Marketing Plan
Marketing Management
DATE
20/07/2012
Term Report
Marketing Plan
SUBMITTED TO
Ms. Beenish Nida
Bushra 911
Hira Fatimah 1088
Saba Matin 10935
Iqra University North Nazimabad Campus
Table of Contents
Work Load Distribution 7
Acknowledgment 9
1. Executive Summary 10
2. Market Analysis 11
2.1Market Definition: 11
2.2Market Size: 11
2.3Market Segmentation: 13
2.3.1 Demographic Segmentation: 13
2.3.2 Geographic Segmentation: 14
2.3.3 Psychographic Segmentation: 14
2.3.4 Behavioral Segmentation: 14
2.3.5 According to Benefits Sought: 14
2.4Competition: 15
2.4.1Direct Competitors: 15
2.4.2In Direct Competitors: 15
2.4.3 Competition and Market share 16
2.4.4 Competitiors strengths and weakness 16
3. Consumer Analysis 17
3.1Nature of buying decision: 17
3.2Participants: 19
3.3Demographics: 20
3.4Psychographics: 20
4. Factors that Cause Customers to Switch 21
4.1 Pricing: 21
4.2 Inconvenience 21
4.3 Core Service Failure 21
4.4 Service Representatives mistakes 21
4.5 Response to Service Failure 21
4.6 Competition 22
4.7 Ethical Problems 22
4.8 Involuntary Switching 22
5. Service Quality Management 23
5.1 Strategic Concept: 23
5.2 High Standards: 23
6. PESTEL Analysis 24
6.1 Economy 24
6.2 Politico Legal 24
6.3Demographic 25
6.4 Technology 25
6.5Echological(natural) 26
6.6Sociocultural 26
7. SWOT Analysis 27
7.1Internal(Strengths) 27
7.2Internal(Weaknesses) 27
7.3 External(Threats) 28
7.4 External(Opportunities) 28
8. Mission Statement and Vision Statement 29
8.1 Mission Statement 29
8.2 Vision Statement 29
9. Objectives 30
9.1 Short Term 30
9.2 Long Term 30
10. Marketing Strategy- Market 31
10.1 Market Segmentation Bases 31
10.1.1 Demographic segmentation 31
10.1.2 Psychographic Segmentation 31
10.1.3Behavioral Segmentation 32
10.1.4 Geographic 32
10.2 Target Market 32
10.3 Market Positioning 33
10.3.1 Positioning Statement 33
10.3.2 Positioning Strategy 33
10.3.3 Slogan 35
11. Marketing Strategy Product 36
11.1 Levels of Product 36
11.1.1 Core Benefit 36
11.1.2 Actual Product 36
11.1.3 Augmented Product 36
11.2 Product Life Cycle Stage 36
11.3 Product Attributes (Product Features, Style&Design, Quality) 37
11.4 Brand Name, Brand Image, Brand Equity 37
11.5 Product Support Services 37
12. Marketing Strategy- Price 39
12.1 Pricing Objectives 39
12.2PricingMethod…………………………………………………………………………………………………….39
12.3Pricing Strategy……………………………………………………………………………………………………39
12.3.1 Penetration Price: 39
13. Marketing Strategy- Distribution(Place) 41
13.1 Geographical Coverage 41
13.2 Distribution Channels 41
13. Marketing Strategy- Promotion 43
13.1 Promotional Goals 43
13.2 Advertising (Reach, Frequency, Media Theme) 43
13.3 Sales Force requirements, techniques and management 43
13.4 Sales Promotion 44
13.5 Publicity/ Public Relations 44
13.6 Direct Marketing 45
14. Budget 46
References: 50
Work Load Distribution
Usman GhaniAwan:
Enrolled as 10939, Usman has contributed individually in the following areas: * Market Analysis * Consumer Analysis.
Bushra Mehmood :
Enrolled as 1088 Bushra has contributed individually in * PESTEL Analysis * Market Segmentation Bases * Target Market.
Saba Matin:
Enrolled as 443 Saba Matin has individually contributed in * Distribution * Market Positioning * Mission and Vision Statements.
Samyia Ahmed:
Enrolled as Samiya Ahmed has contributed individually in * Market Strategy –Product, * Objectives.
Hira Fatimah:
Enrolled as 10935 Hira has contributed individually in * Factors that cause Customers to Switch * Service Quality Management * Marketing Strategy – Price.
Team Work: * SWOT * Executive Summary * Budget * Promotion,
Acknowledgment
This report is the product of the efforts of our group members. After being thankful to Almighty ALLAH we are really thankful to our group members for putting their efforts to make this report. We are also thankful to our teacher Ms.Beenish Nida who built our confidence and gave a chance to think, explore and present our ideas and findings.
1. Executive Summary
Online Shopping industry is growing day by day in the world and it is expected in future the online shopping will take up the position of traditional way of shopping. Technology has played a vital role for the success of this concept. Researches shows that only in USA 75% people who use internet use this way of shopping. Online Shopping is recognized in the world as the best and safest way of shopping which can one expect.
When we look in Pakistan, people use the old traditional way of shopping. Its main reason is the lack of awareness amongst the people about the online shopping. There are few companies who offer online shopping and those companies are not yet able to generate much awareness amongst the people. Looking at all these facts we realized the need of an Online Shopping company which can built the trust of the people on online shopping.
In this regard we decided to launch a service provider company in online shopping industry "e Comfort" which can be trusted by every shopper in Pakistan and beyond. The idea is to have an online portal which can provide sufficient information about different brands, consumers can view multiple options for their desired products and can order at the same time. e Comfort will have the huge list of products which will be made available to shop online, this will be done by the partnership which e Comfort has with the country 's biggest hyper store i.e Metro Habib(Metro & Makro). The other idea is to have multiple channels for order placement and payment of the purchase. Orders can be placed through SMS, Telephone calls, Smartphone applications along with the website. Mode of payments options will include Online payment through VISA or MASTER card, Cash on delivery, through Easypaisa, cheque at delivery(Only for the privileged customers).
2. Market Analysis
2.1 Market Definition:
Online shopping or online retailing is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service. An online shop, e-shop, e-store, Internet shop, web shop, web, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or shopping centre. The process is called business-to-consumer (B2C) online shopping. When a business buys from another business it is called business-to-business (B2B) online shopping.
Online shopping has grown in popularity over the years, mainly because people find it convenient and easy to bargain shop from the comfort of their home or office. One of the most enticing factor about online shopping, particularly during a holiday season, is it alleviates the need to wait in long lines or search from store to store for a particular item.
2.2 Market Size:
Internet Shopping is largely carried out throughout the globe. E-commerce has become well over 100 billion dollars market with a growth rate of almost seventy percent per year. Estimates predict that more than 75 percent of American internet users carry online transactions for either buying or selling online products/services. Your online presence equips your business with reach that extends beyond the regional boundaries. Hence, allowing more target audience and resultantly the sales.
As far as E-commerce in Pakistan is concerned, a research was carried out solely. According to the result of research table shown below, It was found that people don’t feel secure doing online transactions, they are mainly afraid of the fact that their credit card can be misused. Despite of all this, the research findings suggests that online stores are the best options for your shopping. Internet Users | 20 Million/ 11.8 % | Cell phone users | 120 Million/ 68.8% | People who shopped Online or using cell phone | 30% | People who were satisfied with shipment | 100% | People who found online shopping convenient | 100% |
Charts showing the prospect market:
Cell Phone users in Pakistan:
Internet users who shop online in Pakistan:
2.3Market Segmentation:
The market for online shopping is divided into many segments like Demographic, Geographic, Psychographic, and Behavioral and according to the benefits sought.
2.3.1 Demographic Segmentation:
Online shopping companies can be identified by demographic variables. The common variables could be the companies having record of the visitors email address, Knowledge about the websites, the navigator programs which they support or the versions of the browsers. These can be the basis on which online shopping companies can be segmented demographically.
2.3.2 Geographic Segmentation:
Online selling companies can be segmented on the basis of their geographical locations. Network connectivity and place of connection matters a lot when looking for zero down time. If any company located in outskirts of the city then there is the probability that its connectivity may suffer because of it.
2.3.3 Psychographic Segmentation:
Online shopping companies can be segmented on psychographic basis. The attitude of a company towards the privacy and security of the data (whether they are certified for trade over internet e.g.: PayPal, verisignetc). The attitude of the company towards the delays in delivery and other problems related to the shopping and also the attitude of the company towards the innovative website designing.
