Internet Marketing Tchibo Case

morality Ideas skid A morality idea is an innovative concept of interacting with the consumers especially for a sell confederacy bid morals. Usually, consumer harvesting companies like P&G produce a wide range of consumer goods and sell their crops in retail stores owned by new(prenominal) companies like Walter. The retailers besides produce goods at a lower place private labels and sell them in their stores. But, Thatchs business model is very different. ethical motive produces its own convergences, though it outsource production. It sells its own products and represents new products every week.It uses ethics ideas to produce whatsoever its products. The moral philosophy ideas bring in high place to moral philosophy as a retailer, sliceufacturer and brand. As a retailer, it is very important to catch the consumer and their enigmas and preferences. This requires expensive and extensive market research. When consumers post their needs and problems, it reflects their preferences and buying behavior. This enables moral philosophy to experience what clients want and need. As mentioned in the character reference this would reduce the marketing and consumer research expenses by 20% to 30%.The customer feedback, comments and response to a dissipateicular morals idea help the company to come up tit clearly accurate sales projections. It also helps to understand where the competitors stand. The problems of consumers reflect the semiconductor gap in that particular ara. It helps to understand why the competitors atomic number 18 not regularly producing the goods that argon brought up in the Ethics ideas. Uncertainty regarding acceptance of a particular product in the market is greatly reduced by Ethics ideas.Ethics as a retailer tries to understand the market demands, and Ethics ideas help to identify very much of untapped market potential. Ethics ideas are highly valuable to Ethics as a manufacturer as considerably. The products that serve as solutions for customers problems are innovated and designed by superiors participating in the Ethics ideas. This greatly reduces the be and efforts to give products that would be in possession of the potential to address market problems. As Ethics refreshes its product lines every week, it requires a very dynamic innovation and developing work.Ethics ideas contribute to the efforts of product development at Ethics. It leverages the creativity of general and professional nation and integrates everyones work. The large number of products that are introduced every year unavoidable the production to be fast paced. It is not easy for new(prenominal) companies to introduce such all overgenerous number of products in such short metre periods. A specific product has to be produced in small quantities compared to the products expect to run for an indefinite time period. Thus, Ethics outsource the production and kindle easily launch new products or change its current produ ct lines.Ethics ideas bring a lot of value to Ethics as a brand. First, it uniquely positions the Ethics brand in market. Filling the store shelves with products that are designed by the consumers for the consumers reflects that the consumer is most important for Ethics. The customers feel that Ethics pays them alone(predicate) attention. This increases consumers trust for the brand. The concept of weekly launch of new products compels the customers to consult the Ethics stores every week, whether it is due to a need for a particular product or it is the curiosity to see what is new in a Ethics store.It brings in the surprise element and enables the customers to feel excited for their next visit to Ethics. It is believed that Germans like spontaneous shop. The Ethics ideas give the brand an image of an innovator, which is esteemed for a retail company. The consumers expect Ethics to be highly innovative. It is evaluate to address problems that are not heard and addressed by othe r companies. This rats the Ethics brand applicable for almost every person. It is not like apparel or a car company that is relevant to barely clothing and transportation requirements of people.This is very important in a democracy where people show emphasis on individualism, as consumers produce an opportunity to find products that suit their personal nature, desire and requirement. Instead, Ethics is relevant to every German who has access to Internet. The brand builds a strong congress with every consumer ND significantly increases brand loyalty. Reducing the life of a product to one week greatly reduces the risks posed by a product failure. A failed product would be easily forgotten and would not leave a dark impression of failure on the companys image.Ethics ideas enable Ethics to achieve a feat that would be eve touchy for competitors to imitate. Unless the competitors double up the Ethics Ideas model, Ethics would enjoy competitive advantage over every other retailer . Its unique positioning in the market significantly increases Thatchs brand power. The Ethics ideas are equally, if not more, valuable for the consumers. The people have the power to express their problems and needs in front of other people and a company, who would work hard to solve the problems. People can this instant actually expect both(prenominal)one to think about their problem.People know that for a large corporation, it is not feasible to solve to everyones problems. But Ethics changes this cognition of a common man. The Ethics provides a place of surprise shopping and fun. Ethics changes the shopping experience completely. They can expect to be cheerily surprised in a Ethics store as well as find something that would not be available anywhere else. It would make the consumers feel proud to buy things that were produced because they raised the issue. Apart from the intangible benefits for the consumer, Ethics ideas also have tangible benefits for the consumer.The produ cts that are produced due to Ethics ideas are born from peoples actual problems. These problems are faced by common man in every day life as well as special occasions. A market usually comes up with products at the port of supply and demand. Most of the suppliers are interested to enter most profitable and high volume markets. Due to this, the consumers are compelled o be satisfied, in many instances, with whatever is available in the market. For example, traditional producers of galvanising mention plug boards would not be interested to produce the multi strip electric board due to small volume of demand for such boards.But, because Ethics is capable of producing goods in small quantities, the number of problems that could be addressed in the market increases significantly. This creates substantial amount of value for the consumers in the market, especially as Ethics ideas could be regarding any kind of goods. Not that are the problems solved, but also the cost of most goods is very reasonable. This compels other companies to measure heavily on the power of customer satisfaction and come up with products that would solve peoples problems.The Ethics ideas allow the common people to listen to other peoples problems and think over to find a solution for them. This is not solitary(prenominal) challenging but also rewarding. The person whose idea is commercialese gets a part of earnings as well as recognition on the products packaging. These rewards, though criticized by some, seem to be highly valuable for most of the people. It qualification not be even possible for many to commercialism their ideas. This could be made feasible for a large portion of the population only through Ethics ideas.It greatly diminishes the hurdles of innovating, producing and counterclaiming a product in the market. Ethics should continue with the Ethics Ideas and refine the whole process. It could, strategically, confine itself to some particular target segments and thus increas e its efficiency. The market research and data gathered due to the Ethics ideas is very valuable and should be employ to develop successful product lines for Thatchs own products. It is helpful to leverage peoples ideas and problems to develop maximum umber of products that could be efficiently sold in trunk with the one-week business model.The weekly regularity makes it unique and nearly impossible for the competitors to replicate the model in a profitable way. It is mentioned in the case that some people wait for particular yearly occasions for specific themed shopping. It would be helpful to develop a strategy to separate the weekly product lines from the themes repeated every year. This might prevent loss of business in weeks prior to fiestas, as people might not substitute festival shopping with the weekly shopping.The themes of weekly product lines could be more think around the core functionality of the products. A study indicates that only 26% collar of Europeans think that the home ware, food and drink and electronics sectors of E-business offer good service. desegregation of Ethics Ideas and the Direct Ethics offering satisfactory online service would be welcomed by most in Europe. The Ethics ideas website should be designed to be more interactive than it is. Higher engagement of users would help to better understand the user as well as competitors willingness to address the problems.The users could e asked to exercise a questionnaire, which could have questions like Have you tried to find a solution to your problem before? If yes, where and how? or How did you realize about the problem? Activities like commenting and discussing the issues on Ethics websites must be encouraged. Employees related to the production and marketing department of Ethics could participate in the discussions that would make the online Ethics Ideas experience very informative and interesting. BY Mess Frankfurt (trade fair organizing firm), Mess publishes Study Buying Behavior in Germane,