Electronic Retailer - February 2012 - (Page 26)

FROM THE EXECUTIVE’S DESK BY STEVEN FEINBERG Create the Complete Package i 26 In marketing parlance, a “whole” product is one that contains everything a consumer needs to succeed in fulfilling the product’s promise. One might think of the whole product as the base product that acts as a kind of hub that the ancillary items or sweeteners in an offer configuration surround like so many spokes, but that would be a misnomer. Instead, marketers should view their entire offer – from top to bottom – as a whole product. Every aspect of that product – from packaging and instructions, to the base product and all additional items, should work in unison to exceed your consumer’s expectations. Ideally, it is the entire package or “kit” itself that should facilitate your buyer’s ability to achieve success, for that success will create brand loyalty, and lay the foundation for an enduring relationship. The goal then is for every aspect of an offer to create consumer delight, for it is delight that fuels positive word-of-mouth that will accelerate the trajectory of your business. To understand how this is done well, let’s examine Apple’s ubiquitous iPhone, a product that has the distinction of being the most googled search term of the past year. Even the play on scarcity that Apple orchestrates with each new release of the iPhone is designed to create favorable sensations on the part of the consumer. Simply put, once one has their hands on the newest iPhone, a buyer feels as though they are holding something special – something to be revered and coveted, and that will set them apart. And the darned package hasn’t even been opened yet! The tactical sensation one gets from the box itself, with a sleek finish and embossed cover, even down to the swoosh as the lid is removed, reinforces that the purchase decision was a smart one. There is nothing extraneous in the packaging – it is Spartan by design. Lift the easyto-open interior packaging and the ta-da moment occurs as you behold the phone itself. You turn it on and it works as advertised – imagine! You’re not overwhelmed by manuals; instead, set-up instructions are step-by-step and easy to follow. The pleasure is immediate. And yet, even while the iPhone is an ideal whole product, it also represents a seemingly infinite after-market dream. The attention to detail that Apple puts into their packaging is one of the things that has contributed to making it the world’s most valuable brand. As many of the recent obituaries for Steve Jobs have attested, creating a product as seemingly organic as Apple’s typically are is an arduous process that requires tremendous attention to detail. Yet even direct marketers who may not have an Apple’s internal resources can work with experts in offer design and packaging that can help them create a wow factor that will perpetuate consumer delight. Since many As Seen on TV products are purchased on an impulse basis, the sooner buyers engage with your product, the more likely they are to use it, keep it and not return it. This initial entrée is the bridge to getting them to join your community and build a greater lifetime value with the individual consumer. Therefore, the marketer’s initial stick rate is key because it ultimately lowers your customer acquisition cost and enables you to sell more products to the same parties over time. Consequently, the box that you send a product in should be part of your branding, and when executed with care, it can reaffirm the buyer’s commitment to owning it. If attention is not paid, this can backfire. For example, one marketer for a mental health program had all sorts of psychological maladies emblazoned on the box. While the words were in fact the conditions the product helped remedy, they were not the sorts of things a buyer would want their friendly UPS deliveryman to know about. Once your box is opened, the faster the consumer can engage with the product, the better. You can’t imagine Apple would ever package anything in a clamshell that requires a circular saw to open, would you? Paying attention to such nuances is what separates good brands from great ones and teaming up with a value added offer and packaging professional, who can help you think outside the box – literally – is vital to presenting your product is its best possible light. Steven Feinberg is the CEO of SF Global Sourcing (www. sfglobalsourcing.com) and the Chairman of the ERA Board of Directors. His company specializes in global sourcing of intellectual property via CDs and DVDs, valueadded packaging, and all of the elements that comprise an offer – from books to hair razors to Yoga mats – by leveraging a worldwide partner network. Steven can be reached at 1-855-SF-GLOBAL or steven@sfglobalsourcing.com. electronicRETAILER | February 2012 http://www.sfglobalsourcing.com http://www.electronicretailermag.com

Table of Contents for the Digital Edition of Electronic Retailer - February 2012

Calendar of Events - Upcoming Industry Events February through May
Your Association, Your Bottom Line
Industry Reports - Connect, Collaborate and Discover with MyERA
FTC Forum - Where the FTC Says Facebook Went Wrong
eMarketer Research - Who is the U.S. Hispanic Market?
IMS Retail Rankings - The Top 25 Shows and Spots
Jordan Whitney’s Top Categories - The Top 5 Shows and Spots and the Top 3 Categories
Lockard & Wechsler’s Clearance & Price Index - Index for 30, 60 and 120 Seconds
Ask the Expert - Who Says Kids’ Products Don’t Sell on DRTV?
From the Executive’s Desk - Create the Complete Package
DR Disruption
Bienvenido a Miami!
Interactive TV: Just a Click Away
What Your Consumer Says About You Matters
Guest Viewpoint - For Hispanic Vote, the Campaign is On
Guest Viewpoint - Own Your Own Online Media
DRTV - Supporting Retail: Is This the Answer?
Fulfillment - Are You Delivering a Great Customer Experience?
Teleservices - Stop Losing Thousands of Leads
Member Spotlight
Advertiser Spotlight - Highlighting This Month’s Advertisers
Bulletin Board - DG and Discovery Launch Digital Distribution System
Advertiser Index
Rick Petry - MINI Me

Electronic Retailer - February 2012