Topics: Marketing, Pricing, Customer Pages: 10 (2955 words) Published: December 5, 2012
Strategic marketing Assignment 2 Develop marketing strategy| |
Tutor name: Bronwyn HIGGSTutorial Time: Wednesday 10am-11amTeam member:Geyang Chen (355513)| Xiaofei Meng(387415) |
Sitong Liu (387468) | |

1.0Executive Summary2
2.0 Marketing Objectives2
3.0 High-level Strategic Alternatives3
4.0 Marketing mix strategies5
4.1 Product Strategy5
4.1.1 Current product/service development5
4.1.2 Future Service Development6
4.2 Price Strategy7
4.2.1 Factors Affecting Pricing Decision 7
4.2.2 Tactical approach 8
4.2.1 Long-run response9
4.3 Communication strategy9
4.3.1 IMC objectives9
4.3.2 Targeting and positioning of the brand9
4.3.3 Advertising message 9
4.3.4 Marketing and communication strategy 10
5.0 Conclusion11
6.0 Appendix12
6.1Situational Analysis in Assignment 112
6.2 Opportunities and Capabilities13

1.0 Executive Summary
This report provides the market strategy development of prospective growth of Zappos, an American online shoe retailer with unremittingly focused on the consumer service. Based on the situational analysis we did before, the most knotty problems are dominance enhancement (short-run) and has sustainable competitive advantages. Before improving, high level strategy is designed in terms of high differentiation, approachable competition strategy and product development. To achieve this, marketing mix (4ps) is chosen (since Zappos is an online retailer company, despite the distribution strategies, this assignment will focus on pricing, product and communication). After series of analysis and evaluation, we found that price should be retained at premium in order to differentiate from competitors by better intangible benefit. Product and service is expected to be further improved by product expansion and technology innovation so that more value can be delivered to customer. Regarding to communication channels, new strategy should high rely on process like online ad, social media, etc. to make a buzz effect of Zappos brand.

2.0 Marketing Objectives
Presently Zappos has achieved inconceivable performance in online shoes retailing. Despite its massive growth, remains unremittingly focused on the consumer. After a series of comprehensive analysis, however, we found that the company still own some latent imperfections in terms of sustainably developing in the future (Appendix6.0.1). Focusing on meeting the unsatisfied market dominance for the impending progress, the objectives for the company are: * Increase awareness in the global target audience by 40 percent in fiscal years 2012-2014. * Inform the target audience about features and benefits of Zappos and its competitive advantage over our competitors' services, leading to a 5 percent increase in sales in fiscal years 2012-2014 * Building more buzz around the Zappos brand and its extreme customer service in the global market base. * Focus on existing customers.

* To position as an online service leader worldwide. * Build brand equity in the long term

3.0 High-level Strategic Alternatives
Strategy and objective is a pair of dynamic dual. After setting the goals for the company, several approaches that Zappos can select: Strategy 1: Continue with FOCUS strategy, highly target at young generation. Frontally attack competitor on claiming better performance to win market share. Use existing product to get more profit out of existing category customers. Strategy 2:Switch to DIFFERENTIATION strategy, make both product and customer service more unique. High competition is expected from company like Gap and Footlocker, Zappos basis for competition is going to have market signalling. The market performance is grown by new product development. Strategy 3:Switch to...
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