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Case eBags: The 4Ps of a Successful Online Retailer

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Presentation on theme: "Case eBags: The 4Ps of a Successful Online Retailer"— Presentation transcript:

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

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

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

4 Question 1 4P – Product Deep selection More than products 520 brands Colors

5 Question 1 4P – Price Lowest-price guarantees Completely free return policy Practices tested before implementation

6 Question 1 4P – Promotion Word of mouth, public relations Easy-to-navigate website Searching engine Special catalogue Press releases Customer reviews

7 Question 1

8 Question 1 4P – Place Same as Dell – but better Drop shipping Products directly to customers No inventory Box with eBags logo and name “Category killer”

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



12 Question 2 Wide range of standard products (color, size)
Strengths Weaknesses Wide range of standard products (color, size) Specialized in travelers’ needs (universal plug adapter, packing cube, scale grip) Positioning as a middle- product (few competitors) Brand’s recognition low Brand weak against copycats

13 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?

14 Question 3 Reviews Price guarantees Videos Search Engine

15 Reviews “Love the space this laptop bag gives, the pockets for organization are wonderful. Easy to carry and transport.“ "Nice backbag for basic organization and a book or two. Laptop sleeve is a bit tight and smaller than advertised.“ "Very nice purse, but a bit small.“ "Buy it. This suitcase is a little work horse and drives beautifully. It's compact, small, and after 5 flights look brand new. ”

16 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?

17 Question 4 Product mix: all the product lines and items that a particular seller offers for sale Range of associated products that yields larger sales revenue when marketed together than individually or in isolation from others Width: number of different product lines Depth: number of different versions of each product (size, flavor, color) Consistency: how closely related product lines are to one another

18 Question 4

19 Question 4

20 Question 4

21 Application Question 1 Draw a product attribute map for eBags.

22 Application Question 1

23 Application Question 2 Compare and contrast eBags and Zappos (the subject of Case 9.2).

24 Excellent customer service Human resource management policies
Zappos Online shoe retailer Sales: 1990 $0 2005 $370 million 2008 $1 billion Excellent customer service Human resource management policies


26 #1 Online bag retailer since 1999
2.5 million customer reviews 14.8 million bags shipped 2.5/14.8 = 16.8%


28 Zappos Why do you think Zappos doesn’t drop ship like eBags does? Speed Different product Consumer service

29 What would eBags gain and what would it lose if it adopted Zappos’s approach to warehousing and distributing products? Increasing Cost (warehouse, employees, inventory) Increasing Profit margins A real company culture


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