London Metropolitan University MN3006C Week 13 - 2011 Case Analysis and Article Summaries

LONDON METROPOLITAN
UNIVERSITY
MN3006C
WEEK 13 - 2011

Tutor: John Threfall

_______________________
Henrik Olsen Maelum
10017001

0
TABLE OF CONTENTS
1.1 The Case Analysis 1
2.1 Article Summaries
2.2 Creativity 2
2.3 Innovation 3
2.4 Product Design 4-7
2.5 Entrepreneurship 8-9
3.1 Career Outlines
3.2 Bjorn Kjos 10
3.3 Richard Hayne 11
3.4 Natalie Massenet 12
3.5 Nick Robertson 13
4.1 A Creative Review 14
5.1 References 15

1 1.1 The Case Analysis
The paradigm shift in online shopping This tool is still new for this business sector, but is seen more
often at different online retailers. This video gives the customer
a clearer idea of how the clothes hang and move on the body
Online retail has been Britain’s economic success story of the
and helps them decide if they want to purchase the item.
decade (Matthews, 2008). According to Marketing week
(Powerhouse Photography, 2011) According to Power House
(2010) online retail sales increased 22% over the past year,
Photography (2011), a well-known photography and film
the highest rate of increase for over two years. Online
company based in Leeds, web video in the world of high
shopping has exploded over the last 10 years, and many
fashion is taking off.
wonder if it will ever replace the high street? (White, 2007)
Net-a-Porter another successful e-tailer that uses video to
present their products launched their own TV-station in January
There has always been a certain risk by purchase goods
(Hoskin, 2011). On their new TV-channel customers can view,
online, and a bad experience can make you not want to shop
shop, browse and comment on 4 different channels.
with a retailer again. This area will always be a challenge for
a retailer, but this business sector is working hard to improve
Net-a-Porters multi channel expansion can be viewed online,
and to keep their customers. (White, 2007)
mobile devices and on the iPad. Net-a-Porter already has a
shop-able magazine, but have now taken the next step with
A trend that is evolving is video as way to enhance the
shop-able TV. This is an innovative turn, which will be
shopping experience. A trend that looks like it develops into a
interesting to follow. (Hoskin, 2011)
paradigm shift for the players within online retailing. ASOS,
one of United Kingdom’s most successful online retailers, has
The use of online videos within online fashion retailing will
introduced video as a shopping tool on their website.
probably grow as the big players add it to it to their websites,
Customers can then look at booth pictures, and they can see a
and followers will always adapt to a winning formula when
video with the same model wearing the clothes, walking
online videos mature, and customers react positively to it.
around for 15 seconds. In the video ASOS has on each
(Hoskin, 2011) According to Chris Hoskin (2011), as online
product, they display a professionally shot catwalk style video,
video matures, he thinks trends towards HD and potentially 3D
with added background music, which adds to the experience
formats can be the next “big thing”.
and depth of the ‘ASOS lifestyle’ customer experience (Hoskin,
2011)
Only the future can tell us that, we just have to wait and see.

2 2.1 Article summaries
2.2 Creativity Mr. Shames then tells about his personal experience with
Groupon, and says its everywhere, in his inbox every
The Groupon Phenonemon By Adam Shames (2011) morning, and is beeping on my phone with latest updates
thanks to an app on his smartphone. And he refers to a story
In this article about Groupon, the author Adam Shames recently happened on the Daily Show with Jon Stewart, where
writes about how it started and about the founder behind it, he examined President Barack Obama´s latest budget cuts
Andrew Mason. attempts. “From now on when we buy office supplies,” he
mock-quoted the President, “we will join up with Canada and
Groupon, a Chicago based company. The founder Andrew Mexico to look for deals on Groupon.”
Mason has taken the old idea of clipping coupons and
made it into a company that has according to Mr. Shames When a creative idea like this turns into an innovation, and
become a new matchless paragon of business innovation. then are successful, you will always find people trying to twist
It moved quickly, after winning a Chicago innovation award the idea, and make money on it themselves. Mr. Shames
in late 2009, when it was less than a year old. It expanded mention this and says that the viral rise of copycat companies
so quickly that Fast Company Magazine recently named has reached absurdity levels, not just limited to those offering
Groupon as the No. 5 “most innovative company” in the local deals of the day. This is confirmed with the example of
world. Fast Company magazine described Groupon as “a WeedMaps, when the founder Justin Hartfield says “It’s like
savior for small businesses” and “the most exciting thing to Groupon, but with a twist,”. WeedMaps offering deals, but
happen to retail since eBay.” Groupons creative business with medical marijuana, and was mentioned in an article in
model, is based on getting a large number of people to buy Fast Company magazine recently. (Fast Company, 2008)
discounted vouchers to different restaurant and local
attractions Mr. Shames points out that, “Groupon has become a the start-
up model of the kind of innovation political and business
Not bad for a company that started in 2008, and have leaders refer to: a creative idea with real value”. Which
nearly operated in 3 years. according to Mr. Shames has in this case has lead to
impressive moneymaking, job creation and investment hunger.
In February 2011, Illinois Governor Pat Quinn choose Google recently tried to buy it for $6 billions.
Groupon co-founder Brad Keywell, to help find creative ways
to boost the economy, by being a part of a new Innovation
Counsil. The primary founder Andrew Mason, has become
the poster boy for innovation, quoted often, pictured playfully
and suddenly a high priest of all that’s creative.