2.3.4 Behavioral Segmentation:
Online shopping companies can also be segmented on behavior. It may include method of access (whether the company has a direct link or via links), User categories (new or old users), level of interactivity with the user (feedback) or pattern of information search on the website and between websites.
2.3.5 According to Benefits Sought:
Online shopping companies can also be segmented according to the variables associated to navigation and purchase motivation. It could be by benefits which can be obtained by providing additional information on products or it could be the companies focusing on advantages using the internet as a purchasing medium.
2.4Competition:
In Pakistan there are very few companies operating in online selling business. Most of them are satisfying the needs of consumers who look for electronic products which include cell phones, Laptops, Computer accessories and other related electronic products.
2.4.1Direct Competitors:
The direct competitor for e-Comfort is TCS connect which is the division of TCS Pvt Ltd. TCS connect is the online service which provide online shopping and delivery, which is the similar service which e Comfort offers but the competitive advantage which e-Comfort has its big list of products which covers from grocery to generators from stationary to cosmetics there are many product categories offered by e-Comfort. e-Comfort not only offers huge range of products it can also deliver the products in big quantities as well, the partnership with Metro which is the biggest Hyper store has strengthen these capabilities. Whereas TCS connect offers few categories like electronics, books, DVDs etc. TCS connect is a strong competitor as it is a service from a well known brand in logistics which have millions of customers nationwide.
2.4.2In Direct Competitors:
The indirect Competitors for e-Comfort are the hyper stores in town namely Hyper star, Imtiaz and Chase. These stores offer multiple products under one roof but for this a prospect has to walk in to those stores for a purchase. The benefits which these stores offer are the everyday low prices. In order to compete with these low prices e-Comfort has developed a pricing strategy which will make sure the consumers receive the products on same low prices while shopping online, In this way customers will get a benefit of saving their time, energy and money required for shopping from hyper stores.
2.4.3 Competition and Market share
Online shopping industry is very new in Pakistan and people are not completely aware of this service therefore the market share of competitor is not very large there are still very large number of people who can become potential users of the service once they get aware of this service. TCS connect being a service from a well known brand has the maximum market share at the moment. 2.4.4 Competitors strengths and weakness
Strengths and weaknesses of TCS Connect;
Strengths
* Service from a well known brand. * Strong Logistic Network. * Over 500 express centers for support.
Weakness
* Limited product List. * High service charges. * Mode of accessibility (TCS accepts orders via Internet and phone)
3. Consumer Analysis
A successful web store is not just a good looking website with dynamic technical features, listed in many search engines. In addition to disseminating information, it is about building relationships and making money.
Businesses often attempt to adopt online shopping techniques without understanding them and without a sound business model, producing web stores that support the organizations ' culture and brand name without satisfying consumer 's expectations. User-centered design is critical. Understanding the customer 's wants and needs and living up to promises gives the customer a reason to come back and meeting their expectations gives them a reason to stay. It is important that the website communicates to the customer that the company cares about them.
We did consumer Analysis in order to find out what are the expectations of the consumer and how we can better deal to come up to the expectations. This Consumer analysis is based on four important factors which are the nature of buying decisions, participants in the buying decision, demographics and psychographics of the consumer.
3.1Nature of buying decision:
Buying Decision differs from person to person. Depending upon the need of the person, the decision gets change, even if the product is small. There are different factors which influences the nature of buying. Hence buying decision has been classified into four different categories such as Complex buying behavior, Dissonance Reducing buying behavior, Habitual buying behavior and Variety seeking buying behavior. These are classified depending upon the degree of involvement and degree of difference among brands. e Comfort is the service which deals in range of products which includes high involvement products and low involvement products. The consumers of e Comfort according to the different natures of buying decisions are listed below; * Consumers with Complex Buying Behavior:
Consumers have complex buying behavior usually when they look for high involvement products, for this they look for multiple options and do some research before making a purchase decision. e Comfort is the kind of service which gives multiple brand options with a comparison which will provide all the information on a screen. The whole process of research contracts into few clicks and if a consumer is satisfied with any product again a click will be required to get an immediate purchase. This will help the complex buyers to make a decision more easily. * Consumers with Dissonance Reducing Behavior:
This involves high involvement of the buyer but a less significance difference among the brands. For example Buying an Air Conditioner or a Laptop. Here the product is highly priced but almost all every brand gives the same features. Sometimes this may involve the post purchase dissonance behavior. Here the consumer looks at the disadvantages of the product after purchase.
For such kind of consumers the reviews of different brands will be made available so that the consumer can read the feedback from the users of any specific brand. This will also encourage the users to make a confident decision.
The difference from shopping from e-Comfort and from the market will be clearly communicated to the consumers through the messages on the website. Further more testing warranties, damage claims and similar kind of post purchase activities will be strongly implemented to give consumer confidence on the purchase made on e-Comfort.
* Consumers having Habitual Buying Behavior:
Here there will not be any kind of involvement from the consumer. Here the purchase happens depending upon the Brand familiarity. Here the consumer involvement is low and less differences among brands. This happens based on the habits of buying. For example Buying of a liquid soap . Most of the people prefer Dettol because of the brand. But there are other products like Lifebuoy with less significant difference.
* Consumers having Variety Seeking Buying Behavior:
Here the consumer involvement is low but there will be significant difference among brands. For example Biscuits, when we buy a biscuit we do not know the taste hence after consumption only we can tell that whether to go for the brand or not for the next time. Here the companies try to change the nature to Habitual Buying behavior by different strategies. Sometimes this depends upon the retailers too.
3.2 Participants:
Buying decisions in online shopping industry involves below mentioned participants; * Initiator: This can be the marketing stimulus by e Comfort. * User: These are the consumers who will be using our service. * Influencer: These can be the technical experts or existing users who share their views. * Deciders: These are the decision makers.
3.3 Demographics:
The role of demographic variables in buying decisions in online shopping industry matters a lot. Especially the variables like age and income. Online shopping attracts the consumers who are in the ages of 18-50. The people in the age brackets of 18-26 are the young buyers who love shopping, they spend good amount of time on internet and social media and look for information regarding new products. These people can be the potential customers for e-Comfort, as e-Comfort provides up to date information about different brands and it also allows the consumers to order right at the moment and without much effort product will be delivered to them.
The consumers in the age brackets of 27-35 are the young professionals who don 't get much time for shopping they can be the potentials customers as e-Comfort reduces the amount of time usually spend on shopping.
Consumers between the ages of 36-50 are the mature users who like to evaluate different products and also looking for the product value. These can also be the potential customers as e-Comfort offers the reviews and comparison of a product with other products. Energy needed in shopping activity can be saved by using this service this is an added advantage which will attract the consumers of this age group.
3.4 Psychographics:
Role of psychographic variables in buying decisions of consumers is also very important in online shopping. The major thing which stop consumers from online shopping is the skepticism they posses about the mode of payment. Consumers are concern about the security of their credit card numbers and their other information. Most of the consumers are not aware of the procedure which follows when an online transaction is made. e-Comfort can cater this situation by providing an option of paying cash on delivery this will attract all those consumers who avoid online shopping just because of online payments.
4. Factors that Cause Customers to Switch
4.1 Pricing: * High Price * Price Increases * Unfair Pricing
4.2 Inconvenience * Wait for Appointment * Wait for Service
4.3 Core Service Failure * Service mistake * Billing errors
4.4 Service Representatives mistakes * Uncaring * Impolite * Unknowledgeable * Unresponsiveness
4.5 Response to Service Failure * Negative response * No response
4.6 Competition * Found better service
4.7 Ethical Problems * Cheat * Hard sell * Unsafe
4.8 Involuntary Switching * Customer moved * Provider closed
5. Service Quality Management
For maintaining the quality and level of our service, and make sure that any type of situations that causes customers to switch does not occur, we will be adapting the four practices
5.1 Strategic Concept:
As we researched, we come to know that Top service companies are customer obsessed. For this we have a clear sense of our target customers and their needs. As we understand the needs of our customers we have developed distinctive ways for them to reach us, like through email, through web through their android phones, through sms or even through a phone call.
5.2 High Standards:
The best service providers set high service quality standards. We are differentiating our service by claiming that we have a better and faster delivery system.
