DIGIMARKET SOLUTIONS

Module Code: M060LON

Subject Title:
Entrepreneurship - Developing the Business Opportunity

Tutors Name: Mr. Callum Morrison

Student Name: Cheta Mahale

ID Number: 5437795

I Certify That All Materials Presented Here Are Of My Own

Creation, And That Any Work Adopted From Other
Sources Is Duly Cited And Referenced As Much

Executive Summary:
This particular Business plan is aimed at providing a detailed business plan for digital
marketing company starting of their business in London. The recent worlds of globalization and
with the rapid rise in the growth of internet as a means of communication technology there is a
potential challenge for the digital marketing platform due to the rapid rise of internet users
around the world. This particular business plan will give a complete description of a digital
marketing firm who will have their operation in London and will target all the industries for
which they will promote their product and services through digital platforms.
A proper marketing plan will be given which will include analysis of all the market
related environment of conducting business. In essence this segment will include all the
marketing strategies that the company will adopt.
This business pan will also envisage on the external environment of the business as well
as the internal environment of the business through various strategic models such as SWOT
analysis, PESTLS analysis, 7S model, Porters 5 forces model and Ansoffs matrix. The
operational plan of the business will also be given in this business plan so that the modus
operandi of the business can be understood from the in detailed description of operational plan.
The structure of the entire organization and the human resource policies that would be
maintained by the firm for operation of the firm will also be given in this business plan. This plan
of the start-up operation of the business in the digital marketing industry will also lay down the
in detailed financial plan of the business.
The financial plan will contain the projected income statement of the company, which
will give a detailed description of the revenue, and the cost associated of performing the
business. In addition to it the sales projection of the business s from various product and services
that are offered by the business will also be given which will reflect the category wise sales of
specific products.
The projected balance sheet of the company along with projected cash flow of the
company will also be given which will help to understand the net assets and liabilities of the firm
along with the cash flows, which are coming to the business from the core operations of the
business.
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Therefore this business plan regarding the start-up operational plan of digital marketing
firm will give a holistic analysis of the business environment, marketing, human resource
strategy, financial and the other operational issues of the business. In fact the risk pertaining to
the conduct of the business will also be discussed in detail along with the mitigation technique
that will be adopted by the firm for avoiding or reducing it.

Contents
Executive Summary:................................................................................................... 3
1.

Introduction:......................................................................................................... 8

2.

Mission & Vision DIGIMARKET SOLUTION:............................................................9

a.

Mission:................................................................................................................ 9

b.

Vision:.................................................................................................................. 9

3.

Business Concept:................................................................................................ 9

4.

Business Opportunity......................................................................................... 10

5.

The Business Start-up:....................................................................................... 12

6.

Marketing Plan:.................................................................................................. 13

a.

Market Research................................................................................................. 13

b.

Country Analysis................................................................................................ 13

c.

Segmentation, Targeting and Positioning (STP) of DIGIMARKET SOLUTION:.......14

a.

Segmentation.......................................................................................................... 16

b.

Targeting............................................................................................................... 17

c.

Positioning............................................................................................................ 18

7.

Internal Environmental Analysis.........................................................................20

8.

SWOT Analysis of DIGIMARKET SOLUTION:.........................................................21

a.

Strengths:.......................................................................................................... 21

b.

Weaknesses:...................................................................................................... 22

c.

Opportunities:.................................................................................................... 22

d.

Threats:.............................................................................................................. 22

9.

List Of Competitors in London............................................................................ 23

10.

SWOT Analysis of the Competitors:.................................................................24

11.

External Environmental Analysis..............................................................................25

12.

PESTLE Analysis of DIGIMARKET SOLUTION:.......................................................26

a.

Political/ Legal.................................................................................................... 26

b.

Economic............................................................................................................ 27

c.

Social................................................................................................................. 27

d.

Technological...................................................................................................... 27

e.

Environmental Factors........................................................................................ 28

f.

Legal environment............................................................................................. 28
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13.

Porters Five Forces Analysis................................................................................... 28

14.

Porters Five Forces for DIGIMARKET SOLUTION:....................................................30

a.

Power of the Suppliers:...................................................................................... 30

b.

Power of the Buyers:.......................................................................................... 30

c.

Competitive Rivalry:........................................................................................... 30

d.

Threat of Substitutes:......................................................................................... 31

e.

Threats Of New Entries In The Market:...............................................................31

15.

Ansoffs Matrix................................................................................................... 32

16.

7 Ps of Marketing................................................................................................ 34

a.

Product:.............................................................................................................. 35

b.

Promotion:.......................................................................................................... 36

c.

People:............................................................................................................... 36

d.

Physical Evidence:.............................................................................................. 37

17.

Operational Plan (Product / Services Description).........................................................38

a.

Social marketing:............................................................................................... 38

b.

Search Marketing:.............................................................................................. 38

c.

Email marketing:................................................................................................ 38

d.

Bulk SMS Service:............................................................................................... 39

e.

Blog Writing Marketing Services:........................................................................39

18.

Operational Model................................................................................................ 39

19.

Business location.................................................................................................. 42

a.

Brand Image....................................................................................................... 42

b.

Competition........................................................................................................ 42

c.

Local labour market........................................................................................... 42

d.

Plan for future growth........................................................................................ 42

e.

The safety issue................................................................................................. 42

f.

Facilities............................................................................................................. 43

g.

Operational Plan................................................................................................. 44

20.

The Strategic Planning Process................................................................................ 45

21.

Managements and Organisation................................................................................46

a.
22.
a.

Organisation Structure:...................................................................................... 46
Hierarchy of Digimarket solutions............................................................................48
Board of Directors:............................................................................................. 48

b.

Management advisory board:.............................................................................48

c.

Attorney:............................................................................................................ 48

d.

Financial director:............................................................................................... 48

e.

Marketing Executive:.......................................................................................... 49

23.

Organization Can Include Typical Development Activities:..............................................49

24.

The Marketing Strategy.......................................................................................... 50

a.

Financial Plan..................................................................................................... 52

b.

Sources Of Finance:............................................................................................ 53

c.

Bank Loan:......................................................................................................... 53

d.

Bank overdraft:.................................................................................................. 53

e.

Capital Investment:............................................................................................ 54

f.

Capital Structure of the business:......................................................................54

g.

Start Up Requirement:........................................................................................ 54

h.

Sales Projections:............................................................................................... 54

i.

Loan Repayment Schedule:................................................................................54

j.

Projected Income Statement:............................................................................. 54

k.

Income Tax calculation:...................................................................................... 55

l.

Break Even point:............................................................................................... 55

m.

Projected Balance Sheet:................................................................................ 55

25.

Risk Analysis:..................................................................................................... 56

26.

Conclusion and Recommendation:............................................................................57

27.

References:......................................................................................................... 58

28.

Appendix........................................................................................................... 62

a.

Appendix 1:........................................................................................................... 62

b.

Appendix 2:........................................................................................................... 62

c.

Appendix 3............................................................................................................ 63

d.

Appendix 3............................................................................................................ 67

1. Introduction:
The world of 21st century has seen a massive growth in internet. The number of internet
user has grown manifold in the last few years and expected to reach 2.5 billion in next 5 years
around the world. It is with the rapid growth of the internet and other internet based digital
technologies, there lies a rapid growth prospect for companies which are providers internet based
solutions.
Therefore DIGIMARKET SOLUTION as a start-up company in the booming specialized
digital marketing space with wide scale specialized expertise has a huge potential to succeed in
the industry. It is expected that the digital marketing industry is expected to be around $10.5
billion industry by the end of the year 2020. So as a company with all the required resources in
place the company has a tremendous potential in the digital marketing space.
It is very essential that for organizations across the globe to showcase their products and
services in the digital platform. The essentiality of showcasing the products and services in the
digital platform is mainly because of the large number of user base who are accessing the
internet and other digital platform like mobile phone technology.
Moreover United Kingdom being the heart centre of business activity of the entire
European region, there are large number of companies who competing in the markets of UK.
Moreover the companys primary location being London along with branch office in other major
cities of UK, it will have strategic advantage of gaining access to large number of companies
spanning across variety of industry to cater the services of digital marketing. So with offices in
such a prime location and expertise in digital marketing platform, there is a high probability that
the company will get an immense success in the long run with proper sustainability.

