INNOVATION IN CULTURE MARKETING HAS ARRIVED_Understanding Amazon’s Kindle

Kindle AmazonABSTRACT

In some industries more than others, innovation is introduced rather timidly, usually with a “follow the leader and undercut prices” approach.

Some firms, however, such as Amazon, are firmly committed to innovation. Kindle, for example, is not just an e-book reader but an example of innovation in the retail book market using a system-based solution. Hardware and software have combined with physical and ……

Photo: Brian Vallelunga …….. remote elements to revolutionise the rules of

(www.flickr.com)………………. the book marketplace. Continue reading “INNOVATION IN CULTURE MARKETING HAS ARRIVED_Understanding Amazon’s Kindle”

GLOBETROTTER, DESIGNED TO FIRE THE IMAGINATION_An interpretation of the store that won the European design award

Globetrotter

ABSTRACT

When you think about the ideal store, the first image that almost certainly comes to mind is a selling machine. But perhaps you would not have suspected that in order to achieve this objective, you should first create an imagination machine: a store that tells a meaningful story, whose main characters – brands, architecture, visual information, sales staff – follow the script and transmit values to the visitors, making them feel part of the story. A walk around Globetrotter shows that the story is actually true. Continue reading “GLOBETROTTER, DESIGNED TO FIRE THE IMAGINATION_An interpretation of the store that won the European design award”

DO MULTI-BRAND STORES HAVE A FUTURE?__The difference between ‘being’ and ‘selling’

concepto multimarca

.Photo: Joel Jones (www.flickr.com)

ABSTRACT

Chains that sell their suppliers’ brands have suffered as a result of competition with chains that sell their own brands, and this has put them in a difficult position. However, the important factor is not what brands or how many of these are sold, but whether or not the store is capable of creating its own meaning, departing from the traditional role of a “multi-brand store” to become a chain brand, a “retail brand”. Continue reading “DO MULTI-BRAND STORES HAVE A FUTURE?__The difference between ‘being’ and ‘selling’”

WHAT’S AT STAKE BETWEEN RYANAIR AND TRAVEL AGENCIES

ABSTRACT

The debate between Ryanair and the Travel agencies is not simply a mean to achieve media coverage, but a ferocious fight to preserve the feasibility of a business model, which requires selling directly to the public.

maletas

From August 25, Ryanair will only accept bookings made directly via their own website, rejecting all the reservations made by travel agencies.

Legal considerations aside, this decision, aired by the airline with its usual rude verbosity (it described travel agencies as “sector parasites” and “dead wood”) has triggered considerable debate involving consumer associations and Public Administration, even though the latter do not seem to be in a hurry to take a stand.

Travel agencies say that many customers do not feel comfortable shopping online, and thus are happy to pay for the services provided by the agencies.

What’s this not about?

This is not a debate among online companies, since half of the sales made by accessing Ryanair’s website are made by travel agencies that also use other trading channels.

It is also nothing new that a third party without prior agreement sells one company’s products, such as, for example, Hacendado tissues at petrol stations..

Then, travel agencies do not demand any margin or commission fee (which they did with Iberia and Spanair), as they find it completely normal to charge a fee for their services.

And some may even think that this is all too much hassle about nothing, as sales made by travel agencies do not even reach 1% of Ryanair’s overall turnover.

So, what’s all the fuss about then?

This is basically guerrilla warfare between companies based on virtually identical business models, based on three key issues:

First, they all sell comprehensive travel solutions including flight, accommodation, car rental, insurance products, etc.

Second, they all follow Lebowitz’ theory (the benefits of online presence): the more customers a company has, the more benefits each customer can enjoy —this is what Movistar states. The company that attracts many customers (for example, offering cheap flights) can redirect their customers to other companies that are willing to pay commission fees or bonuses for induced sales. Thus, all extra income is essential for the financial feasibility of any such company. And what travel agencies are precisely doing is to jeopardize Ryanair’s said key extra income!

And thirdly, they need to sell directly to the public. That is, by selling tickets via travel agencies, Ryanair loses customer knowledge and decreases their “sell-ability”.

However, the airline is at a disadvantage: their website does not sell competitors’ flights. Therefore, the options they offer are limited, even if they include hotels, insurance products, etc.

This business models requires large volumes and thirsts to become the leading reference. This is precisely what is at stake here.

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Lluis Martinez-Ribes

Source: Expansion

19 August 2008

THE PACKAGING OF THE PACKAGING__Firm In Retailing, packagings designer

matrioska

ABSTRACT

A product’s packaging is much more than just a wrapper. Suppliers know this and that’s why they put so much effort into its design. But other types of product “packaging” affect the feelings produced in customers, and over which the supplier has no control.

We should understand that a shelf, a section, a store or even a shopping mall are also packagings, and that they are governed or designed by Firms in Retailing (FIRs). Sales depend heavily on the coherence between these overlapping packagings. Continue reading “THE PACKAGING OF THE PACKAGING__Firm In Retailing, packagings designer”

Para vender más desde mañana mismo. Lo que realmente compra el cliente

Soluciones-Esfuerzos

RESUMEN

El concepto de compraventa ha ido ligado siempre a la idea de intercambio de Producto por Dinero. Sin embargo, desde la perspectiva del cliente lo que éste busca no es un simple producto, sino una Solución, y lo que está dispuesto a aportar es mucho más que dinero: Esfuerzos.
Esto nos lleva a replantearnos el concepto de compraventa: abandonar la idea de vender simples referencias para vender lo que el producto representa para la clientela. Un trabajo de empatía y de segmentación en base a soluciones esperadas o esfuerzos que fastidian, es un buen camino para lograr vender más. Continue reading “Para vender más desde mañana mismo. Lo que realmente compra el cliente”