A Look at fye.com

top fixes & ideas for the website

Topics Include:

Ideas• Use of ATG• Sales & Marketing Ideas

Fixes & Goals We Can Meet• Fulfillment• Games• DVDs

Use of ATG

• Targeted Content Slots across site• Scenarios (Offers on products, shipping, etc.)

• Targeted e-mails (targeted merch & mktg on order confirmations as well)

• Purchase, search, and browse tracking

• Retain above & profile info for CRM

Sales & Marketing Ideas

• Online Ad Swaps (DVD Talk, AMG, Artist and label sites, portals, etc.)

• Affiliate program (corporate &/or individual: Clear Channel, Playboy, Fashion Mall, etc.)

• Partnerships (Gap, PacSun, Delias, Rolling Stone, Billboard, etc.)

• Value Adds around product (exclusive multi-media, ETWs, GWPs)

• New product lines ( Electronics, Storage Units, Imports, etc.) – once fulfillment has improved

Sales & Marketing Ideas

• Pre-order promos using Scenario Offers & Value Adds• Register & Save Scenario• Tours & In-stores Area• More cross-promotions with stores & web• Newsletter redesign – test generic & targeted e-mails• Creative Bundling• Midline Sales with advertising (online & in-stores)

Fulfillment

• #1 Fix needed to move forward with particular promotions, new product lines, DVD & game sales

• Fix would decrease CS Issues• Fix would increase actual sales/revenue• Any projects on hold could move forward (i.e.

electronics, storage units, imports, etc.)• We could advertise, market, and implement

scenarios without worry of aggravating or increasing fulfillment issues

Games• Currently we do not have a strong vendor/distributor committed to games, so a massive portion of

our titles are out of stock. Our band-aid fix was to feature as many pre-orders as possible; they would not be listed as out of stock. However, our poor vendor/distributor situation caused an issue with pre-orders. The day a title streets, it goes out of stock and stays that way. There’s no reason we should go out of stock the day brand new titles street. Since titles are sure to be out of stock on release date, we’re forced to remove them from promoted spots prior to street date. Hence, we are consistently seeing a decreasing pool of products to feature in games – even the most popular platforms and titles.

 • A few years ago, even with a flawed game distributor/vendor, we worked closely with them to get

and keep stock of key titles. Even with this flawed vendor, we managed to rake in some decent sales for games (sometimes 70 orders/week on hot titles). Imagine if we could keep titles in stock and promote them, we’d be able to increase sales and fulfill titles, all while enjoying an excellent margin. EXAMPLE: 70 orders a week at $50/title – that’s $3500 for one hot title. Multiply that by all hot game titles we sell and we’ll get sales on a roll before you know it. In time, the price tag on fixing fulfillment wouldn’t seem so large if these were the kinds of sales numbers we were pulling in.

 • PLUS games prices are fixed – everyone’s got to sell at the same price. All we have to do to

compete is be in the game with availability and fulfillment. Just fixing fulfillment would get us more than half way there. We have an excellent source of income at our fingertips.

 • Currently our top selling game sells less than 10 units so it seems there isn’t business justification

for fixing fulfillment/getting a new vendor. However, if we get back in the games game with a better vendor and we get the word out with targeted emails and online message boarding to gamers, we’ll be good to go. We will reach gamers more likely online than music and movie lovers. Once we start performing & offering what people want, word will get out. Perhaps it’s expensive to fix fulfillment, but the loss of web sales in games has also been huge and a detriment to the company. We are here to help people discover entertainment, so let’s make them see what we’ve got!   

Game Sales Comparison(Past)

 twec.com Games Top Sellers list (week of 10/23/00 to 10/29/00)

 Quantity            Title                                                      Income73                     PS2 systems (we sold consoles)        $23,351.2430                     Shenmue (DRM)                                    $1375.7327                     Dino Crisis (DRM)                                 $509.7623                     Jet Grind (DRM)                                     $1057.3523                     Mask (N64)                                           $1377.2421                     Resident Evil 3 (DRM)                           $396.4819                     NBA 2K1 (DRM)                                    $870.7217                     Dreamcast system                                $2549.8316                     Resident Evil 2 (DRM)                           $302.0813                     Final Fantasy IX (PSX)                          $531.44

 Another week, 09/08/00 to 09/14/00, our top game seller raked in 62 orders, for a total of

$2,782.56. (Those new titles at the time cost about five dollars less than the current standard cost.)

Game Sales Comparison(Current)

fye.com Games Top Sellers looks like this (3/31 – 4/6)

Quantity Title Income

4 SOCOM: US Navy Seals $239.96

2 Gran Turismo 3 $39.96

1 Final Fantasy VII $14.99

1 Ape Escape $14.99

1 Dragon Warrior I & II $19.99

1 Tekken Tag Tournament $19.99

1 Golden Sun $19.99

1 Frequency $29.99

1 Jeremy McGrath SuperX $19.99

Total $419.85

DVDs

• Fix Fulfillment issues

• Prevent pre-order cancellations• Fix movie data quality issues (see page 11)

• Do online advertising (DVD Talk, etc.)

• More creative offers

• More targeted e-mail advertising

• More strategic pricing

• See sales #s on next pages

DVD Sales Comparison twec.com DVD Top Sellers list (week of 9/25/00 to 10/01/00)

 

Quantity            Title                                          Income350                   Gladiator          $6329.10141                   Toy Story Double Pack                 $4072.07111                   Patriot                                $2206.68104                   Perfect Storm                                $1856.5298                     Chicken Run                                   $1954.4676                     Braveheart                        $1358.8876                     American Beauty                            $1510.8872                     Mission Impossible 2                     $1506.3671                    James Bond: V3                      $6887.4870                    Sopranos:S1                     $5101.60

On fye.com Sopranos: S3 sold 31 units on street week totaling $2,246.26.

Above note that we sold 70 units of Sopranos:S1 as a pre-order, released mid-December.

 

DVD Sales Comparison

fye.com DVD Top Sellers list (week of 3/31/03 – 4/6/03) 

Quantity            Title                                          Income31                    Mulan          $929.6916                    Friends: 3rd Season        $511.3611                   Firestarter                                 $98.5611                    Jackass                                $219.5611                     Friends: Best of …S.2                   $302.0610                    Beatles Anthology                       $519.6010                     Friends: Best of…S.1                     $274.6010                     Red Dragon                       $209.6010                    Harry Potter                      $199.6010                    WWE: No Way Out           $139.60

 

DVD Sales Comparison twec.com DVD Pre-Sells (10/09/00 report)

Below list represents pre-sale numbers on 10/09/00 for top DVD October & November releases.

 Quantity            Title                                          Income

521                   Toy Story Double Pack   $15,046.47485                   Gladiator             $8,742.90421                   Patriot                            $8,357.82287                   Perfect Storm                             $5,124.62275                   James Bond: V3                   $26,917.00241                   American Beauty                         $4,800.41212 U-571

$4,242.55201                   Mission Impossible 2                  $4,168.00141                   Chicken Run                                $2,821.74112                   Fantasia                           $5,734.89

 

Movie Data Quality Issues

• Mis-matched UPC issue

• Dysfunctional or lacking content feeds

• Pricing Issues

• Search Result/Release Date Issue

• Cover Art Issues • Moratorium title filters – improved w/B&T filters

• Mismatched format issue – resolved now