hmv - school project
DESCRIPTION
For school project.TRANSCRIPT
![Page 1: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/1.jpg)
![Page 2: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/2.jpg)
Introduction• Objective of Report & Background Information of HMV• Existing Sales Platforms• Rationales & Justification Behind Multi-Channel Retailing• Current & Changing Retail Environment
SWOT Analysis• Strengths, Weaknesses, Opportunities, Threats
Multi-Channel Retailing• Unique Benefits of Each Sales Channel• Synergy Created• Issues of Multi-Channel Retailing
Retail Mix Strategy• Target Market, Retail Mix• Survey Results• Conclusion & Recommendations
Content Page
![Page 3: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/3.jpg)
Objective of ReportTo study and analyse HMV, a multi-channel retailer, its target market and retail mix, in relation to the retail scene in the lifestyle industry, current market trends and influences, and the growth of the worldwide trend of e-tailing to support traditional brick and mortar businesses, and to find out the opportunities and threats facing HMV.
![Page 4: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/4.jpg)
Introduction to HMV• International Retail Chain from the UK• Sells Lifestyle Products like Books, Music,
Videos and Games• Found in London, England on 20 July 1921• Headquartered in Maidenhead, Berkshire
in the UK• Today, HMV is a well-known trademark in
the world with operations worldwide• In Singapore, HMV also offers movie
merchandise like T-shirts, and soft toys to differentiate itself from others in the music industry
![Page 5: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/5.jpg)
Existing Sales Platforms
• Physical StoresIn Singapore, HMV only has 1 physical outlet, which is located in 313@Somerset, #04-23/24, in the prime shopping district.
• Digital StoresHMV has 3 localized e-tailing websites in the United Kingdom, Hong Kong and Canada. However, the UK website, hmv.com, ships to 148 countries, including Singapore.
![Page 6: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/6.jpg)
Rationales & Justifications behind Multi-Channel Retailing
• Physical Store – Browsing, touch and feel attributes; social interaction
• Online Store – Some products do not require touch and feel attributes e.g. concert tickets
• Attract new market and increase sales
• Reach out to new consumers while satisfying existing consumers better
![Page 7: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/7.jpg)
Current & Changing Retail Environment
• New & Innovative Retail ConceptsE.g. Venue VBOX, Digital Billboards and
Self-Checkout Counter• Increase in Use of Technology• Physical Shops Venture into E-TailingE.g. The Face Shop, Kinokuniya• Increase in Pace of Life• Increase of Shopping Malls• Increase in Purchasing Power of
Singaporeans
![Page 8: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/8.jpg)
VBOXPortable store
in a shipping
container
![Page 9: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/9.jpg)
S.W.O.T. AnalysisSpecialized Marketing Expertise
One-Step Solution for Multimedia Lovers
Innovative Products
Badges Autographed by Celebs With the Sale of CDs
Good Location
Prime Shopping District means High Human Traffic
Consumer-oriented Processes
Preview of CDs and Movies in Physical Outlets
Partnership Partnered up with Cinema Operator, Curzon, to offer a Differentiated Cinematic Experience
![Page 10: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/10.jpg)
S.W.O.T. Analysis
Lack of Marketing
Marketing Efforts Only Evident Through Online Mediums and Word-of-Mouth
Limited Locations
Located Exclusively in Prime Shopping Districts
![Page 11: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/11.jpg)
S.W.O.T. AnalysisVenture into New Market Segments
Mainly Focused on Music and Movie MarketsNot Enough Game and Book Specialities
More Advertising to Create Brand Awareness
Stiff Competition in the Industry
Advertising Makes Consumers Take Note of Brand Name
Increase Number of Sales Channels
Only 1 Physical Outlet in Somerset, Making it Inconvenient for ConsumersSet up More Localised E-Tailing Websites so that Products Reach Consumer s Faster
![Page 12: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/12.jpg)
S.W.O.T. AnalysisPrice Wars That CD Shop Offers Bundled CD
Promotions like 3 CDs for $49.90Innovation from Competitors
New Disc Village – Listening Jacks with High Audio QualityCD Hut Sells Remastered CDs
Pirated Music
Illegal Digital Downloads from the Internet
Online Retailers
Trend to Buy Music from Online Retailers like iTunes, AmazonWould Not Think of HMV First When Purchasing Music Online
![Page 13: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/13.jpg)
Unique Benefits of Each Channel
• Physical stores• E-tailing• E-mailing• Call centre• Smartphone applications
![Page 14: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/14.jpg)
Synergy Created from Multi-Channel Retailing
• Check consumer’s satisfaction levels through online surveys
• Overcome limitations that physical channel alone cannot offer
![Page 15: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/15.jpg)
Issues of Multi-Channel Retailing
Maintain Brand Image across Channels
Constantly keep websites up-to-date with the newest product offerings
Merchandise Assortment Offered in Each Channel
Online channel offers wider variety of products than its physical counterpart
Pricing across Channels
Some products on its e-tailing website cost cheaper due to competition from online retailers
Centralized Customer Database
Difficulty in keeping up with the widening consumer database
![Page 16: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/16.jpg)
Target Customers
• Market segmentation• Psychographic/Behavioral/Age• Aged 13 and above• Deep assortment of products• Caters to trend-conscious with
other merchandise• Gaming/Book markets
![Page 17: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/17.jpg)
Retail MixMerchandise• Breadth and depth• Specialty store focusing on lifestyle format
(music/movies)• Mall-based retailer• Up-to-date websiteMerchandising Pricing• Priced lower• No price reductions on new stocks (weekly)• Product bundling on old stocks• Increase profits• Lower inventory risk
![Page 18: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/18.jpg)
Advertising & Promotions• No mainstream media• Sales promotions online• In-store advertising – window displays; off-
shelf promotionsStore Design• Visual merchandising• Gondola shelves • Floor-to-ceiling wall-mounted shelves• Display shelves below cashier• Posters on window displays• Rectangular layout• Locate products easily
Retail Mix
![Page 19: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/19.jpg)
Customer Service• Limited, non-initiativeStore LocationSingapore• Contemporary place that sells on-trend
shopping products• Locals’ and tourists’ favourite districtOther Countries• United Kingdom, Ireland, Australia, USA,
Canada, Hong Kong, Japan and India• Increase international brand recognition
Retail Mix
![Page 20: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/20.jpg)
Survey Results• 82% know of HMV• 52% brought from HMV before48% bought digital music• 44% source Internet for music• 68% prefer hit track over whole
album• 78% want HMV to have more
outlets• 36% rated HMV 3 out of 10
![Page 21: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/21.jpg)
Conclusion• Successful in creating brand
awareness• Retain customer loyalty• Threat from illegal digital market• Offer more differentiated
innovations• More aggressive marketing
campaigns locally• More stores in Singapore
![Page 22: HMV - School Project](https://reader033.vdocuments.us/reader033/viewer/2022061201/5478bd72b4af9f5d348b484d/html5/thumbnails/22.jpg)
Recommendations• More advertising/promotion
activities to create brand awareness• Open more outlets (physical/online)• Improve book/gaming merchandise• Invest more money into online
channel• Same assortment across both
channels• Revise pricing strategy against
competitors’• Save falling sales in physical stores