Differentiation that’s right on target

Apr 1, 2005 12:00 AM, By Katherine O’Brien

From the Pressroom…

Targeting corporate marketing and advertising executives, Sappi Fine Paper has launched a campaign to showcase print’s ability to communicate, reach mass markets and increase brand awareness. In addition to trade journals like this one, Sappi’s "Life With Print" ads have been featured in Business Week and similar magazines. The effort also includes direct-mail pieces and events featuring industry experts.

Andy Serwer, Fortune senior editor at large, recently moderated a "Life With Print" panel discussion in Chicago. Participants included Joe Duncan, vice president and director of print innovation and technology at Leo Burnett; Addis Hilliker, vice president of supply-chain management at Banta; and Dana Arnett, founding principal of VSA Partners Intl., a design firm that specializes in strategic marketing and communications.

On the agency side, Duncan said his customers’ print expectations include more control and faster turnaround for work that’s accurately reproduced at an effective price. "The printing industry, quite honestly, has been very inwardly focused," Duncan continued. "Some printers have missed how consumers’ needs have changed."

Print can do it all
While marketers might rely increasingly on a mix of messages to court consumers, Duncan believes print has the upper hand. "You’ll need television and prints ads to drive consumers to a store, but you’re also going to have to reinforce that message through direct mail and event sponsorship. Print is the only medium I know that can connect all of those dots."

Banta’s Hilliker suggested that the general public often overlooks the value of print. "We’re not focused on the value of printed products in the postal system," he said. "A lot of people are attacking so-called junk mail, but we need things other than First Class mail [to support the USPS]. Otherwise we’d be paying $5 to mail a letter. That message isn’t out there."

Arnett, whose clients range from small companies to big names such as Harley-Davidson, IBM and General Electric, is a veteran of similar panel discussions. "The first one was held about 10 years ago and was called ‘The End of Print as We Know It,’" he recalled. "But most best-of-breed companies are astute about communication. The media they choose is a constituency thing: What vehicle will best motivate or influence their audience?"

All of the panelists agreed that when it comes to promoting print, it’s difficult to focus on end value to the user rather than a particular company’s brand. Arnett noted that Target Corp. has successfully communicated the importance/excitement of good design in its print and television ads.

Chic happens
As a loyal Target shopper, Arnett’s comment prompted me to do a little research. Why does Target place such emphasis on witty ads? According to "Simply Better," by Patrick Barwise and Sean Meehan, the retailer lagged behind Wal-Mart and K-Mart in the early 2000s. The company could either specialize, become the low-cost producer or differentiate itself. "The first choice would have thwarted future growth, and Wal-Mart already was the low-cost producer," write Barwise and Meehan. "Target chose the third option and decided to reposition itself as a mass merchandiser of affordable chic goods."

Target, which at that time had annual sales of $40 billion, could not match the pricing muscle of its top rival, the $218 billion Wal-Mart. But price isn’t everything. Shoppers perceived that Target offered clean stores, a pleasant shopping environment and fast checkout lanes.

According to "Simply Better," the company built its growth strategy on "upscale discounting—a concept associating style, quality of products and price competitiveness." Using designer partnerships and distinctive advertising, Target became a major brand and shopping destination.

Target spends 2.3 percent of its revenue on advertising vs. Wal-Mart’s 0.3 percent, something that bodes well for print. But many of our readers can particularly relate to Barwise and Meehan’s conclusion: "The success of Target illustrates the importance of distinctive communications in achieving long-lasting differentiation on anything other than price. Target is still a mass merchandiser, providing category basics such as low prices, comprehensive assortment and shopping convenience. It is not a niche brand, but, through its commitment to design and innovative marketing communications, it has managed to depart sufficiently from Wal-Mart in terms of image and branding to build loyalty and to grow its business extremely profitably."

E-mail feedback to kobrien@primedabusiness.com.

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