Internet Marketing 

KFS of Web Contribution to Sales Generation and Value

The previous article Vol.65 – Web Equity Valuation in Japan – Model and Ranking outlined the Web Equity valuation model and the results of the ranking by Japan Brand Strategy based on a special article published in a recent Japanese business weekly magazine.

Based on the same article, the author would like to introduce what kind of corporate websites are raked high in “Sales Value”, one of the two constituents of Web Equity, together with possible 4 KFS (key factors for success) for high “Sales Value” in this article.

1. What is “Sales Value”? How is it calculated?

“Sales Value” is how much the website contributed to sales generation among variety of media and communication channels that consumers access and refer in purchasing products and services.

This is calculated through the following 4 steps.

(1) Calculate what percentage of customers who purchased products and/or services used web site in their decision making.

(2) Calculate the degree (what percentage) the purchaser used the web site in their decision making.

(3) Multiply (1) and (2) to calculate effect of web site = average amount of information the purchaser used the web site in their decision making.

(4) Multiply (3) and marginal profit to calculate Sales Value.

2. Which company websites are ranked high up in Sales Value ranking?

It is mostly large companies of strong brands as the following.

Sales Value Ranking / Web Equity Ranking/ Company/Brand / Sales Value (million yen)

1 / 1 All Nippon Airways / 89,692

2 / 2 / Panasonic / 70,769

3 / 3 / Toyota / 62,360

4 / 5 / Honda / 46,739

5 / 6 / Nissan / 44,670

6 / 4 / NTT / DoCoMo / 40,679

7 / 12 / Japan Railway Tokai / 40,086

8 / 13 / Nomura Securities / 38,816

9 / 6 / Japan Travel Bureau / 38,166

10 / 11 / Sony / 37,410

3. What are some possible KFS for high Sales Value?

1) Integrated Marketing Communication (IMC)

Integrated Marketing Communication (IMC) in which strategically integrating all possible marketing communication tools and media, offline and offline, contributes to high Sales Value because it increases touch points with the customers.

In general, IMC is advanced in western countries, the U.S. in particular such as Fedex.On the other hand, Japan is far behind because departments in companies that are responsible for traditional offline media and the Internet are usually separated.

Many companies ranked high up in Sales Value rankings are innovators in IMC in Japan.

2) Web contents with which consumers can enjoy virtual experience online

Web contents with which consumers can enjoy virtual experience online of products and services contribute to high Sales Value. This is because it is a good approach to make consumers feel and understand the benefit of the products and services.

All Nippon Airways web content in which online consumers share their experiences of travelling is a good example. This web content allows cabin attendants and travelers share guides, know-how and experiences of their trips/travels, which helps provoke demand of travelling.

The next good example of virtual experience web content is Panasonic’s LED content. This allows consumers to find places in their homes where they can replace current lights with LED and make simulation of energy saving. The result of the simulation can be posted on Twitter and Facebook to share with online friends.

Another good example is Nissan’s content called User Voice in which experiences of Nissan car owners is shared. Voices and information can be displayed by types of cars. Voices and information can also be carefully selected by setting requirements such as gender, age, number of car users and usage with a search function.

3) Proactive use of social media

Proactive use of social media also contributes to high Sales Value ranking because it promotes web users share information.

Companies such as All Nippon Airways (ANA) have been leveraging SNS. Companies such as ANA and Nissan already have started leveraging Facebook.

UniQlo is the company that is often mentioned as innovator in leveraging Facebook in Japan. It is ranked 20 in Sales Value ranking which is unexpected to the author who thought it would be higher up in the ranking; however, considering the business size with top 10 companies, it can be said that UniQlo’s website is highly contributing to generating sales.

4. What is the case of Sales Value #1 website?

1) Overview of All Nippon Airways (ANA) website

All Nippon Airways (ANA) is ranked #1 for Sales Value and Web Equity. Its Web Equity is 107,877 million yen with Sales Value of 89,692 million yen and Information Value of 18,185 million yen.

The company has successfully developed its website as an important sales channel. Its website now generates sales of approximately 400 billion yen per year with its 70% of its air flight business generated online.

2) Online initiatives

The next challenge for ANA is strengthening online communication leveraging the Internet. The following are some of the ongoing initiatives to achieve such objective.

(1) Facebook Page

The company opened its official Facebook Page this January. Information and photos of cabin attendants, trips and events unique to ANA are posted one after another. People who clicked “Like it!” totaled over 170,000 as of middle of August.

Immediate after the March 11 Japan disaster, considering victims, information related to the Japan disaster was posted such as information of relief services to Tohoku, re-opening of Sendai Airport and raising money for victims leveraging frequent flyer programme.

(2) SNS content

SNS called Social Sky Park opened in June targeting members of ANA Frequent Flyer Club. When members post on Twitter and Facebook regarding varieties of proposed topics, the post is also shared on the SNS. The content is of user generation which is encouraged to be easily shared online.

(3) Globalization

ANA started globalization of their web initiative to provoke demand of overseas market. The company first rolled its website in multiple languages and currencies to allow worldwide customer making reservation and payments online.

However, ANA’s awareness and brand is still rather low overseas. Therefore, the company’s next challenge is raising its awareness and brand overseas leveraging such media as Facebook.

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