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Archive for May 14th, 2010

The Demise of Horn & Hardart Proved the Old Axiom: You’re Never the Greatest, Only the Latest

Friday, May 14th, 2010

by: Geoff Ficke

One of the pioneering brands in the fast food business was the venerable Horn & Hardart chain of automat restaurants. Started in Philadelphia in the 1890’s by partners Joseph Horn and Frank Hardart, the stores became hugely successful. The restaurants were famous for their unique food delivery system and iconic interiors.

The chain quickly expanded from Philadelphia to Manhattan and their location on Time Square became a tourist attraction. Horn & Hardart was famous for displaying their entrees, sandwiches and desserts behind little glass windows. The customer placed the correct change in the money slot and the door was then unlocked and the food removed. As soon as a serving was taken another was placed in the compartment by hand.

The automat was the precursor of the modern fast food restaurant. The Company expanded aggressively in the Atlantic region and at one time, during the Depression, operated over 150 stores. They popularized the phrase “Less Work for Mother” and take-out food.

And yet, Horn & Hardart went into a steady decline after World War ll and closed its last remaining outlet in 1991. What happened? How can an industry leader and trend setter become so inconsequential and obsolete that it goes extinct?

Joseph Horn died in 1941. Three generations of the Hardart family continued to run the business until the 1980’s. As so often happens when visionary entrepreneurs pass from the scene there is often a loss of focus and drive to stay ahead of competitors. In the 1960’s fast food restaurants became ubiquitous and as the population became more mobile, Horn & Hardart did not react to changing consumer buying and eating habits.

In marketing consumer products and services there is an old adage that always holds true: “You are never the greatest, only the latest”. As the great baseball pitcher Satchell Paige often said, “Don’t look over your shoulder, someone might be gaining on you”. Marketers, entrepreneurs and product innovators must protect their position in the market by constantly improving existing product and by introducing new products that bring consumers back into stores for their wares. In every business category from retail, to auto manufacturing, to cosmetics to airlines, and more, there are endless examples of once mighty industry leaders that have been replaced by more nimble, forward looking visionary companies. These new business leaders too will fall if they do not respect and react to this oldest of marketing truisms.

If When – Two Often Crippling Words

Friday, May 14th, 2010

by: Geoff Ficke

Words matter. How we express ourselves is the most important indicator of the type of person we are and the type of life we lead. In my work as a marketing consultant I have the opportunity to meet hundreds of people each year. They are usually attempting to bring a product, service or idea to the commercial marketplace. I rarely physically meet them, most contacts being made by mail, phone or e-mail. My only gauge of their capacities, abilities and passion for their project is what I can glean from their spoken words.

Two words that always indicate an excuse, or series of excuses are about to be thrown into play are “If” and “When”. “If” is the forerunner of self-justification for inaction in almost every instance that this unfortunate word pops up. “If” I receive the inheritance I will proceed. “If” I can keep my job I will be able to pull the trigger. “If” the bank will give me a line of credit I am in.

“If” is a word that is employed by people who will always be dreaming, not doing. People who meander through life and awaken in their twilight years and regret having never gotten in the game are addicted to the word “If”. I find the loss of time and blown opportunity to be tragic.

In the 21st century poetry is not the most popular form of written expression. And yet, the great Nobel Prize winning British writer Rudyard Kipling has left us a dazzling ode to success and happiness in his classic poem “If”.
“If you can fill the unforgiving minute
With 60 seconds of distance run”
Give this still so relevant poem a read. Better still print a copy and refer to it often. It offers the antidote to excuses, justification of obfuscation and laziness that cripple so many otherwise talented people.

“When” is another word that denotes an annoying impediment to making progress! “When” the time is right I will decide. “When” I sell my ranch I will make the move. “When” my dog gets over the flu I will be better able to concentrate and make a decision.

Minimize the use of these words. I am confident that the less the words “If” and “When” are utilized the greater one’s personal and professional results will become. The person who minimizes the use of these words will make far fewer excuses for their circumstances and enjoy a more fulfilling journey through life.

Recently I was presented with a wonderful product in the hardware, Do It Yourself space. The product has immense potential. As we reviewed marketing strategies, distribution channels, international sales options and branding we grew more excited. As a project analysis was prepared for the client some red flags began to pop up.

The most glaring was that he and his partner had been working on the project for almost a decade. When asked why the dawdling, they replied with a series of “If” and “When” excuses. We passed on the product.

The same week, we were introduced to another home improvement item. It has great novelty and will be successful. However, it does not have the quite same universal potential for huge sales volume that the DIY product enjoyed. Nevertheless the creator is passionate, realistic and aggressive in pursuing his spot on store shelves. He does not make excuses and he will succeed.

We chose to work with the second product inventor and passed on the first. Our thinking was guided by the words spoken as we interviewed each presenter and queried them on all aspects of their consumer products. Consider how you represent yourself verbally in every situation, personal and professional. The words you choose to utter speak volumes about your attitudes and ambitions.

Duquesa Marketing Engaged to Manage USA Launch Of Beauty Wonders Inc. L’Espoir™ Skin Treatment

Friday, May 14th, 2010

Florence, KY Geoff Ficke, President of Florence, KY based international branding, product development and marketing consulting firm Duquesa Marketing announced today that his Company has been contracted to manage the North American retail launch of Beauty Wonders L’Espoir natural skin treatment line of products.

