Warby Parker: The Brand and the Business

This originally appeared in Sparksheet.

Jeff Swystun looks at how Warby Parker is disrupting the eyewear industry by blending online and in-store commerce, even while the company struggles to profit.

Brands can become verb-worthy. In my father’s day it was the Cadillac, a car synonymous with luxury and status. If you had a Caddy you’d arrived.

Today, brand-verbs have taken on extended meaning. Start-ups and businesses seek to emulate certain brands: companies aim start the UBERization of their industry. We also hear that whole industries are being “Warby Parkered.” This is funny given Warby Parker was once called “the Warby-Parker-Eyewear-LogoNetflix of Eyewear” in GQ.

The affordable, hipster-chic eyewear company has risen fast but is yet to make much money. In an April 30th article in The Wall Street Journal, Warby Parker admitted it was not profitable. Dave Gilboa, co-founder and co-chief executive, did not share revenue performance but claimed annual sales were picking up.

The Category

Warby Parker founders set their sights on an industry with bloated costs and one dominated by just a few sleepy players. The business model cut out the middleman to work directly with manufacturing. The designer eyewear was then sold online to cut retail costs.

All of this was wrapped in a strong brand predicated on being hip and fresh that delivered superior quality and customer service. Warby Parker felt that by greatly improving the buying experience they would make traditional competitors irrelevant. This approach has rocked the complacent category.

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The Value of a Ski Lift Ticket

Ski areas and resorts claim a broad range of differentiators. Competition in the industry is fierce and leisure dollars more elusive so it requires creativity and innovation to fill chairlifts. Most ski resort executives will tell you it is all about snow,as_ski_ticketprices576 snow and hopefully, more snow. This assessment is not inaccurate but it is the equivalent of saying everything in real estate concerns location. Much, much more goes into ski resort marketing.

A visit to any ski area website will reveal effusive superlatives detailing the variety of terrain; the speed, comfort, and number of lifts; competing boasts of groomed corduroy and natural bumps; a plethora of ski school programs; après fun; and children’s activities. This gets more complicated as ski areas can either cater to day-trippers or be longer stay vacation destinations. The latter emphasizes accommodations and related infrastructure to get heads-in-beds and skis-on-slopes. Read more

Pop-Up Retail: Where Will It Go Next?

In 1997 Patrick Courrielche devised what was later called a one-day “ultimate hipster mall.” This is notable for two reasons. First, it was one of the first examples of what we know now as a pop-up retail. Second, I was unaware that the term “hipster” existed in 1997. My research shows it was coined in the 1990’s but did not become uber popular until the 2010’s. Did you notice that I fit “uber” into that sentence. Did you also notice that I am wildly off topic because this is supposed to be about pop-up retail?

Courrielche’s event was actually called The Ritual Expo. It was the catalyst for companies that liked the idea of creating short-term experiences to promote their brands to specific audiences. It prompted AT&T, Levi-Strauss, and Motorola to work with Courrielche on pop-up shopping experiences.

This form of retail goes back before 1997. Circuses, ice cream trucks, farmer’s markets, hot dog stands, and even the old bookmobile rate as pop-ups. For decades, Halloween shops have popped h-m-pop-upup prior to October 31st every year. Even the seasonal Christmas tree sellers meet the definition of a pop-up retailer. One could argue that many of the 5th Avenue flagship stores in New York are longstanding pop-up shops. That is because few make money from those locations and maintain the investment for awareness only.

The format has multiple benefits for the brand. It allows an interesting connection with existing customers while making a splashy introduction to new ones. Awareness tends to be the biggest benefit and not only for the foot traffic who happen by. Pop-ups are notorious for gaining traditional media and social media attention. As a whole, the investment is relatively reasonable. The square footage costs and promotion are upwards of 80% cheaper than a traditional retail store.

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Lessons from the Lemonade Stand

The dependable lemonade stand is not only an enduring summer icon but also a slice piece of trade rich with business lessons. This past summer I made a point of stopping at those I spotted. I learned that the exchange of flavored water for a few coins may appear simple but represents aspects critical to business. If you look closely the humble stand provides a mini-MBA covering funding, strategy, production, marketing, customer service and reinvestment. It all starts with thinking about the lemonade stand “industry” which is:

Fiercely competitive with low barriers to entry

Both seasonal and weather dependent

Reliant on a commodity, easily substituted product

Seemingly undifferentiated overall

Unattractive from a revenue and profit perspective

For each of these conditions, one has to tailor the business to succeed. As daunting an industry as it is this has not stopped thousands of young people from starting them up each and every summer. Here are five lessons for your children and your own enterprises.

