Fix The Product First

Competition in the supermarket industry has never been greater. Grocers are faced with new retailers who are attempting to gain their share of the food market. The number of visitors to any grocery store (let's call it "cume") and the amount of time an average customer spends in the store (let's call it "Time Spent Shopping") have been declining.

Caught in the whirlwind of a changing marketplace, Safeway Stores started losing money. After over 80 years of popular food at low prices, Safeway reported its first annual loss in 2002. Declining numbers of shoppers at Safeway stores antagonized executives of the company, causing them to reevaluate their product and positioning.

Market research confirmed that Safeway was in need of a new marketing campaign. They needed to "build cume" again.

Safeway management knew that consumers would be shrewd about hollow claims and superficial marketing that could not be substantiated by evidence of real change in their stores. A new flashy marketing campaign and "redesigned window dressing" would not be enough to win over today's skeptical 25-44-year-old customers.

They needed a new image, so they started by carefully revamping the product (their stores).

They did not medicate their declining cume problem with a glitzy marketing campaign. Instead, they first invested in their stores in a way that would make the customers' remarkable end-user experience worthy of word-of-mouth advertising.

They launched the largest remodeling effort ever undertaken by an American supermarket chain. They have spent over $3 billion in the last three years, and they have committed to spending another $3 billion in the next three years to remodel all of their 1,775 stores. Morphing the anachronistic convenience stores into new "lifestyle stores" has included adding full-service deli counters, organic produce sections, and expanded wine and floral sections.

Then, they started their marketing.

Now, combining their brand-surgery with a well-focused $100 million ad campaign to tell the story of their new position, the company is starting to see lucrative return in markets where renovation is complete.

Wall Street called them crazy. But the customers liked the change. Sales have advanced for the company this year by 5% (Marketwatch, October 2006). According to Google Finance, Safeway's share price is up by 30% since the beginning of the year.

There are several take-away points from the case-study of Safeway's brand rejuvenation:

Study Your Customers

Get to know the core desires of your audience. When people decide to listen to your radio station, it is because they have decided that listening to your station would be more gratifying and pleasurable than not listening.

What is it that your audience wants deeply? A few possible answers:

• Feeling of connection and influence
• To be seen as a generous person
• To be seen as a classy person
• To be seen as a loving person
• To be seen as a smart person

How does your programming offer validation for these deep desires?

Assuming that your listener has a deep desire to be seen as a loving person, do you have programming that validates that vision of them? Do you have a love songs show? Do you invite listeners to contribute to the community in a way that validates their sense of being a loving or generous person?

Help listeners get the experience they want, and you will get the ratings you want.

Tell A Story

Safeway's marketing tells the story of a company that had humble Idaho beginnings -- but always had a vision to serve people with quality wholesome foods and a welcoming atmosphere (note the mention of two deep desires of their customers). Marketers connect the passion of the founders' desire to serve and the evolution of their stores.

What is your radio station's story? Why do you do what you do? Look at the history of your radio station. What is it that brought you to the dance? Tell listeners about the people at your radio station and why they come into the station every day.

Change The Experience, Not Just The Branding & Marketing

People are more cynical than ever. They sniff out brand-facades and superficial claims quickly.

Take a lesson from Safeway, which upgraded the product selection and store atmosphere first. The end-user experience changed long before the new marketing campaign. They started inside-out rather than outside-in, knowing that savvy customers would sniff out superficial claims.