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Transcript of the Sony store Introduced in Canada in 2003 70 stores Targets women Showcases products available for...
the Sony store
• Introduced in Canada in 2003
• 70 stores• Targets women• Showcases products
available for purchase online
On-line Operations
• Corporate website http://www.sony.ca
• Links to Sony Style and Sony Store sites
• Product and pricing information
• Financing, delivery and warranty options
• Order tracking
Online Target Market
• Consumers who value convenience
• Geographical and temporal constraints
• Consumers already familiar with products
• Manufacturer
• Warehouse
• Sony Store
• Sonystyle.ca
• End Consumer
Channel Structure
Sonystyle.ca channel flows
• Payment and Financing
• Risk
• Ordering
• Physical Possession
• Ownership
• Promotion
Demand
• Facilitation of Search
• Assortment and Variety
Supply
• Elimination of contact point
Demand and Supply Side Factors
Service Outputs
• Bulk Breaking
• Spatial convenience
• Waiting and delivery time
• Assortment and Variety
Sony Store Gap AnalysisBULK-BREAKING SPATIAL
CONVENIENCEWAITING AND DELIVERY TIME
ASSORTMENT AND VARIETY
LEVEL PROVIDED High Low Low OK
EFFICIENCY High Low OK OK
SOURCE OF PROBLEM Low quantities demanded by consumers
Must travel to major urban center
Shipping time from wholesaler to retailer
Units exceed Capacity of store
ENVIRONMENTAL-MANAGERIAL BOUNDS
Lack of information internally
Taxes differences in each province
Lack of information
Lack of information
OUTCOME DESIRED Increase capacity of store for inventory/frequency of purchase
Reach more consumers
Next day delivery
Offer all lines of products manufactured by Sony
TACTICS TO CLOSE GAP Increase capacity of retail outlets to offer all of Sony’s line of products to consumers.
PREDICTED CHANGE IN CHANNEL PERFORMANCE
Increased efficiency and reduced delivery time. Increasing offerings of products in store will reduce costs of transporting goods from wholesaler to retailer to consumer.
Sonystyle.ca Gap Analysis
BULK-BREAKING SPATIAL CONVENIENCE
WAITING AND DELIVERY TIME
ASSORTMENT AND VARIETY
LEVEL PROVIDED High: customer buys single unit
High: on-line reaches everyone with the internet
Low: anywhere from 1 -7 days
High: can locate all products offered by Sony
EFFICIENCY High: no need for traditional “bricks & mortar” system
High: targets anyone with internet; convenience for time pressed people
Low: multiple points and shipments
High: access to all Sony products
SOURCE OF PROBLEM No demand for bulk purchases in consumer electronics
Certain consumers do not have access to the internet
All products purchased online need to be shipped to end user
No access to other brands
ENVIRONMENTAL-MANAGERIAL BOUNDS
Shipping rates/methods of transporting specific products
Geographical barriers System crashes/viruses could cause problems in the ordering process
Barrier through management to focus attention exclusively on Sony brand
OUTCOME DESIRED To increase frequency of purchase
To increase consumers use of Sony online
Decrease delivery time as much as possible
Continue to offer all Sony products online
TACTICS TO CLOSE GAP Add another distribution center in Western Canada.
PREDICTED CHANGE IN CHANNEL PERFORMANCE
Costs will fall due to a reduction in delivery time and transportation costs of shipping individual products
Delivery will be 4 days or less
• Tutorials and Emulators
• Additional after-sales service
• FAQs
• Timely and consistent information
On-line Support System
Conflict
• Resistance from retailers
• Cannibalization of sales
• Potential loss of retailers
Recommendations
• Establish distribution center in Western Canada
• Increase product offerings at Sony Store
• Implement use of EDI
• Increase capacity of stores
Questions?Questions?