BRAND

MANAGEMENT
COMPANY INTRODUCTION
Basic facts about Design Hub

O Design Hub is a Qatari based O Design Hub.com listed with the

fashion design company. tagline, ‘Earth’s biggest bookstore’.

O Headquartered in Doha, it is one O Posted a net revenue of $34.2

of the leading fashion design billion and net income of $1.15
companies. billion in 2010.

O Saleh Al Musallam founded O Design Hub boasts of a customer

Design Hub in…... and the site went base of 137 million which is more
online in…... than twice that of GROUPON

O The name Design Hub was chosen O In 2 years Design Hub went from
because…. 1 to 16 categories

O Design Hub one brand but soon O By introducing 2 new product

diversified into 4 different brands. categories every year for almost 2
years, Design Hub market share is
growing positively in retail sales.

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DID YOU KNOW?
all these companies belong to Design Hub…

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OTHER DESIGN HUB INITIATIVES
Companies with Mother brand name

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OTHER DESIGN HUB INITIATIVES
Companies with Mother brand name

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BRAND
DIAGNOSTICS

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TARGET GROUP
Basic Outlook on TG
O Fashion conscious – Primarily
those who are comfortable with
new brands.
O Both male and female, mostly
in the age group 12 – 55.
O Educated and are looking for
different non-traditional brands.
O From all over the GCC. Design Hub
is a local company with a global
vision and looks for customers all
around the world. They have got tie-
ups with third party customers for
international coverage.
O Retailers. Design Hub primary
objective is to bring maximum
number of reliable retailers under it.
O New trend shoppers. New target
group Design Hub is trying to capture.
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COMPETITORS
Classification

Competitors of Design Hub can be

classified into
Category Example O Design Hub Inc being a
multinational e-commerce
1 mass retailers Proman
company and due to its
2 Online specialized retailers Fanilla Couture presence over various e-
3 Mass retailers (As this is the Lulu, Family commerce categories have a
main revenue source of Food lot of competitors in various
Design Hub.cm) Ansar Gallery, categories
sports corner.
O For example
4 Brick and Mortar retailers Wal-Mart, Sears rottentomatoes.com is a
5 E-book readers (As kindle is Kobo e-reader, competitor for IMDB.com and
a main revenue generator Apple i-pad, Google App Engine is a
for Design Hub.com through Barnes and competitor for Design Hub
both its own sales and Nobles Cybook Web Services. These two in
induced e-book downloads) actual becomes competitor
for Design Hub Inc but not
6 Social buying sites Groupon, Design Hub.com
dealmap
O Here we are considering
only the online
retailing/retailing division of
Design Hub.com and8have of 53
classified the competitors
COMPETITORS
Design Hub Vs Ebay
Even though the business models of Design Hub.com and EBay.com are
different EBay is one of the major competitor for Design Hub.
1. Normal retailing model of
business
2. Faster search and
transaction speed
3. More trusted brand by
customers
4. Products are on an average
cheaper than any other site
5. Late in global entry and not
fully utilized global
distribution
6. Best in the industry in
customer service
7. Simplicity due to one listing
per product
1. Auction model of retailing
2. More number of sellers and
buyers
3. Lesser inventory cost
4. Better reach and global
presence (Design Hub still
doesn’t have a specialized
unit in India where as
ebay.in is doing well)
5. Good customer service and
very less error rate
6. Multiple listing per product.
7. Better margins for sellers
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COMPETITORS
Design Hub Vs Walmart

As Wal-Mart has entered into online retailing it poses as a major threat to

Design Hub.com. The increasing presence of Design Hub in web space was the
reason which made Wal-mart jump into online retailing at the first place. Design
Hub is supposed to overtake Wal-Mart in total revenues by 2025

1. Largest online retailer

1. Largest retailer
2. No store presence
3. Online sales of 34 billion in 2. Online sales of 4 billion in
2010 2010
4. 40% growth in 2010 3. Store sales around 400
5. Better prices than walmart !!! billion in 2010
(cheaper by almost 19 %) 4. Better brand value due to
6. Diversified portfolio with store presence
futuristic outlook 5. 17% growth in 2010
7. Customer base of 137 million 6. Low profit margin
8. Subsidiaries in 7 countries 7. Customer base of 200
9. Customer service ranking is 1 million
10.28 acquisitions till date 8. Subsidiaries in 14 countries
9. Customer service ranking is
10
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10.14 acquisitions till date
KEY DRIVERS OF GROWTH (1/2)
Third Party Unit Growth and Prime/Free Shipping