2.3 Innovation “It’s much more likely that the mobile money revolution will
entail a lot of hard work—proverbial trench warfare.”
Mobile commerce evolving from early innovation to M-commerce has developed in three stages according to
mainstream adoption: Javelin By Dan Butcher (2010) Mr. Butcher.
First stage was when consumers were able to access
This article written by Dan Butcher, who is an associate financial services via SMS or WAP/browser, and
editor on Mobile Commerce Daily and Mobile Marketer, download different applications.
is about how mobile commerce is turning from an Second stage, gave consumer the possibility to monitor
innovation into a mainstream adoption. their money via alerts, informational mobile banking,
It was Jim Van Dyke who is a founder & president for letting them view balance, make deposits, and find the
Javelin Strategy and Research, who said that he believes closest ATM.
that M-commerce is moving into the mainstream market. Third and last stage which have happened the recent
Just few years ago M-commerce was something that few years, and is still evolving is mobile bill pay, mobile P2P
used and were aware of, but after the introduction of payment, mobile contactless payments, mobile deposit
smart phones, and especially recent years where smart capture, mobile enrollment, payment wallet, payment and
phones are more accessible for people. Because of that infor mational transaction wallet and payment,
M-commerce has been discovered and optimistic signs informational transaction and ID/authentication wallet.
for mobile commerce is that banks are offering mobile
financial services, consumer curiosity, the smart phone Dan Butchers refers to a survey done by InStat Technology
expansion affordable data plans from the mobile carriers, in December 2009. The main findings in this survey were
etc. Businesses invest money in this area because of its that 64 percent of Americans are interested in using a
potential, and move more and more services into M- mobile wallet for commerce. He summaries that Americans
commerce. Jim Van Dyke said that we won’t see the make extensive use of credit/debit cards, and mobile
adoption curve of PayPal, which is never likely to be penetration is high, as is the usage of mobile data
replicated, but “mobile money” will be a revolution, and applications.
concludes that it will be death by a thousand cuts.
The last part of this article talked about mobile marketing
Mr. Van Dyke explained “mobile money” as mobile and mobile payments. Dan Butcher believes that mobile
commerce/shopping is buying via mobile, often for marketing is attracting cross-selling and keeping customers
mobile digital content or virtual goods. He continues via mobile devices. Mr. Van Dyke confirms this and adds
with, “Mobile money” has evolved from simple access to that last year consumers received 10 percent more mobile
money monitoring to transactional mobile banking and marketing messages from the telecom industry compared
payments. to the previous year.

Product design

Top 10 Royal-Wedding Souvenirs by William Lee Adams, Time Magazine

The Royal wedding is coming up next week, and Time Magazine has looked at the incredible options of souvenirs
that have been launched in stores the last months. Here is a summary of some of these options picked out by
William Lee Adams.

Tea bags

Author Willam Lee Adams points out that Brits drinks tea by the gallon, butt his great product design is actually
done by Germans, a Hamburg based design labell. They have designed the ”KaTea & William” greeting card,
which includes two commemorative tea bags. The one tea bag you can see Prince William flash all his military
garb and grins, and on the other Katie wears a wedding gown and you can not miss her big sapphire
engagement ring that once belonged to Princess Diana.

