SAQ

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SAQ

• Presented by
• Delattre Therese
• Groizard Carlos
• Petersen Pablo

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Content

• What is SAQ?
• B2C site
• B2B solutions
• Value creation capture
• Conclusion

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Société des alcools du Québec(SAQ)

• State-owned corporation responsible for the trade
  of alcoholic beverages. (Monopoly) since 1921
• 5500 employees
• 2.4B annual sales(2003) (540M net income)
• 77 Consumers and 23 Permit Holders
• Network
• 30 Express, 290 Classiques, 66 Sélections and 2
  Signature stores
• www.saq.com Web site VSOP System
• 6 SAQ Dépôt stores and 3 bulk wine points of sale.

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50 Mediagrif, 50 SAQ
Globalwinespirits.com Public B2B
SAQ Other Buyers


International Wine Makers
B2C
Customers
Agents
B2B


Permit Holders
Local Wine Makers
SAQ.COM
B2B
B2C
lt.2 of sales
Most purchases
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Net income 1994-2004
Distribution of Selling Price March 2000
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How much goes to IT?
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www.saq.com

• Purpose of site
• Age constraints
• Delivery constraints
• Prices are the same

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B2C-Features

• ABCs of Wine, ABCs of beer, ABCs of Spirits
• Recipes, games, advice
• Promotions
• Links to Clubs Associations
• Extensive list of related sites links Search
  engines
• The Courrier vinicole publication (membership)
• Groceries Convenience Stores Section
• Business-to-Entertainment section
• Gift Certificates
• Gift Shop
• Business receptions ideas

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Measures of Success

• Surveys Customer complaints
• 9000 visits daily growing
• The Courrier vinicole publication 2000 members
• SAQ e-Newsletter 115,000 users
• 1500 orders/week _at_ 93 efficiency

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Sites Comparison B2C
SAQ.com PAWine.com Wine.com
Ownership State owned State owned Private retailer
Products 3,000 labels 55 countries Over 1000 wines 2500 labels Domestic Intls
E-catalogue Yes Yes Yes
Registration Required Required Optional
Return policy 30 days 30 days 30 days
Customer Service Phone e-mail Phone e-mail On-line specialists available
Delivery service Canada Post 3 options 3 5 days delivery Free delivery gt50 UPS 2 days delivery Free ship to liquor store of choice in PA UPS, FEDEX, DHL 7 - 10 days delivery Max 24 bottles for 12 Sates
Order tracking On-line throughout delivery On-line 24 delay tracking
Market QC, Canada PA, USA 30 States in USA Japan
Special features Wish list program e-Newsletter Courier Vinicole Outlets link Wine connection program (sampling) Wish list program e-Newsletter Party planner
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Business to Business

• One private (SAQ-B2B) and the other one public
  (Global Wines and Spirits GWS).
• Globalwinespirits.com
• 5 languages
• Call for tenders
• Spot market place
• Catalogues
• Private extranets
• File management/conversion

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SAQ-B2B.com

• A private B2B transactional portal owned and
  operated by the SAQs e-Commerce Division
• No membership fees, product list or
  per-transaction fees to pay
• SAQ is the only buyer on the portal
• The SAQ online saves time, effort and money
  (purchasing, shipping, and receiving)

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SAQ-B2B.com (cont)

• The only equipment required is a computer and
  Internet access
• Highest industry standards for security, boasting
  data encryption, back-up support systems and
  firewalls
• Easy-to-use functions (call for tenders,
  logistics mgt, doc sharing, freight forwarders,
  and shipment tracking)

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The questions of added Value

• How does SAQ add value to its core business
  through its web site?
• How is the value created captured ?
• By SAQ
• By Suppliers
• By Customers
• By Taxpayers

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How can a wine retailer add value on-line

• Value added
• Knowledge base
• Category search
• Personalization
• Exchange forums
• B2C
• Up-stream B2B
• Down-stream B2B

• SAQ
• Yes
• Yes
• No
• No
• Yes
• Yes
• No

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Benefits for SAQ of going electronic

• Characteristics
• of the Internet
• Reach
• Flexibility and ease to use
• Personalization
• Interactivity
• Asynchronous communication
• E-Commerce transactions
• B2B

• SAQ application
• benefits
• Restricted to QC
• Benefits customers (no impact on growth)
• Potential not exploited
• Forums not available
• E-mail support provided
• Optional to customers and compulsory to suppliers
• Limited to suppliers

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Creation of value

• Reduction of transaction costs (relative low
  importance)
• Accessibility of knowledge base to customers
• Products
• Prices
• Retail stores data
• Convenience of home deliveries to customers
• Certainty of product availability at retail
  stores
• Electronic transactions with suppliers (B2B)

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Increased process efficiencies due to systems
integration throughout the Supply Chain

• On line E-Commerce transactions linked to SAQs
  ERP system
• Suppliers integration via
• B2B portal (transactional via EDI)
• Global Wine Spirits portal
• PRP (Planned Replenishment Model) to be
  implemented

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How is the created value being captured?

• By SAQ
• Enhancements achieved through site dont play as
  a differentiating factor
• Cost reductions obtained not even quantified
• Market Captured and limited to QC
• Growth of market in Quebec not a government
  priority
• Limited cannibalization from outlets
• Promotion of site self restricted

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How is the created value being captured?

• By SAQs suppliers
• Increased efficiency through electronic
  transactions
• Improved logistics
• Access to on-line sales information (overnight
  updates)
• Close communication on promotional activities
  (through agents)

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How is the created value being captured?

• By SAQs customers
• Access to knowledge base and specialized
  consulting services
• On-line ordering convenience
• Home delivery service (flexible service optional)
• Access to on-line information on inventories at
  outlets
• 17/5 Call center (complementary info.)

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How is the created value being captured?

• By taxpayers (as stakeholders)
• Transparency On-line access to all information

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Conclusion

• Small part of a larger supply chain integration
  strategy
• Some products are not easily or desirably sold
  online
• The SAQ is using the web technology to complement
  its service to the consumer and to the suppliers
• Whatever time is saved from buying online is time
  to be used to savor the wine!

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THANKS !