RCA: Surfing the new channels

Business issue
For startup companies and online boutiques, the Web offers nearly limitless opportunities for retail success. But for established businesses, built on traditional sales channels and well-known brands, the Internet can just as easily provide opportunities for disaster. For electronics – industry icon RCA, the launch of the rca.com Web site created an entirely new source of income – and an entirely new set of headaches: how could they develop new channel sales without cannibalising traditional retail sales?

When RCA first called on IBM Global Services, they had a simple concern: the fastest-selling products at rca.com – HDTV, LYRA MP3 players, and e-books – were not the ones that RCA was most commonly identified with in traditional retail channels.

Strategy
Consultant Pete Martinez analysed the situation, and realised that this "problem" was, in fact, a benefit – one that could be the key to positioning rca.com in the company's overall sales strategy. Rather then competing with each other, rca.com and traditional RCA retail complemented each other, targeting specific audiences with specific products.

Martinez helped RCA recognise this synergy and develop it even further, helping to build and clarify the role of rca.com, giving it room to grow without interfering with other company initiatives.

Results
As a result, RCA has reached out to a new audience, creating a new distribution channel designed to succeed in the new economy.