Source: J.C. Penney

J.C. Penney’s new CEO, former Apple executive Ron Johnson, boldly proclaimed the retailer’s plan to become “America’s favorite store” in a major presentation to investors yesterday.

I’m not a student of J.C. Penney and who knows if this new strategy will lead to profitable growth.  Retail is TOUGH.  But, after reading the initial news report, and then watching Johnson’s presentation, a few points really stood out to me:

I like the company’s new mindset.

We’re fine with growing old.  We’re not fine with growing stale.

We’re rethinking and reimagining, and if we find that we’ve picked-up any bad habits over the decades, we’re going to leave them far behind.

Ron Johnson, CEO, J. C. Penney Company, Inc., 1/25/2012 Investor Presentation

I like the direct, fact-based, straightforward way Johnson presented the reasons for the change and the plan itself. 

He was comfortable and came across as credible.  See for yourself here.

I like the way he studied about Penney before he actually started the job.

Johnson explained how he signed-up to receive the company’s emails, and then detailed fourteen different types of promotional offers he received.  He later asked and was told there were 590 unique promotions offered in 2011, which resulted in an average of four customer visits.  This, he said, meant that 99% of the customers were ignoring Penney.  All told, Penney spent more than $1 billion on promotions last year, which Jonson described as a “discount to a brand.”  His conclusion:  “It just doesn’t work.”

So, effective February 1st, the company is relaunching, which will let consumers see the results of Penney’s plans to fix three operating areas: price, promotion and personality. I’m particularly intrigued to see how two components play out:

“Re-invent the jcpenney store experience, to include Main Street — the entire store merchandised in a series of 80 to 100 brand shops, rather than the confusing and seemingly endless racks common in department stores today.”

And this: “Town Square — an exciting new place that replaces the traditional retail center core of a department store with a series of services, which customers will enjoy before they buy, while they shop and afterwards.”

You can read about the details on the Penney website and in a good Wall Street Journal article.  And, here’s the new tv ad:

Headline

Be prepared, get your facts straight, size up the challenge, and take your best shot for however you define growth and success.  Sure, it’s a cliché, but don’t be afraid of change.  Just make sure it’s smart change.

Harvey Chimoff is a marketing and general management executive who defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff@gmail.com.

So, I’ll spare you the predictions and Top 10 lists that you can get everywhere else.  Instead, watch this short video and draw out what makes sense for you in your professional and personal life about perseverance, leadership, inspiration, and as my Little League baseball coach Mr. Jim Ake used to preach, The Three Ds:  dedication, desire and determination.

Best wishes for a healthy and terrific 2012.

Headline

Don’t wait until the end of each year to engage in a bit of personal assessment and introspection.

Harvey Chimoff is a marketing and general management executive who defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff@gmail.com.

Today’s example:  check out this terrific marketing idea for Brazil’s Olla Condoms.

Although marketing for profit, Olla, similar to the challenges faced by cause and health related communicators, probably needed to overcome difficulties reaching its target and generating action on a sensitive topic.  The idea of receiving a Facebook invite from an unexpected and presumably unwanted child is jarring.  It’s powerful.  And, that’s the whole idea.  Message to Mr. I Don’t Want to be a Father Today:  use an Olla condom, problem solved.

So much for the good news.  It seems that Olla may have violated Facebook policies by creating fake profiles.  If that’s true, then Olla’s marketing went too far, and I don’t condone marketing that violates established regulations or is illegal.  Still, the core idea is wonderful, and too bad they couldn’t have created an execution solution that was just as bold, yet regulation conforming.  Next time.

Headline For Marketers

You want relevance, differentiation and growth? Get great ideas.  Team up with the right people and resources who understand your objectives, and have the capability to help you create powerful ideas that bring your marketing and communications to life.

Harvey Chimoff is a marketing and general management executive who defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff@gmail.com.

Source: HubSpot -101 Awesome Marketing Quotes.

