In a multichannel environment, relationships with customers are more important than ever to build brand, according to Jeffrey P. Kleinfelter, senior research analyst & managing director, U.S. Bancorp Piper Jaffray.
At the DMA’s Catalog-on-the-Road Day in Cambridge, MA on Thursday, Kleinfelter discussed the strategies of several multichannel marketers his firm follows.
Chico’s does a good job of driving store traffic with coupons in its catalog, and Target was of the pioneers of strong weekly newspaper circulars, he said.
Old Navy began using circulars in 2002 as a way to differentiate itself from its sister retailer, The Gap. It successfully repositioned itself as a discount destination with the four page circulars, which currently reach 22 markets accounting for 50% of the chain’s sales, said Kleinfelter.
Limited Too has used a magalog to help reach the “tween” audience in malls and online. This audience is particularly desirable, as these pre-teen girls will soon be teenagers who spend a disproportionate amount on fashion, he noted.
J. Jill is a company in transition, as it works to balance the cannibalization of its direct business by its burgeoning retail presence. Likewise, Abercrombie & Fitch is expected to soon announce how it will reposition its marketing strategy now that it has scuttled its catalog operation that had accounted for $35 million of the company’s marketing dollars, Kleinfelter noted.
While his company does not follow Sears, Kleinfelter noted that while the acquisition of Lands’ End was a good way to jump start Sears’ apparel business, a “boutique” approach to grouping product might have worked better than spreading goods through the store.
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