DIGIMARKET SOLUTION being a successful organization in creating digital products ,

the expansion of the business in this particular segment of digital market service, the company
will able to allocate resource in an optimal way. Moreover with the wide range of business
experience and expertise in acquiring right talent, it is expected that the success in this particular
segment of business will be a matter of time.

2. Mission & Vision DIGIMARKET SOLUTION:

Mission, Vision and objective are essential for any organization that is operating in
todays highly competitive environment. The main purpose of company vision, mission and
objective that it enables a company to set a strategic objective

a. Mission:
Mission is the short-term aim of the company, which the company want to achieve
through the core business operation.
The mission of the business DIGIMARKET SOLUTION is mentioned below:
To provide exclusive service and marketing management support to the clients across all
sectors which will provide immense support and key drivers for the organizational growth

b. Vision:
Vision is the long-term strategic goal of the organization, which the company want to be
in the long run scenario.
The vision statement of the company is:
To be one of the top 50 players in the digital marketing industry through constant value
deliverables to the clients

3. Business Concept:
Today with the booming and rapid pace of internet there is millions of online user who
are constantly present in the internet space throughout the world. The users use the internet
platform for either professional work or personal work. Therefore the concept of digital market
will immensely help the companies across all the sectors to take advantage of the high number of
users in the internet platform and to showcase their products and services. Moreover it through
these techniques the companies can generate leads, which will definitely act as a potential source
of the revenue for the business.

It is therefore with this particular aim to provide benefit to the business, DIGIMARKET
SOLUTION has though of provide services of led generation through various technique of
digital marketing. Therefore with these modern techniques the clients will able to get huge
clients for the innovative technique of marketing. Though the start will be difficult to make the
client understand of potential of marketing through these mediums but in times to come this
particular technique will be one of the most sought after marketing technique which every
companies and business want to undertake because of the definite advantage it possess.

4. Business Opportunity
Digital Marketing opens up a wide avenue to the Business Organizations for promotion and
for reaching out to customers. It also helps in facilitating frequent interaction between the
marketer and its customers. Today it has not only emerged as the most widely used medium for
reaching large customer groups but it is also very cost effective medium for such interactions.
Through its various channels such as electronic mails, internet, smart phones, etc it offers
plethora of opportunities to marketers.
Marketing as a field is slowly evolving; marketers have realized that being in touch with the
customers is the only way for earning long term customer loyalty. Marketing has taken a leap
from being goods centric to services centric and now the focus is on the core offering, co
creation of value and customer relationship (Vargo and Lusch,2004). This leap has been
facilitated by the emergence of digital world. The digital media provides the opportunity by
allowing a two way dialogue between the buyer and the seller (Appendix 1) Thus, today digital
marketing has become an inevitable party of the overall strategy of any firm.

This industry is a technology based industry and today every sector is looking towards digital
marketing initiatives to boost up their sales and attract and maintain customers. This sector can
also be said to be in growth stage from economic point of view as the capital that has to be
invested in digital marketing is low, the value addition is quite high and its growing to become
high potential sector in near future. Therefore it will be a right decision to enter into this market
and tap the potential.

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To harness the vast potential of this sector I have decided to set up a digital marketing
enterprise whose main function will be to offer digital marketing services such as social media
marketing, mobile based marketing, viral marketing, search engine optimization services, etc.the
company will focus on clients based on UK and mainly target the consumer base in UK itself as
we have a better understanding of this countrys consumers tastes, preferences and perceptions.

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5. The Business Start-up:

The company will be registered in the London, UK. The founder of the company will
play the role of Managing Director of the firm. The company will be managed in a professional
environment and professional expert advice will be considered for the all matter which would
require professional advice. Moreover all the statutory permits required to start business will be
taken from the professional bodies and competent governmental bodies and local municipal
bodies. Moreover all the laws and regulations of the government, municipal bodies and other
competent authorities will be taken for the start of the business and conducting the business in a
compliant manner.
As an initial start-up and venture the company will be opening office in several UK cities
so that the maximum market share can be captured from the very initial start of the business.
Moreover personnel will be selected in such a way that they can able to meet the requirement of
the client and thus fulfil their expectations.

6. Marketing Plan:
a. Market Research
Market research is one of the most essential and the most important that a
business need to perform while foraying into a particular venture. It helps to provide the
company with clear idea about the potentiality of the business through which it can be
forecast different business situations in coming years.

b. Country Analysis
Digital Marketing is a new marketing strategy that is ever increasing. The United
Kingdom comprises of Great Britain and Northern Ireland. England, Scotland and Wales
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together constitute the Great Britain. The United Kingdom in size is twice that of the
New York State.
Opening up a Company in UK would be a wise decision due to its large
geographic extend and the number of people residing in UK. The population of UK is
estimated to be around 64.1 million (Theme: Population). With a population as aforesaid,
the concept of digital marketing is bound to be popular. The people in the United
Kingdom are forward thinking and all the new concepts including the digital marketing
media is not left behind.

According to a report by E-consultancy, United Kingdom will lead the world by

becoming the hub of creative services by the year 2025.At present 8m per hour is
generated by this sector which also includes advertising and other marketing activities.
This sector accounts for 5.2 % of UKs Economy out of which IT and Computer related
services account for 46.5 %. Therefore it will be a good proposition to enter and penetrate
this market.

c. Segmentation, Targeting and Positioning (STP) of

DIGIMARKET SOLUTION:
Segmentation, Targeting and Positioning (STP) can be effectively considered to
be one of the major significant and noteworthy factors, proper and efficient analysis of
which can significantly help an organization to ensure an overall skilled and profound
marketing of the business and overall penetration of the market by the concerned
organization.

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The overall system or process of Segmentation, Targeting and Positioning (STP)

is of a significant importance which effectively helps a business organization to
thoroughly understand and analyse the key and prime elementary sections or segments of
the overall business where maximum efforts must be made or given by the organization
for effective business marketing and getting an in depth knowledge about the particular
existing customer base.
Such an effective and efficient process of STP will in turn is capable of providing
remarkable support to the organization in understanding and successful and skilful
targeting of the major and prime customers who can be considered to produce the
profitable revenue for the organization which can be of immense help for the organization
in future growth and advancements and sustained long run of the business operations and
activities.
It can be considered that incorporation of the Segmentation, Targeting and
Positioning (STP) process will have a notable influence on the organization in
implementing effective strategic approaches and decisions pertaining to the overall
business operation and activity of the organization. So a detailed and well-structured and
well-designed process of Segmentation, Targeting and Positioning (STP) must be highly
incorporated by the organization for making a significant impact in the competent and
potential market of United Kingdom.
Effective and efficient strategic approaches and decisions must be incorporated by
organizations in order to make a stand in the market and target the major customer base.

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The overall process of Segmentation, Targeting and Positioning (STP) can be

significantly divided and explained under the following divisions:

a. Segmentation
The organization must follow proper and significant business strategies for
effective segmentation of the customer or audience of the target market. The overall
process of segmentation can be divided under the following heads:

Demographics:
The organization must be able to segment the overalls customers on
the basis of demographics that effectively include the categorization of the
targeted customers on the basis of gender, age, education, income, and marital
status. Ethnicity and occupation or profession..

Psychographics:
The organization must carefully segment the overall customer on the
basis of emotions and personality, which can be considered to be significantly
linked with purchasing choices and opting for any specific services of the
organization.