Tea towels

Tea will of course be served in a British wedding, and there will be spilling, and what else can you use to clean
this up? Tea towels. Supermarket chain Asda, have already planned "Royal Dry-ness" tea towels. Well-known
department store John Lewis are offering these tea towels (picture), with a crown wedding date, and a William and
Catherine logo for $10.

The Official Royal-Wedding Coin

Royal Mint have issued this Royal-Wedding coin, which is designed by a the British sculptor Mark Richards. Author
William Lee Adams do not think the coin is offering an accurate likeness of the future king and his Kate. The coin is
valued at $8, but retails for $16, which Mr. Lee Adams believes is to cover the cost of production.

Crown Jewels condom

This excellent souvenir is manufactured by Crown Jewels, a London based company, that describes itself as "the
proud purveyor of an exclusive range of heritage love sheaths.". Their marketing slogan is "Like a Royal Wedding,
intercourse with a loved one is an unforgettable occasion,”

'Kiss Me Kate' Beer

The Castle Rock Brewery in Nottingham have gone the extra mile to celebrate the Royal-Wedding by brewing a
“Kiss me Kate” beer. Master Brewer Adrian Redgrove announced following,”a pale beer that will be elegant,
tasteful and British to the core”, and well balanced with "some hops, some bitterness and sweetness coming
through." The “Kiss me Kate” beer will be released in April, and will be a limited collection of only 100 bottles.

. Sick bags

British graphic designer Lydia Leith, have designed these practical souvenir sick bags. She asked "Did you get
caught out back in '81 when Charles and Diana got wed?" And the answer was "Don't let it happen again!".
The bags cost $5 each, and the couple is wearing the clothes they wore when they announced their engagement.
Designer says on her blog “the bags were just for fun, a sort of antidote to the hysteria surrounding the wedding”.

Unofficial Royal-Wedding Plates

William Lee Adams has found these plates that are a bit different from the official wedding plates. He says,
“Design enthusiasts, antiroyalists and Britons experiencing wedding fatigue would rather have something
rebellious”.

London based KK Outlet has given it a chance, and has designed these 6 plates. The plates cost $120 for the
entire collection, or $32 for your favourite one.

2.5 Entrepreneurship
Massenet started her career in Womens´s Wear Daily,
One-click wonder: the rise of Net-a-porter By Eva also known as WWD. Her goal at that time was to one
Wiseman for The Guardian (2010) day become a magazine editor. To Wiseman, Massenet
said that "I hadn't walked away from being editor-in-chief
Net-a-Porter, the online fashion retailer for women of a magazine – I'd just created a magazine for the 21st
founded by Natalie Massenet, celebrated their 10th century instead, a hybrid between a store and a
anniversary in 2010. magazine that was delivered digitally."

According to author Eva Wiseman women in only By the time Natalie Massentet wanted to start Net-a-Porter
bought clothes they had seen, touched and tried on for in 2000, which was a difficult time to start an online
10 years ago. Net-a-Porter changed this, and today business according to her advisers, and they promised her
millions buy their designer clothes here. Wiseman also to fail. But Massenet did listen to them, and got to friends
says, “Massenet beat the high street”. Net-a-porter is backing her. In 2004 Net-a-Porter was profitable, and her
currently valued at £350m. story is one of the biggest success stories in online
retailing.
On of Net-a-Porter secrets to success have been there
box. A black wrapped as gift that every customer get Massenet’s team of 15, started in a small flat in Chelsea.
when they purchase something from their webshop. Here did everyone where working from and clothes was
Wiseman describes how founder Massenet became an everywhere, including their luxury quality box. Massenet
entrepreneur. It all started when she picked up a leaflet in says, "They were the same luxury quality boxes we have
a Barclays bank. Where it said, “Are you an today,"
entrepreneur?” At that moment she was a stylist and
fashion writer for Tatler. But her entrepreneur instincts In 2000 when Net-a-Porter first started to get brands
were intact, Wiseman writes. Before the launch of Net-a- convinced, they struggled and had a hard time
Porter, Massenet had plans for a chain of coffee shops, explainging that they did not have a store. Today every
but she decided to listen to some business experts who high-end fashion brand want to be in their webshop, and
advised her to not do it, and sait it was no money in it. it is according to Wiseman a big deal to be accepted by
Starbucks did it instead months later. Net-a-Porter. It gives brands credibility and higher their
value

Continues on next page..


