Posted by Menachem Lubinsky on January 25, 2010 under Creativity, Out of the Box | 
Creativity is often defined as being different, innovative, thought provoking, and even “out-of-the-box” thinking. While marketers would tell you that to market a product or concept, the key is to get your message across in any way possible, the experts point to creativity as an important factor in those products that rise to the top. But what is creativity?
There have been studies that show that consumers tend to like messages that make them think, laugh, or even angry (although not suggested for user-friendly products). Remember the “change” message of candidate Barack Obama who was able to use the message to trigger anger, hope, and even pride. Creativity then is to get the message across but in a manner that gets consumers to notice and perhaps even better to encourage an emotional response.
It is not uncommon for some marketers to resort to negative messages as a method of “attention grabbing.” In the aftermath of 9-11, many Republican candidates used negative messages to scare voters from voting for more liberal candidates. They wanted to make people think that the Republicans had a lock on security as opposed to liberals who may be doing business as usual. Many public interest groups routinely use such messages to frighten citizens about the ecology, global warming, and widespread availability of firearms.
Creativity can be used in many forms. It can be in a word or phrase that generates a desired response or it can be in the visual. The oft-quoted saying of “a picture is worth a thousand words” always applies, but by the same token some photos and words generate the opposite response. Animal rights activists who show photos of tortured animals believe that the visual will discourage women from wearing furs. Marketers say that the visuals have had the opposite effect, causing readers to brand the activists as extremists. Sales have on many occasions risen dramatically after an ad campaign by the animal rights extremists.
The Geico advertising campaign is cited by many marketers as an example of creativity that does not necessarily follow the rules. To some listeners the ads appear to be silly. They discuss off the beaten track life scenes and draw Geico in as the solution. The marketers say that this “silly” approach has actually worked well for Geico. It has gotten people to tune into the message and think of Geico as a solution to whatever problem they may have.
I have often seen creativity that you might say is overkill. Imagine an ad that is so well constructed visually that the average reader has no idea who the ad might be for. I recently saw this in ad that was designed to market a certain program, but instead the ad tried to be cute making it appear as if the ad were actually for a well-known product. My guess is that the message and in this case the creativity was totally lost on the average reader.
Some people actually confuse cute or even humor with creativity. I remember several humorous ads that in tests consumers failed to associate the brand with the humor. In other words, while they remembered the joke, they did not recall the sponsor.
Creativity nowadays is often measured in relevance. Messages that seem to tie-in with lifestyle seem to do well. Researchers say that people are still concerned about the basic needs of their own lives: feeling secure, comfortable, and free. Finance companies (credit cards) and even food companies have used the theme of well-being as a direct message to consumers.
A noted marketer recently pointed out the difference in approach between the ad campaigns of two state lottery organizations. One used creativity to paint a picture of just how much the revenues would do for the economy of the state. It listed projects that the state could not otherwise afford. The other state lottery focused on how a lottery winner would actually be able to fulfill their dreams. The New York State Lottery had a winning campaign for many years in its “Dollar and a Dream” campaign.
Creativity is more than coming up with a heading or a slogan. It is projecting on how to motivate the reader into action. It is particularly challenging when the desired action is life changing. When the concept of seatbelts in automobiles was first introduced, many states simply showed the consequences if seat belts were not worn. Experts felt that many young people in particular felt invincible and still did not heed the message. It wasn’t until the law and even insurance came into play that customers paid attention.
Creativity is an important marketing tool, but it also continues to be one of the most misunderstood concepts in marketing.
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Posted by Menachem Lubinsky on January 18, 2010 under Recession |
The word “recovery” is being used with increased frequency; yet the experts are still afraid to say the word. While the economy is showing some signs of a recovery, it is also still apparently mired in a deep recession, hardly the time to declare that the economy is in recovery.
You might say that we are living in a period with extremely mixed signals. There was the news that people are beginning to refinance their homes, a good sign for the sluggish housing market. But it turns out that the refinance surge was due to an anticipated hike in the interest rate. In addition, the number of foreclosures continues to increase. In New York, stimulus funds are being used to encourage people to buy foreclosed homes as the inventory of such homes shows no signs of abating.
There was a report that the service sector had begun to hire once again. True to some extent, but on the flip side is a double-digit unemployment figure and that does not include the millions of people who are no longer looking for jobs. It is not a secret that the unemployment figures do not include the disenfranchised who have given up looking for a job.
Of course, the stock market has been doing better of late. Should that not mean that the recovery is here? Again, the mixed signals. Some of the strong institutions like Citibank are struggling and no one is sure just how long this “rally” will last. For some the climb back is so steep that there is little solace in the market’s resurgence.
