Multi-Channel system by Studio Moderna
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1 Multi-Channel system by Studio Moderna Studio Moderna Branko Blecic Executive Director
2 The Studio Moderna Story History Company Overview Today Reasons for Success
3 History
4 History/Evolution ONE PRODUCT COMPANY DISTRIBUTION COMPANY BRAND Integrated media platform and content provider Unique multi-channel marketing model
5 The Company Growth Studio Moderna was simultaneously rising number of new countries as well as new sales channels
6 Company Overview Today
7 Sales Channel Diversification - Multichannel strategy Our unique strength is our diversification through seven main sales channels: DRTV Television via 300 TV channels and almost 300 hours per day, Homeshopping Own TV channels 24/7 in 5 markets in 2009 Internet over 100 websites Retail 108 own Topshop stores Wholesale many pan CEE partners (Baumax, InterSpar, Helix, Mercator) Print sales through magazines, newspapers and catalogues Outbound outbound customer database sales (50Mil call/year) Everything we sell is measured on ROI basis
8 Why Multichannel? Supporting Revenue Growth Customer acquisition Increasing customer loyalty and repurchase rate Point of difference (competition) Improving products availability
9 Communication - Customer touching points TV BTL CMC Wholesale Parcels Shop Customer care Internet Print
10 Multi channel diversification Illustration: Studio Moderna Channels TV Internet DRTV SEM Advertising Social Media Marketing Homeshopping Marketing
11 Data-Driven Decision-Making & Processes IT system includes software developed in-house: CRM CatPro CPO Media planning PIS Business Intelligence E- Ordering Navision Product Information Site (PIS): descriptive explanation of product s benefits and features (USP s), SRP, marketing materials and videos, customer FAQs, up-sell and cross-sell opportunities Navision: ERP system at corporate and local levels E-Ordering: tracks and allocates product inventory across Cost Per Order (CPO): tracks media costs (TV channel by TV spot) CRM: Agent s support, 8 million customer records CPO Global new toll in pipeline - will assure us gathering all needed data and with that enable us more efficient and faster planning of multichannel activities.
12 Sales channels and KPI s for Sales Managers *just basic indicators DRTV Internet Retail Wholesale Print Telemarketing CPO CPO/E Rev. per 1 m2 Gross Margin CPO CR Rev. per min. Lead generation Cross sales Bad debts management Catalogue RR AVG revenue per hour Cross sales CR Stock management Stock management Rev per 1 cm2 Cross sales Stock management Cross sales Cross sales Stock management Stock management Stock management
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14 Basic assumption Successful Channel-Mix For which customers should we sell Which product or service Which channels? 3 E Trap: Don t try to sell everything to everybody and everywhere!
15 Cannibalization VS Revenue increase 1. Organizational structure There are no one-size-fits-all solutions. Each multichannel retailer has to decide for itself what to integrate and what to keep separate. 2. Data Integration CRM - Another major challenge in crafting successful multichannel strategies is to build an integrated information technology (IT) infrastructure so that data across channels can be linked. 3. Consumer Analytics Customer Data mining - the increasingly multichannel nature of consumer shopping and purchase behavior calls for a better understanding of their decision processes and new approaches to monitoring and measuring their experience, satisfaction, and loyalty. 4. Evaluation and Performance Metrics Global software motivates multichannel collaboration - there is a need to develop performance metrics that take into account the individual nature of each channel and cross-channel effects of any retail mix decisions, and motivate multichannel collaboration.
16 Retail mix decisions 2 Main conflicts between channels : 1. Fears of cannibalization (shifting sales from one channel to another) 2. Differences in prices and margins across channels The key retail mix decisions that all multichannel retailers have to make: Product or service selection, Parity in pricing across channels, Promotion, marketing communication, Inventory management, Fulfillment, Return policies. Multichannel retailing is an ever-evolving phenomenon!
17 Potential synergies Cross-channel customer communication and promotions - use of one channel to promote another Cost-effective testing and marketing research (product, prices, marketing communication,.) Shared common physical assets and operations. Spreading fixed costs across channels can create economies of scale and scope. A cross-channel complain policy also creates cross-selling opportunities - retailers can encourage customers to shop in the stores when they come to return online and catalog orders. Effective stock management - sales of aging stock + risk management
18 What s essential? Integration Integrating all the operating parts allows you to optimize each customer interaction. Consistency Ensuring customers receive the same brand message across channels and interactions. Flexibility Convince and support insights to meet changing customer needs. Insight Delivering analysis across connected channels enables proactive customer focus.
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20 Multichannel Management New channels are not just added, but successfully integrated Channel management competences are deployed Synergies & independences in the channel-mix are defined Customers are satisfied with the channels and their benefits Conflicts are understood as a condition without which there is nothing
21 Branko Blecic
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