DIGITAL MARKETING

TOPIC: CASE STUDY

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AMNA MUNIR L1F20BBAM0885
AREEBA SHABBIR L1F20BBAM0899
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Classify the in-store, the Amazon marketplace, and direct e-tail business in
terms of the two dimensions of the GE/Mckinsey matrix: market
attractiveness and competitive strength.

In-store business (Physical Stores)

1. Market Attractiveness (How good is the market?)

 Size and Growth: It's big but might be getting smaller because people
are shopping online more.
 Profitability: They can make a good profit because they can charge
more for the special experience.
 Competition: Not as many competitors as online.
 Customer Loyalty: Customers who come to the store like it and keep
coming back.

2. Competitive Strength (How well can they compete?)

 Brand Reputation: Customers trust the brand, especially locals and

serious audio fans.
 Customer Loyalty: People love the store and often return.
 How Well They Operate: Depends on how well they run the store
and treat customers.
 Market Share: They have a good share of the local market but are
limited to where their stores are.

Amazon Marketplace (Selling on Amazon)

1. Market Attractiveness

 Size and Growth: It's a huge market and keeps growing as more
people shop online.
 Profitability: They make less money per sale because of competition
and Amazon's fees.
 Competition: Lots of competition and price wars.
  Customer Loyalty: Customers are less loyal because they can easily
switch to other sellers.

2. Competitive Strength

 Brand Reputation: They don't have much control over how their
brand looks on Amazon.
 Customer Loyalty: People care more about price and convenience
than loyalty.
 How Well They Operate: They rely on Amazon for shipping and
handling, which is efficient but not unique.
 Market Share: They can sell a lot but with less profit and tough
competition.

Direct E-Tail (Own E-commerce Site)

1. Market Attractiveness

 Size and Growth: Big market with lots of online shoppers.

 Profitability: They can make more money than on Amazon
because they deal directly with customers.
 Competition: There's competition, but not as fierce as on Amazon.
 Customer Loyalty: They can build better customer relationships
and loyalty with their website.

2. Competitive Strength

 Brand Reputation: They have full control over their brand and how
customers see them online.
 Customer Loyalty: They have a chance to make customers more
loyal with personalized service online.
 How Well They Operate: They need to invest in a good website,
shipping, and digital marketing.
 Market Share: They have the potential to grow their share of the
market with good marketing and a niche approach.

In simple terms:
  In-Store Business: Good market, very good at competing.
 Amazon Marketplace: Great market, okay at competing.
 Direct E-Tail: Great market, good to very good at competing.

So, each sales channel has its strengths and weaknesses. The in-store business is
strong in competing because of its loyal customers and good reputation, but the
market might not be growing much. Amazon Marketplace has a huge market, but
it's tougher to stand out and make big profits. The direct e-tail (own website) has a
lot of potential for growth and profits, and it can control how they present their
brand and interact with customers, which can make them strong competitors.

Compare customer lifestyle values for the Amazon Marketplace customers

and the projection for direct e-tail customers.

Amazon Marketplace Customers: Look for convenience, variety, and

competitive pricing. They rely on the platform for trust and are less brand loyal.

Direct E-Tail Customers: Seek quality, brand loyalty, and a personalized

shopping experience. They value in-depth information, customer service, and the
brand's uniqueness.

Amazon Marketplace Customers

1. Convenience-oriented: They value the ease and speed of shopping.

Amazon's one-stop shop offers quick access to a wide range of products.
2. Price-Sensitive: More likely to compare prices and look for the best deals.
3. Diverse Needs and Interests: Amazon attracts a wide array of customers,
not necessarily focused on any specific niche or quality.
4. Impulse Buyers: The platform's recommendations and deals can lead to
spontaneous purchases.
5. Trust in Platform: Their trust is often more in Amazon as a reliable
platform than in individual brands.
6. Less Brand Loyalty: More likely to switch brands for better prices or
convenience.
7. Value Reviews and Ratings: Heavily influenced by customer reviews and
ratings on the platform.

