KATHY DOYLE THOMAS, executive vice president of marketing and ...
KATHY DOYLE THOMAS, executive vice president of marketing and ...
KATHY DOYLE THOMAS, executive vice president of marketing and ...
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20<br />
<strong>marketing</strong>news 09.30.10<br />
A Day With …<br />
<strong>KATHY</strong> <strong>DOYLE</strong> <strong>THOMAS</strong>, <strong>executive</strong> <strong>vice</strong> <strong>president</strong> <strong>of</strong> <strong>marketing</strong> <strong>and</strong><br />
development, Half Price Books, Records, Magazines Inc.<br />
BY PIET LEVY//STAFF WRITER<br />
� plevy@ama.org<br />
The book industry is at a crossroads, as<br />
books as we know them are being<br />
challenged by digital editions for e-readers <strong>and</strong> the<br />
iPad, <strong>and</strong> online book retailers like Amazon remain<br />
strong. Comparable same-store sales for Borders<br />
locations, for example, fell 14.4% from 2008 to<br />
2009. Yet Dallas-based Half Price Books,<br />
Records, Magazines Inc., an old-fashioned used<br />
<strong>and</strong> new books <strong>and</strong> music retail chain that sells<br />
primarily though bricks-<strong>and</strong>-mortar locations,<br />
continues to open new shops. Half Price Books<br />
increased its comparable same-store sales by nearly<br />
4% for fi scal year 2009-2010 <strong>and</strong> garnered $213.3<br />
million for the period from 109 stores in 16 states.
Kathy Doyle Thomas <strong>of</strong> Half Price Books spent her workday going through o� ce documents, perusing the shelves in the fl agship store, <strong>and</strong> engaging in meetings with<br />
Helen Pacione, director <strong>of</strong> real estate <strong>and</strong> development (pictured bottom left), <strong>and</strong> John Wilson, assistant <strong>vice</strong> <strong>president</strong> <strong>of</strong> media <strong>and</strong> PR (bottom right). Photos<br />
courtesy <strong>of</strong> Julius Pickenpack.<br />
As a discount retailer, the store’s very concept is recession-friendly; aside from<br />
rare collectibles, out-<strong>of</strong>-print titles <strong>and</strong> special promotional items, all <strong>of</strong> the<br />
books in store are sold for half the publisher’s price or less, according to the<br />
company. But Half Price Books also has benefi ted from a distinguished br<strong>and</strong> identity<br />
as a community-oriented retailer that donates books to charities <strong>and</strong> promotes causes<br />
such as literacy, recycling <strong>and</strong> First Amendment rights.<br />
On July 23, to get a sense <strong>of</strong> how this distinct business model functions,<br />
Marketing News shadowed Kathy Doyle � omas, <strong>executive</strong> <strong>vice</strong> <strong>president</strong> <strong>of</strong> <strong>marketing</strong><br />
<strong>and</strong> development, at Half Price Books headquarters. � e following are highlights<br />
from the experience.<br />
9:30 a.m.<br />
� e Half Price Books o� ce is a funky cut <strong>of</strong> warehouse chic. Located atop the company’s<br />
� agship store, the receptionist’s desk pays homage to collector culture with an army<br />
<strong>of</strong> knickknacks covering nearly every square inch <strong>of</strong> space. A ladder bolted onto the<br />
wall nearby comes with the label “Corporate Ladder” <strong>and</strong> leads up to a door near the<br />
ceiling, seemingly to nowhere, with a sign that reads “Complaint Department.” Around<br />
the corner is a shrine to late co-founders Ken Gjemre <strong>and</strong> Pat Anderson, mother to<br />
current CEO Sharon Anderson Wright, complete with the store’s very � rst sign. Apparently,<br />
there’s also an o� ce dog, but he has taken the day o� .<br />
Tucked in the back <strong>of</strong> the o� ce is the boardroom; void <strong>of</strong> any trinkets, walls bare,<br />
this appears to be the most businesslike room in the place. � omas, in casual attire,<br />
<strong>and</strong> six members <strong>of</strong> her sta� are gathered here for a weekly meeting regarding public<br />
<strong>and</strong> community relations, promotions <strong>and</strong> customer ser<strong>vice</strong>. To � omas’ le� is John<br />
Wilson, assistant <strong>vice</strong> <strong>president</strong> <strong>of</strong> media <strong>and</strong> public relations, whose voice you may<br />
have heard as Jim Swayze, Half Price Books’ good ol’ boy customer spokesman from<br />
the retailer’s radio campaign.<br />
A lot is packed into an hour <strong>and</strong> the meeting runs over. � e discussion includes<br />
plans for a book giveaway event for the charity Up2Us at the � agship store <strong>and</strong> the<br />
opening <strong>of</strong> the new Brook� eld, Wis., location. � omas wants details from her team,<br />
asking about what banners will be at Brook� eld, ensuring the br<strong>and</strong>ed podium is at the<br />
