Hey Gang!
Musicland announced plans to get "online". A copy is below...anyone willing to "wager" who their "fulfillment" partner is?
GO VMIX GO !
Monday June 21, 2:18 pm Eastern Time
Company Press Release
Musicland 'Got Dot'
Nation's Leading Entertainment Software Retailer Launches E-Commerce Business; More Than 600,000 Replay Members Integrated into Site Database
MINNEAPOLIS--(BUSINESS WIRE)--June 21, 1999-- Musicland Stores Corporation (NYSE:MLG - news) today announced that the company's e-commerce business will officially launch on Wednesday, June 23. The company's Web sites will mirror its four retail chains: SamGoody.com (SM); Suncoast.com (SM); MediaPlay.com (SM); and OnCue.com (SM).
A key feature of the launch is the integration of the company's ''Replay (R)'' program members, now more than 600,000 strong, into the Web site database. These members will not only have the opportunity to access purchase point totals online, but also earn bonus points for their online purchases.
''Our sites will be open for business, offering a complete selection of music, video, and related products with 'Clickety-Split (SM)' ease of ordering,'' chairman and chief executive officer, Jack W. Eugster, said.
''As the company's newest retailing concept, our Web sites have been designed to attract a new Internet-oriented customer base as well as to provide additional ease of shopping to our existing customers,'' Eugster said. ''Our unique partnerships with companies with strong consumer draw, such as Comedy Central and Pepsi, combined with the in-store and external promotion of our sites, are targeted to establish our e-commerce business as a complement to our store base.''
The launch will be supported by a ''We Got Dot (SM)'' integrated advertising and marketing campaign which breaks June 23. It will use national newspapers, magazines, in-store signing and Web site banner advertising including Yahoo! (R), etonline.com (TM), eonline.com (TM), espn.com (TM) and abcnews.com (TM). Anchoring the advertising campaign is a national cable network advertising and promotional program for SamGoody.com featuring the company's own e-commerce mascot. The sites also will be highlighted in existing company advertising totaling more than $65 million annually.
Musicland's e-commerce orders will be fulfilled from its distribution center in Franklin, Indiana, where the company already sources and stocks the merchandise for its stores. The capabilities of the distribution center will allow the company to ship online orders directly to customers, thus avoiding significant third-party fulfillment costs.
''We expect that using our existing resources for e-commerce will lead to lower product purchasing, handling, sales and marketing costs, thus shortening the time to build a profitable online business,'' said Eugster.
All four sites (SamGoody.com, Suncoast.com, MediaPlay.com and OnCue.com) will offer a diverse selection of merchandise frequently cross-merchandised around entertainment personalities and themes. A full line of music and video (VHS and DVD) complemented by selected licensed apparel, electronics, accessories, toys, sheet music, entertainment books, video games and computer software at prices competitive with those of other on-line retailers, together with many special promotional offers, will be available June 23 to Musicland's customers.
The company also operates requestline.com (SM) which receives more than 10,000 page views per day. The site combines innovative and experimental ''pop culture'' editorial insight and other entertainment features of a traditional fanzine with reproduced segments of the company's Request (R) Magazine.
Musicland's e-commerce system infrastructure and site design was developed in close partnership with Ulysses Telemedia Network, a professional services company focused on advanced Internet technologies and electronic commerce.
To strengthen site performance, the sites run on Sun Microsystems (NASDAQ:SUNW - news) equipment and are based on Oracle (NASDAQ:ORCL - news) and IBM (NYSE:IBM - news) net.commerce storefront software. The system includes custom enhancements in such key areas as product search, product associations, merchandising, data management and e-mail processing. Frontier Global Center will provide Web site hosting services.
Musicland's product databases have been augmented with music and movie data from AMG (All Media Guide) to provide customers with information including album liner notes, track listings, product reviews, cover art and more. In addition, ENSO Audio Imaging will provide music and video sampling services for the sites.
As to the future, Karl Sowa, managing director of the Musicland E-Commerce Group, said, ''By leveraging Musicland's existing information systems, distribution system and advertising plans, among other resources, we have been able to build an infrastructure that will support today's business and innovative additions for ongoing growth.''
Based in Minneapolis, Musicland Stores Corporation is the leading specialty retailer of home-entertainment software products in the United States. As of March 31, 1999, the company operated 1,327 retail stores in 49 states, Puerto Rico and the Virgin Islands under the names Sam Goody, Suncoast Motion Picture Company, Media Play and On Cue and five Web sites including: SamGoody.com, Suncoast.com, MediaPlay.com, OnCue.com and Requestline.com. For additional information on Musicland Stores Corporation, visit the company's investor relations Web site at musicland.com.
Forward-looking statements in this news release, if any, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by the forward-looking statements, including the impact of changing economic or business conditions, other risk factors inherent in the entertainment industry, technological issues and other factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission. |
