I think I can safely assume that you have all shopped in Kmart. Have you noticed the changes that have happened over the last few years in the stores and in their advertising and catalogues? Let’s take a look at the latest Kmart direct mail catalogue and what caught our eye:
1. Styled photography in home environments
2. Chic, hip on trend products
3. Everyday low prices
By placing the products in a real life setting customers can picture how it would look in their home. Not everyone has the flair to style themselves but know what they like when they see it. It is the perfect way to cross sell and increase sale amount for each customer. Having the products in situ provides a sense of scale and provides an indication of a product’s actual size. The styled photographs also provide great images for viral sharing on social media.
Printed catalogues have made a come back in the last couple of years. Particularly styled catalogues that resemble lifestyle magazines. Digital versions of the catalogue can be used for viewing and shopping online.
Compare recent Kmart catalogues to a couple of years ago.
Eight years ago who would have thought that Kmart would be trendy. Back in 2008 Kmart was lagging behind more successful rivals like Target and Big W, and despite turning over $4 billion dollars a year the company was making zero profit. On the brink of bankruptcy for years, ex-McDonald’s Australia chief, Guy Russo, was brought in to revive the brand, and what he did is almost miraculous: from zero profit to $289 million EBIT at the end of 2014.
In a nutshell these are the major changes the company made:
- Drastically reduced product lines from 50,000 to 12,000 in turn streamlining logistics, merchandising and stock control
- Sourced direct from manufacturers and mostly stocked their own brand products – cutting out the middleman and many of the big brands
- Changed pricing strategy from discounts and promotions to everyday low pricing
- De-cluttered stores – broaden aisles, remove the dump bins, new in-store signage
- Narrowed the target market from everybody to target women, specifically mothers
- Focused on fashion and homewares
- Conducted extensive target market research to establish a brand strategy that appealed to emotions and desires to live within your means
Such an amazing turnaround. Changes that were considered very brave and bold have paid off.
The start of a new year is a great time to take a fresh look at your business.
It’s time to be inspired.