“Lovemarks” Can Really Hurt
A few years back J.C. Penney’s switched ad agencies after the CEO saw a presentation by Kevin Roberts on “Lovemarks: The Future Beyond Brands.” Roberts’ is the CEO of ad agency Saatchi & Saatchi. There was no review, Penney’s switched based on the philosophy Roberts’ was/is espousing.
The result: a 50% decrease in income. Ouch. I think cupid needs some new arrows. According to Direct magazine, “JC Penney Co. Inc. posted net income of $211 million for the fourth quarter, a decrease from $430 million in the prior year.”
It just goes to show you how dramatically things have changed and that “branding” alone will typically not cut it any longer today. We live in a world of measurement. Advertising and marketing folks need to get used to this FACT. Of course, it’s what direct marketer’s eat, sleep and breathe every single day. It’s why direct marketing is becoming THE critical factor in marketing today. Your advertising and marketing is a P&L line item. It’s no longer a necessary expense.
The article goes on to say, “The Plano, TX firm said that gross margin declined 160 basis points to 34.6% of sales which it attributed to
