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Two Worlds Collide Bringing the Category Captain Model to E-commerce   Michael Stich  Bridge Worldwide November 12 th , 2008
E-commerce Agenda <ul><li>Introduction </li></ul><ul><li>The History of E-commerce, and Why It Matters Today </li></ul><ul...
Bridge Worldwide
Top 25 Best Small Companies to Work  for in America (2006, 2007, and 2008) Part of WPP Group, the largest agency holding c...
Our Positioning Digital Relationship
Bridge Worldwide E-commerce Strategy and Solutions Others In Development
Looking Forward By Looking Back
In 1955, Before E-commerce, CPG Focus Was on Supporting the Consumer Through Retailers <ul><li>Manufacturers sold products...
By 1985, New Forms of Collaboration Led to Category Management and Other In-Store Innovations <ul><li>Category management ...
E-commerce Arrived 10 Years Ago, Frightened the CPG Industry, and Then...Nothing Happened <ul><li>Low consumer demand and ...
Since Then,  E-commerce Has Come To Mean More Than PC’s, Books and Tickets… <ul><li>Online Home & Garden, Food & Beverage,...
In Fact, A Strange Thing Has Occurred -  US CPG E-commerce Is Now a $12B market <ul><li>More consumers are getting online,...
2008: What’s The “Right” Way  To Approach E-commerce?  A Few Winning Strategies
We Looked At Many Companies That Are Thriving From E-commerce:
While We Found Many E-commerce Successes, We Noticed A Few Guiding Strategies.. <ul><ul><li>Create a Compelling Product  <...
..With Reusable Principles For Each Strategy <ul><ul><li>Create a Compelling Product  </li></ul></ul><ul><ul><li>Dramatica...
We Found Successful E-commerce Strategies Beginning to Appear in Consumer Goods Create a Compelling Product  –  Nespresso,...
Example E-commerce Opportunity:  Optimized E-store for Every Category <ul><li>Turnkey E-commerce capability for All CPG Pr...
Example E-commerce Opportunity:  Focus on Beauty   <ul><li>Consumer:  </li></ul><ul><li>I want what I want when I want it....
Example E-commerce Opportunity:  Focus on Community <ul><li>Put the user at the center of the site: </li></ul><ul><li>Let ...
Example E-commerce Opportunity:  Focus on Unique Information <ul><li>But teach me things  I don’t know. </li></ul><ul><li>...
Example E-commerce Opportunity:  Focus on Delight <ul><li>Surprise and delight me </li></ul><ul><li>Free sample when  you ...
The E-commerce Category Captain:  A Big Opportunity For Industry Collaboration <ul><li>Build a compelling and optimized sh...
Great, You’ve Got a Category Model.  Now What?  Multi-Channel Integration
The Consumer Is Growing More Multi-Channel, So Should You! <ul><li>68% compare prices online before shopping in a physical...
Implications: Many Companies Newly Focused On Thematic, Emotive Design… <ul><li>Guiding Approach: Focus on the  CRUX  of C...
Who’s Making Multi-Channel Work?  Circuit City <ul><li>Buy online, pick up at the store within 24 minutes or get a $24 gif...
Who’s Making Multi-Channel Work?  Target <ul><li>Social Shopping Lists </li></ul><ul><li>Add To Cart, OR Find It At A Targ...
Where We Are Headed Next?
How Will E-commerce Evolve?  More Consumer.   <ul><li>Likely Evolution from Today’s Strategies and Principles, but: </li><...
How To Get In: Our Recommended Approach <ul><li>Make a new pledge: Support the market with shopper insights in every brand...
Thank You!
Backup
Each With Their Own Supporting Principles <ul><li>ACCESSIBILITY: Serve consumers with products they can't buy in their nea...
Sell to a Niche Consumer:  Williams-Sonoma <ul><li>What They Did:   </li></ul><ul><ul><li>Targeted the bride, groom, and t...
Sell to a Niche Consumer:  PetMeds <ul><li>What They Did:   </li></ul><ul><ul><li>Offered pet medications delivered direct...
