MEET THE TEAM

1
(No Transcript)
2
MEET THE TEAM
Nancy Hernandez Senior University of
Arizona Accounting, Business Econ E-commerce
Georgia Zhang Freshman University of
Pennsylvania Economics Information Technology
Gabriela Cobb Senior University of
Michigan Business Administration Marketing/Brandin
g
Zuri Woodard Senior Florida State
University Merchandising Customer Relations
Gina Jensen Sophomore University of
Wisconsin Retail Project Manager
Emily DiPietro University of Florida Marketing Sto
re/Catalog Operations
Betsy Trabough JCPenney Director of David F.
Miller Center for Retailing Education and
Research University of Florida
3
AGENDA

• Situational Background
• Web 2.0 Features
• Social Networking Sites
• Store Catalog Operations
• Customer Relations
• E-Commerce Information
• Information Technology Feasibility

4
(No Transcript)
5
PROBLEM DEFINITION

• Due to the increase in technology and the web,
  our company faces the increase pressure to remain
  true to our brand image, loyal to our customers,
  while offering a new and improved Web 2.0
  interface for our website.
• We have set forward to implement and launch an
  updated website including Web 2.0 and social
  networking tools to keep current with todays day
  and age.

6
MISSION STATEMENT

• To offer simple-made shopping, with special
  features only found online, through our Web 2.0
  service, while maintaining the customers
  security and continuing to provide exceptional
  customer service that we pride ourselves on.

7
BUSINESS OBJECTIVES

• Fundamental Entity
• Americas store bringing the latest fashion
  trends at an affordable price to all of our
  consumers. We pride ourselves on attracting
  customers through our exceptional customer
  service and interaction between style and
  affordability.
• Core Competence
• Exceptional customer service, which attracts new
  customers and helps retain customer loyalty
  through intricate detail
• Offer same quality customer service through Web
  2.0 interface by providing value added features
  that will continue to exemplify customer service

8
BUSINESS OBJECTIVES

• Goal Time Frame
• Offering unique products that can only be found
  through site, by providing the same quality of
  service to customers
• Measure usefulness of social networking tools and
  updated site by measuring traffic flow
  specifically using conversion rate of initial
  site visit to initial purchase and payment
• Due to changing technology, measurements should
  be handled in 3 months periods to rate the
• effectiveness of the site

9
MARKET ANALYSIS

• 18 of online population have used social
  networking sites such as myspace, facebook, and
  twitter for personal communication instead of
  email
• 50 of 18-24 use social sites instead of email
• 32 of 25-34 use social sites instead of email

10
TARGET AUDIENCE

• Young adults
• Ages 20-34
• She is busy
• transitioning from college to the
• real world
• Stay current with the latest trends, but has less
  and less time to enter the store, so she now
  finds online shopping productive and fun!
• Enjoys spending time on social networking sites
  such as facebook, where she keeps in touch with
  college and high school friends.

11
BRANDS
12
SEASONAL BOUTIQUE BRANDS
13
PRODUCT MIX

• Men Women
  Children
• Designers Accessories Shoes

14
PRICING

• Multi-tiered pricing
• Offer premium pricing on website only

15
SWOT ANALYSIS

• Strengths
• Web 2.0 structure
• Customer relations
• Employee education
• Marketing strategy
• Wide variety of brand products
• Resist economic downturn

• Weakness
• Social networking development
• Implementation costs
• Changing technology
• Limited internet knowledge

16
SWOT ANALYSIS

• Opportunities
• Growing demand sales
• Global economy
• Strong, loyal customers
• Strategic plan
• Partnerships
• Social networking sites
• Celebrities
• Universities

• Threats
• Competitors
• Size
• Market share
• Legacy

17
SOCIAL NETWORKS

• Facebook
• Campus outreach
• Linkedln
• MySpace
• Bebo
• YouTube Events
• Blog groups
• Twitter
• Search engines

