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Paper On Zappos Marketing Tactics

3389 words - 14 pages

Marketing 3490, Summer Session 2July 21, 2009In 1999, a man by the name of Nick Swinmurn was searching through footwear stores in a mall for a specific pair of shoes. One store carried the right size but not color, another carried the right color but not size. After searching to no avail, he decided to leave the store. This experience gave Nick Swinmurn the inspiration and motivation to start his own online shoe retailer, so that no one would have to go through that experience again. That same year, he quit his job and founded the goal of Zappos was to offer its customers "the absolute best selection in shoes in terms of brands, styles, colors, sizes, and widths." However, with the success the company has experienced over the last 9 years, the company's goals have taken a different approach. Zappos has now altered its focus to providing its customers with the best online service, and not only in shoes but in virtually any department. By doing so, with such excellent execution, Zappos has become the biggest online shoe store and has grossed $1 billion in sales in 2008.In order to understand Zappos' dedication to providing its customers with the absolute best service, its important to take a look at the approach the company takes with its employees first. An interesting quote by the Vice President, Craig Adkins, accurately displays this approach; "We believe in treating the employees well first, then they treat the customer well." The President Nick Swinmurn and CEO Tony Hsieh have headed an unusual yet strong tight-knit relationship with its employees that demands loyalty by providing a fun and comfortable working environment.When an employee is hired by Zappos, regardless of their designated position, they must undergo a four-week training period in the call center, or "customer loyalty team", where they talk with customers and can get a good feel for the company's strategy and obsession with satisfying their customers. Not to mention the employees receive full salary during this period. Once the employees finish their training, Zappos does something that is unheard of in most businesses. They offer the new employee full payment for the hours they worked and an additional $1,000 bonus to quit on the spot. Why do they do this? Zappos believes that any employee that is willing to take the money and leave doesn't share the same core values, such as loyalty and commitment, that the company is structured around. By eliminating these "weak links," Zappos is ensuring that their employees are loyal to serving the company, and ultimately their customers.Zappos was first founded with the aspiration to offer its customers the biggest selection of shoes. So it's no wonder that the company reigns over all competition with an inventory of over 4 million pairs of shoes, not to mention that Zappos has expanded their inventory to include clothing, handbags, watches and sunglasses. However, Zappos' main source of business is...

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