Budgeting for Business Growth

This case study examines the role of budgeting in a business setting. It highlights how organizations utilize budgets to allocate resources effectively, manage expenses, and plan for future growth. The analysis emphasizes the benefits of budget planning, including controlling expenditures, identifying potential savings, and ensuring financial stability during economic fluctuations.

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Internet Marketing
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Contents
Introduction...........................................................................................................................................3
Situational analysis................................................................................................................................3
Micro environment............................................................................................................................3
SWOT.................................................................................................................................................6
Marketing mix.......................................................................................................................................8
Implementation.....................................................................................................................................8
Budget and evaluation...........................................................................................................................9
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Introduction
The Iconic is an Australian based garments company that manufactures different garments for
the people of Australia. This company was firstly started in Sydney and later on captured the
whole market of Australia. Starting from the year 2011 up till now the company has become
a famous online shopping company in the states of Australia. This online company stocks
more than 700 brands and more than fifty thousand products. The company was launched by
a group of co-founders and among them Adam Jacobs has been the managing director of the
company since then. The former Australian leader Patrick Schmidt joined the company in the
year 2013 as the chief executive officer. Despite of being the old and renowned company the
company still manages to maintain the start-up feel and culture. The workers in the company
have the independence in the field of work and thus the employee satisfaction is maintained
in the organizational environment (Advice, rules and regulations for setting up an internet
pharmacy, 2015).
The Iconic is mainly from the garments industry. This company mainly deals with all the
trends and the fashions of the people of Australia and different parts of the world. In this
industry, The Iconic has been famous for its servitude to the customers of Australia. It can be
said that the choices of garments are dependent upon the fascination of the customers. So the
garment industry must be aware of the situation that they must make their products depending
on the latest trends and the choices of the customers.
Situational analysis
Micro environment
The micro environment of the digital or the online marketing includes the facts like,
Market place
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The market place of the company is considered to be the most effective place in the business.
There are five forces which must be taken under the matters of concern for the business
(Awards for improving the coastal environment, 2007). The factors are,
Bargaining power of the customer: The bargaining power of the customer is not necessary in
the online marketing field as there are wide range of products so that the customers have
more products of different ranges.
Bargaining power of the suppliers: The suppliers’ bargaining power is not needed as the
customers as there are varieties of ranges in the product of the company.
Threats of substitute: The internet has abled to make the introduction to the new products of
the company. In this scenario it can be said that there may be situations of losing the market
share. It must be avoided in order to maintain the business flow.
Barriers to entry: The internet has reduced the establishment costs of the company. So it must
be taken care that the new entrants of the market must not break the rules and regulation by
its movements.
Competitors: The internet marketing has provided the platform of making the competition
among many companies. The delivery of products and the quality of the products are the
main places where the competitions can be made (Beckett in the cultural field =, 2013).
Customers
The customers in the market are the most crucial factor in terms of the online marketing. The
presence of the customers in the online marketing and the responses of them are the main
matters of concern.
Online buying behaviour
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It is another a crucial matter of concern for the organization that the customers must be loyal
in the field of choosing the brand or in the field of marketing. This is known as the buying
behaviour of the customers and it affects the online marketing in an effective way (Borek,
2011).
Suppliers
The suppliers of the product to the online retailer are the base of the business. Depending on
the criteria of the customers, the company order the products and depending on the orders of
the company the supplier supplies the product.
Macro environment
There are many factors in the macro environment of the online marketing. The factors are as
follows,
Social factors: In this the company as to take good care of the social factors like the
company should not add anything in the shopping website that harms the culture of the
society (Cao and Zhang, 2011). The buying behaviour of the customer plays a vital role in the
field of business.
Legal and ethical issues with internet usage
The usage of the internet must be maintained properly. It is so because there are many pros
and cons in the field of the online business. There are certain types of behaviour which are
mainly tolerated and accepted by the society around the use of the internet.
Technological factors
Online companies can adopt any of the three following courses
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 Cautious approach
 Fast follower approach
 First mover approach
There are some security system that must be ensured while using the internet,
 Identification of the use
 Privacy and confidentiality of e-commerce practice
 Transaction completeness
 Continuing the business without interruption
Economic and political factor: These factors must be taken under the matters of concern
where the business may deal with the financial condition of the company and the customers
and the rules and regulations of the government in order to continue an effective run in the
business.
SWOT
Strength: The main strengths of The Iconic is their quality of the product and the collection
of the product. These two features have made the company different from the other
companies.
Weakness: The main weakness of the company is their time of delivering the products to the
customers.
Opportunities: The Company may expand the business in the outside of Australia in an
effective way. It can be said that the outside marketing field of the country is the main place
where the company may expand the business.
Threats: The main threat of the company is the competitors of the company (Cibinic et al.,
2011).
