Corporate Eye

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Susan Gunelius

Susan Gunelius

Amazon on Track to Take Over the Retail World

amazon_boxAmazon opened its online doors as a book, DVD and CD retailer just 15 years ago.  Today, the site sells more books, DVDs and CDs than any other retailer, and large book sellers such as Borders are struggling in Amazon’s wake.

But media products isn’t the only slice of retail market share that Amazon has stolen.  2009 marked the first year that sales of other merchandise on Amazon surpassed book, DVD and CD sales on the site.  If business continues the way it’s been going in 2009, worldwide sales of other merchandise on Amazon will surpass worldwide book, DVD, and CD sales before the year ends.

There is no doubt that Amazon has changed the retail landscape.  As the New York Times cites, remember neighborhood bookstores, record shops and video stores?  Few remain in 2009 with more and more consumers preferring the convenience, wide selection and free shipping from Amazon.  Even mass retailers like Walmart are feeling the Amazon pinch.

But retailers aren’t the only ones feeling threatened by Amazon.  Even auction sites like eBay are seeing buyers shift to Amazon since Amazon now allows third parties to sell products through its site (Amazon takes 15% from those sales).  Both Walmart and Sears are doing or planning to do the same thing on their Web sites.  Other companies such as Target and Toys ‘r Us which partnered with Amazon to sell their products in the past are ending those partnership agreements and striking out on their own.

So was Amazon in the right place at the right time during its early days?  One could argue that, but Amazon succeeded in the early days when other online retailers did not.  Today, the brand represents online shopping.  It’s the go-to place to purchase just about anything — or at the least, it’s the site people begin their shopping research.

Amazon created a new online business model that competitors are only starting to copy.  Does Amazon have enough of a foothold in its market to disregard that competition?  So far, it certainly doesn’t appear that another company can replicate what Amazon has built over the past 15 years.

What do you think?  Can anyone threaten Amazon?

This sounds like a job for Google.

Image: Flickr

Adobe – Losing Brand Focus or Extending the Brand Wisely

adobe creative suiteThis week, Adobe announced it is acquiring Omniture for $1.8 billion.  Adobe is a brand known for making graphic and web design software products.  Omniture is known for making web analytics tools.  Adobe claims the acquisition will allow designers, developers and online marketers to have an integrated workflow from design all the way to tracking results.  The Adobe press release even alludes to Adobe software including “optimization capabilities embedded in the creation tools.”

What do you think?  Has Adobe lost brand focus with the Omniture acquisition or is this an intelligent extension of the brand?

It seems like a big stretch to me.  If I were an Adobe stockholder, I’d really need to be sold on this acquisition, and not because financial analysts are suggesting that Adobe spent almost twice as much for Omniture as they should have.  My questions about this acquisition are related more closely to the fundamental roles and personalities of people who use design software and people who use metrics tools.  These are two very different user groups — the left-brained vs. the right-brained, and I think most members of these two groups are very happy where they are and want nothing to do with the “other side”.  I can’t think of many designers who would jump up and down enthusiastically at the thought of integrating analytics tools into their workflows.

Suffice it to say, Adobe has its work cut out for itself in terms of brand positioning in the future if the company does plan to integrate design and analytics into its existing products.  To many people, they’re like oil and water.  Can Adobe fuse the two mindsets into a coherent package?  Can the subjective creative process marry the objective analysis process?  It remains to be seen if these two opposites attract.  Can Adobe succeed?  What do you think?  At a time when most brands are working toward contraction and strength from focus, is Adobe making the right choice to extend its brand to include a seemingly disjointed product?

Can design and analytics live happily ever after together?

Image: Flickr

PC Manufacturers Finally Ditch the Gobbledygook

computer storeConsumers everywhere can breathe a sigh of relief, because purchasing a computer just got easier.  After years of focusing marketing messages on the technology that powers desktop computers — messages that average computer users couldn’t easily relate to their own lives — computer manufacturers are taking a page from Apple’s marketing plan and ditching the gobbledygook jargon that did nothing to connect with consumers.

It’s about time.

According to the New York Times, the change of heart comes from the realization that consumers have needs and wants, and speaking down to them in overly-technical language doesn’t make them feel comfortable nor does it show them how the pricey computer they’re considering buying can help them and meet their needs.  Time for a new brand messaging strategy.

Finally.

It remains to be seen if computer manufacturers can truly abandon their rhetoric-spieling ways, but at least there is hope.  Rather than walking into your local Best Buy and being overwhelmed by lengthy lists about processor speeds and the like, consumers might just see lists that explain the stuff they can actually do with the computers on display.

It comes down to one of the first lessons college marketing students learn — marketing messages should communicate benefits not features.

One of the things I always tell my copywriting clients (and I mention it in my book, Kick-ass Copywriting in 10 Easy Steps, too) is that no one cares about you.  They care about what your product or services can do for them, how it can help make their lives better, and how it can make their lives easier.  The last thing they want to hear is how great you think you are because of all the behind-the-scenes stuff that you think makes you wonderful.  They really don’t care.  But tell them how all those things can help them, and you boost your chances of building a relationship and closing sales exponentially.

Don’t just tell them — show them.

Image: Flickr

The 80-20 Rules Applies to Coupons Too

couponsAccording to a new study by Nielsen Homescan, the classic 80-20 rule applies to coupon usage, too.  Findings from the study show that 81% of coupons used in the United States during the first six months of 2009 were redeemed by just 19% of U.S. households.

Taking those results a step further, the study found that the top 10% of coupon users (called ‘coupon enthusiasts’) redeemed 62% of manufacturers’ coupons during the study period.

Coupon usage is on the rise with no signs of slowing down, and non-food coupon use is rising twice as fast as food coupon use :

  • Q4 2008: coupon use rose by 10%
  • Q1 2009: coupon use increased by 17%
  • Q2 2009: coupon use jumped by 33%

The interesting thing for marketers to take away from this study is the trend in increased coupon use isn’t likely to go away anytime soon.  In fact, even as the economy recovers, consumers who have gotten into the habit of using coupons during the recession, are likely to continue the habit when their financial situations looks brighter.

However, if companies only use coupons to boost product trials, they’re missing out on a lot of opportunity.  With 20% of consumers using 80% of coupons, they’re certainly a worthwhile audience to target with repeat purchase coupons.  In fact, they might not be a difficult audience to lure to your brand if they have access to your coupons.

And what about the 80% who only use coupons on occasion?  Again, they represent an opportunity.  The right offers in the right people’s hands could make all the difference in the world.  But you won’t know until you try.

Are you using coupons to market your brand and products?  Your competitors might be.  Can you afford not to?

Image: Flickr

A Font Causes an Uproar for IKEA

Over the past few weeks, IKEA has been challenged from multiple directions over its new logo — specifically, the font change in its new logo design.  Remember the old IKEA logo that used the serif Futura font (check it out below)?


ikea logo old-400px


Now take a look at the new IKEA logo with the sans-serif Verdana font (check it out below).


ikea_logo_new


Apparently, this font change has caused an uproar with 3,000 consumers signing a position against the new logo and USA Today and the New York Times writing about it.  Is this font change really so bad?

Here are my thoughts: [Read more…] about A Font Causes an Uproar for IKEA