According to Wiseman e-tail sites continue to grow. And
she gives an example with ASOS, that reported £20.3m
profit on sales of £223m.
E-tail sites continue to grow. In June Asos reported
£20.3m profit on sales of £223m, a figure that's
expected to rise by 60% this year.
“Net-a-Porter and ASOS´s popularity lies in their
immediacy”, says Rita Clifton, chairman of the global
brand consultancy Interbrand. Clifton says furter, "Their
technology has developed from the plonky early fashion
sites to make the whole shopping experience very fluid
and vivid. It's been said that the last thing people would
buy online is fashion, but they have proved that wrong."

In 2009 Massenet launched a sister e-tail site, called
TheOutnet. This site sells stock from previous seasons at a
discounted price. Latest addition is Mr Porter. Massenet
says, "We have a ready-made customer base for our
men's business," she says. "100% of Net-a-porter
customers have a man in their lives in some capacity and
59% are married or living with a partner."

Wiseman ends her article, asking the question “Does the
success of sites such as Net-a-porter signal the end of the
high street?”

10 3.1 Career Outlines
Bjorn Kjos

Bjorn Kjos is a Norwegian entrepreneur, who is owner
and executive director for the airline, Norwegian Air
Shuttle. He founded the airline in 1993, and started with
domestic flights, before he in 2003 decided to take it to
the next level and compete with the big players in the
industry. Norwegian is today Scandinavia’s second
biggest airline, and has flights across Europe, and to
Northern Africa as well as the Middle East.

Bjorn Kjos is a charismatic leader, which have got
several prices for his work. Recently he was appointed as
In April 2011 he was criticised in the media by several
Ernst & Youngs Entrepreneur Of The Year in 2009, in
media experts, because of an e-mail that he sent out
Norway. (Marketing and leadership, 2009)
internally. In this e-mail threatened to leave the company, if
this conflict with the pilots ended soon. (Loennecken,
His leadership style is very different from other companies
2011) Kjos which is an also a pilot, have handled this
in Norway. He is more or less the face of Norwegian Air
situation badly according to communication expert,
Shuttle, and if I can compare it another company that
Morten Helliesen. This happened last week, and no news
would be Virgin Airline, and Richard Branson.
is released from Norwegian Air Shuttle. Mr. Kjos was
contacted this week, and had no comment. The
Norwegian airline can have an unsure future ahead.

Richard Hayne

Richard Hayne, a former hippie from Pennsylvania, USA,
and number 317 on The Forbes 400 Richest Americans
in 2009 (Forbes.com, 2009), created when he still was
in school the brand Urban Outfitters, a clothing brand for
young people that have developed into 341 stores
across USA and Europe. His enterprise consists of Urban
Outfitters, Anthropologie, Free People, and Terrain
Garden Center. The last expansion Terrain Garden
center, was opened because of Mr. Hayne´s interest in
gardening recent years. (McCutcheon, 2008)
Richard Hayne concentrated the first year on the younger
customers. He developed the brand and opened stores in
Dick, whick is his nickname, once described to Lauren
a fast phase. In October 1992, he opened a new store
McCutcheon from Phillymag (2008) he is in ”a business
called Anthropologie. He wanted to focus on the older,
where he is pleasing women,”.
and more established shoppers living in the suburbs of
major metropolitan areas. (McCutcheon, 2008)
Hayne has been in charge since everything started, and
it has been some incidents he probably would be
Next step for Mr. Hayne was to go public, and that
without. In 2008 a T-shirt with the printed statement "I
happened in 1993, at $18 a share. He used the capital
Support Same Sex Marriage,". Which was clearly a hot-
to continue he strategic plan of growth. (McCutcheon,
button item in the Proposition 8 state. The t-shirt was
2008)
taken out from stores a week later in California. Mr
Hayne which is a right-wing Republican, and he is
In 1998 Urban Outfitters got their first European store in
known for supporting senators who vote for legislation
London, and Anthropologie opened their first in march
against gay marriage. (Nymag.com,2008)
2010. (Arndt, 2010) Currently they have 24 Urban
Outfitters stores and 2 Anthrpologie stores, but according
to Business Week (2010) the company intends to pick up
the pace to get to 100 European

