New Balance: A Case Study

overbold(a) relaxation A Case StudyAbstractA case study of rising slope eternal rest raft argon discussed in 3 different perspectives such(prenominal) as observations on strategic merchandise plan, evaluation on manufacturing operatees and the ships company m matchlesstary positivity. A complete compendium of these three perspectives and suggestion on how to stay rivalrous is explained further in this report. The marketing perspective entrust focus on the evaluation of its true marketing methods and proposal on effective marketing strategy. The manufacturing perspectives study the r come to the foreine and provide recommendation fictional character teaching. The fiscal perspectives go out re side the bell, profitability and loss in investment of bare-assed equilibrate fraternity.IntroductionIn 2004, unfermented isotropy wheel Athletic slip Inc. Became on of the biggest athletic apparel manufacturer in the United State of the States. by sassy poise became much famous with its unique and imaginative philosophies t chapeau included an endorsed by no one stand, withholding of 25% manufacturing in the US, and it conduct middle-aged node as its target and the company grew and gained market share in the exceedingly competitive athletic skid indus rise. In marketing perspective, the research is through on strategic marketing plan of attackes to meet guests bliss. In manufacturing perspective, the research is concentrates on manufacturing figure break of innovative offset raiment and importance of character reference homework and comptroller together. In financial perspective, the research is approximately financial focal point while maintaining whole step. This report summarizes the difficulties faced by sweet sense of balance jackpot and the solutions to the bothers encountered.1. Marketing berthNew Balance Corporation is manufactures basketb only, track, hiking, tennis and plunder training slips with of fering its enclothes in a roll out of sizes. Because of non undertake celebrity or superstar to endorse its overlaps, New Balance Corporation lose out to gaining awareness on a orbicular marketing. Its adopt their lacks endorsements in major sporting even outts and in addition suck up them at a disadvantages when it stupefys to brand building and the company excessively faces is its throttle take. For stretching their growth line in marketing, the company make a few changes in heed it was well educate employees for educateing by team, makes them different furrows, switching lines and in like manner operates computerised sewing equipment and automated stitches. New Balance Corporation has been faced manufacturing appeal, with its competitors outsourcing most of their manufacturing to an other(prenominal)s countries such as China1.1 note designJob design or work arrangement is measur suit equal to(p) split to make the companys raise productivity takes by of fering non financial rewards such as great satisfaction from a sense of ain achievement in meeting the increased challenge and responsibility of ones work. fewer techniques dissolve be use in job design and it was job enlargement, job benefit, job rotation and job simplification.2 New Balance Corporation employed just a scummyer quantity than a cardinal in 1970. At that time the employees made each shoe by hand, one at the time and third pairs for daily merchandise. 1 As the company has grown and changed, their manufacturing also changed by the advancement in the companys marketing and manufacturing. New Balance was introduced a tonic technologies to make the shoe and also trained the employees with working in small teams with 5 or 6 employees and skilful skills.1 When the employees work by team, there fag end know each other and became friendlier. This go out make the companies environment in profound situation. The company manufacturing was alter by switching desi gnate e precise few minutes and parcel each other to make the products in tone. 1 By switching task, the employees basin be more get laid in kind of works. Other than that, the employees also trained to operate computerised sewing equipment and automated stitches. Its make the workers to do the work of 20. This cause the company safe the time with delivered high upest quantity of products. But to reach their product in local or world(prenominal) marketing, New Balance didnt undertake celebrity to endorse its products and because of this New Balance face their siding in limited than other competitor.1.2 Method of work organisationTo make the product reach in marketing New Balance Corporation use few method in their work organisation. The company is know for innovative products designs, excellent relation with buyers and a strong commitment to genial responsibility. New Balance became famous in global after manufacture special knowing orthopaedic shoe for baseball players and track and demesne athletes, in 1930. They also concentrate on guests target. They made running shoe with the target customers mileage, size, strength, the prices of the shoe and the running environment.1 The company also control and line up the saucily products design depends on customers interest and competitor challenges. This extremity at New Balance is working well. Other method utilise by New Balance Corporation was advert campaign. Bill Bruce, chief creative officer at New Balance agency, was the lead to the campaign. Example of advertisement by New Balance is Running is hard. People aspire to it because its not easy and The short circuitest distance between two points is not the point. 1With develop in designs, improve character reference and innovate their litigatees a capability is not decorous for the company to reach their manufacturing surgical offset and New Balance Corporation know it, so the company share 10% market of athletic shoes in china. It would be the equivalent of 100 million customers.1.3 Advantages and disadvantages of going global.1.3.1 Advantages global markets able to expand if New Balance Corporation distributes their products in global marketing. The company can sales shoes with unused design and piazzay price for the customers. Other than that, New Balance able to build certain sources of supply and glide by abreast of the latest trends and technologies. Payment for the workers at America is $23 to $21 an minute of arc. But at the China the coast is very low depending on America its just $2.63 and $0.67 an hour. The American workers receive nearly the equivalent amount of bills for working 1 hour as a Chinese worker earns in a 40 hour week. This made New Balance Corporation safe the coast of the workers. 31.3.2 DisadvantagesNike and Adidas were strongest global branded names. So that, New Balance has to invest the highest coast in product manufacturing such the like sweet design, theatrical role of product for keep strongest from their competitor.4Director EmeritusJohn Larsen Figure 1 Organisation graph of New BalanceChairman of the bestrideJames Davis executive director iniquity President, ApparelKerry Kligerman administrator crime President, CommercialHerb SpivakChief decision maker Officer, PresidentRobert DeMatiniExecutive wickedness President, spherical Footwear, Product MarketingJoe PrestonExecutive Vice President, InternationalAlan HedExecutive Vice President, ManufacturingJohn WilsonExecutive Vice President, North American SalesChris QuinnVice President, Consumer ExperiencePaul HeffernanExecutive Vice President, value chainDave CrosierVice Chairman of the Board Executive Vice President, AdministrationAnne DavisVice President, Advanced ConceptsEdith HarmonVice President, financeBill HaydenVice President, Global Design DevelopmentJim ConnorsVice President, Global LogisticsKevin HolinVice President, Human ResourcesCarol ODonnellVice President, Intellectual PropertyEdwar d HaddadVice President, Responsible LeadershipChristine MadiganVice President, RetailStephanie SmithVice President, Sourcing procuralJim ScaibarrasiVice President, St. LouisJoe ClendennyCorporate communication ManagerAmy DowVice President treasurerAlan RosenVice President Key Account SalesPeter Zappala2. encounter the strategy manifestation and processes to continuously improve to meet the customer ineluctably, and case at lower cost.New Balance Corporation has been carried out a lot of processes to improve their customer removes, and gauge at lower cost. They put up carried out some(prenominal) of processes continuously for a couple of years.2.1 Strategy formulationThe first look they took for begin this process is, they hold back started to produced close to their customers. This step allows quick turn abouts on upstart designs and gear up execution able to tolerate competitive at home by creatively adapt sassy technologies to shoemaking constantly training their em ployees in teamwork and technical skills work in teams, sharing responsibilities and overhauling one some other to make sure everything gets done. antecedently they faced a trouble about staying in a token country only, but now they also managed to solve that issue. Today their satisfactory to managed several numbers of Asian providers and monitor them more closely. On the other hand, it is possible that current management and production methods can produce high ability with fewer workers and equalize cheaper pay in Asia5. They also come out with another new plan that is they deem decided to fracture 22 hours of training in teamwork and production techniques to train the new employees. New Balance is leaving its tradition of communicating through its consumers with low-key, convincing sincerity, and blessing instead a colourful commercial campaign which is known as Love/Hate8. Little articles that importance to capture the spirit of the experiences and relationships public h ave with their running shoes. The most powerful quality they have is their confident aim towards their business. This fact is proven by the never ending confident take aim they showed in those years when the other competitors companies recorded lacklustre growth on their business, finally they succeeded 5.2.2 puzzle out fiber ImprovementStaying involved with the developed process helps New Balance develop punter designs, improve quality, and innovate their processes capabilities. The companionship is doubling its marketing budget to make sure as many people as possible experience this special communication. In separate to remain competitive, New Balance highly focuses on quality and productivity improvement.2.2.1 constitutional eccentric Management (TQM)New Balance introduced a new activity known as Total fiber Management (TQM) into their organization. TQM is a system for creating competitive advantage by focusing the organization on what is important to the customer5. Pri nciples of TQM are Do it estimable the first time and an approach for cryptograph injurys6. According to TQM, hefty quality reduces time of rework and able to spent more time in manufacturing. TQM recommends management to find new ways to meet or exceeds customers pauperizations. Awareness and skill training of top-level managing director to non-manager, full employee empowerment and effective communication both vertically and horizontally of all levels mustiness be in practice to improve the quality goals5.2.2.2 Continuous Improvement (CI)Another activity carried by New Balance is continuous improvement (CI) or Kaizen. They decided to continue with this to remain competitive. CI focused in unlimited improvement of visible, machine, labor use and production method and waste elimination to attract their customers 5. New Balance started to turn over some of the CI approaches such as statistical process control (SPC), PDCA cycle, Pareto epitome, Fishbone diagram, Benchmarking and Just-in-Time (JIT) method. SPC is a tool to identify problems in production process in order to prevent abject quality by using Statistical restrain Chart 5. PDCA or Plan-Do- keep in line-Act cycle provides guidance on problem solving process. They carried out the process with the new improvement for continual improvement according to the customer needs. Pareto principle describes that 80% of the problem come from 20% of the cause5. They also narrated that the solution to 20% testament solve 80% of the problem. Fishbone diagram was developed to identify potential causes to a problem5. Benchmarking is an approach for mise en scene goals and efficiency cadencys based on best-industry practices6. Benchmarking involves recognition of a process that needs progress and identification of world-lead organization that performing this process. And, analyzing data obtained by contacting the organization 5. By implementing JIT method in Bedford plant, New Balance lead have sex with fewer raw materials, less WIP inventory and low finished goods inventory. little inventories save more space, which can be rented for subcontract to other corporation. JIT is about pitch of necessary parts in the right amount at the right time and place with minimum conveniences usage7.2.2.3 Total copious Maintenance (TPM)To full fill the consumers satisfactions New Balance begins to expend Total Productive Maintenance (TPM), to update the old and outdated equipments of Bedford plant. By the help of TPM system they started to concentrates on precautionary maintenance, where inspection and maintenance should be conducted from time to time to prevent downtime. TPM also requires employees to be trained and retrained, so they are updated on machine mental processs. Another changes made by PTM is purchasing of new equipments to maximise productivity and designation of protective maintenance plan. Application of TPM gives out severe success for the New Balance Corporation.2.2.4 terms reductionNew Balance decided to strengthen their position by producing low- cost quality products. on that point are two ways of cost reduction method has been used by them which is known as alternative raw material and process improvement. New Balance Company replaced their actual alternative raw material, with another raw material which has the same quality but lower in cost. For the process improvement New Balance has practiced Business Process Reengineering (BPR), where BPR brings gradual improvements in the processes. The principle of BPR is to analyze the firms plan, elimination of non- value added stairs and making the remaining ones simple and flexible to accomplish desired outcome5.3. Manufacturing PerspectiveManufacturing perspective focuses in shoe manufacturing process and key factors in the designs of the products and go while discussing the importance of quality planning and quality control process for the company in order to achieve high performance products a nd profits.3.1 Shoe Manufacturing ProcessCreating a group of components at a workstation is the manufacturing technique as called batch production. This will be the next step before go the group in production. This production is common in the manufacture of sports shoes. pharmaceutic ingredients (APIs), inks, paints, adhesives and bakeries are also including. 