The "cult of Kmart" - SmartCompany article

This article written by Dominic Powell originally appeared on SmartCompany here.

Kmart opens its 200th store: Three reasons the much-loved retailer has seen success

Much-loved discount retailer Kmart unveiled its 200th Australasian store in Perth last week, reports the West Australian, marking a significant milestone for Wesfarmers-owned department store, which has established dominance in the discount department store space over the past five years.

Kmart’s success has been so prominent the retailer has been accused of “cannibalising” other Wesfarmers-owned department store brand Target, raising concerns over Target’s future as it continues to operate in the shadow of the burgeoning Kmart.

“Today, Kmart is where Target was seven years ago, with Kmart’s first-half earnings in 2016 at $319 million, while Target has slumped to $74 million. Quite simply, Target lost its way and confused its core customer,” wrote retail analyst Gary Mortimer in 2016.

Similarly, Woolworths’ big box retailer Big W has come upon hard times in recent years, recently launching a turnaround strategy retail experts called the company’s “last chance” at a comeback. The business recently faced second half losses of up to $100 million.

Kmart’s 200th store has kept it in the middle of the pack compared with the reach of its competitors: Big W operates 186 stores across the country, while Target had 304 as of the end of 2016.

So how has Kmart’s brand continued to thrive whilst other businesses in the sector falter? Here are three reasons experts believe it has managed to keep ahead of the pack.

1. Store layout

Director of Good Things Marketing Helen Ahrens is a strong believer Kmart’s centralised store design is a big factor in the retailer’s success.

“The decentralised checkout in the centre of the store means customers purchase their items in the middle, and then as they travel out they find more things they need and they purchase them again at the second set of checkouts,” Ahrens told SmartCompany.

“In terms of store layout and merchandising, they’re so far ahead.”

However, shoppers didn’t feel the same way when Kmart announced the new-look stores, with hundreds of complaints being issued on social media after the roll-out, with many customers unhappy around the inconvenience the checkouts placed on both staff and customers.

“What annoys me is when I’ve walked all the way to the front of store to find the self-serve checkouts are closed off…..then have to walk back to the middle to serve myself….then walk out again to have to show my receipt to a worker at the door,” one disgruntled shopper wrote.

2. Kmart keeps it focused and keeps it simple

One of the store’s greatest strengths is its no-nonsense approach to pricing, believes brand advisor Michel Hogan, telling SmartCompany the retailer has become “essentially Australia’s Walmart”.

“Big box retail experiences are much of a muchness, no matter if it’s Target, Kmart or Big W. With that being the case, Kmart had to choose something to compete on, be it product range, quality, or price,” Hogan says.

“If you ask someone who doesn’t necessarily shop there, ‘what do you think of when you think of Kmart?’, they’re going to say ‘that’s the place where you can get really cheap stuff’, and that’s the mark of a strong brand.”

Ahrens agrees and believes the retailer’s low prices, in conjunction with simple offerings, has really pushed the department store above its competition.

“Its stuff is so simple and clean, they don’t try and tack anything on. It’s just four dollar tubs, that’s it,” she says.

“By focusing on the four dollar tubs, customers come in to buy them, but they also buy $50 worth of other things.”

It’s this approach that both Ahrens and Hogan believe are the biggest takeaways for businesses hoping to emulate Kmart’s success, with Ahrens saying businesses shouldn’t try to focus on everything at once.

“Focus on something steady and have faith in secondary purchasing. If you’re a cafe with really good coffee, then focus on that, and just trust customers will buy other items like breakfast rolls or muffins,” she says.

Hogan agrees, saying to “pick your poison and stay focused”.

“Look at any successful brand, they’ll do this really well. There might be some different colours to it, but your focus should stay firmly entrenched.”

3. The cult of Kmart

Finally, a big part of Kmart’s success is what Ahrens calls the “cult of Kmart”, facilitated by the retailer’s “for everybody” approach.

Kmart has a devoted fanbase both online and in real life, with Facebook pages such as Kmart Bargains and Kmart Hacks having hundreds of thousands of followers.

Ahrens thinks this is due to the retailers careful positioning as a lifestyle brand for anyone, not taking the tact of appealing to a narrow user base.“It’s a lifestyle brand that’s accessible to everyone, not just one group of people or type of person. They’ve really thought about the customer journey from beginning to end,” she says.

“Their marketing is also excellent, and they’ve got simultaneous communications across all platforms, and they know their target audiences online really well.”

Three marketing lessons from the "food porn" & social media marketing era

“The era of food porn is here. Food is a universal language,” says Good Things Marketing chief executive Helen Ahrens. Experts say there are three rules to live by in this era of “food porn”.

