Target Surging, Bud Charities, Bake Bread, Make Money Ritson

I’m John McGrath for the special DMA inthe International Society for strategicmarketingyes I’m hitting the wrong buttons todaybut I’m going to push some of yoursokay target announced surging sales andshifting strategies really interestingwe’re going to follow up with this onthe written article which is one of thebest I’ve ever seenbesides cancelling more than half of thestore remodeler wings they had plannedit also bumped its associate salaries upby about two dollars an hour through Maysecond okay what does that mean wellthat’s like a 20% raise for a lot ofpeople I think I think they pay about$10 an hour across the country maybemore in some places but that’s that’sreal difference you know I remember whenmy son was working at Kohl’s and he gotyou know like a dollar more now orreally really seemed to make adifference for him so amazing that theydid that and they’re also doing someoptions for for those who are 65 andolder pregnant or have underlyingmedical conditions so that they can getsome paid leave okay so that they’rethey’re keeping a foundation with theiremployees I think that’s just reallyreally good and I’m not a huge fan ofTarget but that’s a great movewe got one it’s too complicated for meanyway Budweiser is taken the money thatthey were gonna spend on sportsmarketing and they’re sticking it intononprofits and I think that’s anothergood idea right put the money somewhereinstead of running dumb ads which somany brands are doing and the the hardpart about dumb ads especially right nowis you know if your market is men andthere’s not no sports on where do youput an ad there’s no place to even putit you know I mean there’s places to putitbut ESPN is like is is like a Dumberghost town than driving to the storethere’s just not much there so and and Irefuse to read about speculation fromnext year’s NBA Draft right nowdoesn’t resonate with me sorry aboutthat okay so they’re they’re donatingfive million to nonprofit organizationfor sports entertainment towardcontaining the outbreak you know I don’tknow if that’s a worthwhile charity itmight be better to give away beer butthat’s I know that’s a littleproblematic because there was a beergiveaway uh this January but it was forthe non-alcoholic stuff and it was fromit was from somebody in Europe did it Ithink anyway the economy might be toastbut sourdough biz is on the rise okaywhat people have done is taken up buyingbread are not vibrant there wasn’t muchbread on the shelves a couple of weeksago yes last night I was there and therewas you know plenty plenty to buy Idon’t know if it was any good orwhatever it might have been theexpensive stuff but and we’ll get tothat and but what they said was is thatthere’s no shortage of flour comingthere’s plenty of grain and in fact it’sthat it’s up to the to the gills but umit’s just slow supply chains notshortages I did have my wife go out andbuy about ten pounds of flour or 2015 Idon’t know a couple of weeks ago becauseI said you know we could live on thisbread and if you don’t know how to makeno need bread you can go to my personalYouTube channel which is john mclaughlintips that i think work really well it’sabout ten minutes and you can figure outthe whole thing right there you don’teven need to go find a recipesI think the recipes on there so peopleare staying home and baking more breadand I think that’s a great thing to doif you got the flour okay now this isthe mark Ritson article but I reallywanted to talk aboutforget about empathetic emails startmaking your brand money McDonald’sseparated the arches okay and so markwas kind of shaking his head on that onebecause what’s the pointsocial social distancing right there’sno point to that okay it’s just makingnoise with your budget and he said emailafter email arrived in my inbox frombrands I hardly remember buying anythingfrom asking if I was okay said theystarted out how are you holding up firstparagraph second we believe in X Y & Zyou know like Budweiser and that arethey’re especially relevant now and youcan still buy from us online and aprayer for your safety on the fourthparagraph he said I had no idea Oh RyanWaldman said there’s this many companiesthat are here for me during thisdifficult timebut these things are just superficialthey’re so stupid and he said and reallylike this parthe said marketing basically isdiagnosing the problem creating astrategy then tactics and if you watchmy show yesterday if you didn’t youshould go back there it’s on YouTubeit’s um it’s on periscope it’s onLinkedIn links are there one of thethings that our modeling system does isit shows you a lot of anomalies it showsyou odd stuff and so it gets your mindgoing to what could be the reason and wecan compress the time you know in normalcalm waters we like to look back a yearto the prior season and that kind ofworks you know it kind of works well andyou see you see how last year’s resultsgive you insights into this year andthen we you know pick the right namesthat’s what we dobut he said there’s also tactics thattactics can be split into product placepromotion and price and that’s what Ilearned when I was learning marketingway back in the 80s I never studied inthe 70s when I was in college sorry butwhat’s going on is that the coloring anddepartment is everybody else callsmarketing focus only on one of the fourand they really only focus oncommunications okay which really isn’tany of those thingsand he said I used to call itcommunication and you know you gottathink beyond that that’s and so he givesa couple of case studies this is thegreat part okayhe said that let’s you know think of howto add value have I been saying that hesays you’re not going to come up with asubstantive tactical effort unless youstart thinking on those four p’s sohere’s a couple of companies that helikes uber eats okayuber eats not unknown to you probablyhas made major changes to its deliveryprotocol cysts and support systems andwhat it does is it’s paying therestaurants faster so that they gettheir money back because they are theyare they are having cash flow issuesright it costs money to keep the lightson it costs money to keep the doors openor not or take out tough to heat up theburners and to pay the rent all thatcosts money and I don’t know if thegovernment gets this or not I don’tthink so because I