Let’s start with this. Many of us have been going to OR for 20 years or more. A lot of business has been done. Thousands of relationships established. And many good times had. The Show remains relatively healthy despite the economy’s downturn. 

Now, let’s address the new situation. Winter Market was not full. Tens of thousands of square feet lay vacant. Everybody, even the best friends of the Show, knew that the announced 5% decrease in attendance was a joke. 

Many retailers did not come to Salt Lake City due to travel costs, and the simple fact that they don’t need to come to the show. Why? Reps will gladly come to their stores and present the lines. In fact, reps have been on the road showing the lines to both retailers who attended the Show and retailers who didn’t. 

Media is also cutting back so coverage is thinner. 

Consolidation is another force at work. The larger manufacturers continue to buy the smaller brands in hopes of filling holes in their product offerings. Often the larger manufacturer is seen as not authentic in a certain area, and thus the bucks fly.                                                                                                                

Retailers are also in the act, buying up smaller retailers to either eliminate competition or expand into other geographic areas, or both.

What does this consolidation mean? It means a chance for manufacturers to cut down on booth space. It also means a chance to scale back on the number of people going to the show, which both brands and retailers are doing.

Just last month that very conversation about booth space took place at one company that had purchased a smaller brand. Should we consolidate into our booth, but give them their own identity? Or should we continue to have that brand autonomous and have them keep their booth space?  Well, dollars and cents will settle that debate.  And that probably means consolidation into one booth. 

Another company opted out of WSA. It figured that each rep appointment with retailers would cost the company $1,000. No way to recoup those costs. 

Trek and Specialized have pulled out of Interbike. Cannondale did too and used the savings to bring retailers to the factory for several days of hands-on product introductions, business discussions in a calm setting, and entertainment. 

One of the largest line items in any manufacturer’s budget is Outdoor Retailer. OR charges a lot. And it says it delivers a lot. And it does. Show starts on time. Runs smoothly. Great programs. So far, the value falls on the side of OR. However, during a recession hosting a smaller group of retailers and presenting empty space or the perception of empty space means trouble. That leads to further examination of the return on investment. With a dwindling return comes manufacturer and retailer defections and that eventually will lead to failure, ala NSGA and the Super Show. 

OR needs new excitement. New energy. It needs to update and expand the business model and increase the return on investment…for everyone. 

We present that idea next time on Channel Signal.

Came across this video that captures the breathtaking growth and power of New Media.

Here it is. 

What does all of this mean? It means that at no other time in our lives is there greater opportunity for those willing to risk, and no greater risk for those who seek safety. 

Patric Welch writes a blog called Noobie, an advice column for people wanting help with technology. Welch wrote a piece about how Best Buy broke his son’s heart on Valentine’s Day. Welch had ordered a Madagascar DVD on BestBuy.com and it wasn’t delivered with the promised “plush penguin” gift. His son was very disappointed. Here’s what he didn’t get. 

Here’s the reply and the course of action from Best Buy.

Dear Patric,

I’m Jason, Community Connector for Best Buy. We frequently review our customers’ blog and forum posts to gain insight into their experiences to identify areas of improvement.

Valentine’s Day is a special occasion for many individuals and I am sorry to hear you were unable to get your son a plush penguin. I realize it can be frustrating when you do not receive the service you expect and I am disappointed we did not meet your expectations. I would like to invite you to discuss this issue with us further by emailing me at jason.communities@bestbuy.com. Please reference issue number 57801142 and we will do our best to assist you.

Sincerely,
Agent Jason
Community Connector

Best Buy has a team of 10 community connectors that search the Internet for customer relations problems. So Jason went to work after a search pulled up Patric’s problem.  Several online discussions proved that Jason was having a tough time finding any penquins.  Suddenly Patric found two “plush penquins” in the mail; one for each of his sons. Patrick and his sons were ecstatic. Best Buy also credited the Welch’s account for the DVD. 

20 comments have come into the Noobie site, all expressing admiration for Jason the Community Connector and Best Buy. One has even said this story is turning around his impression of Best Buy. 

