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Jessops E commerce HULT MDM 2011


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The presentation was performed for the e-commerce subject of HULT International Business School Master of Digital Marketing program on June 2011. We had a great team of Olli Lainto, Betty Broines, Martha Tolosa, Eduardo Hauck and Satomi Hisamoto as well as a great mentor Professor Ian Jindal. Thank you very much!

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Jessops E commerce HULT MDM 2011

  1. 1. Consulting Report
  2. 2. <ul><ul><li>Key issues </li></ul></ul><ul><ul><li>Solution in a nutshell </li></ul></ul><ul><ul><li>What’s the base of it </li></ul></ul><ul><ul><li>Project overview </li></ul></ul><ul><ul><li>Steps 1 to 3  </li></ul></ul><ul><ul><li>Conclusions </li></ul></ul><ul><ul><li>Next steps </li></ul></ul><ul><ul><li>Q&A </li></ul></ul>Agenda
  3. 4. Competitive Environment Porter’s 5 Forces
  4. 5. SWOT
  5. 8. What's the base of it? Greener grass for the cattle
  6. 9. Point and Shoot cameras challenged to survive the Smartphones Sales decreased from $2.4 billion in 2008 to just $1.9 billion in 2011* Big brands are facing this challenge and coming out with new solutions *Market Research NPD group
  7. 10. Worldwide Digital Camera Market focusing on DSLR Cameras   <ul><ul><li>Sales of DSLRs Cameras in the UK </li></ul></ul><ul><ul><li>Sustained steady growth in shipments of SLR's accesories </li></ul></ul><ul><ul><li>Demand for Digital cameras and SLR demand increased specially emerging markets,  due to the rise in internet usage. </li></ul></ul><ul><ul><li>Shipments to European continent expected to mantain. </li></ul></ul>
  8. 11. Don't compete with brands, engage with them <ul><li>“ If marketers think that differentiating </li></ul><ul><li>their products and services and </li></ul><ul><li>engaging consumers is hard now, </li></ul><ul><li>just wait until they try doing it when their </li></ul><ul><li>brands devolve into category placeholders, </li></ul><ul><li>a product or service that everyone knows, </li></ul><ul><li>but doesn’t know for anything in particular. </li></ul><ul><li>That’s when no discount will be deep enough, which is a hard lesson that many retailers </li></ul><ul><li>have already learned.” </li></ul><ul><li>Passikoff </li></ul>*Brand Keys Customer Loyalty Engagement
  9. 12. STEP 1: Setting up a new cow Proposition Brand image Channel logistics New  idea Inventory management
  10. 13. New Proposition Various, diversified products to non segmented customer Focus on an specific range of cameras and equipment for a particular segmented target. Jessops has a established position in the UK market Exclusive offer only from Jessops Technical advice reputation
  11. 14. “ Your first professional camera”  
  12. 15. Target: Young professionals 21- 35 years old, who are looking for a camera better than their mobile phone. Online : Campaign Offline: -Newspapers -Tube (touristy stations)
  13. 16. Changing logistics Centralise to flagship store in London to optimize volume traffic in both online/offiline shop Online customer In-Store customer
  14. 17. Marketing Jessop's image will transform from a simple retailer to the bridge between customer and brands. Making the customers to visit the flagship store to touch and feel the product (experience).
  15. 18. <ul><li>1. By reducing number of the stores and centralizing inventory to the warehouse. </li></ul><ul><li>2. The storage cost per product at the store is higher </li></ul><ul><li>than the storage cost per product at the warehouse. </li></ul><ul><li>Traffic trend change from off-store purchase </li></ul><ul><li>to online store purchase. </li></ul><ul><li>Different customer engaging functions. </li></ul>Inventory management
  16. 19. Other channels Trade - in platform channel 1. A seller bring in the item to sell to the store. 2. Receive cash credit to purchase from Jessops products. Jessop’s role: Product Assessment Provide warranty - 2nd hand buyer (2 years).
  17. 20. STEP 2: Paint the cow pink
  18. 21. <ul><li>Jessops will be a mediator between manufacturers & consumers. </li></ul>Strategic alliances Starter kits Exclusive deals -
  19. 22. <ul><li>  - Brand Islands: experiencing with brands </li></ul><ul><li>  - Weekly price updates  </li></ul><ul><li>- Personalized online shopping experience </li></ul><ul><li>- Customer specific offers   </li></ul>Jessops Lab
  20. 23. STEP 3: Milk the cow
  21. 24. Beginner Professional Start. By taking a picture with a camera (mobile/digital) and upload it. Progress . 1. Purchases at Jessops 2. Measure photographic activity online: pictures uploaded on social networks, comments. 3. Get points 4. Progress: Jessops unlock content. Offers additional equipments 5. Developing skills in photography. Professional Photographer path’s life
  22. 25.   <ul><li>New generations </li></ul><ul><li>e.g.World of Warcraft. </li></ul><ul><li>Return to basic </li></ul><ul><li>Data converted in points collected for </li></ul><ul><li>purchases, uploads to social networks. </li></ul><ul><li>Multichannel access: web, mobile app. </li></ul><ul><li>GPS, world map, FB places,Foursquare. </li></ul>Knowledge Gaming Stock <ul><li>Points </li></ul><ul><li>Personalized space </li></ul><ul><li>In the website. </li></ul><ul><li>-Progress in the game. </li></ul><ul><li>Buying products, visiting exhibitions, </li></ul><ul><li>-Unlock content. </li></ul><ul><li>Free instructions, </li></ul><ul><li>workshops, events, seminars. </li></ul>Cross Selling -Offering accessories, new filters at each level. -Star products. Deal with brand-islands. -Kits to get next level game. Discounts.
  23. 26. Sales relates Awareness Measurement KPI’s Actions Business Performance Average order value Sales per channel (value & volume) Profitability (% of operational sales) Days of Inventory No. of out of stocks Order Conversion rate per online campaign Traffic from offline to online Jessops market share UK DECREASING Find out problems and review segmentation strategy accordingly . Segmentation Performance DSLR share of sales (value & volume) Jessops DSLR market share UK Target Demographic (% of total customers) ON TRACK Continue with plans and use KPI’s to spot business oportunities Customer Engagement K factor (viral factor) Monthly and daily active users for the website and game New to returning users ratio Average monthly revenue per customer ABOVE EXPECTATIONS Consider extra investment to accelerate expansion and capture quick win opportunities.
  24. 27. Conclusions <ul><ul><li>A tangible value proposition </li></ul></ul><ul><ul><li>Market segment, brand image, reduce inventory, improve channels and logistics. </li></ul></ul><ul><ul><li>Engage with brands </li></ul></ul><ul><ul><li>Strategic alliance, deals, Jessop’s lab, personalized online shopping. </li></ul></ul><ul><ul><li>Nurture the customers </li></ul></ul><ul><ul><li>Gamification, lifecycle nurturing steps </li></ul></ul>
  25. 28. Thank you!
  26. 29. Satomi Hisamoto Beatriz Briones Martha Tolosa Olli Lainto Eduardo Hauck