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I’m sure you’ve all heard Starbucks is closing 600 of its stores. What I was surprised to find is that it probably has little to do with the economy and more to do with how they grew. In particular, this researcher’s quote from an article I read struck me…

“Passikoff said Starbucks tried to migrate its coffee brand into a lifestyle brand. ‘They came out with the movies and the books in the stores. There’s nothing wrong with that aspiration. But as part of this, they essentially took a step away from the core quality of the brand, which was the coffeehouse experience … What essentially they did overall was re-engineer the experience right out of the stores. So customers were standing in line, and there was no experience anymore. They were too much like everyone else.’”

As my company continues to focus on marketing for Affinity Brands, I think this goes to show how important it is to stay objective and keep it real. More isn’t always better.

Starbucks will bless a new generation of inbound Marketing students with yet another case study … unfortunately, not with another home run. Doing too much may have proven to degrade what made the brand affinity-worthy in the first place.

(Of course, this lapse in marketing judgment won’t stop me from my occasional non-fat hazelnut latte. Mmm.)

Here’s a link to the full article if you’re interested. http://www.star-telegram.com/business/story/742107.html

Whenever government or business suspects fraud, auditors never rely on testimony, hearsay, or opinion; instead they follow the money trail. Follow the money and you will find the motivation. Does your marketing motivation reflect your investment?

Sure, we follow Process for effective campaigns, but in the end after much discovery, diagnosis, and a prescription, you will still ask, “did we make the necessary investment for success?” A client of mine used to always ask me after establishing his annual budget, “what would the next thousand dollars buy me”? He understood buying power, and recognized that the last dollar always buys more than the first.

If you’ve ever built a house you understand this fact. Once the foundation, walls, and roof are complete, the rest is aesthetic. But it is also that which we receive the most daily enjoyment from. And as you would give caution to ‘over’ building in your neighborhood, similar caution should be given toward establishing your marketing budget.

The good news is that we can follow historical industry benchmarks for determining an appropriate budget. The bad news is that these same industry benchmarks include data from companies who have failed to spend appropriately and ultimately may have returned poor results.

The answer begins with effective Discovery. Begin every campaign with the due diligence necessary to identify the options for accomplishing stated goals. And just a little reminder: effective Discovery always begins solution-neutral. Self-diagnosis is the ‘cardinal sin’ we most often see committed by new clients. When you are consumed by the latest trend, every problem seems to require a trendy solution.

• First, make a commitment to honest Discovery.
• Second, trust the experts to Diagnose the symptoms.
• Third, commit to what the experts Prescribe.
• Fourth, Evaluate regularly and react to necessary change (p.s. expect change).

“For where your treasure is, there your heart will be also.” (Luke 12:34)

Have you noticed the number of ads reminding us that come February 17th, 2009 you will no longer be able to view television? The ads have been startling to some that do not understand fully what it all means. Even I am confused by the language of the ads I’ve viewed on the transition.

Neilson says approximately 17 million households receive their TV signals off-air. The FCC has allocated $40 subsidies for over 33 million households to purchase set-top converter boxes.

Unfortunately the highest segment of TV viewership will be affected the most. AARP reports ’silver’ Americans over the age of 50 watch an average of 5.5 hours of Television everyday. This is also the segment most represented in those receiving their only signals off-air.

Should we be concerned? You better believe it. The silver demographic represents the majority of those targeted by these ads. What we don’t know is how consumer purchases might be affected should this demographic suddenly go off-line. No TV signal means No Viewers. No Viewers means No Advertising. No Advertising means No TV. Get the idea? It’s a vicious cycle, but one that has been working successfully for a half century.

(NOTE: Viewers can register online or call 888-DTV-2009 for FCC DTV subsidy coupons.)

THE WORLD’S BUSIEST AIRPORT

I’m currently sitting at the Atlanta International Airport (Hartsfield Jackson). As we flew in from Florida a few minutes ago, the pilot welcomed everyone to Atlanta calling it, “the worlds busiest airport”. I wasn’t sure what he meant by busiest. Busiest as in the most planes arriving and departing? Per capita? Per gate? Per people working on their laptops (like me)? Most crowded hallways?

