Technology In - InMotion Entertainment

Technology In
Motion
By Ramon Lo
Project Horizon Mixes Business, Pleasure In Offerings
When Jeremy Smith took over as
president of Project Horizon in 2006, he
had two goals.
The first was to develop and market a
stable of consumer electronics brands in
airports. Years later, Project Horizon has
expanded to include Soundbalance,
developed in partnership with APW Brands,
and Headphone Hub to go along with its
popular InMotion Entertainment concept.
The second goal was to become an
airport retail leader in terms of market
share. Project Horizon accomplished that,
too, with 75 locations in 35 airports.
Having achieved both goals, Smith and
Project Horizon have shifted into the next
Below Right: Soundbalance, the result of the partnership between Project
Horizon and APW Brands, features mobile business and entertainment devices
and media along with eco-friendly products such as solar-powered chargers.
There are 10 stores with four in development for early 2013.
Below Left: Headphone Hub graduated from a seasonal campaign to a dedicated
section in InMotion Entertainment stores, and it is now an in-line store. The first
locations were in Minneapolis-St. Paul International and George Bush Intercontinental.
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phase of firmly establishing their position.
“I want to be their technology go-to
guy,” Smith explains.
Taking Over
Gate Petroleum, with a portfolio of
businesses ranging from resorts to
convenience stores to concrete plants,
made an investment in Project Horizon in
2000 before eventually acquiring a
majority interest in 2006. Smith, who had
been with Gate since the early 1980s, sat
on the Project Horizon board before
becoming the company’s president in
summer 2006. The move was a crash
course in an industry unlike any in which
Left To Right: Jeremy Smith sat on
the Project Horizon board when Gate
Petroleum made its initial investment
in the company in 2000. When Gate
acquired a majority interest six years
later, Smith became Project Horizon’s
president, immediately setting in
motion a series of initiatives to put
the company’s house in order.
Gate’s companies operated.
“It just seemed like an interesting
challenge, and I love challenges,” Smith
explains.
Upon taking over, Smith knew that
before he could take on the task of growing
the business, the company needed some
“tightening up.” This called for proactive
measures such as store renovations, even
if leases did not require they be done.
“The company has always been a very
good business partner and has been
responsive to our input and suggestions,”
recalls Walt Froman, senior manager of
marketing and operations for Portland
International (PDX), the site of Project
Horizon’s first InMotion location.
Smith also strengthened purchasing and
merchandising divisions, and he fortified
back-of-the-house software systems that
support employees in the field.
“Once we had our house in order, I felt
that we can grow,” Smith states. “And
grow we did.”
Staying On Top
In terms of market share, Project Horizon
has long been the dominant player. Over
the past few years, though, the playing field
has become more crowded with the
emergence of new competitors and airport
retail stores that have added or expanded
their accessory offerings.
This, however, has not altered Project
Horizon’s approach to how it does business
or what it does to remain atop its category.
The company stocks the shelves with
the latest must-have items, focusing on
the impulse-driven traveling consumer,
whose attention is much shorter when
rushing to make a flight than a consumer
strolling a mall at his leisure. It is necessary
when operating in a category where
change can be sudden and dramatic,
Smith says, adding that it is the reason the
company opts not to adhere to a schedule
of when products should be swapped out,
instead choosing to act swiftly in replacing
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what isn’t working.
“Unlike some retailers that have preset
dates, we try and stay nimble and base
our inventory flows and product launches
based on opportunity,” explains Eden
Goldberg, vice president of marketing and
business development.
As a result, InMotion Entertainment has
been recognized by trade publications
such as Dealerscope Magazine and the
Consumer Electronics Association’s Twice
Magazine as a top retailer in their
respective lists. The concept is the only
airport retailer in a field that includes
hardware manufacturers and much larger
electronic retailers.
Project Horizon also regularly attends
conferences such as the annual Consumer
Electronics Show. The goal isn’t only to see
the latest offerings but to further cement
relationships with partners such as
Monster.
Company employees from the store
level on up are encouraged to offer their
feedback on what consumers are looking
for and even to conduct their own
research on product recommendations.
Project Horizon also knew when to
shift focus. The initial focal point of
InMotion Entertainment, when it was
known as InMotion Pictures and had also
acquired airport music retailer Altitunes,
was on music retail and movie rentals
and complementary items such as DVD
players. Eventually, the line between
business and pleasure blurred, with the
store catering to both segments.
As personal
electronics such as
smartphones and
tablets blur the line
between business and
pleasure, InMotion
Entertainment has
evolved its business
model to include
accessories focused
on both areas.
