Business to Customer (B2C) Business Plan
Executive Summary
There are many different classifications of marketing.
From Government to Business (G2B), Business to Business (B2B), Business to
Consumer (B2C), to Customer to Customer (C2C). While many companies usually
operate in one or more of these areas, Customer to Customer businesses operate
only within that specific area. Customer to Customer marketing has become more
popular recently with the advent of the internet. This assignment is design to
give an online business plan for business to customer market and customer to
customer market. I selected a names for
the company that is Myproductbd.com.
This company has no existence I just selected this as a base company.
Myproductbd.com is an online business providing fun, comfortable and easily
accessible collegiate maternity wear via their own site and an eBay store. The
assignment is design to make a plan for B2C business. In this assignment it is
shown that how the company run their business, develop it, face computation and
overall plan for the companies. Myproductbd.com targeted market includes both
the many women who are sports fans (or married to sports fans), and friends and
family members of expecting women who will buy the shirts as gifts.
Introduction
Companies such as
Craigslist, eBay, and other classified and auction based sites have allowed for
greater interaction between consumers, facilitating the Customer to Customer
model. Furthermore, as it becomes more economical for individuals to network on
the internet via social websites and individual content creation, this
marketing model has been greatly leveraged by businesses and individuals alike.
E-Commerce stands for electronic commerce and get greater acceptance from the
customers. It is an electronic based commercial system in which customer can
order for something from a website or virtual market place and sellers sell it.
In this types of business customers can buy product, pay for the product and
engage with other types of transaction among them. Products are not physically
appear but customers can collect information about them from their features.
There are 5 major online market including B2B, B2C, C2C, P2P, and M-Commerce.
Business to consumer market refers to the market from where customer can just
buy something from an identified virtual market place such as amazon.com. On
the other hand customer to customer market refers to those market where a
customer can sell a product.
Objective of the study
The primary
objective of the assignment is to make a business plan for both B2C online
market and C2C market.
Secondary
objectives are including
- To
make a plan by how both types of company can develop.
- To
make their competitive edge and finding ways by which they will sustain in
the market.
- To
give a proper idea about operating system of both B2C and C2C online
business market.
Elements
in a business plan
A business plan consists
of the following steps and stages:
This business plan is for a general type of business but if
the business is in online then further one step is needed to be include and
that is E-Commerce planning. Now the business plan for B2C and C2C is given
below.
myproductbd.com
|
Business
Concept
Myproductbd.com is a new Internet business that will
sell a line of collegiate maternity wear for expecting mothers. In the future,
the company will also explore the professional sports market as a new channel
for growth. The owner will run the business from his home office. Inventory will
be stored in a 1,200 sq. feet and designated storage area will within the
basement. Sales will be primarily through an eBay store until our own site is
fully developed, part way through the first year.
Start-up Summary
Start-up costs for Myproductbd.com equal TK 15,00,000
and include legal costs, computer supplies, new product marketing, website
design and licensing* for the shirt designs. Start-up assets total TK4, 00,000
most of which is dedicated for start-up inventory.
LICENSING: Based on research, licensing is required to
use official college mascots and names. This is not cost prohibitive; however,
the regulating board for licensing has strict requirements regarding who can
and cannot be granted permission to use collegiate likenesses. As of this date,
our proposal is under submission and we are awaiting a final decision.
START-UP REQUIREMENTS
Start-up Expenses
Legal TK1,
00,000
Computer TK2, 50,000
Marketing TK1, 50,000
Web Design TK15, 000
Licensing TK50, 000
TOTAL START-UP EXPENSES TK5, 65,000
Start-up Assets TK4, 00,000
Cash Required TK6, 00,000
Products
Myproductbd.com will provide fun and comfortable
collegiate maternity wear shirts, t-shirts, 3pieces and ladies pants via our
website, and through an eBay store, which serves as a portal to our main
website. Manufacturing will be done by a third party, and fulfillment will be
handled in-house initially.
