Saturday, April 25, 2015

Zoom. Zoom... Zoooooooommmm.

I made a presentation this week to a conference of Greek Orthodox priests. 

Not kidding.

The presentation was all about generational groups and how they interact with their peers, parents and friends.

The priests got very tickled about the comparisons between Boomers and Millennials.  Most of the priests were Boomers.  Two were Millennials.

Boomers find Millennials to be frustrating… that is, until its emphasized that the Millennials were procreated by the Boomers.

After the Millennials, I next put up a slide about Zoomers.

Then the room went quiet. 

Finally, one of the priests turned to his peers and said that this is where leadership needs to truly use creative thinking to reinvent the programs that have been “updated” to better embrace the GenXers.

A second priest quickly chimed in and said that the Zoomers are a catalyst that might drive a complete reinvention or restoration of the where their church has been and what it needs to become.

I know that the news media along with the MBA-driven business community is fixated right now on Millennials. 

God love them – the media, business and academic world has finally stopped using the label of Generation Y. 

I don’t write this blog to self-proclaim and self-reinforce, but I will note here that ten years ago, I started driving clients with the impending impact of the Millennials. 

Some tried to correct me to embrace the label Generation Y.  My reply was simple… that label doesn’t work.

Zoomers is a term that will soon stick too.

For readers, Zoomers embraces the generation that was born in the year 2000 through 2014-2015.  Some debate whether 2014 was the end-cap year. 

My bet is that the end-cap year will be 2016 since it’s the last year of the current presidential term here in the U.S.

So, to ground us… the Zoomers range in age from 0-15 in this calendar year.

Next year, the first wave of the Zoomers will be getting a driver’s license. The first wave will be entering college in about 3 years from now.

Many talk about the Millennials as being the generation of technology. 

Okay.. but the Zoomers are the generation of mobile technology and information.

The Zoomers never knew the world existed without the high-speed Internet, laptops, iPads, and smart phones.   And… that the technology wasn’t part of the every day world – in the home, car, restaurant, grocery store or even the classroom.

The Zoomers never knew the world existed without Terrorism.  They never knew there was a time when a person could actually go and welcome someone getting off an airplane at the arrival gate.

The “cold war” and “soviet union” is what they hear about in history classes, and the Taliban, Iran and ISIS are what they believe to be the “enemy.”

Just as they cruise the Internet and converse with friends through texting, they live their lives checking in and checking out and checking back in again according to their personal agenda and headset.

They check in and check out with friends, groups, classes, beliefs, opinion sets and brands.

Education and aspiration is self-defined vs. instructional from the outside.

What I write as a “blog” is something that they have replaced with what’s termed as Vlogging – commentary and exchange via video versus words.

Entrepreneurship is what they believe to be critical to business versus an MBA. 

They live in the “here and now” of reality… vs. the aspirational expectation of the Millennials.

When I spoke to Greek Orthodox priests, I highlighted how Zoomers challenge brands that are driven on the high ideals and paint the perspective of life as “peace, love, and harmony”

I showcased Abercrombie & Fitch and how the brand is trying to avoid Chapter 11 as teenagers are no longer entering their world of the ideal.

Zoomer teens not only cannot identify with the brand… they find it “stupid.”

In today’s Wall Street Journal, the showcase story in the business section has the title, “Abercrombie Is Dialing Back The Sex.”

The article talks about the “high times” back in the 90s when A&F was so hot with the Millennials and this ideal world of perfect bodies and having whatever you want.

Pssst… it’s really not the sex that the Zoomers fail to connect with, it’s the ideal world of perfection… which for Zoomers does not exist.

My bet is that we are still at least five years out before business leadership even begins to talk about the Zoomers. 

And I actually hope that the MBA-Sniffing Zoombies – or excuse me – the MBA Corporate leadership – continues fueling their corporate “think tanks” with Millennial inspiration.

I shared with the Greek Orthodox priests that I like the term Zoomers and the play off of the conventional term Generation Z because this smaller size generational group will pass by the much more sizable Millennials way faster than thought possible in conventional thought.

They are much more adaptable, realistic and technologically advanced than the Millennials.

And embracing this generation as a priority is what is in my game plans for the next ten years. 

Now, how more swag can it get! 


(p.s. …go ask that third-grader texting on their iPhone what that means)

Sunday, March 29, 2015

Its All About Igniting The Brand

This past couple of weeks, I’ve spent a tad more time in front of the TV set than normal.