A British health organization has taken a super-sexy approach to help solve the deadly serious issue of testicular cancer.

Let’s explore why this is such a great marketing lesson and reminder for all of us.

UK-based Male Cancer Awareness Campaign (MCAC) believes that ”too many men die of prostate, bowel and testicular cancer because they do not know how to detect the symptoms in the early stages, when treatment would be more effective.”

The problem, they say, is that “this ignorance is made worse by the prevailing ‘culture of embarrassment’, that discourages men from discussing and resolving problems related to intimate parts of their body.”  One of their aims is that “no young men between the ages of 16-35 die of testicular cancer in the UK.”

So, MCAC and agency JWT London came up with a brilliant and bold marketing communications idea.  It’s a terrific example of really understanding your communication target, and what it takes to reach that target.  See for yourself (note – adult viewing).

If prompted for a YouTube log-in, click here to watch the video.

There may be those who disagree with MCAC’s approach because they think it’s too sexual and/or because they think it exploits women.  I don’t.  As of today, the video has been viewed 1.7 million times since it’s September 14th launch.  For sure, some of the viewership is driven by word-of-mouth stimulated gawking to see super model Rhian Sugden in provocative display.  Even so, MCAC is still reaching its target.  Finally, consider this:  if MCAC had instead produced a doctor handout pamphlet talking about testicular cancer along with a diagram showing how to do a self-exam, how many men would pay attention to that?

Here’s MCAC’s reaction after the video hit one million views:

“This is an epic success for Male Cancer Awareness Campaign, the UK’s boldest and most daring charity, as it shows that through innovation we can reach the right target audience in order to spread the message that testicular cancer is treatable if caught early!”

The producers of this video have a deep understanding of the target and the challenges to reach that target in a compelling and meaningful way (i.e., get more men to do self exams).  The video is great marketing because it takes that target understanding and solves the problem in a powerfully, effective way.

Headline For Marketers

Regardless of what you’re selling, get in the head of your customer and develop a deep understanding.  Figure out how he/she learns and wants to be informed.  That’s the path to relevant, meaningful engagement and a higher marketing call-to-action success rate.

Harvey Chimoff defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff@gmail.com.

iStockphoto.com

We’ve all been there.  Nothing pops the balloon of creativity and enthusiasm faster than hearing some version of these dreaded words:  ”that’s the way we’ve always done it.”  Of course it’s infuriating.  More importantly, most of the time the result is a stifling of idea generation and the development of the “I’ll just keep that to myself” way of doing things.  The next time you’re in that situation, try to respond with Why or What If.

Here are three ideas that can help overcome the “we’ve always done it this way” syndrome, and better yet, foster a forward-looking, innovative culture and mindset.

1.  Break Paradigms

The Arms Room, a gun store, shooting range and firearms school, is adjacent to more traditional shopping center tenants. Photo: Houston Chronicle.

Who says shopping centers are only for clothing retailers and home improvement centers?  A recent business article explained how mall operators are expanding their range of possibilities for tenant acquisition.  Examples include a gun range, aquarium, indoor go-cart track, fencing academy, swimming lesson center and more.  In Springfield, Illinois, the major mall let a local church convert a cinema into an iWorship religious center.

While the difficult economy may be a major reason for opening the door to non-traditional tenants, the view is that productive space is better than empty space.  However, even top-performing mall operators are exploring atypical, creative uses for their retail inventory.  What paradigms can you break in your business?

2.  Activate Your Company and Team

PricewaterhouseCoopers launched a terrific innovation contest called PowerPitch to help identify $100 million business opportunities.

PwC chairman Bob Moritz with the winners of PowerPitch. Photo: Fortune Magazine.