giveaway event <strong>and</strong> inquiring about special br<strong>and</strong>ed stickers to be placed on donated<br />
books. “We like those logos,” � omas says.<br />
� e talk eventually turns to <strong>marketing</strong> related to the American Library Association’s<br />
Banned Books Week, an event promoting First Amendment rights <strong>and</strong> highlighting<br />
books that have been targeted for banning. � omas mentions scrapping customized<br />
T-shirts (“� ere was not much signage. It wasn’t worth it. I’d rather save $20,000.”), <strong>and</strong><br />
she <strong>and</strong> Emily Bruce, the PR coordinator, talk about story angles to pitch to the media.<br />
� e group also discusses spotlighting the popular Twilight books, recognized this year<br />
during Banned Books Week, on Half Price Books’ advocacy site DeleteCensorship.<br />
org. “We want to own freedom <strong>of</strong> expression from a <strong>marketing</strong> st<strong>and</strong>point,” � omas<br />
explains. “Barnes & Noble <strong>and</strong> Borders are not talking about it, so we can talk about<br />
something they’re not talking about.”<br />
It all wraps up with a chat about customer ser<strong>vice</strong> inquiries in July <strong>and</strong> for the quarter,<br />
<strong>and</strong> about what appears to be an increase in complaints regarding ser<strong>vice</strong> in the<br />
stores’ buy areas: the sections where clerks purchase used items from customers. Jessica<br />
Waddell, customer ser<strong>vice</strong> manager, says many <strong>of</strong> the complaints pertain to the level <strong>of</strong><br />
ser<strong>vice</strong>, organization, wait times <strong>and</strong> the program’s confusing explanation. � omas cites<br />
21
22<br />
<strong>marketing</strong>news 09.30.10<br />
a soon-to-be-open store in Oklahoma City as an example <strong>of</strong> a “visually<br />
busy” location in need <strong>of</strong> more prevalent <strong>and</strong> concise signage explaining<br />
the policy, <strong>and</strong> says the <strong>marketing</strong> team also should look into developing<br />
better signage <strong>and</strong> collateral pieces chain-wide explaining the buying<br />
process, in addition to orchestrating some additional training.<br />
10:45 a.m.<br />
Out goes everyone but � omas <strong>and</strong> Becky<br />
Gomez, promotions manager, <strong>and</strong> in comes<br />
the creative team for its weekly meeting. Today<br />
the discussion’s on “DIMFest,” an annual<br />
meeting with Half Price Books’ district inventory<br />
managers slated for the next day. � e<br />
team discusses the PowerPoint presentation<br />
that addresses graphic treatments for in-store<br />
messaging, promotional materials like an illustrated<br />
literary pet calendar <strong>and</strong> a holiday tote<br />
bag, <strong>and</strong> sales <strong>and</strong> material delivery schedules<br />
for the rest <strong>of</strong> the year.<br />
� ey also take the time to revise <strong>and</strong> � esh<br />
out some strategies; � omas, for instance,<br />
stresses that managers should tell employees<br />
to direct customers to the company’s<br />
DeleteCensorship website during Banned<br />
Books Week <strong>and</strong> goes over possible hours for<br />
Black Friday, which leads to some casual back<strong>and</strong>-forth<br />
discussions with team members that<br />
conclude with a call for research into Black<br />
Friday sales hour by hour last year. � omas<br />
also realizes that Christmas this year falls on a<br />
Saturday, which means that the company will<br />
lose what typically is a robust shopping day.<br />
“We need to make sure we have something to<br />
push in December or everyone will think we<br />
had a bad Christmas,” she says.<br />
11:51 a.m.<br />
� omas leads an extensive tour through the<br />
inventory warehouse below the store as well as<br />
on the main � oor, passing by bohemian booksellers<br />
to her favorite sections that carry archived issues <strong>of</strong> Life magazine,<br />
early prints <strong>of</strong> children’s classics <strong>and</strong> a collection <strong>of</strong> books sold speci� -<br />
cally for their spines’ intricate artwork. She also lights up over an ornate<br />
replica <strong>of</strong> the � agship Half Price Books store, complete with the appropriate<br />
signage, that Wright, the company’s CEO, <strong>and</strong> her son constructed<br />
out <strong>of</strong> Legos.<br />
A few minutes later, � omas meets Wright on the � oor, <strong>and</strong> the pair<br />
go out the back door <strong>and</strong> across the street to Henk’s European Deli for<br />
lunch. � omas tells Wright about Christmas l<strong>and</strong>ing on a Saturday <strong>and</strong><br />
describes a holiday campaign suggesting alternative ways to wrap gi� s,<br />
by which Wright seems impressed. � is is more like a lunch between<br />
friends than co-workers—having known each other for 21 years, they’ve<br />
