Lacoste - Case Study Report

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Omni-channel Marketing Report
Bianka Apostolova (S2710714)
Maria Djigovska (S2695146)
Mariam Talakhadze (S2818353)
Weixiang Wang (S2509652)
University of Groningen, Retail Marketing, Tutorial Group 3B4
Lacoste: The
Crocodile
Sells Online!
24/09/14

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Table of Content
n  Introduction
n  Target Audience Overview
n  Competitors
n  Analysis of Competitor Websites
n  Old vs. New Retail Business Models
n  Customer Journey
n  Online Marketing Tactics
n  Multi Channel & Supply Chain
n  Communication for Long Tail
n  Measuring
n  Sources
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24/09/14
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Introduction
n  Problem #1: Lacoste has just launched a new online shop in Europe and top managers
need an online marketing strategy that will promote the website within its target
audiences; in the long run, it is also necessary to establish a multi-channel approach to
optimize synergies online and offline;
n  Problem #2: Lacoste does not have a reputation of a modern and young brand, the
brand is considered as a “men only”. The brand is associated with sports, golf and tennis
in particular. Only loyal fans and sportsmen (in tennis and golf) affiliate Lacoste as a
sports brand;
n  This report will start analyzing external factors (e.g. customers, competitors),
followed by an innovative online marketing strategy, along with detailed
explanations.
n  This report also proposes an omni-channel strategy integrated between physical
stores and online shop in order to stimulate significant dual sales and strengthen
brand values in customers’ perceptions.
24/09/14University of Groningen, Retail Marketing, Tutorial Group 3B4
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Target Audience Overview
n  Lacoste’s Primary target audience would be
young adults (F/M) at the age of 25-34. A lot of
their casual wear is designed with this age range
and style in mind.
n  On the other hand, it also aims for the people
that are higher up the socio-economic who have
social status and more money to spend.
n  Secondary target audience for Lacoste would be
tennis and golf players and generally, people who
are interested in sports;
n  Lacoste have recently released their Live! brand,
which is aimed at a slightly younger audience of
18-24 years.
n  Market positioning: Luxury, sportive.
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5%
15%
25%
20%
20%
15%
Target Customers
18-24
25-34
35-44
45-54
55-65
65+

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Competitors
Founded 1933;
Rich history;
Revolution in men’s
fashion: the classic
Lacoste polo shirt;
”lifestyle brand
combining elegance
and comfort”;
Crocodile -
trademark,
incarnates the
elegance of the
champion Rene
Lacoste.
Channels:
boutiques, retail
corners, online shop.
Founded 1967;
one of the innovators
of lifestyle
advertising that
narrates stories;
Focuses on luxury
classic American
style clothing,
balance between
“timeless and
modern” feeling
Slightly higher
prices;
Channels:
boutiques, retail
corners, successful
e-shop.
Founded Late
1940s;
“more rebellious
luxury brand”, British
style
Price range:
between Lacoste
and Ralph Lauren;
Channels:
boutiques, retail
corners, successful
online shop.
Founded 1985;
Relatively young
brand compared to
the others;
“blending the country
casual look with a
streetwise urban
edge”
”Classic American
cool style, featuring
preppy with a twist
designs”
Perceived as a
modern brand;
Similar distribution
channel network.
Founded 1924;
Premium and luxury
segment of the
global apparel
market;
Combination of
modern and
sophisticated casual
look, edgy, urban
attitude, urban
casualwear and
dynamic look;
channel network.
Founded 1856;
“Iconic British luxury
brand”
channels and
campaigns featuring
celebrities;
Advantage: “creating
customer delight
through innovation in
technology and
providing best-in-
class customer
experience, both
online and in its
boutique stores”
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DATA TAKEN FROM:
lacoste.com/library/contents/press/pdf/LACOSTE_presskit_en.pdf
group.hugoboss.com/en/corporate_profile.htm
global.tommy.com/int/en/about/overview/14
adbrands.net/us/tommyhilfiger_us.htm
group.hugoboss.com/en/brand_profiles.htm
businesstoday.intoday.in/story/innovation-burberry/1/20187.html
sites.google.com/site/lacosteproject/strategic-analysis
burberry.com
LOGOS TAKEN FROM:
lacoste.com, raulphlauren.com, fredperry.com, tommy.com,
hugoboss.com, burberry.com

