MARKETING PROJECT

Assessment Task 3: Integrated Project
FULFILLMENT MARKETING PROJECT
FULFILLMENTMARKETING Fulfilment Marketing is not a new idea, but it is one that has come around again in a big way. Individuals or companies can obtain orders for goods that are then fulfilled by the manufacturer.
In the “old” days, you would buy something from a catalogue or visit a store to look at pictures or samples. You would then pay the store owner. He would order it from the manufacturer. The store owner kept a commission on the sale and then forwarded the balance to the manufacturer with the written order. The Railways would then deliver the product to the local parcel office for you to collect.
People bought anything from a pair of scissors to a motorcar, a steam iron to a stove. With the turn of the 20th Century came the big retail store and fulfillment marketing dropped off.
What brought the fulfillment marketing model back with a rush was the Internet. The world-wide-web has allowed the desktop shopper to search the neighbourhood, the country and the world for whatever they desire. Sometimes an impulse takes hold and they buy what they never expected they wanted! This marketing model is also known nowadays as “Drop Shipping.”
Entrepreneurs have created enormous online shops in particular categories which allow shoppers to browse the aisles with their cursors, compare features, look at products in extreme close-up and then be offered a discount price devoid of overheads, staff, handling, rent, etc.
Consumers get to compare all of the major brands in an even-handed way without any pressure from a retailer overstocked with a particular item. It is delivered to their door with a guarantee of satisfaction.
With the modern triangle of Fulfillment Marketing/Drop Shipping, everyone wins:
? The supplier/manufacturer can get sales without a large outlay in marketing and promotion.
? The Fulfillment Marketer receives a portion of the sale and a commission from the supplier.
? The Customer gets a terrific price with no overheads, advertising or retail margins added.
The big loser will be the ‘traditional store front’ retailer … unless they become fulfillment marketers/drop-shipping retailers themselves. And quite a few are doing so.
Diploma of Business (Enterprise) WDB 1009
Professional Communications Integrated Project

So to get you thinking…….Here are some fulfillment marketing/drop-shipping companies for you to research to find some interesting techniques to use in your model.
? babyshop.com.au
? clearlycontacts.com.au
? styletread.com.au
? dstore.com.au
? amazon.com
Your Task is to create a Business Plan for an online retail company that operates on a fulfillment marketing/drop-shipping model.
You will be given a product category upon which to build your business.
The Product Categories:
? Rechargeable Electric Motorbikes
? 13” Laptop Computers
? Game Consoles
? 80cm LED Flat screen Televisions
? Espresso Coffee Machines
In Your Team:
? You will choose a minimum of five brands/models in your category to research and present in an unbiased comparison.
? You will offer a price at least 25% under the RRP (recommended retail price).
? You will find a “hook” to improve the customer experience.
? You will offer a great customer satisfaction guarantee.
Diploma of Business (Enterprise) WDB 1009
Professional Communications Integrated Project
Version Date: Aug 23rd, 2013
Author : Randall Berger / Craig Cameron/ Wendy Lyle
Filename : Assessment Task 3 Sem 2 2013
Page 4 of 15
Part 1: Business Plan / Report (Report(25%)
You will prepare a Business Plan to create a “Go To” online shop for your product category. This Business Plan you will then detail in a Formal Report. The purpose of the Report is to convince potential investors that this online retail company will be a successful and profitable investment.
Your report should be correctly formatted and prepared in Word. You will be provided with a Report Template to assist you in the preparation of your final document.
You should show evidence of research, and sources of information – References, Citations, Bibliography and Appendices.
Why a Business Plan analysis? You will…….
? Learn about your industry, market and competitors.
? Identify where you are in the market and where you’re headed.
? Identify challenges you may come across and work out strategies to overcome them.
? Understand your business finances.
? Set specific goals, timeframes for achieving them and how you’ll measure performance.
? Make sound business decisions that focus your activities, maximize your resources and give you a competitive edge. Now Complete the Following Steps: Step Information
Under the Business Information section of your Business Plan you can include the following information:
Business Purpose: Briefly explain the main purpose of your business, including products/services.
Business Size: Decide upon the number of people you will need to “run” your business and an estimated/actual annual turnover of your business.
Business Premises: In the business premises section of your business plan you can include the following information:
Business location: Decide upon your main business location and include details of the location and space occupied/required, the city or town.

