Question #12

How many Internet users are purchasing online? 55% (77% browsed/shopped) Vs. 51% and (75%) last year

Question #13

What is the main advantage of being a pure-play e-tailer? Focused and nimble

What is the main advantage of being a multichannel e-tailer? Brand name Synergies

What has Amazon done right?

Amazon simplifies shopping Equity built with consumers is

saving Amazon with investors Selection, competitive prices Ease of navigating

site/convenience Delivery speed and options Partnerships

Multi-Channel Integration

Watch video tape What are the 3 formats discussed? What are the 3 models of multi-

channel integration? 2 emerging models?

What are the 2 ways multi-channel retailers are structured?

List of group members – IC #6

Achieving Integration

Creating consumer value Leveraging the multi-channel

business model Developing new revenue

streams Channel synchronization

Consumer Value Proposition

Risk ReductionStores Catalog InternetGratification

Objectivity/credibility

Information

Trial PricePers. Service

Consumer Value Proposition

Shopping Ease

Stores Catalog Internet

Payment options

Portability Accessibility

Impulse Longevity Selection

Intentional Browsing

Accessibility

Convenience

Consumer Value Proposition

Shopping Experience

Stores Catalog Internet

Entertainment

Ideas Personalization

Social Interaction

Uniqueness

Immediacy

Community

Leveraging the Multi-Channel Business Model

Leverage existing assets Overcome channel-specific

limitations Gain insight into cross-

channel shopping behavior

Leveraging Existing Assets

Brand name recognition

Leveraging Existing Assets

Brand name recognition Advertising Customers Physical assets Supply chain capabilities Service capabilities

Overcoming Channel Specific Limitations

Stores Space

constraints Inconsistent

execution

Overcoming Channel Specific Limitations

Catalogs High cost

Overcoming Channel Specific Limitations

Catalogs High cost Static

Overcoming Channel Specific Limitations

Internet Lack of visibility

Amazon, wine.com, cooking.com, Mycashmere, Gold Violin launched catalogs

Overcoming Channel Specific Limitations

Internet Lack of credibility

Gaining Consumer Insight Capture true demand

Gaining Consumer Insight Capture true demand Cross-channel visibility Customer feedback

Building the Brand

$1,051

$242$194

$121$0

$200

$400

$600

$800

$1,000

$1,200

Internonly

Store only Catalogonly

Multi

JCPenneyyearly spend

Building the Brand

$900

$400

$150

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

1 Channel 2 Channels 3 Channels

Eddie Baueryearly spend

New Revenue Streams Intensification

Current market/existing customers

Avon, Tupperware, Walgreens Extension

Current market/new customers Eddie Bauer, Sharper Image, Lands’ End – online are new

Victoria’sSecret – men on line

New Revenue Streams Extension

Current market/new customers Eddie Bauer, Sharper Image, Lands’ End

New Revenue Streams Expansion

Current market/new geographic markets

REI-Japan Diversification

New products, services, solutions

Eddie Bauer – Children’s Gap - Maternity

Channel Synchronization Extension of a common brand

Most valuable asset Associated with lifestyle and customer rather than retail format, channel, geography, etc.

Channel Synchronization Merchandise consistency

Limited or focused discrepancy across channels

Channel Synchronization Pricing

Use of flexibility

Channel Synchronization

Pricing Use of

flexibility

Channel Synchronization Cross Promotion

In-store catalog desk/web kiosk Pick up catalog in store Order catalog on line Retail store locators online/catalogs

Advertising circular available online

In-store signage promoting web site and catalog

Channel Synchronization Fulfillment

In-store pickup of online goods Inhouse vs outsourcing East of returns

Customer Relationship Management Leverage at all customer touch points Data management technology