Woot.com - Selling to Geeks

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Case Details:

Case Code : MKTG223
Case Length : 15 Pages
Period : 2007-2008
Pub Date : 2009
Teaching Note :Not Available
Organization : Woot, Inc.
Industry : Online retailing,
Themes: Business Models / Strategic Marketing / Online Consumer Behavior
Countries : US

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Introduction Contd...

On the other hand, the company did maintain an online blog, and also created an online community, where registered members or 'wooters', could post their opinions about the products it offered. The e-retailer expected potential customers to learn about a product's pros and cons by reading the opinions of the wooters, and to make more informed purchasing decisions. The wooters also provided free word-of-mouth publicity for the site.

Woot was a success, and according to Rutledge, it managed to completely sell off about 80% of the products it offered. Over the years, it extended its business model by opening more sites like wine.woot.com (Woot Wine) and shirt.woot.com (Woot Shirts), which sold wine and shirts respectively.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

It also entered into a partnership with Yahoo! Inc. (Yahoo!) to create the website sellout.woot.com, which offered a Woot-type daily deal that was different from the one being offered on Woot.com.

Woot's business model was widely praised. It was considered the pioneer of the "deal-a-day" business model on the Internet, and soon had numerous imitators.

As of 2008, Woot was believed to be the fastest growing private retail company in the US, with revenues growing from US$ 2.3 million in 2004 to US$ 117.4 million in 2007 - a growth of almost 5,000%.5

Excerpts >>

5] Rs. or INR refers to Indian Rupee. As of June 25, 2009, 1 US$ ≈ INR 48.60.

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