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  • According to shoppers, the top ten retailers for customer service in 2010 are:Zappos.comAmazon.comLL BeanOverstock.comLands' EndJC PenneyKohl'sQVCNordstromNewegg1.Deliver WOW Through Service 2.Embrace and Drive Change 3.Create Fun and a Little Weirdness 4.Be Adventurous, Creative, and Open-Minded------------------------------4 weeks of culture, core values, customer service training for everyone in Las Vegas headquartersWe’ll pay you $2000 to quitCulture BookInterviews & performance reviews are 50% based on core values & culture fitTwitter helps build company culture 5.Pursue Growth and Learning6.Build Open and Honest Relationships With Communication 7.Build a Positive Team and Family Spirit 8.Do More with Less 9.Be Passionate and Determined 10. Be Humble
  • The Zappos Fan Page has a great call to action that tells visitors exactly what they should be doing the first time they come to the site. They also have a "Fan of the Week" section where they ask fans to send in pictures of themselves posing with a Zappos box in the photo.Their Facebook Fan Page has acquired roughly 28,000 fans to date.  This may be fewer than expected for a company that has over a million followers on Twitter; however, I would argue that these fans are very engaged as evidenced by the 63 comments incurred on the Jan 7 status update.Here's 20 companies—chosen from nominations by entrepreneurs, social media experts, Inc. editors, and Facebook—that we think have awesome fan pages.


  • 1. Slide 2
  • 2. Contents 1. We are Zappos 2. Where we are in the Market 3. SNS is our Power, But 4. SuggestionSlide 3
  • 3. Company History Headquarters: Las Vegas, Nevada , U.S CEO: Tony Hsieh Business: Online retailing Founded: June 1, 1999 M&A: Nov 2009, Amazon acquires (Share valued at $1.2billion at closing) Sales (2008): $1 billion (before M&A) Main product: Shoes Upcoming products: Handbags, Clothing, Eyewear, Jewelry, Luggage, Accessories, Housewares, Electronics. Employees :1500 employees (half in Las Vegas headquarters, half in Kentucky) Differentiator: Customer service and interactionSlide 4
  • 4. SWOT Analysis Strength Weakness • Customer First – “WOW” Ex)Free Returning Policy • No Specific Vision for next 10 yrs • Well-Organized Call Center • Price Competitiveness • Unique Culture of Company • Well Understanding NewMedia • Young & Fast • Amazon’s Supports • Expand Markets to emerging • Many Competitors countries -Offline Retailers, Online Retailers • Customer information and their • Footwear Market is Stable shopping pattern-New business? • No Barrier to entrance Market Opportunity ThreatSlide 5
  • 5. Zappos Philosophy “WOW” 24/7  1-800 number on every page  Run warehouse 0 Fast, Free Shipping, Return Shipping The longest Calling with Customer 5.9 hours wow 365 Days Return PolicySlide 6
  • 6. Zappos Core Values Happiness Customers Employees 2011Slide 7
  • 7. Customer and Happiness Road Map to Great Corporate CultureSlide 8
  • 8. E-Commerce Retailer Market 300 269.8 14.8% 11.3% 249.5 250 13.7% 229.5 209.3 200 188.1 165.4 9.7% 144.1 150 8.7% 8.1% 100 50 CAGR : 6.1% 0 1.6% 2009 2010 2011 2012 2013 2014 2015 Source : eMarketer(2011) Sales % Change • Healthy Growth for Ecommerce as Retail Continues Shift to WebSlide 9 9
  • 9. U.S. Footwear Retail Market 60 46.8 47.2 48.4 50 45.6 40.1 43.3 40 30 (in billions $) 20 10 0 2008 2009 2010 2011 2012 2013 Source : Packaged Facts(2009) Sales • Overall Growth Estimated at 1% Annually to Reach $48.4 Billion • The industry is concentrated: the top 50 companies have about 75% of industry revenue. • Retail : About 28,000 stores & 27 BillionSlide 10 10
  • 10. Competitor AnalysisOffline Online • Large Companies have advantages in purchasing, distribution and marketing. • Small companies can compete effectively by stocking specialty products, providing superiors customer service, or serving a local marketSlide 11
