In my process of networking with other business professionals, there is something unique I am hearing.  Some is very direct.  Some it is a bit more subtle, but the same message.
 
     The message – we have all heard before.  But in the course of the last several weeks, I am hearing it from seasoned, senior level business professionals.
 
     The message?  I do not feel appreciated.  *Yikes*  To be sure I understood and interpreted our conversation correctly, I called a few people back.  Yep – lack of appreciation.
     It is not the job, the work requirement, the lack of resources, challenges in work or team, or the compensation.  It is a most basic and simplest form of human needs when working in a business that requires an engaged leadership team.  Another qualifying point is these people are high performers, smart/intellectual, confident professionals, above average emotional intelligence and seasoned leaders in their area of functional expertise.
 
     These comments started me thinking.  These people are disenchanted, unhappy or have the feeling of being “neglected”.  In fact; one of these people is in active search mode, interviewing for a better opportunity where people are valued more. [huh – those are not my words, but the person I spoke with.]
 
The Culture or the Manager?
       Not knowing the reporting line or having he intimate details of the situation, I am not suggesting I have the answer.  But, do feel I can share a perspective.
 
CULTURE.  Changing a business culture is difficult.  Frankly, very hard. 
      I have found describing a culture within a company is equally challenging – either a good culture or a bad one.  The one truth is a culture is defined by its values.  At a most simplistic level, a culture is what the organization believes in, what they stand for, and what the business wants to be known for.  Leadership has the responsibility for upholding or staying true to the value system.
 
MANAGER.  To be clear - manager does not equal leader.
     In the case of these folks I have spoken with, they have a manager they have to report to.  Not a leader that wants to work with them. 
     In another article, this quote from Dan Rockwell (Leadership Freak blog) spoke volumes to me –
"Do you believe that people with defeated spirits
achieve great results?"
 
This really does say it all, doesn’t it?
​
Listening to these people, I am reminded to how powerful words of thanks, gratitude, encouragement, praise can mean.  And how far it can go.  The interaction over the last several weeks has reminded me of the void that can be created when People Management 101 is neglected.
 
Note to those of us given the responsibility to lead and work with –

• Never forget the power of telling someone they are appreciated (and why… this is where the magic is)
• Never forget to acknowledge someone for meeting an objective, a goal, overcoming a hurdle.  Recognition (privately or publicly) is a powerful motivator.
• As a leader, we have the responsibility to help others develop a better version of themselves.  This is what Leaders do. A manager doesn’t have it in them to do this.

 
If you have the charge to lead, please lead.  Simple words to let people know they are appreciated is a little thing to do.

 Great Product does Win.  There is a lot that can be wrapped up in that very simple statement. 
​These are my 4 core beliefs on how Great Product Wins.

1.  Bend the Light Beam.  Innovate.
    Most business leaders I know believe their product offering can be better.  The easy path is making existing product refinements – stronger, improve ergonomics, sharper, durable, easier operation, longer battery life, waterproof, and the list goes on.  Hopefully you get my drift.
     Where many struggle is in developing and instilling a vision to make a dynamic shift.  A shift to offering a superior product.  A product that the end user really wants.  A product the target audience will gladly pay (a lot more) for.  A product that will make other products in the category inferior.  I Believe Great Product Wins.
 
2.  Know Thy Customer
      This is where the path to greatness begins to falter.  Many leaders will confuse the customer and distribution channel.
      The railroad track mindset directs many leaders to solely focus attention on the distribution channel.  I am not suggesting a total disregard related to distribution channels, but to expand thinking to consider all distribution venues for the purpose of reaching the targeted customer.  Many times the Customer (end user) is overlooked or unintentionally abandoned.  It’s been said many times; “Start with the customer.”  So true. 
   For example; a focus on big box retailers (i.e.; distribution channel) for new or great product.  The big box stores are focused on the mass.  That is; the lowest common denominator to maximize sales.  The merchant is focused on serving “the known”, not the unknown.  This will many times limit effectiveness in gaining traction with great product.
 
