Published in
©2011 Dealerscope
Definitive Media Contact:
Jennifer Griffin
jenniferg@definitive.com
Phone (425) 289-2309
CONTACT US Custom (425) 289-2318 | Seattle (206) 524-6633 | Bellevue (425) 746-3188 | Tacoma (253) 472-3133
Published in
©2011 Dealerscope
Definitive Media Contact:
Jennifer Griffin
jenniferg@definitive.com
Phone (425) 289-2309
If there's a common theme to this year's Retail Excellence Awards winners, it's their investment in change. Each of their stories provides a case study into how insight, action and focus can combine to create an element or strategy that's beneficial to both the retailer and the overall CE industry.
Start with The ON Store, George Manlove 's new venture, which borrows several elements from the Apple Stores but adds a few of its own to create a standout retail experience among independent dealers. There's now one in Missoula, Mont., but Manlove, who also serves as CEO of Vann's, has plans for 12 more in the near future. Ultimately, he envisions 600. Given his track record, we have no reason to doubt him.
While Manlove went outside of a legacy model to address industry change, Nebraska Furniture Mart embarked on an extensive redesign of the CE division in its Kansas City store. The result is an enviable shopping experience that few retailers can match. Industry executives were greatly impressed during last year's grand opening. They remain so today.
When the industry doesn't change fast enough, smart retailers change the industry. That's what Mark Ormiston of Definitive Audio did when he created the Music Matters annual product and technology showcases. Not only are the events still growing strong and serve as a much-needed platform for audio manufacturers, but many other dealers have created their own Music Matters events, spreading a good thing across the country.
It takes nerve to change your company's name and product set but Joe Barrett and his crew showed plenty when they switched their shingle from Barrett's Home Theater to Barrett's Technology Solutions. They all breathed a sigh of relief when their customer base also embraced the latest in home control/automation, networking and mobility solutions that Barrett's offers.
Many retailers talk about the advantages of expanding during a downturn, but none has done it on the scale of hhgregg. In its 2012 fiscal year, which is still underway, the company has opened 18 stores, with about 20 more planned before it ends. Several new marketing campaigns, expanded training and a large investment in its e-commerce initiatives have also helped the store earn a spot on this year's list.
Definitive Audio, the Seattle-based, 36-year-old hybrid AV specialty retailer and custom installer, has thrived through several recessions, housing crises and bouts of faltering consumer confidence by sticking to its guns, as well as changing with the buying habits of its customers.
"I did business with them when they first opened, when it was a small, one-room store," said loudspeaker entrepreneur Sandy Gross, president of GoldenEar Technology. "They've evolved rather dramatically, but it's still a classic specialty audio/video store that has the best products in all price ranges, presents them really well, and gives excellent service and expertise to its customers."
The company, now with three showrooms and a design center, continues to be defined by its founder, Mark Ormiston , a self-professed audio hobbyist who lives and breathes the technology and is passionate about conveying his enthusiasm for what he sells.
"I've been buying hi-fi equipment since I was 12 years old," he said. "I worked my way through [college] in a hi-fi shop, and I still love this industry."
Ormiston attributes the company's success to the fact that he, Vice President, Craig Abplanalp, and the Definitive staff are what he termed "grinders."
"There's nothing really unique about what we do," Ormiston said. "We focus on the details—the mundane, repeatable, boring stuff that nobody likes to talk about. I wish I could say we have a magic bullet. We just work hard and stick to it. We think that the subtleties of your business speak volumes to your clients."
Richard Glikes, executive director of HTSA, Definitive's buying group, made a point of noting a rather mundane aspect about the showrooms that speaks volumes to him. "Their stores are unbelievably clean and manicured," he said. "There's no, 'This used to be such-and-such room.' There are no wires connected to nothing, and no areas where speakers used to be. There's not a speck of dust…and everything works."
Master Planner
But where the company has gained greatest renown is in having designed an industry template for audio event marketing that other retailers are emulating to surprising success: Music Matters. At these annual events, invited clients are treated to spectacular demos from several manufacturers and top-notch food and drink, without so much as a hint of a hard sell. "They get 600 people each time they do it," said Glikes. "Vendors and clients love them."
In between Music Matters and an equally large Home Theater Experience event in late fall, Definitive holds several mini events where the staff and occasionally a single vendor give presentations on narrowly focused topics, such as how to get the best sound from an iPod or how to optimize speaker placement.
"For a very low cost we get anywhere from 80 to 100 people in an evening," Ormiston said, explaining that the value is in the face time spent with customers. "With the Internet being the way it is and with clients being able to research online without visiting a retail location, it's a way of getting people in front of our staff. People feel they can come and have a nice evening where they're not going to be 'hot-boxed' or 'closed,' and they get a good impression of what our company is about."
Ready to Adapt
Ormiston regularly re-examines and tweaks his go-to-market strategy. "He's meticulous. That's his nature," Glikes said. "If you're that way, you look at how hard you can fall as well as how high you can jump."
Long before it became fashionable in audio retailing, Ormiston's group developed a diversified but complementary business model. Although the business was primarily two-channel, it invested strongly in home theater and whole-house automation, and entered the light-commercial space, a move that Ormiston said has enabled Definitive to remain profitable during the recession.
Ormiston recentyly hired an internal marketing manager who could collaborate with Abplanalp in developing an effective social media strategy, refreshing the website, and tracking the effectiveness of the mini consumer events. "It's not built on an online store strategy but is designed to better optimize organic search and get our institutional message out about the quality of our business. It's not about driving price or product."
The company will soon embark on a partnership with one of its vendors to be the first to launch a new merchandising concept for computer audio and downloaded music and video. "That's one area with energy, growth and excitement. I don't think most stores, mine included, have yet adapted themselves well to that client or that product category," he said.
Find the full article at: Dealerscope
< Back to Main News