Our Team

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(No Transcript)
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Our Team
Kyle Bender, Senior University of Wisconsin,
Madison Information Technology
Alex West, Senior University of Michigan Customer
Relations
Samantha Weaver, Senior University of
Florida Marketing/Branding
Ashley Cline, Senior Florida State
University Store/Catalog Operations
Sarah Losse, Senior University of Arizona Project
Manager, Community
Vikram Madan, Senior University of Pennsylvania,
Wharton School of Business E-Commerce
Melinda Burke University of Arizona Faculty
advisor
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Agenda

• Overview of Mode Department Store and future
  opportunities
• Strategy, implementation, and promotion of Web
  2.0 and social media tools for Mode retail
  operations.
• Specific social tools that can improve Modes
  customer service, while maintaining consistency
  with brand message.
• ITs recommendations for implementation of these
  tools so as not a strain financial resources.   
• Marketing plan around rolling out and promoting
  these tools and educating our existing customer
  base of the changes, as well as attracting new
  customers with these innovative improvements
• Coordination within each channel to make sure
  that Web 2.0 tools can help the stores and
  catalog as well as the Web.

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• Overview of Mode Department Store
• and Future Opportunities

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Mode Department Store
Great style and quality at prices youll love!

• 2007 Financial Highlights
• (in millions)
• Total net sales 19,860
• Total net sales (0.2)
• Comparable stores inc 0.0
• Number of stores 1067

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Mode Mission Statement

• To sell a complete lifestyle revolving around the
  freshest fashions and trends but steeped in
  fundamental price viability.
• Customers ultimately should buy into the
  lifestyle concept, i.e. they are not only buying
  certain products but are buying Mode.
• Moreover, for future sustainability, customers
  should feel that they are getting a good deal
  when they buy Mode.

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Demographics Now

• Adults 35-60
• Majority of most loyal customers have at least a
  college degree, 12 report advanced degree
• Annual Income 50,000 100,000
• Older Working Adults and Retirees
• Established Homeowners
• Current Market Share 24

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Current Story

• Price
• Moderate everyday fair pricing
• Will have special low priced benchmark items we
  are known for

• Store Location
• Currently located in regional shopping malls
• Moving toward lifestyle centers

• Retail Communication
• National TV ads
• Print ads in top magazines
• Newspaper inserts locally
• Direct emails

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SWOT Analysis
Strengths Well established reputation Supply chain logistics in place Large budget Weaknesses Bureaucratic structure Slow implementation process
Opportunities Chance to attract younger customers Increase customer service Increase brand awareness Threats Online competitors Fickle customers Losing authenticity
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Looking Forward

• Demographics
• Adults 18-30
• High school, in college or recently graduated
• Income 30,000 - 80,000
• Trendy lifestyle, more design conscious
• Just establishing homes
• Current market share 5

• Opportunities
• Using the web more effectively by leveraging Web
  2.0 tools in order to
• Get existing consumers to buy into the Mode
  lifestyle on line
• Build a following in the younger consumer segment

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• Strategy, Implementation, and Promotion of Web
  2.0 and social media tools for
• Mode Retail Operations
• Specific social tools that can improve
• Modes customer service, while maintaining Consist
  ency with Brand Message

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Why Web 2.0?

• At its core, Web 2.0 facilitates the transfer of
  information between businesses and consumers
• Businesses can learn who their consumers are and
  what they want (i.e. a research function)
• Consumers can learn about the product offering to
  make a more informed decision (i.e. a marketing
  function)

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What role should Web 2.0 play?

• Focusing on the informational exchange aspect has
  worked tremendously for certain businesses.
• It has allowed them to mold the product
  attributes in a way that directly caters to
  consumer needs
• It has opened a platform for the consumers to
  establish a more complete understanding regarding
  the product
• But, is such a focus appropriate for a department
  store?

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Web 2.0 for Department Stores

• Traditionally department stores sell on service
  and on price product offerings tend to be quite
  similar within a certain price tier of department
  stores
• For example, Macys and Parisians have a similar
  price point and thus offer very similar product
  lines
• Plus, there is inherent variety in department
  stores, so there is not much room to
  differentiate the product offering based on
  insights gained from Web 2.0 tools.
• Hence, Web 2.0 will prove most effective in
  enhancing the customers shopping experience
  online and in the store

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The Web An Open and Distant Medium

• The costs of switching from one online retailer
  to another online retailer are essentially zero,
  so price plays a big factor in influencing
  customer decisions.
• Moreover, only so much can be expected from
  enhancing the customer shopping experience
  online by its very nature, a certain distance
  will remain.
• Focusing only on improving the customers
  shopping experience, hence, is not enough to
  drive sales and growth, especially online.

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Overall Strategy Driving a Mentality Shift

• Our overall aim is to improve our web presence by
  utilizing Web 2.0 tools.
• A significant investment will be made to enhance
  the customer shopping experience.
• However, the critical element is engendering a
  fundamental loyalty to the brand by the use of
  these tools.

