Saturday, August 21, 2010

Success Story: Lillian Vernon Corporation

Lillian Vernon - an outstanding American woman entrepreneur, founder of "Lillian Vernon Corporation". It avoids the use of traditional methods of marketing research or targeted groups in the development of new projects articles. Instead, she is ready to rely on the "gold inner voice."
Lillian Vernon was born March 18, 1928 in Leipzig, Germany. She was first daughter of industrialist mediocre. The family fled anti-Semitism in Germany to Holland when she was only five years. Then they were forced to flee from the Netherlands to the United States in 1937, when Lillian was only ten. These sharp throws in a foreign environment gave her a unique ability to cope with the unknown and created a stable self-confidence. She was forced to learn new cultures, strange languages and re-acquire friends.
Vernon inherited from the father of European attitudes to work and began work as a teenager. She replaced a lot of different jobs. First, in the age of fourteen, she worked as an usher at the cinema, receiving just under 10 cents an hour. Then she worked in a shop "Lollipops" Loaf saleswoman in the room that, according to her, gave her a very appropriate experience will be useful in later life as an entrepreneur: "Those underworking taught me to work with the public, that's where I learned how to communicate with the different people and not be afraid when some unusual personal appeal to me. Among other things, it helped me overcome my innate shyness. I had to get rid of it. " Vernon graduated from the school of Julia Richmond in 1946. She enrolled at New York University, where she specialized in psychology, but dropped out in the first year due to the fact that she married Sam Hohberga and settled with her husband in a suburb Maynt Vernon.
When Vernon began operations of its mail-order company by mail at his kitchen table in 1951, she was twenty-three pregnant housewife, trying to earn some money for a growing family. She used $ 2000, received as wedding gifts to make the initial margin of purses and belts, and at $ 495 to advertise in the magazine "Seventeen".
Vernon was courageous enough (or perhaps too naive) to do something for which no other brother was not going. But intuitively it is called, that women, like herself, would buy its products, and "gut" feeling that this knowledge can be wholly and completely "trust, defining your own path in business. Its strategy was developed using only the beautiful picture of what is happening, so that it can easily ignore all of what he thinks about it the rest of the world.
The genius of Vernon was to offer customers unique products that they wanted. Its strategy was based on the fact that to do what is established rivals feared to do: to offer personalized product variety, which was not in the stores of consumer goods. Vernon preferred to take risks, which the "old boys" feared, and it was her strength. "Go down there, where others are afraid to set foot - this brings together the majority of the great business motto, and Vernon followed him faithfully. She used her advantage, where she saw the weakness of the giants of business directories (their inability to offer the buyer the goods are small, niche not occupied by them), and dispatched all his strength. Discernment Vernon brought her unimaginable success almost immediately.
The first two types of goods were Vernon belts and purses, including free nominal clearance. Already the announcement of the sale by e-mail has brought orders for 32000 dollars within the first twelve weeks of work. Vernon was delighted with his unexpected success, and began to advertise a bookmark for the books to see if there was any in the first entry just random luck. She succeeded not only in financial terms, but also become increasingly confident with each new product. In the next round of sales of products included Vernon bags for transport and brass door knockers, and then went already all that can be presented as "a unique and possible" and that could be personified. Vernon specializes in high value products for "women like herself."
Ability to intuitively feel the profound meaning of products has always been her ally, and firmly astride him, she moved into an industry trade by mail, densely populated by numerous competitors. She was about to compete with the leading large firms, which in 1954 released her first black-and-white catalog on sixteen pages. She sent this publication by mail on 125000 addresses real and perceived customers. This strategy has raised its annual revenue to U.S. $ 150000 to 1955, when the company was still known as "Souvenirs Vernon" (the name was taken on behalf of the New York suburb).
Vernon has worked tirelessly, yet united in dozens of people: she was the author of pamphlets and advertisements, and the chief buyer and manager of the almost the whole day, and finally as chief financial officer in the late evening. Like all great entrepreneurs, Lillian Vernon is always "knew everything that needs to happen" in the corporation, and all that has happened. By 1965, work was already sufficiently developed to declare the establishment of the firm, and she formed the "Lillian Vernon Corporation". By 1970, the company received an annual income of about a million dollars. This unprecedented growth was bound to the style of Lillian, which she describes in the following maxims of business philosophy:
Always be considerate of others.
Do not be afraid of getting soiled.
Work on time, to have leisure time.
Use common sense in all decisions.
Plan your intuition, but works head.
Her first husband Vernon, Sam Hohberg, worked with her before their divorce in 1969 which, according to her, was a payback for the business. Vernon continued as a major purchaser of goods for the company and traveled around the world approximately 100,000 miles per year - in search of unique, but useful gifts that women like her, want to buy. The genius of Vernon was to expand the company within its niche, personalized basket of goods, which coincided with the emergence of street vendors and video channels of distribution, completely impersonal to customers. Vernon intuitively sensed that can fight for the "exchange of views" a female audience that wanted good service and quality at an affordable price.
Since the giant department stores were becoming more and more "faceless" trade with smaller and smaller level of service, Vernon has developed as a competitive strategy: to try to make the work his company more focused and more durable. And it worked. Vernon personified, made a personal most impersonal form of trade - postal parcels. One of the ways in which it has achieved this (thanks for the tip of its "inner voice"), was - to apply to the consumer, who wants to appropriate services, quality and unique personalized products. The last paragraph of this "personal" strategy was the idea to name directories business and the name of the hostess and her hometown. It gave its catalogs and company feeling of personality, which was no small customer, tired contacts with faceless corporations and mysterious acronyms.
