On October 23rd, 2014, we updated our
By continuing to use LinkedIn’s SlideShare service, you agree to the revised terms, so please take a few minutes to review them.
LONDON METROPOLITAN UNIVERSITY MN3006C WEEK 13 - 2011 Tutor: John Threfall _______________________ Henrik Olsen Maelum 10017001
0 TABLE OF CONTENTS 1.1 The Case Analysis 1 2.1 Article Summaries 2.2 Creativity 2 2.3 Innovation 3 2.4 Product Design 4-7 2.5 Entrepreneurship 8-9 3.1 Career Outlines 3.2 Bjorn Kjos 10 3.3 Richard Hayne 11 3.4 Natalie Massenet 12 3.5 Nick Robertson 13 4.1 A Creative Review 14 5.1 References 15
1 1.1 The Case Analysis The paradigm shift in online shopping This tool is still new for this business sector, but is seen more often at different online retailers. This video gives the customer a clearer idea of how the clothes hang and move on the body Online retail has been Britain’s economic success story of the and helps them decide if they want to purchase the item. decade (Matthews, 2008). According to Marketing week (Powerhouse Photography, 2011) According to Power House (2010) online retail sales increased 22% over the past year, Photography (2011), a well-known photography and film the highest rate of increase for over two years. Online company based in Leeds, web video in the world of high shopping has exploded over the last 10 years, and many fashion is taking off. wonder if it will ever replace the high street? (White, 2007) Net-a-Porter another successful e-tailer that uses video to present their products launched their own TV-station in January There has always been a certain risk by purchase goods (Hoskin, 2011). On their new TV-channel customers can view, online, and a bad experience can make you not want to shop shop, browse and comment on 4 different channels. with a retailer again. This area will always be a challenge for a retailer, but this business sector is working hard to improve Net-a-Porters multi channel expansion can be viewed online, and to keep their customers. (White, 2007) mobile devices and on the iPad. Net-a-Porter already has a shop-able magazine, but have now taken the next step with A trend that is evolving is video as way to enhance the shop-able TV. This is an innovative turn, which will be shopping experience. A trend that looks like it develops into a interesting to follow. (Hoskin, 2011) paradigm shift for the players within online retailing. ASOS, one of United Kingdom’s most successful online retailers, has The use of online videos within online fashion retailing will introduced video as a shopping tool on their website. probably grow as the big players add it to it to their websites, Customers can then look at booth pictures, and they can see a and followers will always adapt to a winning formula when video with the same model wearing the clothes, walking online videos mature, and customers react positively to it. around for 15 seconds. In the video ASOS has on each (Hoskin, 2011) According to Chris Hoskin (2011), as online product, they display a professionally shot catwalk style video, video matures, he thinks trends towards HD and potentially 3D with added background music, which adds to the experience formats can be the next “big thing”. and depth of the ‘ASOS lifestyle’ customer experience (Hoskin, 2011) Only the future can tell us that, we just have to wait and see.
2 2.1 Article summaries 2.2 Creativity Mr. Shames then tells about his personal experience with Groupon, and says its everywhere, in his inbox every The Groupon Phenonemon By Adam Shames (2011) morning, and is beeping on my phone with latest updates thanks to an app on his smartphone. And he refers to a story In this article about Groupon, the author Adam Shames recently happened on the Daily Show with Jon Stewart, where writes about how it started and about the founder behind it, he examined President Barack Obama´s latest budget cuts Andrew Mason. attempts. “From now on when we buy office supplies,” he mock-quoted the President, “we will join up with Canada and Groupon, a Chicago based company. The founder Andrew Mexico to look for deals on Groupon.” Mason has taken the old idea of clipping coupons and made it into a company that has according to Mr. Shames When a creative idea like this turns into an innovation, and become a new matchless paragon of business innovation. then are successful, you will always find people trying to twist It moved quickly, after winning a Chicago innovation award the idea, and make money on it themselves. Mr. Shames in late 2009, when it was less than a year old. It expanded mention this and says that the viral rise of copycat companies so quickly that Fast Company Magazine recently named has reached absurdity levels, not just limited to those offering Groupon as the No. 5 “most innovative company” in the local deals of the day. This is confirmed with the example of world. Fast Company magazine described Groupon as “a WeedMaps, when the founder Justin Hartfield says “It’s like savior for small businesses” and “the most exciting thing to Groupon, but with a twist,”. WeedMaps offering deals, but happen to retail since eBay.” Groupons creative business with medical marijuana, and was mentioned in an article in model, is based on getting a large number of people to buy Fast Company magazine recently. (Fast Company, 2008) discounted vouchers to different restaurant and local attractions Mr. Shames points out that, “Groupon has become a the start- up model of the kind of innovation political and business Not bad for a company that started in 2008, and have leaders refer to: a creative idea with real value”. Which nearly operated in 3 years. according to Mr. Shames has in this case has lead to impressive moneymaking, job creation and investment hunger. In February 2011, Illinois Governor Pat Quinn choose Google recently tried to buy it for $6 billions. Groupon co-founder Brad Keywell, to help find creative ways to boost the economy, by being a part of a new Innovation Counsil. The primary founder Andrew Mason, has become the poster boy for innovation, quoted often, pictured playfully and suddenly a high priest of all that’s creative.
