A Sales Channel They Can’t Resist

A Sales Channel They Can’t Resist

The Secret to QVC’s SuccessElizabeth Esfahani

The Secret to QVC’s SuccessElizabeth Esfahani

What QVC WasWhat QVC Was

“Trailer-park housewives frantically phoning for another ceramic clown”

“Vehicle for broken-own movie stars…”

“Trailer-park housewives frantically phoning for another ceramic clown”

“Vehicle for broken-own movie stars…”

In RealityIn Reality

$5.7 billion in sales during 2004Twice as profitable as Amazon.com3rd largest U.S. broadcaster in revenue1.5 million viewers for every 10,000

orders receivedBirkenstock airtime is worth $8 million in

traditional advertising

$5.7 billion in sales during 2004Twice as profitable as Amazon.com3rd largest U.S. broadcaster in revenue1.5 million viewers for every 10,000

orders receivedBirkenstock airtime is worth $8 million in

traditional advertising

Seriously?Seriously?

Honing the art of TV retailing Blend of entertainment and retailing Moving away from cherubs and bangles to:

Home décorElectronicsFashion

Use products to build relationships with customers

Honing the art of TV retailing Blend of entertainment and retailing Moving away from cherubs and bangles to:

Home décorElectronicsFashion

Use products to build relationships with customers

Live BroadcastingLive Broadcasting

Powerful connection with viewers Very Human “Backyard Fence Sell” Want rather than need Caller testimonials Best elements of reality TV

Powerful connection with viewers Very Human “Backyard Fence Sell” Want rather than need Caller testimonials Best elements of reality TV

AnalysisAnalysis

Immediate changes in response to low sales volumes Change lighting Different camera angles Caller testimonials Emphasizing saleable features

Immediate changes in response to low sales volumes Change lighting Different camera angles Caller testimonials Emphasizing saleable features

Not as Easy as you think Not as Easy as you think

20,000 inquiries in 2004 4% were accepted

Products that don’t sell may be liquidated

Underperformers may not come back

20,000 inquiries in 2004 4% were accepted

Products that don’t sell may be liquidated

Underperformers may not come back

The Road to QVCThe Road to QVC

Develop your story Will it sell?

Apply to become a vendor 3-week turnaround

Put your product through its paces Be prepared to fail

Bulk up those inventories $20,000 worth of product

Practice your pitch QVC University

Develop your story Will it sell?

Apply to become a vendor 3-week turnaround

Put your product through its paces Be prepared to fail

Bulk up those inventories $20,000 worth of product

Practice your pitch QVC University

Win / Sort of Win SituationWin / Sort of Win Situation

Name brands increasing QVC’s credibility

Introduction of QVC brand productsNo name brands generally succeed Name brands may suffer

Name brands increasing QVC’s credibility

Introduction of QVC brand productsNo name brands generally succeed Name brands may suffer

Shedding Historical BaggageShedding Historical Baggage

Gaining higher product credibility without alienating current clientelle

Pursuing Branding Partnerships Antiques Road Show Collection Lucky Magazine special QVC edition

Gaining higher product credibility without alienating current clientelle

Pursuing Branding Partnerships Antiques Road Show Collection Lucky Magazine special QVC edition

The Online Ad SurgeThe Online Ad Surge

Brand advertising online has taken off--and it’s shaking up Madison Ave. Stephen Baker

Brand advertising online has taken off--and it’s shaking up Madison Ave. Stephen Baker

What it wasWhat it was

Dominated by obscure companiesDot-com crash of 2002 meant decline in

online advertising. “A few years ago, it was kids with green

hair selling ads.”

Dominated by obscure companiesDot-com crash of 2002 meant decline in

online advertising. “A few years ago, it was kids with green

hair selling ads.”

What it isWhat it is

Cost of advertising on “major portals” has jumped $180,000 / 24 hr period $300,000+ / 24 hr period

No VacancyInternet ad growth at 28.8%

Overall industry: 7.7%2004: Online ad industry $9.3 billion

Cost of advertising on “major portals” has jumped $180,000 / 24 hr period $300,000+ / 24 hr period

No VacancyInternet ad growth at 28.8%

Overall industry: 7.7%2004: Online ad industry $9.3 billion

Why so successful?Why so successful?

Effectiveness is measureable Clicks = Dollars and cents

Effectiveness is measureable Clicks = Dollars and cents

Effects of online advertisingEffects of online advertising

Other media- advertisers want similar accountability for T.V and print media

The TiVO problemHow to advertise to TiVO customers?New Innovations

Weather.com weather bar links to ads Google and the paid search Rich media evolution

Other media- advertisers want similar accountability for T.V and print media

The TiVO problemHow to advertise to TiVO customers?New Innovations

Weather.com weather bar links to ads Google and the paid search Rich media evolution

Complications & InnovationsComplications & Innovations

T.V. Spots are easyOnline advertising means infinite

choices How big of a banner? Horizontal or vertical? Interactive or static? Rich media or text? Sound, video, both?

Makes people nervous

T.V. Spots are easyOnline advertising means infinite

choices How big of a banner? Horizontal or vertical? Interactive or static? Rich media or text? Sound, video, both?

Makes people nervous

The Remedy?The Remedy?

Packaging, packaging, packaging! Coupling online advertising with traditional media

buys Coupling prime ad locations with ads on other

sites Watch T.V with one eye, surf the web with the

otherE.g. Adidas Individual customer relationships from broad marketing

Packaging, packaging, packaging! Coupling online advertising with traditional media

buys Coupling prime ad locations with ads on other

sites Watch T.V with one eye, surf the web with the

otherE.g. Adidas Individual customer relationships from broad marketing

Maintaining relationshipsMaintaining relationships

Once we get T.V. viewers to the website, how do we keep track of them?

Once we get T.V. viewers to the website, how do we keep track of them?

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