Marketing
There are three distinct markets that CSI must gear its marketing efforts towards: 1) The Tenant/Retailer, 2) The Landlord, and 3) The Consumer. CSI intends to segment its marketing approach to insure that all of the necessary groups are getting adequate marketing attention.
The Tenant/Retailer Market
The $2 trillion retail market consists of both store and non-store retailers. Store retailing accounts for 95% ($1.9 trillion). The $ 100 billion of non-store retailing consists of catalog sales ($65 billion), direct sales ($11 billion), television retailing ($3 billion) and direct mail/outbound telemarketing ($21 billion). The non-store market is growing at a significantly higher rate than the store market. The growth, however, is primarily from store retailers looking at the benefits and potential of the non-store market. Two good examples are J.C. Penny creating its own video catalog and Macy's developing its own "Home Shopping" cable TV channel.
After evaluating the trends in the market, CSI will target its efforts towards traditional store retailers that are considering, or should be considering, retailing in a non-store environment. CSI will also focus on store and/or non-store retailers that have an existing telemarketing operation, such as Dayton Hudson, J.C. Penney, The Sharper Image, etc.. Those retailers with both an existing telemarketing operation as well as retail store locations will immediately understand the economic benefits of this proposed retailing concept. CSI will more easily convert existing telemarketing operations, with the use of the RPCD, to video telemarketing oprations.
A.Y. Cook, CSI's President, will be the point person in the company's marketing efforts toward these potential tenants. Ms. Cook has demonstrated that she can sign major tenants as is evidenced by the DAMARK and AMEX contracts. Her primary marketing strategy will be one of direct contact. Whether direct mail or telephone, Ms. Cook will make contact with the appropriate management at the target retailer to present the Point 'n Click Shopping concept. This method has been well received thus far, as Ms. Cook has been extremely adept at gaining access to the decision makers at IBM, Dayton Hudson, and Best Buy. CSI also intends to display and demonstrate its products at various trade shows sponsored by the Direct Marketing Association and the Catalog Conference.
The Landlord Market
The marketing plan regarding the landlord market is two-fold. First, CSI will identify those locations that will be attractive to existing and future tenants. Second, CSI will identify the "landlords" located in those locations that will be potential strategic capital partners. The company's objective, with respect to soliciting landlord or site locations, is to provide an ample qualified traffic count, while at the same time identifying a corporate partner with multiple "like" locations.
James Watt will have the primary responsibility for locating and securing future PCB sites. Mr. Watt will use the initial Bob's site as a marketing tool with which to attract new landlord partners.
Mr. Watt will gather statistical information regarding increased traffic, free publicity for the landlord and customer acceptance/approval of the PCB to bolster his marketing presentation. He will also bring prospective landlords to the test site to witness the entire operations.
Upon identification and prioritization of future landlord sites, CSI will initiate a direct marketing campaign to solicit additional landlord locations. The company has also developed a Joint Venture financial model that demonstrates extremely attractive economic returns to the landlord of a partnership with CSI. The combination of a live operating site with the economic incentive package should greatly aid in the proliferation of future landlord locations.
Based upon research from the consumers at the Bob's facility and various catalog retailers who have been introduced to the concept, it has been suggested that CSI target four primary landlord locations: 1) Airline Frequent Flyer Lounges, 2) Hotel Lobbies, 3) Large Multi-Tenant and Single Tenant Office Complexes and 4) Universities. The company is now aggressively pursuing these locations and has several under contract in both the Chicago and Atlanta markets.
The Consumer Market
The ultimate success of this venture is predicated upon CSI's ability to attract consumers to use the PCB. The demographics of the early locations must be consistent with the data that suggests "Early Adapters," people most comfortable with new technology, will be the first group to use the PCB. CSI intends to use the PCB itself to advertise to this target group of consumers. CSI will prepare a series of full motion broadcast quality ads to run on the Video Monitor that demonstrate the PCB and what Point n' Click Shopping is all about. CSI's primary goal is to raise consumer confidence and comfort with the PCB as a distribution outlet for goods and services.
In addition to the ad campaign on the video monitor, CSI will seek outside media coverage for additional credibility and publicity. The "Grand Opening" of the inaugural 20 PCB locations will be designed as a media event. The company is currently working with different advertising and public relations firms to craft a well executed PR campaign. CSI will also solicit interest from the local media by sending direct mail announcing the event. The company will also continue to employ various media groups to assist in the promotion of the PCB through the use of news releases and article submissions. CSI intents to pursue like strategies in subsequent markets in which the company establishes additional PCB sites.
CSI has also begun the groundwork of developing a customer affinity program. The Shopper Tracker (ST) will enable CSI to capture customer demographics for our tenant retailers. More importantly, it will provide the customer with an accumulated point system which will encourage repeat business through our Point'n Click Network. We will communicate directly with customers who have access to a PCB via our Bi-Monthly newsletter to our ST members. It is through this communication that we can announce various promotions and new tenants, thereby creating a direct link to our most important customers.
