Wednesday, May 27, 2015

How buying a kettle resulted into a business of 8.4 Billion Dollars!!!

Yes! You read it right. You must be thinking was the kettle made of gold? Well it wasn't. So stop hyper-ventilating. But the story is worth more than a few ounce of gold for every marketer. So here's what happened.

Okay before we get on with the story, a little background will help. It's that time of the year when  back to school sale season is on a full swing. It happens in the months of June-August, when  retailers in America offer the same, discounted and homogeneous service across each and every store. Wherever you go, as a customer, you will see the exact same scene. Shelves stacked with same things with big signage that reads, "Back to School Savings". After all, it's easier to sell the same things that everyone else does.


Cut to the story. On a fine jolly morning, a small argument started in the kitchen department of a big store between a teenager and his father. The boy was 18 years old and getting ready for college in a month. One of the key 'things to buy' in his list was a kettle. As he picked it up, his dad argued and made him keep it back on the shelf. Dad said, "you can always borrow", to which the son replied,"if someone else brings, it won't be mine to use".The son couldn't reason much and was frustrated with his dad, who couldn't believe why his boy cared so much about tea kettles?

What his father missed, thankfully Target, the second largest retailer in the US, did not. To stand out from this mad rush of sale season, Target knew they had to do something different.They wanted to do more than launching cool products. They wanted a fresh perspective. To gain insight, Target needed to step out of their world, and spend time with families like in the story above. 

So why did the boy needed the kettle? It's simple. In college, it's about late night study sessions or even mindless discussions with friends. This meant only one thing. Lots of cups of tea. And it was imperative he be prepared for it. Kettle was just a symbolic gesture of comfort against the anxiety about the big change in lifestyle. 




Target understood that for this particular boy it was a kettle. For someone else it could be a sleeping bag or a cell phone. What matters to a student is to feel equipped for a big change in life. So with their new marketing campaign, they urged students to imagine. Imagine their future college life. They actually helped to build-up the anxiety and how with Target they can strike each one of them down. The retail giant launched hundreds of new products, such as laundry bags with washing instructions printed on the inside label (hiding incompetence), kitchen tools packed together, lighted door sign that read  either 'Partying' or 'Studying' and many more. Target's new found customer understanding led to an increased revenue of $8.4 billion.

Watch this video below to understand students' psyche and how Target got it right.



So here's the learning. When you step outside of yourself, you open to the possibility of re-looking at things, unlearn what you've learnt and thereby solve your customers' problems.

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