Case 11.1. eBags: The 4Ps of a Successful Online Retailer

Pongtorn Lertruedeeporn MA1N0232 Minh, NghiemVan MA1N0234 Chaipat Jingjitra MA1N0238 Ly, Pham Hien

MA1N0241

Group 5

1998 Jon Nordmark left Samsonite eBags: online retailer of bags Profitable Growing ~30% a year Marketing program: 4P-s

eBags

Describe eBags’ positioning

strategy. Do you think the strategy is effective? Why or why not?

Question 1

4P – Product Offering 36,000 products from 520 brands Carrying products from all the major brands Colour Have a very deep selection of products in ít most popular

categories

Question 1

4P – Price Lowest price guarantee A completely free return policy

Question 1

4P – Promotion Public relations & Word of Mouth A clean & easy-to-navigate Website Launched a catalog in 2002 Make extensive use of customer reviews

Question 1

Question 1

4P – Place (Distribution)

- Drop shipping, eBags and other online merchants maintain little or no inventory. Instead, they rely on manufacturers and wholesalers to ship products directly to customers.

Question 1

Question 1

Do you think the strategy is effective? Why or why not?

- Product: It carries thousands of products from hundreds of brands. Give a lot of choices to customers.

- Website is easy to use, provides the search tool and also show the customer review, satisfaction rating and Customer Comments for Customers to know about the product satisfaction status

- Price: lowest and competitive price- Drop shipping – a great deal

In a short paragraph, describe

eBags’ brand. Comment on the strenghts and/or weaknesses of that brand.

Question 2

Question 2

Strengths Offer a large product

assortment(more colors, sizes)

Specialized in bag only Focus on marketing Mix to

develop instead of product. Positioning as a middle-

product but Highlight product assortment in marketing

Word of mouth to advertising and recognize brand.

Weaknesses Brand’s recognition

( only a online retailer sell variety of other bag’s brand)

At the first time, don’t have any special recognition.

Brand weak against copycats

What steps has eBags taken to

energize its customers? How has eBags turned its customers into advocates for eBags and the products it sells?

Question 3

Question 3

eBags has a very deep selections of products in its most popular categories.

“On the Streets” where emerging handbag designers pitch their products in the video format.

Offering lowest-price guarantees and a completely free return policy.

eBags has a clean, easy to navigate website to make shopping at eBags a satisfying experience.

Question 3

eBags also makes extensive use of customer reviews. It has over 1.5 million reviews on its site that come from people who have purchased, used, and have taken the time to provide feedback on a product and because all of this feedback that turn its customers to advocates to eBags.

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?

Question 4

From the core product and its actual product are

not different as you can see in the website All the product lines and items are easily to find

the bag that you want.

Our group think it is an attractive mix of characteristics.

Question 4