Part of it is driven by the season finals of Bravo’s Housewives series. 

Part of it is driven by the NCAA basketball games.

During the time when many escape for the kitchen or bathroom, I actually stay glued to the set during the commercial break.  I like to see which brands are doing good work and which brands convey junk.

There’s a lot of junk out there… and a lot of it is produced by the brands that many perceive to be high rollers.

For example, Coke has a series running right now that I'm really not too sure just what Coke is trying to convey.

The spot last night was produced by Wieden + Kennedy, an agency that has a great record of igniting brands. Maybe Wieden has been around for a while and at the age where Viagra is needed to fuel the creative energy.

Knowing Coke and its corporate culture... I bet that the AEs at Wieden are tell the creative teams to "Just Do It" as the Coke execs tell 'em to do it. 

Here is the description of the ad from iSpot.tv…

“Out on the beach there's a guitarist with a snapped guitar string, a nun with a towed car, a man rescued from a fire, a guy who just took a long sea trip and a man whose hot dog stand got hit by a comet. Even in these times of trouble, we live in a generous world, and no matter how rough things get, there's always someone out there that could use a Coke a little more than you.”

Okay.

The visual from the ad adds even more to it… a nun handing a bottle of Coke to ahalf-nude Adonis-body builder guy being held by a fireman in front of a burning hot dog stand hit by a comet.

Not too sure that the common man that drinks a lot of soda drinks can identify with… and emotionally ignite by… this brand conveyance.

Another ad that has been running a bunch is a Buick ad that features spying neighbors who cannot figure out just what car the neighbor next door is driving.

iSpot.tv doesn’t list an ad agency that produced the ad and instead it just lists Buick.

Something tells me that this just might have been written and produced by an “internal ad agency” at the Buick. 

I don’t know if any of you reading this blog hear others talking about Buicks, but I don’t hear folks talking about Buicks much at the coffee houses or wine bars … shoot for that matter, not even at the McDonald’s and Kroger.

Reaction to this spot.  Here's a few of the commentary made online about the spot…

“Really sick of this commercial… I am so over it.”

“Buick should be embarrassed”

“Is Buick that f***** stupid?”

“Anyone living in a community like that would probably never by caught in a Buick… that’s a BMW neighborhood.”

“I don’t think that the woman is gazing and desiring the car, but instead the guy next door… she’s lusting for him!.” ... That’s further supported by more than 20 “agrees” and like commentary on the website.

Well if Buick produced that spot internally to save money, my suggestion is that they don’t really need to conduct any more focus groups, but instead just read more of the online commentary.

While there’s a lot of junk out there running in the TV mix, the main purpose I post this blog is highlight a couple brands – winning brands – that get it.

Back when I worked with Jerry Cronin, the former creative chief from Wieden + Kennedy that crafted Nike’s Just Do It campaign, I’ve related a few times in this blog how Jerry responded to a question about what makes a great ad, a great ad.

He replied, “a great ad so compels you to want to experience the brand that it makes you crave it...even if part of you is saying its really not all that great.”

Forget about filling up the ad space with crap about how the product is made and its attributes.  Forget about rational thoughts.  Forget about trying to take the podium and explaining to people how they should feel. 

Instead, discover those nuggets of insight that provide a perspective of what’s driving people to engage and seek out like-brand encounter experiences. 

And then illustrate the brand around what’s sought.

One of the spots that I cannot get enough of that makes me want to jump in the car and go there is the Pure Michigan series. 

And I am not alone. 

There was a story in this past week’s Wall Street Journal that Michigan is quickly replacing Vermont as the state people crave to go to during the summer because of its scenery, food and environmentally green offerings.

The ad that aired last night was a spot that focuses on the foods of Michigan. 

When I first saw it, I genuinely thought it was going to be a high-end wine brand… but it wasn’t. 

It was about a place where I wanted to be.  An experience I wanted to experience.

When I saw that the ad was for Michigan, the left side of my brain very quickly attempted to qualify it all… shoot, right now its cold up there… that’s the state where Detroit exists… that’s where manufacturing has a long history…

BUT WAIT STOP… my right brain took over.  By the close of the spot, I actually went over and pulled up VRBO to see what cottages I could rent up there this summer.

McCann-Erickson produced these spots… from apples to fishing… from light houses to golfing… the ads emotionally ignite and build a bonding with the brand.