O Third Party or Seller Business is a key

driver of growth for Design Hub

O It allows Design Hub to increase

selection and grow faster

O It also helps push down prices on Design

Hub as Third Parties fight for buyers

O Another key driver of growth is

Design Hub Prime - Design Hub's
program that gives annual free two-
day shipping for a $79 subscription

O The graph shows that Prime is

driving significant growth
internationally (primarily Europe)

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KEY DRIVERS OF GROWTH (2/2)
Third Party Unit Growth and Prime/Free Shipping
O Shipping costs have increased
over the years and in 2Q 2011, the
shipping cost was 4.9%
O This could mean that more users
might register for Design Hub
Prime

O The e-commerce market is growing at

14% and every Design Hub segment is
growing faster
O Electronics and General Merchandise
market in US is growing five times the
US
e-commerce
*Mediamarket
US – Media (books, music, video games, kindle
ebooks) in US
*Media Intl – Media International
*EGM US – Electronics and General Merchandize in US
*EGM Intl – Electronics and General Merchandize
International

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CONSUMER INSIGHTS (1/2)
Insights that will shape Design Hub
Building Trust
When Design Hub started they found
out that their main issue was the
doubtfulness inside the customers
towards e-commerce and Design Hub.
From this insight Design Hub will
come up with the idea of “customer
reviews”. When people see other
people’s review they feel more
confident to do the purchase.
Increasing Sales
Design Hub will leverage through
collecting database information to
find the relation between the next
purchase and current purchase.
Based on this we will developed a
recommendation module which
suggests a set of commercialized
products to the customer.
Competitive Designs
It was found out that the
customers who come to an online
shop are there basically because of
the ease of shopping. They like the
reduced hassle and no-queue
process. Based on this insight
Design Hub developed a process
called one-click ordering and
patented it.
Prime Customers
From the insight that many
customers feel that delivery
charges are non value adding
items and felt looted for paying
that Design Hub came up with the
idea of Design Hub prime. For a
subscription price the subscriber
gets one year free delivery.
13 This
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also induced brand loyalty.
CONSUMER INSIGHTS (2/2)
Insights that will shape Design Hub
SEO
Soon after Google became a leader
in online search Design Hub must
identify that many of the potential
customers search in Google for
landing into a page for online
purchase. Design Hub strengthened
its search engine optimization
(SEO). Design Hub has
248,000,000 pages stored in
Google's index. Each of these
pages has the opportunity to rank
for any number of keywords in
search engines.
Affiliate Marketing
Design Hub found out that when
there is more involvement with the
brand, the consumer himself will act
as a brand ambassador. Design Hub
thus started affiliate marketing.
People loved to recommend the
Acquisitions
Design Hub found out lately that its
customers mostly belong to age
group of 30-50. So they wanted to
get to know more about young
customers. Rather than changing the
current image they acquired
company’s which were targeting
youth such as Zappos and woot.
Also they found that customers to
digital camera and books go to
specified sites and communities to
discuss and search products. With
this insight they acquired
dpreview which is the leading
review site on digital camera and
shelfari for book community14 of 53
CUSTOMER CARE
Services that increase brand loyalty
O “If you make customers unhappy
on the Internet, they can each tell
6,000 friends”
Jeff Bezos (CEO Design Hub).
O Design Hub’s customer service
was ranked No 1 in 2009 and
2011 by American Customer
Satisfaction Index
O Following a bottom-up
approach, every decision at Design
Hub is driven by the customer's
needs.
O Every employee, even the CEO,
spends two days every two years
on the service desk to answer calls
and help customers
Design Hub introduced many of the
current ubiquitous best-practices to
e-commerce industry. Below are a
list of innovations bought by them
Year Innovation
1995 Customer reviews
1997 Recommendations &
bundles
1997 1-Click Ordering
2001 Look inside the book
2001 Where's my stuff
2002 Free Super Saver
Shipping
2003 Search inside the book
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INCREASING SELLER & CUSTOMER BASE
Basic Strategy