Direct E-Tail Customers

 1. Quality-Focused: Likely to value the quality and authenticity of products
more than just price.
2. Brand-conscious: More inclined to stay loyal to a brand they trust and
admire.
3. Desire for Exclusive Experience: Look for a more personalized and
exclusive shopping experience than what general platforms offer.
4. Informed and Research-Oriented: Likely to spend more time researching
products before purchasing.
5. Value Customer Service: Expect high-quality customer service and direct
interaction with the brand.
6. Appreciate Customization and Personalization: Enjoy tailored
experiences, recommendations, and possibly customized products.
7. Engagement with Brand Story: Interested in the brand’s story, values, and
the uniqueness of the products.

Make the online branding decision outlined in the case and develop a
positioning statement for this online brand.

Branding Decision

Extend the existing Audio Advice brand to the online platform. This approach
keeps the trust and reputation of the physical stores and brings it to the online
experience.

Positioning Statement

"Audio Advice Online: Expert Sound, Anytime, Anywhere. Your go-to digital
destination for trusted audio expertise and premium quality, now just a click
away."

This statement communicates that Audio Advice's online store is a convenient

extension of their trusted in-store experience, offering the same expert guidance
and high-quality products in the digital world.
What is the best way strategy to convince audiophile brands to allow their
product to be sold online?

Here is the list of strategies to convince audiophile brands to let their products be
sold online, based on what we learned from the Audio Advice case study:

1. Show You Care About Their Brand: Explain how you'll make sure their
brand looks good online, just like it does in stores.
2. Keep Prices Fair: Promise not to start price wars. Keep prices in a way that
respects their brand’s value.
3. Special Deals: Offer to have their products in a special section on your site
or have limited-time sales that make the brand look exclusive.
4. Guarantee Real Products: Assure them you'll only sell genuine items and
check everything for quality.
5. Make Online Shopping Nice: Create a great website with clear pictures and
information, making it feel like shopping in a real store.
6. Share Helpful Info: Offer to share info about what customers like and buy,
which can help the brand understand its audience better.
7. Good Marketing: Use online ads and stories to reach more people who love
high-quality audio.
8. Success Stories: Share examples of other high-end brands that did well
selling online.

How can organizational challenges (e.g., concerns of in-store salespeople) be

overcome? Are there potential synergies between the in-store business and e-
tail business that could be beneficial?
1. Transparent Communication: Communicate the reasons for launching an
e-commerce platform. Emphasize the potential benefits, such as reaching a
broader customer base and driving overall company growth.
2. Training and Support: Provide training programs to equip the sales staff
with the skills needed to support online customers. This includes technical
support, product knowledge for online sales, and handling customer
inquiries related to e-commerce transactions.
 3. Incentive Programs: Introduce incentive programs that reward sales staff
for successfully converting online leads into in-store visits or phone calls.
This can help align their interests with the success of the e-commerce
platform.
Synergies Between Channels:
Yes, there are synergies between both channels we can Highlight potential
synergies between the in-store and e-tail business. For example, online orders can
lead to in-store visits or phone calls for technical support or product upgrades.
Implement a seamless omnichannel experience where customers can choose to buy
online but have the option for in-person support or consultations.
Set goals for direct e-commerce launch using stable metrics to guide the
tactics employed over the next year.
SMART OBJECTIVE:
Launch the e-commerce platform successfully within the next 3 months, ensuring
growth of 20% in online sales while maintaining a positive impact on in-store
business.
TACTICS:
Training Program
Marketing Campaigns
KPIS PER TACTIC:
Training Program: monitor the percentage of online-generated leads that result in
in-store visits or phone calls.
Marketing Campaigns: Measure the percentage of website visitors who make a
purchase online.
TARGETS PER TACTICS:
Training Program launched an e-commerce platform successfully within 3 months.
Achieve a 20% growth in combined in-store and online sales within the time.