Watch the Changing Business Environment

This week I was fascinated to find out about Banza, a new pasta created by Brian And Scott Rudolph in 2014.  The pasta is made from chickpeas and has double the protein, four times the fiber, and nearly half the net carbs of traditional pastas.  Brian came up with the idea because he loved pasta and wanted one that offered health benefits so that he could enjoy eating it more.  He had assistance from Venture for America, a program for recent graduates who have goals to revitalize American cities and communities through entrepreneurship.

Starting from scratch in the brothers’ Detroit kitchen that they shared with eight roommates, they perfected the chickpea pasta recipe.  Then they frequented farmers’ markets and offered lots of in-store demonstrations, often jumping out of the aisle to get customers’ attention.  “Have you tried this pasta?” they asked.   

The pasta is a hit.  “It’s been really exciting to see how the product has been resonating with people,” Brian notes.  "Not only have we gone from two to 2,000 stores, but we even have some stores where we’re the number one selling pasta overall, which, if there’s anything that proves our thesis that we can actually change pasta, it’s having that happen.” 

In addition to the brothers’ enthusiasm and persistence, an aspect of this story is important to every business.  The success of Banza chickpea pasta is due to a changing business environment regarding food.  More and more consumers are interested in healthy eating.  They care about what is in their food.  They want to consume foods that are nutritious and tasty.  

McDonalds recently acknowledged this trend by testing a version of McNuggets that do not have artificial preservatives.  The new McNuggets do not have sodium phosphates, used to keep the chicken moist, and will not be fried in oil containing the artificial preservative TBHQ.  The testing began in 140 stores in Oregon and Washington state in March.  The company statement called the recipe “simpler” and one “parents can feel good about.”

If your business sells food, you would be wise to recognize and respond to this changing business environment.  Even if your business does not sell food, the basic message is the same.  Know your customers and what they want.  Stay on top of those wants.  Find out if these wants are changing.  In our fast-paced environment, these changes happen quickly.  If you are not making a point to watch them, these changes can sneak up on you and hurt your business before you realize what is happening. 

This week's marketing trivia challenge is How have your customers’ wants changed?  E-mail me your answer.

Elizabeth K. Fischer
E-sessions help you make your marketing profitable

Is Your Business Next?

Target announced this week that it is teaming up with “thredUP” to buy high-quality, previously-worn clothing.  Target particularly wants fashionable brands such as J. Crew and Calvin Klein.  Here’s how the program works.  Customers pick up a “clean-out bag” from a Target store or order one online from thredUP.  They place the women’s and children’s clothing items that they want to eliminate in the bag.  Then they drop it off at a participating Target store or send it via FedEx or mail.  The shipping is free.  For all the items that are accepted, the customers receive credit in Target gift cards.  The items that are not accepted are recycled by a textile recycler.  The customer does not receive credit for those items nor does she get the items returned to her.  Once she sends the items to thredUp, they are out of her hands.

This program is designed to get customers into the store to use their Target gift card that they received from sending in their worn fashionable items.  It also helps customers clean out their closet easily.  Either an empty closet or a gift card would be incentive to buy new clothes.  Together, they are double encouragement to purchase the clothes at Target. 

One customer confirmed this.  “I buy a lot of clothes at Target, so it would be like an exchange.”   

Target would not attempt this program without the online component.  The Internet is important in several ways.  First, ordering the “clean-out” bag online makes getting it easy.  The customer merely assesses how much she wants to eliminate from her closet, goes online, orders the bag, fills it when it arrives, and sets it on the doorstep for the mail or FedEx person. 

Second, teaming up with thredUP.com enables Target to launch the program with minimal cost and effort.  ThredUP is already in this business with a Web site that instructs the customer and facilitates the process.  It can handle the items that are sent by customers, sort them, and assign a value for the gift card.  It can then send the unacceptable items to a textile recycler and sell the rest.  (Target has not stated that these items will be available in its stores.)

Third, announcing the program online reaches its target market.  These customers are online.  They get their information online.  They expect to find out about a program of this type online, and their interest is piqued by online presentations.  The Internet component is critical to the launch and success of the program. 

The Internet continues to open opportunities for businesses.  Unfortunately for consignment stores, Target’s program jeopardizes their intake of inventory and their customers shopping at their stores for previously-worn fashionable clothing.  Target’s acceptance of these items will reduce their availability.  The gift card from Target will prompt shoppers to spend money at Target that they may have spent at a consignment store.  Suddenly, Target has inserted itself as a direct competitor to consignment stores.  That is shocking to store owners and may have an impact on the stores’ revenues.

This situation is an excellent example of the Internet affecting businesses in ways businesspeople never anticipated.  Do what you can to avoid being caught off guard.  Ask yourself, “Is my business next?  How will the Internet change the environment in which my business operates?”

This week's marketing trivia challenge is How has the Internet changed your business environment?  E-mail your answer.