http://www.radioandrecords.com/radiomonitor/news/business/top_news/article_displ ay.jsp?vnu_content_id=1003438238

Or, how radio can take a lesson from Safeway.

It really is a brilliant article. Too bad most of radio management will ignore it.

Well if they did what that article suggests they would have to modify the three corporate mandates:

1.) Make money
2.) Make more money
3.) Automate & cut expenses and make even more money

To:

1.) Research target audience
2.) Provide what listeners want and get the best ratings
3.) Sell spots at premium price for top of scale rated station

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Fix The Product First: A Lesson For Radio From The Supermarket Industry
Nov. 22, 2006
By Daniel Anstandig


Competition in the supermarket industry has never been greater. Grocers face new retailers who are attempting to gain their share of the food market. The number of visitors to any grocery store—let’s call it “cume”—and the amount of time an average customer spends in the store—let’s call that “time spent shopping”—is declining. Caught in the whirlwind of a changing marketplace, Safeway stores started losing money. After more than 80 years of selling food at low prices, Safeway reported its first annual loss in 2002. Declining numbers of shoppers at the chain’s stores prompted the company’s executives to re-evaluate their product and positioning. Market research confirmed that Safeway was in need of a new marketing campaign. The grocer needed to build cume again.
Safeway management knew that consumers would be shrewd about hollow claims and superficial marketing that could not be substantiated with evidence of real change in the stores. A new, flashy campaign and redesigned window dressing would not be enough to win over today’s skeptical 25- to 44-year-old customers.
The company needed a new image, so it started by carefully revamping the product: its stores.
Safeway didn’t medicate its declining cume problem with a glitzy marketing initiative. Instead, it first invested in its stores in a way that would make customers’ remarkable end-user experience worthy of word-of-mouth advertising.
The company launched the largest remodeling effort an American supermarket chain has ever undertaken. It has spent in excess of $3 billion in the last three years and committed to spending another $3 billion in the next three to remodel all 1,775 of its stores. Morphing the anachronistic convenience outlets into new “lifestyle stores” has included adding full-service deli counters, organic produce sections and expanded wine and floral sections.
Only after revamping its product did Safeway start its marketing push. Combining its brand surgery with a well-focused $100 million ad campaign to tell the story of its new position, the company is seeing lucrative returns in markets where renovations are complete.
Wall Street called Safeway crazy—but customers like the change. Sales have advanced for the company this year by 5%, according to MarketWatch. Google Finance reported that Safeway’s share price is up by 30% since the beginning of the year.
So what does all this mean for radio? There are several points that should be heeded from the case study of Safeway’s brand rejuvenation.

Study Your Customers
Get to know your audience’s core desires. When people tune in to your radio station, it’s because they have decided that listening to your station would be more gratifying and pleasurable than not listening.
What is it that your audience wants deeply? Here are a few possible answers: a feeling of connection and influence, and to be seen as generous, classy, loving and smart.
How does your programming offer validation for these deep desires?
Assuming that your listener has a deep desire to be seen as loving, do you have programming that validates that vision of themselves? Do you have a show dedicated to love songs? Do you invite listeners to contribute to the community in a way that validates their sense of being loving or generous?
Help listeners get the experience they want, and you will get the ratings you want.
Safeway’s marketing tells the story of a company that had humble Idaho beginnings, but always retained a vision to serve people with quality, wholesome foods and a welcoming atmosphere—note the mention of two deep desires of its customers. Marketers connected the passion of the founders’ desire to serve and the evolution of the stores.
What is your radio station’s story? Why do you do what you do? Look at the history of your station. What is it that brought you to the dance? Tell listeners about the people at your radio station and why they come to work every day.
People are more cynical than ever. They sniff out brand facades and superficial claims quickly.
Take a lesson from Safeway, which upgraded the product selection and store atmosphere first. The end-user experience changed long before the new marketing campaign. The company started inside-out rather than outside-in, knowing that savvy customers would see through overhyped claims.

Daniel Anstandig is McVay Media VP of adult formats

Bravo young Daniel who was once roasted on AA after a ten questions with interview.......