There are three levels of differentiation: * Reliability: the delivery would be on time. * Resilience: better at handling emergencies and answering the inquiries. * Innovativeness: for this we have developed better ways for customer to access us, like from android phones, email, sms, or a phone call.
6. PESTEL Analysis
6.1 Economy
Economical factors are very important for the analysis before the start of any business. Online shopping industry is the newly emerging industry in Pakistan which is backed by the technology. The economy in Pakistan at the moment supports the technological advancements more investment has been made for the growth of communication networks all over Pakistan. DSL and Broadband is made common in the major cities of Pakistan and it is expected to cover all parts of Pakistan in near future.
6.2 Politico Legal
Factors are how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labor law environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide and those that the government does not want to be provided. If any tax policy on production changes, the grocery stores that we coordinate will have to pay more to the government and after all they will have to increase the overall cost which will increase the cost and it will impact our business also. If there is a political stability in Pakistan, like political parties play their actual role for development of country it will affect all the businesses positively.
Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products. Consumer protection consists of laws and organizations designed to ensure the rights of consumers as well as fair trade competition.
The above mentioned laws have been made for both; organization and consumer. We must have to follow laws as their responsibility. We don’t discriminate our employees on the basis of race, nationality etc.
6.3Demographic
As time passes there is a change come in demographic trends such as aging population, desire for online home delivery service, the increased role of women as business owners, and the rapid growth of minority communities.
As different factors changes our business will face more challenges for the changing needs. In Karachi there is a big trend of shopping from hypermarkets. But after doing survey, we felt a changing need of online shopping. Now people of Karachi want a place where they easily buy there required products without consuming time.
6.4 Technology
As we know this is the era of technology, by following the large impact of technology on the masses; we have launched our service with new technology, because it is the psychology of the people that they adapt latest things In Karachi there are good numbers of people who are aware of technological advancements such as students, businessmen, educated housewives.
6.5Echological (natural) We are offering a service which has no physical entity so that it is completely environment friendly.
6.6Sociocultural
Social hierarchy, traditions, social norms and customs play significant role in determining individual and collective behavior in urban markets. We conducted a research and we came to know that people behave differently according to their culture and social class. In Karachi, all representatives of the people of Pakistan live here and keeping them in eyes we provide different packages for customers.
7. SWOT Analysis
7.1Internal(Strengths)
* Media. * Internet, which is available 24 hours and people, can contact us easily anytime. * First mover advantage (This advantage may stem from the fact that the first entrant can gain control of resources that followers may not be able to match) * Strong customer base (To attract customers, make yourself visible and give them access to you. Your customers will eventually become the champions of your brand) * Diversified product line. * Online tracking and customer information base. * Top quality web site. * Updated inventory system. * Multiple payment options.
7.2Internal (Weaknesses) * Availability of equipment and automobiles. (Must always work properly). * Logistic network is not very wide.
7.3 External (Threats) * A slowing economy with higher levels of inflation affecting the price of food and greater fuel costs impacting transportation cost, can have lower profit margins. * Cost conscious consumers will shift their buying habits to less high-end foods and gourmet items (with greater margins) to lower margin food items. * Conventional grocers beginning to do online sales which will increase our market competition. * Uncertain condition of city. * Hackers * Bad economy * Government regulation of e-commerce as there may be restrictions applied.
7.4 External(Opportunities) * Partnerships with METRO to sell their products online. * We have an opportunity to make alliances with grocers who want to go online. * We are selling of a more diversified product line. * Penetration into foreign markets.
8. Mission Statement and Vision Statement
8.1 Mission Statement
We help people to save their time by delivering what they want, whenever they want
At their doorsteps, with exceptional quality of customer services.
8.2 Vision Statement
To be the largest and finest service provider throughout the nation and for this
We believe in making our customers feel more relaxed, satisfied and pleased .
9. Objectives
9.1 Short Term * Setup the business successfully in Karachi. * Hold the targeted customers at most. * Keep learning and adapting the technologies
9.2 Long Term * Expansion of our business to other cities * They have the best goods, we have the best possible way to bring it to your reach * Maintaining long term relationship with the customers to serves their needs in the best possible way.
10. Marketing Strategy- Market
10.1 Market Segmentation Bases
10.1.1 Demographic segmentation
We have segmented our market demographically; based on measurable statistics, such as age, income, gender, family size, occupation, education, religion and race. We are targeting the age group of 18 and above. Our focus is lower middle and upper middle class so we are targeting this income group.
If we talk about gender; our service is for both male and female who have either big or small family size or whatever occupation and religion they belong; they can take benefit from our service.
Here we are focusing on educated class because for using our service; customer should be educated to some extent.
10.1.2 Psychographic Segmentation
Consumers are divided according to their lifestyle, personality and values. It is the era where people are very busy in their personal and social lives. They have to work more for competing with their fellows and they also have to adapt changing living standards. We have pondered over all these psychological factors and shape our service as our customer wants. Our customer can easily approach us and by using our service he would be satisfied that his living standard is up to date.
10.1.3Behavioral Segmentation
There are different behaviors of customers which customers show at different levels. We are shaping our service according to customer behavior. People of Karachi are adapting the trend of bulk shopping and on different occasions like ramzan and eid; people used to do heavy shopping.
There is still a trend of joint family system so people buy according to their requirement. We are providing different packages and offering for people; so when customer see his benefit, he automatically attract.
10.1.4 Geographic
We are initially launching our service in Karachi only.
10.2 Target Market
Life is getting busier with the passage of each day. Individuals are striving hard to earn more for their families and businesses. The fast paced life has reduced the time for shopping especially for grocery. Groceries are the need of every home. Grocery shopping has become more of a hassle which no one likes to take. The “e comfort” team has found a business opportunity in selling the grocery items at the door step.
We are adapting “differentiated marketing”
Because we are providing different service which is a solution of customers’ problem. Our service differs with our competitors in the context of pricing, we are in question mark phase, and we have to gain market share as well as loyal customers that is why we will make sure our customers that you are most valuable for us and we are giving you best at low price.
Our main focus is convenience. We are providing convenience to our customers at their door steps which are a positive point in our favor to have increasing numbers of customers. Last but not the least, we have a team of people who have expertise in their related fields, they will be with you for helping you when you need them. So by using “Differentiated marketing strategy” we will be able to cater large segment of our target.
10.3 Market Positioning
10.3.1 Positioning Statement
“To all people who are quality conscious and time constrained, our E-Comfort is an online service which provide you everything at your door step at just a click away.”
10.3.2 Positioning Strategy
Our online shopping website has everything under one roof, we offer every kinds of products form famous and elite brands to local brands. Our customers most certainly will have great shopping experience. We believed that customers are king and they deserved best quality and material in order to maintain it we are not willingly to compromise the quality at any cost. To make it happen our products will be reachable to everyone and it is affordable for everyone. Our products will be sold through online services; such services would be website and telephone. We will be parceling the product globally which will be delivered on our customers doorstep. We propose distinct offer from our competitors which are SAVE TIME:Our online shopping website aids you to safe your prestige time, now you don’t have to roam from mall to mall. All you have to do is to log on and you enter the world of shopping in a second. Our customers are welcomed at any time. Our website give you the opportunity to shop 24 x 7 and also reward you with saving your time and avoiding crowds.
TRAVELLING COST: Online shopping websites help you save the travelling expense i.e. fuel and energy. One has to add travelling expense to the shopping items this will definitely increase the price of the product we purchased. Now we can get rid of the expense due to online shopping, our customer can enjoy shopping at any place at any time.
PRICE: We are offering the promising deals at the same price which distinct us from our competitors. We also offer discount coupons and rebates.
DISCOUNT OFFER: We give discount offer from time to time at every item. This makes our customer more comfortable and they can easily buy our product. We also give discount offer at religious festivals like Eid, Christmas, diwali and others occasions.
EXCHANGE POLICY: For our customer convenience we present our exchange policy. Our customer can avail this policy within two days of purchase otherwise our policy will not be implementing.
SEASONS SALE: We offer sale at different different seasons.We offer seasonal sales at various time spans in a year.
SEND GIFT: Online Shopping makes sending gifts to relatives and friends easy, no matter where ever they stay. Now there is no need of making distance an excuse for not sending a gift on occasions like Birthday, Wedding Anniversary, Marriage, Valentine’s Day, Mother’s Day etc.
COMPARSIONS OF PRICE: Our customers can make comparison and research the products and prices. It also give the ability to share information and reviews with other shoppers who have firsthand experience with a product or retailer.
