Yearly Archives: 2008

11 Dec 2008

Should name brands discount prices to combat private labels in the recession economy?

Raj Bhatt

The Atlanta Journal-Constitution reported yesterday that customers are increasingly buying private label store brands due to the poor economy (click here). The article quotes research from Nielsen that shows that private label sales grew 10% YTD whereas name brands grew by 3.5% only over the same period. Earlier research from Nielsen (click here) shows that [...]

analytics, brands, Nielsen, pricing, private label, recession

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10 Dec 2008

Should Abercrombie discount its wares?

Raj Bhatt

The Wall Street Journal reported earlier this week that Abercrombie & Fitch is pursuing a strategy of not discounting its apparel (fashion brands targeted at young people) during the current recession (click here). The article mentions that their competitors (American Eagle Outfitters, Aeropostale, QuikSilver, Pacific Sunwear) have discounted their apparel significantly. While competition has seen [...]

brand equity, discounts, pricing, recession

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10 Dec 2008

Advertising in a recession economy

Raj Bhatt

Most ad agencies and marketers are expecting a significant reduction(4-6%) in US ad spending in 2009 after being flat/ slightly down in 2008 (click here for Dec 8 Bloomberg article). McClatchy, a leading US newspaper company, reported a 17% decline in ad revenues for the first 10 months of 2008 (click here). Most experts are [...]

advertising, analytics, marketing RoI, media, media mix modeling, recession

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07 Dec 2008

How big is Green computing?

Raj Bhatt

If you’ve seen the TV ads being run by IBM lately, the theme seems to be ‘green’. This is quite a dramatic shift in focus of their marketing message from ‘innovation’ to ‘green business’. This makes me wonder: “How big is green computing? How can a technology company identify (and target) businesses that are more [...]

analytics, EPA, green computing, IBM, virtualization

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03 Dec 2008

Layaway: Sound recession strategy or outdated retail gimmick?

Raj Bhatt

The Washington Post reported this weekend that layaway programs are back at retailers like KMart and Sears (click here for article) . Click here to get the KMart layaway program details. In a layaway, shoppers put a small down payment on merchandise and pay a service charge of roughly $5 to $10. Shoppers must return [...]

layaway, recession, retail

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02 Dec 2008

…brick-and-mortar book stores …: Part 3 — brick&mortar advantage

Raj Bhatt

As I had discussed in Part 1, Barnes & Noble and Borders need to consider three initiatives to compete against Amazon (in addition to shutting down unprofitable retail stores and reducing employee count): Create a more credible online option to compete against Amazon Use brick-and-mortar as a competitive advantage Align inventory to demand In this [...]

brick-and-mortar, demand, forecasting, inventory, market basket analysis, panel regression, statistical models

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01 Dec 2008

…brick-and-mortar book stores …: Part 2 — The online store

Raj Bhatt

As I had discussed in Part 1, Barnes & Noble and Borders need to consider three initiatives to compete against Amazon (in addition to shutting down unprofitable retail stores and reducing employee count): Create a more credible online option to compete against Amazon Use brick-and-mortar as a competitive advantage Align inventory to demand In this [...]

collaborative filtering, pricing, sequence analysis

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30 Nov 2008

How can brick-and-mortar book stores compete?: Part 1

Raj Bhatt

Last week, Borders and Barnes & Noble declared their third quarter results. Both companies reported a net loss at an operating level. Both companies are shutting some unprofitable book stores and trying to rein in costs to become profitable. I am a big fan of both Borders and Barnes & Noble, and cannot help thinking: [...]

Amazon, analytics, Barnes Noble, basket analysis, book store, Borders, collaborative filtering, long tail, retail

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27 Nov 2008

My thoughts on Nielsen’s "Top 10 Retailer Mistakes on Black Friday"

Raj Bhatt

Nielsen published an article earlier this week on “Top 10 Retailer Mistakes on Black Friday“.According to Nielsen, the mistakes include: Sticking to traditional categories Not having a retailing objective Not measuring your objectives Leaving a bad first impression with new shoppers Missing loyalty opportunities Sticking to Friday morning Not having door-buster merchandise in stock No [...]

Black Friday, deals, discounts, doorbuster, loyalty, Nielsen

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26 Nov 2008

The brand new face(s) of Pepsi ;-)

Raj Bhatt

Pepsi announced that it is rejigging its brands at the Morgan Stanley Global consumer & retail conference last week. The key elements of the brand redesign and repositioning are: New logos for all the Pepsi beverage brands which supposedly leverage Pepsi’s design heritage, humanity, and simplicity. The logo re-design efforts are being led by Arnell [...]

Arnell, beverages, brand, CSD, hydration, need states, Pepsi

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