So it may be a bit premature to use the word recovery for the economy as a whole, but it might be in order for certain sectors or even businesses. For example, the retail sector seemed to have a better than expected holiday season. Travel is making somewhat of a comeback. But again, these gains are modest and economists wonder how enduring they may be.
Several businesses that I am familiar with say that they feel that they are in a recovery mode. OK, it is possible for the economy to be in a recession and for individual businesses to be in a recovery. A service business I know has consolidated its operations and is doing much better. They certainly feel that they are in a recovery. In an earlier article, I pointed out how it is possible to take a business from an economic downturn to profitability. The formula is to control expenses and to operate on a much leaner basis.
I know a business that has cut two major brands from its inventory. The company realized that these two brands were not only not carrying their weight; they were draining the company’s successful brands. It was not an easy decision because there was no telling that the two struggling would not return to profitability at some point in the future. The company first sought to sell off the brands but found few takers. It had to take the bitter pill of disposing of the brands, but as it turned out it was not so bitter after all as the company returned to profitability enabling it to launch a new brand that stood a better chance than the two brands it dropped.
A company in recovery acts the way the economy would act if it was finally at that point. The company is much more secure in investing in its future just as people would do were the economy to be in a recovery. This is distinctly different from a recession where people hold onto their money, fearful that the hard times dictated to keep as much cash on hand and certainly not to plunge into ventures that have less than a promising future
So how does one know if a business is indeed a recovery? Economists like to think that it is all in the “graph.” They are loathe to call a temporary bump a recovery but are apt to accept that if a company, for example has had steady growth in 3 periods (quarters) that it might indeed be in a recovery mode. They also tend to evaluate other trends such as new business, the state of the competition, and some valid signals from consumers that that the recovery is not a passing fad.
The economists warn that a premature reaction to a presumed recovery is dangerous. A client I had not heard from in more than four years suddenly called to explore a rather ambitious marketing program. He seemed to feel comfortable that the worst was over and that it was time to embark on a marketing program we had discussed four years earlier. Our negotiations took several weeks and then the communications between us went dead. When I finally did catch up with him, his business seemed to be in a tailspin due to an investment that had soured. He admitted that he had seen the signals but chose to ignore them, believing that he could weather the storm. The marketing program was put on hold.
I, of course, wish that we were in a recovery and certainly hope that whatever business you are in it is in a recovery mode, but in a real way, which means that the direction of the graph is headed in only one direction: up!
Posted by Menachem Lubinsky on January 14, 2010 under Kosher Stores |
Flushing, NY… by Elie Appleson, Feature Editor… Several decades ago, every neighborhood had local milkmen who delivered milk, eggs, and other necessities right to their door. As grocery stores advanced, the convenience of having products delivered regularly seemed to have been lost… until now. Violet’s Bake Shop in Queens has expanded to the internet and brings their customers freshly baked goods to their doorstep.
Having 25 years of bakery management, Violet opened the doors to her own bakery, specializing in Hungarian desserts, just one year ago. The bake shop has quickly become a fixture in the neighborhood, as a place to pick up anything from delicious homemade tasting challah to more exotic desserts. With the help of her son and partner, Violet has made her freshly baked goods available to the entire country by launching her website last month, www.violetsbakeshop.com. All goods are baked in Queens and can be delivered from coast to coast, as early as the next day. “We are thrilled to be bringing our delicious kosher bakery into the homes of so many Jews who are looking for something extra special for their shabbos meal or special occasion,” Violet’s son, Michael said.
The kosher industry is becoming more innovative than ever. Not only are unique products available, but new and convenient services within the kosher market are being offered in a way we never could have imagined.
Posted by Menachem Lubinsky on January 13, 2010 under Kashrus Organization |
Chicago… The annual Vaadim Convention, sponsored by the Association of Kashrus Organizations (AKO) is set to address two major concerns of the kashrus community. Scheduled to meet in Dallas February 22-23, the kashrus officials will discuss programs to train mashgichim and setting standards for kosher foodservice establishments. The Vaadim are part of a network of local and regional kashrus committees that in recent years have played a significant role in the expanding kosher food world. AKO is headed by Rabbi Sholem Fishbane of the Chicago Rabbinical Council who also serves as the executive director of the umbrella kashrus agency. Rabbi Sholey Klein of Dallas will serve as the event chairman.
