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Shutterfly Marketing Case - Yolanda Williams

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How Shutterfly Seeks Picture-Perfect Profits: A Strategic Case in Marketing
Yolanda Williams, 2012

Published in: Business, Technology

Shutterfly Marketing Case - Yolanda Williams

  1. 1. A Strategic Case in MarketingYolanda Williams, 2012ybowdrywilliams@gmail.com
  2. 2.  Founded in December 1999, Shutterfly is an internet-based social expressionand personal publishing service. Shutterfly is headquartered in Redwood City, CA with manufacturing facilities inPhoenix, AZ and Charlotte, NC. Shutterfly offers free online photo storage, and has never deleted a photo. Millions of customers have billions of pictures on Shutterfly. The Shutterfly flagship product is its award-winning photo book line, whichhelps consumers celebrate memories and tell their stories in professionallybound coffee table books. Other popular gift ideas include personalized coffee mugs, t-shirts, holidaycards and calendars. The winter holidays are the peak season at Shutterfly. At the end of 2012, the number of Shutterfly’s transacting customers totaled in7.1 million people with $27 million in annual revenue.
  3. 3. How to remain a top online photographycompanySolutionManage• Heterogeneity• Intense Competition• Target Markets• Marketing Mix
  4. 4. Customers who need to stay connected with familyand friends by sharing photos and videos, onlineand in print media.PeopleWoman are 70% of customer base of Shutterfly andtend to be the family historians and curators ofcapturing family moments.
  5. 5. “You and your pictures.Your stories. Shareyour world.”Shutterfly wants to deliveraward-winning prints fromyour digital camera right toyour door
  6. 6. Shutterfly provides high quality products and world class services that make iteasy, convenient and fun for consumers to preserve their digital photos in acreative and thoughtful manner. Product - Photo storage, digital photos printing services, photo enhancementservices, and personalized products Promotion - Free online photo storage, Photo sharing, Photo software, Photoborders and Back of print messaging, Never delete picture and secure picturestorage, cartoon character licensed products Price - Free, Moderate and Premium: photo size, type of print, and product Place - Online, with options to Direct-ship or Pick up prints at Walgreens, CVS,and Target® stores
  7. 7. I. Shutterfly has increased measures to manage customer heterogeneity by investing inmajor printing equipment so that it can control the quality of its pictures instead ofoutsourcing it to other photo processing companies. In doing this the company is able todevelop standards in providing quality coloring and images. The company has addedfeatures to its website to allow customers to manage their pictures, such as reducing redeye, adding borders and other improvements before having the pictures ordered. Thegoal for the company is give customers high quality pictures through its online services.II. Shutterfly single-minded focus on helping customers enhance, organize and store digitalphotography allows them to provide the highest quality products. They are number-onechoice of professional photographers and the proud recipient of many industry awards.III. Shutterfly continues to innovate – introducing new products and services to consumers,driving process innovation to improve product quality and cost.
  8. 8. Watch Shutterfly in actionwww.youtube.com/watch?v=naUmyHkmNiU
  9. 9. I. Shutterfly eases customer through the product adoption process by offeringfree prints to customers. This allows for customers to try its services andexperience it’s the quality product offering that the company is trying to sell.This early strategy built awareness and interest in the product.II. In addition, the company promotes picture storage through its website forfree and promises to never delete the pictures unlike other companies, whichmay entice customers to try their service.III. The company’s website features such as, free image loading and storage ontheir website, sharing with friends and family, and allowing friends and familyto order prints/products allowed better adoption of the product.IV. Before the social media became very popular, Shutterfly implemented thesharing strategy and extended their products to a market segment such asGrandparents without any additional efforts.
  10. 10. Shutterfly is 100% focused on developing a premium lifestylebrand. Thats because premium brands confer high customerloyalty, viral word-of-mouth growth, high customer retention andrepeat orders. In addition, Shutterfly continues to innovate –introducing new products and services to consumers, drivingprocess innovation to improve product quality and cost.I. Our picture storage is free and unlimited. We never delete photosII. We securely store your images at full resolutionIII. Enjoy free personalized websitesIV. 100% customer satisfaction guaranteedV. Plus, receive 50 free 4x6 printsVI. Pick up prints at Target, Walgreens, or CVS in as little as an hour
  11. 11. I. Shutterfly negotiated with Nickelodeon to license its charactersbecause it wanted to attract parent’s in buying these personalizedphotos with their children’s favorite characters. Nickelodeon is apopular children’s network on TV and this partnership allowedShutterfly to be more competitive and attract more customers. Thispartnership also allowed the company campaign around the newproduct in places such as magazines and TV networks.II. This helped Shutterfly to expand its appeal and gave customersmore reasons to log on, Upload new photos and buy from Shutterflyagain and again also increases market segmentation. Adds brandvalue to Shutterfly

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