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INTRODUCTION 1.1 Structure of this document

The structure of the e-commerce / e-marketing plan consists of:

Table of Content Introduction Structure of this document Business Introduction Situation analysis Introduction Analysis of the external environment Analysis of the internal environment SWOT analysis Objectives Introduction Business objectives Detailed objectives Tangible benefits Intangible benefits Critical success factors Strategy and Tactics Channel ? Product ? Market ? Processes and Structures ? Price and promotions ? Place in the sales process ? Resources and budget Introduction Project timeline assumption Tasks & Resources Headcount evolution to run our project Non-labor costs Total budget 1 1 2 2 2 Error! Bookmark not defined. Error! Bookmark not defined. Error! Bookmark not defined. 5 Error! Bookmark not defined. 6 6 6 6 5 9 Error! Bookmark not defined. Error! Bookmark not defined. Error! Bookmark not defined. Error! Bookmark not defined. Error! Bookmark not defined. Error! Bookmark not defined. 11 11 11 11 12 12 12 1

1.1 1.2

2.1 2.2 2.3 2.4

3.1 3.2 3.3 3.4 3.5 3.6

4.1 4.2 4.3 4.4 4.5 4.6

5.1 5.2 5.3 5.4 5.5 5.6

5.7 5.8

Month over month budget requirements Conclusion Measurement & Control Introduction business result Marketing result

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6.1 6.2 6.3

Business Introduction Guney leather was founded in 2002 in Istanbul after the crisis in Turkey. It was founded by two brothers Celal & Nedim Gleg and a financial partner. The two brothers already sold and had experience with the leather clothing sector about 10 years before 2002, but they got bankrupt during the crisis in turkey and they stopped their job in 2001. About 1 year later they wanted to start everything all over again from the beginning just relying on their experiences and since they did not have enough money they started Guney leather with a new business partner who did not have experience but had a financial power. The partner had the most percentage of company 50% and other two had 25% equally. In the first year, the aim was to enter into the market and survive. The company was striving not to make any lost at the beginning. The second year they tried to sell with a small contribution margin, that year their aim was to gain costumers that could be of more benefit to them in the future. After two years of foundation they moved the selling shop one floor above in the shopping center which is a better location, and as they could afford to pay more rent at that time therefore they would be able to sell more retail when compared with the last two years. There was an increase in the amount of products that were sold, but the profit margin was still insufficient for the next two years. They started to increase their price step by step, this was going on fine but the two founders had the lowest percentage in company and they did most of the job so they wanted to end their relationship with their business partner. Therefore about 6 years after they started Guney leather, they split up and continue their company just with the two brothers. They had some difficulties in the years of crises in Europe and a few years later they decreased the number of people in fabric because demand for leather decreased and a lot of small companies closed down their shops which made them to increase their profit margin as much as they can. Now the company still exists and has continued with one shop and one small factory. There are four people making the factory product. Now the companys aim is to keep their current customer, retain customers of companies that were closed and keep their profit margin as much as they can.

2 SITUATION ANALYSIS 2.1 Introduction

This chapter will provide an analysis of the 1. Analysis of the external environment 2. Analysis of the internal environment 3. SWOT analysis 2

EXTERNAL ENVIRONMENT POLITICAL FACTORS: The Turkish government encourages companies to trade and build a good relationship with the countries of north as Russia kazakhistan ,Turkmenistan and surrounding countries. Furthermore, they are continue to decrease the trade restrictions and tariffs Economic factors: Turkey is a developing country with 8 percentage in interest rates, however in the past this percentage was higher which resulted in companies having loans with the lower interest and the exchange currency such a the dollar. Turkey mostly trades with dollars. The dollar has increased and it now around 2 tl, which means that their profit is also increasing increasing comparing to last year when it was around 1. 5 tl. This has effected businesses and investors. Social factors: Turkeys population growing rates are above the average of Europian countries. Moreover the amount of young people living in Turkey is bigger comparing to other EU countries. Hiring a young employee in Turkey is less than in other EU countries. Technological factors:Turkey has not used for many years high technological equipments but nowadays innovation is getting more important. Turkey receives it innovation from companies from other countries such as companies from Germany or Japan. Having a (innovative) machine is expensive in Turkey ,nevertheless people are willing to spend more because of the higher production. Moreover, the government reduces its tax in order to encourage companies to produce and trade. Furthermore, with the latest technology, more qualified fake leather is being produced which have low prices. Environmental factors: Being in the leather business can be tricky, because leather is mostly used in the spring and autum. Therefore, the demand decreases in other seasons,which of course has a bad effect on companies.

