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VIRGINIA INTERNATIONAL UNIVERISTY




        EXPANSION TO
                                       NIGERIA
                      MBA 616 International Marketing

Created by: Mariya Kolechyna, Harshesh Patel, Ricardo Abella, Aunyarat Oommie
CONTENTS
        o INTRODUCTION
          o ZAPPOS INC
     o AFRICA AND NIGERIA
o ZAPPOS AND AFRICAN MARKET
        o WHY NIGERIA?
 o TRIBAL MARKETING CONCEPT
  o PRODUCT IDENTIFICATION
     o PRODUCT EXTENSION
   o PRODUCT QUALIFICATION
    o PRODUCT IMPLICATION
         o CONCLUSION
INTRODUCTION




 Zappos with its unique approach to
 literally everything, from culture to
  hiring process, is ready to “deliver
 happiness” to Nigeria, Africa and to
take their fashionistas to a whole new
ZAP P O S INC
PRODUCTS
CORE VALUES
AFRICA as a CONTINENT
AFRICA as a CONTINENT

                                  With a
  2 largest
                             population of
continent in     Covers       about 1,030
the world in   about 20%     million people,
 both area      of Earth's    accounts for

     and       total land    about 20% of
                               the world's
                  area
 population                    population
NIGERIA

Africa's most populous country
155 million                  GDP was
  people       Muslim 50%, around $400
            th  Christians    billion in
(about 1/6
                  40%,     2010, placing
 of Africa’s                the country
 population Others 10%      32th in the
                           world ranking
0-14
            YEARS: 43
               %




              YOUTH
            LITERACY
               RATE
65 YEARS                  15-64
            (ENGLISH)
   AND                  YEARS: 54
OVER: 3.1   STOOD AT        %
    %          76.3%
ZAPPOS INC AND AFRICAN MARKET




“I can die for shoes” Funke Akindele
WHY NIGERIA


                 Fast-       Eager
Populous
                growing      hungry
 country
               economy       market




Six key drivers depict this situation
1. FAST ECONOMIC GROWTH

   GDP
                         2015    10 %
2011   7.3 %
2010   7.0 %
2009   4.0 %




                        TRANSFORMATION
                      AGRICULTURAL SECTOR
2. LARGEST CONSUMER MARKET IN AFRICA



  155 million                          8th world

   EGYPT       74
  ETHIOPIA     72   United Nations :   2050   390 M
  CONGO        59
SOUTH AFRICA   47
   SUDAN       39
 TANZANIA      36
3. EMERGING MEGACITIES
      … changes in population dynamics, cultural norms,   buying behaviors …


                                                    Traditional regional model
LAGOS (f.c.c.)           10
                                                      “ONE SIZE FITS ALL”
    KANO                  3
   IBADAN                 3
ABUJA (c.c.c)             2
                                                      “GO-TO-MARKET”
4. GROWING LITERACY RATES AND e-COMERCE




 0 - 14 years        43 %
 15 - 64 years       54 %


   Male          19.2 years
  Female         19.3 years


      Cell phone users
           73 million         Internet users
                               50 million
5. ENTRY POINT TO AFRICAN MARKET

Africa has more than one-eighth of the total population of the world




                                             47 %
                                      West Africa Population



                                                 2nd
                                       Sub-Sahara Africa Economy
6. EASY CREATION OF TRENDS



GROWING        ASPIRATIONAL              BRAND-
 SIZE            BRANDS                 CONSCIOUS



 OPEN UP OPPORTUNITIES TO CREATE NEW PATHS

                Business models
                Market channels
                Sales programs
                Product delivery systems
                Customer satisfaction
Zappos Inc strategy for entering Nigeria will
              be the following:

1. Creation of new website Zappos Nigeria
2. Establishment of the warehouse in Nigeria

3. Product: Imported world-known footwear
                Domestic brands
             “STAR – SHOE”
As Zappos we are looking for successful
fashion-forward women who are frequent
online media users and tech-savvy.
   Our target social group is:

    • Urban areas female industry
      workers
    • Age Group 18-40
    • Online media users
    • Household (family) income $
      30 000 +
    • Education: high school degree +
TARGET MARKET
                                   … strong character
    She is …      … independent




… fashionable
                                             … unique




… stylish                                     … free




  …b eautiful    … unpredictable     … passionate
PRODUCT IDENTIFICATION
      “Star” Product
      Adjustable heels




                         Before



       Any occasion

                         After
Shoes - Chameleon
Change your look
without changing your shoes
Product Extension
• Purses and wallets
Accessories
Accessories
Matching-Product
• Shoes and Purses
•Purse and Umbrella
New Collection Trend
PRODUCT QUALIFICATION
IMPORT FOOTWEAR?