VARIETY: Our website give you a range of products, you can get several brands and products from different sellers at one place. We offer a large numbers of selection of colours and sizes.
10.3.3 Slogan:
“Click n Pick”
11. Marketing Strategy Product
11.1 Levels of Product 11.1.1 Core Benefit:
The core benefit of e comfort is, Time saving in this modern world where people are running out of time e comfort provide them all product at their door step. e comfort gives high availability to meet the reliability of both dealer and customer.
Quality of services is one of core benefits of e comfort e comfort provides Guideline for creating solution that is simple as possible to use and control.
11.1.2 Actual Product * Online buying: Providing home delivery to almost everything.
11.1.3 Augmented Product * Free installation. * Multiple ways of ordering. * Through web * Android * SMS * phone call * Home delivery
11.2 Product Life Cycle Stage
As we are launching a new product so it is in the introductory stage of its life cycle.
11.3 Product Attributes (Product Features, Style&Design, Quality)
Product Features: Product main features are Long list of available products, Online shopping portal, Online shopping applications for smart phones, Quick delivery of the product, Testing warranty.
Style & Design: The design of the portal and smart phone application will be very interactive so that the two way communication will be made possible.
Quality: e Comfort will make sure to deliver the service on time and fulfil its commitment by providing good quality products which can last for longer period. Warranty and service claims will be dealt in a better way to build trust amongst the consumers.
11.4 Brand Name, Brand Image, Brand Equity
Brand Name: e Comfort
Our brand image is based on * Sincerity: we would be down to earth, honest and cheerful * Competence: our intelligence and reliability level would be high
11.5 Product Support Services
We have deigned CRM for customer support service which will be consisting of four department and each department will be having highly qualified professionals.
Departmentalization will be conducted a
SMS department: employee will be answering the queries and taking order placed by customer
Android department: team member will be managing order and answering queries placed through android application
Phone call and web; people will be placing ordering through web and phone call.
BCG Analysis: e Comfort is currently in the question mark level of BCG Matrix as it is newly launched company who has to grow its market share and industry also has the growth potential. Online shopping industry is also in the question mark stage in Pakistan where as in the world it has already became star.
12. Marketing Strategy- Price
12.1 Pricing Objectives
As a business owner, one has to choose the proper pricing for services/products if want to be successful. If you price them too high, you may not sell enough units to stay in business. If you price them too low, you could be leaving money on the table. The market-based pricing strategy aims to solve both of these issues and provide you with the best results. For this we have adapted penetration price strategy to deliver the customers what they want at relatively lower price, but the question arises how we are going to cover up our costs, the answer is that we have done contract with metro that after the end of each month they will pay us 20% of the sales generated by our service.
Pricing Method
We will be offering value based pricing and charging a fairly low price for a high quality offering.
Pricing Strategy
12.3.1 Penetration Price:
On Grocery And daily Purchases Items: * Under 5 kg and within 2km its totally free * Under 5 kg and within 5 km only Rs.50 will be charged. * Between 5 to 10 kg and within 10km. Rs 350 will be charged. * Above 15 kg, Fix Rs 200 for 1-5 km, and Rs 30 for each additional Km in total (200) will be charged
On Expensive and home appliances products: * 500 Rs. within 2km. * 500 Rs. Plus 100Rs. within 5 km. * 550 Rs. plus 100rs. For each additional Km in total will be charged
On Urgent delivery: * Additional charges will be applied of rupees 1000.
13. Marketing Strategy- Distribution(Place)
13.1 Geographical Coverage
Initially, our mainly focus will be all over the areas of Karachi and after getting a considerable market share in Karachi and developing a good image in the minds of customers, we are hopeful to expand our services nationwide.
13.2 Distribution Channels
Website/ email:
“Shop at your ease”
We develop our website to work as quickly as possible for the convenience of our consumers and we regularly make our offers and promotions updated at every occasion and seasons.
You can contact us at: www.e-comfort.com info@e-comfort.com for more queries, contact our head office:
Address: XYZ, ABC road, 3 star, Karachi.
Phone calls:
“Product on your call”
Make orders through our customer services. You can order 24/7 a week at 111-ecomfortz.
SMS:
“Text your order”
To order your item or product through sms, type A (item code) and send it to 123.
13. Marketing Strategy- Promotion
13.1 Promotional Goals
Our main promotional goal is to first persuade the customers to adapt our service and secondly increase market share by capturing customers through the satisfaction and pleasure provided to them
13.2 Advertising (Reach, Frequency, Media Theme)
We have allocated a good budget for advertising because it is a main source for making the business successful.
Reach: Reach is the number of people you touch with your marketing message or the number of people that are exposed to your message.
Frequency: It is the number of times you touch each person with your message.
On the basis of reach and frequency we will buy the numbers of gross rating points. Because it will help us that to know that how many people have aware and taking interest.
Media: We will choose broadcast and print media as well as magazines.
13.3 Sales Force requirements, techniques and management
First of all we will be having four shifts namely Morning, Evening, Night, Late Night. As we will be having four departments of CRM for catering the customer complaints orders and feedbacks, we will be designing our teams accordingly
For web and email Department a separate team of 5 members will be designed and enforced.
For answering to queries and order placement through Android Application a separate team of 2 members will be designed and enforced.
For answering to queries through sms and handling all matters related to sms service a team of 5 members will be design and enforced.
For Delivery team we will also be having four shifts consisting of 20 employees in each shift.
And for peak seasons we will be hiring more workforce as part time employees to stable the supply and demand.
13.4 Sales Promotion
For Sales promotion activities e Comfort will do multiple promotional activities. Starting from the issuance of promotional rebate cards which will encourage the consumers to shop online to avail discounts.
Online contests will be started on social media. Games and other attractive events will be organized in which the benefits of online shopping will be communicated to the consumers.
Bundle pricing strategy will be used for the grocery and food sections to offer value to the consumers. Invitations will be sent to regular customers for the events organized by e Comfort.
13.5 Publicity/ Public Relations
We will publish a newsletter about our service in which all the related information will be given to the customers. This newsletter will be published after every three months.
As Metro publishes ad in newspaper; our company’s logo will also be published with their ad.
13.6 Direct Marketing
Telemarketing: We will contact Metro for getting contact information of its customers and we will randomly call them for persuading towards our service.
Viral marketing: We have made a video for viral marketing which we’ll run in phase one and phase two before launching.
Buzz marketing: And we will make a blog in which bloggers will be blogging about our service.
