Multichannel sec2

download Multichannel sec2

of 51

Transcript of Multichannel sec2

  • 8/14/2019 Multichannel sec2

    1/51

    Multichannel Retailing

    John Curkovic

    Tanya Dundee

    Caleb Hayes

    Ben Marks

    Eric Plagge

    Jason Rowe

    Jamie Wuhrman

  • 8/14/2019 Multichannel sec2

    2/51

    Multichannel Retailing

    A retailer that sells merchandise throughmore than one channel.

    Stores

    Catalogs

    Internet

  • 8/14/2019 Multichannel sec2

    3/51

    GAP INC.

  • 8/14/2019 Multichannel sec2

    4/51

    Gap History

    Name origination

    Founded in 1969 in San Francisco, CA

    First sold only records and Levi jeans

    Originally known for turning classic clothinginto must have fashion

  • 8/14/2019 Multichannel sec2

    5/51

    History Continued

    Millard Drexler President of Gap Responsible for developing GapKids, BabyGap and

    Gap Body

    New chain of stores: Gap, Banana Republic andOld Navy

  • 8/14/2019 Multichannel sec2

    6/51

    Gap Online

    1997- opened its online store at gap.com

    1998- opened its online stores at

    gapkids.com and babygap.com 2000- delivers GapMaternity in an online

    exclusive debut

    2001- awarded 4 out of 5 stars by ConsumerReports in the categories of policies, usabilityand content

  • 8/14/2019 Multichannel sec2

    7/51

    Store Locations

    4,200 stores nationwide

    Operates in 6 countries U.S.

    Canada

    United Kingdom

    France Germany

    Japan

    http://www.cia.gov/cia/publications/factbook/flags/us-flag.htmlhttp://www.cia.gov/cia/publications/factbook/flags/uk-flag.htmlhttp://www.cia.gov/cia/publications/factbook/flags/ja-flag.htmlhttp://www.cia.gov/cia/publications/factbook/flags/ca-flag.htmlhttp://www.cia.gov/cia/publications/factbook/flags/fr-flag.htmlhttp://www.cia.gov/cia/publications/factbook/flags/gm-flag.html
  • 8/14/2019 Multichannel sec2

    8/51

    Store Location Cont.

    Flagship store

    San Francisco, California

    When 1st founded Gap only had 5employees, and now has more than

    153,000 nationwide

  • 8/14/2019 Multichannel sec2

    9/51

    In-Store Services

    Tailoring: Banana Republic

    Help Button in dressing rooms

    Credit Card: Universal use

  • 8/14/2019 Multichannel sec2

    10/51

    Online Special Services

    Gift cards

    Convenient gift packaging options

    Let Us Get It There: will ship anywherethe customer chooses

    Store Locator

    Shipping and handling Gift receipts

    E-mail updates

  • 8/14/2019 Multichannel sec2

    11/51

    Website

    http://www.gap.com

    http://www.gap.com/http://www.gap.com/http://www.gap.com/
  • 8/14/2019 Multichannel sec2

    12/51

    Special Programs

    1977: Established Gap Foundation

    Two National Organizations

    Boys and Girls Clubs of America Lorraine Monroe Leadership Institute

    Social Responsibility

    AIDS walk

    Habitat for Humanity

    Coats for Kids: Brannan the bear

  • 8/14/2019 Multichannel sec2

    13/51

    Customer Service

    Excellent

    Management quality

    Invest in employees

    Large amounts of time spent on training

  • 8/14/2019 Multichannel sec2

    14/51

    Financials

    Net Profit Margin = Net Profit / Net Sales 1,030,000 / 15,854,000 = 0.065

    Asset Turnover = Net Sales / Total Assets 15,854,000 / 10,343,000 = 1.5328

    Leverage = Total Assets / Owners Equity

    10,343,000 / 4,783,000 = 2.1625

    Return on Equity = Net Profit Margin * Asset Turnover *Leverage 0.065 * 1.5328 * 2.1625 = 0.2155

  • 8/14/2019 Multichannel sec2

    15/51

    Future of Gap

    Opening a new store

    Targeting a new group of customers

    Target Market

    Mostly Women

    30 years of age and older

  • 8/14/2019 Multichannel sec2

    16/51

    Overall Impression

    Store

    Website

  • 8/14/2019 Multichannel sec2

    17/51

    Barnes and Noble

  • 8/14/2019 Multichannel sec2

    18/51

    History

    1917 William Barnes and G. Clifford Noble form

    partnership, and open the first Barnes and Noble 1932 Opens flagship store in New York

    1975 Revolutionizing bookselling

    1985 Launches publishing division, first mail-order

    catalog 1987-1989 Expansion

    1991 Super-store

    1993 Goes public on NYSE

    1997 Launches website

  • 8/14/2019 Multichannel sec2

    19/51

    Mission

    We work hard to ensure that we offer ourcustomers a special experience each time

    they connect with Barnes & Noble, whetherits in one of our stores or online. We arecommitted to providing our customers witha friendly, comfortable environment, helpful

    and knowledgeable booksellers and thewidest selection at the best price.