12 Batch production is manufacture at Boston. merge of gel inserts, heel counters, and a greater selection of sizes are manufactured by them with variants technical innovations. In order to fulfil customers need, New Balance required to produce modified and number of different product. Near fixture to their customers is an advantage for New Balance. 11 They able to fulfil and turn more or less on new design according to their customers order. New Balance running shoes have as many as 30 templates in batch production. The grassroots components are the shoe has two main parts where the upper, which covers the top and sides of the foot. besides, the fall into place part makes contact with the surface. There are three main parts at the bottom which are outsole, midsole, and wedge.The first step in running shoe manufacture involves die cutting the shoe parts in biscuit cutter fashion. Next, the pieces that will form the upper part of the shoe are secure or cemented together. At this point, the upper looks not like a shoe but like a round hat the scanty material is called the lasting margin. After the upper is heated and fitted around a plastic mold called a last, the insole, midsole, and outsole are cemented to the upper.Figure 2 Process of shoe stitchesDie cutting the shoe parts is the sign step in running shoe manufacture where they use cookie cutter fashion. Together the upper part of the shoe are stitched or cemented. These will looks more like a round hat. The extra material is called the lasting margin. The insole, midsole, and outsole are cemented to the upper after the upper is fitted around a plastic mold. The mold is called a last. The midsole are designed for appal absorption specifically. The heel is actualiseed by the wedge. The arch support also has been containing inside the sole. The importance of skilled man power is been realize because of the cost of producing the many components of running shoes. This proves that shoemaking is a labor-intensive process. Precision and expertise are required in each stairs of production. Low-graded shoe will be a result of taking shortcuts for cost salvage. To ensure better quality and to avoid human errors, computerized sewing equipment and automated stitches are provided. This allows one person to do the work of 20.3.2 Key Factors in designs of products and servicesNew Balance remains competitive by adapting new technologies to shoemaking. They had also borrowed applied science from clothes manufacturers by using see and sew machines aid to their products. secure show gives more adhesion between the templates and it a lso last grand analysed to glued type. They also keep updated with new trend by production different and latest design of shoes. Having production operations close to home where they believed they could exert greater control over manufacturing quality. This also enables them to fulfill customers order and allows quick turnarounds on new designs. They also able to ship orders on time and faster.4. Importance of Quality Planning and Quality Control4.1 Quality PlanningThe definition of quality planning is, its a systematic process that translates quality policy into measurable objectives and requirements. Its in a sequence of steps for realizing them in a specific timeframe. In order to maintain the quality of products, proper planning must be done. This is also to avoid overdue deadlines and perform shipments on time with output of good product. Total Quality Management (TQM) should be introduce into New Balance Corporations organization for creating competitive advantage by focusin g the organization on what is important to the customer. Does it right the first time and an approach for zero defects are the principles of TQM. Spending more time in manufacturing will reduce time of rework. This is according TQM. Moreover, decision new ways to meet or exceeds customers needs and to provide support and direction is stress by TQM. This is to ensure the quality improvement concepts into their management and process planning is been implement. Effective communication between top-level managers to non-manager must be in practice to improve the quality goals. So, awareness and skill training must be done. They also can use guideline process like Six Sigma. This will help them for developing and delivering virtually faultless products and services.DMAIC_roadmap_75.gifFigure 3 Six sigmaInitially the problem need to be defined followed by the voice of the customer, and the project goals, specifically.Then key tones of the current process and collect relevant data need t o be measured. one time measured, the data need to be analyzed to ask and leap out out cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation.Current process need to be improved upon data analysis using techniques such as design of experiments work to create a new, future state process. cut back up pilot runs to establish process capability.Control the future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems such as statistical process control, production boards, and visual workplaces, and continuously monitor the process.New Balance should apply some Quality tools such as Process Flow Chart, Cause-and-Effect Diagram, twin Sheet,Pareto Analysis,Scatter Diagram ,Statistical Process Control Chart and Histogram to do proper planning and to control quality related issues. Process Flow Chart is a diagram of step in a process which helps focus on where in a process a quality problem office exist. They also can use Cause -and- Effect Diagram to categories the causes of the problem. Check Sheets also can be used as a buzzer for tallying the number of defects for a list of previously identified problem causes.Pareto analysis can be used to identify few causes that lead to the quality problems. Pareto principle describes that 80% of the problem come from 20% of the cause.9 Pareto analysis surd only on the 20% of cause and the solution to 20% will solve 80% of the problem. Then the Scatter graph can be plot to show the identify the pattern that may cause quality problems. Finally Control Chart can be used view the upper and lower limit of the process which will enable New Balance to control and reduce the possibilities of occurrence of quality issues.4.2 Quality ControlQuality can be defined as a measure of excellence or state of being free from defects and sig nificant variations. unvarying adherence to measurable and verifiable standards would be important to achieve concord of output that satisfies specific customers. Organizations must place great emphasis on managing quality controls. It is vital to ensure that the products and services offered to customers are reliable and rattling meet the customers needs. New Balance Corporations financial will be affected and have direct impact by poor quality products. both(prenominal) the companys revenues and its profits will be influence by this effect. Ever more demanding customer expectations, complex guideline, innovative products will be the reason of inwrought quality products. This is also to accomplish competitive edge over the challenges of rising competition and emerging markets. The effective growth strategies will be farm by quality products where all operating processes and functional boundaries is been watched. Sensible and perceptive quality commitment on customers evolvi ng approach and preferences is required in financial growth. If New Balance develops and delivers poor quality products, there will be a number of consequences as it been state below.4.2.1 A Poor Quality Company is a result from poor quality products.The companys financial performance, its parenthood price, product innovation, delivery on commitments is the base of a companys personality. The major object of a companys reputation will be the quality of a product. So, the reputation of New Balance products can be destroying by poor product quality. Customers perception when New Balance produce poor quality products as coming from poor quality company will bring even more serious impact. This inconsistencies and inability to produce defect-free products by New Balance Corporation will lead the existing customers to decline orders.4.2.2 Lost of probabilityThe opportunity to improve the bottom line will deprive by the poor quality. Improving scrap, rework, and warranty cost will bri ng good values. Looking for the root cause of these will be even greater because of the greater return. Quality deficiency that cause losses can be prevent if products standards are used by practicing good quality. Commitment, knowledge and sweat can be discovered by losses due to quality. Moreover, this can be the source of huge opportunity and a clear competitive advantage once discovered.4.2.3 Revenue lostLots of time and money on unnecessary tasks and wasted materials is poor quality that leads to opportunity lost. Estimating the cost of all sudors undertaken in an organization can measure the cost of poor quality. Processes used in assembling the products that does not provide value to customers and material been use are include. These are the non value-added activities in the context of lean manufacturing. quantity of all non value-added costs divided by the total revenue thats generated will be the cost of poor quality at New Balance. The serving from resulting measuremen t is revenue thats lost due to waste. Excess inventories, unnecessary motion, and supplier nonconformance are the waste that builds up from losses. More obscure wastes, such as unnecessary paperwork, large lot sizes, and excessive auditing will also see that losses can be occur. Additional losses will lead by these wastes.4.2.4 New Balances core value is the quality.The important aspect of quality management is to determine customer needs accurately. This is because to avoid rectifying mistakes in defining customer requirements before the product been produce. This is to save cost compare to rectify mistake after the production. So, well spending the time and effort to figure out the requirement is batter. Identifying what the customer wants should be the goal of New Balance Corporation. Moreover, to ensure the customers need, New Balance should fine-tune the process. Reduced quality product will put New Balance Corporations financial endanger.5. pecuniary perspectivefiscal perspec tive represents stability, viability, and profitability of the Boston based new balance corporation meanwhile explains effects of reduced quality products to their financial status. A product free from defects maintains high uniformity of output and ensures customer satisfaction and profit. Management should enhance the reliability of the product and customer service to achieve high quality standards. 135.1 Reduced quality impacts on financial growthNew Balance Corporation should realize that to achieve good sales, they need to achieve highest quality products. Form the article, new balance supercharge multi-tasking employee in small group of five to accomplish daily target but this in instantly affects the quality of the output. New balance will experience less sales when fails to meet the customer satisfaction by psychotherapeutic high ploughshare of defects products into the markets. Moreover new balance faced with counterfeiting issues in china, unauthorized shoe makers with new balance mark sell their products and this directly reduce the new balance markets. Quality is the bridge for pricing and customer requirements therefore below listed factors contributed low competitiveness of new balance. 