However remember too that you as a consultant are in a position to affect that change! Many Mcvay consulted stations are tight and bright more music linecard outlets.....

Change what you can, then see if the idea spreads...

There are more similies between the radio and the grocery business...

the grocery business has evolved from a food sales business into the shelf space business where mass producers of food products compete with each other for best placement and quantity of aisle space... I

In the instance of Radio the record companies are the mass producers of generic music product and compete with each other for placement on stations playlists. Less emphasis on the actual product and more on the placement in both businesses.

In the grocery business the shelf space is literally for sale to the highest bidder. This makes it nearly impossible for a smaller high quality producer to get shelf space in a store such as Safeway since they cannot pay the same price for prime space as Frito Lay or Anheiser Busch.

Eventually the unique local products get squeezed out because they can not compete with the big players.

Soon the products on the shelves at all major grocery outlets are exactly the same everywhere in a market. The only differece between Albertsons and Safeway is the decor and branding.

At this point Safeway and Albertsons (insert your favorite chain store here) have only marketing and gimicks to keep customers loyal.

Sound familiar?

Here are the differences I notice between Safeway and Winco.

Safeway: (union)
1. darkened the store with imitation wood foor
2. more spot lights to highlight stuff since they darkened the store.
3. more organic everything
4. clerks with a cheezy grin that always proclaim out loud "thank you mr charles, you saved 79 cents today." My response is a resounding loud "Wow thats incredible" while really thinking to myself I wish they wouldn't even mention my name. Do they ever think about a persons privacy?
5. little audomobile parking room
6. good pharmacy
7. relative HIGH prices (excluding some sale items)

Winco: (non-union)
1. Bright lights
2. Huge parking lot
3. smelly people
4. you bag your own
5. overall LOW prices

While I know nothing about the industry I would guess the Wincos are taking a bigger chunk out of the Safeway/Albertsons every year.

Another comparison between radio and grocery stores..................

The music mix is usually better in the grocery store

:-D

Isn't CC, and to a lesser degree the other cluster stations, already doing kind of a Winco thing.

I shop at both Winco and Safeway. At Winco you have to ignore the filth and the fresh foods (meat, produce, etc.) and stick to the pre-packaged food. But for a buck to a buck and a half off many items, it's worth it.

Safeway is where I go to get meats, fruits, vegetables and dairy. Sure, you save on these things too at Winco but the quality is crap. For instance milk purchased at Winco lasts about three days before it goes bad. I got some cucumbers at Winco that totally lacked any flavor.

So, maybe the idea is to take the best of both, roll them together and come out with something good.

The Safeway story will not play on radio. This is because the execs in the radio industry don't have time to create a product and fine tune it. For broacsters its a matter of immediate gratification. They want the money now. They don't have time to spend 3-years perfecting a product. The future is now and the bottom line is reviewed every 3-months.
Can you establish a new quality-proven product in 90-days?

Safeway (or Dominicks, the Safeway name in Chicago), has my card #, but unfortunately, my legal name is spelled incorrectly. I get a chuckle everytime they say thankyou "Mr."..and then completely mispronounce my name. For awhile I tried to correct it, but was met with a polite smile. I don't think they care. It is about branding and making sure you realize you are saving money, and continue to use that card to continue to save!
Hate to say it, but it works!

My card name is under one of my dog's names...I sign them up for stuff occasionally, they love to get mail addressed to them!

Ever get a Visa application in your Dog's name??????

Ok, so they don't have time to develop a product...

(Which is BS, but let's go with it.)

Others can. Problem is interest. If it's known that this is off the table, it just won't happen...

...... "don't have time to create a product and fine tune it."

They have the time, but not the desire!

Taking that Safeway analogy to the radio business is pretty much the equivelant of a new jingle package and maybe making a live night shift out of a VT'd one.

They changed the logo, the lights, and added some organic produce.

Otherwise it is still Safeway. Same Cheetos, Same Budweiser, Same everything. just some modern window dressing

Radio will have to do better than that to get a 30% increase in cume.

