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Last Updated: Friday, 21 March, 2003, 11:46 GMT
Lunch Lesson 10 - Promoting products

Coming up with a product is one thing - telling people about it is another.

It can be expensive to advertise, and you need to make sure you're targetting the right market.

But one entrepreneur has built his fledgling business through an unusual route.

Justin Kyriakides was working for Age Concern when he had his brainwave.

Attractive

He realised that many CDs had attractive designs on them, and would look good displayed on a wall.

This could also solve the problem of looking after discs and storing them.

Justin devised a wall-mounted frame capable of holding eight, 12, 16 or 25 CDs.

He called it Discarray and when, after three years, he was finally granted the patent, he decided to give up his job and go into business on his own.

But he soon faced his first hurdle.

He found a suitable manufacturer to produce the frames and ordered 1,000.

However, they were costing him so much, he was not making a profit when it came to selling them on to shops.

Struggle

So, six months ago, Justin decided to cut out the middleman and set up a website selling Discarrays direct to the public.

He took a stall at the popular Camden Market in London but promoting the venture proved to be an uphill struggle.

Justin contacted his local newspapers to tell them about his idea, but held out little hope of any publicity.

However, he was surprised when they all ran stories about him.

Inspired by this, he began to approach magazines which carried reviews of new products.

"Originally I approached International Smart House, the design magazine," says Justin.

"They were very keen, and wrote a nice piece and once that went in, the orders started flooding in."

Specialist

This strategy started to pay off, with more reviews and more orders coming in.

In just a few weeks, Discarray had been featured in dozens of publications, from Sunday supplements to specialist PC and music magazines.

"I've approached 50 magazines so far, and about 30 of them have taken up the opportunity," he says.

"I've been reviewed by Lawrence Llewellyn-Bowen for the Express and he recommended the Discarray for a Christmas present, and that created lots of interest."

The product has even received publicity in Holland.

Justin is now reaping the benefits of his promotional strategy.

Orders have come in from Finland, Ireland and America. Even actress Gillian Anderson of X-Files fame has bought one!

Justin admits you have to work hard at this type of promotion.

Persistent

"I've done a lot of blagging," he says. "You have to be persistent and keep calling them."

It's been a good example of Justin's single-handed approach to his business.

He financed it himself, found a manufacturer, built the website, does the accounts and even takes the packages to the post office himself to send to customers!

"I've proved there is a market for Discarray," says Justin.

"Now my aim is to approach perhaps Our Price or Virgin to offer them an exclusive to sell in a retail outlet.

"Once it's in a shop I think it will sell a lot more."


Student Guide

Justin Kyriakides has a product he wants to sell.

Discarray is an innovative, attractive way of storing CDs.

Many people are far too lazy to put them back in their covers and they end up in heaps on the floor.

With Discarray you don't need to put them away - just slot them into a space on the wall. They'll look cool, too.

But Justin is in a Catch 22:

  • he needs to reduce the price to sell more
  • he needs to sell more to reduce the costs.

    To sell more he needs to promote his product by advertising or other strategies - and that's expensive.

    Just think...

    Brainstorm ideas to help Justin sell his products. Think about the upside and the downside of your ideas.

    Most businesses promote their products because they want to sell more.

    More sales usually means more profit but it can also cut the costs of each item - just what Justin needs to do.

    Making more Discarrays will cut the costs for each one. If the business that makes them for him produces more, they will produce each one more cheaply.

    They will be able to set the machinery up for longer runs and buy fabric, edging and the other things they need at lower prices.

    There are economies of scale in making more.

    Just look at High Street shops to see this at work.

    You'll find offers like "Three for the price of two" or "Bigger Pack - Better Value". These all show economies of scale at work.

    Just think...

    There are economies of scale in making all sorts of products. Services are a bit different and may not gain as much. Why not?

    Toni and Guy run hairdressing salons across the country and beyond. Why is it more likely to have economies of scale compared to a single shop, local hairdresser?

    Growing sales

    Justin needs to find a way to make sales grow - but advertising is expensive.

    Here are some figures which show just how much it costs to get your message out.

    They are one-off figures - businesses which advertise frequently will get big discounts.

    These figures come from the Advertising Association's website. There are lots more facts and figures about advertising on the site.

    Just think...

    Do you think that this sort of advertising is right for Justin? Explain your answer.

    Are there any magazines that might be right?

    Try to find out what an advert would cost.

    E-marketing

    Justin has set up his website. It shows the product and the prices.

    It works for people in Europe and the USA too because it translates prices into euros and dollars - but he has to help people to find it.

    He still needs to get his message out.

    He has been quite successful in persuading people to write articles about his product.

    This is a good strategy as there is no cost attached and people read about your product.

    Just think...

    Look back at your first brainstorm. Have your ideas changed? Come up with a strategy.

    Remember - promotion needs to earn its keep. There has to be a return in the form of more sales.

    Justin's keen to know what you think. Why not send him an email through the contacts page on his website - www.discarray.com.



  • WATCH AND LISTEN
    The BBC's Simon Gompertz
    "The inventor discovered a secret weapon to get his marketing going"



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