• No results found

Online Selling Channel

N/A
N/A
Protected

Academic year: 2021

Share "Online Selling Channel"

Copied!
34
0
0

Loading.... (view fulltext now)

Full text

(1)

www.congenio.it

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

(2)

www.congenio.it

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.

(3)

www.congenio.it

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

(4)

www.congenio.it

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

(5)

www.congenio.it

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 &

(6)

www.congenio.it

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

(7)

www.congenio.it

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.

(8)

www.congenio.it

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.

(9)

www.congenio.it

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.

ƒ Effect of Online bidding = widening the supplier pool = increasing

competition + lowering prices.

ƒ 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

(10)

www.congenio.it

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

(11)

www.congenio.it

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

(12)

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,

(13)

www.congenio.it

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

(14)

www.congenio.it

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 =

(15)

www.congenio.it

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,

(16)

www.congenio.it

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

(17)

www.congenio.it

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

(18)

www.congenio.it

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

(19)

www.congenio.it

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

(20)

www.congenio.it

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

(21)

www.congenio.it

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

(22)

www.congenio.it

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

(23)

www.congenio.it

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

(24)

www.congenio.it

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

(25)

www.congenio.it

{ 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

(26)

www.congenio.it

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.

(27)

www.congenio.it

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.

(28)

www.congenio.it

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

(29)

www.congenio.it

MULTICHANNEL MARKETING

{ Two way to Implement Multichannel Marketing:

ƒ

Multichannel Marketing with

Transactional Websites…but…

…can generate Channel Conflict!

ƒ

Multichannel Marketing with

Promotional Websites

Implementing multichannel marketing with

Implementing multichannel marketing with

promotional websites

(30)

www.congenio.it

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

(31)

www.congenio.it

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

(32)

www.congenio.it

{ 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

(33)

www.congenio.it

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

(34)

www.congenio.it

Promotional Efforts

Promotional Efforts

{ Mainly online:

z Search Engines Marketing z Banner campaigns z Direct mailing

References

Related documents

Intermediaries • Subsidiary affiliate • Agent, representative, distributor, consultant • Freight forwarder • Customs broker • Joint venture Partner  Relative of

Instead, automation addresses the primary repetitive needs of the environment: cloud service pro- visioning, cloud service placement, capacity management, and change

Therefore, in Section IV, we will incorporate the construction of multiple Lyapunov functions into control Lyapunov functions to derive sufficient conditions under which

A wire should not be released by a financial institution* or agent through Online Treasury Manager or Online Foreign Exchange before the 30 minute waiting period, and the

If a Selling Agent is unable to upload the sales contract and the Fannie Mae Real Estate Addendum to complete their HomePath online offer, they should contact the Listing Agent

A minute volume (0.3–1.0 µl) of ProteinChip EAM in organic solvent must be applied to each sample prior to analysis.. It is recommended that ProteinChip EAM be applied to the

I Seller/Listing Agent/Selling Agent agree to pay a portion of your fee of $2500.00, if said fee is not authorized by the short sale lender, to be paid to you at closing by way of a

At least it indicates a collective work among think-tankers to con- ceptualize think tanks as a distinct type of organizational actor in Swedish civil society, which is