Create a Compelling Business Model:  Tesco <ul><li>What They Did:  </li></ul><ul><ul><li>Tesco, a leading food retail grou...
Create a Compelling Product:  M&M’s <ul><li>What They Did:  </li></ul><ul><ul><li>M&M’s launched a custom printed M&M’s pr...
Dramatically Improve the Purchase Experience:   Bare Escentuals <ul><li>What They Did:  </li></ul><ul><ul><li>Leveraged th...
Create a Compelling Business Model:  Amazon <ul><li>What They Did:   </li></ul><ul><ul><li>Direct to the consumer. </li></...
Create a Compelling Product:  Apple <ul><li>What They Did:  </li></ul><ul><ul><li>Allow consumers to customize their produ...
Dramatically Improve the Purchase Experience:  Netflix <ul><li>What They Did:  </li></ul><ul><ul><li>Customers subscribe a...
Create a Compelling Product:  Nespresso <ul><li>What They Did:  </li></ul><ul><ul><li>Created ordering system based on you...
Sell to a Niche Consumer:  PetMeds <ul><li>What They Did:   </li></ul><ul><ul><li>Offered pet medications delivered direct...
Create a Compelling Business Model:  Tesco <ul><li>What They Did:  </li></ul><ul><ul><li>Tesco, a leading food retail grou...
Retailers Jumping On Board:  Target <ul><li>What They Did:  </li></ul><ul><ul><li>Expanded the retail chain’s offline shop...
Sell To A Niche Consumer: Use Social Networking <ul><li>Rosetta recently conducted a study amongst the top 100 online reta...
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Two Worlds Collide: Bringing the Category Captain Model to E-commerce

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As consumers search for additional savings by expanding the kinds of products they buy online, both suppliers and retailers are rushing into E-commerce. This creates opportunities and challenges for both sides as they decide what to sell online, how to sell with distinction, how to work together…and how to measure success.
Bridge Worldwide will outline best practices in E-commerce today, focusing on the principles and strategies that lead to wins—and defining a new type of retailer/supplier collaboration for those
looking to sell directly to the consumer.

Published in: Business, Technology

Two Worlds Collide: Bringing the Category Captain Model to E-commerce

  1. 1. Two Worlds Collide Bringing the Category Captain Model to E-commerce Michael Stich Bridge Worldwide November 12 th , 2008
  2. 2. E-commerce Agenda <ul><li>Introduction </li></ul><ul><li>The History of E-commerce, and Why It Matters Today </li></ul><ul><li>Who’s Succeeding and Why </li></ul><ul><li>The Big Opportunity For The Future </li></ul>
  3. 3. Bridge Worldwide
  4. 4. Top 25 Best Small Companies to Work for in America (2006, 2007, and 2008) Part of WPP Group, the largest agency holding company in the world with 2,000 offices in 106 countries. Affiliation: 200 people including Creative, Technology, Research, Strategy, Experience Planning and Account Service. Employee Makeup: Cincinnati Headquarters: 1979 Founded:
  5. 5. Our Positioning Digital Relationship
  6. 6. Bridge Worldwide E-commerce Strategy and Solutions Others In Development
  7. 7. Looking Forward By Looking Back
  8. 8. In 1955, Before E-commerce, CPG Focus Was on Supporting the Consumer Through Retailers <ul><li>Manufacturers sold products based on where consumers wanted to buy them. </li></ul><ul><li>Distribution was simpler with traditional offline customers. </li></ul><ul><li>Manufacturers and retailers optimized operations for this model over hundreds of years of refinement. </li></ul>
