business plan for mobile commerce
DESCRIPTION
Last semester My friends & Me took Mobile Commerece courses and we plan to do mobile business related hair wings. Pls enjoy our final presentation and website " Hairwigs24.com".TRANSCRIPT
HAIRWIGSAT24.com
BUSINESS PLANSM80.20 Managing and Implementing Electronic and Mobile Commerce
Submitted To:Dr. Donyaprueth KrairitSchool of Management23 April 2013
Presenters:Miss Shreya Pradhan (114292)Miss Busaw (113953)Mr. Yvann Eitel Etounou (114289)
1
Introduction Our Company Targeted customer Market Study & Analysis Our product and services Customer Service Plan Website Overview Financial Analysis Payment Options Recommendation
CONTENTS
Website name: Hairwigsat24.com
Our aim: to provide hair wigs and accessories
both online and offline (24 X 7) to help our customer enhance their beauty through different hairstyles at affordable prices in South Africa
INTRODUCTION
Hairwigsat24.com is incorporated in Cape Town, South Africa
equally owned and managed by its three partners
Hire two full-time managers for store and warehouse and eight part-time general staffs and online sales executives to handle customer service and day to day operations.
OUR COMPANY
To be popular online retailer for hair wigs and hair products in customers in South Africa providing excellent products and innovative services.
Create an online virtual reality system that the users can customize their own hair wigs, purchase them.
To retain our position in South Africa and start manufacturing our new design and brand of hair wigs and accessories online.
Establish management structure to ensure successful running of the business and to provide reliable customer service
In long term, provide our services to other African countries in coming years and expand to Asia.
COMPANY GOAL
Young adults and middle age females as well as males in South Africa
People who want hair wigs for commercial and other purposes like stardom, parties, ramp walk/modeling, casual, etc.
People who have hair loss problems due to several health problems, genetic disorder and especially cancer patients throughout South Africa.
Playful hair wigs for children and coplay.
TARGETED CUSTOMER
The total population of South Africa is over 50 million with more than 40 millions are Black.
More than three quarters of the black population is under 25 years use hair wigs for different reasons.
According to Ministry of Social Affairs, using hair wigs has increased from 25 % to over 45% in the span of 10 years between 2000 and 2010.
The broadband internet access in South
Africa has doubled more in the last two years (8.5 million by 2010 - 2012)
MARKET ANALYSIS
Growth Projection
Mouth to mouth strategy
Advertise our product in market not only in popular and public places but also at the wholesale traders
The increase of internet users in South Africa is a plus point for our online sales.
We offer better incentives to pay for our products in line we can propose some free tools, competitive prices and excellent delivery service
MARKET ANALYSIS Contd..
MARKET ANALYSIS Contd..
Sales and Advertisement plans
Online advertising – ( paid advertising as well as through social network strategy)
offer timely seasonal and festival discounts and sales to our customers
Various membership services
Market Analysis using Porter’s Five Force
This business is not new one as it is practiced and done worldwide even with online services
It can be very easy to compete by other competitors. Solution : quality maintenance of both online and
offline as well as customer loyalty through excellent customer service.
Threat of New Entrants
Threat of SubstitutesOur suppliers can also be our competitors providing same kind of service online around the world.Many substitute products in the marketIf we compete with our own suppliers, the price may fall from our suppliers and they may offer many package and additional profits.
For widely available style of hair wigs, the customer can buy either from local shop or from us easily.
For new and attractive style which are not available yet in South Africa, the customer will have to buy from us because they can’t find it local shop.
Offer customized hair wigs which we can charge premium prices.
Power of Buyers
We opt for selling various brands of same kind of products so we don’t depend on a single supplier.
Also having many suppliers can reduce the purchase price of the product and also create connection between the supplier and the customer since there is a great competition.
Power of Suppliers
No hair wig online retailer in South Africa. However, other international retailers ship to African
countries (but import tax and custom is a deterrent).
Main competitor - well-established local shop in shopping mall or standalone beauty solon/clinics.
Small individual offline retailers distributed throughout South Africa pose rather intense competition.
Intensity of competitive rivalry
Our product line varies:
◦ Long or short Lace Wigs (straight/curly/wavy)◦ Colored hair extensions and strips, ◦ Front and back laces ◦ Hair accessories like hair bands, flowers, scalps ,
clips, ribbons , metallic jewels , etc.
PRODUCT AND SERVICES
CUSTOMER SERVICE PLAN
Information Quality
System Quality Service Quality
•Detailed product pages
•Online live chat support
•Telephone support
•Handling out of stock items
•Easy delivery tracking and resolution
•Calls for abandoned shopping carts
•Online user reviews •Multiple payment options
•Sales promotion and gift cards
•FAQ and knowledge based support
•Quick and easy checkout
•Follow up surveys
WEBSITE OVERVIEW
FINANCIAL ANALYSISStartup expenses
Company expects to raise $5,500 (USD) of its own capital Borrow $6,000 (USD) guaranteed by the Sasfin Bank, Cape Town as a five- year loan Revenue generation : customer sales (major) , membership fees, transaction fees and advertising fees in later years.
Anticipated sales for 5 years (Baseline scenario): Year 1 Year 2 Year 3 Year 4 Year 5
US$40,000 US$50,000 US$68,300 US$75,545 US$87,800
Projected Net Profit (Base line scenario)
The company does not anticipate any cash flow problems as fromsecond year onwards.
Break-even AnalysisThe company should break even by the 1.43 year of itsoperation as it steadily increases its sales entering its secondyear onwards.
FINANCIAL ANALYSIS Contd..
Year 1 Year 2 Year 3 Year 4 Year 5
- US$13,095 US$27,224 US$32,493 US$41,557
Baseline Vs worst case
Baseline Scenario
Net Present
Value (NPV)
73022.93902
Return of
Investment
(ROI)
11.638
Payback Period
(in years)1.43
Worst case Scenario
Net Present
Value (NPV)497.971
Return of
Investment
(ROI)
2.734
Payback
Period (in
years)
More than
5 years
Fig: Baseline scenario
Traditional way of purchasing products from the store (offline)- pay in cash , cheques or use cards
Online - PayPal Purchase Button Wizard PayPal Options - Add to Cart, Buy now and subscribe Toll-free phone number for ordering Printable order form that can be mailed or faxed
Security considerations
Transmission of sensitive data such as credit card numbers of customer using a technology called Secure Sockets Layer (SSL)
SSL requires that a trusted connection be negotiated between the customer's Web browser and a company's Web server.
PAYMENT OPTIONS
Regular follow up surveys online and offline for the customers and getting feedback regarding product quality, price and company services.
Timely review of advertising strategies and if necessary allocation of more budgets to advertising or figure out more innovative forms of advertising using social media campaigns.
Regular follow-up with customers by phonecalls, mails and other sources regarding new brands and designs.
Timely review of SWOT analysis as of fear of any new competitors online as well as offline.
Regular monitoring of consignments delivered and services provided to the customers.
Tie ups with logistic partners for better and timely delivery of the products.
RECOMMENDATION
THANK YOU !