Marketing and Private Label Products

Topic Zapposs private label products Recommendation To persuade the Zappos. com sell private label products to out 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. Agenda 1. Double-Digit yearly sales decrease. 2. Blooming sales by selling private label products 3. Benefits and concerns of implementing this project 4. conclusion I. Introduction Zappos, worlds greatest online shoes retailer.Though we ten-strike 1 billion in our annual sales last year, two years before we expected, we ar now confronted with challenge to keep stable growth in revenue. our make has been decreased slightly since we committed next day delivery. During the economical recession times, we afford 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 ha ve good reputation and large customer network. We can raise our profit by produce and sell private label productsTransitions Lets get started with the problem II. Body 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. Lets see the graph 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 cant set a distribution center there to achieve substantial volume. B. Solution 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. C. Benefits 1. Selling products from suppliers is less(prenominal) profitable than selling private label items. If you can find a way to add 10 points of b orderline, youre going to have a bragging(a) success in that product line, says Schmid, chairman and founder of J. Schmid & Associates in Shawnee Mission, KS. Selling products from suppliers is less profitable than selling private label items.As we can see from the chart of Gross margin. 2. Selling private label supports a catalogs brand positioning. Having hard-to-find or unique merchandise sets you apart and this is especially important for a cataloguer D. Counters 1. To Manufacture private label shoes, Zappos will increase R&D expenditures. It might be a problem for companys operation money f low-spirited. 2. Another big concern of sell private label shoes is risk of bad reputation of private label shoes. But I have confidence in our product department.Transition I have demonstrated the current problem weve met and I listed the advantages of selling private label items, the cost and benefits we would gain if we do this project. And the last, the next steps to be taken for th is proposal. III. Conclusion 1. As we realized that our annual sales growth rate has decreased rapidly, also our gross margin has been maximized. Zappos should improve all aspects of its business to prepare for the difficult economic times 2. By outsourcing manufacture to China and designing in US, it can bring Zappos low cost, high quality shoes. . Final Recommendation As Board of Directors of Zappos. com, you should consider selling private label shoes to our customers. References 1. http//blog. minethatdata. com/2008/04/zappos-sales-trajectory-and-customer. html 2. http//bls. gov/fls/chartbook/section3. htm 3. http//blog. minethatdata. com/2009/09/zappos-profit-and-loss-statement-2007. html 4. http//blogs. zappos. com/blogs/ceo-and-coo-blog/2008/02/19/zapposcom-update-february-19-2008