Transcript Slide 1
the Sony store • Introduced in Canada in 2003 • 70 stores • Targets women • Showcases products available for purchase online On-line Operations • • • • • Corporate website http://www.sony.ca Links to Sony Style and Sony Store sites Product and pricing information Financing, delivery and warranty options Order tracking Online Target Market • Consumers who value convenience • Geographical and temporal constraints • Consumers already familiar with products Channel Structure • • • • • Manufacturer Warehouse Sony Store Sonystyle.ca End Consumer Sonystyle.ca channel flows • • • • • • Payment and Financing Risk Ordering Physical Possession Ownership Promotion Demand and Supply Side Factors Demand • Facilitation of Search • Assortment and Variety Supply • Elimination of contact point Service Outputs • • • • Bulk Breaking Spatial convenience Waiting and delivery time Assortment and Variety Sony Store Gap Analysis BULK-BREAKING SPATIAL CONVENIENCE WAITING AND DELIVERY TIME ASSORTMENT AND VARIETY LEVEL PROVIDED High Low Low OK EFFICIENCY High Low OK OK SOURCE OF PROBLEM Low quantities demanded by consumers Must travel to major urban center Shipping time from wholesaler to retailer Units exceed Capacity of store ENVIRONMENTALMANAGERIAL BOUNDS Lack of information internally Taxes differences in each province Lack of information Lack of information OUTCOME DESIRED Increase capacity of store for inventory/frequency of purchase Reach more consumers Next day delivery Offer all lines of products manufactured by Sony TACTICS TO CLOSE GAP Increase capacity of retail outlets to offer all of Sony’s line of products to consumers. PREDICTED CHANGE IN CHANNEL PERFORMANCE Increased efficiency and reduced delivery time. Increasing offerings of products in store will reduce costs of transporting goods from wholesaler to retailer to consumer. Sonystyle.ca Gap Analysis BULK-BREAKING SPATIAL CONVENIENCE WAITING AND DELIVERY TIME ASSORTMENT AND VARIETY LEVEL PROVIDED High: customer buys single unit High: on-line reaches everyone with the internet Low: anywhere from 1 -7 days High: can locate all products offered by Sony EFFICIENCY High: no need for traditional “bricks & mortar” system High: targets anyone with internet; convenience for time pressed people Low: multiple points and shipments High: access to all Sony products SOURCE OF PROBLEM No demand for bulk purchases in consumer electronics Certain consumers do not have access to the internet All products purchased online need to be shipped to end user No access to other brands ENVIRONMENTALMANAGERIAL BOUNDS Shipping rates/method s of transporting specific products Geographical barriers System crashes/viruse s could cause problems in the ordering process Barrier through management to focus attention exclusively on Sony brand OUTCOME DESIRED To increase frequency of purchase To increase consumers use of Sony online Decrease delivery time as much as possible Continue to offer all Sony products online TACTICS TO CLOSE GAP Add another distribution center in Western Canada. PREDICTED CHANGE IN CHANNEL PERFORMANCE Costs will fall due to a reduction in delivery time and transportation costs of shipping individual products Delivery will be 4 days or less On-line Support System • • • • Tutorials and Emulators Additional after-sales service FAQs Timely and consistent information Conflict • Resistance from retailers • Cannibalization of sales • Potential loss of retailers Recommendations • Establish distribution center in Western Canada • Increase product offerings at Sony Store • Implement use of EDI • Increase capacity of stores Questions?