  9. 9. By 1985, New Forms of Collaboration Led to Category Management and Other In-Store Innovations <ul><li>Category management brought consumer science to the retail channel. </li></ul><ul><li>Efficient assortment optimized selection for overall productivity. </li></ul><ul><li>Shopper understanding helped merchandisers enhance in-store selection. </li></ul><ul><li>Shelf innovations led to an easier and more efficient shopping experience. </li></ul>Insights Best Practices + Results
  10. 10. E-commerce Arrived 10 Years Ago, Frightened the CPG Industry, and Then...Nothing Happened <ul><li>Low consumer demand and adoption. </li></ul><ul><li>Concerns about channel conflict. </li></ul><ul><li>Result: Low industry involvement. </li></ul>
  11. 11. Since Then, E-commerce Has Come To Mean More Than PC’s, Books and Tickets… <ul><li>Online Home & Garden, Food & Beverage, Child & Baby Care are $1B markets. </li></ul>
  12. 12. In Fact, A Strange Thing Has Occurred - US CPG E-commerce Is Now a $12B market <ul><li>More consumers are getting online, researching online, and buying online. </li></ul><ul><li>Early-adopter consumers buying even more categories, for very important reasons </li></ul><ul><li>Traditional retailers starting to get it. </li></ul>*Includes baby products, cosmetics, fragrances, food, medicine, personal care, home care, pet supplies. Source: 2006 Forrester Research, 2007 Bernstein, Bridge Analysis More Consumers… Number of US E-commerce Households (MM) ..Buying More CPG Products… Total US CPG E-commerce Sales ($B) 10 15 Food + Beverage Baby All Others ..From More Customers Total US E-commerce Sales by Vendor, % $125MM Amazon.com Traditional Retailers All Others 100%=$90MM
  13. 13. 2008: What’s The “Right” Way To Approach E-commerce? A Few Winning Strategies
  14. 14. We Looked At Many Companies That Are Thriving From E-commerce:
  15. 15. While We Found Many E-commerce Successes, We Noticed A Few Guiding Strategies.. <ul><ul><li>Create a Compelling Product </li></ul></ul><ul><ul><li>Dramatically Improve the Purchase Experience </li></ul></ul><ul><ul><li>Create a Compelling Business Model </li></ul></ul><ul><ul><li>Sell to a Niche Consumer </li></ul></ul>
  16. 16. ..With Reusable Principles For Each Strategy <ul><ul><li>Create a Compelling Product </li></ul></ul><ul><ul><li>Dramatically Improve the Purchase Experience </li></ul></ul><ul><ul><li>Create a Compelling Business Model </li></ul></ul><ul><ul><li>Sell to a Niche Consumer </li></ul></ul><ul><li>ACCESSIBILITY </li></ul><ul><li>TIME SAVING </li></ul><ul><li>DISCRETION </li></ul><ul><li>AUTO-REPLENISHMENT </li></ul><ul><li>DIRECT SALE </li></ul><ul><li>MARKETPLACE </li></ul><ul><li>EXCLUSIVITY </li></ul><ul><li>BUILD TO ORDER </li></ul><ul><li>UPGRADEABILITY </li></ul><ul><li>PERSONALIZATION </li></ul><ul><li>SIMPLICITY </li></ul><ul><li>PAYMENT OPTIONS </li></ul><ul><li>GIVE BACK </li></ul>
  17. 17. We Found Successful E-commerce Strategies Beginning to Appear in Consumer Goods Create a Compelling Product – Nespresso, M&M’s Sell to a Niche Consumer - PetMeds, Align Create a Compelling Business Model - Tesco, Luvs Dramatically Improve the Purchase Experience – DDF, Kroger
  18. 18. Example E-commerce Opportunity: Optimized E-store for Every Category <ul><li>Turnkey E-commerce capability for All CPG Products </li></ul><ul><li>Recommender systems helping consumers buy </li></ul><ul><li>Flexible shopping cart options </li></ul><ul><li>Fulfilled by regional or national partners </li></ul><ul><li>Available on website, mobile, and rich media banner ads </li></ul>
  19. 19. Example E-commerce Opportunity: Focus on Beauty <ul><li>Consumer: </li></ul><ul><li>I want what I want when I want it. </li></ul><ul><li>And I may want stuff I don’t know I want. </li></ul><ul><li>If you can’t give it to me, I’m gone. </li></ul>
