1) Advance Auto Parts uses an in-store media network to connect its over 2,500 stores and address challenges from rapid expansion.
2) The network delivers programming, training, and corporate communications via satellite to screens in stores.
3) While advertising sales on the network have been slow, the network helps drive sales, integrate new employees, and reunited an abducted child with his mother by featuring him on America's Most Wanted.
1. PRESENTATION ON-:
“NETWORK PULLS A COMPANY TOGETHER”
BOOK NAME :
INTRODUCTION TO INFORMATION SYSTEM
( Supporting and Transforming Business )
AUTHOR :
RAINER / TURBAN / POTTER
SUBMITTED BY-:
RASHMI KUJUR
ENROLL NO: 11BSP1570
2. CASE STUDY
NETWORK PULLS A COMPANY TOGETHER
THE BUSINESS PROBLEM-:
Advance Auto Parts ( www.advanceautoparts .com) has been
around since 1932. In 1998 , an investment firm purchased the
company and began a period of rapid expansion , opening
hundreds of new outlets and buying out competitors . The
company ended up with more than 2500 stores. Unfortunately , it
also ended up with different sales strategies , systems and
management phhilosphies.
As a result , the company faced a big challenges in
interpreting new employees into its operations and promoting
brand recognition among its consumers . Employees had to quickly
become familiar with Advance’s products , sales systems, and
corporate culture.
3. THE IT SOLUTION -:
Advance decided to use an in-store media network with
programming showing on television screens around the
stores. Programming is delievered to stores via. Satellite ,
with appropriate video feeds targeted to specific stores.
For example : stores in centers with large Hispanic
populations receive programming in Spanish , and newly
opened stores receive a specific feed. Programming can also
be delievered to individual flat screens in stores, because
each screen has its own IP address.
The satellite feeds also transmit other corporate data
between the stores and the head office , such as the
electronic parts catalog. In the morning before the store
opens, the network delievers information on training seminars
, new in-store computer systems , and a product introduction
,as well as company news . After the doors open, the
programming switches to sports scores, car parts and
accessories, and repair tips.
4. THE RESULTS -:
Originally , Advance believed they could make money by
selling advertising on the network. This has not yet turned out to be
the case. Although Advance sells ads to suppliers such as
Halvoline Motor Oil and Bondo Filler,advertisers have been slow to
embrace the concept.
The system makes its greatest impact when the stores are busy
and customers are waiting in line.
For some products such a snew carburettor, the customer has a
definite need and is not subject to impulse advertising on the
screens. However , for other items , such as motor oil , Advance’s
network has had success in driving in-store sales.
For example :- A recent promotion for Bosch wind-Shield wipers
increased sales by 62%
The network’s biggest impact to Date , however had nothing to do
with the bottom line . The network’s programming includes spots
for the National Center for Missing and Exploited Children with “
America’s Most Wanted “.
In June 2003 , an employee spotted an abductor with a child in an
Advance store and called the police . As a result of the employee’s
actions , the boy was reunited with his mother after four years.
5. QS1. Do you feel that in-store media advertising is effective or just
annoying ?
Solution: In-store media advertising ,though has been less effective,
is definitely not annoying.
Advance auto parts company owns more than 2500 stores today
and has variety of customers visiting its different outlets
everyday,and the outlets being located in various places in USA.
Though few customers have a definite need and are not subjected
to impulse advertising on the screens, there are few set of auto
parts which will definitely need references.Hence customers do
refer to advertisements.
To make this referencing process more prevalent and to fetch profit
to the company ,the company may incorporate few strategies like-:
A). Make the customer process of choosing product among many
options easier.
For eg: Display the comparison as below
6. Name of the Autopart Cost Mileage
1.Goodyear tyres Around Rs 6500/- 45000km
2.Michellin tyres Around Rs 9000/- 90000km
This eases customer process of choosing between the various
autoparts,accordingly If he/she is looking for more durable tyres or lesser
price tyres.
7. 2. Let the customer know the increase in performance by
shifting from one autopart to another .
For eg: The most commonly used gas in Air Conditioners of
cars is Freon,which is harmful and damages ozone
layer.Display the ill effects of this gas.And give the alternative
which would be R-134 ,which is less harmful and gives equal
effect.
3.Displaying of the images of the vehicles, before and after
modification.So that the customer gets clear picture on the
products/accessories.
4.Displaying the testimonials from the customers regarding
the service of the organization,performance of their vehicles
on changing over to a new autopart .
Finally Customers should have wide variety of choices to
choose on the product.By incorporating these strategies the
buying process will increase and this will lead to increase in
sales which will fetch profit to the company.
8. QS 2 ) Should stores collect feedback from their customers about
in-store media?
a)If so,then what types of information should they collect?
b)How should they use this information?
Solution: Yes, definitely the stores should collect the feedback
,since feedback is the one which keeps any information system
undeviated from working towards the core concept/aim of any
business organisation i.e.,to satisfy the customer needs,which
makes the system more effective and efficient.
Every customer has different point of view and is looking for a
different variety of product ,hence every system should regularly
collect feedbacks.In simple words, organisation should often get
assessed by the customers.
a)To collect information the organization should prepare a
questionnaire which will have the following:
9. QUESTIONNAIRE HOW TO USE THE INFORMATION
1.Did u choose the product or were you Helps to find the percentage of the people who
motivated by the advertisements displayed on are motivated by the advertisement displayed
the TV screens of the store ? on the TV screens of the store
2.Do you think the details of the product This can be used to make the product details
displayed in the ads was sufficient enough to more defined. In the cases where people are not
make a choice? clear with the applications, usability,warranty
and life span of a product.
3. Do you have enough number of “options “and To decide whether to add on more products on
“choices” to make a choice? the display screen
4.Mention the name of three accessories To know the products on demand .This analysis
that you are more likely to buy in the next can be used by the companies who place
visit or near future? advertisements in the store.
10. Apart from this the company can also collect feedbacks
which would get information on the employee’s
efficiency,knowledge of an employee about the product,the
time delay occured to deliver the product, etc to improvise on
the strategies used by the company on the Human resources
and service sectors