HMV - School Project

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HMV - School Project

  1. 1. Content Introduction • Page • • Objective of Report & Background Information of HMV Existing Sales Platforms Rationales & Justification Behind Multi-Channel Retailing • Current & Changing Retail Environment SWOT Analysis • Strengths, Weaknesses, Opportunities, Threats Multi-Channel Retailing • Unique Benefits of Each Sales Channel • Synergy Created • Issues of Multi-Channel Retailing Retail Mix Strategy • Target Market, Retail Mix • Survey Results • Conclusion & Recommendations
  2. 2. Objective of ReportTo study and analyse HMV, a multi-channel retailer, its target market andretail mix, in relation to the retailscene in the lifestyle industry, currentmarket trends and influences, and thegrowth of the worldwide trend of e-tailing to support traditional brick andmortar businesses, and to find out theopportunities and threats facing HMV.
  3. 3. Introduction to HMV• International Retail Chain from the UK• Sells Lifestyle Products like Books, Music, Videos and Games• Found in London, England on 20 July 1921• Headquartered in Maidenhead, Berkshire in the UK• Today, HMV is a well-known trademark in the world with operations worldwide• In Singapore, HMV also offers movie merchandise like T-shirts, and soft toys to differentiate itself from others in the music industry
  4. 4. Existing Sales Platforms• Physical StoresIn Singapore, HMV only has 1 physicaloutlet, which is located in313@Somerset, #04-23/24, in the primeshopping district.• Digital StoresHMV has 3 localized e-tailing websites inthe United Kingdom, Hong Kong andCanada. However, the UK website,hmv.com, ships to 148 countries,including Singapore.
  5. 5. Rationales & Justifications behind Multi-Channel Retailing• Physical Store – Browsing, touch and feelattributes; social interaction• Online Store – Some products do notrequire touch and feel attributes e.g.concert tickets• Attract new market and increase sales• Reach out to new consumers whilesatisfying existing consumers better
  6. 6. Current & Changing Retail Environment• New & Innovative Retail ConceptsE.g. Venue VBOX, Digital Billboards and Self-Checkout Counter• Increase in Use of Technology• Physical Shops Venture into E-TailingE.g. The Face Shop, Kinokuniya• Increase in Pace of Life• Increase of Shopping Malls• Increase in Purchasing Power of Singaporeans
  7. 7. VBOX
  8. 8. S.W.O.T. AnalysisSpecialized One-Step Solution for MultimediaMarketing LoversExpertiseInnovative Badges Autographed by CelebsProducts With the Sale of CDsGood Prime Shopping District meansLocation High Human TrafficConsumer- Preview of CDs and Movies inoriented Physical OutletsProcessesPartnership Partnered up with Cinema Operator, Curzon, to offer a Differentiated Cinematic Experience
  9. 9. S. W.O.T. AnalysisLack of Marketing Efforts Only EvidentMarketing Through Online Mediums and Word-of-MouthLimited Located Exclusively in PrimeLocations Shopping Districts
  10. 10. S.W. O.T. AnalysisVenture into Mainly Focused on Music and MovieNew Market MarketsSegments Not Enough Game and Book SpecialitiesMore Stiff Competition in the IndustryAdvertising toCreate Brand Advertising Makes Consumers TakeAwareness Note of Brand NameIncrease Only 1 Physical Outlet in Somerset,Number of Making it Inconvenient forSales ConsumersChannels Set up More Localised E-Tailing Websites so that Products Reach Consumer s Faster
  11. 11. T S.W.O. . AnalysisPrice Wars That CD Shop Offers Bundled CD Promotions like 3 CDs for $49.90Innovation New Disc Village – Listening Jacksfrom with High Audio QualityCompetitors CD Hut Sells Remastered CDsPirated Illegal Digital Downloads from theMusic InternetOnline Trend to Buy Music from OnlineRetailers Retailers like iTunes, Amazon Would Not Think of HMV First When Purchasing Music Online
  12. 12. Unique Benefits of Each Channel• Physical stores• E-tailing• E-mailing• Call centre• Smartphone applications
  13. 13. Synergy Created from Multi-Channel Retailing• Check consumer’s satisfaction levels through online surveys• Overcome limitations that physical channel alone cannot offer
  14. 14. Issues of Multi-Channel RetailingMaintain Brand Constantly keep websites up-to-Image across date with the newest productChannels offeringsMerchandise Online channel offers widerAssortment variety of products than itsOffered in Each physical counterpartChannelPricing across Some products on its e-tailingChannels website cost cheaper due to competition from online retailersCentralized Difficulty in keeping up with theCustomer widening consumer databaseDatabase
  15. 15. Target Customers• Market segmentation• Psychographic/Behavioral/Age• Aged 13 and above• Deep assortment of products• Caters to trend-conscious with other merchandise• Gaming/Book markets
  16. 16. Retail MixMerchandise• Breadth and depth• Specialty store focusing on lifestyle format (music/movies)• Mall-based retailer• Up-to-date websiteMerchandising Pricing• Priced lower• No price reductions on new stocks (weekly)• Product bundling on old stocks• Increase profits• Lower inventory risk
  17. 17. Retail MixAdvertising & Promotions• No mainstream media• Sales promotions online• In-store advertising – window displays; off- shelf promotionsStore Design• Visual merchandising• Gondola shelves• Floor-to-ceiling wall-mounted shelves• Display shelves below cashier• Posters on window displays• Rectangular layout• Locate products easily
  18. 18. Retail MixCustomer Service• Limited, non-initiativeStore LocationSingapore• Contemporary place that sells on-trend shopping products• Locals’ and tourists’ favourite districtOther Countries• United Kingdom, Ireland, Australia, USA, Canada, Hong Kong, Japan and India• Increase international brand recognition
  19. 19. Survey Results• 82% know of HMV• 52% brought from HMV before48% bought digital music• 44% source Internet for music• 68% prefer hit track over whole album• 78% want HMV to have more outlets• 36% rated HMV 3 out of 10
  20. 20. Conclusion• Successful in creating brand awareness• Retain customer loyalty• Threat from illegal digital market• Offer more differentiated innovations• More aggressive marketing campaigns locally• More stores in Singapore
  21. 21. Recommendations• More advertising/promotion activities to create brand awareness• Open more outlets (physical/online)• Improve book/gaming merchandise• Invest more money into online channel• Same assortment across both channels• Revise pricing strategy against competitors’• Save falling sales in physical stores

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