Baby-Center Case Study Solution
Negative Views:
- Despite the similarities in the preferences of consumers in the UK e-zone and the US, the potential of revenue generation was smaller in comparison to other e-zones.
- However, the marketing information was distributed, the organization was not featured prominently on Yahoo and lacked any banner ads for key words.
Strengths:
- Baby-center was the largest information source for new and expectant parents with around 1 million emails, 180,000 registered users, 560,000 unique users, and 15 million page views each month.
- To ensure the quality, the company hired pediatricians and obstetricians to act as contributors and advisors to write and verify web content.
- The online store of Baby-center provided gift services such as gift guides, gift certificates, and gift wrapping based on the age of the child.
- The offering of interactive tools assisted parents in planning and making decisions and calculate the amount to be saved for the college education of the children.
- The key component of the content strategy – personalization addressed the needs of the parents based on their concerns.
Weaknesses:
- Despite the launch of 2000 baby products, the online retail sale of BabyCenter was around one percent of the total retail sales in the United States.
- The year 4 frequency of purchases per customer was estimated to be around 1.1x which is relatively low in comparison to other players in the market like eToy i.e. 2.0x.
Recommendation:
Based on the weaknesses and challenges faced by Baby-center, the organization is recommended to promote its gift services more and expand the product mix by the introduction of private label products. This would allow the organization to increase its online retail sales. Similarly, the extended approach to marketing and content generation would assist in expanding its reach to the target audience. The increased number of users on the website provide an opportunity to increase its sales by announcing the most active member in the bulletin boards each month and rewarding with some of the necessary baby-care products. This would assist in grabbing the attention of most of the customers. Similarly, increased use of site by the users would result in increased advertising watch time which would lead to increased revenue generation.(Jones, 1995)................
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