Business model: ICI Paris XL
Class Assignment with Bigit Hellebuyck
Basic model
ICI Paris XL uses the E-tailer model as its business model. That’s because ICI Paris XL is a business-to-consumer focussed business that sells products online by using an online e-commerce platform. It’s the online version of their retail store, where customers can shop at any hour of the day or night without ever leaving their home. They only have to connect themselves to the Internet or use their smartphone to place an order.
ICI Paris XL is also called a “Bricks-and-Clicks” store. So they are using their online webshop as a complemantary online store. Because of that we can say that they use a more specific model of the E-tailer concept, which is called the Bricks-and-Clicks model. (Laudon & Traver, 2014)
Customer value proposition
The Customer value proposition of ICI Paris XL is that they are the beauty specialist of Belgium. People can choose out of a wide range of fragrances, cosmetics and skincare, which are also all available in their store. ICI Paris XL has around 13,000 products available. In addition, they give you plenty information about the product and they offer many actions. The products are always packed and shipped for free.
Revenue model
ICI Paris XL will generate profits and produce returns on invested capital based on the sales revenue model. This can be explained looking at the main purpose of the webshop of ICI Paris XL. With their webshop, ICI Paris XL wants to give the customer the opportunity to buy all the products, which are available in the store, online. So they will generate returns by selling goods to customers with the use of an e-commerce webshop. (Laudon & Traver, 2014)
The market space it operates in
The main market it is operating in is the one of perfumes. Perfumes are the biggest assortment they provide and their main focus is on that. Besides that they are also focusing on make-up and care products.
Main competitors
We can divide the competitors of ICI PARIS XL is several groups. For starters you one other big perfume shop you also see in every city and that’s Planet Perfume. They provide almost the same packages as ICI PARIS XL and are one of the main competitors. Another competitor is the local perfume shop. There aren’t a lot of them left over but you’ll still find them in the smaller cities where you don’t find an ICI Paris XL yet. They have a more loyal customer group and try to keep a good contact with them.
Advantages of the company
ICI PARIS XL is a brand that is working cross-borders so they have huge clientele. They have more than 250 branches in the Benelux alone. ICI PARIS XL is the ultimate beauty specialist that is always trying to offer the latest, most innovative and exclusive brands in perfumes, make-up and care products at a competitive price.
They are giving their stores a makeover, in order to offer its clients a better service. They are trying to build concepts stores. In these stores they can give advice to the clients individual needs. There is also space provided for beauty events that happen along the year. All these things are advantages that make it a pleasant trip for the clients.
The more basic advantages are the loyalty cards that give you a 20% reduction on most of the products. With the card you can also collect points with each purchase. The points can be turned into a coupon used when you sell something in the store. (ICI Paris XL)
Market strategy
ICI PARIS XL had a marketing calendar where all the new products, sales and promotions with suppliers are listed. Every three to for weeks they start a new campaign. The campaign also includes big promotions that are supported visually in the stores itself. They also promote by spreading flyers or show commercials. A couple of years ago they implanted a social media plan. To start up the social media of ICI PARIS XL they created a gift estafette. The response they had was overwhelming, more than 50 000 people participated. A small team of people runs their web shop and online-marketing.
But they don’t want to focus on their web store alone. ICI PARIS XL wants interaction and expanding their fan base by providing incentives that stimulate conversations about products and brands. They want to provide small gifts and invite our customers to contribute, by for example posting a photo about, which they often do on social media and in this way they are promoting itself. (Beautybuzz: online beauty retailer ICI PARIS XL and brand ambassadors)
Company’s management team & organizational structure
ICI Paris XL is now a part of the company A.S. Watson luxury perfumeries and cosmetics Europe. It is a perfume shop chain that was founded in 1960 in Belgium. In 1996 was the company acquired by the Kruidvat Group. Which in 2002 became part of the A.S. Watson Group. The ICI Paris XL chain falls under the A.S. Watson luxury perfumeries and cosmetics Europe department. (Wikipedia, 2014), (ICI PARIS XL België, 2014)
ICI Paris XL uses the E-tailer model as its business model. That’s because ICI Paris XL is a business-to-consumer focussed business that sells products online by using an online e-commerce platform. It’s the online version of their retail store, where customers can shop at any hour of the day or night without ever leaving their home. They only have to connect themselves to the Internet or use their smartphone to place an order.
