Zappos Market Segmentation Essay

10. Conducting a Market Opportunity Analysis (MOA) is the first step in developing a marketing strategy.

With the critical prospects indicated by e-commerce, Nordstrom alongside its rivals significantly profit by online sales. This online presence permits shoppers in different nations to buy products from Nordstrom and ship them globally. This type of innovation has been extremely helpful in Nordstrom coming to a worldwide business market.

In 1999, Nick Swinburn was walking around a mall and could not find the right color and design of shoes. He created a shoe company online. He eventually started selling on Amazon to increase sales. Zappos is a great company, and believe in social responsibility. They don’t attempt to get into price wars with competitors, instead, they focus on giving back to the community. Their items are a bit pricey for those who live paycheck to paycheck. It is like buying a Jaguar, BMW, or Lexus. Those that can afford the brand will buy and those that can’t will buy cheaper brands. Zappo’s knows this, so they or company that takes care of the people that got them to where they are now. Without the customers, the business will fail. The community

During the 1980’s, Zara started its international expansion as a result of a change in its production of clothing, which allowed the company to react to trends much faster, creating “instant fashions”.

In 2011, the company also launched an educational website for SMEs to seek Zappos’ executives for advice with monthly fees. Lastly, Zappos could also expand and diversify away from retail, to businesses such as hospitality or banking, where customer service is dominant.

Market segmentation is the division of a market into different groups of customers with distinctly similar needs and products or service requirements (Croft, 1994). Its major purpose is to pull scarce resources and ensure that the elements of the marketing mix, price, distribution trends, products and promotion are premeditated to satisfy the particular needs of the different customer groups. City Grill’s main approaches to market segmentation, could include using the breakdown method where they can view the market as to consist of consumers who are in essence the same, having similar tastes, and so forth. Their duty could only be to identify groups which share particular differences. Alternatively they

Zappos.com employees live by the mission and vision statements. They exude the meanings in everyday work. The Zappos management has instilled these ideas by living them also. Every employee can recite these two statements along with the core values. One employee on the YouTube video “Zappos Company Culture” stated that the core values have become part of her values even outside of the company as she had found $40 that had been left in a cash dispenser and it dawned on her that she needed to turn it and “WOW!” the customer who had left it. Another employee on that same video stated that he represented the company in the office and outside in the world, so he lived the core values everyday all day (Gallucci, 2011). The Mission and Vision statements are displayed along with the core values on huge banners throughout the facility. Management seems to have brought a family-ness between the employees and allowed them to bond together in mission to become the best internet option for the customers. Zappos employees state that the management believes in taking care of the employees first. This philosophy spills out over to the customers in service excellence. Employees are empowered to make decisions without customer approval in the way of gift baskets, or thank-you cards for people whose

The answer that Jeff Bezos gave was that Amazon was interested in Zappos because of the unique culture of the company. The other reasons may be:

In conclusion, Zappos has challenge the mindset and traditional boundaries of today’s work environment. Zappos success starts from within the company and branches out. Tony’s way of operating his business and personality along with the right decisions the company has made makes it one of the most interesting companies of todays time. When you take care of your employees the rest takes care of its

Zappos.com owns a consistent share of shoe buyers’ market and maintain a solid and prominent position in online retailing. Although the numbers suggest that the company serves the US market like no other company, an expansion of its current share should be considered. Even thou the investments that this would require, we agree that Zappos could expand and build a stable source of competitive advantage by producing its own shoes line, followed in the future by it’s own shoe related wear line.

Zappos.com owns a consistent share of shoe buyers’ market and maintain a solid and prominent position in online retailing. Although the numbers suggest that the company serves the US market like no other company, an expansion of its current share should be considered. Even thou the investments that this would require, we agree that Zappos could expand and build a stable source of competitive advantage by producing its own shoes line, followed in the future by it’s own shoe related wear line.

Place is in regards to distribution, location and methods of getting the product to the customer. This includes the location of your business, shop front, distributors, logistics and the potential use of the internet to sell products directly to consumers.

Zara is a Spanish clothing and accessories retailer based in Arteixo, Galicia. Founded by Amancio Ortega and Rosalia Mera in 1975, it is the main brand of the Inditex group and also the world’s largest apparel retailer (Inditex). It is one of the first store’s to showcase low-priced look alike products of high-end clothing brands. Later on, it was viewed as an ‘instant fashion’ company as it revised its logo, manufacturing, and distribution process along with improvements that included information technology and the use of designer groups instead of individuals. Beauty, clarity, functionality and sustainability; over the years it has remained loyal to its core values expressed in these 4 simple words. With its current portfolio of 2,169 stores worldwide, Zara generated revenue of about US$15.9 billion in 2016. Its target market is young, price-sensitive, and highly responsive to the latest trends (Harbott). They hold a strong competitive advantage over other retailers because they don’t define their target market on the basis of age or lifestyle segmentation, providing them a relatively broader market to target.

From personal experience I know they stay true to their values. The do deliver WOW through their FREE expedited shipping on all items; most of the items qualify for FREE overnight shipping as well. Fun, adventures, and creativity is obvious from their website and operating practices. Growth and learning is constantly rewarded and requested. They take consideration from employees and customers. Zappos has continued to operate while staying true to their core values. The next time you’re in the market for a new pair of shoes, heels, etc. give Zappos.com a shot, you won’t be disappointed.

Market Segmentation This document prepared and presented by Business Resource Software, Inc. Market Segmentation The purpose for segmenting a market is to allow your marketing/sales program to focus on the subset of prospects that are "most likely" to purchase your offering. If done properly this will help to insure the highest return for your marketing/sales expenditures.