** FINAL ASSIGNMENT **
I. History of supermarkets
The first cooperative of consumption was actually founded in Scotland beginning of 19th century by Robert Owen, an utopic socialist. But this idea was progressively abandoned until 1844 when Félix Potin opened his first shop in Paris, selling products to fix and visible prices. The merchandises are packed in factories and not anymore by the grocer. This principle will then be transposed to the US by franklin Winfield WoolWorth and his brother and in 1879, year of opening of their second grocery store, will appear the Woolworth’s chain, becoming soon very popular. In the 20’s opened the first shops in self-service, like the “King Kullen” in New-York, founded by Michael Cullen, who rent an old garage, with prices 20 to 50% cheaper, selling essentially overproduction.
In France appeared Uniprix in 1931, from Prisunic and in 1932 Monoprix. All these concepts became very popular to the urban working class. In 1949 Edouard Leclerc opened his first discount store, becoming very soon the leader of supermarkets in France until now. In the 80’s appeared the even cheaper hard-discounts with Aldi, Lidl, Norma…
In the year 1985 was launched the first Internet supermarket by Monoprix, called Telemarket, in France. It is now possible to shop online, to choose the desired products by a click, to pay online and to be delivered directly at home. Cybermarketing was born. In the year 2000 Cora launched also launched its own site, called “Houra.fr”.
Study of the French Market:
The main sites for cybermarketing are:
http://www.telemarket.fr/ (Monoprix, 9000 products online, delivery in France)
http://www.auchandirect.fr/ (Auchan, 5000 products online, delivery in Paris)
http://www.houra.fr/ (Cora, 50000 products online, delivery in France)
http://www.ooshop.com/ (Carrefour, 7000 products online, delivery in France)
http://www.natoora.fr/ (Biological products, delivery in France and Corsica)
http://www.coursengo.com/ (Franprix, 4000 products, delivery only in Paris)
They all insure a delivery under 48 hours when bought before 8.00 pm. As we can see the main cybermarkets are part of a supermarket group. This is showing the investment made in this new segment by traditionnal sellers. It is the natural step from offline to online, keeping the exact same core business, with new logistic issues.
II. Business model analysis
The main problem solved for customer, is the possiblity to stay at home to shop, instead of taking the car, making their shopping in a crowded and noisy place, queueing to pay and coming back with their car. It safes time, money (think about the oil prices!), and tiredness. For the owner of the business it is possible to reorganise the storage in a place with less space, it avoids cashiers and it securises the payments.
The customer groupe served is composed of connected people, who does not have enough time in their daily lives to go shopping, especially working women with children (70% of the customers, according to Houra in 2005). The group is also composed of people who don't like to go shopping.
The revenue sources for the cybermarkets are quite similar to the revenue sources of traditionnal supermarkets, they have a margin on the sold goods. The cybermarkets can also make a little money whith the delivery and sponsored links on their website. But still it seems that the margin is higher for the moment on cybermarkets than in supermarkets.
This model is sustainable as it doesn't change the core business of supermarkets, which is to buy as cheap as possible to producers, like farmers and to sell with a quite low margin (~2%), to insure to their customers low prices. We know that the supermarket business model is sustainable, so cybermarketing has to be, as long as it offers the same prices and a cheap but efficient delivery service. Cybermarketing is much more disrupting the way to buy than the way to sell! The model is scalable by increasing the number of products available online, and increasing the number of delivery zones including foreign countries.
To develop the market, I would invest in advertisement production, in order to be able to realise real ad-spots on the web site, to make money like a traditionnal agency and in same time increasing the number of products sold. The traditionnal adverisment will have a much lower impact, as the customer is not walking around in a supermarket, he won't recognize a product he saw on tv, and then buy it. People will use the integrated search engine of the website to look for a group of products, and the site will be able to choose which brands will appear first on the list, or even showing an ad, during the response waiting time, that will show a specific brand. The website will replace the television and its way to make money. Cybermarkets could earn money realising the ad and then selling the allocation on their website to the same supplier, with a final effect of growing their sales! Finally, the way to sell could be disrupted as much as the way to buy.
III. Conclusion
In 2005 Houra announced a turnover growth of 21% (57 million Euro), which is a very good result, as the growth in 2004 was 15%. They reached 61 million in 2006. But the market is still not mature, and many efforts can be made to reduce the delivery costs, by optimising the logistic flow. To have a delivery service is an ecological behaviour, as the consumption of one truck delivering to a certain number of people is consuming less oil than each individuals driving to the supermarket. The ecological trend will reenforce the cybermarketing trend. The offer of products can be largely increased, and in parallel projects of more efficient search engines are developped, to help customers to find out the desired product.
