
Category winner: Online Marketing at Big Skinny
The case |
Who – the protagonistKiril Alexandrov, CEO at Big Skinny. A founder of multiple businesses who says his vice is ‘an addiction to researching stuff online ad nauseam’ including computers and sports cars. WhatBig Skinny wallets are designed to overcome five major wallet problems: size, weight, card pocket size, slippery interior, and lack of versatility. Over a two-year period, dozens of designs and over 75 natural and synthetic materials were tested before finding the perfect combination of functionality and looks.
Why
Big Skinny wallets were originally designed by Kiril because he hated sitting on thick, heavy wallets. WhenBig Skinny was founded in 2005 with sales initially driven through street fairs, retail distribution and print advertising. Its initial attempts at online selling ran into trouble in 2010 when a glitch meant that 4,000 wallets were being given away free. Kiril needed to decide how to handle the situation. Should he just cancel the ‘free’ orders? He also knew that he needed to rethink his online marketing plans. There was a huge amount to consider, from social media, email marketing and coupon sites such as Groupon, to navigating Google’s algorithmic and sponsored search engines. WhereThe company is based in Harvard Square, Cambridge, US, and sells its products online and through stores across America, Canada, and a number of other countries. Key quote‘Here’s a regular wallet, just out of the box, and here’s a Big Skinny. It’s the same thickness, but it’s already stuffed with 16 pieces of hard plastic – the national average.’ – Kiril’s successful street fair sales pitch. What next?How should Big Skinny’s marketing presence be expanded? Should it concentrate on attracting new customers to its website, or focus on engaging existing customers through social and interactive media? And should it make more use of retail sites such as Amazon and Buy.com? |
The protagonist |
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The authors |
Benjamin Edelman and Scott Duke KominersBenjamin and Scott explain why they especially like this case, and discuss the challenges of selling products that customers might not know they need. Concise introductionWe especially like this case because it combines two different visions of Kiril, the protagonist. On the one hand, he’s an exceptional salesman offering an offbeat product that people are proud to have in their pockets all the time. But at the same time, his core task is selling more stuff with lower online advertising expense, a challenge almost every business can relate to. The case provides a concise introduction to using and evaluating an array of online marketing tools; anyone selling online needs these skills. Tougher challengesSome companies are fortunate to operate in sectors where customers at least know what they need. (For example, hotels can market themselves via organic online searches and platforms such as Expedia.) But most sellers have tougher challenges: they’re selling products that customers might not know they need, or might not be thinking about. Online marketing is a less obvious fit for these sellers – and requires creative and careful implementation. Cost reduction strategiesA second problem for many marketers is the high cost of online media. Some online ad campaigns are so costly that the ad platform makes more profit than the advertiser. Auction-based pricing exacerbates this problem by making an advertiser bid against competitors (who usually have similar costs). Big Skinny tried several strategies to reduce its dependence on the most costly campaigns, and others would do well to follow. Advance planningWe knew we wanted to write a case about designing online marketing campaigns, and outlined the case objectives at some length before picking the case subject and beginning interviews. Given our broad topic, this advance planning was essential in helping us figure out what type of case subject we wanted. When we were lucky enough to find Big Skinny, everything else followed naturally. Great protagonistsKiril and Catherine Alexandrov have done so much to support the case, including discussions, interviews, and many class visits. We’re incredibly grateful! About the authors
Benjamin Edelman is Associate Professor of Business Administration at Harvard Business School.
Scott Duke Kominers is a Junior Fellow, Harvard Society of Fellows, Harvard Department of Economics, Harvard Business School. |
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Online Marketing at Big Skinny |