Our market segments are online shoppers. We seek to create a long term relations with our members. We ensure they receive products efficiently and effectively. We constantly keep our clients in online interaction and respond to their needs in the most appropriate means. We also aim to capture shoppers who seek brand identity since we can deliver products from any company. Our major goal is to satisfy customers’ needs without destructions of their home comfort.
Market trends and needs
As evidence with the number of marketers online, the population that needs online shops is growing at fast rate. Customers’ needs differentiated products, quality, affordability and high accessibility. Online shopping, as result, requires close contact between the buyers and the sellers. Consequently, they need accessible services every time; day and night.
Our 24/7 services and the use of customer profiles makes will provide them with a lot of shopping efficiency.
Our Growth Curve
Market Penetration Strategies
As a pioneer capturing market segment is never easy, as a result we developed strategies of entering the market through product quality, pricing strategies, promotional and positioning tactics. Our promotion is aimed at creating a wide knowledge of our existence. We expect to create advertisement through the social media, talks with friends and use of posters. We expect in addition, to launch wide variety of beauty products to meet many customers satisfaction. Our prices are structured in a way to promote products and services consumption among all income earners. The following marketing strategy will be used in our market penetration (Don 2005, p.16).
The Pricing Matrix
We will apply efficiency in delivery, pricing and quality to beat our competitors. Our product prices will be moderately low to attract many customers. At the same time, quality of our services will be unmatched in the market. This will be achieved through our skilled staff and dedicated management team. Our website will be easy to manage for our clients to enhance shopping ability (Alexander, 2009, p.88).
Through Geographical survey information and data from the relevant authorities, there are over 20 online shops in our market segment. 0.7 of these are targets high class shoppers while 0.5 basically deals in beauty products and not services. The rest of the shops majorly do not have customers’ data that we have developed.
Online Market Structure
- Shops that lack customers profile system
- Shops that targets mainly high income earners
- Shops that mainly sell products and not services
MAGO Services Operations
Currently, MAGO catchment is about 1 million people. We estimate our customers at be 300 in a month. These represent only what our data depict from the market survey. The actual shoppers figure is expected to be high. Our market is well served by network and transport system for accessibility. The competition level for differentiated products is still low (Huang & Yingluo 2008, 167).
The major identifiable operations in our system will be office operations, making deliveries, collecting products from suppliers, keeping our stores, and managing inventory system. To operate amicably, our staff are qualified and well versed with their areas of jurisdiction. We have designed a payment and product flow that will be easy to manage. We have designed a logistic system that will ensure our efficient deliveries (Alexander 2009, p.76).
Our operational overhead costs are also expected to rise due to logistic needs. Will also incur cost in maintaining our facility and equipment. However, we expect a high growth potential in the long run. Our market is dominated by middle to high income earners, which will boost our sales. Through evaluation, we developed a pricing strategy with focus on our competitors, customers’ interest and ability to compensate our expenses effectively (Phillip 1996, p. 96).
Our financial operations include quick analysis of all stakeholders and service operations. As a start-up capital, we have secured 10000 GBP from shareholders contribution. We expect further 25000 GPB HSBC loan. This money will enable us manage our product and services and pay our employees. MAGO is scheduled to open its office in the second week of June, 2013.
We have done thorough expert market survey to develop our business plan. We have analysed the market and scanned all the possible factors that can affect our operation. The market survey has been helpful in identification of our strengths and weakness. Our current management and financial position puts at the best level to start off. Despite turbulence in the early stage of our investment, we strongly expect to meet our goals both in short and long run periods.
|Structures of Multinational Internet Companies||Revision Topics for HRM|
- Revision Topics for HRM
- Offshore Outsourcing
- Structures of Multinational Internet Companies
- Marketing Principles at NPD