3 2.1 Article summaries 2.3 Innovation “It’s much more likely that the mobile money revolution will entail a lot of hard work—proverbial trench warfare.” Mobile commerce evolving from early innovation to M-commerce has developed in three stages according to mainstream adoption: Javelin By Dan Butcher (2010) Mr. Butcher. First stage was when consumers were able to access This article written by Dan Butcher, who is an associate financial services via SMS or WAP/browser, and editor on Mobile Commerce Daily and Mobile Marketer, download different applications. is about how mobile commerce is turning from an Second stage, gave consumer the possibility to monitor innovation into a mainstream adoption. their money via alerts, informational mobile banking, It was Jim Van Dyke who is a founder & president for letting them view balance, make deposits, and find the Javelin Strategy and Research, who said that he believes closest ATM. that M-commerce is moving into the mainstream market. Third and last stage which have happened the recent Just few years ago M-commerce was something that few years, and is still evolving is mobile bill pay, mobile P2P used and were aware of, but after the introduction of payment, mobile contactless payments, mobile deposit smart phones, and especially recent years where smart capture, mobile enrollment, payment wallet, payment and phones are more accessible for people. Because of that infor mational transaction wallet and payment, M-commerce has been discovered and optimistic signs informational transaction and ID/authentication wallet. for mobile commerce is that banks are offering mobile financial services, consumer curiosity, the smart phone Dan Butchers refers to a survey done by InStat Technology expansion affordable data plans from the mobile carriers, in December 2009. The main findings in this survey were etc. Businesses invest money in this area because of its that 64 percent of Americans are interested in using a potential, and move more and more services into M- mobile wallet for commerce. He summaries that Americans commerce. Jim Van Dyke said that we won’t see the make extensive use of credit/debit cards, and mobile adoption curve of PayPal, which is never likely to be penetration is high, as is the usage of mobile data replicated, but “mobile money” will be a revolution, and applications. concludes that it will be death by a thousand cuts. The last part of this article talked about mobile marketing Mr. Van Dyke explained “mobile money” as mobile and mobile payments. Dan Butcher believes that mobile commerce/shopping is buying via mobile, often for marketing is attracting cross-selling and keeping customers mobile digital content or virtual goods. He continues via mobile devices. Mr. Van Dyke confirms this and adds with, “Mobile money” has evolved from simple access to that last year consumers received 10 percent more mobile money monitoring to transactional mobile banking and marketing messages from the telecom industry compared payments. to the previous year.
4 2.1 Article summaries Product design Top 10 Royal-Wedding Souvenirs by William Lee Adams, Time Magazine The Royal wedding is coming up next week, and Time Magazine has looked at the incredible options of souvenirs that have been launched in stores the last months. Here is a summary of some of these options picked out by William Lee Adams. Tea bags Author Willam Lee Adams points out that Brits drinks tea by the gallon, butt his great product design is actually done by Germans, a Hamburg based design labell. They have designed the ”KaTea & William” greeting card, which includes two commemorative tea bags. The one tea bag you can see Prince William flash all his military garb and grins, and on the other Katie wears a wedding gown and you can not miss her big sapphire engagement ring that once belonged to Princess Diana.