INTERNAL ENVIRONMENT Current marketing approach: sales are done by the offline shop. The customer enters the shop and takes notes about the price and model and place their order. After returning to their home country, a call is made on the amount that is needed. When the money is received, the products are send by cargo. current internet presence: no internet presence current resources and skills: the skills of employees of the company are high, because these employees started for the company when they were just children. These employees know the origins of the company and have experiences every 3

step in building up the company. The company can have a maximum production of 120 products, and when there is a bigger demand more employees are hired or another factory is hired to meet maximum productions of 400 product per week. Processes and infrastructure for delivery: the company does not have a warehouse, because the products are displayed in the shop or the factory itself. Delivery is done bycargo. For booking system: An accountant is hired to keep the account but the owner deals with billings and orders. all staff and they are usually are not being kept in order to keep the tax low and for the some needs of factory there is a small cash . and for how many goods is sold by week and month there is not a legal paper like that but I kept when the season so if u need I can write them to u because about every year more or less its same.

SWOT Guney Leather

Strengths
Pricing Power: Customers are rebellious against price increases when it comes to switching to competing products, but if a company has pricing power, customers will continue using the companies products and services. Gney Leather has the ability to charge customers higher prices, because they have

Weaknesses
Weak customer service: hurts Gney Leathers reputation and which will result in customers moving to competitors, who are more respondent.

INTERNAL

build up a good relationship. Cost advantage: Lower costs lead to higher profits for the company, therefor a low cost market leader can undercut rivals on price.

Opportunities
Fragmented markets: provide many opportunities for Gney Leather to expand and increase market share. Fragmented markets have many small competitive who lack the cost advantages of larger companies Leveraging the balance sheet allows Gney Leather to quickly expand into other markets and products, especially in fragmented industries.

Threats

A bad economy: can hurt Gney Leathers business by decreasing the number of potential customers Mature markets: are competitive. In order for Gney Leather to grow in a mature market, it has to increase market share, which is difficult and expensive Subsitutes:The availability of substitute products hurts Gney Leathers ability to raise prices, because customer can easily switch to another product or service Change in taste: Consumers can change their tastes very quickly. Gney Leather depends on knowing which good and services consumers want.

EXTERNAL

OBJECTIVES Introduction This chapter explains what we want to achieve by bringing the e-commerce and e-marketing solution in place. We will cover Business objectives Detailed objectives 5

We will also have a look into the critical success factors to achieve this. Business objectives Our mission statement: Gney Leather mission is to provide quality leather clothing at a very low price where practically anyone with middle class income can afford to buy something Detailed objectives Tangible benefits We identify the following tangible benefit for Gney Leather: 1. Increase in sales; by adding this online channel which will attract more customers especially outside Turkey, there will definitely be more increase in sales than Gney Leather can achieve through the brick shops in Turkey. 2. Reduce the cost space/shop; all the different varieties of products do not have to be present in the shop. So they could be kept in a warehouse and when order is placed online, they will be picked up and shipped from the warehouse. Therefore, even if there will be more customers via the web-shop, there will not be any need for expansion of the brick-store. 3. Reduction of personnel; by selling most of the products online, it automatically leads to less dependent on sales person in the shop. So cost of employees will reduce.

