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New Business Proposal - Essay Example

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Company: ASOS Introduction: Increasing awareness of the harmful implications of several of the products that we use in our daily lives has grown the concern for our environment over the past few years. With this increasing awareness, there has also been a dawn of realization that exploitation of the balance of nature is likely to result in dire consequences for mankind and hence, people are now more driven towards environmental concern (Eccleston, 2007)…
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New Business Proposal
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"New Business Proposal"

Download file to see previous pages kit, 2011). The product is targeted towardsa customer base that has concern for the environment, and wants to contribute to its wellbeing by reducing their eco/foot print impact etc. The product is also expected to do well in the market because of its uniqueness and the fact that no online retailer has done this before. The detailed marketing strategy of the product has been discussed as follows: Product Strategy: The reusable and recycled bags are to be made of both recycled cotton and plastic materials. The brand awareness of ASOS will be relied upon as one of the key competitive advantages. Along with that, the good relationships of the ASOS brand with the suppliers and the high purchasing power that it has will also serve as a plus for the awareness and promotion of these bags. Another key aspect that would greatly benefit the product would be that of first mover advantage as up till now no online retailer has come up with this sort of idea. The bags will be made available to the markets of the UK and Ireland only. These bags would be large in size so as to serve for accommodating things for multiple purposes (posting, usage etc.) and they would have the ASOS logo on them. A specific percentage of the revenues generated would be granted to charities so as to better create an impact in terms of working towards the collective good of people and the overall society. The product is to be similar to Anya Hindermarch’s ‘I am not a plastic bag’ concept that encouraged people not to use plastic bags (Winterman, 2007) with a number of customized touches added to it. These would include a more stylish outlook, larger size that is to add to its value in terms of convenience, and finally, because of its outlook and size, these bags would be multipurpose serving the purposes of both shopping and delivering. The bag would also have specific customer number ID on it which would allow bag tracking/identification. The bag would be designed as such that it would ensure maximum protection of the clothes etc. placed in it. The bags would say, “Yes I shop at ASOS because I carry their delivery envelope shopping bag”. Once, the product has established itself in the market, the producers can even go on to offer a variety in the colours and styles being offered and can eventually go on to offer customization options as well to grab all the more market share. Pricing: The pricing strategy has been decided to be cost based pricing in which the price is set in accordance to the production costs inculcating costs of goods and fixed assets plus a specific amount of profit margin (Allen, 2012). On that note, the price of the bags has been estimated to be in the bracket of about ?2.00 or 2.50 as a certain percentage of the revenues would also be going to some welfare cause or charity and hence that would also be kept under consideration while setting the final price. Place: The bag would be produced and supplied by a supplier with the design accustomed to ASOS brand. Special trainings would be given to the logistics team in terms of identifying the bag, instructions on usage of the bag, dealing with lost or damaged bags (small charge, goodwill replacements) and in terms of teaching customers on how, why and where to use the bags. Promotion: The ...Download file to see next pagesRead More
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