5 2.1 Article summaries Tea towels Tea will of course be served in a British wedding, and there will be spilling, and what else can you use to clean this up? Tea towels. Supermarket chain Asda, have already planned "Royal Dry-ness" tea towels. Well-known department store John Lewis are offering these tea towels (picture), with a crown wedding date, and a William and Catherine logo for $10. The Official Royal-Wedding Coin Royal Mint have issued this Royal-Wedding coin, which is designed by a the British sculptor Mark Richards. Author William Lee Adams do not think the coin is offering an accurate likeness of the future king and his Kate. The coin is valued at $8, but retails for $16, which Mr. Lee Adams believes is to cover the cost of production.
6 2.1 Article summaries Crown Jewels condom This excellent souvenir is manufactured by Crown Jewels, a London based company, that describes itself as "the proud purveyor of an exclusive range of heritage love sheaths.". Their marketing slogan is "Like a Royal Wedding, intercourse with a loved one is an unforgettable occasion,” Kiss Me Kate Beer The Castle Rock Brewery in Nottingham have gone the extra mile to celebrate the Royal-Wedding by brewing a “Kiss me Kate” beer. Master Brewer Adrian Redgrove announced following,”a pale beer that will be elegant, tasteful and British to the core”, and well balanced with "some hops, some bitterness and sweetness coming through." The “Kiss me Kate” beer will be released in April, and will be a limited collection of only 100 bottles.
7 2.1 Article summaries . Sick bags British graphic designer Lydia Leith, have designed these practical souvenir sick bags. She asked "Did you get caught out back in 81 when Charles and Diana got wed?" And the answer was "Dont let it happen again!". The bags cost $5 each, and the couple is wearing the clothes they wore when they announced their engagement. Designer says on her blog “the bags were just for fun, a sort of antidote to the hysteria surrounding the wedding”. Unofficial Royal-Wedding Plates William Lee Adams has found these plates that are a bit different from the official wedding plates. He says, “Design enthusiasts, antiroyalists and Britons experiencing wedding fatigue would rather have something rebellious”. London based KK Outlet has given it a chance, and has designed these 6 plates. The plates cost $120 for the entire collection, or $32 for your favourite one.
8 2.1 Article summaries 2.5 Entrepreneurship Massenet started her career in Womens´s Wear Daily, One-click wonder: the rise of Net-a-porter By Eva also known as WWD. Her goal at that time was to one Wiseman for The Guardian (2010) day become a magazine editor. To Wiseman, Massenet said that "I hadnt walked away from being editor-in-chief Net-a-Porter, the online fashion retailer for women of a magazine – Id just created a magazine for the 21st founded by Natalie Massenet, celebrated their 10th century instead, a hybrid between a store and a anniversary in 2010. magazine that was delivered digitally." According to author Eva Wiseman women in only By the time Natalie Massentet wanted to start Net-a-Porter bought clothes they had seen, touched and tried on for in 2000, which was a difficult time to start an online 10 years ago. Net-a-Porter changed this, and today business according to her advisers, and they promised her millions buy their designer clothes here. Wiseman also to fail. But Massenet did listen to them, and got to friends says, “Massenet beat the high street”. Net-a-porter is backing her. In 2004 Net-a-Porter was profitable, and her currently valued at £350m. story is one of the biggest success stories in online retailing. On of Net-a-Porter secrets to success have been there box. A black wrapped as gift that every customer get Massenet’s team of 15, started in a small flat in Chelsea. when they purchase something from their webshop. Here did everyone where working from and clothes was Wiseman describes how founder Massenet became an everywhere, including their luxury quality box. Massenet entrepreneur. It all started when she picked up a leaflet in says, "They were the same luxury quality boxes we have a Barclays bank. Where it said, “Are you an today," entrepreneur?” At that moment she was a stylist and fashion writer for Tatler. But her entrepreneur instincts In 2000 when Net-a-Porter first started to get brands were intact, Wiseman writes. Before the launch of Net-a- convinced, they struggled and had a hard time Porter, Massenet had plans for a chain of coffee shops, explainging that they did not have a store. Today every but she decided to listen to some business experts who high-end fashion brand want to be in their webshop, and advised her to not do it, and sait it was no money in it. it is according to Wiseman a big deal to be accepted by Starbucks did it instead months later. Net-a-Porter. It gives brands credibility and higher their value Continues on next page..
