Zappos Analysis and Implementation Pitch

1. Zappos! An Analysis & Implementation Pitch presented by the Chi Pledge Class

2. KEY ISSUES Overview 3 Main Issues 1. Cluttered website 2. Too broad of a target audience 3. Lack of social media presence Chi Pledge Class

3. SOLUTIONS Overview 2 Recommendations 1. Unclutter and improve website 2. Blogger partnership Chi Pledge Class

4. COMPANY BACKGROUND Chi Pledge Class

5. COMPANY BACKGROUND Zappos’ Revenue Growth Chi Pledge Class

6. COMPETITORS Chi Pledge Class

7. SWOT ANALYSIS Zappos ● A wider selection of products compared to in-person stores ● 24 million Zappos accounts were hacked ● Can move beyond retail in other customer service related business ● 365 day return policy can affect cost and is not green friendly ● Low wages ● Increasing trend of shopping online Chi Pledge Class

8. SWOT ANALYSIS Nordstrom ● Disposable income in increasing of the customers ● Reducing sales may dilute brand equity ● Tapping the international market especially emerging economies ● Emotional connect with customer may decline ● Acquisition of smaller retail chains Chi Pledge Class

9. SWOT ANALYSIS Amazon ● ● More releases of Amazon products and services Possibilities of entering other countries ● Tax avoidance issues ● Online security ● Regional lower cost online retailers showed up Chi Pledge Class

10. SWOT ANALYSIS NastyGal ● Can grow into actual stores ● Could go public ● Urban Outfitters may acquire Nasty Gal ● Large pool of competitors ● Change in customer style/taste/trends Chi Pledge Class

11. COMPETITOR ANALYSIS Scoring Rule “Weak” “Strong” Chi Pledge Class

13. KEY ISSUES NastyGal Amazon Zappos Cluttered Website | Categories Chi Pledge Class

14. KEY ISSUES Cluttered Website | Filter Options Zappos Amazon NastyGal Chi Pledge Class

15. KEY ISSUES Cluttered Website | Size chart Zappos Nordstrom Chi Pledge Class

16. KEY ISSUES Cluttered Website | Checkout Nordstrom Zappos Required account Chi Pledge Class

17. KEY ISSUES Cluttered Website | Checkout NastyGal Zappos Can’t Edit Preferences Chi Pledge Class

18. KEY ISSUES Cluttered Website | Overview A cluttered website = critical problems because... - intimidating number of categories - hard to follow format - limited options for customers to change their minds It drives customers away from using the website! Chi Pledge Class

20. SOLUTIONS Unclutter and improve the website | Homepage Original Mockup Chi Pledge Class

21. SOLUTIONS Unclutter and improve the website | Checkout Original Mockup 1 1 2 2 6 3 4 3 5 4 5 Chi Pledge Class

22. SOLUTIONS Unclutter and improve the website | Overview Zappos‟ website could really benefit from… - More visuals - Condensing of available categories - Making filters and sizing easy to find and easier to navigate - Having an option to checkout as a guest - Giving customers option to edit their cart Chi Pledge Class

24. KEY ISSUES Target Audience Zappos has over 1,500 brands Aspiring Entrepreneurs of America

25. KEY ISSUES Broad Target Audience Chi Pledge Class

26. KEY ISSUES Broad Target Audience Nasty Gal Chi Pledge Class

27. KEY ISSUES Broad Target Audience Nordstrom Chi Pledge Class

28. KEY ISSUES Too Broad Target Audience Having too broad of a target audience is a problem because... - Overwhelming customers - Loses individuality of being an online shoe retailer - It is difficult to acquire specific audiences Chi Pledge Class

30. SOLUTIONS Blogger partnership Market Chi Pledge Class

31. SOLUTIONS Blogger partnership “Happy Hunter” 25 - 49 years old $75,000 Time > Money Chi Pledge Class

33. KEY ISSUES Lack of Social Media Presence Chi Pledge Class

37. KEY ISSUES Lack of Social Media Presence Lack of Social Media Presence is a problem because... -E-commerce needs strong online representation -Missed low-cost opportunities -Losing potential customers Chi Pledge Class