I would just like to say that our old general manager worked AT a safeway before he got into radio. I guess you could say he had experience in the Market! OH!! *RIMSHOT*

Thanx folks im here all week.

I agree though... There needs to be something major done with alot of radio groups, in terms of a shift of focus. More emphasis on the listener, creating smart and entertaining product. AND KEEPING THINGS MORE LIVE AND LOCAL.

Even if you are managed by clear channel, there is alot an individual station can do to feel like a local home grown radio station, and not just part of a giant corp. Monster.

EX. Live jocks... Answering your phones... NOT RUNNING NATION WIDE CONTESTS THAT PEOPLE FROM YOUR AREA ARENT GONNA WIN.

Just a few pointers.

The problem is Sean- Clear Channel could care less about the overall product AND THE LISTNERS! As long as every single penny is saved, THATS ALL THAT MATTERS! With Cheap Channel getting bought out, hopefully things will change for the better, they couldn't get any worse as they are currently! Nothing sounds local on a Clear Channel station.

Wal-Mart is becoming (has become) a major player in groceries.

Winco once had a savings program, but too many customers complained they had to make their own card.

Mayo...

You obviously aren't familiar with LBOs. The nature of leveraged buy-outs is to save even more money. With Cheap Channel in LBO mode the liklihood is even more cuts. That means more group PDs, more VTing, maybe even network shows replacing local or VTed.

I still forsee CC Coast to coast!

Now from our studios in Los Angeles, Here's Biff Bixley and the Morning Zoo On Clear Channel Country

Wake up with Whoopi and Todays hits Coast to coast presented by Clear Channel.......

Leave live and local to the other guys, we do it nationwide! Be the 100th caller at 1-877 No1-WINS


If your profitible bank was ever bought out by another, how many new faces did you see before you switched banks? Buy 'em up weed 'em out rawhide! Never have I seen people added in a buyout. I kind of lean toward more VTs and syndicated programming. Surely more stations can carry Rollye James, or Bob and Tom, Whoopie or whoever. Maybe The major market afternoon WARM KISSY MIX show in (pick a state) can simulcast or VT to other WARM KISSY MIX stations regionally. Think of the short term cost savings Cutting that 8 billion debt, 1 airshift at a time! Hate to think it, but distinctly possible.

Funny Roger!
"Another comparison between radio and grocery stores..................

The music mix is usually better in the grocery store

:-D"

Totally true! I like going to the store just to hear songs that I don't play or know about. A welcome change!

Hey I just watched the ABBA concert from 1979 on PBS.... You just don't hear ABBA on the radio all that often :-(

Sure you will Roger. Ive heard Abba on Charlie.

but the real question is will I hear live, interesting announcers?

Apparently you will soon hear Dr. Doug and Skippy mornings on Charlie, but they're leaving the interesting part behind.

Regardless, Having live talent on Charlie is a big step in the right direction. Good for them, Im starting to like Charlie more and more. A huge variety of music and live dj's, a novel concept for most stations.

Is that a local live DJ or one from the east coast doing it remotely that recorded it to hard drive last month!!

Charlie Tuna....Or Chuck from Charlie Brown?

FIX THE PRODUCT! how about live and LOCAL talent.

I really hate turning the dial and hearing whatever syndicated morning concoction on 3 or 4 different stations.......

It's like this area where you can tune in 4 simulcasted froggy country stations and 2 other froggy countrys.... 6 frickin froggy stations cluttering up the dial when 1 is more than enough.

so FM here is 6 froggys, 3 Bob and Tom's a couple of Kisses, 2 MIXXes and a gem here and there.....

Just have to wade through the swamp to find anything.

I listen to one of the GEMS in PDX but if the day ever comes and that GEM loses it's luster I will just have to "ZUNE" FM radio out for good!

Just got one and I love it. $219.99 at costco until the 24th $249.99 everywhere else right now. The wide screen for video is really great. But I still enjoy the GEM I listen to and will continue to due so as long as they play what I like to hear! Have quite a few days of commercial-free music and various playlists for different moods!