Saturday, August 28, 2010

Overlooked Markets

1 out of 4 children registered for kindergarten this year are Hispanic. 1 out of 7 are African American. Only 53% are Caucasian. This is down from 59%, from just two years ago. One out of 6 are Asian Americans. American demography is changing. And it is not just in Arizona, California, Texas or Florida. It is nation wide. Clients in Iowa and Washington state tell me that their towns and cities have a lot more Mexican people than ever. I'm not here to debate the politics of this or to cast judgment. It is what it is.

And yet when I ASK these clients how they have adapted their marketing efforts to accommodate these new segments, more often than not I get the "deer in the headlights" look. Uh oh, I know what that means. Simply stated, they have done nothing. They are still marketing to a vision that their customers are all "Leave it to Beaver Caucasian families with 2 children and a stay at home Mom! Or worse I get, "those folks don't bowl."

Duh. Of course not!!

You probably have not made a serious attempt to get their business or to tap into their culture. So why should they bowl? They don't even know who you are or what you offer.

So here are a couple of tips to market to these NEW segments:

1. Visit or attend business meetings within their communities. Do your research and find out more about them. For examples, Hispanic people are VERY family oriented. Appeals to the family for a bowling event will resonate stronger than will a date night option. Birthday parties for children as well as teen parties also have a high appeal.

2. Make sure that you communicate in their language. Not speaking to them in their language is a sign that you don't care.

3. Visit their churches and stores. These are "touch points" where people meet and mingle and exchange the "daily gossip" going on in their communities

4. Look at your food menus. Are you offering foods that are familiar to their palate or are you still trying to force your own style food down their throats?

5. Church fund raisers and organizations/clubs are very high priorities in this community. Are you tapped into these groups?

6. Communicate in their newspapers, radio stations and TV programming. You can't get eyeballs and ears by not being where they are most likely to be

7 And the last tip of the day is the sign on your front door that says "Habla Espanol Aqui." (We speak Spanish here).

In today's economic environment, you need to explore every niche and cranny that can bring revenue to you.

And yes it will take time. Trust is like that.

Sunday, August 22, 2010

The Ice Cream

"Where is the ice cream?, he asked, as he walked into the den. "In the washing machine. Where do you think it would be?", she answered. Grumbling, he headed off to the refrigerator to get his chocolate chip fix. Settling into his easy chair, he was finally happy to get what he wanted.

Where are you looking for customers?
They're right there; every day and every night.

Is anybody telling them about the ice cream.

Saturday, August 21, 2010

Readers Write

Last week I posted my thoughts about bowling proprietors expanding into other venues within their existing structure. I received a very erudite letter from one of my blog readers, Joe Shumacker, past President of the BPAA, with a commentary on that blog.

Here is his letter in full:

Fred,

In addition to Borders filing for bankruptcy, Barnes and Noble is in the middle of a proxy battle for control of the company. Clearly a marketplace disruption is occurring in the "publishing" industry. The changes will be major and life will never quite be the same, for the companies or consumers.

Bowling enjoyed a very strong marketplace disruption in the 1950's - 60's with the advent of the second generation of bowling (Gen2). The third generation Gen3) has been a much weaker disruption, far below it potential for creating a positive future for bowling. Although the results are disappointing to date there is still time to get it right.

There is a counter point to your position on creating multiple functions within a bowling box. There are many examples where the bundling of functions has not worked. The car-boat concept has been around for years. Efforts to make your TV your PC have failed to gain much traction. The jury is still out on medical clinics located in drug stores. There is an appeal in attempting to do everything for a customer (client).

Comcast is attempting just such a bundling with cable, Internet and telephone service. There seems to be two keys to success or failure in the bundling of functions strategy. One is whether the component functions are a product of common skill and expertise on the part of the provider. Comcast believes it has the skill and expertise to pull it off. The second is whether the consumer is comfortable in sourcing the varied functions from a common provider. As an example I once saw a Mobil gas station in an upper middle class community with a sign stating it had a sushi bar inside. I did not stop for lunch. Another example is found in the old joke about the guy who went to veterinary and taxidermy school at the same time. The strategy was that either way you got your dog back.

I am a firm believer in the strength of bowling as the core of an operating business. The core can supported with ancillary and complementary revenue sources with a marginal expansion of skills and expertise. There is also little or no customer resistance to the expanded products and services, it fits into the expected experience. As an operator moves from complementary functions to truly parallel functions such as destination sports bars, major arcades or restaurants, the level of complexity increases greatly.

The cost of operation is much larger. The risk involved is far greater. The fundamental questions remains; 1. Can we do right (skills & expertise), and 2. Will the customer buy into our selling proposition?

