DECEMBER 2018 | VOLUME 1- ISSUE 11
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MEET TEANECK'S LEGENDARY ELIE KATZ, CEO OF NATIONAL RETAIL SOLUTIONS EMOTIONS RUNNING HIGH ON AMAZON HQ2
LIEUTENANT COLONEL TRANSFORMS
ARMY CAREER INTO UPLIFTING BUSINESS MARAT MAAYAN BREATHES FRESH AIR INTO OLD PROBLEMS
INVESTING IN THE FUTURE OF OPPORTUNITY ZONES THEME SECTION: PROTOTYPES AND PRODUCTION. GET YOUR PRODUCTS ONTO THE MARKET. PERSONAL FINANCES: ARE ROBO-ADVISORS WORTH THEIR WEIGHT? VISIONS FROM THE C-SUITE WITH BRUCE KATZ, ROCKPORT’S CO-FOUNDER. CASH IN ON THE HOLIDAY FEVER
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NEW COLUMN: BOOKMARKED • NEW COLUMN: MARKETING MUSINGS WITH ABRAHAM BREE • IN BIZTANK: FLYING HIGH WITH UPPERIDE
Marketing Musings ABRAHAM BREE
Wake Up and Sell the Coffee:
Does Rebranding Always Pay? A legendary retail coffee chain attempts to perk up its brand. But many wonder if the new marketing brew is more likely to get roasted.
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affeine fanatics across the globe were rudely jolted awake by disturbing rumors: The iconic Dunkin’ Donuts retail chain is formally changing its title to a minimalist-themed, millennial-friendly, modern-toned moniker: Dunkin’. That’s right. Dunkin’. The multimillion-dollar name change, officially being implemented after months of exhaustive brand research and following a meticulous, forensic marketplace analysis, involves dropping the second word from the storied store name. “Our new branding is one of many things we are doing as part of our blueprint for growth to modernize the Dunkin’ experience for our customers,” Dunkin’ Brands’ CEO David Hoffmann said in a statement. “We believe our efforts to
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transform Dunkin’, while still embracing our incredible heritage, will keep our brand relevant for generations to come.” The new branding will appear on packaging, advertising, Dunkin’s website, and social media channels beginning January 1, according to the company. Stores will also feature new signage, while a few select locations utilizing Dunkin’s new design format have already tested the new name over the past year, as the company embraces this new brand platform. Sigh. Instead of being regarded as a timeless American institution of gooey-custard-donuty goodness and cozy-coffee-cup charm, Dunkin’ will now exude the same generic hipness exhibited by countless we-are-oh-so-trendy-pleasebuy-your-coffee-here retail clones that have sprouted up in countless shopping malls, rest stops, and gas stations.
This legendary institution of bluecollared caffeinated goodness is losing its homey, likeable luster and becoming yet another myopic brand — the latest corporate casualty to jump on the wannabecopycat-lookalike bandwagon of hipsterization and millennialism.
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Pitching Your Product Doing your due diligence to understand your market, customers, and competitors will help greatly once you’re ready to approach investors. A good rule of thumb when pitching to venture capitalists and business angels is to be confident and get to the point quickly. Be prepared to concisely explain your idea and why it’s a viable opportunity for the investor. Optics are important too. Investors cannot always vet early-stage product ideas as rigorously as they’d like. To that end, they have to bet on the people — which is why confidence and making a positive impression can spark a financing deal.
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PRODUCT DEVELOPMENT
companies, producing locally may be critical for their brand and image. There’s no right or wrong answer — Ari says that it all depends on the product. “Sometimes it’s better to get the machinery you need and make the product locally. For example, a clothing line can be made cheaper in the US if it’s not produced in large quantity.”
Packaging Your Product
An important feature that’s often overlooked by inventors is packaging. Even for the most innovative, high-quality product, you’ll face difficulties launching it in the marketplace if the packaging looks cheap and unoriginal. “Don’t cut corners to save money on packaging,” says Karina. “Jared and I made that mistake and because of it, we had to start over several times with new designers and ended up losing a lot of money.” She adds that it’s critical to test your packaging with real potential customers before approaching retailers. Once your product hits the shelf, it’ll sit next to numerous competing or similar products. Without professional-looking packaging that makes your product stand out, it can easily be overlooked by customers or even dismissed by the retailer. “Your packaging has to present the product as a masterpiece,” Karina says. “The money you spend on quality design and packaging will help your business in the long run.”
