Target Marketing

You will be automatically redirected to targetmarketingmag in 20 seconds.
Skip this advertisement.

Advertisement
Advertisement
 
 

D-Day and the End of the Bloomingdale’s Catalog

Marketing is war—a fight for share of market and wallet

May 2008 By Denny Hatch
13
Get the Flash Player to see this rotator.
 

In the News

Macy’s to Fold Bloomingdale’s Catalog, Boost Web Site
Department store operator Macy’s Inc. plans to discontinue its Bloomingdale’s By Mail catalog in 2009, directing its resources instead to the more lucrative Bloomingdales.com Web site, an outlet expected to generate 2008 revenue of $1 billion.
St. Louis Business Journal/Business Courier of Cincinnati, May 9, 2008
Whenever things go wrong and I get depressed, my wife Peggy says, “Cheer up, nobody is shooting at us.”

I used to know Francey Smith, who ran the Bloomingdale’s catalog for years. She was a marketing genius who combined database wizardry with great merchandising savvy. She was one of the best in the world at what she did.

Now the Bloomingdale’s catalog, which has been around since 1886, is being killed off by Macy’s. It has an active file of 472,609 12-month mail-order buying households. A ballpark estimate would be that each household has an average of four people, which means a total of 1.8 million customers with household incomes around $90,000 who spend an average of $190 per order.

With gasoline flirting with $4 a gallon, a war costing $20 billion a month, millions of people being kicked out of their homes and a recession settling in, the catalog and retail businesses are reeling.

So do you give up? Throw in the towel? Say, “The hell with it?”

Peggy and I just got back from Normandy and an intensive three-day immersion in the carnage of World War II and the D-Day invasion. People were shooting at us on June 6, 1944, and an estimated 4,000 troops were killed in 24 hours.

For many, it was tempting to give up and say, “The hell with it.”

But nobody did.

Marketing and War
I did a lot of reading before leaving for Normandy—the official U.S. Army account of the planning and execution of D-Day, as well as Cornelius Ryan’s classic account, “The Longest Day.”

In the history of warfare, nothing like the invasion of France had ever been attempted: shipping 326,547 troops, 54,186 vehicles and 104,428 tons of supplies across 90 miles of ugly seas and putting them ashore in five days on roughly 70 miles of heavily defended beaches and cliffs.

The logistics were staggering, starting years before deciding precisely where to launch the cross-channel invasion and how to pull it off.

It was not unlike marketing, where you get inside the heads of the people you want to reach, and then figure out their objections and how to overcome them.

What truly fascinated me were the gimmicks, gadgets and inventions—from a simple child’s toy to giant six-story, movable structures—that the planners and their staffs came up with. Among the ideas that contributed to the success of D-Day:

* The Cricket On the night of June 5, 17,000 British and American paratroopers and glider troops descended into Normandy intent on capturing some bridges and destroying others, cutting communication wires, taking out gun emplacements, and generally creating utter confusion. The night was black, and the men’s faces were blackened. They had flashlights but could not use them because their positions would be given away to the enemy. How to communicate? Somebody came up with the idea of giving every soldier a child’s metal cricket toy—a piece of metal that, when squeezed, clicked twice. If a soldier saw a dark figure, he would click the cricket once. The response was two clicks. No response and you shot the guy. Reproductions of “Le Criquet” are on sale in museums all over Normandy and go like hotcakes.

Takeaway Points to Consider:

* Marketing is war—a fight for your share of market and wallet. It is nothing less.

* Every person in your organization should be encouraged to dream up new and improved ways of doing things—and be handsomely rewarded if they improve your bottom line.

* Do not micro-manage your people the way Hitler controlled his generals. Give them ownership of their jobs. If they do not deliver, replace them with people who will.

* Is your support infrastructure the best it can be? If not, you are running at a serious competitive disadvantage, and cash is flowing into the sewer.

* When we are finally out of Iraq, the price of oil is dealt with and the recession is gone, people will start buying again, and it will be easier to have a catalog—or direct marketing program—in place rather than to start over from scratch.

