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Online Selling Channel
Online Selling Channel
Distribution Channel Overview
Distribution Channel Overview
{ Distribution determines how the customer receives a product or
service = determines brand image.
{ Distribution channel= group of interdependent firms that work
together to transfer product and information from the supplier to the consumer
{ Is composed of:
z Producers, manufacturers, or originators of the product or
service,
z Intermediaries—the firms that match buyers and sellers and
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Distribution Channel Overview
Distribution Channel Overview
{ Each channel member performs some of the marketing functions
needed to get the product from the point of origin to the point of consumption.
{ Intermediaries:
z Perform some of these functions more effectively &
efficiently than other channel participants.
z Benefits = mediating transactions between parties, they
provide cost savings in the form of lowered search, monetary, transaction, and energy costs.
z When selling online (DISINTERMEDIATION), who
performs these functionsin lieu of the Intermediary?
Distribution Channel Overview
Distribution Channel Overview
4 elements of a company’s channel structure:
1.
Types of channel intermediaries.
2.Length of the channel.
3.
Functions performed by members of the
channel.
4.
Physical and informational systems that link the
channel members and provide for coordination
and management of their collective effort to
deliver the product or service.
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Types of Intermediaries
Types of Intermediaries
Channel intermediaries include:
1. Wholesalers:buy products from the manufacturer + resell them to retailers.
2. Retailers(brick-and-mortar & online): buy products from wholesalers + sell them to consumers.
3. Brokers:facilitate transactions between buyers and sellers without representing either party = market makers.
4. Agents:represent the buyer/seller + facilitate transactions between buyers and sellers but do not take title to the goods. Manufacturer’s agents represent the seller & purchasing agents represent the buyer. { For digital products(software), the entire distribution channel
may be Internet based = the supplier can delivers it over the Internet to the buyer’s computer.
{ Non-digital products(flowers/wine) may be purchased online but must be delivered via truck. The exact location of that shipment can be tracked using a Web-based interface.
Distribution Channel Length and
Distribution Channel Length and
Functions
Functions
{ The length = number of intermediaries between supplier and
consumer:
z Direct distribution channel
{No intermediaries,
{The manufacturer deals directly with the consumer, {Dell Computer sells directly to customers.
z Indirect channel
{Incorporate one or more intermediaries,
{Suppliers, a manufacturer, wholesalers, retailers, end
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Distribution Channel Length and
Distribution Channel Length and
Functions
Functions
{ Disintermediation =eliminating traditional intermediaries:
z The Internet was predicted to eliminate intermediaries, z It can potentially reduce costs,
z Taken to its extreme, disintermediation allows the supplier to
transfer goods and services directly to the consumer in a direct channel.
z Complete disintermediation = the exception because
intermediaries can handle channel functions more efficiently than producers (more specialized).
Disintermediation
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Distribution Channel Length and
Distribution Channel Length and
Functions
Functions
{ Initially, the Internet was thought to eliminated costly
intermediaries.
{ This line of reasoning failed to recognize some important facts.
1. Distribution system is the more efficient than the
manufacturer.
2. Using intermediaries allows companies to focus on what
they do best.
3. Traditional intermediaries have been replaced with Internet
equivalents.
Disintermediation &
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Functions of a Distribution Channel
Functions of a Distribution Channel
{ Many functions must be performed in moving products from producer to consumer.
{ Internet property:
⇒ market deconstruction(removing distribution channel functions
from the players that normally perform them),
⇒ + reconstruction(reallocating those functions to other intermediaries
in novel ways).
{ Online retailers normally hold inventory and perform the pick, pack, and ship functions in response to a customer order.
{ Alternative scenario, the retailer might outsource the pick, pack, and ship functions to a logistics provider such as UPS:
z Order forwarded to a UPS warehouse where the product waits in
storage.
z UPS picks, packs, and ships the product to the consumer.
Functions of a Distribution Channel
Functions of a Distribution Channel
{ Distributors perform many value-added functions.
1. Transactional Functions:
z Making contact with buyers and using marketing
communication strategies to make them aware of products.
z Matching product to buyer needs, negotiating price, and
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Functions of a Distribution Channel
Functions of a Distribution Channel
{ Internet = a new channel for making contact with buyers,
= the 4th channel after personal selling, mail, and the telephone = 3rd channel for retailers after brick-and-mortar stores and
catalogs.
{ The Internet channel adds value to the contact process:
z Contact can be customized to the buyer’s needs,
z The Internet provides a wide range of referral sources such
as search engines, shopping agents, newsgroups, chat rooms, e-mail, Web pages, and affiliate programs,
z The Internet is always open for business, 24/7.