14. Budget
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Advertising Allocation
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Media | Allocation (%age) | Allocation (Rupees) | Publication | 59 | 300,0000 | Mobile | 11 | 600,000 | Social Media | 2 | 100,000 | Others | 10 | 480,000 | Total | 100 | 508,0000 |
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Publication Media Allocation
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Media | Allocation % | Allocation Rs. | Newspapers | 60 | 180,000 | Magazines | 40 | 120,000 | Total | 100 | 300,000 |
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Newspaper Allocation
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Newspaper | Allocation % | Allocation Rs. | Jung | 30% | 54000 | Dawn | 35% | 63000 | The News | 30% | 54000 | Ad production | 05% | 9000 | Total | 100 | 180,000 |
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Magazine Allocation
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Magazine | Allocation % | Allocation Rs. | -------------------------------------------------
Women Own | 20 | 24000 | Family Magazine | 20 | 24000 | Mag | 20 | 24000 | Spider | 20 | 24000 | Others | 20 | 24000 | Total | 100 | 120,000 |
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Others
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Medium | -------------------------------------------------
Allocation % | -------------------------------------------------
Allocation Rs.------------------------------------------------- | Web development | 20 | -------------------------------------------------
8000 | Android Application | 15 | 6000 | Database Management | 15 | 6000 | Banners | 20 | 8000 | Promotional calls | 30 | 20,000 | Total | 100 | 48,000 |
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Mobile Media Allocation
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Medium | Allocation % | Allocation Rs. | -------------------------------------------------
Tri-visions | 55 | 330,000 | Billboards | 45 | 270,000 | Total | 100 | 600,000 |
References: S.No | Web Addresses | 1. | www.pta.gov.pk | 2. | www.wikipedia.com | 3. | www.metro.com.pk |
References: S.No | Web Addresses | 1. | www.pta.gov.pk | 2. | www.wikipedia.com | 3. | www.metro.com.pk |
DATE
20/07/2012
Term Report
Marketing Plan
SUBMITTED TO
Ms. Beenish Nida
Bushra 911
Hira Fatimah 1088
Saba Matin 10935
Iqra University North Nazimabad Campus
Table of Contents
Work Load Distribution 7
Acknowledgment 9
1. Executive Summary 10
2. Market Analysis 11
2.1Market Definition: 11
2.2Market Size: 11
2.3Market Segmentation: 13
2.3.1 Demographic Segmentation: 13
2.3.2 Geographic Segmentation: 14
2.3.3 Psychographic Segmentation: 14
2.3.4 Behavioral Segmentation: 14
2.3.5 According to Benefits Sought: 14
2.4Competition: 15
2.4.1Direct Competitors: 15
2.4.2In Direct Competitors: 15
2.4.3 Competition and Market share 16
2.4.4 Competitiors strengths and weakness 16
3. Consumer Analysis 17
3.1Nature of buying decision: 17
3.2Participants: 19
3.3Demographics: 20
3.4Psychographics: 20
4. Factors that Cause Customers to Switch 21
4.1 Pricing: 21
4.2 Inconvenience 21
4.3 Core Service Failure 21
4.4 Service Representatives mistakes 21
4.5 Response to Service Failure 21
4.6 Competition 22
4.7 Ethical Problems 22
4.8 Involuntary Switching 22
5. Service Quality Management 23
5.1 Strategic Concept: 23
5.2 High Standards: 23
6. PESTEL Analysis 24
6.1 Economy 24
6.2 Politico Legal 24
6.3Demographic 25
6.4 Technology 25
6.5Echological(natural) 26
6.6Sociocultural 26
7. SWOT Analysis 27
7.1Internal(Strengths) 27
7.2Internal(Weaknesses) 27
7.3 External(Threats) 28
7.4 External(Opportunities) 28
8. Mission Statement and Vision Statement 29
8.1 Mission Statement 29
8.2 Vision Statement 29
9. Objectives 30
9.1 Short Term 30
9.2 Long Term 30
10. Marketing Strategy- Market 31
10.1 Market Segmentation Bases 31
10.1.1 Demographic segmentation 31
10.1.2 Psychographic Segmentation 31
10.1.3Behavioral Segmentation 32
10.1.4 Geographic 32
10.2 Target Market 32
10.3 Market Positioning 33
10.3.1 Positioning Statement 33
10.3.2 Positioning Strategy 33
10.3.3 Slogan 35
11. Marketing Strategy Product 36
11.1 Levels of Product 36
11.1.1 Core Benefit 36
11.1.2 Actual Product 36
11.1.3 Augmented Product 36
11.2 Product Life Cycle Stage 36
11.3 Product Attributes (Product Features, Style&Design, Quality) 37
11.4 Brand Name, Brand Image, Brand Equity 37
11.5 Product Support Services 37
12. Marketing Strategy- Price 39
12.1 Pricing Objectives 39
12.2PricingMethod…………………………………………………………………………………………………….39
12.3Pricing Strategy……………………………………………………………………………………………………39
12.3.1 Penetration Price: 39
13. Marketing Strategy- Distribution(Place) 41
13.1 Geographical Coverage 41
13.2 Distribution Channels 41
13. Marketing Strategy- Promotion 43
13.1 Promotional Goals 43
13.2 Advertising (Reach, Frequency, Media Theme) 43
13.3 Sales Force requirements, techniques and management 43
13.4 Sales Promotion 44
13.5 Publicity/ Public Relations 44
13.6 Direct Marketing 45
14. Budget 46
References: 50
Work Load Distribution
Usman GhaniAwan:
Enrolled as 10939, Usman has contributed individually in the following areas: * Market Analysis * Consumer Analysis.
Bushra Mehmood :
Enrolled as 1088 Bushra has contributed individually in * PESTEL Analysis * Market Segmentation Bases * Target Market.
Saba Matin:
Enrolled as 443 Saba Matin has individually contributed in * Distribution * Market Positioning * Mission and Vision Statements.
Samyia Ahmed:
Enrolled as Samiya Ahmed has contributed individually in * Market Strategy –Product, * Objectives.
Hira Fatimah:
Enrolled as 10935 Hira has contributed individually in * Factors that cause Customers to Switch * Service Quality Management * Marketing Strategy – Price.
Team Work: * SWOT * Executive Summary * Budget * Promotion,
Acknowledgment
This report is the product of the efforts of our group members. After being thankful to Almighty ALLAH we are really thankful to our group members for putting their efforts to make this report. We are also thankful to our teacher Ms.Beenish Nida who built our confidence and gave a chance to think, explore and present our ideas and findings.
1. Executive Summary
Online Shopping industry is growing day by day in the world and it is expected in future the online shopping will take up the position of traditional way of shopping. Technology has played a vital role for the success of this concept. Researches shows that only in USA 75% people who use internet use this way of shopping. Online Shopping is recognized in the world as the best and safest way of shopping which can one expect.
When we look in Pakistan, people use the old traditional way of shopping. Its main reason is the lack of awareness amongst the people about the online shopping. There are few companies who offer online shopping and those companies are not yet able to generate much awareness amongst the people. Looking at all these facts we realized the need of an Online Shopping company which can built the trust of the people on online shopping.
In this regard we decided to launch a service provider company in online shopping industry "e Comfort" which can be trusted by every shopper in Pakistan and beyond. The idea is to have an online portal which can provide sufficient information about different brands, consumers can view multiple options for their desired products and can order at the same time. e Comfort will have the huge list of products which will be made available to shop online, this will be done by the partnership which e Comfort has with the country 's biggest hyper store i.e Metro Habib(Metro & Makro). The other idea is to have multiple channels for order placement and payment of the purchase. Orders can be placed through SMS, Telephone calls, Smartphone applications along with the website. Mode of payments options will include Online payment through VISA or MASTER card, Cash on delivery, through Easypaisa, cheque at delivery(Only for the privileged customers).
2. Market Analysis
2.1 Market Definition:
Online shopping or online retailing is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service. An online shop, e-shop, e-store, Internet shop, web shop, web, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or shopping centre. The process is called business-to-consumer (B2C) online shopping. When a business buys from another business it is called business-to-business (B2B) online shopping.
Online shopping has grown in popularity over the years, mainly because people find it convenient and easy to bargain shop from the comfort of their home or office. One of the most enticing factor about online shopping, particularly during a holiday season, is it alleviates the need to wait in long lines or search from store to store for a particular item.
2.2 Market Size:
Internet Shopping is largely carried out throughout the globe. E-commerce has become well over 100 billion dollars market with a growth rate of almost seventy percent per year. Estimates predict that more than 75 percent of American internet users carry online transactions for either buying or selling online products/services. Your online presence equips your business with reach that extends beyond the regional boundaries. Hence, allowing more target audience and resultantly the sales.
As far as E-commerce in Pakistan is concerned, a research was carried out solely. According to the result of research table shown below, It was found that people don’t feel secure doing online transactions, they are mainly afraid of the fact that their credit card can be misused. Despite of all this, the research findings suggests that online stores are the best options for your shopping. Internet Users | 20 Million/ 11.8 % | Cell phone users | 120 Million/ 68.8% | People who shopped Online or using cell phone | 30% | People who were satisfied with shipment | 100% | People who found online shopping convenient | 100% |
Charts showing the prospect market:
Cell Phone users in Pakistan:
Internet users who shop online in Pakistan:
2.3Market Segmentation:
The market for online shopping is divided into many segments like Demographic, Geographic, Psychographic, and Behavioral and according to the benefits sought.
2.3.1 Demographic Segmentation:
Online shopping companies can be identified by demographic variables. The common variables could be the companies having record of the visitors email address, Knowledge about the websites, the navigator programs which they support or the versions of the browsers. These can be the basis on which online shopping companies can be segmented demographically.
2.3.2 Geographic Segmentation:
Online selling companies can be segmented on the basis of their geographical locations. Network connectivity and place of connection matters a lot when looking for zero down time. If any company located in outskirts of the city then there is the probability that its connectivity may suffer because of it.
2.3.3 Psychographic Segmentation:
Online shopping companies can be segmented on psychographic basis. The attitude of a company towards the privacy and security of the data (whether they are certified for trade over internet e.g.: PayPal, verisignetc). The attitude of the company towards the delays in delivery and other problems related to the shopping and also the attitude of the company towards the innovative website designing.
