Mini Case Study (Blog, 3A)

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Sephora 

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The task for week 3 is to write a mini case study  highlighting superior innovation in the business model. Business. A business model captures the fundamental assumptions and any key learnings about a new venture. For example, it might enumerate the company’s core value proposition, targeting customers key resources, and assumed revenue streams which provides a framework for success and overcoming challenges for the company. (“What are some examples of a business model? | Aha!”, 2018)

Sephora is one of the  popular personal care/cosmetic brand, was founded in Paris in 1969 by Frenchman Dominique Mandonnaud. Sephora offers beauty products such as skin care, body fragrance, nail polishes, and variety of makeup products. let’s take a glance at how Spehora used business model in order to gain superior innovation in their business model, how Sephora creates its worth during this extremely competitive and saturated market, and the way its operational model supports this ongoing specialise in innovation through digital technology.  Sephora is one of the best example of adopting changes and walking with new revolution.

One of the reasons why their business model has proven to be so successful worldwide, is due to constantly evolving over time. Sephora created a unique shopping experience for customers by providing the facilities to touch and sample the products before buying which helps promoting strong relationships with the brand and its products. This alternative model of product discovery has been very popular and has allowed the brand to scale globally. (“Sephora, cosmetics, fragrances – Selective Retailing – LVMH”, 2018)

Continuously integrated online and offline shopping experience for the consumer. According to fast company 2018, Sephora has invested heavily in its website that contains educational videos that teach customers how to use different products. In response to these changes, Sephora’s marketing strategy has fully embraced the types of digital media that are already prevalent online. Sephora’s Youtube channel has 690,000 subscribers. Sephora was an early e-commerce player when it launched its first website in 1998. Launching Apps for android and IOS, youtube channels, existing on every social media and paying with advanced technology, The company has focused on a number of different digital initiatives to stay ahead of the competition. Sephora recently launched a  campaign with Facebook’s Collection ads of its normal holiday print catalog, in order to enhance product discovery. Based on user preferences, Facebook’s Collection ads serve variations of 70+ beauty products underneath a sponsored video. in addition, Sephora grasp augmented reality for both in-store and in-app makeup trials. The mobile app allows users to virtually try on makeup. The app added augmented reality features such as the ability to try on lip colors and lashes. (“How Sephora Built A Beauty Empire To Survive The Retail Apocalypse”, 2018)

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Furthermore,  In March 2018, Sephora launched a Europe-focused partnership with Salesforce to help personalise the shopping experience based on consumer preferences, using data on geographic regions, customers’ previous purchases, cosmetic preferences, and more. The partnership has also allowed Sephora to customise its site experience with different languages and currencies to enable a deeper level of personalisation. In November 2017, Sephora launched its app on Google Assistant with features to book beauty services, take quizzes, and listen to influencer-curated beauty podcasts. (“How Sephora Built A Beauty Empire To Survive The Retail Apocalypse”, 2018)

To sum up, surely Company is doing great in market by bringing new ideas and investing time/money in technology which are helping the brand expand to new markets and localise consumers’ shopping experiences. Sephora incorporates a commitment to innovation and excellence in order to sustain in their competitive environment. Sephora wouldn’t be successful if they  didn’t understand digital world.

 

 

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Personal online customer experience

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My personal experience as a customer, evaluating Murrays website. (www.murrays.com.au) on the elements of the framework of the online consumer experience developed by Rose & Hair’s (2011).  Basically it is the ideas of consumer experiences and how its 8 different components impact the overall positive or negative outcome of customer satisfaction. Rose and Hair’s (2011)  framework consists of 9 components which are: information processing, perceived ease of use, perceived usefulness, perceived benefits, perceived control, trust and risk, and enjoyment. (Chaffey & Ellis-Chadwick 2016, pp. 77-78).

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In today’s modern world, e-commerce is considered one of the most efficient ways to conduct online transactions in an effective and instant manner. For any online businesses it is important to understand customers position and their ability to easily browse website. In order to keep customer coming back to re-purchase. To evaluate positive or negative online experience considering Rose and Hair’s (2011)  framework, from of my recent purchase from Murrays website. I have been shopping from Murrays for past 2 years.

Information Processing

Information processing is how a consumer seek all the available information or content of the website that will influence individual in their purchase behaviour. The layout, font size, colour, to the content of the website is very straight-forward and simple  to read and find any information about the company. There is contact information given and search bar located on to top left corner to search up things that customer having trouble finding. Even when I booked tickets for the first time it took only less than 10 minutes to book tickets and all the information regarding my booking was sent on my email on the top they sent you reminder mail on the day of travelling. 

