Shop to megastore: the rebirth of Prénatal

Even leaders in niche markets can never afford to ignore changes in the external context. New competitors can come on the scene giving customers different options or lower prices; these new players might be mass marketers who are looking to amplify their offering. What’s more, the channels retailers use to reach customers can evolve too, even radically – as digitalization processes clearly show. But most of all, consumer tastes and needs can alter over time, even dramatically, and companies have to transform their value proposition in response or risk going out of business.

These are the dynamics that led Prénatal to completely overhaul its strategy in 2008. The company was founded in 1947 in France and acquired in 1996 by Artsana, an Italian group. The traditional format was a mono-brand store offering mainly clothes, and targeting the maternity market: maternity wear and fashion for new mothers, infants and children (0-8). Prénatal stores were small to medium sized (from 160 to 350 square meters), located primarily on shopping streets in city centers. As for price, Prénatal was positioned in the medium to high range, as were most of the specialized brands in the maternity niche. The idea was that pregnant women and new mothers wanted a few pieces of high-quality clothing with a classic cut, a type of offering that reflected the conception of maternity as a time in a woman’s life when she “retreats from the world,” in a certain sense.

But from 2007 on, the maternity market morphed into something very different. First, a growing number of mass market retailers were breaking into the sector. Their maternity wear and clothing for new mothers, inspired by fast fashion, were in the low to middle price range. This type of offering seemed to be better suited to the tastes of modern women, who were often older when they became mothers; they saw themselves not only as new mothers, they lived full social and professional lives too.

To contend with the entrance of new players who leveraged aggressive pricing policies, an incumbent brand like Prénatal had to rethink its offering and its positioning. The new focus clearly (if not obsessively) centered on customers and their evolving needs. To begin with, company management acknowledged the need expressed by today’s mothers for constant support in their new roles and more information, especially for first-time mums. So the company began to reach beyond clothing to turn into an all-round provider of products and services. In other words, the company decided to rebrand as a point of reference that could accompany and support pregnant women and new mothers throughout their entire maternity up until their children were ready for school.

From a practical point of view, the first step in this new approach involved revisiting basic marketing choices. With the help of semiologists and psychologists, the Prénatal logo was restyled. The old one, with block letters and all caps, conveyed a message of efficiency and rationality, while today’s logo is rounded, more modern and emotional. The company developed a new payoff too – a new together – to accentuate the birth of a new family and new feelings that come with the birth of a child. The entire communication campaign was re-envisioned from this perspective, to send a sincere, authentic message in a consistent way through various channels (including digital platforms).

At a commercial level, the retail format was completely redesigned. In addition to traditional stores (now called green stores) the company would open megastores (over 850 square meters of floor space) located in shopping areas outside of city centers. These new megastores would offer multiple brands and a wide product range both in terms of assortment (including food and toys) and price (with an eye to the mass market and the introduction of special promotions). Above all, megastores had to offer customers a richer, more satisfying experience, becoming a go-to place for all things baby-related, from maternity to parenthood and beyond. Megastores would host events with experts on topics of interest (breastfeeding, infant nutrition, etc), product demonstrations, group discussions, advice on where to go locally to give birth or to spend time with babies. This is how Prénatal shifted focus from products to services, with stores becoming destinations for mums and dads.

Lastly, the online channel was optimized using an integration approach with physical stores. The Prénatal website and app include both emotional and informative digital content on motherhood and parenthood. Customers also get the chance to reserve products for in-store pickup, and to create a registry where relatives and friends can find ideas for baby gifts. A virtual loyalty card becomes a point of access to a variety of information, initiatives and promotions. The overall strategy is to harmonize the Prénatal brand experience across different channels.

As the Prénatal offering changed, so did the corporate culture, promoted through a series of processes, communications and dedicated training sessions. This was the company’s response to the realization that the work and the management of megastores called for a different approach and diverse competencies with respect to the traditional stores.

On the whole, the new Prénatal approach is a totally multichannel one, thanks to physical and digital channels, as well as green stores and megastores. But what specific role would traditional stores play in the new brand offering? This is one of the open questions to be resolved in the near future.

• The essential components underpinning the strategy of a retail company are positioning, tore format, the retailing mix and the channels the company utilizes. When market conditions change, any revision of the strategy has to start with an analysis of these factors, both taken individually and collectively, in light of how each depends on the others.

• The evolution in consumer preference must be constantly monitored by retailers, even when they control niche markets. Change in consumer attitudes represents a chance to rethink the offering, for example (in the case of Prenatal) shifting focus from product to service.

• A multichannel strategy creates value when the benefits deriving from the integration of various channels outweigh the costs of integration. In particular, it’s indispensible to clarify the function and specificities of each channel used in the company’s overall offering.