1

Chapter XIFrom Catalogs to the Web:The Evolution of Airgun Products, Inc.*

Michael K. Shearn, Drake University, USAChip E. Miller, Drake University, USATroy J. Strader, Drake University, USA

指導老師：蔡銘箴　　　　　　　學生： 9534803劉蓉

2

Outline

Organization Background Airgun Products Market Issues Setting the stage API Current challenges and problems Conclusion

3

Organization Background (1/3)

Airgun Products, Inc. (API) is primarily a micro direct marketing firm that sells airguns and airgun-related products directly to consumers.

B2C e-commerce

The company was founded in 1989.

4

Organization Background (2/3)

The products they sell include air rifles, pistols, scopes, mounts, pellets, targets, accessories, and other airgun-related items.

API has 47 different suppliers. Gross margins run from a low of 22% to a high of 46%. Every effort is made to purchase in as effective and efficient anner as possible taking advantage of seasonal discounts and early buy programs.

5

Organization Background (3/3)

Figure 1. Organization chart prior to marketing manager

Figure 2. Current organization chart

6

Airgun Products Market (1/5)

The United States and United Kingdom are the largest marketplaces for these products.

The majority of airguns produced each year are manufactured in Germany, China, the United States, Korea, the Czech Republic, Mexico, and England.

The airgun products market is a niche market.

7

niche market 　利基市場

較小的一塊區隔之市場（較狹隘的客戶群），由較小市場中一些需要被滿足的消費者所組成。

指寡佔、利潤高、需特殊技術才能進入的市場。 特色：

獨特又複雜的客戶群，所販賣的產品具有特色。 消費者願意花費超額的價格給最能滿足獨特需求的廠商。 擁有必要的技術，以卓越的方式來服務此市場。此市場通常吸引小型公司，大公司通常放棄這種利潤不大

的市場。

8

Airgun Products Market (2/5)

Although the airgun products market is relatively small, API does have four direct competitors that sell similar products.

9

Airgun Products Market (3/5)提供方式 描述 優點 缺點

#1提供一個從靜態網站升級而成新的動態ASP 網站

此競爭者 100% 的從網站中銷售他們的產品，並不提供紙本型錄。他們採用網際網路的銷售方式，試圖採用低價策略－以低於市價 10％的價格來取得市場，希望能以量致勝。

廣告成本低

服務問題庫存問題

#2

提供紙本型錄和一個靜態網站

他們從亞洲進貨相關產品，並以非常低價的方式銷售產品。在他們與 API 競爭的產品系列，他們採用低價策略－賣大約以比 API 便宜 10% 的售價，來取得價格上的優勢。

便宜目錄免費供應

產品選擇款式少服務問題網頁不易使用

#3僅提供靜態網站（並無紙本型錄）

它提供和 API 公司類似的複合式產品的產品，但他們有另外一種行銷方法。他們試圖同時銷售所有產品與相關之複合式產品，他們命名此方法為 Combos 。

容易 客戶少

#4

僅提供一個靜態網站，沒有型錄和線上購物車

這個競爭者滿足一個非常特殊需求的客戶群。主要從歐洲進口非常高檔的產品與其配件。

產品特殊－鎖定特定消費者

服務網頁不易使用電話專線少廣告費用高

10

Airgun Products Market (4/5)

In August 2002, Arnold Zimmerman was hired as marketing director and given the challenge of reorganizing API’s marketing policies, designing and implementing a marketing plan.

11

Airgun Products Market (5/5)

Figure 3. Monthly sales totals and trend

12

Issues (1/2)

There are a number of issues that need to be addressed to improve overall profitability.

How can the online sales channel be successfully implemented in this niche market by a small firm during a time when so many other firms’ e-commerce initiatives failed?

How can a catalog-based phone sales company evolve into a successful synergy of catalog and online sales?

13

Issues (2/2)

What issues are most important to improving the company’s bottom line?

Can the organization continue to be managed by its owner and one senior manager, or are changes necessary in the leadership and organizational structure?

14

Setting the stage (1/2)

Gun Shows and Catalog Sales Attending gun shows in the Midwest and soliciting names

from the retail attendees gained API their first mailing lists.

Web Site Introduction In June 1995, a static information-only Web site was

developed for API by an outside contractor using MS FrontPage. The Web site listed products and services offered by API and general information articles on airguns.

By 1999, API had moved to a new custom-developed Access 97 database which served as a transaction processing and inventory control system.

15

Setting the stage (2/2)

Newsletter A marketing and informational newsletter was implemented

in 1992, and this became API’s primary marketing focus and list building tool until 1999.

Issues Associated with Multi-Channel (Off-line and Online) Customer Interaction API has used a plethora of methods to interact with

customers, including attendance at gun shows, supplier-furnished catalogs, their own Web site, and an informational newsletter.

16

API (1/5)

Arnold was successful in developing and presenting a viable marketing plan to the ownership by the end of calendar year 2002.

By November 2002, Arnold requested and received additional funding for enhanced report generation from the database.

The results of the Web Log reports detailing the gradual increases in web traffic and the attendant gradual increases in sales are shown in Figure 4.

17

API (2/5)

Figure 4. Monthly Web site hits and total sales

18

API (3/5)

The overall management of the Web site was still another problem that required a fix. The decision to outsource the Web site development and management is a common problem for small businesses

On the plus side, a shopping cart feature was added during this redesign.

To Arnold’s dismay, some of API’s most requested and highly profitable products could not be ordered online simply because it would present some degree of difficulty in making site updates.

19

API (4/5)

In an attempt to increase Web site traffic, two different outside firms hired over the phone had done a limited amount of search engine optimization on a very sporadic basis.

20

API (5/5)

Figure 5. Breakdown of total monthly sales

21

Web site improvement Hiring a local outside firm to monitor and track

search engine performance as well as make recommendations to improve that performance.

Hiring a new more highly trained graphic artist that had an extensive background in Web site development (a Webmaster) and, with the proper Web site development software, was able to make all Web site updates in house.

Making the commitment to place all products that were currently available from API on the Web site and available for sale through the shopping cart regardless of how difficult the updating might become.

22

Web site improvement

Updating and changing the overall look of the Web site while at the same time standardizing the text size for all individual page attributes.

Improving and standardizing the look and feel of the navigation menus so products would be easier to find.

Increasing outside links to the API Web site. …

23

Advertising campaign

All individual product advertisements were halted. New ads were designed that prompted consumers to either call or go online to sign up for a free copy of the API catalog.

Ads in marginal publications were halted, and the money was redirected to placing a small ad in the marketplace index of the American Rifleman, the primary publication of the National Rifle Association.

Revolving content ads and the flyer.

24

Current challenges and problems

Market segmentation. Identifying advantages and disadvantages for

paper vs. online catalogs. Creating value as an online intermediary (also

known as a cybermediary)

25

Conclusion

If these questions can be answered, then API can： fully utilize their advertising sales channels reduce their costs be efficient in identifying customers （ who prefer the

off-line or online channels) create a competitive advantage

26

Questions

What are the top challenges of B2C ? Web (design 、 user friendly…) Marketing Challenges

What are the benefits by using online catalogs ? Easy (search 、 buy…)

Thanks for your attention.