"The Field Marketing Solution (FMS) from ODS2 has allowed us to increase the market share of the Xbox!"
Erik Poel, Channel Marketing Manager, Microsoft
The Dutch gaming market has grown significantly in recent years by an average of 8.3% annually. Revenues from the sale of Games have been higher than any other sector in the entertainment industry. In the Netherlands, there are 134 companies involved in the design and development of video games. Microsoft, Nintendo, and Sony are amongst the major players in this competitive market.
During the previous year in the US market alone, the Xbox Game Console from Microsoft sold more gaming units than any other company in the past six years combined. "FMS from ODS2 has helped us maintain this position. It allowed us to plan, monitor, and analyze all of our sales and field-marketing activities in real-time".
Channel marketing is highly dependent on improving product presentation, product promotion, and product positioning on the shop floor. However, this does not apply to Game Consoles and Games because users rely on brand name and brand features when making a purchase decision. Therefore, we must ensure that our product stands out on the sales floor, and more importantly that our sales representatives are fully aware of product features, product design, and product functionality.
One Thousand Shop Visits Per Year
Mr. Poel works as part of the Entertainment & Devices Division (E&D). E&D leads the team of channel marketers and field merchandisers in The Netherlands. Even though E&D is composed of Sales and Marketing teams primarily focused on the sale of mice, keyboards, webcams and software, the Xbox remains to be the most important consumer product.
Microsoft makes most of their sales through businesses. However, "we realize that the consumer market is as important. It promises solid growth prospects. Microsoft is convinced that by enhancing sales efforts within the consumer market, it will also strengthen our image in the business market".
Microsoft sells 90% of their products through retail channels and 10% through online stores. Media Market, Bart Smith, International Toys, Free Record Shop, and Dixons are some of the large retailers in the gaming market. The Channel Marketing Team gives direction to the Collectors. The Collectors are responsible for visiting between 70 to 80% of 1200 stores across the country. Collectors gather information based on visibility and availability of products, as well as the knowledge and motivation of store personnel.
Window Function
The 'Planned Visits' module in FMS allows users to schedule visits and rank stores according to performance. On this basis, FMS classifies all stores according to sales output. Classifications are color-coded 'green', 'orange' and 'red'. If a shop is coded 'green' this indicates that the Xbox is selling well. However, if the shop is coded 'orange' this indicates that the Xbox is not selling well and requires more attention. As for shops colored in 'red', this indicates that the shop is not selling/ moving the product effectively, and further improvements are needed to realize the full potential of this franchise. In addition to the color classifications, FMS allows us to categorize shops based on location, turnover and potential growth prospects.
Having determined which stores will receive a visit, we schedule 'calls' based on necessity. This is a powerful tool given the multitude of factors involved in this industry. For example, there are more than 200 new Games released every year for the Xbox alone. Upon the release date, a Game has a lifecycle of six weeks. Therefore, Microsoft must be certain that all new Games are available on the shop floor on the release day otherwise we will incur loses. Without the 'Planned Visits' module from ODS2, Microsoft would find it almost impossible to schedule recurring visits immediately.
The competitive nature of the gaming market and the high turnover rate from the sale of Game Consoles requires Microsoft to visit shops frequently. For example, Media Market, one of the largest retail chains in The Netherlands, is a strong indicator of Xbox sales. "We monitor the shops for decreasing inventory levels and provide support in anticipation of large purchases. With the software we create a plan moving forward of which shops to visit, and the frequency of visits to those shops. We monitor visit progress, and employee productivity if necessary".
Management Information
The 'Planned Visits' module provides management with vast insight into what takes place on the shop floor. Reports completed by field marketers allow administrators to verify if products were delivered, how products are displayed, how the shelf space is sorted, what competitors do differently and it allows us to realize how we can improve the latter at each location. Furthermore, it allows our Field-Marketers to provide us with further insight into sales figures and more importantly, how we can improve our sales and marketing initiatives to generate higher profits.
All information imported into the FMS system is synchronized through PDA Devices. Our representatives use these Devices in the field. As a result, management continuously has access to current, detailed and accurate information. This information is displayed in the form of clear graphs, tables and reports. This does not only give us an insight into the performance of individual stores and chains, it also allows us to compare performance amongst various distribution channels.
FMS is an excellent management tool. The 'Authorization Module' allows the administrator to assign various users to different levels of access. Information can be shared with suppliers, retail chains, or employees depending on the relevance of information, and the access given to them by administrators. It allows for data, questionnaires, information, and reports to be tailored to very specific roles and tasks of different users. Only information that is relevant to a particular user is displayed accordingly.
Direct Action
Data imported into the FMS system is translated into concrete information that has essentially improved the market share of the Xbox. For example, after a Collector visits the shop and collects all the necessary information he/she is able to send a message through the auto-mailer feature to inform the administrator/supervisor of any product deficiencies or lack of POS material. In addition, the capacity to capture and import pictures into the FMS system allows management to review and possibly change product displays to enhance appeal and boost product sales. This powerful feature is essential for Microsoft; it allows us to enhance the visibility of our products on the shelf space.
For example, "Box Office and Games for Kids sells better if they are positioned vertically on the shelf". During each 'call' we try to influence the staff by providing them with observations and pictures via the FMS system to help improve their sales productivity. In addition, we provide feedback to the Marketing and Sales teams at Head Office with suggestions on how to improve and increase the bottom line.
Microsoft provides the necessary training to store personnel to ensure that their knowledge and ideas are used to boost product sales, and to promote and maintain relationships with customers. "We don't have to sell every customer, but at least our sales representatives should have a good idea of what they are selling, and portray us as an equally qualified brand".
Microsoft is trying to assist shops by giving them advice. It is usually better if we also include advice on competitor products to ensure that our sales representatives have a broad understanding of the relevant industry. For example, we advise shops to display products of all competitors based on price or category. This is what we call Category Management. "Research suggests that the average consumer spends 8% more time if he/she enters the shop from the left. These trends are recognized through high-quality analytical tools integrated in the FMS Solution from ODS2".
Result
ODS2 FMS is a comprehensive Solution that has allowed Microsoft to increase their market share for the Xbox. It's modular design, flexible functionality, and real-time response has allowed Microsoft to respond directly to abrupt market changes. The information we receive is significant, accurate and detailed. We are always aware of market developments, and through the system we are always in touch with the dynamics of the market in extraordinary ways. It's like our eyes and ears are on the shop floor!
Address Netherlands:
ODS2 BVGronausestraat 710
7534 AM Enschede
Nederland
T. +31 (0)53 461 86 92
F. +31 (0)53 431 20 56
Address Canada:
ODS2 Inc.94 Cumberland Street - Suite 601
Toronto, Ontario, M5R 1A3
Canada
T. +1 (647) 347 2800
F. +1 (647) 347 2900
Address Dubai:
ODS2 FZ LLC,License No. 17791
DIB Building Nr. 01, Suite 302,
Third Floor,
Dubai,United Arab Emirates
T. +971 44456840
F. +971 44456841
Active in:
Netherlands, Belgium, Spain, South-Afrika, Canada, Middle East
Contact
Intro