Legal  No)ce:  All  images,  product  names,  logos  and  brands  are  property,  trademarks™  or  registered®  trademarks  of  their  respec)ve  holders.  Use  of  them  is  solely  for  educa)onal  purposes  and  does  not  imply  any  affilia)on  with  or  endorsement  by  them.    

     Example  Tac+cs:  -­‐  Educa(onal  Content  -­‐  Customer  Reviews  -­‐  Consulta(on  (ex.  Expert  Chat,  Product  Selector  Tool)  -­‐  Customer  Service        Example  Brands:          

 

Expertise

eRETAIL VALUE EQUATION =

THE D2C DILEMMA 6S IDEA FILTER

SOLVE:  Does  it  solve  an  actual  consumer  problem?    1  

STATUS  QUO:  Will  it  be  different    and  beEer  than  status  quo?  2  

STRATEGIC:  Is  it  strategic  to    our  business/brand(s)?  3  

SUCCESS:  How  will  we  measure  success?  What  does  that  look  like?  4  

SCALABLE:  Is  what  we’re  doing  scalable  across  our  business?  5  

SUSTAINABLE:  Will  this  be  sustainable  aMer  the  ini(al  launch?  6  

     Example  Tac+cs:  -­‐  Exclusive  Brands  -­‐  Exclusive  Products  -­‐  Exclusive  Packs  -­‐  Customiza(on            Example  Brands:          

 

Solutions      Example  Tac+cs:  -­‐  Expedited  Delivery  -­‐  Same-­‐Day  Delivery  -­‐  Immediate  Delivery  -­‐  Subscrip(on  -­‐  Order  Ease/Op(ons  -­‐  Other  (ex.  3D  Prin(ng,  Streaming)      Example  Brands:          

 

Convenience      Example  Tac+cs:  -­‐  Special  Pricing  (ex.  Bulk,  Contract,  Membership)  -­‐  GiM  with  Purchase  -­‐  Deal  of  Day  -­‐  Free  Shipping  -­‐  Charitable  Dona(ons    Example  Brands:          

 

Price      Example  Tac+cs:  -­‐  Customer  Service  -­‐  Rewards  or  Loyalty  Programs  -­‐  Social  Community  or    Membership  -­‐  Technology/Tools  -­‐  Discovery  -­‐  Product  Guarantee    Example  Brands:          

 

X-Factor

As commercial offense and defense in today’s marketplace, many CPG brands are asking, “Should we launch our own direct-to-consumer (D2C) eCommerce model?” And like all great marketing questions, the answer is “It depends.” Follow these initial 4 steps to determine whether D2C is right for your brand at this time: 1.  Choose a target customer(s). NOTE: This may not be your brand’s traditional consumer (ex. B2B). 2.  Use the eRetail Value Equation (below) to ideate and differentiate your proposition concept(s) for your target customer(s) vs. other retailers in your

category. NOTE: A “me too” proposition will not succeed without significant, disproportionate investment and resources, and even then, without winning with at least one of the five factors of differentiation below and competitive performance in the others, success is not likely.

3.  Use the 6S Idea Filter (right) to vet your proposition concepts for short and long-term fit and success. 4.  Confirm whether your organization is prepared and committed financially, legally, logistically and commercially to assume the role of the retailer

and all the potential benefits and liabilities such responsibility will pose.