PRESENTATION ON-: NETWORK PULLS A COMPANY TOGETHER BOOK NAME :

INTRODUCTION TO INFORMATION SYSTEM

( Supporting and Transforming Business ) AUTHOR :

RAINER / TURBAN / POTTER

SUBMITTED BY-: RASHMI KUJUR ENROLL NO: 11BSP1570

CASE STUDY
NETWORK PULLS A COMPANY TOGETHER THE BUSINESS PROBLEM-: Advance Auto Parts ( www.advanceautoparts .com) has been around since 1932. In 1998 , an investment firm purchased the company and began a period of rapid expansion , opening hundreds of new outlets and buying out competitors . The company ended up with more than 2500 stores. Unfortunately , it also ended up with different sales strategies , systems and management phhilosphies. As a result , the company faced a big challenges in interpreting new employees into its operations and promoting brand recognition among its consumers . Employees had to quickly become familiar with Advances products , sales systems, and corporate culture.

THE IT SOLUTION -: Advance decided to use an in-store media network with programming showing on television screens around the stores. Programming is delievered to stores via. Satellite , with appropriate video feeds targeted to specific stores. For example : stores in centers with large Hispanic populations receive programming in Spanish , and newly opened stores receive a specific feed. Programming can also be delievered to individual flat screens in stores, because each screen has its own IP address.

The satellite feeds also transmit other corporate data between the stores and the head office , such as the electronic parts catalog. In the morning before the store opens, the network delievers information on training seminars , new in-store computer systems , and a product introduction ,as well as company news . After the doors open, the programming switches to sports scores, car parts and accessories, and repair tips.

THE RESULTS -: Originally , Advance believed they could make money by selling advertising on the network. This has not yet turned out to be the case. Although Advance sells ads to suppliers such as Halvoline Motor Oil and Bondo Filler,advertisers have been slow to embrace the concept. The system makes its greatest impact when the stores are busy and customers are waiting in line. For some products such a snew carburettor, the customer has a definite need and is not subject to impulse advertising on the screens. However , for other items , such as motor oil , Advances network has had success in driving in-store sales. For example :- A recent promotion for Bosch wind-Shield wipers increased sales by 62% The networks biggest impact to Date , however had nothing to do with the bottom line . The networks programming includes spots for the National Center for Missing and Exploited Children with Americas Most Wanted . In June 2003 , an employee spotted an abductor with a child in an Advance store and called the police . As a result of the employees actions , the boy was reunited with his mother after four years.

QS1. Do you feel that in-store media advertising is effective or just annoying ?

Solution: In-store media advertising ,though has been less effective, is definitely not annoying.
Advance auto parts company owns more than 2500 stores today and has variety of customers visiting its different outlets everyday,and the outlets being located in various places in USA. Though few customers have a definite need and are not subjected to impulse advertising on the screens, there are few set of auto parts which will definitely need references.Hence customers do refer to advertisements.

To make this referencing process more prevalent and to fetch profit to the company ,the company may incorporate few strategies like-:
A). Make the customer process of choosing product among many options easier. For eg: Display the comparison as below

Name of the Autopart

Cost

Mileage

1.Goodyear tyres

Around Rs 6500/-

45000km

2.Michellin tyres

Around Rs 9000/-

90000km

This eases customer process of choosing between the various autoparts,accordingly If he/she is looking for more durable tyres or lesser price tyres.

2. Let the customer know the increase in performance by shifting from one autopart to another . For eg: The most commonly used gas in Air Conditioners of cars is Freon,which is harmful and damages ozone layer.Display the ill effects of this gas.And give the alternative which would be R-134 ,which is less harmful and gives equal effect. 3.Displaying of the images of the vehicles, before and after modification.So that the customer gets clear picture on the products/accessories. 4.Displaying the testimonials from the customers regarding the service of the organization,performance of their vehicles on changing over to a new autopart . Finally Customers should have wide variety of choices to choose on the product.By incorporating these strategies the buying process will increase and this will lead to increase in sales which will fetch profit to the company.

QS 2 ) Should stores collect feedback from their customers about in-store media? a)If so,then what types of information should they collect? b)How should they use this information? Solution: Yes, definitely the stores should collect the feedback ,since feedback is the one which keeps any information system undeviated from working towards the core concept/aim of any business organisation i.e.,to satisfy the customer needs,which makes the system more effective and efficient. Every customer has different point of view and is looking for a different variety of product ,hence every system should regularly collect feedbacks.In simple words, organisation should often get assessed by the customers. a)To collect information the organization should prepare a questionnaire which will have the following:

QUESTIONNAIRE

HOW TO USE THE INFORMATION

1.Did u choose the product or were you motivated by the advertisements displayed on the TV screens of the store ?

Helps to find the percentage of the people who are motivated by the advertisement displayed on the TV screens of the store

2.Do you think the details of the product displayed in the ads was sufficient enough to make a choice?

This can be used to make the product details more defined. In the cases where people are not clear with the applications, usability,warranty and life span of a product.

3. Do you have enough number of options and To decide whether to add on more products on choices to make a choice? the display screen

4.Mention the name of three accessories that you are more likely to buy in the next visit or near future?

To know the products on demand .This analysis can be used by the companies who place advertisements in the store.

Apart from this the company can also collect feedbacks which would get information on the employees efficiency,knowledge of an employee about the product,the time delay occured to deliver the product, etc to improvise on the strategies used by the company on the Human resources and service sectors