18
THE FACEBOOK EFFECT

• Social marketing
• FBs Beacon failure
• Tailor ads, events, groups to the interests of
  different customers
• Pair customers with brand and products
• Let customers market us
• Invite celebrities to endorse brands and share
  experience through networks

19
FACEBOOK APPLICATION
20
IN-STORE/CATALOG ADVERTISEMENTS

• User Manuals
• A user friendly guide to the new system placed as
  an insert in the catalog and displayed at
  check-out stations throughout the store
• Receipts/Invoices
• Advertisements placed on the back of receipts
  from in-store purchases and invoices from catalog
  sales
• In-store promotions that are only redeemable
  online

21
IN-STORE KIOSKS

• Kiosks are set up around the store and connected
  to the website
• Customers can create profiles, check prices and
  track sales
• Scan merchandise into the machine and add the
  item to a wish list available online
• Customer representatives available to educate
  consumer through the kiosk about new web features

22
PERSONAL SHOPPER

• Offer every customer ideal and positive online
  shopping experience through a personal shopper
  within the website
• Option of choosing how to communicate with
  representatives at Kendalls
• In Store
• Via-Email
• Over the Phone
• Online

23
LIVE CHAT

• Qualified sales associates will be available on
  site with a 24 hour live chat to accommodate the
  Kendalls shopper worldwide
• Live chat is intended to
• Stimulate the in-store experience
• Provide a one-of-a-kind online experience that
  the name Kendalls is synonymous with
• Qualified associates for live chat posses
  following skills
• excellent selling experience
• superior product knowledge
• exceptional fashion know-how

24
LIVE CHAT

• Customer initiated- each customer must
  voluntarily select to engage in a live chat with
  an online personal shopper
• Services Include
• Fashion Advice
• Styling Assistance
• Complete Wardrobing
• Color Analysis- what colors suit you best
• Purchase Analysis What other items will also
  work with the purchased or selected items

25
LIVE CHAT
26
CUSTOMER PROFILE

• Customer profile enables our customer to
  continuously benefit from their Kendalls
  experience
• Consists of the following
• purchase information
• previously viewed items
• live chats history
• current trends related to lifestyle
• Online profile allows customers
• to keep track of reward points
• loyalty programs
• communicate likes and dislikes of merchandise

27
CUSTOMER PROFILE SIGN UP
28
MODEL ME

• Provide customizable, virtual models that you can
  see your clothing on called Model Me
• 3-D fashion simulator that will allow virtual
  modeling and coordination of clothes
• Models shaped of different body shape
• Provide customers a better understanding of what
  the product will look like together
• Similar to entering a dressing-room without
  leaving your home or computer
• The process
• Register
• Go through our step by step process of selecting
  body type
• Try some of your favorite clothing picks on your
  model to get a better idea of how it will look on
  you!

29

• Step 1 Gender
• Step 2 Age group (Juniors or Adult)
• Step 3 Choose the model height and weight
• Step 4 Choose the Body shape most like your own
• Step 5 Pick you hair style and color
• Step 6 Save your model and shop online for your
  favorite clothing!
• Step 7 When selecting items you will be able to
  virtually it on the model and see it from all
  different angles!

30
ON-LINE DRESSING ROOM
31
IT GOALS

• Provide an easy-to-navigate website with
  innovative features and a powerful search
  function
• Centralize all communications between stores and
  corporate/regional offices onto one software
  platform

32
THE SEARCH FUNCTION

• Search function is top priority
• According to PricewaterhouseCoopers, 70 of
  visitors use a web site's search engine
• 43 stated that it is the most important feature
  on a site
• Keep track of the search history and implement a
  recommended products function that suggests
  relevant items based on the search history

33
CUSTOMER SUPPORT

• A mixture of online and offline customer support
  options
• FAQ's
• Email
• Phone
• Fax
• Real-time online support
• Chat-line between customer support associates and
  customers available 24/7

34
MAXIMIZING WEBSITE TRAFFIC

• Launch a Google Adwords campaign
• Pay a small fee for each click that directs a
  customer to our website
• Display ads with our company logo as well as
  current online and store promotions

