The company Vorwerk produces high quality vacuum cleaners (“Kobold”) and the famous Thermomix (“super fast food blender and processor that also weighs, cooks, simmers and steams”). The only marketing method for vacuum cleaners until today was door step sales/ canvassing from door to door. They started 80 years ago with that concept – at that time a revolution. However, the sales dropped within the last years, since the purchasing style of the consumer changed a lot. It is more and more difficult to recruit new salespeople in Germany (5000 people 20 years ago, today about 2500). People are more sceptical regarding these totally unknown salesmen knocking at the door. They would like to test the product in a shop. Furthermore, the number of consumers increases who checked the prices in the shops via smartphone-apps, so the marketing in regular shops wouldn’t be successful for these exclusive products. So Vorwerk is changing their marketing strategy by opening about 75 “flagship stores” (reminds me of B&O shops) across Germany, and the individual salespeople have to work in a network of customer service representatives.
Sven Grieger, ENE
Agree, "Panasonic Shops" (name should be different though) allowing people to experience a lot more about our products and their potential when being connected to each other (see Panasonic Center in Osaka). A superior experience to seeing them separated from each other at Media Markt, Dixons and the likes. It would be great to embassador our brand in top locations.
ReplyDeleteBerlin -> Friedrichstrasse
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Brand shops can be a alternative sales channel as well. Last year in Turkey, 50% of ttl flat tv was sold thru independent exclusive brand shops like Sony center, Samsung plaza, LG shops and locals like Vestel and Arcelik dealers. In HA business, exclusive dealers are making 90% of total sales. Brand shops network is big investment such as construction of the store, rental support, more ASM. On the other hand ROI is high in long term.
ReplyDeleteAhmet, that's impressive and I remember that from one of our discussions at SMDP last year.
ReplyDeleteIt will be very interesting to think this through, as success (measure to be defined) depends a lot on local circumstances.
In countries with a high and rising share of internet shopping and with a strong and price competitive retail landscape (e.g. Germany), I would assume that measuring success by sales through our shop would be questionable. Here I would look at things from a brand building and creating sales in other channels perspective.
In other countries (maybe Spain) where internet sales still play a minor role and people seem to prefer local retailers for their purchase a success measure could very well be sales.
As mentioned, very interesting to analyze deeper country by country.
Sara: SKY went the opposite way of Worwerk. In last years They increased Sales volume trought modern channel distribution (buyingt groups, chains and mass merchandising) but they maintain a parallel and indirect sales door to door. The peculiarity of sales door to door is that the scope is not declared to the consumer.
ReplyDelete(Sales)Engineers go to final consumer home to install satellite dish and they avail theiselve of the opportunity to promote (and often) to sell pay-tv. People trust in them because of their technical expertise, they accept their advice, and they don't stay on the defensive because they ignore that techicians in reality are paid on based commisions for selling pay tv:-) , Sara (PIT)