Strategy and case studies
Transcript of Strategy and case studies
ONLINE VS. OFFLINE
DIGITAL BATTLEGROUNDS
THREE FRONTS IN ONLINE RETAIL DEVELOPMENT
SOURCE: iConsumer 2012 McKinsey
ONLINE VS OFFLINE MARKETSHARE
WOULD YOU WANT TO SHOP OLD SCHOOL AFTER PANDORA OR SPOTIFY?
REMEMBER BOOK STORES?
…BUT THERE ARE CERTAIN PRODUCTS YOU STILL WANT TO TOUCH AND FEEL.
CUSTOMER AQUISTION AND RETENTION
CATEGORY DEVELOPMENT
CUSTOMER EXPERIENCE
CUSTOMER PROMISE
EXCEL AT THE FUNDAMENTALS OF E-COMMERCE
CUSTOMER AQUISTION AND RETENTION
CATEGORY DEVELOPMENT
CUSTOMER EXPERIENCE
CUSTOMER PROMISE
EXCEL AT THE FUNDAMENTALS OF E-COMMERCE
MINDSETS OF THE ONLINE SHOPPER
IDEAS
SIMPLIFIEDINFORMATION
PERSONALIZEDRECOMMENDATIONS
NEWESTPRODUCTS TO SAVE TIME
I NEED…
$61B$10.6B
$6.6B
$5B
TOP ONLINE RETAILERS BY SALES REVENUE – CAN YOU GUESS?
IN SUMMARY - IMPLICATIONS
PROTECT
GROW
GROW
EXPLORE
GROW
SOURCE: iConsumer 2012 McKinsey
PDMI PROGRAMS
EXPLOREGROW
CONNECTED LIFE
EDLP BROADBAND ERC REFURB
FUTURE AUTOMOTIVESITE EXPERIENCE STRATEGY
KIDS DIGITAL – XO TABLET PD
CONNECTED SERVICES
PERSISTENT PRESENCE THROUGH STRAIGHT TALK
WALMART FIT SUBSTANTIATION PROGRAM
PDMI CASE STUDIES - CONNECTED LIFE
KIDS DIGITAL: XO TABLETBRIDGING THE EDUCATION GAP
• The Kindle isn’t a book. It’s a bookstore.
• We are obligated to link our credit cards to Apple.
• Selling an experience and a window into a world of content.
• Big screen, big capabilities, big app store, big storage
• Big investment in design + build quality.
• Big investment in partnerships
• Specialized devices that are designed for specific uses (like watching movies and reading books)
• Smaller function set, niche markets.
• It does one thing really well.
• Develop tablets at a compelling price, but that offer all of the high-end usability and features that they offer today,”
• Danger of falling into differentiation on price only. The price wars begin.
go BIG go ( small ) go ¢heap
PDMI CASE STUDIES – KIDS DIGITAL STRATEGYQ4 2011: The tablet market explodes. How do we get in the game?
"The razor toothed piranhas of the genera serrasalmus and pygocentrus are the most ferocious freshwater fish in the world. In reality, they seldom attack a human”Elliot Nicholls, a 17-year-old from Dunedin, New Zealand has set a new record for speed texting without looking at the screen - 45 seconds.
Digital AppendagesKids lifestyle = digital devices
KGOY - Kids getting older younger Ipads and smartphones are replacing traditional toys
Amplified reality –Physical and digital worlds converge
Digital dexterityTheir digital skills are shaping the Future of technology
2. 1.
3. 4.
PDMI CASE STUDIES – KIDS DIGITAL STRATEGY – MACRO TRENDS
Designed for an adult - made for a child – kids and parent mode functionality.
Spill-proof and shock proof cover included in the tablet (Yves Behar design)
The only dual language tablet with apps & content in English and Spanish
Special XO AppsStore: safe apps environment curated by OLPC
100 free selected books available for different target ages
Price $149 ($2 of every sale will be donated to an educational charity)
Avg of 4.5 stars on Walmart + AmazonSince the launch on July 16th 2013.
