Marketing Management

Dosen : Dr. Iin Mayasari, MM, MSi

Ershad Haekal
Martha Siahaan
R. Purwedi Darminto
Yuvi Karauwan
Case Summary
Main Issue
Problem Statement
Analysis
Recommendation
- In late 1998, Nick Swinmurn 26 years old - couldnt
find shoes that he wants (in store and internet)
- In June 1999, he lauched ShoeSite.com (We are taking
a more dynamic approach to what has been a presented
category online) who soon renamed the site
Zappos.com
- In October 1999, Zappos had begun creating direct
relationship with footwear manufactures
- By the end 1999, Zappos had begun to institute services
such as free shipping, which fueled growth
- By 2000, Zappos secured $1.1 million in venture capital
funding
- In 2000, PC Data Online released its annual ranking on
the top 10,000 e-commerce websites it was honored
as the highest ranking online footwear retailer
- May 2001, Hsieh joined Zappos as co-CEO (with
Swinmurn)
- By the end 2001, Zappos had grown to $8.6 million in
gross merchandise sales (Were still not at the point
where were trying to maximize our profit, because we
still think there are a lot of growth opportunities)
said Hsieh
- In 2002, Hsieh announced a financial goal for Zappos :
to grow to $1 billion in gross sales by 2010
- In 2003, Hsieh became sole CEO and Swinmurn become
chairman
- In 2005, Zappos had outgrown its San Francisco
headquarters
- In 2006, the online footwear retailing industry had
grown to $2.9 billion
- In 2007, Zappos faced new competition from mega-
retailers : Piperlime.com and Amazon.com
- By 2008, Zappos had become a $1 billion retailer and
net income of $10.8 million

Deliver WOW Through Service
Embrace and Drive Change
Create Fun and A Little Weirdness
Be Adventurous, Creative, and Open-Minded
Pursue Growth and Learning
Build Open and Honest Relationships With Communication
Build a Positive Team and Family Spirit
Do More With Less
Be Passionate and Determined
Be Humble
Our belief is that if you get the culture right, then
most of the other stuff like great customer service or
building a long-lasting, enduring brand will happen
naturally, Hsieh said

Hiring for Cultural Fit
who will be creative, adventurous, and can think
outside of the box
Orientation and Initial Training
Zappos has developed a compensation model for
its Customer Loyalty Team that incentives
employee development
Pipeline
The pipeline sets the expectation that anyone
could potentially rise to senior management
Zappos
believes great
customer
service is an
opportunity
to make the
customer
happy
Want people to call
Emotional representatives with
customers
Actively use social media sites such as
Facebook and Twitter to response
customer issues
Expected to spend as much time as they
need to WOW customers
Help customers shop, even on their
competitors websites
Zappos remains
commited to serving its
customers and
employees.
Hsieh believes that
expanding into the
clothing and
merchandise market will
help company to grow
Business Scale and Business
Strategy implementation in
volatile market economic
recession.
Tremendous
profitable output to
the company itself
by concentrating in
the highly
competitive core
values built in the
system across all
functions units
Offer wide variety of
product lines ranging
from footwear,
Clothing, and
Apparel sections to
local USA customers
equipped with
sophisticated
inventory and online
technology model
operations
CREAT
MANAGE
Deliver WOW Through Service
Embrace and Drive Change
Create Fun and A Little Weirdness
Be Adventurous, Creative, and Open-
Minded
Pursue Growth and Learning
Build Open and Honest Relationships
With Communication
Build a Positive Team and Family
Spirit
Do More With Less
Be Passionate and Determined
Be Humble
the strong base in order to
operate the whole end-to-
end business model and
becoming the competitive
advantage for the employee
in which automatically
translating into an optimize
Profitability performance
The mission for the
company during
recession should be to
postpone any dramatic
medium and long term
investment
commitments, not a
vice versa
implementation that
would surely cost the
company profitability
performance
In order to compensate and growing in the long-term
basis, ZAPPOS would strongly need to boost its market
share by certain amounts by merging the company with
AMAZON.com. The merging would also produce
combination of strong market value (Led by
AMAZON.com), and company strong core values (Led by
ZAPPOS) and hence synergize the whole end-to-end
business model of both market share, company core
values, wider distribution channels & Product
lines. Both AMAZON.com, and ZAPPOS have both
commencing their value business model through Online
structure.