1. Multichannel Retailing Lynda Gamans Poloian

2. Copyright ©2009 Fairchild Books All rights reserved. No part of this presentation covered by the copyright hereon may be reproduced or used in any form or by any means– graphic, electronic, or mechanical, including photocopying, recording, taping, or information storage and retrieval systems–without written permission of the publisher. ISBN: 978-1-56367-6332-1 GST R 133004424

3. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 3 Chapter 5 Implementing Multichannel Strategies

4. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 4 Impact Areas for Strategic Decision Making Enabling Technologies: –Keeping up with emerging technologies is crucial across all channels –In-store innovations Streaming video Touch-screen manikins Unusual projection surfaces Pedestrian counting tools

5. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 5 Enabling Technologies Catalog-Oriented –Dependent on customer databases –Data mining used for marketing initiatives Internet-Centered Web 2.0 Tools –Heightened user interaction –Rich media and advanced graphics –3-D capabilities

6. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 6 Retail Expansion New Concept Development: –Brick-and-mortar spin-offs to reach different markets –Catalog spin-offs—For example, gun and fishing specialty catalogs –Expansion through acquisition of compatible company

7. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 7 Retail Expansion Global Expansion –Retailers weigh risks of global expansion in several areas Cultural differences Online payment preferences International shipping issues

8. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 8 Retail Expansion Branding and Product Development –Branding—integrative process; pinnacle of image development –Brand image is the customer’s perception of a brand –Product development merges buying function with product design, sourcing and technology

9. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 9 Branding and Product Development Brand Positioning—Talbot’s brand revitalization Customizing Retail Locations—Home Depot’s personalized signage Private Labeling—Walgreen’s apparel lines Product Development—Amazon’s new product categories

10. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 10 Marketing and Communications Reaching customers through traditional and new media is challenging Traditional media include newspapers, magazines, television, radio and billboards New media includes: –E-mail contact –Blogging, vlogging, podcasting –Digital shopping malls

11. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 11 Key Points: Designing Effective E-mails Segment customer base Opt-in programs work best Catch customer’s interest in subject line Keep message short Choose design elements, type, and words carefully Respect privacy; always say “thank you”

12. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 12 Distribution and Fulfillment Satisfy customers through efficient, timely distribution systems Keep inventories low while avoiding out-of- stock situations Synchronize technology systems across all channels Prioritize flexibility, speed, and low cost

13. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 13 Overcoming Channel-Specific Limitations Brick and Mortar Strategies: –Supplement limited store space by utilizing in- store kiosks –Cope with market saturation by: Adding new channels Fine-tuning Web sites Expanding globally

14. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 14 Overcoming Channel-Specific Limitations Catalog Strategies: –Shift emphasis to online stores to avert impact of rising postal and printing costs –Include coupons for use online –Shift emphasis to brick-and-mortar stores to leverage ability to adjust prices –Seek fashion-conscious customers through designer partnerships –Simulate visual and tactile experiences

15. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 15 Overcoming Channel-Specific Limitations Online Strategies: –Optimize customer engagement through search –Difference between natural and paid search Natural search uses built-in capabilities of search engine for general information Paid search involves advertisements that appear in sponsored boxes when you key in a topic Both based on keywords

16. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 16 Optimizing Search

17. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 17 Online Strategies: Enhancing Apparel Sales and Services Overcome fit problems by using personal virtual models Collaborate on apparel product development using online color-matching tools Use online trunk shows to introduce new designer fashions.

18. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 18 Online Strategies: Improving Customer Conversion Rates Increase click-through rates Encourage repeat purchases Personalize contact Offer meaningful incentives

19. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 19 Alternative Multichannel Strategies Online franchising—open online business through franchise model Online resellers—use eBay model to resell merchandise on the Web Brand resurrection—Re- establish old brands online

20. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 20 Evaluating Multichannel Best Practices Calculate costs of implementation and ROI Acknowledge merging of communication and sales channels Provide personal contact and content Evaluate new technologies with customer in mind Use search engine marketing (SEM)

21. L. Poloian Chapter 5 ©2009 Fairchild Books, A Division of Condé Nast Publications. 21 Summary Successful implementation of multichannel strategies is dependent upon carefully selected expansion, branding, fulfillment, communications, and technology initiatives