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Catalog in a Big Box
May 1, 2006 12:00 PM
, KATIE MULDOON
A WHILE BACK MY SISTER ASKED ME FOR AN ANNIVERSARY gift idea while we were shopping at a mall. At first I couldn't think of anything my husband and I needed. Then we came across a Tupperware kiosk. I've long loved Tupperware but it just wasn't something I remembered to buy for myself. I never thought of visiting the company's Web site, hadn't seen a catalog for years and didn't have a clue about Tupperware parties. Faced with a lively looking kiosk filled with Tupperware styles I hadn't known existed, all those stumbling blocks to purchase disappeared. The kiosk was packed with irresistible items, and so I walked away with loads of goodies thanks to my sister and her now-perfect anniversary gift. (Quick note: There are many types of kiosks. I'm talking about the freestanding, indoor, manned kind often found in malls, not the self-service type.) I am not alone in my admiration for kiosks. Chick Raven, writer for ChicksLayingNestEggs.com, a financial advice site for women, was thrilled to discover a “Tupperware island” from which she also bought many items. Her column raved about Tupperware. According to the its 2005 annual report, Tupperware will continue to explore “affordable retail access points” such as “an easily transportable sales venue that may be quickly set up and taken down.” Avon found that kiosks do more than sell product; they bring in customers who are new to the brand. Avon CEO Andrea Jung recently told Chief Executive magazine that during her firm's tests of kiosks, “95% of the mall kiosk customers had never bought Avon before.” While kiosks may provide exposure, they're definitely an adjunct to Avon's direct sales program. Both Tupperware and Avon still focus largely on their sales forces. For instance, Avon lets its reps sell at retail, or have their own kiosk or Web site. Not all manned kiosks sell from the unit itself. Dell continually has expanded its kiosk program, but not for direct sales. Its mini-store stocks products customers can touch, feel and get comfortable with, and its staff is on hand to offer advice as needed. Other firms use kiosks based on seasonal needs. Hickory Farms limits such operations most of the year but gears up for the holidays. The ability to set up a kiosk relatively easily when and where a company wants it is a major appeal. Because of their low costs compared with full-fledged stores (they start at $3,000 but can run up to $100,000 plus), kiosks generally are more profitable on a square-foot basis. Similar to paper catalogs that use ZIP code analysis for better targeting, if sales aren't up to projections there's always the option of moving the kiosk to a more receptive location. Last December the Associated Press reported that carts and kiosks generate an estimated $10 billion in annual sales, triple the amount reached 10 years ago. It's like having a catalog that potential customers can flip through and see three-dimensional merchandise that they also can touch and feel. Before opening a kiosk, consider the following factors:
KATIE MULDOON (kmuldoon@muldoonandbaer.com) is president of DM/catalog consulting firm Muldoon & Baer Inc., Palm Beach Gardens, FL. |
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