Wednesday, April 10, 2013

JCP is not Apple

When JC Penney went looking for someone to take over the reins of the venerable but struggling retailer, Ron Johnson seemed like the perfect savior. After all, oversaw the creation of the wildly successful Apple Stores. How could he not succeed at JCP?

Let's start with the fact that JCP doesn't sell iMacs, iBooks, iPhones, iPads and iPods. They sell Levis, Nike, Liz Claiborne, Disney, Cuisinart and Keurig.

Apple Stores were built to be the best place to buy the hottest products in the world.

JCP sells the same products as Kohl's, Target, Boston Stores, Macy's and WalMart.

Apple Stores have "Geniuses" who can help customers select the right products and provide expertise on how to use them.

JCP employees know how to use the cash register. 

I have no idea why I'd choose JCP over any of the other options I have to buy my 501s.

Consequently after just 17 months, Johnson is out as CEO of JCP and the strategies that made Apple stores successful are being replaced with sales, specials and other traditional retail tactics. 

In hindsight it is obvious that what worked for Apple wasn't going to work for JC Penney, because your marketing strategy is only as good as the products you're selling.

Monday, April 8, 2013

Flying into turbulence

Let's see, Southwest grew to be America's largest domestic airline buy being interesting, quirky, fun and different.

Southwest grew because they operated differently, quickly and efficiently.

Southwest grew because their communications were memorable and focused on things that matter to a lot of people: low fares, no baggage fees, no red tape.

Now that they're big, of course, it's time to abandon those things that have made them successful and do this.



Why?

Southwest became America's biggest airline by dominating their niche. They had a strict focus and interesting personality. But that personality and focus also limits them. It makes it harder to attract high-margin business travelers for example

So they're attempting to broaden their message and appeal to more people through this effort. What they're really doing, however, is watering it down so it appeals to no one. A lot of great brands have made the same mistake and those who lead Southwest, unfortunately have ignored brand positioning history.

Miller Lite grew to the #2 brand in the category with its clear position and iconic advertising "Great Taste. Less Filling." But #2 wasn't good enough so they decided to reposition themselves from a great tasting light beer, to the best beer for everyone and changed their slogan to "It's it and that's that." Soon after the the long, slow inevitable slide began.

In marketing, business and life, it is better to be everything to someone than something for everyone. I fear that Southwest Airlines is about to learn this lesson the hard way.

Wednesday, April 3, 2013

Crafty macrobrews

As we draw nearer to peak beer drinking season (who am I kidding, it's always peak beer drinking season in Wisconsin), the nation's craft brewers are becoming increasingly upset about the faux crafts that have been introduced by the world's two largest brewing conglomerates, Anheuser-Busch/Inbev and SABMillerCoors.

As their mainstream American lagers continue to struggle to maintain market share and margin, A-B and MillerCoors are increasingly putting their energy behind brands like Blue Moon, Third Shift, Shock Top and others. This strategy has helped them increase their overall market share and capture a significant portion of the craft category.

As a result, small local brewers are crying foul and asking that these brewers be required to put their corporate name on the labels of all their products so that beer drinkers will know which crafts are made by craftspeople and which are made by corporations.

How about, no.

You don't get to change the law because the folks at A-B and MillerCoors are smart marketers. It has always been thus. Small, independent, innovative businesses create a new market and the big boys follow quickly to try to capitalize on it.

That's business. If you're not prepared to defend your brand, to continue to prove why you're different, better and special, then be prepared to lose it. 

Will it be easy? No. Can it be done? 

The six pack of Bell's Two Hearted Ale in my refrigerator says yes.