E-Business Essay on specific company nergy Drink Company

E-business Analysis for my Energy Drink Company
Web Development and Online Marketing Tactics
Ismail A Young
E-Business
Mentor: Lucille Getz
6 October 2012
Revision 2
Table of Contents
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Introduction 2
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A1: Market Viability  PAGEREF _Toc296209542 \h
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A2: Current Online Competitor Assessment  PAGEREF _Toc296209544 \h
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A3: Marketing Strategy & Suggestion 5
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A4: Search Engine Optimization: Consideration & Strategy 7
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A5: Social Media Integration 8
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A6: Online CRM 9
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A7: E-commerce Solutions 10
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A8: International Considerations 11
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A9: Projected Web Development & Maintenance Costs 11
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B: Website Index  PAGEREF _Toc296209555 \h
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C: Website Design 13
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D. Reference: 16

Introduction

This is an online business proposal for Young’s Energy Drink Company. This Natural Energy Drink Company is a web based company that sells healthy nutritious energy beverages without all the dangerous additives of our competitors. Our company caters to all ages with different levels of caffeine to be compatible to the different stages of life. In this online proposal, I will outline: the company’s mission, goals, objectives, competition, marketing strategies, and projected website development.
A1. Viability of the Product
The beverage product is viable for the Company online because it gives our Company a wide array of customers to interact with in the process. Our product is viable online because of three main reasons. First, with the advent of the internet everything is now available online. Companies are finding it necessary to come up with websites to allow their clients to interact with Companies that offer goods and services. Secondly, our target market is comprised of the youth who are tech savvy; therefore, having an online presence is not an option. In fact, people find out information about a certain product in the internet by use of search engines. Therefore, by availing our new energy product would not only make our product available but also offer information about our Company’s product. This would be the easiest way to reach out to large numbers of people from all lifestyles. Finally, having information about a product is not enough and, in our present day, world people value convenience. As such, the online option for our new beverage product is a viable option because people can acquire the Company’s product from the comfort of their couches or business premises.
As opposed to other modes of distribution, which use vendors and other intermediaries our Company aims at eliminating additional distribution costs by supplying our new beverage to our consumers. Just like shopping online, I believe it is about time people get their beverages on line. It is just the same concepts because people have their food delivered at their doorstep, and get online shopping items delivered at their doorsteps (Taylor & Alyse, 2000). The good thing about our online strategy is that we plan to eliminate the cost spent on shipping by utilizing the economies of scale. The economies of scale should help the company reduce its cost of shipping. Our shipping policy would allow our customers to purchase their beverages on bulk, which would in turn earn them a discount. In an effort to encourage that customers buy beverages online, the Company will offer free shipping for a certain bulk of beverages (Taylor & Alyse D, 2000). The Company is tentatively thinking of setting the number at 100 cans or bottles where, for every 100 containers bought, free shipping will be done. However, this number may change depending on how the new product fairs in the market.
As a penetration marketing strategy, the Company goal is to introduce the new product into the market; therefore, the Company will incur many costs before the product establishes its position in the market. Hence, an online environment would be a viable option because it would serve two purposes. First, it would inform consumers of a new product and secondly, the customers would be able to experience the product without incurring any additional costs. The Company website will have all the relevant information about our new product. This can go as far as the composition of the drinks, the caffeine levels and the origin of the idea behind the different varieties or taste. The customers will also have an avenue to look at the different assortment of products offered by the Company at the click of a button. In other words, the beverages would be conveniently available to customers at the touch of a button (Lorraine, 2006). In addition to product availability, the Company will be able to get feedback on their product within the shortest time possible. In case of any queries, the Company can address the customers’ issues without any delay.