2.3.4 Behavioral Segmentation:
Online shopping companies can also be segmented on behavior. It may include method of access (whether the company has a direct link or via links), User categories (new or old users), level of interactivity with the user (feedback) or pattern of information search on the website and between websites.
2.3.5 According to Benefits Sought:
Online shopping companies can also be segmented according to the variables associated to navigation and purchase motivation. It could be by benefits which can be obtained by providing additional information on products or it could be the companies focusing on advantages using the internet as a purchasing medium.
2.4Competition:
In Pakistan there are very few companies operating in online selling business. Most of them are satisfying the needs of consumers who look for electronic products which include cell phones, Laptops, Computer accessories and other related electronic products.
2.4.1Direct Competitors:
The direct competitor for e-Comfort is TCS connect which is the division of TCS Pvt Ltd. TCS connect is the online service which provide online shopping and delivery, which is the similar service which e Comfort offers but the competitive advantage which e-Comfort has its big list of products which covers from grocery to generators from stationary to cosmetics there are many product categories offered by e-Comfort. e-Comfort not only offers huge range of products it can also deliver the products in big quantities as well, the partnership with Metro which is the biggest Hyper store has strengthen these capabilities. Whereas TCS connect offers few categories like electronics, books, DVDs etc. TCS connect is a strong competitor as it is a service from a well known brand in logistics which have millions of customers nationwide.
2.4.2In Direct Competitors:
The indirect Competitors for e-Comfort are the hyper stores in town namely Hyper star, Imtiaz and Chase. These stores offer multiple products under one roof but for this a prospect has to walk in to those stores for a purchase. The benefits which these stores offer are the everyday low prices. In order to compete with these low prices e-Comfort has developed a pricing strategy which will make sure the consumers receive the products on same low prices while shopping online, In this way customers will get a benefit of saving their time, energy and money required for shopping from hyper stores.
2.4.3 Competition and Market share
Online shopping industry is very new in Pakistan and people are not completely aware of this service therefore the market share of competitor is not very large there are still very large number of people who can become potential users of the service once they get aware of this service. TCS connect being a service from a well known brand has the maximum market share at the moment. 2.4.4 Competitors strengths and weakness
Strengths and weaknesses of TCS Connect;
Strengths
* Service from a well known brand. * Strong Logistic Network. * Over 500 express centers for support.
Weakness
* Limited product List. * High service charges. * Mode of accessibility (TCS accepts orders via Internet and phone)
3. Consumer Analysis
A successful web store is not just a good looking website with dynamic technical features, listed in many search engines. In addition to disseminating information, it is about building relationships and making money.
Businesses often attempt to adopt online shopping techniques without understanding them and without a sound business model, producing web stores that support the organizations ' culture and brand name without satisfying consumer 's expectations. User-centered design is critical. Understanding the customer 's wants and needs and living up to promises gives the customer a reason to come back and meeting their expectations gives them a reason to stay. It is important that the website communicates to the customer that the company cares about them.
We did consumer Analysis in order to find out what are the expectations of the consumer and how we can better deal to come up to the expectations. This Consumer analysis is based on four important factors which are the nature of buying decisions, participants in the buying decision, demographics and psychographics of the consumer.
3.1Nature of buying decision:
Buying Decision differs from person to person. Depending upon the need of the person, the decision gets change, even if the product is small. There are different factors which influences the nature of buying. Hence buying decision has been classified into four different categories such as Complex buying behavior, Dissonance Reducing buying behavior, Habitual buying behavior and Variety seeking buying behavior. These are classified depending upon the degree of involvement and degree of difference among brands. e Comfort is the service which deals in range of products which includes high involvement products and low involvement products. The consumers of e Comfort according to the different natures of buying decisions are listed below; * Consumers with Complex Buying Behavior:
Consumers have complex buying behavior usually when they look for high involvement products, for this they look for multiple options and do some research before making a purchase decision. e Comfort is the kind of service which gives multiple brand options with a comparison which will provide all the information on a screen. The whole process of research contracts into few clicks and if a consumer is satisfied with any product again a click will be required to get an immediate purchase. This will help the complex buyers to make a decision more easily. * Consumers with Dissonance Reducing Behavior:
This involves high involvement of the buyer but a less significance difference among the brands. For example Buying an Air Conditioner or a Laptop. Here the product is highly priced but almost all every brand gives the same features. Sometimes this may involve the post purchase dissonance behavior. Here the consumer looks at the disadvantages of the product after purchase.
For such kind of consumers the reviews of different brands will be made available so that the consumer can read the feedback from the users of any specific brand. This will also encourage the users to make a confident decision.
The difference from shopping from e-Comfort and from the market will be clearly communicated to the consumers through the messages on the website. Further more testing warranties, damage claims and similar kind of post purchase activities will be strongly implemented to give consumer confidence on the purchase made on e-Comfort.
* Consumers having Habitual Buying Behavior:
Here there will not be any kind of involvement from the consumer. Here the purchase happens depending upon the Brand familiarity. Here the consumer involvement is low and less differences among brands. This happens based on the habits of buying. For example Buying of a liquid soap . Most of the people prefer Dettol because of the brand. But there are other products like Lifebuoy with less significant difference.
* Consumers having Variety Seeking Buying Behavior:
Here the consumer involvement is low but there will be significant difference among brands. For example Biscuits, when we buy a biscuit we do not know the taste hence after consumption only we can tell that whether to go for the brand or not for the next time. Here the companies try to change the nature to Habitual Buying behavior by different strategies. Sometimes this depends upon the retailers too.
3.2 Participants:
Buying decisions in online shopping industry involves below mentioned participants; * Initiator: This can be the marketing stimulus by e Comfort. * User: These are the consumers who will be using our service. * Influencer: These can be the technical experts or existing users who share their views. * Deciders: These are the decision makers.
3.3 Demographics:
The role of demographic variables in buying decisions in online shopping industry matters a lot. Especially the variables like age and income. Online shopping attracts the consumers who are in the ages of 18-50. The people in the age brackets of 18-26 are the young buyers who love shopping, they spend good amount of time on internet and social media and look for information regarding new products. These people can be the potential customers for e-Comfort, as e-Comfort provides up to date information about different brands and it also allows the consumers to order right at the moment and without much effort product will be delivered to them.
The consumers in the age brackets of 27-35 are the young professionals who don 't get much time for shopping they can be the potentials customers as e-Comfort reduces the amount of time usually spend on shopping.
Consumers between the ages of 36-50 are the mature users who like to evaluate different products and also looking for the product value. These can also be the potential customers as e-Comfort offers the reviews and comparison of a product with other products. Energy needed in shopping activity can be saved by using this service this is an added advantage which will attract the consumers of this age group.
3.4 Psychographics:
Role of psychographic variables in buying decisions of consumers is also very important in online shopping. The major thing which stop consumers from online shopping is the skepticism they posses about the mode of payment. Consumers are concern about the security of their credit card numbers and their other information. Most of the consumers are not aware of the procedure which follows when an online transaction is made. e-Comfort can cater this situation by providing an option of paying cash on delivery this will attract all those consumers who avoid online shopping just because of online payments.
4. Factors that Cause Customers to Switch
4.1 Pricing: * High Price * Price Increases * Unfair Pricing
4.2 Inconvenience * Wait for Appointment * Wait for Service
4.3 Core Service Failure * Service mistake * Billing errors
4.4 Service Representatives mistakes * Uncaring * Impolite * Unknowledgeable * Unresponsiveness
4.5 Response to Service Failure * Negative response * No response
4.6 Competition * Found better service
4.7 Ethical Problems * Cheat * Hard sell * Unsafe
4.8 Involuntary Switching * Customer moved * Provider closed
5. Service Quality Management
For maintaining the quality and level of our service, and make sure that any type of situations that causes customers to switch does not occur, we will be adapting the four practices
5.1 Strategic Concept:
As we researched, we come to know that Top service companies are customer obsessed. For this we have a clear sense of our target customers and their needs. As we understand the needs of our customers we have developed distinctive ways for them to reach us, like through email, through web through their android phones, through sms or even through a phone call.
5.2 High Standards:
The best service providers set high service quality standards. We are differentiating our service by claiming that we have a better and faster delivery system.