Nick Robertson

The founder of the e-tailer success and chief executive of
Britain’s biggest online fashion retailer, ASOS, Nick
Robertson is a man without any special education, but
with a lot of connections, that managed to raise £2.4m
from his brother and wealthy friends in Monaco in 1999.
(Porter, 2008)

When he worked as a media buyer in 1996, he early
understood the relationship between celebrity
endorsement and brands.
Robertson also struggled for several years, and he said, "It
So in 1999 when we started As Seen On Screen, the was pretty nasty. But every week, every month, every year,
idea was to sell products that people associated with we saw sales going up.”
celebrites. For example Ray Ban glasses, which sales
exploded after Tom Cruise used them in Top Gun. (Porter, Last year ASOS expanded, and opened a US online
2008) shop. The expansion has been successful. ASOS US sales
were higher that UK sales in the fourth quarter.
ASOS started to copy celebrities looks, and the sales
increased every year. Sales grew from £400,000 in James Thompson from The Independent (2011) says, “Its
1999 to £1.5m by 2001. (Porter, 2008) booming growth shows little sign of slowing.” Nick
Robertson said to The Independent, "The US will be at
least as big as the UK in the medium term, which is very
exciting”. (Thompson,2011)

Natalie Massenet

Natalie Massenet is the founder of the Net-A-Porter e-tail
empire, which sell luxury clothing online. Weekly two
million people log in to the site and their average spend
is £500. (Neel, 2010)

Chief creative officer of Burberry, Christopher Bailey
once said, ”Natalie possesses a remarkable ability to
feel the moment, and to understand people's needs and
desires before they know them," (Walker, 2011)

According to Harriet Walker (2011), journalist for The In 2009 she was got an MBE award, for her dedication
Independent, the reason behind Massenets success is and service to the British fashion industy. She was also
that she stared out at Womens Wear Daily and in 1997 named as Harper's Bazaar Innovator of the Year in 2010.
she moved to London, to be close to her husband, and to 2010 was the year when Net-a-Porter could celebrate
be a part of the Tatler magazine team. This was where their 10th birthday, and that they got their millionth
she got experience as fashion editor. customer. (Walker, 2011)
Last addition to Massenet’s Empire is Mr. Porter, which was
Massenets goal with Net-a-Porter was to create an online launched in March 2011. Mr. Porter is an online store for
magazine, that customers could buy directly from. menswear with the same level of luxury and exclusivity.
(Walker, 2011) (Harper’s Bazaar,2011)

14 4.1 A Creative review
The Expressionist – Michael Wolff Appreciation is his second muscle. He mention how joyful
things can be, how people express themselves, how he
appreciate colour, and how he uses it to package him self,
and how this show who he is.

Imagination is the third and last muscle he needs in his
job. He cannot use this muscle with out having the two first
muscles intact.

Michael Wolff is a designer and creative advisor with
forty years of experience. He is co - founder of one of the
world’s most iconic design companies, named up after
him self, Wolff Olins. Mr. Wolff is recognized today as a
leader in thinking on brands. (Norsk design, 2011) In Mr. Wolff world Brand is really a way something is like
In the video produced by Intel Visual Life Mr Wolff talks for future reference. How do you package things, how do
about his approach to looking at the world, including the you make your brand look so people can take it, chose it
muscles of curiosity, appreciation, and imagination. and want it. This is brand-building, and how brands work
on creating their own brand identity.
Michael Wolff is a very interesting human being with a
very positive and intelligent way to look at things. He Micheal Wolff sees seeing as a muscular exercise, and he
explains that he has three muscles that he cannot live ends the film by expressing that he is obsessively interested
without. First muscle is curiosity. He calls it questioning. in everything. Which he gives us a good picture of when
He likes to question everything. Why are things like that? he talks.
He values knowing little about everything, so he can look
at things with fresh eyes. See the full video here:
http://www.youtube.com/watch?v=BTfAzjBTokc

15 5.1 References
Arndt, Michael (2010) Urban Outfitters Grow-slow strategy in Europe (Online) Access at: http://
www.businessweek.com/magazine/content/10_09/b4168056809288.htm

