Easter sales are expected to be hopping this year, exceeding $16 billion, including candy, apparel and baskets. And although it’s only March, merchants are also banking on Mother’s Day sales to boost the bottom line. Consumers routinely look for sales and promotions, so it would be foolish to neglect marketing to your base this year for either holiday.

JC Penny sees things differently, perhaps. In my last post, I commented on the “Fair and Square” campaign launched by the national retailer, which is celebrating its 110th year in business. Doing away with coupons and discounts? We’re still in the process of seeing how that works. Most consumers love buying items on sale, for the perceived discount, and prefer being informed about upcoming sales events.

Consumers also love themed packaging which complements the product. As we all know, Coca-Cola dresses up its bottles with its famous rendering of Santa Claus every Christmas. (The modern image of Santa dates back to 1931 when artist Haddon Sunblom depicted Santa for ads in The Saturday Evening Post.) But every holiday has its own recognizable symbols, from Easter Eggs to Valentine’s Day hearts. Get themed, then get customized! It’s a way to stand out from the crowd.

Everything seems to be customizable these days. Credit cards have long been encouraging card holders to design their own cards, with family portraits and personal photos or selecting from a set of original artwork. Sneakers from well-known manufacturers can be customized to match a person’s style, creating a “mass produced” yet one of a kind pair of footwear. Even Pop-Tarts allowed consumers to purchase individualized boxes. Customers selected a flavor, chose a photo and typed a personal message onto a box of Pop-Tarts.

Not all ideas are going to take off like rocket ships. A few years ago, Scion encouraged owners to create a family crest or coat-of arms, by using an online graphics program. The idea was to create an image on your computer. That image could then be painted on your Scion or created as a window sticker. The website, Scion Speak, has since been dismantled, most likely because the market was too narrow. It only applied to Scion owners and not everyone wanted a coat of arms on their car.

But mostly everyone enjoys a beautifully wrapped gift. I mean, come on. Who hates receiving a gift, and who hates the wrapping paper? Only a scrooge. Personalizing presents is the name of the game!

“You only get one chance to make a first impression.” Know who said that? My father, often. Doesn’t matter if the quote is attributed to Will Rogers, Oscar Wilde or Mark Twain. When I was growing up, my father said this frequently and it was a valuable lesson learned. To me, it will always be his wise words.

How do stores and retail establishments make a first impression to customers? By providing an environment where consumers want to continue shopping. Imagine walking into a store that doesn’t restock, doesn’t have available staff members, and the cashiers yell at you at checkout. If you provide a headache and a half, it’s unlikely the buyer will want to return. And this relates to any retail outlet, whether it’s a brick and mortar or an online store. Speaking of which, at the end of 2011, we revamped our website to make the store a more valuable experience for our customers. To keep providing a user friendly interface, we are continually updating products, reorganizing categories and making it easier to order custom printed bags and boxes. Check out our Valentine’s Day wrap and other items. We’re offering free shipping on standard orders over $200 between now and February 14th.

Come On, Get Happy

Out of the Top 50 “happiest places to work” for 2011, only two retail outlets made the list: Costco, where consumers buy in bulk, and Albertsons, the grocery chain. More than 100,000 employees submitted reviews to come up with this list. Does that mean that any company outside the Top 50 is an unhappy place to work? Of course not. But it brings me back to my first point: making the impression. If employees are walking around with chips on their shoulders, it doesn’t help your business bring in business.

In a much smaller survey earlier last year, MSN teamed up with Zogby International to ask consumers what they thought of customer service at 150 companies. Criteria included knowledgeable staff, friendly employees and service after the sale. The actual product sold was a small factor in how consumers determined customer service. It was far more important for sales staff to be available and answer questions than products be available on the shelf. A lot more retailers made the list.