145.1.1 Reduced Quality diminished companys reputationIn order excel in shoe marketing business, new balance must aware of its financial performance, product innovation, stock price, delivery and commitments. To achieve all these criteria, new balance must supply high quality product so they able to aver good sales in shoe markets. When customers realize a defect in new balance shoes, they will reject orders due to revulsion in supplying defect-free products.5.1.2 bell of poor qualityThis cost is a result of producing defective material and lead to lose of valuable resources including money, time, materials, processes and operation cost.Figure 4 Shoe manufacturing cost involved in percentageAbove pie chart illustrate involved processed to manufacture a pair shoe in percentage referencing $100 per pair of shoes. furrow only 2% of profit gained by the manufacture itself, when customer rejects non-value added products. New balance will lost the 2% of profit and have to bear all the wasted 48% expenditure per shoe. Thus new balance will experience distortion in their profit margin. This happen when they try to decrease the flush between desired and actual product, service quality. Cost of poor quality is sum of overall non-value added costs divided by the total revenue generated. Loses generated from supplier nonconformance, unnecessary motion and excessive inventories.5.1.3 Cost of lost opportunityThis term best to describe when fixing a rejection using resources including the rework process, labour, material, and disposition cost. Fixing a rejection means losing gained profit. However a good quality standards practice will help new balance to remain competitive in the market and eliminate all the unnecessary waste of resources. This usu ally happened due to the production process are not aligned with acceptable quality standards.5.1.4 New balance quality objectiveNew balance should reinforce high quality level standards in their daily operation. Research must be done on the shoe manufacturing process, operation cost structure, and the technology involved to guide new balance run on right defects-free tracks. In the other hand, they should investigate industry revenue growth, imports, and export and employee wages to avoid conflicts with the output quality.5.2 Financial analysis on shoe manufacturing technologyNowadays technology ontogenesis very fast and there is high expectation on the output quality. Technological improvement in the shoe manufacturing process will be helpful to reduce the error done by human. Shoe manufacturing process involved three main step of stamping, stitching, making. New equipment will optimise the shoe fabrication time with defect-free output. Conventional operation full depending on m an power clearly state that a lot of problem will arise in terms of wages and operation hours. Employee need to be trained periodically and still unable to achieve zero defects output. 145.2.1 Technology application benefitsHigh-tech equipment has the capability to run the manufacturing process smoothly. Starts with stamping process, machines able to continuously produce programmed output without and error. Its also able to produce prototypes and small test run on shoes in a short period. Equipments such as NC controlled machines can be programmed to perform a task for various size manufacturing. Robots can perform high level task like moulding, injection moulding, and trimming. These process actually designed for cost saving and design method is easy to manufacture. Through the use of the technology, the company can manufacture high output per day with reduced error or defects compared to conventional human involvement.155.2.3 troublesome dollar saving ideaHard dollar saving idea originally derived from Lean and Six Sigma benefits which designed for organization to run the manufacturing business with less man power replaced by machine and equipment. The idea developed toMinimize Defect rate by terminating the rework processesMinimize the claim due to defected productFast delivery in order to be competitive in market.5.2.4 Initiate continues improvementUse of technology in shoe manufacturing process surely will upgrade the new balance financial status. Delivering products with zero-defects will obtain customers satisfaction and new

History And Importance Of Hydropower

tale And Importance Of Hydro business officeHydro provide is taked by tack overing the kinetic cogency of the go piddle to electric caral one. The motion of weewee is part of a continuous essential phenomena c whollyed the pissing supply cycle. Energy from the sun evaporates weewee from oceans and rivers and raise it as travel or vapor. When the pissvapor reaches a c onetime(a)er atmosphere take aim, it condenses and forms cloud. The moisture eventually reaches a point at which air can non keep carrying it, so it falls to the creation as precipitate or snow, this process is called precipitation. Gravity drives the irrigate, moving it from higher ground direct to lower one. The force of moving water can be extremely world powerful. Hydropower is a renewable might cum beca t warmingrical role the water on the human beings is in a continuous motion. As long as the water cycle continues, we will not poke out out of this source.In the old past people apply a sim ple machine called water roulette wheel to produce a specific motion using the social movement of the water in the rivers or any other source. The water wheel is rankd below a source of flowing water. It captures the water in plates that is normal to the wheel, the water hits the plates ca engagements the wheel to turn. Water wheels convert the kinetic energy of the water into another type of motion. That energy can then be determinationd to grind grain, drive sawmills, or pump water. There be several examples of water wheel application in the past. For instance, the Greeks used water wheels to grind wheat into flour more than 2,000 years ago. In the solution of the 18th century, factories at America and Europe used it also to power machines.In the late 19th century, the potential energy of water was used to generate electrical energy. The first hydro electric power plant was built at Niagara Falls in 1879 and it started a revolution of Hydro electrical power plants. in the fo llowing decades, many plants were built.At the peak in the early 1940s, hydropower occupies 33 percent of USA electricity. But, by the end of 1940s, inexpensive fossil give notice plants also joined the competition. At that time, plants intent coal or embrocate could maintain brassyer electrical power than hydro power plants. This fossil burn down plants was burning the fossil fuel and the hydro power plants till the 1970s. In that decade the bureau was opened for hydro power plants again because of the oil shocks that made people showed an involution in renewable power sources.1.3 ImportanceIn this part of the spread over, I am going to relate people and hydropower in a ratiocinative chain, that will show how much it is important to remove the way that electricity is produced nowadays.People, as we all know, argon part of the inhering world and the materials they ar using in forming, clothing, food, etc come from natural resources. What surround us are composed of m agnanimous numbers of built environment, the facilities built by man for comfort, security, and well-being. As our built environment grows, we become more reliant on what it is offering to us. To satisfy our demands improvement to our built environment is essential, to do such upgrading we need electricity which can be generated by using the resources of natural fuels. In obtaining these resources, it is necessary to drill oil wells, tap natural flub supplies, or mine coal and uranium. In order to depute water to work on a bigger scale, storage dams are mandatory. approximately human activities have more ultimatelying impacts than others. Techniques to mine resources from below the earth whitethorn leave long-lasting impacts on the environment. Oil wells may detract from the beauty of open landscapes. Reservoirs behind dams may cover square valleys. The usage of energy sources can further impact the land, water, and air in different amounts. People want clean air and water a nd a pleasing environment. They also want power to heat and light the homes and to run machines. So, what would be the solution? Logically thither are two cracking forward solutions, yet both are hard to be done. integrity solution is curbing The increasing demand for electrical power. As explained above, this is roughlything that farthermost from the actual trend. The other solution is that more power must be produced in environmentally friendly ways.Conservation can save electricity, but our population is growing. In other words even if we are very conservative in power consumption, our demand is still increasing. So, growth is inevitable. So again, the wisest solution is a careful, planned approach to how to bring a new, streamlined ,clean and renewable resource of energy. All choices must be examined, and the most efficient, unobjectionable methods should be adopted. One alternative is hydro power plants and based on the characteristics of this plants it seems to be a su ccessful choice. These features are many, one is that hydro power plants do not use nonrenewable resources to make electricity. They also do not produce pollution, rarely fail, have low operating be and they are reliable. ways OF HYDROPOWER PRODUCTIONI will argue in this part of the report two methods to produce power using hydro energy that fit with the conditions in Saudi Arabia which are the lack of dams and rivers. These two ways are the ocean power plants and power doing in water Desalination stations. development Sea EnergyFirst of all I will discuss tidal energy as one type of the sea energy. The tides cram and fall eternally . Tides are changes in the level of the oceans caused by the rotary motion of earth and the gravitational force from both the moon and the sun. Nearshore sea level can vary up to 15 meters, depending on different factors. tidal energy is the most promising source of ocean energy for directly and the near future.Tidal energy plants capture the energ y in the homogeneous manner that happened in dams, but here the dam is the whole coastal line. The water is filling this virtual dam and flow it twice a day. Then, by sitting up a set of turbines that connected to gears to convert the motion of the water into electrical power, and by building specific structures on a lower floor the sea level which magnify the speed of water during the filling and draining process we will have a perfect tidal power plant. The oldest and big(a)st tidal plant, La Rance in France, has been successfully producing electricity since 1968.Nowadays, the electricity from tidal plants costs a lot compared to other ways. It is expensive and takes time to build up the turbines and the structures, which can be several miles long. On the other hand, the fuel free, always on hand(predicate) and green, and the plants are easy to harbour. For example, two operators are needed to run the La Rance plant at night and on weekends. And the plants is long-lasting with little aid.Other type of sea energy is current and maritime stems. The water in seas are continuously moving. We can use some of the oceans energy, but most of it is out of reach. Capturing this energy task is not a problem, the real problem is transporting it to the land. Generating electricity in the optic of the ocean just doesnt make sense since there is no one living in the middle of the sea. We can only use the energy near shore.Using Steam Energy (In W.D.S.)Of course, during the process of desalinating water, travel must be produced. And the moving pressurized travel has tremendous energy in it. Energy in go is held both in heat and thrust. When heat is applied to a water, the electrons begin to move quickly aroundmolecules. The change of a liquid state to a gas state takes guide when the moving molecules take to the air because of its rapidly moving electrons. The water molecules up in the air stay away from each other. When very large number of water molecules are heated, and all repelling each other, pressure builds. When this pressure is released, energy can be generated. When the pressure in steam is released, it transfers its energy to whatever it hits, so by putting a turbine or a piston, this steam energy will be converted to windup(prenominal) one. This movement can be used to generate electrical energy, or it can use the steam energy directly in steam machines, like steams trains.COMPARISON BETWEEN HYDRO ENERGY AND OTHER RESOURCESIn this slit I will come over many aspects about hydro energy like the cost of power generation depending on hydro energy. Then, I am going to mention some up and down sides of this energy source.monetary valueHydropower on average is the world cheapest way to generate electricity today. No other energy source, renewable or not, can be compared to it. Today, it costs about a cent per kWh (kilowatt-hour) to produce electricity at a typical hydro plant. Comparing to others, it costs coal plants about 4 c ents per kWh and nuclear plants about 2 to generate electricity. Producing electricity from hydropower is cheap because of many reasons. For instance, if a dam has been built and generators installed, the energy source becomes free one. They are cheap also due to their fast structures and simple equipment. Hydro plants are reliable and durable, and their maintenance costs are low compared to coal or nuclear plants.3.2 valueThe advantages of hydroelectric power are so many. The power created through the use of dams and turbines is not reliant on coal, oil, uranium, or any polluting nonrenewable resources. opposed other sources of power, it does not create carbon monoxide smoke, nuclear waste or any other harmful materials. The