Posts Tagged ‘Outdoor Industry Association’

Facing Forward

 

The last day of the OR Show is basically a throwaway. Many retailers are gone. Senior management is gone. Those still at the show are shopping for discounts and all are just waiting for three o’clock to break down the booths. Let’s open the Show to the public for the final day. Invite all of the bloggers, the influencers, and the public. Charge them 5 bucks at the door to see the new stuff. And then watch what happens. 

It will be jammed. Traditional media will cover the event, in advance, due to the newsworthiness of admitting the public.  Booths will be crowded with consumers asking questions. Athletes will be on hand to talk with the public and pose for pictures.  Bloggers and influencers will be asking questions, taking notes, and preparing to write reports as soon as they get home. And traditional media will be doing reports live from the show floor. The energy of Day 1 and 2 will not only have been restored, but doubled. 

And what about the retailers? They should be smart about this. Take the opportunity to invite all of their customers to the show for this final day.  Will customers get on a plane and get to the Show? Doesn’t matter. The very fact that retailers are inviting them as their guests on the Show Floor will only increase customer loyalty. And why not take the five top customers to the show as guests of that retailer? Work out the travel and lodging in advance. Make it work. Then take pictures of the customers on the Floor. Put it on the web site. And do you think those customers will talk about their experiences when they got back home?  Oh, and one more thing. Work a deal with the brands so that you can bring back some new product so all of your customers can get a sneak peak at next year’s offering. Make the OR Show a storewide event. 

Buy in from the companies will be automatic to this public day. Why?  Because it is their chance to talk directly with consumers. And consumers are direct customers because companies are now selling to them online. Influential bloggers should be identified in advance and personally invited to the booth for a product line review. Companies should know which of their best retailers are bringing guests to the booth and senior management should be on hand to greet them. Management, reps, pr, product development and marketing should be engaged all day long. Why? Because this is monster leverage. A company can create more marketing momentum in one day then in the previous six months. 

And OR? Its pr effort ought to be in high-gear pre public day. And then it should have the common sense to get out of the way. Let it happen. And then post public day, report the results. All good for OR. 

So, it’s time for all of us to face reality. Retailers can own the show for the first three days. On day four, open the doors and let the great unwashed in. The time for exclusivity is over. Over. The time for inclusion, openness, and a new business model is here. Every one of us will benefit.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Outdoor Retailer, The Recession and ROI

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.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

The Muscle of New Media

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

Here it is. 

YouTube Preview Image


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. 

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Why Storytelling Matters in New Media

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.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Skittles Uses New Media and Gets Torched

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.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Silence and the Consequences


 

Okay. I’ve thought a lot about this post. The Smartwool Experiment. If you don’t know what it is go to Beck Tench’s blog, The Smartwool Experiment .

You should read up. Why? Because if companies don’t learn this lesson it will happen to them in the outdoor recreational space. 

First, SmartWool is a very good company. Have followed it for years and have had personal dealings with many in the organization. Good product. Well managed. Environmentally progressive. A star in the Timberland Group. The company thought it was handling everything with the Smartwool Experiment just right. And then BOOM…things went wrong in a hurry. 

Here’s the short story. A young woman, Beck Tench, is a SmartWool fan. She buys the socks. Pays the price. Recommends them to others. However, she did notice that her socks were wearing out faster than she thought appropriate for the 18 dollar price tag. She started a blog and called it The Smartwool Experiment.

She writes a song.

Flickr Video

She writes SmartWool. Someone in customer service writes back saying the socks should last about a year. Good response. Honest. To the point. And then SmartWool writes another post to her, apparently from the product development or marketing department. 

“The SmartWool Experiment is a very interesting project. It feels good to see this work reinforce what we’ve observed, and validates all we’ve done in recent years to produce both more comfortable and more durable SmartWool socks. We’re going to try and do a better job at REALLY answering the question, “How long should my SmartWool socks last?”    

(EDITED BY KIRWIN HERE)

Ultimately, we could never predict how long any sock will last, as there are so many people using our products in different ways, with different habits, with different feet, with different shoes, in different climates, with different washing machines. . . you get the picture.

