MBA Case Study
You are being asked to refine the pricing strategy for Zappos to drive 10% year-over-year growth for the upcoming summer season while maintaining current profit margins. Assume we are selling about 500 different brands across 10 different product categories (shoes, clothing, bags, accessories etc.) on Zappos. For most brands and categories sales follow a seasonal pattern, meaning demand for spring/summer will ramp up in March, culminating in April and May, and then trailing off over the summer holidays. Various holidays present an opportunity for marketing, as they typically see increased demand. The season ends around Labor Day and back-to-school sales, which is also when fall/winter product starts to sell.
Zappos’ customers roughly fall into these segments: