability partners to help me along the way.

I am going to lose weight. Not the lose for half the year and gain back the other half. The lasting kind. I’m tired of stretchy pants and want to live as long as I can with the people I love.

I am going to be more present. I want to fully appreciate the blessings we have and always have the perspective to realize they are blessings.

I am going to live “off-line” more. Digital connectivity drives personal disconnection too often. I will be more aware of that (though still respond when Jordan calls!)

I am going to eliminate “should haves”. I intend to live even more as the role model I wish my kids to see me as, which is earned and not just gifted.

I am going to help the world move forward. There may be some big steps and some small steps, but no wasted steps.

I am going to not let anyone “yuck my yum.” I will have the will and attitude to make sure 2011 is the most prosperous year yet – in all senses of the word.

Happy New Year to all. I wish for you a fresh start on all you wish to be.

Trust Me. Trust Me Not.

flower

In this day and age, nobody knows whom to trust. This is a sad state of affairs. Sadder still, they have reason.

Everything in life seems to have a catch. We pay a reduced price for our plane ticket, but an increased price for our bags? We sign up for free checking, but then get an invoice for the checks. We say goodbye to Blockbuster late fees only to say hello to restocking fees. We sign up for unlimited text plans only to get texts to say we are over our limits. The reality is that we live in a nickel and dime society filled with gimmicks and gotchas and lost leaders.

Society is hard wired for the negative narrative. For every voice, there is a flow of opposing voices that are 99x as strong. We love a good train wreck, celebrity breakdown or rehab admission. We say we are searching for purpose, but our minds are entranced with the likes of Ponzi schemes, financial bailouts and the like. We look at people like Bernie Madoff, Osama Bin Laden and even George W. through a paparazzi’s lens as if they were the newest movie villains that get far more press than the superheroes that are supposed to protect us (admit it – Madoff does look a bit like a modern day Penguin!)

It all makes sense actually. We’ve been burned. We’ve seen behind the curtain. We are constantly reminded of the problems that diminish our need for hope. Just look how fast the mighty Obama train came off the tracks. He was hired by our hearts and emotions, but will soon get fired by our brutal swords and the reality that solving problems is harder than just saying “Yes We Can!” Once we see a cloud of darkness, the natural reaction is to gain validation of the dark instead of information to protect the light.

As a brand marketer, it is easy to say we should just steer our clients to relevant, meaningful and believable platforms. Meaning, we should make sure our brands tell the absolute truth and that, in doing so, people will have reason to trust them. In our complex society of self-publishing, the truth no longer sets us free because consumers can adopt and edit their own version of the truth. As we continue to guide our brands, we should be careful in making sure the promise is plausible (not overselling or being too extreme) and that facts should always be balanced with emotion to give people a reason to feel better.

Success lies not about what you say, but rather what they choose to hear. You can trust me on that.