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Case-Study Delta Airlines Blog

• Frequent fliers are a small but extremely loyal
  consumer segment
• Deltas blog caters to this group to engender
  amongst them a sense excitement around Delta
• Post-merger status is a very exciting time for
  Delta
• The Blog has helped to proliferate this
  excitement especially amongst frequent fliers.

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Persona-Based Marketing

• Objective Creating a fictitious personality that
  maps on to a target demographic (i.e. Cindy, who
  is interested in the newest fashion)
• The primary medium would be a blog that is a mix
  between Deltas Blog and Leveraged Sell-out
• The key element is that the personality should be
  authentic

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The Mode Blog

• The ultimate aim of this persona-based marketing
  is to engender loyalty within a certain base of
  the target demographic. They are meant to adhere
  to the ways and lifestyle of the fictitious
  personality. This will create a tangible loyalty
  that will make sure that they buy from Mode when
  they are online.
• The entire marketing campaign will revolve around
  this persona, branching out to tools like
  Facebook and Myspace.
• Moreover, Mode can leverage the blog to showcase
  new online customer service improvements.

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• ITs recommendations for implementation of these
  tools so as not to strain financial resources  

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IT Background

• 20 person team
• ITs role
• Design, code, develop, maintain
• Challenge limited time, limited resources
• Cost of labor hours
• Solution Third party outsourcing

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Third Party Advantages

• Time
• Limited development
• 24/7 support
• 6 month development
• Experience
• Proven platforms
• Technical Knowledge
• Does not limit creativity
• Security

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Agile Development

• 3 stages implementation
• 6 month developmental time
• Slow months
• First stage June 2009
• Product review and rating system
• Blog
• Second stage Late January 2010
• User profile
• Third stage July 2010
• Avatar

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Stage 1Product review, ratings, blog

• June 2009

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Search and Refine

• Endeca
• Experience
• 42 of top 100 online retailers
• Wal-Mart, The Home Depot, Barnes Noble
• Offerings
• Search and refine
• Complex formulas to make recommendations for
  shoppers
• Product review
• Statistical feedback that defines our customers
  online activity

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Search and Refine Sample
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Product Recommendations
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Blog
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Stage 2User profile

• January 2010

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User Profile

• Small World Labs
• Customizable communities
• Multiple application integration
• Blogs
• Reviews
• Ratings
• Recommendations

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User Profile Sample
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User Profile (continued)

• Customizable
• Widgets
• Product category updates
• Sales
• Company news
• Top ranked items
• Lists

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Stage 3Avatar

• July 2010

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Avatar

• Linden Labs
• Video and computer games
• Second Life
• Challenges
• Costly
• Impact on bottom line

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•  
• Marketing Plan
• How to roll out and promote these tools and
  educate our existing customer base of the
  changes, as well as attract new customers with
  these innovative improvements?

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The Youth Movement

• Trendy, fickle, tech savy, care about friends
  opinions.
• Focus on the social aspect
• Reached through
• Advertising on blogs
• Ads on social shopping sites
• Create secret buzz group to get our items
  tagged on sites
• Our community My Mode
• Facebook fan page with special offers discounts
• Utilize Facebook Connect to work with My Mode
• Ads on magazine websites (i.e.. Glamour, Cosmo,
  In style, Vogue)

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Customer Relations at Mode
Through Mode Online, customers should

• Feel unique and important
• Feel that their freedom is not limited
• Feel at ease in their shopping experience
• Feel that Mode is working for them at all times

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Profile

• Customers and employees can create their own
  profiles and add their interests
• Compare products with other customers with
  similar interests
• Join fan club groups (fan of this product,
  designer, etc)

Feel unique and important
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Communication

• Post reviews for products, services
• Post and read blogs from customers
• Talk to customer service representatives directly

Feel unique, freedom is not limited
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Communication

• Employee Profiles will be created on MyMode which
  will serve as an e-mail as well.
• E-newsletters sent out once a week to MyMode
• Manager meetings will be held every week in
  store.
• Collaboration between associates and customers
• Store Associates can send suggestions to
  customers via MyMode.

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Ask Amy and Eric
Mode is working for you at all times

• Customer service representatives on hand at all
  time
• Experts in fashion, and knows all about different
  products
• Contact them through phone, instant message,
  e-mail
• Give specific advice based on customers unique
  needs

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Customize to Customer

• Web tools allow customers to customize certain
  products
• Mode fashion expert is on call and can provide
  advice

Feel unique and important
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Customize to Customer

• Mode also will ask customers if they want and/or
  are satisfied with products

Yes
No
Feel important, Mode is working for you always
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Applications

• Sticky notes customer can post notes on items
• Bumper stickers
• Add images and pictures customers can add
  pictures of how they wore certain outfits, etc..

