8/14/2019 Multichannel sec2
1/51
Multichannel Retailing
John Curkovic
Tanya Dundee
Caleb Hayes
Ben Marks
Eric Plagge
Jason Rowe
Jamie Wuhrman
8/14/2019 Multichannel sec2
2/51
Multichannel Retailing
A retailer that sells merchandise throughmore than one channel.
Stores
Catalogs
Internet
8/14/2019 Multichannel sec2
3/51
GAP INC.
8/14/2019 Multichannel sec2
4/51
Gap History
Name origination
Founded in 1969 in San Francisco, CA
First sold only records and Levi jeans
Originally known for turning classic clothinginto must have fashion
8/14/2019 Multichannel sec2
5/51
History Continued
Millard Drexler President of Gap Responsible for developing GapKids, BabyGap and
Gap Body
New chain of stores: Gap, Banana Republic andOld Navy
8/14/2019 Multichannel sec2
6/51
Gap Online
1997- opened its online store at gap.com
1998- opened its online stores at
gapkids.com and babygap.com 2000- delivers GapMaternity in an online
exclusive debut
2001- awarded 4 out of 5 stars by ConsumerReports in the categories of policies, usabilityand content
8/14/2019 Multichannel sec2
7/51
Store Locations
4,200 stores nationwide
Operates in 6 countries U.S.
Canada
United Kingdom
France Germany
Japan
http://www.cia.gov/cia/publications/factbook/flags/us-flag.htmlhttp://www.cia.gov/cia/publications/factbook/flags/uk-flag.htmlhttp://www.cia.gov/cia/publications/factbook/flags/ja-flag.htmlhttp://www.cia.gov/cia/publications/factbook/flags/ca-flag.htmlhttp://www.cia.gov/cia/publications/factbook/flags/fr-flag.htmlhttp://www.cia.gov/cia/publications/factbook/flags/gm-flag.html8/14/2019 Multichannel sec2
8/51
Store Location Cont.
Flagship store
San Francisco, California
When 1st founded Gap only had 5employees, and now has more than
153,000 nationwide
8/14/2019 Multichannel sec2
9/51
In-Store Services
Tailoring: Banana Republic
Help Button in dressing rooms
Credit Card: Universal use
8/14/2019 Multichannel sec2
10/51
Online Special Services
Gift cards
Convenient gift packaging options
Let Us Get It There: will ship anywherethe customer chooses
Store Locator
Shipping and handling Gift receipts
E-mail updates
8/14/2019 Multichannel sec2
11/51
Website
http://www.gap.com
http://www.gap.com/http://www.gap.com/http://www.gap.com/8/14/2019 Multichannel sec2
12/51
Special Programs
1977: Established Gap Foundation
Two National Organizations
Boys and Girls Clubs of America Lorraine Monroe Leadership Institute
Social Responsibility
AIDS walk
Habitat for Humanity
Coats for Kids: Brannan the bear
8/14/2019 Multichannel sec2
13/51
Customer Service
Excellent
Management quality
Invest in employees
Large amounts of time spent on training
8/14/2019 Multichannel sec2
14/51
Financials
Net Profit Margin = Net Profit / Net Sales 1,030,000 / 15,854,000 = 0.065
Asset Turnover = Net Sales / Total Assets 15,854,000 / 10,343,000 = 1.5328
Leverage = Total Assets / Owners Equity
10,343,000 / 4,783,000 = 2.1625
Return on Equity = Net Profit Margin * Asset Turnover *Leverage 0.065 * 1.5328 * 2.1625 = 0.2155
8/14/2019 Multichannel sec2
15/51
Future of Gap
Opening a new store
Targeting a new group of customers
Target Market
Mostly Women
30 years of age and older
8/14/2019 Multichannel sec2
16/51
Overall Impression
Store
Website
8/14/2019 Multichannel sec2
17/51
Barnes and Noble
8/14/2019 Multichannel sec2
18/51
History
1917 William Barnes and G. Clifford Noble form
partnership, and open the first Barnes and Noble 1932 Opens flagship store in New York
1975 Revolutionizing bookselling
1985 Launches publishing division, first mail-order
catalog 1987-1989 Expansion
1991 Super-store
1993 Goes public on NYSE
1997 Launches website
8/14/2019 Multichannel sec2
19/51
Mission
We work hard to ensure that we offer ourcustomers a special experience each time
they connect with Barnes & Noble, whetherits in one of our stores or online. We arecommitted to providing our customers witha friendly, comfortable environment, helpful
and knowledgeable booksellers and thewidest selection at the best price.
