monopoly to its advantage, the Asset Review Council has regulated the selling of wines to its advantage without realizing that this would beinverse to their objective of customer centricity since the customers won’t be left witha wide selection of wines and won’t be able to enjoy competitiveprices.conduct marketing campaigns to promote the sales of domestic wines. 3)If this is not given due importance, LCBO won’t be able to use the high sales potential of domestic wines to its advantage which has no tax levy as opposed to imported wines, the later wouldbe carrying taxes and duties such as import duties.M2 – Underutilized customer informationExistence of a conventional model of retailing which focused on products and product assortmentsThe result of increasing competition turned LCBO lessrelevant to its customers.Inability to use digital analytics to consolidate customer information such as location, gender, age group, preferences, 1)Digital analytics can help LCBO understand the demographics and metrics of different product offerings. This vital informationcould be used by them in forming new product mixes and creating strategies forimproving its business. 2)Grocery stores wouldtake the advantage of
LCBO DIAGNOSIS21source of purchase.this crucial customer information and utilize it to enhance their sales. This would gradually lead to losing customers for LCBO and a fall in revenue.M3 – Absence of a hybrid channel of marketingDiversification of LCBO into the wholesale business.Catering to the newgroup of customers called the grocersLCBO catered to restaurant chains and The Beer Store using its traditional business-to-business model which were an integral part of the marketing channel.LCBO’s transactions included a wide majority of business-to-consumer transactions before diversifying into the wholesale market.1)A hybrid channel would facilitate sales in both retail and wholesale markets. A retail transaction involves LCBO’s dealing with the end consumer whereas a wholesale transactionwould require it to actas an intermediary channel and this trendwas long laid off by the businesses in general.2)If due importance is not given to a hybrid channel, LCBO won’t be able to generate potential revenue from the grocers. A wholesale business requires selling of products to the retailers in bulk and this would require a separate channel, the strategies used for selling to regular
LCBO DIAGNOSIS22consumers cannot be utilized here.M4M5Table 3B – Development of What Need to Be Addressed Statements
LCBO DIAGNOSISImplications if not AddressedOpportunities if AddressedThe conventional model would make it difficult for LCBO to understand customer engagements, interactions and behaviours.