Docstoc

The Competition

Document Sample
The Competition Powered By Docstoc
					Situational Analysis
SWOT Analysis
The following analysis provides an overview of Lifetime Gift Registry’s positive assets
and any known or perceived threats.

       STRENGTHS
       Highly motivated, well- trained staff
       Known customer need and desire for trouble- free shopping methods
       Easy and convenient service for consumers

       WEAKNESSES
       Lack of brand awareness
       Uncontrollable limitations, not all stores offer a gift registry option
       Consumer skepticism regarding complete online purchasing

       OPPORTUNITIES
       Ability to service any consumer or merchant anywhere in the world at any time of
       the day
       Entering the growing and expanding e-commerce marketplace

       THREATS
       Copy cat websites
       Refusal of key merchants to participate in registry services



Company Brief
        Lifetime Gift Registry, a web- based company, is embarking on its inaugural
launch this summer. Registry members will enjoy the ease and convenience of shopping
directly from their home computer. Countless well- known, high quality, businesses
from all over the world will be participating.

Industry/ Environment Analysis
        TECHNOLOGY
Social networking sites and well- designed web based services are crucial to the success
of any ecommerce business. Lifetime Gift Registry will maintain a highly innovative and
easy to navigate website; consumers demand convenience and high quality.
Consumer’s privacy and security are paramount this day in age. Lifetime Gift Registry
will employ the leading software security systems. Computer users will only choose to
shop on known, secure sites; the contamination of a virus is currently a large cyberspace
concern.

        ECONOMIC
Approximately 85% of all internet users shop on-line.
Internet shopping makes up over 20% of all retail sales.
Approximately 29% of internet shoppers age 54 and younger reported they would shop
on-line.


        CULTURAL
 Lifetime Gift Registry will provide customer support services in a variety of languages to
accommodate our diverse customer population.
The varying “gift giving” holiday’s throughout the world will be recognized by increased
advertising/ and marketing efforts during those times.

        KNOWLEDGE
 Highly skilled and well- trained staff are essential to relate to and appropriately service a
well informed customer market. Consumers are extremely knowledgeable about
computers and have easy access to competing retailer information.


Marketing Program Strategy and Tactics
Product
        Lifetime Gift Registry offers gift giving services from one convenient centralized
registry. Consumers no longer need to feel limited or pressured to choose the traditional
one store registry. Customers are able to maintain their own gift registry and/ or purchase
gifts for others from a wide variety of high quality stores from anywhere in the world.

Promotion
        Customers are kept connected via multiple social networking sites including
Twitter and Facebook. Members are electronically notified and kept updated on all of the
big sales and or discounts being offered from the various merchants.

Place
        Lifetime Gift Registry can be accessed via the internet and can be followed
regularly via Twitter or you can become a friend on Facebook. This global gift registry is
open to members from anywhere in the world.

Pricing
        Membership for opening or viewing a registry is completely free. Participating
merchants will be charged a yearly fee of $1,525 and have the option to purchase
advertising space on the Lifetime Gift Registry website.



The Competition
Addressing the competition will require that the Lifetime Gift Registry provides greater
customer value than its competitors. The Lifetime Gift Registry will develop a strong
competitive positioning strategy by identifying the strengths and weaknesses of the
competitors and using this information to prioritize their goals.
Three levels of competition exist.


Direct competitors (other “generic” registries )

       http://www.thethingsiwant.com

Universal Wishlist and Gift Registry Service for use as Birthday, Christmas Gift List or
Wedding, Baby Registry

       http://www.wishbin.com

Universal Wishlist and Gift Registry Service

       www.myregistry.com

MyRegistry.com is a leading service for online gift registries for weddings, baby
showers, birthdays, holidays and any other gift-giving occasions


Competition exists between products that can be substituted for one another (store or
product specific)

       http://www.alternativegiftregistry.org

Offers a number of “green” suggestions as well as the ability of the consumer to fill in
their own ideas and link to products outside this site to offer a wider and unique gift
selection; encouraging non-material, second-hand, homemade, and environmentally
friendly gifts

       http://www.honeyfund.com

Honeyfund.com is the free honeymoon registry; free for both couples and guests with no
travel purchase required.



Competition exists among all organizations that compete for the consumer's purchasing
power (the overall industry - retail)

       www.kohls.com

Specific to this retailer

Market Needs
Lifetime Gift Registry is a “one stop shopping” experience by providing a vast selection
of goods and services offered by independent retailers. Lifetime Gift Registry offers the
following benefits to its customers:

        Selection: Through contractual agreements with hundreds of retailers, the
         “Registry” can meet the various needs of each customer all under one “roof”.
        Quality: Lifetime Gift Registry will only contract with retailers offering good
         quality for a reasonable price.
        Customer Service: Lifetime Gift Registry recognizes that customers will return if
         the “experience” meets their need. They will model their customer service policies
         and processes after those of South-West Industries, a known leader in the area of
         customer service.


