Integrated Comm In Business
Integrated Comm In Business BUS 3700
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This 8 page Class Notes was uploaded by Jacinthe Berge on Wednesday September 30, 2015. The Class Notes belongs to BUS 3700 at Western Michigan University taught by Keith Howard in Fall. Since its upload, it has received 54 views. For similar materials see /class/216919/bus-3700-western-michigan-university in Business at Western Michigan University.
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Date Created: 09/30/15
1Page Martha s Kitchen Team 5 Nicholas Packer Mickey D Hanson Derek R Vandam Alan De La Cruz BUS3700 Prof Keith Howard Thursdays 630900 PM Contents Executive Summary Current Market Conditions and C I Scope and Analysic Martha s Kitchen Online Presence Current Internet User Market Market I 39 1 L39 Current Customer Race Demographics of Internet Users Purpose of the Study Internet ProsCnnc Benefits of Doing Business on the Web Web Shopping Rehavinrs 2 I a g e mmmU39IU39IU39lbbbbbww Executive Summary Martha s Kitchen is positioned at a crossway in its corporate generation with changing economic environments and fast developing technology specifically in the information sectors Today s market demands companies to get on the road to success maximize available opportunities or get left behind Martha s Kitchen has a very helpful goodwill history in the business and putting in amplitude the initial values into the future has been an enduring goal of the company Building upon the sizable following of catalog customers the opportunity to offer greater convenience and availability with the introduction of an online product offering seems reasonable Many strategic contenders have started online experiences already and demonstrated real world strategic benefits from offering cyber shopping The proper role of moving existing catalog customers to utilizing online shopping has demonstrated cost savings while increase customer service and convenience An online interface has the ability to reach a greater amount of potential customers over the existing catalog subscription Martha s Kitchen becoming a potential online service is intended to increase customer traffic and therefore raise sales volume The demographics of internet consumers and their purchasing habits fit well with our existing catalog market while allowing significant growth potential Our existing customers show affection to online shopping for other products and it seems only logical that Martha s Kitchen make shopping as easy as possible by selecting into the customer s intuitive use of the internet in their daily lives By Martha s Kitchen offering online sales capability has numerous benefits and consequences that needed to be considered An internet presence is available for customer sales service or browsing 24 hours a day to customers potentially all around the world There is low labor associated with going online and the overhead it anticipated to be offset by increased customer sales Internet availability is inherently a concern to the success ofthe project but cannot be altered Information security is absolutely necessary to ensure efficient exchange and gain customers trust Considering the necessary probability and anticipated strategic benefits of offering Martha s Kitchen products online we recommend the implementation of an online website that meets our sales customer service and public reputation goals Current Market Conditions and Competition Most ofthe costs associated with a catalog is shipping and printing Cutting these costs with the use of a website will help out with costs drastically The webpage will be significantly less to maintain and update over the course of new material being added and removed The model being referred to is very similar to that of one of our main competitors the gourmet food and gifts retailer Harry and David Harry and David were able to cut down on catalog distribution by 42 in 2010 while growing their online business by 16 With the online catalogs increasing use the decrease in distribution of the physical catalog will help to lower overhead costs and increase customer service The use of online shopping can boost customer volume and service as proven by current competitors in this industry 3Fage Scope and Analysis This is only an overview of a market study to show the current market conditions and trends to help and answer the question of whether Martha s Kitchen should use a website to expand their business or not After the decision is made as to whether or not to launch the website steps will need to be followed to determine the costs for launching the website the maintenance as well as the resources and investments needed Martha39s Kitchen Online Presence Martha s Kitchen currently offers the catalog sent via mail Customers are frequently asking when there will be a website for them to purchase their items through instead of calling up a Martha s Kitchen representative and placing an order with them The most heard complaint is that it is a large inconvenience to use the telephone service and that there should be a website implemented in the near future or there may be a loss of customers Filling out mail orders is far out of date and needs updated to current standards of online usage Current Internet User Market As soon as a website is launched this business will be available to the world to see This opens many doors for consumers everywhere to experience the products Martha s Kitchen has to offer With the following table you can see that the majority of internet users are located in Asia and Europe with North America coming in third These numbers just go to show how many possible customers there are available to make sale Market PenetrationGrowth By Region In millions of Internet users REGION of Users World of Users Asia 8251 420 Europe 4251 242 North America 2662 135 Latin America 2047 104 Africa 1109 56 Middle East 632 32 OceaniaAustralia 213 11 Internet usage growth from 2000 to 2010 was 1463 Current Customer Base Martha s Kitchen has its base of customers here in the United States Domestic customers make up 972 of the current sales which are of the age 30 or older and 75 of them are women 4Page Demographics of Internet Users It is very important to analyze the demographics ofthe normal internet shopper and see how much relation it has to that of Martha s Kitchen s current customers The average shopper consists of the following mean household income of 65000 per year 56 of shoppers are women average age is 42 and an average shopper spends 446 per year shopping online This analysis fits the current clientele that Martha s Kitchen currently has and with this information you can see that there is not much conflict Purpose of the Study The purpose is to show the capability of Martha s Kitchen if it were to go online and show what sort of revenues it would create as well as how many customers it could attract With