Freedom is not limited
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Convenience

• Mode will provide links to informational websites
  (containing product reviews, news articles..) so
  that a customer can be completely educated before
  making his/her purchase.

www.epinions.com www.google.com
www.consumerreports.com www.cnet.com
Be at ease in your shopping experience
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Convenience

• Check progress of order and how much time it will
  take to deliver
• Option between shipping or pick up at store

Shipped Today at 1200 pm
Arrived in Battle Creek, MI at 217pm
Arriving today!
Be at ease in your shopping experience
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Alerts

• Customer Representatives will get immediate
  alerts sent to them of urgent customer issues

Mode is always working for you
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Feedback

• Customer surveys online instead of through mail,
  Going Green! Customers will receive coupons for
  completing
• Applications like post its, thumbs up or down

Feel unique and important, Mode works for you
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Sales Specials

• Online web-only sales will increase our traffic
  to the website.
• Online coupons to use in-store will help bring
  customers to the store.
• ModeRewards for completing Feedback.

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• Coordination within each channel to make sure
  that Web 2.0 tools can help the stores and
  catalog as well as the Web.

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Store Operations

• Web 2.0 tools will help not only online sales,
  but also sales in-store.
• Special training for employees
• Installation of an in store Kiosk
• Collaboration between all store employees
• All aspects will be discussed in store operations
  with the implementation of web 2.0 tactics.

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Training

• Employee training of web 2.0 services will be
  coordinated with orientation.
• State of the art Web-Based POS system.
• Store associates will be able to access Mode
  online and familiarize themselves with
  merchandise online.
• Classes will be offered for already hired store
  associates to get acquainted with web 2.0.

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Kiosk

• A Kiosk will be placed in the store.
• Store associates will be able to assist customers
  in making customized purchases.
• The online website on the Kiosk will be the exact
  web 2.0 website online.
• This will help any customers that are unfamiliar
  with web 2.0.
• Creating avatars in store with the store
  associate will immediately connect customers with
  a friend.

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Collaboration

• Sharing feedback from store associates to upper
  management is key.
• Meetings will be held to make sure all tools are
  being utilized in store and online
• Everyone will work together in implementing the
  new initiative.
• Everyone must believe it and understand the
  impact of web 2.0.

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Community Involvement

• Employees can create online groups for community
  involvement
• Members can support and donate to the cause.
• This will help Mode become active in the
  community as well as getting our name out on the
  web as well.

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Primary Focusin Store

• Service is Selling
• Store associates will be trained to sell in all
  departments
• Store associates will receive updated information
  about new and hot sellers in weekly newsletters.
  

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Customization

• Embroidery shop will be online.
• Customers can submit custom requests such as
  shortening, lengthening, etc.
• By using customization, our catalog will be
  filled with new customized items available online
  for customers to create.

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Recognition

• Employee recognition is key
• Happy sales associates happy customers!
• Rewards for sales associates who get the highest
  number of customers to sign up profiles with
  MyMode.
• Commission benefits
• Recognition in weekly newsletter along with MyMode

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Merchandising

• Online website will coordinate with in-store
  merchandising.
• Departments will be arranged according to
  lifestyle.
• Customers will essentially be able to merchandise
  their own avatar online with clothing and
  accessories.

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Second Life

• Mode will also be available in Second Life.
• Users will be able to purchase clothing for their
  avatar.
• This will continue the use of marketing Mode in
  the virtual world.

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Thank you, Judges!
Alex West, Senior, University of
Michigan Customer Relations
Kyle Bender, Senior, University of Wisconsin,
Madison Information Technology
Samantha Weaver, Senior, University of
Florida Marketing/Branding
Ashley Cline, Senior, Florida State
University Store/Catalog Operations
Sarah Losse, Senior, University of
Arizona Project Manager, Community
Vikram Madan, Senior, University of Pennsylvania,
Wharton School of Business E-Commerce
Melinda Burke University of Arizona Faculty
advisor
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Lessons Learned Ashley ClineStore/Catalog
Operations

• Web 2.0 and consumer communications in the 21st
  century
• Making sure that Web 2.0 tools will collaborate
  with in-store operations.
• Social networking and creating a unique customer
  database and keeping/managing customer
  relationships.
• Making sure that store associates are happy so
  that we will have successful selling!
• Communication and Collaboration are Key!

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Lessons Learned Kyle BenderInformation
Technology

• The importance of clear communication
• Web 2.0 and its impact on the business
• Challenges of ecommerce and IT in a changing
  business environment

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Lessons LearnedSarah LosseProject
Manager/Community

• Successful team member organization involves
  collaboration, effective communication, and
  strong problem-solving skills
• Make sure to establish a blended team environment
• Test your mindset beyond measures
• Think Big
• Start Small
• Leverage Fast
• Be flexible in decision making
• Be successful financially
• Be comfortable in an unstructured environment

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Lessons LearnedSamantha WeaverMarketing/Branding

• How closely E-Commerce and Marketing are related
• How important Marketing is for a competitive
  retail company in the industry
• To think outside of the box instead of the
  traditional media