Behaviour:
It is of extreme necessity for the organization to carefully segment
and understand the overall behaviour of their customers. Customer behaviour
towards the organization plays a crucial role in determining the overall
productivity of a business organization. Thus the organization must analyse in
depth the overall behaviour of the customers, which includes nature of buying
or purchasing, brand trust and loyalty and overall responses and trend of the
customers.

Benefits: The organization must carefully look in to the expectations of the

15

customers and provide necessary services for customers benefits and

advantages.

b. Targeting
Target or targeting can be efficiently considered to that particular or specific
customer or consumer base or croup that the organization intends to target for
generation of profitable or significant profits and overall revenue.
The overall quality of facilities and services provided or offered by the
organization must significantly meet the overall needs and demands of the targeted
customers or consumers.
For earning significant profits and benefits in the digital marketing market of the
United Kingdom DIGIMARKET SOLUTION must carefully target its customers and
provide facilities and services of extreme high quality for meeting the needs and
expectations of the customers.
The overall expansion of the business significantly depends on the customers,
hence it can be said that the organization must target the right set of customers and
market depending upon the overall size of the market, accessibility and benefits.

16

c. Positioning
Positioning can effectively considered to be the strategy of the organization for
effective and efficient positioning of its offered products, services and facilities in the overall
mind-set of the targeted customer or consumer base.
The overall strategic approach of position will notably assist the organization in
creation of a remarkably positive effect or impact on the targeted or concerned consumer or
customer base or group.
This overall strategic process of positioning will help the organization towards a
sustained growth and future advancements in the competent digital marketing market of the
United Kingdom.

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Source: Primary Research

Digital Marketing is the best way to reach customers, because the primary research has
shed light on the fact that approximately 85 per cent of the participants were fascinated by
making purchase decisions based on the advertisements and recommendations they receive
online (Appendix 2).

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7. Internal Environmental Analysis

For structuring and implementation of an effective business strategy it is an absolute
necessity for an organization to carefully identify its overall capabilities and available resources.
This overall internal analysis provides the organization with sufficient information about its
existing strengths and weaknesses, the future opportunities and existing threats.
Through conducting an effective internal analysis it is possible for the organization for
implementing efficient business strategies that can significantly satisfy their overall goals and
objectives. Internal analysis is carried out through conducting a SWOT analysis to effectively
find out organisations Strengths, Weakness, Opportunities and Threats.

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8. SWOT Analysis of DIGIMARKET SOLUTION:

DIGIMARKET SOLUTION is a digital marketing firm that operates in the United Kingdom
and is highly specialized in digital products, services and facilities. SWOT analysis can be
considered to be an effective tool that can be properly implemented in making an in-depth
analysis of the organization.
SWOT analysis means strengths, weakness, opportunities and threats. A SWOT analysis
effectively helps an organization to know about its key strengths. It helps the organization to get
a better understanding of the internal associated risk factors. It highlights the overall
opportunities in the market and focuses on the threats that exist for the organization. SWOT

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analysis will notably help DIGIMARKET SOLUTION to make a significant structure of a

business plan and strategy for operating in the competent market of United Kingdom.

a. Strengths:

DigiMarket Solution has the significant advantage of a highly skilled and motivated
team of working professionals who are responsible for providing the customers with
the overall facilities and services of innovative ideas and creations of digital

marketing.
The organization has adopted significant strategies for significant reduction of the

overall cost of labour.

The organization has the remarkable advantage of a high growth rate and is seen to
enjoy a notable high revenue and profitability through its high quality and effective
products and services. Thus these are the overall strengths that the organization can
significantly work upon and improve by application of an effective strategic plan.

b. Weaknesses:
The organization is seen to have an overall problem of improper tax structure. This must
be taken into consideration and must be eliminated by application of a proper and wellstructured strategic approach or plan. Moreover the organization is found to have a poor
investment scheme on the department of research and development.
Innovation is the key elementary aspect of the world of digital
marketing. The organization should significantly increase the overall
investments on its process of research and development for making
significant growth in the long term. Another weakness of the organization is small size
business units. It is required for the organization to implement a well-structured strategy
and improve their overall business units which can be said to be an integral part of
survival in such a competent UK market.

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c. Opportunities:
The overall capital of the organization is seen to be a significant
opportunity for its future growth and advancements. In addition the
overall profitability and noteworthy growth rate of the organization
gives the organization a competitive edge when compared to its competitors. The digital
marketing industry has a huge potential. Thus it is necessary for the organization to
implement such advantages in to the strategic plan in order to capture the potential
market which can overall help the organization in its overall business organizations.

d. Threats:
The overall market of digital marketing has a lot of associated risks. The organizations
face a significant amount of threats from its competitors in the
market who have the significant capability of outdoing them in the
overall business. Thus it is necessary for the organization to
carefully make an in depth analysis of their competitors strengths and weaknesses and
make the necessary improvements in their overall business process to minimize or
eliminate any existing threats.

9. List Of Competitors in London

VML London
STEAK Digital Marketing Agency
Surge
Harvest Digital
Passion Digital
Synergic Links

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10. SWOT Analysis of the Competitors:

By conduction an effective SWOT analysis of the competitors the organization will be
able to know about the key strengths and weakness of its existing competitors and implement
business strategies and approaches accordingly. The SWOT analysis of the competitors can be
effectively explained as follows:
Strengths

Weakness

The other organizations that operate

The other organizations have the

in the market of digital services and

significant

marketing possess the key strengths

weakness

of

low

profitability and capital. In addition

of innovation and creativity. In

some of fail to match the overall

addition some of the organizations

market needs and demands.

have effective and efficient training

and development process which is
of significant importance in creating
a skilled and efficient workforce.

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Threats

Opportunities
The overall potentiality of the market

The overall business activities of

provides

growth

DIGIMARKET SOLUTION can be

opportunities to the competitors of

considered to be a significant threat

DIGIMARKET SOLUTION. Their

to its competitors who are found to

overall quality of offered facilities

implement

and services to the customers can

strategies and approaches for gaining

significantly contribute to the overall

an effective competitive advantage

significant

effective

business

over one another.

growth and advancement of the
11. External Environmental Analysis
organizations
.
External environmental
analysis can be effectively considered as the overall study to
determine necessary information about an organizations overall business industry, political,
social, economic, technological and legal environments. These factors are significantly
responsible for affecting the overall organizational business operations and activities.
Thus it is required for an organization it is required to effectively conduct an external
environmental analysis to analyse and get a better understanding of the overall market industry in
which it significantly operates. External environmental analysis conducted through a PESTLE
analysis.
PESTLE stands for Political, Environmental, Social, Economic, Technological, Legal
and Economic factors that notably influence the overall business operations and activities of an
organization. It is necessary for an organization to effectively carry out a PESTLE analysis for
clearly understanding its market of operation in detail which helps the organization in
implementation of certain important and noteworthy business strategies and approaches which
are of a notable importance for the sustainable growth and future advancement of the
organization in the market industry.

