For school project.

2. Content Introduction
•
Page •
•
Objective of Report & Background Information of HMV
Existing Sales Platforms
Rationales & Justification Behind Multi-Channel Retailing
• Current & Changing Retail Environment
SWOT Analysis
• Strengths, Weaknesses, Opportunities, Threats
Multi-Channel Retailing
• Unique Benefits of Each Sales Channel
• Synergy Created
• Issues of Multi-Channel Retailing
Retail Mix Strategy
• Target Market, Retail Mix
• Survey Results
• Conclusion & Recommendations

3. Objective of Report
To study and analyse HMV, a multi-
channel retailer, its target market and
retail mix, in relation to the retail
scene in the lifestyle industry, current
market trends and influences, and the
growth of the worldwide trend of e-
tailing to support traditional brick and
mortar businesses, and to find out the
opportunities and threats facing HMV.

4. Introduction to HMV
• International Retail Chain from the UK
• Sells Lifestyle Products like Books,
Music, Videos and Games
• Found in London, England on 20 July
1921
• Headquartered in Maidenhead,
Berkshire in the UK
• Today, HMV is a well-known trademark
in the world with operations
worldwide
• In Singapore, HMV also offers movie
merchandise like T-shirts, and soft toys
to differentiate itself from others in the
music industry

5. Existing Sales Platforms
• Physical Stores
In Singapore, HMV only has 1 physical
outlet, which is located in
313@Somerset, #04-23/24, in the prime
shopping district.
• Digital Stores
HMV has 3 localized e-tailing websites in
the United Kingdom, Hong Kong and
Canada. However, the UK website,
hmv.com, ships to 148 countries,
including Singapore.

6. Rationales &
Justifications behind
Multi-Channel Retailing
• Physical Store – Browsing, touch and feel
attributes; social interaction
• Online Store – Some products do not
require touch and feel attributes e.g.
concert tickets
• Attract new market and increase sales
• Reach out to new consumers while
satisfying existing consumers better

7. Current & Changing
Retail Environment
• New & Innovative Retail Concepts
E.g. Venue VBOX, Digital Billboards and
Self-Checkout Counter
• Increase in Use of Technology
• Physical Shops Venture into E-Tailing
E.g. The Face Shop, Kinokuniya
• Increase in Pace of Life
• Increase of Shopping Malls
• Increase in Purchasing Power of
Singaporeans

8. VBOX

9. S.W.O.T. Analysis
Specialized One-Step Solution for Multimedia
Marketing Lovers
Expertise
Innovative Badges Autographed by Celebs
Products With the Sale of CDs
Good Prime Shopping District means
Location High Human Traffic
Consumer- Preview of CDs and Movies in
oriented Physical Outlets
Processes
Partnership Partnered up with Cinema
Operator, Curzon, to offer a
Differentiated Cinematic
Experience

10. S. W.O.T. Analysis
Lack of Marketing Efforts Only Evident
Marketing Through Online Mediums and
Word-of-Mouth
Limited Located Exclusively in Prime
Locations Shopping Districts

11. S.W. O.T. Analysis
Venture into Mainly Focused on Music and Movie
New Market Markets
Segments Not Enough Game and Book
Specialities
More Stiff Competition in the Industry
Advertising to
Create Brand Advertising Makes Consumers Take
Awareness Note of Brand Name
Increase Only 1 Physical Outlet in Somerset,
Number of Making it Inconvenient for
Sales Consumers
Channels Set up More Localised E-Tailing
Websites so that Products Reach
Consumer s Faster

12. T
S.W.O. . Analysis
Price Wars That CD Shop Offers Bundled CD
Promotions like 3 CDs for $49.90
Innovation New Disc Village – Listening Jacks
from with High Audio Quality
Competitors CD Hut Sells Remastered CDs
Pirated Illegal Digital Downloads from the
Music Internet
Online Trend to Buy Music from Online
Retailers Retailers like iTunes, Amazon
Would Not Think of HMV First
When Purchasing Music Online

13. Unique Benefits of Each
Channel
• Physical stores
• E-tailing
• E-mailing
• Call centre
• Smartphone applications

14. Synergy Created from
Multi-Channel Retailing
• Check consumer’s satisfaction
levels through online surveys
• Overcome limitations that
physical channel alone cannot
offer

15. Issues of Multi-Channel
Retailing
Maintain Brand Constantly keep websites up-to-
Image across date with the newest product
Channels offerings
Merchandise Online channel offers wider
Assortment variety of products than its
Offered in Each physical counterpart
Channel
Pricing across Some products on its e-tailing
Channels website cost cheaper due to
competition from online retailers
Centralized Difficulty in keeping up with the
Customer widening consumer database
Database

16. Target Customers
• Market segmentation
• Psychographic/Behavioral/Age
• Aged 13 and above
• Deep assortment of products
• Caters to trend-conscious with
other merchandise
• Gaming/Book markets

17. Retail Mix
Merchandise
• Breadth and depth
• Specialty store focusing on lifestyle format
(music/movies)
• Mall-based retailer
• Up-to-date website
Merchandising Pricing
• Priced lower
• No price reductions on new stocks (weekly)
• Product bundling on old stocks
• Increase profits
• Lower inventory risk

18. Retail Mix
Advertising & Promotions
• No mainstream media
• Sales promotions online
• In-store advertising – window displays; off-
shelf promotions
Store Design
• Visual merchandising
• Gondola shelves
• Floor-to-ceiling wall-mounted shelves
• Display shelves below cashier
• Posters on window displays
• Rectangular layout
• Locate products easily

19. Retail Mix
Customer Service
• Limited, non-initiative
Store Location
Singapore
• Contemporary place that sells on-trend
shopping products
• Locals’ and tourists’ favourite district
Other Countries
• United Kingdom, Ireland, Australia, USA,
Canada, Hong Kong, Japan and India
• Increase international brand recognition

20. Survey Results
• 82% know of HMV
• 52% brought from HMV before
48% bought digital music
• 44% source Internet for music
• 68% prefer hit track over whole
album
• 78% want HMV to have more
outlets
• 36% rated HMV 3 out of 10

21. Conclusion
• Successful in creating brand
awareness
• Retain customer loyalty
• Threat from illegal digital market
• Offer more differentiated
innovations
• More aggressive marketing
campaigns locally
• More stores in Singapore

22. Recommendations
• More advertising/promotion
activities to create brand awareness
• Open more outlets (physical/online)
• Improve book/gaming merchandise
• Invest more money into online
channel
• Same assortment across both
channels
• Revise pricing strategy against
competitors’
• Save falling sales in physical stores