The bundling of parallel functions can lead to significant success. It is however an exercise the operator needs to enter with his or her eyes wide open and with the support of experts. The use of experts (consultants) in the planning and development phases will reduce the risk of totally missing the mark with what seemed to be a very logical proposition.

My first question for someone considering a such an expansion is whether he or she is getting the most she can out of the bowling operation. If yes and further profitability is desired or required then do some serious homework on the business you are lashing onto the side of your bowling business.

Joe

Saturday, August 14, 2010

Digging Deeper

Reports around our industry (and other industries) showed that once again consumers are tightening their belt. Uncertainty about the economy, the future of the existing tax cuts, double dip recession possibilities and job losses have created a real hesitancy in consumers' minds on how to spend their few discretionary dollars. Many are saving more. Most are doing nothing.

And that's hurting our industry. But within this gray cloud of summer open bowling, that hopefully is passing over our heads, there can be light at the end of the tunnel.

If there is one thing that we have proven is that we can be "AFFORDABLE FAMILY FUN". We just haven't gotten that message out to enough people frequently enough. Nor have we demonstrated or proven it successfully

Like the car dealers or electronics manufacturers, comparison advertising states facts, and depicts in very clear terms, what the advantages of one product are to another product. Consumers can relate to these charts. It's a quick visual gulp that they can process quickly. We say that we are a better value than the movies. We say we are a better value than water parks, amusement parks and dining out experiences, but we never display it. Shouldn't we? Heck Yes.

Here's an example:

Create a chart that looks like this. On the left side of the page list 7 key variables such as:

1. food, beverage, 2 hours of entertainment
2. exercise
3. music and lights
4. conversation
5. all ages can do
6. friendly competition
7. achievement

Now to the right of this column, create 3 columns that say Bowling, Movies, Applebees

Under each column and next to each variable, write "Yes" where bowling has an advantage and "No" where the competition does not have an advantage. In the price category, under bowling I put $49.95. In the movie column I put $60 and under Applebees I put $70* (includes tip and beverages).

For the other variables under Movies, I put a "NO" for every one of them, except "Maybe" in the "all ages can do."

Under Applebees, I put a "No" for all variables except I put a "Yes" under "conversation and "all ages can do."

Now if you create this chart and send it out to your email list and distributed it to your facebook friends or even direct mailed it (hopefully you would do all three) along with a sending a compelling coupon offer to visit your center for Pizza Pins N Pop, would you get a response? I think YES!

Use a headline like:
"Why Should Family Fun Cost an Arm and a Leg?"
At Happy lanes it Doesn't"

Now, go tell somebody.

Sunday, August 8, 2010

Kindle vs IPad

I read a report the other day that Amazon, the on line book seller sold more "E-Books" than paper books last month. This was the first time this happened. Coincidentally, the bricks and mortar book retailer "Borders" filed for reorganization and is also in play as a possible buy. Its current chairman as well as other investment groups are all vying for a position.

Amazon was also the innovator of The Kindle, an e reading device, that when introduced in 2007, was sold for $399. As competition rose - Barnes $ Noble's E Reader called "The Nook" and Sony's Reader - Amazon's prices fell to $139. Do you think they are making money on the device or just selling it at cost so they can sell more e books?

In April, Apple introduced the IPad (and sold 3 million units to date) which allows its owners to read books as well. Of course, owners of Blackberry, IPhone and Droid owners can also read books on their phones.

But the IPad will win.

Simply because one dimensional products have a shorter life cycle. Remember when word processing machines were all the rage? What happened to them? What happened to single purpose devices in our economy. Many have not survived.

What about your bowling center? How can you make it a multi use facility? Sure,you have a bar and a snack bar and a bunch of games, but what can you do to stay relevant in the NEW multi purpose environment. Can you become a Birthday Party Showcase too? Can you become a GREAT sports bar too? Can you become a late night, night club too?

What will you be when you grow up?

Thursday, August 5, 2010

What You Always Suspected is Here

Hidden inside Ashley Hayes-Beaty's computer, a tiny file helps gather personal details about her, all to be put up for sale for a tenth of a penny.The file consists of a single code that secretly identifies her as a 26-year-old female in Nashville, Tenn.

The code knows that her favorite movies include "The Princess Bride," "50 First Dates" and "10 Things I Hate About You." It knows she enjoys the "Sex and the City" series. It knows she browses entertainment news and likes to take quizzes.

"Well, I like to think I have some mystery left to me, but apparently not!" Ms. Hayes-Beaty said when told what that snippet of code reveals about her. "The profile is eerily correct."

Ms. Hayes-Beaty is being monitored by Lotame Solutions Inc., a New York company that uses sophisticated software called a "beacon" to capture what people are typing on a website—their comments on movies, say, or their interest in parenting and pregnancy. Lotame packages that data into profiles about individuals, without determining a person's name, and sells the profiles to companies seeking customers.