Functions of a Distribution Channel
Functions of a Distribution Channel
2. Marketing Communications
{ Marketing communication = advertising + other types of
product promotion:
⇒ Function often shared among channel players.
⇒ Most effective when they represent a coordinated effort among
channel players.
⇒ A manufacturer may launch an ad campaign while its retailers offer coupons.
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Functions of a Distribution Channel
Functions of a Distribution Channel
The Internet adds value to the marketing communications function in several ways:
z Functions that previously required manual labor can be
automated. Promotional message are sent to millions of users with a simple “click”.
z Communications can be monitored and altered (on the web all is
tracked…).
z Software for tracking a user’s behavior can be used to target
communications to individuals.
z The Internet enhances promotional coordination among
intermediaries. Firms e-mail ads and other material to each other, and all firms may view current promotions on a Web site at any time.
Functions of a Distribution Channel
Functions of a Distribution Channel
3. Matching Product to Buyer’s Needs
{ Shopping agents:
⇒ Given a general description of the buyer’s requirements, they can produce a list of relevant products.
⇒ Allow consumers to quickly compare prices and features within product categories.
⇒ MySimon (www.mysimon.com), PriceScan (www.pricescan.com)
{ Online retailershelp consumers match product to needs { Collaborative filtering agents:
⇒ Can predict consumer preferences based on past purchase behavior.
⇒ www.Amazon.comuses a collaborative filtering agent to recommend books and music to customers.
⇒ Once the system is in place, it can handle millions of users at very little incremental cost. The effectiveness of the collaborative filtering agent actually increases as consumers are added to the database.
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Functions of a Distribution Channel
Functions of a Distribution Channel
4. Negotiating Price
{ Price negotiationinvolves offers and counteroffers between
buyer and seller (in person, over the phone, or via e-mail).
⇒ Shopping agents negotiate prices downward on behalf of the consumer by listing companies in order of best price first.
{ Bidding= form of dynamic/flexible pricing in which the
buyer gives suppliers an equal opportunity to bid.
⇒ Consumer market auctions held by eBayand Amazon.
⇒ Many businesses currently conduct bidding online (B2B):
⇒ General Electric solicit online bids from their suppliers.
Effect of Online bidding = widening the supplier pool = increasing
competition + lowering prices.
Many auction houses allow buyers to program an agent to represent them in bidding against other buyers or their agents.
Functions of a Distribution Channel
Functions of a Distribution Channel
5. Process Transactions
{ Electronic channels lower the cost to process transactions
dramatically.
6. Logistical Functions
{ Include Physical distribution activities and Product
aggregation.
{ Logistical functions are often outsourced to third-party
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Functions of a Distribution Channel
Functions of a Distribution Channel
Physical Distribution
{ Most products sold online are still distributed through conventional channels.
{ Yet any content that can be digitized can be transmitted from producer to consumer over the Internet: Text, graphics, audio, and video content.
{ Products currently delivered over the Net include television and radio programs, magazines, books, newspapers, software, videos, and music.
{ Distribution costs are significantly lower online.
{ The alternative, physical distribution of digital product, is expensive:
z Embedding the content in a medium such as newsprint, a CD,
etc.
z Packaging and shipping.
Functions of a Distribution Channel
Functions of a Distribution Channel
Aggregating Product
{ Suppliers operate more efficiently when they produce a high volume of a narrow range of products.
{ Consumers prefer to purchase small quantities of a wide range of products.
⇒ Channel intermediaries perform the essential function of
aggregating product from multiple suppliers so that the consumer can have more choices in one location.
{ Online category killers (www.cdnow.com) =offers thousands of compact disks from multiple suppliers.
{ The Internet can bring together products from multiple
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Functions of a Distribution Channel
Functions of a Distribution Channel
7. Payment (and Financing)
{ Financing purchases is an important facilitating function in
consumer/business markets.
⇒ Intermediaries want to make it easy for customers to pay in order to close the sale.
⇒ Online consumer purchases are financed through credit cards or special financing plans.
⇒ Consumers are concerned about divulging credit card information online: you should build trust through the web interface
In Italy: 70% of the online purchases are processed with credit cards
Online Channel Members
www.congenio.it 1. Content sponsorship 2. Direct selling 3. Intermediaries Broker: Online exchange Online auction Agent:
Agent models representing seller Selling agent (affiliate program)
Manufacturer’s agent (catalog aggregator) Metamediary
Virtual mall
Agent models representing buyer (purchasing agent) Shopping agent
Reverse auction Buyer cooperative
E-Tailer:
Classifying Online Channel Members
Classifying Online Channel Members
Content Sponsorship
Content Sponsorship
{ Firms create Web sites, attract a lot of traffic, and sell
advertising.