Perceived Ease of Use

Perceived Ease of Use refers to the relates to the use of information technology (business website ) easily and effortlessly. If the company’s website is functional and easy to navigate than customers are most likely to visit because they know how it works and what they trying to do. Murrays website is really easy to use, Anyone with basic IT skills can use their website. On their home page the first thing that will catch attention is “Book a ticket” if you click that it will take you to second page which will have more information on which city they provide service to and if you wanna travel one of them then click to it and it will guide you through to end of transaction. 

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Perceived Usefulness

Perceived usefulness refers to how useful the  business offering is to the me or any potential customers. How useful was website to suits my need/wants? For me the Murrays website is so useful because my family and I often travel overseas from Sydney airport. Therefore we book Murrays coaches frequently. I find Murrays comfortable and easy to travel with them.  As mentioned before they have “search bar facilities”. Moreover the have this tab called ” help & service” which have many other subheading such as enquire online, how to book and frequently asked question which takes you to different links to help you know more and clear any doubts. 

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Perceived Benefits

The perceived benefits refers to the customer’s perspective of receiving any additional benefit from using the digital website. Not just the service/products they provide but more like some kind of reward for using online business. which might include rewards like, free delivery on purchase of $50 or over or sign up and get $20 voucher to spent on the website. This helps building customer relationship and a reason for them to re-ist the website again. Murrays does provide rewards to its customers. They have loyalty club member  where you can sign up and get your sixth ride free. 

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Perceived Control/Skills

Perceived Control refers to an individual capabilities of using digital world effortlessly. Having knowledge of how to navigate online business can boast customers confidence of buying products/service. This is 21st century and majority of people know how to surf online. I am not a big fan of online shopping however I was knowledge enough and very comfortable in using the online booking system as it is much easier than walking in the shop also it saves time.  

Trust & Risk

Trust and risk refers to threats of shopping online as its is hard to trust everything you see online. Not all the websites out there is reliable and trustworthy. People does get spammed online and lose money. Often customer get products different then they order. However it is all about being smart shopper, always do good research of the website ask friends, read reviews and read return policy of the company. That way you can be safe from any spam. Murrays is for sure reliable website, i have being using for so long and never faced any single problem. They also provide premium service where you have to pay few dollars extra for the tickets and the benefit is in case for some reasons you are not able to travel you can claim your money  back. 

Enjoyment

Enjoyment refers to the end results of online customer experience whether it was good or bad. Overall, I had no issue with Murrays. I have always loved my trip with Murray and I would highly recommend the site to anyone who is looking to travel to Sydney or any cities service Murrays provide. and I will definitely be booking my tickets from them in future! 

 

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YOUTUBE VIDEO

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Hey everyone, this is the YouTube video of my recent trip to the Snowy Mountains. The Snowy Mountains are located in New South Wales (NSW). It’s a beautiful place to explore; I absolutely loved it. A trip everyone must experience. I would like to give some tips to the people travelling there for the first time;

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Snow chain for wheel
  • Buy chains for your car at the last petrol station to enter the valley or else you will be fined $300 if caught by police.
  • Put the exact address on your navigator instead of just putting ‘Snowy Mountains’ will take you to the wrong direction and you might be lost because the Snowy Mountains are situated within a broad area and there are different valleys that you could go to.
  • Lastly wear good quality warm attire.

I have used different video editing softwares/apps to put it all together. I hope it was an enjoyable video for the viewers.

The Snowy Mountains have plenty of activities to do such as mountain biking, road cycling, hiking, kayaking, sailing, water skiing and ice skating.

Find out more about Snowy Mountains in the link given below: http://snowymountains.com.au/

Thanks for viewing!

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The five I’s of internet Marketing

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According to HubShout, the 6 I’s of marketing include: Interactivity, Intelligence, Individualism, Integration, Industry Restructuring, Independence of Location. However, 5 I's will be discussing further on my chosen website as per assignment requirement.

1. INTERACTIVITY

Interactivity refers to business that allows customers to interact with each other. customer to business for any enquiry or doubts. in contact with the website and seeking any information required regarding anything. Victoria’s Secret took customer service seriously which can be seen in their website. Such as Victoria’s Secret site is well structured, customers can easily browse the site and for any assistant Victoria’s Secret have customer service tab, contacts and live chat options for any enquiries. in additional they also reply on social media pages to keep in touch with their customers and provide better service.

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2. INTELLIGENCE

Intelligence refers to a technique to collect data from customers for business benefits in a cost-effective manner. Business gains data of customers through activities of customers on the websites and later use that information in implementing new ideas based on data collected via websites. Like other websites Victoria’s Secret too collects customer’s information by customers visit on the website and keeping track of their activities such as pervious buying, login details, email provided, and contact number etc. According to customer activities the site provides similar product to customer. Victoria’s Secret personalise customers online experience with content and offers that are tailored to customer’s interests. Victoria’s Secret uses web cookies and other information technologies to gather data.