Vernon still reading every word on every new application directory, and still personally wrote the final approval for each item ordering from a catalog. Her famous money-back guarantee still in the nineties added to offer customers to choose the form of service: how to be more convenient for him to make an order - by phone, fax or contact by mail, given that the firm operates 24 hours a day, 7 days a week, 365 days the year. "Lillian Vernon Corporation" became a joint stock company in 1987, when Lilian has sold 31 percent of the property company at $ 28 million. Some portion of the money she used to open a modern, 486,000 square feet of space, the National Distribution Center in Virginia Beach, Virginia.
In 1990, the Association of Trade but the directory "Lillian Vernon Corporation" was called "a catalog of sorts." In 1991, Vernon opened its first store, specializing in the sale of surplus obsolete products in the suburbs of Washington, DC, to sell discounted goods. The success of this approach was so stunning, it is now she has six such warehouses, strategically located on the eastern seaboard. By 1993, the company issued 18 catalogs, including a new set of products on the market "Children of Lilly, designed for kids. Personalization has its special force from the beginning, which led the company to leadership in the sale of personalized products in the country. The company shipped more than three million personalized products in 1993, and Gallup has registered "Lillian Vernon" as one of the most well-known in the United States companies involved in trade directories, finding that her brand is known for more than thirty million adults.
Life
Lillian Vernon has decided to raise their children, not looking up from his career, although her family was in first place in life, but business remained aids. Vernon was able to cope with both tasks, but not without losses. Her first marriage was the victim attempts to do everything at once. In Hohbergov already had two boys, David and Fred, when he and Sam were divorced in 1969. In 1986, in an interview with "USA Weekend", she said: "I really loved my first husband. If we had not worked together, I think that we would probably still married. " It seems that Vernon's two sons survived this event quite calmly. Vernon actively toured with David and Fred Hohbergami as business partners. Fred, the rightful heir, left the business in 1993 to try to find myself in politics, leaving his younger brother, David, as managing relations company. But, obviously, he has never emerged desire to lead the company as his brother Fred.
Vernon married Robert Katz in 1970, and this marriage lasted until 1990. When she divorced Katz, then, obviously, came to the conclusion that the company is doomed to remain her passion for life and changed its name Lilian Katz to Lillian Vernon. It seems that Vernon has decided to take his company the most important event in her life is much worse than any other relationship, and now the founder and the company can not be separated from each other as in name and spirit. Events in her professional and personal life surprisingly coincided: two marriages and the birth of two sons proceeded at the same time as the creation of a leading company in the business of trade by mail. Of course, the family at a time when Vernon performed a triple role as mother, wife and manager, has suffered. No one can serve two masters at once. Lillian Vernon, it seems, was one of those lucky women who grew up together and the family, and business.
Vernon has a unique ability to feel interested in the "average woman" in the store, itself an "average woman". Although its success clearly indicates that it is not the average woman, the strategy Vernon has been working for many years without error. She argues that the strength of her intuition allows it to achieve important installations, which allow to stand out from the rest of the group. Although acute intuitive vision is found in all the great entrepreneurial and creative people, most of them are not aware of their unique abilities. Vernon has long recognized this important personal trait and used it to create its "Lillian Vernon Corporation" has become a leader in the industry, operating in highly competitive environment.
Vernon - authoritative independent woman, who used a new form of promotion of their products, which could terrorize traditional managers. One example of its innovative approach to stimulate sales - a 100 per cent guarantee of refunds within ten years for any product purchased from its catalog, which does not satisfy the customer as a whole. Should be kept in mind that the products sold by catalogs Vernon - a personalized product with the initials of the owner or typed name, which excludes, thus, the possibility of resale products. The first experiments have found universal support for this method of sales promotion, which was noted in the list of 500 companies "Fortune". This could be a serious threat to the pink list. The uniqueness of Vernon and its often sacrilegious approach to marketing shows with absolute certainty what it referred to its products and to their own decisions. Rumors of its links, and reliability is obviously quickly got up to the main mass of customers. She put the customer and quality service as priority number one, that, apparently, and explains why "Lillian Vernon Corporation" has become such a huge success. Business Philosophy Vernon from beginning to end fits in her aphorism: "I never sell that would not have wanted in my own house." Another of her sayings: "get the most out of every opportunity.
Vernon herself - she inspired many business schools, six of these institutions was given her an honorary doctorate. She - Director of the set of non-profit organizations like the New York University, College of Brian, the Children's Museum of Art, etc., etc. This successful businessman - now a rich woman, which have been through many years of hard work to achieve perfection and excellence in whatever She tried not to show himself. Like almost all successful entrepreneurs. Vernon had not done this for the money. She set about creating his company to increase family income, and since then it has become a favorite for all the work. However, Vernon ever it is not considered work because it was her passion and her life. But when people work hard and passionately, wanting to be the best, they will almost certainly become the winners. Now Vernon is financially independent. Its membership in the Committee of 200 "(group's most influential entrepreneurs of the country) and the Women's Forum confirms its status as one of the foremost, the leaders of America. These groups were established as examples of leadership for young women seeking to break through the infamous glass ceiling as an enterprising pervootkryvatelnits or professional women.

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