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So as you read the next segments, keep all this in mind. If you still can t decide, call us.
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Sometimes it s the clients at the other end of the food chain those who are often overlooked by most organizations who may be the best way to reposition your business or build a new brand. The check cashing industry, for example, is one of the great unknown moneymaking financial institutions in our society. Check cashers, with offices in inner cities where banks fear to tread, cash the checks of individuals who lack banking accounts. Check cashers deduct part of the check a healthy part as a fee, and their clients get the rest of the cash. In dealing with the lower part of the financial services market, check cashers have expanded their offerings to include electronic bill paying, lending, and a host of additional and profitable services. Retailers, too, have begun to dip their toes in the waters of the less affluent. The Yamada Group, an unconventional department store and supermarket chain in Brazil, offers its credit card to poor Brazilians who toil in the Amazon s vast off-thebooks economy. Yamada cards are good only in
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Yamada stores, which is just dandy with the fishermen, coconut vendors, gold miners, and street hawkers who make up its customer base. And the business is equally fine with Yamada, which reports lower-than-normal delinquency rates and higher-than-normal profitability. According to the chain s managing director, Yamada s poor clients are so appreciative of their credit cards that they pay promptly.
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Ireland s C&C Group successfully repositioned its cider drink Magners Original as a premium drink in the British market. Cider s a cool brew now, but it wasn t always thus, C&C s chief executive told Time magazine. It was thought of as a product consumed by vagrants on park benches. * The cider was commonly sold in large plastic bottles at discount prices, bolstering its cheap image. Struggling with stagnant sales in the 1990s, C&C decided that the dowdy cider needed a makeover. The key ideas in its repositioning:
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* Thomas Grose, How Do You like Them Apples Time, May 17, 2007.
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Cut the alcohol content to 4.5 percent (about the same as most beers). Intensify the apple flavor. Stop making it available on tap in pubs and bars. Junk the plastic jugs and use fancy pint bottles. Jack up the price. Most important, market the reformulated drink as intended to be poured over ice, whereas traditional ciders are served at room temperature. Putting the cider in bottles was a smart move, not only because C&C could charge more, but also because consumers could now hold the Magners brand in their hands. (It s much harder to build a brand with a draftonly product.) The idea of serving cider over ice came from its Irish heritage. It was based on the simple fact that there wasn t great refrigeration in many Irish pubs, so consumers naturally poured it over ice. A blurb on the new bottle urges pubkeepers and consumers to pour the cider over ice. Within a year, the Magners brand increased its sales by 260 percent.
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existing distribution arrangements or your image. Here are some examples: In 2009, a private equity firm bought the bankrupt Linens N Things business and transformed it into an Internet-only operation. It still offers 200,000 products for the home, but now its overhead costs are lower as it competes with brick-and-mortar players like Bed Bath & Beyond. Nuprin was an also-ran brand of ibuprofen until it went the private-label route. The name was sold to the CVS pharmacy chain, which is now its exclusive retailer. Tupperware was a party-only player for decades. But now that more and more households have two adults working outside the home, Tupperware has to party a little harder. Its storage containers are now available in Target stores. Ditto for Avon cosmetics, which is now calling on customers in department stores. Even the venerable Fred Rogers, creator of the kids TV show Mister Rogers Neighborhood, found a new way to distribute his gentle message. He introduced an interactive program on the PBS Web site and a series of children s stories for www.mister rogers.org. Hey, it s a beautiful day in the cyberhood.
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