Management & Ownership: Under the Management and Ownership section of your Business Plan you can include the following information:
Names of Owners: List the names of all Business owners.
Details of Management & Ownership: Detail who’ll be running the Business (owners or a Chief Executive Officer) and what involvement the owners will have. If it’s a partnership, briefly outline for each partner: their percentage share, role in the business, the strengths of each partner and whether you have a partnership agreement/contract in place.
Experience: Detail what experience the Business owner or owners have, why people should invest in you, and how many years you’ve owned or run a business. Here you will list any previous Businesses owned or managed, any major achievements/awards and any other relevant information.
Organisational Chart: In this section of your Business Plan, attach an Organisation Chart. An Organisation Chart is a visual way of representing your business structure. Generally the roles are represented in order of seniority with lines between them representing relationships, responsibilities or ranks of individuals in the Organisation.
Staffing / Recruitment Requirements: In this section of your Business Plan you are to provide the following information:
Recruitment: Here you will provide details of the number of staff you require and how you’ll attract required staff. You need to provide details of whether you are proposing to advertise in the local paper, online or perhaps use a Recruitment Agency. You need to explain in detail your decision here.
Training Programs: List any training programs you’ll be organising to assure your staff have the required skills. Detail whether these are in-house or external providers. Also include any training you’ll undertake as the Business owner/manager to keep your skills current.
Skill Retention Strategies: Detail what procedural documentation you’ll provide to ensure the skills of your staff are maintained, how you’ll implement an appropriate allocation of responsibilities, and how these responsibilities will be documented and communicated to staff. You can also detail any internal processes you’ll implement to regularly check that the current skills of staff members are still appropriate for the Business.
In this section of your Business Plan you will list your required staff and for each required position list the following:
? Job Title
? Skills and Qualifications necessary
? Experience required

Innovation: In this section of your Business Plan you are to determine which ‘Model of Innovation’ applies to your proposed online business. Explain the model using examples from your proposed online business i.e. apply the terms from the model to your online business. (Information regarding this issue is on WebCT in the “Learning Resources” folder in the Professional Communications shell)
International Issues: In determining the viability of your proposal you need to assess the following contextual issue: What is the overall stability of the local/national economy in relation to the rest of the world? inflation, employment, value of currency etc
Step 2: Registration DetailsStep Details
National Business Names Registration System
Under the Registration Details section of your Business Plan you can include the following information:
Business Name: What is your Business Name? You will need to research what you need to do to register a Business name in Australia. A new National Business Names Registration System has now commenced, replacing the current state and territory registers. You can provide this information as an Appendix to your Report.
Date Registered: Date of your Business Name Registration.
Locations Registered: List each state in which you plan to register your Business Name. You will need to research what you need to consider in this decision. You can provide this information as an Appendix to your Report.
Business Structure: Enter whether you’re a sole trader, partnership, trust or company. You will need to research information about each of these business entities. You can provide this information as an Appendix to your Report.
Other Requirements: You will also need to research the following and provide relevant details to assist you in your Business Plan:
? Registered Australian Business Number (ABN)
? Registered Australian Company Number (ACN)
? Goods and Services Tax (GST)
? Domain names
? Licences & Permits