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 HANDLING COMPLAINTS
Telephonic •Heavy focus on customer service
•Provides an easy interface for customers to
Customer register their complaints
service Email
channels •All queries and complaints are addressed
immediately
Chat •Customer feedback on products and
packaging
•Liberal return and replacement policies

asy Return of goods (no questions asked)

Can return own purchases

Can return gift items
Sell online after return date
Fast refunds and replacemen

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CUSTOMER RETENTION
Strategies followed to retain the current customers

Design Hub benefits from a loyal Total Customer accounts in millions

customer base: 2/3 of the sales
comes from returning
customers

In 2007 Design Hub launched

Design Hub Payments to directly
compete with PayPal. This also 200
introduced barriers to entry for 137
new players as they will have to 94
adjust to current payment
methods. The new payment 20
system worked as an add-on
Apple Amazon Paypal NetFlix
customer service

Introduced Design Hub gift

cards for inducing trial and
repeat purchase.

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CUSTOMER RETENTION
Strategies followed to retain the current customers
Vertical Integration
Kindle became another reason for
customers to come back to Design
Hub.
Huge seller base
A customer base of 137 millions
makes it impossible for any seller
to neglect Design Hub and they
joins in which in turn increases
customer base due to large
collection of items
Lock in
Design Hub made it difficult for
customers to switch platforms for
reading their e-book through their
proprietary format
Special Offers everyday
Plays with various offers in Design
Hub instant video, the video on
demand service.
Personalized store
Personalized pages tracking past
purchase behavior and using
modern algorithms to give
recommendations. Also the look and
feel of the page keeps on changing
to give a modern outlook
Design Hub Prime
Annual subscription saving schemes
for loyal customers
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LAYERING OF THE BRAND

Purpose
• Quality products at
affordable prices

Self • Tech savvy image

Expression • Next generation outlook

• Reliability and trust

Emotional • Secure transactions

• Lowest prices
Functional • Ease of purchase and
delivery

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KANO’S MODEL
Model for product development and Customer Satisfaction

Excitement Attributes
Everyday GOLD BOX deals
Customer reviews
Content search
Kindle e-book reader
Sensible recommendations

Performance
Attributes
Minimal Time to delivery
Easy navigation through site
Free shipping
Wide collection
One click service

Threshold or Basic
Attributes
Online shopping
Product comparison
Low prices
Reliable and hassle free
payment
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BRAND PORTFOLIO ANALYSIS
BCG Matrix

STARS QUESTION MARK

•Design Hub Kindle •Pinzon- Private Label
HIGH

•Design Hub Fresh •Design Hub Web Services

?
Market Growth Rate

•Design Hub.com •Zappos.com

•Diapers.com •Lovefilm.com
•Instant Video
CASH COW DOGS
•IMDB •Design Hub mp3
LOW

•Alexa •Amzon Cloud

•Audible.com •Pets.com
•Createspace

HIGH LOW
Relative Market Share

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 Innovation Online
bookstore

Introduction Largest
catalogue, home
delivery of books
Growth Diversification:
Electronics,
apparel, CD, DVD
BRAND LIFE CYCLE

etc.
Acquisitions :
Maturity
Joyo, IMDB .
MobiPocket etc.
Decline
Spinoffs: A9,
Lab126,
endless.com etc.
Innovation Design Hub web
services, publishing

Growth MAC downloads,

MP3s, International
expansion
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 EMERGING TRENDS
Internet Retailing Performance and Growth prospects by Category
2010-15
% CAGR 2010-2015

20
Beauty and Personal Care Internet Retailing
18
16 Clothing and Footwear Internet Retailing

14 Consumer Electronics Internet Retailing

12 Consumer Healthcare Internet Retailing
10
DIY and Gardening Internet Retailing
8
6 Consumer Appliances Internet Retailing

4 Home Care Internet Retailing

2
Housewares and Home Furnishings Internet
0 Retailing
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000
Media Products Internet Retailing
Market Size 2010 (US$ mn, rsp excl sales tax) Food and Drink Internet Retailing

Note: Bubble size shows growth in absolute value terms over 2010-2015

Source: Euromonitor

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BRAND ARCHITECTURE

Endorsing O Design Hub follows a hybrid

Product Brand Source Brand structure while developing new
Brand
Architecture Architecture
Architecture brands