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Analysis of Competitor Websites
0
10
20
30
40
Bounce Rate (%)
Lacoste.com
RalphLauren.com
fredperry.com
usa.Tommy.com
HugoBoss.com
Burberry.com
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Alexa Rank* PV/Visitor** Time***
Lacoste.com 14611 4.59 3:39
RalphLauren.com 4542 8.20 5:35
Usa.Tommy.com 9541 6.20 4:14
HugoBoss.com 11372 4.72 3:58
Burberry.com 10350 5.17 3:48
FredPerry.com 64796 5.30 3:53
n  The most popular website is Ralph Lauren;
n  Lacoste’s website performance is the poorest after
Fred Perry;
n  Lacoste (29.80%) - highest bounce rate means the
worst performance;
n  Daily pageviews/visitor: Ralph Lauren – highest
rank (8.2), Lacoste – lowest (4.59);
n  Daily time on site: Ralph Lauren - highest score
(5:35), Lacoste – lowest (3.39);
The data is takes from the database of Alexa.com on 24/09/2014.
*Alexa Traffic Rank is calculated daily using a combination of average daily
visitors to this site and pageviews on this site over the past 3 months. The site
with the highest combination of visitors and pageviews is ranked #1.
** Estimated daily unique PageViews per Visitor on the site.
*** Estimated daily time on site (mm:ss) per visitor to the site.
Bounce Rate is a percentage of visits to the site that consist of a single pageview.

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Old vs. New Retail Business Models
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Traditional RBM Innovative RBM
Retailing format
(structures for
retail activities)
•  Physical store as customer interface
with limited assortment
•  Selective location and standard design
•  Sales/revenue depend on customer
visit frequency/coverage
•  Normal pricing strategy
•  Multichannel such as “click and mortar”
•  Adequate assortment, easy to search by engines
•  Location information available online
•  Virtual and convenient customer interface
•  Complement effects of omni-channel on sales
•  More information and price comparison on e-shop
•  Easier to compute mass customer data
Retailing activities
(acquiring,
stocking,
displaying,
exchange product &
services)
•  TV, newspaper, magazine
advertisement
•  Sales representative
•  Model/window display in stores
•  Huge stock stream between stores
•  Simple desk services
•  Social media and digital acquisition by e-advertisement, link share and word-of-
mouth
•  Spacious stocking/product line and depth
•  Diverse Home Page show/website mobile advertisement
•  Online stock check and home delivery or pickup service
•  Facilitate the purchase by mobile apps
•  More efficient ways to engage online customers by website forum and self-design
Retailing
governance
(motivate to
repurchase)
•  Price promotion
•  Membership card
•  Recommendation system
•  Limited awareness of long tail products
•  Fast self-checkout
•  Co-design with buyers through style chooser for example
•  Superior and extra services fulfill higher level of satisfaction
•  Explore their unmet needs by continuously reinforce the relationship with
customer. (e.g. social media, E-mail marketing, blog, content marketing etc.)
Sources:
1. Sorescu, A., R.T. Frambach, J. Singh, A. Rangaswamy and C. Bridges (2011), "Innovations in Retail Business Models", Journal of Retailing, 87 Supplement 1, July, S3-S16
2. New Retail Business Model (Sorescu A. et al 2011)

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Customer Journey (Service Blueprint3)
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24/09/14
Identifies
the Need
Online
Search
Calls
Friend
Browses
the
website
Makes a
Decision
Goes to
the store Tries on
Chooses
another
thing
Makes
the
purchase
Goes
Home
Ads and
Review
Online
Blogger
Relations
Website
Features
Delivery
Options
Social
Media
Trying
Room
Touch
screen
Displays
Mobile
App
Glossy
Magazine
Greeting Consult Suggest Payment
Physical
Evidences
Customer
Actions
Frontstage
Backstage
Support
Processese
Full version of the Service Blueprint is accessible at the following link: http://bit.ly/1r6GrWw
Order
Processed
Tablet
Software

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Online Marketing Tactics
n  Website Features
n  Website Promotion in Offline space
n  Blog
n  Email Newsletter
n  Social Networking Platforms
n  Niche Social Networking Platforms
n  Content Marketing
n  Social Media Posting Plan
n  Online Advertising Platforms
n  Online Word of Mouth
n  Search Engine Optimization
n  Mobile App
Following tools and tactics will be used in
order to increase traffic on the website and
engage customers with Lacoste’s brand on
daily basis.

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Website Features
n  Website will sell all products that Lacoste
produces (Big Head + Long Tail).
n  It will make suggestions and
recommendations of Long Tale while
consumer is browsing the website.
n  Store traffic will be minimally affected as
the website will be primarily targeted to
new younger audiences who already
have habits of online shopping;
n  It does not mean that old customers
cannot buy from the website, but it is
less likely that they will change their
buying habits.
n  Overall sales will increase with the help
of online store;
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Website
features
Broader
selection than
physical store
Richer
product /
brand
information
(photos/
videos)
Customer
reviews, tips
and
comments
Share buttons
for Facebook,
Twitter,
Pinterest, etc
Home
delivery and
Pickup
Services
Comparison
of Products
Style Chooser
Stock Check
Membership
and gift
giving
services
Information
about the
company

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Website Promotion in Offline space
n  Website will be promoted online and offline (through stores):
n  Brand Cards with QR codes (that contain link to website) could be handed to the
customers upon purchases;
n  Website address should be printed on shopping bags, posters, desks, labels, etc.;
n  Monitors should promote website by video and photo content;
n  A touch screen monitors can be installed with an opportunity to order from the
website directly from the store (i.e. if the are out of stock or color or size)
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Blog
n  participation in discussions on Lacoste
brand
n  direct contact with the consumers
n  contact with opinion leaders fans of
Lacoste
n  gain better understanding of how
customers feel about the brand -
impressions, associations
n  Better understand the customer needs
n  History behind the brand, evolution
n  News about fashion industry, fashion trends
n  News about Lacoste, achievements of the company
n  Recent and future events that the company organizes or
participates in
n  Newest collection, fashion shows
n  News about outlet stores
n  Articles about fashion, fashion shows
n  Discussion on how the brand is perceived by the customers
n  What they like/do not like about the products, stores, online
shop?
n  Discussion on favorite products
n  Ideas, recommendations by customers
n  how products are being produced, what materials are being
used - explained in an interesting way (with pictures, a cartoon
for example)
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Why is this important? Topics for the Blog
24/09/14
A corporate blog must be created on Lacoste’s website which will provide interesting content
and prolong the time users spend on the website.

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Email Newsletter
n  regular contact with the customer
n  develop a distinct impression in
customer’s mind
n  By communicating the brand values,
traditions, innovations
n  History of the brand and company, evolution
n  News about the company, recent achievements, events
n  News about fashion industry, fashion trends
n  Newest collection - photos, why is it new - materials,
manufacturing innovation, etc.
n  Product line of the week - pages with a focus on different
product category - sports wear, casual clothing for men,
women, children, accessories, etc.
n  Lacoste’s quote of the week - associated with Lacoste
brand and its values
n  Announcement of Lacoste events - connected to Lacoste’s
corporate social responsibility
n  Brief customer online survey about the brand, products,
store, etc. And the results - published in the next
newsletter
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Newsletter Creation Newsletter – topics:
The newsletter - providing direct access to the
website, online store and blog
24/09/14

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Social Networking Platforms
n  Facebook Page – It is going to be the largest traffic generator to the website
and/or other social media platforms. Pictures of Lacoste products and Videos of
new marketing campaigns will be posted daily. Fun infographics and statistics
will be reposted from Tumblr.
n  Google Plus – This channel is important for Google Search and Search Engine
Optimization. Facebook efforts will be duplicated to this channel.
n  Twitter – 271m people use Twitter every month around the world. 78% of
them are on mobile and 77% are outside the U.S. It is an appealing global
communication channel for Lacoste, especially for connecting with young
audiences.
n  Youtube – Lacoste’s advertisements and video materials will be hosted on this
channel and distributed through other social networks.
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Content Marketing is the most recent emerging marketing tactic. Lacoste is going to create
interesting content (photo/video/graphic) and distribute throughout all its digital channels.
24/09/14
SOURCE: twitter.com