Step 3: Products and/or Services
In this section of your Business Plan you are to include the following information:
Details of Products/Services: List each product/service your business is planning to offer. For each product/service, provide a description, the unit price and how you have determined the price.
Market Position: Detail where your products/services fit in the market and whether they are high-end, competitive or a low cost alternative to the products/services offered by your competitors. Also detail how this compares to your competitors. You will also need to consider the impact of such variables as seasonal price fluctuations or trends.
Unique Selling Position: Detail how your products/services will succeed in the market where others may have failed. Also include what gives your products/services the edge.
Anticipated Demand: Detail the anticipated quantity of products/services your customers are likely to purchase. For example, estimate the quantity of products/services an individual customer will buy in 6 months and 12 months.
SURVEY
To assist you with these decisions you are to collect some data which will give you an understanding of Customer Perception. You are to Prepare a 10 Question Survey and Interview the public to examine Customer Demand.
From these interviews you will collect a variety of data that will assist you with your planning and product choices. You will need to compile the collected information and then analyse your results.
You will need to decide the best statistical method of managing this information.
You can place a copy of your Survey in the Appendix to your Report.
Compiled and analysed data from your survey will be placed in this section of your Report.
Pricing Strategy: What is your Pricing Strategy? In this section you will provide details on how your pricing strategy will work and your reasons for choosing this strategy over other alternatives. To help you develop your pricing strategy, you could refer to your customer research, market position, anticipated demand and costs/expenses to get an idea. Whatever strategy you use when setting your price, you will also need to adhere to any relevant fair trading legislation or codes of conduct.
Diploma of Business (Enterprise) WDB 1009

You could consult:
Business.Gov.Au: The Australian Government’s Principle Business Resource
http://www.business.gov.au/BusinessTopics/Fairtrading/Pages/default.aspx
Value to Customer: Explain how your customers will view your products/services and whether these are seen as a necessity, luxury or something in between. This information should be available to you from your Survey results.
Intellectual Property Strategy: Detail how you plan to protect your innovations. Protecting your innovations can include registering for intellectual property protection, ensuring your staff sign a confidentiality agreement, and generally ensuring your competition does not find out what you are developing.
See the IP Australia website http://www.ipaustralia.gov.au/ for information on protecting your innovations.
Insurance: Under the Insurance section of your business plan you can include the following information:
Worker’s Compensation: Provide details of any Worker’s Compensation insurance. This is mandatory if you have employees.
Public Liability Insurance: Provide details of any Public Liability insurance. This covers you for third party death or injury.
Professional Indemnity: Provide details of any Professional Indemnity insurance. This covers you for legal action taken out as a result of your professional advice.
Product Liability: Provide details of any Product Liability insurance. This covers you for legal action taken out as a result of injury, damage or death from your product.
Business Assets: Provide details of any insurance you have taken out for your business assets in the event of a fire, burglary, or damage. This insurance covers things like buildings, contents and motor vehicles.
Business Revenue: Provide details if you have insured your business in the event of business interruption. This covers you when you cannot trade because of a particular event and are unable to make money.
Diploma of Business (Enterprise) WDB 1009

Step 4: Legal Considerations
In order to complete this section of your plan you will need to conduct further research. Using the following websites explain what laws and regulations will you need to abide by in order to operate legally in Australia. List and explain the relevance of all the relevant legislation that will have some impact on the running of your business. For example: consumer law, business law, or specific legislation to your industry.
1.
Business.gov.au: The Australian Government’s Principle Business Resource:
http://www.business.gov.au/Howtoguides/Startingabusiness/Startinganewbusiness/Pages/Whatarethelegalrequirements.aspx
2.
http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Financial%20Services%20home%20page
5: Operations
Under the Operations Section of your Business Plan you can include the following information:
Production Process: Detail the process involved in providing services. You will need to cover any developmental processes, the people involved, any third parties involved, and details on how you deliver the product/service to your customers.
Suppliers: List your main suppliers and detail what they supply to your business. Also explain how you will maintain a good relationship with them.
Plant & Equipment: List your current plant and equipment purchases. These can include vehicles, computer equipment, phones and fax machines. For each item include a description of the plant or equipment (make and model if applicable), purchase date, purchase price and running costs. If you have not purchased all of your equipment yet, you can include a separate table and include an expected purchase date

