Many corporations believe the downward trajectory in consumer spending means they better become something they are not–and quickly. Instead of sticking to their knitting, selling what they are known for, many have inexplicably started trying to be a mercantile of all things.
Is this a sign that sellers are simply trying to be better corporate citizens by providing more solutions to the consumers? No, no no. It is, though, a clear indication that recessionary panic has bamboozled some of the powers-that-be into believing that expanding their businesses beyond what they are known for is actually good business. Example:
Best Buy is the only big-box consumer electronics retailer left standing, except PC Richard but that’s only east coast. (Circuit City is back as an online store, but has no plans to reemerge as a brick and mortar business.) Best Buy is a good place to pick up consumer gear, especially television sets and digital photography equipment. Bought something at Best Buy lately? As you are checking out, the cashier will inevitably attempt to sell you — ready — magazine subscriptions. Yes, magazine subscriptions.
You go to Best Buy to get a deal on headphones, not to be sold Entertainment Weekly or Car & Driver. Is the company really so desperate for sales that it risks pissing off all of its consumers by trying to upsell them on monthly rags AFTER they’ve already gone through the sales spiel on the floor? Sure, magazines are somewhat high-margin products, but is it really worth changing your brand identity to sell a few? Not when it leaves a bad taste in your consumers’ mouthes.
Another strange strategic example: Subway, the sandwich hawker. This chain has a reputation for making decent sandwiches. (They must be good, considering the franchise flourishes in the City of New York, which as you know is the deli capital of the world.) You roll in, get your footlong turkey on wheat for $5, it comes to you in that specially-shaped sandwich bag, and BOOM! back in the office.
Well, do you know that Subway now serves pizza? Seriously. You can order hand-held pizzas from the king of sandwiches. Why on Earth did the braintrust at Subway think this is a good idea? (And wait a minute: why is my favorite diner in suburban CT selling — tortillas?) There is literally no way your Subway Personal Pizza is going to measure up to the quality of your sandwiches, especially when the retail pizza business has been captured by the boys and girls of Pizza Hut and Domino.
Subway, stop it. You are dilluting a good thing. You make footlongs. If people want crummy pizza, they will go to a crummy pizza place! Yes, oh and besides being the deli sandwich capital of the world, New York is the crummy pizza capital of the world. For every good pizzeria, there are at least four baddies. All named Ray Something.)
The point is that if you are known for selling what it sells, be remembered in these putrid retail days for selling what you sell. That is, after all, what your consumers want. They come to you for your product, the one they once and still love(d). They don’t want you to imitate someone else’s. People don’t appreciate that. Just remember. Say it twice.
I’m at www.twitter.com/laermer a lot.