O It follows a mix of product,

source and endorsing brand
architecture

O It is also a result of
unplanned portfolio growth

O They used product brand

architecture whenever they
acquired other internet based
firms whose offerings where
different from the core offering
provided by Design Hub

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DESIGN HUB KINDLE
Brand Architecture and Other details

Umbrella
O The Design Hub Kindle is Brand
an e-book Architecture
reader developed by
Design Hub.com subsidiary Design
Lab126 which uses wireless Hub
connectivity to enable users Kindle
to shop for, download,
browse, and read e-books,
Kindle 2
newspapers, magazines,
blogs, and other digital
media.
Kindle DX
O With the Kindle effect, the
e-book sales of Design Hub
surpassed paper book sales Kindle DX
for the first time in last Graphite
quarter of 2010.

O Due to its technological Kindle 3

nature and short life span,
Kindle follows a umbrella
brand architecture model
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CUSTOMER PROFILING
WALKING WOUNDED
1. Some of the current users who
are dissatisfied about shipping
delays
2. Customers who faced
technical glitch and their cash
got locked in
MISSING IN ACTION
1. Registered inactive users
2. Loyal customers of other
competitors
3. Customers who are doubtful
towards online payment
modes
CHAMPION
1. Repeat purchasers
2. Customers who give reviews
and ratings to different
services
3. Early adopters of technology
4. Those who enrolled for prime
membership program
TERRORIST
1. Dissatisfied customers
spreading their opinion
through social media sites
2. Hard core I pad fans creating
disruptive blogs against kindle
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INTELLECTUAL PROPERTY
Patents and Trademarks

O The actual technology that allows a Kindle to operate probably

relies on several if not dozens of patented apparatuses and processes
that Design Hub either holds the patent to or licenses from the patent holder.
O The Design Hub and Kindle brands are most certainly registered trademarks.
O Most of the books that are downloaded for Kindle are copyrighted, and Design
Hub has a deal with the publisher/author to distribute the content electronically.
O Design Hub.com’s 1-Click Ordering: Storing a customer's billing information so that
they do not have to enter it every time they make a purchase is also
patented. It is also commonly referred to as 1-Click Checkout.
O Design Hub.com’s Internet-Based Customer Referral System:
It is patented on the process of allowing other websites
market their books for a commission.
O Design Hub.com has also been awarded patent for an automated system called “gift
conversion” wizard that would allow users to return Design Hub-derived gifts even
before the order was shipped.
O Design Hub.com has also filed a patent for mini-airbags like protection for cellphones.
There will be an airbag deployable from the side of the cellphone when it senses that
will inflate when it senses that the cellphone will hit the ground.

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BRAND PERSONALITY
Aaker’s Model for Brand Personality

SINCERITY
Down Hones Whole Cheerf The Green filled cells are the

to earth t some ul
associated characters for Design Hub
as a person

Even though Design Hub is functioning

in an online market, due to its low price
strategy it has avoided to bring a
sophisticated image to itself

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PRICING STRATEGY
Cost Leadership

Strategy Features
●
Consistently Lower prices ●
Pre-Order Price Guarantee - For items to be launched
recently.
●
Maximizing long-term profits by ●
No Post order price match.
increasing market share ●
No price match with other retailers.
●
14 day post order price match for TVs.
●
Lowered costs through economies ●
Most recent price for items in shopping cart.
of scale Displayed price is the full retail price (excluding shipping)
●

New Opportunities:
Revenue opportunities through bundling or products.
Design Hub prime : Next day shipping > Customer switch from other
sites.
Average of 5-6% of revenue comes from shipping

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ADVERTISING, SALES AND PROMOTION
STRATEGIES
Attractive Advertising and Selling Plans available on Design Hub.com

O Upload product catalog and set budget

O Customers see seller’s product ads on Design Hub.com
O Customers click to product pages on seller’s website
O Seller’s are charged a cost-per-click
O Customers purchase products from seller’s website

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BRAND ASSET VALUATOR MODEL
Measuring Brand value

Brand vitality Brand Structure

Differentiation Relevance Knowledge

Measures the Highly diversified Esteem High penetration of
product portfolio Always brand due to large
uniqueness of Highly relevant portfolio
the brand products for keeping Strong brand
Lowest prices majority of the promise identity
consistently target segment High quality of Investments in
Easy to use Reduction in brand building has
savings and
service increased the
interface shipping options Most popular awareness levels
Unique shipping appeals to majority online retailer among target
offerings of customers market

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BRAND
PLAN

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VISION AND MISSION

"Our vision is to be earth's

most customer centric
company; to build a place
where people can come to find
and discover anything they
might want to buy online.“

All the activities including promotions, marketing campaigns,

acquisitions etc. are aligned towards this common vision of the
company.

