Why Independent Retailers Should Also Be Online

Retail marketing practices favor the big, powerful retailers to the extent that most independent retailers struggle constantly to keep their businesses alive. But also having an online retail store can make a big difference to the bottom line of any independent retail marketing operation.
First, fewer and fewer retail marketing customers are using telephone directories or local media to source products they want. With major search engines now filtering search results based on the user’s location, local businesses are likely to attract more customers into their offline businesses through advertising their products online.
Next, increased sales volume means increased purchasing power – and every independent retail marketing owner or manager knows the disadvantage they’re at due to the purchasing power of larger retail giants. How much better would your margin be if you were buying 2 or 3 times as much of any of your lines? How much more co-op advertising funds would be available? How much would it reduce your cost-per-item-sold from your physical location and staff if your turnover doubled or tripled?
Then there’s the number of items you can sell – obviously in offline retail marketing this is limited by physical space and budget. But online stores don’t have the physical limitations that offline businesses do, and you don’t need to purchase the product in advance of the sale – being able to order it for overnight or 2-day delivery to you is sufficient for online sales. All you need is a photo and description of the item, as long as you know the wholesale supplier is dependable. Online, your inventory is limited only to what products and product lines you have access to, not just those in your physical store.
Fourth, an online presence makes it easy for you to establish a list of leads to start email marketing to, and you can ask your existing retail customers if they’d like to receive your email blasts as well. Regular contact, e-coupons and specials and notices of new products available helps your customer retention, keeps you top-of-mind for the consumers and can once more boost your bottom line.
And, perhaps most importantly, your online retail store will allow you to recruit affiliates to help sell your products as well. Affiliate marketing is huge online, and can best be compared to independent commissioned agents in the offline world. But while offline businesses like an independent retail marketing operation would be very hard pressed to find someone to represent their products on commission only, the online world is full of site owners, bloggers and email marketers looking for products to promote on a straight cost-per-sale commission structure. And since you only pay affiliates once the sale is made, there’s little upfront cost to using affiliates other than your affiliate program itself.

http://www.actionsportseurope.com

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DVS files for Chapter 11 reorganization

DVS Shoe Co. filed for Chapter 11 bankruptcy reorganization today, company executives shared with me this afternoon.

In the filing, which includes the Matix brand, the company is opting for what’s called the 363 auction process.

This process usually involves a “favored bidder” who has certain advantages in the process. Currently, DVS Shoe Co. is in talks with interested parties but a final document has not been signed so executives did not want to disclose the names of potential new investors yet.

The court will oversee the bidding process and with the advice from DVS, determine the best fit moving forward, DVS executives said.

Brian, Kevin and Mike Dunlap and Tim Gavin, owners of the company, answered some questions for me about the reorganization process and what pushed the company over the brink.

Can you walk us through a few of the challenges Podium has faced the last few years that has forced this reorganization?

Our biggest challenge has been dealing with our senior lender. When they were going through their own problems they changed our borrowing base without notice and that is when the problems started. Their unwillingness to work with us through these challenging times has been very difficult.

Another factor was restructuring our robust European infrastructure. We have always been very committed to our international business and constantly reinvested there to sustain our growth. To keep inline with our sales we had several subsidiaries throughout Europe that needed to be consolidated and that process was very expensive. Anyone with operations in Europe will know exactly what I am talking about.

To start this year we had some circumstances out of our control that occurred that did not help things. Our main vulc factory did not meet its obligations to produce our shoes for SP 12 and our 3PL warehouse closed its doors. Those two things happened within two to three months of each other and were just brutal.

The other issues were basically the sum of challenges everyone else is facing with the economy, the tough US retail environment, and increasing factory and raw material costs from China.

Why did you choose to go through the 363 process? What are your expectations on this process?

First, it is the fastest reorganization process available. We expect to close this within 45 days, which is extremely fast and will not really interrupt our business. Initially, we did not think this process was necessary and frankly did not understand it all that well.

After working with several investment groups we started to better understand how this process will benefit our new partners by eliminating liabilities and being able to have a fresh start.

The obvious downside of this is that it will impact our vendors and companies that we have worked with over the years. There has been a great deal of interest in the brands and we are confident that this process will line ourselves up with a strong partner for the future.

What will this mean to your employees?

We will have to downsize in certain areas to remain lean throughout the process. We have a lot of very solid employees who have put a lot of effort into the brands over the years but unfortunately we have to make these adjustments in order to complete the process.

