Smartguy Case Study

SmartGuy

1. In which market does Smartguy operate? (10%)

Smartguy appears in B2C but also in B2B. They are only on the Internet and they don’t sell their own products. They are a webpage, with lots of brands that customers are able to buy through their service.

Smartguy has different webpages, SmartGirl, SmartKids, SmartGuy etc.
they have goods for everybody. Their philosophy is that their customers should get the same products as in stores but they should be 10% cheaper.

1. Account for their marketing strategies. (30%)

As mentioned in the PDF, Smartguy use lot of time on their marketing. They have different forms of marketing, and they use around DKK 50 million each year on their marketing.  

Most of their marketing is running online, since that’s where all of their customers are. The tools that they apply on their marketing are stuff such as, competitions, Google awards, events, sponsorship, banners, online advertising etc.

SmartGuy knows their target group very well, and Facebook is one of the best ways to attract customers. Facebook makes it possible to have a fan group that can get followers. SmartGuy posts everything from sales, new in, to events etc. They have over 200.000 followers on Facebook, and the advertising is huge, if someone buys something they like it on SmartGuy’s site, then it gets shared with others who what you’ve bought and so it goes on to others, that’s free virtual advertising.

SmartGuy has since 2003 used TradeDoubler as a sales promotion, and through the past years, they have built a strong relation to TradeDoubler. TradeDoubler is one of SmartGuy’s most important marketing channels, and it’s a way they get to earn lots of money through. Google has taken the lead over TradeDoubler, and nothing has changed with the cooperation between SmartGuy and Google.

And beside of all that SmartGuy have weekly newsletters for each of the five Smart-Brands. Through these newsletters that comes out every week, customers get a chance to see events, competitions, trends, sales etc. It’s a way that all the customers can get updated on what’s new / old, what to buy, fashion trends and special offers.

1. Make a value chain analysis. (30%)

1) Inbound Logistics: They create value for customers. They sell goods that already are made they aren’t making the goods themselves.
But they aren’t producing anything themselves. Therefore there isn’t that much to say about their production. They focus more on creating value for customers in other areas.

2) Operations: Denmark if where the head courter is. SmartGuy cooperate with brands such as Tommy Hilfiger, Nike, and Armani etc.
They get purchase their goods from companies around EU.

3) Outbound Logistics: SmartGuy pack orders every single day. They want to give their customers the best and fastest service they can. The goods that you’ve bought are delivering within 2 days. You are able to change your order, only if SmartGuy haven’t already packet your order.