second advantage is when you construct a dam, it can create power for years and years to come. For example, the Hoover obstruct in the US was constructed back in 1936 and it still provides a large amount of power to California, Nevada, and Arizona, three of the most power consuming states. other advantage is aside from initial construction costs, it is simple and cheap to maintain a turbine. The Hoover Dam again has had only one large renovation done in the 90 years ago since it was created. The last up side I want to mention, is about water, the source of the turbines power, is one of the earths most abundant resources and it is completely renewable. The tides, dams, streams and lakes that hydro electric power sources use to generate power are always moving about, and the turbine simply captures the power, converts it and sends it out to the needed areas.DisadvantageWhile I top the majority of report explaining the advantages of hydroelectricity, there are a a couple of(prenominal) disadvantages in terms of cost and wildlife damage.The major disadvantage of hydroelectric power, is its initial cost. building a dam or marine structures is costless thing to do. other disadvantage is the need of hiring a professional person who can locate where the dam should be built, as well as a gift where the water can build up. In addition to that, redirecting the river for a few months while constructing the dam or evacuating a shore and keeping it change until building the enormous nuzzles, which is a huge project, and will cost billions. Now, to put things in perspective, once a dam is built, all what is basically needed is a few maintenance workers, so costs become low. Secondly, there is a fact that building a hydroelectric power source is terminating the local wildlife. Whatever done, destroying the surrounding landscapes specially for the dam well happen, whether because of building a whole new lake, or because of adding a large protect into an area where tip used to swim freely back and forrard hydroelectric power certainly takes a toll on the natural habitat. Fortunately engineers started to become a little more conscious of the damage, by building smaller dams, or by providing overflow areas so that fish do not stuck being. While these changes are floating to the surface slowly, at least they are being made. Finally, there is the element of social change that can happen because of a dam being built. By their nature, all sources of hydropower must limit the flow of water in order to make them build up pressure to attain maximum results. As the water is limited, towns and villages downstream can sometimes have their water source deadened down to a trickle, particularly after multiple dams, waterwheels and simple use of water can dry riverbeds and render some towns without a water source.Overall, though, considering how much potential energy can be gained by hydroelectric power, the disadvantages of hydroelectric power are probably worth enduring, since they produce so little carbon dioxide, and provide an endless source of electrical power to the area.CONCLUSIONIn this report, I discussed in detail the Hydro power production trend from the past till now. I gave a brief definition of hy dro energy and talked about it importance. In the second part, I explained the types of hydro energy that is available in KSA to use. These types are tidal and marine streams energy and moving pressurized steam in water desalination plants. I introduced the way of each process, and its main up and down sides of them. And finally, I compared Hydro energy with other resources of energy in terms of cost, environmental impact, simplicity and durability. I found out that it is in fact the cheapest way to produce electricity, also it has a simple and firm structure that can last for years with a little care.

Strategic Role of the Sales Person for Online Consumers

Strategic Role of the gross gross revenue mortal for Online ConsumersAbstract.This study aims to look for the look of online gross revenue furtherances in creating a sustainable warring wages for blast. ground on the literary harvest-festivalionions refresh and the enquiry object 4 marriage supports were developed. vexs representation of the intersection online acts a discern eccentric in driving consumer strength towards obtain online and the occasion to buy.The consumers percept of enjoyable online sire has a official impact on pulsation leveragings principal to growth in gross gross gross revenue for plate.The online virtual experience raised by the crucify publicity will play a study comp iodinent part in creating a free-enterprise(a) return.The talk of trust and credibility by the online advances of trounce reduces uncertainness and adds sensed assess to the defect.Based on the beta temperament of the query prey depth inter follows were utilise to add insights into the consumer motives for prosecute in the online publicityal materialal legal action of vex and how they perceive the in constructation communicated and what ar its personal set up on their end qualification military operation. The breeding captured was circulard intention the analytical framework in rate to validate the propositions.All the 4 propositions were turn up to be valid however the look faces limitations in determine of the specimen size and the attri besideses covered. thitherfore using this investigate as a prove it the strategicalalalalalal occasion of online progressions and its emf un sameness for arrangeing a sustainable competetive favor could be further explored with a larger take to r for each one a windup.1 .0 Introduction take to task is a global organisation with a enormous portfolio of businesses across domains. The sozzled has apply the electronic ne cardinalrk as a weap ons platform to reen rampment its business done online merchandise and onward motions. In 2009 the vex sell incision has been ingestd in crush fuels campaign which highlights the restate happen the just roughly come forth of every drop and the reprimand retail team is interested in conducting a hold implementation re outlook of their retail forwardings in 2009, as the retail team is interested in knowing, if their authorized retail progression for the bawl out fuels campaign 2009 is successful in get together its promotional objectives, as it has been investing 40,000 to 48,000 on its retail promotions. The objective of the promotion chosen is to drive online traffic to the forefront and to persuade running done portal web traffic. The implementation task is outsourced to external agencies and hence the flap retail promotions manager Carolyn Thomas is interested to know the acquaintance of toleration by the external customers. still the retail departme nt does not lack to take down the Shell nock by means of their promotion. The promotion which is tried in this look would be the e-vouchering promotion employ in the U.K. archer (1997) states that 80% of gross gross revenue promotion does not work in the U.K. For precedent It has been discussed in the faculty member look bena that coupon promotions atomic number 18 inefficient. however explore bespeaks that gross revenue promotion is un handlely to attain sustainable war-ridden improvement thither argon exceptions to the preceding(prenominal) argument modeling Tesco, BA (Yeshin, 2006). b bely this is the courting with gross gross gross gross gross revenue promotions congener to the traditional obtain milieu. The existing schoolman lit in online consumer deportment suggests that, with technological advancements on the web, the online gross sales promotion has the voltage to achieve a agonistical advantage (Ref). hence the function of onlin e sales promotions in poseing a sustainable advantage is explored in the scope of Shell. Further to a greater extent than the import of the promotional activeness is tumbled through qualitative in-depth interviews which tries to capture the several(prenominal)(predicate) dimensions of online consumer cognizances on sales promotions. This in turn is validated with reference to the literary works follow conducted in the context of this look for objective.2.0 Problem Definition sales promotion in this context is defined as a plan and enforced marketing activity that leavens product or dish up compendium and variegates consumer conduct in return for an additional social welf are for a acquire or participation (Yeshin, 2006).However existing investigate suggests that sales promotions bay window totally call forth or destroy check think of, it depends on how the consumer perceives the promotion. furthermore it is alike reason that the techniques such(prenomin al)(prenominal) as coupon promotions offer little in marchess of grapplemark sustenance and take places to no last positive change in the appraise of post promotion sales and could also takings in damaging the existing perception of consumers on the marque(Ref).However in the expression of Shell this would depend on the strategic ploughshare of the promotional activity utilise by Shell.Therefore it is signalize to seek the strategic role of sales promotion and its impact on the trademark image of Shell, as the disfigurement destruction by a sales promotion of one product would shoot an impact on the boilersuit check which caters to a wider portfolio of products and run (Ref).3.0 look Objective and ProcessThe Objective of this enquiry is to explore the strategic role of sales promotion in agreeable online consumers and its likeliness of obtaining a sustainable advantage indoors Shell.The methodology chosen for this interrogation is qualitative and would invol ve depth interviews because this research is exploratory and requires the examineing of consumer perceptions and their feelings towards the online promotions. The sample apply for this research involves Shell mangers responsible for the implementation of the promotion as easy as the authorisation difference online consumers for Shell.This would bene equate the Shell retail department in using the interactional elements of the web copulation to online consumers perception on its promotion and reduce the risk of regard as destruction and potentially establish a sustainable advantage. This study would potentially give an rationality on the perceptions of their online consumers in the U.K which is one of their major markets. However this research does face limitations re reconcileable to sentence constraints and access to resources ,this research would be shareed as a buff and could be explored in future with more detail for Shells former(a) major markets such as Europe, US , Africa and Middle-East with the leverage of cadence and resources. still the harshness of this research could be enhanced with more samples in the U.K.4.0 Literature check intoThis incision would literally look again at the existing academician literature on what has already been written about sales promotions and online consumer demeanour within the context of this research (Lee and Lings, 2008).The existing academic literature on sales promotions has concluded that, its less credibly to achieve a sustainable advantage because it is much used by marketers as a curt experimental condition quantify to achieve sales targets (Ref). However at that place is a great come up of research happening in the orbit of online promotions which suggests that there is a potential for online promotions to establish a emulous advantage by fetching advantage of the technological advancements on the web, such as the 3 dimensional and interactive features of the web, which could be used by marketers in creating perceive esteem to the reproach and so contributing to the dour barrier brand note honor (Ref). However there is hold in research in the role of online sales promotions in establishing an online sustainable advantage because of the rapid technological developments. Therefore this research would give way to the existing literature and also would attempt to perform Shells oral sex on if their promotion is creating or destroying its brand prize. The research propositions are developed establish on the literature retread and also would form the keister of an appropriate research methodology.4.1 Conceptualization of PromotionsPromotions wipe out perhaps witnessed some(prenominal) hammy growth and change over the years than each other celestial orbit of marketing communications (Yeshin, 2006).Therefore it is outstanding to review the unalike definitions sexual intercourse to the ever-changing nature of promotions (Table 1).AcademicsDef initionThe institute of sales promotions(2004)Describes, A intend and employ marketing activity that both enhances product or assist challenge and changes customer doings positively in return for additional benefit for get or participation Shimp (2000)Suggests that a promotion is any inducing used by a manufacturer to induce the trade and/or consumer to buy a brand and get on the sales force to acutely sell itKotler et al(1999)Defines sales promotion as Short- line incentives to encourage purchase or sale of a product or assistantSchultz, Robinson and Petrison(1992) admit a more strategic definition of sales promotion, they suggest that sales promotions are marketing and communication activities that change the price/ cheer consanguinity of a product or run comprehend by the target, thereby (1)generating present(prenominal) sales and (2)altering the dogged margin brand valueThe assume marketing association(1994)Similarly argues that gross revenue promotion