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| Client: Paul Fredrick MenStyle is a leading designer and merchandiser of men’s fashion apparel. Situation: In 2001, Paul Fredrick was a single-channel merchandiser utilizing catalog mailings to generate sales from existing customers as well as acquire new customers. The available direct response list universe reaching male apparel buyers was becoming limited and restricting Paul Fredrick’s ability to aggressively grow their business. New and cost effective marketing channels needed to be established. Approach: The first step was to modify the Paul Fredrick product offer from a full-line catalog offering to a solo-product offer. The solo-product offer would be placed in low cost, large circulation media such as magazines, newspapers and package inserts. A strong value, $19.95 dress shirt was successfully established as the solo-product offer. This product had wide appeal and a natural affinity to the balance of the Paul Fredrick product line, offering high potential to convert respondents to long-term customers. The goal was to expand Paul Fredrick’s marketing reach and generate new customers at a significantly lower cost than the full catalog mailing. Results: Within the first three months of testing, ParadyszMatera successfully established ongoing media placements in magazines as well as regional and national newspapers. Since 2001, Print and Insert Media has generated in excess of 100,000 new customers, accounted for over $5,000,000 in revenue for Paul Fredrick and has continued to experience year-over-year growth. In 2001, Paul Fredrick’s catalog mailings accounted for over 70% of the new customers generated. In 2007, this has dropped to less than 40%, yet corporately Paul Fredrick is acquiring more than three times the new customers they did in 2001. Print and insert media will account for close to 40% of the new customers generated in 2007. “Although moving into these new channels involved some level of risk, the greater business risk would have been to continue to limit our prospecting efforts to a channel that requires a fairly significant financial commitment from a first time customer. By lowering the initial financial hurdle, we were able to increase our reach and obtain trial from customers who would not have made that first purchase from our catalog.” -Allen Abbot, Executive Vice President and -Chief Operating Officer, Paul Fredrick |
