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In more detail, the business acts in the online-renting sector for fashion accessories like handbags/ letches, belts and sunglasses. Hungary is a landlocked country in central Europe with an estimated population of almost 10 million people. There are 6. 2 million internet users in Hungary which represents 62% of the total population and 29% of the internet population have broadband connections with speeds equal to or better than broadband speeds in the I-J.
Internet Population: 6,176,400 GAP per capita: $18,815 Internet Market Potential (GAP*Users/million): $116,209 million Internet Advertising Market Size: $153 million (Global Customer Acquisition) The Hungarian homeowners market is expected to generate total revenue of $592. Million in 2012, representing a compound annual growth rate (CARR) of 2. 4% between 2008 and 2012. – (Marketing Industry Profile I Homeowners in Hungary I February 2013) Clothing is an essential item, with consumer choice being influenced by factors such as fashion and a desire to signal social status.
Demand patterns are susceptible to branding and advertising, which, despite the lack of significant switching costs, tends to weaken buyer power. Individual buyers’ demands change at a fast pace, meaning that, in an attempt to maintain market share in a highly nominative market, players aim to attract customers by creating strong brand consciousness and running intensive marketing campaigns.
Source: Global Customer Acquisition http://www. Movable. Com/Hungary 2. SOOT Helpful Harmful Internal factors Strengths Weaknesses Brand famous names of products Unique alliances with other businesses (brand shops) marketing plan By Nagasaki (Email, SMS, Faceable) Doesn’t need heavy, sophisticated equipment Low cost to maintain and enhance the site, social site page Use existing distribution networks (DEL, Feted)
All items have low delivery cost, because they are not heavy Not mass production Highly visible website Narrow product line Insufficient financial resources to fund any changes we would like to make Unrecognizable brand of company Inexperienced managers Possibility of theft or damage to items No consumer base External factors Opportunities Threats Hungarian market has not been yet fulfilled Can expand our product range (new items) Can expand your customer base (Geographically, gender or through new products) Consumers have a choice to use a substitute product (buy or use another
The needs of our consumers are changing service) Competitors can offer similar service quickly Tariff increase delivery Insurance costs increasing Income levels will rise and people could buy luxury Source: http://www. Weatherboarding’s. Com/soot_analysis_examples. HTML 3. Positioning Our company is a service of convenient and fast online rental luxury, designed items, which provides warm service for our customers. The way customer can make the order is to follow our web site, where everyone can find all up-to-date goods.
Our company’s core business strategy is to combine exceptional and knowledgeable customer service with quality stylish merchandise. And in turn, we’ll provide an enjoyable, convenient online “shopping” experience for our customers. Ex.’s mission is to offer women a wide selection of fashionable, figure-flattering items (handbags, belts and sunglasses) from the most famous and expensive designers. It is easy way of being fashionable, which by the way saving your time. 4. The benefits of service After SOOT analysis we can determine main benefits of service.
Nowadays is really important to run with the times. People become more busy all the time, they earn none 24 hours. So shopping for them is wasting time. For such people our service is (DEL, Feted), which can be sent to any place (home, work place). The goal of women all over the world is to be the most beautiful. Fashion let them chance to excel. It so happens that everything that is considered the most fashionable is really expensive. So, our service suggests another way to be the most fashionable and precious without spending a lot of money. Fashion is fast going part of our life.
If you are really following it, you cannot take the bag from last collection or wear sunglasses, which were popular two years ago. When you are using rental service you are not losing money for buying all up-to-date items. Consumer can rent it for the period of popularity and change it when designers will produce new collection. It is also good for fast changing taste of women. There are some really important events in the life of everyone. It can be wedding, finishing the school, anniversary etc. Everyone would like to look wonderful on these days, but doesn’t want to spend a lot of money Just for one day.
Renting some luxury items is good idea for days like these, and our company an provide renting Just for 2 days, what can be really cheap and convenient. Budapest is the capital of Hungary. It is one of the most fashion cities here. But still there are no so a lot of brand shops, such as D, Gucci, Hermes. Dior, Channel, Louis Button etc. It means, that these companies’ goods will come closer to customers. Citizens become part of high fashion. To sum up: Benefits: Fast online service Cheap Up-to-date and actual Different terms of renting The most famous luxury brands 5.