There are a variety of new product innovation processes, especially funnel/gate systems, and many yield positive results.  The key is finding what works for your unique situation.  However, they’re not especially fun and don’t usually generate the excitement to captivate a workforce.  That’s why the PwC approach is so cool and potentially lucrative to both the company and employees.  PowerPitch builds off the world of contests, games and the American Idol culture to create a distinctly different corporate enterprise.  PwC offered $100,000 to the winning team plus the chance to implement the idea.  In the end, the results were so great that the company also awarded $25,000 each to the four runner-up teams; and gave each of the 20 semifinalist teams that didn’t make it to the final round a check for $5,0o0.  How can you make your innovation process more exciting and participative?

3.  Build Confidence and Encourage Creativity

David Kelley, the founder of IDEO and the Hasso Plattner Institute of Design at Stanford University (d.school), was profiled in The Wall Street Journal last month by Carolyn Geer, who remarked that “Mr. Kelley has made it his life’s work to help people regain their creative confidence.”  Why?  Geer explained that “Mr. Kelley . . .  believes—and research suggests—that virtually everyone has the capacity to innovate. It’s just that somewhere around the fourth grade most of us stop thinking of ourselves as creative, he says, so our ability to innovate atrophies.”  Geer notes that the Stanford nondegree program ”aims to help students unlock their creative potential by teaching them to become, among other things, more open to experimentation, more comfortable with ambiguity and less afraid of failure.”  What are you doing to inculcate that mindset at your company?

Graphic. www.ideo.com

Headline For Marketers

Innovation isn’t easy, but you, personally, can make a difference when it comes to fostering the conditions for innovation within your team and at your company.  Lead by example and encourage the asking of Why and What If.  Embrace a culture and way of doing business that positively and productively challenges thinking with the goal of building on and making ideas better.  Ensure a safe runway for colleagues and team members to explore new ideas, and to think and act towards achieving business growth.  And, at least sometimes, be willing to see where ”coloring outside the lines” takes you.

Harvey Chimoff defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff@gmail.com.

Tom Fishburne is a marketer turned marketoonist, with a special ability to communicate powerful ideas via cartoons.  I’ve been following his cartoons for years, and I love the one below.  It’s an essential marketing reminder and lesson.

Marketing briefs are not just for advertising.  They’re a statement of objectives and a plan for action that is applicable for almost everything you do in marketing.  Besides advertising, I’ve written marketing briefs for market research projects, creating a new website, building a public relations campaign, developing a brand name and logo, new product marketing communications, and more.

The most important element is organizing your thoughts.  Pick any format that you’re comfortable with, and keep this in mind:  if someone who doesn’t know your business can read the brief and have a 360 degree understanding of what is to be done and why, you’re in good shape.  My briefs are similar in organization, yet customized depending on the assignment.

As an example, here are the sections that I had in a marketing communications brief for a B2B product marketing program:

• Reason for the brief
• Communication objectives
• Communication targets
• Execution guidance and comments
• Marketing deliverables
• Geography and timing
• Tracking metrics
• Budget (always know your budget or budget range, but depending on the type of assignment, you may not want to release it on the front-end)
• Attachment with competitor information

Here are four marketing brief tips that have worked great for me:

• Don’t be afraid to get cross-functional input when preparing the brief.  For example, one of my best briefs incorporated significant input from sales, product management and technical R&D teams.
• If there are key project decision-makers besides yourself, have them approve and sign the brief on the front-end.  It’s always better when everyone is driving down the same road.
• Always “present” your brief in-person or virtually.  There is no substitute for the personal touch.
• Encourage the marketing brief recipient to include in the briefing all the key people likely to work on the project.  You want the team you are hiring or working with to hear your message directly, and learn first-hand why it’s important and why you’re excited.

Headline For Marketers

A good marketing brief can be the difference between success and failure.  If you want the best chance for excellent marketing, use marketing briefs.

Harvey Chimoff defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff@gmail.com.

Photo: Fiber One.

First, it had to be a tough, bold decision to move forward given the association to the actors’ iconic 1978 movie, Up in Smoke, and its drug theme.  But it’s that very association that forms the essence of the marketing idea here, a pretty powerful one at that.

