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Archive for April, 2009

Domino's Pizza Conover, NC Disgusting Behavior:10 Corporate Response: 0

In an unbelievably slow attempt to limit the damages from a “prank” on YouTube, Domino’s Pizza waited almost 48 hours to respond.  Now the entire brand has been compromised, not just a single unit.

The videos, four in total were taken down from YouTube but available if you want to make yourself ill at this blog. They feature a guy putting cheese up his nose, wiping a dish cleaning sponge on his backside and generally doing things we have all wondered about or seen in movies.

I remember when Los Angeles KCBS TV station Channel 2 did an expose of dirty restaurant kitchens. All Los Angeles county restaurants’ business fell off a cliff.  Did the CMO and the executive team of Domino’s not know this?

nose-cheeseThe two culprits were fired and arrested on felony charges even though they say it was a “prank.”

After hiring hundreds of employees, I have to tell you – I doubt this was a prank. Both of these employees were in their 30′s and clearly the store was open and orders were coming in. We’ll never know if the food was absolutely never served or not. You can read all about the incident at the NYT site at A Video Prank at Domino’s Damages Its Brand.

The point is much like my post on Monday about Amazonfail, you cannot be in business and think anything will just “calm down,” if you wait it out.   Look at last fall when Motrin made a reference to baby harnesses being painful and how quickly moms got on Twitter to complain.  They too took too long but that didn’t speak to mom’s fears of food safety.

Did Domino’s not “get” how this could affect all of their franchisees? That young people, the ones most likely to be on YouTube would say, “OMG – you have to see this?” and send to all their friends?

You can see Patrick Doyle, Domino’s President, YouTube response where he oddly looks off camera here.

Short post. Short point.  Two employees destroyed a brand. Avoid the Internet at your own peril.

Oh yeah and hiring the right people makes a difference too.

Get Out of the Yellow Pages Small Businesses!

The WSJ reported in an article, R.H. Donnelley Uses Debt Grace Period by Tess Stynes that the Yellow Pages giant is struggling with debt.  The story does not mention why but smart retailers know it is because no one uses them anymore.  If you are, get out!  And beware, with their sales in trouble their salespeople will be even more aggressive to tell you why you have to pony-up again. Don’t do it!

ypjpgThe Yellow Pages was a smart marketing move when it was the sole book from the monopoly of AT&T before it was broken up.  The Yellow Pages slogan, “let your fingers do the walking” was brilliant when it came out in 1962.

A 2004 survey by Opinion Research Corporation found that 55% of people used the Yellow Pages to seek out local merchants, compared to 12% who used Internet search.

That’s of course when using a FAX was cutting edge technology.

Nowadays, who uses the Yellow Pages? Maybe your grandmother looking for a plumber. Maybe.

Forget the out-dated information and demand – who wants to lug one of those 5 pound books up the stairs to the kitchen?  Mine are always tossed into the recycle bin. Not to mention the number of dead trees per listing.

You want to be where customers are looking for immediate answers – that’s the Internet. While I could go into all the ways you should be on the Internet, today I want you to visit Google Local. google-local-logo

Google Local is a feature of their maps and using GPS-like tracking of a customer’s logon location, delivers local results for their search.  While you can do a Google Local search and find your business, many times that information is minimal. Go to Google Local and register your business now.

Take the money you were giving Donnelley and use it on the Internet. Customers are still going to let their fingers do the walking, it is just on a keyboard, not thumbing through pages.

Amazonfail Why Retailers Should Care Gay and Health Books Dropped

An article in today’s WSJ by Geoffrey Fowler And Jeffrey Trachtenberg titled, Amazon Error Removes Gay, Health Books from Search details how Amazon mysteriously  removed more than 57,000 books from its sales rankings and main search page including adult, health, and mind & body books.

The Seattle company was then hit by criticism from the authors of those affected books, mainly those focusing on gay themes. You might say, “So what, that Internet site doesn’t affect me.”

What interests me and should interest you, isn’t what dropped off the search or what Amazon’s problems on an Easter weekend were, it is how all of this was found out.  Through Blogs and Twitter.

amazonfail_dv_20090413114448jpgAuthors and bloggers were tagging their posts with the keyword “amazonfail” as they discussed the incident. Much of the outcry started after a publisher, Mark R. Probst, blogged about a message he received from an Amazon representative after noticing that rankings disappeared from “Transgressions” and “False Colors,” two new gay romance books.

I’ve written a lot about the happy side of social media, how attracting people is harder than being where they are, how instant communication leads to productive relationships and how fans are able to follow you.

The lesson from this episode is how quickly the word can spread about something you do wrong to a customer.  It’s not limited to sites like www.yelp.com or www.TripAdvisor.com. Another good blog can be found about amazonfail at Jackie Huba’s site

Thirty years ago when I was selling Nunn Bush shoes at their store at 7th and Grand in downtown Los Angeles, I had a customer open the door, take off his shoes and throw them at my head  – about 30 feet.  He told  me the “damn soles wore out in a week and if you don’t replace them right now, I’m going to complain to the Better Business Bureau.”  The older gentleman I worked with collected the shoes with the holes in the soles, threw them back at the guy almost striking his head and told him to “stay the heck away or I’ll call the cops.”  We never heard a word or saw the guy again.