  • 8/14/2019 Multichannel sec2

    20/51

    Number and Locations

    840 stores

    50 states

    District of Columbia Flagship Store in New York

    New stores

    40,000+ Employees

  • 8/14/2019 Multichannel sec2

    21/51

    Special Programs

    Membership Program--$25/year

    Institutional Purchasing Program

    Corporate Purchasing Program Publishing

    Book Clubs

    Storytime

    Author Readings

  • 8/14/2019 Multichannel sec2

    22/51

    Current Status

    Nations largest bookseller Leading on-line retailer

    Publisher

    3rd

    quarter profit fell 25%

  • 8/14/2019 Multichannel sec2

    23/51

    Departments

    Barnes & Noble Jr.

    Music & Movie

    Newsstand Calendars

    Games

    Accessories

    Caf

  • 8/14/2019 Multichannel sec2

    24/51

    Customer Service

    Above Average

    Knowledgeable Staff

    Friendly and helpful Equal product selection across channels

  • 8/14/2019 Multichannel sec2

    25/51

    Financials

    Net Profit Margin = Net Profit / Net Sales

    - 151,853 / 5,951,015 = .0255

    Asset Turnover = Net Sales / Total Assets

    - 5,951,015 / 3,507,294 = 1.69

    Leverage = Total Assets / Owners Equity

    - 3,507,294 / 1,259,659 = 2.78

    Return on Equity = Net Profit Margin * Asset Turnover * Leverage

    - .0255 X 1.69 X 2.78 = .1206

  • 8/14/2019 Multichannel sec2

    26/51

    Online Special Services

    Fast and FreeShipping

    $25+ Shop until Dec. 20th

    Manhattan Store

    Members discount Store Locator

    Author Information

    Musician Information

    Homepage

    Author information

    http://www.barnesandnoble.com/http://www.barnesandnoble.com/writers/writer.asp?cid=845871&&bnrefer=0-10000-5000000000000-5000000&bnit=hhttp://www.barnesandnoble.com/writers/writer.asp?cid=845871&&bnrefer=0-10000-5000000000000-5000000&bnit=hhttp://www.barnesandnoble.com/
  • 8/14/2019 Multichannel sec2

    27/51

    Overall Impression

    Store

    Website

  • 8/14/2019 Multichannel sec2

    28/51

    Lands End

  • 8/14/2019 Multichannel sec2

    29/51

    Lands End History

    Founded by Gary Comer April 1963

    Started by sailors selling sailboat equipment and duffle bags

    First start in a Chicago basement

    Currently resides in Dodgeville WI

  • 8/14/2019 Multichannel sec2

    30/51

    Catalog History

    1962 first advertised selling yachting equipment inthe one design yachtsman magazine

    1965 first catalog officially starts named Lands EndYachtsmans Equipment Guild

    1974 Equipment fazes out

    1977 sales $3.6 million

  • 8/14/2019 Multichannel sec2

    31/51

    Online History

    Web site created in 1995

    Recognized as a e-commerce leader

    Innovative and service-oriented

    Combined Sales 1998 1.4 billion

    Currently 2 billion in sales

  • 8/14/2019 Multichannel sec2

    32/51

    Lands End Locations

    Lands' end operates 16 outlet and inlet stores in 4states, Wisconsin, Illinois, Minnesota and NewYork.

    3 outlet stores in the united kingdom and 1 inJapan

    Web sites have also been launched in theUnited Kingdom, Japan, Germany, France and

    Ireland

    O S

    http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://www.landsend.co.uk&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://www.landsend.co.jp&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://www.landsend.de&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://fr.landsend.com&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://www.landsend.ie&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://www.landsend.ie&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://fr.landsend.com&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://www.landsend.de&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://www.landsend.co.jp&sid=8085168581715120240http://www.landsend.com/cgi-bin/exit.cgi?exit_url=http://www.landsend.co.uk&sid=8085168581715120240
  • 8/14/2019 Multichannel sec2

    33/51

    Online Services

    Hemming

    Monogramming

    Virtual Model Swimsuit Finder

    Personal Shopper/Lands End Live

    Material Samples

    Tips on Dressing

    L d E d U i

  • 8/14/2019 Multichannel sec2

    34/51

    Lands End Uniquecustomer service

    Incredible Return policy. If not completelysatisfied with any item, at any time during youruse of it, return it and Lands End will refund

    your full purchase price.

