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In our seventh series Maree Morrissey talks to Paula
McGrath founder of Active Couture about her business' crux
at present.
| VITAL STATISTICS |
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| Paula McGrath, Founder
of Active Couture |
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Business Name:
Active Couture
Year of Set Up:
2004
Founder:
Paula McGrath
Location:
Howth, Co. Dublin
Business Type:
Sports and leisurewear boutique
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BACKGROUND
Active Couture was born out of Paula McGrath's passionate idea to
create a sports and leisurewear boutique providing top quality clothing
to play sport in, work out in and accommodate a busy, on the run lifestyle.
Paula is a born risk taker who, despite her very successful accountancy
and recruitment background, had no retail experience when following her
dream with Active Couture.
She started the Active Couture store and website from scratch and convinced
of the potential of the business in Ireland. Armed with courage, conviction
and steely ambition to fill a gap she identified, Paula wanted to source
sportswear which makes the wearer feel so confident she'll perform
to her maximum whilst provide active, ‘loungewear,' which makes
women feel stylish and comfortable, ‘dressed down,' after a
day in a suit.
WHERE IT IS NOW
Active Couture's unique selling point is its market. It identifies
with the modern women's desire to follow a healthy and full lifestyle
whilst recognises the needs of women past the thirty mark to dress in
well cut, flattering and quality labels which aren't trendy but fashionable.
Based in Howth, McGrath explains that this is the bread and butter, of
the business. "The store is trading well but could benefit from a
stronger brand identity and opportunity to become a destination shopping
store."
McGrath's aim is to ensure women feel their best and look fantastic
so they achieve optimum results in the time they take out of busy lives
to devote to such activities. Providing luxurious lounge wear from the
likes of Deha & Fenn Wright & Mason further motivates women to
feel confident even when dressed down.
POSITIONING
Now, after a successful 18 months of trading, McGrath recognises more
than ever a need to position the business as an exclusive, niche boutique
store, a more elegant and personalised alternative to it's larger,
run of the mill, faceless competitors, the typical high street store.
CUSTOMER SERVICE
Achieving success in this niche market is achieved through a one to one
personal customer service with a friendly approachable and understanding
staff is paramount. McGrath built a team of experienced professionals
who favour the old fashioned honesty and trust approach rather than the
hard sell.
TARGET MARKET
McGrath recognises that customers are not all under 35 and a consistent
aim is to service the maturer market that increasingly pursue a healthy,
active lifestyle and may have more time for golf, sailing, skiing, tennis
and other activities than their younger counterparts. "Of course
we also love our younger 18-35 market, and in the future feel their potential
to provide specific, funky brands for these fashion conscious active sisters,"
explains McGrath.
BRANDS
In addition, through evolving and expanding the product offering by sourcing
up to the minute, luxurious international and often exclusive to Active
Couture brands like Cross (Norwegian, Golf/Ski), Cassall (Sweden, Gym/Yoga),
Crocs (innovative American walking shoe) McGrath's ambition is to
evolve into a classy, elegant yet stylish modern boutique. These are in
addition to current labels Deha, Ellesse, Golfino, Cross, US Pro, Pure
Lime, Fenn Wright Mason, Duca del Cosma and MBT.
BRAND OPPORTUNITY
McGrath sees the huge potential of the business saying, "we are
trading well now and have sufficient capital resources behind us to expand
and solidify our position in a busy, yet lacking, retail market."
According to McGrath, "the challenge now is to take a step up from
being one stand alone suburban store to a modern, innovative and inspiring
retail store to gain awareness from a wider market through a re-branded
online store and by developing other geographical locations for a second
store."
The first task to be completed is the rebranding and rejuvenation of the
logo, its image, colour scheme, font and design all need a drastic and speedy
makeover. Marketing Manager Anna Wymes believes the logo needs to speak
to the customer, identify with it and inspire women to adopt a healthier,
fitter and more satisfying approach to sporting activities and leisure pursuits.
There's a lot to say through one little logo! This, ‘lifestyle,'
element which we are looking to build into the logo needs to say, ‘we
understand your desire for a healthier, satisfying and active lifestyle,
where you'll feel better, happier and fulfill your potential through
making the most of your time off.' If this is by playing the traditional
sports first recognised by the business or providing modern, comfortable
and stylish apparel for the (relatively) new kids on the block, yoga, Pilates,
dance, hill climbing or simply fitting in an evening walk with your girlfriends,
McGrath is hungry to impress and serve the market and realise the dream
that is the independent, entrepreneurial retailer.
QUESTIONS FROM ACTIVE COUTURE TO THE PANEL
- What creative inspiration can the panel provide on evolving the
logo from it's current plum and cream image to a more vibrant,
sophiscated and modern look, whilst maintaining it's crucial target
market of 30 plus women? Think ‘movement.'
- Can the panel advise on the most commercially sound, fashionable
and reliable location which will generate good footfall through a second
store and increase cash flow into the business?
- What is the most effective yet cost efficient method of getting
the Active Couture name and brand recognised to the wider market?