And then I saw a new Apple ad for the new Apple Watch produced by TBWA Worldwide. 

Apple is famous for running great ads that convey its EIP.

There isn’t any copy or voice over in the ad.

It’s simple. 

It’s 60 seconds long.

You never once get bored.  Instead you become almost hypnotized by the music and visuals.

It never declares how you should feel and what should be your take-aways.

And if you really, really live the Apple culture… the spot closes nearly the same way as the Apple spot that only ran only once back in 1984. 

I am not a big investor in watches, but an Apple Watch is a must have and my count down to its premier has begun. 

I end this blog by saying quickly…

These ads I cite probably cost a lot of money, but a lot of money isn’t what’s need to drive the ignition of a brand.

You have to delve into seeking out the gems of insight.

You have to be brave enough to trust your emotion.

You have to let go of the rational side of business. 


And then… only then… can you catapult your brand forward.

Sunday, March 1, 2015

The Mirage To Keep Millennials In Jobs

I know that the term “breeders” is rooted among the GenXers. 

After all, it’s the GenXers whose main mission in life has been to raise that picture perfect family not torn apart by extramarital affairs, mother abandonment, corporate loyalty or divorce.

BUT… when we look at many Boomers today as they fade quickly from the corporate scene, they express a strong desire to breed a higher level of mission… a visionary pursuit among the Millennials quickly taking over the pilot seat.

When I read a lead article in today’s Wall Street Journal, I knew that it just had to be the driver of my next entry into the EXPERIENCE blog post. 

 The title of the article is, “I don’t have a job, I have a higher calling” with a subtitle, “Some employees balk as many firms from motorcycles to accounting firms step up talk about changing the world.”

Hail the corporate vision statement.  Hail the Boomers’ commitment to Peace, Love, and Harmony. Hail the Millennials marching to the beat of the corporate bongo drum.

The aspect of being in business to serve the consumer need… well heck, its not about them, its about us.  Its all about what gets us up, arriving to work and not seeking out another job. Its all about us... me!

The author of the article captures factual truth…

“Millennial professionals are demanding more meaning from their careers because work takes up more of life than before, thanks to longer hours, competitive pressures and technological tethers of the modern job.  Meanwhile traditional sources of meaning and purpose, such as religion have receded in many corners of the country.”

Many Millennials grew up with Baby Boomer “helicopter” parents.  The parent’s hovered over the child and what they wanted, they got.  And when they failed, well, they got more.  Peace. Love. Harmony.

So we have KPMG’s CEO John Velhmeyer making the statement, “We can see ourselves as bricklayers or cathedral builders.” 

I wonder just how many of those KPMG execs have ever even shopped at an Ace Hardware store let alone own a power tool. My bet is that few of those Millennials recently hired at KPMG took a shop class.

And Tavelzoo CEO Chris Loughlin declaring their vision statement, “If we all traveled, there would be significantly more peace on Earth.”

How many of you in your recent travel rated that hotel you stayed in a perfect “10?”  How many of you believe that the airlines are all out for comfort and service?  When was the last time you saw a security person actually smile and say, “thank you, have a good day”?

Here’s another great snippet from the article.

“Juniper Networks has spent much of the past year cutting costs, laying off workers and fending off activist shareholders.  Two days after announcing a fourth-quarter loss, managers at the technology company gathered hundreds of employees in a massive tent it calls the ‘aspiration dome’.”

Okay. If we can’t keep employees in their job and stop them from fleeing a sinking ship, we’ll just rally them around a self-declared vision and they’ll march to the beat of our drums.

When I read articles like this, I get more charged about my job.

Not because I’m out to save whales or make little doggies wag their tail or save a tree from being cut down or making everyone go to bed at night with a full tummy.

The idea of crafting an emotional vision statement is not problematic – in fact, it’s a critical component of bringing a brand to life.  

But when the vision is defined within the context of internal leadership looking within their corporate walls and has little-to-nothing to do with their customers, its something about which both peers and consumers can only laugh.

It gets even more crazy when the drive to do it is not to meet the experiential needs of consumers, but rather keep Millennials in their 24/7 jobs.

I get charged about my job because these companies are moving forward, but forward is slipping closer and closer to ultimately Chapter 11 in their novel of corporate vision.

When I tell companies and groups that their vision statement needs to be one and the same with their consumer’s emotional needs, those that get it, not just survive, but move profits forward.

