HMV & The Law of Adaption

It was just two weeks ago that I tried to stray from my normal online purchasing habits and go buy a book at one of the few remaining Barnes & Nobles in Manhattan. I arrived only to be told, "We don't have that in stock but we can order it for you for $20 or you can go online and buy it for $12" . . . guess which option I chose? 

HMV store closing in Ireland

Now, I hear that British entertainment retailer HMV is shutting its doors. I have to wonder . . . is anyone actually surprised? The closure of HMV closely resembles the way many people felt about Warehouse Music Stores going bankrupt in 2003, or Tower Records filing for bankruptcy in 2006, or the closure of Borders, Inc. in 2011. As sad as it is to see a favorite local retailer go, I can't help but notice that this story sounds like a broken record.  No pun intended.

Sure the launch of iTunes store in 2003 changed the way people buy music today but these market trends go back even further to the 90's and the days of Napster and MP3.com.  If you think about the amount of time for which trends have been shifting towards the online purchasing of digital media, HMV must have been a pretty strong business to even make it to 2013. 

Recognizing and Adapting to consumer trends . . . 

Tower Records closing in NYC

I agree with the author of "3 Things HMV's Untimely End Taught Us About Digital Marketing Strategy" that HMV failed to keep their eyes open, change their strategy and adjust their plans based off the clear trends in consumer behavior.  In order to reach their customers and potential customers, businesses must stay up to date on the the type of media being consumed and the way in which people are consuming media.  

In an era where Facebook is being used by over a billion people a month (680 million on mobile), social media and digital marketing opportunities can't be ignored.  Especially in an industry where the best customers are the types that want to stay up to date about the latest Top Hits and are constantly listening to music whether it be on-the-go on their mobile devices or through other relatively new services like SiriusXM, Pandora or Virgin Mobile Live.

However, in cases like HMV, the idea of adapting to consumer media trends goes far beyond just their digital marketing and advertising strategy.  While adapting a digital marketing strategy to the times and recent technology is important in order to communicate to consumers, the idea of adaption applies to all aspects of a business. A company like HMV must also adapt it's services, sales channels and product portfolio to account for changes in consumer behavior.  If HMV would have considered a strategy more along the lines of  "selling entertainment" and less along the lines of "selling CD's in a store", perhaps they would have lived to see 2015.  As long as HMV refused to move beyond it's long-standing brick and mortar business model, even the best Twitter and Facebook campaigns (which we must remember are aimed at heavy internet users) would not have saved it.   

Use Social Media but don't Blame it . . . 

While failure to adapt is a common reason for businesses to struggle and eventually go out of business, a bad incident on social media is not. The idea that HMV's Twitter account getting spammed by recently laid off employees "destroyed this company" is a bit shortsighted.

While social media can influence the perceptions and character of a business, social media trends are generally a reflection of what's already going on with the business, not the influencing factor that determines the next direction for the business.  

Instances of bitter former employees taking to the internet to voice their frustration are not rare.  While layoffs are never a happy occasion and can take a toll on both parties involved, the scenario is common enough that most semi-educated consumers can see that big picture and the biases of the ex-employees involved in social media feuds.  After all, they still chose to work there until forced to leave.  The HMV social media incident is more a reflection of HMV management not having a tight enough rein on their social media than an influence on the company's future. By the time this incident occurred, their fate had already been decided. 

IRONMAN: A Brand that is Transforming a Sport

When asking people what Ironman is, they may tell you it is a race on the big island of Hawaii, a company that organizes triathlons, a clothing line, a title that one earns upon completion of a 140.6 mile race, a cult of OCD athletes that do nothing but swim bike and run for half of the year or in many cases, you might hear something about a Marvel character.

It’s likely that only a marketer who is actively engaged with Ironman will tell you that Ironman is a brand, a very powerful brand that is seen as so much more to those who interact with it. 

They say triathlon is one of the fastest growing sports in the world and I have no doubt that the Ironman brand and their digital strategy has played an important role in that growth.  I have a "love-hate" relationship with the Ironman brand but, most of all, I am fascinated by how powerful it has become through tapping into human emotions, taking people on a journey, creating a unique experience and doing it in a way that people end up seeing their Ironman journey and the Ironman brand as synonymous. I'm by no means saying that completing an Ironman isn't an accomplishment for one to be emotional about but recognizing the way Ironman as a company has put their brand at the core of the experience. 

The Event:  In simple terms, Ironman is a company puts on long distance triathlon events that are also known as Ironman races. The race consists of a 2.4 mile swim, 112 mile bike and 26.2 mile run. These events are historically put on by a handful of companies, however, as the name Ironman is owned by the company, only the races put on by Ironman are the only ones technically labeled "Ironman" races making the race experience and the brand almost one in the same.  While another race company might host an equally challenging event of the same distances, they do not often receive the same hype and build up and generally have much lower entry fees because they do not use the Ironman label. People who do these other events will still often say they are doing and "Ironman" because,  lets face it, that sounds a lot better than saying, "I'm doing a full distance triathlon" and no other brand has managed to attach itself to the event in the same way.

