Building an E-Commerce Business it Term Paper
- Length: 10 pages
- Subject: Business
- Type: Term Paper
- Paper: #7494116
Excerpt from Term Paper :
The sixth point is that they accept credit cards and other cards, so that the customers find it easy to pay for the purchase, and the company also can ensure that they do not end up losing any money due to cheating by the customers. All these points are important and have to be covered within the plans for the new organization of instantwheel.com. Even with this, since this site will be the newest of all sites, it will have a natural disadvantage. To cover this disadvantage up, it would be better to tie up or purchase an organization which has existed for a long time, so that 'a wealth of experience' can be claimed for instantwheel.com.
Unique Selling Position
For any business to be a successful business, the organization has to have a Unique selling position. This means that this particular position sets them apart from other business in that area. Here the main source of our business is through Internet, and this makes it essential that our Web site is different from the Websites of others. (Don't Re-Invent the Wheel...Improve on it) if it is just a copy of other sites that exist on the Web, then it will just be a waste of money trying to sell it through the Internet. The effort has to be on developing a site that is better than the other sites, and there are many of them. All of them just talk about the choice that they will provide and the cheap price at which they will sell it. When you copy someone else, you cannot be number one, and we have the objective to be number one in the business of selling wheels.
It is very important to find out what the people are interested in, and this can be found out by talking to people and the websites where they assemble in chat rooms. It is important to get on to the chat rooms and find out details. This will take quite some time in doing, though it will take much less time, than conducting market research. The costs also will be much less than the tens of thousands of dollars that would have been required for market research if done directly, with questionnaires and going from house to house. However the requirement for starting on this is the development of Unique Selling Proposition, and then conducting the research on the market is possible. These also make it possible for the entire set up to be set up in a manner where the person thinking of it originally is a venture partner. (Don't Re-Invent the Wheel...Improve on it)
Customer needs for this product is very simple - they have bought a cheap car and on the second hand market. This does not fit the image that they would like to project of themselves as an individual, and they would like to change the car to one which would project an image of being specially built and designed for them. The reason why they are buying the wheel set is because of their need to build the car to a level of themselves that they would like to project. Remember the line "you're not the type of Gangsta they want to mess around with." (VCT Wheels) These people certainly have developed an understanding of the people who are buying their products, and this is just the reason which has been stated.
Next is the question of the 4Ps - Product, Price, Place, and Promotion. These are quite clear as we are talking about wheel sets for the cars, and that is the product we are trying to sell. Regarding Price, it is a little difficult to answer as we are clearly not talking in terms of the lowest price possible - there are many others who are already trying to go on that path. This has also been made clear already - "When you copy someone else, you cannot be number one, and we have the objective to be number one in the business of selling wheels." Thus the price has to be economical for us to go through this path, and that depends on the price for which the wheel sets are finally purchased, the costs that we have to incur for their collection and distribution all over the country, insurance, etc. At the same time, it will have to be lower than the costs for which these are sold in the local market. Regarding place, the question is quite clear and they will have to go from us directly to the customer, as we have to maintain our links with the customer.
When we try to distribute the product through local agents, then the local agents will end up having more influence over the customer than our influence over the customer. For this purpose we shall have to develop agreements with home delivery organizations who will pick up the product from our store, or their local warehouses/offices, take it to the places where the customers stay, and deliver it to them, or have the arrangement of sending an information to the customer to pick the item up from their offices or warehouses there. Since we are talking in terms of large quantities to be dealt with, the difference in costs with selling it through local agents is not expected to be high. At the same time, we avoid the risk of the local agent picking up the business on his own and our efforts for developing the client being lost. Regarding Promotion, it will have to be done through the Internet as that is the medium we are using for our contact with the customer. The promotion can be done in selected sites of automobile sellers, automobile magazines, fashion sites, car race sites, etc.
WIFM: Regarding our gains, it is quite simple and can be tackled in two ways - either as a commission from the manufacturers based on the sales that we get them, or as a direct profit through purchases from the manufacturers and sales to the customers. The final decision on this will depend on the financial situation of the organization after the full details of investments are known.
Grassroots Marketing - the position of the company is clear and it should not be thought of as a company trying to sell products from the shop or some other similar point. It is an organization that sells to customers all over America through Internet, and shipped directly to the houses of the customers. This is felt to be the easiest and most economic method for the customers. At the same time, the customers would like to call us up and verify whether it is a real organization or just an address for collecting money. For this purpose we will have to acquire a telephone number which they can call. Instantwheel.com will be an organization which will have marketing persons to reply to the queries from customers, and try their best to satisfy the customers. The organization should be devoted to customer satisfaction, and customers should depend on instantwheel.com for all their needs. (F.A.Q. And Site Help)
Contests or sweepstakes - Instantwheel.com will be an organization based on developing the beauty of cars, and the contest should develop that image further. Thus it should organize a contest for the most beautiful car in United States. To participate in this contest, car owners will have to send photographs of their full car, properly decorated to Instantwheel.com and these pictures will be featured in the website. Then a poll will be taken from the visitors to the site, and those who have some dealings with the organization regarding the most beautiful car. The car which is judged as the most beautiful by the greatest number of people will be given an award with a new set of the latest set of wheels, so that the car may look even better.
Advertising - it is clear that the site will be to sell wheels for cars so that the cars may look beautiful. Thus the emphasis will have to be on contacting potential customers in areas where they visit. This will have to be on the Internet only as the activities of the site will be on the Internet only. It is expected that these persons normally visit automobile sites where they are kept informed of the latest development in technology of automobiles or where the methods of beautifying cars are taken up. The exact names of such sites will have to be found out after a certain amount of research is carried out in the matter. Then one can think of advertising in these sites through mutual links, or payment of money as decided to be appropriate after the details are fully obtained.
SEM - the wheels are the most important part of the car, and as visible as the rest of the body. When the wheels get old,…