Do Business Well

In the ‘post-dotcom’ era, one of the most important lessons learned by the survivors is that it takes more than a flashy Web site to succeed. It depends on a good business plan, promotion, focused customer service and an efficient distribution system. It also helps to be connected to a strong and trusted brand. When famous designer Ralph Lauren decided to launch his Polo brand on the Internet (www.polo.com), he joined forces with NBC (the National Broadcasting Co.), NBC.com and ValueVision Fulfilment services. Each of the partners brought its own specialism to the venture: Ralph Lauren supplies the product and the name recognition, NBC provides promotion on its networks and the Internet, and ValueVision handles distribution and customer service. The new venture went from birth to fulfilment in nine months and distributes a wide range of products, including clothing for men, women and children, as well as Ralph Lauren’s home collection. The state-of-the-art distribution centre was designed with versatility in mind, down to the last detail. Even the packaging design has a strong emphasis on customer care and branding. As explained by Howard Fox, Senior Vice President of ValueVision, ‘This isn’t just a normal pick-pack operation; Ralph Lauren takes a lot of pride in its packaging. It’s part of their imaging and branding.’ An efficient returns system is an important component to any dotcom. Polo.com is recognizing that the returns process is an extension of its customer care. Only about 10 per cent of all ordered items are actually returned. This is about half the average industry percentage for clothing-based distributors. It is also less than Polo.com originally expected.

Case study: ERGOBANK

Ergobank has a network of over 300 branches, employs 7,500 people and is one of the largest banking groups in Greece. It has recently expanded its activities outside the Greek borders to the neighbouring Balkan states of Bulgaria and Romania. The bank’s business areas cover retail, asset and private banking, where it has achieved leading positions, as well as the SM E sector. It has been rated A3 by Moody’s financial strength C, the highest in Greece, in a Company Profile during 2001.

Ergobank’s strategy is to focus on organic growth and operational cost reduction through investments in infrastructure and innovative products in order to brand the bank as an early adopter of new technologies. In particular, this means developing `new-economy’ business activities and alternative distribution channels such as PC- based Internet, digital TV and mobile phone via SMS and WAP. It has been a first mover in Greek e-Banking activities. Early electronic transactions centred upon telephone banking, and Internet banking operations commenced in February 2000. Gradually, mobile banking was developed, along with digital television, and in 2001 netBiz rated the service the ‘easiest and most user-friendly’ site providing both banking transactions and navigational information. A portal named Open24 was launched in March 2001, providing news, information, entertainment and search facilities. Interestingly, in contrast to the well-publicized branch closure programme in the UK, small physical branches of Open24 (staffed by real people!) have also been opened to provide express face-to-face services to customers. A proof of Ergobank’s success is that it was recently voted ‘Bank of the Year’ for Greece by The Banker, which nominated it the market leader in terms of ‘quality, dynamism, innovation and provision of financial services‘.

The bank currently has an Internet division but this is seen as an inseparable, integrated part of the overall business. Since it recognizes that competition derives not only from traditional players but from new entrants too, it has tried to offer a complete Internet banking package within a short period of time. Online operations have acted as a complement to the current activities and distribution channels, and have been an integrated part of the business strategy. The need for symbiosis of ‘clicks and ‘bricks’ operations is also seen from its www.open24.gr service and new `Open24 branches. The bank offers choice to its customers to conduct banking transaction and also provide them with other non-financial products. Since brands are considered the asset that will distinguish the winners in the Internet era, Ergobank has adopted a customer-led strategy and formed partnerships with other brand retailers to offer an information, services and shopping experience that combines both Internet and physical operations.

Possibly related posts: (automatically generated)
E-commerce Branding as part of Integrated Marketing Communication Strategy

• Mobile commerce & Internal communications
• Internet Banking Strategies
• Knox (2000) summarizes the potential rewards associated with successful branding.
• The Genie mobile Internet portal
• The future of E-Marketing
• Online Brand Creation
• Managing the Email Marketing List Part 1
• Categorizing Internet Direct Marketing Players continue...
• Networked organizations: the importance of business partnerships Part 2
• Business Financial Thumb Up rules, don’t Break the Bank

3 Comments »