Discover Good Things Marketing's CEO comments and rules to live by in social media marketing for food businesses below in SmartCompany's article written by Emma Koehn.


Three marketing lessons from the ‘cafe’ promoting $5 spoons of Nutella

A humble teaspoon of Nutella got Melbourne’s cafe scene in a spin yesterday after reports a local pop-up was planning on offering $5 spoons of the hazelnut treat, but despite the outrage, experts say SMEs have plenty to learn from way desserts now go viral on social media.

Cafe lovers were appalled by the suggestion punters would hand over a five dollar note for a spoonful of “Naughty Nutella” or “Playful PB&J”, but it looks likely this phenomenon won’t actually be coming to the city any time soon.

The post first appeared on Melbourne Cool, a Facebook page that has previously featured suggestions of other hyper-Melbourne fare and was picked up by a number of media outlets, including Yahoo7 and Daily Mail

However, there’s plenty of speculation that the pop-up store ‘Spoonful of Sugar’ doesn’t exist and the post was satirical. SmartCompany contacted Melbourne Cool but is yet to receive a response.

Despite questions over the veracity of the Nutella spoon promotion, marketing and social media experts tell SmartCompany there’s actually plenty to learn from the fierce interest among customers in the world of food, particularly cafe fare and new inventions that get promoted on social media.

“There era of food porn is here. Food is a universal language,” says Good Things Marketing chief executive Helen Ahrens.

The speed with which so-called ‘hipster’ food products take off online was recently on display when a Melbourne cafe created a latte served in the skin of an avocado, prompting weeks’ worth of enthusiasm and criticism of the ‘avolatte’ across all forms of social media.

So whether you’re creating a new coffee-fresh food hybrid, or simply wanting to find a new customer base for your hospitality business, experts say there are three rules to live by in this era of “food porn”.

1. Timing is everything 

Posts about novelty food items take off fast, but if you want to leverage social to drive customers on an hour-by-hour basis, it’s all about getting in the head of hungry punters, says Ahrens.

“KFC has been doing it really well if you watch them, with good integrated Facebook campaigns for food, at certain food times,” she says. 

It may sound simple, but pitching your offerings at the exact same time people’s stomachs are starting to rumble can start to build customer habits by driving them to your business on a regular basis, says Ahrens.

“Figure out the times of day when people get hungry — if you’re offering office snacks, you have much more space throughout the day; if you’re offering meals, [it’s] later in the day,” she says. 

One of the benefits of using social media to capture these new customers is that you don’t have to go all out on high production values at first, Ahrens says. Instead, it’s possible to use trial and error to work out which posts bring customers through the door.

“Start small, test and pivot, always — when you have no budget, that’s what you should be doing always anyway,” says Ahrens. 

2. Understand the power of sharing 

The key reason the idea of a spoonful of Nutella or an avolatte gains traction so quickly online is that food is built so tightly into people’s social interactions, says Catriona Pollard, director of CP Communications and a social media expert.

“For people who are foodies, the natural thing they do is to take a photo of their food and then share it. They feel like they’re a part of a community and there is immense power in that from a brand’s perspective,” she says. 

When social media users engage with food products or businesses online, they naturally want to share what they’ve found with other users online, meaning visual representations of food quickly become topics of engagement between multiple users, says Pollard. This means SMEs wanting to pitch their food creations online are best served by finding those “foodie” communities to connect to, Pollard says.

“Any brand who isn’t using groups effectively on Facebook should be. I’m not a foodie, but I would imagine there are so many really connected groups for brands to reach,” she says. 

Ahrens agrees, advising SMEs to think about connecting with micro influencers on a local level and using that as a starting point to get the word out about your food business when just starting out.

“It might be worth looking around at what’s happening in Melbourne’s Fitzroy, for example, seeing who is there, and going from there,” she says. 

Being aware of the relationship between food and sharing is also critical because when you get it wrong, word moves fast, says Pollard.

“The thing about social media here is that it’s peer-to-peer, so if you feel outraged by something and you share your outrage, it’s likely the people you connect with on social media will also be outraged,” Pollard says. 

With that in mind, Pollard says it’s critical to test new ideas for promotions with trusted sources offline first, “especially if they could potentially be high risk”.

3. Don’t become a food snob 

The intersection of Australia’s food scene and social media is occurring at a time when the country is hungry for light-hearted stories about invention, says Nicole Reaney, director of InsideOut PR and founder of social media agency #AsSeenOn.

“With current news events, there is an appetite, mind the pun, for light-hearted media stories. Australia is also becoming a foodie-nation, and with the photo platform of Instagram, this passion for the newest and latest is sky-rocketing,” she says.

This makes it a prime time for potentially taking a risk with new food ideas: “Out-of-the-box, controversial and extreme offerings are likely to garner consumer and media attention,” Reaney says.