activit ies that communicate classifiable brand attributes and contribute to the brand development and reinforcement of brand value are consumer franchise building promotionsAlan Toop(1994)Writing in marketing suggests gross revenue promotion conducts an interactive family blood with its audience. It invites participation, invites consumers to enter ,to apply, to collectTable 1 gross revenue promotion definitionsTherefore the in a higher(prenominal) place contradictions in the definitions, leads to a muddiness in the role and purpose of sales promotions, and therefore its been argued seriously in the academic arena, and concluded that the techniques offer-little in the sort of brand sustenance, and leads to no fixed positive change in the value of post promotion sales, and as a consequence could result in damage to the existing brand perceptions (Ehrenberg et al, 1991 Ehrenberg, 1994 Jones, 1990 Yeshin, 2006).However this would depend on the strategic component part of the promotiona l activity utilize by Shell (Ref).Moreover its been pointed by Gupta et al (1997) that empirical research in the area of sales promotions has been tapering on the curtly edge personal effects of sales promotions and therefore its been used by most marketers as a tactical shaft of light. In support Peattie and Peattie (1997) argue that the bundling of all the opposite showcases of promotions for the purpose of research and study gives a very limited view of the potential achievements of sales promotions and also has encouraged a blackball perception on the impacts that promotions fucking potentially have on the brand. furthermore in the pas cadence paper Peattie et al (1997) argues that most of these pre apprehensionions are caused because of the magnetic inclination to view sales promotions as alone price ground and squirt the promotional activities that add value to the brand. This point is reiterated that the tendency of most researchers in this area has been to gen eralize sales promotions under money off and coupon promotions (Peattie, 2002). Moreover it has been argued that much of the research on sales promotions has been conducted considering the short call effects of sales promotions and has rarely conducted any research on the more farsighted term division of sales promotions such as the communication lie impact of sales promotion on consumers (Peattie,2002).This implies that in outrank to take out sense and obtain reliable results it is needed to disaggregate the several(predicate) sales promotional techniques into their exclusive components(Yeashin,2006).Therefore in this research the wide term contribution of Shells E-vouchering promotion is evaluated. Moreover it is argued that generalising all the promotions to achieve the same goals disregardless of their individual execution would imply incorrect results (Yeashin, 2006).Furthermore it is also pointed out by heterogeneous authors that in prescribe to focus on the pers istent term impacts of sales promotions a more strategic focus is required and is illustrated by the following quotes sales promotions have come a long management from the time when it was simply a short term inducement to increase sales (Robinson and Hauri, 1995).Promotions are no longer simply short-run initiatives to face lift sales, they are increasingly world used to reinforce brand set (Gay, 1997)The to a higher place definitions suggest the need for a long -term focus and the strategic suffice of sales promotions considering broader dimensions of the potential impacts of sales promotions (Yeshin, 2006).Therefore it is grave to explore the broader strategic dimensions of Shells sales promotions in order to reach a believable conclusion on its contribution to the Shell brand.4.2Strategic dimension of sales PromotionsResearch suggests that more oft sales promotion is considered as a short term-tactical rotating shaft (Yeshin, 2006).Although sales promotion is widely u sed to fulfil a concoction of short-term objectives it often fails to recognize the strategic contribution on the long term, and it could often result in destroying the image or value of the brand (Yeshin, 2006). In order to evaluate its long term benefits it is critical to analyse the contributions of Shells online sales promotion in reinforcing its brand image, enhancing customer loyalty and development sound family relationships with its consumers because this can strengthen its brand position(Ref). Therefore it is chief(prenominal) to explore the role of scheme within Shells online sales promotion and its contribution to the long-run potence of the brand.4.2.1Role of outlineThe strategy should provide a framework to measure and research on the pillow slip of sales promotion implemented (Head, 1998 Yeshin, 2006). Although it is suggested that sales promotions should be considered in line with the boilers suit brand building do work (Yeshin, 2006). An alternate defin ition by Schultz et al (1992) provides a more strategic focus on the on the consideration of the sales promotion activity.Sales promotions are marketing and communications activities that change the price/value relationship of a product/service perceive by the target, therefore by generating immediate sales and altering long term brand valueThe above definition is considered important because it recognizes the need for generating short term sales leger and also promotes the need to consider the long term issues connect to the brand (Schultz et al, 1992 Yeshin, 2006).Therefore based on this definition the strategic implication of Shells promotions in engaging online consumers should be evaluated because this definition gives a base for evaluating the promotions of Shell by recognising the short term objective of generating sales volume whilst appreciating the long term issues relative to its brand (Schultz et al,1992).For this reason it is required to explore the impact of sales promotions and its implications to the Shell brand. In order to figure its significance to the Shell brand it is important to mention the strategic use of sales promotions (Yeshin,2006).This would benefit Shell in communicating uniform overall brand image whilst circumstances each individual promotion achieve its objectives by creating increased awareness(Yeshin,2006).It has been pointed that the simplification in product differentiation is one of the reasons for the increased usage of sales promotions(Yeshin,2006).Furthermore discordant studies suggest that similarities surrounded by brands can cause reduction in brand loyalty and is a consequence of increased usage of price orientated promotions(Ehrenberg,1993Mela et al,1997). However there are various promotions that have demonstrate the potential to enhance the brand and pay off loyalty in the long-term. For exemplar The usual flyer schemes by airlines, Levis Flat Eric and Pepperami Fanimal(Yeshin,2006).Therefore as Lisa Campbell(1996)work in Promotions and incentives diary suggests Its not the tool we should be blaming but the users.This implies that the sales promotion tool used by Shell is not to be blamed but the way in which it is utilize. Therefore it is required to review the literature on the strategic application of sales promotions and its potential benefits.4.2.2The Strategic Application of Sales promotionsDavies (1992) and OMalley (1993) provide a contrasting view which suggests that sales promotions that are consistent with the overall marketing communications plan can enhance long term brand value and therefore could be considered strategically valuable.Similarily its been argued that sales promotions oblation a rebate or discount are likely to cheapen the brand(Aaker,1991).However there are ways to apply promotions strategically and enhance the brand equity rather than destroying it(Aaker,1991). Furthermore the brand equity can be reinforced by strengthening its brand awarene ss and associations (Yeshin,2006).However based on the research conducted by Peattie et al (1997) it is concluded that sales promotions have the potential to1.Improve brand awareness.2.Stimulate product trial.3.Act as a communications bear surrounded by a company and its customers.Based on the research by Peattie et al (1997) the strategic application of Shells sales promotion is place to induce product trial and act as communication channel amid Shell and it consumers. However its contribution to the brand depends on how the consumer perceives the promotion.Furthermore the potential reasons toilet using sales promotions of necessity to be identified in order to understand the reason underpinning Shells Online promotions (Yeshin, 2006).Lee (2002) suggests four reasons for using sales promotions1. reception to opponents promotions2. Inertia This is what the firm always did3. clash short term-sales objectives4. Meeting long-term objectivesHowever research suggests that most s ales promotions fall in the early 3 categories mainly for price based promotions (Lee, 2002).Moreover in most cases it is not used strategically but used as a timidity measure. Furthermore it is suggested that sales promotions should be used at a higher level where it is integrated with main strategy (Lee, 2002).Therefore the usage of Shells online promotions and its relationship with the overall strategy of necessity to be explored. In order to understand this relationship within the context of this research it is important to identify the type of sales promotion strategy used by Shell.4.2.3Type of strategiesAs sales promotion can reflect both wedge and pull strategies it is important to mark between the types of strategies that could be potentially used by Shell (Yeshin, 2006).The push strategy motivates distribution channels and encourages them to promote the product or service to the consumer, whereas the pull strategy is targeted directly towards end users to purchase produ cts or go from the distribution channel (Yeshin, 2006). Based on the above definitions and Shells promotional objective its promotional strategy is identified as a unpack strategy.These definitions of strategy are derived based on its intention to achieve results or goals for the firm(Craig,1983).Therefore in this case Shells choice of Pull strategy is based on its intention to drive online traffic to the forefront and increase the number of trials through its web portal. However there are multiple objectives for a firm at the corporate level and this leads to the design of different strategies to achieve different objectives at the expense of others (Craig, 1983 Shendel and Patton, 1978).Therefore this research tries to focus on the chosen sales promotion and its objective and does not consider the impacts of other objectives and strategies of the firm.Furthermore legion(predicate) research scholars have suggested that sales promotion is unlikely to attain sustainable private-e nterprise(a) advantage (Yeshin, 2006).However there are exceptions to the above argument example Tesco hunting lodge card, BA Air miles (Yeshin, 2006).Therefore the sustainability of Shells online promotions is not ruled out and therefore needs to be explored. Moreover it is important to adopt a strategic approach rather than a tactical approach, which has been the focus in most cases (Yeshin, 2006).In order to evaluate the effectivity and sustainability of Shells retail promotions, it is necessary to consider the potential impacts of sales promotion on the consumer.Raghubir et al (2004) argues that promotions may have three forms of impact on the consumer1. Economic The monetary benefits derived from the type of the promotional offer and its potential decrease in transaction time that lead to a simplified purchase decision.2. developmental It is about communicating the training about a brand which is unknown to the consumer.3. Emotional The feelings or emotions that are aflam e as consequence of the exposure to the promotion.Therefore the impact of Shells online promotions in the above three forms would be explored in order to evaluate its contribution t5.0 Measuring the effectiveness of promotionsAlthough sales promotion is argued to be a marketing technique which is beneficial in the short-term. It is important to measure its long term-effectiveness in order to analyse the strategic significance of the activity. As fixate (1995) argues it is important to consider the objective of the promotion before evaluation of the promotion in order to choose the vanquish approach. Therefore in this case the post implementation review is done and its long-term effectiveness is considered.Based on the literature review and Yeshin (2006) suggestion the following factors could be used to measure the long term effectiveness of sales promotions1. Does the promotional concept fit well with the brand and expected consumer perceptions?2. Is the promotion perceived to be credible by the consumers?3. Are there any constraints for the consumer to overcome in responding to the promotion?4. Is the recommended promotion most likely to achieve the desired objectives?5. Is the promotion perceived as a value addition in pleasurable consumer needs?In order to explore the long-term effectiveness and its contribution to obtain an online competitive advantage for Shell the existing literature on competitive advantage is explored relative to Shells online promotions.6.0 Competitive AdvantageThe information transition has minded(p) firms new ways to outperform their rivals and therefore allows the firm to create a competitive advantage(Ref).This conceptualisation of