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TARGET GROUP
Market Segmentation

Demographic segmentation Geographic segmentation

1. For those who have access to internet
2. When income increases, so does the
number of online purchases ( E&Y Study).
3. 41 percent of online shoppers between
the ages of 35 and 49. 55 percent male
and 49 percent female internet users
prefer Design Hub.com for online
purchases
4. Recently increased focus to younger
class (20-30 year old)
1. Appeals to customers all over the world
2. Sell digital products where their
merchandise sales are difficult (e books)
3. US still main revenue generator.
4. Has seven international websites for
Japan, China, Canada, UK, Germany,
France and US
5. Have not started direct sales in India.
Uses sending which adds extra charges
to customers

Psychographic segmentation Situation segmentation

1. Focuses on personalization and customer 1. Most online purchases done for
loyalty convenience
2. Keep a modern and dynamic image by 2. Keeps on adding categories for catching
renovating site design frequently. every customer and every situation
3. Quality customer service department to 3. Sale inducing gold box deals everyday
build long term relationships with 4. Attractive offers with video on demand
customers 5. Low pricing also an encouraging factor
4. Helps customers find and recommend for online purchases
things they enjoy, rather than push
products
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 BRAND IDENTITY (1/2)
Aaker’s Brand Identity Planning Model

Brand as Brand as
Brand as Brand as
Organization symbol
Product Person
Innovative Symbol for
Wide range Honest reliability
Lowest price Customer
Reliable Functional
High service friendly appeal
Reliability Global Timely
Modern/Wit
Value for
Trustworth Energetic
money h less
y Friend heritage

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BRAND IDENTITY (2/2)
The Brand identity prism

• Internet-based • World's largest online retailer

• Started as an online • Established separate
bookstore websites in different countries
• Sells a wide range of Pe
ue rso • Acquired multiple
i q na organizations
products now ys lity and
Ph
• Attractive Prices websites
Self-Image

• Accessible • Punctual

Culture
• Customer centric • Environment-
• Exclusive friendly
products Online Shopping Giant
Re
fle
c s hip
tio
n at ion • Offers international shipping
l
• Buy everything at the Re
to certain countries for
click of a button
some products
• Easy shopping in less
time
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DISTRIBUTION STRATEGY
Digitally driven distribution network
Design Hub understood that sustainable massive growth can be obtained only
through developing distribution network. They poached 2 of Wal-Mart's critical
employees.
O Richard Dalzell as its Chief Information Officer
O Jimmy Wright as its Chief Logistics Officer

They were responsible for Wal-Mart's computerized supply chain and impressive
supply-and-distribution network . Wal-Mart filed a suit in 1998 which was settled
outside the court.

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DISTRIBUTION STRATEGY
Digitally driven distribution network
With the help of Richard and Jimmy
Design Hub started its process of
developing a world class distribution
network and circumvent other
distributors
They massively used IT for
developing their supply chain and
logistics. This was copied after seeing
the success of Wal-mart.
In 2000 70% of Design Hub’s software
development concerned about
distribution centers.
As a part of completely controlling its
distribution, Design Hub Fresh
implemented its own delivery network
Started in-sourcing the value chain to
have more control over distribution
Ex. Acquired book surge (now
createspace) which was a print on
demand company. This helped Design
Hub to reduce their dependence on
suppliers and also inventory level.
Now entered digital
distribution through
kindle, Design Hub mp3,
instavideo etc. This
means every book/song
is available in 60
seconds.
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CAPTURING NEW TRENDS

●
Social commerce
●
Resource sharing
●
Cloud based services
●
Alexa web information services

Web 2.0

●
Aims at creating an end-to end
shopping experience for the
customer
●
Consolidated shipping

Product to services

●
Investment in Engine Yard, a 40 of 53
PaaS company
SWOT ANALYSIS
For Design Hub.com in Retailing industry