  • 11. Competitor Analysis : Online Source : ComScore(2011)Slide 12 12
  • 12. Why Social Media for Business?Phone 6,000 + calls a dayLive Chat 400+live chats per daySocial Sites, Networks, etc 1,100,000 + Opportunities to interact per daySlide 13
  • 13. Zappos marketing communication strategy is focused on being available to the worldSlide 14
  • 14. • Joined since July, 2007• To build their culture among employees but along the way they discovered the power to build the culture with its consumers as well…..  Internal to employee  External to customersSlide 15
  • 15. SNS as Internal CommunicationSlide 16
  • 16. SNS as Internal CommunicationSlide 17
  • 17. External to Customers • Tweet about their personal lives • Build personal relationship with their followers • No guidelines about how or when to tweet • Give a option to take a Twitter course at the company • Tweet at work and at their own time • Reply to its followers • Reflect their core values on their tweets • Connect deeplySlide 18
  • 18. So, WE Tested!!
  • 19. How Active They Are!!!Slide 20
  • 20. Twitter aligns with Zappos Core Values and Marketing Strategy Always available Always Always weird authenticate Core Values Always Always building connecting Marketi relationships ng Strategy Using Twitter Always going Always sharing beyond a human touch Always giving Always activeSlide 21
  • 21. Zappos on Facebook • 2007 • Objective: As its cultural cultivator • Activities: • Discussion posts • Wall updates • “Let’s make it right” attitude • A Fan of the week contest and • Other tactics to whip their fans into a frenzySlide 22
  • 22. Zappos on Youtube • March 9, 2006. • Not like slick traditional PR corporate ad videos. • What’s good about video’s • Update for both employees and customers • News for other activities (scope to know the company more and to engage the customer) Views: 2488Slide 23
  • 23. Overall ObservationsStrategy Leverage Scope How Zappos did? Consumers like to networkProviding networking with people who have Facebook fan page for eachplatforms interests and desires that are product similar to their own. Consumers feel moreUse blogs and other social engaged with products and tools to engage organizations when they are com/customers able to submit feedback.Both traditional and Internet To engage customer both Facebook contest page forbased promotional tools to way (on-line and off-line) fansengage customersProvide information Like to talk about company Youtube, blogs and product Slide 24
  • 24. Strategy Leverage Scope How Zappos did? People talk about things they find to be somewhatBe outrageous Twitter, facebook outrageous. People like to feel special.Provide exclusivity Products and servicesDesign products with talking should be designed with By providing review for apoints and consumers’ talking specific product , emaildesired self images in mind points in mind, alert. People tell others aboutSupport causes that are things to which they Breast Cancer Awareness ,important to consumers are emotionally connected. youtube and website The more memorableUtilizes the power of stories they are, the more likely ??? they are to be repeated. Slide 25
  • 25. The End Result of Using all Social Media • “I want to shop at Zappos because they are my friends,” according to business development manager Aaron Magness. 700 600 500 400 Revenue 300 200 100 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 YearSlide 26
  • 26. Suggestions :Be Simple ! Too many Channel =Need Risk ManagementMany Channels have possible to cause confuse and exposure on risk of informationSlide 27
  • 27. Suggestion : Opportunity in Social Commerce Zappos’s Core competence in Social Media Opportunity Amazon’s Partnership with Recommendation Social media Technology CompaniesSlide 28
  • 28. Q&A
  • 29. All Copyright By SNS Marketing TeamIm Woo Young (@Mujeok00) Lee Sunghyun (@Crashsh) M.M Binte (@Nishambm)For Zappos HQ Tours, email: