Woolworths has the baby aisle all wrong!

I didn’t spend much time in the baby aisle of Woolworth’s before April 23rd, but since then I’ve been making up for lost time. You see, one month ago today my wife and I had our first child.  It’s been an amazing four weeks and on the eve of me going back to work I thought I’d pull together a quick piece on something I’ve noticed; Woolworths has the baby aisle all wrong!

Babies go through a ton of products.  If it isn’t newborn diapers with 3D Ultraabsorb technology (actually a product), then you need creams and ointments or bottles and clothes.  However, the way that Woolworths presents and groups its vast array of baby products by product and brand is completely wrong.  I’m all for a product orientated display strategy.  When I bought my MacBook I wanted to see only the MacBooks lined up beside each other, and nothing else.  That way I could compare the memory options, etc versus the costs, and weigh up my need-to-have’s with the  nice-to-have’s.  However, with a child I don’t need to compare the 5 stages of single product for every purchase. My kid is a newborn, so I only need things for newborns. Yet, Woolworths displays its products using product-brand groups; meaning the diapers are all together and broken down by brands, then all the ointments are all together, etc…This means, I have to sort through product after product to find the things that my kid can use and end up missing half of the things I could be impulsively buying.

In my opinion, this is the wrong approach and I bet it means Woolworths misses out on a lot of money over the life of a baby. You see, as a parent I need a customer-centric display strategy based on the stage of my child.  My child is 4 weeks old so I want a clearly labeled ‘newborn’ section that has every item relevant to him and the specific stage he’s in.  That means diapers for newborns, ointments for newborns, clothes, bottles, bottle tops – all for newborns.  Then when he’s a toddler I want to avoid the newborn stuff and be in another section that covers everything my toddler needs.

The benefits are simple:

1) Displaying baby products by need would make Woolworths more money, as shoppers impulsively buy their way through each stage of their child. (As a new father, I can tell you I’d buy anything at this point if I thought it would make him sleep longer through the night.)

2) It would also connect perfectly with Woolworths wider campaign strategy, in that it would build a ‘we get you’ rapport with Australian parents.

3) Finally, as my child starts to move closer to the next ‘stage’ of products, I can side-step over and see all of the things I’ll ‘need’ in the coming months.  Nothing like dangling a carrot in front of my eyes to get me socking away the money to buy it.

 So, if you know someone working in the marketing department at Woolworths,  send them my name and my thoughts – I’d love to spend more money there.

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Challenge to new start-ups: Integrate Serendipity

I’ve recently stopped using FlipBoard.  I’m dreading the roll-out of Facebook’s Graph Search and I’ve resigned myself to Google integrating my Google + in order to ‘personalise’ my search results.  It’s an exciting time as we see the personalization of search and results grow to new heights.  However, as this digital integration era starts to ramp up these changes seem to give me a smaller and smaller snapshot of the world. The exact opposite result that I want from the internet as a whole.

With Flipboard I get served topics and articles based on what they think I’m interested in, Facebook Graph Search will feed me info based on my friends and Google by my G+ and previous searches.  As a result, the articles I’m served are by the same writers, the viewpoints on issues aligned with my predisposed opinions and my favourite restaurants are the same one’s as my friends.

However, at the end of the day all of these logic based algorythms mean we are less likely to be challenged with competing thoughts or view points.  In essence, we lose the chance for serendipity.

Where Good Ideas Come From - Steven Johnson

Where Good Ideas Come From – Steven Johnson

What’s the value of serendipity? I have to agree with Steven Johnson on this one, his book is titled Where Good Ideas Come From, when he says great ideas are often the result of combining two seemingly disparate ideas.  The moment someone realizes they can combine two things that they hadn’t thought of before requires another moment before it.  One in which the two things are put side by side by chance.  The exact thing that the logic algorithms are now removing.

So, for any start ups out there looking for a product that jumps the development curve perhaps this is it.  How do we get what we expect (which has obvious value) with a dash of the unexpected?  If we don’t figure it out soon I worry that every time I go to eat I won’t be able to get a table because all of my friends will already be there.

 

To see more of Steven’s theory watch the video below.

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Old Models – New Purpose

It’s been interesting to watch as online businesses have pulled apart and re-organised traditional business models over the past few years.  Even a few brick-and-online businesses have been doing the same, though arguably a harder task.  The power of doing so was brought home in a recent interview in AdAge with Lisa Utzschneider, Global VP Advertising Sales, from Amazon in which she discusses the use of advertising to maintain a lowest price position. I recommend you read the article, however a simplistic overview is this: Amazon is able to charge less for their items because they offset their lower prices with advertising.

As a publically traded company we know that their share holders are going to want the same return on their investment of equal, if not greater, value to any other opportunities out there.  Which is why Amazon’s approach is so intelligent.  Sure, they could just offer lower prices and take the hit on yield, however this is going to reflect in their share price.  Keeping high yields and a lowest cost strategy is difficult without increasing risk loading by purchasing higher quantities of item.

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The Three Keys to Executing Great Content

One of the hottest topics in marketing and advertising strategy at the moment is the power of content.  Despite a plethora of work already out there defining everything from what content is to the benefits of branded content there are still some glaring holes in the information available.  Even at a recent three-day conference held by Content Marketing Institute in Sydney, of which otherwise I was totally blown away by, there were gaps in the actual strategies behind creating great content.

In this post I would like to put forward a simple strategy for marketers to frame their content.  The end result: a more engaged audience that spends more time getting to know you.

The Three Keys of Content

In my experience branded content works best when it lives in one or a combination of:

1) Utility

2) Storytelling

3) Reward

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