At Herman Miller, the “Everybody Deserves a Good Chair” philosophy is truer now than ever, since the legendary furniture manufacturer began making two popular chairs—the Equa XR and Caper XR—available nationwide through Costco. And with the help of People Design, the launch is a class act.

When I first heard of Herman Miller’s venture with Costco as a new retail channel for office chairs, my reaction was what most of you are probably thinking: “Herman Miller, the makers of fine quality furniture, at Costco, the nation’s largest warehouse club?” Something just did not sound right. But after speaking with People Design, the strategic designers behind the initiative, and Bart Pierce, senior manager at Herman Miller for the Home, I quickly learned how little I knew about the giant retailer and the positives this arrangement would have on Herman Miller’s brand and availability of their storied products.

At first glance, a Costco warehouse store seems just that—a warehouse. On closer inspection though, one finds hidden gems nestled behind those industrial-sized boxes of granola bars. On a recent visit I found leather furniture, an impressive grandfather clock, chandeliers and quality electronics. As it turns out, Costco has more of a two-pronged merchandising strategy, so it’s not uncommon for the retailer to seek out premium products for its high-end efforts.

COSTCO + HERMAN MILLER
Costco, according to Pierce, is actually a very appropriate partner for Herman Miller, one the manufacturer heavily researched before selecting. With this move Herman Miller has found an avenue for new fans who may not have had exposure to the brand before. There are two positives: the Costco distribution channel and the retailer’s demographics. The distribution channel opens up new audiences for Herman Miller on a scale and volume that office chair products have not had access to before. And the customer demographic for Costco more closely aligns to the Herman Miller for the Home brand than one might expect. The Herman Miller brand stands for well-designed products with a focus on quality and environmental sustainability. The target Costco demographic places high importance on product value: workmanship, style and longevity of materials. Herman Miller uses quality materials, offers a 12-year warranty, carefully tests products and practices green manufacturing. But how to demonstrate this to the typical Costco buyer in that vast retail environment, especially the customer who may not already have awareness of the Herman Miller brand but does appreciate well-designed products?

First, note the significance of Herman Miller selling office chairs at Costco. For years, Herman Miller was strictly a B2B company. It was only about 15 years ago that it launched Herman Miller for the Home and started retail relationships to sell some HM classics and office products. Previously, buying a chair from Herman Miller meant calling an authorized dealer. And before the Costco launch, shoppers could only see the chairs in an upscale retail environment such as Design Within Reach or Levenger. The latter are not locations where the packaging is the salesperson—customers have knowledgeable, live people to talk to and ask questions. The Costco environment is quite different. This fact offers both a challenge and an opportunity, in view of what packaging can convey.

TEST, ASSESS, LAUNCH
There are two chairs in the launch: One is the high-performance Equa XR chair geared for long hours at workstations, and the other is the Caper XR, a lightweight task chair for a studio or activity area. So while applications and target buyers may be different, warranting different targeted messages, the values behind the brand are consistent.

This project occurred in two phases. The first was a pilot launch in Oct. 2008 in two regions, spreading to a third before the pilot concluded. The second phase is the major launch in Jan. 2009 (get out to your closest Costco store now and check these out!). For the pilot, People Design created a test package design so Herman Miller could get feedback and see if customers were absorbing the brand message. The pilot received positive feedback overall, but from it the team also learned of some items they needed to revise for the full launch.

One visible item that changed was the product package itself. During the pilot phase, the box design was an austere black. Actually, People Design had originally explored three different options: a package that was mysterious and would pique a shopper’s interest; one that was edgy, hip and cool; and the “conservative yet sophisticated” black box. The last design was the one chosen for the pilot. Kevin Budelmann at People Design describes the black box as the “stealth bomber of office chairs,” a look that surprises by making office chairs look sexy. The style of the package is the black-on-black look one might see for a high-tech gadget; it says premium and high performance in a single look.

THE RETAIL PACKAGING IS THE ELEVATOR PITCH
Packaging is “the story in 30 seconds” for a product. If that’s all the time available, what should the package say? After receiving feedback during the pilot phase, People Design refined the packaging to educate customers on the product’s use, in addition to being aesthetically pleasing. The final packages are really more about connecting with lifestyles, showing customers how the chairs can fit into their environments and their lives. The style is clean, open and friendly. The boxes have personality. Photos are modern and bright, always show a human element, and have a light touch with soft shadows. This approach is in stark contrast to the packaging for competing chairs nearby on Costco’s shelves. The competitors are in industrial brown boxes with overly staged photos (never any people) and very little messaging.

Granted, the pure “bargain shopper” looking for the lowest price might not be swept up by packaging, but the price difference between the Herman Miller chairs and most others in the store is not as great as one might think. (A few comparisons at Costco.com will prove this.) Those shoppers willing to spend a few minutes to absorb the Herman Miller story will quickly understand how these chairs are a much better value overall.

THE WEB’S IMPORTANT, TOO
Costco.com features the chairs as well. While the product pages are Costco site templates, they do link to an attractively designed promotional page with visuals and messages to support the Herman Miller story … much as the packaging does in the store.

When purchased online, a chair is shipped in a black-and-white shipping box—not the more-colorful retail box—as a cost-saving move. Even the shipping box is designed, however, retaining some of the retail-box personality. Clever headlines, such as “We’re going to be friends,” reminds buyers that the Caper XR just purchased will become a “go-to” chair for studio or personal space; the Equa XR’s “We’re going to work well together” headline reassures customers that this will become their primary office chair.

Post-purchase, support materials inside the box do more than educate. They also serve to reinforce the brand and product quality. The clean layouts of the in-box brochures judiciously use white space and promote a pared-down design aesthetic. Everything from easy-to- follow instructions to recycled paper reminds buyers of what Herman Miller chairs stand for—smart, solid, easy to use and green.

WORKING WITH A TRUSTED PARTNER
This was the first opportunity for Pierce to work with People Design directly. He’s no stranger to the Herman Miller brand, having worked with the company nine years. And collaborating with the People Design team on this project required no “coming up to speed” period for the designers—Budelmann was already well-versed on the brand, culture and values from his many years of working with Herman Miller. Accomplishing this campaign in a compressed time frame was possible because of the longstanding relationship between Herman Miller and People Design as creative partners. As Pierce notes, “Kevin coming in on this project was a perfect fit. He understands Herman Miller inside and out—his knowledge was a huge advantage for our hyper-accelerated timeframe.”

Hyper-accelerated, indeed: The People Design team started working on the campaign in spring of 2008. Budelmann and principal designer Michelle Brautnick had to create both the high profile package design and instructional and promotional materials before August of the same year—in time for the October pilot. People Design’s work will continue on with the next phase of the website and a May feature in Costco Connection, the printed magazine Costco mails to members and provides digitally online. Be on the lookout for both.

www.peopledesign.com

[TOP]: The packaging for the pilot phase was a black box with a premium look to catch a design-oriented shopper.