Case Study: How Does Ambidal Inc. Implement their system into the Mall Advertising Industry

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Case Study How Does Ambidal Inc. Implement their
system into the Mall Advertising Industry
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Mall Advertising Industry

• North Americans spend nearly 6 trillion a year,
  most of it on consumer goods
• North Americans spend more on shoes, jewelry, and
  watches (80 billion) than on education (65
  billion)
• Almost 70 of North Americans visit malls each
  week
• An average of 50,000 to 30 million people, visit
  a particular mall
• According to the Retail Council of Canada, about
  35 of all retail purchases are impulse buys

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Ambidal Inc.

• Digital Point of Sale Advertising Medium (DPOSAM)
• Help Medium and Small Size Retailers gain more
  awareness in malls
• Product Line Plasma Screens Kiosks
• Impact of Ambidal Customer Service Platform
  (ACSP)

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Primary Target Market

• Ambidal Inc. focuses on the Retail Advertising
  Industry, specifically medium and large sized
  retailers within malls.
• The American Retail Industry spent 13.5 billion
  dollars (US) on advertising in 2002
• Advertising Market, the total advertising
  expenditure was about 2.77 Billion Dollars (CDN)
  in Ontario in 2001
• The advertising and related services industry
  earned revenues of 5.1 billion, up by 5.9
  from 2000

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Top 10 Advertisers in USA
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Potential Target Market

• Retail Industry
• Telecommunications
• Financial Services
• Restaurants
• Automotive
• Airline travel, hotels and resorts
• Movies and Media

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Competition - Direct Competition

• DAN (Digital Advertising Network) based in
  Montreal, Canada.
• A national network of satellite fed, digital
  screens advertising to the food courts of
  Canadas premier shopping malls
• Secured contracts with real estate companies such
  as Cadillac Fairview, Ivanhoe Cambridge, 20-Vic
  Management, Oxford Properties, Iberville
  Developments and West Edmonton Mall.
• Targets only 40 of the shoppers in malls, who
  come to the food-court.
• Has proved that Point of Sale Advertising through
  digital means is a working business model, by
  expanding into 68 malls in 4 years (as of 2003).

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Indirect Competition

• Any type of advertising such as television,
  radio, newspapers and Internet used by potential
  clients

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Competitive Advantage

• Competitive pricing strategy.
• ASCP covers a large percentage of customers in
  the mall (90).
• Targeted advertising. focuses on customers when
  they are in a buying mode.
• Low failure points in the system.
• Quick turn around time.
• Low maintenance cost.
• High audience captivity.
• System is capable of showing advertisements in
  the form of static slides or real-time content.
• Provides full motion, tele-visual media in vivid,
  high resolution color.

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Architecture
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SWOT - Strengths

• Strategically located Plasma screens to
  accommodate maximum exposure.
• Implement changes in the clients advertisements
  within hours.
• Flexible advertisement campaigns to best suite
  the clients needs.
• Provisions for seasonal, yearly, monthly,
  bi-weekly and weekly advertising contracts as
  well as short-term special advertisement slots.
• Services are targeted heavily towards impulse
  buyers.
• Wide market potential.

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SWOT - Weaknesses

• Initial investments and costs are an obstacle.
• Currently securing Board of Advisors.
• Need to be in several malls in order to attract
  big clients such as The Hudson Bay Company

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SWOT - Opportunities

• DPOSAM has not been exploited to its full
  potential.
• Small stores in large malls do not get proper
  exposure.
• DPOSAM has not been implemented in stand-alone
  retailers such as Wal-Mart, Loblaws, Loeb,
  Canadian Tire, etc.
• Shoppers lack full knowledge on all the sales and
  events in mall.
• Small malls do not have a complete solution to
  collaborate all their tenants on a single
  advertising medium.
• Multi-floor retailers in malls do not have sound
  solutions for promoting all their sales within
  the mall premises.

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SWOT - Threats

• Competitors can copy the product and service
  easily.
• Economic recessions might tighten the potential
  clients advertising budgets forcing them to deny
  the new form of advertising medium.
• Competitors can take advantage of their
  well-established networks and contacts to make
  their service successful.

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Alternatives

• 1 Securing contracts with mall owners, followed
  by implementation of the system and free trial
  advertising for initial retailers
• 2 Surveying retailers, followed by securing
  contracts with mall owners and retail owners.
• 3 Implementing the ACSP system once all the
  time slots have been sold.

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Implementation

• Alternative 1
• Having free trial period builds good client
  relationship.
• Allows for other retailers to see the impact of
  the ACSP system on the shoppers.
• Attracts other retailers.

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Impact of the Case Study

• Post pone the launch of the Self Service Kiosks
  until further research