NO
BRAND      GUCCI
PROCEDURE


              SUBMISSION
COMMERCIAL
              OF FORM “ M
  VOICE
                   “




      VAT TAXES ON
       FOOTWEAR
PRODUCT IMPLICATIONS

                 Weak financial          Energy
                   system               shortage

Traditionalist                                     Creation of
   culture                                           value

                     FIVE STRATEGIES

                            Potential customers
                            The Government
                            Activist groups
                            The press
PRODUCT IMPLICATIONS
PRODUCT IMPLICATIONS
PRODUCT IMPLICATIONS
PRODUCT IMPLICATIONS
PRODUCT IMPLICATIONS
Conclusion
conclusion

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"Zappos Inc. Expansion to Nigeria" Part I Group Project

  • 1. VIRGINIA INTERNATIONAL UNIVERISTY EXPANSION TO NIGERIA MBA 616 International Marketing Created by: Mariya Kolechyna, Harshesh Patel, Ricardo Abella, Aunyarat Oommie
  • 2. CONTENTS o INTRODUCTION o ZAPPOS INC o AFRICA AND NIGERIA o ZAPPOS AND AFRICAN MARKET o WHY NIGERIA? o TRIBAL MARKETING CONCEPT o PRODUCT IDENTIFICATION o PRODUCT EXTENSION o PRODUCT QUALIFICATION o PRODUCT IMPLICATION o CONCLUSION
  • 3. INTRODUCTION Zappos with its unique approach to literally everything, from culture to hiring process, is ready to “deliver happiness” to Nigeria, Africa and to take their fashionistas to a whole new
  • 4. ZAP P O S INC
  • 5.
  • 6.
  • 7.
  • 10. AFRICA as a CONTINENT
  • 11. AFRICA as a CONTINENT With a 2 largest population of continent in Covers about 1,030 the world in about 20% million people, both area of Earth's accounts for and total land about 20% of the world's area population population
  • 12.
  • 13. NIGERIA Africa's most populous country 155 million GDP was people Muslim 50%, around $400 th Christians billion in (about 1/6 40%, 2010, placing of Africa’s the country population Others 10% 32th in the world ranking
  • 14. 0-14 YEARS: 43 % YOUTH LITERACY RATE 65 YEARS 15-64 (ENGLISH) AND YEARS: 54 OVER: 3.1 STOOD AT % % 76.3%
  • 15. ZAPPOS INC AND AFRICAN MARKET “I can die for shoes” Funke Akindele
  • 16. WHY NIGERIA Fast- Eager Populous growing hungry country economy market Six key drivers depict this situation
  • 17. 1. FAST ECONOMIC GROWTH GDP 2015 10 % 2011 7.3 % 2010 7.0 % 2009 4.0 % TRANSFORMATION AGRICULTURAL SECTOR
  • 18. 2. LARGEST CONSUMER MARKET IN AFRICA 155 million 8th world EGYPT 74 ETHIOPIA 72 United Nations : 2050 390 M CONGO 59 SOUTH AFRICA 47 SUDAN 39 TANZANIA 36
  • 19. 3. EMERGING MEGACITIES … changes in population dynamics, cultural norms, buying behaviors … Traditional regional model LAGOS (f.c.c.) 10 “ONE SIZE FITS ALL” KANO 3 IBADAN 3 ABUJA (c.c.c) 2 “GO-TO-MARKET”
  • 20. 4. GROWING LITERACY RATES AND e-COMERCE 0 - 14 years 43 % 15 - 64 years 54 % Male 19.2 years Female 19.3 years Cell phone users 73 million Internet users 50 million
  • 21. 5. ENTRY POINT TO AFRICAN MARKET Africa has more than one-eighth of the total population of the world 47 % West Africa Population 2nd Sub-Sahara Africa Economy
  • 22. 6. EASY CREATION OF TRENDS GROWING ASPIRATIONAL BRAND- SIZE BRANDS CONSCIOUS OPEN UP OPPORTUNITIES TO CREATE NEW PATHS Business models Market channels Sales programs Product delivery systems Customer satisfaction
  • 23. Zappos Inc strategy for entering Nigeria will be the following: 1. Creation of new website Zappos Nigeria 2. Establishment of the warehouse in Nigeria 3. Product: Imported world-known footwear Domestic brands “STAR – SHOE”
  • 24. As Zappos we are looking for successful fashion-forward women who are frequent online media users and tech-savvy. Our target social group is: • Urban areas female industry workers • Age Group 18-40 • Online media users • Household (family) income $ 30 000 + • Education: high school degree +
  • 25. TARGET MARKET … strong character She is … … independent … fashionable … unique … stylish … free …b eautiful … unpredictable … passionate
  • 26. PRODUCT IDENTIFICATION “Star” Product Adjustable heels Before Any occasion After
  • 28. Change your look without changing your shoes
  • 37. PROCEDURE SUBMISSION COMMERCIAL OF FORM “ M VOICE “ VAT TAXES ON FOOTWEAR
  • 38. PRODUCT IMPLICATIONS Weak financial Energy system shortage Traditionalist Creation of culture value FIVE STRATEGIES Potential customers The Government Activist groups The press