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Case Study On Adultshop.com
By EduX Services, Sat Dec 10th

Marketing Case Study

(Extracted from How Asia Advertises by Jim Aitchison) Applying ANew Discipline

The Problem:


Adultshop.com is an online retailer of products. Itsmission was to recognized as a global leader in productdistribution. The challenge was to launch a completely new brandin a controversial category.

As the first publicly traded product company in Australia, Adultshop.com required investment support for its businessmodel prior to international expansion. However, mainstreamconsumer, investor and media groups did not openly accept thecategory. The business was heavily biased towards males, thecompetition intense and cluttered, products were sold on priceand promotion, and advertising was dominated by small spaceprint ads.

The Strategy:

The client's marketing strategy targeted current user groups,hoping to build market share by focusing on promotional offersin the key product area of videos. It was assumed thatadvertising would run in magazines using sexuallyprovocative images typical of the category.

The agency recommended pursuing an untapped market opportunity.While most people felt uncomfortable walking into a sex shop, itargued, the anonymity of the Internet and a user-friendly sitewould break down the barriers and encourage a broader audienceto purchase products. Women, in particularly, had neverbeen addressed by the category. In fact, Adultshop.com couldcreate a new category by becoming the first company todirectly target a mainstream audience and leverage thenon-threatening online environment to create a brand withmainstream positioning. The Adultshop.com website would become atotally acceptable place to shop, and appeal to both men andwomen.

The question was, could an shop become a successful,credible mainstream brand simply by acting like one? TheAdultshop.com proposition was developed to appeal

to all adults18 – 49 years of age. The company was restructured.Adultshop.com became the company's umbrella brand,user-friendly, non-pornographic website, able to command pricepremiums, drive innovation and build investor support. Anunbranded subsidiary business serviced the heavy user group.

Brand identity began with a custom-designed signature font and a3D animated logo. Humour replaced sexually explicit images.Adultshop.com print ads splashed witty text messages ondistinctive purple backgrounds that intrigued rather thanintimidated. Media placements broke new ground, blanketing citystreets with supersites, transit shelter posters and bus ads.The open, fun tonality dispelled the negatives surrounding adultproduct marketing. Adultshop.com became the first brand in thecategory to have its advertising accepted by mainstream media.

As a result of broad consumer acceptance, Adultshop.compioneered online shopping partnerships, site integration andcontent sharing. And while mainstream consumers embraced thecampaign wit, a cult following carried the logo into tattooshops. Brand building continued with nightclub sponsorships,event marketing, ambient media, radio, direct response ads andeven in recruitment advertising.

The Result

Despite no pornographic content, Adultshop.com has become thenumber one site in Australia and one of the top 10e-tailing sites in the country. 30% of all customers arefemales, vis-à-vis the 5% norm for the category. Female productsoutsell male products 2 to 1.

Banner click-through rates of 12% are five times the industryaverage.

The site has registered consistent sales revenue growth; a salecampaign generated 120% sales increase.

Following its launch, Adultshop.com became the best performingdot.com stock and is on target to turn a profit. Internationalexpansion is underway with lives sites in the US and Germany .

http://www.edux.com.sg/newsletter/newsletter.html

About the author:A web design,development,hosting and internet marketing firm

 
 

 
 
 
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