Here’s what Kerry DeLaney, Associate Marketing Manager, Fiber One, told Advertising Age magazine:

“It was an effort to reach boomers online in a fun and humorous way, leveraging the nostalgia from the 60s and 70s in tying that to the benefits of fiber.  As people are getting older the magic in the brownies of yesterday have transformed into something more relevant today.”

Second, marketers are often criticized for playing it too close to the vest and not taking chances, and then when they do step out of the proverbial comfort zone, they run the risk of getting lambasted from all sides.

Photo: Fiber One.

I’m particularly interested in this marketing as a former fiber ingredients marketer to CPG companies, including General Mills.

One of the first thoughts that came to mind after seeing the video was remembering what a VP Marketing at a major CPG company (not GM) told our team:  “We’re trying to figure out how to make fiber sexy.”

GM has done a nice job with its Fiber One marketing (Cardboard no. Delicious yes.) and this campaign takes it to another level.

As a marketer, I doubt I’d have the you-know-what to green-light a decision to launch a marketing campaign that plays off a drug-related theme.  Whether you like the idea or not, give the GM team lots of credit for making a very bold call.

When you’re in the decision-making seat, keep these tips in mind for navigating risky terrain and evaluating bold marketing ideas:

1. Every situation is different, so take a case-by-case decision-making approach;
2. Make sure the idea is on strategy, otherwise stop – immediately;
3. Being a bit uncomfortable is not an automatic disqualifier to proceed (it’s actually helpful sometimes in terms of activating new ideas);
4. But, make sure you, your team, and your company properly vet the idea, and can and will support the decision to move forward.  The mirror test is a good barometer, as is plain old common sense;
5. Scenario plan for potential backlash and make sure you and your company are willing to absorb and withstand any potential criticism.

Headline For Marketers

If you want to stand out, well, sometimes you really have to stand out.

Harvey Chimoff defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff@gmail.com.

Photo: Craftsman.

Did you ever think you’d buy Craftsman tools at Costco?

Sears has been the exclusive home for Craftsman since 1927, with the highly regarded brand and Sears distribution channel forming a self-contained sales and marketing system.  No more.

Typically, retailers cultivate and use their own brands to help build and shape a distinctive brand equity, to establish a destination point-of-difference and to benefit from higher margin selling.  It hasn’t been common for retailers to market their private brands outside of their own distribution network.

There have been some exceptions, though.  When Eight O’Clock Coffee was owned by the A&P supermarket chain, some of the ground coffees were sold to select non-A&P retailers, with one important caveat:  only in geographic markets in which A&P did not operate.

Food retailer Safeway is an interesting example.  In 2006, the company created two high-level brands, O Organics and Eating Right, to leverage the organics boom and emerging wellness trends.  The brands were then put into the management custody of Safeway’s wholly owned subsidiary Lucerne Foods, who in addition to the Safeway store marketing, has marketed the products both domestically and overseas.  According to a 2009 news report, Lucerne was “heavily marketing” the ranges to domestic and international retailers.

Photo: Craftsman.

Now, in September 2011, Craftsman branded tools are being sold in Costco warehouses nationwide.  Sears is prioritizing the brand, and branded sales, ahead of driving traffic to its own stores.  Here’s what Sears Craftsman VP and General Manager, Kris Malkoski, told Sandra M. Jones of the Chicago Tribune:

“As we externalize the brand, we’re trying to be thoughtful about reaching shoppers we aren’t reaching at Sears today.  It’s an opportunity to bring the equity of this product to households that aren’t going to Sears.”

According to Malkoski, it’s the continuation of a strategy begun in Spring 2010, when for the first time in the brand’s eighty-four year history, it was available for sale outside Sears at 100 Ace Hardware stores.  That was expanded to 960 stores and is expected to reach 1,000 stores this September.