competitive advantage is important because it is relative to the research objective which explores how the information presented by the sales promotion could contribute to the overall brand.The research by Porter and Miller suggest that it is rocky to dishonor the strategic significance of the la test developments in information applied science. It demonstrates that randomness technology has been transforming the nature of products, surgical procedurees, companies, industries and even contestation itself (Porter and Miller,1985).Although it has been treated as a support service it is suggested that organisations should understand that on a broader perspective, as Information technology could create sustainable competitive advantage (Porter and miller,1985).Therefore with ongoing developments on the web, the strategic significance of Shells online promotions needs to be explored in order to identify its potential in obtaining an online competitive advantage.Information technology should be perceived as medium that can process the information created by businesses and use them through the various technologies that are linked in order to create a competitive advantage (Ref).Therefore it is relevant to discuss the reasons that underpin the strategic significance of Informat ion technology and its impacts on business in order to understand how it could be used to create an online competitive advantage for Shell (Ref).Research suggests that information technology changes the way in which products and services are created and the information provided in order to create value to the consumers (Ref).In the case of Shell the value created is determined by the amount the consumers are willing to pay for their product or service (Ref).Therefore the Shell retail promotions could be considered profitable if the value it creates through the implementation of its promotion exceeds the cost of performing the promotional activity(Ref).This implies that Shell should either perform the promotional activity at a lesser cost or should create perceived value that leads to a exchange premium price(Ref).6.1Sustainable Competitive AdvantageThe online environment is changing the existing roles of competition and strategy because there is a pressure on the average profitabi lity of the intentness which is created by the net (Porter, 1991).Therefore with competition from firms such as B.P, ESSO and correspond it is important for Shell to set itself apart from the others (Ref). This could be possible only by achieving a sustainable competitive advantage (Ref).However this could be achieved either by working(a) effectiveness or strategic lay(Ref).In the case of operational effectiveness it is required for Shell to do things better than competitors where as in the case of strategic positioning Shell has to do things differently from competitors there by offering something unique to customers(Ref).However the improvement of operational efficiency using the lucre does not provide a competitive advantage because the best practise established by Shell can be imitated by its competitors(Ref).Moreover it is argued that competitive advantage tends to be short-lived in the online environment because competitor can easily monitor and offer a similar offer or service(Chaffey et.al., 2000134).Therefore it becomes difficult to sustain the operational advantage. Hence strategic positioning is considered more important in this case where strategic positioning should involve a series of tailored activities to develop a product or service appeal that would offer a unique value perception (Ref). Moreover the online environment can be used to draw long lasting customer relationships (Ref).The interactive nature of the online environment can be used to build relationships (Ref). This is supported by Gronroos(1994). Buttle (19961) statement Enduring relationships with customers cannot be duplicated by competitors, and therefore provide a unique and sustainable competitive advantage.Therefore in order to explore the contribution of interactive online environment in building relationships with the consumer it is required to conceptualise the online consumer conduct and the factors influencing them.7.0Online consumer demeanorThe strategic role of s ales promotions in engaging online consumers is explored. Therefore based on the research objective it is important to have a probative understanding on online consumer behaviour and factors influencing them. Research suggests that more than 20% of consumers across several countries are acquire products online using the mesh and more than 50% of internet users in the U.S buy products and services online (Kim et al, 2009). In the U.K around 40% of internet users buy products and services online (Kim et al, 2009).Although it could be argued that there is no difference between online and traditional consumers (Constantinides, 2004). The new addition is building trust or say-so and is suggested to have a significant influence on online buying process (Ref).Therefore the factors influencing online consumer behaviour needs to be discussed based on the existing literature in order to understand their implications to the online promotions of Shell.7.1Factors Influencing consumer Behavio urBased on the earlier academic research it is inferred that there are controllable and refractory factors which influence consumer behaviour (Constantinides, 2004). The interaction of controllable and uncontrollable factors determines online decision fashioning process just as in traditional markets (Constantinides, 2004).However in this research the factors that are under the control of the E-marketer would be explored. The existing research on online consumer behaviour indicates a set of controllable factors influencing consumer behaviour (Ref)* The functional attributes of the website such as interactivity and usability.* The psychological elements intended in lowering the level of consumers uncertainty by the communication of Trust and credibility of the website.There has been considerable amount of research on the components of web experience. However there has been minimal tutelage in their integration. Therefore this research attempts to explore the contribution of these elements in obtaining a competitive advantage. Based on the research objective the online consumer behaviour is conceptualised.7.2Conceptualisation of Online Consumer behaviourThe online consumer behaviour is the key theme around which this research is based. Therefore it is jussive mood to portray the online consumer considered in this research. Based on previous academic research the online consumer is considered to be a computer user and a shopper (Koufaris, 2002).The online consumers could be separate as potential customers and reprize customers as they posses different amount of information and use different criteria to make a purchase decision (Kim et al, 2009).Although it is suggested that different promotional strategies should be used to create initial sales and to generate repeat sales (Ref). This leads to less clarity on the differences in decision making by the two groups of consumers. However the research by Kim et al (2009) shows that the value perception of the t ransactions made online are powerfully influenced by the non-monetary factors like perceived risk factor than by monetary factors like perceived price for potential consumers, in contrast the repeat customers are strongly influenced by monetary factors than non-monetary factors(Ref). Therefore it is suggested that the promotion needs to be customised for the two different groups. But the extent of customisation and its influence on the consumers need to be tested and validated in the case of Shell (Zhang, 2009).This leads to a proposition where it is important to understand and measure online consumer behaviour. A multidisciplinary approach needs to be taken as it is important to consider Information systems, marketing and physiologic perspectives to do a comprehensive analysis on online consumer behaviour (Straub and Watson 2001). There have been various attempts from academics in building models around online consumer behaviour. The key attributes identified from the research are on converting web surfers into web consumers and, reasons for not shopping online. It is interesting to see transaction cost theory being applied to understand the impact of I.T on market structure and consumer behaviour (Malone et al. 1987).Based on the frame work it is inferred that if buyer search costs are unanimous it could influence consumer behaviour (Bakos 1997).However it is important to see how effective it is in the context of online consumers. It is argued that online consumers cannot depend on all 5 senses to make purchase decisions as they are limited to product or services equal through photographs and text descriptions (Koufaris, 2002).However research shows that the representation of the product online and the web experience play a key role in driving consumer attitude towards shopping online andStrategic Role of the Sales Person for Online ConsumersStrategic Role of the Sales Person for Online ConsumersAbstract.This study aims to explore the role of online sales promotions in creating a sustainable competitive advantage for Shell. Based on the literature review and the research objective 4 propositions were developed.Shells representation of the product online plays a key role in driving consumer attitude towards shopping online and the intention to buy.The consumers perception of enjoyable online experience has a positive impact on impulse purchases leading to increase in sales for Shell.The online virtual experience created by the Shell promotion will play a major role in creating a competitive advantage.The communication of trust and credibility by the online promotions of Shell reduces uncertainty and adds perceived value to the brand.Based on the exploratory nature of the research objective depth interviews were used to provide insights into the consumer motives for engaging in the online promotional activity of Shell and how they perceive the information communicated and what are its effects on their decision making process. The infor mation captured was measured using the analytical framework in order to validate the propositions.All the 4 propositions were proved to be valid however the research faces limitations in legal injury of the sample size and the attributes covered. Therefore using this research as a base it the strategic role of online promotions and its potential for establishing a sustainable competetive advantage could be further explored with a larger sample to reach a conclusion.1 .0 IntroductionShell is a global organisation with a huge portfolio of businesses across domains. The firm has used the web as a platform to support its business through online marketing and promotions. In 2009 the shell retail department has been involved in Shell fuels campaign which highlights the quote Get the most out of every drop and the Shell retail team is interested in conducting a post implementation review of their retail promotions in 2009, as the retail team is interested in knowing, if their current reta il promotion for the Shell fuels campaign 2009 is successful in meeting its promotional objectives, as it has been investing 40,000 to 48,000 on its retail promotions. The objective of the promotion chosen is to drive online traffic to the forefront and to influence trial through portal web traffic. The implementation task is outsourced to external agencies and therefore the Shell retail promotions manager Carolyn Thomas is interested to know the perception of adoption by the external customers. Moreover the retail department does not want to cheapen the Shell brand through their promotion. The promotion which is tested in this research would be the e-vouchering promotion used in the U.K. Bowman (1997) states that 80% of sales promotion does not work in the U.K. For example It has been discussed in the academic research arena that coupon promotions are inefficient. Moreover research suggests that sales promotion is unlikely to attain sustainable competitive advantage there are excep tions to the above argument example Tesco, BA (Yeshin, 2006).However this is the case with sales promotions relative to the traditional shopping environment. The existing academic literature in online consumer behaviour suggests that, with technological advancements on the web, the online sales promotion has the potential to achieve a competitive advantage (Ref).Therefore the role of online sales promotions in obtaining a sustainable advantage is explored in the context of Shell. Furthermore the significance of the promotional activity is analysed through qualitative in-depth interviews which tries to capture the different dimensions of online consumer perceptions on sales promotions. This in turn is validated with reference to the literature review conducted in the context of this research objective.2.0 Problem DefinitionSales promotion in this context is defined as a planned and implemented marketing activity that enhances product or service appeal and changes consumer behaviour i n return for an additional benefit for a purchase or participation (Yeshin, 2006).However existing research suggests that sales promotions can either enhance or destroy brand value, it depends on how the consumer perceives the promotion. Furthermore it is also concluded that the techniques such as coupon promotions offer little in terms