Philippe Meyersohn

Philippe Meyersohn joined MABE Canada, the manufacturer and distributor of GE Appliances in Canada, in the newly-created position of General Manager - Brand - in September 2007. Reporting to Luis Dorador, Director of Commercial Business, Philippe’s primary responsibility is to develop and strengthen brand equity for the GE appliance portfolio in the country.

Philippe, a native of France, was awarded an undergraduate degree with majors in marketing and retail studies from the Grand École de Commerce in Paris; and earned his MBA, with majors in marketing and in strategy, from the Kellogg School of Business at Northwestern University, Evanston, Illinois.

Philippe is an experienced marketing executive with an outstanding track record of building and managing teams, as well as leading projects from strategic planning through to successful execution. He has applied Business Development, Marketing and Brand Management disciplines with a number of well-known companies in France and North America. Among them are Baron Philippe de Rothschild and Unilever in Paris, and Criticalarc Technologies in San Francisco. Most recently, as VP Marketing at Neilson Dairy - part of George Weston Limited - based in Toronto, he has achieved significant increases in non-commodity fluid volume and in beverage sales.

Philippe has also worked as a management consultant with A.T. Kearney of Toronto and Vivaldi Brand Leadership in New York. At Vivaldi, Philippe helped a number of Fortune 500 companies in the areas of brand strategy, positioning and growth strategy.

The Showroom Experience: Interaction Essential

While on a recent trip to New York City, I visited a couple of showrooms – all senses peeled for the key elements of success. I asked myself, what does it take to successfully engage visitors in the experience of a given lifestyle brand? Two retailers in the Time Warner Center at Columbus Circle took notably different approaches. The contrasting experiences further convinced me of the importance of interactions.

My visit to Aveda was memorable – as I came through the door, I was greeted with an offer of a relaxing cup of tea. From the start, I was given the impression that the sales people wanted my visit to be stress-free. Throughout my time spent there, the sales people were friendly, offering me help in selecting products. The surprising moment came at the end after my purchase – I was given a hand massage! This unexpected service at the end made my experience at Aveda very memorable.

In contrast, my visit to a well-known electronic manufaturer's store was less impressive. The company uses a showcase format, presenting all products they sell - from computers and phones to TVs. While there are many staff members on hand, their purpose is to provide help when required, rather than to offer an opportunity to experience something unique. The store does not provide the visitor with a memorable experience – the extent of interactivity is the ability to use their computers (with a 30-minute limit) to send email and postcards to friends and family.

Thinking back on these two visits, I’ve come to the conclusion that while many brands are moving towards showrooms, they need to ensure that selling and building the brand are complementary to each other. Building a beautiful showroom is not the end goal - service and interactive activities are critical to creating a memorable brand experience for the shopper. Apple stores are a great example of this blending of emotional and functional experience.

Launching High-End Products in Tough Economic Times

Joseph P. Kennedy, American businessman and ambassador once said, “When the going gets tough, the tough get going.” These are wise words to keep top-of-mind even during a recession.

You have invested much time in developing a great, high-end product, and are in the process of planning the launch. Then, as with Murphy’s Law, if anything can go wrong, it will. An economic crisis hits and you face the possibility of not launching the product at all!

This is what happened to us recently with the launch of our new high-end line of kitchen appliances. Instead of scrapping years of hard work getting to the launch point, we “got going.”

Along the way, we learned a few valuable lessons:

• Success can often be viewed as a failure if you don’t set clear expectations with internal and external stakeholders for your volume and pricing goals. Establish a clear benchmark at the very beginning so that everybody within the organization is on the same page.

• Are your retail customers capable of selling your high-end products during a tough economy? Focus on core retailers that have a strong share in your target market segment.

• Create short- and long-term marketing plans. Create a modest marketing plan for the immediate product launch, keeping in mind retailers’ possible difficulties in investing in inventory. Think of creative ways you can support retailers during this time. Plan ahead for future marketing activities as economic tough times will end and consumers will potentially be seeking out your product.

• Adjust the balance between emotional and functional benefits. During poor economic periods, consumers are looking for product features that offer real value and meet their needs, rather than items that just offer them a perceived status.

Insights from the Home-Owning Consumer

A home means different things to different people. For marketers seeking insights into homeowners’ purchasing decisions, it’s a telling tale of consumer habits.

The home represents a big part of a consumer’s life, from initial acquisition to the many significant purchases made to create a home. These important consumer decisions offer a magnifying glass through which we can examine some more general consumer behaviours. The following three insights demonstrate what a microcosm a homeowner’s purchase habits can be as a reflection of the consumer economy.

Honey, I Shrunk the House

The size of new homes has decreased by 11 per cent in the last half of 2008, from 2,629 sq ft. to 2,343 sq ft. This trend started before the economic crisis hit North American households. Builders quickly learned to adapt the size of houses to meet consumers’ current financial possibilities and immediate day-to-day needs. In this context, it’s no surprise that consumers aren’t biting to purchase 10 cans of Campbell’s Soup for $10. Consumers are managing day-to-day decisions about purchases in the same way they handle major purchases, like homes.

Birds of a Feather Don’t Always Flock Together

Despite what one may think, not all products within a category behave the same way. An April 2009 survey released by Pew Research Center looked at the difference in consumer habits between purchasing luxuries and necessities. Take appliances, for example. A dishwasher, contrary to the opinion of many busy parents, is considered a luxury, versus a clothes dryer, which is considered a necessity (21 per cent versus 63 per cent, respectively, called each a necessity). The forecast for the industry shows that laundry washers and dryers will not decline in sales as much as dishwashers and even ranges. Likewise, consumer goods companies should expect line extensions to suffer more than their core products, because these extensions are considered a luxury by consumers. Special K, for example, will sell better than Special K with the addition of strawberries and vanilla, because the latter is more expensive and therefore considered unnecessary. Consumer packaged goods companies need to invest in the core of their brands, to ensure they do not lose consumers for their franchise.

To Buy, or Not to Buy? Or to Scale Down?

A recent survey asked 400 consumers about their purchase intent for televisions, appliances and furniture. The results were striking. They highlighted that a significant decline in purchase intent was expected over the next six to 12 months. Meanwhile for those who do intend to purchase, research showed they will not scale down significantly. Consumers are looking around more and doing more of their own research to find deals. However, they will not buy a product that does not fulfill their needs. For example, if they want a stainless steel fridge, they will not buy a white one, even if it is priced lower. What does this mean? Marketers should not advertise only the opening price point or low-cost products just because the economy is weak. Value still resonates with consumers.

Authored by Philippe Meyersohn, GM - Brand, GE Appliances / Mabe Canada.