ARTICLE TEXT:
YOUR
SLIP IS SHOWING!!
Oops! We've slipped…
and it shows.
The global financial
turmoil and resultant downturn in the business environment
and retail sales have had countless consequences. Among them
is a regression in many retailing, promotion, advertising
and merchandising practises. Sadly for some, the standards
have slipped to the very basic.
Emotions, a sense of
theatre, innovation and fun have been removed, or at best,
minimised. Their respective roles and importance have been
discounted. Standards have definitely slipped. They too have
now be discounted.
Many brands, including
those of retail outlets, products and services have been compromised
and damaged. It will be difficult to reconstitute full recommended
retail prices in future, without considerable leakages in
demand.
During the peak Christmas
trading period of 2008, the $10.4 billion Australia Federal
Government stimulus package was complemented by increased,
price oriented advertising with offers of up to 70% off retail
prices. It seemed to work… in the short term. After
a slow start, national December retail sales recorded a 3.4%
increase. The tipping point appeared to be 8 December, the
date on which the first of the cheques and bank account credits
arrived from the Federal Government. Little consideration
has given to the bottom line.
Electrical appliance
retailers rushed to the media declaring their support and
endorsement of the political initiative. The same individuals
and businesses announced store closures, staff dismissals
and retrenchments during January.
One disturbing aspect
of the high pre and post Christmas retail sales was the fact
that a relatively large percentage of the transactions were
people who were not recipients of the Federal Government stimulus
package. The same people had planned such purchases
during the course of the 2009 calendar year, but had rescheduled
their buying because of the compelling appeal of the huge
discounts which were on offer.
Thus, the Christmas
period receipts reflected a rescheduling of many planned purchases
rather than the generation of new sales.
This begs the question
of what does the period April to August hold for the broader
Australian retail sector?
THE CAMERA DOESN'T LIE
A photographic survey
of retail practices in metropolitan Sydney, Melbourne and
Perth during February enabled these consultants to conclude
that the widespread poor merchandising displays were making
a greater contribution to spasmodic and declining consumer
store traffic and retail sales than the impact of the prevailing
financial turmoil. Overall, standards have not improved in
some three decades.
The conclusions need
not reflect the capabilities and skills of in-company and
manufacturer merchandisers. Rather, what are specifics
of the briefs and the key performance indicators which are
being applied by senior management teams?
The visual evidence
is compelling. That is not to suggest that the premises
were not clean, well lit and well stocked. They were. The
cleanliness was sterile. So too were many of the shopping
ambiences and displays.
MARKETING 101 LIVES
All of the fundamentals
of the marketing discipline persist. At all times emphasis
should be given to “advantages” and “benefits”. These project
emotion, inspire action and fulfil desires.
Features provide the
rationalisation and justification of the purchase decisions
which have been determined by consumers who have advanced
to that final phase of the buying process. In absolute and
relative terms they represent a small percentage of the market
potential.
Thus, much potential
is currently being forsaken because of common basic practises
which are being displayed in pursuit of the important but
superficial “false God”, cashflow.
APPEALING ALTERNATIVES
Advertising, regardless
of the media utilised (including television, radio, print,
poster, email, direct mail, coupons and loyalty programmes)
can and should be enhanced by three key words which research
has established resonate with consumers, stimulate interest,
generate additional store traffic and are the catalysts for
greater sales and profits.
Sadly, analysis of
the current and recent advertising campaigns of major electrical
appliance retailers reveal many do not include those key triggers.
THE RIGHT SETTING
A positive and appealing
store ambience and a good shopping experience have become
established imperatives for sustainable, successful retailers.
Integral to both is
the astute deployment of the six dimensions of creative and
effective merchandising.
A seeming current overemphasis
on the aspect of “visual” limits potential and actual sales.
Consumers consider static displays boring. The employment
and deployment of other sensory factors in displays can and
will stimulate interest, sales and satisfaction.
DARE TO BE DIFFERENT
All businesses regardless
of sector and discipline, have the potential for and possibly
the need to be different.
A long record of success
suggests that electrical appliance retail professionals, like
many others, have the skills, experience and expertise to
change and to benefit from a new approach to communicating
with, educating, inspiring and influencing existing, future
and past clients.
In seeking the “right”
answer, it is important to ask the right question. A tight
focus on cashflow and discounting may not be the answer, nor
the appropriate leading question.
