Johnson

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Johnson Wales

• Katie Muldoon
• January 2007

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Who Am I Want Am I Doing Here?

• 30 year Direct Marketing veteran -- user, agency
  and consulting
• Worked with over 400 clients from Fortune 50 to
  mom and pop
• Taught Catalog Marketing for NYC and DMA for 20
  years
• Columnist for Direct and DM News for 20 years
• Four books written on Catalog Marketing latest
  The Catalog Strategists Toolkit

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Who Am I What Am I Doing Here?

• A Bit More Background
• What Cataloging Has Traditionally Been All About
• How Its Changing

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A Bit More Background
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Who Am I What Did/Do I Actually Do?

• Marketing
• Strategy
• Copywriting
• Layout
• Merchandising

• Circulation Planning
• Contact Strategy
• Customer Service and Operations as Marketing Tool
• Research

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Who Are Some of the People For Whom We Have
Worked?
Consumer Clients

• AE
• Allen Brothers
• ATT
• Blockbuster
• Brylane
• Butterick Vogue Patterns

• Case Logic
• Chadwicks
• Chiasso
• Childrens Wear Digest
• Clairol
• Coleman

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More Consumer Clients

• Colgate-Palmolive
• Dansk
• Deere Company
• FAO Schwarz
• General Mills
• Hanna Andersson
• Kohler
• L.L. Bean

• Lens Express
• Mercedes Benz
• New York University
• Paramont Pictures
• Patagonia
• Pfaltzgraff Company
• Revlon General Wig
• Self Care Corporation
• Yield House

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And What About B2B?

• All-State Legal
• American Van Equipment
• Aramark
• Bob Barker Co.
• CarrotTop Industry
• Carstens
• CertainTeed
• Details (div. of Steelcase)
• Eastman Kodak

• G. Neil
• Grainger
• IBM
• Lotus
• New Pig
• Perkin-Elmer
• Scholastic
• Wearguard

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What Print Cataloging Has Traditionally Been All
About
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The Roots of the Print Catalog

• Need for
• Products that couldnt be found locally
• Products that impressed the neighbors
• Education on how to dress and decorate
• Definition
• 16 printed pages or more
• Traditionally a bunch of sourced product with a
  common theme and market

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The Print Catalog Puzzle

• What are the pieces how do they fit together?
• Coming on the next slide - an almost totally
  impossible to read chart!

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Whats the Most Important Area In Cataloging?

• Merchandise?
• Creative?
• Circulation?
• Marketing?

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All Sales Avenues Must

• Work Together
• Have Specific-to-Them Game Plans

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Merchandising Game Plan

• Product Strategy
• Merch Criteria
• Sourcing, Development, Sampling
• Negotiating, Contracts
• Selection, Pagination
• Pricing
• Forecasting, PO Writing
• Information Gathering Sharing
• Analysis

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Key Merchandising Questions

• Whos in charge? Marketing or merchandising?
• Whats the difference between a merchant a
  buyer a re-buyer?
• Where am I going to get anything exclusive?
• How am I going to handle oversees
  sourcing/manufacturing?
• How important is Made in America and green?
• What am I going to do about vendors who sell
  directly and undercut me?
• Should I be merchandising for the print catalog,
  retail store or internet site?

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Marketing Game Plan

• Research
• Demo
• Psycho
• Availability
• Positioning
• Numbers
• Business plan
• Analysis

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Key Marketing Questions

• How much can we expand without diluting our
  image?
• How often do we need to freshen our merchandise
  and creative?
• What impact is operations having on our overall
  business?
• What is the state of the current competition and
  where is the next batch coming from?
• Should we be involved in licensing, joint
  ventures, endorsements, opening (more) stores,
  international?

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Creative Game Plan

• Attend pagination meeting, get samples
• Concept (new or update) coordinate all with
  electronic group
• Access to info (new and DAM - Digital Access
  Management)
• Copywriting

• Layout with copy in place
• Photography
• Revisions of all of the above
• Pre press digital
• Printing
• Binding/ink jetting

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Key Creative Questions

• Whats more important
• Copy or layout?
• Organization or theming?
• How often do layouts need updating? Should we
  change
• The typeface?
• Icons?
• Pagination?
• Should we use the same models, locations every
  issue?
• How shall we handle the SKU line?
• Should we use headlines, sub-heads, what?