Read below comments from our panel of experts about ways in which
Active Couture could steer business in future directions to overcome current
dilemmas.
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One of the key objectives set by Paula McGrath is to gain greater
brand awareness. A marketing plan is essential; however market presence
is also vital in the retail industry to solidify brand awareness.
Active Couture ultimately needs a presence in key urban areas where
footfall is greatest. Trading through a sole store in Howth limits
market reach. Internet sales are still a niche market outlet but help
with brand recognition. Knowledge of the brand will spread faster
through greater street presence.
WHERE TO LOCATE?
Market research is essential to answer this question, but it is
hard to see how a presence in the key shopping districts (Dundrum,
City Centre, Liffey Valley etc) would be anything but profitable.
Proximity to large fitness centres, golf centres and gymnasiums
is also worth considering – perhaps even an alliance with a
chain?
WHAT NOT TO DO
A large store roll-out is not the way to go, and can be a costly
mistake. Take one outlet at a time, give each new location a chance
develop and assess profitability and cashflow as trade builds. Minimise
capital requirements through rental and lease arrangements, and
only enter a new location after a business case is prepared, assessed
and approved by the stakeholders. Market research should help identify
the optimum number of outlets, but remember that there are also
many lucrative markets outside of the capital.
Kevin Sheehan, Partner, Owner Manager Group, Deloitte.
Head of Panel for Crux of The Matter.
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| BE CAREFUL OF THE DESIRE FOR BIGGER BUSINESS |
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Paula McGrath has been successful in spotting and exploiting a trend,
one that's likely to continue to deliver results for her. However,
she shouldn't depend on luck to underpin her business' expansion.
She needs to do some market research among her existing customers,
to understand who they are, where they are from, why they shop at
Active Couture and, importantly, how they would like Active Couture
to serve them better in future.
PLANNING GROWTH
This will provide valuable information on which to plan, including
where her next shop should be located, or whether she needs another
shop (this appears to be based on Paula's desire to have a,
‘bigger,' business rather than on customer demand for
easier access). In planning her expansion, Paula needs to balance
her own ambitions for growth with the personal, one-to-one customer
service that she rightly recognises is the key to success in this
very fickle and competitive market.
MOVEMENT
As for the logo, Paula should look first at the colours her customers
are buying. She is right about, ‘movement,' in the logo.
Perhaps an animated logo for the website would create the necessary
buzz and test some designs on her customers as part of her market
research.
Brian O'Kane, Managing Director of Oak Tree Press,
and webmaster for www.startingabusinessinireland.com
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| LOCATION SHOULD 'FIT THE BILL' |
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When examining potential new locations for a retail outlet, Active
Couture needs to find the right balance between getting the optimal
footfall of its target market and the associated investment and running
costs of an additional retail outlet. Researching and identifying
suitable locations that ‘fit the bill' must be a business
priority, while at the same time recognising the potential and economics
of growing its online business.
CREATING A BRAND IDENTITY
Enlisting the expertise of a brand / media agency is critical to
ensure that the evolution of the brand identity and logo empathises
with the target audience and clearly conveys the overall message
and strength of the Active Couture brand.
BRAND AND NAME RECOGNITION
Active Couture needs to create brand awareness and make known its
presence in the market. A combination of approaches could be implemented
for example:
- Advertising in womens' magazines / publications - match
the readership with the target audience of Active Couture
- Online sales promotions and advertising is an effective and
inexpensive way to raise brand awareness.
- Sponsorship of local sports events and competitions is a good
way to build brand awareness and showcase your offerings.
Adrian Moynihan, Business Strategy, AIB
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Paula has achieved what most marketers call the holy grail, a clear
and identifiable market niche with opportunity. The objective now
is to penetrate that niche using several new, ‘routes to market.'
TRICKS TO GROWTH
The trick will be to expand without over extending cash-flow or
other resources. One way would be to develop a series of small concessions
in leisure centres that also target Paula's customer base e.g
Fitwilliam (Tennis), Riverview (Fitness) etc. Another would be to
take the old, ‘Party-Plan,' technique and update it so
that smaller clubs/centres can run an event selling her clothing
whilst at the same time earning money for the club. Alternatively
she could grow organically by opening a store in the South of the
city.
RESEARCH IS KEY
If the above is to be achieved then Paula has to rethink her brand
and marketing collateral. The brand, ‘Active Couture,'
is a bit of an oxymoron. McGrath would benefit from doing some research
with existing clients into new names that may describe her business
more clearly whilst at the same time being careful not to take away
from the leading brands she carries. Research is always important
as it will answer the important question as to why existing customers
frequent the shop and how that can be extended to new locations.
Patrick Munden, Director of South East Business & Innovation
Centre Ltd. (SEBIC)
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If you would like a chance to feature in Irish Entrepreneur's new
section 'Crux of The Matter,' then all you have to do is email
us with your full contact details to cruxofthematter@irishentrepreneur.com
and we will be in touch.
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