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Case Study 1

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Teleflora

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Steinhausen

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Realtor.com

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Teleflora

The Challenge

How to take a medium size national floral wire service that for more than a decade had been stuck at 3rd place in sales, memberships (12,000 florists) and brand recognition – far behind famed, 100 year old industry leader, FTD (22,000 member florists) – and make it #1 in less than 2 years.

The Solution

#1: Rather than just market floral bouquets like the other wire services, Teleflora would stand out by creating the concept of “flowers in a Teleflora branded gift”. Instead of sending a generic floral bouquet on mother’s day, now you could send a designer floral bouquet nestled inside a ceramic teapot with a licensed Thomas Kinkade art motif, a mini Weber Grill filled with flowers for dad or a Valentine’s teddy bear clutching a bouquet and big Hershey’s chocolate heart.  

#2: Create head turning national advertising campaigns in magazines and on TV that would be viewed by 100 million potential consumers each holiday.    

#3: Offer florists more exciting floral product designs, co-op marketing/advertising opportunities that would encourage consumers to call their local Teleflora member florist direct (rather than act as a middle man such as FTD) and more user friendly floral management software programs.

The Result

More exciting product offerings and more creative national advertising campaigns caused millions of consumers to call Teleflora member florists each holiday – causing thousands of florists to switch from FTD and other floral wire services to Teleflora. Within 2 years, Teleflora exploded to the #1 spot in sales and florist membership (25,000 plus members). With lagging sales, FTD florist membership dropped by more than half (down to nearly 10,000) and required an investment group to stave off bankruptcy. Ultimately, Teleflora was able to achieve over 60 million dollars in sales each holiday season.

Steinhausen

The Challenge

How to take a mass-produced Chinese made replica of a self-winding, automatic movement wristwatch reminiscent of Swiss watches designed during the late 1920s and make it stand out in a crowded marketplace that had been dominated by many respected watchmakers for decades.

The Solution

#1: Create a brand name that conjures old world Swiss craftsmanship and quality, causing consumers to instantly associate the product with the finest wristwatches in the world. The idea came about while admiring a map of Switzerland and noticing the small town of Steinhausen. A classic new watch brand was born.   

#2: Craft a compelling story that would ask consumers to “imagine” a master watchmaker toiling away in his shop for years, painstakingly creating a masterpiece in watch making that was lost to time – the only remaining remnant being recently discovered rare sketches from 1927. Hence, the Steinhausen was born or reborn, as the story would tell.   

#3: Place full-page, direct response marketing ads in hundreds of major magazines nationwide. From National Geographic to SkyMall, consumers drawn in by the story of an old Swiss watchmaker with images of a gorgeous timepiece would be compelled to call a toll free number or go online to place an order for this magnificent replica. The compelling price point of $199 helped consumers realize that they could own a piece of history at a fraction of the cost of other fine wristwatches.

The Result

Within three years, over two hundred thousand Steinhausen watches were sold through national magazine ads, consumer product catalogs, and online stores. The Steinhausen brand would quickly be used to launch dozens of other watch designs, automatic winders, jewelry boxes and other accessories. During this time, two copycat watch brands would launch, achieving their own national sales success by emulating the name, look and feel, national advertising campaigns and story of the now famous Steinhausen. By year 5, the Steinhausen brand would be sold for nearly $25 million.