December 13, 2016
Source : http://www.marketingmag.ca
Stereo+ unveils brand overhaul from Lg2boutique
The home stereo market was once dominated by expensive component systems, but modern systems are increasingly nothing more than a widely available Bluetooth speaker coupled with an iPhone and a Spotify subscription.
At the same time, the twin forces of e-commerce and big box retailers like Walmart and Best Buy have eaten away at the market for traditional stereo stores – the latter through common industry practices like price slashing, all supported by extensive mass-media marketing.
“Consumers have been educated to believe that electronics are cheap and always on sale,”
“The only thing that the big box retailers have is aggressive pricing. They’re almost giving it away.”
The extensive store remodeling (“every wire in the store was pulled out,”) has been carried out in four of Stereo+’s 25 locations (Trois-Rivieres, Senneterre, Sept-Iles and Drummondville), with the balance expected to be complete by mid-2017. Roy said he expects every store to feature the updated Stereo+ logo by the end of the year.
“When we hired Lg2boutique to analyze our company, they helped us realize we were really stuck in 2001 or even before that,”. whose father founded the company approximately 35 years ago, during the heyday of the home stereo market. Roy said that the company contemplated several other agencies for the project, but Lg2boutique “covered all the needs we had.”
The Stereo+ stores have been divided into five zones (TV, wearables, IT, home control and audio-visual), while the new plus sign in the company name has been given a physical manifestation in the form of in-store furniture that can serve multiple functions (bench, display unit, etc.) while helping constantly refresh the in-store look.
He said that declining sales have forced independent retailers like Stereo+ to revisit business practices such as product assortment, while at the same time right-sizing its stores for the new retail environment. Most crucially, it is looking introduce online sales while replicating the type of service customers would receive in-store.
The new brand identity is part of major overhaul for Stereo+, which we are working to bring down its customers’ average age from 55+ to between 35 and 44. “We’re getting to where we want to be,” he said.
That while Stereo+ is “flirting” with the premium market, it remains primarily focused on the mid-price market, which he said is under-served in Quebec.
“Yes we’re selling a $15,000 pair of speakers, but we also sell entry level TVs,”. “We’re kind of the best of both worlds.”
The company has also replaced approximately 30% of its staff with younger employees, bringing down the average age of its employees from 55 to about 37.
Direction de création: Claude Auchu, Maude Lescarbeau
Création: Maude Lescarbeau, Josée Martineau, Jean-François Clermont
Stratégie: Pénélope Fournier
Architecture: Hélène Fortin
Service-conseil: Ingrid Roussel, Delphine Lombard
Production imprimée: Lg2fabrique