  20. 20. Example E-commerce Opportunity: Focus on Community <ul><li>Put the user at the center of the site: </li></ul><ul><li>Let me rate it. </li></ul><ul><li>Let me review or recommend it. </li></ul><ul><li>Let me share it with my friends. </li></ul>
  21. 21. Example E-commerce Opportunity: Focus on Unique Information <ul><li>But teach me things I don’t know. </li></ul><ul><li>Video demo, deeper content, comparisons </li></ul>
  22. 22. Example E-commerce Opportunity: Focus on Delight <ul><li>Surprise and delight me </li></ul><ul><li>Free sample when you buy. </li></ul><ul><li>Free shipping when you spend over $50 </li></ul>
  23. 23. The E-commerce Category Captain: A Big Opportunity For Industry Collaboration <ul><li>Build a compelling and optimized shopping experience </li></ul><ul><li>Make it an independent brand </li></ul><ul><li>Invite and your customers or suppliers to join you </li></ul><ul><ul><li>Ownership </li></ul></ul><ul><ul><li>Branding </li></ul></ul><ul><ul><li>Purchase Options </li></ul></ul><ul><ul><li>Promotions </li></ul></ul><ul><ul><li>Loyalty Programs </li></ul></ul>
  24. 24. Great, You’ve Got a Category Model. Now What? Multi-Channel Integration
  25. 25. The Consumer Is Growing More Multi-Channel, So Should You! <ul><li>68% compare prices online before shopping in a physical store </li></ul><ul><li>58% locate items online before purchasing offline </li></ul><ul><li>67% prefer to research online and buy from physical stores </li></ul>Source: 2008 Accenture
  26. 26. Implications: Many Companies Newly Focused On Thematic, Emotive Design… <ul><li>Guiding Approach: Focus on the CRUX of Creative (CR) and User Experience (UX) </li></ul><ul><li>Usability </li></ul><ul><li>Engage For Decisions </li></ul><ul><li>Reduce Barriers </li></ul>USER EXPERIENCE CREATIVE CRUX <ul><li>Aesthetics And Tone </li></ul><ul><li>Inspiration and Emotional Response </li></ul>
  27. 27. Who’s Making Multi-Channel Work? Circuit City <ul><li>Buy online, pick up at the store within 24 minutes or get a $24 gift card. </li></ul><ul><li>“ One Price Promise” across the store, direct-mail and the web </li></ul><ul><li>Free shipping over $24, always-free returns </li></ul>
  28. 28. Who’s Making Multi-Channel Work? Target <ul><li>Social Shopping Lists </li></ul><ul><li>Add To Cart, OR Find It At A Target Store </li></ul><ul><li>For every product: store locations, hours of operation and a telephone number, sorted by distance </li></ul>
  29. 29. Where We Are Headed Next?
  30. 30. How Will E-commerce Evolve? More Consumer. <ul><li>Likely Evolution from Today’s Strategies and Principles, but: </li></ul><ul><ul><li>More personalized </li></ul></ul><ul><ul><li>More communal </li></ul></ul><ul><ul><li>More mobile </li></ul></ul><ul><ul><li>More informative </li></ul></ul><ul><ul><li>More global </li></ul></ul><ul><ul><li>More efficient </li></ul></ul><ul><ul><li>More enjoyable </li></ul></ul>
  31. 31. How To Get In: Our Recommended Approach <ul><li>Make a new pledge: Support the market with shopper insights in every brand and channel. </li></ul><ul><li>Address specific E-commerce segments with best-practice business models, promotions, and products </li></ul><ul><ul><li>Apply the Four Strategies: Niche Consumer, Business Model, Product, Purchase Experience </li></ul></ul><ul><li>Foster brand-retailer collaboration via the Category Captain model, by sharing consumer insights and optimized e-store properties. </li></ul><ul><ul><li>Remember CRUX </li></ul></ul><ul><li>Lead with Web 2.0 (it’s not your E-commerce engine, it’s the consumers’) </li></ul>
  32. 32. Thank You!
