eBags Journey to Record Sales w/ Improved Performance & Scalability
Case 11.1. eBags: The 4Ps of a Successful Online Retailer
-
Upload
isaac-workman -
Category
Documents
-
view
25 -
download
0
description
Transcript of Case 11.1. eBags: The 4Ps of a Successful Online Retailer
![Page 1: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/1.jpg)
Case 11.1. eBags: The 4Ps of a Successful Online Retailer
Anthony
Liisi
![Page 2: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/2.jpg)
eBags 1998 Jon Nordmark left Samsonite eBags: online retailer of bags Profitable Growing ~30% a year Marketing program: 4P-s
![Page 3: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/3.jpg)
Question 1
Describe eBags’ positioning strategy. Do you think the strategy is effective? Why or why not?
![Page 4: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/4.jpg)
Question 1 4P – Product Deep selection More than 36 000 products 520 brands Colors
![Page 5: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/5.jpg)
Question 1 4P – Price Lowest-price guarantees Completely free return policy Practices tested before
implementation
![Page 6: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/6.jpg)
Question 1 4P – Promotion Word of mouth, public relations Easy-to-navigate website Searching engine Special catalogue Press releases Customer reviews
![Page 7: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/7.jpg)
Question 1
![Page 8: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/8.jpg)
Question 1 4P – Place Same as Dell – but better Drop shipping Products directly to customers No inventory Box with eBags logo and name “Category killer”
![Page 9: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/9.jpg)
Question 2
In a short paragraph, describe eBags’ brand. Comment on the strenghts and/or weaknesses of that brand.
![Page 10: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/10.jpg)
![Page 11: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/11.jpg)
![Page 12: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/12.jpg)
Question 2
Strengths Weaknesses
Wide range of standard products (color, size)
Specialized in travelers’ needs (universal plug adapter, packing cube, scale grip)
Positioning as a middle-product (few competitors)
Brand’s recognition low
Brand weak against copycats
![Page 13: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/13.jpg)
Question 3
What steps has eBags taken to energize its customers? How has eBags turned its customers into advocates for eBags and the products it sells?
![Page 14: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/14.jpg)
Question 3
1. Reviews2. Price guarantees3. Videos4. Search Engine
![Page 15: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/15.jpg)
Reviews
1. “Love the space this laptop bag gives, the pockets for organization are wonderful. Easy to carry and transport.“
2. "Nice backbag for basic organization and a book or two. Laptop sleeve is a bit tight and smaller than advertised.“
3. "Very nice purse, but a bit small.“4. "Buy it. This suitcase is a little work horse
and drives beautifully. It's compact, small, and after 5 flights look brand new. ”
![Page 16: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/16.jpg)
Question 4
What is the difference between eBags’ core product and its actual product? Describe its actual product and your assessment of whether the actual product provides an attractive or an unattractive mix of characteristics?
![Page 17: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/17.jpg)
Question 4 Product mix: all the product lines and items
that a particular seller offers for sale Range of associated products that yields
larger sales revenue when marketed together than individually or in isolation from others
Width: number of different product lines Depth: number of different versions of each
product (size, flavor, color) Consistency: how closely related product lines
are to one another
![Page 18: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/18.jpg)
Question 4
![Page 19: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/19.jpg)
Question 4
![Page 20: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/20.jpg)
Question 4
![Page 21: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/21.jpg)
Application Question 1
Draw a product attribute map for eBags.
![Page 22: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/22.jpg)
Application Question 1
PRICE
QUALITY
SERVICE / PAYMENT SOLUTIONS
DECOR (WEBSITE)
USER-FRIENDLY
NR OF PRODUCTS
0
50
100
![Page 23: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/23.jpg)
Application Question 2
Compare and contrast eBags and Zappos (the subject of Case 9.2).
![Page 24: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/24.jpg)
Zappos Online shoe retailer Sales:
1990 $0 2005 $370 million 2008 $1 billion
Excellent customer service Human resource management
policies
![Page 25: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/25.jpg)
![Page 26: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/26.jpg)
#1 Online bag retailer since 1999 2.5 million customer reviews 14.8 million bags shipped 2.5/14.8 = 16.8%
![Page 27: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/27.jpg)
![Page 28: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/28.jpg)
Zappos Why do you think Zapposdoesn’t drop ship like eBags does?
Speed Different product Consumer service
![Page 29: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/29.jpg)
What would eBags gain and what would it lose if it adopted Zappos’s approach to warehousing and distributing products?
Increasing Cost (warehouse, employees, inventory)
Increasing Profit margins
A real company culture
![Page 30: Case 11.1. eBags: The 4Ps of a Successful Online Retailer](https://reader035.fdocuments.in/reader035/viewer/2022070400/5681305d550346895d962885/html5/thumbnails/30.jpg)