8/14/2019 Multichannel sec2
20/51
Number and Locations
840 stores
50 states
District of Columbia Flagship Store in New York
New stores
40,000+ Employees
8/14/2019 Multichannel sec2
21/51
Special Programs
Membership Program--$25/year
Institutional Purchasing Program
Corporate Purchasing Program Publishing
Book Clubs
Storytime
Author Readings
8/14/2019 Multichannel sec2
22/51
Current Status
Nations largest bookseller Leading on-line retailer
Publisher
3rd
quarter profit fell 25%
8/14/2019 Multichannel sec2
23/51
Departments
Barnes & Noble Jr.
Music & Movie
Newsstand Calendars
Games
Accessories
Caf
8/14/2019 Multichannel sec2
24/51
Customer Service
Above Average
Knowledgeable Staff
Friendly and helpful Equal product selection across channels
8/14/2019 Multichannel sec2
25/51
Financials
Net Profit Margin = Net Profit / Net Sales
- 151,853 / 5,951,015 = .0255
Asset Turnover = Net Sales / Total Assets
- 5,951,015 / 3,507,294 = 1.69
Leverage = Total Assets / Owners Equity
- 3,507,294 / 1,259,659 = 2.78
Return on Equity = Net Profit Margin * Asset Turnover * Leverage
- .0255 X 1.69 X 2.78 = .1206
8/14/2019 Multichannel sec2
26/51
Online Special Services
Fast and FreeShipping
$25+ Shop until Dec. 20th
Manhattan Store
Members discount Store Locator
Author Information
Musician Information
Homepage
Author information
http://www.barnesandnoble.com/http://www.barnesandnoble.com/writers/writer.asp?cid=845871&&bnrefer=0-10000-5000000000000-5000000&bnit=hhttp://www.barnesandnoble.com/writers/writer.asp?cid=845871&&bnrefer=0-10000-5000000000000-5000000&bnit=hhttp://www.barnesandnoble.com/8/14/2019 Multichannel sec2
27/51
Overall Impression
Store
Website
8/14/2019 Multichannel sec2
28/51
Lands End
8/14/2019 Multichannel sec2
29/51
Lands End History
Founded by Gary Comer April 1963
Started by sailors selling sailboat equipment and duffle bags
First start in a Chicago basement
Currently resides in Dodgeville WI
8/14/2019 Multichannel sec2
30/51
Catalog History
1962 first advertised selling yachting equipment inthe one design yachtsman magazine
1965 first catalog officially starts named Lands EndYachtsmans Equipment Guild
1974 Equipment fazes out
1977 sales $3.6 million
8/14/2019 Multichannel sec2
31/51
Online History
Web site created in 1995
Recognized as a e-commerce leader
Innovative and service-oriented
Combined Sales 1998 1.4 billion
Currently 2 billion in sales
8/14/2019 Multichannel sec2
32/51
Lands End Locations
Lands' end operates 16 outlet and inlet stores in 4states, Wisconsin, Illinois, Minnesota and NewYork.
3 outlet stores in the united kingdom and 1 inJapan
Web sites have also been launched in theUnited Kingdom, Japan, Germany, France and
Ireland
O S
http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://www.landsend.co.uk&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://www.landsend.co.jp&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://www.landsend.de&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://fr.landsend.com&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://www.landsend.ie&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://www.landsend.ie&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://fr.landsend.com&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://www.landsend.de&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://www.landsend.co.jp&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://www.landsend.co.uk&sid=80851685817151202408/14/2019 Multichannel sec2
33/51
Online Services
Hemming
Monogramming
Virtual Model Swimsuit Finder
Personal Shopper/Lands End Live
Material Samples
Tips on Dressing
L d E d U i
8/14/2019 Multichannel sec2
34/51
Lands End Uniquecustomer service
Incredible Return policy. If not completelysatisfied with any item, at any time during youruse of it, return it and Lands End will refund
your full purchase price.