Which brings me to the “Enough is Enough” campaign by J.C. Penny. Did you see any of these ads on television this week? Consumers are screaming, literally, about missing sales and getting boatloads of promotional flyers in the mail. On Wednesday, Feb. 1, J.C. Penny is changing the way it does business. By eliminating deep discounts, the 1,100-store chain will reduce prices by about 40% across the board, and offer such lower prices on an everyday basis. I honestly wonder what the chain’s competitors are thinking. Are they waiting in the wings, laughing like Nelson from the Simpsons? Or are they getting ready to implement their own “regular pricing” system throughout the seasons. Let’s see how this goes. Because most retailers know the psychology behind consumers looking for bargains. Anyone walking around the mall the day after Christmas, or Black Friday, sees the effect of deep discounting. I’ll write more about this in my next post.

Ever go fishing? You can choose to sit back and relax, plopped comfortably on a boat in the midday sun, leisurely waiting for the line to bite. Or you can be aggressive, using luring tactics and techniques geared towards what’s in the water that day. When it comes to fishing, it’s a personal preference and what works must work for you. When it comes to business, sitting back and passively waiting for customers to find you is a surefire way to sink your ship.

Black Friday sales topped $11.4 billion, with Thanksgiving Day weekend shopping seeing $52.4 billion in transactions in-store and online. Did retail establishments take a passive approach, waiting for consumers to hopefully stop by and perhaps purchase an item or two? No, there was a glut of aggressive advertising, promoting sales and particular products. And the consumers came, in droves, with each shopper spending an average of $398. Despite current unemployment levels, retail sales actually increased sixteen percent from last year.

I’m not just stating the obvious: as the seasons change, we adapt. Unless you feel a great urge to experience frostbite, cold weather generally sees the return of warm winter clothing. Businesses that do not adapt to the times do not survive, whether large or small.

On a similar note, At The Movies, a show that has seen generations grow up, is a sneeze away from getting canceled, if not already. Why? Are movie reviews no longer needed? Can’t say that, as consumers will still read reviews to learn about new films and make decisions about which movies to watch. But that information is readily available online, at a moment’s notice, with instant feedback from numerous fans in the comments section. The message is not dead, but the medium is, in this specific example.

Adaption is critical to survival.

I’m not talking about changing core values or practices that help your company grow and flourish. I’m not talking about changing niches on a moment’s notice because it’s the trendy thing to do. I am talking about augmenting a product or service that the marketplace demands, and upgrading your performance to improve the consumer experience.

Here at Packaging Specialties, we have thrived on offering solutions to our customers, fulfilling their packaging needs for more than six decades. Over the years, we’ve built many long-term relationships with thousands of small businesses in retail and restaurants and other industries across the United States, all from the ground up. Back before text messaging, instant downloading, and even dial-up.

In this day and age, it’s impossible for a company to ignore the internet, either the power of the platform or just the convenience to consumers looking for a new supplier. Simply having a presence is a MUST for most firms, regardless of what products are sold or what the company offers.

So I am happy to say that as we head towards 2012, Packaging Specialties has a new and improved e-store. We recently renovated our website to make online buying a more efficient, user-friendly experience, as we continue to expand our business relationships offline. If you ever have any suggestions for our website, feel free to contact me directly. In the meantime, enjoy the holiday season and make that catch.

We’re fast approaching the biggest holiday season of the year and retail projections are all over the place. I’m sure you read some of the doom and gloom reports predicting fourth quarter sales to be a “Blue Christmas.” Conflicting analysis on seasonal hiring also has retailers hiring more and less workers than last year (when stores hired 627,600 workers for the holidays.) So far, October showed a gain of 141,500 jobs, so the numbers in November will really show what’s happening in retail.

On the other hand, UPS just announced it plans on seeing a late-season surge of deliveries, due to the expected increase in internet purchases.

The National Retail Federation’s consumer intention survey conservatively estimates a slight decrease in holiday spending, down from an average of $718.98 per consumer last year to $704.18 in 2011. (Interestingly, six out of 10 shoppers surveyed said they plan on buying gifts for themselves in addition to family members, friends, co-workers, neighbors and pets.)

