The New Focus Group, Courtesy of Starbucks

When retail business suffers and sales plummet, corporate executives scurry into action. They create focus groups, send out customer surveys and develop their own "fixes" based on what they think may or may not be wrong. But, when Starbucks' sales started dropping, the company took a different route. In typical Starbucks style, they created a whole new way of interacting with customers by creating an online social networking community--MyStarbucksIdea.com.

Except its not like MySpace or Facebook with profiles and such, rather it's an opportunity for real Starbucks customers to tell Starbucks what they need to do to increase loyalty and thus, sales. The new site was launched mid-March and within the first week had received more than 100,000 posts. Customers can share their ideas for improving service and products, vote on existing ideas, post comments on others ideas and, my favorite, see which ideas Starbucks is already implementing. Real life Starbucks employees (typically heads of specific departments) post how customer ideas are being implemented. I LOVE LOVE LOVE this!

Check out some of the changes Starbucks has made since the site launched in March:

Option to not print receipts
Complimentary wi-fi (It's about time! Currently, marked as "Coming Soon")
Punch card system
Coffee ice cubes
Flavored foam
Increased personal cup discount
Smaller portion sizes
Gluten-Free Options (WOOHOO-this is a big one for me!)
Vegan Options
Electronic sign showing song now playing
Birthday brew

I ended my love affair with Starbucks some time ago, as their lingo, lack of complimentary wireless Internet and wheat-laden goods no longer served my needs. Instead, I visited local coffee shops that let me order a "small" drink, gave me free wi-fi (no passwords or annoying fees included) and nosh on gluten-free biscotti. But with these changes in place, I'm reconsidering. Maybe I can start seeing Starbucks again...

Regardless of what I do, Starbucks is certainly setting the stage for how retail businesses handle sluggish sales. It's no longer acceptable to throw together slick ad campaigns or spend endless hours in corporate planning sessions. In today's retail environment, it's all about going directly to the people you serve.

Starbucks is truly creating a connection with their customers that they never had before. And that is absolutely invaluable.

Dell jumped on this idea last year with IdeaStore.com, hoping to turnaround its negative customer service image. So far, the new site has been very successful. Which begs the question:

"Is it better to listen to tens of thousands of customers vote on ideas, discuss them and participate with them over a period of a couple months, or get 10 customers in a room, feed them sandwiches and listen to them behind smoked glass?" said Bob Pearson, Dell's vice president of communities and conversations.

I couldn't have said it better myself Bob.

So, what do you think--is it time to ditch focus groups and instead create online communities to connect with customers? Or what's your favorite idea for turning Starbucks around? Leave your comments here.

--Heather Strang

Tax Day MakeOver

There's simply no escaping it. I've kept busy, cleaned my house obsessively, reorganized file after file, and still I can't avoid April 15. I have to do my taxes. Soon. Sound familiar? We dread it, fear it, and procrastinate until there's no more time left.

But, Dunkin Donuts is seeking to change the bad tax day rap and shift it into a delicious day we look forward to. While I agree that tax day could use a PR makeover, I wasn't so sure what Dunkin' Donuts could do to transform my fear and dread to eagerness and anticipation.

That was until, I read their latest press release about their "Tax Day Donut Giveaway." Now, why didn't someone think this up sooner?! On April 15, Dunkin' Donuts is offering customers a free donut. Wow! Oh wait, that's with the purchase of a cup of hot coffee. Either way, a free donut is a free donut. Nothing turns a frown upside down faster than free baked dough.

Am I right, or am I right?

"We hope that Dunkin' Donuts can make Tax Day a little more palatable for tax filers and coffee lovers by offering them a delicious free donut. We know Americans work hard for their money and this is our small way of showing our appreciation," said Frances Allen, Dunkin' Donuts brand marketing officer.

Aww...thanks Frances.

I do love this idea. But, I don't eat donuts (for obvious health reasons). So, it got me thinking, what if other retailers joined in and gave away something I really wanted on tax day? Here's what I've come up with so far:

-Macy's could give away a Mariah Carey CD with a lingerie purchase.
-Wal-Mart could give away a box o' wine, when you buy a vat of Chex mix.
-Target could give away Choxie's with a prescription purchase.
-IKEA could offer up Swedish almond cake (yum!) when customers bring in their own bags.

The possibilities are endless. So, instead of Americans dragging themselves to the post office on April 15 to mail in their taxes, they could skip to the post office and then to the retailer of their choice to pick up a fabulous treat.

Nothing says "Happy Tax Day!" like a box of wine, chocolates, Mariah Carey and Swedish almond cake.

So, let's brainstorm. What are some tax day giveaways that would make your day? Pick out your favorite retailer along with one of your favorite products (think of a splurge item). Then, leave a comment here with your idea. Perhaps together, we can give tax day the makeover it so desperately needs!

--Heather Strang

Kohl's and JCPenney Will Make You Cry

When it comes to TV commercials, I don't have the time. I'm off to grab a snack, fold laundry--anything but watch 30 to 60 seconds of someone telling me I can't live without their product or service. But lately, two apparel retailers have been stopping me dead in my tracks, as I stare at the television in absolute awe. The new Kohl's commercial actually stopped me mid-bite. And nothing gets between me and my food. Until now.

Soft blue colors, gorgeous clothes, Ben Lee crooning "We're All in This Together" drew me in. Suddenly, I had chills. My eyes misted with tears. I wasn't being told to buy anything, I was being invited into a lifestyle where the sky is perfectly blue, the hair is neatly coiffed and the clothes are worn effortlessly (and don't even need to be pressed!). Little children giggle, and the adults are at ease. I want to live there! Thankfully, via YouTube, I can watch this masterpiece again and again.

JCPenney's American Living commercial elicits the same kind of response from me. I can't even talk when this commercial comes on--I shush everyone in the room. It's more subtle than the Kohl's ad, because I don't even notice the clothes. Yeah, it looks a bit like summer in the Hampton's (very Ralph Lauren), but the rest reminds me of growing up, falling in love and laughing with my family. And how cute is the little girl in the red boots stepping on her birthday cake? I mean, seriously. By the end, I'm pulling out the Kleenex. I'm sure Alison Krauss and Robert Plant's version of "Killing the Blues" isn't helping. Don't believe me? Check out YouTube and you'll also find yourself suspended in time, smiling and covered in goose bumps.

Pure genius. Kohl's and JCPenney are employing the same tactics that have made Apple and Nike successful for so long--using a combination of beautiful imagery and music to sell a lifestyle (that just happens to be donning their product). I'm convinced that the success of these commercials is all in the song choice, because it dramatically takes you to whatever you're being shown visually.