ICI Paris XL is also called a “Bricks-and-Clicks” store. So they are using their online webshop as a complemantary online store. Because of that we can say that they use a more specific model of the E-tailer concept, which is called the Bricks-and-Clicks model. (Laudon & Traver, 2014)
Customer value proposition
The Customer value proposition of ICI Paris XL is that they are the beauty specialist of Belgium. People can choose out of a wide range of fragrances, cosmetics and skincare, which are also all available in their store. ICI Paris XL has around 13,000 products available. In addition, they give you plenty information about the product and they offer many actions. The products are always packed and shipped for free.
Revenue model
ICI Paris XL will generate profits and produce returns on invested capital based on the sales revenue model. This can be explained looking at the main purpose of the webshop of ICI Paris XL. With their webshop, ICI Paris XL wants to give the customer the opportunity to buy all the products, which are available in the store, online. So they will generate returns by selling goods to customers with the use of an e-commerce webshop. (Laudon & Traver, 2014)
The market space it operates in
The main market it is operating in is the one of perfumes. Perfumes are the biggest assortment they provide and their main focus is on that. Besides that they are also focusing on make-up and care products.
Main competitors
We can divide the competitors of ICI PARIS XL is several groups. For starters you one other big perfume shop you also see in every city and that’s Planet Perfume. They provide almost the same packages as ICI PARIS XL and are one of the main competitors. Another competitor is the local perfume shop. There aren’t a lot of them left over but you’ll still find them in the smaller cities where you don’t find an ICI Paris XL yet. They have a more loyal customer group and try to keep a good contact with them.
Advantages of the company
ICI PARIS XL is a brand that is working cross-borders so they have huge clientele. They have more than 250 branches in the Benelux alone. ICI PARIS XL is the ultimate beauty specialist that is always trying to offer the latest, most innovative and exclusive brands in perfumes, make-up and care products at a competitive price.
They are giving their stores a makeover, in order to offer its clients a better service. They are trying to build concepts stores. In these stores they can give advice to the clients individual needs. There is also space provided for beauty events that happen along the year. All these things are advantages that make it a pleasant trip for the clients.
The more basic advantages are the loyalty cards that give you a 20% reduction on most of the products. With the card you can also collect points with each purchase. The points can be turned into a coupon used when you sell something in the store. (ICI Paris XL)
Market strategy
ICI PARIS XL had a marketing calendar where all the new products, sales and promotions with suppliers are listed. Every three to for weeks they start a new campaign. The campaign also includes big promotions that are supported visually in the stores itself. They also promote by spreading flyers or show commercials. A couple of years ago they implanted a social media plan. To start up the social media of ICI PARIS XL they created a gift estafette. The response they had was overwhelming, more than 50 000 people participated. A small team of people runs their web shop and online-marketing.
But they don’t want to focus on their web store alone. ICI PARIS XL wants interaction and expanding their fan base by providing incentives that stimulate conversations about products and brands. They want to provide small gifts and invite our customers to contribute, by for example posting a photo about, which they often do on social media and in this way they are promoting itself. (Beautybuzz: online beauty retailer ICI PARIS XL and brand ambassadors)
Company’s management team & organizational structure
ICI Paris XL is now a part of the company A.S. Watson luxury perfumeries and cosmetics Europe. It is a perfume shop chain that was founded in 1960 in Belgium. In 1996 was the company acquired by the Kruidvat Group. Which in 2002 became part of the A.S. Watson Group. The ICI Paris XL chain falls under the A.S. Watson luxury perfumeries and cosmetics Europe department. (Wikipedia, 2014), (ICI PARIS XL België, 2014)