A Sales Channel They Can’t Resist The Secret to QVC’s Success Elizabeth Esfahani The Secret to...
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Transcript of A Sales Channel They Can’t Resist The Secret to QVC’s Success Elizabeth Esfahani The Secret to...
A Sales Channel They Can’t Resist
A Sales Channel They Can’t Resist
The Secret to QVC’s SuccessElizabeth Esfahani
The Secret to QVC’s SuccessElizabeth Esfahani
What QVC WasWhat QVC Was
“Trailer-park housewives frantically phoning for another ceramic clown”
“Vehicle for broken-own movie stars…”
“Trailer-park housewives frantically phoning for another ceramic clown”
“Vehicle for broken-own movie stars…”
In RealityIn Reality
$5.7 billion in sales during 2004Twice as profitable as Amazon.com3rd largest U.S. broadcaster in revenue1.5 million viewers for every 10,000
orders receivedBirkenstock airtime is worth $8 million in
traditional advertising
$5.7 billion in sales during 2004Twice as profitable as Amazon.com3rd largest U.S. broadcaster in revenue1.5 million viewers for every 10,000
orders receivedBirkenstock airtime is worth $8 million in
traditional advertising
Seriously?Seriously?
Honing the art of TV retailing Blend of entertainment and retailing Moving away from cherubs and bangles to:
Home décorElectronicsFashion
Use products to build relationships with customers
Honing the art of TV retailing Blend of entertainment and retailing Moving away from cherubs and bangles to:
Home décorElectronicsFashion
Use products to build relationships with customers
Live BroadcastingLive Broadcasting
Powerful connection with viewers Very Human “Backyard Fence Sell” Want rather than need Caller testimonials Best elements of reality TV
Powerful connection with viewers Very Human “Backyard Fence Sell” Want rather than need Caller testimonials Best elements of reality TV
AnalysisAnalysis
Immediate changes in response to low sales volumes Change lighting Different camera angles Caller testimonials Emphasizing saleable features
Immediate changes in response to low sales volumes Change lighting Different camera angles Caller testimonials Emphasizing saleable features
Not as Easy as you think Not as Easy as you think
20,000 inquiries in 2004 4% were accepted
Products that don’t sell may be liquidated
Underperformers may not come back
20,000 inquiries in 2004 4% were accepted
Products that don’t sell may be liquidated
Underperformers may not come back
The Road to QVCThe Road to QVC
Develop your story Will it sell?
Apply to become a vendor 3-week turnaround
Put your product through its paces Be prepared to fail
Bulk up those inventories $20,000 worth of product
Practice your pitch QVC University
Develop your story Will it sell?
Apply to become a vendor 3-week turnaround
Put your product through its paces Be prepared to fail
Bulk up those inventories $20,000 worth of product
Practice your pitch QVC University
Win / Sort of Win SituationWin / Sort of Win Situation
Name brands increasing QVC’s credibility
Introduction of QVC brand productsNo name brands generally succeed Name brands may suffer
Name brands increasing QVC’s credibility
Introduction of QVC brand productsNo name brands generally succeed Name brands may suffer
Shedding Historical BaggageShedding Historical Baggage
Gaining higher product credibility without alienating current clientelle
Pursuing Branding Partnerships Antiques Road Show Collection Lucky Magazine special QVC edition
Gaining higher product credibility without alienating current clientelle
Pursuing Branding Partnerships Antiques Road Show Collection Lucky Magazine special QVC edition
The Online Ad SurgeThe Online Ad Surge
Brand advertising online has taken off--and it’s shaking up Madison Ave. Stephen Baker
Brand advertising online has taken off--and it’s shaking up Madison Ave. Stephen Baker
What it wasWhat it was
Dominated by obscure companiesDot-com crash of 2002 meant decline in
online advertising. “A few years ago, it was kids with green
hair selling ads.”
Dominated by obscure companiesDot-com crash of 2002 meant decline in
online advertising. “A few years ago, it was kids with green
hair selling ads.”
What it isWhat it is
Cost of advertising on “major portals” has jumped $180,000 / 24 hr period $300,000+ / 24 hr period
No VacancyInternet ad growth at 28.8%
Overall industry: 7.7%2004: Online ad industry $9.3 billion
Cost of advertising on “major portals” has jumped $180,000 / 24 hr period $300,000+ / 24 hr period
No VacancyInternet ad growth at 28.8%
Overall industry: 7.7%2004: Online ad industry $9.3 billion
Why so successful?Why so successful?
Effectiveness is measureable Clicks = Dollars and cents
Effectiveness is measureable Clicks = Dollars and cents
Effects of online advertisingEffects of online advertising
Other media- advertisers want similar accountability for T.V and print media
The TiVO problemHow to advertise to TiVO customers?New Innovations
Weather.com weather bar links to ads Google and the paid search Rich media evolution
Other media- advertisers want similar accountability for T.V and print media
The TiVO problemHow to advertise to TiVO customers?New Innovations
Weather.com weather bar links to ads Google and the paid search Rich media evolution
Complications & InnovationsComplications & Innovations
T.V. Spots are easyOnline advertising means infinite
choices How big of a banner? Horizontal or vertical? Interactive or static? Rich media or text? Sound, video, both?
Makes people nervous
T.V. Spots are easyOnline advertising means infinite
choices How big of a banner? Horizontal or vertical? Interactive or static? Rich media or text? Sound, video, both?
Makes people nervous
The Remedy?The Remedy?
Packaging, packaging, packaging! Coupling online advertising with traditional media
buys Coupling prime ad locations with ads on other
sites Watch T.V with one eye, surf the web with the
otherE.g. Adidas Individual customer relationships from broad marketing
Packaging, packaging, packaging! Coupling online advertising with traditional media
buys Coupling prime ad locations with ads on other
sites Watch T.V with one eye, surf the web with the
otherE.g. Adidas Individual customer relationships from broad marketing