? Contents Executive Summary3 Introduction4 Introduction to Chosen Company4 Online Branding5 Online Branding of Yoox. com6 Ease in Using Website7 Ease in Using Yoox. com8 Role of e-Commerce in the Success of Yoox. com10 Conclusion11 Recommendations12 References13 ? Executive Summary E-commerce has changed the business style in the recent years. More businesses are moving towards selling their products online through websites. This paper examines the e-business strategy of Yoox. com, a fashion e-tailer that sells its products through website online.
I wanted to explore the online branding strategy and ease of use of the company website. For this purpose, I reviewed literature about online branding and ease of use of website. In line with this literature, I analysed both the areas of the company and found that the company is using most of the aspects of the online branding except it lack in providing the customers with a facility to leave their feedback about different products. While analysing the company website, it was noticed that some pages of the website have different navigation and lack in providing search facility for the customers.
At the end of the paper, it has been recommended to Yoox. com to allow the customers to leave feedback about different products as it will make the company more customers oriented. Furthermore, I have recommended Yoox. com to use same navigation in all the web pages and provide search facility to the customers in all the pages of the website as it will make the use of website very easy. ? Introduction Liao & Cheung (2002) state that in the last few years, technological advancements have played a major role in the changes in business.
They believe that due to improvements in technology, most of the businesses have updated their marketing, management, customer services systems and the manufacturing processes. Chaffey (2006) says that internet is a source that links a number of computer machines in all the countries. Similarly, Fraser et al. (2000) have stated that with the use of internet, different businesses can use a range of information systems that help in improving the overall performance of the business. The most useful information system mentioned by them is World Wide Web which has completely changed the business styles all over the world.
They believe that with the help of this information system, a business can open a global system while based in one region. Chaffey (2006) says that e-commerce is the most useful source of running business with the help of internet. He says that a business can buy and sell different products through its e-commerce. He further states that with the help of e-commerce, a business can reach its customers and suppliers directly and it helps a business to improve its relationships with the customers as well. This paper examines the e-business strategy of Yoox, an online retailer.
For this purpose, I have selected two activities of the company namely, online branding and customer relationship management. Introduction to Chosen Company There are millions of businesses running their business online. In this paper, I have chosen Yoox. com. The company started its business in Italy in 2000 and has its offices in Japan, USA and Europe. It has its logistics centres in the same countries as well and sells its products in 67 countries of the world. The company specialises in selling different fashion products uch as clothes, shoes etc. Yoox. com innovatively promotes its products online which are very difficult to promote in the tradition shops. The company mostly sells designer products and specialises in selling end of season products at lower rates. Online Branding Kotler and Keller (2006) have stated brand as a name given to a product of a company that helps the consumers to identify it from the rival manufacturers. He considers that the brand of a company plays an important part in improving the sales of a business.
Ind (1997) has mentioned that product and brand are different from each other. He thinks that the product is manufactured by a business in its manufacturing units but the brand is what the business sells in the consumer markers. Similarly, Fill (2005) believes that the major purpose behind making a brand is to enable the customers to differentiate the products from the rival manufacturers. He also thinks that brand of a business helps it to improve the sales and get competitive advantage in the market if the brand is successful.
Furthermore, he argues that a business can get more loyal customers if its brand is successful in the market as due to successful brand customer satisfaction is increased which makes the customers to be loyal with the business. Similarly, Gelder (2003) thinks that a business considers a number of factors before making a brand in order to ensure that this brand can create value for the customers and ultimately result in higher customer satisfaction and loyalty of the customers that provides the business with competitive advantage in the market.
McDonald and de Chernantory (1992) defined branding as a product or service that can easily be identified by a customer easily due to certain features that distinguish it from the same products or services made by the competitors. They believe that there are three characteristics in a brand should usually satisfy. First of all, they believe that a brand should match the consumer perception as without this characteristic it is very difficult for a brand to be successful in the market. Secondly, they think that added values in the quality of a product always influence the consumer perception about the brand.
Finally, they believe that added values in the quality of a product should be sustainable. They believe that the success of any brand is dependent on all these characteristics and if a company meets these requirements in launching a brand, it is very likely that the company will be successful in the market. Online Branding of Yoox. com In order to explore the online branding strategies of Yoox. com, I have analysed the company on the basis of information given on its website. For this purpose, I have analysed the company to find out if it is following the guidelines of McDonald and de Charnantory (1992) to sell its brand online.
Considering the first characteristics as mentioned by McDonald and de Charnantory (1992), Yoox. com is offering a number of products online but it does not offer any feedback service for the customers. The leading e-tailers in the world such as Amazon. com (see Amazon) provide the customers to have their say about the products which helps the manufacturers to align their products according to the customer perception. McLean-Conner (2005) says that a business can become customer oriented by allowing its customers to leave their reviews about the products offered.
