Marketing Plan (Case Study)
Executive Summary
1GlobeMarket.com is a fresh internet business (on-line store) founded on November 06, 2010 by Rudiana Carcani, which will be supplied through drop shipping. We will launch by selling electronics, cosmetics and dietary products and extend our inventory with supplementary in demand items. The store is currently under construction; however it will be operational and opened to the general public by June 06, 2010. At this point, we have hired several subcontractors to assist the execution of this project by building the website, architecting the front and following pages of the online store, as well as have secured contracts with two major drop shipping companies. 1GlobeMarket.com will be held as an S-Corp. The proprietary of the 1GlobeMarket.com, is mother and a wife who immigrated to United States ten years ago. She is been in charge of administrating Property Management companies since 2003. In few months she will be graduated from the accredited Keiser University receiving her Masters on Business Administration. While the founder will hold the position of CEO, her business partner Robert Bezeau will be named the General Manager and HR of the company. The companies’ headquarters will be located in Orlando, Florida, USA. We are on mission to facilitated the shopping process for millions of people not only within USA, but worldwide by creating a one-stop, on-line global market, offering our clients competitive price, even a chance to negotiate the price. 1GlobeMarket.com (Objectives): Some of the objectives would be: a- Guarantee an easy navigation of our on-line store, b- Insure an easy access to our store from client’s worldwide, c- Provide the largest verity of items at aggressively competitive price, d- Offer our loyal premium clients a chance to negotiate the price. At first we will focus our attention on United States and Europe market, with the intent to expend to the largest countries: China, Canada, Brazil, and then the off to the undeveloped countries. With regards to costumers, we will attempt to grab the attention and interest of female age group 17- 60 and male age group 17-60. From the absolute on-line store, Overstock.com would be our number one competitor; however Amazon.com (which generated 19.4% of top 500 sales in 2009 (Internet Retailer, 2010) and eBay.com seem to be a great challenge to overcome even though they do not operate as on-line stores. Nevertheless, our target range is very broad and internet amplifies our options.
1GlobeMarket.com (Swift Depiction, Management and Products)
Swift Depiction of 1GlobeMarket.com
1GlobeMarket.com is a fresh internet business (on-line store) founded on November 06, 2010 by Rudiana Carcani, which will be supplied through drop shipping. We will launch by selling electronics, cosmetics and dietary products and extend our inventory with supplementary in demand items. The store (web site) is currently under construction; however it will be operational and opened to the general public by June 06, 2011. At this point, we have hired several subcontractors to assist the execution of this project by building the website, architecting the front and following pages of the online store, as well as have secured contracts with two major drop shipping companies ( Chinavasion, international and Doba, national). 1GlobeMarket.com will be held as an S-Corp. The founder will hold the position of CEO while the Robert Bezeau (the business partner) will be named the General Manager as well as serve as the company’s HR. Abex C.P.A. will be subcontracted to assist with Financial Statement Reports , Income Tax preparation, bookkeeping and payroll. Since we subcontracting specialist from different fields in “as needed” basis, we do not see the necessity of hiring more than three costumer service employees to assist our clients 24/7. In addition, for starters we will focus on free and inexpensive advertisement (Flyers, business cards, word of mouth, network, face book, twitter, my space, blogs, e-mails, YouTube), intending to hire a marketing specialist and invest on promotion mix tools in a near future.
