Fiskars Case Study (Consumer Behavior)

On the Cutting Edge with Fiskars Written by Silvia Hodges, PhD, Fordham Law School*

S omewhere in your kitchen drawer you probably have a pair of scissors with an orange handle tucked away. Launched in 1967, the Finnish craft and hand tools company Fiskars has sold more than 1 billion

of their iconic scissors worldwide. Are you enthusiastic about your scissors? Do you spend time researching scissors on the Internet? Scissors are a low-involvement product for most consumers, unless they happen to be scrapbook enthusiasts. Scrapbooking is a method for preserving personal and family history in the form of photographs, printed media, and memorabilia in decorated albums, or scrapbooks. The idea of keeping printed materials of personal interest is not new, although scrapbooking supply stores popping up around the country might suggest otherwise.

Some say that scrapbooking dates to shortly after the invention of printing. With the advent of affordable paper, precursors to modern scrapbooks became available to a wide array of people. Friendship albums became popular in the 16th century, but in the 18th and 19th centuries friendship albums and school yearbooks afforded girls an outlet through which to share their literary skills and document their own personalized historical record. Such outlets were not previously readily available to them.

Today, scrapbooking is more popular than ever. The Craft and Hobby Association (CHA) reports that scrapbooking is the top- selling sector of the 39 craft segments in the $27 billion U.S. craft and hobby industry. There are over 3,000 independent scrapbook stores and well over 1.3 million scrapbook bloggers, thousands of scrapbooking events, and dozens of magazines dedicated to scrapbooking. Many of the major cruise lines now offer special scrapbooking cruises. Despite the widespread use of digital photography, scrapbookers enjoy the hands-on approach of “hard copy” scrapbooking to preserve memories and express their creativity.

The interest in scrapbooking across the U.S. has boomed virtually overnight. The industry doubled in size between 2001 and 2004, to $2.55 billion. According to the CHA, about 35 percent (or 40 million) of the 113 million U.S. households scrapbook, rubber stamp, or make cards. These households spent approximately $4 billion in 2009 on scrapbook, “memory craft,” and other paper crafting products.

In addition to preserving memories, the hobby is notable for the strong social network associated with it. Scrapbooking respondents

have a family-oriented culture, are economically upscale, are well educated, and have an extensive communications network with others involved with the hobby. Hobbyists, known as “scrappers” or “scrapbookers,” get together and scrapbook at each other’s homes, local scrapbook stores, conventions, retreat centers, and on cruises. The attendees share tips and ideas, as well as enjoying a social outlet. Over 500,000 scrapbookers subscribe to a weekly newsletter on scrapbook.com.

All you need to begin scrapbooking are some photos, an album, adhesive, patterned paper to decorate, journal pens, and . . . a sharp pair of scissors. This is where Fiskars comes in. For many scrapbookers, Fiskars scissors are the scissors of choice. A household name in many countries around the world prior to the scrapbooking boom, Fiskars started its word-of-mouth (WOM) initiatives in the U.S. in 2006 and has achieved almost transformational success in building strong and supportive relationships, with a devoted following of scrapbook enthusiasts. Fiskars first recruited four part- time “ambassadors” and brought them to its U.S. headquarters in Madison, Wisconsin, for an intense educational briefing about the company, its products, and its values. The goal was to empower the ambassadors to start blogging, attend trade shows, give scrapbooking classes at retail stores, and pursue other activities on their own to spread goodwill from Fiskars. They also recruited other scrapbookers, called “Fiskateers.” New Fiskateers receive welcome kits with engraved scissors, a booklet on what it means to be a Fiskateer, and tips for recruiting more to their ranks. The recruiting effort created a powerful and influential community. Fiskateers organize local gatherings for scrapbookers called “crops,” where participants talk, crop, and build relationships. The events are organized online by Fiskateers, but are intended to achieve face-to- face interaction.

Engagement, online conversation, and face-to-face among scrapbookers forged strong loyalty to the Fiskars brand and strengthened its connection with customers. In 2008, online chatter in which Fiskars products were referred to by name increased by 600%, and visits to the company website and blog have reached 1.5+ million. Offline, there are more than 1,000 Fiskateers getting paid by craft stores to teach classes using Fiskars products. In 2009, there were more than 5,000 Fiskateers (up from 1,200 in 2007) in all 50 states and in 47 countries, compared with the company’s original goal of 200. In the spring of 2010, Fiskars’ official Facebook fan page had over 4,000 followers. Fans post photos of their scrapbooking projects, join discussion boards, upload videos, and share creative ideas. Avid fans of the brand and its products are seen as more trustworthy and convincing than any advertising could be.

The social media and WOM campaign not only strengthened the company’s relationship with its customers, but changed

*Reproduced by permission from the author.

Case

© C

en ga

ge L

ea rn

in g.

A ll

ri gh

ts re

se rv

ed . N

o di

st ri

bu tio

n al

lo w

ed w

ith ou

t e xp

re ss

a ut

ho ri

za tio

n.

2C h a p t e r 3 : p l a n n i n g a n d d e C i s i o n M a k i n g

the culture at Fiskars itself. Cultivating a relationship with its evangelists inspired Fiskars to change its scrapbooking product development process. Previously, new products at Fiskars were conceived and developed in a vacuum. Fiskars began to survey the Fiskateers and quickly learned from feedback that customers are a great source for product evaluations and ideas. This success, brought about by skillful use of online and offline WOM, has favorably increased brand awareness, as measured by conversation frequency and tone.

Questions 1. How did enlisting Fiskateers help the brand?

2. How can a company like Fiskars gain the most out of a WOM program? What obstacles may have to be overcome internally?

3. How do you measure WOM success?

4. Why do people, in particular young women, want to be part of an online interest group such as Fiskars’ fanpage?

Case

© C

en ga

ge L

ea rn

in g.

A ll

ri gh

ts re

se rv

ed . N

o di

st ri

bu tio

n al

lo w

ed w

ith ou

t e xp

re ss

a ut

ho ri

za tio

n.