I write this from a Starbucks located in the great city of Brookhaven Georgia, the newest city carved out of the Atlanta metro.

While the city of Brookhaven has some of the wealthiest homes found in Greater Atlanta, we also house one of the highest concentrations of first-entry Hispanic/Latinos.  They make up just under a third of our population.

I find that part of Brookhaven more inspiring than the fancy homes and our Chamber of Commerce needs to embrace it more.

A very large percentage of Brookhaven’s Hispanic base is made up of Millennials.  I admire how many get up early in the morning and go to work or seek out a job for the day. 

When I ask them what drives them, the answers are nearly all the same.

“I am here to work and do a good job so that some day, I have a house and can raise a family here and send money to my relatives back home.”

Their “higher calling” is really not too high.

I know where I will put my money on just who will reach their vision. 


I also know where I will put my money on just who will still be working… and working hard… in a few years from now.

Thursday, February 12, 2015

When The Ship Starts Sinking

President Mikey’s butt’s in trouble… and a bit more than 90 days ago.

Fourth quarter sales dropped 21% at McDonald’s and global sales are down.

Going over to the developing country with the golden arches isn’t too golden any more.

In the weekend edition of the Wall Street Journal, there was an article about McDonald’s Asian sales entering into the “grind down” mode.  The article went on to talk about how a release of sales information the first of the week would further turn the spotlight on a corporation that’s facing disturbing performance.

Before I go too much further in this commentary, I want to make sure that readers understand that what McDonald’s is facing is not something that only McDonald’s is encountering.

The WSJ article that ran over the weekend talked about how mature brands are facing edges of cliffs. 

On Monday, Radio Shack declared bankruptcy.

Last month, Coke laid off more than 2,000 corporate staff and its sales – and profits – continue to roll down hill.

Target is in the process of closing down Canada.  My bet is that we will hear about that brand shortly and its slide down the slopes.

McDonald’s ad agency, Leo Burnett, is just starting to air a new ad campaign.  Mikey even made commentary in the WSJ weekend that he’s looking forward to the campaign helping to turn around sales.

The ad agency folks are smiling up there on Michigan Avenue humming along with the song “I’m Lovin’ it” in the new spots as they deposit those production checks in the bank. 

As those customers go to McDonald’s and face a menu of more than 100 items, place orders with individuals who cannot figure out just how much change to give back and then wait there as their order is prepared with the “made-ahead” microwaved-to-order ingredients, I’m not too sure that many can related to those new spots. 

BUT… what the heck, those agencies are getting their buck and that McDonald's CEO can always go out and put the account up for grab and the prostitute-agency holding companies will be out there with their fancy clothes and digs before that ink dries on the Facebook post.

In today’s WSJ there’s a guest editorial written by the past McDonald’s CMO, Larry Light.

When I saw the editorial, my first thought was that this was going to be a very defensive article and Larry was going to be all out defending what’s going on with the McDonald’s marketing as it faces the challenge of social media and the Millennials.

BTW… that’s a common line of define that the prostitute-agencies and the “in-the-trenches” CMOs make.

After reading the editorial, I wanted to send Larry a congrats letter on “seeing the light.”  What he says in the editorial is smack on track with what brands like McDonald’s, Coke, Target and other mature brands need to embrace.

Here’s in a snapshot what he says in the editorial…

Stop the hemorrhaging – if a brand is losing its core customer base, ask the fundamental question first… is it because they are “dying off” or because the brand experience that they have sought is not being delivered.

Focus on the direct competition – who’s stealing away the share directly… yes, Chipotle is reaping in Millennials, but McDonald’s is not Chipotle.  It’s like a 60-something Boomer that thinks those BOTOX injections will make them look like a Millennial FOX News host.

Restore your claim to fame – in this case, restore fast-food to fast.  If Target’s claim to fame is “cheap, hip and cool,” I am not so sure how baby clothes and diapers is going to reel back in the folks that used to shop there. 

Keep the brand experience defined and focused – if its burgers and fries, stick to burger and fries.  Monkey see, monkey do is so true in the CMO rooms of brands today.  Last night I saw a new Domino’s Pizza “brand” ad that declares that Domino’s Pizza is no longer the brand.  Now its just Domino’s and the spot goes on with pictures of chicken wings, sandwiches, salads and even nachos. 

The loons reside in those corporate and prostitute-ad agency headquarters.

Re-energize the plan to win – Larry uses the phrase “laser focus on the customer” and goes on to comment that the customer focus has been lost by large global brands in the last decade.  I agree 100%.

