Background
Local Color was initially conceived as an independent, fine art materials, specialty retail and book store, servicing the student population of the College of Visual Arts. Founded in 1993 and located within a historic landmark building in the Cathedral Hill District of St. Paul, Minnesota. Expansion in later years introduced a custom frame design studio and art gallery.
Situation Brief: The Marketing Challenges
Ten years underground had posed a number of obstacles for Local Color. Drawing customers to its lower level location was an ongoing problem. Historic preservation regulations restricted its options for outdoor signs. The business thrived within the student community, but struggled to be seen and grow its customer base. Local Color was striving to market its frame design services with limited resources. Print advertising had become prohibitively expensive.
How do you shout from the rooftops when you have to keep your mouth shut?
Insight: Understanding Local Color's Unique Positioning
I had the unique task to build brand recognition and excitement, using guerilla 'activities,' and introduce new technologies: Local Color needed a design-forward, innovative and cost effective solution that would differentiate it from competition, draw new customers to its difficult location and to publicize its speciality services on a limited budget.
I set out to gain an understanding of the essence of Local Color's services; to determine its needs and goals, and to investigate its relationship with its customers.
Local Color needed to engage customers and shape the community by providing a CREATIVE PLACE: "A place to create and share in the arts, whether as a spectator, professional artist, or amateur practitioner, a forum akin to a public library or town square; a place to discover, experience memorable events, or simply to enjoy a conversation while shopping for tube of paint."
Solution: Strategies for Sales Growth and Brand Recognition
Dedicating less than 1% of the entire media budget, we began to build buzz by introducing a fine art gallery. Our first event ("Behind The Christmas Tree" in 2002) led to a strategic partnership with more than a dozen area businesses.
Next, we developed written and visual statements to describe the essence and vision of Local Color; computerized the sales floor (point-of-sale system to track customer information and manage inventory); and, using the numerous web technologies available, we created a publicity tool and passive income source.
Drawing inspiration from the old world shops of Europe, the sales floor was redesigned to take full advantage of its space within a historic landmark building.
The advertising budget was redirected from useless print ads and hilariously expensive Yellow Pages listings, to viral marketing, direct mail and email campaigns, to communicate the new and consistent image that had emerged.
Results: Impressive Sales Growth and Media Coverage
One-of-a-kind and memorable shopping experience, unlike that of its competitors
Sales growth more than doubled while marketing costs fell by over 2/3
Frame design sales increased by over 300%
Art gallery sales increased by 160%
Art exhibit events received extensive television, print and online coverage
Guerrilla marketing activities generated over 15 million media impressions in just over a month
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