You cannot buy this. And this is New Media at its most powerful. Where real people from brands help customers by searching online for complaints, reaching out and solving the problems. Now Best Buy has a powerful ally. Do you think Patric will recommend Best Buy to his readers and customers when suggesting technology to solve their problems?

And how about the viral component. This story was emailed to me by a friend. Major media picked up on the story and ran with it. Other bloggers, like me, are picking up the story. And how many people will be talking about the “plush penguin” story in conversations. How many people will congratulate Best Buy? How many Best Buy employees will hear about this. And what kind of positive momentum will this little story sponsor across all distribution channels for Best Buy. 

How many unsatisfied customers do we have in the outdoor recreational space? How many hundreds or thousands of customers are out there talking and writing about certain brands due to incompetence from either online partners or brick and mortar retailers? How many products are stashed in closets, their customers disgusted with the fit, performance or both.   

Don’t have a program to uncover many of these problems? You should. 

Here’s a belated Happy Valentines Day, Best Buy. You earned it.

Strong storylines have been the backbone of the great religions, kingdoms, and peoples throughout history. They were the glue to unity, cooperation, and belief. The Power of Myth by Joseph Campbell maps out a compelling case for this. 

As we entered the industrial age, brands also became big players in society. Some brands have adhered to a strong storyline and have prevailed.  Others have had no storyline, and consequently have been whip-sawed by every turn of event in the road.

Here’s why strong brand storylines are important as we enter into the New Media era. 

1. An authentic brand story leads to a credibility that resonates with consumers both

 online and offline. 

2. The brand story puts a human face on your company, which allows many others to associate.

3. A well told story is viral. It travels nicely through all channels of New Media. 

4. The story is the critical starting point for all great communication initiatives.

5. A solid story is timeless, and therefore cost-effective. 

6. A brand story demands continuity no matter the management team. 

7. A brand story sponsors loyalty which means many will defend when under attack.  

Develop your brand story. It will pay huge dividends as we move into the future.

Skittles, the candy company, is trying something different, again. When you login to the web site www.skittles.com up comes the Skittles Facebook page. 

Last night Skittles pulled the first idea, which was to have the viewer go to the Skittles Twitter Page when visiting the home page. Well, that lasted for about a day. At first, consumers inundated the site with solid and fun stories about Skittles. “My dog loves them.” ” I love the Skittles rabbit!. “I take them with me everywhere.” Stories that fueled the brand forward. 

Then the chatter turned negative. Pranksters got going on the site and it became unmanageable for the brand. Too much negative and not enough positive to shine a good light on the candy.

So, now you automatically go to the Skittle’s Facebook site. True, tighter security here and the community will police itself better.

But let’s look at what the company is really doing…going straight to the online conversation.  It’s like the company says, “you want to know something about Skittles? Here. Here’s everything being said about Skittles at this very moment. Join in.”

Interesting approach. Surpass all of the boring brand messaging about the company and just jump into the Skittle mosh-pile. Skittles put all of its brand messaging in control of the consumers.

And it backfired. How long can people talk about Skittles? It’s fresh now, but will the rapid-fire comments keep coming? I doubt it. And in a week or two when this is over and the conversation dies down, or worse turns negative, then where is the juice? 

The Twitter initiative really failed because it was not authentic. Certain consumers sniffed that out and they went on the attack. Others piled on.  In short, consumers will not play ball all day long if they think they are being used, and in my view that is what happened.  

Now if Skittles complements this new Facebook initiative with well placed, well timed authentic content, and that content fires up more conversation, well now we have something. 

What kind of content?  Producing more company sponsored YouTube videos, creating a contest in every state to find the most interesting character who loves Skittles, publishing new company green programs or sponsoring grass roots events.  And use many distribution channels; Facebook, Twitter, Flickr, YouTube, etc. 

Pump content into the new media channels. Make it real. Make it fun. Make it interesting. And make it brand building. 

Consumers are still in control, but the brand is now a big authentic player in the conversation.