Entering the Market
There are several ways to enter the marketplace. You can sell your product online through your own website or trusted e-commerce sites, such as eBay, Amazon, or Bonanza — or offline through your own mom-and-pop store or established retailers. Starting online is an accessible low-risk option that does not require any significant investments, large inventories, or capacity to fill large purchase orders on short notice. However, once you’re ready to move your product in larger quantities, getting it on the shelves of retailers is a great way to bolster your sales volume and profits. To break into the world of retail, you need to connect with buyers and convince them to start carrying your product. This process is similar to approaching investors — the key to success is to be brief, concise, and able to explain in a few words why selling your product would be profitable for your potential retail partner. Also, much like the process of landing an investment deal, navigating the road from pitching to receiving a signed purchase order can be quite the challenge. “You have to hustle,” says Karina. “Email people, call
them, and attend trade shows to get the word out about your product and to get in front of retailers.” Karina and Jared got started in the retail space by exhibiting Hang-O-Matic at two large trade shows for housewares and home goods. She notes that trade shows are excellent opportunities for meeting buyers, handing out samples, and increasing exposure for your business. Working the floor and drumming up attention for your product requires a lot of stamina and an outgoing personality. “If you’re shy, don’t go to a trade show!” Karina says, explaining that it’s key to take initiative, invite people to your booth, and have business cards and samples ready to hand out to your visitors — or else you and your product might just get lost in the shuffle of the show. Following up with your leads is just as important. Make sure you have several ways to capture your prospects’ contact information, including a business card drop and sign-in sheets or a lead generation app. Then, reconnect as soon as possible after the trade show to offer samples or any information the buyer requested. This is when you can discuss a quote, and — if possible — close the deal!
Building Buzz for Your Brand
Whether you choose to sell your product online or offline, your work is far from done after you’ve received your first order. Driving sales by creating buzz and visibility for your brand is an ongoing effort. Fortunately, building an effective marketing strategy for your product does not require a big budget. With nearly 70% of Americans of all ages using social media on a regular basis, social networking platforms provide a cheap and easy way to reach a broad audience and build brand awareness. By using platforms such as Facebook, LinkedIn, Twitter, Instagram, Pinterest, and Snapchat, and creating targeted content for each of them, you have a powerful set of tools at hand to engage with your customers, gather market data, and connect with new audiences. Bringing an idea to life is not simple. Yet, the process can be incredibly rewarding for those who thrive on uncertainty and the excitement of creating something new and unique. Your product could end up on the shelves of big-box stores or, once we get there, in households on Mars. Much like the imagination of the entrepreneur, opportunities abound. David Marion writes for top US and international organizations. His clients comprise a virtual Who's Who of world business leaders, such as Columbia Business School, Deloitte, IBM, Quest Diagnostics, the United Nations, and more. B-TANK | KISLEV 5779 | 61
Vision from the C-Suite
Yitzchok Saftlas
on
Strategic business advice and insights from C-level executives, who appeared on a 77WABC’s Mind Your Business with Yitzchok Saftlas
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ruce Katz was born into a shoemaking dynasty. His grandfather, Samuel Katz, founded the Hubbard Shoe Company back in 1930 and spent his life in the industry, as did Bruce’s father, Saul Katz. In 1973, the shoemaking industry largely shifted overseas to cheaper labor markets, and Hubbard Shoe Company closed its doors. Bruce and his father instead founded The Rockport Company — a leading player in footwear today. Bruce also pioneered the first large-scale online community as a discussion group for many prominent newspapers and magazines. He’s also heavily involved in Rosewood Stone, an internet-related investing platform. In 2014, Bruce returned to his shoemaking roots to establish Samuel Hubbard shoes. He’s been recognized as an “icon of the footwear industry” and is the first person to engineer athletic-shoe comfort into non-athletic shoes.
