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Chapter 3

ECO 211 Chapter 3: Case 3 Blue Tomato


Department
Economics
Course Code
ECO 211
Professor
Lorca Maria
Chapter
3

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MKT 320: Retailing
4/6/15
Case #3: Blue Tomato (Internationalization of a Multichannel Retailer)
1. What strengths do the different distribution channels have from the company’s
perspective?
They were very successful with its expansion to different channels. When
they added in an online channel that provided potential customers with the
product finder they were able to increase sales by 35% in just the first
year. Then they added in their catalogs and test stores in ski resorts, which
added more and more new, and potential customers.
2. What synergies has Blue Tomato created across different channels? What
additional actions might it take to become an omni-channel retailer?
Blue Tomato has kiosks located inside their brick and mortar stores
allowing customers to look up personalized information and special offers
in other stores and online. They also give customers the opportunity to go
on their social media and see how others are enjoying their Blue Tomato
product. Another channel they could try selling their products would be at
snowboarding, surfing or skiing tournaments. They could sponsor
contestants, increase their brand awareness and potentially gain new
customers.
3. What key challenges remain for Blue Tomato in its efforts to coordinate these
different channels?
The biggest challenge for Blue Tomato is keeping all of its channels
consistent. However, they are doing a good job at achieving this. Blue
Tomato aims to keep prices consistent across all channels and if a
customer finds that they differ then they will be charged the lowest price
offered,
4. Which challenges might Blue Tomato face as it expands its business activities
internationally?
With each country that Blue Tomato expands to they face different legal
conditions, logistics costs, economic power, tax rates and cultural
difference. Currently, Blue Tomato is only present internationally through
their website and catalogs. Another challenge they might face is the
financial and personnel challenges of building brick and mortar stores in
these countries.
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