MARKETING DESIGN WIZARDS: Casting spells to sell

Where Miller Zell works its magic, consumers go buy, buy

The Atlanta Journal-Constitution

Wednesday, December 24, 2008

Based in Atlanta is a secret weapon for some of the nation’s top consumer brands. Think Wal-Mart, Coca-Cola, Johnson & Johnson, Office Depot, KFC, ExxonMobil, Regions Bank, H&R Block, Ford and GM.

One reason customers buy products or open new bank accounts is, in part, how appealing the product looks on a shelf or displayed in a showroom.

Atlanta-based Miller Zell studies consumer behavior and designs “shopping environments” and signs to lure customers in, get them to relax and ultimately, to make a purchase.

(Miller Zell is no relation to former Georgia Gov. Zell Miller —- though employees say they often get asked about the transposed names.)

The company started as a printer, but has evolved into one of the premier retail consultancies.

Miller Zell has about 275 employees. The ranks include interior designers, computer whiz kids and industrial and mechanical engineers, all focused on what has become their motto: “Making the world a better place to shop.”

They employ graduates from Georgia Tech, the University of Georgia, the Savannah College of Art and Design, the Portfolio Center and the Atlanta Art Institute.

Company retail strategist John Wilkins calls it an eclectic mix of form meets function and creativity meets science.

“It’s the left brain and right brain playing well in the sandbox,” said Wilkins.

Miller Zell’s Fulton Industrial headquarters show how integral the company has become to retailers’ business.

Miller Zell has five divisions, said Curt Johnson during a tour: big-box stores such as Home Depot and Wal-Mart; consumer goods such as Coca-Cola and Newell Rubbermaid; banking, with names like Wachovia; quick-serve restaurants such as Arby’s and Shane’s Rib Shack; and dealerships, franchises and hospitality, such as Volvo Mac, Mohawk Carpets, Philips Arena and FedEx Kinkos. Johnson heads the consumer goods division.

Miller Zell’s showroom sports supermarket displays for Coca-Cola and feng shui-inspired signs for La Choy. There are schematics for Honey Baked Ham stores’ new design. And new signs for MetroPCS, the discount cellphone service that recently asked Miller Zell to redesign its stores with movable signs. The problem? MetroPCS locations can get packed with people doing different things: paying bills or trying out phones. Miller Zell designed large, mobile signs that divide the space but can be quickly moved depending on what kind of traffic is coming in.

“One of the key things we’re hearing from retailers is they want to create flexibility and modularity in their retail design,” said Johnson.

Teams work on everything from simplified TV displays for store shelves to redesigning Cirque du Soleil’s marketing tent.

Georgia State University marketing professor Ken Bernhardt calls Miller Zell “pre-eminent” in its field.

“They’re almost a one-stop shop for retailers,” said Bernhardt. “Miller Zell allows retailers to integrate the floor plan with the merchandising and signs for an integrated customer experience.”

Georgia State’s marketing department has given several MAX awards to Miller Zell for its innovative designs.

One winner was a “why-didn’t-I-think-of-that” design for H&R Block and Wal-Mart.

Miller Zell designed a portable “tax-office-in-a-box” that can be stored easily, but during tax season dropped at Wal-Mart to create a semi-private space to prepare tax returns.

“After we built it, then we value-engineered it to half the cost, and now it generates a 30-to-1 return on investment,” said Johnson.

The whole thing fits in a 6-foot by 3-foot box, including the computer, desk, signage and chairs.

“The nifty thing,” added GSU’s Bernhardt, “it was designed with the end consumer and business-to-business consumer in mind. It met Wal-Mart’s needs for low cost and minimum space, but also the consumer needs of privacy.”

Banking was one of the company’s fastest-growing segments last year, said Johnson.

Banks discovered they can use the time people wait in line to get people to “trade up” by adding more products to their accounts, such as a CD or money market account.

Said Wilkins: “Banks are starting to understand they have to think like merchants. But it’s difficult for people working in banks to remember everything they need to ask the customer. We try to put the environment to work.”

Miller Zell redesigned the interior for Regions Bank, with new carpets, furniture, signs and entertainment while waiting in cashier lines.

GSU’s Bernhardt said that a company such as Miller Zell could be in for some tough times, but once retailing rebounds from the economic slump, will benefit in the long run.

“I think anyone whose customers are retailers are going to have a tough time in the short run,” said Bernhardt, “because retailers are looking to cut expenses, not add expenses. On the other hand, Miller Zell can ring up sales for a retailer so when things get better, they should be one of the first beneficiaries.”

Wilkins agreed it’s a touchy time for retailers.

Now is not the time to “upsell” to the consumer, he said. “Now more than ever it’s important to respect the shopper and focus on authenticity.”

It’s crucial to respect customers’ time, he said.

One thing that benefits Miller Zell is being based in Atlanta, where stores have more square footage and retailers use the space to get innovative, said Johnson.

For example, on Monday, a five-member team went on a “field trip” to Alpharetta to see new retail strategies employed by CVS, Target, Wal-Mart, PETCO and McDonald’s.

“Atlanta is a great test market,” said Johnson. “It’s a breeding ground for retail innovation.”


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