an online interface there is more opportunity to give access to customers from anywhere and anytime The online system will broaden the marketing abilities by giving a timelier responsive and convenient way to browse the company s merchandise and place orders Along with the convenience comes the ability to reach a much larger area than that of the catalog distribution could ever be capable of Internet ProsCons Positives There are both positive and negative reasons for doing business online The great thing about conducting business online is it allows the company the potential to make money at all hours ofthe day all around the world quotOne benefit of online businesses is that you can earn money even while you are asleep By this I mean that your website is open 24 hours 7 days for people to make purchases from you Kaarakainen The Martha s Kitchen website will be available to all customers that have internet access and allow them instant communication with the company if they have a product related issue or if they want to shop the complete selection of products Another reason to go online is the increasing demand of the everyday consumer More customers are choosing online shopping because of ease of use and the ability to shop from home The Internet allows the company to stay connected to the customer The customer can find sales and other information without leaving there home and sales have increased because of that The last main positive that online sale s provides is low cost The company can expand its store with very low labor costs One person to maintain the website can provide for a whole rage of customers Negatives Although there are many benefits there are also negatives that are associated with establishing an online store The two main problems with online shopping is Internet availability and security of information Internet availability is a problem for some customers who live in an area that is behind in technology Cris Ramasasa says quotIf you are living in a remote country with no service providers you are in a lot of trouble going to the nearest Internet connection just to be reached your clients I am fortunate because our town has one service provided for connectivity where I can access easily with my subscribersquot Fortunately most of our current customers reside in the United States where Internet connectivity increases in both availability and reliability annually Another negative is Internet fraud In order not to lose customers Martha s Kitchen s website must keep its customers information secure and confidential 5I3age Benefits of Doing Business on the Web Web Shopping Behaviors Offering online sales to customers far outweighs not offering online sales Martha s Kitchen would increase their sales dramatically by offering online sales to customers This will help find new customers and it will offer more possibilities to our already existing customers to shop online Online shopping is fast and convenient The Internet gives an alternative to catalog shopping Instead of waiting for the catalog to come in the mail customers can just log in online and see the products that Martha s Kitchen offers Ease of buying attracts customers In a Nielson online survey respondents were asked to list the top ten reasons for online shopping Even though low prices definitely help to attract customers pricing was only the sixth most important issue for respondents Here are the results Low Available information It s also important to know what customers are searching for when buying a product online This was also asked in the same survey The huge difference in interest between product info and vendor info suggests that people are very goal driven on the web and care more about the specific product they are buying now and less about abstract issues such as the characteristics of the company Recommendations Martha definitely should do it Martha s Kitchen would benefit by increasing the current catalog business to online buyers In the current market customers expansion expects to have the choice to look at Martha s catalog with an online service because obviously is not expected to see our customers carrying their catalogs By offering the catalog and ordering online a customer on break at work can call up the website shop the catalog and order the products or gifts at their leisure 6F age It is recommended that the identical products be offered online to minimize the launch learning curve and offer our customers every product they are currently buying We also recommend that in the future additional product lines could probably be needed however that will require future analysis not covered by this study Projected Evolution The projected internet progress united with the projected growth in specialty Food store products are two key reasons to support Martha s Kitchen setting up a Web Store The internet usage in the United States alone has increased by 146 in the last 10 years With sales projections of 2 percent growth for the next two years and 4 percent in the following 2 years for specialty food businesses similar to Martha s much of the growth will be online and Martha s will not be keeping up with the competition if we do not launch the Web Store Starting locally and then Expand The marketing recommendation is to concentrate on our current United States domestic catalog customer base for the initial Web Store launch However with the web site being able to be accessed by anyone in the world a global business plan should be considered for a phase two The United States population accounts for only 135 ofthe world s internet users So there is a major opportunity to serve a wider more global market We think that launching it by maybe late September and staring October 2011 might be a great idea to capture next year s holiday sales which is our peek sales period for Thanksgiving and Christmas Encouraging the web store with supplements and advertising in our current catalog about new online ordering and web site catalog options Application of promotions is huge to use on the web store such as free shipping 10 off for orders over 7500 etc We think that with all ofthis promotion and advertisements it will increase sales due to the growth potential of the internet worldwide 7Page References 1Jak0b Nielson s Alterbox Why People Shop Online 1999 February 7 Retrieved from httpuseitcomalterbox990207html 2Pr0s and cons of online business httpwww article 112 9 mm internetarticlesthepr0sandconsof online 39 1661977 html h n39 e inem tiole onm 7quot J fDoingBusinessO 39 pI 15326961 3 Marketin g http WWW internetworldstats com stats htm htt wwwbu si htcomb10 20100423wh0ssh0 in 0nline 4Harry amp David 5httpwwwiutm quot com 20100928websalesturnsourharrvdavid 6 httpwwwarfirelthalte internet articlesthe prus and cons of onlin 39 39 1663922htm 8httpwwwmarketingchartswquot 39 shoppin shifts oninefu 39 price689M 8Page
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