Hall of Fame

When asked how the late Tom Foster would have taken his election to the DMA Hall of Fame, Foster & Gallagher’s Bob Pellegrino laughed, “He would have lined up whoever was responsible and had them shot.”

In that way, Tom was the product of another age: He hated the spotlight.

In another sense, he was as current as the most forward-thinking of today’s Webheads-a fact that came in loud and clear during a speech by America Online’s Robert W. Pittman at the DMA fall conference.

Trying to build a brand? First, ignore the conventional wisdom about whatever it is you do, Pittman said.

Foster did that. His rivals at Sunset House and other firms thought the mail order gift business would remain robust forever. Tom thought otherwise, and against all logic started buying horticultural catalogs.

Today, Sunset House and countless others are gone, done in by high postage and prices for foreign merchandise.

Pittman also said that you should encourage dissent.

Tom was secure enough in himself to do that, too. He not only empowered his employees, he turned the company over to them.

Finally, Pittman said that every forward-thinking firm must have a keeper of the vision. Tom Foster was the keeper of the vision at F&G.

Vision is more than creating a strategic direction-it also means ensuring the company’s survival. Foster did that the first time in 1951, when, at 21, he realized the draft was looming. So he brought in a partner, Helen Gallagher, and entrusted the business to her while he did his Air Force hitch.

Tom did the same thing when he found out he was dying a few years ago: He created a succession plan to leave the company in capable hands.

Happily, this year’s other Hall of Fame inductees are still very much with us. And each is deserving of the honor.

First, there’s Dick Hodgson, a consultant and Foster & Gallagher board member who has helped countless catalogers make millions of dollars. Dick is also the author of the “Encyclopedia of Direct Mail” and the “Direct Mail and Mail Order Handbook,” and one of the wisest people we know.

Next is Robert Teufel, who as president of Rodale Press has helped build that firm into a role model for every direct marketing/publishing enterprise. Bob is, moreover, an upright guy and one of our best and brightest.

Finally, there is Morris S. Dees Jr., the moving force behind the Southern Poverty Law Center. Talk about courage: Dees gave up a lucrative business to devote his life to fighting racism and defending the poor.

Congratulations to our new Hall of Famers, and to the folks who elected them. These are four great choices.


Hall of Fame

Quick-name those people and/or companies you feel had the most influence on the catalog industry over the last few decades. Even harder, name those who have come on the scene in the more recent past and look like they will become the leaders of the new millennium.

If we’re going to find new stars, we need to acknowledge those of the last millennium. Their skills are what made them special, so let’s look at my personal choices by skill set and see if they have any successors. (In a couple of cases, we don’t know who the people are, though we know their work. Please contact me at DIRECT if you can identify these parties, or if you want to add some choices or disagree with mine.)

Merchandising The unswerving answer to what makes the difference in a successful catalog-merchandise, creative or lists-is always merchandising. Here are four who showed us what the word really means:

1. Lillian Vernon, Lillian Vernon Inc.-Genius of the item business, still traveling the world to find that one-of-a-kind object. One of the first built-off-the-kitchen-table businesses, it has grown to $258 million in 47 years. Though the company now has nine titles, Lillian still knows an item when she sees one.

2. Roger Horchow, The Horchow Collection-While Hugh Hefner was teaching men about bunnies, Roger Horchow was teaching the rest of America how to decorate in style. “Trust me,” his catalogs seemed to say, “and you won’t make any decorating faux pas.” Neiman Marcus carries the Horchow Collection banner today.

3. Chuck Williams, Williams- Sonoma-Before Chuck came on the scene, pots and pans were just that. With his magic touch, they became the accessory for contemporary living. A style setter-not unlike Roger Horchow-Chuck was one of the first niche builders.

4. Bill Williams, Harry & David-Harry & David has shown the real meaning of merchandising by taking an absolute commodity (food in boxes) and turning it into a premium, must-have gift item.

Who’s next? Some say the modern equivalent is Delia’s, the generation Y women’s catalog, which has seen its earnings go up dramatically this year. But questions remain: Is this a case of a smart marketer having enough sense to notice that the market demographics are changing and then acting accordingly? (Did you know there will be more baby boomlets than boomers by 2010?) Or is Delia’s really one of the new breed, with the staying power of its long-lived predecessors?

After all, many of us thought that J. Peterman was the be-all and end-all of merchandising, too. It’s disappointing to admit, but I wouldn’t make that statement now. All his books look alike, and even his copy has lost its entertainment value. Here’s hoping he gets back on track.

Coldwater Creek could have been a contender too, but it may be fading. According to the April issue of Marketing Tools, its net income per share for the first quarter ending in May is expected to fall to 6 cents from 20 cents last year. The firm’s catalogs look good, but then so do the instant clones that seem to be everywhere.

