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New Product Ideas Lurk, If You Look
05/08/09
A giant plush squirrel, a paisley and plaid totebag, and a graduation fest have more in common than you might think.
All were featured in the CAMEX 2009 educational session Mixing Things Up: New Product Categories, Assortments, and Price Points as examples of ways college stores can dream up new opportunities for general merchandise.
Cassie Wherry, manager of the Grinnell College Bookstore, Grinnell, IA, literally went squirrelly trying to think up a clever product line to boost gift and impulse sales. She had no mascot to work with—Grinnell never developed a character from its team name, the Pioneers.
But the small, rural campus had something else. "I noticed we have a lot of squirrels," Wherry said. "People treat them like little pets. Sometimes people feed them.
"I thought, 'We don't have a mascot. Students love the squirrels. What can I do with that?'" she said.
Working with a company that produces custom-designed mascot merchandise, she was able to come up with a small, plush squirrel that closely resembled the rodents roaming Grinnell. The company e-mailed computer images of the proposed design to her, allowing her to alter the whiskers, nose, feet, and tail to get the look just right.
From the beginning, the stuffed squirrels were a big hit. "Everybody wanted a squirrel," Wherry said. Some 300 have been sold, a sizable number given Grinnell's 1,500 students.
As part of the order, Wherry's store received a three-foot-high squirrel as a promotional prop. Wherry placed it on the floor in a prominent spot at the beginning of the term. Then she noticed student after student interacting with the super-sized squirrel—hugging it, playing with it, having their pictures taken with it. Visiting children also loved the giant squirrel.
But Wherry decided to give the big squirrel away in a drawing to benefit the local high school. Funding for the school's library, which often ordered books from her store, had been cut. Although she found raffles weren't permitted, she instead asked people to fill out a questionnaire and requested donations for the library. The winner was pulled from all the questionnaires completed.
A mascot also figured into general merchandise at the University Book and Supply Store at the University of Tennessee, Knoxville. Since 2003 the school's Department of Retail, Hospitality, and Tourism Management has offered product-development programs to give students hands-on experience in designing and producing UT-branded wares, such as quirky tee shirts and a line of canine supplies "endorsed" by UT's mascot, a black dog named Smokey.
In 2004, the retail students developed an official university tartan plaid, incorporating UT's signature orange and navy. Last year, the plaid was joined by an official paisley print in the same color scheme. Students have created a broad assortment of products featuring the plaid and/or paisley: bags, umbrellas, apparel, stationery, even a dog coat worn by Smokey during a nationally televised UT football game.
The student-designed products have been a big boon for the University Book and Supply Store. "The first two weeks after the products are rolled out, the store gets exclusive access," said David Kent, CCR, associate director of the store. After that, the merchandise is made available for sale in middle- and top-tier stores, but not discount stores.
The paisley and plaid lines enabled the store to nurture a market niche. "The paisley project was huge. We sold hundreds and hundreds of these bags," Kent said.
The department receives royalties, around 10%, on the products. The store works with the students to fine-tune ideas for new products with sales potential.
Although UT is a large school, Kent said a similar product-development program could be launched at any size campus with retail studies courses. He recommended partnering with a local or regional custom manufacturer for the merchandise. UT works with one based right in Knoxville.
As with the plush squirrel at the Grinnell College Bookstore, Kent said a branded line of wares using prints in school colors can fill a merchandise void if you don't have a marketable symbol. "You may not have a mascot or identity, but most schools have colors," he pointed out.
Most schools also host formal graduation ceremonies, leading many college bookstores to sponsor graduation fairs to help seniors prepare for the event. For the Titan Shops, California State University Fullerton, the annual GradFest has opened up opportunities for general merchandise sales.
The store collaborates with various administrative offices to plan and advertise GradFest. "We promote this as a one-stop grad shop," noted Associate Director Peter Poon, with designated tables for regalia, tickets, announcements, diploma frames, class rings, and other needs. The approach has paid off: sales of most items have steadily increased in the last three or four years.
The university sash, a student-designed sweatshirt, and bundles have contributed greatly to the rise in graduation merchandise sales, Poon added.
The sash, intended to be worn with the commencement gown, bears the CSUF seal. "Our campus didn't allow the bookstore to sell the sash," Poon explained, "but last year, due to the school's 50th anniversary, they allowed us to sell one." A total of 6,850 units were sold. That convinced the school to permit the store to continue selling the sash for 2009's graduation.
Each year there's also a contest to choose a design for the senior sweatshirt. Titan Shops sold 700 shirts last year, many through a promotion that gave students 50% off the price of a shirt if they bought a regalia set and diploma frame.
"Train your staff to offer bundle packages. It's the best way to optimize savings for students," Poon advised. The university sash is also bundled with regalia sets for a discount.
Despite those bundle discounts, Poon said Titan Shops still got a 50% overall gross margin on GradFest sales. To lock in wholesale prices for three years, the store seeks bids for regalia, rings, announcements, and frames and takes advantage of co-op dollars to promote sales.
For a PDF of the session's PowerPoint handout, which includes photos of Grinnell's plush squirrel and UT's plaid and paisley merchandise, go to www.camex.org/handouts/MixingThingsUp_Presentation_5-05.pdf.
—Cindy Ruckman
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