The second characteristic as mentioned by McDonald and de Charnantory (1992) is added values in the quality of the products. This feature is provided to the customers in addition to the price they pay for the product. Yoox. com facilitates its customers to add the products to their dream box and come back to the site later. In addition to this, the company offers free standard delivery that takes from 4-6 days. This free delivery is mostly on promotion as normally standard delivery is ? 5. 50. Furthermore, the company offers different packing boxes, most of which are free and some fancy boxes are sold at lower prices.
In light with the added values provided by Yoox. com, we can see that the company is offering a number of facilities without any charges to its customers. McDonald and de Charnantory (1992) believe that added values in the quality of a product should be sustainable. The added values that we have reviewed in the above paragraph are being used by the company since a long time and are sustainable. On few occasions, the company even offers next day delivery free of charge as well. It is mostly at the eve of Christmas and Easter.
Sustainability in provision of added values has helped the company to gain loyal customers and get advantage over its competitors. In addition to the above mentioned strategies, Yoox Group has actively been doing partnerships with a number of companies. Such companies sell the products online but their websites are powered by Yoox Group. Marni. com is an online retailer which sells its products in Europe, USA and Japan. Their website is powered by Yoox Group. Similarly, diesel. com is another company which sells its products through website powered by Yoox Group.
A number of other companies are selling their products through the websites powered by Yoox Group (see YOOX Group-The Group). Ease in Using Website Nelson et al. (2009) has cited the work of Nielson (2000) who says that while shopping online, the customers will experience the website first before buying or paying for any goods. Nelson et al. (2009) say that ease of use of a website is one of the major elements that attract more customers to buy online. Gao (2005, pp 113) has mentioned about the framework for evaluating e-commerce website quality.
According to this framework, ease of use plays an important part in making the customers revisit the website in future. He believes that ease of use of the website counts towards the overall quality of the website and if a website is easy to use, it will make the customers visit it again. Similarly, Sears and Jacko (2008) have emphasized on the ease of use of a website as they believe that by making user friendly website, a business can improve human-computer interaction that ultimately results in more number of customers visiting the company’s website.
They have suggested few points that make a website easy to use by the users. They believe that keeping the pages simple makes a website attractive and easy to load as sometimes it takes a user too long to load different pages if there are so many graphics but at the same time they believe that graphics make a website beautiful and attractive as well. Similarly, Sobh (2008) says that there are a number of features in a website that make it easy to use for the customers.
He believes that while designing a website, it is vital to consider the easy navigation through all the pages of the website and the users should be able to navigate through every part of the website through every page. For this purpose, he has suggested that the navigation through web pages becomes easy if the look of every page is same. He also argues that provision of search facility in every page of the website makes a website easy to use as well. On the basis of above mentioned discussion, Yoox. com has been analysed below to explore the ease of use of the website. Ease in Using Yoox. com
In order to analyse the website for its ease to use, I have presented an analysis of different pages given of the website. At the end of this discussion, I have analysed the drawbacks in different pages in line with the guidelines mentioned by different authors in the previous section of this report. Home page (Index page) of the website is very clear and simple. The users have been provided with the links to navigate through any section of the website. The home page of the website opens the women products that show that the company displays its different segments in the website as soon as the user opens the home page.
The top navigation bar of the website displays links to all other sections of the website and the left hand bar provides links to the women section of the website. The home page provides the customers with a facility to search for any products in the women section. A snapshot of the home page has been shown below; The Men, Books, New Arrivals and Promotion section of the website have the same facilities as provided in the women section of the website but other pages of the website have different display.
In the kids section of the website, top navigation bar is similar to the women section but there is no left side bar for navigation in the section though clicking on any links in the animated links, a user can see the same settings like women page. In spite of the fact that Kids page of the website provides the user with an attractive page but there is no facility to search for any products unless the user enters into different sub-section by clicking on the animated links. Similarly, Vintage page of the website has entirely different settings and it uses very dark coloured flash file and the user can enter the web pages of Vintage section.
Similarly, special edition section of the website has entirely different settings than other pages of the website and it opens with some flash files. Overall, the first impression of Yoox. com suggests that the company’s website is very simple and attractive but in line with the guidelines mentioned by different authors in the previous section, some drawbacks can be noticed in the website. All the pages of the website are not similar and most of the pages have different navigation systems and display. Some pages are missing the search facility as well and some pages use the big sized pictures as well.
