Performance Measurement
Marketing Plan: Easyline.com1Executive Summary
Easyline.com needs a sound marketing strategyOrgainziation seek
profit by serving the needs of consumer groupsTarget customers are
young to middle age with low to middle incomeObjective is to double
sales in one yearStrategy unquely identifiable and value impressive
product easy, convenient, and satisfaction-guaranteed
serviceMarketing mix focuses on product, pricing, promotion, and
distributionInvestment needed: $30.000Payback period: 8.2
MonthsMarketing Plan: Easyline.com2Introduction
Easyline.com is an online giftware storeSlow salesIncur losses
since open two years agoLow visibilityOnly linked through eBay
auction sitePast strategy hinged on low cost sourcingOwner
experience in eBay sellingOwner good at website designEasyline.com
lacks marketing managementMarketing Plan: Easyline.com3Situational
Analysis Web-based businesses on the rise, replacing traditional
retailer Big box retailers dominates the industry Internet made
information dissimilation easily Consumer has bargain power and
their demand changes quickly Market trends argues for target
marketing and service agility Small business owners has
opportunities to carve a niche market
Marketing Plan: Easyline.com4Situational Analysis contd
Consumers Consumer market segmented Cultural, demographical,
enviromental factors influence segmentation Dimension of consumer
value broadened Identifying and marketing to target consumer group
is key for success Internet consumers wants fulfillability Internet
retailers must pay attention to product presentation and
deliverability Frequent internet shoppers look for entertainment
Holidays are important time for internet shopping Small e-retailers
are more nimble to meet changing demand Consumers are increasingly
accustomed to promotional pricing Economical slow down affect
consumer buying power
Marketing Plan: Easyline.com5Situational Analysis contd
Consumers Table 1. Percentage of Internet Users in US,
2007Marketing Plan: Easyline.comTotal
adults71%GeographyWomen70%Urban73Men71Suburban3AgeRural601802987Household
income20-4983Less than
$30,000/yr5550-6465$30,000-$49,9996965+32$50,000-74,99982Race/ethnicity$75,000+93White,
Non-Hispanic73Educational attainmentBlack, Non-Hispanic62Less than
high school40Black, Non-Hispanic62High school61English-speaking
Hispanic78Some college81College +91Source: Pew Internet &
American Life Project, 2007 6Situational Analysis contd Consumers
Table 2.Online Spending by Product Category, 2005
Marketing Plan: Easyline.comCategoryQ1 2005
spending(millions)Travel$15,040Computer / peripherals /
PDAs$5,599Apparel & accessories$2,588Office
supplies$1,783Consumer packaged goods$1,182Consumer electronics (X
PC peripherals)$1,018Books & magazines$834Computer software (X
PC games)$689Event tickets$685Funiture, appliance &
equipment$678Others$4,106 Source: comScore Media Metrix7Situational
Analysis contd Consumers
Marketing Plan: Easyline.com
8Situational Analysis contd Supplier Low cost country sourcing a
growing trend Retailer industry pay less causing labor shortage,
resulting in supply order volatility and longer lead time Reducing
VAT (Value Added Tax), a chinese government subsidy, impact vendors
Chinese factories may raise price Third-party logistics companies
can handle smaller orders by consolidating orders from different
factories into containers
Marketing Plan: Easyline.com9Situational Analysis contd
Competitor Big box retailers such as Wal-Mart and Amazon.com
changed the American shops eBay.com a prominent threat to small
retailers Hallmark and Lenox are just two examples of numerous
giftware companies Giftware market are competitive and
fragmented
Marketing Plan: Easyline.com10Situational Analysis contd SWOT
Analysis of Easyline.com
Marketing Plan: Easyline.comStrengths Cheap price; Variety of
choices; Fast delivery and low shipping cost; Targeting seasonal
and special occasion Simplicity. Direct manufacturer contact
Ability to upgrade website at no costWeaknesses Low visibility Lack
of scale Market demand timing difficult Small order quantity
affecting supply costs Marketing budget constraintOpportunities
Proactive suppliers marketing effort Rapid changing consumer demand
Increasing online shopping trend Increasing use of social website
and community page Possible cross promotional opportunity with
local stores and non-competitor website Nimbe response to demand
change
ThreatseBay sellers are price competitiveMany giftware stores
have online selling capability Shortage of supply or price hike
without long term contract 11Marketing Plan ObjectiveDouble the
sales and become profitable within one year of implementing the
marketing plan StrategyProvide customers uniquely identifiable and
value impressive gift products with online shopping service that is
easy, convenient, and satisfaction guaranteed. Target MarketYoung
to middle age with low to middle income, including college
students, young couples, working moms with young children.