Intangible benefits The following intangible benefits are identified: 1. Customer satisfaction; there will definitely be improved customer satisfaction for our customers that normally visit our brick shops as well as our new online customers. Existing customers will have the opportunity to view the products online first before visiting the brick store. And there will be varieties of products and opportunity to compare our products to others. 2. Company image; by adding online offering, there is hope that the image of the company and the traditional shop will improve. Critical success factors In order to achieve the companys objectives there is a need to accomplish the critical success factors. When Gney Leathers has the critical success factors written down it would be easier to respond to outside forces in bad times. This is because the staff is familiar with the critical success factors and that means that the staff is on one line and well informed. Gney Leathers does not have a big staff but still needs to have the critical success factors written down in order to grow and expand their market internationally. As they already have a big customer group from outside Turkey expanding internationally using the internet would be the next step. The critical success factors mentioned are: Sales volume, diagnostic accuracy and customer satisfaction. Critical succec factor nr. 1: Sales volume 550 leather jackets per month Gney Leathers sells an average of 100 leather jackets per week, which means an average of 400 per month. With our new approach we will expect this to increase to 550 per month. Critical succec factor nr. 2: Diagnostic accuracy Maximum of 2% returns per month For a small company like Gney Leathers the return policy would cost too much. Thats why we would like to have a maximum of 2% returns. This will be 11 leather jackets maximum per month.

Critical succec factor nr. 3: Customer satisfaction 50% second buy As for the last critical success factor we would like to implicate a customer list where all the customers write down their names. After a period of 2 years we would like to see that 50% of the customers that bought a jackets actually returns and buys another jacket.

Critical success factors In order to achieve the companys objectives there is a need to accomplish the critical success factors. When Gney Leathers has the critical success factors written down it would be easier to respond to outside forces in bad times. This is because the staff is familiar with the critical success factors and that means that the staff is on one line and well informed. Gney Leathers does not have a big staff but still needs to have the critical success factors written down in order to grow and expand their market internationally. As they already have a big customer group from outside Turkey expanding internationally using the internet would be the next step. The critical success factors mentioned are: Sales volume, diagnostic accuracy and customer satisfaction. Critical success factor nr. 1: Sales volume 550 leather jackets per month Gney Leathers sells an average of 100 leather jackets per week, which means an average of 400 per month. With our new approach we will expect this to increase to 550 per month. Critical success factor nr. 2: Diagnostic accuracy Maximum of 2% returns per month For a small company like Gney Leathers the return policy would cost too much. Thats why we would like to have a maximum of 2% returns. This will be 11 leather jackets maximum per month.

Critical success factor nr. 3: Customer satisfaction 50% second buy As for the last critical success factor we would like to implicate a customer list where all the customers write down their names. After a period of 2 years we would like to see that 50% of the customers that bought a jackets actually returns and buys another jacket.

STRATEGY AND TACTICS An overview of the strategy and tactics that will be applied to the e-commerce / e-marketing solution: 1.1 Price and promotions

There are multiple strategies that Gney Leather could use to attract more buyers. Beneath we will describe 3 good pricing strategies that we will apply to the shop and to the web shop at the same time. Psychological pricing: Instead of pricing the leather coats for 100,- it is scientifically proven that people buy faster with the price tag 99,99. This is because people associate the number 9 with high value and because 100,- sounds more than 99,- which most will say instead of 99,99. In the case of Gney Leather we obviously have to deal with the Turkish currency Lira. Quantity pricing: It would be a nice try to give customers that bought a Gney Leather product 20% discount on their next product. However, to protect our own finances and to prevent low profit in future, it would only be possible to use this discount for 2 months after their purchase. Payment steps: A lot of customers really want to buy a Gney Leather product but simply do not have the money for it at once. For those kind of customers it would be nice to give them an opportunity to pay it in steps. These methods of pricing are to be used for the shop and for the web shop. However, to promote the web shop we should lower the prices by 10%. We will keep this until there is a reasonable amount of web shop users. Gney Leather will start promoting the web shop with leaflets in the store itself. Customers will check the site because of the lower prices. When the company starts to grow and go international, it would be well known as a shop as well as a web shop. For international customers the web shop will be the best option to buy from Gney Leather. For Gney Leather it would be better to sell more throughout the web shop because of the lower staff costs.

