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The mission of Candy’s Online Boutique is to provide the finest and most fashion forward apparels and accessories using the Internet to lower the consumer’s cost. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers. The majority of the start-ups which were Internet-based started their business model on the assumption that the first to market had the best chances of survival.
This reasoning was based on the belief that gaining customers and market share were the most important things a business could do and the first to arrest had the best chance of achieving this. While these are indeed important activities, they are by no means the absolute priority. The whole technology fallout indicates that a proven revenue-generating business model is more important than sheer customers and market share. In the next five years Cindy Online Boutique intends to create an icon e-commerce brand and will grow in revenue. . The Product Candy’s Online Boutique is beginning its first year of operation. COB recognizes that marketing activities are critical to the success and profitability of the business. COB offers a wide selection of top of the line designs made by young up and coming Filipino and Chinese designers. The basic market need Is for a wide selection of reasonably priced, consistent-quality items. II. Market/ Competition Market Summary Candy’s Online Boutique has collected information regarding the common attributes of the prized customers.
This information will be used to determine the specific needs of the customers and the best method for communication with the targeted segments. Market Needs Cindy Online Boutique is providing its customers with a wide selection of private label clothes and accessories. COB seeks to fulfill the following benefits that are important to their prized customers. Selection: Customers demand a wide selection of needs that can be met by one store. Quality: There are hundreds of different boutiques selling an array of choices within Metro Manila.
Having consistently high- toys regulated and vary widely in quality and strength. Customer Service: Consumers want to patronize companies that have customer service as a priority. COB will be using Amazon. Com and L. L. Bean as industry benchmarks. Market Trends The market trend for boutiques has seen a recent increase in sales as well as an expansion of product offerings. This trend is fueled by several factors: An increase in patriotic and nationalistic awareness relative to the local design has amplified thanks to the free exposure in the media and local celebrities.
An increase in people’s desire to express themselves through their outfits. This can be seen by the increase in sales for statement t-shirts and apparels. Market Growth The market for personalized clothing and apparels has grown to over PH. 2 billion annually. Independent local boutiques alone are growing by 20% per year. This market is led by the generation of young professionals who are concerned with their Anita. Also, there has been a paradigm shift of perception on fashion. Statement clothes and avian-grade outfits are seen as normal, they are no longer outliers in society.
Additionally, independent designers have further legitimated these products and vindicated larger-scaled commercial labels when it comes to the market. The statement clothes and avian-grade outfits market is a semi-mature market characterized by high-growth rates, medium barriers to entry, and a few large competitors. Despite the competition in the market, many companies have reported annual growth levels of 30%. The market leaders are as follows: Bench, Inc. (website: wench. Com): This company is a nationwide specialty retailer on clothing. With over 3,000 stores, Bench generated PH. 9 billion in 2000. Penthouse, Inc. (website: www. Penthouse. Com): Penthouse manufactures and markets a variety of health designs. This multi-level marketing company had 2000 revenues of approximately Phi million. Human, Inc. (website: human. Com): Human develops, manufactures, markets and sells clothes and apparels through retailers, independent distributors, and mail order. Human had 2000 revenues of approximately Phi million. The primary channels of distribution in this market are: Mass market retailers (SMS, Robinsons and Loyal malls). Direct sales organizations.
Mall booth outlets. Mail order catalogs and the Internet. SOOT Analysts The following SOOT analysis captures the key strengths and weaknesses within the company and describes the opportunities and threats facing COB. Strengths Strong relationships with private label manufacturers that provide high-quality clothes and apparels and on-time deliveries. Efficient operations providing COB with above-average margins. The ability to scale rapidly as sales increase. The lack of brand awareness due to the fact that COB is a start-up company with only an Internet presence, no real store front.
The proven strategies for developing online visibility are still being tested, it is currently trial and error. Opportunities An efficient business model within a growing industry. The ability to service the entire country. Provide differentiation through enhanced convenience and service attributes. Threats General trepidation of Internet-based business. Increased government regulation for clothing. Aggressive competition from secondhand, bargain stores, and other markets. Competition Within the mass-market retailer channel, the three competitions are national brands, broad-line brands, and private label brands.
The national and broad-line brands consist of 60% of the domestic market, while the private label brands account for the remaining 40% of the market. National Brands Examples: Bench Generally do not provide a full line of vitamins or other supplements. The product formulas are conservative and generic in nature. Broad-line Brands Examples: Penthouse Full lines of products under one brand. This is the market segment where most of the product development and innovation occurs. Stronger potteries and cutting-edge designs. Highest price. Private Label Products Examples: Human Under retailer’s name.