There are three levels of differentiation: * Reliability: the delivery would be on time. * Resilience: better at handling emergencies and answering the inquiries. * Innovativeness: for this we have developed better ways for customer to access us, like from android phones, email, sms, or a phone call.
6. PESTEL Analysis
6.1 Economy
Economical factors are very important for the analysis before the start of any business. Online shopping industry is the newly emerging industry in Pakistan which is backed by the technology. The economy in Pakistan at the moment supports the technological advancements more investment has been made for the growth of communication networks all over Pakistan. DSL and Broadband is made common in the major cities of Pakistan and it is expected to cover all parts of Pakistan in near future.
6.2 Politico Legal
Factors are how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labor law environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide and those that the government does not want to be provided. If any tax policy on production changes, the grocery stores that we coordinate will have to pay more to the government and after all they will have to increase the overall cost which will increase the cost and it will impact our business also. If there is a political stability in Pakistan, like political parties play their actual role for development of country it will affect all the businesses positively.
Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products. Consumer protection consists of laws and organizations designed to ensure the rights of consumers as well as fair trade competition.
The above mentioned laws have been made for both; organization and consumer. We must have to follow laws as their responsibility. We don’t discriminate our employees on the basis of race, nationality etc.
6.3Demographic
As time passes there is a change come in demographic trends such as aging population, desire for online home delivery service, the increased role of women as business owners, and the rapid growth of minority communities.
As different factors changes our business will face more challenges for the changing needs. In Karachi there is a big trend of shopping from hypermarkets. But after doing survey, we felt a changing need of online shopping. Now people of Karachi want a place where they easily buy there required products without consuming time.
6.4 Technology
As we know this is the era of technology, by following the large impact of technology on the masses; we have launched our service with new technology, because it is the psychology of the people that they adapt latest things In Karachi there are good numbers of people who are aware of technological advancements such as students, businessmen, educated housewives.
6.5Echological (natural) We are offering a service which has no physical entity so that it is completely environment friendly.
6.6Sociocultural
Social hierarchy, traditions, social norms and customs play significant role in determining individual and collective behavior in urban markets. We conducted a research and we came to know that people behave differently according to their culture and social class. In Karachi, all representatives of the people of Pakistan live here and keeping them in eyes we provide different packages for customers.
7. SWOT Analysis
7.1Internal(Strengths)
* Media. * Internet, which is available 24 hours and people, can contact us easily anytime. * First mover advantage (This advantage may stem from the fact that the first entrant can gain control of resources that followers may not be able to match) * Strong customer base (To attract customers, make yourself visible and give them access to you. Your customers will eventually become the champions of your brand) * Diversified product line. * Online tracking and customer information base. * Top quality web site. * Updated inventory system. * Multiple payment options.
7.2Internal (Weaknesses) * Availability of equipment and automobiles. (Must always work properly). * Logistic network is not very wide.
7.3 External (Threats) * A slowing economy with higher levels of inflation affecting the price of food and greater fuel costs impacting transportation cost, can have lower profit margins. * Cost conscious consumers will shift their buying habits to less high-end foods and gourmet items (with greater margins) to lower margin food items. * Conventional grocers beginning to do online sales which will increase our market competition. * Uncertain condition of city. * Hackers * Bad economy * Government regulation of e-commerce as there may be restrictions applied.
7.4 External(Opportunities) * Partnerships with METRO to sell their products online. * We have an opportunity to make alliances with grocers who want to go online. * We are selling of a more diversified product line. * Penetration into foreign markets.
8. Mission Statement and Vision Statement
8.1 Mission Statement
We help people to save their time by delivering what they want, whenever they want
At their doorsteps, with exceptional quality of customer services.
8.2 Vision Statement
To be the largest and finest service provider throughout the nation and for this
We believe in making our customers feel more relaxed, satisfied and pleased .
9. Objectives
9.1 Short Term * Setup the business successfully in Karachi. * Hold the targeted customers at most. * Keep learning and adapting the technologies
9.2 Long Term * Expansion of our business to other cities * They have the best goods, we have the best possible way to bring it to your reach * Maintaining long term relationship with the customers to serves their needs in the best possible way.
10. Marketing Strategy- Market
10.1 Market Segmentation Bases
10.1.1 Demographic segmentation
We have segmented our market demographically; based on measurable statistics, such as age, income, gender, family size, occupation, education, religion and race. We are targeting the age group of 18 and above. Our focus is lower middle and upper middle class so we are targeting this income group.
If we talk about gender; our service is for both male and female who have either big or small family size or whatever occupation and religion they belong; they can take benefit from our service.
Here we are focusing on educated class because for using our service; customer should be educated to some extent.
10.1.2 Psychographic Segmentation
Consumers are divided according to their lifestyle, personality and values. It is the era where people are very busy in their personal and social lives. They have to work more for competing with their fellows and they also have to adapt changing living standards. We have pondered over all these psychological factors and shape our service as our customer wants. Our customer can easily approach us and by using our service he would be satisfied that his living standard is up to date.
10.1.3Behavioral Segmentation
There are different behaviors of customers which customers show at different levels. We are shaping our service according to customer behavior. People of Karachi are adapting the trend of bulk shopping and on different occasions like ramzan and eid; people used to do heavy shopping.
There is still a trend of joint family system so people buy according to their requirement. We are providing different packages and offering for people; so when customer see his benefit, he automatically attract.
10.1.4 Geographic
We are initially launching our service in Karachi only.
10.2 Target Market
Life is getting busier with the passage of each day. Individuals are striving hard to earn more for their families and businesses. The fast paced life has reduced the time for shopping especially for grocery. Groceries are the need of every home. Grocery shopping has become more of a hassle which no one likes to take. The “e comfort” team has found a business opportunity in selling the grocery items at the door step.
We are adapting “differentiated marketing”
Because we are providing different service which is a solution of customers’ problem. Our service differs with our competitors in the context of pricing, we are in question mark phase, and we have to gain market share as well as loyal customers that is why we will make sure our customers that you are most valuable for us and we are giving you best at low price.
Our main focus is convenience. We are providing convenience to our customers at their door steps which are a positive point in our favor to have increasing numbers of customers. Last but not the least, we have a team of people who have expertise in their related fields, they will be with you for helping you when you need them. So by using “Differentiated marketing strategy” we will be able to cater large segment of our target.
10.3 Market Positioning
10.3.1 Positioning Statement
“To all people who are quality conscious and time constrained, our E-Comfort is an online service which provide you everything at your door step at just a click away.”
10.3.2 Positioning Strategy
Our online shopping website has everything under one roof, we offer every kinds of products form famous and elite brands to local brands. Our customers most certainly will have great shopping experience. We believed that customers are king and they deserved best quality and material in order to maintain it we are not willingly to compromise the quality at any cost. To make it happen our products will be reachable to everyone and it is affordable for everyone. Our products will be sold through online services; such services would be website and telephone. We will be parceling the product globally which will be delivered on our customers doorstep. We propose distinct offer from our competitors which are SAVE TIME:Our online shopping website aids you to safe your prestige time, now you don’t have to roam from mall to mall. All you have to do is to log on and you enter the world of shopping in a second. Our customers are welcomed at any time. Our website give you the opportunity to shop 24 x 7 and also reward you with saving your time and avoiding crowds.
TRAVELLING COST: Online shopping websites help you save the travelling expense i.e. fuel and energy. One has to add travelling expense to the shopping items this will definitely increase the price of the product we purchased. Now we can get rid of the expense due to online shopping, our customer can enjoy shopping at any place at any time.
PRICE: We are offering the promising deals at the same price which distinct us from our competitors. We also offer discount coupons and rebates.
DISCOUNT OFFER: We give discount offer from time to time at every item. This makes our customer more comfortable and they can easily buy our product. We also give discount offer at religious festivals like Eid, Christmas, diwali and others occasions.
EXCHANGE POLICY: For our customer convenience we present our exchange policy. Our customer can avail this policy within two days of purchase otherwise our policy will not be implementing.
SEASONS SALE: We offer sale at different different seasons.We offer seasonal sales at various time spans in a year.
SEND GIFT: Online Shopping makes sending gifts to relatives and friends easy, no matter where ever they stay. Now there is no need of making distance an excuse for not sending a gift on occasions like Birthday, Wedding Anniversary, Marriage, Valentine’s Day, Mother’s Day etc.
COMPARSIONS OF PRICE: Our customers can make comparison and research the products and prices. It also give the ability to share information and reviews with other shoppers who have firsthand experience with a product or retailer.
