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- 2. BUSINESS OVERVIEW 1 2 •redundancies • lack of technological skills Strategy Finance Lancaster University eXtraordinaire Marketing People • loss of shareholders’ confidence • loss of market value • lack of clear vision • poor competitor analysis • untargeted marketing • poor customer relationship 2 LHS revenue UK Department store market 2010 2011 2012 2013 2014 Growth rate +21.4% Sources: case scenario, Verdictretail.com, team’s expertise 5.9m fewer Department store shoppers than five years ago 21.4% Department store market growth in five years 931mestimated annual revenue 128 Department stores on the UK market Timeline Revenue 201420132012 rebranding
- 3. 3 TARGET AUDIENCE (CHOICE?) Sources:The Barclaycard Consumer Spending Report Q3 2014, retailweek.com, Sociology Journal Lancaster University eXtraordinary Top social classes at the UK: HOW DO THEY SHOP? WHAT DO THEY BUY? ONLINE/MOBILE INCREASING SPENDING WITH FAMILIES CONVENIENCE ELECTRONICS CLOTHING SPORTING GOODS TOYS SHOP AT: ELITE6% SHOP AT: ESTABLISHED MIDDLE CLASS25% GROWING! NO TARGETED DEPARTMENT STORE! TECHNICAL MIDDLE CLASS6%
- 4. 4 SOLUTION Lancaster University eXtraordinary Electronics Fashion Toys Sporting Goods Food Furniture Gardening Hardware Categories 21,8% 19,3% Spending GrowthRate Sources: Barclaycard Consumer Spending Report 2015 “To provide superior shopping experience by blending online and offline innovative services” • Change Management Program (Deloitte) • Customer Service Training • IT Skills Training • Employee Engagement Survey (TinyPulse) • Enterprise Social Network (IBM Connection) • ESOP (Employee Stock Option Plan) • Personal Development Program • Intensive Induction • Mentoring Program • Employee Award Engaged Employees Beacon Virtual Fitting Room Entertainment Hub Kids Zone Online Shopping Tailored Location- Based Services Mobile Apps • Personalized Shopping • Check-out 2.0 • On-demand Customer Services
- 5. 5 REVENUE FORECAST Sources: Verdictretail.com,BSA Sociology journal, team’s expertise Lancaster University eXtraordinaire x60m 6% £37k 33.7% 20% 5%x x x x = 454m UK population Technical middle class Ave. annual revenue Spending in LHS products Actual purchases from LHS Target market share x60m 25 % £47k 33.7% 20% 1%x x x x = 477m Established middle class Σ = 931m 4% 96% Online presence Offline presence
- 6. FINANCIAL & EXPANSIONPLANS 6 Lancaster University eXtraordinaire Q1-2/2016 Q3-4/2016 2017 2018-20 Café takings Shops divestment (#5) Enterprise resource planning (ERP) Customer Relationship Management (CRM) Tech refurbishment Mobile App Change management Flagship store Rebranding & Marketing 2.5 2.5 5.0 15.0 183.0 183.0 549.1 0.8 0.8 2.4 3.0 3.0 9.0 3.7 3.7 7.4 22.2 0.2 0.1 0.3 1.0 1.0 2.0 15.0 30.0 3.0 in £ 000,000 Total Miscellaneous 0.5 2.5 5.0 15.0 -9.3 175.3 157.7 485.2 Sources: Office for national statistics, team’s expertise
- 7. 1. Rebranding 2. Sellingunprofitable stores 3. Offer share options instead of cash bonus 4. Reduce untargeted marketing expenses SHAREHOLDER VALUE PROPOSITION Lancaster University eXtraordinaire Sources: Verdictretail.com, BSA Sociology journal, team’s expertise 7
- 8. 8 MARKETING STRATEGY Sources: casescenario, Digital Marketing Institute UK, team’s expertise Lancaster University eXtraordinaire REACH ACT CONVERT ENGAGE far from store near store in store far from store ONLINEOFFLINE SEO optimization Targeted advertising PR in media PR through partners Social networks E-mail marketing Store Events Local advertising Electronic commerce App Promotions Store Promotions POS materials Social networks E-mail marketing CSR activities Word of mouth
- 9. 9 COMPETITORS & PARTNERS ₊Strong supplier relationship ₊ High quality ₊ Outstanding customer services ₊ Steady profit growth ₊ Transactional website ₊ Celebrity endorsement • More choices offering loans to buy • More options for smaller city citizens collection point • Virtual online fitting room • Tailored location- based services • Virtual fitting room • Entertainment hub • Kids zone • Open cinema PARTNERSHIP • Delivery company (Doddle) • Universities (e.g. Lancaster) • Mobile operator (Vodafone) • Local taxis (Uber, etc.) • CSR (sponsor tech oriented events) • High tech companies (Google, Sony etc.) ONLINE OFFLINE 1 2 3 Lack of technology integration service Lancaster University eXtraordinaire Sources: official websites, team’s expertise
- 10. UNIVERSITIES LOCAL BUSINESSES TO PROVIDE SUPERIOR SHOPPING EXPERIENCE BY BLENDING ONLINEAND OFFLINE INNOVATIVE SERVICES EMERGING TECHNICAL MIDDLE CLASS ESTABLISHED MIDDLE CLASS ONLINE SALES OFFLINE SALES MARKETING RELATIONSHIPS 74 STORES ENGAGED STAFF TECH ADVANCEMENT PERSONOLISED CUSTOMER FOCUSED DIGITALISED REACH ACT CONVERT ENGAGE KEY PARTNERS KEY ACTIVITIES KEY RESOURCES VALUE PROPOSITION CUSTOMER RELATIONSHIPS CUSTOMER SEGMENT PROMOTION CHANNELS CASH OUTFLOW CASH INFLOW £940,100,000£131,600,000 IN A NUTSHELL (BUSINESS MODEL)
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- 12. 12 51% 55% 24% 47% 22% 36% 42% 48% 32% 45% 43% 80% 55% 56% 63% 63% 65% 75% Compare prices with otherstores Find a coupon or coupon code Purchase a product Read customer product review Check status of an order Locate a store or check store hours At home On the go In store while shopping Where have you used your smartphone to perform the following shopping- related activities in the past month? MOBILE SHOPPING (1 of 2) Sources: Forrester – The state of mobile apps for retailers / retailmenot.com 0.03 0.1 0.27 0.39 0.21 >10 6-10 3-5 1-2 0 How many retailer apps do you have on your phone? 2% 5% 14% 20% 21% 31% 40% 57% 63% Other Entartainment Opportunities Better deals Personalised content Benefits for using Settings stored Faster More convenient Why do you prefer using app to using website? Lancaster University eXtraordinaire