Technology (Software): List the technology you require to run your business. For example: website, point of sale software or accounting package. For each technology solution, detail the main purpose, whether they will be off-the-shelf or purpose built and the estimated cost of each.
Trading Hours: List your normal trading hours. Detail your expected peak trading times and which times you expect to be more profitable. Also include how this will change over different seasons and how your trading hours will accommodate these changes.
Communication Channels: Explain how your customers can get in contact with you. These channels may include any of the following: telephone (landline/mobile), post box, email, fax, internet blog or social media channel.
Payment Types Accepted: List which payment types you will accept. For example credit, cheque, gift cards, Paypal.
Quality Control: Describe your proposed quality control process. Detail any checks or balances you put in place to ensure the product or service you offer is supplied to the same standard of quality. Also list the steps you take to meet product safety standards.
The Business.Gov.Au: The Australian Government’s Principle Business Resource will
assist you here in providing information about Product Safety & Standards.
http://www.business.gov.au/BusinessTopics/Fairtrading/Pages/Productsafetyandstandards.aspx

This is the main market section of your business plan and should cover more detailed information about your market. Within this section you can include the following information.
Market Research: Detail any statistical research you’ve completed to help you analyse your market. Include information you have collected from your Survey in Step 3.
Research and identify three different ways in which you can utilise Social Media to launch the ‘Go To’ online shop for your product category. You will need to indicate why you believe such a marketing strategy should be sufficient to effectively launch the online company.
Diploma of Business (Enterprise) WDB 1009
Professional Communications Integrated Project
Version Date: Aug 23rd, 2013
Author : Randall Berger / Craig Cameron/ Wendy Lyle
Filename : Assessment Task 3 Sem 2 2013

Environmental/industry Analysis: Conduct some research into your ‘Market’.
Consider the following questions when preparing this section:
? Is the area experiencing population growth?
? Is the region’s economy stable?
? Are there seasonal variations?
? What is the size of the market?
? What recent trends have emerged in the market?
? What growth potential is available and where do you fit in?
? How will the market/customers change when you enter the market?
A good place to start when researching your regional profile is the Australian Bureau of Statistics website. The regional profile information includes economy, population/people, industry and environment/energy statistics.
http://www.ausstats.abs.gov.au/ausstats/nrpmaps.nsf/NEW+GmapPages/national+regional+profile
Step 7: Customers
Under the Customers Section of your Business Plan you can include the following information:
Customer Demographics – Define who your target customers are and how they behave. You can include age, gender, social status, education and attitudes. In trying to determine potential customer bases, what is the level of employment and what are the local employment conditions like? Consider the notion that people with more disposable income will spend more on-line.
You can visit the Social Trends series from the Australian Bureau of Statistics website.
www.abs.gov.au/ausstats/abs@.nsf/mf/4102.0?opendocument#from-banner=HPI
Key Customers: Identify and detail your key customers. These can be large consumers of your products or individuals whose satisfaction is key to the success of your business. Detail how you plan to target your products/service to them.
Diploma of Business (Enterprise) WDB 1009

Customer Management: Detail how you’ll maintain a good relationship with your customers and how you’ll keep them coming back. Detail any techniques you’ll use such as introducing customer service standards or following a particular code of practice.
You will need to conduct some research on ‘Codes of Practice’ from
The Business.Gov.au: The Australian Government’s Principle Business Resource website.
http://www.business.gov.au/BusinessTopics/Fairtrading/Pages/CodesofPractice. aspx
Explain how your Fulfillment “System” will work and what services your system is able to provide for customers.
Step 8: Finance
Financial Objectives: In this section of your Business Plan you will list your key financial objectives.
? These objectives can be in the form of sales or profit targets. You could also list your main Financial Management Goals such as cost reduction targets.
Finance Required: In this section you need to detail the following financial information:
? How much money up-front do you need?
? Where will you obtain the funds?
? What portion will you be seeking from loans, investors, business partners, friends or relatives, venture capital or government funding?
? How much of your own money are you contributing towards the business?
Budget: Produce a Budget outlining predicted revenues and costs for the first year of operation. You will be provided with a Template to assist you here.

