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C h r i s t o p h e r G a rc i a E r i c S t o k e s
H S N V S . Q V CWEBSITE EVALUATION
Site Purpose
•ProvidesShoppersAccessToAllProductsTheCompanyOffers•Interac<vePla=orm(Mul<-ChannelRetailOfferings)•CenteredonCrea<veImmersiveExperience•AccessibleConsumerReviewsandProgramGuides
•ProvidesPosi<veMessage•HighlyInterac<veDesignUX•EasyNaviga<ons(Searchabil<y)
“Yougetthe”“Oneeasypaymentof_____get’sthishomeby….”
Positive Branding & Presence
“WhenIseemysonplaytheguitar,Iliketothinkit’shisheartconnec<ngonthestrings.”
Products Streamed Live
•Women•Ages25-55•HouseholdIncome:$61,000andabove.•SocialShopper/SocialLifestyle
Target Audience
•ProductOverview•FeaturesList•Specifica<onsLists•ProductReviews
-BuildConsumerConfidence•InspiresYear-RoundShopping
Customer Solutions
Community
•Consistsofmerchandisesales,discounts,customerreturns. ReturnRate:16.3%
•FlexPayOp<ons•$3.58billioninrevenue•Canquicklychangemerchandisemixtomeetconsumerdemand
Revenue Model
•Co-Promo<onalPartnerships•JointMarke<ngEfforts•IncreasesBrandRecogni<on•DrivesConsumerEngagement
Marketing Relationships •Mul<-yeardistribu<onandaffilia<onagreements•HSN’slargerpaytelevisionoperatorsincludeComcast,
DirecTV,Echostar/DISH,andTimeWarnerCable.•Itreportedadver<singexpenseof$279.6million,$268
million,and$245million,in2014,2013,and2012,respec<vely
Partnerships
•HasappsforiPhone,iPad,AndroidaswellasWindow’sdevices.•HighlyVideoCentric•CustomizableExperience•AccesstoPreviouslyRecordedSegments•MobileDevices(FastestGrowingMediumSalesChannel)
Features & Functionality
Usability
•HasappsforiPhone,iPad,AndroidaswellasWindow’sdevices.•HighlyVideoCentric•CustomizableExperience•AccesstoPreviouslyRecordedSegments•MobileDevices(FastestGrowingMediumSalesChannel)
Social Media & Mobile
• TheredesignedHSNwebsiteaccountedforoverhalfofthecompany’srevenueslastyearandtheiremphasisonmobilehashelpedtogenerategrowthinacompe<<vemarket.
•Morethanhalfoftheirnewcustomerscomefrommobile,•Mobilechannelgenerates10%oftotalstoresales•Mobilecustomersarealsoyounger,28yearsoldvs.58for
shopperswhoplacephone,andtheyhavehigherincomes.•About30%ofmobileshoppersmakemorethan$100k/year
comparedto23%forphonecustomers.
CEO,MindyGrossman2008
Social Media & Mobile (Contd.)
•In2014,HSNhadaffilia<onagreementswith87broadcasttelevisionsta<onsforleasedcarriageoftheHSNtelevisionnetworkwithtermsrangingfromseveralweekstoseveralyears.
•SisterNetworkinEuropeHSE24•Japan’s,TheShopChannel•AlsoinItaly,Germany,The
Philippines,andCanada
International
•HasappsforiPhone,iPad,AndroidaswellasWindow’sdevices.•HighlyVideoCentric•CustomizableExperience•AccesstoPreviouslyRecordedSegments•MobileDevices(FastestGrowingMediumSalesChannel)
Usability
Web Strategies
•Servedasoneoftheearliestsocialmediapla=orms•27yearsold,websiteopenedin1996•Goodexampleofhowtocombat“TheAmazonEffect”•Aimedatunifyingdigitalexperiences•Amazonisgoodatcommerce,oneclickshoppingbutQVCisfocusedoncommunityengagement.
121
46.5%morefollowers
“43%ofourbusinessisone-commerce,andwithinthatmobileisabout40%ofoure-commerce,”
Assortment Differences
Features & Functionality
•ComparedtoHSN,QVCseemstobeagearedtowardsayoungeraudience,atleastbasedonthecompanywebsite.
•Thesitefeaturesmanybrandsthatcaterspecificallytobeautyandfitnessconcerns.
•QVChasamuchwiderrangeofbeauty,skincare,andfitnessproducts,andmuchofitsmerchandiseisofthemainstreamandhigh-endvariety.
BareEssenAals,Philosophy,BobbiBrown,
andLauraGellar
In a Nutshell
QVC
• Seemstobeagearedtowardsayoungeraudience• Featuresmanybrandsthatcaterspecificallytobeautyandfitnessconcerns• Hasamuchwiderrangeofbeauty,skincare,andfitnessproducts• Muchofitsmerchandiseisofthemainstreamandhigh-endvariety• Pricesarequitereasonable
HSN
• CarriesbrandssuchasSeriousSkinCare,SignatureClubA,andYBF,• Hasanextensiveselec<onofWeiEastproducts• Offerpricesthatarequitereasonable• Offersregularsalesoncommonitems
SWOT Analysis
STRENGTHS WEAKNESS
• TV Multimedia / Competitive Advantage Over Brick &
Mortar
• Product Showcasing
• Customer Loyalty
• Product Offering (50,000 videos)
• Tax Structure
• High production costs
• Live-Viewing
OPPORTUNT I ES THREATS
• Global expansion to help build private label brands
• Acquisition Strategies
• Growing Demand Trends
• Grow social media awareness/build community
• Increasing Operating Expenses (Dip in Revenue of 4%)
• Beware of Warehousing Costs
• Increased risk with expansion into competitors
segments.