Once the process is completed we plan to ramp back up depending on our needs/synergies between Podium and our new partner (that new partner will be determined at the auction).

Will you be able to deliver product during this time? Will there be delays?

We will definitely be delivering product. I would be naive to say there will be no hiccups, but we will do our best to work with current and new vendors to insure continued business. Our shoe factories are set up well for this process and have given us no indication of production issues.

Is this why Paul Gomez left?

Paul joined us at a difficult time as we were in the middle of all this restructuring, but he understood the game plan and was fine with it. In the end there were just certain commitments he was unwilling to take and he decided it was best to go separate ways. We appreciate his effort during his short tenure and wish him the best.

With the reorganization, is there the potential that Podium will end up under new ownership with a new direction?

The reason we have so many interested investors is because they believe in the brands and the direction so I do not see a change there. As far as ownership, there will definitely be a change of some sort, but that is to be determined as the process plays itself out.

We have prepared for this and have all the right people in place to make this a very successful transaction. This transaction will truly be beneficial for the brands and employees moving into the future. Most of all it will allow us to finally get rid of the bank and all this nonsense and focus 100% of our time on the brands again.

You, your brothers and Tim Gavin started DVS in 1995. How are the four of you handling this turn of events in the business you have put everything into?

Since we were groms we have all lived and breathed this lifestyle. We did it all from skating, surfing, BMX, snowboarding, and moto. To be able to create a brand that is globally recognized in this industry is more than we could ever have imagined.

The last couple of years have obviously been very stressful and tiring but we have put everything into it and are not about to quit. We have invested everything into these brands and have a lot of great employees and retailers counting on us to deliver. We have always been a very tight family and just try our best to roll with the punches and do the right thing for the brands, employees and customers.

In the end we are looking to have fun again and build back back up a good business model.

Anything else you want to tell people?

We would like to take this opportunity to thank all of the employees, athletes, reps, retailers, distributors and agents who have supported our brands over the years. It has taken a group effort to build up these brands and we appreciate everyone’s hard work and dedication.

By TIFFANY MONTGOMERY, May 17, 2012

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Top Ten Tips for Successful Exhibiting

1. Know your audience and focus your message on their needs.

• Who is the “perfect prospect” at this show for your product or service, and what are their current problems? Your participation as an exhibitor at a trade show should focus on defining which of the show attendees’ are in your target market and determining their current needs to offer solutions.
• Make sure your graphics and message answer your target audiences’ needs and wants.
• Show Management can provide statistics regarding number of anticipated attendees, and historical data on job titles, purchasing influence, company size or sales volume, and budgets.

2. Identify and prioritize the top three reasons why you are going to each trade show.

• To gather sales leads or sell your products or services to attendees and other exhibitors
• Promote new products/product launch; “new” is the most powerful word on the show floor to attendees.
• Enhance your corporate image or corporate message as an industry leader (branding/awareness)
• Educate your audience regarding your products and/or services
• Cement existing client relationships to garner repeat sales
• Conduct business meetings before or after show hours with attendees you can’t otherwise reach
• Obtain press/media coverage
• Identify and recruit new distributors/dealers/representatives/employees
• Perform competitive and market research
• Attend educational sessions

3. Set strategic, measurable show goals and objectives.

• Your goals and objectives should be in keeping with your corporate mission and integrated with your overall marketing plan, keeping your prioritized objectives in mind.
• Set realistic goals based on show attendance, number of exhibiting hours, exhibit size and staffing, and budget.
• Plan your logistical exhibit timeline based on the tactics needed to support your predetermined goals.
• Allocate your budget to meet your prioritized show goals.

4. Identify the products or services you will showcase and determine how you will display or demonstrate them.

• If the show is supporting a new product launch, time is of the essence in having marketing collaterals, training for your exhibit staff and the actual product ready for display or demonstration.
• If you have a large product line, display only a sample, pertinent to your audience’s identified needs.
• Trade show attendees want to experience your product or service in your exhibit, not just walk through or past it. Make it as interactive as possible.

5. Produce an attractive, uncluttered exhibit consistent with your corporate marketing campaign.

• Use color, light and movement to attract attendees to your exhibit.
• Retain attendees in your booth using presentations, demos, or “info-tainment”, and a well-trained exhibit staff to convey your corporate message and answer attendee questions using active listening skills.
• Keep your exhibit open and inviting; don’t block more than 20% of your aisle space with counters, walls, or excess exhibit staff. The rule-of-thumb for staffing your exhibit is one staff person for every 50 square feet of open space in your booth.

