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