39. SOLUTIONS Blogger partnership Blogger partnership with specific bloggers will create social media presence and increase traffic to the website! Chi Pledge Class

40. SOLUTIONS Blogger partnership So Zappos should… - Sign contracts with bloggers to feature the website on their own website - Utilize social media platforms such as Facebook, Instagram, Twitter, etc. by featuring certain partnered bloggers Chi Pledge Class

41. SOLUTIONS Blogger partnership [Self survey, N = 100] Q) How many bloggers do you follow? None : 22% One or More 78% : Chi Pledge Class

42. SOLUTIONS Blogger partnership [Self survey, N = 100, 10 being highest] Q) How much influence would you say a blogger has over your style choices? Chi Pledge Class

43. SOLUTIONS Blogger partnership “Well, I‟m so excited that H&M;„s new online store launched in the US today! Now you can shop H&M; any time you want, wherever you are! Also, I‟m honored to have been selected by H&M; as the West Coast judge for their 50 States of Fashion campaign. You can enter the 50 States of Fashion contest by posting a photo of yourself in an H&M; look to Instagram using the hashtag #HMshoponlineCA (the last two letters should be the abbreviation of your state, so mine is CA.) The grand prize winner will receive a $1,000 H&M; shopping spree and trip to NYC during New York Fashion Week.” Aimee Song Chi Pledge Class

44. SOLUTIONS Blogger partnership Aritzia’s personal magazine helps generate website traffic Chi Pledge Class

45. SOLUTIONS Blogger partnership Nasty Gal utilizes its blogger partnerships to create buzz on Instagram Chi Pledge Class

46. SOLUTIONS Blogger partnership LOFT Chi Pledge Class

47. SOLUTIONS Blogger partnership Chi Pledge Class

48. SOLUTIONS Blogger partnership Chi Pledge Class

49. So why not Zappos?

50. SOLUTIONS Blogger partnership | Implementation Zappos can start by taking advantage of it‟s….. Associates Program New Customer - 18% Repeat Customers - 8% Chi Pledge Class

51. SOLUTIONS Blogger partnership | Implementation Sea of Shoes Cupcakes and Cashmere Girl and Closet Possible partners within Zappos’ target audience Chi Pledge Class

52. SOLUTIONS Blogger partnership | Implementation Atlantic-Pacific The Chloe Conspiracy Her Waise Choice Possible partners within Zappos’ target audience Chi Pledge Class

53. SOLUTIONS Blogger partnership | Implementation Mock Blogpost Pants: Adidas Shoes: Zappos Hi guys! I just spent a day at the beach ATV-ing with some family, and it was a blast! We all had to wear long pants and jackets to cover basically all of our bodies. One pop of color in my own ATV-ing outfit was my shoes. I loved wearing these bright colors on my new Nike Free Runs. I am excited to announce the launch of Zappos‟ new website! They‟ve totally redone the entire site, and they‟ve actually made it more fun to browse their selections. They carry so many brands that anyone will be able to find what they‟re looking for. Also, a bonus was the great customer service that they have! I had a question about sizing and the return policy, and the customer service rep was probably the nicest and easiest I have ever talked to! Make sure you visit Zappos for your next purchase! Chi Pledge Class

54. SOLUTIONS Blogger partnership | Implementation Mock Instagram posts Chi Pledge Class

55. SUMMARY For these 3 issues... Zappos can... 1. Cluttered website 1. Redesign the website 2. Too broad of a target audience 3. Lack of social media presence 2. Create blogger partnerships by signing contracts and utilizing the associates program Chi Pledge Class

56. Zappos is a steady growing company with fantastic values Website renovation and blogger partnership will only enhance what Zappos already has to offer!

57. THANK YOU QUESTIONS? Chi Pledge Class

Zappos Analysis and Implementation Pitch