Yay Kohl's and JCPenney! I would love to see more retailers employ these advertising methods-- it's not about sales and shoving a product down someone's throat; it's about making people feel something so overwhelming that they can't help but fall in love with your product. And then, tell everyone about it. In a blog.

Now, if you'll excuse me, I'm off to shop at my two new favorite stores...

What do you think of the commercials? Have examples of other retailers who are using commercials to connect with the public? Send them my way!

--Heather Strang

Leaping Ideas

This past Feb. 29 was a leap year. Worldwide we were all given an extra day. What a treat. In these over-scheduled, over-programmed, over-committed days, where we seldom have enough time to get everything done during the course of a day, the prospect of an extra 24 hours is a true luxury. Did you take advantage, or did it just slip by? Retailers with bricks and mortar stores benefited from the additional shopping day and reported earnings up, albeit slightly, for the month. They seem surprised.

A few very clever retailers took advantage on their Web sites, if not in their physical stores, to drive extra sales. Kudos to them, they were on the ball. Ralph Lauren had a cute Web site page devoted to a leaping polo pony presumably on its way over a hurdle and onto the mall to take advantage of the sales. Retailers more in tune with times took advantage of the potential windfall, with their extra day, and extra savings monikers. Some retailers offered great $29 sales, like A&E’s DVD sale, and Aeropostale had a $29 jeans sale, a great buy, that I did not take advantage of, where as Bluefly.com and Bodyboarders Surf Co. had a 29 percent off sales incentive. Disney had a “Goofiest Week of the Year” with Goofy as its pitch person. Horchow’s, Walgreens and the Memory Zone had leaping frogs--it was interesting to see the variety of frogs, and how a frog could reflect the aesthetic of the store. Petco opted for a hyperactive leaping beagle, presumable excited that its master was bringing home some kind of a doggie treat. Shoes.com asked patrons to leap into their shoes, warning “that savings like these may not come again for another four years.” The Container Store was perhaps the most clever with: “Leap year happens every four years. Filing your taxes doesn’t. Get organized today! Organize before you itemize.” These smart retailers capitalized on the once in every four year event. Congratulations are due. Many retailers missed the boat entirely, neglecting to even acknowledge the day. Shame. Shame.

Maybe savvy retailers looking for a reason to drive additional sales will take advantage of the eclipse, St. Swithens Day, quirky historical anniversaries like the invention of the paper bag, or Barbra Streisand’s birthday (April 24). After all, every day is worth celebrating.

--Ron Knoth, Guest Blogger

Victoria's Secret Takes Sexy Back

The recent economic downturn has everyone in a frenzy. Retailers are drastically cutting employee counts, diminishing the number of new store openings and scaling back on merchandise. But, one retailer in particular has been so scared by the downturn that it's taking sexy back, regardless of what Justin Timberlake says.

Victoria's Secret--long known for its scantily clad pencil-thin models and juicy offerings--has a confession to make. It just might be too (gasp!) sexy. Hmm...what was the first clue, the over-the-top, full of pink and glitter "What is sexy?" marketing campaign, or the "Very Sexy" and "Sexy Little Things" lingerie lines?

No wait, I'm pretty sure it's the itty bitty sizes that every piece of clothing and lingerie comes in, regardless of what's printed on the label. For example, if you're a size 8 normally, you'll have to buy a 12 or nothing at all, because they won't have that size available. Not that I'm bitter. I just don't shop there anymore.

Apparently, execs at Victoria's Secret are starting to notice that the only ladies shopping at its stores these days are young college-age girls, who were introduced to the brand through the Pink line (reporting $900 million in sales in 2007).

The Pink campaign, filled with blaring music in stores and electric hot pink decor, has turned off more mature shoppers and left the retailer with a less-sophisticated set of customers. And so now, Vicky is calling the whole thing off, vowing to change her super-sexy ways.

CEO Sharen Jester Turney said recently in an analyst conference call, "We have so much gotten off our heritage. We will return to an ultra-feminine lingerie brand to meet [customer] needs and expectations."

The retailer is promising to raise the sophistication of its lingerie offerings and will add sizes that fit mature women's bodies as well (it's about time!).

Victoria's Secret isn't saying when these changes will take place, but their Web site already seems to reflect less of an emphasis on Gisele with wings pouting her lips in a barely-there get-up, and instead features a more mature form of sexy--minus all the wings and glitter.

Well, I for one love it and can't wait to see the retailer shift into offering lingerie for all women, not just college-age gals. What about you? Do you think Victoria's Secret is panicking for no reason or the change is a long time in coming? Leave your comments here.

--Heather Strang

Gap Turns On the Color

I heart Gap. And not just for their clothes. My love affair began when the monster retailer paired the adorable SJP (Sarah Jessica Parker) with smokin' hot Lenny Kravitz. And their khakis aren't too shabby either.

Gap is taking their love of music to a whole new level with the Sound of Color promotion. From now until March 15, you can visit: www.SoundOfColor.com and listen to (and download!) original music from a host of up and coming artists. Even cooler and so very Gap, the company assigned each artist a color and then requested they pen a song about that particular color. Then, Gap enlisted the help of five filmmakers to create music videos for each song, about each color. Now, I have no idea where Gap is going with this. CD/DVD and a free pair of khakis? I can't imagine, but for now, I'm digging the tunes.

Pay special attention to Marie Digby, whose yellow color and subsequent "Paint Me In Sunshine" song is absolutely divine. I was so impressed I joined her MySpace. Another notable is the color green, performed by Swizz Beatz, who's had an impressive career producing hot tracks in the hip-hop world. The video is bizarro, but the song still rocks. The Sound of Color site includes fun facts about each color, as well as bio information on the artists, the making of the videos, artist interviews and links to the artists' sites.

Additional artists featured include:
-The Blakes, Seattle-based indie rock group (Blue)
-Dntel, Electronica (Red)
-Raveonettes, Punk/Soul (Black & White)

So, Gap has my attention. And I'm wondering--what's the scoop? Here's the official statement:

"Music has always been a significant part of Gap's history, so we're always thinking of new ways to connect with people through music," said Dennis Leggett, creative director for Gap brand. "With much of today's music being consumed digitally and shared online, we wanted to create an online experience where people could discover new, original songs and share them with fellow music lovers."

Oh, c'mon--there must be a plan to monetize this. Turns out, Gap's latest promo is about using colors to liven up your wardrobe. Chi-ching! However, I can't find any cross-promotion of the Sound of Color site on the Gap shopping site. Interesting...Whatever is going on, I have to give love to a retailer that gives me free downloads and excellent tunes from actual artists (no digitally created bimbettes here!).

What's your favorite color/artist from the Sound of Color site? Do tell!

--Heather Strang

Bust A Move...In the Mall?

"Hey Mr. DJ, put a record on, I want to dance with my baby." So croons Madonna. In the mall. With a live DJ spinning records...er...CDs. Sound silly? Over the top? Well, it just might be the next phase of mall entertainment.

With Nordstrom recently ditching its well-loved tuxedo clad piano players, more retailers than ever before are seeking to increase their "it" factor by adding super hot live entertainment, such as on-site DJs. Of course, the hipsters in L.A. started this new trend. In Los Angeles, Neiman Marcus, The Gap, Bloomingdale's, Sephora and Apple have all had Mr. DJs spinning sounds in-store to entertain the younger, and presumably more chic, demographic. In fact, Neiman Marcus Cusp stores bring in DJs twice a month in hopes of inspiring young shoppers.

According to American Public Media, young consumers spent $180 billion last year alone. Teens were also expected to spend 2.5 percent more during the holidays than their adult counterparts. So, with the sounds of sales ringing in their ears, retailers are seeking ways to get younger shoppers into their stores, and get them to stay there.

DJs help create a shopping experience, above and beyond the usual muzak or classical tunes. Apparently, great DJs watch shoppers, looking for body language clues about not only what clothes they like, but what their fave tunes are. The results? Fabulous music=longer store stay= more purchases. And I have to agree. I know I've stayed in an Express store far longer than intended, because I wanted to hear the entire Kylie Minogue song. Or was it Fergie...I can't recall. Anyway, the point is--great music does create longer shopping time, and hopefully more purchases.

The trend is catching on. Lee Dyson with Hey Mister DJ reports that retail now accounts for 20 percent of his business and it's continuing to grow. Dyson also says that '80s music is the most popular genre, due to its broad appeal. I didn't even know that teeny boppers liked that stuff. Very cool!

While I have yet to experience the DJ trend (things like this can take some time to make it to Portland, Ore.) I would love to hear your DJ stories. Are people dancing in the malls? High-fivin' DJs? Do tell!

--Heather Strang

Shop Macy's...at 2 a.m.

The question of the hour is: Do YOU have all of your holiday shopping done? I know, I know--so many people, so little time. But, in an effort to make life a bit easier on all of us, Macy's will keep seven of its stores open 24-hours a day starting today, Dec. 21 to Christmas Eve. Talk about relief for last minute holiday shoppers!

Last year, the company did a trial run in Queens, N.Y., with amazing results. Apparently, there are people who need to do their Christmas shopping at 4 a.m. According to Macy's, this is purely a customer-service project--meant to help all of us last minute shoppers. Aww...thanks Macy's!

Five of the 24-hour stores are located in New York, including the Herald Square flagship location, and two in New Jersey. They'll be open from 7 a.m. on Friday the 21st to 6 p.m. on Monday the 24th. Wouldn't it be great to stroll into Macy's at 2 a.m. just to see who's there? Okay, someone do it and report back.

This all-night venture is the ultimate display of putting your customers first. Imagine what a difference this will make for those who work odd hours and for moms who are pressured for time. How can anyone Christmas shop with three kids in tow? It's impossible! Weekend shopping is a total nightmare (for those of you that haven't noticed), so with Christmas bearing down on us, a 3 a.m. shopping spree doesn't sound so bad. You can dance down the aisles, with virtually the entire store to yourself.

So, get to it! Let us know what Macy's is like in the middle of the night. A dream come true? Or a little creepy? You tell us.

Happy Shopping!

--Heather Strang

Stalk Santa This Holiday Season!

Kids love Santa. Adults love him as well, even though we know he doesn't actually exist. Our culture is filled with Santa songs, movies and books. But, what we don't have--until now, that is--is a way to track Santa's journey across the globe. Luckily the military's North American Aerospace Defense Command (NORAD) has loaned out its technology to Baltimore-based Becker Group.

The Becker Group has created a genius way to cater to our love of Santa and make a little cash, with its Santa Tracking Station-- now appearing in Macerich malls throughout the United States. The exhibit uses high-tech green screens so that shoppers can have their picture taken in an airborne sleigh flying over world landmarks. Tracking Santa's journey may seem a little weird since Santa doesn't exist, but it also sounds like a lot of fun. Best of all, the Becker Group reports that the tracking station increases consumer mall time and changes foot-traffic patterns--which presumably will result in higher sales. Yay--three cheers for stalking Santa!

Photo sales at Macerich's Westside Pavilion Center in Los Angeles are skyrocketing by more than 40 percent over last year's sales with the tracking center in place. Another smart element of the Santa marketing campaign is the online presence. Becker Group also sets up a Web site that includes a blog by Oliver D. Elf and lets kids (and adults) send e-mail letters to Santa. So cool-- Santa has email now!

Susan Valentine, senior vice president of consumer experience at Macerich had this to say, "The Santa Tracking Station is an innovative way to enhance our guests' shopping experience during the holidays. Our relationship with NORAD has allowed us a very unique opportunity by educating consumers about their ability to track Santa during his journey."

You say track, I say stalk. But, whatever--potato, po-ta-toe. Same difference. In any event, it's a super fun concept for kids and adults. I love it!

Know of retailers doing it up big for the holidays? Any Santa Land stories you'd like to share? If so, leave us a comment.

--Heather Strang

Retailers Need The Secret

The glass is half full. The grass is greener on the other side. Papa does have a brand new bag. In a culture that revered "The Secret" for its, "what you think about expands" practice, you'd think we would use this kind of optimism for the stock market and retail sales. Not this holiday season. So far, the doomsday-ers are out, telling us sales are dropping, consumers are emotionally distraught (really?) and the sky just might fall on us.

Despite the fact that we're deep in the holiday season, a time of total optimism, I read daily reports that retail sales are dropping or won't meet expected forecasts. Take for instance home decor. As the home sales market drops, credit standards constrict and fuel prices shoot through the roof, home decor retailers are in a panic. So it was no surprise to find several articles dedicated to less-than-optimistic insights about home decor retail sales. Which is sort of depressing. Especially if you're in the home decor business.

Home Depot's panic turned into aisles of holiday wrapping paper, snow villages and artificial Christmas trees; all in an attempt to take advantage of shoppers tendencies towards impulse purchasing--something we've all fallen prey to a time or two...or three. "With the rise of gas and home-heating prices and the mortgage-rate concerns, shoppers anticipate cutting back on many categories, including home," said Wendy Liebmann, president of WSL Strategic Retail. "It's a season of mind-set over matter, as shoppers feel very unsettled about what the year-end will look like for them financially and emotionally."

Are you emotionally unsettled? Maybe, maybe not, but I sure wish everyone would cheer up. Perhaps I'll need to send out copies of The Secret.

Home retailers are pulling out all the stops, offering new merchandise and running special promotions. The Pottery Barn is hosting holiday decorating classes (fun!), while Macy's is crossing its fingers, hoping that a new Martha Stewart product launch will help their home department. Retailers such as The Container Store and Design Within Reach are putting their efforts into direct mail and e-mail offers. And Home Depot beefed up its online presence with comedian Steve Harvey giving customers tips on preparing their home for the holidays.

And really, it's not all that bad. Despite reported negativity about holiday retail sales, the National Retail Federation expects 22 percent of adults 18 and older to receive home decor gifts for the holidays. How's that for brightening up your spirit? I may send this over to the execs at Home Depot...

Maybe we should look at retail sales like the stock market--whatever our confidence level is, is what actually occurs. If it truly is all about confidence, then let's put on a happy face and expect amazing and incredible holiday sales for 2007. Because, it ain't over, 'til it's over. There are still 12 solid shopping days left for sales to surpass any of our wildest dreams.

Now, go watch "The Secret" and visualize skyrocketing retail sales!

--Heather Strang

Naked Men Take Over Bloomingdale's

I love Bloomingdale's and I love men. So, it just makes sense that the two would naturally come together. But imagine my surprise (and glee!) when Bloomingdale's announced that dozens of scantily clad men wearing nothing but a new fragrance and a terrycloth robe would be roaming the aisles of their store on Lexington and 59th St. in New York today at 12:30 p.m.

Wait a minute...am I getting an early birthday present?!

Sadly, no. But, I suspect someone at Bloomingdale's read my wish list. Their marketing gurus decided that the most effective way to market Michael Germain's new fragrance, Sexual Fresh for Men, was to have dozens of "sexy, masculine men" wandering the streets of Manhattan. God bless 'em! I can't get a ticket to NYC fast enough (it's $433 round-trip in case anyone wants to send me the cash) to check out this ingenious retail marketing display. I would be going in the name of research, of course.

As a woman, this type of male exploitation brings a smile to my face. Typically, fashion retailers, designers and the like use barely clothed women as a way to advertise or promote their products. And, while it's a pretty successful marketing tool, it also gets more than a little tiring to look at. For the record--women don't really want to see other woman naked, so it's not exactly an effective way to market to us gals. This makes the Bloomingdale's promotion utterly refreshing. Even if I can't personally be there to witness this divine promotion, I will be there in spirit.

It's too bad I can't make it, though, because I have a feeling that total mayhem will ensue. Sexual Fresh for Men is a blend of mandarin, "gentleman's lavender" and a smattering of aphrodisiacs. Michael Germain's first men's fragrance entered Bloomingdale's more than 10 years ago and is still the No. 1 brand, so chances are, Sexual Fresh for Men will be just as good, if not better. Apparently, the marketing execs at Bloomingdale's also want to cause complete chaos in their store. Half-naked men wearing aphrodisiacs, and women, like myself, following them around? Wow. Don't say I didn't warn you.

In any event, please, please, please go check out this fan-tab-u-lous display of men (in the name of retail marketing research!) and report back. And, if you could take pictures with your camera phone and send them my way, that would be much appreciated.

So, ladies and gentlemen--what do you think of this campaign? Sexist or smart marketing?
Would love to hear your thoughts.

--Heather Strang

Retail Marketing Rocks the House

Retail marketing should be fun. Forget about coupons or those silly "buy two, get one free" offers. No, what I'm talking about is crafting incredibly clever and engaging marketing tools. Contests and giveaways that 1) give consumers something they really, really, really want (iPod anyone?) and 2) can be used for multiple marketing purposes. Fortunately, some retailers are making this happen in a big way and everybody's winning.

Take, Patagonia, for instance. They sell outdoor gear to sports enthusiasts, such as: skiers, rock climbers, surfers, hikers, fly fishermen/women and snow boarders. Recently, they created a photo contest titled, "Capture a Patagoniac", where customers are asked to send in a photo of themselves or a family member (blackmail time!) partaking in some type of sport. But, the catch is, they need to be donning Patagonia digs. If you can find a photo of a family member rock climbing, then you've really hit the jack pot. Because no one looks good in those harnesses. I'm serious. I've had to burn every photo of me on a rock climbing wall just to protect myself from this type of exploitation.

Even if the photo is fairly embarrassing, Patagonia makes the pay-off worthwhile. For one, customers are able to vote on their favorite entry. Rally your friends' folks! From there, Patagonia will award gift cards ranging from $50-$100 to three finalists from each of their 23 stores. Then, all of the finalists are entered to win the grand prize vacation to Vietnam. Patagonia partnered with Backroads Travel Co. to put the trip together, which means this fabulous contest probably cost the retailer virtually nothing.

Patagonia = Smarty McSmarterton. Not to mention, they'll now have oodles of photos of customers happily (or in the case of rock climbing photos, awkwardly) sporting their gear. Make customers sign a photo release and you've got print/Web marketing images for years to come. If I could, I would high-five Patagonia's marketing director, right now.

And wait--there's more. 99 Cent Only Stores are rockin' it by giving out 99 cent iPods to the first nine customers at the opening of any of their new stores...99 cents for an iPod?! Where do I sign up? After that, the next 99 customers can purchase a scooter for 99 cents--although there's no clarification if this is an old people's scooter or a Dumb & Dumber scooter. But, honestly, who cares, 99 cents for a piece of operating equipment? I'll take it! Oh, and it keeps going. The following 99 customers after that can buy a handheld sewing machine for 99 cents. I can sew things with a handheld device? Life is soooo good.

The next 99 after that receive the oddest gift of all--a three-in-one vacuum/flashlight/fan. Wow, I was really excited until that one. You mean, I'm going to vacuum the floor in a dark, hot room? Okay, it's only 99 cents, so I might as well...It keeps going as every 99 customers through the door receive handy items like a professional organizer, clip-art jelly pen (huh?), automatically powered scissors and much more. The point is, they're giving away good stuff--except for a few random items--and they're doing it all in increments of their brand. How fun (and smart!) is that?

So, these are the retail campaigns that are catching MY attention right now. What about you? Know a retail marketing genius? Tell us about it!

--Heather Strang

Who Is Diesel Dating?

Granted, I’m not into social networking--Facebook, MySpace and iVillage are as foreign to me as Mars, but I can point out the red planet in the night sky, and I’m well aware of how pivotal the whole social networking community is. So kudos to Diesel Denim for just launching its version of social networking on Diesel Dating. They photographed their models wearing Diesel Jeans and posted both real and felonious personals for them. Diesel is encouraging their customers to do the same. While the figures aren’t in yet, it appears that young people in the droves will be dumping provocatively composed personals for themselves wearing, you guessed it, their Diesels. It’s so scathingly brilliant that I wonder why other retails don’t get in the game.

--Ron Knoth, Guest Blogger

Wal-Mart Learns From Its Mistakes

Remember when you'd get in trouble for sitting on your baby sister or eating pixy stix before dinner? Sure, you'd feel bad and maybe a little scared (my mom had this crazy vein throbbing in the middle of her forehead), but as soon as she wasn't looking or another pile of sugar appeared, you'd dive right back in. Well, not much has changed, right? We date the same types of guys or girls over and over again, make the same mistakes in business and never fail to tell our friends, yet again, that we can't stand their significant other. Fortunately, retailers aren't as stubborn as the rest of the world.

When Wal-Mart launched its upscale clothing line, Metro 7 in October 2005, sales soared. Then, suddenly, they crashed and burned. For damage control, Wal-Mart pulled the line from more than half of its stores, stating it was simply in too many locations too soon. Fast forward to present day and Wal-Mart, once again, has an upscale women's clothing line to launch. But, this time, they're learning from their mistakes--unlike me!--and are only launching z.b.d design online.

The new line features everything from tweed jackets to square neck dresses, turtlenecks and crew tees. And guess what? It's actually pretty cute clothing for a discount retailer. Prices are extremely affordable, from $9.88 to $36.88, and I'm really digging the tab-waist trousers and 3/4 sleeve crewneck. I might even have to order a few things for my continued "research." Speaking of, Wal-Mart did its research this time around and discovered that its Web site customers earn up to 50 percent MORE than the average in-store Wal-Mart shopper, who makes roughly $40,000 a year. It's no wonder the Metro 7 line tanked so quickly. If customers are used to paying $5.88 or less for clothes, it will definitely take them longer to come around to paying more. So, it makes sense to launch a new clothing line, on-line, where Wal-Mart's money-making consumers reside.

I never thought I would say this, but Wal-Mart is actually setting a great example for all of us. Learning from our mistakes in life and in business is critical to on-going success. And that's what makes individuals and retailers billionaires. People, take note.

Now, if I could just find some more of those pixy stix...

Tried the new z.b.d line? Let us know if it's as hot as it looks!

--Heather Strang

Macy's at the Emmy's

Think the Emmy's--airing Sept.16th, 8 p.m. on FOX--are all about checking out who's wearing and winning what? Wrong. Pay closer attention and you'll notice that the Emmy's are actually an ideal opportunity for retailers to captivate their market. At least, that's Macy's plan.

The retailer is pulling out all the stops to entice everyone and anyone really, to increase their shopping at Macy's. The 2005 purchase of May Co. produced a backfire that has left the retailer with less-than-glistening sales results. Fortunately, Macy's has plenty of fire power behind the Emmy launch of their new campaign. That's right, they went where all retailers go when things look dismal--celebrity land. And they snagged some good ones--Donald Trump, P.Diddy, Usher, Martha Stewart and Jessica Simpson. Ads will run throughout the fall in hopes to raise Macy's recent listless sales. I'm actually excited to see what Macy's put together, and it outta be good with an alleged $100 million spent on the celeb-driven campaign.

Word is, the ads make fun of celebrities (do we love anything more?! I sure don't!) showcasing Trump blow-drying his "hair" and Jessica Simpson struggling to open a Macy's door. Nice. So far, I'm in. Usher will be featured as his usual arrogant self bragging about his two new fragrances--Usher for Women and Usher for Men. Wow, what incredibly strategic branding, Usher. Lame-o. The funny part is he's bragging to Martha Stewart as she obsessively fiddles with her 2,000+ products at Macy's. From the outset, it seems the $100 million may have been well worth it. Even if I have to see the overexposed Usher...yet again.

Now, I'm not sure I'll shop at Macy's after laughing hilariously at their celeb focused ads, because frankly, I miss my Meier & Frank (now Macy's). But, it may help shift my perception. In an ever changing retail market, perception is everything. Right now, Macy's is stuck between a rock and a hard place--middle class shoppers in love with Target's discount prices, and high-end shoppers languishing in Nordstrom and Saks land.

But, Macy's has had success with celeb-driven marketing in the past. Their sponsorship of Bravo's Project Runway turned out to be an enormous success, with the show's "Guide to Style" filmed on location at various Macy's stores. As that show continues to rise, Macy's involvement also does--bringing a completely different shopper into its stores.

So, while the verdict is still out--obviously, since the campaign hasn't aired yet--the results are bound to be interesting. The campaign does carry the distinct possibility of impacting fourth-quarter sales results. If anything, I know I'll be paying more than the usual snide comment attention to the Emmy's. (i.e., Did Ellen Pompeo lose yet another 10 pounds? Eat something, girl!) It really is all about the commercials anyway, isn't it? Thanks Macy's for making the Emmy's interesting again!

Think Macy's can drive more in-store traffic with a star-studded fall ad campaign? It might happen; people...let me know what you think.

--Heather Strang

 

Will Fashion Retailers Let MySpace Play?

MySpace wants to play. It's gotten a little bored with merely connecting old high school friends, promoting bands and enabling against-god's-will love connections. Now, MySpace wants to take on fashion. In late August, the social networking leader launched its Fashion Community (and hey, it's already got 52,000+ friends, so it must be good). Visitors can watch videos of fashion shows and photo shoots, get the latest celeb fashion news and catch ads for the fashion-savvy.

Hello retailers! Could MySpace be making this any easier for you? If you're a fashion-focused retailer, create a profile (I know I've advised you on this before--but I'm serious this time!) and add yourself as a Fashion friend. Then buy some ad space. Got a photo shoot or some other fantastically interesting fashion piece? Submit! The MySpace fashion community is HOT, HOT, HOT. It's a great place to connect with the demographic that will go without food for a month just for clothes. This is fashion, baby!

The MySpace Fashion community also includes forums, with topics ranging from "Baggy pants for girls" to "Who cares what size you are?" Okay, maybe not earth-shattering topics, but still a great opportunity to inform the social networking community about the baggy pants for ladies that your store carries and the fact that you're committed to offering clothes with sizes for real women. The beauty of this community is the ability for everyone in the fashion industry--retailers included--to connect with their audience in a very real way. Imagine the opportunity to find out exactly what your target market wants and have "conversations" with them about it. How very 2007 is that?!

Now, obviously, MySpace isn't the first to come up with this fabulous marketing ploy; Iqons and WhoWhatWearDaily have been doing the same thing for some time. However, with 115 million unique visitors a month, MySpace has a definite edge. And that's why both online communities partnered with MySpace, furthering the intensity and reach of this social networking fashion opportunity.

MySpace Fashion will officially launch this week, during New York's Fashion Week, Sept. 5-12, 2007. How very appropriate! So, retailers--what do you say? Jumping on board? I say, forget about the radio (yawn!) advertising and start doing some serious social networking. The payoffs are sure to be HUGE.

Already a MySpace Fashion friend? Let us know if it's all its cracked up to be.

--Heather Strang

JCPenney Mixes It Up

"Style is like science, so start experimenting." These are just a few of the pearls of wisdom you'll find frolicking about on JCP's (as they're now known to the cool kids) Web site, at: jcp.com/mixitup.

To really mix things up, JCP has created a reality Web show called "Flipped." The show is hosted by clothing designers Chip and Pepper Foster, creators of the C7P line, and follows teen cliques at a New Jersey high school. Students are taped as they spend time outside of their usual clique donning completely different outfits, created by Chip & Pepper. The concept so obviously makes sense. I mean, if you're already mixing up your group of friends, why not change up your clothes as well?! You'll laugh and cry as you watch teen girls pressure the newbie into eating sushi (which she hates) or watch some snobby suburbanite talk about how she would rather be at a "house party" than playing mini golf with her new clique. But, hey, she looks good doing it--so who cares, right? There are eight Webisodes total, all appropriately titled, from "Back With the BFF's" to "Lip Gloss vs. Rifle Toss." If you're beginning to suspect that the reality Webisodes are simply ploy's to get teens to buy JCP clothes...well...you're exactly right.

But, have no fear, it doesn't end there! If kids aren't sure which clique they belong to--JCP has that covered, too. In the "Shop by Style" section, cliques are paired with the appropriate matching clothing style, like: Diva, Retro, Class Prez, Baller, Rockstar, Preppie, SK8R and Varsity. And just in case visitors don't feel comfortable boiling their entire self-worth into a label, they have the option to mix and match--add a little preppie to that diva outfit or ball out your class prez gear. Yikes!

The site also features mobile updates, "meet the characters" from each Webisode and online versions of JCP commercials. The new campaign, including the reality Webisodes, was developed by Saatchi and Saatchi in New York. All in all, I have to give them props--it's completely unlike anything J.C. Penney has done before. I love creativity and this campaign is seeped in it. Is it a little over the top? Absolutely. But, with all of the advertising that's running amuck these days, how else does a retailer catch the wandering eyes of a teenage market? While it may seem like a rhetorical question, it's not. If someone has the answer, do tell!

In the meantime, check out the JCP Mix It Up site and send us your thoughts.
Have a similar campaign running? Leave the link in our comments section so we can check it out.

--Heather Strang

High-Fashion & Retail Collide

Gap loves to cause a frenzy. So, what would make the release of their fall campaign any different? Utilizing a little star power, the apparel giant introduced their "Classics Redefined" campaign this summer featuring celebs decked out in Gap gear. They also utilized the photog skills of a certain photographer, you may have heard of her--Anne Leibovitz--to handle the dramatic portrayal of celebrities in wide leg trousers and v-sweaters. And, voila! Can you hear the dollars rolling in? Quite the combination for creating a killer retail marketing campaign.

Gap has all the elements: celebrities, award-winning photographer, black-and-white dramatic prints, and of course, a "new" fall line. I use the word "new" lightly, because honestly, everything at Gap looks exactly the same to me. I know this because I shop there regularly. In fact, I'm wearing Gap jeans as I write this. The "new" fall line is more of the same regular Gap style (which I love!) only prettied up with celebs and great photography. Keep your eyes peeled for:

-John Mayer in a sweater vest
-Lucy Liu in a little black sweater dress
-Liev Schreiber sporting the "Haberdashery" shirt
-Sarah Silverman (pictured), donning wide trousers
-Forest Whitaker, in the "Macintosh"
-Selma Blair, wearing a deep v-sweater
-Ken Watanabe, in a tailored white shirt
-Regina King, in a short-sleeved turtleneck
-Davis Guggenheim, wrapped in a v-sweater
-Twyla Tharp, wearing a french cuff shirt
-Marcel Wanders, snuggling in a soft tailored blazer
-Puffy (wait, there's more than one?!) AmiYumi, donning the wide leg jean

Okay, so I guess we're also using the term "celebrity" lightly, but you get the point. The photography alone will catch a consumer's eye.

But, would this stunning marketing campaign work for Kmart's fall line or JCPenney? Or is it simply the Gaps, Saks and Cartiers of this world that can successfully use celebs to hock their merchandise? In the instance of Kmart/JCPenney, if Anne Leibovitz took the snazzy black-and-white pictures of celebs (even people I've never heard of) I would pay attention. In all honesty, I would probably be more open to buying clothes from the retailer, based on the campaign. How very fickle of me! Turns out, pretty faces and photography affect my opinion of a retailer. On the other hand, Kohl's has teamed up with Fergie (yuck!) and so the opposite occurs--I'm completely turned off. But, Fergie in a B&W Leibovitz photo? Maybe...

What about the rest of you out there, are you as superficial as I am? Does this hot Gap campaign make you want to shop there? C'mon, let us know. It's your turn to share!

--Heather Strang

Facebook Takes Over the Retail World

Adults have them, and so do kids. C'mon, I know you've seen the Dr. Phil where he rips into a mother of three because of her scandalous pictures on MySpace. Or what about the beauty pageant winner whose Facebook pictures were used as blackmail? Any way you cut it; social networking is H-O-T, hot. Wal-Mart is all over this, recently launching a "Roommate Style Match" group on Facebook to capture college kids on their way back to school.