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Circulation Game Plan

• Review results
• Drop date(s)
• Circulation per drop
• Circulation strategy/goals with contact strategy
• Database review
• List and coop rentals
• Content of each segment including tests
• Merge/purge/update
• SEM

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Key Circulation Questions

• Why do we need a contact strategy?
• What kind of shape is our database in both for
  mailing and analysis?
• Why are those top performing coop lists falling
  off in response and what are we doing to replace
  them?
• Are we going to need other versions?
• What offers are we testing?
• How much should we rely on the internet v. print?
• How often can we mail, e-mail for highest return,
  happiest customer?
• Is operations going to be able to handle it if we
  heavy up during late holiday?

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Real Life Cases - Allen Brothers
Products move, in/out?
Outline Plate this corner
Two image choices -- lets discuss
New copy

• Layout in progress

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Real Life Cases - Scholastic

• Layout Revision
• Cover for Teachers

New cover
Old cover
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Real Life Cases - Scholastic

• Alternate Cover
• Back Cover Treatment for Both

Back cover
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Real Life Cases - Scholastic

• Layout Revisions
• Student Cover

New cover
Old cover
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Real Life Cases - General Mills

• Betty Crockers main challenge
• Tap a younger market without losing older market

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Real Life Cases - General Mills

• Solutions
• Re-design
• Merchandising
• Streamlined point system
• Test eliminating points

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Real Life Cases - General Mills

• Evolving to web-only product
• Final printed catalog late 2006

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Real Life Cases - John Deere

• Start-up catalog
• Changing goals
• Profit center
• Image enhancement
• Minimal staffing
• Minimal commitment

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Real Life Cases - Pfaltzgraff

• Pfaltzgraffs main challenges
• Location within retailer
• Everyday low prices
• Known patterns, unknown brand

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Real Life Cases - Pfaltzgraff

• Solutions 1 2 failures
• Catalog offering mix of Pfaltzgraff product and
  other country items at full retail prices
• Catalog offering Pfaltzgraff only product at full
  retail prices

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Real Life Cases - Pfaltzgraff

• The successful solution research
• Pfaltzgraff customers said collected
  Pfaltzgraff not bought
• Created homely, chatty Collectors Newsletter
• Discounted, hard-to-find product
• Made money first issue

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Real Life Cases - Pfaltzgraff

• Sold big book with full price items
• Made more money
• Pfaltzgraff has evolved from a manufacturer who
  sells to retail to a company whose main focus is
  direct sales via print catalog and website

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How Its Changing
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Is the Electronic Catalog Replacing Print?

• PULL marketing v. PUSH marketing
• Websites only part of the trend
• Pull includes viral marketing, PR, space ads,
  endorsements/third party, product placement
• Serve the customer wherever they wish to purchase
• Web needs nudge to get
  customer there

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PULL Marketing Example

• Company name at retail
• Smith Hawken store within a store partnership
  with Target

NYT 4/2/06
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Two Kinds of Purchase

• Know what you want
• Internet
• B2B catalogs
• Some consumer catalogs
• Browse
• Themed, frequently mailed catalogs

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Catalogs Will Have - More Than Ever - Three Main
Uses

• What will work
• Product Extension
• Unique, not easily searchable or cleverly
  positioned (must evolve)
• Traffic Generation
• What wont work
• Sourced product based on theme alone
• Look-alike creative based on pretty pictures
  alone
• Anything not sharply priced (value MUST be there)

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Print Catalog Will Have New, Evolved Roles

• Product Extension
• Mercedes Benz catalogs internet site offer
  add-on products

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Evolved Roles

• Unique
• Manufactum catalog transforms ordinary goods into
  nuggets of fabulousness
• 7 bar of soap
• 14 garden twine in a tin
• Homer Simpson doll that shouts ! messages to
  passing drivers

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New Roles

• Traffic Generation
• Pottery Barn announces store opening with see
  thru wrap
• Beyond just the traditional uses
• Exotic design
• Over and undersize mailings

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New Roles

• Total Synergy with All Other Methods of Selling

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Questions?