Customers
Our target
customers are generally woman but there have one 2 items shirt and t-shirts
customers are both man and women. Our customers are generally middle class
adult people. Customers can also be lower class and lower higher class people.
Targeted geographic segmentation is all over the country including both cities
and villages.
Market Opportunities
The primary target market is the women who are like
50% of countries population. These woman often buy maternity clothes for
themselves. The secondary target market is the over 25,000,000 people who shop
for and buy collegiate clothing each year. By being made aware that collegiate
maternity wear exists, they are able to purchase items as gifts for someone
they know who is pregnant. As an online store, we will focus on the portions of
these market segments which are comfortable shopping online.
Market Segmentation
The two groups of people who would buy maternity clothes
are woman, and those who would shop for a woman, perhaps a husband, or a family
member. Based on these segments, our projected sales forecast is conservatively
set at less than 1% of the total potential market, as highlighted in the
following table and chart.
Strategy and Implementation
Our marketing strategy is to create product awareness
among expecting women and their families by strategically placing Internet ads,
using direct mail tactics sold and generating PR. We offer a unique product
that we feel confident expecting women will find fun to wear during their pregnancy.
It will be a novelty item that will allow them to stay connected to their
interest in their collegiate team both at games and around town.
Marketing
Strategy
Marketing strategy is crucial to the success of our
business. We must create awareness of our product to our primary target market,
as our products are of little use to anyone outside of this group. We will do
this by:
Ø Utilizing
the brand-name power of eBay and its popularity to establish credibility and
increase awareness of our products
Ø Strategically-placed
ads on websites that are frequently visited by expecting moms, such as
parentsplace.com, babycenter.com, americanbaby.com and babyzone.com
Ø Placed
ads on collegiate sites such as collegefootballnews.com and sports.yahoo.com
Ø Adding
our products to other sites as an affiliate provider
Ø Direct
mail and e-mail advertising to expectant customers
Ø New
product PR in publications for expectant customers
Sales Strategy
Sales are dependent upon creating awareness of
collegiate maternity wear within our target markets, and therefore the sales
strategy for Myproductbd.com is based on driving business to our website and
our eBay store. Because we are a new product line, we understand that we will
have to generate excitement about our apparel in order to generate business. We
will strategically place pop-up and banner ads on websites relevant to both
expecting mothers and sports fans, we will use direct mail and email lists, and
we will seek public relations coverage in relevant media sources.
Sales Forecast
The sales forecast for FY 2016 takes into account
slower sales at the beginning as we create awareness of our product and
website. Initially we will be selling one style of t-shirt, but will offer it
with the logos of up to 132 different Division 1 universities. As the company
grows, we will explore the demand for other types of collegiate maternity wear
such as tank tops, sweatshirts, and long-sleeved shirts. In the first three
months, we will sell exclusively through eBay. Although this adds to direct costs
(roughly TK1 per shirt) because of eBay fees, we will save money on both
marketing/advertising costs and website maintenance by holding off on fully
developing our own site until we can see what items customers prefer. We
anticipate that even after enabling sales on our website, eBay sales volume
will continue to be higher.
The Monthly Sales Chart that follows indicates that we
have some seasonality in our business. We expect sales to increase during the
fall, which is when football season occurs and when sales for collegiate goods
are the highest. Note that the direct costs shown in the Sales Forecast table
represent only the direct inventory costs for t-shirts. There are other,
non-inventory direct costs, including eBay fees and PayPal fees; these can be
found in the projected Profit and Loss.
Competitive environment
and advantage
The competitive edge offered by Myproductbd.com is our
unique product. Currently, no major maternity retailer and few online stores
offer collegiate maternity t-shirts. We will position ourselves as a specialty
online store catering to expecting moms who want to maintain their support of
their favorite team through their pregnancy. Because of our niche, we can
effectively choose targeted sources to market our product to our customers. Our
primary weakness is that we are a new business and we offer a new product. To
generate sales, we must first create awareness that our product exists, and
make it easy for potential customers to locate our online store. By offering a
fun product that many expecting women would like to have, we feel we a quickly
establish our presence in the maternity wear industry.