Ms. Hayes-Beaty's tastes can be sold wholesale (a batch of movie lovers is $1 per thousand) or customized (26-year-old Southern fans of "50 First Dates"). "We can segment it all the way down to one person," says Eric Porres, Lotame's chief marketing officer.

Ashley Hayes-Beaty's taste in film is tracked by a New York firm—and offered for sale for a tenth of a cent. One of the fastest-growing businesses on the Internet, a Wall Street Journal investigation has found, is the business of spying on Internet users.

The Wall Street Journal conducted a comprehensive study that assesses and analyzes the broad array of cookies and other surveillance technology that companies are deploying on Internet users. It reveals that the tracking of consumers has grown both far more pervasive and far more intrusive than is realized by all but a handful of people in the vanguard of the industry.

• The study found that the nation's 50 top websites on average installed 64 pieces of tracking technology onto the computers of visitors, usually with no warning. A dozen sites each installed more than a hundred. The nonprofit Wikipedia installed none.

• Tracking technology is getting smarter and more intrusive. Monitoring used to be limited mainly to "cookie" files that record websites people visit. But the Journal found new tools that scan in real time what people are doing on a Web page, then instantly assess location, income, shopping interests and even medical conditions. Some tools surreptitiously re-spawn themselves even after users try to delete them.

• These profiles of individuals, constantly refreshed, are bought and sold on stock-market-like exchanges that have sprung up in the past 18 months.

The new technologies are transforming the Internet economy. Advertisers once primarily bought ads on specific Web pages—a car ad on a car site. Now, advertisers are paying a premium to follow people around the Internet, wherever they go, with highly specific marketing messages.
It's rarely a coincidence when you see Web ads for products that match your interests.
(Reprinted from the Wall Street Journal, July 2010)

Is this spying or is this market research. It is market research if the person knows you are doing it. It is spying, if the person doesn’t know?

There is something a bit creepy about this.

Of course, the scam artists and internet marketing "get rich quick" guys will love this because it will make their job so much easier. Imagine them sitting a round and saying, "Hey Joe, what if we just tapped into the thoughts of these markets and see what they clicked on, says Homer."

"Lets go for phrases and then products and then frequency and then size and color!" Yeah, that's the ticket, says Homer." And as Lotame's chief marketing officer said, "we can segment down to one person" And that means that every message can be personalized. In the hands of ethical marketers that's a good thing, but in the hands of "the get rich quick, trust me crowd", it makes me feel uneasy.

In any case, keep your antennae up for this technology and go to a website called Bluekai.com. BlueKai is the center of the digital data economy and the largest auction marketplace for all audience data.

This really is "Big Brother and The Holding Company".

Wednesday, August 4, 2010

A Sofa Buying Experience Gone Awry

A 97 year old woman buys a sofa from Jennifer Convertibles in March. In April, the wrong sofa is delivered. Not only isn't it what she wants, but one of the cushions is two shades lighter than the others.

It is now August. She and several of her friends have called the company and gotten the proverbial run around. In fact, her attempts have turned into marathon phone -a-thons where she was transferred from one person to the next, put on hold interminably and told, “someone would get back to you”.

Of course, nobody did.

So now I am getting a "go" at Jennifer Convertibles. I want them to see the e-power of the Internet and to see how negative messaging will be spread to every person in my email club as well as people in my members’ clubs and to my facebook friends and their friends.

Please email this to Jennifer Convertibles. The President’s name is Rami Abada Contact: Jennifer Convertibles at 419 Crossways Park Dr., Woodbury NY 11797

Of course they have filed for voluntary bankruptcy so let's email them at Invest@jenniferfurniture.com. Why wouldn't a company who treats customers this way file for bankruptcy?

Or sign your name at the bottom and send it off to the email above. Ask the company to call Fred Kaplowitz @ 516 359 4874

Now, could this be happening to you? Yes indeed!

The bowling experience isn’t quite as expensive as a full sofa, but a corporate party could be even more expensive and the opportunities for a “bad experience” very real.

Accept no substitutes. Guarantee your service with “money back guarantees.” Oh sure, some people will beat you, but overall what do you think the result of that statement would be. It would mean more business because you have credibility.

“Excuse me sir, would you and your daughter like to join our Saturday adult child league. Try it for one week and if you’re not happy we will give you your money back. Why wouldn’t someone, who was on the fence, at least consider this offer? And isn’t getting them to show up and try our universally recognized and enjoyed product always the first step in the buying continuum?

Unlike Jennifer Convertibles, who cannot resolve a 4 month old problem with my Mother in Law, offering and standing by your guarantees makes good business sense.