6. Use high-impact graphics focusing on your prospects’ needs and wants.

• The “look” of your graphics should impart your overall marketing strategy (integrated marketing) and specific show message.
• Leverage your best ideas from other media (advertising, print media, promotions, giveaways, etc.) into a consistent presentation to gain brand recognition.
• Plan your exhibit graphics as large, colorful “visual speed bumps” to attract attendees’ attention and communicate your message. Don’t confuse graphics (billboards) with signage (bulletin boards).
• Effective graphics create an interest in your product or service by telling potential prospects what you can do for them in approximately 3.5 seconds, the time it takes to walk past a 10’ x 10’ booth space.- Use graphics to state your unique selling position (what differentiates you from competitors).- Use graphics to qualify who you want to meet (“Dealers Wanted”) and discourage those timewasters you don’t!

7. Promotion – Pre-Show, At-Show, Post Show

• Be proactive in inviting the qualified attendees you’d like to visit your exhibit. Focus your efforts on getting your list of “most wanted prospects” to visit your exhibit. Industry studies have shown that an exhibitor can double the number of qualified leads at a show with an effective pre-show and at-show promotional campaign.
• Plan an integrated promotion strategy for all three timeframes of a trade show: pre-show, at-show, and post-show.
• Work with Show Management to obtain a targeted list of pre-registered attendees’ names for pre-show promotion: postcards, email, or letter with exhibit floor passes. Contact them multiple times with compelling messages.
• Determine on-site promotional opportunities, such as branded hotel door hangers or room keys, taxi receipts, event sponsorships, show directory advertising, banners, show bags or badge lanyards, etc.
• Pick promotional items that have a high perceived value, will be kept by the attendee and have a tie-in to your message to make it more memorable. Top of desk = top of mind when it’s time to order!
• Give promotional items as a positive reinforcement to only those who complete a lead form or attend a demonstration or presentation for higher perceived value. Or use tiered giveaways based on the prospect’s business potential.

8. Prepare your exhibit staff for “show business”.

• Trade shows are a different type of sales venue with specific rules and expectations. Just as you wouldn’t send an actor on stage without a script, a rehearsal with other actors and props, don’t send your exhibit staff to work on your trade show stage unprepared.
• Recruit friendly, courteous, enthusiastic, knowledgeable booth staff.
• Hold an exhibit staff meeting in the booth to introduce the Booth Captain, PR contacts, VIPs and review exhibit layout, lead gathering systems, promotions, presentations, partners, and work schedules.
• Corporate management should sponsor a mandatory off-site exhibit staff dinner or breakfast to:- Share corporate show strategy and goals with your exhibit staff.- Conduct product training on your new products and services.- Review good booth etiquette and body language.- Train staff how to effectively greet and engage suspects, quickly qualify using open-ended probing questions, demonstrate to prospects, and disengage unqualified attendees.
• The most memorable part of the attendee’s exhibit experience is their interaction with your staff!

9. Record all pertinent information on a lead form to facilitate follow-up.

• Plan ahead with your sales department (or whoever will follow up on your show leads) to determine what pertinent information they will need to follow-up after the show, including demographic data (from the attendee’s scanned show badge or business card), product interest, role in purchasing process, timeframe to buy, and requested follow-up. Other helpful information to capture from prospects includes their current supplier, reason they want to change suppliers and the name(s) of decision makers in their organization if they don’t have this responsibility.
• Determine if you will rent an official lead retrieval system on site (standard or customized), purchase a customizable system, or customize your own pre-printed forms to be completed manually.
• Determine your lead rating system to prioritize your after-show follow up, such as A=Hot, B=Warm, C=Cold.
• Making good notes on your lead form about conversations with prospects can turn a cold call into a warm one!