Shipping starts at $3.95 (one of the lowest inthe industry)
Live toll free help 24 / 7
L d E d S St t
8/14/2019 Multichannel sec2
35/51
Lands End Sears Status
Lands Ends clothes became available in875 Sears stores in 2002
Sears CEO Alan Lacy admitted that theclothes weren't selling well in more than athird of stores especially low income areas
However, in 300 stores in higher-incomeareas report strong sales of Lands Ends
Ad t i L d E d St
8/14/2019 Multichannel sec2
36/51
Advantages in Lands End StoreChanneling
Customers view products
Immediate gratification
Convenient location to return product
Advantages in Lands End Catalog
8/14/2019 Multichannel sec2
37/51
Advantages in Lands End CatalogChanneling
Convenience
Sense of security / shopping from home
Visual presentation
Ad antages in Lands End
8/14/2019 Multichannel sec2
38/51
Advantages in Lands EndInternet channeling
Convenience
Sense of security / shopping from home
Detailed and problem solving information
Personalization
Fi i l
8/14/2019 Multichannel sec2
39/51
Financials
Net Profit Margin=Net Profit / Net Sales
'01 = 34.7/1462 = 2.4%
'02 = 66.9/1569 = 4.3%
Asset Turnover = Net Sales / Total Assets
'01 = 1462/507.6 = 2.88
'02 = 1569/599.1 = 2.62
Fi i l
8/14/2019 Multichannel sec2
40/51
Financials
Leverage = Total Assets / Owner Equity
'01 = 507.6/314.2 = 1.62
'02 = 599.1/400.7 = 1.49
Return on Equity = Net Profit Margin x
Asset Turnover x Leverage '01 = .024 x 2.88 x 1.62 = 0.110
'02 = .043 x 2.62 x 1.49 = 0.167
Overall Impression
8/14/2019 Multichannel sec2
41/51
Website
Catalog
Store
Overall Impression
8/14/2019 Multichannel sec2
42/51
QVCQuality. Value. Convenience.
Founded on June 13, 1986 by Joseph Segel
Sets American Business record for 1st year sales
Debuts live in November, 1986
QVC Hi t
8/14/2019 Multichannel sec2
43/51
QVC History
1993- 1st international venture into UK
UKs 1st shopping channel
1995- Comcast Corp. and Tele-Communications Corp. acquire QVC
Introduce QCut Automated touch-tone system
QVC Hi t
8/14/2019 Multichannel sec2
44/51
QVC History
1996- QVC launches website iQVC
1996- QVC introduces QVC Germany
1st
retail shopping channel in Germany 1998- Internet sites in Canada and the UK
2001- QVC introduces QVC Japan
QVC B i O i
8/14/2019 Multichannel sec2
45/51
QVC Business Overview
Virtual Shopping mall thatnever closes
Telecast to 145 million
households world-wide
8634
13.111.6
US
Germany
UK
Japan
QVC B i O i
8/14/2019 Multichannel sec2
46/51
QVC Business Overview
Leader in electronic retailing
Purchase through 3 major avenues 50% Telephone Operator Assistance
40% Automated Ordering
10% Online at QVC.com
6 retail stores
7 distribution centers world-wide
Television
8/14/2019 Multichannel sec2
47/51
Television
QVCTV Live
Product Info
Price Display
Ways of Ordering
Urgency Availability guide
Timer
2 sales people Host
Vendor
Testimonials Live call-in program
Website
http://www.qvc.com/videostream/vid_linear.html?tmp=hp&cont=tbwtvhttp://www.qvc.com/videostream/vid_linear.html?tmp=hp&cont=tbwtv8/14/2019 Multichannel sec2
48/51
Website
International websites UKJapan Germany
QCard
Email Services
Product Reviews Todays Special Value
TV Program Guide
Watch QVCTV Live
United States
Customer Service FAQs
LiveHelp
Web E-mail Forms Contact Us
QVC FinancialQVC Financial
http://www.qvcuk.com/http://qvc.jp/cont/top/Main?serverId=3http://www.qvc.de/http://www.qvc.com/index.html?tmp=mh&cont=qvctexthttp://www.qvc.com/index.html?tmp=mh&cont=qvctexthttp://www.qvc.de/http://qvc.jp/cont/top/Main?serverId=3http://www.qvcuk.com/8/14/2019 Multichannel sec2
49/51
QVC FinancialQVC Financial
Gains over 194,000 new customers per month
2003 Revenue of $4.9 billion
11.8% growth
Employ 11,000
Overall Impression
8/14/2019 Multichannel sec2
50/51
Overall Impression
Website
Television
Conclusion
8/14/2019 Multichannel sec2
51/51
Conclusion
Overall Rating
Best store Gap
Best website Tie
Barnes and Noble
Lands End Best catalog
Lands End