denise lee yohn: brand as business bites™ /

Consensus Advisors just released their 2009-2010 Retailer Health Ratings (RHRs) report.  The RHRs measure and compare retailers over a five-year period on:

• healthy growth
• asset utilization
• pricing power
• balance sheet strength

The report and webinar were really interesting and so I thought I’d share some of the insights and my reactions. (more…)

Companies need to make money – I get it.  And as a capitalist at heart, I generally subscribe to the business practice of charging what the market will bear.

But as I’ve learned about the recent pricing decisions of two high-profile institutions of American culture – Starbucks and The New York Times – I’ve wondered if pricing models based on traditional understandings of profit margins and price elasticity can backfire.  That is, charging higher prices for certain offerings may make sense on paper – but they actually incentivize the wrong behaviors and reward the wrong customers. Here’s what I’m thinking:

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This week’s BusinessWeek features two stories back-to-back that together make an important point for all businesses trying to navigate today’s recessionary times. First is a piece on Target’s apparent move down market, “Look Who’s Stalking Wal-Mart.”  It outlines several moves by Target that seem to be taken from Wal-Mart’s playbook. Then there’s the article, “Why Old Navy May Still Be at Sea,” relaying the cheap-chic retailer’s struggles and successes over the past few years. (more…)

Within a month of each other, two articles appeared in BusinessWeek about  luxury brands.  The articles, about Coach and Tiffany & Co. respectively, describe how the brands are dealing with the decrease in demand due to the recession.  Each has devised a strategy for lowering its prices without tarnishing its brand. (more…)

The editor of QSR Magazine, the trade journal for quick service restaurant brands (fast feeders like McDonalds, Dunkin Donuts, Baskin Robbins, etc.), interviewed me to explain to QSRs “Why You Win If Starbucks Survives.” (more…)

I was really pleased to read about apparel retailer abercrombie & fitch’s commitment to its brand in a recent LA Times article. (more…)

Just the other day, I encountered a sign on the counter of my local Panera Bread.  It announced price increases on its bagels due to increased costs.

I’m sure many businesses faced with increased margin pressures are looking at price increases (more…)