{ Can use a niche strategy to draw a special interest audience { Generates revenues for firms selling advertising to other
firms.
{ The product = ad space on a Web site.
{ This model is used by the major portals (AOL, Yahoo!,
MSN), and online magazines/newspapers,
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Direct Selling (e
Direct Selling (e-
-commerce)
commerce)
{ The manufacturer sells directly to the consumer or business
customer = Dell,
{ It creates disintermediation= no longer need of
wholesalers/retailers,
{ Common practice in offline selling + the Internet made it
easier for producers to bypass intermediaries & go directly to consumers.
⇒ Successful in saving millions of dollars in sales-related expenses for personnel, product configuration, and order processing, ⇒ Successful in the B2C market with sales of digital products
(software/music) that require no inventory and no pick, pack, and ship logistics.
Intermediary Models
Intermediary Models
1. Brokerage Models { The brokers:
z Create a market in which buyers and sellers negotiate and
complete transactions.
z Charge the seller and/or buyer a transaction fee, z Don’t represent either party for providing exchange /
negotiation services.
z Provide many value-added services to help attract customers and
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Brokerage
Brokerage
{ Brokerage models operate Web site exchanges in B2B, B2C, C2C markets:
z The most popular online brokerage models =exchanges &
auctions.
z Benefits to the buyer: convenience, speed of order
execution, and transaction processing + cost savings (lower prices, decreased search time, savings of energy and frustration in locating the appropriate seller).
z Benefit to the seller: creation of a pool of interested buyers
+ cost savings to the seller (lowered customer acquisition and transaction costs).
Intermediary Models
Intermediary Models
Online Exchange:
{ E*Trade, Ameritrade, and a host of other online brokerages allow customers to place trades from their computers without phoning or visiting a broker.
{ Benefits:
z Pass along cost savings to the buyer = lower transaction fees, z Execute trades very quickly, provide reference resources, and
allow for program trading.
{ Newer services bypass the Web & connect traders straight to the market
{ Carpoint.msn.com, AutoByTel, and other online brokers:
z Allow customers to receive bids from dealers on vehicles
available in their area without first phoning or visiting the dealer.
z The dealers offer a no-hassle price quote through the service =
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Intermediary Models
Intermediary Models
Online Auction
{ Are challenging the fixed price model = norm for the last 100
years.
{ Are available in the B2B, B2C, and C2C markets.
{ Broker intermediaries = Most merchants auction their surplus
through third party auctioneers (eBay or Marketplace).
{ Direct sellers using dynamic pricing = When merchants auction
items on their own Web sites.
{ Sellers benefit: Obtain market price for goods and unloading
surplus inventory.
{ Buyers benefit: Obtain a good deal & enjoying the sport of the
auction.
Intermediary Models
Intermediary Models
2. Agent Models
{ DOrepresent either the buyer or the seller depending
on who pays their fee.
{ In some cases they are legally obligated to represent
the interests of the party that hires them.
Agent Models Representing Sellers
{ All agents that represent the seller:
z Selling agents, z manufacturer’s agents, z metamediaries,
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Intermediary Models
Intermediary Models
Selling Agent
{ Represent a single firm = help sell its products, { Work for a commission.
Affiliate programs:
{ Pay commissions to Web site owners for customer referrals
resulting in a sale.
{ Some affiliates demand a share of the lifetime value of the
customer as opposed to just a piece of the first sale.
{ Amazon.compioneered one of the first affiliate programs.
Intermediary Models
Intermediary Models
Manufacturer’s Agent
{ Aggregators = represent many sellers on one Web site.
{ Offline = represent firms selling complementary products to avoid conflicts of interest,
{ Online = create Web sites to help an entire industry sell its products,
⇒ Travel reservations Web sites = commissions are paid by the airlines
& hotels they represent = Expedia, Travelocity, Orbitz,
⇒ Benefits: better deals & convenience.
{ Catalog aggregators = In the B2B market:
z Each of the sellers has a broad catalog of product offerings. z Challenge = gather the information from all of these catalogs into
a database for presentation on the Web site.
z Tools = catalog aggregator offers software that interfaces with
the suppliers’ internal database systems.
