I always find myself wondering why retail brands and marketers cannot break out of the box and be innovative. Save for Target, almost all retail brands just do not understand the power of seducing and keeping people engaged in their offering. However, I will add that Target while the best of retail marketers is a little like being the world's tallest midget. They stand out in a sea of sameness that exists in retail. Don't believe me? This Sunday, pick up your favorite Sunday newspaper and take a peek at the Sears Circular. Honestly, the stuff in this ad is the same from week to week. Or, how about Kohls'? I call Kohls' the king of 50% off and brands by the ton. There is absolutely no differentiation in their marketing, messaging and brand. For Sears, their brand is their brands - Kenmore, Diehard, Craftsman and maybe someday Lands End. Here is why I think that retail marketers are so afraid or unwilling to break out of the box:
1. Merchants Rule, Not Marketers - Like in software or high tech companies where the engineers believe that if they build the best mousetrap, people will buy it - in retail, the merchants are the rulers of the land. They believe if they just "buy right" that people will keep coming back. Sorry, with the millions of choices both on and off line people have, having merchandise that is incrementally different than the guy next door isnt going to cut it.
2. The Same Factories in China - I would bet that when the merchants from the sea of sameness go into China on a buying mission, they share the same hotels and bump into each other in the conference rooms of the major manufacturers. Outsourcing has forced the sea of sameness, keep costs down and that limits innovation.
3. No Collaboration - In major retailers the key decision makers work in silos with very little collaboration. Merchandising, Marketing, Store Operations, Web, Retail etc. They all have their own agendas and they all have their own perspective on what needs to happen. There is no way you can drive a brand in a 360degree way with no collaboration. This is something that Best Buy does the best. Even though their campaign ideas are lame, the integration is seamless. I suspect this is because their horizontal collaboration is great vs. working vertically.
4. The Reliance on FSI's - Retailers can spend anywhere from 30% -100% of their marketing budgets on what is called "the heroin" of retail marketing. Retailers believe that people actually want their preprints every Sunday. While this might be true, it is true because retailers have trained them to expect it. And, more importantly haven't given them any other relevant method of habit.
Is it any wonder why specialty retailers and niche retailers are hitting home runs? They understand their customers better than anyone and as a result provide a store environment that they actually enjoy being in and more importantly buy merchandise that appeals to them. And, last buy not least understand how they consume media and market directly to them in a relevant, efficient way. Big box retailers should stop covering their ass and taking the safe route and take some risks. If the risks are grounded in solid insights and are calculated they will pay off.
And another thing, challenge your ad agencies to come up with some better ideas and campaigns. I suspect they want to create something for your brand that breaks through, is different and breaks away from the pack. Let them do it. Please.