Shutterfly 2009 Annual Report Download - page 12

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Please find page 12 of the 2009 Shutterfly annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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Expand customer base.
We intend to expand our customer base and continue to promote the Shutterfly brand. We will leverage
existing channels, which include word-of-
mouth referrals from existing customers, print advertising, catalogs, online advertising, search
engine marketing and complementary alliances with other companies such as Sony, David’s Bridal and Delta Airlines. We’
ve also
expanded our customer base through our offerings at Target stores, including in-
store placements and ad circulars which complement our
retail sales and “print-to-Target”
offerings. The launch of our Share platform continues to expand our customer base as users create
personalized sites and share them with their friends and family.
Increase sales to existing customers.
We intend to increase both average order value and repeat orders per customer by expanding
our products and services, tailoring our offerings to encourage additional purchases for different holidays and life events and increasing
our cross-selling and up-selling activities.
Develop new lines of business.
We intend to continue to leverage our existing systems and capabilities to develop additional
adjacent product offerings. In 2008, we announced a strategic relationship with CK Media Scrapbooking, the industry’
s largest print
publisher, and the introduction of two new designer scrapbooks. We increased our involvement in sponsorship and advertising
initiatives. Companies such as Sony, ABC, AT&T, Universal Music and Proctor & Gamble now advertise on our website. And we also
intend to expand on our commercial print initiative. During 2008, we entered into a strategic relationship with Group O, a leading
provider of marketing services, to provide commercial print services. We intend to continue to incubate and grow this initiative during
2009.
International expansion.
In future years, we intend to develop additional business opportunities through international expansion,
targeting consumers in key geographies where digital camera penetration is high and where Internet usage and e-
commerce are
widespread.
Products and Services
Using the Shutterfly service is easy, convenient and fun. Our website is designed to be simple, uncluttered and inviting, and we work
continuously to enhance the customer experience of the website, while also improving ease of use. If consumers decide to either upload pictures
or purchase products, they register on the website and begin the following process:
Upload. Customers can upload digital photos from their computer to our website using our Flash-
based uploader that enables
pictures to be uploaded in the background while they continue to browse through the Shutterfly site, or use Shutterfly Studio, our photo
organization software. We also make it easy to upload from other popular photo software including Adobe Photoshop Elements, Apple
iPhoto, and Google Picasa. There are no limits to photo file sizes and the upload processes are accelerated by multi-
threading, which
enables photos to be uploaded simultaneously. Unlike some competitive services, we do not compress image files as part of the upload
process, which we believe preserves quality and photo resolution.
Organize and find. Customers initially upload their photos into user-
defined albums. We offer multiple ways to further organize and
find pictures. For example, customers can automatically sort photos within albums by upload date, photo titles or original filenames.
We’
ve recently enhanced the website to enable customers to drag and drop pictures to arrange them within albums. Additionally,
customers with many albums can organize them into folders for different themes, occasions, or time periods. Customers can also use our
“favorites” function to tag their favorite photos with a star rating system on both the website and within Shutterfly Studio.
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