  33. 33. Backup
  34. 34. Each With Their Own Supporting Principles <ul><li>ACCESSIBILITY: Serve consumers with products they can't buy in their nearby retail. </li></ul><ul><li>TIME SAVING: Target time-constrained consumers and automate their purchase experience. </li></ul><ul><li>DISCRETION: Focus on consumers with disabilities, or on products requiring discretion, both of which complicate in-store purchase. </li></ul><ul><li>AUTO-REPLENISHMENT: Auto-replace products with repurchase cycles and/or low consideration. </li></ul><ul><li>DIRECT SALE: Sell direct for cost and quality advantage. </li></ul><ul><li>MARKETPLACE: Create a marketplace for buyers and sellers to transact online. </li></ul><ul><li>EXCLUSIVITY: Offer product availability, information, or promotions early or exclusively online. </li></ul><ul><li>BUILD TO ORDER: Allow consumers to customize their product with a set of feature combinations. </li></ul><ul><li>UPGRADEABILITY: Sell a platform with upgradeable subcomponents over time. </li></ul><ul><li>PERSONALIZATION: Provide a personalized purchase experience for each consumer. </li></ul><ul><li>SIMPLICITY: Provide one-click simplicity and more convenient, easier payment options. </li></ul><ul><li>PAYMENT OPTIONS: Give the consumer new choices for how to pay for the product. </li></ul>Sell to a Niche Consumer Create a Compelling Business Model Create a Compelling Product Dramatically Improve the Purchase Experience E-commerce Strategy Supporting Principles
  35. 35. Sell to a Niche Consumer: Williams-Sonoma <ul><li>What They Did: </li></ul><ul><ul><li>Targeted the bride, groom, and their wedding registry experience </li></ul></ul><ul><li>Why It Worked: </li></ul><ul><ul><li>Allows the bride, groom, and guests to keep track of the registry and the gifts purchased </li></ul></ul><ul><ul><li>Facilitated perfect sales without having to go to the store </li></ul></ul><ul><li>Key Lessons/Principles: </li></ul><ul><ul><li>Target time-constrained consumers and automate the purchase experience. </li></ul></ul>
  36. 36. Sell to a Niche Consumer: PetMeds <ul><li>What They Did: </li></ul><ul><ul><li>Offered pet medications delivered directly to the consumer’s door, at a discounted price </li></ul></ul><ul><li>Why It Worked: </li></ul><ul><ul><li>Allows the pet owner to reorder exact medications by logging in to their account </li></ul></ul><ul><ul><li>Expanded the offering beyond medication to animal toys/accessories to broaden appeal </li></ul></ul><ul><li>Key Lessons/Principles: </li></ul><ul><ul><li>Target time-constrained pet owners and allow for easy reordering of pet medications. </li></ul></ul><ul><ul><li>Offer hard-to-find and expensive products, while providing full customer service and pharmacy reps. </li></ul></ul>
  37. 37. Create a Compelling Business Model: Tesco <ul><li>What They Did: </li></ul><ul><ul><li>Tesco, a leading food retail group in the UK, launched an online grocery and consumer packaged goods delivery service </li></ul></ul><ul><li>Why It Worked: </li></ul><ul><ul><li>Offered broader set of products </li></ul></ul><ul><ul><li>Made it simple and fast to order groceries online, and get efficient delivery service </li></ul></ul><ul><li>Key Lessons/Principles </li></ul><ul><ul><li>Make ordering online simple and fast (so consumers will be willing to order more CPG products online). </li></ul></ul><ul><ul><li>Actively manage Search Engine Optimization results to maximize traffic to the site. </li></ul></ul>
