April 2022 - 24

POHMER ON...
being. This process defines your brand, your identity to
the customer.
And then the challenging work really begins, the
execution and communication of the brand that is visible
to your customer. You and your team must be pigcommitted
to ensuring that everything you do is consistent
with your brand and brand message. And the consumer
will be the ultimate judge as to whether they believe in
your brand, if you're true to your brand, if you have brand
integrity, and if they can ascertain your commitment to
your brand. If you pass their test, you reap the rewards;
if not, well ....
For Example
It seems like everything in today's world is viewed as
polar extremes, be it business, politics, economics, societal
issues or life in general. Business media, as an example,
over-simplifies the choices companies make based on the
extremes, on one end taking the price-focused position of
" you'll get a discount and you will get less than you paid for "
to the polar opposite position of " you'll pay more, and you'll
get more than you paid for. "
One end is measured by a single metric - price - while
the other end is measured on multiple metrics, such as
experience, quality, and service. It's true that there are
companies that live on either end of the spectrum, but
there's plenty of opportunity to stake a successful position
between the polar extremes. Here are a few examples.
ALDI, the fastest-growing food retailer in the U.S.,
ranking No. 3 based on volume with 2,100 stores (and
growing at the rate of 150-200 stores per year; ranks No. 4
in global food sales. They operate small, limited-assortment
stores with a low cost/high quality platform (cut case
displays, " rental " shopping carts, BYO bags, extremely low
payroll (3-4 employees, all cross-trained and multi-tasking),
small backrooms.
Very few national brands are carried, but quality is
maintained through private label (national brand product
with ALDI labels) and owned brands (ALDI maintains
vertical control of sourcing, production and distribution).
Prices are 30-50% lower than traditional supermarkets,
yet high product quality is maintained. Shrink is controlled
with rapid turnover, daily replenishment and limited
backroom storage.
ALDI's tagline is Shop differentli. Differentli, a verb
meaning faster, easier and smarter way to save money on
high-quality groceries and more. Combining a low-cost
operational structure with a high-quality assortment is a
unique niche position that most companies can't match.
And their commitment to protecting their brand integrity
with private label and vertical sourcing and production
displays pig-commitment to supporting their market
position and brand.
Consider AT&T Cellular. (For the record, AT&T has
been my cell phone service provider since 1987.) AT&T
had positioned itself as a premium cell phone service
provider, developing and delivering innovative services
and products. It offers excellent national coverage,
supported with well-informed store and online associates
24 | LAWN & GARDEN RETAILER | APRIL 2022
who could professionally respond to questions and
resolve problems - and they definitely charged for what
they provided.
But because so many of us rely on mobile phones and
phone services to manage our businesses, we were willing
to pay the premium price for premium service. Further,
when AT&T competitors offered special promotions to new
customers (and not offering these same promotions to their
existing customers), AT&T offered the same promotions
to both new and existing customers, again setting them
positively apart from their competitors.
The consumer will be
the ultimate judge if you're
true to your brand.
And then AT&T changed their business platform from
being a phone/communications company to being a media
company, of which communications was just a part, and
things began to change. For example, instead of offering
promotions or discounts directly on phone products/
services, they made these deals conditional upon buying
their media products (i.e., DirecTV), which their customers
weren't always interested in. And as AT&T's competitors
consolidated, their combined services and coverage area
became equal or superior to AT&T's - and at cheaper prices.
When I asked AT&T store and online reps to justify the price
differences, and service, they provided meaningless, doublespeak
answers. And when I received an e-mailed promotion
that directed me to go to a store to fulfill it, the local AT&T
store staff told me that the plan didn't apply to their store.
When I asked to speak to the manager or supervisor for
clarification, they deferred my request by saying no one in
management was available that day.
AT&T's premium brand and commitment level has
been eroded by their lack of service and concern for their
customers, and can no longer support their premium price
position, especially as their competition has improved and
expanded their products, services, and commitment to their
current and future customers. It's evident that AT&T has
lost their respect for their customer and fail to appreciate a
lifetime value relationship; they are about to lose a longterm
loyal customer.
" I meant what I said, and I said what I meant. An
elephant's faithful, one hundred per cent! " , said Horton,
in an illustrative statement that can be applied to explain
how companies should position themselves - developing
a strong brand story and then being pig-committed to
consistently execute, support, and communicate it.
Your brand, your identity...
Stan Pohmer is president of Pohmer Consulting Group in
Minnetonka, Minnesota. He can be reached at spohmer@
pohmer-consulting.com or 612.605.8799.
April 2022

Table of Contents for the Digital Edition of April 2022