Market Trends

The market trend for online purchases is steadily increasing. This trend is a result of
several factors:
         The “store” never closes. Customers can log on and shop any time of day, 7 days per
          week.

         Customers do not have to travel, saving time and money on expenses such as gas and
          parking.

         More choices.

         Competitive prices

Information based on results of recent Nielsen survey of US shoppers

Market Growth

During the 2009 holiday season consumers spent 29 billion dollars through on-line
purchase. The dollars spent in the US during 2010 was expected to reach 205 million as
online spending in other countries was also growing at a rapid pace. As the younger
generation enters as the newest consumers; they have done their share to increase on-line
sales. They have significant discretionary income of their own to spend. Online shopping
is second nature to this group and by doing so they have influenced household purchases
significantly. Mobile online shopping has experienced rapid growth. According to one
researching firm; ABI Researcher, believes that mobile online shopping in the US will
double again during the year 2011.

*Leaders in the online retail community include:
    Amazon
    E-Bay
    Toys R Us
*North america B2C E-Commerce Report 2010
ABI Research


Evaluation and Controls
The following areas will be monitored and action plans will be developed to address challenges
as they are identified:

         Revenue: Monthly and Annual

         Expenses: Monthly and Annual

         Repeat (or lack of) customers


         Customer satisfaction


Implementation


We will employ several different approaches to launch our marketing program. We will focus on 5
programs; each allocated with an annual budget for which the manager of the program is ultimately
responsible for meeting.




Type of Program                 Start Date   End Date   Budget    Manager


Advertising Budget
(includes print ads, t.v. and    6/1/2011 5/31/2012     $50,000      Trina
radio)


PR Budget (incentives and
                                 6/1/2011 5/31/2012      $5,000   Elizabeth
customer service)


Direct Marketing Budget
(communication via letter or     6/1/2011 5/31/2012     $25,000    Gissette
email to a targeted audience)


Web Development Budget
(look and feel of the            6/1/2011 5/31/2012      $1,500      Mary
website)


Social Media Budget              6/1/2011 5/31/2012       $500       Mary
(communication via
facebook twitter etc.)




Contingency Planning



Difficulties and Risks

           Aggressive competition from the already established competitors with enhanced resources
            providing opportunities that would prove to be difficult for a start-up.
           Software/hardware issues providing challenges to the consumer when placing and order
            and to the Registry when processing the order.
           The perception of hidden costs as a result purchasing from a third party; essentially paying
            more for the product.
           Problems with vendors; creating fulfillment issues
           Challenges generating a brand that distinguishes Lifetime Gift Registry from the
            competitors
           Entering the market with a smaller number of vendors creating a challenge of meeting the
            vast number of consumer preferences as compared to the established competitor.
           Failure to meet projected sales therefore decreasing cash flow

.

        Worst Case Risks Include

                     Determining that the business cannot support itself on an ongoing basis
                     Problems securing loans as needed
                     Having to liquidate equipment to cover liabilities – I believe some of our
                      equipment could be expensive and similar to other organization whom
                      might liquidate inventory, I think this could be a real possibility…your
                      thoughts?
                     Losing the initial investment of the owners
                     Dealing with the financial, business, and personal implications of failure




Market Product Focus

Marketing Objectives




             Review and analyze the words used on and/or related to our web-site to ensure that we are talking
              the same language as our target audience. For example, if our customers use the term handbag and
         we use the word purse then it is unlikely they will find what they are looking for when conducting
         a search.




        Ensure presence and positive status on the Web. Create profiles and review the feedback. Identify
         what we are doing well, document and celebrate these actions. Identify the actions that fail to meet
         the customer’s expectations; develop and implement action plans designed to rectify situations
         that lead to negative feedback.

        Create links to alternative pages within the site which communicate in languages other than
         English to address the traditional language barrier and differentiate our services




        Build upon current site or create an alternative site designed to meet the needs of the mobile
         customer. Ensure accessibility, and easy navigation on all smart/mobile devices.




        Define our social media strategy. Create a plan to meet established goals to increase mailing list,
         site traffic (clicks), sales and customers. For example: obtain a web domain name, purchase
         Google advertising and increase visability on social media sites such as Facebook and Twitter




Target Markets

Our initial target market will consist of consumers for whom the internet is an integral part of their life.
According to researcher at Discover Digital Life the following describes this consumer:




        In the online world, they can better express feelings.
        Life without the internet would be a lot less fun.
        Internet allows freedom of expression that they do not have in the offline world.
        Internet enables belonging and acceptance
        Internet allows them to stand out and be different.




 **A sub-set of our target market is the mobile user. Analysts believe that based on the most recent growth
of mobile users from 2009 to 2010; mobile phones will actually take the place of PCs and become the most
common device used to access the web.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:10
posted:10/21/2011
language:English
pages:7