March 1, 2007
Meijer Discovers Marketing Opportunity
It seems how stars were discovered before they made it big has always been part of entertainment industry legends.
Brian Epstein found (in some versions) The Beatles. Diana Ross didn’t discover The Jackson Five but Berry Gordy loved the fictional account and promoted it at Motown. Simon Cowell, it was discovered at an early age we’re sure, was a nasty little bugger and yet somehow landed on a show that utilizes his talents to let others find current “American Idol” stars.
Now, a retail chain is getting into the star discovery business and that may mean that one day the story will be told of how Greg Baxter, product analyst for Meijer, found Joshua Davis before he became a recording legend and started piling up Grammies in his den.
Okay, let’s take a step back. Meijer has created a marketing program it has dubbed “Outside the Mainstream.” The concept is simple. Find an independent unknown recording artist, buy 1,000 CDs directly from the artist and put it in 176 Meijer stores. From there, promote the heck out of the band or solo artist for a month with features in the company’s circulars (reaching 7 million households) and in-store support including endcap displays.
Joshua Davis (remember that name) was the first artist chosen for the program. Meijer is marketing his first solo project, “Fool Rooster,” originally released in 2005.
“It’s a cool thing,” the singer-songwriter who lives in Lansing, Mich., told The Grand Rapids Press. “If the program works out … it’ll be a good thing for local artists. It’s a really big opportunity. There’s so much talent locally in Michigan and in this region.”
That brings the story back to star-finder Greg Baxter. The Meijer product analyst is a fan of the local music scene and came across “Fool Rooster,” described as a “rootsy, folk-rock album.” He began passing the CD around the office and the idea to find a way to sell it and others like it was born.
“It’s pretty exciting. It benefits the artist. They’re hard-working, and it can be thankless for them,” said Mr. Baxter. “There’s really some exciting stuff out there, and we want to be a partner with them.”
Meijer is happy with the program even before the first sale because of all the buzz it has generated in the five states where it has stores. The company said almost all the $7.49 selling price for the CDs goes directly to the artist.
Joshua Davis is definitely sold on the concept, and will remember Meijer when he’s rocking arenas in the future.
“They’ve already sold out of all the Lansing stores and are restocking them,” he said. “It’s a program that I don’t think is set up to fail. I think it’s going to do real well. It’s … about hitting different markets, which is great.”
Discussion Questions: What do you think of Meijer’s “Outside the Mainstream” program as a means of differentiating the chain from its competitors?
Highlights of the Meijer program as bulleted by The Grand Rapids Press:
Meijer will spotlight a new regional musical artist monthly.
The CDs, bought by Meijer from the band/artist, sell for $7.49.
Descriptions of artists appear in ad circulars and end-cap displays.
Artists are picked from communities served by the chain’s stores.
CDs must be “family-friendly” and must not require parental advisory labels.
To be considered, artists should send e-mail to musicbuyer@meijer.com
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I think that this is a great idea. Not only will it help the local artists, it should give Meijer very good public relations and recognition for supporting them. It would be very cool if this helped launch a local talent that otherwise might not have succeeded.
Paralysis by analysis. When famous entrepreneurs Hendricks and Fred Meijer started the business they took a number of risks against the norm and the rest is history. Just ask Wal-Mart what concept they borrowed. Traders Joe’s and Whole Foods did not think about what the information says; they created the information.
Follow this famous line, “I don’t want to be a product of my environment, I want my environment to be a product of me.”
It is about time someone quit following and started leading.
Go Meijer!
This is why retailers used to be called merchants. They probably didn’t even do any study groups to decide if it was a good idea. What’s that I feel? Oh yeah, it’s a breath of fresh air.
This story leaves me feeling good that there STILL are some creative ideas out there! When the local sports team, either professional or amateur (including high school teams) does well, their sweatshirts and memorabilia pop up everywhere in immediately local grocery and convenience stores for a few weeks. The stores carry the merchandise for a short targeted time, make a small ad buy reaching a local targeted audience, and have only a small investment in the product. It must work, because it goes on year after year for one team or another.
