Although many Internet companies have recently failed, the Internet is still poised to support e-commerce retailers. In the next three years JAVA Looks intends to create an icon e-commerce rand through laser-focused marketing and will grow to $319,000 in revenue. 1. 1 Objectives JAVA Looks objectives for the first three years are: To make JAVA Looks an icon brand. To develop an effective, well placed e-commerce site for sales of handmade and customize Jewelry and accessories products.
To create an infrastructure for the fulfillment of Web-based sales. 1. 2 Mission JAVA Looks mission Is to provide the finest In Jewelry and accessories using the Internet to lower the consumer’s cost. We exist to attract and maintain customers. Our services will exceed the expectations of our customers. 1. Keys to Success JAVA Looks keys to success are: Web design. Product quality. Service. 2. Company Summary JAVA Looks goal is to become the e-commerce market leader in sales and marketing of handmade and customize Jewelry and accessories. . 1 Start-up Summary JAVA Looks will incur the following start-up costs: Legal fees for the business formation. Office supplies. Web development. Telephone line installation. Desk, chair, filing cabinets. Shelving units for inventory storage. Computer system with Microsoft Office, Cookbooks Pro, CD-RAW, printer, and a broadband Internet connection. Start-up Requirements Start-up Expenses Legal $1,000 Stationery etc. 200 Web Development $10,000 Total Start-up Expenses $11,200 Start-up Assets Cash Required $65,600 Other Current Assets $0 Long-term Assets $3,200 Total Assets $68,800 Total Requirements Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required $80,000 Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free)
Total Liabilities Capital Planned Investment Avian $45,000 x $35,000 Other Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) ($1 1 ,200) Total Capital Total Capital and Liabilities Total Funding 2. 2 Company Ownership JAVA Looks is a privately held Indonesian company, by investment from Avian and X The company intends to recruit a sophisticated team of owner board members. The board members will be granted shares of stock to provide an incentive for their performance on the board. . Products JAVA Looks will market and sell private label (manufactured by a company that laces the retailer’s name on the packaging) handmade and customize Jewelry and accessories to individual consumers via the Internet. These products will include jewelry, accessories mostly for women. After year one additional products will be offered. 4. Market Analysis Summary The market for handmade Jewelry $895. 1 million in 2012(wry. Test. Com) and for custom made Jewelry is $1 million per month (Forbes. Com).
The long tail of the Internet gave rise to commerce, providing consumers easy access to all manner of niche products. Now a growing site, Accustomed, has extended that ability to getting almost any product custom-designed for you. 4. 1 Market Segmentation A significant trend , is that people want something unique and more personal. People can use Accustomed in two ways: by requesting a product from a particular maker, or by posting a photo and description and asking for bids from makers. Another global trend is the emergence and popularity of e-commerce.
Brand-focused Web retailers that can provide quality products, customer service, information, and the intangible, emotional buy-in by the customer are becoming hugely successful. E-commerce retailers have an advantage in that “Unlike rotational retailers, Web-based sellers are not slowed by the friction of store growth and local marketing” O. W. Gurgle, Fortune, 1/11/98). In addition, e-commerce companies do not have the excessive overhead of a traditional brick and mortar retailer. As seen by the recent success of Amazon. Com and Gap. Com, consumers are grow to $12 billion by 2003.
This enthusiasm about the Internet is not irrational but grounded in reality in light of the recent market crash of Internet retailers. The recent Internet crash was based on too-easy access to capital invested into retailers ND other dot-comes without reasonable business plans or revenue models. Regardless of the recent fallout, the Internet is a very efficient marketing and distribution model that if done right, significantly decreases costs of serving the consumer. 4. 2 Industry Analysis The handmade and custom market is a high fashion market and a few large competitors. Saviors and Tests, 2005)” classify the fashion markets defining five main market segments: couture, pr©t-porter,diffusion, bridge, and mass: from the first to the last one, the price of the sold product decreases, the number of sold units increases, whilst the quality level decreases”. Couture ” is characterized by the high quality of the materials used and an high stylistic content”. “Products are often handmade and unique, and as such are characterized by an elevated price” (e. G. Channel, Dior). The market leaders are as follows: Test (wry. Test. Com) Custom Made (wry. Customized. Com) The primary channels of distribution in this market are: Mass market retailers . Direct Sales / Resellers. Retail stores. Mail order catalogs and the Internet. 5. Strategy and Implementation Summary JAVA Looks strategy is based on capturing a small percentage of the growing market hare through Web sales. 5. 1 Competitive Edge JAVA Looks competitive edge will be their easy-to-use website and superior customer service. The website design will be a competitive advantage because research indicates that an easy-to-use website significantly increases sales.
The design of site will encourage purchases because it is so easy and quick to make the purchase. Too often sales are lost because of complex websites that are far from intuitive. JAVA Looks other competitive edge is superior customer service. The mantra of the customer service department is to serve the customer in any way required. Customers that call in with problem/issues will be amazed at the amount of personal attention they receive and how quickly issues are not only resolved, but significantly improved. This will be a powerful asset. . 2 Marketing Strategy JAVA Looks is focused on the merging/redefined Internet marketplace. The users will currently in world wide. The long range goal of JAVA Looks is not only fashion jewelry market, but to create an icon brand. Initially the company will: Engage in Web-based marketing for the next year to generate awareness of the company and product information. Because Internet based advertising has declined in recent ratters, the prices for advertising have consequently significantly dropped making the expenditure more cost effective.
Engage in outdoor advertising providing general awareness to the public at large and direct individuals to the company’s website. 5. 3 Sales Strategy JAVA Looks will process 90% of it’s sales online through a secure socket layer (SSL), an secure Internet connection. All orders will be charged to Pay Pal . By ensuring that the website is easy to navigate as well as simple to order from, JAVA Looks will be ensuring that people who make it to the website will end up purchasing something. This last point is key.
Research indicates that too many sites that are not easy or intuitive lose customers who migrate through the site, often putting products in their basket, yet leave without purchasing anything. 5. 3. 1 Sales Forecast The first month and a half will be used to develop and ready the site. There will be no sales. From month two on, JAVA Looks expects a gradual rise in sales. 5. 4 Milestones JAVA Looks will have several milestones early on: Business plan completion. This will be done as a roadman for the organization. This will be an indispensable tool for the ongoing performance and improvement of the company.
Office set up. Website completed. Complete hiring of the initial company personnel. 6. Web Plan Summary JAVA Looks will use their website as their catalog and ordering device. The website will be a complete product offering as well as to provide company information. The website will be designed with simplicity in mind. It is imperative that customers are able to navigate throughout the site intuitively with no problems. A phone number will be offered on the website to remedy and problems that customers encounter. 6. 1 Website Marketing Strategy The website will be marketed through search engines such as Yahoo and Google.
In addition to advertisements on search engines, JAVA Looks will advertise with websites that have similar customer demographics like an outdoor retailer. The cost comes that it has become quite cost effective. 7. Management Summary There are important gaps as follows: Customer service representative/manager. Distribution/warehouse manager. Advisory board. 7. 1 Personnel Plan Avian and X will be on the payroll starting month one and a customer service agent and distribution agent will be hired for month two. One programmer in addition to X will be hired in month one.