Jones, writing in the Chicago Tribune, made this cogent assessment of Sears’ strategy:

“Sears’ brand strategy runs counter to what most retailers are doing these days. Stores from Macy’s to Home Depot are expanding their in-house brands as a way to attract shoppers, stand out from competitors and pad their profit margins. Selling Sears’ proprietary brands through other retailers could raise cash in the short run but over time give shoppers fewer reasons to visit its stores and exacerbate the retailer’s decline, critics contend.”

And The Wall Street Journal, citing a LinkedIn job posting, reported that Sears is preparing to market its Kenmore brand externally as well.

Sears Holding Corporation, parent to Sears and Kmart, is not doing well financially (declining sales for five years), so maybe the company needs to try unique strategies.  The company has also done some licensing deals with its DieHard battery brand, per the Tribune’s Jones.

Craftsman, Kenmore and DieHard are strong, well-defined consumer brands.  Clearly, Sears Holding has been struggling to figure out how to maximize brand value and at the same time how to make it as a retailer.  The dilemma is that the brand assets themselves aren’t enough to power and sustain the retailer as a destination, and Sears isn’t strong enough to prosper as a retailer versus tough competitors.

One of the special Craftsman packages being sold at Costco is a drill packaged with a light for fixing hard-to-see spots under the kitchen sink.  Sears executives can only hope they can shine a light on a winning strategy going forward.

Headline For Marketers

As you know from reading this blog, I’m a proponent of marketing experimentation and bold decision-making.  At least Sears is trying something different.  But the dilemma may just be that what’s good for the brands is not good for the stores.  Channel expansion for Sears’ big, power brands may be the right brand management choice, but how can that be the right retail growth management choice?

Harvey Chimoff defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition. He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations. Contact Harvey at hchimoff@gmail.com.

Harvey Chimoff’s article, Make Strategic Changes from Position of Strength, Not Weakness, is featured in the August issue of Marketing Magnified, the CMO Council’s monthly online journal.

In case it’s somehow escaped you, we’re living in the era of the smartphone.  Is there any item more indispensable than your BlackBerry, iPhone, or (for more and more of us) Droid?  Smartphones are digital security blankets (some of us have more than one), status symbols, and, for better or for worse, the first thing many of us pick up every morning.

Andy Serwer. Managing Editor – Fortune magazine. Android Calling. July 4, 2011

Photos: Apple and Motorola.

Well, if you sleep next to your smartphone, of course it’s easier to grab in the morning.  Yep, two-thirds of smartphone users do that.  And, 33% of our fellow citizens would rather have no sex than no mobile phone for one week (1).

Mobile marketing is hot, particularly smartphones.  The Pew Research Center reported that 35% of Americans own a smartphone (2).  That’s more than 100 million people.  On a typical day, 68% of all smartphone owners go online using their phone.

It’s no surprise that marketers are in overdrive figuring out how to optimize engagement and maximize experience for mobile consumers and customers.  In fact, a July research report (3) noted that 3 out of 4 marketers plan to increase their mobile marketing spending during the next two years, with 35% saying they will increase their mobile budgets more than 50%.

Check out this video from Google for more on the opportunity:

And here’s a snapshot about what mobile marketers are looking to achieve (from Millenial Media):

Headline For Marketers

Treat the mobile channel strategically and incorporate mobile into your marketing plans.  To maximize engagement and experience, optimize, target and refresh your content; and make sure it displays properly on all mobile devices.  The mobile marketing tools are there.  It’s up to you to leverage them wisely.

Harvey Chimoff defines and develops marketing capabilities in changing environments, particularly for marketing organizations in transition.  He is a pragmatic go-to-market strategist and planner who delivers real implementation in B2B and B2C operations.  Contact Harvey at hchimoff@gmail.com.

(1) TeleNav, Inc. national survey. August 3, 2011.

(2) The Pew Research Center’s Internet & American Life Project, April 26 – May 22, 2011 Spring Tracking Survey.

(3) Marketer Perceptions of Mobile Advertising. An Ovum study for the IAB. July 2011.