⇒ Task is easier when the suppliers use industry standard software
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Intermediary Models
Intermediary Models
{ Buyer’s enterprise resource planning (ERP)systems are used
to support catalog customization and integration by more advanced manufacturer’s agents.
{ Customized catalogs features:
z Prenegotiated product offerings & prices,
z Spending limits for particular employees & automatically
forward big-ticket orders to the appropriate officer for approval,
z Recommending substitutions, notifying buyers of production
lead times, processing orders, and tracking orders.
{ Buyer benefits:
z Shorter order cycles, reduced inventories, & increased control. z Lower order processing costs = paperless transactions,
automated request for proposal (RFP) and request for quote (RFQ), and integration with ERP systems.
Intermediary Models
Intermediary Models
Metamediary
{ An agent that represents a cluster of manufacturers, and content
providers organized around a life event or major asset purchase.
{ Solves 4 major consumer problems:
z Reducing search times,
z Providing quality assurance about vendors,
z Facilitating transactions for a group of related purchases, z Providing relevant and unbiased content information about
the purchase.
{ Benefit for metamediary business partners = having traffic
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Intermediary Models
Intermediary Models
Virtual Mall
{ Host multiple online merchants in a model very similar to a
shopping mall.
{ Hosted merchants gain exposure from traffic coming to the
mall.
{ The mall gains through a variety of fees: listing fees,
transaction fees, and setup fees.
{ Brick-and-mortar malls benefits:
z A desirable collection of stores in one location, z Easy accessible from major highways,
z Ample free parking,
= none of these benefits apply online…
Intermediary Models
Intermediary Models
Virtual Mall
{ 6 customer benefits:
1. Branding—consumers may be more comfortable buying
from a store listed on Yahoo! Store,
2. Availability of digital wallets: customers register their
shipping & billing information only once, Availability of frequent shopper programs that reward consumers for shopping within the mall,
3. A gift registry that operates across multiple stores, 4. A search facility to locate products in mall stores, 5. A recommendation service such as suggestions for
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Intermediary Models
Intermediary Models
Agent Models Representing Buyers
{ Represent buyers.
{ In traditional marketing: they often forge long- term
relationships with one or more firms,
{ On the Internet: they represent any number of buyers,
anonymously in many cases:
z Shopping agents and reverse auctions help individual
buyers obtain the prices they want,
z Buyer cooperatives pool buyers for larger volume buys &
lower prices.
Intermediary Models
Intermediary Models
Shopping Agent
{ Many feared that they would drive prices on the Internet
down to impossible margins.
{ It did not happened because price is not the only factor
consumers consider when making a purchase.
{ Second-generation shopping agents= newer shopping
agents can now measure value and not just price (PriceScan and DealTime).
{ BizRate.com:
z Quantitative performance evaluation of a merchant, z Rates online merchants based on customer feedback, z Posts a report card of past consumer experiences with the
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Intermediary Models
Intermediary Models
Reverse Auction
{ Occurs at a Web site serving as purchasing agent for individual
buyers.
{ Reverse auction:
z Buyer specifies a price and sellers bid for the buyer’s business. z Buyer commits to buying at a specified price and the seller either
meets the price or tries to get close enough to make the sale.
z Priceline.com
{ Benefit to the seller = unloading excess inventory without unduly
upsetting existing channels (airline seats/hotel rooms).
{ Benefit for the buyer = lower prices & satisfaction of being able
to name one’s price.
{ BUT:
z Fewer choices of brand, suppliers, and product features.
z The reduced choice feature differentiates the product to avoid conflict with the supplier’s existing channel partners.
Intermediary Models
Intermediary Models
Buyer Cooperative =buyer aggregator:
{ Pools many buyers together to drive down the price on selected
items.
{ Benefit for individual buyer: price of volume buying.
⇒ The more buyers, the lower the price in a step function.
{ Mercata, MobShop, and other cooperatives were not able to
build profitable business models online and closed.
⇒ The remaining online coops represent more traditional brick-and-mortar coops
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Intermediary Models
Intermediary Models
3. Online Retailing (e-Tailer) { The most visible e-business models:
z Merchants set up online storefronts and sell to businesses
and/or consumers.
z Delivery over the Internet for digital goods / shipping for
physical goods.
z Any level of commitment from pure play to barely dabbling. { Pre-Internet presence carries brand equity, BUT it does not
guarantee online success:
z Pure plays are free from the cultural constraints of established
businesses = can innovate quicker in response to customer needs.
z Some Internet pure plays are establishing brick-and-mortar
operations to enhance branding through additional exposure and an additional channel for customers to experience their products.
