Consulting Report

• Key issues

• Solution in a nutshell

• What’s the base of it

• Project overview

• Steps 1 to 3 

• Conclusions

• Next steps

• Q&A

Agenda

Competitive Environment

Porter’s 5 Forces

SWOT

What's the base of it?

Greener grass for the cattle

Point and Shoot cameras challenged to survive the Smartphones

Sales decreased from $2.4 billion in 2008to just $1.9 billion in 2011*

Big brands are facing this challenge and coming out with new solutions*Market Research NPD group

Worldwide Digital Camera Market focusing on DSLR Cameras 

1. Sales of DSLRs Cameras in the UK2. Sustained steady growth in shipments of SLR's accesories3. Demand for Digital cameras and SLR demand increased specially

emerging markets,  due to the rise in internet usage.4. Shipments to European continent expected to mantain.

Don't compete with brands, engage with them

“If marketers think that differentiating their products and services and engaging consumers is hard now, just wait until they try doing it when their brands devolve into category placeholders, a product or service that everyone knows, but doesn’t know for anything in particular.

That’s when no discount will be deep enough, which is a hard lesson that many retailers have already learned.”

Passikoff

*Brand KeysCustomer Loyalty Engagement

STEP 1: Setting up a new cow

PropositionBrand image

Channellogistics

New idea

Inventorymanagement

New Proposition

Various, diversified products to non segmented customer

Focus on an specific range of cameras and equipment for a particular segmented target.

Jessops has a established position in the UK market

Exclusive offer only from Jessops

Technical advice reputation

“Your first professional camera” 

Target: Young professionals21- 35 years old,who are looking for a camera better than their mobile phone.

Online:

Offline:-Newspapers-Tube (touristy stations)

Campaign

Changing logistics

Centralise to flagship store in London to optimize volume traffic in both

online/offiline shop

Online customer In-Store customer

Jessop's image will transform from a simple retailer to the bridge between customer and brands.

Marketing

Making the customers to visit the flagship store to touch and feel the product (experience).

1. By reducing number of the stores and centralizing inventory to the warehouse.

2. The storage cost per product at the store is higher than the storage cost per product at the warehouse.

Traffic trend change from off-store purchase to online store purchase.Different customer engaging functions.

Inventory management

Trade - in platform channel

Other channels

1. A seller bring in the item to sell to the store.2. Receive cash credit to purchase from Jessops products.

Jessop’s role:Product AssessmentProvide warranty - 2nd hand buyer (2 years).

STEP 2: Paint the cow pink

Jessops will be a mediator between manufacturers & consumers.

Strategic alliances

Starter kitsExclusive deals -

 - Brand Islands: experiencing with brands - Weekly price updates 

- Personalized online shopping experience- Customer specific offers 

Jessops Lab

STEP 3: Milk the cow

Beginner Professional

Start. By taking a picture with a camera (mobile/digital) and upload it.

Progress. 1. Purchases at Jessops2. Measure photographic activity online: pictures uploaded on social networks, comments.3. Get points4. Progress: Jessops unlock content. Offers additional equipments5. Developing skills in photography.

Professional Photographer path’s life

New generations e.g.World of Warcraft.Return to basic

- Data converted in points collected for purchases, uploads to social networks.

-Multichannel access: web, mobile app.

-GPS, world map, FB places,Foursquare.

KnowledgeGaming Stock

PointsPersonalized spaceIn the website.

-Progress in the game.Buying products, visiting exhibitions,

-Unlock content.

-Free instructions,workshops, events, seminars.

Cross Selling -Offering accessories, new filters at each level.

-Star products. Deal with brand-islands.

-Kits to get next level game. Discounts.

 

Sales relatesAwareness

Measurement KPI’s ActionsBusiness

Performance

Average order value

Sales per channel (value & volume)

Profitability (% of operational sales)

Days of Inventory

No. of out of stocks

Order Conversion rate per online campaign

Traffic from offline to online

Jessops market share UK

DECREASING

Find out problems and review segmentation strategy accordingly

.

Segmentation

Performance

DSLR share of sales (value & volume)

Jessops DSLR market share UK

Target Demographic (% of total customers)

ON TRACK

Continue with plans and use KPI’s to spot business oportunities

Customer

Engagement

K factor (viral factor)

Monthly and daily active users for the website and game

New to returning users ratio

Average monthly revenue per customer

ABOVE EXPECTATIONS

Consider extra investment to accelerate expansion and capture quick win opportunities.

Conclusions

• A tangible value proposition Market segment, brand image, reduce inventory, improve channels and logistics.

• Engage with brands Strategic alliance, deals, Jessop’s lab, personalized online shopping.

• Nurture the customersGamification, lifecycle nurturing steps

Thank you!

Satomi HisamotoBeatriz Briones

Martha TolosaOlli LaintoEduardo Hauck