Copy Once the foundation of direct marketing, this skill is becoming rare (even rarer than a creative who understands the bottom line). Who was the best catalog copywriter? In my book, there’s only one choice:

5. Joe Sugarman, JS&A-The first to write catalog copy that begged you to read every word, even when the words covered a full page, Joe is probably now best known for his BluBlocker sunglasses ads and seminars. His catalog laid the path for Sharper Image and his Bone Fone was the forerunner to today’s Walkman.

Risk Takers These were the folks who either thought up the concepts or put a major new spin on how things had traditionally been handled.

6. and 7. L.L. Bean and Leon Gorman, L.L. Bean-One of the first in the business (contrary to what some report), this catalog is still a champ today. Try building close to a billion-dollar business on basically one concept and one channel, and you’ll know what I mean. Times are changing, and Bean will have to change too. But the genius that built that business will remain almost impossible to duplicate.

8. and 9. Mel and Pat Ziegler, Banana Republic-For being the first to put literacy and fun together in a catalog that used chatty copy, illustrations and book excerpts to sell travel gear, and to be what J. Peterman has said was the inspiration for its version. (The Banana Republic catalog ceased mailing when the company was purchased, but it is often rumored that it may return.)

10: Unknown, Bloomingdale’s-The Sighs and Whispers catalog (see example produced in 1976) went way out on a limb with this first-of-its-kind approach to lingerie. The story goes that in an attempt to turn underwear into fantasy-wear, Bloomingdale’s hired a hot photographer. This photographer would only do the work if he was given total reign, and Bloomies had to use the photos “as is.” This it did, and store traffic supposedly beat all records. (Note: Victoria’s Secret, while a dynamo, didn’t really get rolling until it was acquired in 1982.)

11. Hank Johnson, Spiegel-Spearheading what some refer to as the Spiegel sex change operation, Johnson took a dowdy, faltering business and created a whole new personality. He cut one massive book for rust-belt families into several segmented catalogs for working women, a strategy that worked for a time, but appears to need another injection of Johnson savvy.

12. Pleasant Rowland, Pleasant Co.-She broke every rule in the book (too light density, not enough product, odd format) and knocked the socks off a whole generation of young girls, not to mention a few collectors.

On the new side of the business, there’s Michael Dell. Dell was the first to let the customer specify a “custom” computer by mail. With sales of $7.5 million in 1996, I wouldn’t let the current FTC distraction cause too much worry. The industry leader, Dell seems poised to take advantage of a very “disposable” product needed by more and more people. (Dell settled with the FTC many years ago. Joe Sugarman didn’t, and you might have been more familiar with the Sugarman name had he not fought what many thought was an unfair ruling by the FTC.)

While its earnings have been impressive, Gateway is still second in ideas as well as sales, so it doesn’t make our list of outstanding newcomers.

Should Amazon.com be here? It had the idea and it made it happen, but will it last the distance? Though we all like to root for the underdog, we’re betting it will not remain at the top.

Positioning 13. Unknown, Tiffany-This person showed us the power of packaging. Put it in a turquoise box, lower the price a tad in the catalog, and they will come.

14. and 15. Gary Comer and Dick Anderson, Lands’ End-Probably the first to recognize that what they were selling was really a commodity, this powerhouse duo from the ad world created a unique positioning-different from that of its biggest competitor, L.L. Bean. It knocked Bean out of the No. 1 spot.

16. and 17. Nino Vella and Doug Hershey, New Pig-New Pig’s innovative marketing makes it one of those catalogs we all look to follow. How exciting can a company selling leak-and-spill products be, anyway?

Taking a humorous approach, complete with pig mascot, New Pig showed us how to create a memorable brand-and skyrocketing sales.

Setting the Standards 18. Irwin Helford, Viking-For setting the service standards and always raising the bar. (How many companies do you know that have same-day delivery?)

Tenaciousness 19. Bill McCarthy, J.C. Penney-Not one you hear talked about much, Penney is just there (in a big way, thanks in part to retail synergy-sales for 1997 were almost $4 billion) …unless you order from them. Then you find yourself experiencing two things we hear a lot about but seldom see-excellent service and plenty of segmented mailings.

All-Around Smarts 20. Dick Hodgson, Sargeant House-A great marketer and teacher who has always built on his knowledge through the lost art of observation, Dick is the one who taught many of us, through his speeches and writings, the absolute basics for catalog success.

The Support Contingent 21. Tommy Newkirk, Direct Marketing Technology-Tommy made the proprietary database the marketing tool it is today, and built an empire doing it!

The modern-day equivalent is Tony White, whose Abacus database now includes over 800 catalogs-and probably every catalog buyer in the country.

22. Steve Millard, Millard Group Inc.-Many feel that Steve upped the standards of the frequently maligned list industry. For sure, he was the leader in both bringing user-side marketing knowledge to us and specializing in catalogs.

23. and 24. Robert and Kate Kestnbaum, Kestnbaum & Co.-Among the first to promote, teach and refine catalog analysis, they have always been on the leading edge.

25. Stanley Fenvessy-Once a partner of the Kestnbaums, Stanley is no longer with us, but his expertise in fulfillment is still relied on (via his book “Fenvessy on Fulfillment”).