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From August 2008
By Tracy Mullin
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Sponsored by
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During a candid interview with The Wall
Street Journal in June, Home Depot CEO
Frank Blake recounted a conversation he
had with a vendor, who noted that “a
downturn is a terrible thing to waste.”
While some retailers have understandably
pulled back during this economic
environment, others are moving
full-steam ahead. That is nowhere more
prominent than during this
back-to-school season. |
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While back-to-school and back-to-college
spending is only expected to rise 2.5 percent
this year, it will still rake in more than $51
billion. A handful of retailers are getting
creative to drive traffic to stores and websites
with inventive promotions, new labels and
celebrity endorsements.
Some retailers are embarking on marketing
campaigns that focus on price, with OfficeMax,
Office Depot, and Staples all offering select
school supplies for a penny. To target the
price-conscious college crowd, Sam’s Club is
giving college students a $15 gift card with the
purchase of an annual membership and a free
additional card for a roommate or friend.
Other companies have created online content to
appeal to teens. Sears, for example, launched
its “arrive lounge,” an interactive website
where kids can vote for their favorite dancers,
enter sweepstakes and view a trailer for MTV’s
new movie, “The American Mall.” Students can use
the site to download wallpaper or unlock clues
to win the grand prize: a performance at their
school by “High School Musical” star Vanessa
Hudgens.
Retailers are also counting on celebrities to
propel back-to-school sales this year. Walmart
is appealing to pre-teens with a clothing line
featuring fictional pop icon Hannah Montana and
is taking a page from Target’s handbook by
offering wake-up calls. With the campaign,
parents can pre-select messages for their kids
to receive from Hannah Montana, reminding them
about daily events or offering a simple message
that it’s time to get up.
JCPenney’s new TV and cinema advertisements play
off the 1985 movie “The Breakfast Club” and are
expected to resonate with adults, while a
remixed version of a song from the movie should
appeal to the younger crowd. Kohl’s has created
its own cross-generational approach with the
launch of an “Inspired by the Artists ... worn
by you” campaign using celebrities like Lenny
Kravitz to interest parents and younger artists
like Avril Lavigne and Hayden Panettiere to
attract students.
Even retailers that don’t usually have a dog in
the back-to-school fight are entering the fray
this year, with Victoria’s Secret offering
special “University PINK” merchandise featuring
hoodies, tote bags and logo T-shirts from more
than 30 universities.
While retailers wade through the current
economic challenges, it’s important to remember
the wise words from Home Depot’s vendor.
Companies that are taking this opportunity to
try new things and take risks will be better
prepared when the economy bounces back. Because
the beauty of a downturn, of course, is that
there is often nowhere to go but up. |
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