VARIETY: Our website give you a range of products, you can get several brands and products from different sellers at one place. We offer a large numbers of selection of colours and sizes.
10.3.3 Slogan:
“Click n Pick”
11. Marketing Strategy Product
11.1 Levels of Product 11.1.1 Core Benefit:
The core benefit of e comfort is, Time saving in this modern world where people are running out of time e comfort provide them all product at their door step. e comfort gives high availability to meet the reliability of both dealer and customer.
Quality of services is one of core benefits of e comfort e comfort provides Guideline for creating solution that is simple as possible to use and control.
11.1.2 Actual Product * Online buying: Providing home delivery to almost everything.
11.1.3 Augmented Product * Free installation. * Multiple ways of ordering. * Through web * Android * SMS * phone call * Home delivery
11.2 Product Life Cycle Stage
As we are launching a new product so it is in the introductory stage of its life cycle.
11.3 Product Attributes (Product Features, Style&Design, Quality)
Product Features: Product main features are Long list of available products, Online shopping portal, Online shopping applications for smart phones, Quick delivery of the product, Testing warranty.
Style & Design: The design of the portal and smart phone application will be very interactive so that the two way communication will be made possible.
Quality: e Comfort will make sure to deliver the service on time and fulfil its commitment by providing good quality products which can last for longer period. Warranty and service claims will be dealt in a better way to build trust amongst the consumers.
11.4 Brand Name, Brand Image, Brand Equity
Brand Name: e Comfort
Our brand image is based on * Sincerity: we would be down to earth, honest and cheerful * Competence: our intelligence and reliability level would be high
11.5 Product Support Services
We have deigned CRM for customer support service which will be consisting of four department and each department will be having highly qualified professionals.
Departmentalization will be conducted a
SMS department: employee will be answering the queries and taking order placed by customer
Android department: team member will be managing order and answering queries placed through android application
Phone call and web; people will be placing ordering through web and phone call.
BCG Analysis: e Comfort is currently in the question mark level of BCG Matrix as it is newly launched company who has to grow its market share and industry also has the growth potential. Online shopping industry is also in the question mark stage in Pakistan where as in the world it has already became star.
12. Marketing Strategy- Price
12.1 Pricing Objectives
As a business owner, one has to choose the proper pricing for services/products if want to be successful. If you price them too high, you may not sell enough units to stay in business. If you price them too low, you could be leaving money on the table. The market-based pricing strategy aims to solve both of these issues and provide you with the best results. For this we have adapted penetration price strategy to deliver the customers what they want at relatively lower price, but the question arises how we are going to cover up our costs, the answer is that we have done contract with metro that after the end of each month they will pay us 20% of the sales generated by our service.
Pricing Method
We will be offering value based pricing and charging a fairly low price for a high quality offering.
Pricing Strategy
12.3.1 Penetration Price:
On Grocery And daily Purchases Items: * Under 5 kg and within 2km its totally free * Under 5 kg and within 5 km only Rs.50 will be charged. * Between 5 to 10 kg and within 10km. Rs 350 will be charged. * Above 15 kg, Fix Rs 200 for 1-5 km, and Rs 30 for each additional Km in total (200) will be charged
On Expensive and home appliances products: * 500 Rs. within 2km. * 500 Rs. Plus 100Rs. within 5 km. * 550 Rs. plus 100rs. For each additional Km in total will be charged
On Urgent delivery: * Additional charges will be applied of rupees 1000.
13. Marketing Strategy- Distribution(Place)
13.1 Geographical Coverage
Initially, our mainly focus will be all over the areas of Karachi and after getting a considerable market share in Karachi and developing a good image in the minds of customers, we are hopeful to expand our services nationwide.
13.2 Distribution Channels
Website/ email:
“Shop at your ease”
We develop our website to work as quickly as possible for the convenience of our consumers and we regularly make our offers and promotions updated at every occasion and seasons.
You can contact us at: www.e-comfort.com info@e-comfort.com for more queries, contact our head office:
Address: XYZ, ABC road, 3 star, Karachi.
Phone calls:
“Product on your call”
Make orders through our customer services. You can order 24/7 a week at 111-ecomfortz.
SMS:
“Text your order”
To order your item or product through sms, type A (item code) and send it to 123.
13. Marketing Strategy- Promotion
13.1 Promotional Goals
Our main promotional goal is to first persuade the customers to adapt our service and secondly increase market share by capturing customers through the satisfaction and pleasure provided to them
13.2 Advertising (Reach, Frequency, Media Theme)
We have allocated a good budget for advertising because it is a main source for making the business successful.
Reach: Reach is the number of people you touch with your marketing message or the number of people that are exposed to your message.
Frequency: It is the number of times you touch each person with your message.
On the basis of reach and frequency we will buy the numbers of gross rating points. Because it will help us that to know that how many people have aware and taking interest.
Media: We will choose broadcast and print media as well as magazines.
13.3 Sales Force requirements, techniques and management
First of all we will be having four shifts namely Morning, Evening, Night, Late Night. As we will be having four departments of CRM for catering the customer complaints orders and feedbacks, we will be designing our teams accordingly
For web and email Department a separate team of 5 members will be designed and enforced.
For answering to queries and order placement through Android Application a separate team of 2 members will be designed and enforced.
For answering to queries through sms and handling all matters related to sms service a team of 5 members will be design and enforced.
For Delivery team we will also be having four shifts consisting of 20 employees in each shift.
And for peak seasons we will be hiring more workforce as part time employees to stable the supply and demand.
13.4 Sales Promotion
For Sales promotion activities e Comfort will do multiple promotional activities. Starting from the issuance of promotional rebate cards which will encourage the consumers to shop online to avail discounts.
Online contests will be started on social media. Games and other attractive events will be organized in which the benefits of online shopping will be communicated to the consumers.
Bundle pricing strategy will be used for the grocery and food sections to offer value to the consumers. Invitations will be sent to regular customers for the events organized by e Comfort.
13.5 Publicity/ Public Relations
We will publish a newsletter about our service in which all the related information will be given to the customers. This newsletter will be published after every three months.
As Metro publishes ad in newspaper; our company’s logo will also be published with their ad.
13.6 Direct Marketing
Telemarketing: We will contact Metro for getting contact information of its customers and we will randomly call them for persuading towards our service.
Viral marketing: We have made a video for viral marketing which we’ll run in phase one and phase two before launching.
Buzz marketing: And we will make a blog in which bloggers will be blogging about our service.
14. Budget
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Advertising Allocation
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Media | Allocation (%age) | Allocation (Rupees) | Publication | 59 | 300,0000 | Mobile | 11 | 600,000 | Social Media | 2 | 100,000 | Others | 10 | 480,000 | Total | 100 | 508,0000 |
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Publication Media Allocation
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Media | Allocation % | Allocation Rs. | Newspapers | 60 | 180,000 | Magazines | 40 | 120,000 | Total | 100 | 300,000 |
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Newspaper Allocation
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Newspaper | Allocation % | Allocation Rs. | Jung | 30% | 54000 | Dawn | 35% | 63000 | The News | 30% | 54000 | Ad production | 05% | 9000 | Total | 100 | 180,000 |
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Magazine Allocation
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Magazine | Allocation % | Allocation Rs. | -------------------------------------------------
Women Own | 20 | 24000 | Family Magazine | 20 | 24000 | Mag | 20 | 24000 | Spider | 20 | 24000 | Others | 20 | 24000 | Total | 100 | 120,000 |
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Others
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Medium | -------------------------------------------------
Allocation % | -------------------------------------------------
Allocation Rs.------------------------------------------------- | Web development | 20 | -------------------------------------------------
8000 | Android Application | 15 | 6000 | Database Management | 15 | 6000 | Banners | 20 | 8000 | Promotional calls | 30 | 20,000 | Total | 100 | 48,000 |
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Mobile Media Allocation
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Medium | Allocation % | Allocation Rs. | -------------------------------------------------
Tri-visions | 55 | 330,000 | Billboards | 45 | 270,000 | Total | 100 | 600,000 |
References: S.No | Web Addresses | 1. | www.pta.gov.pk | 2. | www.wikipedia.com | 3. | www.metro.com.pk |
References: S.No | Web Addresses | 1. | www.pta.gov.pk | 2. | www.wikipedia.com | 3. | www.metro.com.pk |
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