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12. PESTLE Analysis of DIGIMARKET SOLUTION:

The overall external analysis of the market environment can be effectively conducted
through a PESTLE Analysis which effectively discusses the overall political, social, economic,

25

environmental and legal factors of the industry market in which the organization operates and
helps the organization in implementing efficient business strategies and approaches to achieve a
sustained growth in the market environment.

a. Political/ Legal
There are high standards in the UK market related to advertisement or promotion of
products provided by any particular company, and therefore digital marketing companies are
consequently gaining a political prominence. There is increasing pressure for businesses
operating in the market to conduct the business in a socially, environmentally and economically
responsible way which has increased the demand for marketing companies that can suggest them
a better way to advertise companys product on the global level (Pride and Ferrell, 2008). This
fact is clearly reflected as most of the companies in the UK market are looking for best digital
marketing practices to attract more and more customers towards their product. In the UK market,
there is an increasing demand for all those advertisement practices that can attract the internet
friendly customers towards companys products.

b. Economic
United Kingdom, in itself, experiences robust economic growth and therefore, attracts
entrepreneurs for exploring business opportunity in this regard. The greater difficulties related to
advertisement of products are faced by companies based in the UK market due to the
involvement of trade barriers. Therefore, the scope for online marketing practices has increased
in the UK market which has ultimately increased the business opportunities for all those
companies that mainly provide services to all those clients or companies who want to market
their products or organization on digital media platforms.

c. Social
The market of the UK is highly competitive in nature and therefore, the advertisement
companies such as DMS need to be adaptable to the change in consumer attitudes or else the
issues related to the adaptability of customers can threaten them. Young people are becoming
more addicted to internet which is making offline advertisement methods less attractive for the
target market consumers (Shankar, Carpenter, Farley, and Hamilton, 2012). In this context, the

26

idea of digital marketing services is an attractive innovation, which can be supported by the
market conditions of United Kingdom.

d. Technological
The people of United Kingdom play a significant role in maintaining high standards of
living especially the youth, spend most of their time on internet by surfing different social
networking sites with the purpose of choosing best consumer product for them (Shankar,
Carpenter, Farley, and Hamilton, 2012). Therefore, United Kingdom can be considered best
market for the DMS Company due to the availability of technology and technology addicted
people.

e. Environmental Factors
The environmental factors comprises of those factors through which the company while
establishing its position in the market can create a sustainable environment. The DMS company
has been introducing several advanced and innovative marketing services which can easily raise
the eyebrows of many competitors in the same field that are already present in the market.

f. Legal environment
The legal environment of United Kingdom is considered to be the most favourable in
order to support businesses. The country offers open, transparent and friendly environment for
the companies to operate their business and is also regarded as one of the best countries in terms
of promoting innovation and competition in businesses (Pride and Ferrell, 2008). Thus, in
context to the marketing company, DMS there are a lot of opportunities for establishing its
ventures in the market of United Kingdom.

13. Porters Five Forces Analysis

Porters Five Forces can be effective considered to be a significant aspect which can be
efficiently implemented for measuring the overall strength of an organization. Porters five
forces can be effectively used by the organization to have a detailed understanding of the existing
competitive issues in the market industry. For any business organization to succeed it is an

27

absolute necessity for the business organization to effectively position itself in the market.
Through the implementation of porters five forces the organization can clearly identify its future
marketing growth and opportunities.

Figure: Porters Five Forces

Porters five forces can be said to have the following key aspects:

Strength of the Suppliers.

Power of the Buyers.
Competitive Rivalry.
Threats of Substitutes.
Threats of New Entrants:

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14. Porters Five Forces for DIGIMARKET SOLUTION:

The overall porters five forces for DIGIMARKET SOLUTION can be effectively explained
as follows:

a. Power of the Suppliers:

Suppliers are the integral parts of any business. The suppliers are the people who
are responsible for providing the necessary equipments and resources for the business.
For effective and efficient business operations and activities it is essential for the
organization authority to carefully identify the proper suppliers. The organization
authority must effectively measure the overall supplier strength in a well-organized
structure so execution of all activities and business operations are conducted in a
structured way. If the above mentioned guidelines are effective executed by the
DIGIMARKET SOLUTION authority it can significantly help in the organizations
overall business operation and activity.

b. Power of the Buyers:

The buyers or the concerned customers of the organization hold a key significant
power in influencing its overall business operation and activities. It is an absolute
necessary for the organization to carefully monitor the overall customer expectations,
demands and needs and provides the customers with quality services for fulfilments of
such requirements. In the world of digital marketing it is extremely essential for the
organization to focus on new innovative ideas and creations for meeting all the customer
expectations in the best possible manner. Meeting the customer expectations will
ultimately lead to customer satisfaction which can be highly beneficial for the
organization in developing an overall customer loyalty, trust and respect in the long run.
This can help the organization to achieve a sustained future growth and advancements.

c. Competitive Rivalry:
The industry market of digital marketing is highly competent in nature. Thus for
running a successful business it is an absolute necessity for the organization authority to
clearly focus on the operations and activities of their existing competitors and implement

29

proper strategic approaches for minimizing any threats from its competitors in the
market.

d. Threat of Substitutes:
Substitute can be considered to be an important and significant aspect of any
business. Sometimes the organization can tend to provide a substitute product or service
to its customers on requirements from the customers. . If the substitute product or service
offered fails to satisfy the customers expectations and needs, it can create a negative
impact on the overall customer perspective towards the organization. Thus it is required
for the organization to carefully monitor its substitute products or services and their
overall capability in satisfying the overall expectations of the customers or consumers.

e. Threats Of New Entries In The Market:

The overall market industry of digital marketing in United Kingdom is
significantly and remarkably dynamic in nature. Many new business organizations have
initiated the business of digital marketing and are trying to make a foothold in the
competent market of the United Kingdom. Thus it is advisable for the organization to
create a strong hold in the market and reach a comfortable position or zone so that the
overall threats of new entrants in the market are negligible.
Through proper implementation of Porters Five Forces it is possible for DIGIMARKET
SOLUTION to effectively analyse the overall challenges of the business operation or process and
associated risks. By proper implementation and application of Porters Five Forces t is possible
for the organizations to make a strong position for itself in the competent market of United
Kingdom.

15. Ansoffs Matrix

Ansoffs matrix can be effectively considered to be major significant tool that can be
efficiently used by the organization in making proper and efficient strategies and other process
30

and procedures concerning the overall business operations and activities. It can be considered to
a strategy of growth. By effective implementation of Ansoffs matrix it is possible for the
organization to achieve a sustained growth and advancement in the overall market.

The above diagram represents Ansoffs matrix

With the help of Ansoffs matrix it is possible for DIGIMARKET SOLUTION to gain a
significant foothold in the competent market industry of digital marketing in the United
Kingdom.
Ansoffs matrix can notably and remarkably help the organization in designing a wellstructured approach or strategy for gaining sustainable development in the overall competitive
industry market. The overall process of development that can be effectively incorporated by the
organization can be explained as follows:

The authority of DIGIMARKET SOLUTION must carefully identify the overall

products, services and other facilities that are being offered by the overall industry of
digital marketing. This can help the organization in gaining detail insight knowledge
of the overall market environment in which it significantly operates.

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After obtaining sufficient in depth knowledge about the market, it is an absolute

necessity for the organization to carefully develop their approaches, strategies, plans
and services which can help them to get a primary acceptance and focus in the overall

market.
In the overall process of business operations and activities, market development can
be effectively considered to be a key significant aspect. The authority of
DIGIMARKET SOLUTION must develop innovative and highly profound services
and facilities which in turn will help them to distinguish themselves from their

existing competitors in the market.

After the development of services and segmentation of the market, it is essential for
the organization to make further development and improvement in their overall
services, which can help the organization in increasing its overall potential in the
market.

16.7 Ps of Marketing

The above Figure Depicts the 7 Ps of Marketing.

