Cash converters has launched a new online initiative and invested the smallest possible amount of capital in doing soon. The company has been crowing about the giant leap into online space, in the same way that a 'technophobe' is proud of using Microsoft paint. So what is the current strategy?
Cash converters claims that it is trying to improve its brand image, away from sleazy corner pawn store and more towards a boutique bargain bin. Firstly let me define 'boutique bargain bin' as an upmarket pawn store, that is more attractive to a mainstream audience.
The website now lists all the products held in stores across the country, as well as a bidding page & buying page. Customers can buy the products online and have it sent to them or arrange their own delivery. The system does increase reach, but that is about it.
The problem with their plan is the low level integration of their investment in their website. Sure, it is a collection of everything that the stores have to offer, but it is doing nothing for their branding. If the company is serious about changing their target demographic, they need to increase both reach and image.
Josh Strawczynski's Opinion
It frustrates me I see companies dip their toes in the water with no real strategic plan. Julian Cole always talks about strategy integration. He talks about this because it is essential, for instance, you could walk to the shops for milk, but if you only brought enough money for milk, then you can't expand your operation while you are there.
Sam Berringer's Opinion
I personally think that slowly implementing online strategy is a good idea, but I don't believe that their goals are in line with their marketing actions. Maybe next year Cash Converters.
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