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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Excerpts Contd...

A Different Kind of Customer Service

Most technology blogs and e-commerce analysts recognized that Woot's business model was successful, even if it went against the conventional wisdom that in order to succeed, a retailer had to offer customers wide product choice, and ensure availability.

Woot also disproved the notion that online customers came back for more purchases only if they were provided superior customer service. Woot's customer service was almost non-existent when compared to other online retailers who offered free shipping, generous return policies, and round-the-clock customer support...

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

Woot's Marketing

Initially, Wood advertised on the Internet, using the Google AdWords program. In addition, the company used occasional newsletters. Over time, though Woot continued its use of AdWords, it began using more elements of Web 2.0, which included blogs, online communities, podcasts, and social networks - in its marketing. It began informing customers about its daily deals through Twitter, on-site and off-site blogs, RSS, and even an iPhone application. Characteristically, Woot's advertisements used humor, with even the recession in the US coming in for some rather irreverent treatment...

Woot's Growth

Over time, Woot launched wine.woot.com (Woot Wine) and shirt.woot.com (Woot Shirts), with the same business model and similar features, and sold wine and shirts respectively, through them. Analysts felt that this was a clever way for the online retailer to maximize its growth potential by offering more than one product a day through different sites, without changing its basic business model...


Woot's success spawned a number of imitators, with some of them even imitating its distinctive copywriting style. According to some sources, as of 2009, there were around 300 'deal-a-day' websites on the Internet, some of them started by successful e-retailers looking for avenues to expand. Prominent ones included dillyeo.com and tanga.com. Rutledge appeared sanguine about the increasing competition. He said, "We're happy our concept is successful and we expect people to copy us."...


Exhibit I: Typical Sales Statistics from the Woot Community Section
Exhibit II: Excerpts from a Woot Newsletter
Exhibit III: Samples of Woot's Online Recession-Related Ads
Exhibit IV: Top 10 Companies in Inc. Magazine's List of Fastest Growing Retail Companies

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