* “A’s hire A’s. B’s hire C’s.”
—Donald Rumsfeld

Web Sites Related to Today's Edition:

Bloomingdale’s by Mail List
http://datacards.millard.com/market?page=research/datacard&id=72939

“Cross-Channel Attack” by Gordon A. Harrison, Office of the Chief of Military History, Department of the Army, Washington, D.C. 1951
http://www.history.army.mil/books/wwii/7-4/7-4_cont.htm

U.S. Parachutist’s Kit with Crickets
http://www.101airborneww2.com/equipment3.html

All About Mulberries
http://www.usmm.org/normandy.html

PLUTO (Pipe Line Under the Ocean)
http://www.combinedops.com/pluto.htm

Flail Tanks
www.d-daytanks.org.uk/exhibits/crab.html

FUSAG Pas-de-Calais Ruse
http://tinyurl.com/3rz3sp

Tank Skirts
http://news.bbc.co.uk/2/hi/uk_news/2016280.stm

Le Criquet (reproduction of the cricket issued to airborne assault troops)
http://tinyurl.com/4nzhbv
 
13

COMMENTS

Click here to leave a comment...
Comment *
Most Recent Comments:
Paul Matheson - Posted on May 19, 2008
I loved reading about D-Day and WWII, but I have to disagree with your conclusions regarding the Bloomingdale's catalog. Commercial printing costs are high, the return rate on direct mailing is low and hard to track. When customers go online to shop or browse, they can be tracked. The costs to build and maintain a website are less than the costs to produce a catalog and the vendor can instantly track sales, adjust prices, direct the customer to retail location, stop selling items when they are out of stock, correct typos, etc. New technologies are being added to provide a customized experience for each individual, tailored to their tastes - this is not economically feasible for print, but is now relatively easy to do online. The warehousing/shipping infrastructure for a web store is essentially the same as that for a catalog. I am also sad to see classic, historic things like the Bloomingdale's by Mail catalog fall by the wayside, but they are victims of progress, not short-sightedness.
Mick Wrathall - Posted on May 18, 2008
Fascinating - I too have been to Normandy several times, and seen Pegasus Bridge, the much-mortared Pointe du Hoc clifftop fortification, and what remains of the Mulberry Harbours at Arromanches. For more information, read the excellent "Overlord" by Max Hastings. I live in the U.K. and grew up near Winchester (a huge Anglo-American military base both then and now). One poignant memorial of the Special Relationship - a tiny gravestone to 'Hambone Jr', a local dog who, in ration-starved England, went searching for scraps of food at the US base, and was successful in his endeavours. He was also, I would imagine, a source of great affection, comfort and solace for many scared, lonely boys (for that was what they were), thousands of miles away from homes many of them would never see again... Also many thanks to the brave USAF squadrons my father saw flying to and from Shropshire in the U.K. every day. And also to the 'unknown soldier' who gave my grandfather a special oil to help cure my mother (then a baby) of her cradle-cap... Recession? What Recession? It's only the Socialist media who propagate such rubbish. Now if you want a REAL recession, you should have lived in the U.K. in the 1970s. 1) The 3-day week - where electricity times (when it was ON), were published in national newspapers, and we were encouraged to sit near windows and use daylight to 'maximise productivity'! 2) The IMF baled out our basket-case economy, and I remember going to college - and finding there were no desks or chairs, because the budget had run out. 3) A 98% top tax-rate on unearned income. The U.K. head of the fed boasted he would "tax the rich until their pips squeaked".
Spencer Rumsey - Posted on May 16, 2008
Fascinating and useful, a wonderful combination, which is your hallmark, Denny! Many take-aways. I'd like to add that another lesson I learned from reading the history of D-Day is how badly prepared the Allies were for Normandy's hedgerows. They successfully planned the invasion but they had to improvise once they left shore and headed inland. That strikes me as similar to what our Pentagon did in Iraq. We accomplished "the mission," but have badly mishandled everything that has come since.
Francey Smith - Posted on May 16, 2008
Thank you very much for your kind and thoughtful words in your ?Business Common Sense? column today. Unfortunately I can?t take credit for the launch and success of the Bloomingdale?s By Mail catalog, but I will take credit for the direct and database marketing success that I launched for the Bloomingdale?s brick and mortar stores. Credit for the Bloomingdale?s By Mail catalog belongs to Barry Marchessault who ran the By Mail division and Marvin Traub and Gordon Cooke who saw the future for the Bloomingdale?s brand name and put Barry in place to launch the mail order catalog. (Messrs Traub and Cooke also made it possible for me to launch direct and database marketing for the brick and mortar side) The need to distinguish between the by mail and brick and mortar divisions seems faded in today?s world where multi channel marketing is well established. However, in the mid-late 1980?s the mail order and store channels were very, very separate. Many retail executives at that time even thought the channels cannibalized each other! Fortunately the ?cannibalization? concept for most retailers has mostly disappeared and retailers today realize that the customer, who purchases through more than one channel, is a more valuable customer. It?s taken 20+ years to get to the multi channel acceptance we have today. My guess is that the 1889 Bloomingdale?s catalog was produced purely to direct store traffic, unlike early Wards and Sears catalogs that were originally planned to collect a customer?s, order, collect payment and deliver the ordered merchandise via the Post Office. Thank you again for your kind words.
--Francey Smith
Dave - Posted on May 15, 2008
Great article. My dad was with the 101st when they jumped early on the morning of D-Day.