  38. 38. Create a Compelling Product: M&M’s <ul><li>What They Did: </li></ul><ul><ul><li>M&M’s launched a custom printed M&M’s product. </li></ul></ul><ul><ul><li>Consumer can choose colors, messages and packaging options. </li></ul></ul><ul><li>Why It Worked: </li></ul><ul><ul><li>The uniqueness and surprise of a customized product inside a mass-market brand </li></ul></ul><ul><ul><li>Limited range of choices: right mix of mass appeal and standard fulfillment </li></ul></ul><ul><li>Key Lessons/Principles: </li></ul><ul><ul><li>Give consumers a way to creatively communicate or express themselves. With a finite set of combinations. </li></ul></ul><ul><ul><li>Extend the existing appeal of a big brand. </li></ul></ul>
  39. 39. Dramatically Improve the Purchase Experience: Bare Escentuals <ul><li>What They Did: </li></ul><ul><ul><li>Leveraged the popularity of the product from infomercials to both offline and online stores </li></ul></ul><ul><li>Why It Worked: </li></ul><ul><ul><li>Detailed product information and instructions for use; brings the makeup consultant into consumer’s home </li></ul></ul><ul><ul><li>Intuitive progression of navigation, from prep to lips to accessories </li></ul></ul><ul><ul><li>Clean, simple design consistent with branding/packaging </li></ul></ul><ul><li>Key Lessons/Principles: </li></ul><ul><ul><li>Make product selections easier for the consumer by displaying all options up front. </li></ul></ul><ul><ul><li>Provide related items and recommendations based on consumer’s interests and/or chosen products. </li></ul></ul><ul><ul><li>Offer “always free shipping” on total purchase over a specific price point. </li></ul></ul><ul><ul><li>Push exclusive offers not available in stores. </li></ul></ul>
  40. 40. Create a Compelling Business Model: Amazon <ul><li>What They Did: </li></ul><ul><ul><li>Direct to the consumer. </li></ul></ul><ul><ul><li>Eliminated redundancy in the value chain, enabling lower-priced goods </li></ul></ul><ul><ul><li>Coupled complimentary products into solutions based on what others buy </li></ul></ul><ul><li>Why It Worked: </li></ul><ul><ul><li>Timely fulfillment and safe/trusted transactions </li></ul></ul><ul><ul><li>Complementary recommendations for cross-sell </li></ul></ul><ul><li>Key Lessons/Principles: </li></ul><ul><ul><li>Streamline the value chain for efficiencies. </li></ul></ul><ul><ul><li>Enable auto-replenishment of cyclical products. </li></ul></ul>
  41. 41. Create a Compelling Product: Apple <ul><li>What They Did: </li></ul><ul><ul><li>Allow consumers to customize their product--with a finite set of feature combinations. </li></ul></ul><ul><ul><li>Make extensive product details easy to understand. </li></ul></ul><ul><li>Why It Worked: </li></ul><ul><ul><li>Personalization </li></ul></ul><ul><ul><li>Added convenience </li></ul></ul><ul><ul><li>Product extensions and upgrades that enhance the original purchase </li></ul></ul><ul><li>Key Lessons/Principles: </li></ul><ul><ul><li>Give consumers the option to personalize their product. </li></ul></ul><ul><ul><li>Sell a digital service for the product that ensures ongoing relevance. </li></ul></ul>
  42. 42. Dramatically Improve the Purchase Experience: Netflix <ul><li>What They Did: </li></ul><ul><ul><li>Customers subscribe and rent online, and movies are delivered through the mail. </li></ul></ul><ul><ul><li>No due date. </li></ul></ul><ul><ul><li>Recommender systems drive additional rentals. </li></ul></ul><ul><li>Why It Worked: </li></ul><ul><ul><li>Convenient, helpful ordering and return service </li></ul></ul><ul><ul><li>Removed consumer penalty - late fees </li></ul></ul><ul><ul><li>Rich content, easy-to-use functionality, and democratic opinions </li></ul></ul><ul><li>Key Lessons/Principles: </li></ul><ul><ul><li>Make product selections easier for the consumer. </li></ul></ul><ul><ul><li>Remove consumers' existing barriers/penalties. </li></ul></ul><ul><ul><li>Simplify returns . </li></ul></ul><ul><ul><li>Provide a feedback loop. </li></ul></ul>
