Lecture 3:WEBBusinessesB2B B2C: Lecture 3: WEB Businesses B2B B2C


Leaders: Leaders No.1- Travelocity.com Sabre Holdings Corp.'s Travelocity site will merge with another online travel leader Preview Travel to form the largest online travel company. The new company, known as Travelocity.com, have 17 million members and more than $1 billion in 1999 travel sales.


Leaders: Leaders No. 2 – Expedia of Microsoft Corp. Others Priceline : http://www.priceline.com Internet Travel Network : http://www.itn.com CheapTickets: http://www.cheaptickets.com


Services Provided Online : Services Provided Online Ticket Booking Airplane ticket, Train ticket, Cruise ticket… More choices Better deals Greater convenience Car Rental Accommodation Reservation


Competitor Mapping to Selected Segments for Priceline: Competitor Mapping to Selected Segments for Priceline Copyright © 2002 by Marketspace LLC


Priceline.com Overall Opportunity Assessment: Priceline.com Overall Opportunity Assessment Positive Factor Neutral Factor Negative Factor Competitive Vulnerability Technical Vulnerability Magnitude Unmet Need Interaction Between Segments Likely Rate of Growth Technology Vulnerability Market Size Level of Profitability of The overall business opportunity can be assessed by rating all the factors together as a whole and identifying the impact of each of them. Copyright © 2002 by Marketspace LLC


Microsoft CarPoint Example: Microsoft CarPoint Example MSN CarPoint identified an opportunity to leverage the Internet to deliver customer value in the car industry The retail car-buying process was frustrating and inefficient: Little information available to the consumer Bargaining with salesperson viewed as a hassle Long process overall MSN CarPoint selected two primary target segments for its service: “The intimidated by the process” “The information seekers” MSN CarPoint could leverage Microsoft’s expertise in software development, the Microsoft brand name and its multitude of online properties Competition was getting fierce with more and more online car services entering the market But the financial opportunity was large: 66% of new car buyers used online services in 2000 In 1996 the first version of CarPoint was shipped By 1998, CarPoint was driving $5 million in car sales a day – COMMENTS WHERE IS IT IN 2002? Copyright © 2002 by Marketspace LLC


The Customer Decision Process: The Customer Decision Process The “Customer Decision Process” framework helps analyze and discover customer needs Prepurchase Purchase Post-purchase Customer Decision Process Car-Buying Decision Process EDMUNDS.COM – CHANNELS ISSUES??? Copyright © 2002 by Marketspace LLC


Competitor Profiling — MSN CarPoint: Competitor Profiling — MSN CarPoint MSN CarPoint Information Search Evaluation of Alternatives Execute Purchase Finance/Insurance Repair and Service Car Accessories and Gifts Enthusiasts and Car Clubs Used Cars Edmunds.com Cars.com Kelley Blue Book AutoTrader.com DealerNet.com AutoAccessory AutoNet The Auto Channel Carlender.com PeopleFirst.com AutoWorld CarPrice.com CarParts.com ALLDATA.com Direct Competition Indirect Competition Autobytel.com CarsDirect.com eBay GE Capital GEICO Allstate Ford Honda The Pep Boys Strauss Discount Auto Road & Truck Automobile Magazine Copyright © 2002 by Marketspace LLC


Egg Diagram for 1-800-Flowers.com: Flower / Gift Decision Process Need Recognition Search for Ideas and Offerings Purchase Decision Message Selection Post-Sale Support and Perks Education on Flowers and Decoration Egg Diagram for 1-800-Flowers.com Gift reminder service Holiday specials Everyday celebrations suggestions Special occasion suggestions Gift guru Favorite gifts Gift frequency Gift impossible Gift baskets Corporate gift services Ideas and Information Post-Sale Support Product price Product picture Product description Delivery information Delivery availability Gizmo fully-animated greeting cards Physical cards in gifts Order receipt e-mail eQ&A online customer service FAQ Customer service inquiry form Perks Miles earned with flower purchases Free gifts Discounts at AOL & BN.com with flower purchases Member specials “Care and handling” “Do it yourself” Special events and educational workshops held at stores Floral ideas Garden ideas Home ideas Gift ideas Gourmet ideas Store locator Recommendations by budget Bestsellers Evaluation of Alternatives Gift Recommendations Shopping basket E-commerce transaction Special shopping features Delivery outside US 1-800-lasfloras.com Product Offering Copyright © 2002 by Marketspace LLC