3.  Value Delivered
     Expressing the value delivered is primarily marketing’s job.  However; what I have experienced numerous times is an integrated, collaborative, team approach that validates the value proposition.  The process tests hypothesis and theory to force reality.
      The value proposition is a conviction of truth.  It is a message to be delivered with total confidence and expressed in clear, plain & simple words.  This go-to-market approach is for the warrior – not the faint of heart.
     Great Product That Wins has an undisputable message of truth behind it.
 
4.  Price is Commensurate to Greatness
     I can see my inbox filling up on this comment.  Allow me to debunk what many will want to argue – Price is important.  Price must be relative.  A poor pricing strategy can (and likely will) sink a terrific product.
     Where most businesses fail is they think and actually believe their product have tangible and meaningful benefits.  They are lying to themselves.  These businesses and products are ignoring the marketplace and the voice of the customer. 
     The reality is the perceived value being offered is not worthy and the product is relegated to price and only price.  Ouch – that is painful.  In a global economy and a world that is very flat, the battle for a lower price always looms.  In my opinion, this is a terrible and indefensible competitive position to be in. Who wants to “fight it out” on just price?
     Great Product That Wins commands a price and the value be market weighted.  Innovate and price the product to the real value it delivers.  Easier said than done.
 
Reaching the status of Great Product to Win is challenging.  It is hard work.  It requires a tribe of committed professionals doing heavy lifting.  I can personally attest to doing it right pays huge dividends.  Here’s to the journey of knowing Great Product Does Win!

     The goal of every consumer products company is to earn the ultimate trust – which is loyalty – with the end user. 
     It is the grand prize in marketing.
     And Amazon is on it’s way to earning the ultimate marketing bogie – Customer Trust.
     The approach Amazon has taken is multifaceted but with a very clear vision.  There are several platforms that standout in my mind that are real and some in late stage development that will continue to widen the e-commerce gap in favor of Amazon.
    
Delivery to Where Customer Wants It
     Certainly; Amazon and other online retailers have mastered the delivery of orders to home and business addresses. 
     With the rash of “porch poaching” thieves taking the deliveries before the rightful owner can retrieve, is gaining national attention.  I have been the victim of this.  Not once, but twice within a two-week period during the holiday season with Amazon a couple of years ago.  The orders were more expensive electronic goods, so not a cheap replacement.  Amazon customer service didn’t bat an eye, and replaced the order without any hassle.  I feel certain any other e-commerce retailer would have done the same.  Amazon is taking a step ahead. . . 

Amazon Lockers are brilliant.

1. Delivery to where the customer will be, not where they have to be.  No need to be home, and no longer have to navigate the business mail room to find your shipment.  Designate the Locker location of your desire for the deliver to address.  The text updates are terrific, and the retrieval of the shipment is simple.  Speaking for myself – I have no desire to lug something needed in a business trip when I can have it shipped to a location that works for me.  Or to check additional luggage to transport holiday gifts to Grandma’s house, when I can have them shipped to an Amazon Locker near Grandma’s.
2. The Lockers solve many problems – delivery theft and convenience of receiving shipment when the customer is ready are just a couple.

           This concept is going to the next level.  Consider large, multi-unit condos / apartments.  Some of these larger developers are negotiating with Amazon to BUY the lockers (brilliant) and the “Lockers” becomes a marketing feature of the complex knowing shipments will arrive, be secure and tenant does not have to be at the “office” hours of operation to get a delivery.  In turn, this must save the management staff lots of time for being a package handler where there is little to no value. 
     Providing options and solutions for delivery is part of an e-commerce value chain proposition.  Amazon is taking it to the next level.  It provides end-to-end trust – Purchase of Product, at Price offered, Delivered on-time, and secured that the shipment is available for the customer to receive.
     When the trust factor is fulfilled seamlessly, that is where loyalty is created.  That loyalty enables great things and momentum to happen in gaining share of wallet.  New products, some pricing latitude, and much more.

​Knock Knock. . . I’ll Let Myself In
Amazon’s latest venture / offering is Amazon Key.  This will truly test the amount of trust the consumer will allow Amazon.

• Amazon Key is the ultimate and most streamlined means of delivery.  It allows for the shipment to be delivered INSIDE of the consumer’s home.
• The service is only available in select markets today.  That has limitations of making it a broad-based marketing advantage.
• Also requires a $250 investment (The Kit) in Amazon camera and compatible lock for the privilege of “in-home” delivery.  “Key” is also being marketed for other service providers to gain access the home when you are not there.  Repair service, cleaning, laundry service, etc.