Cybermarketing has become over the past few years, one of the most competitive business on the web, making it grow even faster.
When extrapolating all these facts, we can imagine that cybermarketing is going to become the new traditionnal way to shop, having in paralell the development of internet, which is increasing the number of people connected and a population getting older, especially in Europe and in the US, this way will help people having problems to move from their homes. Cybermarketing will soon become the regular way to shop.
jeudi 28 février 2008
mercredi 13 février 2008
Stay connected
** Body of knowledge **
http://www.presto.com/
The only thing you need is a telephone line, and a person that will be able to manage your account through internet (your doughter for example). All the allowed e-mails will then be printed out automatically. It seems that this technology is only available in the US for the moment. This could be an opportunity market for entrepreneurs in Europe...
New technologies are coming up for "older" people who does not have a computer, but would really enjoy to receive some e-mails from their family. An example with the "PRESTO" company:
http://www.presto.com/
The only thing you need is a telephone line, and a person that will be able to manage your account through internet (your doughter for example). All the allowed e-mails will then be printed out automatically. It seems that this technology is only available in the US for the moment. This could be an opportunity market for entrepreneurs in Europe...
samedi 9 février 2008
mercredi 6 février 2008
INNOCENTIVE
"We believe in the power of open innovation, bringing together creative minds to create breakthrough solutions that touch every human life. " Innocentive website
The research sectors are: Computer Science, Math, Chemistry, Life Sciences, Physical Sciences and Business, Business and entrepreneurship,Chemistry,Engineering & design Life sciences.
The main advantage for the customers of Innocentive, which are most of the time big companies, is to reduce their R&D costs of a huge amount (Customer group served). The prizes are between 10.000 and 100.000 dollars, and this does represent a huge amount of money when comparing with annual R&D budgets of some companies like Procter&Gamble. (Prize 4 Life offers 1.000.000 dollars)
Ed Melcarek, for example, a 57 years old scientist, won 25.000 dollars helping the R&D of Colgate-Palmolive to find a solution to inject fluorized powder in a toothpaste tube. In this case the supplier is an individual, part of the "croud" member of Innocentive's solvers. For them is an relative easy way to earn money, by making reasearchs on their favorite subjects.
The owner of the business has just to managed properly his internet site, to facilitate the encounter of the solver and the seeker.
Innocentive earns money each time a challenge is posted, as the seeker pays a deposit around $2000.
Competitors:
NineSigma, Yet2.com, and YourEncore.
The model could hardly be applied offline, as internet assures the easiest way to make a contact between seekers and solvers, which have to be sorted out from millions of people.
The model is sustainable for the moment, as long as R&D costs are still very high for the companies. But with the time companies will rethink their R&D departments, and invest more in innovation through new networks, and progressively, each mayor company could have its own Innocentive-like network and prizing system. Innocentive could than become a rank 2 company, trying to fit together networks of seekers with networks of solvers.
If I had to run the business of innocentive, I would prepare this natural scale evolution, and I would begin to work with social networks, like facebook or Myspace, to find communities of solver, which would be able to solve even more difficult problems in less time and for less money.
On the other side I would propose my services to companies to reorganize their R&D department in an innovative and networking way, trying to reduce their costs and increase their efficiency.
Here is the value of Innocentive, an e-business company launched in 2001 by Jill Panetta and Alpheus Bingham.
In December 2006 the company signed an agreement with the Rockefeller Foundation to add a non-profit area designed to generate science and technology solutions to pressing problems in the developing world.
The research sectors are: Computer Science, Math, Chemistry, Life Sciences, Physical Sciences and Business, Business and entrepreneurship,Chemistry,Engineering & design Life sciences.
The main advantage for the customers of Innocentive, which are most of the time big companies, is to reduce their R&D costs of a huge amount (Customer group served). The prizes are between 10.000 and 100.000 dollars, and this does represent a huge amount of money when comparing with annual R&D budgets of some companies like Procter&Gamble. (Prize 4 Life offers 1.000.000 dollars)
Ed Melcarek, for example, a 57 years old scientist, won 25.000 dollars helping the R&D of Colgate-Palmolive to find a solution to inject fluorized powder in a toothpaste tube. In this case the supplier is an individual, part of the "croud" member of Innocentive's solvers. For them is an relative easy way to earn money, by making reasearchs on their favorite subjects.
