MARKETING MANAGEMENT-II CASE STUDY ON Clearly: Organizing for Omnichannel Retailing SUBMITTED BY- GROUP – 07 SACHIN RAJPUT – 025/2020 RIYA ARORA – 030/2020 ANSHU SETHI – 041/2020 NEERAJ AGARWAL042/2020 ANIRURDH SINGH – 045/2020 This study source was downloaded by 100000851806347 from CourseHero.com on 09-23-2022 21:03:27 GMT -05:00 https://www.coursehero.com/file/84311437/Clearly-Case-Studydocx/ Question 1 How can clearly achieve its sales objective? Answer The core objective of sales of clearly is to increase the online sales beyond the existing 4% of industry sales & bring the remaining 96% (10.46 million) of the consumers to the online outlet of retailing to gain traction. The quantifiable target is to achieve $500 million by 2018, profitably. - Adopt and refine an integrated omnichannel marketing model-explain difference b/w omnichannel and multi-channel Multichannel marketing Omnichannel marketing Consists of various channels of Consists of various channels but engagement like retail brick and with tight integration of mortar store, mobile store, social information amongst all the media offered channels for retail. All channel is individually distinct The channels are in from each other in the sense that synchronization with each other they have their own objectives and possess uniformity in their pertaining to goals and strategy. goals and strategy. These various outlets for customer This increases customer engagement sometimes adversely engagement and offers desirable affect the customer shopping value addition to the customer experience which creates brand loyalty. Due to focus on different create Ultimately offers customer distant experiences for the customer centricity consistent experience, resulting in misinformation and and flexibility. miscommunication. Clearly in this context clearly was not able to integrate their omnichannel marketing retailing with the intended efficacy as evident by the slow rate of growth of the online sales at only 4%. The company can try to showcase their latest collections for display to customers and individual ECPs. They could try setting up innovation hubs to identify the latent and secret needs of the customer and offer new design opportunities. - Absence of collaboration with ECPs who held market share of 50%- leveraging advantages of ECPs would benefit the sales of Clearly’s optical products raising brand awareness and market penetration. Also, a collaborative sprit would turn out to be a mutually beneficial alliance for both Clearly and individual ECP’s. To highlight the strengths and limitations of ECPs Strengths Limitation Individual ECPs possess An intrinsic limitation of ECPs is the approximately 50% of the market lack of capability pertaining to share for overall vision care. online retailing channel and the inability to expand their conventional business model. ECPs were the principal purpose of Although the ECP’s possessed a contact for the eyewear buyers in the huge market share, they were split optical environment, directing eye into small groups where most of assessments and giving them were not able to operate with prescriptions. They possessed profits in context to mass consumer loyalty and were favored merchandizing houses. Walmart and for end-to-end service solutions Costco offered significant threats to through clients. ECPs likewise the business operations of ECP’s as This study source was downloaded by 100000851806347 from CourseHero.com on 09-23-2022 21:03:27 GMT -05:00 https://www.coursehero.com/file/84311437/Clearly-Case-Studydocx/ dominated the primary distribution channel for the industry, representing 73% of the eye care patients by volume, around the world. Their competitive advantage was the depth of the relationship built through tangible and direct interaction with the customer. This gave the customer a high rate of satisfaction and enable them to leverage the touchpoints and experience of the customer. they were able to channelize their huge scale to lower their product offerings and offer an efficient retail ambience. To explicate this collaboration between ECPs and Clearly, we suggest a model where ECPs can function as independent service providers with reference to conducting eye examinations and prescriptions and source their housing and retailing through Clearly online customer on walk-in visits. Clearly would benefit by gaining a vast network of ECP outlets which would enable them to replicate the advantages offered by ECPs and win costumer favor. In return the ECPs would benefit by gaining access to Clearlys online data capabilities to refine their products and services, catering to attract millennials who are tech-savvy and desire flexibility. Clearly by assessing the segmentation of their customers based on demographic and psychographic attributes can b pinpoint their offerings to an audience who is young, tend to be living in urban cities and are young millennials holding white collar jobs. They could try to position their product lines by launching social media campaigns and endorsing their advertisements by social media influencers to target the identified customers. They should focus on the defining the perception of their products seeming to match the latest fashion trends in spectacles and contact lens to gain traction in customer visibility and generate conversions in sales. Question 2 How do Clearly's multiple channels compare with respect to foot traffic and sales? Answer Even after updated technology and providing better visual appeal to the product, clearly was not able to attract a high number of customers. Its market share was just 4%, indicating that 96% of the customers are left unexplored. ECP’s maintained a direct relation with their customers and because of the functional benefits provided by ECPs, customers were also attracted to them. Clearly need to identify and understand the needs of the customer, which their retailers were lacking in. These all factors gave ECP’s an upper hand and which had a compounding effect on footprint and sales Steps taken by clearly to increase its customer base: • Inauguration of 3 stores at manila, Tokyo, and Vancouver This study source was downloaded by 100000851806347 