Delight with a Superior Product

Of course, we will all part with our loose change to help out a tiny entrepreneur. But if the lemonade is tart, weak, overly sweet or thimble size we will force a smile, wish them luck and complain about the product back in our car or as lemonade-stand_5we cycle away. This reaction is no different from any other disappointing purchase. I have gone back to a stand twice if the lemonade is legitimately pleasing in taste.

A superior product differentiates, communicates care and quality, provides value in the exchange, engenders loyalty and prompts word-of-mouth.

Pick a Smart Spot

Location has always been critical to business. As a child, I ran a stand at my home in Winnipeg, Canada situated on a quiet street and later that day while dumping the warm, unsold liquid treat down the drain vowed to learn from the experience. The next time I loaded up my wagon, trundled half a mile, and set up outside the gates of The Tuxedo Golf Club. With that experience I learned another lesson – have adequate stock. My location was so good that the would-be Tiger Woods cleaned me out fast.

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David’s Tea: The Brand and Business

This originally appeared in Sparksheet.

Tea is gaining grounds in North America’s coffee culture and David’s Tea is looking to expand and modernize the millennia-old industry. Jeff Swystun examines the standing power of this bold brand as it steps onto the stock exchange and transitions from niche to mass market.

The bold sign, in cheerful teal and green, draws your attention. Curious, you peak inside and are greeted by a clean, bright environment and pleasing aromas. The aisles and displays resemble a cosmetic store. The goods are presented as precious keepsakes; the packaging suggests there is an item among them uniquely for you. A fresh-faced staffer attentively waits to answer any questions.

Welcome to the new world of tea.

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David’s Tea was founded in 2008. A newcomer to the centuries old tea business, but one confident that it could make the product relevant to the modern consumer. The opportunity is great, but the company also faces significant challenges. It must convert coffee drinkers, have smart distribution, and battle a competitor with deep pockets while keeping investors happy.

The Category

Tea has been a beverage of choice for centuries, since its origins as a medicinal elixir in Shang Dynasty China. The British famously popularized tea production for the western drinker and through trade took it global. The East Indian Tea Company was so successful it became a synonym for “monopoly”.

Tom Standage, author of The World in a Glass: Six Drinks That Changed History, writes, “Englishmen around the world could drink tea, whether they were a colonial administrator in India or a London businessman. The sun never set on the British Empire—which meant that it was always teatime somewhere.”

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What’s the Story?

Telling Tales: Using Narrative Psychology in Branding

Let me tell you a story. It’s a bit about our past. A bit about our future but more importantly, it concerns what is happening right now. It is also a story that nears 2,500 words because our complex world cannot be dumbed downed, reduced to a vague tagline, summed in a 140 character tweet, or captured in an oversimplified to-do list. True learning and understanding requires time and effort so heat the kettle or uncork a bottle and enjoy. Lastly, it was a dark and stormy night…

With that compelling lead-in, we hope you will read our entire paper on the evolution of storytelling in branding and marketing. Get it here SC_Storytelling.

Story

Looking Back on Mad Men

Our paper originally appeared in The Agency Post, Marketing, and Sparksheet. It was also featured on Flipboard in Advertising.

As the last season winds down, Mad Men is being examined for its impact on television and its reflection of society both in the period it is set and our current day. We invite you to enjoy this work which is rife with observations, insights and images that will delight fans of the show, pop culturists, history buffs, along with all those who enjoy marketing and advertising.

Get it here … SC_LookingBackonMadMen

mad-men

Marketing’s Golden Rule

There is evidence that people enjoy a series of articles versus an advertisement. In fact, 70% say content marketing makes them feel closer to the sponsoring company, while 60% believe it helps them make better product decisions (Roper Public Affairs). This has given rise to “content marketing”. According to The Content Marketing Institute it is “an approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly-defined audience — and, ultimately, to drive profitable customer action.”

What is amazing about content marketing is the impression that it is new. Apparently, content marketing’s purpose is to attract and retain customers by consistently creating and curating relevant and valuable content with the intention of changing or enhancing their behaviour. That has been the intention of good, old plain marketing since mankind first traded.

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