Tap The X Factor
The Age
Wednesday December 14, 2005
WHEN Michelle Clayton launched her business, Agent X, she was well aware of the power of marketing.
"A huge importance was put on marketing. Our aim was to build a company with several product lines aimed at helping you get through your day easier, so a strong, identifiable brand was going to help us launch future products," she says.As someone aware of the pitfalls of starting a new business, and with only a small budget to play with, Ms Clayton says careful planning is the key to success. "A marketing plan is critical so you know what direction you want to go in and how you are going to get there," she says.Patrick Butler, associate professor in marketing at the Melbourne Business School, agrees. "They need to be really methodical and focused on what they actually do. Entrepreneurs and small business owners tend to be very busy. You can't get good marketing done by accident. You need to find out your key marketing priorities," Professor Butler says.In the case of Agent X, a key concern was how to get the attention of potential buyers for their first product - a discreet tampon holder that looks like a lipstick holder - in what they hoped would be a growing range."It's difficult to get your product in front of buyers so we knew we needed a unique way of getting their attention," Ms Clayton says. "One night we were chatting about how people love opening presents; the mystery of what is inside never goes away, no matter how old you are. So we made up some sample boxes, finished off with a 'Top Secret' label and a big ribbon." With no money to pay a model, Ms Clayton dressed as a spy, complete with trenchcoat and fedora, to drop the package at the client head offices she had targeted. Her partner came along and took a Polaroid of her in front of the company's signs."We then slipped the photo onto the top of the box so the buyer knew it had been delivered by Agent X herself." Professor Butler, analysing Agent X's marketing techniques, says the gimmicky approach was a clever ploy that matched the product. The result of Ms Clayton's spy caper was Agent X's first product - titled Secret #1 - currently being stocked in Portmans and Sportsgirl stores.For a more serious business concept, though, Professor Butler warns against such tactics. "You can trash a good product with a gimmicky marketing strategy," he says.When sisters Nicky Long and Michelle Lovett opened their handbag importing and design business, Oliver and Coco, their business plan had a strong marketing foundation."We have a strong emphasis on our brand and ensuring that it communicates consistent messages to our key audiences," Ms Long says. "Therefore, knowing exactly who our customer is, where we will and won't be sold, our pricing limits (what we pay for our manufacturing and what is the optimal selling point for our position) and how we want to be perceived in the customers' minds, were really important to flesh out before we even started finalising the products."Ms Lovett says this initial approach forced them to challenge subsequent decisions to see if they made a good fit.Simple measures of their business success are growing sales, employment of a book-keeper, and additional sales assistants in their Hawthorn shop.
© 2005 The Age