Archive for the ‘Retailers’ Category

Vineyard Vines Tie Company

Saturday, June 30th, 2007

Today’s Brand Garage is not a fix-up job; we’ve pulled this one into Bay No. 4 over there just to admire the chassis of this well-oiled marketing machine: Vineyard Vines tie company. First, let’s say one thing about Vineyard Vines: They’re comfortable. They’re like an old friend. Their website feels like communication from people you know well and want to hang out with. It’s like family. This emotional intimacy with customers is their glue.

Not only do they talk about their new products and new stores and business stuff, they talk about fishing trips and the company hockey team and how much money four of their people raised by walking to fight breast cancer. Their casual pictures look like photos you might have on your refrigerator. Their verbal style is like a neighbor coming by to tell you about a great recipe. They have a niche and fill it windowsill to wall socket. (more…)

Circuit City

Tuesday, February 27th, 2007

Jan 2009 Update
NOTE:  Since this Brand Garage was written about two years ago, Circuit City has fallen to the ranks of the bankrupt. As of this writing, they are liquidating their stores and approximately 34,000 people will be unemployed. Clearly, Circuit City is not alone in the recent downfall of retailers. 2009 shows little promise for companies that were already struggling even when the economy was good. This quote from one story about the Circuit City closing is telling and a compass for future companies whether the economy is good or bad:

“Shareholders are likely to receive nothing, as is typical in bankruptcy cases. It was unclear what would happen to the company’s 765 retail stores and dealer outlets in Canada.

“Very, very sad,” said Alan L. Wurtzel, the son of company founder Samuel S. Wurtzel, and the chief executive from 1972 to 1986, board chairman from 1986 to 1994 and vice chairman until 2001. “I feel particularly badly for the people are employed or until recently were employed.”

Wurtzel has previously said Circuit City didn’t take the threat of rival Best Buy Co. seriously enough and, at some points, were too focused on making a profit in the short term instead of building long-term value.”

2007 Update
Last year we had Circuit City in the garage, and talked about how Best Buy was basically cleaning up sales in the category while Circuit City languished. Looks like things have changed for the better for the Big Red Ballers. First, they made quite a few substantial changes: A new president, fresh from Best Buy; new marketing management; a new ad agency and processes jiggered to fit the market’s retail variables. They still trail Best Buy by a serious chunk of change, but same store sales have risen 4.2% from December 2005 to December 2006. By contrast, Best Buy’s same store sales rose 7%. The BB’s are still king. (more…)