Posted by Menachem Lubinsky on January 12, 2010 under Kosher, Kosher Stores |
Chicago… Speculation was rife that the merger of two giant food distributors might impact the distribution of kosher foods, but sources close to both distributors indicate that it would not have any immediate impact for the upcoming Passover season. Kehe Foods has acquired Tree of Life, owned by the Wessanen, which as made the move to support growth of its European businesses. The transaction is expected to close in the first quarter of 2010. The purchase price was $190 million. Both Kehe and Tree of Life expanded their distribution of kosher foods in the ‘90’s as the industry was undergoing its major growth spurt. They took advantage of the growing involvement by supermarkets in kosher and followed the demise of several small kosher specialty distributors. It was also a period when several kosher food manufacturers and distributors joined the distribution fray, but Kehe and Tree of Life moved with the growing tide of mainstreaming kosher foods namely in the nation’s large supermarkets. Founded in 1952, Kehe supplies organic, natural, ethnic, kosher and other specialty food products. Tree of Life was founded in the early 1970′s with a retail store in St. Augustine, Florida. Sources close to both distributors say that it will probably be a year before any major consolidation takes place.
Posted by Menachem Lubinsky on January 11, 2010 under Recession |
A school was in dire need of a new heating system. The old boiler had been breaking down with increased frequency, even resulting in the closure of the school for two days. The Board of Directors had decided that to raise the money, they would immediately embark on a full court press, including full pages in the local newspapers. The heading of the first ad began like many ads that were common in the ‘60’s: “Emergency Campaign.” The words were in big block letters and there was a picture of the building below. The letter similarly had a headline: “This is not an ordinary appeal. It is an emergency campaign.”
Another institution on a capital campaign wanted to make sure that potential donors understood that the money to be raised for a new building did not conflict with their ordinary fundraising efforts. It too mounted an intensive advertising campaign with the heading: “Building for the Future.” The copy went on to thank readers for their past support but noted that this appeal was for the new building.
A leading social service organization sought to raise money for a special summer project for disadvantaged children. These children were to be treated to a two-week camping experience. In the past, the organization used to receive funds from two benefactors but because of the recession they were now forced to raise money from the public. The heading of their full page ad read: “These children need your help!” There were pictures of sad-faced children sitting on a stoop.
These are three examples of campaigns that did very poorly, not because there was a flaw in the cause, but the message did not send the “right message.” Marketers have long argued over buzzwords that are effective versus those that that receive a lukewarm reception or in fact have an opposite effect. If the above three approaches were analyzed in a “marketing lab,” each one would come back with serious flaws.
The “Emergency Campaign” was found lacking because it lacks credibility and because people would rather be part of a success than a potential failure. In today’s environment, emergency campaigns make the reader believe that the institution had somehow failed to properly plan for the emergency. There is also the fear that the money for this emergency may not be enough and that there will be a repeat campaign and then some. In short, it exudes an environment of instability and makes people wonder. Crying wolf just doesn’t work anymore for most campaigns, unless there is a strong personality behind it.
In today’s lexicon of successful marketing phrases, the school would have fared better with simple headings like “We’re Turning up the Heat for our Students, ” “We’re Getting our School Out of the Cold,” and ‘Warm up to Our New Generation.” These were actually used along with powerful copy and were highly successful.
“Building for the Future” was the kind of message that generates a huge yawn. Yes, building usually means for the future unless you are building a tent and there was no case made as to why this building for the future was particularly different than any other institution that is building for the future. It generates little excitement and certainly is no reason to loosen the purse strings of potential donors.
The campaign that did work for the building campaign was “When a Building Says Thank You.” It went on to review some of the special features of the building and how it would be used. It specifically used testimonials from people who would benefit from the new building and ended with the slogan: “You’re Welcome” with an invitation to visit the site.
The message for the disadvantaged children similarly fell short of tugging at the emotions of the reader. People are fed up with help this or help that ads. The campaign that did work was: “The Children of Summer” with faces of smiling children and happy scenes from camp.
The evidence is clear that people nowadays respond to messages that are more upbeat, demonstrate stability and offer the confidence that the institution is properly managed. Potential donors are also interested in leveraging their money, which means that they want to know that they are part of something far bigger. They respond well when it is part of a movement where people in their social and income strata are also involved.
It takes a bit of research to determine who the target audience is, as it is with every marketing effort. For example, previous donors may wish to know how past efforts fared. To the extent that they are confident that their previous contribution was wisely used, they will repeat the donation.
Donors are very concerned about the proper management of money. They want to see wise choices that include frugality when necessary. A donor wishes to know that if an institution is in need of money, that it has done its share of belt-tightening.
At a recent seminar in Washington DC, a leading expert in fundraising guessed that most people want to help the disadvantaged. But he noted they want to make sure that their money is used to provide the support not to pay for the infrastructure of the organization. It is for that reason, he noted, that the focus must be on efficiency, which means that the organization makes the case how it is spending most of the money for the actual cause.
The expert also focused on the buzzwords citing examples how the difference of a word here and there was the difference between $66,000 for one institution and $1 million for a similar institution. What a difference a word makes!
