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

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

2. Group 5 • Pongtorn Lertruedeeporn MA1N0232 • Minh, NghiemVan MA1N0234 • ChaipatJingjitra MA1N0238 • Ly, Pham Hien MA1N0241

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

4. Question 1 • Describe eBags’ positioning strategy. Do you think the strategy is effective? Why or why not?

5. 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

6. Question 1 • 4P – Price • Lowest price guarantee • A completely free return policy

7. 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

8. Question 1

9. 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.

10. 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

11. Question 2 • In a short paragraph, describe eBags’ brand. Comment on the strenghts and/or weaknesses of that brand.

14. Question 2 Strengths 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 • 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.

15. 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?

16. 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.

17. 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.

18. 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?

19. 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.