What I would add to Larry’s list is simple.

Get your butt out of the office -- Go talk with customers and others like your customers that don’t even get near your brand.  A colleague of mine just spent 60 days up in Chicago with McDonald’s ad agency working with them on a project for another client in consumer package goods. The creative team, the account planning team, the client management team never once went out into the Chicago ‘burbs and walked into a grocery store.  They never once bought the product and cook up a lunch using it.

Realize that the ad agency cares more about their glamour than yours… A fundamental way of understanding this is to challenge them on coming up with something that your customers are emotionally craving and not what you told them or what they dreamed up. 

As I wrote in the last blog, I am not in the business to do dumb stuff.

I am the first to admit that every year in February, I get a tad down-in-the dumps.  I get tired of the cold nights, the darkness at 7pm and the clients that seem to go back to doing the same dumb-butt things that they did the prior year.

But then I get a chance to go out and take a couple of field trips and talk with real people.  I hear more about what’s real rather than imagined or declared.  I see people actually engaging with brands. 

I experience the brand experiences.

For all the money in the world, if I were locked up in a corporate headquarters or residing with a prostitute-ad agency, I would not last long.

My bet is that those CEOs and CMOs like those cited here in this blog will soon experience not lasting long too. 


Sunday, February 1, 2015

The Super Fantasy Of Mass Brands

Just returned back from the grocery store… a Kroger “mega-store” to be specific.

Went and got the pizza, wings, nacho chips, brownies, olives, cookies and the Red Bull for the Super Bowl party tonight.

Every year a small group of my friends get together to cheer on the team we place money on. 

I know that many are favoring the Patriots, but I cannot cheer on a team that cheats to win.

Like many, we are more attracted to watch the commercials than really the football.  And… we often gather with expectations of seeing some brands doing some great stuff, only to be disappointed quickly by junk.

Junk that some CMO allocated at least a million to produce and another $4 million for the :30 spot.

The last couple of years, I have made commentary through this blog on the best commercials and the worst commercials.

This year, I am not going to do it. 

Part of the problem is that mass brands are struggling to stay afloat.  McDonald's sales are on a sliding decline.  Coke laid off 20% of its staff.  Chrysler's barely surviving after a government bail out.  Sears, JC Penney and Radio Shack are on IV.  Even Target is facing a not-so-rosy future. 

Ad agencies hate it every time the reality is brought to the table.

Most of the commercials that will run tonight are in the movie, soda drink, beer, and automotive business.  Viagra, Levis-Wrangler and men’s cologne spots will be in the mix too.  After all, football still is a men’s sport. 

Sure, we will see a couple other more “niche-brands” advertise. But then after the spots run, wonder whether the CMO is having an affair with the ad agency A/E. 

My purpose in writing this blog this year is to shed light on the fact that mass marketing is truly dead. 

Now I quickly raise observation how many other marketing leaders agree… but they also quickly make commentary about how social media is changing the dynamics of marketing today.

I know many may think that this is blasphemy, but social media, in many ways, is actually another diverted form of mass media too. 

Shoot, how many of the “high and mighty” ad agencies and social media-specialty agencies post their Facebook pages and seek to boost their “likes” from just about anyone that’s out there that happens to hit their page.

For years – wait for decades now – I have been harping to client and colleague alike that there really are no mass brands.  None.

And yet, this past week, I have had three meetings with some new venture companies that are declaring that “everyone” is their target market. 

There’s a story on the front page of this week’s Atlanta Business Chronicle about two guys starting up a new social media site that are aiming to become the next Facebook. 

By the way, both of those guys are barely legal age to drink. 

Not here to necessarily stop the youthful aspirations of Millennial entrepreneurs, but you would think that the editorial staff of the Atlanta Business Chronicle would have a bit more of a realistic vision.

The social media world has moved quickly from the first couple of brands on the scene to the evolution of niche brands. 

Just this past week, there was a story that ran in the Wall Street Journal that Pinterest is struggling to get a broader diversity of both men and women to interact on the website. 

Not too many guys… even my fellow gay buddies… have scrap books.

Maybe the Atlanta Business Chronicle is thinking that these two guys can bring back those faded times of the past when Atlanta was "high-tech" with Mindspring and WebMD.  

