Gippaland E-Market Strategies - Essay Example

? Gippaland E-Market Strategic Plan EXECUTIVE SUMMARY GPS is a company that is engaged in offering products and services in the hospitality and the healthcare industry. It provides hygiene products that are used in hospitals such as disinfectants, napkins, toilet papers and tissues. It also provides disposable equipment, cleaning equipment, utensils, cooking equipment used by tourists in restaurants and cafes. It also provides standard wrapping materials such as bags, tapes and papers. It recently thought of moving to an online platform in order to boost its presence in the market. A survey done showed that its customers are mainly tourists and people in aged care and in hospitals. The target market is therefore the hospitality and the healthcare industry for both online and offline customers. There are few competitors that exist in the market and this is because GPS acquired the main competitor in the market. A market analysis revealed that the products are of basic importance and therefore there are no cultural beliefs attached to them. The political environment is also supportive and therefore it will be easy to run the online platform. GPS is strong as it is able to provide most of the goods required by the market. They also have a variety of products to suit different markets. The have also taken a customer based approach where they deal face to face with customers in order to win their trust. The threats identified were the developed companies around that posed the biggest challenge. The goal for online marketing is to grow its numbers, to provide support to customers and provide a platform where it will be easy to interact with customers and products. A few strategies were developed to achieve this which include: targeting different groups of online customers, building credibility through quality goods and testimonials, providing quality goods at a considerable price, offering after sale services, having a single website and generating traffic to it, providing updated information through blogs and press releases and retaining customers through offering them free delivery and free maintenance of their equipment. The key performance indicators include monitoring the number of people who visit the website on a daily basis, monitoring revenues generated by each product or service and documenting customer ratings of products and services to find out which is the most liked. This online platform is seen to work if all the parameters discussed will be put in place and the governing boards ready to implement the plan. Apart from a few technical areas, the rest should be able to work and meet the company’s target objectives. TABLE OF CONTENTS EXECUTIVE SUMMARY 2 TABLE OF CONTENTS 4 1.0SITUATION ANALYSIS 6 1.1Our customers 6 1.2Our market 7 1.3Our competitors 7 1.4Intermediary and potential customers 8 1.5Wider macro environment 9 1.6Our own capabilities 10 2.0Internet specific SWOT summary 10 3.0GOALS SETTING 11 4.0STRATEGY 11 4.1Targeting 11 4.2Positioning 12 4.3Proposition and the marketing mix 12 4.4Brand strategy 12 4.5Online presentation and presence 13 4.6Content and engagement strategy 13 4.7Acquisition and communication strategy 13 4.8Conversion strategy 13 4.9Retention and communication strategy 14 4.10Data strategy 14 4.11Multichannel integration strategy 14 5.0TACTICS, ACTION AND CONTROL 14 5.1Tactics and action 14 5.2Control 15 5.3Governance 16 REFERENCES 17 1.0 SITUATION ANALYSIS 1.1 Our customers Gippaland packaging supplies has a variety of customers due to its broad range of products as explained in the introductory part. They supply products to small and midsized companies that include cafes, restaurants and take away shops located in the Gippaland region. Gippaland region is a tourist hub and therefore these services are of paramount importance. Other customers include hospitals that require products such as napkins, tissues and toilet papers, aged care and guest houses. All of them are customers who are held with high esteem by providing quality products to them (GPS, n.d.). The above mentioned customers have various characteristics, needs and wants and therefore it is the duty of the company to ensure all of their needs are met with precision. A look at the food and tourism industry will bring to focus a number of characteristics. It is a group that needs timely delivery of high quality products; they also want their customers to be served in a clean environment. These people are most of the time on the move and would require disposable equipment. That is why Gippaland packaging supplies came up with disposable products that suit this category. A look at the healthcare industry that comprise of the hospitals and aged care, they have a distinct characteristic in that they require urgent, high quality hygiene products that will not cause infections. It is difficult to deal with such customers as their needs keep on changing but Gippaland packaging supplies has designed cleaning equipment, napkins, tissues and toilet papers that can be used for such a category of people. On the other hand their needs will be met with the disposable equipment that they also provide. The most important customers for the company are the cafes, takeaway shops and restaurants. These are more profitable as the entire Gippaland is a tourist destination and therefore they need a huge supply of the company’s products. The remaining group is also of great importance. 