In all cases, it is safe to say that 2011 is far better than the recession of 2008, when seasonal hiring was at its lowest in two decades and holiday shopping was like pulling teeth.

What’s It All About?

Money doesn’t always bring happiness but spending money on loved ones usually contributes to a happier life. This is not just being sappy and sentimental and throwing around cliches. It doesn’t matter what the actual amount is, what the gift may be, how big or large – gift giving benefits the giver as well as the recipient. The article “Spending Money on Others Promotes Happiness” – published in the March 21, 2008 edition of Science Magazine - backs up my statement. The findings suggest that spending as little as $5 on a loved one increases the giver’s well-being.

Seriously, who doesn’t enjoy giving presents to loved ones, in colorfully-wrapped gift boxes containing the perfect surprise?

Not to sound like one of those doom and gloomers, but just imagine that the present is bundled not in a gift box but in a hideous fabric found while rummaging through storage. Or stuffed into a boring brown bag fit for lunch leftovers. Or a month-old newspaper. Would that make anyone, the recipient or giver, feel happier? I seriously doubt it. You mean you spent days searching for the perfect present and thought wrapping it up in refuse would make a great impression?

I’m being extreme here but still, making a point: If your company is a product-oriented company with gift giving (and fourth quarter sales) a significant source of purchases, it is essential that customers know an effort has been made to present the best package possible. That means customized packaging which accurately represents your business image.

Even with snow falling in several parts of the country, Halloween sales are expected to top $6.9 billion dollars this year in the United States, according to the National Retail Federation. That’s a lot of change dropped on candy, costumes and decorations.

Knocking on doors and asking for treats dates back to the Middle Ages, but it’s relatively recently that packaging started to reflect the season. Prior to the 1980s, parents bought the generic bags of chocolates, the usual merchandise that could be found all year long – no matter what the holiday. Now, candy manufacturers go all out with the festive candy packaging, featuring specific Halloween themes, from orange foils to ghouls, ghosts and monsters. The packaging fits right in with the surrounding costumes, décor and pumpkin pails.

I don’t think it’s a coincidence that overall sales have gone up every year since companies began seasonal packaging. As mentioned, $6.9 billion is a huge chunk of change, up from $5.8 billion from just two years ago. That certainly puts the boo in booming.

Why are consumers inclined to purchase more Halloween merchandise every year? Seven out of 10 Americans are predicted to be celebrating Halloween this year, spending an average of $72.31 each. Is it the sugar fix? The chocolate addictions?

I’ll go out on a limb and announce that most people enjoy a sweet treat. But when packaging jumps out like a zombie thriller, immediately capturing the consumer’s attention, the urge to splurge is even greater.

Here’s a related example: Anyone of a certain age might remember eating Mike and Ikes. A few years ago, the candy company noticed that sales were sluggish. Why? Probably because the traditional black and white packaging was considered dull and old-fashioned. Boxes were most likely overlooked on the shelves for something more exciting and eye-catching. After re-launching with a more colorful design, Mike and Ikes sales increased 25%.

Remember, Halloween candy is a just a portion of total expected sales. (Although, more than 73% surveyed by the National Retail Federation said they would participate in handing out treats.) Consumers buy outfits for themselves, their kids and their pets. They make jack’o’lanterns, attend costume parties, visit haunted mansions, and enjoy haunted hayrides with their families. They also purchase decorations for their homes and distribute greeting cards and party favors. It’s not one specific thing that makes the holiday a memorable occasion, one becoming more popular each year. It’s the entire package!

Last month, I talked about the Netflix debacle. Customers were rightfully angry with the company’s split in service: partitioning off the movies by mail from the online streaming service, creating two divisions, two price plans and two separate websites. This came complete with a questionable name change (Qwikster), inconvenience and an unexpected price hike to its customers who balked en masse, sending stocks plummeting.