A past client of mine in House & Home – a flooring brand – spent a lot of money with EXPERIENCE in the development of a market segmentation model and the identification of four very distinctive market groups – all great opportunity – but all distinctively different from one another.

Even when the client was making the investment, there were members of their marketing and corporate leadership that had difficulty with the idea of “splicing and dicing” the marketplace. 

Their media buying firm was beside themselves.  They kept asking over and over and over again… why are we splicing up the marketplace and targeting media when we can get a whole lot more reach and cheaper prices if we buy it on a mass level.

(By the way, if you are using a media buying firm right now… you need to make an appointment with your doc to get a health and mental check-up)

This past week, I visited the flooring brand’s website. 

No niche target to be found.  They had pictures of their products in settings that ran the gamut from the “Ethan Allen look of old” to the “Haverty’s look of today.”  They had created an online resource center for individuals that had lots of hype about it being online, mobile and electronic. 

If there was any targeting at all, it was the targeting strategy of their past re-channeled in an “online” context.  

The only niche targeting I could see was that families are still a center point of text and human interaction with their product and their charity outreach channeled around a national pediatric care hospital.

So much for implementation of smart marketing, niche targeting and investment return.

My inspiration for writing this blog was actually not the Super Bowl Game tonight.

My inspiration came from the current issue of Dwell Magazine. 

I will make a $100 bet that the editorial team of Dwell Magazine is NOT on a mission to win over all the home dwellers out there – shoot, not even all the Millennial home dwellers. 

Dwell has a very defined target group that transcends conventional demographics and enters into the psychographic and geodemographic dynamics that drive a lot of what we do here at EXPERIENCE in crafting brand strategy with our clients.

There’s an ad in Dwell for Lindal Cedar Homes.  

Lindal is a brand that’s been around for a loooonnnngggg time.  The company is probably best known for their home building kits they packaged for second homes – a lot that were based on the old “A-frame” style -- birthed in the ‘70s.

Both the pictures featured in the ad and event the short copy was geared totally around the Dwell niche market segment of today in 2015 and beyond. The architecture is more 2015, its eco-green, the plans are actually smaller in square footage and foot-print and the feel is a blend of the past and today. 

Lindal Cedar Homes has changed with the times and has crafted a brand to deliver around a niche market segment.

This blog is actually the first one to post in 2015. 

This year I turn 56 years old. 

I have made it a mission this year to ask prospective clients a simple question when I receive a phone call or we sit down for coffee... tell me about who makes up your brand’s audience group potential. 

If I hear terms like “everybody,” I will ask a quick follow-up question... does that represent opportunity or obstacle in moving your brand forward.

Simple. 

You can bet what the answer is to that question that will lead to a continued conversation. 

By the way, the other thing about the current issue of Dwell that got my attention is a feature story on a cool Millennial couple that engineered a house with a roof top deck up on Capitol Hill in Seattle. 

As I said at the beginning of this blog… I cannot cheer for a team that cheats to win. 

Roll Seahawks.



Friday, November 28, 2014

House & Home? Grab The Dramamine.

Okay, where’s the motion sickness pills.

I need a handful.

Readers of this blog-logue know that I get a lot of my press perspectives from the Wall Street Journal and the cable news nets.

On this Black Friday shopping day, the WSJ posts an article complete with graphs and charts titled, “New-Home Sales Still Sluggish.”

Ahhhh… just last week the WSJ and the cable news nets talked about how much the housing market is coming back.

And then a full month ago, the story was about how new home sales are not moving as fast as predicted.

EXPERIENCE works in the House and Home category. A lot. That’s coupled with my personal passion for home décor and style.

Earlier this month, the Brookhaven Chamber of Commerce had a nice get-together at MODA Floors & Interiors new store location in Brookhaven. 

MODA is a past client of mine that I worked with in retail expansion and development.

Today’s WSJ article cites stats that show this calendar year might not even be as good as last year in new home sales.  Even home real estates sales are stagnant.

Just over a year ago, one of my House and Home clients that invested a lot of money in my crafting a target marketing model for their corporate brand and both U.S. and Canadian retailers, elected to follow the lead of a Washington firm that lives and dies by new home sales.

The Washington firm are the experts according to the client. They are the ones that have the "inside track" on builder and contract housing sales. 

There had been a good share of turnover on the corporate marketing team.

The new comers had risen through the ranks and a good number came in out of the sales field.

God love the sales people. If they perceive that the model ain’t broke – or in need of a major overhaul -- they see no need to fix it.

