Marketing and Private Label Products

Topic Zapposs insular recording say products good word To persuade the Zappos. com cuckold one-on-one label products to increase the taxation and decrease the transportation costs Audience Analysis The board of Zappos. com, motion Department Manager, Marketing department manager. Accountants of Financial department manager. Agenda 1. Double-Digit yearly sales decrease. 2. Blooming sales by selling cloistered label products 3. Benefits and concerns of implementing this project 4. conclusion I. Introduction Zappos, worlds greatest online office retailer.Though we hit 1 billion in our yearly sales get going away year, two years before we expected, we are now confronted with challenge to reserve stable issue in revenue. our profit has been decreased slightly since we perpetrate next day delivery. During the economic recession time, we take for to make or so change to conquer this problem. As Marketing department staff, my proposal is that we could plead and sell our priv ate label products. we have good reputation and boastfully customer network. We deal raise our profit by produce and sell private label productsTransitions Lets get started with the problem II. bole 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 chart of our annual sales growth rate since 2001-2009. 2. Since many brands sell Canadian statistical distribution rights to other partners, we can not sell these brands on its Canadian site. As a result, we cant set a distribution nub there to achieve substantial volume. B. Solution 1.Selling private label apparel which are designed in US headquarter, manufacture in China. 2. Corperate with Chinese local factory to sign a contract to produce guaranteed competent post. C. Benefits 1. Selling products from suppliers is less profitable than selling private label items. If you c an find a way to add 10 points of margin, youre going to have a big success in that product line, says Schmid, electric chair 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 unmatched merchandise sets you apart and this is especially important for a cataloger D. Counters 1. To Manufacture private label shoes, Zappos will increase R&D expenditures. It might be a problem for companys operation cash flow. 2. another(prenominal) big concern of sell private label shoes is attempt of bad reputation of private label shoes. But I have confidence in our product department.Transition I have demonstrated the catamenia problem weve met and I listed the advantages of selling private label items, the cost and benefits we would acquit if we do this project. And the last, the next steps to be taken for this proposal. III. Conclusion 1. As we realized that our annual sales growth rate has decreased rapidly, in like manner our gross margin has been maximized. Zappos should improve all aspects of its business to prepare for the nasty 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