Within three weeks of the announcement, a half-hearted apology for the announcement, and consumer outrage burning up the internet, Netflix reneged. The company decided to keep its price increase for the two service plans but dumped the second website, kissing the separate brand Qwikster a hasty goodbye.

Did anyone cry?

Perhaps the user who squatted on @Qwickster on Twitter is crying. He was hoping for a huge payday because Netflix was not quick enough to grab the name. Anyone else shedding a tear? Unlikely.

It takes companies years to build trust. Brand destruction takes one bone-headed decision, a decision that fails to take into account the company’s core customers and mission for being in business in the first place.

Whether Netflix subscribers continue to stay with the service is still an ongoing decision. A number of subscribers opted out altogether and went with competitors after the initial announcement. Netflix is supposedly contracting with different content providers to beef up its offerings but many long-time customers are simply fed up and not impressed.

Is it simply the increased cost that annoyed consumers? Not really. It’s the perceived value. Am I paying for something that is worth the price of admission or is the entire process just a headache in return? If two stores located miles apart are offering the same product at the same price, but one is a hostile environment and unorganized mess, while the other is a clean, friendly store with attentive employees and easy to find items, I’d rather drive the few extra miles for the experience.

That is why small businesses are routinely advised not to compete on price but on value. Netflix customers saw no value in two separate websites which required different accounts and logins. Not to mention, there was a noticeable disparity in movie selection. (Online streaming for Netflix is simply not up to snuff, either in comparison to its own movies by mail service OR with fellow competitors.) Let’s see. Poor product selection, extra hassel, and higher service fees. Yeah, now that’s a winner.

Inconveniencing and alienating your customers is a surefire way of losing them.

Taking your customers seriously, on the other hand, will always separate your establishment from the rest. Packaging Specialties did not stay in business for more than six decades because we make it hard for customers to do business with us. Customer service is our priority, and our clients are never taken for granted. Never take your customers for granted! I think that is one of the biggest blunders Netflix made this year, and the costs for such a mistake are immense.

The point of difference, that is. Or more specifically, what separates YOUR company from every other competitor? Is it the particular benefits associated with your product or service? Is it more convenient to use, more available, more accessible?
Are you known for consistently quick turnarounds, exceptional problem solving, or innovative design? Whatever the difference is, the potential customer must be made aware of it.

Does your company offer a product not just unique to its field, but unrivaled, not available from anyone else? For example, are you selling home-made gelato while everyone else on the block has frozen yogurt? And if you are selling a service offered by five other shops in the area, how do you stand out? Define the difference and there’s the point.

It goes without saying that marketing gets you in the door, but a great product/service is a must for retention rates. And all marketing materials, from your website to business cards and of course, packaging, should be consistent and complementary to each other, always reflecting your company’s vision and values.

Companies that twist and turn in vision and goals tend to offer only confusion.

Let’s take Eastman Kodak as an example. Kodak has been in business for more than 131 years. Known primarily for its line of film, Kodak has been trying to reinvent itself as a company that makes printers. Do you or have you ever associated Kodak with printers?

Stocks for the company recently plunged, rivaling lows not seen by the company since more than half a century ago. Last week, the Wall Street Journal announced that Kodak hired a restructuring firm. Uh oh. What happened? Well, shareholders balked, driving stock prices not seen since 1935, during the midst of the Great Depression. Not exactly a confidence boost.

Kodak started losing market share back in 2009 when the camera company dumped its famous Kodachrome brand. That probably would’ve been okay if Kodak had already adapted to digital photography by then. After all, Kodak’s mission was to “capture moments” – not just manufacture film. However moments are captured, the actual technology is irrelevant. In fact, companies should routinely adapt to emerging technologies to stay ahead of the game. Unfortunately, it took a while for Kodak to catch up to the digital future and it can cost them in the end.

