It’s 2:49 in the morning and I’m on one of my “scour the internet for some rock I haven’t yet turned over” jags.  I can’t even tell you the path I took to get here, but I ended up at this article, originally posted in Fast Company,  back when George Bush Version 1 was President.  So while a little dusty, it’s still a pretty fascinating read about the damage the quest for Every Day Low Prices has on our economy.  Yeah, I know, we live in a free market system, and I’m thankful we do, so no one is forcing company’s to sell to Walmart - right?  Wrong. I think we force companies to sell to Walmart. I’m not a big fan of shopping at Walmart, although Walmart has given me some pretty big laughs.  (see www.peopleofwalmart.com - I pray to God your picture isn’t on this site, but I know some of you and it might be.)  But whether I shop there or not, I’m still a part of this problem.  Walmart absolutely drives their suppliers to deliver lower and lower prices on selected items - the penalty if you don’t - apparently they often won’t buy your “other” products.  For a packaged goods company, not selling to Walmart is the equivalent of expecting a four year old to pass up the free donut at Krispy Kream - it just isn’t going to happen.  Take a minute and read this article - your conclusions might surprise you.

- Ken

Generational Branding - Saw this photo in Fast Company  and thought it had amazing implications.  It’s something I’ve been thinking about lately.  Most brands have deep roots within a generation - to sustain, that brand has to become relevant to succeeding generations.  Think of Oldsmobile - too little - too  late.  Their “This isn’t your father’s Oldsmobile” campaign did little to sway the minds of Baby Boomers.  Their brand…. it’s dead.  Our twin sons rarely if ever wear Nike, why? Because Under Armour OWNS their generation. Nike’s still cool for shoes and some niche sports like golf - but we find ourselves spending $24 a pair for a pair of Under Armour underwear. (BTW - ever wonder why it’s called a pair of underwear?)  

Apple has done a great job of becoming relevant to a generation but they’ve been BRILLIANT in their ability to expand that relevance to both older and younger demographics.  When my 70 plus year old mother (never reveal a woman’s true age) is thinking about getting an iPhone, something pretty amazing is happening.  Transferring the enthusiasm for a brand across generations takes product innovation based on searingly insightful customer research and brilliant branding.  

Nike is losing a generation.  Who’s next?

- Ken Schaefer