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Redhawks Consulting. Decathlon China. The Challenge. Using social media to... increase sales in the short term increase market share in the long term. Recommendation. Outsource online presence. Table of Contents. Analysis External Analysis Internal Analysis Alternatives
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Redhawks Consulting Decathlon China
The Challenge Using social media to... • increase sales in the short term • increase market share in the long term
Recommendation • Outsource online presence
Table of Contents • Analysis • External Analysis • Internal Analysis • Alternatives • Recommendation • Implementation
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
P.E.S.T.L.E. • Population • 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 External/ Internal Analysis
Current Marketing Mix Internal Analysis
Value Chain Margin • Strength • brick-and-mortar • Weakness • virtual presence Internal Analysis
Alternatives Alternative #1 Expand brick-and-mortar presence Alternative #2 Handle social media marketing internally Alternative #3 Outsource online presence Alternatives
Alternative #1 Expand brick-and-mortar presence Alternatives
Alternative #2 Handle social media marketing internally Alternatives
Alternative #3 Outsource online presence Alternatives
Key Success Factors Alternatives
WEIGHTED Competitive Strength Analysis . . 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
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 Implementation
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 Implementation
Short-Term Milestone Review Implementation
Long-Term Milestone Review Implementation
Contingency Implementation
Redhawks Consulting Decathlon China