Small Business Management: ClippyKit - Assignment Example

?Small Business Management Answer Clippy Kit came into existence when its founder, a young lady called Calypso Rose, realized that her see-through personalized bags could grab public attention and generate good profit for her. Calypso left her television job and ventured her time for her new entrepreneurship. She borrowed ?2,000 from her parents for manufacturing 250 bags, which she sold off within a span of three weeks. However, in order to promote further and make ClippyKit a renowned, the assistance of media was important. In case of both small start-up businesses and big organizations or companies, media holds an important position because it because the face for the company. Similarly, Clippy was a small venture, so utilizing media, which is effective yet cost effective was the motto of the owner. This is what exactly what Calypso Rose did. She utilized the power of social media channels and online marketing for not only advertising her products but selling them too. Clippy generate majority of its sales through its website or e-store (Clippykit Ltd., 2013). The website of the store has been built on Web 2.0 platform, which is quite interactive and allows the customers to browse through different products that the company is offering. The website gives a casual feel to the customers, so that customers can not only shop online, but also express their feedback through blogs, read about the owner’s journey to set up Clippy and know about the products that are offering available on discount (IOWA State University, 2013). Apart from this, Clippy has utilised Facebook, Instagram, Pinterest, twitter and other social media channels to inspire people to customise their own Clippy bags and get to use personalised products (Clippykit Ltd., 2013). The traditional media was all about delivering message to the customers, which were accomplished through radio, print or television. However, traditional media marketing was one-sided communication. If ClippyKit availed the traditional media vehicles, then it would have to spare extra funds for promotion of its products. Moreover, knowing the customers’ demand and their feedback regarding different products would not be known because the communication would be one-way. However, ClippyKit has utilised Facebook, Instagram to post the photos of its products, welcome other’s designs and interact with customers. This has assisted ClippyKit to venture into the sales of other products such as, Christmas cakes, gifts, accessories, school stuffs for kids, etc apart from see through bags (Hirschkorn, 2009). After analysing Clippy’s experience of utilising new media for its promotion, the focus of this essay would shift towards discussing whether the media strategies used by ClippyKit is typically what small businesses utilise or was it different from that. The suggestion that every marketing consulting firm have to offer for the rising entrepreneurs and small businesses is that the most cost effective way to promote their business, increase profitability and gather customers’ feedback is social media channels. The new media is the ultimate channel, which utilised by not only small businesses, but bigger companies too. For a small business firm, it is difficult to bring out a handsome sum of fund for extensive promotion in audio visual or print media. They see social media to be the most cost effective mode of promotion. Secondly, the reach of social media and other web-based media channel is higher to the customers nowadays, than even print or audio video media, so it is typically the first choice for almost every start-up business firms irrespective of country (Hirschkorn, 2009). The entrepreneurs can simply click the picture of their products themselves and post it on Facebook or other social media channel for branding. Posting photos on social media sites makes it easier for customers to know about the products and the process of sales becomes a lot easier. This is one of the key reasons behind the success of small start-up firms. The major function of media is to promote communication between seller and buyer. However, the traditional media channels were successful in this function to just a certain extent because the loop of communication remain incomplete. With the advent of Web 2.0 platform, media channels have become interactive and the communication between the buyers and sellers take place on real-time basis. Social media is advantageous to the small businesses because they follower customised services to different entrepreneurs. The business owners of personalised products like accessories, etc such as ClippyKit would prefer to promote the products through Instagram, Facebook or Pinterest over Twitter or LinkedIn because the chosen social media channels support uploading pictures and are visited by customers belonging to any age group, while LinkedIn or Twitter are more professional, so promoting service or professional assistance through them would be useful (Wight, 2013). However, the basic versions of all these media channels are absolutely free, but if they want to avail the advanced promotional settings or tools, then they will have to purchase it. Though the express attached to social media is lesser than advertising through print or audio visual media (Hirschkorn, 2009). It can be concluded that through the above discussion that the new media availed by ClippyKit is the typical method followed by almost every small start-up business firm. ClippyKit utilised the Web 2.0 platform to set their own website for sales and in order to promote their product, they used social media. The result was that Calypso Rose received the London Young Business Person of the Year award at an age of 22 years. Answer 3 It is important to discuss the start-up, establishment and development of ClippyKit, so as to analyse the present status of the company and its future plans. In this process, the framework and standard concepts of developing small businesses would be also evaluated, so that the line of growth of ClippyKit can be traced and opportunities or threat can be identified. The business model canvas of any start-up firm has certain elements to consider such as, the key activities, target customers, key partners, costs, channels, revenue, value proposition and customer relationship management. In case of small businesses, the core product