Sometimes Being Simple is the Answer

I would like to share a bit phenomenon that I just found out this afternoon. My company just decided to create a new subsidiary and I will be the main operator. The subsidiary will concentrate on the diversified financials which basically will be investing the parent company’s money in a lot of different financial products. Hopefully, in less than a hundred years this could grow and become like Merrill Lynch, UBS, Morgan Stanley, or Macquarie Bank (fingers crossed…hehehe).

Secretly, I also have a deep interest in the financial market. I started trading in the Australian Stock Exchange approximately three years ago. There are a lot of interesting phenomena when I was analyzing the companies within the market. Today, in particular, I started the analysis by collecting the important raw data and information to be processed to the next step of the analysis. I came across to a company which almost has never attracted the media attention. Interestingly, this silent company somehow has grown for almost 700% in price within the last five years.

The name of the company is The Reject Shop. They are basically the discount variety retail sector. Therefore, their target market obviously does not expect luxurious and branded items. Basically, there are a lot of discount shops like them in Australia. What makes them special and different from the others? Why the customers prefer to shop in the reject shop instead of the two dollars shop in the corner?

Unlike the majority of the discount stores which usually very unorganized and uncomfortable, The Reject Shop differentiate themselves by creating organized and comfortable stores for their customers.

Tight budget does not always mean sacrificing comfort and tidiness. This is a very simple concept. Shopping items at the discounted price in a “shopping mall” like store. No wonder their share has increased crazily for the past five years. Sometimes we forget about simple things in marketing. There are a lot of new luxurious supermarkets fighting to obtain more market share by doing more promotion. Therefore, sometimes being simple is the answer.

What do you think about simplicity in marketing? Do you have more examples that show simplicity in marketing? Do you have a simple idea that can change the market? Please share it to the rest of the group.

Just a simple sharing!!

David Herlambang

MarketingFirst