VISUAL STRATEGY GUIDE
THE SHARPER IMAGE
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There is a part of you that no one else understands.
The Sharper Image’s mission is to share this enthusiasm—to share the fun of discovering all kinds of exciting, well-designed, and technologically advanced products. -Richard Thalheimer / Founder of TSI
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THE SHARPER IMAGE
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01 THE PAST 1.1 BRAND OVERVIEW / 08
1.2 BRAND TIMELINE / 14
1.3 PREVIOUS COMPETITORS / 16
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THE SHARPER IMAGE
- Table of Contents -
02 THE FUTURE 2.1 2.2 OUR PAST LOOK / 24
2.3 OUR NEW DIRECTION / 26
2.4 OUR FUTURE LOOK / 28
2.5 NEW AUDIENCE / 32
2.6 NEW COMPETITORS / 42
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MISSION STATEMENT / 22
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THE SHARPER IMAGE
01 / The Past
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THE SHARPER IMAGE
01.1 / Brand Overview
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1.1
BRAND OVERVIEW The Sharper Image started the business by selling digital wrist watches through a magazine ad. Later on Richard Thalheimer expand it to included pricy gadgets due to the growing of yuppie generation. However, while the generation started to fading by the end of 1980s, it reflected on the decline of its earning, which push the company to search for new customers.
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Founded in 1977 The Sharper Image was founded in 1977 by Richard Thalheimer. Thalheimer put himself through law school in San Francisco by selling office supplies, and three years after his graduation he hit upon a potentially profitable marketing idea that led to a full-time career in retailing. An avid runner, Thalheimer speculated that high-tech stopwatches might prove popular among others who enjoyed the sport. After lining up a supplier, he invested $1,000 in a magazine ad offering digital wristwatches with a stopwatch mechanism for sale by mail. Thalheimer’s venture coincided with the onset of a national jogging craze; he was able to sell out his entire stock of watches. Realizing that a large American market existed for high-priced gadgetry, primarily among the country’s growing yuppie community, of which he was a member, Thalheimer used his profits from the watch venture to run similar ads for telephones, miniature calculators, and other devices. In 1978, he incorporated his mail order business, calling it The Sharper Image, and the following year, he displayed his product line in a lavish, glossy mail order catalog.
1978 1979 1981 1982 1985
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Incorporated the mail order business, calling it The Sharper Image
Displayed the product line in a lavish, glossy mail order catalog
Company reported revenues of $28 million and profits of $1.4 million
Revenues reached the $51 million mark
Issuing 42 million catalogs annually and reporting sales of $69 million
THE SHARPER IMAGE
1985 1987
1989 1990
12 stores were introduced in such urban centers as New York, St. Louis, and Honolulu
Markedly slower sales, contributed to a first quarter loss of $72,000
First quarter losses totaled $1.2 million, and were expected to continue for the next three months
The company’s earnings had fallen to $4.7 million
Two-year freeze on salary increases lead to a lay off of 110 employees in September
Decline in Mid-1980s In the mid-1980s, orders from The Sharper Image catalogs began to decline slightly, and the company explored new marketing techniques. When The Sharper Image advertisements on cable television proved unsuccessful, the company focused on appealing to customers who preferred not to purchase items through mail order, opening The Sharper Image retail stores around the country. The new Sharper Image stores contributed strong sales to the company’s overall performance, and by the end of 1985 revenues from all operations had risen to $87 million. However, financial growth over the next two years stagnated. As new The Sharper Image retail outlets emerged, the costs they incurred, as well as markedly slower sales, contributed to a first quarter loss of $72,000 in 1987. To offset its lackluster performance, the company went public in April 1987, selling shares over the counter on the New York Stock Exchange.
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1988
01.1 / Brand Overview
Refocusing in the 1990s The Sharper Image introduced catalogs aimed at several new types of customers in 1990. Sharper Image Kids featured video games and other toys for children. Catalogs designed specifically for customers over the age of 50 were introduced, as were home furnishings catalogs, prompted by a perceived trend among Americans to spend more time at home. In a joint promotional venture, The Sharper Image began to feature celebrities on the cover of its catalogs in exchange for advertising tied in with movie ads. The company also planned to market more functional products, such as devices for measuring cholesterol levels in food. “We want to move away from the disposable glitz of the 80s,� Thalheimer told Business Week in 1990. During this time, the company sought to cut its spending on catalog operations, reducing its yearly mailings to 32 million and trimming its mailing list by dropping customers who had not recently made purchases.
1991
Like most retailers, The Sharper Image suffered a heavy blow at the end of 1990, when holiday sales declined precipitously. The Sharper Image reported losses of $3.6 million, as sales dropped 13 percent to $181 million.