What does Kodak’s problems have to do with you, the small business owner? Look at is as reminder: Remember your company’s core values, and build your goals around them. Companies that forget their origins or why they are in business in the first place don’t always fare well and some simply fall off the earth.

Ever judge a book by its cover? It’s not metaphorical, most marketers will agree that consumers make quick judgements by the outside image. I tend to judge a book by its format. Meaning, if I’m going to read the book, the book has to be readable.

I’m not talking about uninteresting subject matter or bad editing. Those two things are always going to turn off many potential readers and give the author a bad rep. I’m talking about the actual layout, from legible type to style. Yes, despite Kindles and Nooks and as other digital competitors become ever more popular, many consumers still buy hardcopies and paperbacks. (As a side note, bookstore sales in the United States remained flat for the first half of 2011, but still a $7 billion industry for that time period.)

If the typeface is hard to read, set in ludicrous fonts or distracting sizes, I won’t read the book no matter what the topic.

Just this week I was perusing through business books at the local book sale and found a great selection. There were several I refused to purchase just because the fonts and formats were incredibly distracting. I don’t care if it’s a bargain basement price and filled with infinite wisdom. Am I supposed to take a business author seriously when information is presented in squiggly scripts, highlighted by too many drop shadows and organized as if I had a short attention span? Yeah, maybe I missed out a wealth of information, a hidden treasure trove of advice, by not buying these particular titles. But if I can’t get through a paragraph without feeling annoyed or attacked by typography, I don’t think I’m missing out on anything.

Customized packaging always takes this into account. The right image captures the public’s eye, not turns it away. The right image complements your products, not negates the theme or contradicts your company’s mission. A cosmetics shop offering an array of makeup in assorted bright colors is probably not going to showcase its products with a gloomy grey shopping bag.

The perfect packaging is also a perfect fit for YOUR business, appropriate to YOUR products, whatever those may be.

Packaging is not the be-all, end-all in this world, but it certainly makes a difference to customers and sometimes a big difference directly to the bottom line. As one example, the grocery-chain Kroger experienced sales growth after repackaging its poorly performing store-brand products.

And, since we’re now in the most financially lucrative season for retailers, the matter becomes ever more important. Remember, customers not only expect attractive packaging, but gift boxes and shopping bags on hand as they begin holiday shopping.

All the talk these days is about the economy. Retail sales were flat in August and unemployment continues to lag.

Is job creation coming from the large corporations and conglomerates? Turn instead to the privately owned firms less than five years old. While Bank of America plans on laying off 30,000 workers this year, about 400 smaller firms started since 2007 have hired more than the same amount. Check out Inc. for a list of those companies. The magazine also lists the top 5,000 companies, which accounts for more than 370K jobs in the last three years.

Small businesses are the foundation. Entrepreneurs set things in motion, often putting their own financial lives on the line by investing personal savings, using homes as collateral, paying bills with credit cards and foregoing paychecks for several years until the business takes off.

Every small business that stays in business should be commended. The five-year mark is a major milestone, as many companies fail within the first year.

On the other hand, some businesses become incredibly successful and lose sight of their beginnings. Netflix comes to mind. The movie rental service made major waves this summer, enraging its sizeable client base, after announcing that online streaming and hard-copy DVDs would be split into two companies. And two separate fees. And two separate queues/websites to select movies and geez, two separate headaches. That sound you hear is the voice of millions of subscribers who immediately took to the streets, well, internet, and complained.

This week, the CEO and founder of Netflix, Reed Hastings, sent out an apology. Not to apologize for the decision, but to explain the decision and the way it was announced.

“For the past five years, my greatest fear at Netflix has been that we wouldn’t make the leap from success in DVDs to success in streaming. Most companies that are great at something – like AOL dialup or Borders bookstores – do not become great at new things people want (streaming for us).”

The last part is correct. Many big companies that run off track, trying to become a catch-all or hop on every trend, fail if they renege from the core business.