I see Meijer as employing a similar “local” “targeted” “it’s special” and “minimal investment” strategy with the music. Within their big box they will be also be tapping on the yearning so many shoppers have for something that is different and personal.
And oh, the photo ops!
Some artists will sell better than others and some artists’ parents and grandparents may stuff the ballot box so to speak in order to make their pride and joy’s work look hotter…but it’s all good. The beauty is, Meijer gets the positive buzz, the kids get some exposure and recognition, and it is a locally small enough project that it’s easy for Meijer to back away from if, for some reason it does not work out. I love this idea and wish them well!
As long as Meijer spends very little promoting this, it’s a winner because the free publicity is so positive. Anytime a retailer gets free publicity it’s a plus. Of course, nothing is truly “free,” but this investment could be minimal.
Clearly Meijer understands the concept of The Long Tail. Their “Outside the Mainstream” program is sure to take advantage of a demand that is not being tapped by the big labels (and never will; they are only profitable on major labels).
If Meijer can expand this program and service it by market, they may accomplish two things. First, create a viral buzz that defines their stores’ music department and generates increased foot traffic. Secondly, they will take advantage of sales which would never happen as these artists are not available on iTunes or anywhere else. You might be surprised at how many local and regional artists have a following or could generate a following.
It is a clever way to differentiate themselves from their competition, drive new foot traffic and capture dollars from the long tail.
Creating buzz is critical and clearly this endeavor is creating buzz for the artist and for Meijer. If this moves from a local regional store type of buzz to the internet, the opportunities are endless. Many beginning artists want a “chance”–see American Idol and all the similar shows. This is a win-win opportunity for the retailer an the artist. Artists need a “start”; Meijer wants to give consumers a reason to come to the store and to create good community relations. Sounds good to me.
Well, first of all, by day I might be a shopper insights guru but by night, I am the blues harp player in a blues/rock band called (what else) “The Outliers,” so I immediately sent Meijer’s our presskit!
I think it is very nice PR but you also need to consider the scale of the impact it could directly have (small). A big artist needs to have their album go gold/platinum meaning a million copies plus are sold, but that is only 1% of households buying it. For an independent artist, 100,000 copies sold or one-tenth of one percent would be great. That “penetration” is so low that it would have little impact on traffic at a non-specialized retailer.
So, nice buzz, questionable direct commercial impact.
If anyone is curious about the band, please contact me for a link to hear our music. Later, everyone!
I think Meijer’s “Outside the Mainstream” is a great idea. I can’t see a downside for Meijer, and there have already been some positive results, including all the free PR Meijer is getting over this program. With the excitement and interest created by programs such as American Idol, the public would be excited to see the next big star being discovered locally by Meijer.
We’ve been discussing the importance of local relevance in retailing for some time and Meijer’s “Outside the Mainstream” is a perfect example. It’s a brilliant concept that I applaud and believe will be very successful. Meijer could expand and enhance the marketing of this concept through their in-store digital media network. Why not promote “Outside the Mainstream” and artists like Joshua Davis through concert video footage on the Meijer in-store network? Meijer could use the network to ‘broadcast’ a live concert in all of their 176 stores; not unlike what Wal-mart did with Garth Brooks. The marketing and promotional opportunities that this program opens for Meijer is exciting.
Compass Productions has leveraged the use of independent artists to produce themed music releases with Target for years. The revenue generated by these ‘generic’ releases is phenomenal. Meijer’s concept is far more inspiring for the local artists. I trust the local artists and Meijer support each other as this initiative expands. Not only will they benefit but the Meijer audience will as well.
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I think that this is a great idea. Not only will it help the local artists, it should give Meijer very good public relations and recognition for supporting them. It would be very cool if this helped launch a local talent that otherwise might not have succeeded.
Paralysis by analysis. When famous entrepreneurs Hendricks and Fred Meijer started the business they took a number of risks against the norm and the rest is history. Just ask Wal-Mart what concept they borrowed. Traders Joe’s and Whole Foods did not think about what the information says; they created the information.
Follow this famous line, “I don’t want to be a product of my environment, I want my environment to be a product of me.”
It is about time someone quit following and started leading.
Go Meijer!
