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Redhawks Consulting Decathlon China. Using social media to... ◦ increase sales in the short term ◦ increase market share in the long term.

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Presentation on theme: "Redhawks Consulting Decathlon China. Using social media to... ◦ increase sales in the short term ◦ increase market share in the long term."— Presentation transcript:

1 Redhawks Consulting Decathlon China

2 Using social media to... ◦ increase sales in the short term ◦ increase market share in the long term

3 Outsource online presence

4 I.Analysis I.External Analysis II.Internal Analysis II.Alternatives III.Recommendation IV.Implementation

5 Established manufacturer and retailer of sporting goods 33 retail stores in large cities accross China Unsuccussful in online sales Taobao and Inshion Undecided on how to expand through social media Renren/Kaixin001: 250 million users Sina Weibo: 100 million users Tudou: 170 million users Bulletin Board Systems: 3 billion users Analysis

6 Population year olds 50% of 420 million internet users are in target group Economic Retail industry is growing at 10% annually Rapid growth of online shopping Social Social media dominated by local players Celebrity endorsement is popular People consult others before making decisions Technology Social media Mobile phones Legal Foreign social networking sites are permanently blocked in China Tight government control/regulations External Analysis

7 Strengths Worldwide brand awareness Quality yet affordable products Strong growth in the Chinese Market Ranked number two in global sales for sports retailers Weaknesses Inexperienced in e-commerce and social media Weak online presence Weak virtual storefront Opportunities Large target market Growing popularity of online/mobile shopping Threats Transition of traditional in-store shopping to internet shopping Competive Industry with entrenched competitiors Low margins in retail industry Strengths Worldwide brand awareness Quality yet affordable products Strong growth in the Chinese Market Ranked number two in global sales for sports retailers Weaknesses Inexperienced in e- commerce and social media Weak online presence Weak virtual storefront Strengths Worldwide brand awareness Quality yet affordable products Strong growth in the Chinese Market Ranked number two in global sales for sports retailers Weaknesses Inexperienced in e-commerce and social media Weak online presence Weak virtual storefront Opportunities Large target market Growing popularity of online/mobile shopping Threats Transition of traditional in-store shopping to internet shopping Competive Industry with entrenched competitiors Low margins in retail industry Strengths Worldwide brand awareness Quality yet affordable products Strong growth in the Chinese Market Ranked number two in global sales for sports retailers Weaknesses Inexperienced in e-commerce and social media Weak online presence Weak virtual storefront Opportunities Large target market Growing popularity of online/mobile shopping Threats Transition of traditional in- store shopping to internet shopping Competive Industry with entrenched competitiors Low margins in retail industry External/ Internal Analysis

8 Promotion Outdoor billboards Local newspapers Flyers Memberships Sporting events Contests Placement Retail stores 33 in China 400 in 15 countries Online Taobao Decathlon store Price Moderately priced “A good bargain” Product Sporting goods Table tennis balls Treadmills Sports aparel Internal Analysis

9 General administration Human resource management Procurement Inbound logistics Operations Outbound logistics Service Margin Strength brick-and-mortar Weakness virtual presence

10 Alternative #1 Expand brick-and-mortar presence Alternative #2 Handle social media marketing internally Alternative #3 Outsource online presence Alternatives

11 Expand brick-and-mortar presence AdvantagesDisadvantages Experience in brick-and-mortar expansionDoes not exploit social media Success of current storesLess cost effective Alternatives

12 Handle social media marketing internally AdvantagesDisadvantages CostInexperienced in social media marketing Control over productPotentially less effective Alternatives

13 Outsource online presence AdvantagesDisadvantages Marketing professionally handledHigher initial cost outlay Expertise in online legalitiesLess control over product Quicker implementation Growth potential (10%+) Alternatives

14 ● Cost Effectiveness ● Growth Potential ● Increase in Brand Awareness ● Implementation Timeline ● Competitive Position Alternatives

15 Weighted Competitive Strength Analysis Expand Brick and Morter Handle Social Media Internally Outsource Online Marketing Presence Key Success FactorRatingRankTotalRankTotalRankTotal Cost Effectiveness.152,34,63,45 Growth Potential.303,9041,20 5* 1,50 Increase Brand Awareness.203,603 5* 1,00 Implementation Time.251,252,50 5* 1,25 Competitive Position.103,304,404 Total1.02,353,304, Ranking Scale 1.The alternative does not effectively address this criterion. 2.The alternative may contribute to addressing this criterion. 3.The alternative provides an average solution to this criterion. 4.The alternative provides an above average solution for this criterion. 5.The alternative effectively addresses this criterion. Alternatives

16 Alternative #3 Outsource online presence Recommendation

17 Implementation Plan Short-Term 1.Search for and select outsourcing firm 2.Integrate online promotions at current sponsorship events 3.QR integration 4.Membership benefits Long-Term 1.Evaluate celebrity endorsement 2.Increase marketing efforts to other segments Implementation

18 Request for Qualifications (RFQ) Criteria 1.Plan for completion of e-commerce website 1.Evaluate Taobao and Inshion sites 2.Search engine optimization in Baidu 3.Launch timeline 4.Analytical tools to measure success 1.Click-through rate 2.Purchases per click-through 3.Link-in tracking 5.Previous experience Implementation

19 4 weeks 6 weeks3 months6 months9 months RFQ Deadline Select firm Full online launch Develop member benefits Promotion with sporting events QR integration Offer membership benefits Milestone Review Implementation

20 9 months18 months24 months Evaluate celebrity endorsement Implement recommendations from previous milestone review Begin marketing to additional segments Milestone Review Implementation

21 RiskMitigation/Solution Online sales do not grow as plannedEvaluate building more stores Communications firm does not perform well Research other firms and/or develop internal marketing department Develop in-depth contract Decrease in popularity of social media sites Evaluate alternative marketing solutions Implementation

22 Redhawks Consulting Decathlon China


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