Posted by Menachem Lubinsky on under Kosher, Kosher Stores |
Boca Raton… Two of the eight stores that the Albertson’s chain will be closing have full kosher sections, affecting thousands of kosher consumers. The stores in Boca Raton and Delray Beach were considered amongst the nation’s busiest kosher locations, sources told Kosher Today. While Albertson’s says that the closures were due to financial reasons, the sources say that Albertson’s “is more interested in the real estate than in the grocery business especially when they are not making as much money as they want.” It was in 2006 that Albertson’s was sold to a consortium of investors made up of Supervalu, CVS Corporation and an investor group led by Cerberus Capital Management. While most of the “kosher stores” reverted to Supervalu and the kosher program was directed by Yakov Yarmove, the original Albertson’s retained some of the stores, including those in Florida. Several kosher distributors said that the closures will most definitely leave a void but said that independents like Kosher Marketplace in Boca Raton and Glick’s in Delray Beach would be the beneficiaries. “For once,” said a distributor, “the shoe is on the other foot as supermarkets are closing and independents gain.” The distributor said that he had heard that the property was being sold but another source told Kosher today that he wouldn’t be surprised “if another supermarket came into at least one of the locations.” Both of the Albertson’s supermarkets were under the kosher certification of the Orthodox Union (OU) with a team of mashgichim in each.
Posted by Menachem Lubinsky on January 3, 2010 under Recession |
It may seem a bit odd that instead of addressing some of the latest developments in the ongoing recession, I will focus instead on problem solving. Here’s why: A small husband-wife business located in a thriving community in Upstate New York came to see me on whether to close their business. “We are just overwhelmed with problems,” said the exhausted wife. The upside of shutting down the business would be that it might end their “problems” but the downside was that they had no plan for the future, which means that it would only be creating new problems.
So I decided to invoke a lesson in problem solving I had learned a long time ago from clients that just had problems with something. In most cases, when people say they have problems with a situation, it is important to ask them specifics as to what they are. When they do break down their concerns, in many cases an issue suddenly becomes more manageable but more importantly it allows for some intervention to solve the problem. You can’t possibly solve anything if you are not aware of what it is that you are dealing with.
Ironically, it was a car salesman that once taught me that lesson many years ago. I happened to be in the lot when a woman complained about the car she had bought several days earlier. “This is a lemon,” she argued, “and I would like my money back.” The salesman calmly asked: “I understand, but could you be specific about what’s wrong with the car?” She thought for a moment but eventually said: “The air conditioner doesn’t work and the car jerks forward after I stop at a light even as I accelerate slowly.” The salesman patiently retorted: “Why don’t I have the A/C checked out and then take the car for a test ride.” It turned out that some minor adjustments solved both problems and the woman was satisfied. This is a good lesson in customer relations.
The couple’s problems included a worker who might have been “stealing” them blind, a competitor that had allegedly stole the name of a brand they created for a similar item, and a large account that seemed to have abandoned them and they weren’t sure how to get them back. Systematically, we explored each of these concerns. We discussed the worker at length and ultimately concluded that a worker that had prematurely retired at 57 years old should be brought back. He seemed to be trustworthy and when he was in the business, had a good handle on inventory. I recommended a lawyer that could go after the competitor and suggested ways to get the large client back.
The connection to the recession is that they somehow blamed their problems on the recession when in reality it had absolutely nothing to do with the economy. Their reasoning was that they needed to hire someone with a lot more money, would likely have to invest in a new line with money they did not have and they saw no prospect of replacing the large client during an economic slump.
Now three months later, the new (old) worker had stabilized inventory and the business suddenly found cash it never knew it had. The peace of mind that he was not robbing them blind, as they put it, was an important factor in the revitalization of the business. After a lawyer letter, the competitor had agreed to change the name of the brand they ostensibly stole, once again giving my clients exclusive access to the brand. With a bit of help, the husband went to see the large client, something he could not get himself to do until now. The large client admitted that he had been severely impacted by the recession and had found someone who gave them a much better deal but he did miss the quality of the goods. He agreed to restart ordering albeit at a lower level than before.
It is obvious that too many businesses find themselves on the brink of closure because they do not exercise the same type of problem dissecting as was done with the small business. To some people any combination of problems can become overwhelming, to the point of throwing in the towel.
Sure there are problems that can be all-consuming. A business that finds itself under crushing debt could be a case in point. A business that has some debt could possibly renegotiate the debt and set up a payment plan for the future. A business that is experiencing sluggish sales can look to line extension or other ideas to use its same customer base to expand sales.
Problem solving may be difficult for any person that is close to the situation. It may be necessary to involve a consultant that can help identify the problem and then begin to look for solutions. In many instances, the mere identification of the problem is enough to give the person with the problem an idea of how to solve it.
It is easy to blame the recession for problems in a business, which may or may not be true. It is important to identify the problems as a means of dealing with issues that can help a business not only survive but grow. The recession should never be used as an excuse.
