Online Brand Marketing plan (Report)
There has been a steady decline in the book business in UK over the past few years. This could be attributed to the rapid decline in the demand for physical books. However, since gaining knowledge is an integral part of human beings it is unlikely that the bookshop business will extinct. With the right strategy, bookshop business can be profitable even to the point of expanding. This paper aims to provide a market analysis report for a family-owned book retail and publishers in Huddersfield known as ‘The Book Club’.
Market Environment of ‘The Book Club’
The marketing environment not only affects but also surrounds any organization; it comprises of the macro environment, micro environment and the internal environment. The macro environment is the external factors that affects an organization and are usually beyond controls such as globalization, aggressive competition among others. The micro environment concerns the relationship between organizations and the driving forces that control such relationships. The internal environment comprises of factors within the control of the organization. When considering the market environment for the Book Club is imperative to have a well-defined strategy with a potential to attract many clients. To analyze the business environment of the Book Club, SWOT analysis and Porters five force Analysis
SWOT analysis is a simple tools that organizations can use to analyze their market environment. The tool can be applied to analyze both the external environment of a business and the internal environment (Pahl et al, 2007). Under the internal environment the market analyst of an organization explore the strengths and the weaknesses of the firm analyzes the internal environment whereas the external environment is analyzed by the opportunities and strength.
The Book Club has a strength of being a family business. Being a family business the owners have a commitment to the bookshop and may not wish to let each other down. Also, as a family the leadership structure for the business is well determined hence the bookshop enjoys stability. Furthermore, family members are highly flexible as they desire to make the company succeed through all means (Breton‐Miller & Miller, 2011). The location of the Book Clubin the town of Huddersfield is also a strength. Huddersfield has a high population of people who are the potential clients for the book shop. In, addition the Huddersfield University and other learning institution for secondary students and primary students provides a fresh market.
Some of the weakness of the Book Club is that it is a family business and can therefore be affected by family conflict. As a family business the governance is unstructured and adhering to the corporate law may be a challenge. In addition the company has struggled over the last five years and may be in some financial constraints. Being a small sized business the Book Club may have a challenge competing with major bookshops in UK such as the Amazon bookshop. Also, this bookshop has less sales strategy as they only rely on the sales of physical books. In the current digital world it is unlikely that this single strategy will be satisfactory to the success of the bookshop.
The Book Club has the opportunity to start selling their books in the Huddersfield University and other learning institutions around the town in form of tenders. The other opportunity that the Book Club has is establishing a long-term relationship with the clients so that they become frequent customers. They also have an opportunity to sell books to the old generation who prefer physical books to the eBooks (Fry, 2014). There is also an opportunity to expand the business especially given the fact that many companies in the book selling industry have already left. The business also has an opportunity to broaden their sales and marketing strategy so as attract more customers. They can do this through starting online marketing strategy,
The stability of the market of the book shop is threatened by other book dealers who have larger chains hence a higher purchasing power. The other threat for the business is that there is an increased market of the eBooks which has eliminated the need for physical books (Rojeski, 2012). Having good public libraries and other institutionalized library is also a threat to the success of the company. This is because people are likely to go and read in the library. Lastly, the other threat to the Book Club is the trend among younger generation who are less desired with reading a lot.
Recommendations from the SWOT Analysis
The internal environment of the Club bookshop is average in terms of fitting into the current book market in Hudderfield. To gain the most from this business it is imperative that the Book Club leverage their strength. The family should continue being individually committed to the book shop and be flexible enough to get the most customers. To further enhance the internal environment they should also work on correcting the aforementioned risks. The external environment of this book shop is also average. The bookshop should capitalize on the opportunities discussed above. The business can work on mitigating this risk factors.
Porters Five Force Analysis
In order to formulate strategies for competitive advantage as well as ensuring that the Book Club increases its performances in book selling business at Huddersfield an appraisal of the Porters five force model is necessary. This model is named after its founder and is often used to evaluate the entrepreneurial strength, potential of a business to make profit and the competitive advantage of the business.