Organizational
development
Myproductbd.com will fulfill orders from our eBay
store and later, our own website. All payments will be processed through PayPal
in the first year, although we will evaluate the option to do Fax orders if
customer demand it.
·
E-orders:
Customer can purchase online 24-hours a day, seven days a week.
·
Fax orders: Customers can fax in an order
24-hours a day, seven days a week if we implement this.
As the company grows, we will leave the option open to
using a fulfillment center to take orders via the telephone.
E-Commerce
planning
The following sub-topics outline our plans to create
and maintain our website. At first, we will have a simple text and image-based
website which outlines our products and redirects customers to our eBay store.
After the first three months, we will begin online ordering via our own website
as well. Website of myproductbd.com may as follows:
Website Marketing Strategy
Our website will provide information about us and our
products as well as order processing to purchase our products online. We will
include our web address in all of our advertising to reinforce to our customers
how to find us online. Our company logo and motto will also need to be eye
catching and easy to remember so that once our customers find us, they will
remember us and suggest us to their friends and family.
Website Development Requirements
Initial Development
We will be working with an outside contractor to
design the layout of the site. Initially, our site will provide an overview of
the company, describe our products and services, and redirect visitors to our
eBay store to purchase a shirt. The estimated costs for initial website
development are listed in our start-up costs.
Some of the features included on the website will be
the ability to search for logos by school name as well as by "team
name" (such as the University of Alabama "Crimson Tide," the
UCLA "Bruins" and the University of Oregon "Ducks").
Good-quality pictures of our products and the logos on the products will be
available, so the customer can see what they will be getting.
Full website (including online ordering)
In the third month of the plan, when we have a better
sense of customer preferences, we will finish the development of the site to
include online order processing (via PayPal). Starting in November (heavy
football season) customers will have the choice of buying either directly from
our website, or via our eBay store. Additional security functions are required
for doing PayPal sales on our own website
Management
team
As the company launches date approaches, one part-time
(30 hours/week) employee will be hired to help with fulfillment with a second
part-time employee scheduled for the third month, entering into the highest
potential selling time frame, football season. As the company grows, more
personnel will be added as needed. If projections for October through December
are correct, temporary seasonal help will need to be hired to assist in
fulfilling the order processing.
Part-time staff will be responsible for processing all
Internet and Fax orders, PayPal payments received, and will handle all shipping
functions. Subcontractors will be used to help with website design and
marketing, and these subcontractor costs can be found in the Profit and Loss
tables Expenses section.
Financial summery
Myproductbd.com projects the gross margin to be at
approximately 65% percent. Sales projections for Year 1 are over TK15, 000,000.
A monthly breakdown of the cash-flow analysis, balance sheet, business ratio,
break-even analysis, and other financial details are shown in the appendix.
Annual projections will be highlighted in the following sub-topics.
We must track our eBay and PayPal fees to make sure
they are projected appropriately in the Other Cost of Goods section in the
Profit and Loss statement. As we gain experience with what the average cost is
for Item Fees, Final Value Fees, and PayPal fees, we may need to change the
Profit and Loss table to reflect the correct cost. At this point we have placed
high estimates to make sure that we are realistic about the cost of doing
business on eBay.
The fees are based on the following:
EBay fees (only apply to eBay store sales):
Insertion fee of TK.35 per item, plus Final Fee at
5.25% of total sale price on each sale
PayPal fees (apply to all sales):
First two months: Standard rate of TK0.30 per sale,
plus 2.9% of total sale price on each sale
Afterwards: Merchant rate of TK0.30 per sale, plus
2.5% of total sale price on each sale*
These fees are very conservative, assuming that each
unit sale is one complete sale. It is likely that at least 1/5 of our sales in
the heavy sales months will be for multiple shirts, since pregnant couples
often know other pregnant couples and buy each other gifts.
