How it works: NabiscoGifts.com
Leveraging its brand, but steering clear of channel conflict, NabiscoGifts.com hopes to have found the sweet spot for online marketing.
Nabisco's gift franchise won't ever pull the kinds of revenues its Oreo and Fig Newton factories do. So senior management was understandably reluctant to commit large resources to the company's Web venture. Solution: outsourcing. This approach keeps a lid on costs, lets Nabisco maintain control over quality, and uses the company's extensive network of distributors to market the products.
- Compare costs: Nabisco did a cost analysis and realized it would be more cost effectiveâ€"and much quickerâ€"for the company to farm out the commerce front-end than to build an in-house solution. The company turned to Digital River, which provides proven security, better bandwidth and redundancy, and the kind of customer and sales analysis that would have taken Nabisco years to develop in-house.
- Integrate partners: When a customer selects a gift basket from NabiscoGifts, Digital River pipes the order directly to the Jay Group, its fulfillment house. The Jay Group provides toll-free customer service, 24/7 operations, and same-day shipment. Nabisco irons out glitches between its partners with a weekly conference call.
- Involve retailers: Major retailers threaten divorce whenever their suppliers make noises about moving to the Web. Nabisco's solution is to offer its partners a piece of the action. Retailers who want to sell Nabisco's gifts need only include an icon at their sites. Customers who click are whisked to the Nabisco site at Digital River. Retailers get a transaction fee but incur no costs.