E
E
-
-
Tailer
Tailer
{ Few success “click and mortar” experiences (traditional retailer
who started selling online): non-store retailing in our country have never worked very well…(PostlaMarket, Velcro…)
{ GiacomelliStore (www.giacomelli.com) closed, but because of
financial difficulties of the company
{ Oliviero (www.oliviero.it) : e-commerce since 1999, a discount
approach, the products most sold online are fitness products and garment for fat people
{ Boo.com: focused on sporting garment, supported by JP
Morgan, Lvmh, Benetton…closed
{ Theex.com: Benetton web site dedicated to e-commerce
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Rinascente
Rinascente
{ In 2000 creates an e-commerce (B2C):
www.rinascenteshopping.com
{ 650 products (garments, accessories, and home
appliances)
{ Markets: EU (Italy 80%), USA, Japan { 3-4 orders per day
{ Average order: 150 €
{ Low retention (mostly have bought once)
{ Since 2004 Rinascente has stopped selling online,
investing in other services
(www.rinascentelistanozze.com) dedicated to wedding gifts
Yoox.com
Yoox.com
{ dot.com e-Tailer focused in the fashion industry: 300
well known and luxury brands with a convenient price (off-price/off-season retailer), vintage, sell-different products (new brands…)
{ Sales of 2003: 22 millions €
{ Sales of 2005: 53 millions € (47% more than 2004) { reached the breakeven after 2 years (when the
competitors was running out of business)
{ Target: young consumer (51% of customer is 25 to 34
years old)
{ Financial “backed” (venture capitalists as Kiwi & Net
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Yoox
Yoox
numbers
numbers
{ Catalogue is composed by 60% garment and 40% accessories { Sales are made for 64% of garmen, 21% shoes, 10% bags, 5%
other accessories
{ in 50 countries (USA first market, then Italy, Europe and
Japan)
{ 2 products per order, with an average order of 180 € { Buy back rate of more than 70%
Web site
Web site
{ The company’s website is customised in 28 versions: this
differentiation involves different pricing, offer and communication for each single country.
{ Two thirds of customers are women; they look for high
quality products and are used to making online purchases. Their age ranges from 19 to 29 years and they are used to spending a considerable amount of money on their fashion purchases.
{ Delivery in 48 hours
{ Customer can send the product back without producing any
justification
{ 2 millions visitors each month, 190.000 orders, 400.000 items
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Marketing Strategy
Marketing Strategy
{ The innovative idea is that the company’s communication
aims at promoting items from previous years’ collections and from other nonconventional sources, pushing not only on price convenience but even more on the idea that these items are more glamorous and “cooler” because of their uniqueness.
{ Coherently with this marketing approach, YOOX’s
website proposes customers different styles and ideas that can be matched in a personalized way.
{ YOOX’S marketing strategy supports fashion designers
and manufacturers to extend the product life-cycle beyond the sale season, besides achieving a higher visibility on the market.
{ As items are sold at different prices to different
customers there is hardly any competition and overlapping with the traditional distribution channel.
{ Pricing and distribution control are agreed between
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{ From a business point of view, it is remarkable that most of
the items are not purchased but are charged to the company with the formula “payment upon sale”.
{ This turns into a remarkable advantage as the company does
not sustain any financial burden related to stocks.
{ All the items coming from fashion houses, manufacturers,
licensees and boutiques are placed in the main warehouse located in Bologna.
The Warehouse
The Warehouse
{ This warehouse is divided into two sections:
{ in the first one, items are charged and pass the quality control.
Then the process comprises: a master data of all the products characteristics (designers, brand, color, size, etc), photographs of the items to be put on the website and the attribution of an 8-digit code.
{ This code comprises all the item’s characteristics and it is
fundamental for following the whole online selling process.
{ Catalogued items are then stored in the second section of the
warehouse in which they are placed in a random way. When an online order is received, the logistics operators visualise the ordered items in their palmtop through the use of RF
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Does e
Does e
-
-
commerce work?
commerce work?
To answer this question:
Firms must consider its effectiveness in terms of reaching
target market segments effectively and efficiently.
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Current Theories (after first
Current Theories (after first “
“shake
shake-
-out
out
”)
”
)
{ High order frequency and large order size are more
important than large customer base.
