Style on the Cheap by Katie Muldoon

Style-on-the-Cheap

By Katie Muldoon

SOMETIMES IT SEEMS as if checking out the discounts has become more than just one way to shop — it's the only way to shop. I, and many other consumers, no longer even think about purchasing without first considering the discount options.

Now, with consumer spending slowing, even those businesses that have not traditionally used lower prices to spur sales appear to be doing so. But running sales because everyone else is doing it is simply playing catch-up. Worse, when everyone offers a bargain not only is your differentiation lost, but your positioning can be compromised. How can you have it both ways — reinforcement of your current positioning but with the appeal of even more value…and not just ordinary value, but value in keeping with the current trends and desires?

The answer is style-on-the-cheap. Style, overlooked as an attribute because it had been assumed that it was not desired by the masses, has become desirable to all…especially now that fine design can be had at a price. The leader in all this: style guru Michael, who has chosen to design streamlined works of art posing as toasters and other such basic items, sold for a mere $20 each.

Michael Graves, renowned architect and winner of many awards, such as the 2001 American Institute of Architects Gold Medal (a biggie), has used his architectural training to design stunning, yet whimsical products for the home. Probably his most famous design is the silver-toned teapot with a red bird spout and a cobalt blue handle. However, most of his products, until a few years ago, were in the $100-plus range and were found at companies such as Tiffany. The discount chain Target changed all that.

Cementing its already somewhat recognized reputation as the discount chain with style, Target landed Graves. Back in 1999, CNN.com quoted Target vice president Ron Johnson as saying to Graves, “We've been knocking you off for years. Why don't we come to the source?” Hence was born a $35 version of the famous teakettle, plus a host of other chic home goods. The initial product line numbered 150; currently more than 500 are offered. Now consumers can load their shopping carts with basics as well as the latest classy home accouterments.

In 1997, and with the better known Martha Stewart name, Kmart launched the Everyday line, thereby creating another prime example of what successful discounting means today: style at a price.

Need help coordinating a decorating project on a budget? Go to a Kmart, where everything is pre-coordinated by the world's authority on stylish homemaking. It obviously works. Detnews.com (online edition of The Detroit News) reports that Kmart, an almost $40 billion company, expects to sell $1.6 billion worth of Martha Stewart products in 2001, effectively getting a boost in sales and image while still maintaining its overall product line.

Does stylish discounting require a well-known spokesperson? Can't imagine that it hurts, but another upstart in a highly competitive market is reaching for success sans the marquee name.

Even though it offers service to a limited number of destinations, it's unlikely you haven't heard of JetBlue, as one thing is for certain — its PR machine works. The best description I've heard was Time magazine's: “JetBlue is low-price and all-coach, like Southwest Airlines, yet hip and sassy, like Virgin Atlantic.”

One-and-a-half-year-old JetBlue's tag line, “Somebody up there likes you,” is more than mere words, as its cheaply priced seats feel anything but. Each blue leather seat is roomy and equipped with 24-channel satellite LiveTV, along with blue potato chips for munching. All planes are brand-spanking-new Airbus A320s. And they actually take off and land on time (most rankings are in the mid-to-high 90% range). Don't like fuming in long check-in lines? Take advantage of JetBlue's wireless curbside check-in.

Just how low are the fares? They generally start under $50 and don't exceed $300. JetBlue treats its customers with practical style. Seats are assigned, travel is ticketless and a Saturday night stay is never required.

Some folks obviously approve. JetBlue has carried more than 2 million passengers since its startup, was recently voted the No. 2 domestic airline by Zagat and given a grade of “A” in a PlanetFeedback.com survey.

In searching the direct marketing landscape, not one discounting-with-style example appears. Martha Stewart, of course, has her handsome catalog. But the prices in that book could hardly be called discounted.

Chiasso, a Chicago-based cataloger/retailer, probably has the best example of style at rational prices. While Chiasso carries the original Michael Graves line at its higher-than-Target prices, it also offers a lively collection of “Form, Function, Fun.” Their “Just a Little Something” section offers clever gifts under $25. Pick up a great-looking mini hands-free phone, totally cool-looking jumper keyrings or the indescribable laughing bag, all 20 bucks or less. Showing the techno-savvy of JetBlue, Chiasso's Web site informs you of your search parameters each time you search, a helpful guide that makes online shopping easier.

Tiffany, too, offers a version of style at a reasonable price. Just ask those who flock to buy their streamlined-looking stemware. Relatively inexpensive items, yet they come in that great turquoise box.

Yet not one DM example comes to mind that incorporates low-priced luxury into basic necessities, a neat trick that Target, Kmart and JetBlue all do with panache. It's time someone in our business gave it a try.