Brick-and-mortar retailers like Target, Wal-Mart, and Best Buy have been struggling to find ways to stay relevant in the new Amazon age. After trying to make incremental changes to stem losses, these retail giants are now realizing they have to make fundamental changes to their marketing and business strategies if they want to survive. CNN Money recently reviewed Target’s efforts, and results, in this article. After disappointing holiday sales in 2016, Target allocated $7 billion to modify their marketing mix. The article outlines changes made in every one of the 4 P’s and is a great example of how marketers need to consider all aspects of their marketing mix to create an effective marketing strategy.
Every few months there is an article about the end of the brick-and-mortar retail era. Chain after chain disappear, often citing Amazon as the primary driver. This article from the USA Today lists 15 retailers that declared bankruptcy in 2017. Is brick-and-mortar retail truly doomed?
Ask your students what they would do if they were responsible for marketing for a brick-and-mortar chain. Can Target, Best Buy, and Wal-Mart survive in the Amazon age? How? This can lead to a good discussion on differentiation and competitive advantage. Capture those ideas on the board and then ask them to design promotions that can effectively communicate those ideas. What type of promotion? Where would it be seen? What is the message?
If you have time, ask them if there’s anyone that could displace Amazon and force them into bankruptcy. It may sound like an absurd idea but remind them that many strong brands like Blockbuster, Barnes & Noble, Kodak, Macy’s, and Sears were once considered icons that would last forever. How can you beat Amazon? Can Amazon undermine their own success and open the door for competitors?