1.2 Our market Gippaland Packaging Supplies works in a dynamic environment with the market for our products changing every now and then. The target market fall in the hospitality and the healthcare industry have needs that keep on changing depending on a number of factors. It is therefore important to align the company’s goals to the market trends. GPS products serve people of various age groups and are not limited to a specific age. They also come in different amounts to serve the large companies and the smaller shops that include the cafes and the restaurants. In the hospitality industry, their needs match mostly with the products we offer because the company was set up to offer products they mostly use. For the healthcare industry, it is a big task to satisfy most of their needs but the company has tried to offer essential hygiene products for this group (GPS, n.d.). The latest trend in both industries is a move towards online transactions as opposed to the traditional methods. These online transactions help companies in saving time. It is easier for them to make orders that can be delivered to them immediately after purchase. Moving to online transactions will help a great deal in meeting the needs of our target market. 1.3 Our competitors GPS had only one competitor in the entire Gippaland at the time it began its operations. The company was able to take over the competitor from the market and therefore remains the dominant player in the industry. At the moment there are several competitors that the company is facing necessitating the need for online marketing. Such companies are found in outer Melbourne, Dandenong and other larger Gippaland towns. The winning strategy that has always placed GPS ahead of its competitors is their strong customer service approach. This strategy has been used to win customers to their side as face-to-face approach brings the service closer to the customer. This enables the two to build a relationship that is essential for future business transactions (GPS, n.d.). Our competitors mostly stock products for a single industry. They majorly stock products for use by the tourists who form a large percentage of the customers in the area. This is different for the case of GPS as they stock a wide range of products for hospitals and the hospitality industry. A look at the prices will reveal that our competitors charge a high amount as they serve a specific market. For GPS the price is reasonable and matches the quality of the products sold (GPS, n.d.). The prices are low because it employs the market leader strategy. It is able to sell many products at a lower cost but at the same time generating profits. A look at their distribution channels reveals that they are still trying to come up with ways in which they can reach the mass market especially areas outside Gippaland. For GPS it has already ventured in those areas as it serves a variety of customers some who are located outside Bainsdale. Promotional activities are not so intense because of their limited markets. They have a small population of tourists to serve and therefore it is easy to reach them. For GPS the market is broad and therefore a variety of promotional channels are required to achieve their goals (GPS, n.d.). 1.4 Intermediary and potential customers Most people around Gippaland rely on adverts in the mainstream media especially the newspapers and magazines. Few of them watch Television as they are engaged most of the time in business. The customers use the internet to search for specific services they want. For example the aged care group will most of the time rely on search engines to look for essential services. The hospitals also use search engines when looking for services like the ones the company offers. From the above information we can conclude that an online platform will do a great good to the company as many people search for these products online. The mass media will be used to increase awareness of the kind of products the company offers (Haegele, 2001). 1.5 Wider macro environment A closer look at the big picture reveals so many things that the company can take advantage of in order to increase its presence in the region and boost its sales. The customer’s varied social backgrounds have made it easy for the company to sale its products. They have embraced the products and they have become part of their daily lives. These products are of basic importance and therefore no cultural beliefs are associated with them. The country in general supports online marketing activities and this means there will be no legal issues as a result of the move. The general business environment is favorable as the business relies mostly on the tourists who are the majority in the area. Another thing is that the process is ethical and can be sustained for a long time with an appropriate budget to cater for the marketing section. The political situation is favorable as the country is politically stable and therefore online marketing activities can go on without a hitch. Gippaland is endowed with the latest technology with most of the cafes, restaurants and hospitals connected to the internet. This is a good indicator as it will enhance the online marketing activities. Another aspect is that most of the people in this area are computer literate and therefore understand the basic aspects of online transactions (Kleindl, 2001). 1.6 Our own capabilities GPS is capable of moving to the online platform. There are a number of strength factors that have continuously made it possible for the company to remain at the top. These include good warehousing where there is constant supply of stock to meet customer needs. The second thing is that the staff is experienced in making sure the customers get the best services (GPS, n.d.). They deal with customers face to face and therefore understand their immediate needs. Third the company has also a broad range of products which enable it to serve different customers. It is of paramount importance that when a company moves to the online platform it must have the capability to serve the increased number of customers it will get. The customers are of varied needs and therefore having a variety of products is very important (Haegele, 2001). 