A2. Current online competitor online assessment
As far as our competitors are concerned, the Company has two competitors who conduct their business online as far as the energy drinks are concerned. One of the Companies offers a variety of products, which makes the market highly competitive. However, the other Company only has one product line of energy drinks offered online. In addition, the Companies have been around for a while and have a huge fun base. Both Companies online presence is mostly for offering information to their customers. The Company’s websites also had a social media interaction page where consumers would air out their voices about the Company’s products. It was observed that the Companies had an online presence for the sake of logistics. This was because the Company wanted to have a way of communicating with their vendors and distributors, in addition to tracking the products. However, unlike our competitors our Company has a different online strategy that gives us an edge (Taylor & Alyse D, 2000). Our competitors web presence is only limited to offering information on their products. The two companies’ web presence does not facilitate the direct purchase of energy drink from their website and this by far their weakest point. However, our competitors have a huge following, which is their major strength, and this may pose a challenge for our new website. One of the competitors also offers a large variety of product and this may be an uphill task as we try to solidify the Company’s online presence. As far as the marketing strategy is concerned, the Company’s website has an edge over our competitors. This is because the Company deals with the end users specifically and does away with the intermediaries. This will help the Company have a connection with the customers due to frequent interactions.
Our competitors sell their products in bulk, and they usually sell them to retail stores. Our online campaign focuses on the end user whereby the goods are delivered at the customers’ doorsteps. However, in order to qualify for such a delivery, the consumer has to purchase our beverage products in bulk. In order to be relevant in our beverage product, we have to stick to our goal, which is to provide quality beverages for people of all age groups. According to the online assessment, there are many companies in the online market but our product is unique because it offers the same product to different age groups (Michael, 2002). The Company wanted to offer a custom-made product for people of all ages. In addition, our online presence is interactive because it allows our customers to custom make their energy drink packaging. This gives the customer’s time to express themselves, and it also gives the Company a feel on what and how people of different ages prefer to package their drinks. Our main challenge in our Company’s online presence is that our Company is new in the market and has yet to get a fun base of loyal customers. Secondly, our Company is offering a limited variety of options to our customers to start with.
Our company stands out because it offers the most basic needs humans require all at the click of a mouse. Our online interaction with our customers is user friendly as one only needs to click on an item for it to be taken to the shopping cart (Michael, 2002). When compared to our beverage competitors their Companies had information on the product but the customers could not purchase the items online. Our Company is relevant in the business environment because it allows the customer to shop and acquire the items. It is our commitment to bridge the gap between consumers and the Company, which is the most important element in our business. This difference makes us stand apart from our competitors, and our goal is to target all households in the country.
A3. Online marketing suggestions and strategies
Our online marketing strategy is simple, but it has far-reaching implications. Our Company website deals with a basic need. According to the studies carried on beverage consumption in America, the study found out that 1 in 4 Americans gets 200 calories a day from the consumption of sugary drinks. In addition, there are 12 million alcoholics in the U.S. Our online marketing strategy is to offer a non-alcoholic drink that has some form of stimulus in the body. The Company hopes that this new beverage would be a substitute or would attract a new niche of customers (Taylor & Alyse, 2000). Our online market targets people of all lifestyles and ages. In task A, the Company has a differentiated product line that caters to all consumers regardless of their age or preference. Our online marketing strategy resonates with that same goal. The online marketing mission aims to get a niche market for our products. Our Company’s marketing strategy revolves around the 4P’s. These are namely product, price, promotion and price. However, on this part of the paper I would like to discuss the promotion and place since this are most crucial components of our marketing strategy.
First, since our Company’s transactions will be based online, most of the promotions will also target our online users. In order for our Company to have a significant online market, the Company needs to identify two things. First is the Products sold by the Company, as well as the target group. If the Company can address these two issues, then success would not be a surprise. Our goods are solution driven because they encourage our consumers to take on healthy beverages. Secondly, the Company’s target market is the youth. However, the Company has other custom-made products for other age sets. The Company, therefore, aims to target our youth market by doing the following. First, the Company will embark on search engine marketing. In the search engine market, the Company will approach Google for advertisements made online. This part of marketing allows the Company, and Google to get into an agreement for Google ad-words. Google will be authorized to make adverts is that they are pay per click. In other words, the Company will only be liable for only those advertisements that have been clicked by our customers. This will be very efficient for the Company considering that the Company is just a start up. In addition, the Company will get into an agreement with other affiliate Companies. In such an agreement, the Companies will use link exchanges on their website to direct users to their websites and vice versa.
