Outlet Malls. Just the mention of those two words and thrifty shoppers everywhere get an unexplainable buzz of excitement. People love deals. In fact, while most brick-and-mortar shops have begun to slow down new building projects – especially shopping malls – outlet malls continue to thrive and expand. But what constitutes an outlet mall? Are the shoppers actually getting the wonderful deals they are promised, or are they simply buying blindly because of a big red 80% OFF sign that hangs in the window?

Outlet malls began cropping up about a century ago, and originally, they were open only for factory employees who bought the excess or damaged goods. As the middle class demand for brand names grew so did the outlet mall, and by the 90’s they were booming. Outlet malls are usually built out of the way. At first this was because brands did not allow them to sell near their actual non-discounted stores. Radius restrictions have now been lifted, but keeping a good distance is still the best option. This is because shoppers have to travel longer to get to the outlet malls, so when they finally arrive they are likely to spend more money. It is a destination. Sound familiar?

But did you know that many of the outlet retailers have actually developed different items for their outlet lines than for their non-discounted lines? Most of the items are not excess or damaged, but cheaply made to be cheaply sold. That store that is famous for it’s high quality wool might actually be selling you cotton or synthetic material without you even knowing it. Small appliances may have been modified to remove some of the bells and whistles that they are advertised with. Even the buttonholes are usually deceiving – they are less reinforced than their non-discounted clothing counterparts.

Perhaps one of the most deceptive practices of outlet malls is the reference prices that attack shoppers’ eyes everywhere they look. When the shopper believes that the product “WAS $199.99, NOW $50.00” they are much more likely to buy said product, because they believe they are saving over $100 dollars. Inflated reference prices are very common, and they are usually a ridiculous price that the cheaply made clothes would never sell for.

Do you feel a little betrayed? I do. Of course, I had my sneaking suspicions that outlet malls were just a little too good to be true, but I can no longer suspend my disbelief. If, however, you go into the outlet shopping experience remembering that those reference prices most likely aren’t true, and the clothes aren’t the same quality as the original brand they are advertising, you can probably still find a pretty good deal.

The Mother of all Retailers

Coincidentally, the week that we are studying distribution, I am visiting what is possibly the largest distribution center in our nation – the Mall of America. It exemplifies one of the main ideals Americans have: making things bigger than they need to be. But I’m not complaining. The Mall of America has everything I could possibly need in just 3,779,242 million feet of retail space! There are even some repeated stores, which only add to the confused shopping frenzy of consumers flitting from store to store.

Some Facts about the Mall of America:

•        There are over 520 stores in the Mall of America
•        There are over 50 restaurants in the Mall of America
•        The Mall of America is one of the most visited tourist destinations in the world, with over twice the amount of visitors than Disney World’s Magic Kingdom.
•        There are 4.3 miles of storefront footage in the Mall of America
•        7 Yankee Stadiums can fit in the Mall of America

While I was visiting the Mall of America, I noticed construction on one side. As it turns out, they are expanding. In fact, they have plans to double their size in the next 10 years! But why, when online shopping is becoming more and more prevalent and brick-and-mortar shops are not? It is because, while many brick-and-mortar stores are just an everyday stop on a list of errands, the Mall of America is not. It is a destination for everyone, from the local to the foreigner trying to see real America culture.

Perhaps, other brick-and-mortar retailers will see this mall flourishing and take a cue from it. Maybe, in the future, all shopping that is not done online will be less a chore and more of an experience.

Guerrilla Tactics

There are so many different -- and exciting-- communication channels out there. That's what I love about marketing! There is never a lack of creativity, whether that creativity is in social media, television, or magazine ads, and whatever those ads are trying to convey! I think that one of the most exciting way to advertise for both the consumer and the advertiser is Guerrilla marketing. This is a term coined by Jay Conrad Levinson in 1984, and it describes a type of marketing that is low-cost and unconventional. Guerrilla marketing is highly creative, and grabs the attention of consumers everywhere. It pops up when and where they least expect it. While it is perfect for small businesses, it is so successful (and has such a large ROI) that it has come to be used by many large name brands as well. Here are a few examples:

It can be something as small as this...

Or as large as this...

With anything in between...

Coca-Cola (who I happen to think is an advertising genius) does a great job of guerrilla marketing as well. They strategically place Coke machines in cities all over the world that, while they look like regular Coke machines, create the happiness that their slogan encourages so strongly. Some dispense flowers and cakes and balloons, while others only require a hug before consumers receive their selection. One machine is twice the height of a regular machine, and requires two people (one to lift and another to push a button) to operate it. 

While different brands go with different approaches, they all have one thing in common -- emotion. Whether that emotion is shock, like the nationwide paint can example, irony, like the Fedex truck carrying two UPS vehicles, or the warm, mushy feelings that the coke marketing approach inspires, the all leave passerby with an emotion. Most of us appreciate that emotion, and remember it the next time we see those brands and corporations in their more typical settings. This emotion is what keeps people coming back time after time, and what makes Guerrilla marketing so successful.

Coca Cola's Compatibility

Today, Coca-Cola is one of the most recognized brands in the world. From small one-stoplight town gas stations, to Tokyo food courts, the red and white label with the famous Coca-Cola script can't be avoided. But Coca-Cola didn't get that way overnight, and one of the main reasons that I believe it is so widely recognized is it's brand compatibility.

By brand compatibility, I mean the brand's ability to change, to be "compatible" with the different tastes that occur all over the world. Because, lets face it, most of us don't have the same taste in drinks as people from China or Peru.

As I began to think about brand compatibility, I remembered a small display that I saw while in Disney World a few years ago. There, Coca-Cola has an exhibit that allows park-goers to try a variety of different flavors they produce across the world. At this exhibit, 8 different flavors are offered, including "Inca Kola" from Peru, "Beverly" from Italy, and "Fanta Pineapple" from Greece.

Probably the most famous of the flavors offered at this exhibit is "Beverly," which is described as "very bitter." I researched this drink a little more, and it is very obvious that Americans do not appreciate it. (I can attest to this from personal experience.)

What I do appreciate, however, is the fact that Coca-Cola is willing to produce such different flavors for such different tastes. Not only does this show it's compatibility, but it also shows the customer oriented aspect of Coca-Cola. They take into consideration the customer and what the customer wants.

After further research into the flavors of Coca-Cola, I discovered that there are actually over 120 different flavors around the world! The flavors in the United States only makes up a small portion of these. I think that makes Coca-Cola a great example of compatibility techniques -- ones that are clearly working for them.