Post on 20-Aug-2015
Ecommerce Strategy
• Key issues
• Solution in a nutshell
• What’s the base of it
• Project overview
• Steps 1 to 3
• Conclusions
• Next steps
• Q&A
Agenda
Competitive Environment
Porter’s 5 Forces
SWOT
What's the base of it?
Greener grass for the cattle
Point and Shoot cameras challenged to survive the Smartphones
Sales decreased from $2.4 billion in 2008to just $1.9 billion in 2011*
Big brands are facing this challenge and coming out with new solutions*Market Research NPD group
Worldwide Digital Camera Market focusing on DSLR Cameras
1. Sales of DSLRs Cameras in the UK2. Sustained steady growth in shipments of SLR's accesories3. Demand for Digital cameras and SLR demand increased specially
emerging markets, due to the rise in internet usage.4. Shipments to European continent expected to mantain.
Don't compete with brands, engage with them
“If marketers think that differentiating their products and services and engaging consumers is hard now, just wait until they try doing it when their brands devolve into category placeholders, a product or service that everyone knows, but doesn’t know for anything in particular.
That’s when no discount will be deep enough, which is a hard lesson that many retailers have already learned.”
Passikoff
*Brand KeysCustomer Loyalty Engagement
STEP 1: Setting up a new cow
PropositionBrand image
Channellogistics
New idea
Inventorymanagement
New Proposition
Various, diversified products to non segmented customer
Focus on an specific range of cameras and equipment for a particular segmented target.
Jessops has a established position in the UK market
Exclusive offer only from Jessops
Technical advice reputation
“Your first professional camera”
Target: Young professionals21- 35 years old,who are looking for a camera better than their mobile phone.
Online:
Offline:-Newspapers-Tube (touristy stations)
Campaign
Changing logistics
Centralise to flagship store in London to optimize volume traffic in both
online/offiline shop
Online customer In-Store customer
Jessop's image will transform from a simple retailer to the bridge between customer and brands.
Marketing
Making the customers to visit the flagship store to touch and feel the product (experience).
1. By reducing number of the stores and centralizing inventory to the warehouse.
2. The storage cost per product at the store is higher than the storage cost per product at the warehouse.
Traffic trend change from off-store purchase to online store purchase.Different customer engaging functions.
Inventory management
Trade - in platform channel
Other channels
1. A seller bring in the item to sell to the store.2. Receive cash credit to purchase from Jessops products.
Jessop’s role:Product AssessmentProvide warranty - 2nd hand buyer (2 years).
STEP 2: Paint the cow pink
Jessops will be a mediator between manufacturers & consumers.
Strategic alliances
Starter kitsExclusive deals -
- Brand Islands: experiencing with brands - Weekly price updates
- Personalized online shopping experience- Customer specific offers
Jessops Lab
STEP 3: Milk the cow
Beginner Professional
Start. By taking a picture with a camera (mobile/digital) and upload it.
Progress. 1. Purchases at Jessops2. Measure photographic activity online: pictures uploaded on social networks, comments.3. Get points4. Progress: Jessops unlock content. Offers additional equipments5. Developing skills in photography.
Professional Photographer path’s life
New generations e.g.World of Warcraft.Return to basic
- Data converted in points collected for purchases, uploads to social networks.
-Multichannel access: web, mobile app.
-GPS, world map, FB places,Foursquare.
KnowledgeGaming Stock
PointsPersonalized spaceIn the website.
-Progress in the game.Buying products, visiting exhibitions,
-Unlock content.
-Free instructions,workshops, events, seminars.
Cross Selling -Offering accessories, new filters at each level.
-Star products. Deal with brand-islands.
-Kits to get next level game. Discounts.
Sales relatesAwareness
Measurement KPI’s ActionsBusiness
Performance
Average order value
Sales per channel (value & volume)
Profitability (% of operational sales)
Days of Inventory
No. of out of stocks
Order Conversion rate per online campaign
Traffic from offline to online
Jessops market share UK
DECREASING
Find out problems and review segmentation strategy accordingly
.
Segmentation
Performance
DSLR share of sales (value & volume)
Jessops DSLR market share UK
Target Demographic (% of total customers)
ON TRACK
Continue with plans and use KPI’s to spot business oportunities
Customer
Engagement
K factor (viral factor)
Monthly and daily active users for the website and game
New to returning users ratio
Average monthly revenue per customer
ABOVE EXPECTATIONS
Consider extra investment to accelerate expansion and capture quick win opportunities.
Conclusions
• A tangible value proposition Market segment, brand image, reduce inventory, improve channels and logistics.
• Engage with brands Strategic alliance, deals, Jessop’s lab, personalized online shopping.
• Nurture the customersGamification, lifecycle nurturing steps
Thank you!
Satomi HisamotoBeatriz Briones
Martha TolosaOlli LaintoEduardo Hauck