1992 1993 1994 1995
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Sales fell to $142 million and losses reached $5.2 million
Began to market its products through mall carts and local newspaper ads
Marketing deals with several department stores, including Bloomingdale’s
Joined with five other retailers and media giant Time Warner Inc. to launch a new 24-hour cable shopping channel
Began targeting women through its Sharper Image SPA catalog
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01.1 / Brand Overview
The Downfall Even at its most profitable, Sharper Image never generated the kind of sustained customer loyalty enjoyed by its bigger rivals, like Best Buy, which carried must-have new movies and video games that lured shoppers back into its stores every few weeks. That left the Sharper Image struggling for an identity in consumer electronics, a product line that is among the most competitive in American retailing.
1998 2002
But in 2005, a Consumer Reports study suggested that the product might be dangerous to users because the purifiers generated small amounts of ozone. Sales plunged. Air purifiers, which accounted for 28 percent of the chain’s sales in 2005, fell to 9.4 percent of sales in 2007.
2003 2005 2008
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Online revenues were $5 million
Circuit City begins stocking Sharper Image Design products
Had more than 140 stores and was opening two dozen stores a year
Consumer Reports study suggested that the purifiers might be dangerous to users
Filed for bankruptcy protection
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The chain began experiencing “steady sales declines,� in 2004, according to its bankruptcy filing. Its profits fell throughout 2005, 2006 and 2007. Sharper Image tried to avoid that problem with distinctive, even zany products that could not be found anywhere else, at least for a while. But that led the company to take big bets on a few products, a risky strategy that cost it dearly in at least one widely publicized case. Sharper Image was an early seller of air purifiers, which it sold, rather briskly, under the name Ionic Breeze.
1.2
BRAND TIMELINE
Losses reached $5.2 million
Refocusing
Earnings keep falling
First quarter losses totaled $1.2 million
First quarter loss of $72,000
Decline
Revenues reached $51 million
Revenues of $28 million
Mail order catalog
Founded
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01.2 / Brand Timeline THE SHARPER IMAGE
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Rebirth
Declared bankrupt
Bad Consumer Reports
Had more than 140 stores
Downfall
Began targeting women
Join retailers
Marketing deals with several department stores
Start to market local newspaper ads
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1.3
PREVIOUS COMPETITORS 01 / 02 / 03 / 04 / 05 / 06 / 07 / 08 / 09 / 10 /
Bed Bath & Beyond Best Buy Brookstone, Inc. Circuit City Hammacher Schlemmer & Co., Inc. Radio Shack Corporation Relax the Back Corporation Sears SkyMall Williams-Sonama
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01.3 / Previous Competitors
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THE SHARPER IMAGE
02 / The Future
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“You’re a real prince. You’re a gentleman and a scholar.” -J.D. Salinger / American Writer
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02 / The Future
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02.1 / Mission Statement
MISSION 2.1 STATEMENT
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To provide the aspirational man tools to develop a cutting edge facade.
2.2
OUR PAST LOOK According to Richard Thalheimer, the founder of The Sharper Image, the mission of the company is to bring fun to our life. The Sharper Image was like a mall with all kinds of gadgets with multiple functions and new tech, which makes people who purchase those gadgets looks cool and fresh.
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02.2 / Our Past Look
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2.3
OUR NEW DIRECTION The Sharper Image has been focusing primarily on male products from various categories and different age groups of audience. The mission that the company had previously was to spread out the fun of discovering new technology and innovative products. It is popular to people who want to appear higher in society. The new objective would be supporting people who want to be seen as special, whatever it happens to be. Furthermore, it could deliver a service like a consulting firm which provides programs for professionalism. The program can help them to not only have a sharper appearance, but also real skill.
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02.3 / Our New Direction
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Attractiveness is the basis of all human relationships.
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02.4 / Our Future Look
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2.4
OUR FUTURE LOOK The vision of The Sharper Image will reinforce not only outward appearance, but inner character. Gaining intelligence within is the essential step to completing a person—to become a man that every other man wants to be.
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Become the man
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02.4 / Our Future Look
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that every other man wants to be.
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02.5 / New Audience
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2.5
NEW AUDIENCE The new audience of The Sharper Image still preserve some part of the previous audience, but more positive and learning-driven. All of the them are planning or wanting to achieve something they are not yet achieved. Aim high, gentlemen; we will make it yours.