Threats of New Entrants
New entrants’ comprises of the companies that may wish to enter in a given industry. Such companies usually enter the industry with an aim to acquire clients of their own, gain a competitive advantage and possibly out do the existing firms in the industries. New entrants therefore causes increased competition to an industry which may not work well for the existing firms/business. The threat of new entrants for the book shop business is very minimal since bookshop is considered as a declining business. This indicates that the threat of new entrants is very low hence giving the Book Club an opportunity to continue exploring
Bargaining Power of Suppliers
Powerful suppliers usually dictate prices of their supplies and make it harder for a business to make higher profits. Suppliers are often powerful when there are only a few suppliers who can provide the raw materials needed by an industry. With regard to the supply of books the main suppliers are the authors of books and the forestry department that provide trees for making the papers. These suppliers exert a medium pressure because they are few in number but have variety of books which they seek market. The Book Club therefor has a medium pressure from the suppliers.
Bargaining Power of Customers
The bargaining power of customers becomes high when they have a significant information about the business or when they have several alternatives from which to purchase a similar commodity like the one being offered. The customers of the Book club have a medium bargaining power. This is due to the fact that there are relatively few bookshops left at Huddersfiled town. However the customers are likely to know that the physical books market is steadily declining and may take this advantage to negotiate for a much cheaper price.
Threat of Substitutes
Substitute products are those products that can perform a similar purpose as the commodity in question. Substitute products gives a negative pressure to a business because clients are likely to compare the product prices if they offer similar service. The pressure from substitute products for the Club Book industry is high. This Is due to the availability of eBooks which are sold at a much cheaper price. According to Bookshop of the World (2001) in the error of internet students are more likely to do online research rather than to purchase the physical books.
Rival companies comprises of the firms that are already existing within the industry at the same time. Rival companies usually competes with a firm to gain competitive advantage. The intensity of the rivalry among competing firms intensifies when the companies are powerful and rapidly expanding. The Book Club has a medium pressure for the existing bookshops and publishers.
Recommendations from the Porter’s Five Force Analysis
In order for the book Club to benefit more from the business they can establish a god relationship with the suppliers and agree on a fair price so as to help lower the pressure from suppliers bargaining power. Also, the book club should advertise and market the business so as to establish a good brand that will enable it have a higher competitive advantage hence lower the pressure from the existing rival companies. The Book Club should continue with both the publishing and the retailing as this diversification will provide leverage when one department fails.
The business strategy that I propose for the Book Club is position and product differentiation strategy. To enhance product differentiation the company will start introducing extra services that customers will find amazing (Pagell & Halperin, 1997). The company will position itself well to gain competitive advantage. The positioning statement for the company will be ‘Experiencing the best in adding knowledge’ because the primary target are students. The market segment for students is good because there are many students and also they are in need of books (Lynn, 2011). Good website which will serve as a ground for customer service and marketing of the company’s product (Dibb & Simkin, 1991).
In addition, the company will introduce home delivery services such that the customers can go through the company’s website, identify the book that is more appealing to them and then give an order of the book. If the person resides within Huddersfield then the book delivery will be done free. For residence outside Huddersfield a small delivery fee will be charged depending on the distance. The quality of the books published will also be superior as compared to that of competitors so as to encourage many author’s to publish wilt the Book Club.
Objectives of the strategy
- To design a world class website that will help customer know about the company within a five seconds after viewing the webpage; the website to be launched by the first week of May 2017.
- To get the email address of at least five potential customers through the web page for the first one month following the official Launching of the Website.
- To have at least 30% of people contacted through emails purchasing a nook or giving an order for book publishing within a period of one month.
- To start book delivery services within two weeks following the launching of the new website
- By the end of the current financial year to have a profit of at least 20% from all sales and services.
This comprises of videos, animation, images texts among others (Connell, 2013).The color of the website will be bright preferably being blue in color with other colors. This is because bright colors tend to appeal to the eyes of many people hence many people are likely to look at it when the colors are bright (Yi, 2016). The headline, position statement and sub-heading will also be displayed with a bright and bold font such as Yellow. This is also meant to appeal to the eyes of the web viewers.