     I can’t get there on this service – yet.  Our homes are our safe-haven and we guard them carefully.  Without a doubt, thousands of consumers will invest in the hardware and welcome Amazon in to their homes.  Time will tell how this may change, it’s adoption, and it’s success.
     The dynamic at play is huge.  It is the continued evolution or dimensional shift to how consumers will purchase and receive products into their homes. 
     Think about it – Amazon is a service provider of transactions of selling products to the end user that have disrupted traditional supply chain mentality with the use of technology.  Once in the home, that seems like mecca for consumer engagement and countless other products and services they could provide through the single marketing platform.
     Very exciting times and look forward to what comes next as the continuum of consumer products method of reaching the end user will continue to change and shift!
 
Just for a Smile.  Have to pass this along.  Courtesy of the Reddit community….
“It kinda makes sense that the target audience for fidget spinners lost interest in them so quickly.”

Hope you have a great week!

Starting a few months ago with Amazon announcing the purchase of Whole Foods, I have been taken by the blood-letting Wall Street has bestowed across the industry.  In fact; the financial punishment for most in the retail space since this announcement.
     My personal disclaimer on this post:  I am not a retail operator, nor an investment banker.  But I am a successful supplier of consumer goods to retail.  Durable goods, not consumable goods (drinks, chips, etc.).  My thoughts are not to claim supreme answers, but more to offer thoughts from a 10,000 foot view with 3 thoughts.
​
 1.  Stick To Your Knitting    
     Kroger Co. (KR) has become the poster-child for what Amazon could do to the grocery industry by acquiring Whole Foods.  Kroger could do itself good by focusing on making their business (stores and digital) the top-of-mind consumer destination.  With 2,800 stores, multiple store front brands, spanning 35 states, Kroger has a great platform to do mind-blowing things. Amazon’s Whole Foods has some 470 stores and at some point will leverage the power of the digital platform.  I believe Kroger could make some very progressive moves to not only hold share, but grow dramatically.
   I do not discount the power and prowess in operational and supply chain proficiency Amazon has proven.  They meet the consumer “right where the customer wants to be”.  Amazon will certainly carve out their fair share of the grocery market. 
     About a month ago, Kroger announces they will launch a restaurant business called Kitchen 1883.  Hmmm.  Is it me, or does that seem like a lack of focus?  The first prototype is a stand-alone store.  But even if the thought is to integrate a restaurant into stores, is that what the consumer wants?  Another restaurant, particularly one inside of a Kroger?
     Kroger should stick to grocery and take advantage of building a compelling digital model and enhance the in-store experience to serve the consumer.
 
2.  Meet The Competition Head On    
     Things change.  Consumer likes and dislikes change.  Technology has proven to be a great enabler.  Grocery competitors are making moves to prepare for the future. 
      Walmart buys Jet.com in 2016, and recently Parcel, which has a model for rapid delivery to consumer’s front door.  Both significant in Walmart’s goal to compete with fury in the digital retail space.
  In the pure play grocery space, Albertsons announces the purchase of the meal-kit delivery service, Plated.  This is very logical for grocery to have a hand in the meal kit business.  Experts expect this food home delivery service sector to grow more than 70% in the next 5 years.
   With all of this recent activity, Kroger showing no signs of making a correction in course.
 
3.  And, It’s Not Going To Get Any Easier    
     The slim margins in the grocery business make things tough, no doubt about it.  As competition heats up margins will be under increased pressure.   
     Add to the mix the entry and expansion in the US market of two powerful German grocery retailers - Aldi and Lidl.  The pressure on traditional grocers will be intense.  These are serious competitors and have the balance sheet and competitive will to gain significant market share.
 
The evolution of how the grocery industry is going to take shape will be interesting.  There will be winners and losers.  I am not convinced Amazon will rule the world, but they will put points on the board in grocery.  The losers – some will falter.  I have visions of how Kmart could not shift to compete with Walmart in the early days.  Where is Kmart today?