9 2.1 Article summaries According to Wiseman e-tail sites continue to grow. And she gives an example with ASOS, that reported £20.3m profit on sales of £223m. E-tail sites continue to grow. In June Asos reported £20.3m profit on sales of £223m, a figure thats expected to rise by 60% this year. “Net-a-Porter and ASOS´s popularity lies in their immediacy”, says Rita Clifton, chairman of the global brand consultancy Interbrand. Clifton says furter, "Their technology has developed from the plonky early fashion sites to make the whole shopping experience very fluid and vivid. Its been said that the last thing people would buy online is fashion, but they have proved that wrong." In 2009 Massenet launched a sister e-tail site, called TheOutnet. This site sells stock from previous seasons at a discounted price. Latest addition is Mr Porter. Massenet says, "We have a ready-made customer base for our mens business," she says. "100% of Net-a-porter customers have a man in their lives in some capacity and 59% are married or living with a partner." Wiseman ends her article, asking the question “Does the success of sites such as Net-a-porter signal the end of the high street?”
10 3.1 Career Outlines Bjorn Kjos Bjorn Kjos is a Norwegian entrepreneur, who is owner and executive director for the airline, Norwegian Air Shuttle. He founded the airline in 1993, and started with domestic flights, before he in 2003 decided to take it to the next level and compete with the big players in the industry. Norwegian is today Scandinavia’s second biggest airline, and has flights across Europe, and to Northern Africa as well as the Middle East. Bjorn Kjos is a charismatic leader, which have got several prices for his work. Recently he was appointed as In April 2011 he was criticised in the media by several Ernst & Youngs Entrepreneur Of The Year in 2009, in media experts, because of an e-mail that he sent out Norway. (Marketing and leadership, 2009) internally. In this e-mail threatened to leave the company, if this conflict with the pilots ended soon. (Loennecken, His leadership style is very different from other companies 2011) Kjos which is an also a pilot, have handled this in Norway. He is more or less the face of Norwegian Air situation badly according to communication expert, Shuttle, and if I can compare it another company that Morten Helliesen. This happened last week, and no news would be Virgin Airline, and Richard Branson. is released from Norwegian Air Shuttle. Mr. Kjos was contacted this week, and had no comment. The Norwegian airline can have an unsure future ahead.
11 3.1 Career Outlines Richard Hayne Richard Hayne, a former hippie from Pennsylvania, USA, and number 317 on The Forbes 400 Richest Americans in 2009 (Forbes.com, 2009), created when he still was in school the brand Urban Outfitters, a clothing brand for young people that have developed into 341 stores across USA and Europe. His enterprise consists of Urban Outfitters, Anthropologie, Free People, and Terrain Garden Center. The last expansion Terrain Garden center, was opened because of Mr. Hayne´s interest in gardening recent years. (McCutcheon, 2008) Richard Hayne concentrated the first year on the younger customers. He developed the brand and opened stores in Dick, whick is his nickname, once described to Lauren a fast phase. In October 1992, he opened a new store McCutcheon from Phillymag (2008) he is in ”a business called Anthropologie. He wanted to focus on the older, where he is pleasing women,”. and more established shoppers living in the suburbs of major metropolitan areas. (McCutcheon, 2008) Hayne has been in charge since everything started, and it has been some incidents he probably would be Next step for Mr. Hayne was to go public, and that without. In 2008 a T-shirt with the printed statement "I happened in 1993, at $18 a share. He used the capital Support Same Sex Marriage,". Which was clearly a hot- to continue he strategic plan of growth. (McCutcheon, button item in the Proposition 8 state. The t-shirt was 2008) taken out from stores a week later in California. Mr Hayne which is a right-wing Republican, and he is In 1998 Urban Outfitters got their first European store in known for supporting senators who vote for legislation London, and Anthropologie opened their first in march against gay marriage. (Nymag.com,2008) 2010. (Arndt, 2010) Currently they have 24 Urban Outfitters stores and 2 Anthrpologie stores, but according to Business Week (2010) the company intends to pick up the pace to get to 100 European