The cover pages of different kinds of books to be displayed on the Web page. This cover pages should represent each category of books including fictions, religious books, children books, academic books and motivational books. In addition the prices of each book will be indicated on the cover page. There will be a provision for previewing the books if the cover is clicked.
The content contained in the website will be an audio. The audio will be in form of the voice of a person welcoming people to the website and highlighting the title of the webpage, the services and products offered by the Club Book and the providing the contact information. The audio will be set such that it starts talking within 30 seconds after a person opens the website. The voice can then stop for 30 seconds after which it repeats the information that it had previously offered.
At the very top of the website the name of the company will be provided. This will be written in block letters which will be all bold. Just below the name of the company the position statement will be given in quotation marks. This will also be bold and in block letters but will use smaller fonts as compared to the name.
A centimeter will be left after the position statement after which a list of titles will be given in a horizontal line. The first title will be about the company, the second will be products and services, the third will be corporate social responsibility, and the last sub title will be the contact information.
Under the subtitle ‘about the company’ Information about history of the company will be given. This will include the day that the company was started, the owners of the company and employees and their respective titles and qualification. The vision and the mission of the company will also be provided under this sub heading (Suh, 2005). Lastly, this subheading will indicate the values held by the company.
The products and services offered by the company will be given under the next subheading. It is here that the role of the company in publishing books and retailing will be provided. Given that it may not be possible to list the titles of all books available a pdf will be availed for downloads on the available books. The services offered such as delivery of products, publishing and online customer support will be included.
The sub title corporate and social responsibility things such as recycling of materials such as paper will be included. Also, the activities done by the company maybe in encouraging writers to write and publish their books during workshops will be included. Keeping the environment clean and other services which are offered by the company to the community and have no direct profit to the company will be included.
The contact subtitle will include the physical address of the book club will be given and also a small map to help strangers locate the shop. The official email address, landline number and the mobile number will be provide. The working hours or the company will also be indicate under this subheading.
After the subheadings the images of the front pages of several books will be given as earlier mentioned. The section at the bottom of the website will contain three questions to the client also in a horizontal manner. The first question would ask the client to rate the website on a scale of 10. A tiny box will be provided for rating. The second section will ask for comments and compliments suggestions for improvement whereas the last question will be a request for client to leave their emails for updates about new books, events and motivational services offered by the Book Club.
The email address of the clients will be submitted to the head of sales and marketing who will then ensure that the clients are well up dated. Also the head of marketing can motivate the clients to purchase more product either as first time customers or established customers. This technique will also ensure that the company keep their customers (Vasileiou & Rowley, 2011).
The end action rate will be used to measure the number of sales and the profit at the end of the financial year so as to indicate whether the Book Club has been able to achieve its target of 20% profit (Sair & Shoaib, 2014).
Social sentiment is another performance metrics that will be used to measure the quality of the webpage using the comment left by the clients (Henri, 2004).
To measure the number of potential clients the number of people submitting their emails will be counted.
Reflection on Information Process Development
Doing the SWOT analysis and the Porter’s five force analysis was significant in th information process development. These market analysis tools made me to gain the information that was critical for the success of the Book Club. I was able to gain insight on adjustments that could help in improve the macro, micro and internal business environment.
Reflection and Justification for the Decisions Made
The decision to make a website and to engage in e marketing is imperative because in the current era many people have embraced information technology (Jain et al, 1999). This implies that Book Club is likely to gain many customers via the internet.
The decision to use client emails as a marketing tool is also strategic because most people use their emails frequently and will therefore have updates about The Book Club products and services which they may be interested in (Randazzo, 2014).
The decision to start delivering products such as boos to client is relevant because with the e-marketing strategy clients may be impressed with a book and wish to purchase it but be limited due to time schedule. Taking the book to them would mean better service to the client and more sales to the company.
The Book Club publishers and retailers have witnessed a decline in the past five years just as many other companies in the industry. The primary reason is that people are in a digital era and physical books are no longer desirable for many people especially the younger generation. However with proper position and product differentiation the Book Club can still realize a significant profit. Recommendations for e-marketing should also be implemented to gain a higher competitive advantage.
Top of Form
Bottom of Form
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