“We are approached almost daily with new cosmetic and skin treatment offerings”, said Mr. Ficke. “Most do not offer enough novelty or performance features and benefits to succeed in the marketplace. L’Espoir™ is a real game changer. The product not only works, but works utilizing a novel advanced natural herbal stabilizing process that enhances some of the most exotic, expensive and rare raw materials ever blended in topically applied skin care products”.

“In order to launch in the United States and be successful in that most competitive market, we knew we wanted to invest in the best talent we could find to manage the campaign”, said Mr M.M. Serhan, CEO of London, England based Beauty Wonders, Inc. “We are thrilled that Geoff and Nancy Ficke, Principals in Duquesa Marketing, have agreed to collaborate with us to bring L’Espoir™ to North American consumers”.

“We are planning to launch L’Espoir in wide USA and Canadian distribution late in 2010,” said Nancy Ficke, General Manager of Duquesa Marketing. “Beauty Wonders products are widely distributed in many international markets and enjoy great consumer loyalty because the products work exactly as promoted”.

Duquesa Marketing specializes in consumer product sales, marketing, product development and branding. The Company offers over 40 years of experience in USA and international product placement.

How Not to Achieve Product Placement In Big Box Retailers

Friday, May 14th, 2010

by: Geoff Ficke

Yesterday I received a call from a prospective client with an interesting Do It Yourself home improvement product. The product is novel, priced right, well made, possesses unique features and consumer benefits and has absolutely zero direct competition. It should be a slam dunk to achieve distribution in any progressive big box retailer, shouldn’t it? Uh, not really!

Years ago retail chain store groups and department stores reviewed products on an appointment basis, and most provided open buying hours one morning each week. Anyone could get in line and receive a hearing from a buyer, maybe there would be interest, or maybe the introductory meeting would be brief, but the innovator at least had a fighting chance. Today the opportunity to walk in the door of a major retailer, gain an appointment and make a proper presentation is becoming as rare as the dodo bird.

Blame it on the internet. Blame it on retail consolidation. Blame it on a lack of professionalism among today’s merchant class. Blame it on scale. But realize that getting in front of decision makers with your innovative new product is a real uphill trek in today’s frenetic retail client.

My prospective client with the interesting DIY product had approached the obvious retail targets of opportunity with gusto. By the time he contacted my consumer product marketing firm he was fairly well beaten down, confused and afraid. He simply could not get past the gate keepers and receive a fair hearing from the decision makers that make or break new product innovation.

The first thing to recognize if you are seeking a meeting with today’s retail buyer is that it will be very difficult, not quite impossible but difficult, to obtain a traditional sales presentation with a category buyer or merchandise manager. You are competing with dozens, if not hundreds of competitors all seeking that meeting and hope of lucrative product placement on store shelves. There is only so much space on store shelves, in warehouses and in retail logistic links.

Your approach will be treated very much like any cold call. Consider when you receive an unsolicited telemarketing phone call at home. What is the typical response: joy or disdain? We all know the answer and so it is with a buyer receiving an unsolicited offer from an enthusiastic marketer excited about their unique product opportunity.

So how does the product innovator break through the filters and receive an opportunity to present their wares to decision makers? We utilize several different strategies that, in essence, back door our way into the buying suite.

The most professional and direct method is to participate in trade shows. Industry and category specific trade shows are attended by decision makers precisely because they are charged by their managements with discovering exciting new products. They are travelling on the stores expense account and are expected to return with something very new.

Trade show participation is an opportunity for innovators, startup companies and small businesses to look far larger than in reality they are. The opportunity to present new items next to established products and companies conveys a certain layer of solidity and appearance of prosperity. As retail buyers travel around the floor of a trader show it is likely that they will view your offering. Networking opportunities abound at trade shows. Business cards are exchanged. Hands are shaken. Introductions are made. Sales collateral is provided. The opportunity to directly demonstrate a product to a buyer in a highly charged environment is invaluable.

Once contact is made, and interest is expressed, it is almost always a given that the opportunity to schedule an appointment is offered. The ice has been broken. Your face, name and product have been impressed upon the buyer. He knows you, at least a bit. Take advantage of this personal contact, you are no longer a cold calling nuisance.

Another option for penetrating big box retail store shelves is what we call the “local option”. I have written in detail about this strategy before. It works. District or regional managers of chain stores typically have the ability to write purchase orders at the local level for products of local origin. They actually love to discover these regional gems, in many cases to rub the corporate nose a bit.

We place product in a group of district stores and support with on counter point of purchase aids and a bit of local cable television. In addition, we create a publicity campaign targeting local media. Awareness begins to build. As re-orders are written, we extrapolate a national sales model, based on the district stores actual sell through performance. When these numbers are projected against the national store count we now have hard performance figures that are unassailable. The marketer is no longer presenting a product based on assumptions.

The local district or regional manager is always keen to tout this discovery to the national merchandisers. This endorsement of a product is invaluable. It is solid “Proof of Product Life”. The door is now open at the corporate level to present your program and receive a proper hearing from the powers that be-the buyers.

Another tool that is not utilized often enough is the simplest: sales agents. The days of road salesmen calling on each little town and shop are long over. Retail consolidation has made it imperative that sales representatives build strong rapport with the big box retailers that make or break products. They live off commissions that only increase with volume. Salesmen are always looking for new products that burnish their relationship within buying offices.

The only way to grow your business is through successful sales efforts. Remember ABC = Always Be Closing! It is essential that you utilize every option and opportunity to put yourself and your product in front of buyers.