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2. Slide 2

3. Contents
1. We are Zappos
2. Where we are in the Market
3. SNS is our Power, But
4. Suggestion
Slide 3

4. Company History
Headquarters: Las Vegas, Nevada , U.S
CEO: Tony Hsieh
Business: Online retailing
Founded: June 1, 1999
M&A: Nov 2009, Amazon acquires
(Share valued at $1.2billion at closing)
Sales (2008): $1 billion (before M&A)
Main product: Shoes
Upcoming products: Handbags, Clothing, Eyewear,
Jewelry, Luggage, Accessories, Housewares, Electronics.
Employees :1500 employees
(half in Las Vegas headquarters, half in Kentucky)
Differentiator: Customer service and interaction
Slide 4

5. SWOT Analysis
Strength Weakness
• Customer First – “WOW”
Ex)Free Returning Policy • No Specific Vision for next 10 yrs
• Well-Organized Call Center • Price Competitiveness
• Unique Culture of Company
• Well Understanding NewMedia
• Young & Fast
• Amazon’s Supports
• Expand Markets to emerging • Many Competitors
countries -Offline Retailers, Online Retailers
• Customer information and their • Footwear Market is Stable
shopping pattern-New business? • No Barrier to entrance Market
Opportunity Threat
Slide 5

6. Zappos Philosophy “WOW”
24/7  1-800 number on every page
 Run warehouse
0
Fast, Free Shipping, Return Shipping
The longest Calling with Customer
5.9 hours
wow
365 Days Return Policy
Slide 6

7. Zappos Core Values
Happiness
Customers Employees
2011
Slide 7

8. Customer and Happiness
Road Map to Great Corporate Culture
Slide 8

9. E-Commerce Retailer Market
300
269.8
14.8% 11.3% 249.5
250
13.7% 229.5
209.3
200 188.1
165.4 9.7%
144.1
150 8.7%
8.1%
100
50
CAGR : 6.1%
0
1.6%
2009 2010 2011 2012 2013 2014 2015
Source : eMarketer(2011) Sales % Change
• Healthy Growth for Ecommerce as Retail Continues Shift to
Web
Slide 9 9

10. U.S. Footwear Retail Market
60
46.8 47.2 48.4
50 45.6
40.1 43.3
40
30
(in billions $)
20
10
0
2008 2009 2010 2011 2012 2013
Source : Packaged Facts(2009) Sales
• Overall Growth Estimated at 1% Annually to Reach $48.4 Billion
• The industry is concentrated: the top 50 companies have about 75%
of industry revenue.
• Retail : About 28,000 stores & 27 Billion
Slide 10 10

11. Competitor Analysis
Offline Online
• Large Companies have advantages in purchasing, distribution and marketing.
• Small companies can compete effectively by stocking specialty products,
providing superiors customer service, or serving a local market
Slide 11

12. Competitor Analysis : Online
Source : ComScore(2011)
Slide 12 12

13. Why Social Media for Business?
Phone
6,000 + calls a day
Live Chat
400+live chats per day
Social Sites, Networks, etc
1,100,000 +
Opportunities to interact per day
Slide 13

14. Zappos marketing communication strategy is focused on being
available to the world
Slide 14

15. • Joined since July, 2007
• To build their culture among employees but along
the way they discovered the power to build the
culture with its consumers as well…..
 Internal to employee
 External to customers
Slide 15

16. SNS as Internal Communication
Slide 16

17. SNS as Internal Communication
Slide 17

18. External to Customers
• Tweet about their personal lives
• Build personal relationship with their followers
• No guidelines about how or when to tweet
• Give a option to take a Twitter course at the company
• Tweet at work and at their own time
• Reply to its followers
• Reflect their core values on their tweets
• Connect deeply
Slide 18

19. So, WE Tested!!

20. How Active They Are!!!
Slide 20

21. Twitter aligns with Zappos Core Values and Marketing
Strategy
Always
available
Always
Always weird
authenticate
Core
Values
Always Always building
connecting Marketi relationships
ng
Strategy
Using
Twitter
Always going Always sharing
beyond a human touch
Always giving Always active
Slide 21

22. Zappos on Facebook
• 2007
• Objective: As its cultural cultivator
• Activities:
• Discussion posts
• Wall updates
• “Let’s make it right” attitude
• A Fan of the week contest and
• Other tactics to whip their fans into a frenzy
Slide 22

23. Zappos on Youtube
• March 9, 2006.
• Not like slick traditional PR corporate ad videos.
• What’s good about video’s
• Update for both employees and customers
• News for other activities (scope to know the company more and to engage the
customer)
Views: 2488
Slide 23

24. Overall Observations
Strategy Leverage Scope How Zappos did?
Consumers like to network
Providing networking with people who have Facebook fan page for each
platforms interests and desires that are product
similar to their own.
Consumers feel more
Use blogs and other social
engaged with products and http://zappos.suggestionbox.
media tools to engage
organizations when they are com/
customers
able to submit feedback.
Both traditional and Internet
To engage customer both Facebook contest page for
based promotional tools to
way (on-line and off-line) fans
engage customers
Provide information Like to talk about company Youtube, blogs
and product
Slide 24

25. Strategy Leverage Scope How Zappos did?
People talk about things
they find to be somewhat
Be outrageous Twitter, facebook
outrageous.
People like to feel special.
Provide exclusivity
Products and services
Design products with talking should be designed with By providing review for a
points and consumers’ talking specific product , email
desired self images in mind points in mind, alert.
People tell others about
Support causes that are things to which they Breast Cancer Awareness ,
important to consumers are emotionally connected. youtube and website
The more memorable
Utilizes the power of stories they are, the more likely
???
they are to be repeated.
Slide 25

26. The End Result of Using all Social
Media
• “I want to shop at Zappos because they are my friends,”
according to business development manager Aaron
Magness.
700
600
500
400
Revenue
300
200
100
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Year
Slide 26

27. Suggestions :Be Simple !
Too many Channel =Need Risk Management
Many Channels have possible to cause confuse and exposure on risk of information
Slide 27

28. Suggestion :
Opportunity in Social Commerce
Zappos’s Core
competence in
Social Media
Opportunity
Amazon’s Partnership with
Recommendation Social media
Technology Companies
Slide 28

29. Q&A

30. All Copyright By
SNS Marketing Team
Im Woo Young (@Mujeok00)
Lee Sunghyun (@Crashsh)
M.M Binte (@Nishambm)
For Zappos HQ Tours, email:
tours@zappos.com