or service plays a major role because the business revolves around sales of products or services. However, in order to manufacture products or offer services, a start-up capital is required, which is either borrowed from banks as loans or received through family or friends. As in case of ClippyKit, the owner received a financial help of ?2000 from her parents. Managing production cost is not all, but it all includes recruitment cost and cost with regards to suppliers and procurement of other resources (Hirschkorn, 2009). Apart from this, the customers also have an important position in small businesses because the owners do not have excess fund to spend on promotion, so they cost effective yet all pervasive media vehicles to get closer to their customers. Personal attention is paid to customer feedback because small start-up firms cannot afford to lose customers. Apart from the above business model canvas, another framework is followed by start-up firms called the lean canvas, which again have similar element as the previous model such as cost structure, key metrics, customer segments, revenue streams, channels, existing alternatives, unique selling proposition, competitive business environment. If the case of ClippyKit is considered in this case, then it can be identified that Calypso Rose also followed similar framework for starting the business. ClippyKit was product centric (Sandison, 2007). The owner made a see-through plastic bag on her kitchen counter to display her Polaroid photographs collection. This attracted people and they stopped her and asked regarding the bag, which she thought to be good enough for a new business proposition. The product was decided, so she could produce 250 bags by availing funds from her parents, which was the start-up capital for her business. The business was set up in her London home and her mother supported her in supervising the business operations. So Calypso Rose could incorporate the lean canvas in this case by cutting down cost. Moreover, she utilised her company website to generate most of the revenue. This saved her cost of establishment. Since her family members were actively involved in the supervision on the business functions, so she had to recruit two full-time and one part-time employee (Suyeoka, 2013). The small business firms generally fail because of various reasons, firstly, due to lack of funds to expand, proper resource and business management skill and deep insight regarding the industry and expansion. There is extensive competition in the small business segment and wining customers’ trust in relation to product quality and service is difficult. In this segment, Clippy has achieved success because firstly, the Clippy could engage 250 independent boutiques to sell their products (Kennedy, 2013). Many well known brands such as John Lewis, Harrods and Selfridges were also selling Clippy bags in their major outlets. The owner of Clippy had a vision which is very important before starting any venture. The small business owners usually have the mission to sell products or services and earn profit, but this gives the entrepreneur a limited view of the business area. Calypso Rose’s vision was to create a brand than just manufacture simple plastic bags. Sales were not the solo motto of the owner of Clippy. She organised promotional events with school children, in which they personalised the ClippyKit bags according to their own needs. Various eminent business analysts have suggested different proposition to the small business or start-up entrepreneurs. The core success strategy for small business owners would be to differentiate their company and its products from the rest. This will not only assist them to avoid undue pressure of competition but attract customers’ attention. There is no place for mediocrity in the present global market, so when customers walk inside the stores, they should have such a shopping experience that they go out convey this to their friend, relatives or peer groups. This is where Clippy has been able to excel. Clippy could successful bring its customers closer by posting their product pictures on social media sites and on their own websites, launching events in schools and promoting their unique selling proposition, that is producing personalised products. It can be conclusion from the above discussion that ClippyKit was became successful because it not only followed the pre-determined framework for setting up the business, but they were effectively overcame the barriers which most of the start-up firms fail to identify and become unsuccessful. ClippyKit has a long way to go because the company has been able to gain recognition among few good brands and the owner has been able to bag the award of London Young Business Person of the Year award at a very juvenile age, which ensures that the owner of the company id far sighted to expand the company further (Clippykit Ltd., 2013; Sandison, 2007). Reference List Clippykit Ltd., 2013. About Clippy. [online] Available at: < http://www.clippykitlondon.co.uk/about> [Accessed 13 November 2013]. Hirschkorn, J., 2009. Clippykit Goes From Bags to Riches. [online] The Telegraph. Available at: < http://www.telegraph.co.uk/finance/yourbusiness/startingout/4386199/Clippykit-goes-from-bags-to-riches.html> [Accessed 13 November 2013]. IOWA State University, 2013. What Does 'New Media' Mean? [online] Available at: < http://newmedia.engl.iastate.edu/about/what_is_new_media> [Accessed 13 November 2013]. Kennedy, E., 2013. Advice for Small Business Owners Trying to Compete Against Big Box Retailers. [online] Available at: < http://www.newsadvance.com/news/local/article_190357d0-4b4f-11e3-aa64-001a4bcf6878.html> [Accessed 13 November 2013]. Sandison, N., 2007. Calypso Rose Wins BPMA's Entrepreneur of the Year Award. [online] Available at: < http://www.brandrepublic.com/news/774134/Calypso-Rose-wins-BPMAs-entrepreneur-year-award/> [Accessed 13 November 2013]. Suyeoka, B., 2013. 7 Tips for Small Business Owners Looking to Jump into Social Media. . [online] Available at: < http://www.huffingtonpost.com/brandon-suyeoka/7-tips-for-small-business_b_4139791.html> [Accessed 13 November 2013]. Wight, E., 2013. Small Business Tips: How to Use Social Media to Boost Business. [online] Available at: < http://www.theguardian.com/small-business-network/2013/aug/29/social-media-boost-business-tips> [Accessed 13 November 2013]. Read More