e-commerce project. copyright 2009 ® office 1 superstore international 1.global market trends 3....
TRANSCRIPT
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E-Commerce Project
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COPYRIGHT 2009 ® OFFICE 1 SUPERSTORE INTERNATIONAL
1.GLOBAL MARKET TRENDS
3. OFFICE 1 E-CONCEPT
4.E.ASSOCIATES
6. INCOME SOURCES
TOPICS TO COVER
2. THE WAY FORWARD
7. KEY SELLING POINTS
5. AFFILIATES
8. LAUNCH DETAILS
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The OFFICE 1 model of retail franchisesis becoming outdated in developed markets:
• Retail sales are flat globally• Only low margin categories growing • Inroads of discount houses and giant Ecommerce retailers
into stationery and school business
• Commoditization of office supplies• No real motivation to shop for office products• Results in price competition and decline in margins
• Increased rental rates globally affecting sub-franchisees income
Global Market Trends
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• B to B only growing market segment dominated by:• Multinational players• Large local Contract Dealers
• Small dealers operate stockless using Logistics Supplier’s Ecommerce platform
• Growing market share of Ecommerce• Projected to account for 40% of total sales in next five years
already higher for office Depot and Staples in US.
Global Market Trends (cont.)
All BELOW SUPPORTED BY E. PLATFORMS:
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• Lower Master Franchisee’s income:• Increase in sub franchisees’ non-payables
• Decline in number of stores:• Bulgaria - Italy – Ireland - Serbia
• Difficulty in sub-franchising:• Mexico – Greece – Jordan - Poland
• Failure and closing of weak OFFICE 1 markets:• India – China - Romania
Global Market Trends (cont.)
Sub Franchisees’ reduced income results:
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• Consider stores in store wherever possible:• Copy Centers• Discount houses• Convenience stores• Furniture and electronics showrooms
• Improve appeal of store assortment:• Electronics: Camera, Cell phones etc• Digital service center in store• Fancy gift items
The Way Forward
Improve retail sales results at little cost:
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Store in store
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Store in Store Wall
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Store Section
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OFFICE 1 NEW STRATEGIC PLAN:
1. Develop Super Ecommerce website with B to B focus
– Platform ready now available for masters. – Takes four weeks for uploading of master data base. – Uploading done in Bulgaria at cost.– Launch Slovenia and Jordan April– Other masters throughout 2010
The Way Forward
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OFFICE 1 NEW STRATEGIC PLAN (Cont.):
2. Launch unique virtual Associate Concept to eliminate problems of classic OFFICE 1 franchising:
– No High rent !– No expensive stock !– No delivery problems !– Associates focus on selling not operations !
The Way Forward (Cont.)
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OFFICE 1 NEW STRATEGIC PLAN (Cont.):
3. Joint Venture with local partners in major markets:
– UK launch March 2010 (20% owned)– France launch June 2010 (40% owned)– Holland – Belgium – Germany second half 2010 (50% owned)– Germany –Austria –Czech Republic first half 2011 (50% owned)– Possibility 2011 US entry (TBD)
The Way Forward (Cont.)
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• Joint Ventures will be virtual companies:• No territories - No stock - No stores – • Staff of four• Utilize services of Logistics Supplier• Use OFFICE 1 Training Program
• Capitalize on:• Unique EAssociates concept • Strong OFFICE 1 web platform• OFFICE 1 Ecommerce experience in Ire-UK-France -Italy• Support from OFFICE 1’s central office in Bulgaria for:
• Web Marketing Activities• Software and IT
• OFFICE 1 franchising reputation and experience
The Way Forward (Cont.)
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• SAME OPPORTUNITIES FOR MASTER FRANCHISEES:• Same OFFICE 1Web Platform• Same Central Marketing support• Same EAssociates opportunity• Benefit from OFFICE 1’s experience in Europe
• THE ONLY DIFFERENCE IS:• Master Franchisee has to act as Logistics Supplier for
Associates, Affiliates and stock and deliver.
The Way Forward (Cont.)
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FOUR SALES & PROFIT GENERATORS:
1. Master’s own Ecommerce sales
2. Revenue from two types of Associates:– Individual Associates– Business Associates
3. Revenue from Affiliates:- Untapped opportunity in many markets
4. Vendors’ Advertising on OFFICE 1 web site
E-CONCEPT
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FOUR SALES & PROFIT GENERATORS (Cont)
1. Master’s own Ecommerce sales. Website key features:– Allows for 24 hours ordering– Live interaction possible: Text messaging, email, or phone.– Order history with status. Stock availability – Multi- tier pricing– Product comparisons and Related product reviews– Re-orders from account history (Favorite basket)– Recently viewed products function– Orders from various divisions. Who placed order and who approved?– Configurable search with auto-suggested terms– Newsletter subscription and management
E-CONCEPT (Cont.)
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FOUR SALES & PROFIT GENERATORS (Cont)
• 2. Revenue from two types of Associates using website:
• A. INDIVIDUAL ASSOCIATES: Individuals appointed to sell office products to friends and clients.– Work part time or full time from office or home
• B. BUSINESS ASSOCIATES: B to B Companies with a list of established customers to whom to actively sell office products.– Complementary to existing business and activities.
E-CONCEPT (Cont.)
