strategy and case studies

ONLINE VS. OFFLINE

DIGITAL BATTLEGROUNDS

THREE FRONTS IN ONLINE RETAIL DEVELOPMENT

SOURCE: iConsumer 2012 McKinsey

ONLINE VS OFFLINE MARKETSHARE

WOULD YOU WANT TO SHOP OLD SCHOOL AFTER PANDORA OR SPOTIFY?

REMEMBER BOOK STORES?

…BUT THERE ARE CERTAIN PRODUCTS YOU STILL WANT TO TOUCH AND FEEL.

CUSTOMER AQUISTION AND RETENTION

CATEGORY DEVELOPMENT

CUSTOMER EXPERIENCE

CUSTOMER PROMISE

EXCEL AT THE FUNDAMENTALS OF E-COMMERCE

MINDSETS OF THE ONLINE SHOPPER

IDEAS

SIMPLIFIEDINFORMATION

PERSONALIZEDRECOMMENDATIONS

NEWESTPRODUCTS TO SAVE TIME

I NEED…

$61B$10.6B

$6.6B

$5B

TOP ONLINE RETAILERS BY SALES REVENUE – CAN YOU GUESS?

IN SUMMARY - IMPLICATIONS

PROTECT

GROW

GROW

EXPLORE

GROW

SOURCE: iConsumer 2012 McKinsey

PDMI PROGRAMS

EXPLOREGROW

CONNECTED LIFE

EDLP BROADBAND ERC REFURB

FUTURE AUTOMOTIVESITE EXPERIENCE STRATEGY

KIDS DIGITAL – XO TABLET PD

CONNECTED SERVICES

PERSISTENT PRESENCE THROUGH STRAIGHT TALK

WALMART FIT SUBSTANTIATION PROGRAM

PDMI CASE STUDIES - CONNECTED LIFE

KIDS DIGITAL: XO TABLETBRIDGING THE EDUCATION GAP

• The Kindle isn’t a book. It’s a bookstore.

• We are obligated to link our credit cards to Apple.

• Selling an experience and a window into a world of content.

• Big screen, big capabilities, big app store, big storage

• Big investment in design + build quality.

• Big investment in partnerships

• Specialized devices that are designed for specific uses (like watching movies and reading books)

• Smaller function set, niche markets.

• It does one thing really well.

• Develop tablets at a compelling price, but that offer all of the high-end usability and features that they offer today,”

• Danger of falling into differentiation on price only. The price wars begin.

go BIG go ( small ) go ¢heap

PDMI CASE STUDIES – KIDS DIGITAL STRATEGYQ4 2011: The tablet market explodes. How do we get in the game?

"The razor toothed piranhas of the genera serrasalmus and pygocentrus are the most ferocious freshwater fish in the world. In reality, they seldom attack a human”Elliot Nicholls, a 17-year-old from Dunedin, New Zealand has set a new record for speed texting without looking at the screen - 45 seconds.

Digital AppendagesKids lifestyle = digital devices

KGOY - Kids getting older younger Ipads and smartphones are replacing traditional toys

Amplified reality –Physical and digital worlds converge

Digital dexterityTheir digital skills are shaping the Future of technology

2. 1.

3. 4.

PDMI CASE STUDIES – KIDS DIGITAL STRATEGY – MACRO TRENDS

Designed for an adult - made for a child – kids and parent mode functionality.

Spill-proof and shock proof cover included in the tablet (Yves Behar design)

The only dual language tablet with apps & content in English and Spanish

Special XO AppsStore: safe apps environment curated by OLPC

100 free selected books available for different target ages

Price $149 ($2 of every sale will be donated to an educational charity)

Avg of 4.5 stars on Walmart + AmazonSince the launch on July 16th 2013.

PDMI CASE STUDIES – PARTNERSHIP WITH OLPC – LAUNCH DATE 7.16.13

The tablet was the flagship retail merchandise strategy for OLPC.


PDMI: PRODUCT DEVELOPMENT + MERCHANDISE INNOVATION

CONNECTED LIFE.

Explosive growth from 10.2M automated homes in

2012 to 22M in 2013Now is the time!

Consumers want a full solution, connected

ecosystem

130M US Homes = Significant Opportunity to

Walmart

High adoption of smart phones with younger consumers. Appeal to both home owners and renters

Security Monitoring

Automation

Health &WellnessEntertainment

EnergyManagement

Average number of connected devices will jump from 5 in 2012 to 15 in 2015

Source: CEA – Consumer perspective on home automation white paper

Smarthome Devices: Do-It-Yourself (DIY) Solutions Drive Adoption in 2013


PDMI CASE STUDIES - CONNECTED LIFE – PHASE 1 LAUNCHED 6.24.13

PREPAID BROADBAND

JUNO BROADBANDEXCLUSIVELY @ WALMART

ROUNDING OUT OUR SERVICES BUSINESS

SERVICES OVERVIEW

WIRELESS MOBILE

MIFI HOME PHONE

IN HOME BROADBAND

ENTERTAINMENT(CONTENT + GAMING)

STRAIGHTTALK

FAMILY MOBILE

STRAIGHT TALKMIFI

INTERNETON THE GO

BASIC TALK

JUNO HOME BROADBAND

???

CURR

ENT

PLAN

NED

FUTU

RE

1/3 NUMBER OF US HOUSEHOLDS WITHOUT HIGH SPEED BROADBAND

BARRIERS & PAINPOINTS

DEVICES ARE TOO EXPENSIVE

SERVICE IS TOO EXPENSIVE

NOT INTERESTED IN LONG TERM CONTRACTS

US Home Broadband market size100B

PDMI: PRODUCT DEVELOPMENT + MERCHANDISE INNOVATION

PDMI CASE STUDIES – PREPAID BROADBAND

PDMI CASE STUDIES – PREPAID BROADBAND

ANTICIPATED LAUNCH Q4

PREPAID BROADBAND

Pricing $15/ 7 days or $45/30 days

$90 / 10Gigs $50/5Gigs Hotspot + 7 Gigs = $149 Each additional Gig is $14

$60 / 10 Gigs $50 / 10Gigs

Non expiring or monthly plans

Monthly Monthly Monthly Non expiring $10/10Gigs at 1.5Mbps 1 free Gig/month at 4g Speeds

Monthly

Speed 3Mb / 768 Kbps 4G / LTE 4G / LTE 4G / LTE 4G/LTE 4G/LTEHardware $69.95 $99 $150-170 Included in starter

kit price.$99 $79

Comments Offering service to

those who are not currently customers or delinquent customers who are about to have their service shut off. Slowest service among competition.

$36 one time activation fee

Competes with our Interent on the go plan $45/3Gigs

Additional $4/month for rollover data plan. Prepaid set up as recurring charges until you cancel your service. 10Gig plan has slow speed.

Best price per Gig. Available only at Walmart

MARKET SIZE: $7 BILLION 5% MARKET SHARE IS A $490M OPPORTUNITY

PDMI CASE STUDIES – UPCOMING STRATEGIES – WALMART FIT

An additional Walmart Supercenter per 100,000 residents increases

average BMI by 0.25 units and the obesity rate by 2.4 percent.

What are strategies we can employto improve the lives of our customers

and help them live better?

THANK YOU!QUESTIONS OR COMMENTS? [email protected]

strategy and case studies

Documents