QVC - Altman Dedicated Direct

QVC - Altman Dedicated Direct

CHANGING CHANNELS:CHANGING CHANNELS:how progressive brands areleveraging qvc to reach the newmulti-channel consumer

Bed, Bath & BeyondNeiman-MarcusWilliams-SonomaExpress/LimitedSaksTiffany & Co.Bloomingdalessource: annual reportscomparison to other retailers(2004 sales in billions)$3.5$2.8$2.7$2.4$2.0$1.9$4.5RETAIL CREDENTIALS$5.7

qvc… a multi-channel retailer

4 u.s. distribution centers97,246,682 itemsdelivered to7,177,000u.s. addresses3.1items per secondREACH4 u.s. distribution centers: rocky mount, nc; suffolk, va; lancaster, pa, west chester, pa

3,700,000 uniquevisitors per / month16% conversion rate> 200 drop ship launched Sept 1994: homepages 1994, 1995, 1998, 2005

conversion rateREACH

on-air• national live broadcast 24/7• presenting one item at a time• creating demandINTEGRATEDonline• vast selection in real-time inventory•shop by category/brand/item/occasion• answering demand55%off-air product17%of u.s. business

T-COMMERCEcustomerprivacydatabasetechnologiesorder entrysystemsCS staff andstandardsSHARED SHOPPING EXPERIENCEE-COMMERCE

T-COMMERCEimpulsedrivenhighlyeditedchoicescreatesdemandnarrow &deepchoicedemanddynamicsmerchandisecategoriesinventoryimplicationsCOMPLIMENTARY STRENGTHSE-COMMERCEbreadthofcategoryanswersdemandconsideredpurchasesbroad &shallow

T-COMMERCEon-airproductsonlycontainedfulfillmenttelephonepassivemerchandiseinventorymanagementorderingoptionsconsumeractivityA SYMBIOTIC BUSINESS MODELE-COMMERCEQVC& moredropshipcomputerinteractive

meet the boss.THE CUSTOMER

THE CUSTOMERqvc’s core audience is the suburbanbaby boomer boomer woman.she is of above average affluence, andshe is of above average affluence, andviews shopping as a pleasure sport.views shopping as a pleasure sport.she shops better department stores.she’s three times more likely than theaverage american to shop via the web.sources: experian/mosaic, yankelovich

underpromise,overdeliver.the backyardfence.price brand, onemessage, one voice.strictconfidentiality.THE CUSTOMER“qvc is not inthe business ofselling items.“qvc is inthe business ofpleasingcustomers.”- darlene daggett, president us commerce

CORPORATE OVERVIEWWelcome toJos. A. BankClothiersJos. A Bank

CORPORATE OVERVIEWmulti-channel retailerselling men’s business dress & businesscasual apparel• 270 retail stores nationwide• catalog• internetJos. A Bank

CORPORATE OVERVIEW• demographics• site history• online vs. retailbusinessJos. A Bank

why partner with catalogers andonline retailers?

2 opportunities: on-air & onlineTHE OPPORTUNITY

on-air• item business• pleasure shopping• highly demonstrable• differentiated from regularretail channels• volatile peaks and valleysTHE OPPORTUNITYonline• broader offering• destination shopping• considered purchase• predictable buy anytimevolume

THE OPPORTUNITY• build meaningfulassortment quickly andefficiently• create brandexperience withintrusted environment• partner with provendrop ship experts• provide customerscategories not in on-airmix

why partner with qvc?

THE OPPORTUNITY“QVC is the departmentstore that never sleeps.”New York Times 12.07.042004january 2004Jos. A Bank• third largest onlineretailer• strong brandrecognition• industry leader incustomer service andexperience• loyal customer base

THE OPPORTUNITYJos. A Bank• shared commitment toquality• access to new customerbase• committed to accuratebrand portrayal• increased brandawareness

how does the deal work?

• total experience lives on qvc• qvc customer service• leverages vendor inventoryTHE BUSINESS MODEL

• commerce hub middlewareplatform• qvc packing slipdownloaded• qvc ups shipper idTHE BUSINESS MODEL

THE BUSINESS MODEL• supply product images,descriptions and pricing• provide inventory daily• receive orders daily• pick, pack and ship• confirm shipmentwithin 48 hours450PixelsJos. A Bank400Pixels

what’s the process?

order and inventory data updated every6 secondsTHE PROCESScontinuous• evaluate the “match”automated updates online• review operational setup and contract• review content andimage requirements• determine breadth ofassortment• quality assurance• “build” product

THE PROCESSProcess from Jos. A Bank point of viewTime & Action ListJos. A Bank





merchandising strategies




MERCHANDISING STRATEGIESorder and inventory data updated everycontinuous6 secondsEvaluate the “match” of the automated business updates opportunity onlineReview operational set up and contractReview content and image requirementsDetermine breadth of assortmentQABuild product

order and inventory data updated every6 secondsMERCHANDISING STRATEGIEScontinuousautomated updates online


MERCHANDISING STRATEGIES Jos. A Bank• communicate what’sselling• stain & wrinkle resistant polos• current trends• “seersucker” - suits, sportcoats, pants &shorts• new product• stays cool suit

marketing plan

MARKETING STRATEGIEScreate synergy with brand’s marketingplan• schedule brand shop updates• plan flow of product• strategize peak periods• develop promotionalopportunities

homepageeCataloghost email picksMARKETING STRATEGIES


MARKETING STRATEGIES Jos. A Bankcommunicate jos.’s marketing plan• catalog drops• father’s day sale• fall & holiday sales


IN SUMMARYbenefits of merchandising on• page views• merchandising talent• leading conversion rate• qvc customer service• search optimization• no click through charge• paperless orderprocessing & invoicing• tv opportunityvendor investment• provide content & images• supply inventory• communicate throughcommerce hub• pick, pack, ship product• meet qvc standards

questions welcome!

CHANGING CHANNELSwelcome to real-time retailingwelcome to

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