1.2

Place in the sales process

The web shop of Gney Leather will not be an intermediary offering products as most web shops nowadays. It will strictly sell only products of Gney Leather itself. To gain more money Gney Leather can allow advertising on the web shop. There are multiple advantages that come along using direct online selling. First of all is the strengthening of brand equity. Using your own online web shop gives you the privilege to position the products however you want it. It would be possible to creates a strong brand with

own site by using rich visuals, product videos and 'the story behind the brand. A good example of this is the site of the brand Burberry.

Gney Leather should differentiate itself from other stores and web shops selling the same product. The second advantage is to use the site for innovative outlines, for instance customization. A good example for this is the brand Reebok with its design your own slogan.

Websites used: http://www.frankwatching.com/archive/2013/05/01/6-redenen-waarom-fabrikanten-voordirecte-online-verkoop-kiezen/ http://www.moneyaside.com/top-8-small-business-pricing-strategies

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RESOURCES AND BUDGET 5.1 Introduction

Introducing and running the e-business solution will cause costs and a workload on our organization. This chapter provides an estimation of those costs and workload. Please refer to excel file e-commerce budget template.xlsx for more detail on those calculations

5.2

Project timeline assumption

We assumed that the project will have an analysis, design & implementation phase and an ongoing operations phase. During the ongoing operations phase the e-commerce solution is used in production. Following timeline was assumed:
Services Analysis, Design & Implementation Ongoing Operations Start Date Duration End Date 9/12/2012 60 7/02/2013 8/02/2013 1086 30/01/2016

5.3

Tasks & Resources

Below table provides an overview of the main tasks, the resources who will handle those, and the effort to be spend over time for those activities.

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5.4

Headcount evolution to run our project

The headcount evolution required for our project then looks as:

5.5

Non-labor costs
Besides the resources required for our e-commerce project, we do have a number of fixed and variable costs. Those are:

5.6

Total budget

Based upon above estimations and assumptions, we believe this project will required following running budget:

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5.7

Month over month budget requirements

5.8

Conclusion
We could not contact the account as it was too busy at the brick store, as holiday season was coming up.

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6.MEASUREMENT & CONTROL 6.1Introduction The objective of Gney is to create a web shop so that they can attract more buyers in the hope that their sell force will increase with 37,5 % within a year and benefit from its customer relationships that they have build up during the launch . To verify to see if we have achieve our objective, we need to plan out how we can measure it best. In this chapter we will handle the measurement plan of our objective. We have split them up in two so we can see our business as marketing results. Business result Marketing result 6.2business result Business result relates to the profitable contribution of the web shop to the company. We will measure and verify: The increase of sales Adding a web shop will help Gney attract more customers. Now they are operating locally with their current brick shop. The web shop will help them reaching new potential customer in turkey and better yet, even outside the Turkish border. To control this will measure the whole sales per month. If there is an increase compare to the normally amount, then we know it has a good impact on the sales. Especially if it hits our goal of 37,5 %. We decided not to control the sale force via the internet, since consumers might prefer to by their purchase at the store even though that they have visit the site. This information would not be reliable. However what we can measure well is the number of purchase outside Turkey. 6.3Marketing result There is also a marketing effect if you use a web shop such as: customer satisfaction, customer loyalty and reputation. We will measure and verify: Customer satisfaction The use of database can help use knowing our customers. We know exactly where they are from, what their interests are and how often they visit Gney web shop. If they often buy products then we know that they have become loyal customers, because they are satisfy with the quality of the product and service. If we see with the help of the database that 50% of the customers had bought more than once, we know that we have successes our goal. 14

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