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Bruce, tell us about yourself. As the founder and CEO of Samuel Hubbard Shoe Company, what can you tell us about your journey in the shoemaking industry?
Shoemaking is in the Katz family blood. My grandfather was in the industry and my father and I founded The Rockport Company together. I took a hiatus from the industry for nearly 30 years, but my daughter, eight years old at the time, encouraged me to get back into the shoe business. I had no idea she even knew about the family business! Everyone knows the saying “beauty is pain.” How is Samuel Hubbard Shoe Company redefining beauty and comfort?
The idea is to create a shoe that features athletic shoe comfort but is appropriate for a business setting. To me, the gold standard in ultimate comfort is when I forget I’m wearing shoes. Nothing makes me happier than hearing customers tell me they walk around their houses in their Hubbards — because they’re more comfortable than their slippers. Mission accomplished!
The Un-Sneaker is a trademark of your brand. How has this one innovative idea grown your business to be one of the tops in its industry?
The secret of the Un-Sneaker, the dress shoe look with the sneaker feel, lies in its design. At Samuel Hubbard, we work only with top-quality materials and top-quality designers. Ironically, the project was initially supposed to be called the “fast track,” but it took about a year and a half before we rolled it out! Some shoes take two and a half years to design before I’m happy with the product; it’s a long process of trial and error. Can you tell us a little bit about how you grew your business?
I was used to the industry’s high volume that I’d been dealing with at Rockport, so my first order was for 15,000 pairs of shoes! My website first launched in January. Between January and June, I sold 123 pairs, out of my original 15,000, and every time a pair was sold it made office news! I realized that unless I could figure out a way B-TANK | KISLEV 5779 | 91
Teen Mark-It
The Magic Brothers M. C. Millman “Pick a card, any card,” Yaakov suggests, and so the magic begins. Fascinated by magic tricks since a young age, Yaakov, who is nearly bar mitzvah, does not leave home these days without a having a card or two up his sleeve — or more like 10 tricks lining his pockets. Leaving his calling card — by giving a spur-of-the-moment ad-hoc magic show — has earned Yaakov the well-deserved reputation of an incredible magician. Yehuda, who is three years his brother Yaakov’s junior, as well as his personal assistant, comprises the team that is the Spectacular Schlachters, a magician and entertainer group. The pair performs at a wide range of children’s events, with Yaakov presenting a selection of magic tricks and Yehuda providing most of the jokes, as the pair banter with the audience for an enthralling magic show that consists of card tricks, sleight of hand, hat tricks, and handcuff escape artist presentations. “The show is a lot more organized since Yehuda joined,” 152 | B-TANK | DECEMBER 2018
says Yaakov. “He’s the funny guy, but he also helps the act because now it takes half the time it used to when I was on my own and trying to get organized between tricks. Yehuda is a complete organizational master. It really helps when I don’t have to be the one reaching for a prop for the next trick or picking an audience member to participate, and that just makes the whole show go a lot smoother.” Or at least they’re supposed to go smoother. “There was the time I was doing a trick that I’d invented,” Yaakov recalls. “For the trick, I put a fish in a cup, and then it transports from one cup to another. Yehuda and I were about to move on to a new trick when we noticed the poor goldfish squashed on the floor. It seems it had jumped out of the tank since the cover had not been put back on. We were lucky it was after I’d finished trick.” There were other times Yaakov didn’t feel quite so lucky. There have been times that Yaakov has left supplies at
home and he’s had to improvise, often making up tricks as he went along. “I learned pretty early on,” he says, “that if you mess up, you should just go with it and admit you messed up. That’s what I did one of the first times I messed up during a show on a card trick. I went on and flipped over the next card, and luckily that was the one we were looking for, so it all seemed part of the show and made the trick seem even better.” Recognizing their son’s entrepreneurial spirit, Yaakov’s parents encouraged and supported him right from the start, making business cards, telling friends and neighbors. Now they’re behind both boys 100% of the way. Yaakov performed his first show nearly four years ago — at the age of nine. “When I got my first magic set at age eight, I was very excited. I did card tricks for my friends and designed and printed out my own business cards. Then one day I got a call. ‘Are you able to perform tonight for an