from CourseHero.com on 09-23-2022 21:03:27 GMT -05:00 https://www.coursehero.com/file/84311437/Clearly-Case-Studydocx/ • After identifying the needs of customer, clearly should work on providing functional activities like after sale services of repair and cleaning which will attract more customers • Collaboration with ECP’s will be a big step by clearly for the benefit of both as clearly will get a customer base and ECP’s will be updates by the technology and can easily manage their data by using cloud services, billing, operations, etc. Question 3 Did customers who used multiple channels shop more frequently and /or make more purchase? Were these customers more profitable than those who used the online channel alone? Answer 3 Products offered by retailers are differentiated based on several characteristics – not only reliant upon product characteristics but also consumer segment characteristics. Because of this, retailers are expected to offer a wide range of the same product category and this is not possible only if we operate at one channel. Some of the consumers of clearly opticals which shows that we need to keep a wide variety of product range include: The buyer for clearly organization for omnichannel retailing is not necessarily the group that consumes he product, but rather purchases the product from clearly organizing for omnichannel retailing to either distribute further, retail it, or even consume it. Hypermarkets and supermarkets, as well as independent retailers and distribution agents to end consumers are the core buyers for clearly organizing for omnichannel retailing that make up the market’s volume. Supermarkets and hypermarkets, along with many food chains that are concentrated, which increases the buyer power. Products are stocked with buyers and retailers by Clearly Organizing for Omnichannel Retailing based on consumer demand. Research shows that people spent an average of 4% more on every shopping occasion in the store and 10% more online than single-channel customers. conducting prior online research on the retailer’s own site or sites of other retailers led to 13% greater in-store spending among omnichannel shoppers. Even more compelling, with every additional channel they used, the shoppers spent more money in the store. For example, customers who used 4+ channels spent 9% more in the store, on average, when compared to those who used just one channel So, Yes, we can say that customers who shop through multiple channels shop more frequently and make more purchases as it is also visible from the data given in table below that at least 90% of consumers ordered online or through call centers as compared to people who buy from stores. The reason being increasing needs of people and consumers can shop anytime while being at their homes or at marketplace making products easily available. This study source was downloaded by 100000851806347 from CourseHero.com on 09-23-2022 21:03:27 GMT -05:00 https://www.coursehero.com/file/84311437/Clearly-Case-Studydocx/ Retail sales through digital channels (including mobile sales) increased by a massive 23% in 2019. Much of these gains have gone to online retailers. Amazon is the biggest beneficiary, now accounting for 26% of all online retail sales. The omnichannel strategy hinges on the idea that providing a seamless shopping experience in brick-and-mortar stores and through a variety of digital channels not only differentiates retailers from their peers, but also gives them a competitive edge over online-only retailers by leveraging their store assets. The only difference between online channel retailing and omnichannel retailing is that online only retailing can make the sales process a little harder for our customers. For example, if our customer orders online, they must wait for the item to be shipped to their home. If this were an omnichannel retailer, they could order online and pick it up right away in the store, which is a strategy called buy online, pick up in-store (BOPIS). Therefore, we can also say that these consumers are better off than online channel retailers. Question 4: Are there any synergies between Clearly’s online and Brick-And-Mortar stories? If so, what evidence can you provide of such synergies? Answer. No, there are no synergies created between Clearly’s online & Brick and Mortar stores The motive of the company was to increase the customer interaction which only happened when the patients visited offline stores. Initially company does not expect to make sales at the store, but as it happened sales at the stores were complimenting online sales and the new customers first approached through the offline stores and 40% if the existing customers visited online store. This study source was downloaded by 100000851806347 from CourseHero.com on 09-23-2022 21:03:27 GMT -05:00 https://www.coursehero.com/file/84311437/Clearly-Case-Studydocx/ Clearly had set a target of achieving sales of 500 million dollars by 2018. Being positioned as a fashion accessory and eye wear products it was witnessing only 4% of the market share. The company also launched promotional offers like First Pair Free (FPF), where customers only paid for shipping and Handling charges The main reason for more foot fall in the offline store was ECP’S service as the customer would get the eye test done free of cost or at minimal charges so they use to buy the glasses from the store only as they could easily check what types of glasses suits them and enabled them to check the quality of the product. Inferring from Exhibit 6, it is evident that they were able to achieve this motive of theirs, which earlier was vested with only ECP’s. The company tried creating a win-win situation for themselves as well as the ECP’s by: Linking of the business platform of individual ECP’s with customers from Cleary’s digital platform Clearly will also give ECP’s access to its ongoing innovations in optical technology Clearly would provide turnkey solutions to individual ECP’s This study source was downloaded by 100000851806347 from CourseHero.com on 09-23-2022 21:03:27 GMT -05:00 https://www.coursehero.com/file/84311437/Clearly-Case-Studydocx/ Powered by TCPDF (www.tcpdf.org)