SURVIVING THE NEW REALITIES OF OMNI-CHANNEL RETAIL
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1 SURVIVING THE NEW REALITIES OF OMNI-CHANNEL RETAIL
2 INFORME DE JAVELIN GROUP PARA EL CONSEJO DE INVESTIGACIÓN DE VENTAS MINORISTAS DE COCA-COLA 2017 PREPARÁNDOSE PARA EL ÉXITO EN EL MUNDO DE LAS VENTAS MINORISTAS OMNICANAL
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5 THE UNEXPECTED COMES QUICKLY
6 SOMETIMES YOU SURVIVE Theater VCR Netflix Success?
7 SOMETIMES YOU KEEP TRYING Bank ATM Undecided
8 SOMETIMES IT GOES SOUTH Film Digital Failure
9 GIVEN THE CONVENIENCE OF E-COMMERCE, THE CONSUMER NEEDS A REALLY GOOD REASON TO GO TO A STORE AND PARK THEIR CAR. Wall Street Analyst quoted in the New York Times
10 WAVES OF CHANGE: TODAY Free Labor d e l l ro ce t n Co erien Exp Loc Exc ation lus & ivit y
11 SERVING THE THIRD DIMENSION Vertical Experiential Horizontal
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13 SHOPPING EXPERIENCE EVOLUTION Something they desire Someone they trust Yesterday: by need Tomorrow: by craving Yesterday: in store only Tomorrow: digital disruptors, social media and you?
14 OMNICHANNEL RETAIL ALLOWS A CONSUMER TO SEAMLESSLY MOVE ACROSS CHANNELS TO PURCHASE WHATEVER THEY WANT, WHENEVER THEY WANT, HOWEVER THEY WANT AND WHEREVER THEY WANT
15 NEW COMPETITORS ARRIVE On Line Retailers: Amazon Fresh/Prime/etc. Last Mile Services: Instacart Ready to Cook Subscriptions: Blue Apron, Purple Carrot Prepared Meals Deliver: Just Eat, Grub Hub
16 WHERE TO BEGIN: ASSESSING CUSTOMER METRICS Online retail Credit card use spending Internet/credi t card penetration % ecommerce sales Social media use
17 NEXT UP: UNDERSTANDING YOUR RETAIL MARKET METRICS Share in modern Market and large concentration retail On-line Total presence spending top 5 per person grocers
18 LASTLY: ECONOMIC METRICS Minimum wage Logistics performance Populatio n density Population in urban centers
19 FIRST STEPS Consumer approach Technological necessities Staffing and team building
20 MANY OMNICHANNEL QUESTIONS Products Offer full range Logistics Consider options
21 OMNICHANNEL OPTIONS Same Day Delivery Free Service Options Pay to Play Click and Collect In Store or Separate Location Dark Store or Drive The French Connection
22 Delivery vs Pick Up: The Options PICK UP HOME DELIVERY INCREASE PICK-UP OPTIONS OVER TIME If economics work, offer it Delivery time window Delivery area Range of pick-up locations Options Simple pick-up Drive through or Curbside Remote pick up Study customer preferences Home Kitchen Extra-mile services 22
23 AN EVOLVING OPERATIONAL MODEL Digital Shop Window Simple Steps Enhanced
24 DIGITAL SHOP WINDOW Engage with shoppers through digital channels Place product catalog on line with local pricing and non-product content (recipes, helpful hints, etc. ) Digital marketing to drive customer into the store
25 SHOPPER MARKETING TACTICS Mass Marketing: Same to all customers Personalized Marketing: Basic customization: Hello Michael Customized Marketing: Aimed at shopper based on preferences and interests Behavioral Marketing: Targeting my past behavior
26 SIMPLE/FIRST STEPS Start with ecommerce platform showing local assortment, prices and promotions Pick up service offered at some stores basic drive thru Test and learn (and do it FAST!)
27 ENHANCED PROPOSITION Sophisticated ecommerce platform with full assortment of grocery products Extended assortment of products offered through shipping Pick up/drive thru becomes widespread Home delivery in densely populated areas More non-product content
28 ADDITIONAL ISSUES/CHALLENGES Fresh products: building the market Alternative products: what happens when you need to substitute Building loyalty and basket size is essential
29 OPERATIONAL CONSIDERATIONS st 1 Phase Sales under 0.2% Standalone ecommerce operation and leadership 2nd Phase Sales around 2.5% Integrate customer facing teams and costs for synergy. Omni-channel management 3rd Phase Sales at 5% or more Fully integrate the teams under company management
30 OMNICHANNEL NEEDS Personnel New skills and capabilities Possible third party partners Technology Social media Enhanced websites In-store Wi-Fi App/Mobile Payment and Receipt Systems
31 IT WON T BE EASY Profit squeeze coming Assessment and diagnostic Diversity of views Pick your spots Get going!
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33 JAVELIN GROUP REPORT FOR COCA COLA RESEARCH COUNCIL 2017 PREPARING FOR SUCCESS IN THE OMNI-CHANNEL RETAIL WORLD
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