formed a genuine friendship. Wright even credits � omas for helping to<br />
raise her children, <strong>and</strong> when the pair travel on business, they share<br />
a hotel room.<br />
“I trust her to know what she’s doing,” Wright says <strong>of</strong> � omas. “She<br />
knows me well enough to know when I really don’t agree; she knows<br />
when to redirect it.”<br />
“For CEOs, when [the company is] your baby, it’s tough to give up<br />
some <strong>of</strong> that authority,” � omas says. “But you have to spread it around<br />
<strong>and</strong> trust your people. Maybe that’s why some [CMOs] only last two<br />
years.” But, � omas adds, marketers also are responsible for forging a<br />
strong relationship with the heads <strong>of</strong> their companies. “Because most<br />
<strong>marketing</strong> people have pretty strong personalities … you really have to<br />
underst<strong>and</strong> the CEO’s personality,” she says, <strong>and</strong> try your best to mesh.<br />
Beyond their productive working relationship, Wright credits <strong>marketing</strong>driven<br />
br<strong>and</strong> positioning for the company’s success. “[Marketing] has made<br />
us much more than a bookstore,” Wright says. “We’re involved in all<br />
the communities we’re located [in]. Plus, there’s our national literacy<br />
campaigns. We donate to the community; we donate outside <strong>of</strong> the country.”<br />
Going forward, Wright believes that the <strong>marketing</strong> team’s focus on<br />
community involvement <strong>and</strong> customer ser<strong>vice</strong> will keep Half Price Books<br />
relevant in the era <strong>of</strong> e-books <strong>and</strong> online retail.<br />
THREE OBSERVATIONS FROM A<br />
DAY WITH <strong>KATHY</strong> <strong>DOYLE</strong> <strong>THOMAS</strong><br />
1. Don’t mistake casual for lazy. The corporate culture at<br />
Half Price Books is laid-back <strong>and</strong> Thomas is a relaxed boss. As<br />
a result, the employees seemingly are comfortable around her.<br />
But everyone is still business-minded. Thomas does her part by<br />
asking detailed questions <strong>and</strong> providing guidance to ensure that<br />
the <strong>marketing</strong> team is functioning e� ectively.<br />
2. Communicate c<strong>and</strong>idly with your CEO. Thomas admits that her<br />
friendly relationship with CEO Wright isn’t typical, but because the<br />
two know each other well, respect each other’s perspectives <strong>and</strong><br />
welcome open communication, they work stronger as a team.<br />
3. Make <strong>marketing</strong> top <strong>of</strong> mind for every job function.<br />
Thomas is tasked with overseeing both <strong>marketing</strong><br />
<strong>and</strong> development, yet her mindset always is<br />
<strong>marketing</strong>-oriented. She uses her <strong>marketing</strong><br />
knowledge to better inform real estate<br />
expansion decisions <strong>and</strong> to ask pertinent<br />
questions about possible markets.
24<br />
2:10 p.m.<br />
� omas is in her colorful corner o� ce playing her other <strong>executive</strong> role—<strong>executive</strong><br />
<strong>vice</strong> <strong>president</strong> <strong>of</strong> development—with Helen Pacione, director <strong>of</strong> real estate <strong>and</strong><br />
development. Even though � omas is talking real estate, <strong>marketing</strong> is still on her<br />
mind throughout the meeting.<br />
Right o� the bat, Pacione briefs � omas about her recent trip to Denver, a<br />
market that Half Price Books is considering exp<strong>and</strong>ing into. Pacione loves the area,<br />
citing high education levels <strong>and</strong> the community’s green tendencies as indications<br />
that the target demographic is in the area. But � omas is concerned that the average<br />
income level is too low, the rent rates are too high <strong>and</strong>, since Colorado is distant<br />
from Half Price Books’ other markets, br<strong>and</strong> awareness might be an issue.<br />
Later, with <strong>marketing</strong> in mind, � omas checks in with Gomez, the promotions<br />
manager, over the phone to ensure that she knows about a relocation in Maplewood,<br />
Minn., that Pacione had mentioned. � omas also expresses interest to Pacione in<br />
opening a car charging station in advance <strong>of</strong> the new Chevrolet Volt electric car<br />
at an Austin, Texas, store to reinforce Half Price Books’ green identity <strong>and</strong> garner<br />
press mentions. � en near the meeting’s end, a� er pressing matters are addressed,<br />
� omas talks about a conversation she had with a CMO for military retail stores<br />
<strong>and</strong> dreams about the possibility <strong>of</strong> exploring the chance to open Half Price Books<br />
stores on military bases. If the concept ever came to be, the women agree, that could<br />
be the br<strong>and</strong>’s ticket to overseas growth. m<br />
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