don’t think they’veever really had a business and that’sprobably why Trump and others that havehad businesses are fighting so hard tofigure out a way to get most of us backto work maybe not me because you knowI’m a marketing guy okay but they’realso giving the restaurants freepromotional coupons and has dropped mostof the upfront costs okay but the bigthing is access to the revenue on adaily basis it’s good for patrons it’sgood for deliveries it’s good forbusiness he points out that LVMH handsanitizer you know the the boozecompanies and the perfume companies aremaking hand sanitizer he says LVMHdelivered 19 tons of the stuff beforeeven the news got out so rather thanrunning a big announcement likeBudweiser about their 5 million which isyou know nothing that’s like what oh geethe lint in my pocket I’ll give you thatbut there’s still it’s appreciatedit’s better than putting on Emmershalls’ on empty ESPN slots so thecompany so think of somethingavoid communication if you want but dosomething worthwhile and now here’s acouple of really good case studies inIceland somebody came up with the ideanot not the country but thebargain-basement retailer said let’s letthe elderly customers shop first there’sa couple of reasons why this makes a lotof sense so you can get in if you’reover 65 or something you can get in from8:00 a.m. to 9:00 a.m. okay and what Ilike about that is you know thelikelihood of me who has a pretty goodassessment of my and my family’s needsthe likelihood of us trying to carry out700 cases of toilet paper are slim we’rejust going to buy what we need and if wehave some assurance that we’ll be ableto get in firstlater we’ll only buy what we need rightwe’ve been through these crises beforewe know better rightI keep wondering who’s buying all thetoilet paper in Hartland because I’m notgonna do it you know and a woman wasthere and we were hearing rumors aboutit my wife came home with one or two andnow we’re very frugal about it butrestricting a first hour of trade tosenior citizens is brilliantly simpleand you know what I’d like to see isanother thing look up on my Pig cardthat I’ve had for 20 years or more rightI probably my pink card goes back almost30 years I worked with Dominic’s finerfoods on there on there I think itstarted as a check cashing card back in1988 so let’s let’s take the grocerypoints like frequent flyer miles youknow and and give a little pin out tothe people that have that have that haveaccumulated more than a million grocerypoints in the thirty years they’ve beenshopping at your grocery and let them infirst tohow about instead of letting somebodywith a with a container truck back up tothe back and take out all the toiletpaper I don’t know who’s buying it I gotanother suggestion which is even bettercoming down here that’s a good oneI’m gonna call my I’m gonna call my theguy who owns a pig today and tell himthat okay a danish supermarket said youcould have one quick sanitizer at 40Korona three quid you know two dollarssomething like that and then it offeryou know I don’t know what size anywaythen it said you can have as many as youwantbeyond that for a thousand Crona okay sothis is 350 quid that’s like two hundredfifty bucks or something like that fastmath don’t ever try and do math on thefly it’s it’s uh it’s like two and ahalf times whatever this note to it’slike 200 times that okay so yeah solet’s say let’s just say 500 bucks buywhatever you want okay what it does isit prohibits unless you have great needbut it’s no it’s going to basicallyprohibit that unless you’re reallyreally scared and then have at itbecause then they can afford to do moveheaven and earth to buy more of them nowthe problem that we have of course isthat somebody will come go out of thestore come back in go out and store comeback in so I don’t like that but itmight have worked it puts a littlefriction in the process so we can havesome fun with pricing and say you canbuy one or you can buy two it’s going toget beat to be more okay don’t justthink you know mark points out that mostpeople we used to we used to be vitalgive vital input into the major pricingdecisions you know we helped Dominic’sfiner foods in Chicago beat back CubFoods from France the first time cub hadever been defeated in a market and wedid it with zone pricing and with ABCpricing both both the distance to thecub store competitively and analysis ofthatand the level of what kind of acommodity as specialty items didn’t godown at all maybe went up a little theyou know stuff a lot of people buy butnot necessities stayed about the sameand the commodities matched KUB penny bythe pani no one else did that all therest of them did was Cub went down 6%the average home no consumer can spot athree percent two to three percentdifferential and will and it will make adifference okay so they go six and thenwhat happens is the other the othergrocery stores went down four or threeor two or gradually they would go up andthen cub would go up and would alwayskeep a three percent differential andhave a big and then and then the theregular grocery stores would have a bigprice add and when you walked into Cubit would show the competitors price adin the newspaper and cub would write inbig marker their price over the top ofit and show you every place where cubwas giving you a better dealyou know what kind of ads we ran we werein ads we were in the one I remembermost is this huge strawberry one bigbeautiful strawberry they looked allover the world to find artists that werewere super good food artists and it washand-painted a hand-painted huge superstrawberry in the newspaper I think weeven did it in color and basically saidwe care about produce more than anybodywe care about you know Italian sausagewe make our own Italian sausage I don’tknow if that was one of them but I knowmy wife for years was Dolly’s and so wetotally changed the game plan and webeat Cub right now Dominic’s come soldout a big chain okay so so Icelanddidn’t give anything away free it justrewarded their longtime customers weneed to be thinking of that and the ubereats you know don’t know and pricing isleverage marketers you need to get backin the game marketing is not justtelling a story well told or the truthwell told it’s also thinking aboutcompetitive advantage and how do ileverage what I’ve got have a great daylike and share stay safebye bye oops