ETD: 903 'Viral' Marketing Offline; Inventory Turns; Luxury
Report 2005
E-Tailer's Digest
etd_post at gapent.com
Tue Jul 12 13:49:20 GMT 2005
E-Tailer's Digest --- Everything for the Retailer
Issue #0903 July 12, 2005
George Matyjewicz, Moderator mailto:georgem at gapent.com
Published by: GAP Enterprises, Ltd. http://www.etailersdigest.com
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CONTENTS
[1] Greetings
[2] 'Viral' Marketing Offline
[3] Inventory Turns
[4] Luxury Report 2005
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[1] Greetings.
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Hi All:
Last night I met with the National Director of a volunteer organization who
is looking to grow their group tenfold within three years. I gave them
some ideas, and thought it would be a good topic of discussion. While this
organization is specific for a particular group, the concepts apply to any
not-for-profit.
Inventory turns are always an issue. One of our list members offers some
valuable information and correction.
Pam Danziger has a new luxury report that should be of interest to those
who sell to the luxury market.
Now, let's get to everything for the retailer.
Sincerely
George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem at gapent.com
http://www.etailersdigest.com
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[2] 'Viral' Marketing Offline
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I'm volunteering to help a volunteer organization who wants to make it's
brand a household name. We met last night to plan some activities, and, of
course, they have very little idea of how to promote their services. Their
concept and goals applies to any organization.
They presently have 10,000 members who work one-on-one with their partner,
which means they have 5,000 partner teams. Their goal is to have 100,000
members nationwide by the end of 2008. And they are trying to accomplish
these goals with a very limited budget.
They claim to be "a health club for the brain," a place where you can
spend an hour a week sharpening your mind and expanding your horizons. A
gym in which you spar with the greatest heads in history.
I suggested viral marketing offline, where they ask each of their existing
members to try to recruit two new members each, and continue that with new
members. The members are all very happy with the organization and should
be able to talk it up very easily (I'm a member and I do).
A second suggestion is to develop regional contacts to whom somebody can
call for more information or to join. These regional contacts can also
organize local events to recruit new members.
Since they have a limited budget, they can't do massive
advertising. However, they do have trifold brochures, so I suggested they
have the regional leaders place these brochures in local stores where their
target audience may shop so that they can spread the work about the
organization.
The business community is also a great resource for them, more for
contributions. So, we will establish a team to meet with the business
world to see what they can do to help.
What do you think? What other ideas would work?
While this is geared for a specific target, the concepts apply to any
not-for-profit group. This group, Partners in Torah, provides men and
women who have an interest in Jewish study - but may lack the
self-motivation or academic background - with their own personal Torah
trainer. http://partnersintorah.org/
George
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[3] Inventory Turns
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In your article http://www.businessknowhow.com/manage/inventory.htm
you said...
"The official calculation to figure out how you are turning inventory, is
to first find out the Cost of Goods Sold (COGS) for the past 12
months. Then take the current inventory and divide it by the Cost of Goods
Sold and you get the number of times you have turned inventory."
I've read the opposite on some other websites. Isn't inventory
turns calculated by dividing COGS by (avg) inventory value?
Cindy Clayton :-)
SLBA Business Intelligence
(336) 519-5683
Ask WHY until you understand!
+++ [Moderator's Comments] +++
You are correct. Unfortunately, they don't seem to be able to update that
article, even though we told them about the error. I have to try again.
Inventory turns need to be calculated on the average CofGS. Many companies
have difficult calculating average, but it is the most accurate way to
calculate turns.
Thanks Cindy.
George
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[4] Luxury Report 2005
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In Luxury Market, Competition Is Horizontal Across Categories, not
Necessarily Vertical within Categories
Luxury consumers come into the market with lots of disposable income they
can spend in many different ways
Marketers are traditionally trained to think of their competitive landscape
as vertical. For example, if you are in the home appliance business, then
you compete against other home appliance companies for the consumers'
dollar. If you are in fashion accessories business, then you compete
directly with other fashion accessories companies.
But in today's luxury market, the competitive landscape is horizontal with
marketers competing against other marketers across categories for the
ultimate prize: the luxury consumers' discretionary spending.
The emergence of a new horizontal competitive landscape adds complexity and
new challenges for luxury marketers today. For example, in the five
quarters Unity has tracked luxury consumer spending, we found spending on
home luxuries and experiential luxuries were inversely related. When
luxury consumers spent more on home luxuries, they spent less on
experiential and vice versa, when spending on experiences went up, then
spending on home luxuries went down. In effect, that means luxury kitchen
appliance companies, bed linens' brands and tabletop companies are in
direct competition with travel providers, luxury resorts, cruise lines and
fine dining establishments.
The Luxury Report 2005 study of the luxury market provides the results of a
three-year longitudinal research study of the luxury market, which combines
qualitative and quantitative methodologies. Some 600 luxury consumers were
surveyed (62 percent female and 38 percent male respondents) for the 2004
study. Their average income was $135,000 and their ages spanned 25 to 65
years of age, with 43 percent of the survey sample Baby Boomers and 44
percent GenXer luxury consumers.
Details about what these luxury consumers bought, how much they spent,
where they made their purchases, and in certain categories the luxury
brands they patronized are reported in three major categories of
luxury. The Luxury Report 2005 includes details of all three categories,
while the Home Luxury Report 2005, Personal Luxury and Automobile Luxury
Report 2005 and Experiential Luxury Report 2005.
For details on this important report
visit http://www.unitymarketingonline.com/reports2/luxury/luxury1.html
We also have a free, 2,000 word white paper describing the "Eight Things
Every Marketer Needs to Know about the New Luxury Market." It is available
with registration at http://www.unitymarketingonline.com/downloadPDF.php
Pam Danziger,
President
Unity Marketing
http://www.unitymarketingonline.com
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