Tag Archive for 'economy'

The 55 Days of Christmas

Published
by
Kristen
on November 20, 2008
in News and Smart Talk
. 17 Comments

“It [was] beginning to look a lot like Christmas” much earlier this year.  In fact, on the day of Halloween it was easier to find candy canes and marshmallow trees at the grocery store than fun-sized trick-or-treats.  By November 1st, garland and wreaths were going up at the stores.  Two days later, Starbucks switched the white cups out for the red ones.  TBS played “How the Grinch Stole Christmas” last Sunday night!

The consumer spirit of Christmas has been extra elongated this year – most likely the attempt by corporate America to rake in any cent of additional revenue with financial fears mounting by the minute.  Already, Target is far from the bull’s eye.  Lowe’s net is exactly the chain’s name.  Circuit City’s power went out.  Apparel stores aren’t even stocking up on seasonal staff.  Detroit – just a disaster. 

But is rushing in the season rushing in the spending?  There’s something missing here and it’s not the sight of snow or the sound of a sleigh bell.  There’s no organization and certainly no authenticity coming from the private sector.  Instead, the efforts appear desperate and kind of pathetic.  Everyone’s trying so hard to sell but consumers don’t seem to be buying into it, at least not this early. 

Holiday goods hold value because they represent something special and how can something remain special when it’s widely available for a longer period of time?  I mean, look where that got fruit cake…

Sowing Your Wild Oats

Published
by
Kristen
on October 21, 2008
in News and Smart Talk
. 12 Comments

Surpassing reduced-calorie coffee cake to become the number one food item throughout the entire company-wide chain, OATMEAL has become Starbucks’ most successful food launch of all time.

Now the analysts are asking WHY?  It’s not that cold yet outside.  It costs about 25% more than most other choices in the big, glass case.  And well, it’s oatmeal for Pete’s sake!  The descendent of grandma’s porridge!  A food synonymous with an old man topped with fluffy white hair and a colonial hat!

Maybe it was the genius title that emerged from a Seattle-based brainstorm: “The Perfect Oatmeal” leaves little room to contest quality.  Or is it the 1.5 million free coupons that Starbucks sent out to its rewards-program members?  Or the frequently flashed fact that oatmeal lowers cholesterol?  The packaging is trendy?  Are oats 100% recyclable?  Perhaps customers are just too intimidated by the word “piadini” to attempt pronouncing that instead during the breakfast rush?

Or is it something as simple as service? 

YOU don’t just want oatmeal.  YOU want it with brown sugar, nuts, dried fruit toppings or a combination.  Three minutes of seeping later, YOUR oatmeal is fully prepared, ready for YOU to enjoy.  It’s exactly like ordering the original coffee beverages that propelled Starbucks’ initial growth.  It wasn’t a complicated idea.  YOU order YOUR latte decaf, skim, not too hot, with an extra shot…  The baristas are at YOUR command and while YOU are in control, YOU don’t have to do a thing except literally taste the fruits of YOUR hard earned money. 

As businesses are fighting to keep clients and win new customers in these trying economic times, what kind of over-servicing will convince them that your same ol’ offering is more valuable than ever?  How will you put your oatmeal at the top of their shelf?  

  ———————————————
Inspired by “Starbucks’ Surprise Success: Oatmeal.”  By Emily Bryson York.  Advertising Age.  13 October 2008.

Keep Your Change

Published
by
Kristen
on October 15, 2008
in News and Smart Talk
. 4 Comments

Obama’s platform is “change you can believe in.”  McCain promises “change is coming.”

But it seems that change is already underway in the average American’s lifestyle.  According to a study published in Advertising Age, 60% of respondents said they’re more likely to take lunch to the office.  Even more dramatic, 80% of respondents said they’re postponing their vacation plans.  72% will spend less on clothing, 83% less on entertainment… 

It’s no surprise that The Wall Street Journal reported this morning that retail sales dived 1.2% last month – the sharpest drop in three years.

Are you tightening your business’ budget?  Where will you spend less in your personal life?  At a time when the American political front is obsessed with CHANGE, CHANGE, CHANGE, what plans are you making to keep yours?

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Inspired by “Consumers Curtail Consumption.”  By Matthew Creamer.  Advertising Age.  6 October 2008.

Inspired by “Retail Sales Tumbled in September as Producer Prices Fell on Cheaper Oil.”  By Jeff Bater and Brian Blackstone.  The Wall Street Journal.  15 October 2008.

Economy? Econo-YOU!

Published
by
Kristen
on September 26, 2008
in News and Smart Talk
. 10 Comments

It’s the economy, stupid.

And it’s the economy, smarty.

Our nation’s current crisis happens to be a great leveler and whether you dropped out of high school or graduated from an Ivy League, you’re qualified to be hit.

There’s no need to elaborate on the problem here.  If you have a mortgage, stock portfolio, retirement plan, newspaper, job, wallet, then you know what’s going on.

There’s no need to go into the cause either.  Talk radio hosts are pointing enough fingers already.

But why don’t we at least discuss the solution because $700 billion of our money is about to bail out the financial industry.

Congress and the President collectively know a lot about economic trends and political policies.  But who are the real experts when it comes to the marketplace?  WE THE PEOPLE!  It is us, the tax-paying and law-abiding businessmen and businesswomen, who determine how the markets play out, if our organizations will fail or succeed, and whether or not we will make our own American dreams come true.

Will a bailout prevent a lesson from being learned in the C-level suites on Wall Street or the poorly refinanced homes on Main Street?  What happened to the idea of laissez-faire capitalism?

Or do we come together for the common good in a time of crisis and work out a plan to help those in need as a recession will affect us too?  Should survival of the fittest only be applied to Darwinian nature?

The government’s role in our economy is unclear right now.  What should Uncle Sam’s job description be?