retail advertising

Best Buy Default.

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I love making predictions.  When I started disagreeing with Barry Judge, CMO of Best Buy, a few years ago about marketing and brand management, implicit in that disagreement was that Best Buy would have earnings troubles. You see, Mr. Judge jumped on the pop marketing band wagon proclaiming “companies don’t own brands, consumers do.”  My response was this view was lazy and opened the door for disorganized brand management. Even a number of P&G digitists were agreeing with this fallacious notion.

Best Buy’s net income is down 30% this quarter, all due to price cutting.  If your name is Best Buy and you ask customers what they want they’ll say “coupons and low prices.” If you don’t create another value for your customers they default to price.  And when customers default to price you’re not marketing, you’re simply selling.

Mr. Judge and his army of Twelpforcers and sales assistants needed a plan. They were in the right neighborhood (providing assistance), but bounding about without a motivation.  Had they a plan, had someone at the top managed the brand rather than turned it over to the masses, Best Buy would be killing it now as we slide step out of recession. 

The good news for Mr. Judge is it’s not too late to fix this thing. He has more data, more inputs and more mindshare than he knows what to do with.  If he organizes his house with some serious brand management chops, next year Best Buy won’t be covering up price tags to fend off the smartphone price scanner apps, they’ll be smiling with gold teeth. Peace.

T-Mobile Advertising is Working.

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Right now, T-Mobile’s advertising is the best in the category.  The way it integrates print, TV and web is beautiful, the art direction is constant, and spokesperson Carly Foulkes has been managed brilliantly.  Never tarted up, always positive, always girl next door, Ms, Foulkes and agency Publicis Seattle are building a place in our brains for this price shopper 4G mobile brand.

As ubiquitous as this advertising is, it’s not Geico annoying.  Not AT&T message meandering or Verizon techno mappish. It’s a clean, retail brand imprint and it’s beginning to work.

Creative advertising dudes (less so dudettes) will snark at this comment saying the work is as creative as chipped nail polish, but from a brand management point of view, in a muddled market, this work is moving phones.  And T-Mobile doesn’t even have an iPhone.    

Imagine if T-Mobile changed its spokesperson every couple of ads.  Or tried to compete with Verizon by employed a lot of red in its color palette. Or rather than hammer home price it showed all the cool phone innovations (okay, they do a bit of that on TV).

If the AT&T purchase goes through next year, don’t be surprised to see BBDO morph the campaign Ms. Foulkes way.  They won’t cut over using the Magenta color the way they did using Cingular orange, but they know enough to keep the price work clean. Or we might just see Publicis hold the retail business and cede network and inno to BBDO.

T-Mobile has organized its brand and kept to the plan. That’s why its numbers are creeping up! Peace.