Retail

Presented to:- Prof.
Krunal Joshi
Presented by:- Group no 2
Case study-1
E-bay
• Founded on September 3, 1995
• Type of site:- Online auction
• Founder:- Pierre Omidyar
• Headquarters:- San Jose, California, U.S.
• Area served:- Worldwide
• Slogan:- Connecting buyers and sellers globally.
• Come to think of it, eBay.
• What ever it is, you can get it on eBay.
• Shop victoriously
Que-1
Buyer’s perspectives
Advantages
• Price: items are usually cheaper on the Web because warehouse
and staff costs are lower, and because online shops want to attract
and keep customers.
• Convenience: shopping can be much easier on the internet. It can

be done at home, at a convenient time and be very quick.
• Wide choice: internet shopping allows you access to a wide range

of shops all around the world, some of which don't exist on the
high street. Online shops also usually carry a much larger stock.
• Quick delivery: most internet sites are able to deliver within a few
days.
Disadvantages
• Delivery: many sites still use traditional carriers and
don't deliver at night or at weekends. Often you end
up having to go and collect from a depot.
• Costs and returns: adding up transport and, if buying

from outside the European Community, tax and duty,
can often mean an item isn't as cheap as it seems.

• Returning a purchase often means having to parcel it
up and take it down to the post office.
• Cost of using the internet: although online access
is getting cheaper, many internet providers still
charge per minute. Browsing around a wide range
of shops can take as long as a traditional shopping
visit, so beware.
• Buying more: because everything is at the click of

a mouse, it's very easy to buy and spend more
then you intended to.
Seller’s perspectives
Advantages Disadvantages
Wider audience Low margin
Ease to sale Competition
Low capital required Informal
You can get worth of Chance of items not

item being sold
Que-2
Yes, It can be made.
Because,
Increasing number of internet users.
Increasing popularity of e-commerce.
Ease and connivance of shopping.
Wide spread use of credit card and e-banking.
Que-3
No, It may not withstand the competition
E-bay is 3rd in brand awareness
There is substantial traffic on amazon.com
Auction sites specializing in single category of
merchandise can be bigger threat to e-bay
Some internet websites enable comparison shopping.
How much for a good
smell?
Introduction
 Courtney’s, as upscale gift store
 It carried a sweet-smelling scent in a plastic bag with
attractive ribbon.
Courtney’s is the only store that carried it.
 Two years ago, he sold 300 pieces for $9.50 and stock
ran out 10 days before Christmas.
Last year, he sold 600 pieces for $9.95 and stock ran
out 5 days before Christmas.
Introduction (Conti..)
 This year Courtney wants to set up selling price for
that. As manufacturer has raised the price to $ 5.5.
Q-1:- What prices caused
Courtney’s charge?
Product cost.
Mark-up cost.
Q-2:- Which price would result in
the highest profit?
$10 or $12.5 ?
Q-3:-What other factors should
Courtney’s consider?
 This scent is the monopoly product.
 It attracts many people to the store.
 If Price would increased by 25%, people might
wonder and think twice to buy this product.
Q-4:- What price would you
charge, and how many units would
you order?
 Price would be $9.95 charged.
 1000-1100 units would be ordered.
Promoting a Sale
Q.1 Knowing that the company wants a mixed media ad
campaign to support this event, prepare an ad plan
for the general merchandise manager that cost no
more than $ 40000.
Advertisement Plan
 The big sale is in suburban Virginia, so all advertisement
should be focus on the area of Virginia and its surrounding
area.
 Advertisement starts before 15 days of president day

weekends.
 Advertisement should be there in all means i.e. print,

television and radio.
 Three advertisement in Local Northern Virginia paper.
 Eight spots of 30 seconds in 3 selected TV channels,

selected by survey.
 Advertisement in two radio channel i.e.

 One radio station, which appeals to broad general
audience of the aged 25 to 30.
 classical music station , which had wealthy audience
Q.2 Workout daily scheduling for all advertisement.
Ads in local northern Virginia paper

This is weekly news paper, so the ad in this newspaper starts
from two Sunday before the holiday and last ad comes on
the holiday as a reminder.
Ads in TV channels
Three TV channels are selected on the bases of their
popularity in that area and eight spots are distributed in
the ratio of 3:3:2
These ads are also starts from two Sunday ago and comes
respectively in the programme, which are famous in
holidays.
Radio station
There is saturation radio campaign, so the advertisement in
radio comes daily between the famous programme and it
starts from 15 days before the holiday.
Q.3 Work out the dollars to be devoted to each
medium.
Q.4 Justify your plan.
Thank you

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Presented to:- Prof.

• Convenience: shopping can be much easier on the internet. It can

• Wide choice: internet shopping allows you access to a wide range

• Costs and returns: adding up transport and, if buying

• Buying more: because everything is at the click of

Wider audience Low margin

Ease to sale Competition

Low capital required Informal

You can get worth of Chance of items not

 Advertisement starts before 15 days of president day

 Advertisement should be there in all means i.e. print,

 Eight spots of 30 seconds in 3 selected TV channels,

 Advertisement in two radio channel i.e.

Ads in local northern Virginia paper

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