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The overall process of marketing can be considered to be evolving significantly in a

continuous manner. Thus it is an absolute necessity for the organizations to make changes in
their overall business ideas and plans and implement effective business approaches and strategies
to meet the noteworthy challenge of the present day competent market industry. A successful
process of marketing is seen to be dependent upon a number of key elementary issues. The
overall issues of marketing that must be incorporated in a business strategy of an organization
can be effectively explained as follows as the 7 Ps of marketing:

Product.
Price.
Place.
Promotion.
People
Process.
Physical Evidence.

a. Product:
It is extremely essential for a business organization to develop a certain product or
service that is wanted or desired by the customers. A product that has no proper value from the
perspective of the customers fails to add to the organizations productivity and profitability. Thus
is necessary for any business organization to develop a product and offer efficient services and
facilities to the customer that can be successful in providing a certain value to the customer. The
organization must incorporate the expectations and needs of the customers and develop a product
to fulfil such customer requirements, which can be highly beneficial for the organization in
expanding its business significantly, and make a sustainable future growth and advancements.
Price:
A particular product can largely attract a lot of customers if it has a competitive pricing. A
product, which the customers are not willing to pay for, adds no value to the organization. Thus it
is required for the business organizations to follow or adopt a competitive pricing policy to
attract its customers. Competitive pricing does not always mean that the product has to be of the
cheapest price. The organizations should focus more on the offering the customers product or
services that the customers feel as value for money. In addition the pricing of the products must

33

also consider the overall organizational profit. Pricing of a product is of a noteworthy importance
for generation of the sufficient amount of revenue for a business organization.
Place:
It is of significant importance for the organizations to make their products available at a
convenient place where the customers or consumers find it easier to shop. Thus distribution of
the products needs to be effective done to the places that are convenient and appropriate to the
consumers or the customers. A business organization must make its product available at the right
time and the right place and in the sufficient quantity while maintaining an acceptable level of
distribution, storage and inventory cost. Availability of the products at the right places also
enables the organization to display its products to the customers and attract new customers.

b. Promotion:
Promotion can be termed as one of the most efficient aspect of marketing. It is essential
for the business organizations to conduct promotional campaigns for generating awareness
among its customers regarding its new products and services. In other words promotion can be
effective defined as the way of communication of the organization for generating awareness
amongst its customers regarding the products and services of the organization. Promotional
campaigns include advertising, branding, corporate identity, Public Relations (PR), management
of sales, exhibitions and special discounts or offers.
A promotional campaign must be well thought, innovative and most necessarily appeal to
the customers. Effective promotional campaigns must efficiently communicate the overall
benefits and advantages that the customers can receive from a particular product. Promotion not
only generates awareness among the customers. In addition it provides effective information
about the product to the internal stakeholders of the organization.
An effective communication with the employees or staff within the organization provides
the much needed knowledge to the employees about the product which in turn help the
employees to provide the customers with an expertise service. Thus it can be said that promotion
is a significant aspect of marketing that must be efficiently incorporated by the organizations in
their marketing approaches and strategies.

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c. People:
It is an absolute necessity for any business organization to appoint the right kind of
people in the organization starting from the sales employees, staffs or personnel to the high
managing directors. The people working in the organization have the overall capability of
influencing or impressing the customers that can be seen to have a notable effect on the overall
customer satisfaction both in a positive and negative way. It must be ensured by the organization
that all their employees are efficiently trained and developed for providing high quality facilities
and services to the customers that would lead to increased satisfaction among the customers.
Efficient sales staff who are seen to have profound knowledge and skills for handling of
customer queries and request provides an overall competitive advantage for the organization over
its competitors in the market. Thus it can be said that the business organizations must appoint
and recruit right kind of skilful people for the right job.
Process:
The overall delivery process of services is key elementary aspect of marketing. It is an
absolute necessity for a business organization to deliver their services to the customers in the
right time and maintain an effective an effective system regarding delivering of services for
improved satisfaction among the customers, which can significantly contribute to the overall
revenue and profit of the organization.

d. Physical Evidence:
The efficiency of service cannot be properly judged before it is delivered. Thus the
customers often face the risk of buying something that is completely unknown to them. The
organizations must demonstrate physical evidence to the customers for reassuring them regarding
the efficiency or benefits or the product and service. Such an existing uncertainty can be easily
minimized by the organizations by providing an efficient facility of well-equipped reception
area, which is capable of answering the customers questions and doubts and reassure the
customers regarding the efficiency of the products or services.

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17.

Operational Plan (Product / Services Description)

a. Social marketing:
Using online listing DMS is able to get a feedback from the customers about how they
feel about the particular brand of their clients. In this way DIGIMARKET SOLUTION is
able to increase the marketability of its clients greatly. DIGIMARKET SOLUTION realizes
the ever changing nature of the market and therefore in trying to keep pace with this
changing trend by engaging in social sites like Facebook, Twitter and Pinterest, Foursquare,
Get Glue marketing. DIGIMARKET SOLUTION is totally devoted to its clients needs for
an ever expanding market and therefore uses all social platform for effective advertisement.

b. Search Marketing:
The search marketing is an important tool for marketing in the digital platform, which
help to generate data of the target customer group. It is all about being there when you are
needed. DIGIMARKET SOLUTION realizes the importance of this for its clients and their
customers. DIGIMARKET SOLUTION has developed its cross-channel expertise; it has
advanced its analytics and home grown technologies.
All these enable DIGIMARKET SOLUTION to ensure that brands can meet their
customers as soon as they them. DIGIMARKET SOLUTION also maintains specialised
groups across the Retail / E Commerce, Financial services, Media Entertainment and Travel
Agencies, so that all brands in this sectors receive expert services to meet their specific
needs. DIGIMARKET SOLUTION guarantees improved performance across the largest,
most complex search programs.

36

c. Email marketing:
In this computer age the email is one of the easiest ways of communicating with people.
Thus email marketing helps its any organisation to understand its customers response so that
they can plan their next marketing strategy. DIGIMARKET SOLUTION email marketing is
easy, affordable and definitely maximises results.
DMS Company uses software called Intersperse email marketer, which includes
everything one, needs to create, send, track and profit from email marketing. It further
includes powerful tools, which enables DIGIMARKET SOLUTION to follow up with
prospects automatically, optimise email click through rates. Automatic list management keep
lists up to date and clean, see complete activity of a lead, solicit and track feedback with
surveys.

d. Bulk SMS Service:

In these days of fierce competition all the companies are struggling to draw the attention
of their customers. Through bulk SMS they somehow manage to find a place in their
customers mobile inbox. DIGIMARKET SOLUTION uses bulk SMS as one of its services
and sends advertisements of its clients to thousands of mobile users in a single shot. Its bulk
SMS services are aimed at generating consistent leads to their clients from varying
backgrounds. It puts together a whole range of marketing strategy to achieve best results for
their esteem clients.

e. Blog Writing Marketing Services:

The company have a team of specialized personnel who have expertise in writing
services. These experts will provide the necessary content, which will ensue that the products
can be positioned in the minds of the customers. All companies in todays world realizes the
need of assigned experts whose purpose is to make sure that its clients blogs are out there
talking to their relevant audience, creating leads, connecting people and generating revenue.
DIGIMARKET SOLUTION specializes on specialized blog writing services like lifestyle
blogs that focus particularly on analysing and changing trends in society and enlighten their
readers on the latest trend in food, shopping, fitness, cinema and other product as the client
may require. Like other companies DIGIMARKET SOLUTION focuses on blogs that cater
to knowledge based audience providing reviews on blogs, keeping readers up to date with
book readings and launches.

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18.Operational Model
An operational model is a design which shows how one wants to run his or her business.
It highlights the areas of strengths of the business, which are inherent in the plan and will
help to execute its capabilities and how each segment or capability is interlinked and
designed in terms of three components, which are process, technology and people to be
wholly effective.
The process component is all-inclusive and demonstrates the process flows, inputs,
outputs, which does what and how, what metrics and levels of consistency.
The components of technology include infrastructure, data, and application. The people
components include locations, sourcing, culture, governance, organisational skills and
rewards.
The operational model adopted by DIGIMARKET SOLUTION is unique because it
combines the experience of strategic thinking and detailed understanding of business
operations as well as the practicality of making change really happened in business.
The operational model of our company is based upon sound business plan, which specifies
target customer segments, products and services that will be offered, and the use of various
channels.
Our companys operational model quantifies the benefit, both operational and financial
with clear before and after means. The detailed design of our companys operational model
describes important changes needed to technology, people and process. Under people it
includes structures, skills, culture, governance, location, rewards. Under process it includes
flows, interfaces etc. and under technology it includes systems, data, information and
infrastructures.
The operational model of DIGIMARKET SOLUTION sets out clear steps of how to get
there, balancing speed, investments and risks and spelling out any interim states where
appropriate.
It mobilises teams to begin implementation. It creates an effective program management
capability to navigate the changed journey. It continually assesses any modification.
DIGIMARKET SOLUTION realizes that a clear articulation and understanding of the
operational model is required to ensure that it is all-inclusive.
Operational models are designed in accordance with the organizational enterprises social
and financial objectives, mission, market place dynamics, client needs, capabilities and legal
environment.

