Tuesday, 14 April 2009

Targeting your consumers through appropriate distribution

I read this note a couple of days back (i am sure it was the businessweek online, but i am unable to trace a link to it and put it here for perusal) about HP (the computer guys) using different types of retail outlets to get closer to their customers.

Eg: a fashion/ clothes store for young women. HP places its products here- the ones that have fancy prints all over- and allows the women to use the hardware and software to try various outfits "virtually".

We think this is a wonderful idea. Ritu and I are not "mass market" marketers. We like to think about goods that cost upwards of USD50-75 a unit, hence cause consumers to think about their purchase. For brands that operate here, we recommend complete ownership of the distribution channel. i.e go online or have your own exclusive stores. Retailers take away control. If yours is a product that requires consumers to be educated, do it yourself. No retail.

What we like about HP's idea is that it allows you to be present in a wider range of stores, closer to the consumer that you want to reach. The consumr you want to reach.

Targeting your distribution. That's an exciting idea. We talk of targeting communication al lthe time....this is a step further.

And you're not keeping your entire range there. Just a relevant product that gets consumers excited about computers, feel at ease with them, and check out these new machines from HP.

What other applications can i think of? Sampling coffee in a high end retail store...where the lady (or gent) has to wait while the better half is getting the fitting correct.

Its an intresting line of thought and we will reflect more on this.

Ritu and venkat

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