The M-Dot Logo: "M-dot" is the term for Ironman's logo. It basically consists of a large red "M" with a dot over the center that a makes it look like an "i" over the M, symbolizing Ironman. The M-Dot is to Ironman as the swoosh is to Nike. You see it stand alone on hats, shorts, blankets, glasses, etc. at the ironmanstore.com.   If were to take a $5 t-shirt and sew the M-Dot logo on it, suddenly, it becomes something that members of the Ironman community feel so attached to that it's value increases 500%. To members of the Ironman community, this logo has become so symbolic that many feel the need to tattoo it onto their body. Yes, this brand has wedged it's way so far into peoples lives that they feel compelled to attached themselves to it forever and share it with other members of the community on Ironman's Ink of the Week section of their website.

The Community: If someone came up to you on the street and introduced himself as an Ironman, you'd probably laugh or think they were crazy at first, but, to some involved with the brand who have completed an Ironman sponsored event, “Ironman” is a title just like “Sir” or “Duke” or “Doctor”.  It’s a right of passage that is earned only upon completion of an Ironman event. Ironman gives this title to participants when they cross the finish line in a dramatized and highly emotional moment. Upon coming down the final few feet of an event the participants hear the words, “You . . . are . . . an . . . Ironman!”. By doing this the company increases the emotional attachment between itself and it’s customers. Some people long to hear those words for months not even thinking of Ironman as a brand or company. It’s not as if you’d feel the same way about hearing the works, “You are a full distance triathlon finisher” although they really mean the same thing.

Telling the story online: Last but not least, Ironman has done a fantastic job of making sure their story gets told, and re-told, over and over again, online. By constantly updating sections of their website, such as the News or Lifestyle sections, members of the Ironman community always have a reason to return to the Ironman website. More importantly, Ironman is extremely active on social sites like Twitter (where they have over 90,000 followers), Facebook (where they have over 188,000 fans) and Youtube where they can truly capture the emotion and excitement of their events through the sharing of the race day atmosphere including finish line moments, interviews with the pro's and their events in action. While most friends of participants won't be able to come cheer on the athletes due to the challenges of getting to the kind locations that permit a 140.6 mile race to take place, Ironman allows people to follow the race all day online by updating people through their LIVECoverage section.  Friends can check back from 7am to midnight to track the progress of athletes as they go. The online and social presence of Ironman has made it easy for participants to share with family, friends and others in the triathlete community and, in doing so, they are constantly marketing Ironman to their networks. When you think about the 2,200 athletes in each race, and the size of their networks following them during the race, that adds up to a lot of people reached through digital media.  

The Ironman is the prime example of how creating an emotional attachment can lead to a successful brand.  Ironman does this very well.  Because of the emotional connection Ironman forms with it's customers through the methods mentioned above, they are able to charge significantly higher rates for entry fees and merchandise than other race companies. People often pay over $700 to get an entry to these races which sometimes sell out in just a couple of days a year in advance and they do not give refunds or allow cancellations to those who end up not being able to make it on race day. Furthermore, the lines at the retail tents the day after the race resemble those of Black Friday with people spending hundreds of dollars more on things like jackets, hats, bike shorts, you name it.  It is for this reason that I can say, I have a "love-hate" relationship with the brand. While I'm both disgusted and in amazement of the money people pour into these events, it's clear that Ironman has taken a sporting event and created a one of a kind experience around it that one can't get elsewhere. 

The Cliff Notes to my Up to the Hour News

I’m not going to lie; I was not the first to jump on the Twitter bandwagon.  I didn’t join as soon as it came out, I kind of got annoyed at the chirping sounds I’d hear from co-workers phones and I didn’t see it as a site of substance or one that I’d spend time on consuming quality content. However, since I downloaded the Twitter iPhone App things have changed. While I don’t consider myself to be an influential or highly active “Tweeter”, the Twitter App is now one of my most frequently used apps. Below are the reasons why I love it.

1.   Timeliness  - All right so maybe it’s not right now, maybe it happened 10 seconds ago, but, if something is newsworthy, you can bet it will be on Twitter as it’s happening.  This feature can be great in several types of events from major storms to election day and sporting events. For example, if you are signed up for an outdoor event and it’s pouring rain, you can get news of any change as soon as it’s available. Also, if you don’t have an entire afternoon to watch a sporting event or race you are at least somewhat interested in, you can simply check in every hours to see the major plays or progress.

2.   Brevity – Don’t get me wrong; there are many great articles that are over 500 words that are worth reading. However, they aren’t all worth reading for every individual and, even if they are, one doesn’t always have the time to read them in depth while they are on the go even though they might want to know what’s going on. Between WSJ, CNN, Ad Age, Tech Crunch, Triathlete Magazine, School, my friends and all the new blogs I’m reading . . . well, I could spend all day reading.  While I love a good story as much as the next person, sometimes I don’t have time for storytelling and I simply want to know about an outcome or major event.  By limiting the amount that can be written to 140 characters, people are forced to get to the point. After you know the main point you can decide for yourself if you want to read more and use the Twitter App to bookmark articles for a more convenient time.

3.   Filterability – With the rise in social media, blogs and alternative news sources, there is so much information out there these days. I don’t know who has the ability to keep up with it all.  No one has the time to read every section of every newspaper or sort through all the magazine sites they have bookmarked. As well as limiting the characters in a Tweet, Twitter allows users to opt-in to the subjects and accounts of interested to them so they can prioritize the information they get on the go to the sources and subjects that matter most. Personally, I can usually tell if a topic is important because it will show up in tweets from multiple accounts I follow.  Also, when someone thinks it’s ok for them to tweet the same thing every 30 minutes, you can easily filter him or her out.

To sum things up, I love my Twitter App because it allows me to stay up to hour on the most important points from the publications and people of importance to me while I’m on the go.