Case Study:
There’s nothing like a lazy afternoon spent browsing Main Street or the mall, latte in hand, taking in the sights, sounds, and intoxicating smell of Cinnabon. You just can’t get that online at iTunes, Amazon, or eBay. That’s why Flight 001 founders John Sencion and Brad John take every detail in their retail stores very seriously. Flight 001 is all about the experience. They care deeply about the experience you have in the store and carefully select every product, whether it be a $6.00 lime green luggage tag or a $600 designer carryon, to ensure you feel just as great once you arrive at your destination. The company gets its name from the famous Pan Am Flight 001. The flight originated in San Francisco and continued for 46 hours, stopping in Hawaii, Tokyo, Hong Kong, Bangkok, Calcutta, Delhi, Beirut, Istanbul, Frankfurt, London, and finally landing in New York. From the late 1940s through the 1980s, Flight 001 was the flight for the sophisticated world traveler. The founders set out to create a retail experience worthy of the name. Every store features a curved interior, mimicking the walls of an airplane fuselage. The sales desk looks like the ticket counter at an airport. It was important to Sencion that every aspect of the store design suggested First Class, from the walnut panels on the walls to the time zone clocks and top-notch customer service. When the first store opened, one of the most unique features that came out of all of that attention to detail was a sense of intimacy, something you don’t get in a large department store or discount retailer. The founders began to notice that people were exploring the store, rather than just running in and picking up what they came in for. This type of grazing is great for sales. When customers come in for a travel clock, they very often leave with something they didn’t realize they needed—perhaps unique space-saving packing supplies, an interesting guide book, or a stylish document organizer. In its tenth year, Flight 001 was rapidly opening new locations in selected cities in the United States. You definitely won’t see them in a strip mall off the highway; that’s something Brad John feels very strongly about. While there’s something for everyone in the store, their customers tend to be young, trendy, and affluent. These people prefer to shop on secondary streets with clusters of boutiques and coffee shops. “Our stores that do the best seem to be in the most hip, cool places,” remarks John. “It’s been a bit difficult because these kind of streets don’t exist in every city in America.” John acknowledges that if they want to continue to grow the company, they will eventually need to be open to other types of locations, even upscale malls, but as a relatively young brand, staying consistent in design and venue is important. While Flight 001 has made their products available on several airline Web sites, they have yet to set up shop at the airport. With airport layovers, delays, and early arrival times getting longer, airports are rethinking the way they look at retail and are asking retailers to consider opening in their “air malls.” In recent years, many larger airports have added celebrity chef restaurants, Aveda spas, wine bars, and upscale clothing retailers. “I do think people are spending a lot more money in airports and not just picking up little items,” says John. “We do want to open up in airports, but we want to open up in cool airports.”
Q1. What are the key components to Flight 001’s retailing strategy?
Q2. Flight 001 was started in the late 1990s because the founders couldn’t find all their travel needs in one place. Do you think they face any impending threat from so-called category killers as these stores continue to raise the bar in terms of products offered and style? Explain.
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.