BUSY MEANS WHAT?

After spending this past week sitting on a beach, not being busy, it is a rude awakening to be reminded how busy life can be.  My friend Matt regularly reminds me that we are happiest when we’re really busy.  (Unfortunately, what he really means is we are distracted.)

For years I believed that busy was directly related to my ‘to do’ list.  Was that ever a farce?  I now believe “busy is as busy does” (Thanks Forrest!). It’s not about the length of your ‘to do’ list, rather it’s your ability to manage your to-do’s efficiently, within an expected time frame.  Okay, maybe not genius talking, but for those of us who’s ‘to do’ list are rather long, be encouraged - it’s up to you - busy means what? Busy is as busy does.

MORE THAN PRODUCT PLACEMENT…

We’ve all heard the term Product Placement and have easily identified embedded products when watching movies, television, or gaming. Early on, this trend began intentionally as part of effective scripting. Usually intending to catch the audience’s attention or to create a humorous moment; reminding the audience of their current reality. Remember E.T.’s Reese’s Pieces?

ENTER BRANDED ENTERTAINMENT…

More than sponsored product placement, think of creating your own content, where subject matter revolves around your brand, at minimum “branded presentation”. It’s Product Placement evolved, but more effective for those willing to control the story and underwrite the content production & development. Not as expensive as it used to be, more channels to access than before, and more talent to tap. It can only make sense.

REVENUE STREAMS?

Could your product (or service) support branded entertainment content? (Affinity brands regularly meet the requirements.) How about an original movie? TV Series? Direct to DVD? YouTube Short? There’s a media channel for every budget and comfort zone. If you have the opportunity - take it!

THE PIXAR TOUCH

I’ve just completed the book ‘The Pixar Touch - The Making of a Company‘ by David Price. It’s an interesting read that everyone involved in developing a company should read. I was reminded of three things… 1) the journey is never what you intend or predict, 2) the world is indeed small, and 3) significant outcomes require significant talent.

INFLUENCING POP CULTURE

Few companies have influenced pop-culture as much as the companies so carefully connected in this book. Companies like Apple, Disney, LucasFilms, Microsoft, etc. Throughout their development in the 70’s and 80’s these companies regularly came in contact sharing ideas and even personnel.

REAPING REWARDS

It’s fascinating that none of these companies were working within an established industry, rather, they became the establishment. As a result they reaped many rewards.

Yes, it is a USB memory ’stick’. Literally. At first glance it might suggest that memory grows on trees. Hah. I found this recently on the web and thought is was worth sharing. It is made by a company called Oooms located in The Netherlands.

Oooms markets various interesting designed products. Check them out.

A great example of a company that focuses on a niche market of unique products.

Three ‘musts’ for effective marketing…

• Differentiate
• Demonstrate
• Sustain

In the words of Dr. Phil, “how’s that working out for ya?”

HAPPY 4th!

After a busy day of fourth-of-July activities; hot dogs and burgers on the grill, a cool swim after riding dirt bikes… everyone worked up to the big finale, the annual city fireworks show on the edge of town.

It’s a huge event, everyone is goes. The fireworks are spectacular and usually last an hour or so. The local radio station simulcasts patriotic music so you can crank the car stereo and enjoy the big event with all your senses. Seeing the burst of color, explosions that rock your lawn chair, being so close that you can feel the heat and smell the gun powder. In fact, you better keep your mouth closed or you might get a taste of it as well.

So, we’re ready to go, the kids are in the car.  Oh wait… I just remembered, we stopped at a road-side stand earlier and bought fifteen dollars worth of sparklers, smoke bombs, and some spinners that whistle?  Okay kids, who wants to stay home instead, and make our own fireworks show? A few pops and a sparkle; overcome with smoke, and three duds that won’t lite?  We’ll miss the big event?  There will be lots of people there?  Music on the radio?

It’s the difference between going to the zoo, or going to the petting zoo.  Guess which one wins out every time?

Affinity brands create brand-experience.