"Buy the Way…" Insights on Integrated Marketing Communication

Last Sunday, when passing Barnes & Noble in Pasadena, my uncle told me that it seemed the last chain bookstore in Los Angeles. Even though I was aware that the digital onslaught of e-books has put bricks-and-mortar bookstores in an existential predicament, I was still surprised to learn that the condition is so severe. However, independent bookstores such as Elliott Bay, seek a way out of the plight, enjoying steady growth in sales and customers.

When Barnes & Noble’s sales decreased by 3.4% in its most recent fiscal year, sales of independent bookstores grew by 8% in 2012. Since 2009 more independent bookshops have opened than closed in America. How to survive and even to thrive in the winter of print media? The answers lie in experiences generated in independent bookstores.

Experience Economy (Source: emeraldinsight.com)

According to Pine and Gilmore, we move from the commodity business, the goods business, the service business to an experience business, which charges for the feeling customers get by engaging it. Sellers orchestrate memorable events for their customers, and that memory itself becomes the product – the “experience”. The commonly mentioned example is Starbucks, selling not the cup of coffee, but the memory spending with friends.

Elliott Bay in Seattle
(Source: Economist.com)

Bookstore owners also apply this concept in improving “the experience of buying books” in their stores. Elliott Bay, a family-owned book company in Seattle, is celebrating its 40^th anniversary. In the local area it is seen as a bit of a cultural icon. Peter Aaron, the owner, suggests that the advantage of his store is that it is small enough to get to know their customers well. They see them, they talk to them, they recognize regulars, and they know how to keep them coming back. For customers, going to Elliott Bay is not only to buy books, but also to visit an old family friend. The intimacy cultivates the brand loyalty.

Librairie Avant-Garde, located in a former bomb shelter. (Sourse: mtime.com)

Librairie Avant-Garde, the name card for Nanjing. (Sourse: mtime.com)

Another kind of experience of buying books I have encountered was in Librairie Avant-Garde, my favorite bookstore in my hometown, Nanjing, China. Walking into a former bomb shelter, you are in the country’s largest single-floor bookstore – 4,000 square meters. The warm light of reading lamps, the portraits of the most accomplished artists, such as Picasso and Van Gogh hang on the roof, the famous verses carved on the wall, and a faint scent of coffee, separates it from the real world, leading you to the wonderland of books. Comfortable couches, free wifi, coffee bars and countless books turn it into a best place to hang around for an entire afternoon. Occasionally, Librairie Avant-Garde will organize lectures and live concerts, inviting the author to discuss their works. Moreover, there is a souvenir shop selling as many as 3,000 kinds of creative products. An independent team is dedicated to the design and production of these “little gadgets for the young”.

Independent bookstore as Librairie Avant-Garde transforms itself into a concept bookstore and books are only the byproduct for customers. What they really buying is an experience of consuming culture and art, a relaxed and artistic lifestyle.

However, when the souvenir shop in Librairie Avant-Garde has made double the profits compared to book sales, some people may ask whether the prosperity of independent bookstores provides the solution for print book revival. Or it is only a fake prosperity.

References:

D, G. (2013). The future of the bookstore:A real cliffhanger. http://www.economist.com/blogs/prospero/2013/02/future-bookstore

G, H. (2013). Independent bookstore: Reading between the lines. http://www.economist.com/blogs/schumpeter/2013/08/independent-bookshops

Han, B. (2011). Librairie Avant-Garde opens a new chapter . http://usa.chinadaily.com.cn/culture/2011-08/16/content_13121244.htm

Pine, J. and Gilmore, J. (1999) The Experience Economy. Boston: Harvard Business School Press.

Wendy’s has been making huge strides in their marketing strategies in the last few years.  They recognized that they had fallen to the back of the pack in terms of fast food companies.  They wanted to reinvent themselves and become relevant as McDonald’s, Taco Bell, Burger King, and Carl’s Jr. are in consumer’s minds.  They answered with a full arsenal of ways to try and get people back to Wendy’s.  They started by advertising again, which was a hit and miss process.  They tried to implement their new premium menu items to set them apart from their competitors in the commercials, which helped.  Next they made the push to show off their dollar menu items; which also helped.  When they tried to put the actual Wendy in the commercial it wasn’t reacted to as planned.  They have now, thrown the actual Wendy out of the commercials and now moved to a thinner, younger, more attractive red headed girl to be the new Wendy.  This moved Wendy’s back into the positive direction it was going.  Sorry real Wendy.  And now they are beginning to redesign all the restaurants, modernize the uniforms, and obviously they reinvented the classic logo.