2.0 Internet specific SWOT summary The company in its own analysis found that its strengths lie in its ability to serve a wide market and also the fact that they have enough stock to serve most of the customers. There is a potential in the market that has not yet been exploited and those are people who stay in areas surrounding Gippaland. Having an online platform will make it easier to reach this group. The weakness is in terms of technology and distribution channels that have not been fully put in place. The company is still growing making it difficult to handle cast online transactions. Opportunities arise from the many customers the company serves which are yet to be fully exploited. Threats lie in the growing day to day competition from well established companies that have already moved to online platforms that will make it hard for GPS (Chaffey & Smith, 2008). 3.0 GOALS SETTING The primary goal of online marketing is to reach a large audience or market at a minimal cost. GPS has not fully exploited its market in terms of reach. Its primary aim is to reach a wider market and increase its customer base and its range of products. This can be done easily with the electronic marketing as the cost that will be incurred is less as compared to the traditional methods of marketing. The second aim is to increase profits and this will come as a result of the increased market reach (Kleindl, 2001). The third goal is to improve service delivery and customer interaction with their products. The online marketing approach will help with this as customers will be able to interact in real time with the support staff. Lastly another goal is to create awareness about the products and services offered by GPS. The company aims at reaching hospitals and other areas that have not been exploited fully. If this is implemented it will make it easier to reach such markets. The return on investment is worth it because at the very end GPS will reap well from it as a result of the increased market size and the growing number of customers (Haegele, 2001). 4.0 STRATEGY 4.1 Targeting GPS offline and online customers are not different. This makes it easier to design content for them as they will consume the same message. There is no big difference in demographics and therefore it will be quite easy to reach them. The tourists will get the same content same as the offline ones. The hospitals and the aged care will also have the same kind of content (Strauss, et al., 2005). 4.2 Positioning GPS though a small company has a good reputation and therefore credibility of their products is not a big issue. It can still be proved through personal testimonies that will be available on the site. The company value proposition is to provide quality goods and services. This will be seen from the sample products that will be available on the website (Strauss, et al., 2005). 4.3 Proposition and the marketing mix GPS products and services are of high quality, to offer added value the company will offer after sale services like free delivery and maintenance of equipment. The prices of these products will also be considerable, slightly lower than our competitors so as to win more customers. The online distribution channels that will be employed will include social networking sites, social bookmarks, social media, blogs, browser extensions and search engines (QuickMBA, 2010). The challenges with these channels include loss of revenue and loss of communication control but these are less compared to the advantages. The products will be promoted through online forums that will include links to the products. The company will also partner with other established companies that offers services or products that go hand in hand with what GPS offers (Albee, 2010). 4.4 Brand strategy To ensure that the company gains brand credibility, it will offer after sale services, provide quality goods. Each customer will be required to give their feedback on what they think about the product. This will be in the feedback section of the products where customers will rate the services offered to them (QuickMBA, 2010; Kleindl, 2001)). 4.5 Online presentation and presence GPS will have a single website that will be updated on a regular basis so that customers are up to date with the company’s products. Many subdomains increase the cost of maintaining them and therefore a single website will do. The site goals are to create awareness about GPS products and to offer customers a platform to seek information and receive feedback on products that they buy (support). They will be achieved through the promotions that the company will be engaged in (Kleindl, 2001). 4.6 Content and engagement strategy The initial content that the company will feature on the website is images of the people using the products. People will be allowed to like the picture or to comment on them. There will be blogs that will provide up to date information where customers can comment on the articles posted (Gay, Charlesworth & Rita, 2007). 4.7 Acquisition and communication strategy There are various ways in which we will attract traffic to the site. This will through paid up advertisements on Google. It will also be possible through links that will be placed in many social networking sites. The PR section will also come up press releases about the products and this will be posted on the website and links will also be available on other affiliate sites (Gay, Charlesworth & Rita, 2007). 