    Shipping starts at $3.95 (one of the lowest inthe industry)

    Live toll free help 24 / 7

    L d E d S St t

  • 8/14/2019 Multichannel sec2

    35/51

    Lands End Sears Status

    Lands Ends clothes became available in875 Sears stores in 2002

    Sears CEO Alan Lacy admitted that theclothes weren't selling well in more than athird of stores especially low income areas

    However, in 300 stores in higher-incomeareas report strong sales of Lands Ends

    Ad t i L d E d St

  • 8/14/2019 Multichannel sec2

    36/51

    Advantages in Lands End StoreChanneling

    Customers view products

    Immediate gratification

    Convenient location to return product

    Advantages in Lands End Catalog

  • 8/14/2019 Multichannel sec2

    37/51

    Advantages in Lands End CatalogChanneling

    Convenience

    Sense of security / shopping from home

    Visual presentation

    Ad antages in Lands End

  • 8/14/2019 Multichannel sec2

    38/51

    Advantages in Lands EndInternet channeling

    Convenience

    Sense of security / shopping from home

    Detailed and problem solving information

    Personalization

    Fi i l

  • 8/14/2019 Multichannel sec2

    39/51

    Financials

    Net Profit Margin=Net Profit / Net Sales

    '01 = 34.7/1462 = 2.4%

    '02 = 66.9/1569 = 4.3%

    Asset Turnover = Net Sales / Total Assets

    '01 = 1462/507.6 = 2.88

    '02 = 1569/599.1 = 2.62

    Fi i l

  • 8/14/2019 Multichannel sec2

    40/51

    Financials

    Leverage = Total Assets / Owner Equity

    '01 = 507.6/314.2 = 1.62

    '02 = 599.1/400.7 = 1.49

    Return on Equity = Net Profit Margin x

    Asset Turnover x Leverage '01 = .024 x 2.88 x 1.62 = 0.110

    '02 = .043 x 2.62 x 1.49 = 0.167

    Overall Impression

  • 8/14/2019 Multichannel sec2

    41/51

    Website

    Catalog

    Store

    Overall Impression

  • 8/14/2019 Multichannel sec2

    42/51

    QVCQuality. Value. Convenience.

    Founded on June 13, 1986 by Joseph Segel

    Sets American Business record for 1st year sales

    Debuts live in November, 1986

    QVC Hi t

  • 8/14/2019 Multichannel sec2

    43/51

    QVC History

    1993- 1st international venture into UK

    UKs 1st shopping channel

    1995- Comcast Corp. and Tele-Communications Corp. acquire QVC

    Introduce QCut Automated touch-tone system

    QVC Hi t

  • 8/14/2019 Multichannel sec2

    44/51

    QVC History

    1996- QVC launches website iQVC

    1996- QVC introduces QVC Germany

    1st

    retail shopping channel in Germany 1998- Internet sites in Canada and the UK

    2001- QVC introduces QVC Japan

    QVC B i O i

  • 8/14/2019 Multichannel sec2

    45/51

    QVC Business Overview

    Virtual Shopping mall thatnever closes

    Telecast to 145 million

    households world-wide

    8634

    13.111.6

    US

    Germany

    UK

    Japan

    QVC B i O i

  • 8/14/2019 Multichannel sec2

    46/51

    QVC Business Overview

    Leader in electronic retailing

    Purchase through 3 major avenues 50% Telephone Operator Assistance

    40% Automated Ordering

    10% Online at QVC.com

    6 retail stores

    7 distribution centers world-wide

    Television

  • 8/14/2019 Multichannel sec2

    47/51

    Television

    QVCTV Live

    Product Info

    Price Display

    Ways of Ordering

    Urgency Availability guide

    Timer

    2 sales people Host

    Vendor

    Testimonials Live call-in program

    Website

    http://www.qvc.com/videostream/vid_linear.html?tmp=hp&cont=tbwtvhttp://www.qvc.com/videostream/vid_linear.html?tmp=hp&cont=tbwtv
  • 8/14/2019 Multichannel sec2

    48/51

    Website

    International websites UKJapan Germany

    QCard

    Email Services

    Product Reviews Todays Special Value

    TV Program Guide

    Watch QVCTV Live

    United States

    Customer Service FAQs

    LiveHelp

    Web E-mail Forms Contact Us

    QVC FinancialQVC Financial

    http://www.qvcuk.com/http://qvc.jp/cont/top/Main?serverId=3http://www.qvc.de/http://www.qvc.com/index.html?tmp=mh&cont=qvctexthttp://www.qvc.com/index.html?tmp=mh&cont=qvctexthttp://www.qvc.de/http://qvc.jp/cont/top/Main?serverId=3http://www.qvcuk.com/
  • 8/14/2019 Multichannel sec2

    49/51

    QVC FinancialQVC Financial

    Gains over 194,000 new customers per month

    2003 Revenue of $4.9 billion

    11.8% growth

    Employ 11,000

    Overall Impression

  • 8/14/2019 Multichannel sec2

    50/51

    Overall Impression

    Website

    Television

    Conclusion

  • 8/14/2019 Multichannel sec2

    51/51

    Conclusion

    Overall Rating

    Best store Gap

    Best website Tie

    Barnes and Noble

    Lands End Best catalog

    Lands End