STRENGT WEAKNESSE
1. America's largest online retailer
2. HS S shipping offers would be a
1. Free
Robust brand image enhances
challenge in the long run
bargaining power
2. Patent infringement issues erode
3. Diversified into product lines other
stakeholder confidence
than books to strengthen customer
3. Late in entering emerging markets
reach
like China and India
4. Kindle builds strong presence in the
eBooks 

OPPURTUNITI THREATS
1. ES
Acquisitions extend product line and 1. Poor publicity with publishers due to
strengthen technical platform the pricing model
2. Increase in online retail sales in the 2. Launch of Apple's iPad intensifies
US competition
3. Foreign exchange fluctuation

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 PORTER’S 5 FORCES
Analysis of Online Retailing Industry
1. Low barriers to entry
Industry 2. New technologies can be disruptive
1. Comparison sites gives Rivalry - 3. Less brand loyalty towards online shops
price variations in High 4. High probability of new entrants
different sites
5. Can utilize economies of scale
2. Buyer has complete
6. Can come up with better range of products
information Buyer
3. Wide buying options Power -
available High
4. Lot of product review
sites 1. Large number of
5. With social media, suppliers
word of mouth 2. Global distribution
becomes an important networks intensifying
feedback point. competition
3. High bargaining
power of big shot
Threat of Threat of
Substitutes- New Entrants
retailers
Moderate - High 4. Less differentiation in
1. More choices in online stores and cheaper product
prices 5. Focus on low prices
2. lack the touch and feel factor lead to low customer
Supplier
3. Large presence of physical retailers and Power -
loyalty
shops Low
4. Online shopping becoming increasingly
widespread

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BRAND EXTENSION OPPORTUNITIES
Design Hub Movies– The strong industry knowledge with IMDB and
CDNow can be leveraged to create an online movie rental business in the lines
of Blockbuster.

Design Hub Wallet– A common and secure payment gateway along the
lines of PayPal, which can be leveraged by other e-commerce sites.

Design Hub World – A social commerce platform which enables users to

discuss, review and recommend products and services with their friends and
acquaintances, linked with Design Hub.com user base.

Design Hub Scholar – Range learning equipments such as Scientific

and Financial calculators. The brand already has created an association with
electronics with Kindle.

Design Hub Global – A facility which simplifies purchase, shipping and

taking care of other formalities for items purchased from any Global location
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MARKETING STRATEGIES OF DESIGN HUB

Design Hub.com bases its marketing strategy on six pillars.

1. It freely proffers products and services.
2. It uses a customer-friendly interface.
3. It scales easily from small to large.
4. It exploits its affiliate’s products and resources.
5. It uses existing communication systems.
6. It utilizes universal behaviours and mentalities.

Much of its marketing is subliminal or indirect – it does not run $1 million dollar
ads during Super Bowls nor post flyers in mall marketplaces (unlike Groupon).
Design Hub.com relies on wily online ploys, strong partner relations and a
constant declaration of quality to market itself to the masses.

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MARKETING OBJECTIVE

Corporate ●
Build Brand equity and grow the company

Marketing Increase market share

●

Enhance brand awareness and top of mind recall

●

Distribution Increase the reach internationally and increase the product

●

assortments

Promotional Communicate brand promises of Design Hub

●

Leverage parent brand name for new businesses

●

Pricing ●
To be cheaper than the competitors

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MARKETING PLAN (1/2)
Online marketing
Design Hub Mainly concentrate on Online marketing through adsense, affiliate marketing
and online community building. Compared to their online spend, their offline spend is
meager.
PAY PER CLICK ADVERTISING
1.Purchases PPC ads on Google to
direct browsing customers to their
websites.
2.Buys space on the left side of
Google’s search listing results, and
pays a fee for each visitor to Design
Hub.com who clicks on their
AFFILIATE
sponsoredMARKETING
link
1.Links to various products in Design
Hub.com is kept in the websites of
third parties or of other retailers.
2.Design Hub.com pays a certain fee
for each customer visit through these
links.
EMAIL MARKETING
1.Design Hub.com engages in
permission marketing, where
customers give the company
permission to send them e-mails
detailing product promotions
ONLINE ADS
1.In various social networking sites such
as Facebook, Orkut etc
2.In various communities and discussion
forums for specific products and
services such as dpreview, goodreads
etc
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MARKETING PLAN (2/2)