38

An operational model can be used for different purposes at different stages of its
development. The model serves as:

Means of simplifying big problems, so that the functions of the different groups can
be worked on independently from one another.
Prior to the selection of any implementation the operational model confirms that the
marketing plan has been well organised and full proved and that there is probably a
viable IT solution. The model serves as a backdrop for all necessary business and
technical functionality identification.
The operational model allows the developer of application to explain in depth their
plans based upon the models presentation of how the application will be carried out.
The model includes the budgeting purpose.
The model includes the grouping of application and technical sub systems, so that
they can be successfully put inside a single computer system.

Once all the relevant details have been included in it, the operational model is considered to
be at the next level, which is described as physical level. Such a model is then used as a blueprint
for the organisation.

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19. Business location

Any company needs to make a fundamental decision about its business location. It entails
precise planning and research. It involves looking at the size of population or demography.
Accessing the companys supply chain, the relative strength and weakness of its competitors,
adhering to its budget. Understanding state laws, tax system and all else.
DIGIMARKET SOLUTION when it decided about its business location to be London.
DIGIMARKET SOLUTION chose its business location London as it ensured it adequate
exposure to its customers .In addition DIGIMARKET SOLUTION kept other factors in mind in
selecting its business location which are-

a. Brand Image
DIGIMARKET SOLUTION realizes that its business location was consistent
with the image it wanted to maintain.

b. Competition
DIGIMARKET SOLUTION in choosing London and other business locations in
U.K identified the relative competitiveness or complementary characteristics of other
businesses around itself.

40

c. Local labour market

Our Company, in selecting its business location kept in mind the important factor
of potential employees in the area of its work and the mode of communication of its
employees.

d. Plan for future growth

It was also considered by our company in selecting its location DIGIMARKET
SOLUTION was equally mindful about the fact of its proximity to its supplier to find
them easily.

e. The safety issue

This is another important point to be kept in mind in choosing the business
location of any company .All company when choosing their business location consider
important issue like crime rate.
In choosing the business location our company had to evaluate its finances. Apart from
determining what DIGIMARKET SOLUTION could afford it had to be aware of other
financial issues like, hidden costs, taxes, minimum wage, and government economic
incentives.
DIGIMARKET SOLUTION in identifying its business location had to include
costs like renovation, decoration, IT system upgrade and so on. It considered factors like
income and sales tax rate of the state, property tax. It was mindful of the fact of whether
the location it chose for its business allowed it to qualify for government economic
business programs such as states specific small business loans and other financial
incentives.
DIGIMARKET SOLUTION in choosing London and other places throughout
U.K consider the fact of the location being business friendly or not. It had to understand
the laws and regulations imposed on businesses in a particular location. DIGIMARKET
SOLUTION saw the advantages of working with a small business specialist or
counsellors. It checked with all the programs and supports the state government and local
community had to offer.

f. Facilities
Facility management is subject to continuous development and innovation under
pressure to reduce costs and increase value to the core business of the organisation where
it is possible. Facility management is supported with training and professional
qualification often coordinated by facility management associations or institutions. The
main role of the facility manager includes health and safety, fire safety, security,

41

maintenance, testing and inspections, cleaning, operational, space allocation and changes,
educational facilities.
DIGIMARKET SOLUTION as a humanitarian company realize that the first and
foremost roll of its facility management is to ensure the life safety of all its employees. It
realizes this first and foremost. Nothing is more important than this. It attaches number
one priority to life safety.
The facility manager in DIGIMARKET SOLUTION is evolving to the extent that
the manager has to operate at the two levels, strategic tactical and operational.
In the case of the former clients, customers and end users have to be made aware of the
potential impact of their reactions on the provision of services, space, costs and business
risks. In the latter the facility manager has to ensure proper functioning of all areas of a
building to create an optimal, safe and effective environment for the employees to
function.
The facility management department of DIGIMARKET SOLUTION puts
emphasis on the control and management of many safety related issues. It realizes that if
it fails to give adequate importance to safety matters then it can lead to injury, loss of
business, insurance claims.
It realizes that if there is any adverse publicity about the company with relation to
safety issues, then it is very likely that the customers and investors will lose their faith
and trust in the company. This will greatly impair the goodwill and brand image of the
company.
Like all other humanitarian companies DIGIMARKET SOLUTION realizes the
potential danger of fire. there by it has made it essential for the facilities management
department to have in place maintenance inspection and testing for all of the fire safety
equipments and systems , keeping records and certificates of compliments .
DIGIMARKET SOLUTION also recognises the need for security to protect its
employees and the business. The facility management department of DIGIMARKET
SOLUTION looks after this issue of security.
In addition the facility management department of DIGIMARKET SOLUTION is
responsible for the day- to- day running of the office building .The facility manager is
required to keep tight control, and this sometimes entails daily reports or an escalation
procedure.
DIGIMARKET SOLUTION has selected London, Manchester and other parts of
U.K as it business location because they are highly strategic business centres. It has
offices in proper business localities, which enables its employees, clients and customers
to visit whenever there is a necessity.

g. Operational Plan
The meaning of operational plan is the day-by-day and month-by-month planning
of what an organization is doing. Strategic planning determines the direction of an

42

organisation. These two forms of planning must be integrated. Strategic planning plan at
one time was called long range planning. The Strategic plan aims to focus on
organisations vision and priorities in response to a changing environment and ensure that
all the members of the organisation are working towards the same goal. Strategic
management brings together or harmonises the full potential of an organisation by joining
together day-to-day operational decisions into the strategic process. Strategic plan is an
important task for the company all the time.
It is a thought management program and provides guidance to the activities of the
organisation; its main duty is to govern the activities of all the members in an
organisation. It allows organisations to monitor their thoughts and document their actions
and find out the real reason for whom they are working and why.
The process of planning gives an opportunity to the organisation to re-evaluate
their established guidelines and strategies with relation to the current scenario. It
encourages the organisation to ask questions like do we need to change our mission?
Have the needs of our target groups changed? Do we have to bid farewell to many of our
much cherished programs which have outgrown their usefulness and focus our resources
on something new? Do our current staff and management have the commitment and
capacity to achieve our goals?
Leadership most important of all the strategic planning process requires drive, the
diehard determination to fight against all odds, obstacles and difficulties. The entire
process requires an able leader who is capable of keeping the process moving against the
time lines. If the commitment is not strong, the outcome will not bear any fruit.
CONSULTATION after leadership the next segment includes the ability to recruit,
consult and persuade members and stakeholders. A successful, strategic planning process
will be genuinely inclusive.