All of this has brought them closer into relevance among the other fast food competitors.  However, many people think that their online presence has made the difference.  They have updated their website to be more simple, flush, and contemporary; gearing it more towards devices like smartphones and tablets.  However, it is through its Wendy’s recent social media presence that received the buzz.  Wendy’s decided to ask the question to its followers on Facebook if they could only get one topping on their burger for the rest of their lives what would it be.  This post was well responded to getting over 3,000 likes and 3,600 comments (Carter 2013).  This was an extremely successful in engaging their audience in their brand, yet this was not the end of their plot.  They then posted the results as a pie chart, but on a burger patty with the actual ingredients.

You may say, well this is all great, but does it actually have that much of an effect on the actual business?  My answer to that would be that’s what their stock is saying.  An article from Yahoo Finance claims that Wendy’s is “proving to be a serious turnaround contender” (Ogg 2013).  Wendy’s has traded more than 30 times this year’s expected earnings, while it fast food competitors like McDonald’s have had no change.  So after the new logo, menu additions, contemporary restaurant redesign, successful new technological connection, and dramatic stock increase, I would agree with the caption under the new more attractive Wendy (Del Gigante 2013).  Now That’s Better.

References

Carter, C. 2013. Facebook Marketing Content Inspiration: Wendy’s (Burger) Pie Chart. Ignite Social Media. Retrieved from http://www.ignitesocialmedia.com/facebook-marketing/facebook-marketing-content-inspiration-wendys/

Del Gigante, J. 2013. Wendy’s Marketing Makeover Continues with New Responsive Website Design. MDG Advertising. Retrieved from http://www.mdgadvertising.com/blog/wendys-marketing-makeover-continues-with-new-website-design/

Ogg. J.C. 2013. Wendy’s Win: No Change for McDonald’s, and Fast-Food Sector Concerns. Yahoo Finance. Retrieved from http://finance.yahoo.com/news/wendy-win-no-change-mcdonald-163051514.html

Despite the fact that Apple shares dropped 5% after new iPhone release, the new iPhone 5C and 5S still generate some buzz after their cooperation with the über-British luxurious brand Burberry. Yet, many make jokes about their chavvy union.

iPhone 5S filming a Burberry Sketch (photo via Burberry.com)

Before the official launch of the new iPhone, Apple provided the new phone for the British brand to snap runway photographs and film exclusive runway show for its 2014 spring and summer fashion collection. It showcases the new phone’s fantastic video and photographic capabilities with exquisite slow motion video in an Instagram clip.

This cooperation sparked talks and interests. Even some suggested that this demonstration helped Apple’s stock bounced back.However, many see it as a chavvy union between the technology guru and the British fashion house.

A typical “chav” (left), Daniella Westbrook (right) with her daughter in Burberry. (photo via dontpaniconline.com)

Burberry, the successful high-end British fashion company, was at a time struggling with its image that associated with the “chav” – British term referring to youth of lower class with poor education and loutish behaviours, who puts on luxurious fashion brand clothes or counterfeit version of the clothing. Burberry’s iconic tartan became the symbol of  “the chavs”  because of its release of a comparatively cheap 50-pounds baseball cap in check and it even became the high-end fashion house’s nightmare when a C-list celebrity and her baby dressed from head to toe in Burberry’s iconic check.  Suddenly, the famous tartan became a joke of every tabloid in UK. Moreover, some pubs and clubs even banned customers who dressed in Burberry check because some of “the chavs” were aggressive soccer hooligans.

Christopher Bailey (left) and Angela Ahrendts of Burberry (photo via reduxpictures.com)

Yet, Burberry reinvented its image. Buberry ditched the baseball cap that got itself into the mud in the first place. Then, Angela Ahrendts, the new CEO stepped in to buy back 23 of its licenses and tackle the problem of counterfeits. The company then hired Christopher Bailey as its CCO and took down its famous check and opted for a subtle pattern of tartan in its design. They even opened up for new ways to promote its original British image in the younger generations’ mind by campaigning around made-in-Britain talents, indie bands and music. Moreover, they took advantage to the advent of new media. Burberry, a fashion house with a-century history, is one of the first high-fashion brands that stream live fashion show on its website in 3D and engage its younger customers with a Facebook page that collect photos of customers wearing their iconic trench coat.

