Five Retail Leverage Predictions for 2010

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Five Retail Leverage Predictions for 2010:
1) The CMO Will Become the CCMO (Chief Customer Marketing Officer)
2) Creative Services Agencies Will Learn the Language of Retail
3) It Will Take a Village to Make Social Networking a Relevant Marketing Tool for Retail Leverage
4) “Co-operative Planning” Content Will dominate Newsstand Best-Sellers
5) The New “All-in-One” Brand Will Dominate the Retail Landscape:

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If Coke Needs Retail Leverage Then You Do Too

A KILLER APP FOR RETAIL LEVERAGE:

Coke’s Freestyle system hits on several of our 5 points in how to gain Retail Leverage.

#1 Have The Hot Product With No Substitutes
#3 Be A Top Revenue Vendor

TAKEAWAYS FOR ANY MARKETER:

No matter how big your brand is, you still need Retail Leverage
If they big guys need leverage, what does that say about the smaller challenger brands?
Figure out what you have to exploit that others don’t and leverage it.
If you don’t have something unique / different / better, then be prepared to move to the 6th, rarely spoken of, painful way to get Retail Leverage: Price.

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You Can Be Skeptical of MagicJack – But Not How They Got Retail Leverage

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SUMMARY:

MAGICJACK: RETAIL AND DIRECT IN PERFECT HARMONY:

So you might ask yourself wasn’t MagicJack giving up something by tagging retailers, effectively pointing potential customers to stores?

Well they can start dialing back their Direct Response spend, or at least keep it flat. Plus after 2-3 years of hitting the airwaves hard with the same product, there are diminishing margins of return on the number of people who will buy your product direct. Chances are they saw the ad – if they were going to buy it direct they would have done so already.

Retail represents an untapped market. There are people who won’t buy direct, or maybe never even saw it on TV. And there is a good chance the retail margin they’ll pay is probably close to the cost per order to sell direct (media costs + fulfillment.

LESSONS LEARNED:

1A) Infomercials are a great vehicle for telling a story and building demand at retail.

1B) Marketers with a holier than thou attitude towards Direct Response TV (DRTV) are ignoring a viable tactic.

2) Take risk away from the retail buyer. This makes it easier for them to list / support your product. MagicJack wouldn’t be at retail if they didn’t have a success story from their direct experience, as well as ongoing aircover in the form of their DRTV spots they continue to run that in effect are ads for their retail placements.

3) There is less risk in balancing a direct and retail strategy than ever before. The battle lines have been blurred by retail consolidation, and the growth of private label. I don’t think the retail buyer spends much time worrying about where you are selling your product, as long as it is selling well in their stores. We spend way too much time worrying about who we compete against, versus just selling.

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CES Is A Great Opportunity To Gain Retail Leverage

Let’s just say that I care enough about the total experience of CES that I would pay to go on my own if I didn’t get to for my job.

How Can You Gain Retail Leverage At CES?

I also believe CES provides a one of a kind opportunity to maintain industry connections, and more importantly, forge new ones.

So this is our invitation if you want to connect with us, talk shop, and discuss Retail Leverage strategies (or play craps – or both at the same time). When we have some downtime at the show, or after hours, the door is open. This invitation is to marketing and sales pros from CE brands, their agencies (PR, marketing, advertising, etc), and pretty much anybody looking to gain Retail Leverage. We hope to see you there!

The best way to contact us is via our twitter account (@retailleverage) or retailleverage@gmail.com .

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