20.The Strategic Planning Process

ENVIRONMENT SCAN: To review organisations current local, political, social and
economic environment. To identify needs, challenges and opportunities. To make a SWOT
analysis, which is an activity that identifies the organisations current strength, weakness,
opportunities and threats (Baker, 1981)?
PLOTTING DIRECTION On the basis of the environment scan, identify the strategic
decisions involved and decide what you need to do to respond to the major issues and
opportunities you face.
MISSION STATEMENT Review the organisations mission statement. Come up with
guiding principles, which will offer guidance and inspiration to staff and to the board.
Goals on the basis of mission statement select your specific priorities. What are the things
that need to be accomplished for the organist goals or objectives should be designed and want to

43

achieve its mission? Goals or objectives should be designed and worded as much as possible to
be specific, measurable and realistic.
ACTION PLAN includes specifying responsibilities and time lines with each objective or
who requires doing what and by when.
EVALUATION the method to honestly monitor and evaluate the plan and its result,
which includes documentation of how the organisation will know who has done what to do by
whom and when.
BUDGET usually budgets are included in the strategic and annual plan and with work
plans. Budgets specify the money needed to implement the annual plan. Budgets also describe
the main items of expenditure for human resource, equipment and materials.

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21.Managements and Organisation

a. Organisation Structure:
As the name implies this is an Organisational structure in which a good deal of
responsibility is devolved from the centre to the region or the divisions. There is separate
strategic business units who control their own plans but have aspects such as financial
controls and have strategic directions imposed on them from the centre. Management and

44

Organization Analysts assist organizations to achieve greater efficiency and solve

organizational problems, and study organizational structures, methods, systems and
procedures.
Disciplined organisation body is very much necessary for the growth of the
business. Organisational structure along with human resource management is very much
necessary for the growth of the business.
The main work of the organization body is to look after the whole thing so that
the client is fully satisfied with the service. All functional heads will be reporting to the
top of the management hierarchy for the tractions of each and every department.
So there is a clear and relatively simple line of communication which should
encourage easy access to information and quick decision making. A very good selfmanaged team is very much necessary. Each person of the team has to be divided into
different sections. A separate team has to be kept for the quality part, because after the
there has to be no space left for the client to make any questions. Now a day a strong
Network is necessary to take the business into a higher level.
Potential management employees should be there who can look after the product
designs and innovative marketing strategies. In general, over the last decade, it has
become increasingly clear that through the forces of globalization, competition and more
demanding customers, the structure of many companies has become flatter, less
hierarchical, more fluid and even virtual.

45

22.Hierarchy of Digimarket solutions

CEO and
Managing
Director

Project
Manager

Senior
Designer

Finance
Director

Marketing
Executive

Developer
Marketing
Consultant

Marketing
Consultant
s

Accountan
t

a. Board of Directors:
A board's activities are determined by the powers, duties, and responsibilities delegated to it or
conferred on it by an authority outside itself.

46

b. Management advisory board:

Advisory boards can be structured both to help with the direct operation of your company and to
keep you informed on various business, legal and financial trends that may affect the business

c. Attorney:
A lawyer can help in many business scenarios.

d. Financial director:
Financial director is also there to look after the expenses and profit of the company.

e. Marketing Executive:
Marketing executive will look after marketing consultants for a best solution.

So, most managerial support depends on structure; most employees depend on structure because
we all want to know where we stand in work as in life. Main things structure can do:

Achieve efficient use of resources- without structure we could use up all our resources.
Ensure accountability and monitoring- to prevent excess and to ensure that we are all

transparently responsible for something or someone.

Allow coordination between different parts of the organization- so that we can all help

each other.
Provide for communication- so that we all know broadly that what we all are doing to

prevent duplication.
Adapt to changes- both from within and outside the organization.

23.Organization Can Include Typical Development Activities:

Introducing new structures and processes

Working with team to accelerate their development
Improving cross department relationships
Improving learning opportunities for individuals and teams

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24.The Marketing Strategy

Marketing is also vital to understand business of any sort. In particular at the highest
levels of marketing becomes an integrating holistic culture that drives integrated, co-ordinate and
focused business practices with the interests of the customers as its heart and combination that
make such businesses difficult to beat in the market.
Some of the main issues involved:

Marketers help design products, finding out what customers want and what can
practically be made available given technology and price constraints.
Marketers distribute products There must be some efficient way to get the products from
the factory to the end consumer.

Marketers also promote products, and this is perhaps what we tend to think of first when
we think of marketing. Promotion involves advertising and much more. Other tools to
promote products include trade promotion (store sales and coupons), obtaining
favourable and visible shelf-space, and obtaining favourable press coverage.

Marketers also price products to move them. We know from economics that, in most
cases, sales correlate negatively with price the higher the price, the lower the quantity
demanded. In some cases, however, price may provide the customer with a signal of
quality. Thus, the marketer needs to price the product to (1) maximise profit and (2)
communicate a desired image of the product.

Marketing is applicable to services and ideas as well as to tangible goods. For example,
accountants may need to market their tax preparation services to consumers.

Branding is an important part of marketing. Branding is not just about logos and names.
Brands are now about image or more correctly its perception, branding is a link between the
attributes customers associate with a brand and how the brand owner wants the consumer to
perceive the brand: the brand identity. Over time, or through poorly executed marketing or
48

through societal changes in markets, a brands identity evolves gaining new attributes from the
consumers perspective.
Not all of these will be beneficial from the brand owners perspective and they will seek to
bridge the gap between the brand image and the brand identity, by trying to change the customers
perceptions brand image to be closer to whats wanted brand identity; sometimes this
necessitates a brand re-launch. A central aspect to brand is the choice of name. Effective brand
names build a connection between the brands personalities as it is perceived by the target
audience and the actual product/service, by implication the brand name should be on target with
the brand demographic, i.e. based in correct segmentation and targeting.
The third level of marketing is about the day to day operational running of marketing, it
encompasses the control of the Marketing Mix and the processes within a business that help
create and deliver that companys products and services to the customer. This level spans all
aspects of a business and across all customer contact points including:

A companys web site

How they answer the phones
Their marketing and PR campaigns
Their sales process
How customer contact staff present themselves (in person and on the phone)
How a business delivers its services
How a business manages its clients
How a business solicits feedback from its clients.

Businesses do not undertake marketing activities alone. They face threats from competitors,
and changes in the political, economic, social and technological aspects of the macroenvironment. All of which have to be taken into account as a business tries to match its
capabilities with the needs and wants of its target customers. An organization that adopts the
marketing concept accepts the needs of potential customers as the basis for its operations, and
thus its success is dependent on satisfying those customer needs.
A firms marketers carefully study of the needs individuals and businesses in order to
assess the potential of a market.

A market consists of people with purchasing power, willingness to buy, and authority to
make purchase decisions.

A target market - The group of people toward who an organization markets its products or
ideas with a strategy designed to satisfy their specific needs and preferences

Customer needs and wants vary considerably, and no single organization has the
resources to satisfy everyone.

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However, businesses do try to influence demand by designing products and services that are;
Attractive
Work well
Are affordable
Are available
Strategy is fundamentally about two things:
Deciding where you want your business to go
And deciding how to get there
Indeed a strategic plan is often compared to planning a journey; you know where you want to
go to and from where you are starting, how you chose to travel depends on the resources and
timescales you have in which to complete the journey. This is what a businesss strategic plan
does; it lays out where the business is heading for (targets/goals), where in currently is and what
resources it intends to use, at what time, with what expected result, to get there.
A firm gains competitive advantage by performing strategically important activities more
cheaply or better than its competitors. One of the reasons the value chain framework is helpful is
because it emphasizes that competitive advantage can come not just from great products or
services, but from anywhere along the value chain. Its also important to understand how a firm
fits into the overall value system, which includes the value chains of its suppliers, channels, and
buyers.
The choice of marketing strategy determines positioning choices which in turn determine not
only which activities a company will perform and how it will configure individual activities, but
also how they relate to one another.
Successful strategy in hypercompetitive markets is based on three elements:

Vision for how to disrupt a market- setting goals, building core competencies necessary
to create specific disruptions.

Key capabilities enabling speed and surprise in a wide range of actions.

Disruptive tactics illuminated by game theory- shifting the rules of the game, signalling,
simultaneous and strategic thrusts.