One question. The recession you say is setting in? Generally a recession requires 6 consecutive months of negative economic growth. Even the latest figures don't show that. Growth wasn't stellar, but it wasn't negative. Why is everybody so interested in having a recession?
Jim Robertson - Posted on May 15, 2008
Hi, Denny. I enjoyed reading your Top Eight list, but I have to take umbrage with it. I respectfully suggest that your list is a bit Anglo-American centric and falls into the trap that most of us Americans fall into: ignoring the fact that for all intents and purposes, it was the Soviet Union who won WWII. 4,000,000 of the 5,500,000 of German solders who lost their lives, lost them on the Eastern Front. And an additional 3,300,000 were captured to become POWs. I am by no means diminshing the bravery and valor of those who suffered through the blitz and left the safe shores of England that June evening to start what became a bitter, bitter fight that lasted until May of the following year. I am merely pointing out that the first item on any list of reasons for Germany's defeat must begin with the [gasp] nearly 11,000,000 Soviet soldiers who died in WWII. That is more than 26x the number of US soldiers who died during the war (the majority of whom died in the Pacific). We deserve to be proud of what our "Greatest Generation" accomplished those four years. We just have to tip our cap to the East first.
asher b abelow - Posted on May 15, 2008
I didn't land on Omaha Beach until Nov.3(my 21st birthday)1944. Your descriptions of some of whatwent on there are fascinating and most informative. Thanks !
Kelley - Posted on May 15, 2008
Wow! I read Denny's articles as soon as my email "dings." This one really struck me. I read it over three times and each time had a new "take-away."

I'm not sure if I am just having one of those days when I'm feeling like I'm being shot at. Or if seeing how out-of-the-box thinking can garner rewards of incredible proportions if people are given the opportunity to do so.

Either way - great article that I plan on sharing. Thanks Denny!
Tom Cannon - Posted on May 15, 2008
Denny,
As an old Army guy I appreciated your emphasis on logistics. We had a saying in the Army that went thus: "Amateurs discuss tactics, professionals discuss logistics." Finally, unless you were being ironic, I don't think Don Rumsfeld is the best resource on ANYTHING having to do with organizations or management!
Regards,
Tom Cannon
LTC, US Army (Retired)
Bart Farris - Posted on May 15, 2008
Nice Job, Denny. You are correct about the DC3 - invaluable in WWII. My father, a WWII vet, often said that only when the world comes to an end, will the DC3 finally be grounded. Many still fly today all over the world.
Jeff Adams - Posted on May 15, 2008
Hi Denny,
Thanks for your interesting story about D-Day. I just happen to be reading an excellent article on the tanks that landed on Omaha beach in the June/July issue of World War II magazine. If you would like more information about this event the article is worthwhile...