Business Week (2010) Urban Outfitters Grow-slow strategy in Europe (Online) Access at: http://
www.businessweek.com/magazine/content/10_09/b4168056809288.htm

Butcher, Dan (2010) Mobile Commerce Daily.com: Mobile commerce evolving from early innovation to mainstream
adoption (Online) Access at: http://www.mobilecommercedaily.com/2010/03/26/mobile-commerce-evolving-
from-early-innovation-to-mainstream-adoption-javelin

Forbes (2009) Forbes.com: Richard Hayne (Online) Access at: http://www.forbes.com/lists/2009/54/rich-
list-09_Richard-Hayne_TNTN.html

Harper’s Bazaar (2011) Harper’s Bazaar online: Mr.Porter launches today! (Online) Access at: http://
www.harpersbazaar.com/bazaar-blog/mr-porter-launch-022211

Hoskin, Chris (2011) Salmon.com: Video saves the Ecommerce stars (Online) Access at: http://blog.salmon.com/
index.php/2011/02/video-saves-the-ecommerce-stars/

Loennecken, Fredrik (2011) E24.no: Kjos er svekket (Online) Access at: http://e24.no/jobb/kjos-er-svekket/
20049173

Marketing and leadership (2009) Online book. Access it: http://markedsforingogledelse2.cappelendamm.no/
nyhet/vis.html?tid=594238

Marketingweek (2010) Online shopping increases 22% (Online) Access at: http://www.marketingweek.co.uk/
disciplines/digital/online-shopping-increases-22/3014850.article

Matthews, Dan (2008) Launchlab.co.uk: What makes ASOS so darn good? (Online) Access at: http://
www.launchlab.co.uk/article/Business-Blog/What-makes-ASOS-so-darn-good/421

McCutcheon, Lauren (2008) Phillymag.com : The Antropologist (Online) Access at: http://www.phillymag.com/
articles/the_anthropologist/page3

15 5.1 References
Neel, Julia (2010) Vogue: Natalie Massenet (Online) Access at: http://www.vogue.co.uk/biographies/100729-
natalie-massenet-biography.aspx

Nymag.com (2008) Nymag.com: Urban Outfitters yanks Same-Sex Marriage T-shirt From Shelves (Online) Access
at: http://nymag.com/daily/fashion/2008/12/urban_outfitters_yanks_same-se.html?f=most-
commented-24h-10&imw=Y&f=most-viewed-24h5

Porter, Charlie (2008) The Telegraph: ASOS: net gain (Online) Access at: http://fashion.telegraph.co.uk/news-
features/TMG3453897/Asos-net-gain.html
Fast Company Magazine (2011) Most innovative companies (Online) Access at: http://www.fastcompany.com/
most-innovative-companies/2011/profile/groupon.php

Powerhouse photography (2011) The success of ASOS through catwalk videos (Online) Access at: http://
www.powerhousephoto.co.uk/the-success-of-asos-through-catwalk-videos-1444.html

Shames, Adam (2011) Entrepreneurthearts.com : The Grouipon Phenonemon (Online) Access at: http://
blog.entrepreneurthearts.com/2011/04/07/the-groupon-phenonemon/

Thompson, James (2011) The Independent : Booming overseas sales keep Asos on growth trail (Online) Access at:
http://www.independent.co.uk/news/business/news/booming-overseas-sales-keep-asos-on-growth-
trail-2267406.html

Time (2011) Time Magazine online : Top 10 Royal-Wedding Souvenirs (Online) Access at: http://
www.time.com/time/specials/packages/article/0,28804,2059395_2059394_2059375,00.html

Walker, Harriet (2011) The Independent: Natalie Massenet : The queen of e-tail (Online) Access at: http://
www.independent.co.uk/news/people/profiles/natalie-massenet-the-queen-of-etail-2212529.html

White, Brian (2007) Online retail spending set to explode even further (Online) Access at: http://
www.bloggingstocks.com/2007/05/25/online-retail-spending-set-to-explode-even-further/

Wiseman, Eva (2010) The Guardian.co.uk: One-click wonder: the rise of Net-a-Porter (Online) Access at: http://
www.guardian.co.uk/lifeandstyle/2010/jul/11/natalie-massenet-net-a-porter-internet-fashion

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