See no evil… Hear no evil… speak no evil.

I will never forget this Washington financial modeling guy standing up at the podium and presenting a “refined” way of defining market groups that “would much better capitalize on the forecasted housing growth return.”

Course the corporate marketing team newcomers loved what they guy said.

Sales would come back.  He would lead them down the pathway to harvest the payout.

Shoot… all that hype that EXPERIENCE talked about in terms of “Blue Sky Working Families” and “Millennial Home Cocooners albeit Rental Cocooners” was just false.

And the need to re-adapt the full scope of marketing from inventory packaging to website content to in-store customer bonding to sales dialogue re-crafting were all for naught.

All that money and time and beta tests and in-depth customer modeling was for naught. 

The Washington experts were not involved.  And in just three short weeks, they had built the model needed to capitalize on the great housing revival the firm was predicting. 

Did EXPERIENCE not understand that the housing market – particularly new home sales – was going to hit the 2014 ground running.

The client even waved copies of the WSJ with articles saying that their number churning was right on track.

While much of the programming on HGTV is actually staged, I am the first to say that HGTV understands House and Home a bunch more than statisticians and financial geeks in DC and Wall Street.  There is more programming today about remodeling and renovation than new home building and design. 

As I have stated in this blog-logue and the annual Trendcast Reports, the MILLENNIALS ARE HERE.

Today’s WSJ article states that the Millennials are leaving their parent’s home and going through the rental stage.  The authors of the article then state that as soon as the Millennials lease for a couple of years, then the housing market will take off running.

Yeah… right.

In some ways, the factors that drove the rapid growth of the U.S. housing market… the post-WWII manufacturing boom, the surge of young families – Mom, Dad, Two Kids, Cat and Dog, the expansion of automotive and interstates, the image change of home mortgage debt vs. home pay-offs, the shift from the rustbelt to the sunbelt… have not only run their course, but are much more likely to replaced with new change dynamics than repeat. 

I am not a strong supporter of Global Warming.  And as far as Climate Change is concerned… I am the first to observe that yes, the climate does change… and change… and change…

The Millennials are no longer affecting the market… they are driving it.

The House and Home market is not going away.  There will still be a need for flooring, lighting, plumbing, gardening supplies and home furnishings in the future.

BUT… the market model will not be the same.  The past… is long past.

The rental market demands a different perspective.  Home remodeling will stream versus be start-to-finish like seen on the staged HGTV shows.  Flexibility in terms of room purpose and use will expand.  Millennials never knew much of a non-tech world, but they do crave it. And square footage will be less important -- no pun intended!

Many, many of my clients ranging from financial to healthcare to house & home to consumer package goods to travel-tourism-lodging are discovering that Millennials are not just a fluke.

Each year I issue the annual Trendcast Report that cites the top ten market drivers that will affect brands in the next year.

In the next few weeks, I will issue the 2015 Trendcast Report.  BUT… unlike past reports, the 2015 report will be dedicated 100% to the Millennials and the depth of how they are driving the marketplace and its impact in 2015.

Brands that embrace the Millennial change will win. Brands that cling to the past will soon discover that the mirages will not survive.  


And individuals who read the press about the housing marketplace need to take a Dramamine.

Saturday, November 1, 2014

McDonalds, Spooks and Scary Freaks

I am writing this blog on Hallow’s Eve.

This is the night of spooks and scary freaks.  I told a friend of mine that its always a fun evening … but for those of us working with many business firms today… there’s many of spooks and scary freaks we encounter every day on the job!

Boo. 

Looking back across the last year, I quickly have to say that in 2014, I’ve encountered a bunch.

Some attempting to wear the sign of “Advisory Services”… others “Ad Agency”… others “Brand Strategy Group” … funny how so many attempt to assist and guide businesses when, in reality, all they do is mix up concoctions that bubble and release steam!

Enough about the alchemists.

My drive in writing an article that was posted in this morning’s Wall Street Journal about McDonald’s.

Don’t know how many of the readers out there visit McDonald’s regularly.  I get breakfast at McDonald’s at least 2-3 times a week.  Hard to pass up a nice breakfast of two sausage McMuffins and coffee for less than $2.50 for the full meal.

As much as the food is good and cheap, the process of giving an order and getting the “fast food” fast is something that has bugged many this year.

I remember going into a McDonald’s and seeing food prepared sitting in bins that the person at the register could turn-around, place in a bag and hand over to a customer in less than a minute.