Competitors There aren’t companies in Budapest, where you can rent bags, belts or sunglasses. Good step to start a business where there are not competitors. In all of the world, a lot of companies that are engaged in renting Jewelry, luxuries or accessories. These companies are based on the wedding business, they provide for rent wedding luxuries or accessories. There is a separate group of companies that are engaged in renting luxuries for gala evenings and parties (such as a birthday, secular parties, corporate events, etc. ) Among the largest best practice examples from around the internet: – Borrowings. Com (USA) – Rearrangements. Mom (USA) – Observationally. Com (USA) Adorn. Com (USA) Assessment positive + neutral O negative – Criteria Service + – Quality O O + Price O + – Delivery time O + + Availability – Consider the pros and cons of competing companies The company “Borrowings. Com” has an interactive website where you can select your favorite luxuries to order it for rent. Cons that are not listed on the website of the price and selection of luxuries is very small. There are not the lease terms. A lot of luxuries are not available. Company “Rearrangements. Com” has an interactive website with the exact price and terms of the lease.
Selection of luxuries and bags is big. But the problem with this company is that the website does not work well and there are errors. A lot of luxuries are not available. Company “Observationally. Com” has an interactive website. And you can select that company that the quality of luxuries for rent is very high. But the negative point – a very expensive rental. On the whole website works well and is right on the website you can rent and buy your favorite bag or luxuries. The company “Adorn. Com” has an interactive website where you can order your favorite luxuries from a wide selection.
A lot of luxuries are available. Excellent quality, but rental prices are high. Considering all the pros and cons we can take this into account in designing a website for our company. We can also notice that only one instance of a competitor can be rented sunglasses. All these companies doesn’t provide rental services belts. We should take attention: – Operational work site (enough information) – Availability of luxury goods – A wide range of – The quality of luxury goods – The price of rent (available to people) – Delivery (what ways) http://borrowings. Com/celebrity. PH http://www. Manhandling. Com/ http://www. Observationally. Com/ http://www. Adorn. Com/ 6. Marketing goals We expect our strategy to draw consumers into XX from the very beginning. Our marketing message, logo and slogans will revolve around the idea of the fashion and expensive, but not costly and taking long time generation as revolutionaries and trend setters. Our aim is to establish our company as a pioneer in this industry in revolution. We expect to keep our marketing budget to no more than 5% of our gross annual sales. We will partner with fashion, famous design houses to follow all trends. Customers XX Company is a business-to-consumer online clothing rental company. Fashion ladies 15-45 years old are our clear target audience of the service. These are the same women who live their lives on Faceable and Instating and are creating an image for themselves. We expect to catch on our customers with higher-middle class in the Hungarian society which makes 63. 4% of the society (LIST Cross National Data Center, 2012). The service is ideal for glamorous one-time evening bags that people wouldn’t normally buy. Also it is for a pre-sales experience for luxury handbags for everyday wear.
On one hand, it is high educated woman, who works on a good place, where she meets a lot of people. She has to be fashioned and groomed all the time. She can work in big, full of another women, office. If this lady has got new item – everyone around her will notice it. After work she usually goes to higher-middle class restaurant with her boyfriend/husband or with her colleagues or friends. She is busy with her work to go offline shopping, but have time to use web during the work hours, so it’s more convenient for her to buy some accessories online.
On the other hand, it s last year student, who has rich boyfriend, who likes clubbing and spending time by shopping. But she cannot afford buying luxury items from the most famous designers. For her the task number one is to look expensive and Jaundice. She is young, but she knows everything about actual trends and can distinguish all fake items. So, renting real designed items is a good way for her to look the way she wants. Current statistics show that the market segment of so called Online-shoppers increases from year to year. Nowadays 49 % of online respondents make purchases online (the Nielsen Company, 2013).