Thursday, May 22, 2003

From shelf space to mind space Getting a product stocked on the right shelves at the right time is hard enough, but it's not the ultimate goal. (We of course include metaphorical shelves, such as movie theaters, TV channels, and radio airplay.) If a retail oligopoly gets its new stuff on shelves, even the best shelves, but it just sits there -- then it's won the battle but lost the war. It doesn't make sense to roll out a great new board game that everyone loves in focus groups, only to watch it bomb -- as shoppers grab old standbys like Monopoly or Scrabble. It's pointless to win a major prize at Cannes, and then watch the film fizzle in just one weekend on 3,000 screens. There's no satisfaction in seeing a brilliant, charming book make the shelves at Borders, then quickly get remaindered. That's where winning mind space comes in. Without control of mind space, extending shelf life and controlling shelf space don't pay off in higher return. And without ROI, the wheels of business grind to a halt. Winning mind space means acquiring the best real estate inside the minds of potential customers. It means implanting minds with an awareness that a product exists, convincing them that a product is worth trying out, then convincing them that a product is worth buying - in many cases, not just once, but again and again. For most companies, however, winning a commanding share of mind space is an elusive dream. Why is it so tough to acquire mind space, even with a great products and a top-notch Web site? There are several ways to look at the challenge. First, consider the oft-repeated notion that the average consumer processes from 1,500 to 3,000 promotional messages each day. The promotional cycle never lets up -- newspapers, billboards, store signs, radio, TV, junk mail, e-mail (even "permission" e-mail messages), and more. Every aisle in your grocery or home-improvement store carries a multitude of brands crying out for attention; each package is a mini-advertisement. And the items you buy continue to scream commercial messages after you bring them home: The paper cups you drink coffee from; the sweatshirts and T-shirts your neighbors wear in the mall; the logos on your cars; even the sign on a neighbor's lawn, reminding you of the name of the general contractor who is working on his house. All of them keep moaning, like the ghost of Hamlet's father, "Remember me! Remember me!" These images don't just compete for mind space with similar products from competitors. They also compete for mind space with a vast array of products, people, institutions, companies and good causes that try to grab just a little of your attention span. Worse, every individual and group sparring for that attention has gotten a lot smarter about promoting itself. And the drumbeat of promotions is constantly expanding. That's where an oligopoly can have some real power. As with shelf space, a big enough company can compel attention, guaranteeing mind space. This can happen because the oligopoly can build on brands that it owns and acquires, ones with already established mind space. Big companies can afford the endless marketing in all senses, not just the advertising, but also the outreach to the retail channel, the implicit threats or rewards for middlemen. While making desirable products is a big help, that is not enough. And should a Snapple, a Smartfoods, a Gatorade, a Power Bar suddenly gain mind space (against heavy odds) for a small one-product company, then the mind space equity is something that will be snapped up at a high price by an oligopoly that can possibly take it to the next level. 7:39:04 PM

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