1. Question #12 How many Internet users are purchasing online? 55% (77% browsed/shopped) Vs. 51% and (75%) last year

2. Question #13 What is the main advantage of being a pure-play e-tailer? Focused and nimble What is the main advantage of being a multichannel e-tailer? Brand name Synergies

3. What has Amazon done right? Amazon simplifies shopping Equity built with consumers is saving Amazon with investors Selection, competitive prices Ease of navigating site/convenience Delivery speed and options Partnerships

4. Multi-Channel Integration Watch video tape What are the 3 formats discussed? What are the 3 models of multi-channel integration? 2 emerging models? What are the 2 ways multi-channel retailers are structured? List of group members – IC #6

5. Achieving Integration Creating consumer value Leveraging the multi-channel business model Developing new revenue streams Channel synchronization

6. Consumer Value Proposition Risk Reduction StoresCatalogInternet GratificationObjectivity/ credibility Information TrialPrice Pers. Service

7. Consumer Value Proposition Shopping Ease StoresCatalogInternet Payment options PortabilityAccessibility ImpulseLongevitySelection Intentional Browsing AccessibilityConvenience

8. Consumer Value Proposition Shopping Experience StoresCatalogInternet EntertainmentIdeasPersonalization Social Interaction UniquenessImmediacy Community

9. Leveraging the Multi-Channel Business Model Leverage existing assets Overcome channel-specific limitations Gain insight into cross-channel shopping behavior

10. Leveraging Existing Assets Brand name recognition

11. Leveraging Existing Assets Brand name recognition Advertising Customers Physical assets Supply chain capabilities Service capabilities

12. Overcoming Channel Specific Limitations Stores Space constraints Inconsistent execution

13. Overcoming Channel Specific Limitations Catalogs High cost

14. Overcoming Channel Specific Limitations Catalogs High cost Static

15. Overcoming Channel Specific Limitations Internet Lack of visibility Amazon, wine.com, cooking.com, Mycashmere, Gold Violin launched catalogs

16. Overcoming Channel Specific Limitations Internet Lack of credibility

17. Gaining Consumer Insight Capture true demand

18. Gaining Consumer Insight Capture true demand Cross-channel visibility Customer feedback

19. Building the Brand

21. New Revenue Streams Intensification Current market/existing customers Avon, Tupperware, Walgreens Extension Current market/new customers Eddie Bauer, Sharper Image, Lands’ End – online are new Victoria’sSecret – men on line

22. New Revenue Streams Extension Current market/new customers Eddie Bauer, Sharper Image, Lands’ End

23. New Revenue Streams Expansion Current market/new geographic markets REI-Japan Diversification New products, services, solutions Eddie Bauer – Children’s Gap - Maternity

24. Channel Synchronization Extension of a common brand Most valuable asset Associated with lifestyle and customer rather than retail format, channel, geography, etc.

25. Channel Synchronization Merchandise consistency Limited or focused discrepancy across channels

26. Channel Synchronization Pricing Use of flexibility

27. Channel Synchronization Pricing Use of flexibility

28. Channel Synchronization Cross Promotion In-store catalog desk/web kiosk Pick up catalog in store Order catalog on line Retail store locators online/catalogs Advertising circular available online In-store signage promoting web site and catalog

29. Channel Synchronization Fulfillment In-store pickup of online goods Inhouse vs outsourcing East of returns Customer Relationship Management Leverage at all customer touch points Data management technology