1GlobeMarket.com (Mission)
The key task of the company would be: facilitate the shopping process for millions of people not only within USA, but worldwide by creating a one-stop, on-line global market, offering our clients competitive price, even a chance to negotiate the price1GlobeMarket.com (Objectives)
Below we depict a list of the main objectives; the company will be predisposed to go after with a full force:a- Guarantee an easy navigation of our on-line store (within 6 months hiring our own web design experts)b- Insure an easy access to our store from client’s worldwide (within 1 year, by boosting expenditures up to 20% on search engine and advertisement) c- Provide the largest verity of items at aggressively competitive price (extend the number of new national drop shipping, wholesale partners by 10%, and new international drop shipping, wholesaler partners by 15%. d- Offer our loyal premium clients a chance to negotiate the price (Allowing loyal clients a chance to save 20-30% compared to other clients).Management/Ownership
The proprietary of the 1GlobeMarket.com, is mother and a wife who immigrated to United States ten years ago. She is been in charge of administrating Property Management companies since 2003. In few months she will be graduated from the accredited Keiser University receiving her Masters on Business Administration. While the founder will hold the position of CEO, her business partner Robert Bezeau will be named the General Manager and HR of the company. The companies’ headquarters will be located in Orlando, Florida, USA.Products
Since a relationship is in place with one major electronic drop-shipping/wholesaler (China Wholsale), 1GlobeMarket.com will launch with electronic products such as Camera, Video recorder, GPS, Laptop, TV. iPod, MP3, Electronics for children. However, the research and negotiations continue with many other drop-shipping/wholesaler companies( Doba, Salehoo, Worldwide Brands, etcetera.) with the intent to expend our inventory and add departments such as; Jewelry & Watches , Fitness & Nutrition, Beauty Products, Gifts. In addition taking in consideration the current economy, we are exploring the idea of Thrift department (Women, Man, and Kids clothes as well as many other second hand items)Market analyze (1GlobeMarket.com as Part of e-Commerce Industry)
The 1GlobeMarket.com is a store that will mainly operate as a Business to Consumer (B2C) , also it will be function via internet and focus on attracting the attention of on-line consumers, which means it will be part of the overall E-Commerce industry. E- Commerce was first commenced in 1990 (that’s the time when internet was made available to commercial users), although its real astonishing potential was recognized, acknowledged only after 1995 (QFinance, 2010). The first two companies that discovered and successfully exploited the power of internet were: Amazon founded in 1995, by Jeff Bezos and E-Bay initiate also in 1995 by Pierre Omidyar (Amazon.com, 2010; E-bay.com, 2010). Since then, the E-Commerce has experienced a rapid unprecedented global expansion. Retailers (large and small) seem to enjoy their internet expansion and value the extra income linked to it. All big name retailers such as Wall-Mart, Publix, K-Mart, Overstock, and so forth, use internet to provide their clients with easy access to their products. Furthermore, internet is being a great tool and assistance for entrepreneurs and small businesses equipping them with the possibility to sell their specialized products and enter the E-Business without the necessity off a heavy investment (QFinance, 2010). The Success of E-Commerce is associated with the significant actuality of being an assistance and advantage to both: Consumers and E-Businesses. Even though, any traditional business can simply establish and expend to e-commerce, not all industries can benefit similarly. While retailers can establish cliental and considerable gains from the use of internet, other sectors, such as financial services, real-estate and Mortgage industry will be limited to internet benefits, simply because their products require enormous amount of information and face-to-face guidance /consultation. Indubitably, USA dominates the E-Commerce industry, reflecting the size of its economy. In 2009, the amount of on-line spending reached $155 billion and it is forecasted that this number will reach $250 billion by 2014. Compared to traditional offline retail sales, which had a yearly increase of 2.5%, on-line sales experienced a yearly increase of 11%. In particular, three products categories outshined: Computers, Apparels, and Consumer Electronics (Schonfeld, 2010) How the society benefits from e-commerce industry?
1- On – line stores and e-commerce industry are well known for their generous discounts2- E- commerce industry is environmental conscious. A research conducted by Heriot-Watt University in 2009, revealed that e-commerce industry is 24 times greener (no use of cars, buses motorbikes and so forth). 3- On- line stores persistently make shopping more and more convenient (Qfinance, 2010)How businesses benefit from e-commerce industry?