10. Provide promised follow-up within 72 hours if emailed; 10 business days by US mail.

• Fact: About 80% of all printed materials gathered by attendees at trade shows are thrown away before they make it back to the office. Use expensive collaterals in post-show follow-up of qualified leads.
Write your follow-up letter before the show; reference the show name, your booth theme, key messages, etc.
• Thank them for visiting your booth; reiterate the features/benefits of your product/service in the letter, and mention your agreed-upon follow-up and timeframe.
• Mail this letter with samples, literature, coupons, article reprints, case studies, etc. to reinforce the sale or, if responding by email, hyperlink to your Web site for easy access.
• Follow-up in the requested manner, whether by phone, fax, email, or with promised materials.
•  
• By candy adams

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Demystifying Youth Culture’s Marketing Myths

As youth culture marketing specialists, Fuse is often asked to confront, examine, and demystify concepts, trends, and assumptions that are generally accepted by brands. With nearly twenty years of youth culture marketing experience combined with fresh insights gathered weekly from Fuse Source, a national panel of teens and young adults who share their opinions on everything from pop-culture to advertising campaigns, this column will reveal over the next several months the key myths about youth marketing and how your brand can avoid being misled by them.
Myth: Young People Are So Different Today
We’ve all heard it said before, often accompanied by an expression of anxiety and confusion, “Teens are just so different today!” At first glance young people might seem unlike any generation that came before, but when marketers move beyond the simple stereotypes they learn that there is a remarkable consistency among young people regardless of the decade in which they grew up.
As far back as the 1940’s, when teenagers were first observed as a demographic group (and the term “teenager” was coined), young people cited relationships, family, jobs, money and independence as the things they most cared about. Over seventy years later, these same issues are still the most often noted by teens. Brands that have addressed these primary concerns regardless of each decade’s cultural shifts and trends – from zoot suits to flower power to punk to the age of Facebook – have become the brands most beloved by youth culture and rewarded with the biggest financial returns.
No fair examination of the similarity of youth culture from generation to generation should exclude the most obvious and genuine difference of teens and young people today compared to their predecessors – technology. Of course technological advancements (and social media in particular) have altered the landscape, but mainly in how young people communicate, not what they communicate about.
For example, pre-social media teens valued relationships, both romantic and platonic. What we have seen over time is not only a perpetuation of that value, but also an evolution of the communication channels in which relationships are maintained. A recent insights study by Fuse Source of male and female teens ages 16 – 19 provided detail into the role of technology when developing and sustaining interpersonal relationships. The panel cited texting as a key in maintaining close friendships and some respondents reported sending and receiving over 3,000 text messages per month. While a phone call or in-person meeting was often the eventual result, the formative steps to either outcome almost always started with a mobile or digital interaction. On a related note, when sharing discoveries on music, fashion, and celebrity news, social media was determined to be the preferred technology for teens.
I hope you have enjoyed this first article in the series and look forward to providing you with what I hope is more thought-provoking content in the series. Until then, be sure to challenge any marketing not based in historical concerns of young people! 

The Two Most Overstated and Underrated Concerns of Young People
1. The Environment
Over the last decade one of the most overstated concerns of young people has been “the environment.” Let’s be clear: young people care deeply about the environment, but as marketers we are often measuring the wrong thing and asking the wrong questions.
Research conducted through Fuse Source and supported by various other studies has indicated that as low as 2% of teens consistently rank “environmental issues” as key to their daily lives. However, when young people are prompted with specific questions about a brand’s green initiatives, close to 90% of them say a brand’s environmental policy does affect their purchase behavior.
At first glance the results appear almost contradictory. Upon further scrutiny it becomes evident that the inconsistency rests with how young people experience the impact of global issues versus how they expect brands to behave. Issues like melting polar icecaps, a crisis of energy supply, and clean water systems in foreign nations seem distant and are nearly indiscernible to many teens, especially to those who live in parts of the country far away from the sources of those troubles.
That said, Millennials believe that businesses have the power and resources to tackle geographically distant issues and to take on the role of environmental stewards. By choosing to purchase a brand with admirable policies, they feel they can make a direct impact on remote problems with a localized action.
2. Money
Unlike environmental concerns, the impact of money and its relative availability is tangible, immediate and effects every-day life for most teens. Strangely, the economic concerns of young people are one of the least reported yet most important concerns of their lives.
According to the Bureau of Labor Statistics, the unemployment rate for 16 to 24 year-olds is twice the national average. That doesn’t even take into consideration the number of young people who are no longer looking for work and those who fear that older, slightly more experienced workers are snatching up the jobs that would otherwise be theirs. As a result, Millennials are starting to view their finances differently.
As marketers we can no longer assume that we know the purchase behavior of young people. Underemployed and unemployed young consumers may no longer dream of purchasing their first used car. Many no longer see a new videogame system as a luxury item within their reach, and the term “recession proof purchase” may no longer exist.
The impact of unemployment at a time when young people are coming of age warrants consideration: this is a long-term problem and will have serious, long-term negative cultural influence. We must adjust our approach accordingly.
By Bill Carter 

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