Question #12 How many Internet users are purchasing online? 55% (77% browsed/shopped) Vs. 51% and...
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Transcript of Question #12 How many Internet users are purchasing online? 55% (77% browsed/shopped) Vs. 51% and...
Question #12
How many Internet users are purchasing online? 55% (77% browsed/shopped) Vs. 51% and (75%) last year
Question #13
What is the main advantage of being a pure-play e-tailer? Focused and nimble
What is the main advantage of being a multichannel e-tailer? Brand name Synergies
What has Amazon done right?
Amazon simplifies shopping Equity built with consumers is
saving Amazon with investors Selection, competitive prices Ease of navigating
site/convenience Delivery speed and options Partnerships
Multi-Channel Integration
Watch video tape What are the 3 formats discussed? What are the 3 models of multi-
channel integration? 2 emerging models?
What are the 2 ways multi-channel retailers are structured?
List of group members – IC #6
Achieving Integration
Creating consumer value Leveraging the multi-channel
business model Developing new revenue
streams Channel synchronization
Consumer Value Proposition
Risk ReductionStores Catalog InternetGratification
Objectivity/credibility
Information
Trial PricePers. Service
Consumer Value Proposition
Shopping Ease
Stores Catalog Internet
Payment options
Portability Accessibility
Impulse Longevity Selection
Intentional Browsing
Accessibility
Convenience
Consumer Value Proposition
Shopping Experience
Stores Catalog Internet
Entertainment
Ideas Personalization
Social Interaction
Uniqueness
Immediacy
Community
Leveraging the Multi-Channel Business Model
Leverage existing assets Overcome channel-specific
limitations Gain insight into cross-
channel shopping behavior
Leveraging Existing Assets
Brand name recognition
Leveraging Existing Assets
Brand name recognition Advertising Customers Physical assets Supply chain capabilities Service capabilities
Overcoming Channel Specific Limitations
Stores Space
constraints Inconsistent
execution
Overcoming Channel Specific Limitations
Catalogs High cost
Overcoming Channel Specific Limitations
Catalogs High cost Static
Overcoming Channel Specific Limitations
Internet Lack of visibility
Amazon, wine.com, cooking.com, Mycashmere, Gold Violin launched catalogs
Overcoming Channel Specific Limitations
Internet Lack of credibility
Gaining Consumer Insight Capture true demand
Gaining Consumer Insight Capture true demand Cross-channel visibility Customer feedback
Building the Brand
$1,051
$242$194
$121$0
$200
$400
$600
$800
$1,000
$1,200
Internonly
Store only Catalogonly
Multi
JCPenneyyearly spend
Building the Brand
$900
$400
$150
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
1 Channel 2 Channels 3 Channels
Eddie Baueryearly spend
New Revenue Streams Intensification
Current market/existing customers
Avon, Tupperware, Walgreens Extension
Current market/new customers Eddie Bauer, Sharper Image, Lands’ End – online are new
Victoria’sSecret – men on line
New Revenue Streams Extension
Current market/new customers Eddie Bauer, Sharper Image, Lands’ End
New Revenue Streams Expansion
Current market/new geographic markets
REI-Japan Diversification
New products, services, solutions
Eddie Bauer – Children’s Gap - Maternity
Channel Synchronization Extension of a common brand
Most valuable asset Associated with lifestyle and customer rather than retail format, channel, geography, etc.
Channel Synchronization Merchandise consistency
Limited or focused discrepancy across channels
Channel Synchronization Pricing
Use of flexibility
Channel Synchronization
Pricing Use of
flexibility
Channel Synchronization Cross Promotion
In-store catalog desk/web kiosk Pick up catalog in store Order catalog on line Retail store locators online/catalogs
Advertising circular available online
In-store signage promoting web site and catalog
Channel Synchronization Fulfillment
In-store pickup of online goods Inhouse vs outsourcing East of returns
Customer Relationship Management Leverage at all customer touch points Data management technology