However, in an age of interconnected foodies, businesses should remember they don’t have to create Michelin-star level imagery in order to connect with potential customers.

“Don’t take yourself too seriously — don’t spend millions on dollars on video or anything,” Ahrens says. 

Instead, Ahrens it’s better to market the food you want to sell using the perfectly good tools already on the market, instead of setting up a video studio to film your next big cafe invention.

Run your content past your barista before going public - SmartCompany article

SmartCompany article by Dominic Powell:
"Chief executive of Good Things Marketing Helen Ahrens advises SME owners to go one step further and get any major public campaign checked over with someone outside of your marketing team and target audience. “It could be your accountant, a friend from another business, your barista, or your Pilates buddy,” she says. “If there’s anything that doesn’t fit or looks odd, then in your trusted relationship they should be able to raise that flag and tell you.” Although Ahrens says vigilance and strong procedures can help businesses avoid the missteps altogether, if a mistake happens, it’s best to take in on board and fix it quickly. “If you break it, you’ve got to own up and fix it,” she says.


JB Hi-Fi “race wars” bundle blunder leaves customers scratching their heads

Customers have taken to social media in confusion after electronics retailer JB Hi-Fi  advertised a collection of video games as a “race wars bundle” last week.

Kotaku reports the company’s latest catalogue featured the mishap in its advertisement of a bundle of two Xbox games and an Xbox console. The deal was a package of strategy game Halo Wars 2 and racing game Forza Horizon 3, leading to the unfortunate description of the bundle as a “race wars” deal.

The online version of the catalogue has been since amended, with the deal’s name changed simply to the “Halo Horizon” bundle. However, the preview excerpt of the catalogue on the company’s website still contains the controversial title, and the print edition of the catalogue reportedly still contains the error.

A number of punters took to social media to question the headline, with one customer tweeting “someone at Jb Hifi [sic] thought ‘Race Wars’ was a good name for a sale, and not a single person thought ‘wait, hold up a minute’?”.

However, staff reportedly did raise questions about the bundle’s title in the catalogue, prompting an internal memo from the company acknowledging the issue and advising staff to steer away from the “political angle”.

“We have been advised that some store staff who have seen the catalogue have interpreted the title in a more political context,” the internal memo reads reports Kotaku.

“Please note that it is intended purely as a reference from the Fast and the Furious franchise … please share with your teams to ensure they have the background if consumers come at this from a political angle.”

Run your content past your barista before going public

Marketing Angels founder Michelle Gamble suggests the “fast-moving” nature of JB Hi-Fi’s retailing and marketing means the title was likely an unfortunate oversight from someone on the marketing team who hasn’t thought it through clearly.

However, she advises SMEs to have stringent approval processes in place when to comes to marketing content, as letting something like this through the cracks can bring unwanted attention to your business.

“Having a good approval process, especially for larger companies, is essential. For smaller businesses, it’s different as the teams are often smaller, but you can still run it by your family or friends,” Gamble told SmartCompany.

Chief executive of Good Things Marketing Helen Ahrens agrees. She advises SME owners to go one step further and get any major public campaign checked over with someone outside of your marketing team and target audience.

“It could be your accountant, a friend from another business, your barista, or your Pilates buddy,” she says.

“If there’s anything that doesn’t fit or looks odd, then in your trusted relationship they should be able to raise that flag and tell you.”

If issues are then flagged with the content, it’s important to listen and act, advises Gamble.

“If people are flagging issues with your marketing, make sure you address their concerns and don’t ignore it. Even if their opinion is different, everyone’s perception varies and offense could be caused,” she says.

Although Ahrens says vigilance and strong procedures can help businesses avoid the missteps altogether, if a mistake happens, it’s best to take in on board and fix it quickly.

“If you break it, you’ve got to own up and fix it,” she says.

SmartCompany contacted JB Hi-Fi but the company declined to comment.

What being an ADMA member means for GTM & our clients

ADMA SA event speakers - Digital Transformations in NFP's and Charities

ADMA SA event speakers - Digital Transformations in NFP's and Charities

ADMA is the Association for Data-driven Marketing and Advertising and the principal industry body for data-driven marketing and advertising.

Good Things Marketing (GTM) has been a member of ADMA for the past few years, growing a strong network of innovative specialists in order to provide our clients with the most effective marketing practices in an ever developing landscape. Our CEO Helen Ahrens is also the South Australian Chair of ADMA, helping to facilitate events where the best in the industry meet the best practices nationally.

We're in good company with our other fellow ADMA members including Microsoft, eBay, Google, Qantas, Telstra, Visa, Toyota, Moet and Chandon, Nestle, Westpac, Tourism Australia, Woolworths and more.