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3. INDIVIDUALIZATION

Individualisation refers to website content presented in a way that suits customers’ needs and wants. to manage individual interests Victoria’s Secret uses various techniques to customise the products. on the website individual have option to create an account and save any products in shopping cart and can track your order arrival status. Secondly the site provides users with a large menu to search by category. Plus, Victoria’s Secret have this thing on their websites called “LOVE LIST” where customers can add what products they like and make their own personalise list of products.

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4. INTEGRATION

Integration is a change towards digital world of marketing. In today’s era, social media plays vital role in marketing. social media platform is one of the most popular place for any businesses to showcase its products and services. Likewise, Victoria’s Secret also uses social media such as Facebook, twitter, Instagram, YouTube and Pinterest to promote their business.

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5. INDEPENDENCE OF LOCATION

Being able to do the marketing of a product or service from a personal computer at home is a great advantage of Internet marketing, as well as the ability to be reached as a consumer from anywhere with a Wi-Fi connection whether it be via mobile device or computer (HubShout, 2018). Victoria’s Secret also have their app for phones and tablets moreover customer can access to their website online from anywhere with internet connection. Victoria’s Secret stores are in different part of world as well as they provide international shipping. To show evidence screenshot is given below.

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Reference List:

Anon, (2018). [online] Available at: https://www.victoriassecret.com.au/? [Accessed 24 Aug. 2018].

Chaffey, D & Ellis-Chadwick, F 2016, Digital Marketing: Strategy, Implementation and Practice, 6thedn, Pearson, Harlow, United Kingdom.

HubShout. (2018). The 6 I’s of Internet Marketing. [online] Available at: https://hubshout.com/?The-6-I%E2%80%99s-of-Internet-Marketing&AID=324 [Accessed 24 Aug. 2018].

Medium. (2018). 6 I’s of Internet Marketing That Every Marketer Should Know. [online] Available at: https://medium.com/@sho0by/6-is-of-internet-marketing-that-every-marketer-should-know-5d8ba9675836 [Accessed 24 Aug. 2018].

Business and revenue model of Apple

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Business Model

Apple is multinational American company. Apple products and services include iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, a portfolio of consumer and professional software applications, iCloud, Apple Music, Apple Pay and a variety of accessory, service and support offerings. Apple focuses on providing the best user experience and owns it completely. Apple designs and develops own operating systems, hardware, application software, and services. Then, it integrates them seamlessly to build easy-to-use products. Apple is not dependent on its partners for any technical breakthroughs. Apple innovates at its own pace. (Miglani, 2018)

Apple has two most common transactional business models which are:

  1. Business to Business (B2B), business to business transitions occurs when apple sell their products to other retailers in the market such as Vodafone and Office works.
  2. Business to consumer (B2C). B2C is the transaction between company itself with direct customers. for example, apple store selling product direct to its customers.

Revenue Model

Apple generates revenues from product sales, subscription fees associated with iCloud and Apple Music, and extended warranty fees for its products. Apple also generates revenues from the fees charged to content owners and developers for selling their digital content and applications through the iTunes Store, App Store, Mac App Store, iBooks Store, and Apple TV App Store.

The Company sells its products in most of its major markets through its retail and online stores and its direct sales force. In addition, the company sells a variety of third-party Apple compatible products, including application software and various accessories through its online and retail stores. The Company also employs a variety of indirect distribution channels, such as third-party cellular network carriers, wholesalers, retailers and value-added resellers. (Miglani, 2018)

According to 2017 R&P Research, during sh 2015, the Company’s net sales through its direct and indirect distribution channels accounted for 26% and 74%, respectively, of total net sales.

(Miglani, 2018)

Apple FY 2015 Products Revenues

Of the total revenues of $233.7 billion in FY’15, Apple generated

  • $155.0 billion revenues, 66.3% of the total, from iPhone.
  • $23.2 billion revenues, 9.9% of the total, from iPad.
  • $25.5 billion revenues, 10.9% of the total, from Mac.
  • $19.9 billion revenues, 8.5% of the total, from Services. Services includes revenue from the iTunes Store, App Store, Mac App Store, iBooks Store, Apple Music, AppleCare, Apple Pay, licensing and other services.
  • $10.1 billion revenues, 4.3% of the total, from Other Products. Other Products includes sales of Apple TV, Apple Watch, Beats products, iPod and Apple-branded and third-party accessories.  (Miglani, 2018)

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