Leaders of the Pack
DIVERSE AS THEY ARE, our gang of 1998 Market Leaders all share one common trait: They’re ready for commitment. Virgin Atlantic is putting its own stamp on frequent flyer clubs, while NetBuyer is building on Ziff-Davis’ Computer Shopper brand to market online. Communication is a touchstone for American Express, and Fast Company wants to reach a new breed of business reader by direct mail. Online, e-Toys isn’t playing around; it wants to become the virtual toy seller. But Warner Bros.’ Studios and its Music Group are playing nice-via cross promotion.
A feeling of individuality and youth pervades this year’s crop of Market Leaders. Especially youth-half our entries were barely gleams in their founders’ eyes when we did this feature three years ago. Take 2-year-old eToys, for example. The virtual toy seller patterned itself after Amazon.com and welcomed Web shoppers to its world of toys before Toys ‘R’ Us went online. Also online (and just hitting the “terrific twos”), NetBuyer is capitalizing on informational content and Computer Shopper’s marketing model. But not all of our contenders have abandoned the real world. Even though its take on the business environment is hip and up-to-the-minute, Fast Company is relying on direct mail to expand its circulation base, which has grown by four times since it was founded two years ago. But the Web is part of the magazine’s mix, as it is for Warner Bros. Studios and its Music Group, which is building both database and sales as it cross promotes artists like Madonna and Paula Cole via video rentals and TV shows. Thanks to founder Richard Branson’s sensibilities, Virgin Atlantic Airways has always had a funkier feel than its competitors. That extends to its Freeway frequent flyer program, which goes well beyond complimentary peanuts to reward customers. The sixth member of our pack, American Express, may seem like the stodgiest and most reserved of the lot- but there’s nothing creaky about the way its membership program boosted retention rates. These companies became leaders by marching to the beat of their own drum-just turn the page and listen.