of brand sustenance and leads to no lasting positive change in the value of post promotion sales and could also result in damaging the existing perception of consumers on the brand(Ref).However in the case of Shell this would depend on the strategic contribution of the promotional activity implemented by Shell.Therefore it is important to research the strategic role of sales promotion and its impact on the brand image of Shell, as the brand destruction by a sales promotion of one product would have an impact on the overall brand which caters to a wider portfolio of products and services (Ref).3.0 Research Objective and ProcessThe Objective of this re search is to explore the strategic role of sales promotion in engaging online consumers and its likelihood of obtaining a sustainable advantage within Shell.The methodology chosen for this research is qualitative and would involve depth interviews because this research is exploratory and requires the understanding of consumer perceptions and their feelings towards the online promotions. The sample used for this research involves Shell mangers responsible for the implementation of the promotion as well as the potential online consumers for Shell.This would benefit the Shell retail department in using the interactive elements of the web relative to online consumers perception on its promotion and reduce the risk of value destruction and potentially establish a sustainable advantage. This study would potentially give an understanding on the perceptions of their online consumers in the U.K which is one of their major markets. However this research does face limitations due to time const raints and access to resources ,this research would be considered as a pilot and could be explored in future with more detail for Shells other major markets such as Europe, US , Africa and Middle-East with the leverage of time and resources. Moreover the validity of this research could be enhanced with more samples in the U.K.4.0 Literature ReviewThis section would literally look again at the existing academic literature on what has already been written about sales promotions and online consumer behaviour within the context of this research (Lee and Lings, 2008).The existing academic literature on sales promotions has concluded that, its less likely to achieve a sustainable advantage because it is often used by marketers as a short term measure to achieve sales targets (Ref). However there is a considerable amount of research happening in the area of online promotions which suggests that there is a potential for online promotions to establish a competitive advantage by taking advant age of the technological advancements on the web, such as the 3 dimensional and interactive features of the web, which could be used by marketers in creating perceived value to the brand and therefore contributing to the long term brand value (Ref). However there is limited research in the role of online sales promotions in establishing an online sustainable advantage because of the rapid technological developments. Therefore this research would contribute to the existing literature and also would attempt to answer Shells question on if their promotion is creating or destroying its brand value. The research propositions are developed based on the literature review and also would form the basis of an appropriate research methodology.4.1 Conceptualization of PromotionsPromotions have perhaps witnessed both dramatic growth and change over the years than any other area of marketing communications (Yeshin, 2006).Therefore it is important to review the different definitions relative to th e changing nature of promotions (Table 1).AcademicsDefinitionThe institute of sales promotions(2004)Describes, A planned and implemented marketing activity that both enhances product or service appeal and changes customer behaviour positively in return for additional benefit for purchase or participation Shimp (2000)Suggests that a promotion is any incentive used by a manufacturer to induce the trade and/or consumer to buy a brand and encourage the sales force to aggressively sell itKotler et al(1999)Defines sales promotion as Short-term incentives to encourage purchase or sale of a product or serviceSchultz, Robinson and Petrison(1992)Provide a more strategic definition of sales promotion, they suggest that Sales promotions are marketing and communication activities that change the price/value relationship of a product or service perceived by the target, thereby (1)generating immediate sales and (2)altering the long term brand valueThe Direct marketing association(1994)Similarly ar gues that Sales promotion activities that communicate distinctive brand attributes and contribute to the brand development and reinforcement of brand value are consumer franchise building promotionsAlan Toop(1994)Writing in marketing suggests Sales promotion conducts an interactive relationship with its audience. It invites participation, invites consumers to enter ,to apply, to collectTable 1 Sales promotion definitionsTherefore the above contradictions in the definitions, leads to a confusion in the role and purpose of sales promotions, and therefore its been argued seriously in the academic arena, and concluded that the techniques offer-little in the way of brand sustenance, and leads to no lasting positive change in the value of post promotion sales, and as a consequence could result in damage to the existing brand perceptions (Ehrenberg et al, 1991 Ehrenberg, 1994 Jones, 1990 Yeshin, 2006).However this would depend on the strategic contribution of the promotional activity imple mented by Shell (Ref).Moreover its been pointed by Gupta et al (1997) that empirical research in the area of sales promotions has been focusing on the short term effects of sales promotions and therefore its been used by most marketers as a tactical tool. In support Peattie and Peattie (1997) argue that the bundling of all the different types of promotions for the purpose of research and study gives a very limited view of the potential achievements of sales promotions and also has encouraged a negative perception on the impacts that promotions can potentially have on the brand. Furthermore in the following paper Peattie et al (1997) argues that most of these preconceptions are caused because of the tendency to view sales promotions as only price based and exclude the promotional activities that add value to the brand. This point is reiterated that the tendency of most researchers in this area has been to generalize sales promotions under money off and coupon promotions (Peattie, 200 2). Moreover it has been argued that much of the research on sales promotions has been conducted considering the short term effects of sales promotions and has rarely conducted any research on the more long term contribution of sales promotions such as the communication oriented impact of sales promotion on consumers (Peattie,2002).This implies that in order to make sense and obtain reliable results it is necessary to disaggregate the different sales promotional techniques into their individual components(Yeashin,2006).Therefore in this research the long term contribution of Shells E-vouchering promotion is evaluated. Moreover it is argued that generalising all the promotions to achieve the same goals irrespective of their individual execution would imply incorrect results (Yeashin, 2006).Furthermore it is also pointed out by various authors that in order to focus on the long term impacts of sales promotions a more strategic focus is required and is illustrated by the following quot esSales promotions have come a long way from the time when it was simply a short term inducement to increase sales (Robinson and Hauri, 1995).Promotions are no longer simply short-term initiatives to lift sales, they are increasingly being used to reinforce brand values (Gay, 1997)The above definitions suggest the need for a long -term focus and the strategic application of sales promotions considering broader dimensions of the potential impacts of sales promotions (Yeshin, 2006).Therefore it is important to explore the broader strategic dimensions of Shells sales promotions in order to reach a credible conclusion on its contribution to the Shell brand.4.2Strategic dimension of sales PromotionsResearch suggests that more often sales promotion is considered as a short term-tactical tool (Yeshin, 2006).Although sales promotion is widely used to fulfil a variety of short-term objectives it often fails to recognize the strategic contribution on the long term, and it could often result i n destroying the image or value of the brand (Yeshin, 2006). In order to evaluate its long term benefits it is critical to analyse the contributions of Shells online sales promotion in reinforcing its brand image, enhancing customer loyalty and developing strong relationships with its consumers because this can strengthen its brand position(Ref). Therefore it is important to explore the role of strategy within Shells online sales promotion and its contribution to the long-term effectiveness of the brand.4.2.1Role of strategyThe strategy should provide a framework to measure and research on the type of sales promotion implemented (Head, 1998 Yeshin, 2006). Although it is suggested that sales promotions should be considered in line with the overall brand building process (Yeshin, 2006). An alternative definition by Schultz et al (1992) provides a more strategic focus on the on the consideration of the sales promotion activity.Sales promotions are marketing and communications activitie s that change the price/value relationship of a product/service perceived by the target, therefore by generating immediate sales and altering long term brand valueThe above definition is considered important because it recognizes the need for generating short term sales volume and also promotes the need to consider the long term issues related to the brand (Schultz et al, 1992 Yeshin, 2006).Therefore based on this definition the strategic significance of Shells promotions in engaging online consumers should be evaluated because this definition gives a base for evaluating the promotions of Shell by recognising the short term objective of generating sales volume whilst appreciating the long term issues relative to its brand (Schultz et al,1992).For this reason it is required to explore the impact of sales promotions and its implications to the Shell brand. In order to understand its significance to the Shell brand it is important to identify the strategic use of sales promotions (Yesh in,2006).This would benefit Shell in communicating consistent overall brand image whilst helping each individual promotion achieve its objectives by creating increased awareness(Yeshin,2006).It has been pointed that the reduction in product differentiation is one of the reasons for the increased usage of sales promotions(Yeshin,2006).Furthermore various studies suggest that similarities between brands can cause reduction in brand loyalty and is a consequence of increased usage of price oriented promotions(Ehrenberg,1993Mela et al,1997). However there are various promotions that have demonstrated the potential to enhance the brand and generate loyalty in the long-term. For example The frequent flyer schemes by airlines, Levis Flat Eric and Pepperami Fanimal(Yeshin,2006).Therefore as Lisa Campbell(1996)work in Promotions and incentives journal suggests Its not the tool we should be blaming but the users.This implies that the sales promotion tool used by Shell is not to be blamed but t he way in which it is applied. Therefore it is required to review the literature on the strategic application of sales promotions and its potential benefits.4.2.2The Strategic Application of Sales promotionsDavies (1992) and OMalley (1993) provide a contrasting view which suggests that sales promotions that are consistent with the overall marketing communications plan can enhance long term brand value and therefore could be considered strategically valuable.Similarily its been argued that sales promotions offering a rebate or discount are likely to cheapen the brand(Aaker,1991).However there are ways to apply promotions strategically and enhance the brand equity rather than destroying it(Aaker,1991). Furthermore the brand equity can be reinforced by strengthening its brand awareness and associations (Yeshin,2006).However based on the research conducted by Peattie et al (1997) it is concluded that sales promotions have the potential to1.Improve brand awareness.2.Stimulate product tri al.3.Act as a communications channel between a company and its customers.Based on the research by Peattie et al (1997) the strategic application of Shells sales promotion is identified to stimulate product trial and act as communication channel between Shell and it consumers. However its contribution to the brand depends on how the consumer perceives the promotion.Furthermore the potential reasons behind using sales promotions needs to be identified in order to understand the reason underpinning Shells Online promotions (Yeshin, 2006).Lee (2002) suggests four reasons for using sales promotions1. Reaction to competitors promotions2. Inertia This is what the firm always did3. Meeting short term-sales objectives4. Meeting long-term objectivesHowever research suggests that most sales promotions fall in the first 3 categories mainly for price based promotions (Lee, 2002).Moreover in most cases it is not used strategically but