PDMI CASE STUDIES – PARTNERSHIP WITH OLPC – LAUNCH DATE 7.16.13
The tablet was the flagship retail merchandise strategy for OLPC.
PDMI CASE STUDIES - CONNECTED LIFE
PDMI: PRODUCT DEVELOPMENT + MERCHANDISE INNOVATION
CONNECTED LIFE.
Explosive growth from 10.2M automated homes in
2012 to 22M in 2013Now is the time!
Consumers want a full solution, connected
ecosystem
130M US Homes = Significant Opportunity to
Walmart
High adoption of smart phones with younger consumers. Appeal to both home owners and renters
Security Monitoring
Automation
Health &WellnessEntertainment
EnergyManagement
Average number of connected devices will jump from 5 in 2012 to 15 in 2015
Source: CEA – Consumer perspective on home automation white paper
Smarthome Devices: Do-It-Yourself (DIY) Solutions Drive Adoption in 2013
PDMI CASE STUDIES - CONNECTED LIFE
PDMI CASE STUDIES - CONNECTED LIFE
PDMI CASE STUDIES - CONNECTED LIFE – PHASE 1 LAUNCHED 6.24.13
PREPAID BROADBAND
JUNO BROADBANDEXCLUSIVELY @ WALMART
ROUNDING OUT OUR SERVICES BUSINESS
SERVICES OVERVIEW
WIRELESS MOBILE
MIFI HOME PHONE
IN HOME BROADBAND
ENTERTAINMENT(CONTENT + GAMING)
STRAIGHTTALK
FAMILY MOBILE
STRAIGHT TALKMIFI
INTERNETON THE GO
BASIC TALK
JUNO HOME BROADBAND
???
CURR
ENT
PLAN
NED
FUTU
RE
1/3 NUMBER OF US HOUSEHOLDS WITHOUT HIGH SPEED BROADBAND
BARRIERS & PAINPOINTS
DEVICES ARE TOO EXPENSIVE
SERVICE IS TOO EXPENSIVE
NOT INTERESTED IN LONG TERM CONTRACTS
US Home Broadband market size100B
PDMI: PRODUCT DEVELOPMENT + MERCHANDISE INNOVATION
PDMI CASE STUDIES – PREPAID BROADBAND
PDMI CASE STUDIES – PREPAID BROADBAND
ANTICIPATED LAUNCH Q4
PREPAID BROADBAND
Pricing $15/ 7 days or $45/30 days
$90 / 10Gigs $50/5Gigs Hotspot + 7 Gigs = $149 Each additional Gig is $14
$60 / 10 Gigs $50 / 10Gigs
Non expiring or monthly plans
Monthly Monthly Monthly Non expiring $10/10Gigs at 1.5Mbps 1 free Gig/month at 4g Speeds
Monthly
Speed 3Mb / 768 Kbps 4G / LTE 4G / LTE 4G / LTE 4G/LTE 4G/LTEHardware $69.95 $99 $150-170 Included in starter
kit price.$99 $79
Comments Offering service to
those who are not currently customers or delinquent customers who are about to have their service shut off. Slowest service among competition.
$36 one time activation fee
Competes with our Interent on the go plan $45/3Gigs
Additional $4/month for rollover data plan. Prepaid set up as recurring charges until you cancel your service. 10Gig plan has slow speed.
Best price per Gig. Available only at Walmart
MARKET SIZE: $7 BILLION 5% MARKET SHARE IS A $490M OPPORTUNITY
PDMI CASE STUDIES – UPCOMING STRATEGIES – WALMART FIT
An additional Walmart Supercenter per 100,000 residents increases
average BMI by 0.25 units and the obesity rate by 2.4 percent.
What are strategies we can employto improve the lives of our customers
and help them live better?
THANK YOU!QUESTIONS OR COMMENTS? [email protected]