​The 2017 holiday season is shaping up to possibly be a real winner for retail in North America.  Consider the much-improved economic climate, stellar stock market performance, low unemployment, and favorable consumer confidence sets a pretty good stage. The battle-lines of where and how the consumer will choose to make holiday purchases is most intriguing. I believe this holiday season will begin to etch a meaningful shift in what retail will look like for years to come.
 
2017 Holiday Expectations
     Predictions, expectations and estimates are all to the upside vs. last year according to numerous organizations that track this information. 
     Generally, there is a consensus that holiday sales (excluding travel and event purchases) will increase in the range of 3.6 to 4.5%.  That is particularly good news, as the last couple of year’s growth has been quite dismal.
     That is the broad swath of retail market predications.  And that should bode well for all.  A rising tide lifts all boats, as the saying goes.
    Not surprising, growth in e-commerce retail sales for the coming holiday season are estimated to be somewhere between 11 and 21% (2016 online sales grew roughly 14% over prior year).  I am in the camp of closer to the 20% growth for 2017. 
     Where there is momentum, there is growth.
 
The e-Play of e-Commerce
     The digital era is in full swing and promises to only gain in momentum.  Amazon is certainly the bell-weather for online shopping and the e-commerce segment in retail.  It will be the focus of the overall direction of e-commerce as we step into the holiday season.
     Consider some of the market analysis published by Fung Global Retail and Technology –

• 83% of holiday shoppers will buy something from Amazon
• 77% will shop brick and mortar retailers

    In other research, it is projected that 75% of all holiday shoppers will purchase from Amazon. That is powerful.  It gets better – 9 out of 10 Amazon Prime members will purchase from Amazon over this holiday season.  The power and leverage of the Amazon loyalty program is second to none!  For holiday 2017, considering the online market growth, Amazon will easily add an incremental $5 billion in sales this year.
     At the root, convenience and ease remain the two most significant advantages of e-commerce shopping.  The advancements in smartphones, wearables and other wireless technology will keep us constantly connected.  That brings the essence of convenience and ease within a fingers touch.  In fact; 40% of holiday purchases this year will be made on mobile apps.  That is nearly double from 2016.  The next evolution (and coming quickly) will be the technology of the truly “connected” Smart Home, that will go beyond the Google Home, Apple HomePod and Amazon’s Echo devices we know today.
 
Brick and Mortar Retail Play
     It is important to keep in mind; the e-commerce segment includes the online sales of traditional brick-and-mortar retailers too.  There are exciting initiatives underway. 
     There are many very well managed retailers, and although playing catch-up, great strides are being made for developing the integration of online into their operational platform. 
     The baseline advantages for traditional retailers are quite clear.

1. The Now Factor.  The truth is (and has been aided by technology), we are a consumer society of wanting it now.  Retail provides that option.  Buy it now, use it now.
2. The Personal Experience.  This is the single most relative and richest advantage for traditional retail. . . today.  The ability to touch product, evaluate alterative options in style, functionality, price, brand and many other influencers.  Not to be overlooked, the fulfillment of today’s demanding consumer to have it “now” is a powerful advantage. I am convinced that those of us supplying product and services to retailers can have a huge influence on the experience.

     Although not being leveraged with significance today, the personal experience is being redefined and requires brick and mortar retailers must move beyond just price, assortment, and merchandising.
     I am excited for what will come from the traditional retail sector for true deployment of an integrated, omni-channel build out.  The power of what a seamless consumer purchasing platform of the physical store and online experience.  The true merging of the personal touch, convenience and ease.  Here are just a few things that will shape the next advances in retail as we know it.

• Video – it is all about the message and done properly, the manufacturer can (and is best suited to do so) deliver what that message.  The power of visual and audio is a powerful marketing tool.  This is low hanging fruit and more is needed.
• Artificial Intelligence – the possibilities of what AI will do is incredible.  The advantages of how it will shape how we purchase, shop, and anticipation of our needs is mind-blowing.
• Algorithms - not suggesting a “Big Brother” theory, but it is utilization of big data is a game-changer.  Consider the power of harnessing the data from our internet searches, browsing of goods and services, those we “follow”, the “likes”, and of course purchase intent / history.

     There are great things happening and taking shape today for the evolution of retail.  This will be exciting.  The advantage for the supplier community is how we can provide and deliver that value that will be a competitive advantage in our respective categories.