Nowadays that same guy could have entered his information into his Blackberry or iPhone with “#Nunn Bush shoes” to a Twitter post or “Nunn Bush shoes” as tags in a blog post or even started www.ihatenunnbushshoes.com.

My point isn’t that he could have been right or wrong. (Though as a side note I will tell you leather soles wear three times faster when they’re wet so don’t, as that guy did, wear thin Italian loafers during the rainy season walking on concrete.) It is the tools he and any disgruntled customer now have to influence customer opinions about your business and how quickly it can snowball.

Ignore the Internet at your own risk.

Real Merchants Know Men Wear Pink Underwear In A Recession

The boutiques will outlive the department stores because they are still merchants, we’ll get to that shortly but first…

jockeypinkJockey underwear reported this week that, “sales of pink underwear are soaring as men use their undergarments to cheer them up in the economic crisis.” Jockey claims that sales of their colored Y-front briefs have rocketed by an average of 60% over the last six months – and the baby pink pairs have sold more than any other, seeing a 62% boost in sales over the past three months.”

The UK’s Daily Mail website concludes, “If claims that men are perking themselves up using their underpants is true, it adds a new dimension to lipstick economics – the theory market-watchers attribute to sales of small cosmetic items rising in a recession, or the fact that hemlines rise and fall with the economic state of the country.”

Hold that thought a moment …

finn-portlandI was in Portand, OR for a presentation with the Oregonian newspaper about 6 weeks ago and stumbled on Finn in the upscale shopping district, the Pearl.  The whole store was merchandised with a merchant’s sensibility. Clearly an upscale men ‘s clothing store, it stopped your eyes from wandering with overstuffed, handmade, free-trade toys, antiques and other knickknacks that made you want to browse.

I was surprised to see a large display of fancy socks and underwear. The owner came up to me and told me socks and underwear were becoming the coolest thing to accessorize your wardrobe. “Really?” I asked. “The crazier the better,” he said. footshoesockWe chatted a bit more about the socks made by Duchamp and I ended up getting a pair myself (at right.)  That was the only time he was behind the counter.

Contrast that experience to the one a week prior at Bloomingdale’s, the store who used to be all things trendy, smart and fashionable.  Walking through the men’s aisles I found, like most department stores these days, the gang of three employees talking.  In the men’s furnishings section there were some interesting items but to this day I still have no idea what they were used for or why they were on top of a counter clearly for sale. (You can try to make them out on the counter to the left in the photo below.)

After staring at them for 2-3 minutes, I looked around for help.  Sure enoubloomingdalesgh, the gang of three was behind the castle expecting me to approach so they would graciously stop talking, lower the drawbridge and cross the moat to wait on me.

And here’s the point of this post: it is the boutique operators who will bring us out of the recession. They are the ones who are truly the merchants looking to wow us with new products and convince us to try new things.  They are the ones giving a pulse to America.  They are where you should be shopping.

Contrast the latest trends Jockey reported to your local Macy’s, Lord & Taylor and other mid to upper tier stores where all you’ll see displayed face-out will be a sign, “25% off Jockey” with a mountain of white.

You want to get more customers in a recession? You’ve got to earn it; even if it means you have to be knowledgeable about men wearing pink underwear so you’ll feature the best-selling, colorful ones upfront, along with colorful socks.  And to do that, you have to get employees out from behind the castle and talk up your products.

You can’t invent trends -unless you were Starbucks in the early 90s -  but you can ride them. Merchants know this.

Bob Phibbs, the Retail Doctor, has helped thousands of independent businesses compete by using his approach to business and not discounting.  He speaks to groups large and small how to grow sales in a friendly, engaging and entertaining manner.

Using Recession and Bailout In Retail Signage Gets Results

An article in today’s New York Times by Peter Khoury titled, Welcome to Hard Times, the Sales Pitch detailed how local merchants are riding the recession alluding to it in their street signs.  One touted, “Wine Bailout Sale 100 Wines Under $10.’’  Another, my personal favorite on a sandwich board  advertising a burger special that includes chips and a drink said “‘Stimulus Plan Special, You’ve spent over $1 trillion on pork! What’s $10 more for an Island Burger?’’

Were these big discounts? No, they just put things in perspective with a wink. What I think is so smart about these merchants is they made you look.  Isn’t that all signs should do?

The words “recession” and “bailout” are just vehicles to hang your message on because they are topics in the news.  Yes there has to be value there but these merchants are creatively looking at engaging their customers who might pass them by – and results have been very good; some in the double digits.

When I was in New York one time a guy was shouting at passersby to come into his electronics shop.  As I walked by him he said, “Hey mister, you dropped your wallet!” I turned around to stare at the dirty concrete sidewalk while grabbing my back right pocket as he said, “made you look!”

I said to him, “Smart man,” with a wry smile.  He said quickly as I continued walking, “No man you’re the smart one – you still have your wallet.”  Which of course made me laugh.

Made ya look.

In a world crowded with signs hawking everything from unlocked iPhones to 70% off retail to 2-4-1, you should use every means possible to shake customers from their numb existence when walking past your business.  If a “‘Recessionista Sunday – all dresses  come with a free mimosa,’” gets people to consider your business – why not join them with “recession” or “bailout” in your signage?