This will be a win-win situation for both Companies as their will direct traffic to their websites, and this will have an effect on sales. Third, the Company is in the process of starting a blog on the Company’s website. The blog will be located in the FAQ section our webpage where people can discuss the Company’s product. The blog will be used as a communication tool where customers can put their opinion about the products offered by the Company. The Company will in turn use the website to make some improvements on the Company’s product as needed. The Company also intends to be actively involved in chat rooms that will be set up in the Company’s home page. The chat room will be used as a platform to communicate with customers. The Company will have a customer care service crew is available at all times of the day to cater to customers questions. This will ensure that the customers only acquire first hand information from the Company in order to avoid miscommunication. Just as a complement to having information available in the chat rooms for the customers. The Company will also have an online public relations page. The online public relations page will be used to address information about rumors and grievances if they arise. Fourth, the Company plans to use e-mail marketing as part of its online marketing strategy.
E-mail marketing has been proved the most effective way of retaining loyal customers. E-mail marketing is a follow up used in marketing where Companies track their customer’s satisfaction. The Company intends to use e-mail marketing by introducing our products to consumers. Given that our Company is just a start up, the Company will use our customers experience to alter the products. The Company will also use e-mails to send coupons and sending seasonal recipes to our customers. In addition, the Company will also attach an additional e-mail link. The link will be a substitute for word of mouth, where customers will refer the Company’s product to their friends. The Company will conduct its survey’s online. This will help keep the Company informed about our customer’s view of the Company’s products.
The surveys will ask consumers to rate the Company’s performance and will assist in checking customer satisfaction from the Company. The Company will also liaise with other Companies that are operating online to intensify our online presence. The Company will specifically be in talks with online auction sites that sell their products online. By using this option, clients will be able to view some selected products offered by the Company. If interested, the customers can purchase the products by clicking on the adverts, which will direct them to the website. The website layout is very crucial, and its significance cannot be ignored when it comes to online marketing. The Company, therefore, intends into having adverts that will have a long lasting effect on our point for the Company. For instance, the Company will have more details on the web products advertised so that they can appeal to customers. In other words, the products displayed will be able to be altered by the customer so as make their shopping experience worthwhile. Finally, based on the Company’s research the Company realized the need for prompt delivery. The Company will stress on one area because prompt delivery retains customers. The Company will embark on a delivery service that will utilize the use of a catalogue.
A catalogue will always be hand in hand with the order to inform the customers on new products and their prizes. This will be in an attempt to keep our customers and make them come back for more. Therefore, it will be crucial for the Company to be innovative in order to come up with more products so that customers can be retained on the Company’s website, which will evoke the client’s interest. In order to achieve this goal the Company is committed to distributing the goods to the customer as long as the consumer is willing to buy in bulk. The Company would also be willing to ship the products to our customers if the customers purchase 100 energy drinks. The Company will use this as one of the efforts to entice new users in trying out its products. The Company will also customize its products as earlier mentioned. The Company’s website will allow customers to design their own packaging for the energy drinks. This exercise will kill two birds with the same stone. First, the customers will be able to interact with the Company and information about the Company’s product. Secondly, the Company will have a competition where it will reward customers who come up with the best designs. The online customers will the judge of the process, and there is no doubt that these two practices will create a buzz in the market.
Our strategy is aimed at penetrating the market by offering low prices at first so that consumers can be acquainted to our products. The Company is only willing to have $0.20 buffer margin on the production cost in the initial marketing stage. This price is $ 0.30 cheaper than what our established competitors are offering. The Company believes that this will entice people to buy and experience our products because they will be using their credit cards. This will encourage people to spend more as compared to using cash. In addition, the Company will be willing to supply the beverage to the consumer if purchased in bulk (Braithwaite, 2002). The Company plans to popularize its products online through paid online advertisements. Some of the suggestions that have been put across include online games or online trivia in which consumers can win Company products (Eley & Tilley, 2009). Since the Company is new and offering a new product, the Company should embark on different marketing strategies since its offering different products for different age groups. For example, for the young ones, the new beverage can have stickers on the plastic containers, which kids can collect for a given number of periods. Say for instance, the Company can have a rule that for every 10 stickers on beverage stickers collected a kid can get a toy or a doll. The boys can get a toy while a girl can get a doll (Eley & Tilley, 2009).
For youngsters, promotions can be made depending on the quota of beverages bought. For instance, the Company can give out an extra beverage for a pair of beverage bought in the initial stages of product introduction (Taylor & Alyse D, 2000). Finally, for adults, ...