a-The start up cost is lowb- Business maintenance is also low c- The number of employees needed is significantly smalld- The number of potential consumers is extremely high e- Sales could take place any time, 24/7 (Qfinance, 2010) However, the intensity of cross-border sales has increased the complexity of the generous global e-commerce market. Even though United States is the leader of e-commerce industry, countries like China, India and Brazil are systematically increasing their potential internet sales. Only in 2008 on-line population of China increased by 41.9% (Qfinance, 2010)1GlobeMarket.com (Competition)
The number of on-line stores is extensively large, (nationally and internationally). If we refer to U.S. e-retailers though, from the absolute on-line store, our two major competitors known as the lions of industry would be: Amazon.com (which generated 19.4% of top 500 sales in 2009 (Internet Retailer, 2010) and eBay.com. We recognize that they will to be a great challenge to overcome even though they do not operate as on-line stores. In addition Overstock.com, Wall-Mart.com, and other traditional retailers who simultaneously sell their products on line as well will make the listed of our competitors. Nevertheless, our target range is very broad, our items are largely diversified, and also internet and gargantuan figure of internet users amplifies our options.Amazon.com
Amazon, which is a fortune 500 company and is considered to be the leader in e-commerce, was established in 1995 (Seattle, Washington) by Jeff Bezos. Company’s Total Revenue for 2009 reached $24,509.0 million, Cost of Revenue equaled $18,978.0 millions, Gross Profit was calculated to be $5,531.0 million and its Net Income was $902.0 million (MSN, 2010). Amazons success is linked to several key elements: *- Its Customer-Centric focus*- Its significant expanded product offerings*- Its international sites and worldwide network*- Its wised implementation of technological innovations which assist its client’s informed buying decisions (Amazon, 2010). eBay.com
eBay was founded by Pierre Omidyar in 1995. In its beginnings the company was known as “AuctionWeb” and then changed to eBay (short for Echo Bay). By 1996 the company architected a strong business team by hiring Stanford MBA and Harvard graduates. Currently, eBay has over 90 million users worldwide, and everyone can buy and sell virtually everything. As of 2009 the total value of items sold on eBay reached $60 billion ($2000 per second) (eBay, 2010). Furthermore, its total revenue was $8,727.36 million, Cost of Revenue $2,479.76 million, Gross Profit was calculated to be 6,247.6 million and Net Income was $2,389.1 million (MSN, 2010).1GlobeMarket.com (Strategy, Market Segmentation, and Target Market)
The company will mainly apply and follow the benefit segmentation (Peter & Donnelly, 2009, p. 69) because this approach is obviously market oriented. It will be our goal to identify consumer’s needs and wants with the final purpose to successfully satisfy them. However, 1GlobeMarket.com has come to the conclusion that will be beneficial and appropriate to market to more than one segment. It will be marketing team’s priority to consistently evaluate the market segments implemented and insure that they are: (a) Measurable (b) Meaningful (c) Marketable, (Peter & Donnelly, 2009, p. 77). But, like Datamonitor, (2010) stresses out: “With the number of people shopping online becoming highly saturated, on line retailers will have to change and evolve their online strategies. Driving loyalty and increasing spend per head across all age groups will become vital factors to ensure growth” At first we will aim a very wide target market, after evaluating and detaching the most active as well as most productive groups, we will then narrow the target markets down. Demographic segmentation: *Age: 14- 65 years old*Gender: Female and male*Income: Under $10,000 - $100,000*Social class: Lower class, working class, middle classGeographic segmentation* USA*Europe* ChinaBehavioral segmentation* Benefits sought (Peter & Donnelly, 2009, p.70)1GlobeMarket.com (Marketing)
The GlobeMarket team continuously and persistently researches specifically two markets United States and European market and targets the positional buyers. The above markets are targeted as the preliminary marketplaces for several reasons. First the founder obtains relative knowledge on those markets since she practically lived, experienced and researched both above depicted markets, and the fact that she speaks English and several European countries languages will be a great facilitating element on marketing, promoting the right products to the right target (Bombourg, 2010). Second, according to researches and surveys, approximately all Eastern European markets are for quite some times experiencing robust growth. Countries like Russia, Poland Czech Republic, Albania, and etcetera are in the way of building promising Business 2 Consumer e-commerce activities and are being a magnet for international e-firms. For 2010, in Poland, online retailers expect an 18% growth rate in revenue, in Slovakia a 25% growth rate in revenue and 50% in purchases. Countries like Albania, Bosnia-Herzegovina, Croatia, Montenegro and Serbia obtain a virtually virgin e-market that could be taped in (Bombourg, 2010).