12 3.1 Career Outlines Nick Robertson The founder of the e-tailer success and chief executive of Britain’s biggest online fashion retailer, ASOS, Nick Robertson is a man without any special education, but with a lot of connections, that managed to raise £2.4m from his brother and wealthy friends in Monaco in 1999. (Porter, 2008) When he worked as a media buyer in 1996, he early understood the relationship between celebrity endorsement and brands. Robertson also struggled for several years, and he said, "It So in 1999 when we started As Seen On Screen, the was pretty nasty. But every week, every month, every year, idea was to sell products that people associated with we saw sales going up.” celebrites. For example Ray Ban glasses, which sales exploded after Tom Cruise used them in Top Gun. (Porter, Last year ASOS expanded, and opened a US online 2008) shop. The expansion has been successful. ASOS US sales were higher that UK sales in the fourth quarter. ASOS started to copy celebrities looks, and the sales increased every year. Sales grew from £400,000 in James Thompson from The Independent (2011) says, “Its 1999 to £1.5m by 2001. (Porter, 2008) booming growth shows little sign of slowing.” Nick Robertson said to The Independent, "The US will be at least as big as the UK in the medium term, which is very exciting”. (Thompson,2011)
13 3.1 Career Outlines Natalie Massenet Natalie Massenet is the founder of the Net-A-Porter e-tail empire, which sell luxury clothing online. Weekly two million people log in to the site and their average spend is £500. (Neel, 2010) Chief creative officer of Burberry, Christopher Bailey once said, ”Natalie possesses a remarkable ability to feel the moment, and to understand peoples needs and desires before they know them," (Walker, 2011) According to Harriet Walker (2011), journalist for The In 2009 she was got an MBE award, for her dedication Independent, the reason behind Massenets success is and service to the British fashion industy. She was also that she stared out at Womens Wear Daily and in 1997 named as Harpers Bazaar Innovator of the Year in 2010. she moved to London, to be close to her husband, and to 2010 was the year when Net-a-Porter could celebrate be a part of the Tatler magazine team. This was where their 10th birthday, and that they got their millionth she got experience as fashion editor. customer. (Walker, 2011) Last addition to Massenet’s Empire is Mr. Porter, which was Massenets goal with Net-a-Porter was to create an online launched in March 2011. Mr. Porter is an online store for magazine, that customers could buy directly from. menswear with the same level of luxury and exclusivity. (Walker, 2011) (Harper’s Bazaar,2011)
14 4.1 A Creative review The Expressionist – Michael Wolff Appreciation is his second muscle. He mention how joyful things can be, how people express themselves, how he appreciate colour, and how he uses it to package him self, and how this show who he is. Imagination is the third and last muscle he needs in his job. He cannot use this muscle with out having the two first muscles intact. Michael Wolff is a designer and creative advisor with forty years of experience. He is co - founder of one of the world’s most iconic design companies, named up after him self, Wolff Olins. Mr. Wolff is recognized today as a leader in thinking on brands. (Norsk design, 2011) In Mr. Wolff world Brand is really a way something is like In the video produced by Intel Visual Life Mr Wolff talks for future reference. How do you package things, how do about his approach to looking at the world, including the you make your brand look so people can take it, chose it muscles of curiosity, appreciation, and imagination. and want it. This is brand-building, and how brands work on creating their own brand identity. Michael Wolff is a very interesting human being with a very positive and intelligent way to look at things. He Micheal Wolff sees seeing as a muscular exercise, and he explains that he has three muscles that he cannot live ends the film by expressing that he is obsessively interested without. First muscle is curiosity. He calls it questioning. in everything. Which he gives us a good picture of when He likes to question everything. Why are things like that? he talks. He values knowing little about everything, so he can look at things with fresh eyes. See the full video here: http://www.youtube.com/watch?v=BTfAzjBTokc