Students can take a quiz to discover their "decorating style" and (ta-da!) receive a list of products they can buy at Wal-Mart that best reflects their style, and their roommates', of course. How smart is this?! Students can also search Wal-Mart's Web site for eco-friendly products or download a shopping list of dorm room pieces. The hip, new items can then be shipped directly to the school (no furniture hauling for dad), making life a lot easier for parents and kids. And let's be honest, mom and dad are going to be all over that, even if they don't have a Facebook account. This idea is absolutely brilliant--and I don't even shop at Wal-Mart.

In a world of Facebook, MySpace, LinkedIn, YouTube and a variety of social networking and media sites, retailers could benefit substantially from plugging in. Securing teen and college kids' dollars is extremely lucrative. Connecting with them on their own platform is invaluable. Apparently, Wal-Mart did its research, because according to the National Retail Federation, the average first-year college student spends $1,112.62 on back-to-school gear. Cha-ching. Who's in for setting up a MySpace account?

In the information age, creativity reigns and it won't be too long before other retailers catch on and start hiring bloggers, launching social networking promotions and posting YouTube videos. Times, they are a-changin'. While we're all just making this up as we go along, the pay-off is potentially huge. Only time will tell, and I look forward to seeing Wal-Mart's quarterly sales results, how about you?

Speaking of you--Are you a retailer that already uses social networking sites for promotion? If so, we'd love to hear about your campaign or your experience interacting with the Facebook/MySpace crowd. Leave a comment or e-mail us!

--Heather Strang

Earn Cash While You Sleep

What could be better than earning piles of cash while you peacefully snooze the night away? Well, I can't think of anything better and neither can a few business-savvy retailers. Sears, Kohl's and Dick's Sporting Goods are some of the retailers offering online-only discounts during the midnight hours. As luck would have it, there's a plethora of housewives, college kids and other consumers that turn to the Internet whenever they can't get their ZZZs. And, wonder of wonder's--they want to shop. God bless 'em!

While initially this behavior seems surprising, it's actually not. I watched in disbelief as folks camped out for days awaiting the opening of the Portland IKEA. Harry Potter is another prime example--adults and kids alike stayed up all night to be the first to watch the movie or grab the book. It's not any different in the 24/7 Internet world. Sears offers discounts of 10-20 percent between the hours of midnight and 6 a.m. on appliances--a section they want to increase sales in. Ingenious, insomniac-catered discounts! Kohl's promotes its "power hours" of increased savings between midnight and 7 a.m., while Dick's follows the same promotion hours, but calls it "the after hours sale."

With the average peak email reading time of 9 p.m-11 p.m, and spikes at midnight, 2 a.m. and 4 a.m--retailers are spot on. Competition often pushes businesses to extremes, but in this case, it just plain makes sense. If a large portion of your market is surfing the Web at these ungodly hours (that's right, I'm sleeping during all of this!), why not reward them with special offers and discounts? That way you can continue to snooze, and still bring in the cash. Not a bad deal, eh?

So tell us--have you ever made a late night Internet purchase? I must confess Amazon is my late night shopping location of choice--but I would love to hear about yours. Do tell!

--Heather Strang

Do-Gooders Unite!

Retailers are quickly becoming the ultimate do-gooders, partnering with charities around the world and putting their money where it counts the most--to serve the needs of the disadvantaged. Women's retailer J.Jill has even created its own charity, the J.Jill Compassion Fund, which supports more than 20 organizations in efforts to empower women. Since its 2002 inception, J.Jill has donated more than $1.2 million and recommended $700,000 in grants. Pretty impressive, right? Retailers are also getting creative, finding ways to engage the public in supporting the cause of their choice. And it most often happens in the form of a t-shirt. I'm wondering why not socks or cut-off jeans, but alas, I digress...

J.Jill has established an annual 'Nature of Compassion' t-shirt contest where the public battles it out to see who can design the most fashionable tee. J.Jill then chooses the winning design, which is later sold to the masses to raise money.

Retailers like Cartier and Saks have upped the charity ante by forming partnerships with celebs to catch the public's attention, not to mention encourage donations to their specific cause. Saks recently announced that Renee Zellweger would serve as the Entertainment Industry Foundation's Ambassador for Saks' Key to the Cure Campaign, supporting women's cancer research. Like J.Jill, they're throwing in a benefit t-shirt design, by the queen bee of clothing--Juicy Couture.

The question is, am I more interested in Saks' Key to the Cure campaign now that Zellweger is posing sassily in one of their tees? I'll admit that it does make me look twice. But, on its own, without Zellweger, I'm just as impressed that Saks is doing good--raising more than $23 million for women's cancer research since 1999. And Saks isn't doing it on their own--they've recruited Mercedes-Benz USA as a major sponsor and even photographer Michael Thompson donated his time to photograph Zellweger (and that can't be cheap!). Oct. 18-21, 2007, is the Saks shopping weekend and major push to raise cash for the cause. All in all, a fabulous way to make money and support cancer research.

So, what do you think, is the celeb and retailer charity partnership shameless or a good way to kill two birds with one stone--PR for the celeb, the retailer and the non-profit? Wait, that's three birds...but you get the idea. Let me know what you think!

--Heather Strang

Make It Stop

Would somebody in charge of those mall advertising displays please turn those stupid things down? Is it really necessary to BLAST the volume to almost ear-piercing decibel levels to garner the attention of passersby? If so, I really hope the operators of these network screens don't think that it's positive attention that they'll be getting. All super loud ads do is annoy people and make them ask themselves why on earth their ears are being assaulted by these things. A while back I didn't even notice these displays, but now it's hard not to--and that's not a good thing.

A month or so ago at North Point Mall in Alpharetta, Ga., I was browsing a kiosk selling sunglasses (hey why pay $250 for Prada when you can get a similar pair for $10?), when my shopping buddy and I simultaneously turned to each other and started laughing about how loud an advertising screen/kiosk near the elevator was. It's deluge of noise came almost out of nowhere, as if the evil device was watching us shopping, and taking note that we never so much as glanced its way. "Hey look at me! Look at me!" came in the form of an obnoxious, cheesy song played at absurd volumes. I thought perhaps since the stand was near an atrium it might have made it sound louder than it really was. But still, we felt bad for the kiosk attendant who had to sit there and listen to it all day.

