Question #12Question #13What has Amazon done right?Multi-Channel IntegrationAchieving IntegrationConsumer Value PropositionSlide 7Slide 8Leveraging the Multi-Channel Business ModelLeveraging Existing AssetsSlide 11Overcoming Channel Specific LimitationsSlide 13Slide 14Slide 15Slide 16Gaining Consumer InsightSlide 18Building the BrandSlide 20New Revenue StreamsSlide 22Slide 23Channel SynchronizationSlide 25Slide 26Slide 27Slide 28Slide 29Question #12How many Internet users are purchasing online?55% (77% browsed/shopped)Vs. 51% and (75%) last yearQuestion #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SynergiesWhat 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PartnershipsMulti-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 #6Achieving IntegrationCreating consumer valueLeveraging the multi-channel business modelDeveloping new revenue streamsChannel synchronizationConsumer Value PropositionRisk ReductionStores Catalog InternetGratificationObjectivity/credibilityInformationTrial PricePers. ServiceConsumer Value PropositionShopping EaseStores Catalog InternetPayment optionsPortability AccessibilityImpulse Longevity SelectionIntentional BrowsingAccessibilityConvenienceConsumer Value PropositionShopping ExperienceStores Catalog InternetEntertainmentIdeas PersonalizationSocial InteractionUniquenessImmediacyCommunityLeveraging the Multi-Channel Business ModelLeverage existing assetsOvercome channel-specific limitationsGain insight into cross-channel shopping behaviorLeveraging Existing AssetsBrand name recognitionLeveraging Existing AssetsBrand name recognitionAdvertisingCustomersPhysical assetsSupply chain capabilitiesService capabilitiesOvercoming Channel Specific LimitationsStoresSpace constraintsInconsistent executionOvercoming Channel Specific LimitationsCatalogsHigh costOvercoming Channel Specific LimitationsCatalogsHigh costStaticOvercoming Channel Specific LimitationsInternetLack of visibilityAmazon, wine.com, cooking.com, Mycashmere, Gold Violin launched catalogsOvercoming Channel Specific LimitationsInternetLack of credibilityGaining Consumer InsightCapture true demandGaining Consumer InsightCapture true demandCross-channel visibilityCustomer feedbackBuilding the BrandBuilding the BrandNew 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 lineNew Revenue StreamsExtensionCurrent market/new customersEddie Bauer, Sharper Image, Lands’ EndNew Revenue StreamsExpansionCurrent market/new geographic marketsREI-JapanDiversificationNew products, services, solutionsEddie Bauer – Children’sGap - MaternityChannel 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 channelsChannel SynchronizationPricingUse of flexibilityChannel SynchronizationPricingUse of flexibilityChannel 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 catalogChannel 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