What is Netflix’s core business? Providing entertainment on demand. So streaming and DVD rentals actually go hand in hand, as they complement each other. Subscribers look forward to new releases on DVDs while catching up on older films available via streaming.

Let’s face it, the streaming option just does not feature a ton of recently released films. It actually takes months before a new film is streaming, although available via DVD. Subscribers cancelled in droves when presented with the new price change: either pay for one, the other, or both.

Now that the split is in place, do you think an explanation will placate the subscribers who are angry? I’d still be angry because this is a fundamental flaw. The company is veering from its core purpose and alienating its own customers who will likely seek other rental options.

Plus, the company name itself is changing. The hard-copy DVD rentals will be known as Qwikster while the streaming option will remain Netflix. As someone said, why are they taking a well-known brand name and cheapening it? Netflix is well-known. The new name sounds like a copy-cat, an imitator, or a fake.

If Netflix gets its act together, and starts offering more newer releases online, perhaps this snafu will be just a blip in its company history. Or maybe not. As you may have noticed, the stock price continues to tank.

Ever watch The Office, the long-running comedy on NBC? It’s a show about an ineffectual, uninspiring work environment that decreases morale and stifles productivity. Creativity rarely is a result.

Advertising Week is hosting its eighth annual event, Oct. 3 through Oct. 7 in New York City. It’s safe to say that uninspired and listless will not be attending. Leave your boring cubicle at home, please! Conferences and seminars will be held all over Manhattan featuring brand strategy, marketing to target demographics, and technological topics, among other subjects.

Speaking of which, I was watching a political pundit show the other day when someone mentioned that anyone can brand themselves in this day and mobile age. You don’t need an actual product because with social media, you are the brand. Sure. But it sort of reminded me of reality show hacks who manage to convince the public they are either experts or otherwise important. Many fade into the background after a while or become a running gag.

Or, American Idol contestants. Some go on to great success, but many crash and burn. That show has been around for 10 seasons already, but only the diehard fans will remember the runner ups or even the initial auditions. The winners who won and went on to notable careers did so because of not only talent, but consistency. The chameleons who changed every week? Do you even remember their names? The general public won’t.

As far as getting your name out there, even garbage can be advertised. Well, the process of hauling away the garbage. Bagster dumpsters, for example, proudly display the company’s name, despite it being a loaded bag of debris. Presumably, it’s so your neighbors can tell what company you are using when remodeling the upstairs bathroom and getting rid of trash.

One Other Note

I say time and time again that packaging is an integral part of branding. Without effective and inspiring packaging, how are customers looking forward to what product may be inside? How are they drawn to such a product in the first place? By chance? By magic?

No matter what, however, without a product the consumer wants, a nice wrapper is just that, an outside layer.

In addition to retail outlets and cosmetic boutiques, we have served all types of restaurants in our 60 years of existence. I can tell you confidently that most patrons don’t walk into a deli thinking about packaging. They want a nice sandwich, something good to eat for lunch. Paper take-out bags aren’t exactly mouth watering, the food is. But when packaging is not available? Woah, now that’s a problem the patron will remember.

Take a recent review on hoboken411.com. Hoboken is a mile square city across the Hudson from Manhattan. Any given day, you will see hoards of pedestrians on Washington Street, prime real estate for foot traffic. This particular reviewer called ahead for a lunch order and arrived to find his lunch in an unmarked box sitting on the counter. He needed a bag to take the meal home. Several restaurant staff had to search around for a take-out bag. Come on, that’s ridiculous. Forget customized packaging for a moment, but NO BAGS at all? This is a deli is not?

Fortunately someone found a carry-out bag in the back and the patron eventually enjoyed his meal. But his overall impression was not positive. Shoppers, especially in a pedestrian-friendly area such as Hoboken, need bags to carry purchases. Don’t give in to wasted opportunity. Wrap that sale up instead.