So what does being an ADMA member mean to us and for our clients?

Growing networks across Australia and Asia  
Being an ADMA member allows GTM to tap into a wealth of knowledge and form close ties with other members of the largest marketing association across Asia. ADMA is the ultimate authority and go-to resource for effective and creative data-driven marketing across all channels and platforms, providing insight, ideas and innovation for today's digital, social media, PR, advertising and marketing industries. 

With over 600 members who are at the forefront of the marketing and advertising landscape, ADMA exists to help its members navigate the rough terrain of the ever changing digital landscape. These corporate members include; major financial institutions, telecommunications companies, energy providers, leading media companies, travel service companies, airlines, major charities, statutory corporations, educational institutions and specialist suppliers to the industry including advertising agencies, software and internet companies. The ties with this group of corporate members allows GTM to grow its network and gives us insight into the best practices adopted by leading companies worldwide.

SA attendees and speakers at the ADMA Global Forum

SA attendees and speakers at the ADMA Global Forum

Advocacy and Education
ADMA also supports its members through advocacy to Government and regulators as well as ongoing opportunities for education. Therefore, our membership can help us, as well as our corporate clients, understand and comply with with current codes of practice and the current industry standards. This connection, as well as the rich source of online and offline tools provided by ADMA, helps GTM stay at the forefront of digital marketing solutions in order to help us achieve the best solutions for our clients.

Recently, Helen was asked to provide her comments on the national influencer advertising guidelines in national press on the day that they were implemented within Australia. Her insight into this ever changing landscape offers our clients cutting edge intelligence and solutions to stay ahead of the pack, whilst also complying with relevant laws.

The article in full is available here: Advertising watchdog to oversee guidelines for using influencers in ads: What businesses need to know.

Helen delivering an educational keynote

Helen delivering an educational keynote

Events and Conferences
With our CEO Helen Ahrens as the Chair of ADMA SA, GTM is able to play an active role in curating and running ADMA events both locally and nationally. These include SA based events such as Innovation in our Industry: Virtual Reality and Video, which sold out quickly due to the innovative guest speakers including SA Tourism, Sportsbett from Sydney, ADD Life Tech, Appliquette, ThoseCreatives and more. Our ADMA events encompass not only the corporate sphere but also provide educational events for not for profits and charities. In May this year, Helen and the ADMA SA committee organised another sold out event, Digital Transformations in NFP’s and Charities, with guest appearances by representatives from Surf Life Saving Foundation from QLD, Flinders Foundation and Freerange Future. GTM is proud to be a major sponsor of these events.

The ADMA Global Forum is a global conference that brings together many global influencers in data-driven marketing, media, advertising, and technology. The world’s brightest minds shine a light on what’s possible today – with best-in-class practices designed to shake up traditional thinking and drive the industry forward. GTM works with ADMA to help source the best talent and attendees for this event and has seats front and centre each year in anticipation of the wealth of knowledge on offer.

Our clients are also offered discounted tickets to attend insightful conferences and events such as these. In working with GTM, our clients gain the opportunity to connect with the ADMA community as well as being as being invited as special guests and presenters at these events. This allows them network, showcase and collaborate with like minded innovators within their industry.  

ADMA Global Forum speakers in Sydney

ADMA Global Forum speakers in Sydney

Authority and Trust
Being an accredited ADMA member allows our clients to feel confident in their choice of marketing agency and in the results that we can provide. As an ADMA member, GTM is held to a higher standard and expected to lead the way, with groundbreaking innovation and nationally leading results. This innovative approach allows us to offer our clients effective marketing campaigns no matter what their budget may be. This allows you to trust that your marketing team is up to speed on the current codes of practices and industry standards.

Helen presenting gifts to Innovation in Our Industry speakers

Helen presenting gifts to Innovation in Our Industry speakers

Learn More & Get in Touch with GTM
If you are looking for an ADMA accredited agency to kickstart your marketing or to bolster your existing marketing efforts, please leave us a comment below or reach out to us here. Alternatively if you are interested in becoming an ADMA member, give us a call today to chat about your options and what benefits ADMA’s membership can bring to your organisation.

Digital Transformations in NFP & Charities - ADMA SA event

Last night was an incredible evening of learning at ADMA SA's Digital Transformations in NFP & Charities event last night with Nick Crowther, Amanda Shiell, Leila Henderson, Neil Jorgensen speaking on the constant digital evolutions, fundraising trends, culture and staff changes, customer journeys, tech platforms and plug-ins, VR campaigns and so much more to our sold out event. Huge thanks to Josh Hancock, Corey Wolf, Stuart Pool, Daniel Perotti, Blake Stone, Mandy Eyles and the ADMA SA team for running such a successful event!