Earn on whims - Marketing

Earn on whims

Service projects of BTE networks can be compared by effect with loyalty programs. Analyst of the management company & quot; Finam Management & quot; Maxim Klyagin considered them not only a good support for the image of retailers, but also a potentially successful form of business diversification, and this was very important against the background of declining growth in retail electronics and household appliances. According to Finam estimates, in 2008, no more than 5% of retailers revenue was allocated to a separate business line in the delivery, configuration, installation of equipment, and other services in a separate business line.

However, interviewed by the magazine & quot; Expert Volga & quot; analysts believed that in the future the cost of services, and therefore their share in the revenue of trade networks will grow - as consumer preferences grow. The potential capacity of the segment of additional services in the retail sales market of BTE is quite high, said Maxim Klyagin. At that time, the service market was relatively weak, while the effective demand for them, including due to the dynamically developing industry of technical innovations, grew every year, the analyst noted. At that time, Russian retailers offered, by the standards of the European and American markets, primitive services (delivery-installation of equipment, sale of certificates of additional services). Drawing an analogy with Western BTE markets, he said that in the future our e-retailers will have to master the sale of complex services, reorienting from the sale of goods for sale "ready-made solutions". This business is several times more profitable than trading. According to his estimates, if the margin of Western sellers of household appliances and electronics fluctuates at the level of 4-5%, then for service companies it is 12-18%.

It is also worth noting that the service business should be built differently than the trade in goods. For example, for service centers, it is more important to invest in specialists, rather than in ropes of sales (now retailers are concerned about finding retail space). In this sense, the construction of the service project "Eldorado" most corresponded to the idea of ​​how to build a business in the service sector. In fact, unlike other retailers ("Technosila", "World", "M.Video", MediaMarkt, according to the information of the companies themselves, even if they created their own service centers in the Volga region, for example, "M.Video Service", "World and Service", they used the services of contractors in the region) "Eldorado" invested in the creation of its own staff of specialists, their training and certification, formed a fleet of cars and bought the necessary equipment - tools, software. For example, in the opening of service centers in Samara and Togliatti - the creation of a technical base, leasing of cars (28 cars), training of personnel (144 people) - HiTechnic invested $ 3.35 million. Investments in Saratov will reach approximately $ 1.7 million (50 employees, 11 cars). The creation of a specialized service company, Yuri Vladykin believed, would allow "Eldorado" to serve shoppers not only with their own network, but also with competitors. Share orders & quot; from & quot; in the metropolitan centers HiTechnic was 20%, in the region it will be about 30%, he calculated.

Connection of air conditioning, gas equipment, car-audio is carried out by third-party organizations with which DOMO has agency agreements. This is due to the fact that these types of work are subject to mandatory certification, narrowly specialized and require high professionalism. Therefore, quality connection and maintenance of this equipment can only be carried out by specialized organizations.

Retailers still had time to decide in which form they need to develop the sale of additional services - according to analysts' forecasts, this issue should become fundamental in 3-5 years. But specialized service programs, which the network launched and already then, could accelerate the formation of demand for them. In addition, they had to become a kind of test for retailers, who until then had competed with each other in trade in goods, rather than services. And of course, they should have allowed them to hone marketing technologies in the services sector by the time when the market positions of companies depend on them.

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)