Here’s a list of things we’ve found can impact how long it takes to wear out a SmartWool sock:

  • Wearing them outside without shoes – Not recommended (though we’ve been caught doing it ourselves occasionally)
  • Wearing multiple times without washing in dusty environments – the grit they pick up will wear the fibers faster
  • Long toenails – This one is a killer, keep them smooth and trimmed
  • Wearing socks with footwear they are not designed for – Look at the wear pattern above the back of the heel in the “Evidence” video. These socks were designed with a heel zone that is much more durable than the portion of the sock above it. We see this type of wear when people wear socks that don’t match up with the footwear profile. A classic example of this type of mismatch would be a Converse All Star high top where the tight fitting top of the shoe is higher than the heel reinforcement in the sock. A sock and a shoe are a system, they need to work together properly.
  • Bleaching – Don’t do it. They’ll never feel the same again.
  • How often is it worn? – We wear our favorites more often. That means we wear out our favorites more often. We guess you will too.
  • Does the shoe fit? – Loose shoes will create more friction as you move.
  • Body chemistry – pH varies from person to person and during exercise”
(EDITED OUT THE REST OF THE RESPONSE)

Personally, I thought this response was fine. Explained why the durability of socks rests with individuals and their habits. 

Beck Tench replied in a video saying that she felt manipulated. In its first response SmartWool wrote that the socks should last a year. Now the story has changed and its up to the wearer.  She said SmartWool made her feel like she should take responsibility for the socks wearing out. And she should buy Smarwool’s new PHP socks for 19 bucks, which last longer. 

As far as I can tell SmartWool did not respond and basically became passive. And this is where the problem started. Beck was hoping for some kind of a response. Post. Email. Pick up the phone. Again, as far as I can tell the company fell silent. 

And The Smartwool Experiement continues to grow. Beck has published her 10th Episode in which she tries out Bridgedale socks that have been sent to her. Darn Tough socks have already arrived in the mail. Beck has published some consumer defenses of Smartwool, but the damage has been done. 

SmartWool had an opportunity to strongly participate in the Smartwool Experiment. Should have sent Beck socks and had her test them. Made her a part of a consumer product testing team. Hell, made her chairperson of it. Had her get others on board and build the team. Had the team report back about durability, design, comfort.  What a golden opportunity. 

Why did Beck feel manipulated? Why did she take it personally? Because she had a personal stake in SmartWool. She had bought many pairs. Had recommended them to others, and no doubt had many discussions about the socks. She believed. And she wanted to talk to her sock company about durability.  

Had SmartWool continued the dialogue, engaged Beck and explored durability together, the company would now have a disciple with a growing blog. An influencer who is spreading the good word about SmartWool.

If your a good brand, sing out for all the world to hear.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

What Does Selling to Ourselves Mean? It Means Change.

                                             See the Changes                                            

 She has seen me changing

It ain’t easy rearranging

And it gets harder as you get older,

Farther away as you get closer.

Words and Music by Stephen Stills

 

I’ve had people contact me about what “Selling to Ourselves” means. So I thought I would elaborate as it pertains to the outdoor recreational industry, and then address the changes that are necessary. 

Selling to ourselves means:

  • Manufacturers selling to the same retailers in the distribution system.
  • Retailers buying from the same larger brands as a safety net during a recession.
  • Brands employing the same marketing tools to reach the same outdoor enthusiasts.
  • Retailers marketing to their tried and true set of customers.              

 What happens then?

  • No new retailers (brick-mortar & online)  entering the outdoor recreational space.
  • Fewer new innovative small manufacturers. Money is hard to get, expensive and tough when the market isn’t growing.    
  • New consumers are not attracted to the market because it is shrinking
  • Interested new consumers have fewer places to buy.
  • New consumers have less choice when they do shop.
And the consequences?
  • Ever accelerating decrease of sales for manufacturers and retailers. (Once you start circling the drain, its tough to stay out.) 
And the solution?
  • More grass-roots local events to get communities involved in hiking, snowshoeing, boarding, skiing, etc. Take the sports to the people. Make it local. Make it family. Make it authentic. 
  • Build a new media marketing program that loads smart relevent content into the blogsphere so influencers and consumers can learn, become intrigued, and react. 
  • Build relationships with influencers so they take your brand to their consumers. 
  • Make all marketing programs interactive. 
In the spirit of this article being a short-read, I’ll need to stop here. However, the point is that companies can employ grass-roots event marketing to cost-effectively engage new consumers. (Do it where they live.) And companies can engage new media to carry powerful brand and product content onto America’s home computers, causing conversations in a much bigger consumer market. 
How does it all start?
  • By listening to what’s out there now. 
Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal