multichannelretailing

8/7/2019 multichannelretailing

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BYAJAY KUMAR GOPE 3510910029

ABHISHEK KUMAR 3510910017

MULTI-CHANNEL RETAILING

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The World of Retailing

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Introduction to Retailing

Types of Retailers

Multi-Channel Retailing

Customer Buying Behavior


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Why are Retailers Using Multiple Channelsto Interact with Customers?

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y Customer wants to interact in different ways

y Each channel offers a unique set of benefits forCustomers


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Why are Retailers Using Multiple Channelsto Interact with Customers?

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customer

Consumers buy what they want,

When they want,

Wherever they want

store kiosk catalog Call center Web/E-mail mobile


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Dollars spent at different channels:Average annual dollars spent by JCPennys customers

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Benefits Provided byDifferent Channels3-6


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Unique Benefits Provided by Store Channel3-7

y Browsing

y Touching and feeling

y Personal service

y Cash and credit payment

y Entertainment and social interaction

y Immediate gratification

y

Risk Reduction


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Benefits Provided by Catalog Channel3-8

Convenience

Information

Safety

Hoby Finn/Getty Images


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What People Buy Over the Internet

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Travel

PC/Electronics/Toys

Books/Software

Apparel

Home & Garden

Jewelry & Watches


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y Look and See attributes vs. Touch and Feel attributes (?)

y Degree to which information can be used to predictsatisfaction prior to purchase

Gifts Services

y Might not need to Touch and Feel

Touch and Feel not useful - Gifts

Superior presentation ofTouch and Feel Branding

What Merchandise Will Be Sold Successfully

Through Electronic Channel?


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How to Sell Over the Internetand eliminate returns

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Branding:

National brands provide a consistent experience for

customers to overcome not being able to touch andfeel.

The McGraw-Hill Companies, Inc./Jill Braaten, photographer

How Can the Electronic Channel

Overcome Limitations?


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How Can the Electronic Channel OvercomeLimitations?

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Use technologyto convert touch and feel information intolook and see information

y 3-D Imagingy Zoom Technologyy Live Chaty 360 Degree Viewingy

Virtual Models

conversion rates: % of consumers who buy the product afterviewing it

Technology increases

conversion rates


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How Can the Electronic Channel OvercomeLimitations?

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GIFTS

y

Saves timey Saves effort in packing

y Saves effort in delivery

SERVICES

y

No Shipping Problemsy Examples

Travel websites

Banking

Newspapers

The Electronic Channel Provides Superior Benefits for


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Evolution Toward Multichannel Retailing3-14

y Traditional store-based and catalog retailers are placingmore emphasis on their electronic channels and evolvinginto multichannel retailers.

E-channel gives a way to overcome limitations of existingformat

With electronic channel, retailers can reach out to newmarkets

Builds share of wallet

E-channel enables retailers to give insights intocustomers shopping behaviors


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Capabilities for Multi-Channel Retailing3-15

To effectively operate and realize the benefits of multi-

channel retailing, firms need to have skills in:

y Developing assortments and managing inventory

y Managing employees in distant locations

y Distribute merchandise efficiently fromDCs to stores

y Present merchandise in catalogs

y Present merchandise on websites

y

Process orders electronicallyy Efficient distribution of individual orders to homes

y Operate information systems for all channels


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Resources Needed to Compete Effectivelyin Internet Retailing

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y Exciting and easy to use the website

y Management Information Systems Order processing and status

Customer database Personalization software

But these resources were not enough!


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Resources Needed to Compete Effectivelyin Internet Retailing

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y Retailing Skills

Managing inventory

Editing assortmenty Efficient Fulfillment Systems

Significant costs - last mile

Picking and packing individual orders

Handling returns - reverse distribution


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Catalog Retailers canAdd Electronic Channel Easily

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y Ready to take orders

y Able to pack merchandise

y Able to deliver

y Able to handle returnedmerchandise

y Already have a database

y Visual merchandise for catalog

is the same for electronic

Steve Cole/Getty Images


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Why are store-based retailers evolving into multi-channel retailers?

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y Sales through an electronic channelare growing at over 20% per year

y Adding an electronic channel createsimmediate possession utilityy Multi-channel retailers can attract

more customers and satisfy existingcustomers better

y

The growth of sales in stores isdeclining


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Channels Offer Complementary Benefits

Stores Internet Catalog

Known Entity

Entertaining/ Social

Experience

Easy Checkout and

Returns

Personal Assistance

Product Trial-

Complementary

Merch

andiseImmediate Gratification

Location Convenience

Speed

GreaterSelection

Personalized

Presentation

Community

Portability

High Quality Visual

Presentation

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Illustration of Multi-Channel Integration

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Source: Progressive Grocer, 01 Feb 00; Grocery Headquarters, 01 Feb 00.

Consumer does not finddesired item in the store.

Consumer goes tokiosk to search forproduct

Kiosk links tochains web-siteallowing

consumers to findand purchase item

Consumer placesorder online forhome delivery orstore pick-up at a

later time

multichannelretailing

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