As per my headline, for this issue of Catalog Success: The Corner View, I hand my pen โ um, keyboard โ over to Catalog Success E-Commerce Insights columnist Alan Rimm-Kaufman. Alan heads the Rimm-Kaufman Group, an online agency providing large-scale paid search bid management and Web site testing services, and was formerly a marketing executive with the Crutchfield catalog of consumer electronics. I leave the stage to Alan, who starts with a potential scenario followed by nine predictions for the future of the catalog/multichannel business as it affects you. Scene: A bar at a conference hotel during a marketing trade show. Bill:
Management
Catalog Success: Where is the company headquartered? Martin Smith: Minneapolis/St. Paul. Roseville to be more specific โ just north of those two cities. CS: What year was the catalog established? MS: I believe Jeanne [Voigt, the founder of MindWare] started it in 1990. Itโs certainly not earlier than that; it might have been 1991. CS: What is the primary merchandise offered in your catalog? MS: Toys and games, all of which have some educational or developmental attributes. This could be physical attributes, physical developmental skills, or it could be mental skills โฆ it could be math, it could be more
A Chat With Marchโs Profile, Martin Smith, CEO of MindWare
WHAT GOT YOU HERE: A background in strategy and contacts. As a direct marketing veteran, Smith got his start in the catalog/multichannel business in 1984 with Avon Products (now Newport News) where he spent nearly 20 years before joining MindWare as CEO in October 2003. Before joining Avon Products, Smith worked at General Electric in an internal strategy consulting role. While there, Smith recalls, โa former senior GE executive, who was the CEO at Avon Products, wanted to recruit people with a GE strategic-planning background. I was interested, and a job came up. That job happened to be in the direct response division. I
I would have preferred my first column for Catalog Success to focus on good news. But I just canโt describe a rash of businesses that are about to close or sell in 2008 as good news. The 2008 valuations and acquisitions forecast for multichannel marketers looks cloudy, especially for those in the $20 million to $50 million range whose businesses remain print-centric. Paper and postal price hikes imposed last year will likely lead entrepreneurs to sell this year. The Stormโs Here A perfect storm of increased paper and postal costs has conspired to put a chokehold on mailers everywhere, particularly small and midsize
Earlier this month, catalogers and other businesses that rely so heavily on the USPS realized a โdreamโ more than a dozen years in the making. They were โtreatedโ to their first postal rate adjustment under the new postal reform law. Under its new rate-making powers, giving it the freedom to set rates as long as theyโre no greater than consumer price index (CPI) levels, the USPS announced the increase for noncarrier route flats, the key catalog category, would be less than 1 percent. The worst news was that it would take effect this spring, just a year after the final postage increase under the
HOW DID YOU BREAK INTO THE CATALOG BUSINESS: Two words: world travel. Working as a business consultant and traveling all over the U.S. in the 1980s, Stopka earned plenty of frequent flyer miles to take annual vacations in Europe, where he fell in love with European culture. โI told my wife [Design Toscano co-owner Marilyn Stopka] I could market European exotic products to the American public,โ Stopka says. By sourcing through a friend in the statuary business, Stopka began selling his products through a new catalog. โWe took its catalog, replaced the cover, put a price sheet in and advertised in the back of
Jim Garlow, director of advertising and marketing operations for technology products and services provider CDW, shares his feelings on matters ranging from why itโs important to be a knowledge source in the tech market to growth tactics for startup catalogers and much more. Catalog Success: Why is it important for CDW to be viewed as a reference source in the tech marketplace? Jim Garlow: We send our account managers through rigorous training because our target audience consists of IT purchasers and chief information officers, both of which are very tech savvy. They know they want somebody on the phone who knows what theyโre
Catalog Success: How did you break into the catalog business? Mike Stopka: Itโs kind of a romantic story. Now weโre going back almost 20 years. Professionally I was a consultant and I traveled all over the United States in the 80โs, when I was in my 20โs and early 30โs โ working in financial institutions, doing feasibility studies. Very strong on the spread-sheet skills. With that said, with all that travel I had free tickets, so we used to go to Europe every year. This is when the dollar was strong. It was like cheaper than going to vacation in Wisconsin for an Illinois
In announcing its formal backing of the recently created American Catalog Mailers Association (ACMA) on Dec. 18, NEMOA board members are making a bold statement that the half-year-old organization can best represent their 110-plus catalog membersโ interests, particularly in postal matters, going forward. Positioning itself as a catalogers-only group, ACMA is also focused on do-not-mail legislation and privacy. โACMA will represent our specific needs relative to postal affairs, do-not-mail, privacy, environmental [policies] and whatever else comes our way over the coming year,โ says Jon Fleischmann, president/CEO of the Potpourri Group and a NEMOA board member. Fleischmann believes potential benefits offered by the ACMA include