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Executive Vice President Tom Hurd
notes that associate training through
various resources such as the
company’s online training program
and annual store manager meetings
are key to growth and success.
Eden Goldberg, Project Horizon’s
vice president of marketing and
business development, likens the
pairing of a good set of headphones
for a player such as a smartphone or
iPod to the pairing of a great stereo
receiver with equally great speakers;
she says this is the mindset behind
Headphone Hub.
“Electronics have had such a convergent
model over the course of time,” Goldberg
explains. “It’s understanding a traveler
needs to be entertained, as well be
productive in their business.”
It’s The People
Smith says the success of the company
has been the result of the hard work of its
employees, from upper management to
associates in the field, many of whom
predate his time with Project Horizon. As
a result, there is extra emphasis on hiring
people with a mindset matching Project
Horizon’s philosophies. The company
searches for those looking to evolve and
grow, not just because they will be
working with products that could change
weekly, monthly or yearly.
“You need to want to be in a growing,
changing
environment,”
Goldberg
explains. “Each one of the employees of
Project Horizon has that in their DNA.”
With a great focus on people comes an
equally great focus on training. In addition
to in-store training, Project Horizon
developed a proprietary online program to
educate associates on products, as well as
the company’s values and expectations.
“It provides product, sales and practical
knowledge they need to be successful,”
adds Executive Vice President Tom Hurd.
“We regularly refine the system based on
feedback from managers and associates
and work with our vendor partners on the
latest product training.”
Training even drills all the way down to
the components of a product, such as the
innards of a headphone, so that style isn’t
the only deciding factor. The knowledge is
necessary so that associates can educate
a consumer while providing him or her
with comfort in spending money on a
quality product.
Project Horizon also conducts weeklong
meetings at a centralized location for all of
its store managers. The focus is on training
and development with participation from
the company’s vendors, to whom they
refer as partners, as well.
“Each partner that we invite has a
different message and a different
workshop,” Goldberg explains, noting that
Beats co-founder and noted record
executive Jimmy Iovine once flew in just
to speak to Project Horizon associates.
Project Horizon also allows its
employees to engage in what they call
Smack. The closed-loop communications
tool is an online message board of sorts
where associates engage each other in
communicating
successes
and
encouragement on a sale or feedback
from a customer. Essentially, it is used as
a means of motivation in a fun manner.
“At this point, it’s probably 60%
bragging and competition, and 40%
coaching and encouragement, all of which
is important,” Hurd says.
Headphone Hub
Project Horizon has not been without
its missteps, Smith says.
In 2009, the company paired with retailer
Wireless Giant to develop BlackBerrybranded stores. Unfortunately, about the
same time the stores opened, BlackBerry’s
image fell from a combination of delayed
launches and the rise of Apple and
Android devices.
“There were no more legs to it,” Smith
explains, noting that the last of the six
stores closed Oct. 31. “It was better to
admit it and move on.”
There was a silver lining in the form of
Headphone Hub. The concept grew
organically, starting as a seasonal campaign
promoting an emerging product category
and becoming a dedicated section in
stores. With space suddenly available, the
next step was to move Headphone Hub
into an in-line format.
“We had the excess real estate, so we
said we’ll give this a go,” Smith says.
But why a store selling only headphones?
“It’s like buying a great receiver but with
really poor speakers,” Goldberg explains,
likening the receiver to iPods and
smartphones. “If you’re going to buy a
nice receiver, you should have a nice pair
of speakers to complement it.”
So far, the concept, with locations at
Minneapolis-St. Paul International (MSP)
and George Bush Intercontinental (IAH),
has performed well.
“I have to say I was a little skeptical,”
says John Greer, assistant director of
concessions and business development for
MSP. “I wasn’t sure that just carrying one
specific type of product would be enough
to generate sufficient sales but was willing
to give it a shot based on their proven
experience as operators in the past. They
once again showed it was a great idea.”
On The Horizon
With its stable of brands, Project
Horizon is looking to further grow in
airports. With the flexibility afforded by
formats such as kiosks and wall units for
a concept such as Headphone Hub, Smith
says he thinks it will be easy to achieve
growth.
As for new concepts, he acknowledges
that there is indeed more to come.
Despite the experience with BlackBerry,
he is not opposed to developing another
nationally branded concept should an
opportunity present itself, hinting that one
might be on the way.
Smith also has been pressed on the
company’s interest in expanding overseas.
“My position today has always been that
there are so many good opportunities in
the U.S. airport market that I’d rather stick
to what I know best,” he explains.
We’d like to hear your opinion
about this article. Please direct all
correspondence to Ramon Lo at
ramon@airportrevenuenews.com.
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