  43. 43. Create a Compelling Product: Nespresso <ul><li>What They Did: </li></ul><ul><ul><li>Created ordering system based on your unique coffeemaker </li></ul></ul><ul><li>Why It Worked: </li></ul><ul><ul><li>Easy ordering and convenient delivery to home or office </li></ul></ul><ul><li>Key Lessons/Principles: </li></ul><ul><ul><li>Recommending a product specific to individual’s wants eliminates the confusion and simplifies the choice. </li></ul></ul><ul><ul><li>Allow consumers to customize their product with a finite set of feature combinations. </li></ul></ul>
  44. 44. Sell to a Niche Consumer: PetMeds <ul><li>What They Did: </li></ul><ul><ul><li>Offered pet medications delivered directly to the consumer’s door, at a discounted price </li></ul></ul><ul><ul><li>Brought the pet pharmacy to an online/easy-access venue. </li></ul></ul><ul><li>Why It Worked: </li></ul><ul><ul><li>Allows the pet owner to reorder exact medications by logging in to their account </li></ul></ul><ul><ul><li>Expanded the store offering beyond medication to animal toys/accessories to broaden appeal of the store </li></ul></ul><ul><ul><li>Includes an online pharmacy supported by pharmacy technicians to answer questions during office hours </li></ul></ul><ul><ul><li>Introduced Price Match to beat the competition’s prices </li></ul></ul><ul><li>Key Lessons/Principles: </li></ul><ul><ul><li>Target time-constrained pet owners and allow for easy reordering of pet medications. </li></ul></ul><ul><ul><li>Offer a typically hard-to-find and expensive product at a discounted price, while still providing full customer service and pharmacy reps. </li></ul></ul>
  45. 45. Create a Compelling Business Model: Tesco <ul><li>What They Did: </li></ul><ul><ul><li>Tesco, a leading food retail group in the UK, launched an online grocery delivery service </li></ul></ul><ul><ul><li>More recently, Tesco expanded its offerings to other consumer packaged goods. </li></ul></ul><ul><li>Why It Worked: </li></ul><ul><ul><li>Offered broader set of products </li></ul></ul><ul><ul><li>Made it simple and fast to order groceries online </li></ul></ul><ul><ul><li>Quick and efficient delivery service </li></ul></ul><ul><li>Key Lessons/Principles </li></ul><ul><ul><li>Make ordering online simple and fast (so consumers will be willing to order more CPG products online). </li></ul></ul><ul><ul><li>Actively manage Search Engine Optimization results to maximize traffic to the site. </li></ul></ul>
  46. 46. Retailers Jumping On Board: Target <ul><li>What They Did: </li></ul><ul><ul><li>Expanded the retail chain’s offline shop to online </li></ul></ul><ul><li>Why It Worked: </li></ul><ul><ul><li>Gave consumers a convenient way to shop at their favorite store and compare prices </li></ul></ul><ul><li>Key Lessons/Principles: </li></ul><ul><ul><li>Offer items available exclusively online to give customers a reason to shop online as opposed to at the store </li></ul></ul><ul><ul><li>Build on the existing appeal of a well-known brand </li></ul></ul><ul><ul><li>Sell online first to seed word-of-mouth with early consumers, and to capture key insights from them </li></ul></ul><ul><ul><li>Sell products that have an embarrassment factor associated with an in-store purchase </li></ul></ul>
  47. 47. Sell To A Niche Consumer: Use Social Networking <ul><li>Rosetta recently conducted a study amongst the top 100 online retailers in the US. </li></ul><ul><li>The study found that 59 had a fan page on Facebook, up from 30 in May 2008. </li></ul><ul><li>“ Social media sites continue to be an important source of community connection, and savvy retailers are reaping the benefits of Facebook’s rapid extension into new demographics, such as Gen X and seniors“. </li></ul><ul><ul><li>Adam Cohen, Rosetta </li></ul></ul>

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