jeff
David Leibowitz - Posted on May 15, 2008
Denny: For many years I worked in the Bloomingdale"s marketing department, and for a short time, had the pleasure of working with Francey Smith. Bloomingdale's had an interesting business model and simultaneously produced store sales driven catalogs and By Mail catalogs. My understanding of the recent announcement is that they are discontinuing the By Mail catalogs but will continue with the store catalogs, which, at this point, probably numbers over 50 titles per year. I have no doubt they are responding to the fact that their dot com business was growing at a far greater pace than their By Mail business, and that postal and paper price increases were beginning to eat into profits, with seemingly no end in sight. David Leibowitz
Bob Scott - Posted on May 15, 2008
Denny: Nice job of exploring the logistics of the invasion. The only change I would suggest is your reference to Ulm as a "town." Ulm in 1944, and even in the Middle Ages, was a city in every sense of the word. Albert Einstein was born in Ulm and lived there till his teens. It has a huge church (Lutheran) with the tallest spire in the world. Bob Scott
Click here to view archived comments...
Archived Comments:
Paul Matheson - Posted on May 19, 2008
I loved reading about D-Day and WWII, but I have to disagree with your conclusions regarding the Bloomingdale's catalog. Commercial printing costs are high, the return rate on direct mailing is low and hard to track. When customers go online to shop or browse, they can be tracked. The costs to build and maintain a website are less than the costs to produce a catalog and the vendor can instantly track sales, adjust prices, direct the customer to retail location, stop selling items when they are out of stock, correct typos, etc. New technologies are being added to provide a customized experience for each individual, tailored to their tastes - this is not economically feasible for print, but is now relatively easy to do online. The warehousing/shipping infrastructure for a web store is essentially the same as that for a catalog. I am also sad to see classic, historic things like the Bloomingdale's by Mail catalog fall by the wayside, but they are victims of progress, not short-sightedness.
Mick Wrathall - Posted on May 18, 2008
Fascinating - I too have been to Normandy several times, and seen Pegasus Bridge, the much-mortared Pointe du Hoc clifftop fortification, and what remains of the Mulberry Harbours at Arromanches. For more information, read the excellent "Overlord" by Max Hastings. I live in the U.K. and grew up near Winchester (a huge Anglo-American military base both then and now). One poignant memorial of the Special Relationship - a tiny gravestone to 'Hambone Jr', a local dog who, in ration-starved England, went searching for scraps of food at the US base, and was successful in his endeavours. He was also, I would imagine, a source of great affection, comfort and solace for many scared, lonely boys (for that was what they were), thousands of miles away from homes many of them would never see again... Also many thanks to the brave USAF squadrons my father saw flying to and from Shropshire in the U.K. every day. And also to the 'unknown soldier' who gave my grandfather a special oil to help cure my mother (then a baby) of her cradle-cap... Recession? What Recession? It's only the Socialist media who propagate such rubbish. Now if you want a REAL recession, you should have lived in the U.K. in the 1970s. 1) The 3-day week - where electricity times (when it was ON), were published in national newspapers, and we were encouraged to sit near windows and use daylight to 'maximise productivity'! 2) The IMF baled out our basket-case economy, and I remember going to college - and finding there were no desks or chairs, because the budget had run out. 3) A 98% top tax-rate on unearned income. The U.K. head of the fed boasted he would "tax the rich until their pips squeaked".
Spencer Rumsey - Posted on May 16, 2008
Fascinating and useful, a wonderful combination, which is your hallmark, Denny! Many take-aways. I'd like to add that another lesson I learned from reading the history of D-Day is how badly prepared the Allies were for Normandy's hedgerows. They successfully planned the invasion but they had to improvise once they left shore and headed inland. That strikes me as similar to what our Pentagon did in Iraq. We accomplished "the mission," but have badly mishandled everything that has come since.
Francey Smith - Posted on May 16, 2008
Thank you very much for your kind and thoughtful words in your ?Business Common Sense? column today. Unfortunately I can?t take credit for the launch and success of the Bloomingdale?s By Mail catalog, but I will take credit for the direct and database marketing success that I launched for the Bloomingdale?s brick and mortar stores. Credit for the Bloomingdale?s By Mail catalog belongs to Barry Marchessault who ran the By Mail division and Marvin Traub and Gordon Cooke who saw the future for the Bloomingdale?s brand name and put Barry in place to launch the mail order catalog. (Messrs Traub and Cooke also made it possible for me to launch direct and database marketing for the brick and mortar side) The need to distinguish between the by mail and brick and mortar divisions seems faded in today?s world where multi channel marketing is well established. However, in the mid-late 1980?s the mail order and store channels were very, very separate. Many retail executives at that time even thought the channels cannibalized each other! Fortunately the ?cannibalization? concept for most retailers has mostly disappeared and retailers today realize that the customer, who purchases through more than one channel, is a more valuable customer. It?s taken 20+ years to get to the multi channel acceptance we have today. My guess is that the 1889 Bloomingdale?s catalog was produced purely to direct store traffic, unlike early Wards and Sears catalogs that were originally planned to collect a customer?s, order, collect payment and deliver the ordered merchandise via the Post Office. Thank you again for your kind words.
--Francey Smith
Dave - Posted on May 15, 2008
Great article. My dad was with the 101st when they jumped early on the morning of D-Day.

