E-Books Rewrite Bookselling 1.Evolution of Bookselling Format 1.Local, independent stores 2.Chain stores in shopping malls 3.Superstores (B&N; Borders; Books a Million) 4.Online stores (Amazon) 5.E-Book 2.Who does E-book help or hurt? 1.Publishers 2.Retailers (offline; online) 3.E-book retailers (iBooks of Apple; Kindle eBooks)

E-Books Rewrite Bookselling 3. Math for book retailing Lower price of E-book Physical book based: 50 – 50 split E-book based: split 4. A Key Takeaway: How to Respond to Innovation? 5.Suggestion for B&N Retail company versus technology company From selling to consumption From individual consumption to group consumption “Cultural Department Store”

Big Brewers Are Sidling into Retail 1.Issue: Legal restrictions 2.Brewers’ Responses: 1.Brew-pubs 2.Licensing 3.Benefits: Marketing, shelf space 4.Potential Danger of the strategy

Webvan: What went wrong? 1.$8.7B market valuation (Nov 1999) 2.Model: Pick-Pack-Deliver (Groceries) 3.First angle: Consumer Behavior  Benefits (Unique Values) Provided by Webvan  Costs for Using Webvan service  Are you willing to pay the cost for that benefit? 4.Second angle: Competition  Supermarkets: Business Model; Purchasing power, EOS, market coverage  Webvan: Business Model; Low, small, and sporadic

Webvan: What went wrong? 4. Third Angle: Marketing Channels 1. Functions and Costs (FT article) 2. Service Output Issues 5. Major Lessons (Roger Blackwell) 6. Back from the Dead (WSJ article): What are the changes? Lingering problems?

Wine Distribution (Circa Sep 2008) 1.State Response to Supreme Court Ruling in More States To Permit Direct Shipping 2.Made it hard to order 3.Discrimination against Big, Out-of-State Wineries (from West Coast) 2.New Players: Amazon.com; WSJ; NYT 1.Efforts to Knock Down Shipping Restrictions -Mixed Success -Indiana case: State cannot bar shipments by out-of-state wineries to retailers. 4. Learning points: Antitrust and Consumer Welfare; (Slow) Channel Evolution

Coke Distribution (circa 2006) 1.Historical Background - Current system - Why current system? - Problems of the current system 2. What is the key issue? 3. Your suggestion

Realtors and Online (May 2008) 1.Background Information - Current system for buying and selling houses - Why current system? - Problems of the current system 2. Emergence of Internet Brokers and Response by Traditional Realtors 3. Lawsuit in 2005 and a Settlement 4. Winners and Losers of the Settlement 5. Implications for Marketing Channels

How H-P Reclaimed Its PC Lead Over Dell I.Hiring Todd Bradley from PalmOne II.“HP is fighting on the wrong battlefield”  Shift of Channel Focus (ex: Store-exclusive notebook) III. Migration of PC demand: Desktops  Laptops (different buying/using behavior) IV. H-P needed to convince shoppers that retailer was the better channel choice  Shift of H-P PC Positioning: Product Focus  User Focus (“The Computer is Personal Again”) V. Promotion Shift: More Pull  More Push*

12 Promotional Strategies** Promotional Strategies** Pull Strategy Manufacturer Channel members Final users (consumer or industrial) Final users (consumer or industrial) Channel members Manufacturer Push Strategy 1* 2 3 *Numbers indicate sequence of flows Promotion flow Negotiation flow Product flow 1 2 3

Dell’s Strategy for Growth* 1.Current Market Portfolio * Business Model 2. Advantages of Dell Model 1.Cost efficiency of direct model 2.Customization & Responsiveness 3.Focus on detail 3. Three-Step Growth Strategy* 4. New Frontier for Dell: Consumer Electronics

Dell’s Strategy for Growth 5. Three Main Challenges for CE Market 1.No Customization and Less Responsiveness 2.Will People Buy CE Direct? 3.Dell’s Brand Equity for CE Product Mike George’s two comments 6. Playing the OEM game (back page) - Who are customers? - Upside & Downside - Response from resellers and small manufacturers

Nicole Miller Fashion House 1.Mission of Nicole Miller 2.Positioning of the Nicole Miller 3.Target market of Nicole Miller 4.Marketing Mix 5. Product: 6. Price: Expectation 7. Place: Combo 8. Promotion: Combo