A New Product for a New Channel Mabel's Labels come in a variety of styles, including sticky labels, clothing labels, shoe tags, and bag tags. All labels can be personalized by choosing the label style and a colourful design and adding the child's name. This highly individualized approach works well in an online environment but created a major challenge when the partners decided to make their labels available in a retail setting. One approach they considered was to stock the most popular names in spinning racks at the stores, the way some other personalized products are displayed, but they were concerned about the potential challenges of managing that system. Cole says, "How do you keep track? Oh, the Jennifers are sold out there and the Alexes are all gone there. It was too overwhelming." Mabel's Labels' solution was to create a new line of products for the retail channel. After two years of development, they created Write Away!, a new line of peel-and stick labels that are written on with marker and a clear overlay that is pressed over top as a lamination, making the labels dishwasher and microwave proof. They sell at Walmart for $10.47 for a package of 30. Working with Walmart The partners were intimidated at the thought of approaching such a big retailer, but they hadWorking with Walmart The partners were intimidated at the thought of approaching such a big retailer, but they had an incredible experience. From the outset, Walmart Canada was extremely open to learning about an offering from a small Canadian manufacturer, especially one with a strong online presence but no retail presence. The partners discovered that, for Walmart buyers, it's important to stay in touch with what Canadian moms are buying online and what brands they care about. Businesses owned by women are also a big focus for Walmart. Cole describes their reception by Walmart: "Here's little Mabel and big, old Walmart. But they responded really warmly to us. They recognized the value of the product and knew their customers would love it." Developing New Capabilities Retail was a whole new territory for the partners, and so it was hard for them to even know where to start. Walmart could move vast quantities of their Write Away! Labels, but what they didn't realize at first was how thoroughly a Walmart listing would transform their business-and how quickly. From establishing a new supply chain from China to decoding the world of third-party logistics, Mabel's Labels had just four months to reinvent the way it did business to meet Walmart's deadline for the 2012 back-to-school season. "It was as if we were starting a second company," says Cole. The firm approached this task systematically, doing intensive preparations under the guidance of a key adviser with experience dealing with Walmart and carefully executing the sweeping changes needed to become a Walmart supplier. The Mabel's Labels team's copious preparations helped it overcome the "be careful what you wish for" moment many Walmart suppliers experience when they realize how much they'll have to do to meet the retailer's exacting standards. They first needed to develop realistic sales projections. From there, they determined the production volumes and capital they'd need and mapped out how they'd pick an overseas manufacturer to produce enough labels for 275 Walmart Canada stores. A month after the pitch meeting with Walmart, the two parties struck a deal that metWhile many bricks-and-mortar retailers are developing multichannel marketing systems by adding online options to their distribution strategies, one Canadian online retailer is moving in the other direction. Mabel's Labels, a Hamilton, Ontario, company that manufactures and markets personalized labels for children's clothing, lunch boxes, and other items, has started selling its products through Walmart Canada. Mabel's Labels began when four moms-Julie Cole, Julie Ellis, Tricia Mumby, and Cynthia Esp -grew tired of their kids coming home from daycare, school, or camp without all their belongings and decided to come up with a solution to the problem. They created a line of personalized labels that can be affixed to clothes, lunch boxes, backpacks, water bottles, and anything else kids tote around and often leave behind. Ten years later, the business had sold more than 50 million labels in 97 countries through its website, and they have registered the trademark for the slogan, "Labels for the stuff kids lose!" They have mastered social media, hired public relations companies to generate attention in mom-oriented media, won plenty of business awards, and built an incredibly loyal customer base. Many celebrity moms have used Mabel's Labels, including Jennifer Garner, Rachel Weisz, Reese Witherspoon, Gwyneth Paltrow, and Victoria Beckham. Despite the devoted online following, the move to sell products through retailers was in response to the needs of the market, particularly the calls from customers needing labels quickly. As Julie Cole explains, "We all know that feeling-you've procrastinated ordering and your child leaves for camp TOMORROW. Now when you're having a last-minute panic, you'll have the convenience of being able to pick something up in a nearby retail location." The move to Walmart also provides a convenient way for parents to experience and access the products. The labels are now more widely available to busy moms on the go, who can grab the labels along with other essentials ahead of sending kids off to camp or back to school. People who don't feel comfortable shopping online can now get their hands on Mabel's Labels, too. The partners worried about cannibalizing their own online business by going the retail route, but after conducting market research and focus groups they determined that the two channels served different markets.What is Mabel's Labels Value Proposition? Are they following it and why? For Mabel's Labels: 1. Clearly describe ONE Customer segment they are targeting and identify as many segmentation variables that they are using as you can. (3 marks] 2. Describe ONE B2B Segment as they are now targeting Walmart. Be specific in your description. (2 marks) 3. What is a new customer segment that might have use for write-up labels? Give it a name and describe this segment with as many segmentation variables as you can. (3 marks) 4. Channel conflict does not appear to be an issue yet, provided Walmart is able to sell at a retail price lower than Mabel's online price. What is Channel Conflict? How can Mabel's Labels prevent it from happening once it starts to sell through other retail chains? 5. a. Discuss all IMC tools that Mabel's Labels used initially and that are mentioned in the case. (4 marks) b. When they move to selling through retail chains, what IMC tools do they need to modify? (3 marks) 6. a. Is Mabel's Labels pursuing a Push or a Pull strategy with their move to Walmart? Explain fully. (3 marks) b. Based on the case, what type of Distribution Strategy is Mabel's Labels using? 7. From your understanding of the case, describe the Value Delivery Network that Mabel's Labels has set up for their move to in-store retail? B. What is Mabel's Labels pricing strategy online and in-store? Describe it fully and explain the changes that are happening because of adding a retailer. 9. Mabel's Labels decided to expand globally. 1. Briefly outline all the possible product and communication strategies used for adapting Mabel's Labels to non-English speaking regions. (5 marks) 2. Which product and communications strategy do you think they will use when expanding globally and why? 10. State and discuss a total of THREE (microenvironmental and/or macroenvironmental forces) that affected Mabel's Labels decision to modify their distribution channels based on the case. 11