One question. The recession you say is setting in? Generally a recession requires 6 consecutive months of negative economic growth. Even the latest figures don't show that. Growth wasn't stellar, but it wasn't negative. Why is everybody so interested in having a recession?
Jim Robertson - Posted on May 15, 2008
Hi, Denny. I enjoyed reading your Top Eight list, but I have to take umbrage with it. I respectfully suggest that your list is a bit Anglo-American centric and falls into the trap that most of us Americans fall into: ignoring the fact that for all intents and purposes, it was the Soviet Union who won WWII. 4,000,000 of the 5,500,000 of German solders who lost their lives, lost them on the Eastern Front. And an additional 3,300,000 were captured to become POWs. I am by no means diminshing the bravery and valor of those who suffered through the blitz and left the safe shores of England that June evening to start what became a bitter, bitter fight that lasted until May of the following year. I am merely pointing out that the first item on any list of reasons for Germany's defeat must begin with the [gasp] nearly 11,000,000 Soviet soldiers who died in WWII. That is more than 26x the number of US soldiers who died during the war (the majority of whom died in the Pacific). We deserve to be proud of what our "Greatest Generation" accomplished those four years. We just have to tip our cap to the East first.
asher b abelow - Posted on May 15, 2008
I didn't land on Omaha Beach until Nov.3(my 21st birthday)1944. Your descriptions of some of whatwent on there are fascinating and most informative. Thanks !
Kelley - Posted on May 15, 2008
Wow! I read Denny's articles as soon as my email "dings." This one really struck me. I read it over three times and each time had a new "take-away."

I'm not sure if I am just having one of those days when I'm feeling like I'm being shot at. Or if seeing how out-of-the-box thinking can garner rewards of incredible proportions if people are given the opportunity to do so.

Either way - great article that I plan on sharing. Thanks Denny!
Tom Cannon - Posted on May 15, 2008
Denny,
As an old Army guy I appreciated your emphasis on logistics. We had a saying in the Army that went thus: "Amateurs discuss tactics, professionals discuss logistics." Finally, unless you were being ironic, I don't think Don Rumsfeld is the best resource on ANYTHING having to do with organizations or management!
Regards,
Tom Cannon
LTC, US Army (Retired)
Bart Farris - Posted on May 15, 2008
Nice Job, Denny. You are correct about the DC3 - invaluable in WWII. My father, a WWII vet, often said that only when the world comes to an end, will the DC3 finally be grounded. Many still fly today all over the world.
Jeff Adams - Posted on May 15, 2008
Hi Denny,
Thanks for your interesting story about D-Day. I just happen to be reading an excellent article on the tanks that landed on Omaha beach in the June/July issue of World War II magazine. If you would like more information about this event the article is worthwhile...

jeff
David Leibowitz - Posted on May 15, 2008
Denny: For many years I worked in the Bloomingdale"s marketing department, and for a short time, had the pleasure of working with Francey Smith. Bloomingdale's had an interesting business model and simultaneously produced store sales driven catalogs and By Mail catalogs. My understanding of the recent announcement is that they are discontinuing the By Mail catalogs but will continue with the store catalogs, which, at this point, probably numbers over 50 titles per year. I have no doubt they are responding to the fact that their dot com business was growing at a far greater pace than their By Mail business, and that postal and paper price increases were beginning to eat into profits, with seemingly no end in sight. David Leibowitz
Bob Scott - Posted on May 15, 2008
Denny: Nice job of exploring the logistics of the invasion. The only change I would suggest is your reference to Ulm as a "town." Ulm in 1944, and even in the Middle Ages, was a city in every sense of the word. Albert Einstein was born in Ulm and lived there till his teens. It has a huge church (Lutheran) with the tallest spire in the world. Bob Scott