1. Logistics Information Management, 14, 1/2, 2001, 14-23. Nabisco: A Case Study Nabiskua Company Founded in 1991, is a supermarket for all the requirements Algmaip developed itself Late Offers e- commerce http://www.nabiscoworld.com

2. Logistics Information Management, 14, 1/2, 2001, 14-23. Nabisco: A Case Study Background  Nabisco, an $8 billion snack food company, has major competitive advantages in the traditional supermarket distribution channels.  Nabisco’s current corporate strategy is to build total brand value. Total brand value calls for satisfying customers faster and more completely than the competition.  Its Biscuit division currently spends 10% of sales in trade (retail) marketing for items such as special promotions and in-store displays.  In addition, the Biscuit division maintains a fleet of trucks that provide direct store delivery which is an advantage that few competitors can afford.  Direct store delivery and Nabisco’s dominant market share in the biscuit category ensure that Nabisco’s products receive the most shelf space in stores and cross shoppers’ paths more than competitor products.

3. Logistics Information Management, 14, 1/2, 2001, 14-23. State of E-Marketing at Nabisco (2000)  To date Nabisco has established a significant presence during the land grab phase of the Internet referred to by Evans and Wurster (1999).  For the U.S. market, the company currently has a number of web sites:  A corporate information site  A recipe site that provides consumers with recipes that feature Nabisco products.  Each of its two domestic operating units have web sites that contain games and promote the units brands.  On-line shopping for Nabisco brand merchandise (e.g. mugs, dolls, and trains), along with specially packaged food products.  Various brand specific sites  Nabisco has also started an e-business group to address the larger strategic issues presented by the Internet.

4. Logistics Information Management, 14, 1/2, 2001, 14-23. The Problem  Current competitive advantages will diminish in a market dominated by on-line grocery shopping.  Advantages critical for a bricks and mortar grocery manufacturer such as in-store displays, product presentation and shelf space do not directly transfer to an on-line environment.  Strategies will have to be developed to create new competitive advantages.

5. Logistics Information Management, 14, 1/2, 2001, 14-23. Challenges  For established companies, doing business on-line risks damage to brands and distribution relationships that currently represent key competitive advantages.  The value chain for incumbent manufacturers and retailers is being deconstructed because the value to consumers derived from entire segments of that chain can be achieved more efficiently and effectively through the use of the Internet and Supply Chains  Even if the overall percentage of sales on the Internet averages just 5% across all categories, that shift will still create tremendous pressure on physical retailers, particularly in the United States.

6. Logistics Information Management, 14, 1/2, 2001, 14-23. Growth of the On-line Grocery Business The on-line grocery shopping industry is positioned for tremendous growth in the coming years. current sales are estimated at $1.8 billion annually they are expected to reach $3.5 billion by 2002 and $37 billion, 4% of domestic sales, by 2004 Some projections call for 20% of all grocery orders to be placed on-line by the year 2007.  The incentive for grocers to go on-line is to establish relationships with customers that will allow them to automatically replenish homes- a new form of SCM.

7. Logistics Information Management, 14, 1/2, 2001, 14-23. Implications of the Integrated Framework

8. Logistics Information Management, 14, 1/2, 2001, 14-23. Product Nabisco must use the information collected from the Internet to develop new products for new markets.  Nabisco may have to compete with niche shops over the Internet and should start a business unit designed to compete in niche markets.  Niche products would give the company's product development labs a chance to use promising developments that could not achieve the critical market mass required by today’s cost structure.

9. Logistics Information Management, 14, 1/2, 2001, 14-23. Place  Nabisco needs to quickly develop an on-line customer base and ensure that its products are offered on sites that have all the products consumers want.  Promote on-line retailing standards to allow consumers to switch on-line grocers easily, counteracting “sticky” web-sites developed by e-grocers.  Encourage standards that would allow consumers to select products from manufacturers' sites even if the purchase and distribution occurred through the on-line grocer.  Must maintain relationships w/ manufacturers, suppliers and buyers- the supply chain  It is critical to quickly develop a large customer base in on-line commerce.  Organizations that are first to offer a large breadth of products to consumers will have an advantage.  If done correctly, would allow Nabisco to sell directly to its customers –disintermediation reducing the Supply Chain.

10. Logistics Information Management, 14, 1/2, 2001, 14-23. Place  Provide an on-line service that allows consumers to navigate their selection of on-line grocery providers.  Provide information about on-line grocers that consumers would be interested in such as the price of the service, service quality measures and the geographic area the service is offered in.  Sponsoring manufacturers could embed themselves in the on-line grocer’s site by offering promotions through on-line grocers who are complying with industry standards.

11. Logistics Information Management, 14, 1/2, 2001, 14-23. Place - Strategies to Avoid Nabisco like other companies will have to be careful not to damage their brands and their relationship with existing distributors and retailers.  Most likely strategies would be to keep Nabisco products off on- line grocer sites or not support the on-line grocers.  Nabisco would also find it difficult to compete by selling its product on-line because it would not have the reach consumers would want.  Nabisco could form alliances with other consumer products companies (e.g. Heinz, Campbell’s, P&G), thus forming B2B Supply Chains.

12. Logistics Information Management, 14, 1/2, 2001, 14-23. Price Nabisco should be prepared to respond to increased price pressures on the Internet. Increased price pressures would play to the benefit of the traditional large producers like Nabisco.  Nabisco should consider new pricing models for its products, such as product subscriptions (e.g. cookie of the month).

13. Logistics Information Management, 14, 1/2, 2001, 14-23. Promotion  Nabisco should continue to aggressively promote its brands on the Internet, particularly brands based on experience. Customer Centered  An on-line service that allows consumers to navigate their selection of on-line grocery providers would give manufacturers the opportunity to collect additional consumer information- CRM.

14. Logistics Information Management, 14, 1/2, 2001, 14-23. Conclusion Although many of the e-commerce strategy frameworks offer a unique contribution to strategic planning, integrating these models into the traditional product, price, place and promotion framework can provide a more complete analysis of strategy.  Based on an analysis that uses the traditional four P’s model, along with integrating other on-line strategy frameworks, Nabisco should pursue the following on-line marketing strategies:  Use the Internet to develop new products and services.  Help the consumer choose an on-line grocer by encouraging standards and disseminating information.  Prepare itself to operate in an increasingly price competitive marketplace.  Emphasize those brands that relate to experiences over facts.  Develop customer centered marketing practices.

15. Logistics Information Management, 14, 1/2, 2001, 14-23. Conclusion Integrating previously developed e-commerce frameworks with the traditional 4 P’s model provides a more comprehensive strategic approach to exploiting opportunity offered by e-commerce E-commerce Frameworks Traditional 4 P’s Model + =