Recommendation: To persuade the Zappos.com sell private label products to increase the revenue and decrease the transportation costs
Audience Analysis: The board of Zappos.com, Operation Department Manager, Marketing department manager. Accountants of Financial department manager.
1. Double-Digit annual sales decrease.
2. Blooming sales by selling private label products
3. Benefits and concerns of implementing this project
Zappos, world’s greatest online shoes retailer. Though we hit 1 billion in our annual sales last year, two years before we expected, we are now confronted with challenge to keep stable growth in revenue. our profit has been decreased slightly since we committed next day delivery. During the economic recession times, we have to make some change to conquer this problem. As Marketing department staff, my proposal is that we could produce and sell our private label products. we have good reputation and large customer network. We can raise our profit by produce and sell private label products
Let’s get started with the problem
A. Double digit sales decrease during the economic recession times
1. During the economic recession times, our revenue remain growing slightly, however our growth rate has been decreased rapidly. Let’s see the chart of our annual sales growth rate since 2001-2009.
2. Since many brands sell Canadian distribution rights to other partners, we can not sell these brands on its Canadian site. As a result, we can’t set a distribution center there to achieve substantial volume.
1. Selling private label shoes which are designed in US headquarter, manufacture in China.
2. Corperate with Chinese local factory to sign a contract to produce guaranteed qualified shoes.
1. Selling products from suppliers is less profitable than...