1-800-flowers.com Resource System: KEY 1-800-flowers.com Resource System Broad Assortment of Gifts Customer Service AOL MSN Snap Widespread, Easy Access High Quality of Flowers Telephone Online Franchise Stores Catalog Starmedia Gift Recommend- ations Address Book Gift Reminder Garden Works Plow & Hearth Great Foods = Activities & assets = Capabilities = Core Benefits Customer Service Centers Integrated online offline Systems 3,000 Affiliates Personalization Capabilities Rich Content Third-Party Contractors Stores BloomNet Network Fulfillment Center Copyright © 2002 by Marketspace LLC


1-800-Flowers.com Resource System Online and Offline Integration: 1-800-Flowers.com Resource System Online and Offline Integration Broad Assortment of Gifts Customer Service AOL MSN Snap Widespread, Easy Access High Quality of Flowers Telephone Online Franchise Stores Catalog Starmedia Gift Recommend- actions Address Book Gift Reminder Garden Works Plow & Hearth Great Foods = Online Activities & Assets Customer Service Centers 3,000 Affiliates Personalization Capabilities Rich Content Third-Party Contractors Stores BloomNet Network Fulfillment Center = Offline Activities & Assets Integrated Online and Offline Copyright © 2002 by Marketspace LLC


1-800-Flowers.com Egg DiagramOnline and Offline Integration: 1-800-Flowers.com Egg Diagram Online and Offline Integration Offline Product Offering Special events and educational workshops held at stores Prompts on toll-free number recording Suggestions from CSRs* in-store and via phone Prompts on toll-free number recording Suggestions from CSRs* in-store and via phone Brochure Suggestions from CSRs in stores via phone Brochure Information from CSRs in-store and via phone Brochure Purchase in-store Purchase via phone In-store specials Specials offered via phone *CSR = Customer service representative Flower / Gift Decision Process Need Recognition Search for Ideas and Offerings Purchase Decision Message Selection Post-Sale Support and Perks Education on Flowers and Decoration Gift reminder service Holiday specials Everyday celebrations suggestions Special occasion suggestions Gift guru Favorite gifts Gift frequency Gift impossible Gift baskets Corporate gift services Ideas and Information Post-Sale Support Product price Product picture Product description Delivery information Delivery availability Gizmo fully-animated greeting cards Physical cards in gifts Order receipt e-mail eQ&A online customer service FAQ Customer service inquiry form Perks Miles earned with flower purchases Free gifts Discounts at AOL & BN.com with flower purchases Member specials “Care and handling” “Do it yourself” Floral ideas Garden ideas Home ideas Gift ideas Gourmet ideas Store locator Recommendations by budget Bestsellers Evaluation of Alternatives Gift Recommendations Shopping basket E-commerce transaction Special shopping features Delivery outside US 1-800-lasfloras.com Online Product Offering In-store customer service Customer service on toll-free number Select card in-store Select card via phone Copyright © 2002 by Marketspace LLC


1-800-flowers.com Activity System: 1-800-flowers.com Activity System Both Online Offline Key Broad Product Line Strategic Alliances Online Gift Center Multiple Customer Contacts Nationwide Presence BloomNet Network Florist Participation Company Offline Stores Company Franchise Stores Introduction of New Product Categories Electronic Greeting Cards Gift Recommendations Gift Reminder Program Address Book BN AOL Affiliate Programs Online In-Store Telephone MSN Alliance With Distribution Carrier Partnership With Associated Product Lines Copyright © 2002 by Marketspace LLC


1-800-flowers.com Value System: 1-800-flowers.com Value System Broad Assortment of Gifts Reasonable Prices AOL MSN Snap Widespread, Easy Access Fresh Flowers Telephone Online Stores Affiliates Starmedia Gift Recommend- actions Address Book Gift Reminder Garden Works Plow & Hearth Great Foods = Activities & assets = Capabilities = Core Benefits Copyright © 2002 by Marketspace LLC