ATENEO DE MANILA UNIVERSITY

GRADUATE SCHOOL OF BUSINESS

#20 Rockwell Drive, Rockwell Center, Makati City, 1200 Philippines

M05 - E-COMMERCE

CASE STUDY 1: PUMA GOES OMNI

Submitted to:

Dr. Xiaoyun Xu

Submitted by:

Group 3
Bajandi, Jay Anthony
Cabello, Jeremy Rachelle
Chia, Cara Lynn Marie
De Leon, Stian
Gapaz, Charmaine Joy
Joson, Miguel Sergei

February 6, 2024

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CASE STUDY QUESTIONS

1. How is omni-channel retail different from traditional multi-channel retail? What are
the key differences?

Omni-channel retail and multi-channel retail are two distinct approaches in the retail
industry.

Omni-channel retailing is a comprehensive strategy aimed at providing consumers

with a seamless and consistent shopping experience across various channels. This approach
focuses on erasing the boundaries between different sales and marketing channels to create a
unified and integrated whole. In an omni-channel approach, customers can transition
effortlessly between online and offline platforms, maintaining a synchronized experience that
spans digital and physical touchpoints.

On the other hand, multi-channel retailing involves using multiple independent

channels to reach customers. In this strategy, each channel operates autonomously, providing
separate and distinct shopping experiences. These channels can include websites, social
media platforms, mobile apps, and physical stores, among others.

Figure 1. Multichannel vs Omnichannel

Source: (ETP. 2023, November 30)

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 Table 1. Differences between omni-channel and multichannel retailing
OMNI-CHANNEL MULTICHANNEL
Focus Customer-focused Product-focused
Integration Unifies all channel Operates channels independently

Customer Seamless, personalized May lack consistency

Experience experience
Data & Analytics Holistic view of customer Fragmented customer data from
interactions separate channels
Sales & Unified sales and marketing Separate sales and marketing
Marketing strategy across channels strategies for each channel
Advantages · Improved customer · Greater reach and visibility
satisfaction and loyalty · Flexibility in targeting
· Better data collection and different customer
analysis segments
· Increased sales and revenue · Multiple touchpoints for
customer engagement
Disadvantages · Requires significant · Limited to no integration
investment in technology between channels
and infrastructure · Inconsistency in customer
· Complex implementation experience
and management · Difficulty in tracking and
· May necessitate measuring performance
organizational restructuring
Source: (Farrelly, J. 2021, March 11)

2. What role does the content management system play in Puma's move to be omni-
channel retailer?

A content management system is a software application or a set of tools that enables

the creation, management, and delivery of content through digital channels with minimal
technical requirements, and it doesn't necessarily require coding expertise. It serves as a
centralized platform for storing content and incorporates automated processes for
collaborative digital content management and creation, often using predefined workflows.
This system streamlines the content creation process, facilitates coordination among various
individuals and teams, and publishes the content to a web page or other digital experiences.
(Thomas, A. 2023, March 9)

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 Puma’s custom-built content management system (CMS) serves as the backbone of
Puma's digital infrastructure, allowing for centralized control and the customization of
content for different channels, ensuring that the brand's message is adapted appropriately for
diverse platforms such as websites, social media, mobile apps, and in-store displays. It
enables the company to seamlessly integrate its online and offline channels, eradicating silos
and fostering a unified customer experience. This enhanced system results in a significant
increase in customer engagement, as users spend twice as much time on the site, leading to a
corresponding rise in order rates.

Furthermore, the CMS integrates with other tools, such as language translation tools,
Storefinder, and product inventory managers, enhancing Puma's ability to provide a cohesive
experience across global markets. This integration supports localization efforts, ensuring that
content is tailored to specific regions and sub-brands, a key aspect of omni-channel retailing.

3. What social media sites does Puma use, and what do they contribute to Puma’s
marketing effort?

Puma has established a comprehensive presence across various social media

platforms, including Facebook, Twitter, Instagram, Pinterest, Snapchat, and YouTube.

Social media serves as a valuable tool for Puma to gain insights into the diverse
regional and sub-brand audiences across the 120+ countries it operates in. Recognizing the
need for tailored content, dedicated pages for sports, countries, regions, and product
categories have been created on each social network. While initially adopting a trial-and-
error approach focused on building followers, Puma now employs a data-driven strategy.
This involves geotargeting posts to specific social network audiences at optimal times for
heightened fan engagement. With over 20 million Facebook fans globally, Puma ensures
personalized communication by sending messages based on customers' website activities.
Additionally, Puma leverages these platforms for showcasing products, launching campaigns,
and distributing multimedia content, creating a dynamic and visually appealing brand image.

The data-driven insights derived from social media analytics guide Puma in making
informed decisions, optimizing strategies, and ensuring relevance. They become crucial tools
for customer retention, loyalty-building, and seamless integration within Puma's omni-
channel marketing approach.