35
COMMUNICATION

• To maximize efficiency all stores should update
  current inventory electronically at the central
  website
• Online channels allow store managers to
  communicate directly with other stores
• E.g. Stores may need to place requests for
  products from another store
• Website keeps track of sales data from both
  online sales and in-store sales using the website
• Data can be used to develop new strategies to
  improve sales and better estimating the quantity
  of each product to maintain in inventory

36
FIXED VARIABLE COSTS

• Fixed Cost
• Designing the original website
• Focus on the search function
• Negotiating PayPal partnership
• Implementing security software to prevent
  identity theft and hacking
• Microsoft Commerce Server Enterprise Edition
  20,000 plus additional fees for required
  software
• Variable Costs
• Salaries of web design professionals,
  professional bloggers
• Changing the template of the website occasionally
  to keep customers refreshed
• E.g. Halloween theme, Christmas theme, etc
• Google Adwords Pay-Per-Click advertising
• Commissions for affiliate program

37
THANK YOU FOR CHOOSING KENDALLS

• Kendalls strives for the highest customer
  service, so each parcel sent for an online
  purchase is creatively wrapped with a thank you
  letter for your service

38
STATISTICAL FACTS

• 2008 US e-commerce and Online Retail sales
  projected to reach 204 billion, an increase of
  17 over 2007
• Q3 2008 increased online retail sales by 6
• U.S. consumers will increase their online
  spending for retail products and services at a
  12 annual average through the end of 2010

39
ONLINE STORE OPERATIONS

• Inventory system
• Procurement
• Control
• Management
• Pricing
• Distribution
• Staffing
• Customer relations
• Goal Integrated structure

40
VALUE ADDED FEATURES
Departments
On-Line

• Women
• Men
• Juniors
• Baby kids
• Cosmetics
• Shoes
• Accessories
• Jewelry
• Outlets

• Fashion guide
• Store catalog
• Exclusive promotions
• Your account
• Shopping bag
• Customer care
• Store locator
• Site map
• Top Searches

41
FUNDS TRANSFER

• Major credit card
• Apply for store card
• Paypal account
• Consider
• Applicable tax
• Secure checkout
• View account
• Pay bill

42
CUSTOMER COMMUNITY

• Social responsibility
• Environmental sustainability
• Other causes breast cancer, education
• Loyalty rewards program
• Customer care
• 1st time visitor
• How to get around
• Setting up a profile
• Registration
• Benefits

43
LOYALTY REWARDS PROGRAMS

• Rewards Program
• Get online points for
• Shopping
• Joining social networks
• Referring customers through networks
• Advantage Program
• Exclusive offers
• Coupons
• Email alerts

44
EMAIL ADVERTISING
www.kendalls.com
45
PRODUCT DELIVERY

• Shipping returns
• Easy return
• Bring to store
• Mail back by using return slip
• Delivery options
• Order tracking

46
CUSTOMER CONCERNS

• Customer satisfaction survey
• Comments
• Rate items
• Price comparison
• Privacy
• Secured profile purchase history
• Security
• Identity theft
• SSL
• Encryption

47
CAMPUS OUTREACH

• Ambassadors
• Campus events
• Advertising
• Digital kiosks
• Special promotions

48
Our Team Thanks

• Betsy Trobaugh, University of Florida
• Melinda Burke, University of Arizona
• Jerry OBrien , University of Wisconsin
• Erin Armendinger, University of Pennsylvania
• Mary Hinesly, University of Michigan
• Ann Langston, Florida State
• And our excellent mentors
• Mr. Kevin Ertell, Sr. VP Business, Borders
• Heather Barksdale, Director of Store Operations,
  Build-a-Bear
• Mary Lou Benjamin, Macys
• Richard Last, JCPenney
• Kathy Monetti, VP Brand Marketing, American Girl
• Jason Zimmerman, IT, Petco