Transcript Slide 1

the Sony store
• Introduced in Canada in
2003
• 70 stores
• Targets women
• Showcases products
available for purchase
online
On-line Operations
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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
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Manufacturer
Warehouse
Sony Store
Sonystyle.ca
End Consumer
Sonystyle.ca channel flows
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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
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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
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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
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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?