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A. INDIVIDUAL ASSOCIATES:
• Easy, quick extra earning opportunity:– No initial fee – No stock – No rent - No territory – No operations hassles– Short video tutorial (15 min.) on the web– Possibility of more training if needed– Most communications automated – Telesales Service of Master handling queries from customers.– Sales tracking of customers available on hand phone– Sales reports obtained by code from O1S web– Live OFFICE 1 for extra support:
• Success Coach on phone or web mail• Blog and OFFICE 1 Newsletter for communications and team spirit
E-CONCEPT (Cont.)
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A. INDIVIDUAL ASSOCIATES (Cont.)
• RECRUITING– Use special list with OFFICE 1’s determined selection criteria– Advertise on Franchising and Help Wanted websites– Advertise on Google– Provide information when clicking Associate button on website
• INVOICING:– OFFICE 1 invoices end users/customers– Payment credit card or PayPal
• REMUNERATION:– Earns 33% of gross margin less delivery charge
• Gold 50%• Platinum 75%
E-CONCEPT (Cont.)
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E-CONCEPT (Cont.)
A. INDIVIDUAL ASSOCIATES (Cont.)
• REMUNARATION: (All post delivery charge)
– First level: Associate Regular:• Starts at one third (33.33%) of gross profit
– Second level: Associate Gold:• 50% of gross profit
– Third level: Associate Platinum• 75% of gross profit
B to B Associates start at Gold Level 50%
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B. BUSINESS ASSOCIATES
• Opportunity for B to B companies to earn extra money selling their customers on the OFFICE1 web.– No stock – No rent - No territory – No operations – No initial fee– Master Telesales Service handles queries from customers– Success Coordinator available for extra support if needed– Remuneration – Starts at 50% from Gross Profit less
delivery costs- Gold Level
E-CONCEPT (Cont.)
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B. BUSINESS ASSOCIATES (Cont.)
• RECRUITING– OFFICE 1 develops list of B to B industries to target:
– Consultants, Insurance Agents, Accounting firms, IT companies etc.– Web Marketing Company conducts email campaigns to target recruits– or Master Franchisee mail material by post– Information provided when clicking Associate button on website
• INVOICING:- OFFICE 1 invoices end users/customers
- Payment credit card or PayPal
• REMUNERATION:Starts at 50% of gross margin less delivery charge
E-CONCEPT (Cont.)
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HOW DOES IT WORK?
THREE PHASES: • Candidate goes to website and clicks Associate Icon
– Linked to Associate site– Views welcome slides, listens to audio and other information– Candidates sends application electronically
• Success Coordinator calls candidate for interview– If OK, ID Number is sent automatically to access Training Video
• When first order placed Associate gets account number.– Tracking begins
E-CONCEPT (Cont.)
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C. AFFILIATES• Sign up Affiliates :
– Huge untapped opportunity for easy extra sales in some markets
• Companies in the B to B business willing to place an OFFICE 1 icon or offer on their own web sites to refer visitors to OFFICE 1’s website for placing orders.– No involvement besides placing icon– No training, no fees, no fuss.
E-CONCEPT (Cont.)
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C. AFFILIATES (Cont.)
• RECRUITING– OFFICE 1 develops list of B to B industries to target:
– Consultants, Insurance Agents, Accounting firms, IT companies etc.– Web Marketing Company conducts email campaigns to target
candidates or Master Franchisee mails material by post– Information provided when clicking Associate button on website
• INVOICING:– OFFICE 1 invoices customers
• REMUNERATION– Affiliates can track orders and receive weekly commission from
OFFICE 1 based on product category. (5% to 10%)
E-CONCEPT (Cont.)
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E- INCOME SOURCE
• Primarily:• Own Ecommerce sales to firms and consumers
• Secondarily:• Orders from Associates• Orders from Affiliates• Advertising contribution from vendors
HOW DOES MASTER FRANCHISEE MAKE MONEY?
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• Provides Web Platform and on-going improvements
• Provides concept details and Training Programs
• Produces Recruiting and Training Videos
• OFFICE 1 E-commerce know how and credibility
• Centralized E. Marketing promotional activities from
European Headquarters
• Global network:• Advice sharing & communication with all JVs and masters• On going support and information flow
CONTRIBUTION:
OFFICE 1
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LAUNCH DETAILS:
MARKETING:
• Launch brochures and flyers should feature on cover new web launch utilizing the key selling points
• Brochure Page 2 letter should announce the web platform
• Letter should state “please contact E-Commerce Specialist for free demonstration. We will also provide a free gift for allowing us to present the platform.”
• Utilize e-commerce platform roll out flyers
• Delivery vans should have web platform address printed on side
• All client invoices should have web platform address
• All shopping bags should have platform address
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LAUNCH DETAILS:
IN STORE:
• Drop announcement flyers by placing them in all shopping bags
• Place front window sign announcing new web platform
• Place store signs with web platform address
• Shopping bags should feature web platform address
• Store associates should take visit neighborhood companies and demonstrate website.
• On POS register web platform address should be printed on client’s sales transaction receipt
• Each store should have a computer set up with the website platform for demonstration and to open account.
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THANK YOU FOR
YOUR ATTENTION
THANK YOU FOR
YOUR ATTENTION
COPYRIGHT ® 2007 OFFICE 1 SUPERSTORE http://www.office1international.com