Marketing Plan: Easyline.com12Marketing Plan Marketing
MixProduct Strategy price, uniqueness, variety, and
packagingWebsite Strategy easy to navigate, visual experience,
shopping exerience, rich content, customer assitance, security and
privacy Pricing Strategy mark-up pricing, high/low pricing
Promotion Strategy price discount and coupon download, attractive
website, search strategy, linking strategy, email strategy
Marketing Plan: Easyline.com13Marketing Plan Marketing Mix
(contd) Distribution Strategy UPS service and local customer
pickup, China sourcing, third party logistics Marketing Research 1.
Gift categories 2. Effective website marketing techniques
3.Suppliers and logistics
Marketing Plan: Easyline.com14Marketing Plan Implementation and
Control
Marketing Plan: Easyline.comImplementation timeTasksTask
DescriptionDeliverable MetricsResponsible PartyMay Marketing
ResearchDuring the first month, marketing research on giftware
category, web techniques, suppliers and logistics should be done to
provide bases for further plan executionProduct lists, Supplier
list, web techniques report
Rebecca Zhang, Mrs. Huang, Consulting firmWebsite
marketingObtain program for easily monitoring Web traffic and study
where the traffic has been coming from.Report of site
trafficRebecca Zhang Website Design Develop website design plan;
Determine resources needs; Budget allocation; Key function of
Website , mission statement, Keywords selection; General layout;
Mrs. Huang JuneProduct planning Plan type, quantity, price range of
giftware to sell List of products for sourcing Rebecca Zhang Mrs.
Huang Website marketing Continue to monitor web traffic and
customer buying pattern; Email inform existing customers of new
website and product planning and ask for feedback Report of site
traffic and customer feedback Rebecca Zhang Supplier selection
Start contacting potential suppliers for product quoting; establish
communication channel; Arrange factory tour trips; A compiled list
of product quotation; Email and phone List of contact persons;
Business trip plan; Mrs. Huang Website Design Finalize web design
plan including detail features; Start design process. Front page
layout complete; Main functions works; Mrs. Huang JulyProduct
sourcing Select suppliers, establish logistics channel; Buying
products and packaging accessories; Supply agreement signed; Mrs.
Huang Website Design Detail website design Website working and
ready for test; Mrs. Huang Website Marketing Define search
strategy, link strategy, and email strategy; Keywords incorporated
in website design; Website URL submitted to key sites. Rebecca
Zhang AugustWebsite Design Finalize website design; Begin testing;
Test successfully as measured by the criteria of internet shopping
service; Mrs. Huang Rebecca Zhang Website marketing and product
promotion Test and monitor website marketing effectiveness; Enhance
marketing effort and improve site traffic. Solicit customers
feedback; Significant site traffic increase; Positive customer
feedback; Rebecca Zhang Launch site Sites ready for customer
shopping Site function smoothly; No customer complaint; Mrs. Huang
Rebecca Zhang Next 12 MonthsMonitoring Progress Collect site
traffic and sales data; Customer survey; Review reports monthly.
Monthly traffic and sales report indicating growth as projected.
Quarterly and yearend sales reach target (considering seasonality).
Mrs. Huang Rebecca Zhang 15Marketing Plan Implementation and
ControlFinancial ForecastEstimated initial investment: $30,000
including consulting fee, technology cost, business travel,
marketing cost, software cost, etc. Current average unit selling
price: $35 Current annual unit sold: 1000 units Planned future unit
selling price: $10 ~ $100 average unit price $50 Projected unit
sales in one year: 2000 units Revenue forecast$100,000 Gross
margin50% Gross profit$50,000 Annual website maintenance cost:
$2000Annual website advertising cost: $2000 Other expense $2000 Net
profit $44,000 Investment payback period: 8.2 months
Marketing Plan: Easyline.com16Summary Marketing planning starts
with market research Implementation must take integrated approach
Single-minded focus would result in disconnection between customer
needs, our financial objectives, and supply management. Website
visibility is vital to internet stores We want customers come to
know our website through attractive products, competitive price,
and convenient internet service.
Marketing Plan: Easyline.com17Reference1. J. Paul Peter, James
H. Donnelly, Jr., 2006, Marketing Management Knowledge and Skills,
McGraw-Hill2. Dr. Ralph F. Wilson, 2006, The Web Marketing
Checklist:32 Ways to Promote Your Website, Web Marketing Today,
http://www.wilsonweb.com/articles/checklist.htm3. 1st Annual State
of Industry Report, Giftware News,
http://giftwarenews.com/soti.htm4. Infoplease.com,
http://www.infoplease.com/science/computers/demographics-internet-users.html5.
James Maguire, 2005, The State of E-Commerce: Online Shopping
Trends, ecommerce-guide.com,
http://www.ecommerce-guide.com/news/trends/article.php/11827_3524581_26.
http://www.websitemarketingplan.com/7.
http://business.gov/guides/advertising/
Marketing Plan: Easyline.com18