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Age Location
Profile
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40 Los Angeles
DENNIS BRYANT PLANNING ON CHANGING CAREERS / He never thinks he is into his job since he doesn’t feel happy working as a banker / He collects cool houseware because his kids think that he is cool / Interested in high-tech products and will purchase it right after it releases without checking any reviews / Considering changing his job because being a banker is so boring / Reads newspaper every morning before going to the office because he feels comfortable knowing what is going on in the world / His wife complains that his dress style doesn’t fit his age but he feels comfortable about it / He purchased a gym membership which he never used but he feel good just owning it
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02.5 / New Audience
Profile
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21 San Francisco
MICHAEL COLLINS SENIOR IN COLLEDGE / Has had a part time job in Taco Bell for a year because he has student debt / Preparing for his final year in the accounting department but admires those classmates who already got jobs / Lives with his mom after his parents got divorced, which he never wants to mention in school / He sometimes shows his temper to customers due to their nonsense requests / Feels anxious while having group projects because he always think his classmates are way cooler than her / Spends at least three hours per day surfing the Internet to get a sense of clothing and technology trends / Always stays up late even if there is no project due; he feels that he is not at the right path of his life
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Age Location
Age Location
Profile
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32 Oakland
ERIC THOMPSON SINGLE DAD / He became anxious after his divorce and shopping makes him feel better so he purchases lots of stuff that he doesn’t really need / He just lost his job but he doesn’t want to lose face in front of friends so he still buying luxurious brands / Lives with his brother who is a doctor in college that he think is the most boring job on the world / All of his families are Christian and they feel ashamed about his failed marriage / He loves drinking with group of friends and he always pays the bill because that makes him feel good / He sends his 5 year old son to private school and pick him up by his sports car after school everyday so he can show off his car / He prefers several pricy brands and will collect all of their products no matter how much they cost
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02.5 / New Audience
Profile
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23 San Jose
ADRIAN MARTINEZ JOB HUNTING / New college graduate major in computer programming so he is not good with social skills / Always takes Muni with his headphones on since he doesn’t want any strangers to bother him / Never done laundry in his life since his mom always took care of that / Feels nervous talking in front of his classmates but he really wants to prove that he can do it / Lives with two international students for three years but never really talks to them, he doesn’t even know where they come from / Doesn’t know how to smoke but he always wanted to try it since every one of his cool classmates do it / His friends think he is weird because he is sloppy and always alone
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Age Location
Age Location
Profile
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30 San Mateo
DARRYL CARTER ENTREPRENEUR / Left his company and became a freelance UX/UI designer because that what he always dreamed about / Goes to a fancy lounge every Friday night to socialize because he enjoys the atmosphere and meeting new people / Works out four times a week since he thinks staying in good shape will look good in a suit / Likes to buy new tech products, parody them on his blog, and tweet it because he loves to be endorsed / Subscribes to at least five fashion magazines to make sure he follows the trends / Started his own studio last month in a fancy business building since he want his clients to think he has good taste / Doesn’t want a serious relationship; instead, he likes the freedom of staying single to hit on girls
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02.5 / New Audience
Profile
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25 San Francisco
JAKE RODRIGUEZ NEW INTERN IN LAW OFFICE / Current student in state college and he is one of his instructor’s favorite students which makes him feel stressed out / Has never been in a relationship since he feels nervous in front of girls / Writes in a diary everyday to express himself since he doesn’t really have a friend to share with / Cannot get along with his boss because he can’t express himself well / He has trouble using software but feels embarrassed to ask his coworkers / He never really wants to become a lawyer but he feels like being a lawyer makes him look cooler / Lives alone in a rent studio because he is antisocial
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Age Location
Age Location
Profile
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55 New York
MYRON ANDERSON HEAD OF THE HUMAN RESOURCES DEPT. / Has been working in the field for ten years, so he is trusted by his boss / His kid just earned a scholarship to study abroad which he is really proud of / Popular Blogger on New York Times posting business related material, which made him become well known in the field / Self taught accountant, shows strong profession skills and ambition / Hosts the tennis club for his company every weekend, which is how he spends time to understand his employees / A part-time instructor in NYC where he recommends students for jobs. His students respect and admire him / Now lives with his wife in NY, they are still close and attending marathons together every now and then
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02.5 / New Audience
Profile
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27 Los Angeles
MINDY HSU SHOP-A-HOLIC / She doesn’t need to work since her family owned business earns a lot of money / Doesn’t need to worry about taking care of the business because she has three older bothers / She has been traveling all over the world after graduated from high school since she wants to collect luxurious bags from different countries / She was the standard that all of other girls in high school want to follow since she always followed the trends / Has personal shopping assistants and drivers due to her shopping needs / Hangs out with wealthy friends and always compares how much they spend on the products to each other / Always trying to show off in front of her friends since she doesn’t want to lose face / Her parents got her a personal flight because they think it is too expensive to keep buying flight tickets
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Age Location
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02.6 / New Competitors
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2.6
NEW COMPETITORS The Sharper Image’s new market will combine both education and entertainment. There will be resources for learning professional skills and also places to hang out and have fun. Each field will support each other and help them to develop in the future.
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All content for The Sharper Image Visual Strategy Guide was collected, conceived, written and design by Grace Min Shan Lee. www.behance.net/graceminshanlee School / Academy of Art University Course / GR604: Nature of Identity Instructor / Hunter Wimmer Copyright Š Grace Min Shan Lee The image in this book are used in accordance with the Creative Commons License. This book is a non-commercial work produced as a student project for educational purpose, and as such is considered a derivative work under the Fair Use Clause of U.S. Copyright Law.