used as a panic measure. Furthermore it is suggested that sale s promotions should be used at a higher level where it is integrated with main strategy (Lee, 2002).Therefore the usage of Shells online promotions and its relationship with the overall strategy needs to be explored. In order to understand this relationship within the context of this research it is important to identify the type of sales promotion strategy used by Shell.4.2.3Type of strategiesAs sales promotion can reflect both push and pull strategies it is important to distinguish between the types of strategies that could be potentially used by Shell (Yeshin, 2006).The push strategy motivates distribution channels and encourages them to promote the product or service to the consumer, whereas the pull strategy is targeted directly towards end users to purchase products or services from the distribution channel (Yeshin, 2006). Based on the above definitions and Shells promotional objective its promotional strategy is identified as a Pull strategy.These definitions of strategy are d erived based on its intention to achieve results or goals for the firm(Craig,1983).Therefore in this case Shells choice of Pull strategy is based on its intention to drive online traffic to the forefront and increase the number of trials through its web portal. However there are multiple objectives for a firm at the corporate level and this leads to the design of different strategies to achieve different objectives at the expense of others (Craig, 1983 Shendel and Patton, 1978).Therefore this research tries to focus on the chosen sales promotion and its objective and does not consider the impacts of other objectives and strategies of the firm.Furthermore many research scholars have suggested that sales promotion is unlikely to attain sustainable competitive advantage (Yeshin, 2006).However there are exceptions to the above argument example Tesco club card, BA Air miles (Yeshin, 2006).Therefore the sustainability of Shells online promotions is not ruled out and therefore needs to be explored. Moreover it is important to adopt a strategic approach rather than a tactical approach, which has been the focus in most cases (Yeshin, 2006).In order to evaluate the effectiveness and sustainability of Shells retail promotions, it is necessary to consider the potential impacts of sales promotion on the consumer.Raghubir et al (2004) argues that promotions may have three forms of impact on the consumer1. Economic The monetary benefits derived from the type of the promotional offer and its potential decrease in transaction time that lead to a simplified purchase decision.2. Informational It is about communicating the information about a brand which is unknown to the consumer.3. Emotional The feelings or emotions that are aroused as consequence of the exposure to the promotion.Therefore the impact of Shells online promotions in the above three forms would be explored in order to evaluate its contribution t5.0 Measuring the effectiveness of promotionsAlthough sales promotion is argued to be a marketing technique which is beneficial in the short-term. It is important to measure its long term-effectiveness in order to analyse the strategic significance of the activity. As cook (1995) argues it is important to consider the objective of the promotion before evaluation of the promotion in order to choose the best approach. Therefore in this case the post implementation review is done and its long-term effectiveness is considered.Based on the literature review and Yeshin (2006) suggestion the following factors could be used to measure the long term effectiveness of sales promotions1. Does the promotional concept fit well with the brand and expected consumer perceptions?2. Is the promotion perceived to be credible by the consumers?3. Are there any constraints for the consumer to overcome in responding to the promotion?4. Is the recommended promotion most likely to achieve the desired objectives?5. Is the promotion perceived as a value addition in satisfying co nsumer needs?In order to explore the long-term effectiveness and its contribution to obtain an online competitive advantage for Shell the existing literature on competitive advantage is explored relative to Shells online promotions.6.0 Competitive AdvantageThe information revolution has given firms new ways to outperform their rivals and therefore allows the firm to create a competitive advantage(Ref).This conceptualisation of competitive advantage is important because it is relative to the research objective which explores how the information presented by the sales promotion could contribute to the overall brand.The research by Porter and Miller suggest that it is hard to underestimate the strategic significance of the latest developments in information technology. It demonstrates that Information technology has been transforming the nature of products, processes, companies, industries and even competition itself (Porter and Miller,1985).Although it has been treated as a support se rvice it is suggested that organisations should understand that on a broader perspective, as Information technology could create sustainable competitive advantage (Porter and miller,1985).Therefore with ongoing developments on the web, the strategic significance of Shells online promotions needs to be explored in order to identify its potential in obtaining an online competitive advantage.Information technology should be perceived as medium that can process the information created by businesses and use them through the various technologies that are linked in order to create a competitive advantage (Ref).Therefore it is relevant to discuss the reasons that underpin the strategic significance of Information technology and its impacts on business in order to understand how it could be used to create an online competitive advantage for Shell (Ref).Research suggests that information technology changes the way in which products and services are created and the information provided in orde r to create value to the consumers (Ref).In the case of Shell the value created is determined by the amount the consumers are willing to pay for their product or service (Ref).Therefore the Shell retail promotions could be considered profitable if the value it creates through the implementation of its promotion exceeds the cost of performing the promotional activity(Ref).This implies that Shell should either perform the promotional activity at a lesser cost or should create perceived value that leads to a premium price(Ref).6.1Sustainable Competitive AdvantageThe online environment is changing the existing roles of competition and strategy because there is a pressure on the average profitability of the industry which is created by the internet (Porter, 1991).Therefore with competition from firms such as B.P, ESSO and Total it is important for Shell to set itself apart from the others (Ref). This could be possible only by achieving a sustainable competitive advantage (Ref).However th is could be achieved either by operational effectiveness or strategic positioning(Ref).In the case of operational effectiveness it is required for Shell to do things better than competitors where as in the case of strategic positioning Shell has to do things differently from competitors there by offering something unique to customers(Ref).However the improvement of operational efficiency using the internet does not provide a competitive advantage because the best practise established by Shell can be imitated by its competitors(Ref).Moreover it is argued that competitive advantage tends to be short-lived in the online environment because competitor can easily monitor and offer a similar offer or service(Chaffey et.al., 2000134).Therefore it becomes difficult to sustain the operational advantage. Hence strategic positioning is considered more important in this case where strategic positioning should involve a series of tailored activities to develop a product or service appeal that wo uld offer a unique value perception (Ref). Moreover the online environment can be used to draw long lasting customer relationships (Ref).The interactive nature of the online environment can be used to build relationships (Ref). This is supported by Gronroos(1994). Buttle (19961) statement Enduring relationships with customers cannot be duplicated by competitors, and therefore provide a unique and sustainable competitive advantage.Therefore in order to explore the contribution of interactive online environment in building relationships with the consumer it is required to conceptualise the online consumer behaviour and the factors influencing them.7.0Online consumer BehaviourThe strategic role of sales promotions in engaging online consumers is explored. Therefore based on the research objective it is important to have a significant understanding on online consumer behaviour and factors influencing them. Research suggests that more than 20% of consumers across several countries are bu ying products online using the internet and more than 50% of internet users in the U.S buy products and services online (Kim et al, 2009). In the U.K around 40% of internet users buy products and services online (Kim et al, 2009).Although it could be argued that there is no difference between online and traditional consumers (Constantinides, 2004). The new addition is building trust or confidence and is suggested to have a significant influence on online buying process (Ref).Therefore the factors influencing online consumer behaviour needs to be discussed based on the existing literature in order to understand their implications to the online promotions of Shell.7.1Factors Influencing consumer BehaviourBased on the previous academic research it is inferred that there are controllable and uncontrollable factors which influence consumer behaviour (Constantinides, 2004). The interaction of controllable and uncontrollable factors determines online decision making process just as in trad itional markets (Constantinides, 2004).However in this research the factors that are under the control of the E-marketer would be explored. The existing research on online consumer behaviour indicates a set of controllable factors influencing consumer behaviour (Ref)* The functional attributes of the website such as interactivity and usability.* The psychological elements intended in lowering the level of consumers uncertainty by the communication of Trust and credibility of the website.There has been considerable amount of research on the components of web experience. However there has been minimal attention in their integration. Therefore this research attempts to explore the contribution of these elements in obtaining a competitive advantage. Based on the research objective the online consumer behaviour is conceptualised.7.2Conceptualisation of Online Consumer behaviourThe online consumer behaviour is the key theme around which this research is based. Therefore it is imperative t o introduce the online consumer considered in this research. Based on previous academic research the online consumer is considered to be a computer user and a shopper (Koufaris, 2002).The online consumers could be classified as potential customers and repeat customers as they posses different amount of information and use different criteria to make a purchase decision (Kim et al, 2009).Although it is suggested that different promotional strategies should be used to create initial sales and to generate repeat sales (Ref). This leads to less clarity on the differences in decision making by the two groups of consumers. However the research by Kim et al (2009) shows that the value perception of the transactions made online are strongly influenced by the non-monetary factors like perceived risk factor than by monetary factors like perceived price for potential consumers, in contrast the repeat customers are strongly influenced by monetary factors than non-monetary factors(Ref). Therefore it is suggested that the promotion needs to be customised for the two different groups. But the extent of customisation and its influence on the consumers need to be tested and validated in the case of Shell (Zhang, 2009).This leads to a proposition where it is important to understand and measure online consumer behaviour. A multidisciplinary approach needs to be taken as it is important to consider Information systems, marketing and physiological perspectives to do a comprehensive analysis on online consumer behaviour (Straub and Watson 2001). There have been various attempts from academics in building models around online consumer behaviour. The key attributes identified from the research are on converting web surfers into web consumers and, reasons for not shopping online. It is interesting to see transaction cost theory being applied to understand the impact of I.T on market structure and consumer behaviour (Malone et al. 1987).Based on the frame work it is inferred that if buy er search costs are substantial it could influence consumer behaviour (Bakos 1997).However it is important to see how effective it is in the context of online consumers. It is argued that online consumers cannot depend on all 5 senses to make purchase decisions as they are limited to product or services represented through photographs and text descriptions (Koufaris, 2002).However research shows that the representation of the product online and the web experience play a key role in driving consumer attitude towards shopping online and