Redhawks Consulting Decathlon China

increase sales in the short term The Challenge Using social media to... increase sales in the short term increase market share in the long term

Outsource online presence Recommendation Outsource online presence

Analysis Alternatives Recommendation Implementation Table of Contents External Analysis Internal Analysis Alternatives Recommendation Implementation

Established manufacturer and retailer of sporting goods Current Situation 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

Population Economic Social Technology Legal P.E.S.T.L.E. 20-40 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

SWOT Analysis Strengths Weaknesses 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 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 Analysis slide External/ Internal Analysis

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

Value Chain General administration Human resource management Procurement Inbound logistics Operations Outbound logistics Marketing and sales Service Margin Strength brick-and-mortar Weakness virtual presence Internal Analysis

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

Expand brick-and-mortar presence Alternative #1 Expand brick-and-mortar presence Advantages Disadvantages Experience in brick-and-mortar expansion Does not exploit social media Success of current stores Less cost effective Analysis slide Alternatives

Handle social media marketing internally Alternative #2 Handle social media marketing internally Advantages Disadvantages Cost Inexperienced in social media marketing Control over product Potentially less effective Analysis slide Alternatives

Outsource online presence Alternative #3 Outsource online presence Advantages Disadvantages Marketing professionally handled Higher initial cost outlay Expertise in online legalities Less control over product Quicker implementation Growth potential (10%+) distinctive competency Alternatives

● Increase in Brand Awareness ● Implementation Timeline Key Success Factors ● Cost Effectiveness ● Growth Potential ● Increase in Brand Awareness ● Implementation Timeline ● Competitive Position Analysis slide Alternatives

WEIGHTED Competitive Strength Analysis . Weighted Competitive Strength Analysis Expand Brick and Morter Handle Social Media Internally Outsource Online Marketing Presence Key Success Factor Rating Rank Total Cost Effectiveness .15 2 ,3 4 ,6 3 ,45 Growth Potential .30 ,90 1,20 5* 1,50 Increase Brand Awareness .20 ,60 1,00 Implementation Time .25 1 ,25 ,50 1,25 Competitive Position .10 ,30 ,40 1.0 2,35 3,30 4,60 Ranking Scale The alternative does not effectively address this criterion. The alternative may contribute to addressing this criterion. The alternative provides an average solution to this criterion. The alternative provides an above average solution for this criterion. The alternative effectively addresses this criterion. Alternatives

Outsource online presence Recommendation Alternative #3 Outsource online presence Recommendation

Implementation Implementation Plan Short-Term Search for and select outsourcing firm Integrate online promotions at current sponsorship events QR integration Membership benefits Long-Term Evaluate celebrity endorsement Increase marketing efforts to other segments integrate with current site LT ages, specific sports Implementation

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

Short-Term 4 weeks Implementation 6 weeks 3 months 6 months 9 months RFQ Deadline Select firm Full online launch Develop member benefits Promotion with sporting events QR integration Offer membership benefits Milestone Review Implementation

Long-Term Evaluate celebrity endorsement 9 months 18 months 24 months Evaluate celebrity endorsement Implement recommendations from previous milestone review Begin marketing to additional segments Milestone Review Implementation

Contingency Risk Mitigation/Solution Online sales do not grow as planned Evaluate 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

Redhawks Consulting Decathlon China