The last straw came a few weeks ago, when I had an even more unpleasant encounter with another one of these things. I was at Cumberland Mall in Atlanta and decided to grab a quick bite to eat in the food court. The seating was sparse, but I noticed a large chunk of empty seats near the perimeter of the food court and snagged a spot. Within a few seconds it became evident why there was so much seating left open--an advertising display was just 10 ft. away, playing an irritating jingle that looped every 20 seconds or so. And, it was being played at an eardrum-shattering volume. At one point I came very close to spinning around in my chair and hurtling my food at its screen. "Take that!" I'd scream in victory, and the surrounding diners would clap in a thunderous standing ovation as sesame chicken slowly dripped down its screen. (Maybe if we were lucky, it would short circuit too.) But instead I glared at the stand, trying to will it to disappear in a puff of smoke, or at least for someone to walk by and kick a hole through it. Why did it have to be so LOUD?

Do retailers really want to be a part of these displays, advertising their sales with deafening ads? If the ads are too quiet, then they'll be tuned out; if they're too loud, they'll annoy people. Which is worse? To any marketing exec who boasts that there's no such thing as bad publicity, think again. There most definitely is. And if you don't believe me, well then I hope you like sesame chicken...

--Jessie Bove

Yikes! Celebrities Take Over Retail

Our culture is obsessed. Every time we turn on the TV, open up a magazine, or walk down the street we're accosted by images of celebrities. But, now they've finally done it. The obsession has reached gargantuan proportions--celebrities have now infiltrated retail. No retailer is safe--Borders and Macy's are already victims and are sure to be followed by other retailers like Kmart and Talbot's. When will the madness stop? Apparently, no time soon.

Former Welcome Back, Kotter star, Gabe Kaplan, made a recent appearance at Borders in Chicago and Los Angeles to promote his newest book, "Kotter's Back: E-mails from a Faded Celebrity to a Bewildered World." Huh? Isn't the expiration date on that sitcom long overdue? I'd be curious to know if Kaplan's July 6th arrival was as record-breaking as it appears. In any event, the press release announcing his momentous appearance was splattered out for the entire world to see.

And it doesn't just stop there. Prince, never to be outdone, recently went on a three venue tour within downtown Minneapolis, kicking it off at every rocker's fave spot--Macy's. The bizarreness of the venue didn't phase fans, who were intent on getting their Prince fix, even if it meant being sandwiched between aisles of perfume. I'm afraid this is just the start of a new way that our cultural obsession with celebrity manifests itself.

Retailers are smart. They know how crazed fans can be, even of shows that appeared millions of years ago (okay, 28 years ago). So when it's all about the bottom line, a celebrity appearance--to promote a new fragrance or book--may just be the ticket to increase sales. Because seriously, right after I finished listening to Prince play "Purple Rain," I would immediately buy something at Macy's. Okay, maybe I wouldn't buy, but I would think, "That Macy's is pretty darn cool, letting us have a concert here." And that's a win for everyone.

--Heather Strang

Red, Red (and Expensive) Wine

Tesco, a U.K.-based international supermarket, recently announced its plans to offer customers a higher-than-usual-end of wine. The retailer will offer the popular Australian brand, Penfolds--more specifically the 1999 Penfolds Grange bottle--for $200 a bottle. Marking the most expensive "supermarket" wine in Britain to date, Tesco's wine and spirits category manager Jason Godley said, according to Retail Week, “This would never have happened in a British supermarket even a few years ago. It suggests that Brits are fast shaking their reputation, especially with our European neighbours, as a nation of plonk drinkers.” 

We never thought of Brits as "plonk drinkers," but then again, I'm coming from the United States. Retail Week also reported that sales of bottles of wine costing more than $20 increased to 74 percent in the past two years, which prompted Tesco's decision to expand its offering to include a higher price point.

By comparison, U.S.-based Wal-mart recently tried the same thing in its Plano, Texas, store with a (gulp) $500 bottle of wine. Wonder how well that went over? But pointing to the wine trend, it's very clear that people all over the world--other than just the mainland Europeans--are starting to appreciate great wine...finally. Cheers to that!

--Rachel Brown

Woo-Hoo! Head for 7-Eleven

Now Diva is not a big Simpsons fan, but this sounds like big fun. The C-store 7-Eleven is set to get "Simpsonized" soon--it’s part of the global Simpson Fanfest. All the details are not yet available, but here’s what’s being planned as a tie-in to the upcoming new film, “The Simpsons Movie,” due for release in July. The chain will convert 11 stores across the United States to resemble the fronts of the Kwik-E-Mart, the make-believe, home town convenience store favorite of Homer and other characters in the Simpson cartoon TV series, and will offer products inspired by the show: KrustyO’s cereal, Buzz Cola and iced Squishees. Obviously, graphics and signing in the stores will further promote the theme. Bad news: only 11 stores will be decked out in Simpson style. [Bet those store operators are battling over the honor--this will be a major kid/youth-magnet]. Diva thinks this might be a great idea to perk up a C-store chain on a permanent basis--maybe launch a new Simpson C-store chain. [It’s more exciting than the 7-Elevens in my neighborhood.] Off to buy some KrustyO’s--Woo-Hoo!

--Diva

Predictions for 2007

(Disclaimer: This list of predictions does not come from DDI Magazine. It was provided by David Polinchock.)

Since it's the start of a new year, we thought that it was important to get some predictions together for the new year.  Here's a quick overview of the main points and you can click here to see them in more detail.  And don't worry, we'll do an end-of-the-year review to see how we did!

Prediction 1:  Authenticity is the Key: Companies not acting in an authentic and honest way will be subject to the wrath of the newfound consumer voice.

Prediction 2:  The Media Cycle Continues:  Learn about and use the new tools, but always remember the cycle of media.

Prediction 3:  Technology Continues to Engage: The use of emerging technologies will continue to accelerate in 2007 as we scramble to find new ways to communicate to our audiences.

Prediction 4:  The Advertising Backlash Grows:  As the consumer becomes more empowered, expect to see additional litigation and regulation as people strike out against advertising and its continued encroachment into every aspect of our lives.

Prediction 5:  Retail Grows in Importance:  Retail spaces will become even more important as a connection point between the consumer and the brand.

Prediction 6:  The Socialization of Place Continues:  What happens when the social elements of things like myspace leave cyberspace and enter the physical world?  Can and should brands use their physical space to help facilitate social interaction in the real world?

Prediction 7:  You need to E-tail Your Retail:  If I can do it on your Web site, I should be able to do it in your store.

Prediction 8:  Everyone's a Critic:  People like to critique you and today have no problem sharing their critiques with the whole world.

--David Polinchock