A RETAIL TALE
FOR YEARS, retailers have been under the recessionary cosh. They’ve witnessed a rapid dropping away of their footfall. In the UK, recent casualties have included a string of household names, further damaged by the effects of booming online shopping. Horrible holes have appeared in high streets and around corner after corner there are smaller retailers being hit hardest of all.
Not the time to invest in a new, niche shopping experience, it would seem. However, planned and consistent marketing can make that crucial difference, as evidenced by a venture in the north-west which completed 12 months in business at the end of May this year.
A husband and wife entrepreneurial team, with no retailing experience, had hit upon an unusual idea and started to develop it through observing broadly similar concerns in several countries, visiting trade fairs, reading and browsing extensively, talking with potential suppliers, researching prospective locations, preparing the business plan, seeking an equity partner – and bringing in professional marketing services assistance. Husband is a forward-thinking accountant, his wife a terrific communicator.
GROWTH AGENDA
The first-stage target market was to be entirely local, but with further stores across a wider area and click-to-buy figuring on the growth agenda. Two early elements were introduced smoothly. The pair found a suitable property, available on flexible terms, in a modern shopping centre within an affluent area, complete with ample free parking. And they were able to source precisely the kind of products they wanted to resell, mainly at readily acceptable wholesale prices.
There would be additional funding to put in place, back-office administration to set up, floor plan and display systems to work out, shopfitters to organise, supply routes to confirm and staff to select and train.
The marketing services input started ahead of most of this. The new venture must be branded: from the trading name, imagery and descriptive tagline, through to the website, e-mail sales function, advertising grids, stationery, graphics and uniforms. Preparations were made to trial a customer loyalty scheme.
Marketing support was involved in preparing and carrying out consumer testing, with focus groups to aid product range, quality and pricing decisions. As a later extension to this process, there were pre-opening social evenings, where people could see and try the produce in an informal atmosphere and buy at discounted prices. Research had indicated that women would account for around 75% of trade, so they dominated the invitation lists.
POSITIVE INFLUENCE
A low-budget teaser campaign was devised for use via the local press and radio, plus social media, ahead of the official opening. Attendance was by the community's great and good, the media, plus anyone else who might be able to bring positive influence to bear on the new venture. One of the directors was interviewed on radio and excellent photographic coverage appeared in weekly papers and a lifestyle magazine.
To aid positioning, co-promotions were rolled out with an up-market restaurant and an exclusive furniture retailer. Public relations came to the fore. Two further news-based broadcasting opportunities were engineered for the director. A star from the world of pop music, visiting the area, was persuaded to see what the shop was offering, with photographers clicking away merrily. There was a press story concerning the ‘youngest customer’, a toddler buying a birthday present for dad. Another appeared about how and where one of the more novel items is made. And photo coverage from sponsorship of an annual charity event added to positive publicity.
The ladies' evenings have continued to work; the website has been strengthened and plans for full-scale online commerce are ongoing; the first e-mailer showed the value of logging customer details and resulted in excellent payback; there was limited pre-Christmas radio advertising, with post-campaign research showing it had been worthwhile; and a new gift voucher scheme is starting to make its mark.
Eighteen months down the line, the economy’s problems have not bitten into this new retail operation. Plans to open second and third outlets are bang on schedule. Sales figures reached nearly 130% of target for the first year and gross profit was just 3% down on budget, dented by higher than forecast overheads.
Needless to say, that profit shortfall has not adversely affected the marketing push. Quite the opposite ...
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