Walmart's Brand Positioning Report Leaked

The NYTimes has published a branding report on Walmart which was prepared by their agency GSD&M. There's going to be a lot of chatter about this online the gist of it is that the Brand Reputation may be failing or at least the "Pride" in the brand needs reinventing.

See Brand Autopsy for further comments on this (http://www.typepad.com/t/trackback/11572/18918300).

Report available here - http://graphics8.nytimes.com/packages/pdf/business/20070530_WALMART.pdf

New research highlights the presence of Strategic Consumers

A new piece of research from Gérard P. Cachon and Robert Swinney at Warton (http://knowledge.wharton.upenn.edu/papers/1339.pdf) suggests that there may be three types of shoppers which retailers need to consider when setting stock levels and retail strategy. To quote:

“Some shoppers just can't help themselves and buy mostly on impulse without regard to price. Others are die-hard bargain hunters, who only open their wallets for a discount.

“Then there are the strategic consumers, who are willing to buy full-price sometimes, but at other times they will wait for a bargain. According to new Wharton research, it's these customers that retailers need to focus on in order to reap the full benefits of lean retail inventory management and variable pricing”

If this article is correct then the current model of release at top price, take the profits then discount towards the end of a products lifespan is not going to last. The research looks at retailers like Zara and airlines such as Southwest and highlights their policies which commit customers to an early purchase rather than waiting for discounting to take place.

For marketing analysts, there is an interesting suggestion here. Whilst most segmentation is behavioural is terms of how consumers actually use products or interact with them, retailer segmentation is typically behavioural. The question now is can you use store card data to identify the strategic customers and can you bring forward their purchases? Any ideas if this has been done anywhere and what it actually meant in practice?

last.fm

Today was a great one for the people over at Last.fm - CBS purchased them and I signed up! There's even a widget connected to my blog now (click to enjoy some music "like" that produced by Blur).

It's an amazing service which shows just how far the web has come in the past 10 years. I remember signing up to a similar service seven years ago when Napster was still the real thing! However all sorts of issues meant that the previous service failed (no way to make money and not enough bandwidth).

In a way, i get last.fm more than myspace. By that I mean that I can see a way where it can become both a social AND a commercial success. I guess only time will tell.

More great advertising from ...Microsoft?

In recent months, I've noticed that Microsoft have been coming up with some great commercials - Office 2007 was one example.

Now there's a new one aimed at people like me - online advertisers. I thought you'd enjoy this one.

However - one question - does anyone have any ideas how Microsoft is going to solve the gap between consumers and advertisers through technology? My concern is that the commercial highlights the natural gap between any database marketer and real consumers. There's no substiute for actually listening and seeing how consumers actually interact with a product.

"You can't trust early adopters"

So says James McQuivey from Forrester who was commenting on the slow (read no) growth in iTunes video downloads as reported here - http://www.theregister.co.uk/2007/05/14/forrester_online_video/.

Early adopters have apparently skewed the forecasts for PAID online video downloads. Many analysts assumed that once the rest of us "got" it, we'd behave in the same manner as the early adopters did. However we didn't and it’s now looking like iTunes isn’t going to be the killer investment Apple and their media owner backers had hoped for.

What does this mean from marketing analysts? How does it make a difference to how we think about marketing? Well it shouldn’t change backward looking analysis too much in practice. However the focus has to shift for many organisations to start answering questions like “how do we shift this in the future?” It really brings home a point which was made to me over and over again by former colleagues – namely you have to add judgement to historical analysis in order to create a more reliable model for forecasting. In the past, I’ve been involved in a number of workshops which seek to qualify historical models with beliefs about how the future may differ from the past – Delphi style has been common. These workshops are a great way to test new hypotheses about the future and one key topic must encompass the question of “how might our consumers differ in the future?”

As many of you will be aware, my company is about to launch modelQED – a backward looking modelling tool which creates marketing mix models in record time. One of the key benefits of this tool is that it will cut down on the amount of time spend on backward looking analysis enabling organisations to spend much more time looking forward and understanding how the future will differ from the past. For me this is a winning combination – reduce historical analysis time (and increase the quality of the analysis) + systematically review how the future will differ from the past.

I hope that this powerful combination will prove irresistible to many organisations!