Smaller line of products than broad-line brands. Manufactured by a third party. More conservative designs than broad-line. Tend to be the cheapest. Product Offering Cindy Online Boutique will market and sell private label (manufactured by a company that places the retailer’s name on the packaging) to individual consumers via the Internet. These products will include personalized and avian-grade labels. After year one, additional products will be offered. Keys to Success The keys to success are simple to articulate but challenging to achieve: Outstanding customer service. Consistently highest quality products.
Efficient operations. Critical Issues Its critical issue is to continue to take a modest fiscal approach. While its business model allows for rapid scalability, the business should be expanded only because it is necessary to serve the customers with a high level of attention and service that they are/should be accustomed to. Ill. Strategies and techniques Marketing Strategy Cindy Online Boutique is focused on the merging/redefined Internet marketplace. The users will be young urban professionals, which represent approximately 50% of the discretionary income currently in the Metro Manila.
They are looking for proactive, fashion-forward, quality clothes. Cindy Online Boutique can bring these people cutting-edge products coupled with convenience and service. The long-range goal of Cindy Online Boutique is to not only dominate the online clothing market, but to also create an icon brand. Initially, the company will: Engage in Web-based marketing for the next year to generate awareness of the company and product information. Because Internet-based advertising has declined in recent quarters, the prices for advertising have consequently significantly dropped making the expenditure more cost effective.
Engage in outdoor advertising providing general awareness to the public at large and direct individuals to the company’s website. Mission Cindy Online Boutique’s mission is to provide the finest clothes and apparels using the Internet to lower the consumer’s cost. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers. Target Markets A significant trend in the Philippines and abroad is that people are taking a more proactive interest in what they wear.
This is exemplified by the increase of fashion blobs and magazines. People are looking to avoid branded items placed at a higher cost with less quality; instead people are taking an active role in looking for unique and quality-rich items. Besides the general development of personalized and avian- grade clothing, the Young Urban Professional population is a significant trend driving the sales of clothing companies, which is comprised of 3 million people, representing ever 35% of the county’s discretionary income. It is reasonable to believe that this wealthy market segment will continue to grow the sales of these products.
Another global trend is the emergence and popularity of e-commerce. Brand-focused Web retailers that can provide good products, customer service, information, and the intangible, emotional buy-in by the customer are becoming hugely successful. E- commerce retailers have an advantage in that “Unlike traditional retailers, Web- based sellers are not slowed by the friction of store growth and local marketing” O. W. Gurgle, Fortune, 1/11/00). In addition, e-commerce companies do not have the excessive overhead of a traditional brick and mortar retailer.
As seen by the recent success of Amazon. Com and Gap. Com, consumers are comfortable buying online and The recent Internet crash was based on too easy access to capital invested into retailers and other dotcom without reasonable business plans or revenue models. Regardless of the recent fallout, the Internet is a very efficient marketing and distribution model that if done right, significantly decreases costs of serving the consumer. Positioning Cindy Online Boutique will position themselves as a one-stop Internet purveyor of sigh-quality, reasonably-priced clothes.
COB will leverage its competitive edges to achieve the desired positioning: Cindy Online Boutique’s competitive edge will be its easy to use website and superior customer service. The website design will be a competitive advantage because research indicates that an easy-to-use website significantly increases sales. Too often sales are lost because of complex websites that are far from intuitive. Cindy Online Boutique’s other competitive edge is superior customer service. The mantra of the customer service department is to serve the customer in any way required.
Customers that call in with problem/issues will be amazed at the amount of personal attention they receive, and how quickly issues are not only resolved but significantly improved. Superior customer service will be a powerful asset. Strategies The single objective is to position COB as the premier retailer of clothes and accessories online. The marketing strategy will first seek to create customer awareness regarding the products offered, grow the customer base, and work toward building customer loyalty and referrals. The long-range goal is to not only dominate the market, but to create an icon brand.
Initially the company will: Engage in Web- based marketing for the next year to generate awareness of the company and product information. Because Internet-based advertising has declined in recent quarters, the prices for advertising have consequently significantly dropped making the expenditure more cost effective. Utilize outdoor advertising, providing general Marketing Mix Cindy Online Boutique’s marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service. Pricing: The pricing structure will slightly undercut the national brands.
COB is able to do this by leveraging its efficient business model as well as using private label manufacturing. Distribution: All products will be distributed through its warehouse, accessed via the website, and delivered throughout this country as well as internationally. Advertising and Promotion: Internet-based marketing as well as outdoor ads will be used. Customer Service: L. L. Bean and Amazon. Com have been benchmark as industry models. It is No’s goal to reach the same level of service as the benchmark companies. ‘V.