Under the Strengths, Weaknesses, Opportunities, Threats (S.W.O.T) analysis section of your Business Plan list your:
? Strengths: Enter the strengths of your business. For example, experience in the industry.
? Weaknesses: Enter the weaknesses of your business. For example, the location of your business.
? Opportunities: Enter the opportunities available to your business. For example, a new export opportunity.
? Threats: Enter the threats that could impact your business. For example, a new competitor entering the market.
Your Competitors: Under the Competitors Section of your Business Plan detail how you consider you rate against your competitors and how your business can improve on what they offer. Also list your top 3 competitors and provide the following information for each:
? Competitor: Enter each competitor’s business name.
? Established Date: Enter the date they were established.
? Size: Enter the number of staff and/or turnover of their business.
? Market Share (%): Enter an estimate of the percentage of market share owned by each competitor.
? Value to Customers: Enter their unique value to customers and why their customers do business with them. For example, convenience, quality, price or service.
? Strengths: Enter your competitor’s main strengths.
? Weaknesses: Enter your competitor’s main weaknesses.
Advertising & Promotional Strategy: Detail any strategies you have for promoting and advertising your products/services in the next 12 months. For each planned promotion/advertising activity, provide the following information:
? Planned Promotion/Advertising Type: For example, print media advertising, online advertising, mail-out, giveaway, media release, social media campaign or event.
? Expected Business Improvement: Detail how you expect it’ll improve your business success.
? Cost: Enter the cost of each planned activity.
Sales & Marketing Objectives: When preparing this section consider including details of the people that make up your sales team, the sales techniques and tools/materials they will use to help sell your products/services and the sales goals/targets they will meet.
Unique Selling Position: Detail why you think you have an advantage over your competitors and how your products/services will succeed in the market where others may have failed.
Diploma of Business (Enterprise) WDB 1009

? Sales & distribution channel: Detail your sales and distribution channel. List the advantages of using this channel for these products.
? Challenges: Detail the challenges you expect to face using this channel and how you will overcome them.
Step 10: Future Analysis
Vision Statement: In this section you will provide a Vision Statement which will include a brief statement that outlines your future plans for the business and includes your overall Business Goals.
Mission Statement: In this section you will provide a Mission Statement that will include a brief statement that outlines how you will achieve your Vision. Here you will need to explain how a Fulfillment Marketing System ‘fits into’ the Supply Chain Management System Model.
Goals/objectives: Under your goals/objectives section include your short and long term goals, as well as the activities you will undertake to meet them.
Action Plan: List your key business milestones:
Milestone: Detail the milestones you are trying to achieve.
Date of expected completion: Enter the date you expect to achieve each milestone.
Person Responsible: Enter the name or position of the person responsible for delivering this milestone.

Presentation(You have now completed the research and serious decision making activities for your proposed Fulfillment Marketing online company and completed your Business Plan. So now you have to make some important decisions regarding how you will present your proposal to your potential investors.
You are to create a PowerPoint show and deliver a Team presentation of between 10 and 15 minutes which summarises the key business ideas you have developed. Clearly you will use your Business Plan as your key resource, but you may wish to include other material and references as well.
1 You are to customise your own template for the Presentation and create well designed and informative slides, using your PPT skills.
2 The team presentation should be thorough and include the following:
Title page with the title of the presentation, a graphic, date of presentation, company name, presenter/s name/s.
Each slide should have Multi level bulleted lists with appropriate amount of text.
Slides should employ Graphics to help communicate the information.
Evidence of text attributes, for example different font sizes and styles, italics, bold, colours – that enhance your professional design and communication.
Evidence of transitions and animations.
You will submit an electronic file of your slides to your teacher before the Presentation

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