Offer a new distribution Value

But some customers don't even have the time to come and get their sandwich and would like a home delivery.

The Baker isn't organized to produce bread and sandwiches, sell them in his shop and, on top of it, do home deliveries.

In addition to the intrinsic Product Value is the distribution Value, that is to say the possibility of obtaining the Product by different channels. The same Product can be sold in a shop, by telephone or by Internet. The easier the access to the Product, the more important its distribution Value is.

The Baker continues to handle the distribution in his shop and dedicates Operators to take the orders over the phone. He gains new customers who cannot easily get to his shop.

  1. The Offer Value is not the Product or Service Value: the Customer experience

    Many Enterprises do not Produce: they are content to Distribute. They have understood that what is important is not controlling the Product, but controlling the Customer: we look to be present upstream in the Value chain, as close to the customer as possible.

    Remember that the Offer Value is not only found in the Product Value, but also in:
    • The Distribution Value
      • Good Operational marketing, whether it is advertising, a mailing campaign, or a personalized offer, is an asset to successful selling
      • The quality of the welcome, whether it is in a shop, on the phone or on the Internet is also an asset
      • Product availability
      • Transaction speed
      • Delivery and installation efficiency
    • And, of course, the cost and financing facilities

    The "Customer Experience" refers to the set of emotions and feelings felt by a customer before, during and after buying a Product (see the Definition of the Customer experience).
    This one term groups together the different themes that enable us to attract and retain the Customer because we consider today that these themes should answer a concerted strategy to:

    • Identify the Customer whatever the contact point
    • Understand the Customer expectations
    • Understand how they view the Brand and the Products of an Enterprise
    • Analyze which contact points are favored by which Customers: which channels, which means of access
    • Imagine how to keep the Clientele
    • Evaluate the cost of acquiring a Customer
    • Be informed of each Customer's consumption to know how to react

  2. Some examples

    • One interesting example is that of Shazam who created a Solution on mobiles to identify a piece of music from listening to it. When the tune has been identified, the user can buy it by simply clicking on a button. Today, 12% of music sales is through Shazam!
    • Booking.com today has almost a 40% share of the hotel market and recovers an average margin of 20% to 30% on the sales made. It is a real threat to the profitability of the hotel industry which ensures the Production.
    • Supermarkets have not innovated in Products, but in a new Distribution Model, which have allowed them to reach a size and negotiation power so as to reduce their Product purchase costs. Today, they evolve by proposing own-label Products. 
    • Buying Products on the Internet is a new form of distribution that reduces the classic forms of distribution by the same amount
      • Goods: practically all goods can be bought over the Internet
      • Information: music, cinema, news...
      • Services: carpooling,...

  3. The "SOLOMO"

    "Social Local Mobile" is a new form of distribution that targets Mobile users using social networks and geolocation.
    The idea is to enter into a personalized relationship with customers to give them targeted information when they pass close by a sales outlet: it is a very relevant geolocated Offer.

    Les Echos: Solomo (article in French)
Licence Creative Commons
The story of George the Baker is made available under the terms of the
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