15 5.1 References Arndt, Michael (2010) Urban Outfitters Grow-slow strategy in Europe (Online) Access at: http:// www.businessweek.com/magazine/content/10_09/b4168056809288.htm Business Week (2010) Urban Outfitters Grow-slow strategy in Europe (Online) Access at: http:// www.businessweek.com/magazine/content/10_09/b4168056809288.htm Butcher, Dan (2010) Mobile Commerce Daily.com: Mobile commerce evolving from early innovation to mainstream adoption (Online) Access at: http://www.mobilecommercedaily.com/2010/03/26/mobile-commerce-evolving- from-early-innovation-to-mainstream-adoption-javelin Forbes (2009) Forbes.com: Richard Hayne (Online) Access at: http://www.forbes.com/lists/2009/54/rich- list-09_Richard-Hayne_TNTN.html Harper’s Bazaar (2011) Harper’s Bazaar online: Mr.Porter launches today! (Online) Access at: http:// www.harpersbazaar.com/bazaar-blog/mr-porter-launch-022211 Hoskin, Chris (2011) Salmon.com: Video saves the Ecommerce stars (Online) Access at: http://blog.salmon.com/ index.php/2011/02/video-saves-the-ecommerce-stars/ Loennecken, Fredrik (2011) E24.no: Kjos er svekket (Online) Access at: http://e24.no/jobb/kjos-er-svekket/ 20049173 Marketing and leadership (2009) Online book. Access it: http://markedsforingogledelse2.cappelendamm.no/ nyhet/vis.html?tid=594238 Marketingweek (2010) Online shopping increases 22% (Online) Access at: http://www.marketingweek.co.uk/ disciplines/digital/online-shopping-increases-22/3014850.article Matthews, Dan (2008) Launchlab.co.uk: What makes ASOS so darn good? (Online) Access at: http:// www.launchlab.co.uk/article/Business-Blog/What-makes-ASOS-so-darn-good/421 McCutcheon, Lauren (2008) Phillymag.com : The Antropologist (Online) Access at: http://www.phillymag.com/ articles/the_anthropologist/page3
15 5.1 References Neel, Julia (2010) Vogue: Natalie Massenet (Online) Access at: http://www.vogue.co.uk/biographies/100729- natalie-massenet-biography.aspx Nymag.com (2008) Nymag.com: Urban Outfitters yanks Same-Sex Marriage T-shirt From Shelves (Online) Access at: http://nymag.com/daily/fashion/2008/12/urban_outfitters_yanks_same-se.html?f=most- commented-24h-10&imw=Y&f=most-viewed-24h5 Porter, Charlie (2008) The Telegraph: ASOS: net gain (Online) Access at: http://fashion.telegraph.co.uk/news- features/TMG3453897/Asos-net-gain.html Fast Company Magazine (2011) Most innovative companies (Online) Access at: http://www.fastcompany.com/ most-innovative-companies/2011/profile/groupon.php Powerhouse photography (2011) The success of ASOS through catwalk videos (Online) Access at: http:// www.powerhousephoto.co.uk/the-success-of-asos-through-catwalk-videos-1444.html Shames, Adam (2011) Entrepreneurthearts.com : The Grouipon Phenonemon (Online) Access at: http:// blog.entrepreneurthearts.com/2011/04/07/the-groupon-phenonemon/ Thompson, James (2011) The Independent : Booming overseas sales keep Asos on growth trail (Online) Access at: http://www.independent.co.uk/news/business/news/booming-overseas-sales-keep-asos-on-growth- trail-2267406.html Time (2011) Time Magazine online : Top 10 Royal-Wedding Souvenirs (Online) Access at: http:// www.time.com/time/specials/packages/article/0,28804,2059395_2059394_2059375,00.html Walker, Harriet (2011) The Independent: Natalie Massenet : The queen of e-tail (Online) Access at: http:// www.independent.co.uk/news/people/profiles/natalie-massenet-the-queen-of-etail-2212529.html White, Brian (2007) Online retail spending set to explode even further (Online) Access at: http:// www.bloggingstocks.com/2007/05/25/online-retail-spending-set-to-explode-even-further/ Wiseman, Eva (2010) The Guardian.co.uk: One-click wonder: the rise of Net-a-Porter (Online) Access at: http:// www.guardian.co.uk/lifeandstyle/2010/jul/11/natalie-massenet-net-a-porter-internet-fashion