Transcript Hello

SAQ
Presented by:
Delattre Therese
Groizard Carlos
Petersen Pablo
Content
 What is SAQ?
 B2C site
 B2B solutions
 Value creation & capture
 Conclusion
2
Société des alcools du
Québec
(SAQ)
 State-owned corporation responsible for
the trade of alcoholic beverages.
(Monopoly) since 1921
 5500 employees
 $2.4B annual sales(2003) ($540M net
income)
 77% Consumers and 23% Permit Holders
 Network:
– 30 Express, 290 Classiques, 66 Sélections and 2
Signature stores
– www.saq.com Web site VSOP System
– 6 SAQ Dépôt stores and 3 bulk wine points of sale.
3
Globalwinespirits.com
SAQ
Other Buyers
Public B2B
$$$
50% Mediagrif, 50% SAQ
$$$
International Wine Makers
B2C
Agents
Customers
B2B
+
+
Local Wine Makers
B2B
SAQ.COM
= Most purchases
Permit Holders
B2C
= <.2% of sales
4
Net income 1994-2004
Distribution of Selling Price
March 2000
5
How much goes to IT?
6
www.saq.com
 Purpose of site
 Age constraints
 Delivery constraints
 Prices are the same
7
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B2C-Features





ABCs of Wine, ABCs of beer, ABCs of Spirits
Recipes, games, advice
Promotions
Links to Clubs & Associations
Extensive list of related sites links & Search engines
 The Courrier vinicole publication (membership)
 Groceries & Convenience Stores Section
 Business-to-Entertainment section
– Gift Certificates
– Gift Shop
– Business receptions ideas
9
Measures of Success
 Surveys & Customer complaints
 9000 visits daily & growing
 The Courrier vinicole publication
2000 members
 SAQ e-Newsletter – 115,000 users
 1500 orders/week @ 93% efficiency
10
Sites Comparison: B2C
SAQ.com
PAWine.com
Wine.com
Ownership
State owned
State owned
Private retailer
Products
3,000 labels
55 countries
Yes
Over 1000 wines
Yes
2500 labels
Domestic & Intl’s
Yes
Registration
Required
Required
Optional
Return policy
30 days
30 days
30 days
Customer
Service
Phone & e-mail
Phone & e-mail
On-line specialists
available
Delivery
service
Canada Post
3 options
3 – 5 days delivery
Free delivery >$50
On-line throughout
delivery
QC, Canada
UPS
2 days delivery
Free ship to liquor store of
choice in PA
UPS, FEDEX, DHL
7 - 10 days delivery
Max 24 bottles for 12
Sates
On-line
24 delay tracking
PA, USA
30 States in USA & Japan
• Wish list program
• e-Newsletter
• Courier Vinicole
• Outlets link
Wine connection program
(sampling)
• Wish list program
• e-Newsletter
• Party planner
E-catalogue
Order tracking
Market
Special
features
11
12
Business to Business
 One private (SAQ-B2B) and the other
one public (Global Wines and Spirits
– GWS).
 Globalwinespirits.com
–
–
–
–
–
–
5 languages
Call for tenders
Spot market place
Catalogues
Private extranets
File management/conversion
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SAQ-B2B.com

A private B2B transactional portal
owned and operated by the SAQ’s
e-Commerce Division

No membership fees, product list or
per-transaction fees to pay

SAQ is the only buyer on the portal

The SAQ online saves time, effort and
money (purchasing, shipping, and receiving)
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SAQ-B2B.com
(con’t)

The only equipment required is a
computer and Internet access

Highest industry standards for
security, boasting data encryption,
back-up support systems and firewalls

Easy-to-use functions
(call for tenders,
logistics mgt, doc sharing, freight forwarders, and
shipment tracking)
15
The questions of added Value
 How does SAQ add value to its
core business through its web
site?
 How is the value created
captured ?
– By SAQ
– By Suppliers
– By Customers
– By Taxpayers
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How can a wine retailer
add value on-line
Value added







Knowledge base
Category search
Personalization
Exchange forums
B2C
Up-stream B2B
Down-stream B2B
SAQ







Yes
Yes
No
No
Yes
Yes
No
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Benefits for SAQ of going
electronic
Characteristics
of the Internet
 Reach
 Flexibility and ease
to use
 Personalization
 Interactivity
 Asynchronous
communication
 E-Commerce
transactions
 B2B
SAQ application
benefits
 Restricted to QC
 Benefits customers (no
impact on growth)
 Potential not exploited
 Forums not available
 E-mail support provided
 Optional to customers
and compulsory to
suppliers
 Limited to suppliers
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Creation of value
 Reduction of transaction costs (relative low
importance)
 Accessibility of knowledge base to
customers
– Products
– Prices
– Retail stores data
 Convenience of home deliveries to
customers
 Certainty of product availability at retail
stores
 Electronic transactions with suppliers (B2B)
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Increased process efficiencies due
to systems integration throughout
the Supply Chain
 On line E-Commerce transactions
linked to SAQ’s ERP system
 Suppliers’ integration via:
– B2B portal (transactional via EDI)
– Global Wine & Spirits portal
 PRP (Planned Replenishment
Model) to be implemented
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How is the created value
being captured?
 By SAQ
– Enhancements achieved through
site don’t play as a differentiating
factor
– Cost reductions obtained not even
quantified
– Market: Captured and limited to QC
• Growth of market in Quebec not a
government priority
• Limited cannibalization from outlets
• Promotion of site self restricted
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How is the created value
being captured?
 By SAQ’s suppliers
– Increased efficiency through
electronic transactions
– Improved logistics
– Access to on-line sales information
(overnight updates)
– Close communication on
promotional activities (through
agents)
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How is the created value
being captured?
 By SAQ’s customers
– Access to knowledge base and
specialized consulting services
– On-line ordering convenience
– Home delivery service (flexible
service optional)
– Access to on-line information on
inventories at outlets
– 17/5 Call center (complementary
info.)
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How is the created value
being captured?
 By taxpayers (as stakeholders)
– Transparency: On-line access to all
information
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Conclusion
 Small part of a larger supply chain
integration strategy
 Some products are not easily or
desirably sold online
 The SAQ is using the web technology
to complement its service to the
consumer and to the suppliers
 Whatever time is saved from buying
online is time to be used to savor the
wine!
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THANKS !
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