We will also be spending marketing dollars to promote
our products with eBay's promotion tools. We want to make sure that we have
enough money to buy some search placements as well as buying "bolded"
listings in the eBay search results. As we sell more items we will adjust the
marketing expenses either lower or higher -- depending on what is working for
us.
Recommendation
Once the owner completed his initial plan and,
hopefully, obtained the investment or loan you were seeking, keep in mind that
your business plan should be a living document. Don't just store your business
plan on a shelf and never look at it again, thinking that it has served its
purpose. You will want to revisit your plan from time to time, dropping some
components and adding others as you learn what works for your business and what
doesn't. As your business evolves, you'll find that older versions of your plan
provide a helpful reminder of how far you've come. As a bonus, continually
updating your plan will put you ahead of the game if you later need to secure
additional financing. There's no question that putting together a good business
plan takes a tremendous amount of work. But if you do it right, your effort
will pay off.
There should have
solution for some problems and they are:
- Being
special type of business the company will faces the problem of legality so
they should have make registration in order to avoid these problem.
- As
the concept is new, it should have strong promotional activities to aware
the customer about the product.
- Financial
problems should be solved by managing cash from bank and friends.
- Should
have skilled employee to provide a greater service 24/7.
- Make
a strategy to the advantage over the competitors.
- Be
aware about political instability and other external; factors so they can
be face when they occur.
Conclusion
A business plan is not just a lengthy document that
helps you obtain financing. It's truly a thorough examination of whether your
business idea is viable. Preparing your business plan in the early stages of
developing your business can save you a great deal of time, money and heartache
by showing you where the weaknesses in your idea lie and giving you a chance to
correct them before you make any serious mistakes. For example, in the process
of putting together your business plan, you might discover that you haven't
really thought enough about your marketing budget or you haven't done enough
research on government regulations that will affect your business. In putting
together your plan, you will be forced to examine your business from the
viewpoint of the skeptical potential investor and the skeptical potential
consumer, not just from the perspective of the enthusiastic entrepreneur.
Thanks for a very interesting blog. What else may I get that kind of info written in such a perfect approach? I’ve a undertaking that I am simply now operating on, and I have been at the look out for such info. case study help, case study homework help
ReplyDeleteIt was a very good post indeed. I thoroughly enjoyed reading it in my lunch time. Will surely come and visit this blog more often. Thanks for sharing.
ReplyDeleteEyalnachum
I am always searching online for articles that can help me. There is obviously a lot to know about this. I think you made some good points in Features also. Keep working, great job https://www.agentsolo.com
ReplyDeleteSome budding entrepreneurs understand the effort necessary to create a business, but they might not be familiar with the many steps required to launch a business venture.
ReplyDeleteBest mentor in the UK
Great article.
ReplyDeleteLooking for ecommerce fulfillment services in Malaysia? Consider SnT Global Logistics! They also provide b2c fulfillment and efulfillment service.
This a good way to appreciate the teacher as they put their efforts to train students. UK dissertation Writers appreciates the teachers. https://givetime.io/
ReplyDeleteHere you will learn what is important, it gives you a link to an interesting web page: help write my business plan
ReplyDeleteSelling is one thing, but borrowing against your portfolio is another. You will want to make sure that you are able to borrow against your portfolio, which is similar to leveraging what is in your portfolio for a cash infusion. payment processing companies for sale
ReplyDeletePretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Any way I'll be subscribing to your feed and I hope you post again soon. Big thanks for the useful info. writing a business plan canada
ReplyDeleteThanks for sharing this useful Content. B2B portals are growing steadily across the world as they offer good opportunities for businesses to earn well.
ReplyDeletefurniture mobile app development