{ Compare customer acquisition costs (total spent on advertising and marketing divided by the total number of new customers
obtained):
z Amazon.comº $29
z DLJ Direct º $185 (online broker) z E*Trade º $257
z Various E-Commerce Sites º $34
{ E-tailers should strive for average order sizes of >$50 and
concentrate on high-margin product categories (>35%). [Traditional grocery margins: 2-3%...not a good idea…]
{ Concentrate on making transactions profitable, not on
market-share wars.
{ Combine e-tailing with Brick&Mortar stores.
Multichannel Marketing
Multichannel Marketing
Multichannel marketing consists of
the blendingof different communication and delivery channels that are mutually reinforcingin attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and marketspace.
Multichannel marketing consists of
the blendingof different communication and delivery channels that are mutually reinforcingin attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and marketspace.
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Advantages of Multi
Advantages of Multi-
-channel Retail
channel Retail
{ Leverage existing brands.
{ Biggest Brick&Mortars retailers have huge clout.
(Walmart’s annual sales are $138B, much more than all e-tailers’ combined.)
{ Use established distribution and fulfillment infrastructure
(e.g.,LL Bean, Land’s End,…).
{ Cross-marketing and cross-datamining.
MULTICHANNEL MARKETING
{ Integrating and Leveraging Multiple Channels with
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MULTICHANNEL MARKETING
{ Two way to Implement Multichannel Marketing:
Multichannel Marketing with
Transactional Websites…but…
• …can generate Channel Conflict!
Multichannel Marketing with
Promotional Websites
Implementing multichannel marketing with
Implementing multichannel marketing with
promotional websites
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E
E-
-commerce
commerce
E
E--business Watch in Textile and clothing sector (European Commissibusiness Watch in Textile and clothing sector (European Commission on --2005)2005)
La
La
Perla
Perla
Group
Group
{ Multibrand Company: La Perla, Marvel, Malizia, Joelle,
Occhi Verdi, AnnaClub, Oceano, Acquasuit, GrigioPErla, GrigioSport)
{ Distribution channel:
z indirect (retailers),
z direct (flagship stores) and franchising (85 all over the world)
{ The same multi-channel and brand choice is reflected in
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Web presence
Web presence
{ Created a web site (www.laperla.com) in 1996 to support
brand awareness:
{ Design focused on emotion: a “luxury shopping
experience” (you can download Desktop, Music, backstage pictures…)
{ present collections for each brand
{ At the end of 1999 starts selling online
(www.glamonweb.com)
{ Different brand (GlamOnWeb vs LaPerla): e-commerce
was a risky and unknown business…
{ …and different collection
{ A couple of years later GOW starts selling LaPerla
brands (LaPerla, Marvel, Malizia, GrigioPerla) – today 600 products catalogue
{ OcchiVerdi and other cheap positioned brands aren’t
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{ LaPerla sells online both through own web site, and some
e-Tailer (online Retailer):
{ www.figleaves.com(UK online retailer) – cheap brands
(OcchiVerdi), focus on quantity
{ www.eluxury.com(USA web site managed by Lvmh
Group) – luxury brands (LaPerla and the same brands of GOW), focus on “presence” (your brand next to other luxury brands)
z GOW: focused on European and Canadian market z eLuxury: focused on USA market (…in USA:
www.victoriasecrets.com)
Selling numbers
Selling numbers
{ October 2002 – October 2003: + 80% { November 2002 – November 2003: +100% { December 2002 – December 2003: +115%{ Average order: 200 € (when more than 99 € the shipping
costs are sustained by GOW)
{ 45% sold in Italy, 15% in UK, 10% in France, 8% in
Spain
{ 2,5 millions of visitors in 2003 (more than
www.laperla.com, the institutional web site)
{ In 2003 GOW reached the breakeven point
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GOW and
GOW and
LaPerla
LaPerla
Group
Group
{ GOW is treated as a customer of LaPerla Group { Such a policy doesn’t require to make changes in the
manufacturing process: LaPerla presents the new collections, GOW decides what to order, and can manage on his own a small area of the warehouse of LaPerla Group (with some staff dedicated to handle the typical logistics of e-commerce)
{ GOW sells at the same price of LaPerla boutique { GOW cooperates with other e-commerce such as
Yoox.com, Ducati.com, OlioCarli.com, Illy.com…
OutLet
OutLet
: why not?
: why not?
{ www.glamonoutlet.com
{ Old collections sold with a 40-to-70% discount { GlamOnWeb: is called boutique
{ GlamOnOutlet: is called outlet
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Promotional Efforts
Promotional Efforts
{ Mainly online:z Search Engines Marketing z Banner campaigns z Direct mailing