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Niche Social Networking Platforms
n  Instagram – Daily photo updates from Lacoste Stores, Offices and
Runways will be posted to young mobile users.
n  Pinterest – Photos of Lacoste’s fashion products, collages and
fashion tips will be Pinned to Lacoste Pinterest boards. Pinterest
works as an effective traffic generator to fashion blogs and apparel
web shops.
n  Tumblr – Cool product photos, memes, infographics and ad
campaign graphics will be posted daily. Hashtags will be used
excessively.
n  Polyvore – Fashion bloggers and stylists use Polyvore as a tool for
making fashion collages. Lacoste is going to add its fashion items to
the Polyvore’s product catalogue.
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Niche social networks are very popular among young internet and smartphone users.
24/09/14
SOURCE:polyvore.com

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Content Marketing
n  To gain more visitors, it is preferable to make memorable, fun content and
share through different online channels.
n  Examples:
n  Infographics will consist of information about the brand, the new collections, the
history and interesting facts. They may result in more shares, likes and
comments on Facebook, Twitter, Pinterest and the other Social networks. The
purpose is to show to people information about the brand in an interesting and
capturing way;
n  Weekly Meme – “Man in a Polo” – fun stories of a man with a supernatural
powers who wears Polo as his costume.
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Topics for Content
Marketing:
n  The fun figures about sales of Lacoste polo
around the world;
n  “For every Lacoste Polo there is a…” - Strange
correlations between sold Polos and the world;
n  Fun ways to use Lacoste App – push on the
amazing features of Augmented Reality;
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Social Media Posting Plan
Content Piece
Examples
Format Platform Frequency Comment
Quotes about
Lacoste’s Brand
Text + Picture Twitter, Facebook,
Google Plus
Weekly
Quote associated
with Lacoste values,
traditions, history
Text on the Picture Instagram, Newsletter
Product of the week Text + photo Twitter, Facebook,
Google Plus, Instagram
Weekly
-
Text (more detailed information) +
gallery
Newsletter More detailed information
Announcement of
Lacoste events
Text, photo, advertising Twitter, Facebook,
Google Plus, Instagram Once/twice per
month
depending on
event frequency
Main information about the event
Text, photo, advertisements,
interviews
Newsletter More detailed information about
the event, organisers, participants,
partners
Newest collection Text, photos, advertisements,
comments concerning the new
collection by famous people
Twitter, Facebook,
Google Plus, Instagram
Whenever there
is new
collection
Main information about the newest
collection
Test, photos, comments concerning
the new collection by famous
people, interviews
Newsletter more photos, information,
interviews
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24/09/14

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Online Advertising Platforms
n  Facebook Ads – will be used for promoting Lacoste’s Facebook Page and
its important updates (Boost Post).
n  Google Adwords – Can be used to promote Lacoste’s new e-commerce
website for specific keywords, i.e. ‘Polo shirt’.
n  Adroll Retargeting– Retargeting will keep track of people who visit
Lacoste’s site once and displaying its retargeting ads to them as they visit
other sites online, i.e. blogs and fashion websites.
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24/09/14

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Online ‘Word of Mouth’
n  A few of the famous bloggers, video bloggers and online celebrities from
the field of fashion and style should be invited to Lacoste’s special
gatherings, store openings, presentations and runways.
n  Lacoste should assign a PR representative, serving as a direct Contact
Person for selected ‘bloglebrities’, so they get response to all of their
questions and feel special and cared.
n  Lacoste can give out goodie bags and small gifts to these people to create
excitement around the brand.
n  In no circumstances should Online Magazines, Youtube video series and
other types of publications about fashion and style be forgotten while
selecting the key people from the field.
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Lacoste needs to reach new target audiences through internet opinion leaders and fashion
bloggers, so they start mentioning Lacoste in their updates.
24/09/14

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Search Engine Optimization
n  If you conduct a Google search for ‘Polo Shirts’,
neither Lacoste’s website, nor the brand name
mentions and social channels are found.
n  Being on the front page of search results will
add credibility and value to Lacoste’s brand.
n  In order to reach SEO objectives, Lacoste’s
website should be technically optimized for
several strategic keywords, i.e. ‘polo shirts’.
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Young target segments often conduct Google search while shopping online or before making
purchase decisions. First links in the organic search results are considered of the highest
quality and credibility.
24/09/14

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Example keyword: “the Best Polo Shirt”
n  The article from Telegraph called
10 of the Best Polo Shirts for Men
does not include Lacoste’s Polo;
n  The article from Esquire called
Six Of The Best Polo Shirts (because
you're about to start wearing them a
lot) does not include Lacoste’s Polo;
n  The article from Esquire called
15 Polo Shirts Under $100 includes
Lacoste’s classic Polo (Is this a good
message?!);
n  The article from the Richest called
The Top 10 Most Sold High End Polo
Shirt Brands puts Lacoste’s Polo on
the first place;
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Bad News Good news
Problems and highlights have been identified by search result analysis of the first page for this
particular keyword.
n  Lacoste can optimize not only its own website, but place ads and articles on all the
other websites which already appear on the first page in the top search results .
24/09/14
Search Results: http://bit.ly/1ukwfLh

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Mobile App
n  The app will have for main features:
n  Shopping Cart – browse Lacoste product gallery, add to cart and checkout.
n  Shop locator / opening hours
n  About the company / blog updates
n  “Lacoste Reader” – special barcode scanner for scanning product labels
n  Lacoste introduces a new kind of labeling for its products and presents augmented
reality in its stores!
n  Every piece of clothing and accessory will have a special label for mobile scanning. Customer can
scan the piece and use mobile style chooser to find other complementary products or
personalized recommendations.
n  Every stand, poster or marketing material could be scanned and they contain coded information
to release in the augmented reality, such as videos, shop tours, product care information, etc.
n  Example: www.layar.com technology;
n  Customers can share the links to the products by scanning the label and sharing to social
networks.
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24/09/14

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Multi Channel & Supply Chain
n  For stimulating the visit of both online and offline
shops different promotions must be conducted;
n  Example: if you order over 250 Euros you get
free express delivery to home or nearby pickup
point (delivery within 4 hours).
n  For costumers who ordered products and are
coming to pick them up at Lacoste store there
must be parking space available and a fixed spot
for the customers, making the visit faster and
more enjoyable.
n  Lacoste’s online shop will have home delivery as
well as pickup service at the store; The latter will
encourage them to visit the stores;
n  “Store-only” events and promotions can be
conducted to support store traffic;
n  Pickup service should work 2 or three
days a week, while delivery service
should work everyday (except
weekends);
n  5 business days should be maximum
waiting time for ordered products;
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Supply Chain Management

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Communication for the Long Tail
n  There is no way that every product can
be displayed in the store as the space is
limited;
n  Innovative touch screen monitors can
be installed in the stores; Long tail
products can be displayed on these
monitors next to the Big Head products
and can be browsed and ordered right
form the spot from the website
database;
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24/09/14

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Measuring
n  Traffic goals
n  Conversion Rate
n  Repeat Customer Count
n  Profit from the online sales
n  Profit from the offline sales
n  App downloads
n  Facebook Likes, Facebook Engagement,
Ad performances,
n  Google Plus +1s, Google Adwords
performance
n  Instagram Followers, engagement
n  Twitter Followers, engagement
n  Newsletter Subscribers
n  Blog comments
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Operational and Financial figures Online Figures
24/09/14

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Sources: References:
n  lacoste.com/library/contents/press/pdf/
LACOSTE_presskit_en.pdf
n  group.hugoboss.com/en/corporate_profile.htm
n  global.tommy.com/int/en/about/overview/14
n  adbrands.net/us/tommyhilfiger_us.htm
n  group.hugoboss.com/en/brand_profiles.htm
n  businesstoday.intoday.in/story/innovation-burberry/
1/20187.html
n  sites.google.com/site/lacosteproject/strategic-analysis
n  burberry.com
n  global.lacoste.com/
n  www.ralphlauren.com
n  brandlacoste.wordpress.com/2012/01/30/competitor-
analysis
n  twitter.com
n  adroll.com
n  layar.com
1.  Sorescu, A., R.T. Frambach, J.
Singh, A. Rangaswamy and C.
Bridges (2011), “Innovations in
Retail Business Models”, Journal
of Retailing, 87 Supplement 1,
July, S3-S16
2.  Sorescu A. et al, “New Retail
Business Model” (2011);
3.  Mary Jo Bitner, Amy L. Ostrom,
Felicia N. Morgan, “Service
Blueprinting: A Practical
Technique For Service
Innovation” (2008);
27

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Bianka Apostolova (S2710714)
Maria Djigovska (S2695146)
Mariam Talakhadze (S2818353)
Weixiang Wang (S2509652)
Omni-channel Strategy
24/09/14 University of Groningen, Retail Marketing, Tutorial Group 3B4 28

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