An Easy Attitude
Jan 2008
Businesses have always innovated to get ahead and stay ahead. But in an age when consumers expect ever more for their buck, we've looked at a growing group of retailers exploring what's being termed the 'easyJet revolution' in order to shake up their markets. Finding new ways to offer affordable products and services for large audiences, they're certainly stimulated by the continuing evolution of the low-cost, online model, but are also inspired to meet the diversifying demand of consumers who feel thoroughly empowered. Breaking the traditional moulds that shoppers take for granted, the 'easy' concept is threatening traditional businesses with lower prices, the mass reach of digital media and a fundamental flexibility. Their customers seem very happy to dispense with the frills.
One of the most vivid examples is Glasses Direct, which turned the glasses sector on its head via entry as an online retailer in 2004. Operating solely through its transactional website, it offers prescription glasses at a fraction of the costs charged by the long-dominant high street retailers. Having received £3m in funding last July and gearing up to expand operations, it's bracing for a competitive reaction from the likes of Specsavers and Tesco, whom many expect to enter the online market this year.
We've spoken to Glasses Direct's founder on numerous occasions (see Pearlfinders UK 02.09.05, Pearlfinders UK 21.04.06, and Pearlfinders UK 05.05.06), learning that a key issue he faces is gaining trust. With a small, young business promising low-cost glasses, encouraging consumers to put their faith in its products over those of a face-to-face high street outlet is a key challenge. Further, he was keen to exploit online and innovative marketing methods as much as possible, but was faced with the question of effectiveness and propriety - debating the extent to which these can be integrated with traditional channels. As with many such businesses, a crucial concern is the extent to which unconventional brand building efforts can be reconciled with an image of reliability to inspire consumer confidence.
For an update, we spoke to the company's Brand Manager last month (see Pearlfinders UK 03.12.07). Significant changes were afoot in the marketing department, with its first Marketing Director being brought in, and this year's objective being to raise awareness of the brand. We're told a "planning phase" is in full swing, and on an agency front, all manner of opportunities may be created - one has been handed a £2m branding brief to kickstart activity until February, and it was hoped more resources would be devoted to digital initiatives. The company had always aimed for originality - and guerrilla and stunt tactics had supported its initial launch - but with sights now fixed on gaining market share, it's clear marketing strategy is shifting more mainstream.
At an earlier stage of development, meanwhile, is another mould-breaker - Favre Sports, the winter sports retailer aiming to "revolutionise" the rental sector with its Ski Republic concept (see Pearlfinders UK 07.12.07). Enabling users to reserve and pay for their gear online before even leaving for their holiday, it boasts of cheaper and better-quality products than its more traditional rivals. Pearlfinders spoke to the company's managing director, who likened the retailer's launch in the winter sports sector to that of easyJet in the airline industry - he argued the shift is less an emerging trend and more "full steam ahead", with rivals rapidly catching on and devoting more resources to mimicking the model. He was himself concerned about the threat posed by competitors starting to propose parallel initiatives, and hinted at "something in the pipeline" to ensure his is still the innovative business.
Speaking of current plans for Ski Republic meanwhile, he remains ambitious - having launched in London in October, plans were forming for 50 new stores across Europe and a global rollout. For agency support, therefore, his crucial criteria revolve around international capabilities. He argued they must be not only multilingual, but able to cross the cultural borders too - with unavoidable cultural differences in the various markets he targets, a solid understanding of these differences can open doors. Naturally, he also looks for knowledge of the tourism industry and the winter sports sector, a relatively niche area which prompted the selection of his current incumbent. So, too, did its span across marketing disciplines - with Ski Republic keen to take an integrated approach.
easyGroup itself is continually diversifying its own businesses and unveiling new ventures to remain competitive. Most recently, its easyOffice initiative was launched (see Pearlfinders UK 15.11.07), offering low-cost office space with flexible options, for as little as a week at a time. We spoke to both the easyOffice Manager about plans to expand the business throughout 2008, and to the Managing Director for easyGroup Intellectual Property - whose remit involves licensing the 'easy' name. When the easy4men range was expanded with the introduction of a new toiletries travel pack, he revealed that the group is "always interested in risk-sharing entrepreneurial activities", and it's evident his priority is to explore the extent to which the group's model can be applied to a range of markets.