Customers holding iPhone 5S and 5C (photo via ibnlive.in.com)

Apple, being the leading brand in mobile technology, seems to go down to the same path with Burberry with the launch of colourful iPhone 5C and gold-coloured iPhone 5S. Tech bloggers bad-mouthed the new release phones and called them “vulgar, gaudy and tacky” or “cheapy, plasticy” phones. Could this new iPhones hurt iPhone’s brand image? Could this cooperation with Burberry make iPhone5S a fashionista must-have? Or it just revived the connection with “the chavs”? Would it even reduce Apple’s value?

Only time will tell, but I am assured that iPhone is still something everyone covet at least for now. The new gold-coloured iPhone is now soared to $1900 in Hong Kong and $2300 in Taiwan (10 times and 12 times of its original price respectively). My roommates queued up for the gold gadget in three different stores in LA for three straight mornings still can’t get hold of one.

A few weeks ago, my roommate and I decided to have a beach day so we headed down to Santa Monica. On the way back to the parking garage, she decided to make a quick stop at Lush Fresh Handmade Cosmetics so she could purchase a $6.95 Fresh Face Mask. Since I had never heard of the company before I decided to join. I clearly had not anticipated buying anything, but long story short and an hour later, I was the one who ended up walking out spending $60+. Had the fact that my roommate and I gotten free facials at the store have anything to do with the recent damage done to my credit card? Possibly. Although that does not explain why my roommate walked out only buying what she came in for and I, on the other hand, walked out almost buying the entire facial cleansing section of the store.

Lush logo. Source: Lush website

We are continuously told the importance of great customer service, and I believe a customer’s retail experience is the future. In fact, a recent Salesforce blog post by Kendall Thornton, states research from McKinsey & Company found “70 percent of buying experiences are based on how the customer feels they are being treated.” As marketers, we know when a customer walks into a store for the first time, the way they are treated sets up all future encounters. We want these customers to feel good enough to engage with the company and ultimately become brand loyal. Simply put, a buying experience can lead to a brand experience. The experience is just a matter of how we steer customers into that direction.

Customers inside a Lush store. Source: Lush Blog

Before I go any further, I should explain our experience at Lush. The vast difference between our experiences at the store is what led me to believe why I had recently turned into a talking billboard for the company. As soon as we arrived, we began looking at the facial masks. Within a few minutes, a salesperson asked if we would like to get free facials. As the salesperson massaged each cleanser and mask on my face, she took the time to explain what each item was and what it did. This does not sound quite special, but the next thing she did actually took me by surprise. She asked me personal questions – each time addressing me as Miss Allison – to understand me and my lifestyle. Upon learning that I was a second year graduate student who was about to embark on a whirlwind of a journey called a thesis, she began to recommend products with scents of lavender to calm my anxiety. Never before has a salesperson 1) cared enough to get to know me personally and 2) help me find ways to cope with my anxiety through everyday products. As for my roommate, all the above had been absent from her experience. In fact, every time a product was placed on her face, she had to ask her salesperson what the item was and what it did.

Erase Bulling Window at the Santa Monica store. Source: Lush Facebook

It is very apparent my roommate and I had completely different in-store experiences; I felt as I had been treated like a princess, while my roommate felt conversely. My buying experience was simply unparalleled to any shopping experience, and thus, creating a wonderful new relationship. However, my buying experience did not stop there. As I was checking out, the cashier told me to like the Facebook page of their store in Santa Monica. She said the employees from the store check it regularly and answer fan questions posted to the page. When she handed me my bag of goodies, she slipped in a free sample of their Ice Blue soap bar and a copy of their Lust Times magazine which highlights all the charities they have helped through the years. As I walked out of the store, I noticed the window display in which people were encouraged to write on the window to erase bullying.

It became very clear to me that the company stands with its values and honestly respects every customer and goes beyond to help not only the local community, but also the world. Lush has built their company on a truly compassionate brand – something that has been clearly conveyed throughout the company, even in the buying experience.

We live in a society where people want to feel respected and now it seems people are becoming intolerant to brands that do not treat them with respect. With popular social networking websites (i.e. Facebook, Twitter, Yelp, Redit, etc.) it makes it impossible for companies to avoid negative reviews or comments, which can go viral and become damaging to the brand’s image. By placing more time and effort into matching the buying experience with the brand identity and experience, it can help eliminate people from feeling negatively towards a brand. Show customers what the brand stands for through the brand experience. Connect with the customers outside of the buying situation and show them the brand is more than just making sales. The trick is to create a cohesive identity and experience. The brand should encompass the same feeling when people visit a store, use the products, and interact with the brand. If the characteristic the brand has founded their identity and experience on is missing from one aspect, it could mean the very difference between someone such as me and someone such as my roommate.

Source: http://blogs.salesforce.com/company/2013/08/customer-service-stats.html