This is why retailers used to be called merchants. They probably didn’t even do any study groups to decide if it was a good idea. What’s that I feel? Oh yeah, it’s a breath of fresh air.
This story leaves me feeling good that there STILL are some creative ideas out there! When the local sports team, either professional or amateur (including high school teams) does well, their sweatshirts and memorabilia pop up everywhere in immediately local grocery and convenience stores for a few weeks. The stores carry the merchandise for a short targeted time, make a small ad buy reaching a local targeted audience, and have only a small investment in the product. It must work, because it goes on year after year for one team or another.
I see Meijer as employing a similar “local” “targeted” “it’s special” and “minimal investment” strategy with the music. Within their big box they will be also be tapping on the yearning so many shoppers have for something that is different and personal.
And oh, the photo ops!
Some artists will sell better than others and some artists’ parents and grandparents may stuff the ballot box so to speak in order to make their pride and joy’s work look hotter…but it’s all good. The beauty is, Meijer gets the positive buzz, the kids get some exposure and recognition, and it is a locally small enough project that it’s easy for Meijer to back away from if, for some reason it does not work out. I love this idea and wish them well!
As long as Meijer spends very little promoting this, it’s a winner because the free publicity is so positive. Anytime a retailer gets free publicity it’s a plus. Of course, nothing is truly “free,” but this investment could be minimal.
Clearly Meijer understands the concept of The Long Tail. Their “Outside the Mainstream” program is sure to take advantage of a demand that is not being tapped by the big labels (and never will; they are only profitable on major labels).
If Meijer can expand this program and service it by market, they may accomplish two things. First, create a viral buzz that defines their stores’ music department and generates increased foot traffic. Secondly, they will take advantage of sales which would never happen as these artists are not available on iTunes or anywhere else. You might be surprised at how many local and regional artists have a following or could generate a following.
It is a clever way to differentiate themselves from their competition, drive new foot traffic and capture dollars from the long tail.
Creating buzz is critical and clearly this endeavor is creating buzz for the artist and for Meijer. If this moves from a local regional store type of buzz to the internet, the opportunities are endless. Many beginning artists want a “chance”–see American Idol and all the similar shows. This is a win-win opportunity for the retailer an the artist. Artists need a “start”; Meijer wants to give consumers a reason to come to the store and to create good community relations. Sounds good to me.
Well, first of all, by day I might be a shopper insights guru but by night, I am the blues harp player in a blues/rock band called (what else) “The Outliers,” so I immediately sent Meijer’s our presskit!
I think it is very nice PR but you also need to consider the scale of the impact it could directly have (small). A big artist needs to have their album go gold/platinum meaning a million copies plus are sold, but that is only 1% of households buying it. For an independent artist, 100,000 copies sold or one-tenth of one percent would be great. That “penetration” is so low that it would have little impact on traffic at a non-specialized retailer.
So, nice buzz, questionable direct commercial impact.
If anyone is curious about the band, please contact me for a link to hear our music. Later, everyone!
I think Meijer’s “Outside the Mainstream” is a great idea. I can’t see a downside for Meijer, and there have already been some positive results, including all the free PR Meijer is getting over this program. With the excitement and interest created by programs such as American Idol, the public would be excited to see the next big star being discovered locally by Meijer.
We’ve been discussing the importance of local relevance in retailing for some time and Meijer’s “Outside the Mainstream” is a perfect example. It’s a brilliant concept that I applaud and believe will be very successful. Meijer could expand and enhance the marketing of this concept through their in-store digital media network. Why not promote “Outside the Mainstream” and artists like Joshua Davis through concert video footage on the Meijer in-store network? Meijer could use the network to ‘broadcast’ a live concert in all of their 176 stores; not unlike what Wal-mart did with Garth Brooks. The marketing and promotional opportunities that this program opens for Meijer is exciting.
Compass Productions has leveraged the use of independent artists to produce themed music releases with Target for years. The revenue generated by these ‘generic’ releases is phenomenal. Meijer’s concept is far more inspiring for the local artists. I trust the local artists and Meijer support each other as this initiative expands. Not only will they benefit but the Meijer audience will as well.