C h r i s t o p h e r G a rc i a E r i c S t o k e s

H S N V S . Q V CWEBSITE EVALUATION

Site Purpose

•ProvidesShoppersAccessToAllProductsTheCompanyOffers•Interac<vePla=orm(Mul<-ChannelRetailOfferings)•CenteredonCrea<veImmersiveExperience•AccessibleConsumerReviewsandProgramGuides

•ProvidesPosi<veMessage•HighlyInterac<veDesignUX•EasyNaviga<ons(Searchabil<y)

“Yougetthe”“Oneeasypaymentof_____get’sthishomeby….”

Positive Branding & Presence

“WhenIseemysonplaytheguitar,Iliketothinkit’shisheartconnec<ngonthestrings.”

Products Streamed Live

•Women•Ages25-55•HouseholdIncome:$61,000andabove.•SocialShopper/SocialLifestyle

Target Audience

•ProductOverview•FeaturesList•Specifica<onsLists•ProductReviews

-BuildConsumerConfidence•InspiresYear-RoundShopping

Customer Solutions

Community

•Consistsofmerchandisesales,discounts,customerreturns. ReturnRate:16.3%

•FlexPayOp<ons•$3.58billioninrevenue•Canquicklychangemerchandisemixtomeetconsumerdemand

Revenue Model

•Co-Promo<onalPartnerships•JointMarke<ngEfforts•IncreasesBrandRecogni<on•DrivesConsumerEngagement

Marketing Relationships •Mul<-yeardistribu<onandaffilia<onagreements•HSN’slargerpaytelevisionoperatorsincludeComcast,

DirecTV,Echostar/DISH,andTimeWarnerCable.•Itreportedadver<singexpenseof$279.6million,$268

million,and$245million,in2014,2013,and2012,respec<vely

Partnerships

•HasappsforiPhone,iPad,AndroidaswellasWindow’sdevices.•HighlyVideoCentric•CustomizableExperience•AccesstoPreviouslyRecordedSegments•MobileDevices(FastestGrowingMediumSalesChannel)

Features & Functionality

Usability

•HasappsforiPhone,iPad,AndroidaswellasWindow’sdevices.•HighlyVideoCentric•CustomizableExperience•AccesstoPreviouslyRecordedSegments•MobileDevices(FastestGrowingMediumSalesChannel)

Social Media & Mobile

• TheredesignedHSNwebsiteaccountedforoverhalfofthecompany’srevenueslastyearandtheiremphasisonmobilehashelpedtogenerategrowthinacompe<<vemarket.

•Morethanhalfoftheirnewcustomerscomefrommobile,•Mobilechannelgenerates10%oftotalstoresales•Mobilecustomersarealsoyounger,28yearsoldvs.58for

shopperswhoplacephone,andtheyhavehigherincomes.•About30%ofmobileshoppersmakemorethan$100k/year

comparedto23%forphonecustomers.

CEO,MindyGrossman2008

Social Media & Mobile (Contd.)

•In2014,HSNhadaffilia<onagreementswith87broadcasttelevisionsta<onsforleasedcarriageoftheHSNtelevisionnetworkwithtermsrangingfromseveralweekstoseveralyears.

•SisterNetworkinEuropeHSE24•Japan’s,TheShopChannel•AlsoinItaly,Germany,The

Philippines,andCanada

International

•HasappsforiPhone,iPad,AndroidaswellasWindow’sdevices.•HighlyVideoCentric•CustomizableExperience•AccesstoPreviouslyRecordedSegments•MobileDevices(FastestGrowingMediumSalesChannel)

Usability

Web Strategies

•Servedasoneoftheearliestsocialmediapla=orms•27yearsold,websiteopenedin1996•Goodexampleofhowtocombat“TheAmazonEffect”•Aimedatunifyingdigitalexperiences•Amazonisgoodatcommerce,oneclickshoppingbutQVCisfocusedoncommunityengagement.

121

46.5%morefollowers

“43%ofourbusinessisone-commerce,andwithinthatmobileisabout40%ofoure-commerce,”

Assortment Differences

Features & Functionality

•ComparedtoHSN,QVCseemstobeagearedtowardsayoungeraudience,atleastbasedonthecompanywebsite.

•Thesitefeaturesmanybrandsthatcaterspecificallytobeautyandfitnessconcerns.

•QVChasamuchwiderrangeofbeauty,skincare,andfitnessproducts,andmuchofitsmerchandiseisofthemainstreamandhigh-endvariety.

BareEssenAals,Philosophy,BobbiBrown,

andLauraGellar

In a Nutshell

QVC

• Seemstobeagearedtowardsayoungeraudience• Featuresmanybrandsthatcaterspecificallytobeautyandfitnessconcerns• Hasamuchwiderrangeofbeauty,skincare,andfitnessproducts• Muchofitsmerchandiseisofthemainstreamandhigh-endvariety• Pricesarequitereasonable

HSN

• CarriesbrandssuchasSeriousSkinCare,SignatureClubA,andYBF,• Hasanextensiveselec<onofWeiEastproducts• Offerpricesthatarequitereasonable• Offersregularsalesoncommonitems

SWOT Analysis

STRENGTHS WEAKNESS

• TV Multimedia / Competitive Advantage Over Brick &

Mortar

• Product Showcasing

• Customer Loyalty

• Product Offering (50,000 videos)

• Tax Structure

• High production costs

• Live-Viewing

OPPORTUNT I ES THREATS

• Global expansion to help build private label brands

• Acquisition Strategies

• Growing Demand Trends

• Grow social media awareness/build community

• Increasing Operating Expenses (Dip in Revenue of 4%)

• Beware of Warehousing Costs

• Increased risk with expansion into competitors

segments.