Co-creating Value With Customers in the Retailing Industry: The Case of Zôdio

Abstract

The present case study highlights the importance of value co-creation with customers as a differentiation strategy to face the challenges posed by the fierce competition in the retail market of creative hobbies in France, more specifically, do-it-yourself—commonly abbreviated as DIY. The case study describes how Zôdio, a new retailer concept specializing in home decoration accessories and supplies, has recently entered a saturated market and used innovative marketing strategies to differentiate itself from competitors. It has done this by differentiating its product offerings and providing a distinct experience to its customers. To achieve this, the company has engaged their consumers and employees in different forms of value co-creation, crossing different platforms both in-store and online. The co-creation occurs throughout the different stages of product development, from conception and development to marketing. Zôdio implements a seamless and unique shopping experience for its customers to enjoy across all channels, both online and instore. The case study discusses how Zôdio has gained competitive advantage by engaging both customers and employees in co-production and value-in-use co-creation, using offline and online channels. Students will be asked to explore questions arising from this, such as: Is implementing customer co-creation a viable strategy for brick-and-mortar retailers to compete with online giants such as Amazon? Is value co-creation with customers a sustainable strategy over the long-term? How can retailers integrate both offline and online channels to create a seamless experience and generate profits?

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