The owner of the business has just to managed properly his internet site, to facilitate the encounter of the solver and the seeker.
Innocentive earns money each time a challenge is posted, as the seeker pays a deposit around $2000.
Competitors:
NineSigma, Yet2.com, and YourEncore.
The model could hardly be applied offline, as internet assures the easiest way to make a contact between seekers and solvers, which have to be sorted out from millions of people.
The model is sustainable for the moment, as long as R&D costs are still very high for the companies. But with the time companies will rethink their R&D departments, and invest more in innovation through new networks, and progressively, each mayor company could have its own Innocentive-like network and prizing system. Innocentive could than become a rank 2 company, trying to fit together networks of seekers with networks of solvers.
If I had to run the business of innocentive, I would prepare this natural scale evolution, and I would begin to work with social networks, like facebook or Myspace, to find communities of solver, which would be able to solve even more difficult problems in less time and for less money.
On the other side I would propose my services to companies to reorganize their R&D department in an innovative and networking way, trying to reduce their costs and increase their efficiency.
The companies mostly interested by Innocentive are in the sector of Chemistry, Biology and Bioindustry.
mercredi 23 janvier 2008
Social Entrepreneur
Definition: A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change. Whereas business entrepreneurs typically measure performance in profit and return, social entrepreneurs assess their success in terms of the impact they have on society. While social entrepreneurs often work through nonprofits and citizen groups, many work in the private and governmental sectors. (Source: wikipedia)
My opinion is that social entrepreneurship is a real shift to corporate responsibility, as inequalities are growing very fast in the world (The 250 richest people have as much money as the 3 billion poorest people in the world in 2006). It is one concrete solution trying to reach a more sustainable development for the planet.
My opinion is that social entrepreneurship is a real shift to corporate responsibility, as inequalities are growing very fast in the world (The 250 richest people have as much money as the 3 billion poorest people in the world in 2006). It is one concrete solution trying to reach a more sustainable development for the planet.
mardi 22 janvier 2008
vente-privee.com
1. "Vente privée" is a french e-business site with the particularity that it is supposed to be a private club, where you need a godfather to get an access. The site has such a great succes in France, that is not too difficult to find a Godfather, and ones this done, is possible to access all the private sales that interest you. (Already 3 million member and a turnover of 240 million euros in 2006 with 40 sales manager)
The main advantage for the customers is that these private sales have very low prices (from -30 to -70%), and last only 1 to 2 days. The customers receive an e-mail a few days before telling them what is going to be sold, and if they are interested, they register to that sale. The products are various, and can be: clothes, games, sportswear, watches, high-tech...Every sale has its own advertisement spot, that can be seen before the sale.
For the suppliers this type of sales can be very usefull to get rid of the products that were not sold in the traditionnal circuits, or that they know will have problems in the future to be sold at a regular price.
For the owners of the business this kind of sales is the core of their business, as venteprivee makes money through commissions on the sales realised through their internet site.
The customer group served is very large, as the sold products are various, but has probabely a majority of women aged from 25 to 50, as the products and site's graphics are more housewife oriented.
Competitors:
http://www.achatvip.com/
http://www.vente-en-or.com/home.php
http://www.showroomprive.com/
http://www.fruitrouge.com/
https://www.born4sports.com/FR-fr/Default.aspx
http://www.shopofthespot.com/
http://www.deco-smart.com/fr/accueil.php
Same business model :
http://www.voyage-prive.com/
http://shopping.infobebes.com/ventes_privees/accueil/accueil2.asp
The model could absolutely not be applied offline, as the whole structure is online-based. Mails, direct viewing of the products, direct buying with securised payment. All would be different offline, it would look like a regular "vente privée", which would be an incredible lost of time.
The model is sustainable, because there is no need of a huge amount of customers to make the business work, as the number of products are limited during a given sale. Most of the time everything is sold before the official end of the sale. The most important thing is to find the customer fitting to the product. It is a scalable business, as the number of products and the number of corresponding customers can be increased.
To increase even more the business I would try to have more information about the people registered on the site, to focus more on their needs and expectations, and to avoid selling mails that does not interest the members. A new member would fullfill a formular, telling the type of products he is the more interested in. I would also analyse what has been bought by a member to better understand him, like what "amazon" is doing.