The Marketing concept was the most recent of the levels of marketing to develop and can
be summarized as a philosophy (belief) that an entire firm must be coordinated to serve the needs
and wants of its present and potential customers at a profit. The focus is on primarily finding out
what the customers want and then ensuring all in the firm understand this and work towards
delivering it to the customers.
The key idea is to develop a mutually beneficial relationship with the customer, i.e. a
50

companywide consumer orientation which will promote long-term success through feedback
from the customer base informing product development, pricing, distribution, customer service,
etc. At its core this philosophy recognizes that marketplace success begins with understanding
the customer.

a. Financial Plan
The financial plan is an essential component of a business start-up or an expansion into a
new business. Therefore it is absolutely essential to do a detailed analysis of the companys
prospect from the financial point of view and perform the business so that financial gain of it can
be achieved.
The administration of the finances and other cost associated for the smooth functioning of
the business is essential for the business and to judge the viability of the business. The start-up
prerequisites including the expense of the start-up plans have fundamental impact of directing
the business.
So re-orchestrating the required assets and ready to using those successfully is the matter
of concern and to do this the start-up cost necessity is the essential thing of the business. The
organization needs to secure their financial systems sufficiently, so that the customer can get into
the touch with the operations of the business at whatever time and anyplace from the around the
world.

b. Sources Of Finance:
Financial arrangements are of the most crucial and essential part of the business.
It is essential to mention that arrangement of finance must be done so as to meet the startup requirement and other expenditure that are necessary for making the business
operational. Though digital marketing services is a service based industry and not an
capital intensive business but still finances are required for purchasing the specialized
equipments that are necessary for providing various services. There are various sources
of finance that is available for starting of the business operation. The sources of finance
which will be used as means of sources of finance are mentioned below:

c. Bank Loan:
Bank Loan is one of the most readily available sources of finance that are
available from various financial institutions. For the start of this particular business of a
loan arrangement of 200000 will be done from HSBC bank. It is will be a complete
term loan and interest amount will be paid every month. The loan will be entirely
51

repayable in 3 years time frame every month with interest portion on the basis of
reducing balance. The rate of interest is 13% from the bank and it is floating in nature.
This implies that the rate is subject to change if there is a change in interest rate of the
bank.

d. Bank overdraft:
There will be bank overdraft facility will be arranged through financial institution
for any requirement of short term finance to the business. This particular working capital
will be arranged through HSBC Bank and will be taken based on the business station.
The repayment will be made within a 6 month time frame and 15% ROI will be
applicable on these finances.

e. Capital Investment:
The initial amount of starting the business will again be funded by the owner of
the business. The capital that is provided by the owner of the business is around
101500. The owner fund will have no cost. The owner will take the profit of the
company after fulfilling all the liabilities.

f. Capital Structure of the business:

The capital structure of Digimarket solution will be 50,00 GBP as owned funds

g. Start Up Requirement:
A detailed breakdown of the start-up requirement not only helps to analyse the cost that are
associated with the business, but helps to give a detailed view regarding the items for which cost
must be incurred. It is importance in the sense that it also helps the business to acquire fund and
other essential fund for start of the operational activities.
The detailed start up expenditure of the business of DIGIMARKET SOLUTION is given below
with the estimated breakdown of the necessary infrastructure:

h. Sales Projections:
The sales projection of DIGIMARKET SOLUTION is given below for the year 2015, 2016 and
2017.

52

i. Loan Repayment Schedule:

The loan repayment schedule of DIGIMARKET SOLUTION for the term loan of 100000 is
given below. It can be observed that a EMI of 3369.4 is required to be payable for every month
which converts to around 40432.8 is required to repaid every year as instalment. (Appendix 3)
The loan amortization schedule is given below:

j. Projected Income Statement:

Income Statement is one of the most essential components of the business in perspective to the
understanding of the financial aspect of the business. A projected income statement depicts the
costs that are associated for maintaining the business operation. Moreover it also depicts the
projected sales or the revenue that is expected by the company. (Appendix 3)

k. Income Tax calculation:

The rate of tax for companies doing business in UK is 30% for the assessment
year 2014-2015. Considering the fact that the tax rate to be similar the business have to
pay the tax on Net profit for the particular year. The expected Net profit posted by the
company in the 1st year of operation is 9600. Therefore the amount of tax that must be
paid is 30% of 6338, which comes to around 1880 GBP. (Appendix 3)

l. Break Even point:

Break Even point is the particular is t point of revenue that must be achieved by
the companies so that the there is a no profit no loss situation. BEP is used to analyse and
understand the point of business when it will cover all the startup funds invested in the
business and will start generating the profit for the business. (Appendix 3)
Formula used for BEP calculation is:
Fixed cost/gross profit (in %)*100 = Sales Revenue Break even ( Morrison 2014)

The Factors, which are considered calculating the BEP for digimarket solutions, are:
1. Pricing strategy
2. Technological Industry knowledge
3. Market rates

53

25000
20000
15000
10000

Total Sales

Fixed Cost

Variable Cost

Total
Expenditure

5000
0

Fig: Break even point of Digimarket Solutions

m.

Projected Balance Sheet:

The balance Sheet of a company is a very essential the sense that it gives a clear picture
of the companys asset and liabilities. It also portrays the companys current level of asset and
the current level of short term liability of the company. Moreover other important financial
position can be calculated which gives the investor a solid understanding of the companys
fundamental position in terms of financial performance. Moreover investor and other stakeholder
of the business able to a solid idea about the companys current position from the balance sheet.
(Appendix 3)

25.Risk Analysis:
The risk which are associated with conduct of the business which the organization must face
during different phases of operations are given below
Risk Analysis
Factors

Low

Issue with supplier

Medium

Customer shortage
Staff shortage

Increasing competition

Conflicts between employees

Technical issues

Financial
Risk

High

It is a fact that since the business is start up the business might face low
revenue and cash crunch which may hamper the operational activity of
the business. The business may also find difficulty in arranging
finances on timely basis which may act as a potential threat to the
54

business.

Operational
Risk

It is due to the fact that the company specialized in modern type of

marketing platform of digital marketing, it may face difficulties in
arrangement of resources. So the daily operation of the business can be
hampered due to low availability of resource.

Market Risk

The service the company offers is a modern concept of marketing tool.

Conservative marketing strategy is still predominant to business and
they essentially believes in the success rate of the old strategies of
marketing like giving advertisement in newspapers, banners and other
print media. So product and service offered by the company may not be
acceptable to all through it may be innovative and could be fruitful to
the customers.

Technological
Risk

Technologies are essence an integral part of the digital marketing firm.

The firm may face immense technological risk if new technology for
marketing in digital marketing platform is developed. It is for this
reason the company may face immense risk in operation and even
continuation of business.

26.Conclusion and Recommendation:

Digital marketing is one of most innovative and recently marketing tool. These tools of
marketing is getting popular with the change of time and companies across various sector are
adopting to this tool for marketing of its product and services because of huge increase of
internet users across the world and in digital platforms. It is evident that the potential of the
business is very high because of the above specified reasons.
As a start-up though the company might face difficulty in capturing the market because
of inexperience and limitations of resources but it is evident with time the company have
immense potential for success. The strong professional management and the strategy that are
adopted by the companys top brass will eventually help in long run sustainability ad success of
the business.

55

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28.Appendix
a. Appendix 1:

b. Appendix 2:

Will you be interested in making purchases based on online recommendations

Unlikely; 4% Very unlikely; 3%

Neither likely or unlikely; 8%
Likely; 20%
Very likely; 65%

Fig. : Exciting Digital Marketing Opportunities

Source: E-Consultancy

62

c. Appendix 3
Cash Flow Statements

Sales Forecast

63

Expense Budget

64

Break Even Point

65

66

d. Appendix 4
Presentation Slides

67

68

69

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