Big Skinny Case
Answer 1: Pursuing sponsored search strategy has been proved beneficial for BigSkinny.To attract a large range of customers, 1Big Skinny is bidding for a variety of keywords. These keywords differ in value in terms of conversion rate but overall they have been effective in increasing brand awareness among internet surfers.1From Exhibit 4 it is very clear that total number of clicks were around 2063 (Total clicks= impressions * click through rate = 42,986 * .048) that means odds of an ad getting click are quite high. It also signifies that sponsored search is working as a good facilitator for Big Skinny to make customers visit its website.Considering average 1price $20 and conversion rate .05, Big Skinny was able to generate the good revenue of $2063 (Assuming total sale=total clicks* conversion rate* average price)from sponsored search method. We believe that overall sponsored search strategy has been fruitful for Big Skinny.
We would encourage Big Skinny to increase its bid for Big Skinny because its number of impression is 2,452 which should be more considering its conversion rate, which is highest among all keywords. Also, cost per conversion is not too high for this key word. Another keywords for which Big Skinny could bid higher is ultra-thin wallets. Seeing its total no of impressions, CTR and conversion rates are pretty high. Higher bidding might help to make it easily visible and to attract more customers to Big Skinny’s site.Big Skinny should lower its bid for leather wallet for two reasons. First, even though number of impressions for this keyword is high its CTR & conversion rate are comparatively too low and cost per conversion is highest among all other keywords provided. Second, Big Skinny actually does not provide pure leather wallet but offers wallet with 1leather exterior with nylon microfiber interior.
Answer 2: After analyzing the case we think that Big Skinny should stay with existing distributors and focus their effort on building and
We would encourage Big Skinny to increase its bid for Big Skinny because its number of impression is 2,452 which should be more considering its conversion rate, which is highest among all keywords. Also, cost per conversion is not too high for this key word. Another keywords for which Big Skinny could bid higher is ultra-thin wallets. Seeing its total no of impressions, CTR and conversion rates are pretty high. Higher bidding might help to make it easily visible and to attract more customers to Big Skinny’s site.Big Skinny should lower its bid for leather wallet for two reasons. First, even though number of impressions for this keyword is high its CTR & conversion rate are comparatively too low and cost per conversion is highest among all other keywords provided. Second, Big Skinny actually does not provide pure leather wallet but offers wallet with 1leather exterior with nylon microfiber interior.
Answer 2: After analyzing the case we think that Big Skinny should stay with existing distributors and focus their effort on building and
References: 1Benjamin and Scott Duke (2012). “Online Marketing at Big Skinny”, Harvard Business School.2 Donna L Hoffman and MarekFodor. “Can you measure the ROI of your Social Media Marketing?” MIT Sloan Management review