In this vein, last year also saw the launch of the group's no-frills car and van rental services, under its easyCar and easyVan brands (see Pearlfinders UK 19.01.07). When we spoke to the easyCar.com Marketing Director, he confirmed an aim of revolutionising the vehicle hire sector, using high volume purchasing power to pass cost savings directly to consumers. On a marketing front, almost all activity was online - with agency support for digital strategy, design and SEO - following his policy of using cost-effective channels wherever possible. He pointed out, however, a further effect of the innovative business model - that to an extent, the uniqueness of the development means PR takes care of itself.
Though this can prove true, most new start-ups take no such chances. Similarly ambitious in its field is Greetz, where we spoke to the UK Country Manager (see Pearlfinders UK 21.12.07). The online greeting cards business was in the midst of preparing for its UK launch, and we learned online, above- and below-the-line activity would all be invested in. Longer term, however, he was hoping to appoint an agency with capabilities to build the brand, emphasising both media planning and creative expertise are key, with global capabilities beneficial. Naturally, cost effectiveness is a priority - and he was eager to explore viral and "cutting edge" media spends.
It's an unsurprising truth that most retailers aiming to be innovative with their offer hope their marketing tactics can be so too. Those such as gadget shop RED5 Retail (see Pearlfinders UK 27.09.07) and artisan chocolatier TCHO (see Pearlfinders US 12.11.07) have their feet firmly in cyberspace, targeting a young and tech-savvy market. Red5's Co-Founder explained that with help from SEO and PPC specialists, his priority is to draw traffic while being careful to link the customer experience to its seven High Street stores. TCHO's Marketing Director was taking the tech approach further yet - launching last year in "beta testing" mode, using its website to attract customers willing to pick up its first selection of products from the company's headquarters. With both RED5 and TCHO entering increasingly competitive retail markets, these tactics - and a strong emphasis on their presence online - can differentiate businesses in unexpected ways.
Aiming for just such an outcome is mydeco.com (see Pearlfinders UK 05.02.08), the latest venture from the pair behind groundbreaking website lastminute.com. Exploiting the nominal online proportion of what is a lucrative market in the UK, the site collates furniture and home decor products from around 500 retailers, boasting discussion forums and 3D design tools to let users visualise their real-world rooms. We spoke to mydeco's ultimate marcoms decision-maker, who said launch activity has been relatively experimental - she has avoided appointing any agencies on retainer, preferring instead to be suffused with fresh ideas. She's eager to invest in viral initiatives and social networking, urging agencies with "brilliant ideas" to get in touch. In approaches, she hopes to see original ways of using the digital medium, and past experience with e-commerce businesses.
We've also discussed the trend with the founder of rival RealmDekor.com, an online retailer of "quirky" home goods that aims to combine content from bloggers and social shopping sites (see Pearlfinders US 04.12.07). She put the site's success down to rigorous link referral strategies and effective word-of-mouth advocacy on related websites. Now, she plans to develop mobile marketing tactics, and was looking for support with mobile site design. In keeping with the brand's identity, we were told she aims to work with "wacky" creative suppliers that can strike a tongue-in-cheek, e-savvy and unpretentious tone, bringing consumers to feel they're "in on the joke". With this as a goal, she feels RealmDekor's tactics have achieved better results than even a heavy investment in traditional campaigns would have.
Striking a more delicate balance, Ideeli (see Pearlfinders UK 19.12.07) incorporates the added aspect of luxury positioning - aiming to help premium brands connect with affluent customers online, the CEO outlined three key principles Ideeli follows. Firstly, in building a community despite its invite-only exclusivity, it too aims to take advantage of the palpable popularity of social networking, and enable a longer brand story to be told. As well as between users, engagement between brands and customers is a priority - and viewing marketing as a dialogue rather than the broadcast of the brand's own message. Finally, authenticity is also key, with consumer confidence being particularly crucial in the luxury market.
Though naturally, these retailers' objectives will vary based on their particular areas of expertise - whether furniture, skis, or prescription eyeglasses - the goal of getting noticed in a crowded marketplace remains. Obviously, innovation is essential - but innovation as a goal in itself can be insufficient and illusive. What seems to be critical is to cross borders, geographically, conceptually, and with media. Digital needs to work with traditional, to bridge the credibility gap, inculcate trust and engage customers with the brand.
What we've learned from the decision-makers at these companies, is that agencies able to think laterally to help them deliver mould-breaking promises - and which can demonstrate an understanding of the objectives and market-transforming challenges they face - can get attention. Though sector-shaping ideas define their approach, for prospective agencies, it's the marketing inspiration to accompany them and prevent what would otherwise be just another great 'e-dea' falling by the wayside that counts. And what's also clear is that with today's consumers demanding more and in a faster, simpler, more accessible way than ever - the 'easy' business attitude is here to stay.