Offline marketing
Design Hub’s offline spent is very less (below $10 dollar. Design Hub.com’s strategy is
simple: since customers shop online, online is where they will be found. )

MEDIA PROMOTION
1.TV – ads showing benefits of 1.Events
products like Kindle 2.Online buying experience
2.Radio – sponsoring various radio 3.Online games
programs 4.Free delivery on special occasions

EVENTS OTHERS
1.Shopping Malls: competitions like 1.Sponsored T-shirts pens, mugs etc
reading speed challenges
2.Helps in customer experiencing the
product (Kindle)

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 Marketing Plan Diagram : ______ Positioning: Online Shopping

Repeat Product Review

Information Convenience
Purchases
Order Fulfillment
‘1-Click Shopping’
Loyalty & Product
Advocacy Money-back
Guarantee Recommendations
Buyer

Association Low Costs

Merchant Advantage:
Automatic Re-Ordering, etc
Network Seller
Externality

Associates
Brand Image Fixed Merchants Partnering
Program

Distributed
Strong CRM Web Services
Diversification

Email Marketing Customer Base Cross-selling

 MARKETING PLAN EVALUATION

INVOLVED
• Design Hub Online
branded Promotions
products like T pay per click
advertising.
shirts and Affiliate marketing
other ads in Google.
PASSIVE

ACTIVE
stationery Facebook,blogs

• Promotion in
malls and
supermarkets.
Events at
libraries. TV
and radio ads
IMMERSED
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 BRAND DASH BOARD
Brand Metrics Advertising Metrics Purchase
Metrics
• Brand Awareness • Advertising Awareness • e-Book Market Share
100 100 90
90
80
80 80
70
70
60 60
60
50
50 40 40
40
30
30 20
20 20
10 0 10
0 Q1 Q2 Q3 Q4 0
Q1 Q2 Q3 Q4 Amazon B&N Kobo Apple
First Mention Aided

• Brand Commitment • Source of Ad Awareness • Frequency Profile

35 100 100
90 90
30
80 80
25
70 70
20 60 60
15 50 50
10 40 40
5 30 30
0 20 20
F M A M J J A S O N D 10 10
Amazon eBay Netflix 0 0
Q1
Others Q2 Q3
Internet Q4 Q1 Q2 Q3 Q4
Light Moderate Heavy
TV/Movie Placements Commercials

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 BRAND DASH BOARD CONTD..
Brand Metrics Advertising Metrics Purchase
Metrics
• Brand Attributes • Message Association • Repeat Purchase
User Friendly 100% 80
40 90% 70
80%
60
20 70%
Innovative Reliable 60% 50
50% 40
0
40%
30
30%
20% 20
10% 10
Vast Choices Time-saving 0%
0
J F M A M J J A S O N D
Q1 Q2 Q3 Q4
Message Association

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RISK ANALYSIS
Risk management measures

O Design Hub manage the risk through Sales composition of Design Hub.com
diversification of business and 100%
adding emerging business lines to their 90%
portfolio
80%
70%
O Design Hub’s sales composition
60%
was 100% media sales in the first 3
years. By 2011 media just forms 43% of 50%
their total sales 40%
30%
O Through Kindle, CDNow, 20%
audible.com instaVideo and Design 10%
HubMP3 they have a strong foothold in 0%
digital sales of media. They have thus 1997 1999 2000 2004 2008 2011
reduced dependency on physical
sales of media in their portfolio Media Sales Non Media
Media includes books music video/
O More focus given to digital goods DVD
recently as digital goods give better
operating margin
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REFERENCES

http://en.wikipedia.org/wiki/Design Hub.com
http://en.wikipedia.org/wiki/Walmart
http://en.wikipedia.org/wiki/EBay
http://www.Design Hub.com/
www.slideshare.net
http://www.brandz.com/upload/Top_25_Retail_Report.pdf
http://www.theacsi.org/index.php
http://360.datamonitor.com
http://7pillarsofsellingonline.com
http://www.onlinemba.com/walmart-vs-Design Hub/
http://www.internetretailer.com/top500/list/
http://www.marketingplan.net/Design Hub-com-marketing-strategies/
Pierre Chandon, “Note on Brand Audit : How to measure Brand Awareness,
Brand Image, Brand Equity and Brand Value”, Insead, 2004.

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THANK YOU

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