Role of e-Commerce in the Success of Yoox. com A number of researchers in past have mentioned about the benefits of e-commerce in the success of a business. Chaffey (2002), Chaffey (2006), Whiteley (2000), May (2000), Turban et al. (2000) have mentioned about the benefits of e-commerce in different companies such as Amazon, Dell, Kingfisher, e-bay etc. All the authors have said that e-commerce helps a business to improve its relationships with the suppliers and the customers which results in better revenues and better profit margins. Yoox. om is a pure play e-tailer as it is doing its business through internet only though it has its warehouses in different countries to ensure that the deliveries are carried on smoothly and in an efficient manner. Source: Yoox Group- First Quarter Results 2010 The figure above indicates that the number of customers who have visited the Yoox website during the first quarter of 2010 is more than those who visited during the same periods in 2009. Similarly, the number of orders has increased by 112,000 during first quarter of 2010 as compared to the same period in 2009.
It indicates that the company has gained significant success in the market in terms of the number of orders placed. The figure shows the net revenues by business line of Yoox. com. It is evident from the figure that net revenues of Yoox. com have increased significantly in the first quarter of 2010 as compared to 2009. As compared to the same period in 2009, net revenue of Yoox. com has increased by 43. 4% during the first quarter of 2010. From both the figures, it can be seen that the company is showing sustainability in its strategies and getting more customers every day.
It gives clear indication that Yoox. com has improved its business in the times when majority of the businesses in the world were struggling due to the adverse effects of recent financial crisis. Conclusion The purpose of this study was to find out explore the e-business strategies used by Yoox. com. For this purpose, I analysed two areas of the company namely, online branding and ease in using the company website. I conducted this study by reading different authors work and comparing it with the practise used by Yoox. com.
The results have shown that the company is selling its different brands in a successful manner but like the leading e-tailers of the world such as Amazon, the company does not provide the online reviews of the customers in the website. Secondly, the company’s website is mostly easy to use. Only problems that have been noticed in line with literature are relevant to its navigation and search facility as some pages of the website have different navigation and few pages are missing the search facility for the customers. Recommendations After conducting the Yoox. om website study, some recommendations have been given below. Yoox. com is offering a number of products online but it does not offer any feedback service for the customers. Leading e-tailers of the world offer the customers to leave their feedbacks as according to McLean-Conner (2005); a business can become customer oriented by allowing its customers to leave their reviews about the products offered. Yoox. com can consider about adding this service in the website as it will help the company to align it according to the customer needs.
Yoox. com has different navigation in some of its pages. Furthermore, the company website does not offer search facility in every page. Sobh (2008) says that by making easy navigation through all the pages, a website becomes easy to use. Furthermore, he says that provision of search facility in every page makes a website easy to use. Overall, the website of Yoox is quite easy to use but the addition of these two features can further improve its ease to use. References Amazon, accessed at http://www. amazon. com/gp/search/ref=sr_nr_p_72 _0? h=n%3A1036592%2Cn%3A%211036684%2Cn%3A%21251277011%2Cn%3A2322792011%2Cn%3A2322796011%2Cn%3A2322805011%2Cp_72%3A1248855011&bbn=2322805011&ie=UTF8&qid=1275901780&rnid=1248853011, Last Accessed 03-06-10 Chaffey, D. , 2006, E-business and e-commerce Management, 3rd Edition, Pearson Education Ltd Fill, C. , 2005, Marketing communications engagement, strategies and practices, Pearson Education Ltd Gao, Y. 2005, Web systems design and online consumer behaviour, Idea Group Inc Gelder, S. , 2003, Global brand strategy, Kogan Page London UK Ind, N. 1997, The corporate brand, McMillan press London UK Kotler. P. Keller. K. , 2006, Marketing management, Pearson Education Ltd Liao, Z. Cheung, M. 2002, Internet-based e-banking and consumer attitudes, Information and management journal, 39(4), pp. 283-95 McLean-Conner, P. , 2005, Customer Service: Utility Style, PennWell Books Nelson, M. Shaw, M. Strader, T. 2009, Value Creation in E-Business Management: 15th American Conference on Information Systems, AMCIS 2009, Volume 36 of Value Creation in E-business Management, Springer Publishers
Sears, A. Jacko, J. 2008, The human-computer interaction handbook: fundamentals, evolving technologies and emerging applications, 2nd Edition, CRC Press Sobh, T. 2008, Advances in Computer and Information Sciences and Engineering, Springer Publishers YOOX Group-The Group, viewed at http://www. yooxgroup. com/en/company_profile/the_group. asp, last viewed 31-05-10 Yoox Group- First Quarter Results 2010, accessed at http://cdn2. yoox. biz/yooxgroup/pdf/Yoox_Group_1Q2010_Results_Presentation. pdf, Last Viewed 31-05-10