McDonald’s pioneered fast food.  But today, McDonald’s – and others that today wear the label “quick service” are finding that they are in trouble.

The last couple of months, I got out from behind my desk and actually went and talked to people on-the-streets about their thoughts and perceptions about fast food restaurants.

What they shared is reinforced directly by the Wall Street Journal article.

#1 – Fast Food is no longer fast.  Whether it’s a process flow issue, a technical communications issue, a mix of drive-through vs. text-in vs. person-at-the-counter order coordination issue… the service is not only not fast, its way too slow!

#2 – Corporate procedures and processes have created a blockade between the restaurant and customers.  There’s no local restaurant personality.  Comments and questions are channeled to corporate.  People no longer talk to people.  People have been replaced by corporate procedures, the Internet and mobile phones.

#3 – Product innovation at some of the fast food restaurants – and McDonald’s can take center stage in this act – has stalled.  Same-old-same-old is now just simply old.  Now I am the first to say that too many Quick Service Restaurant brands take a simple menu and make it complex as well as take a core focused deliverable and dilute it quickly… but lack of innovation is very problematic.

#4 – The Millennials are no longer in their teens.  As they have grown up and now coupling, their tastes have changed.  There are few exceptions with brands ranging from McDonald’s to Burger Kings to Taco Bell to Chic-fil-A that have arrived in the “here and now.”

The McDonald’s USA President, Mike Andres is quoted in the Wall Street Journal article a number of times.

President Mike would get a “C” grade if his commentary was actually an essay test.  He’s right about one set of commentary and wrong about a second set of commentary.

He’s right that the McDonald’s current regional structure needs some serious revamping. 

He cites directly how currently, McDonald’s groups the South with the Northeast as one region labeled the East. 

While much of the population of Atlanta is now comprised by folks not born in Atlanta, not sure if it’s the water that changes the taste buds, but “sausage gravy biscuits” that score well in Atlanta really struggle up in Rochester, Philly and Boston.

There’s a reason why Millennials champion “local indies” and “farm-to-table” dining options, and run from the BIG corporate chains. 

President Mike gets that one right.

However, Mike goes on to then talk about how McDonald’s needs to become more sophisticated in its digital technology to allow customers to order from their smart phone apps. 

First, not sure that too many folks resist getting fast food because they cannot go on their iPhone and place an order. 

Panera made a big to do about how it was doing away with some of its onsite people at the register and shifting over to mobile phone ordering.  The stores added a set of what appear to be IKEA-link book-cubicles where individuals placing orders through their smart phones can walk in and pick up their orders. 

While I cannot lay claim to what I see as full market research assessment, but when I visit Panera store sites around meal times, I have yet to see the cubicles filled with much of anything.

President Mike want to check out how many high-tech Millennials actually dine at McDonald’s... how many folks actually want to spend the time placing an order on a smart phone versus simply walking in and getting an order... how much time is wasted in taking an order and coordinating the time of arrival and just how hot is burger and fries ordered... for starters!

I remember back in my college days that the press featured a Laundromat that was also serving beer on tap and how that idea was going to forever change the way the 20-somethings would do laundry in the future.

Fast Food and smart phone apps might share the idea of “fast” in common, but not too sure that combining the two together is that smart of an idea.

If President Mike would send me an airline ticket plus some nice warm clothes, I would be happy to fly up to greater Chicago-land and show him how the Millennials are quickly moving out of the fun days of apps and into the realistic days of working 24/7 to have a place they call their home. 

In the annual Trendcasts that EXPERIENCE issues each year in advance of January 1st, we’ve highlighted the impact of the Millennials a bunch. 

Fact is simple.  They are no longer news.  They are here. 

Earlier today, I grabbed a bagel and coffee at an indie café in Athens, Georgia. 

While Atlanta lays claim to being the state capitol of Georgia, Athens lays claim to being the capitol of the Socialist Republic of Georgia.  Many of the twenty-something individuals that comprise Athens are not big fans of big brands and BIG Business.

When I complimented the owner of the bagel shop on just how good the bagel was, he quickly thanked me and then added, “we’re not in the business of selling corporate crap.”

As I preach from the pulpit a lot and if President Mike called me I would tell him… Get out from behind the desk, laptop and corporate meeting calendar and get out and have some good conversation with the people who you are attempting to build a bond.

There’s simply too many spooks and scary freaks that sit behind those desks!