Case Study Lonely
LONELY PLANET
Posted on August 25, 2010 by Issabella
1. Prepare a report in which you analyze the marketing channel conflicts and cannibalization issues that Lonely Planet faces as it is currently operating. Suggest solutions that might reduce revenue losses or operational frictions that result from these issues.
Channel Conflict: when sales through the company’s web site interfere with sales in that company’s retail stores.
The potential for significant channel conflict exists in Lonely Planet with the same product (books or content) being sold via multiple channel. Lonely Planet has worked hard to minimize channel conflict by selling books on their website only at the recommended retail price, therefore it does not undercutting their retail resellers. Moreover, most retailers hold only a small selection of the five hundred Lonely Planet titles, and for the many titles they do not hold, channel conflict is minimal. The CitySync product is also carefully positioned to reduce channel conflict, since it targets a specific segment (time-poor, cash-rich travelers) with a new offering that is somewhat different from the existing Lonely Planet city guidebooks. However, over time there may be some conflict between CitySync and products such as customized guidebooks.
Cannibalization: The loss of traditional sales of a product to its electronic counterpart.
The well-known travel guides company, Lonely Planet gives a lot of guides for free on its website. A few years ago, many major travel-guide publishers were concerned that Lonely Planet website will hurt their sales. If travelers have to travel on board, they could just go on the website in order to read all the information they need without buying the Lonely Planet travel guide paper version. But far from cannibalizing sales instead, the net has helped publishers build their brands and expand into new territory. Moreover, giving information on its own website is a way to do free advertising. Without this display
Posted on August 25, 2010 by Issabella
1. Prepare a report in which you analyze the marketing channel conflicts and cannibalization issues that Lonely Planet faces as it is currently operating. Suggest solutions that might reduce revenue losses or operational frictions that result from these issues.
Channel Conflict: when sales through the company’s web site interfere with sales in that company’s retail stores.
The potential for significant channel conflict exists in Lonely Planet with the same product (books or content) being sold via multiple channel. Lonely Planet has worked hard to minimize channel conflict by selling books on their website only at the recommended retail price, therefore it does not undercutting their retail resellers. Moreover, most retailers hold only a small selection of the five hundred Lonely Planet titles, and for the many titles they do not hold, channel conflict is minimal. The CitySync product is also carefully positioned to reduce channel conflict, since it targets a specific segment (time-poor, cash-rich travelers) with a new offering that is somewhat different from the existing Lonely Planet city guidebooks. However, over time there may be some conflict between CitySync and products such as customized guidebooks.
Cannibalization: The loss of traditional sales of a product to its electronic counterpart.
The well-known travel guides company, Lonely Planet gives a lot of guides for free on its website. A few years ago, many major travel-guide publishers were concerned that Lonely Planet website will hurt their sales. If travelers have to travel on board, they could just go on the website in order to read all the information they need without buying the Lonely Planet travel guide paper version. But far from cannibalizing sales instead, the net has helped publishers build their brands and expand into new territory. Moreover, giving information on its own website is a way to do free advertising. Without this display