2. Article about venteprivee.com:
http://www.journaldunet.com/reportages/07/070305-vente-privee/1.shtml
3. Websites using venteprivee.com within their website:
http://www.top-vente-privee.fr/
http://lesventesprivees.net/
http://www.shoppingaddict.fr/
The main advantage for the customers is that these private sales have very low prices (from -30 to -70%), and last only 1 to 2 days. The customers receive an e-mail a few days before telling them what is going to be sold, and if they are interested, they register to that sale. The products are various, and can be: clothes, games, sportswear, watches, high-tech...Every sale has its own advertisement spot, that can be seen before the sale.
For the suppliers this type of sales can be very usefull to get rid of the products that were not sold in the traditionnal circuits, or that they know will have problems in the future to be sold at a regular price.
For the owners of the business this kind of sales is the core of their business, as venteprivee makes money through commissions on the sales realised through their internet site.
The customer group served is very large, as the sold products are various, but has probabely a majority of women aged from 25 to 50, as the products and site's graphics are more housewife oriented.
Competitors:
http://www.achatvip.com/
http://www.vente-en-or.com/home.php
http://www.showroomprive.com/
http://www.fruitrouge.com/
https://www.born4sports.com/FR-fr/Default.aspx
http://www.shopofthespot.com/
http://www.deco-smart.com/fr/accueil.php
Same business model :
http://www.voyage-prive.com/
http://shopping.infobebes.com/ventes_privees/accueil/accueil2.asp
The model could absolutely not be applied offline, as the whole structure is online-based. Mails, direct viewing of the products, direct buying with securised payment. All would be different offline, it would look like a regular "vente privée", which would be an incredible lost of time.
The model is sustainable, because there is no need of a huge amount of customers to make the business work, as the number of products are limited during a given sale. Most of the time everything is sold before the official end of the sale. The most important thing is to find the customer fitting to the product. It is a scalable business, as the number of products and the number of corresponding customers can be increased.
To increase even more the business I would try to have more information about the people registered on the site, to focus more on their needs and expectations, and to avoid selling mails that does not interest the members. A new member would fullfill a formular, telling the type of products he is the more interested in. I would also analyse what has been bought by a member to better understand him, like what "amazon" is doing.
2. Article about venteprivee.com:
http://www.journaldunet.com/reportages/07/070305-vente-privee/1.shtml
3. Websites using venteprivee.com within their website:
http://www.top-vente-privee.fr/
http://lesventesprivees.net/
http://www.shoppingaddict.fr/
samedi 12 janvier 2008
What's a Mashup
(computing slang) A derivative work consisting of two pieces of (generally digital) media conjoined together in some interesting way, such as a video clip with a different soundtrack applied for humorous effect, or a digital map overlaid with user-supplied data.
Retrieved from "http://en.wiktionary.org/wiki/mashup"
Definition in French :
http://www.journaldunet.com/diaporama/0610-dicoweb2/8.shtml
Exemples :
http://www.housingmaps.com/ (Googlemaps + Craigslist)
http://googlemapsmania.blogspot.com
Retrieved from "http://en.wiktionary.org/wiki/mashup"
Definition in French :
http://www.journaldunet.com/diaporama/0610-dicoweb2/8.shtml
Exemples :
http://www.housingmaps.com/ (Googlemaps + Craigslist)
http://googlemapsmania.blogspot.com
jeudi 10 janvier 2008
FREEMIUM
The 'Freemium model' is the latest concept from Chris Armstrong, Editor-in-chief of Wired and best known for his 'Long Tail' theory. It could be resume in one sentence :
"experiment with giving away one thing to sell something else."
This means people can use for free a service or a product in a certain limit. Behind this limit the customer will have to pay.This business model has been around for a long time. Shareware always used a model like this and there are many successful software companies that have been built with this model.
Source: blog-conversion.com; wikipedia; http://blogs.icerocket.com/tag/buzz
Examples :
Skype – basic in network voice is free, out of network calling is a premium service
Flickr – a handful of pictures a month is free, heavy users convert to Pro
Trillian – the basic service is free, but there is paid version that is full featured
Newsgator – the web reader is free. If you want to synch with outlook and your mobile phone, that’s a paid service
Box.net – you get 1gb of virtual storage for free, but you have to pay for more than that
Webroot – you can get a free spyware scan, but for full protection you need to pay.
Copernic; MIT; Musicovery; Zylom;
Advantages:
- for customers the product is free.
- By using the free product the customer may found out other applications, that he didn't know about.
- The companies using the freemium concept attract many people to their site, and can sell other products.
Disadvantages:
- If the business plan is not good enough, a company giving away to much risks to create losses.
- Difficulties to stop free product, in order to concentrated on others
- Difficulties to make people addicted to freeware become buyers
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