4.8 Conversion strategy The website design will be very simple such that anyone is able to use it. It will also include a help section where customers will receive real-time help to information they are searching about a product and where they can find it. Simple terms will also be used when filling forms to enable people easily order for products (QuickMBA, 2010). 4.9 Retention and communication strategy In order to retain customers the company will offer seasonal promotions where it will give free products to people who purchase a certain product. The company will also recognize all the customers who purchase products from its stores and give them free products (Meyerson, & Scarborough, 2007). 4.10 Data strategy To get information from customers, the website will have a place where customers sign in as members. The information that appears on the website will also be updated to make sure they comply with customers comments on products and services offered (Gay, Charlesworth & Rita, 2007). 4.11 Multichannel integration strategy The company will ensure both traditional and online marketing methods are used in order to promote products. All information that will appear on the billboards and other mass media advertisements will contain links to the website. Most content will be similar to provide accuracy and consistency (Strauss, et al., 2005). 5.0 TACTICS, ACTION AND CONTROL 5.1 Tactics and action For each of the strategies mentioned above they will be implemented on a seasonal basis of between three to six months. Our customers will receive updates each and every day so that they are up to date with the activities of the company. This will make it easy for the company to get new members and more customers in order to meet the objective of growing the number of customers. On the other hand the company will continue offering quality products in order to receive positive comments from the customers through testimonials. This will be in line with the company’s objective of reaching to the customer and being the preferred company (Strauss, et al., 2005). The company’s will continue to offer added value to their customers through free delivery and maintenance of equipment. It will also sell goods at a considerable price to attract more customers. The company will generate traffic to the website through links and online advertisements that will be placed on search engines such as Google. The brand credibility will be maintained through customer feedbacks and comments on the products. This will ensure that the company continues to offer the best products in line with the objectives of the company. The company will use its single website to sell products, offer support, provide updated information on the products and solicit feedback from the customers. Testimonials will be availed so that customers get to know about other people views on the products. They will be engaged in rating the products and commenting on press releases that will be on the blog and the website. The company’s website will be very simple in order to make the customers experience easy and so that they can feel motivated to come back. They will be offered free products on registration and purchase of a given value of products. This will keep them motivated so that they will tell others to come and use the products. After they receive testimonies about the product the company will take their details through registration so that they can continue benefiting from the company (Owen & Humphrey, 2011). 5.2 Control The company will have a separate space on the website that will show the number of daily visits on the website. This will make it easier to know if the website did attract traffic or not. The company will continuously check the comments posted about products and record both positive and negative feedbacks so that it can improve on the products mentioned. It will also consider the product ratings and see which product is on demand and which needs improvement so that slight changes can be made to suit the customer’s needs. The company will also keep a record of revenues from each product and this will be a key performance indicator for products (Gay, Charlesworth & Rita, 2007). 5.3 Governance The company already has a dedicated team that can work on the online platform. A few people will be required to keep the website up to date. They will also provide support to customers who may require information about a given product. The entire online marketing board will be integrated with the offline board so that the information is consistent and that anyone can offer support where it is lacking (Meyerson & Scarborough, 2007). REFERENCES Albee Ardath (2010) E-Marketing Strategies for the Complex Sale. McGraw Hill Professional. New York. USA Chaffey Dave, & Smith Paul Russell (2008) eMarketing eXcellence: planning and optimizing your digital marketing. Elsevier Science. Maryland. USA. 3rd Ed Gay Richard, Charlesworth Alan, & Rita Esen (2007). Online marketing: a customer-led approach. Oxford University Press. New York. GPS (n.d.) More About Us. Retrieved 9 1, 2011, from http://glpackagingsupplies.weebly.com/more-about-us.html Haegele Katie (2001) E-Advertising and E-Marketing: Online Opportunities. The Rosen Publishing Group, Inc. New York. 1st Ed Kleindl Brad Alan (2001) E-marketing: capitalizing on technology. Thompson Learning. London UK Meyerson Mitch, & Scarborough Mary Eule (2007). Mastering Online Marketing. Entrepreneur press. Newburgh, NY Owen Robert & Humphrey Patricia (2011). The structure of online marketing communication channels. Journal of Management and Marketing Research. Retrieved 9 1, 2011, from http://www.aabri.com/manuscripts/09135.pdf QuickMBA (2010) The Marketing Mix. Retrieved 9 1, 2011, from http://www.quickmba.com/marketing/mix/ Strauss Judy, Ansary Adel I., El-Ansary Adel, & Frost Raymond (2005). E-marketing. Pearson/prentice hall. New York. Read More