Social media platforms also offer a global reach for Puma allowing them to engage
with audiences worldwide and connect with diverse consumer segments.

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4. Identify a local company that recently transitioned from traditional retail to omni-
channel retail. What are the primary challenges for such a movement? Give one
example and demonstrate the company's effort in overcoming such a challenge.

In today's digital landscape, the distinction between online and offline channels has
become increasingly blurred. Consumers now anticipate a seamless experience across
various channels, encompassing physical locations, online platforms, social media, loyalty
programs, and mobile apps. Golden ABC, Inc. (GABC), a multi-awarded fashion enterprise
housing top proprietary brands like Penshoppe, OXGN, ForMe, Memo, Regatta, and Bocu,
originating from the Philippines in 1986, has evolved with these changing expectations. With
over 1000 strategically positioned sites across different countries in Asia, GABC recognized
the need to shift from traditional retail to omni-channel retail to align with its expanding
brands and unwavering dedication to customer service.

Despite the numerous advantages of omni-channel integration, one of the biggest

challenge is integrating different systems and technologies across channels. It entails
significant upfront investment in IT infrastructure and expertise. To overcome this challenge,
GABC extended its partnership with the omnichannel technology firm Aptos, aiming to
fortify end-to-end operations and enhance customer engagement for a broader market reach.
This strategic technology investment empowers Golden ABC to manage nearly every aspect
of its retail operations through Aptos, from merchandise planning and order fulfillment to
shopper service and engagement. By deploying Aptos' cloud-based order management
system, Store point of sale solution, and CRM, Golden ABC aims to provide more informed
interactions, expedited checkouts, and personalized customer engagement. This move
represents a proactive step to overcome the challenges associated with omni-channel retailing
and deliver an enhanced customer experience. (Abad, R. 2021, July 1)

Another noteworthy example is UnionBank of the Philippines underwent a

transformation from traditional retail banking to becoming a leader in omni-channel financial
services. The primary challenges in this shift included securing organizational alignment,
regulatory adaptation, and a comprehensive technological overhaul. One notable hurdle was
the need for regulatory adjustments to accommodate digital verification systems. In 2019, the
Central Bank responded by revising policies, leading to a surge in fintech development,
particularly in e-KYC products and ID verification systems.

To navigate this transition effectively, UnionBank strategically established UBx, its

technology arm, in its journey towards full digitization. This subsidiary allowed the bank to
experiment with innovative digital solutions while the parent company focused on
implementing technology with banking services, all while adhering to the evolving
regulatory framework.

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 UnionBank emerged as a technology leader, prioritizing streamlined services through
digital channels for a seamless customer experience. Amid the pandemic, the bank thrived by
leveraging mobile app features such as digital account opening, electronic fund transfers, and
bills payment. This digital focus not only catered to retail customers but extended to
corporate clients, introducing groundbreaking initiatives like corporate digital account
opening and a business banking app offering loans and cash management services.

One prime example of overcoming challenges was UnionBank's recognition of the

inadequacy of traditional branch-centric models. Instead of relying on building more
branches, the bank opted for a data-driven strategy, acknowledging the prevalence of mobile
phone users compared to physical bank locations. This shift allowed UnionBank to
strategically position banking services at the fingertips of its customers.

In navigating the challenges of transitioning to omni-channel retail, UnionBank's

successful example demonstrates how strategic alignment, regulatory adaptation, and a
robust focus on technology can not only drive a financial institution's growth but also
enhance customer experiences across both retail and corporate segments

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References:
ETP. (2023, November 30). Understanding ETP Omni-channel Retail Software Solutions
better. https://www.etpgroup.com/understanding-omni-channel-retail-better/

Farrelly, J. (2021, March 11). Explained: The key differences between omnichannel vs.
multichannel retail - Searchspring. Searchspring. https://searchspring.com/blog/explained-
the-key-differences-between-omnichannel-vs-multichannel-retail/

Omnichannel vs Multichannel: What’s the Big Difference? (2024). (n.d.). Shopify Plus.
https://www.shopify.com/enterprise/omni-channel-vs-multi-channel

Thomas, A. (2023, March 9). What is a Content Management system (CMS)? Built In.
https://builtin.com/software-engineering-perspectives/content-management-system

Abad, R. (2021, July 1). Golden ABC elevates customer shopping experience with
omnichannel solutions | Roderick Abad. BusinessMirror.
https://businessmirror.com.ph/2021/07/03/golden-abc-elevates-customer-shopping-
experience-with-omnichannel-solutions/

INQUIRER.net BrandRoom (2020, June 11). UnionBank among ‘Most Helpful Banks in
Asia-Pacific’ during COVID-19. https://business.inquirer.net/299679/unionbank-among-
most-helpful-banks-in-asia-pacific-during-covid-19