In targeted countries we plan to: a) mail simple flyers listing most sold items per category, and effortless direction to the web of our online store (in their language) b) send messages via social networks such as face book, tweeter, my space as well as place free adds in their sites c) use word of mouth, and our network d) place classified ads in free newspapers (conventional and on line) e) Place free adds with Craigslist, Backpage, Kijiji and additional free online classified boards
1GlobeMarket.com (Financial Projections and Plans)
Start up cost
Table: 1
Start up Expenses
Legal Office supplies Office equipment Design Website Other Total
$300
$100
$150
$250
$150
$350
$1300
Breakeven Point
According to Chart 1:
a-The breakeven monthly revenue = $450.00
b-The break even monthly units=3.0In other words we must sale at least $450 to cover our monthly cost and more than 3 units to assure profit (Plan for the Website)
For the online store to become accessible by shoppers, a website must be set up. This process starts by ordering a domain name. More than a few companies are in business of selling domain names; however we decided to purchase and register our domain through “GoDady.com”. The website needs to be hosted, thus after evaluating our options we chose HostGater.com to host our website. Among other reason (such as inexpensive and reliable), we determined to go with HostGater.com because they offer to assist in the process of designing the website. The offer eliminates the need and the expense of employing a part-time web designer. While searching and analyzing other on-line store websites, we observed that many of them were confusing and not easy to navigate, thus we advised the architect of our website to design a simple, well displayed, easy to navigate, functional web. (Exit strategy)
The start up expenses for this company are minimal (a maximum of $2,000), for that reason the risk is insignificant and if this business initiative happens to be unsuccessful, the consequences associated with its failure are limited to the stumpy start up amount. In case the business requires additional investments (above $5,000) without providing any profit, we will halt its operation.
On the other hand, if the business takes off, turns profitable and cost –effective, the proprietress will offer ownership to her daughter who shows both: interest and potential. Conclusion
Upon implementation of the marketing plan 1GlobeMarket.com will launch its operations and sales aiming to serve its clients, fulfill their wants and needs progressively, gaining a relevant position as well as become an effective, profitable, reputable e-commerce retailer
References
Amazon. (2010). About Amazon. Amazon.com Retrieved December 04, 2010 from: Bombourg, N. (2010). Reportlinker adds B2C e-Commerce and internet trends in 18 Eastern European Countries, September 2010. PRNewswire. Retrieved December 06, 2010 from: Datamonitor. (2010). e-Retail growth set to slow significantly. Datamonitor. Retrieved November 30, 2010 from: http://about.datamonitor.com/media/archives/4832eBay. (2010). eBay overview. eBay.com. Retrieved December 05, 2010 from:Internet Retailer. (2010). Trends and data. Internetretailer.com. Retrieved November 20, 2010 from: http://www.internetretailer.com/trends/MSN. (2010). Amazon.com Inc: Financial statement. MSN Money. Retrieved Decemeber 05, 2010 from: MSN. (2010). eBay Inc: Financial statement. MSN Money. Retrieved December 05, 2010 from: Peter, P., & Donnelly, H. J. Jr. (2009). Marketing Management. (9th edition). New York, NY: McGray-Hill/IrwinPRNnewswire. (2010)/ Reportlinker adds B2C e-Commerce and Internet trends in 18
Eastern European countries, September 2010.PRNewswire.com.
Retrieved November 26, 2010 from:
QFinance. (2010). E-Commerce industry. QFinance.com. Retrieved December 2, 2010 from: http://www.qfinance.com/sector-profiles/e-commerceSchonfeld, E. (2010. Forrester forecast: Online retail sales will grow to $250 billion by 2014. Techcrunch. Retrieved Novemebr 10, 2010 from:US Census Bureau. (2009). E-Stats. US Census Bureau. Retrieved November 4 2010 from:
Start up Expenses
Legal
Office supplies
Office equipment
Design
Website
Other
Total
$300
$100
$150
$250
$150
$350
$1300
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