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eBay Inc.

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by

Lavanya Narendran

on 26 September 2013

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Transcript of eBay Inc.

Internet Auction Websites
History of
Marketing Strategy
Competitive Analysis
SWOT Analysis
Recommendations
Strengths
Weakness
Opps.
Threats
Brand Name
Paypal Integration
Business Model
Online Fraud
Technology
Growth Strategy
High Fees
Increased e-shoppers
Global Expansion
Acquisitions
Rising competition
Online Security
Overall inflation
VS
Deal-prone consumers
Offers user-to-user sales
Online marketplace
Variety of products
Perceptual Map

High convenience and functionality
Low customer service and satisfaction lacking
High convenience and functionality
High customer service and satisfaction

High customer service and satisfaction
Low convenience and functionality

Low customer service and satisfaction
Low convenience and functionality
Findings
Amazon is the industry leader with an average score of 4.25

Customers most closely equate eBay to Google

eBay scored lowest* in
*among top competitors
Vendor reliability
System reliability
Customer Service
Overall desirability


Our Respondent Pool
Frequency
High use customers: 1.14 (7+ purchases/season)
Average use customers: 3.42 (3-5 purchases/season)

Age
High use customers: 2.42 (25-34 segment)
Average use customers: 2.94 (35-44 segment)

Education
High use customers: 3.14 ( up to Vocational Training)
Average use customers: 3.78 (up to Associates Degree)


Key Takeaways

eBay has a great reputation among frequent users (17% of respondents)
Casual consumers (63% of respondents) do not equate eBay with great customer service/satisfaction factors
eBay must address this perceptual gap
Old eBay
Low Vendor Reliability
Online Fraud
Outdated Technology
New and Improved eBay
Sophisticated buyer protection programs with Paypal acquisition

Improved user experience
- View up to 3 years of past purchases
- Sort, view and compare your watch lists

Customer Support Center
Learning Center Resolution Center eBay University

Daily deals to appeal to bargain shoppers

Innovative mobile apps

Old Vs. New eBay
No one knows
about these changes!
The Problem?
Direct Marketing Strategy with Optimal Marketing Communications
Virtual test market
Consumers interact with new site and its capabilities in a controlled setting

eBay can observe the behavior of consumers

Gauge the success of the features consumers deemed most important
Most Important Attributes:
- Vendor Reliability & Security
- Products and Services Offered
- Ease of Use

Drive Product/Website Trial
$10 off coupon for new or returning customers

Free Shipping for 1 week only
Questions?
350 Companies in the US; Over 500 Worldwide
Generally C2C or B2C
ebay is the largest leading site
China: Taobao (Alibaba Group)
Argentina: MercadoLibre
How it Works!
Sellers list their items and buyers bid!
Auction software monitors bids and determines a winning buyer at the of the auction period.
Third party facilitates payment or shipping between the buyers and sellers.
Popular Categories
Collectibles
Antiques
Consumer Electronics
High-End Merchandise
Real Estate
Yachts
Cars
Competition includes online retailers, liquidation sites, retail stores, online classifieds and social media.
Top Companies and Financial
eBay...the beginning
Peirre Omidyar
"Death Bar" logo
In 1995 eBay.com started as an auction site under the name AuctionWeb
"Experiment"
sold a broken laser pointer to a collector for $14.83
2012
112 Million eBay.com users
$175 Billion in revenue combined
Today
31,500 employees

...now
Targeting
eBay has millions of items like collectibles, appliances, computers, equipment and many more miscellaneous items listed, bought or even sold on a daily basis.
Recently announced it had begun testing a new advertising program that uses the data eBay collects on its customers to develop targeted ad campaigns for third-party companies
Also recently shifted their target to include the Under 18 consumer
Positioning
By capturing the mind of the consumer, eBay now occupies a strategic position that must be viewed as virtually
As eBay CEO Meg Whitman puts it, “If Buy.com goes down,you can still go to Circuit City” but should eBay crash there will be no other place to go. The current substitutes for eBay offer much fewer buyers and products for sale.
Impossible to challenge 80% of the online-auction market
Segmentation
From the entire wide range of items available, eBay originally was set up to promote and sell antique and collectibles.

Another key market segment for eBay would be the car and motor enthusiast.
Intellectual Property
Websites generate revenue through selling space and collecting service fees from sellers.
Sites may specialize in a certain market such as rare coins.
Industry Snapshot
Source: Hoover's online
Timeline
1995 AuctionWeb
1996: creates fees for selling
and Feedback Forum
1997: changes name to
eBay (echobay)
800,000 auctions a day
1998: public stock offering
1999: April bought Butterfield and Butterfield
June, 22 hour brownout
2000: starts many ventures and acquisitions: Disney GO Network
Autotrader.com
2001: Buys half.com, French site and Japanese site
2002: buys Paypal
2004: 25% stake in craigslist.org
2005: buys rent.com, skype, and venture with Yahoo.com
2010: starts mobile app for iPhone
2011: buys GSI Commerce
2012: sells Rent.com
Full transcript