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The segmentation, targeting, positioning of ‘The Iconic' falls into the category of strategic
planning. In online marketing, market segmentation is concerned with customer
segmentation. Initially, the organization needs to build a client profile for segmenting the
type of clients. It is known as demographic segmentation. The process is a classical,
traditional marketing approach. Moreover, it is important for the company to target the
customer value current and future. In online marketing, the customer buys garments, but
today only fashionable and trendy clothes are sold by other online companies. The Iconic
needs to sell stylish clothes because youngster knows how to buy, surf clothes from an online
company. Therefore, the target customers for ‘The Iconic’ should be youngsters. The
organization can sell a mixture of traditional clothes and trendy clothes so as to satisfy the
demands of all types of customers. Online companies of Australia like Booktopia, Big W,
Catch of the Day and so on are the main competitors of ‘The Iconic’. Apart from these, the
company have to build a brand strategy that will help the organization to define how their
customers see their business and products. Most importantly, the plan helps a company stand
out from the competition as well as helps in avoiding having to compete on price (Howard,
2010).
The Iconic needs to determine a unique marketing proposal and it will be a foundation step in
any good brand strategy. Moreover, the objective of ‘The Iconic' is to differentiate their brand
from other competitors. The objective also states that the company should provide their
customers with a reason to purchase a product from them. Besides that, it should highlight a
story. In the case of the target market, the company must build an idea to sell the same
generic product to all the customer who is buying online. The particular approach assumes
that the customers have similar requirements about garments and clothes on a specific
category of product. The primary advantage of selling the same clothes is low cost as a result
of economies of scale.
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The main objectives of the company are as follows,
 To expand the business to an international level of business
 To improve the delivery service
 To include more brands in the business
 To be up to date with the current trends.
Marketing mix
It has 4 parts like price, product, place and promotion. The iconic needs to set an offer on the
products and represent them to the customers. Moreover, the company needs to be upgraded
with the current trends that is going on in the market for satisfying the customers. The
business needs to be more accurate in the field of choosing the market place in the website of
the internet. At last, based on promotional strategy, the company must use the platform of
social media to be effective in the minds of the customer (Provenzano, 2012).
Implementation
The Iconic needs to execute several relevant activities to implement the planned strategies.
Activities such as pursuing AdWords and PPC campaign is essential for the online company
to build a brand value among the customers. In recent days, AdWord is becoming
increasingly competitive, and the marketers have to sniff around for treasures. AdWord
strategy can be achieved by testing the market audience. Besides that, the idea behind this
feature is to provide an allowance to the advertisers to look beyond the demographics and
target users who have demonstrated that they are in the market for a particular product. The
Iconic needs to identify when a visitor is actively comparing and researching products. The
company can leverage the data to advertisers so that they can help the company to spread
their brand across the potential customers on various sites across the web (Sparrow, 2013).
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On the other hand, PCC campaigning can also help the online company to grab their potential
customers. PPC campaigning is known as Pay-per-click or cost per click. The strategy is an
internet advertising model implemented to direct traffic to websites. Here, the advertiser pays
a publisher when the ad is clicked once. The process is associated with the first-tier search
engines like Google AdWords as well as Microsoft Bing Ads. Moreover, the advertisers bid
on the keyword phrases pertinent to their target market. Initially, ‘The Iconic’ needs to
determine their goals to determine whether their objective is to increase sales, subscribers as
well as brand awareness. It is important for the company to know about their target before the
start the PPC campaign. Moreover, ‘The Iconic' must define their budget which will help
them to track their investments on the campaign. Additionally, the company should make a
list of keywords. It is a most vital requirement for the success of any PPC campaign.
Appropriate keywords can promote an online business successfully with the aid of PPC
campaign. The Iconic can make a huge profit by selling large number garments to the
customers worldwide.
Budget and evaluation
The table below provides a budget for the promotion of the products of ‘The Iconic' to their
potential clients.
Activities Amount (in $)
Adword 2000
PPC Campaign 3000
Website development 5560
Adding extra features 1000
Website maintenance cost 1500
Planning and Budgeting are the foundations for continuous improvement of a company's
financial health. Moreover, it is a critical component to transforming any finance
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organization. Budget plans, as a rule, speak to a point by point examination of how an
organization hopes to invest cash in future energy periods. Many organizations make budget
plans on a yearly premise so they can painstakingly lay out the common needs of every office
in the business. A real advantage to utilizing a business budget plan is the capacity to the
point of confinement how much cash is spent on specific operations. Utilizing a yearly
budget process additionally restricts the measure of time organizations spend making and
overseeing capital assets. Albeit bigger organizations may have utilized bookkeepers or
different experts to make the business budget plan, entrepreneurs are usually mindful to finish
this capacity themselves. Budget plans as a rule tally cost records to guarantee that capital is
not wasted on unessential things or the organization does not overpay for financial assets
utilized as a part of the business. Restricting the measure of money spent by the company
may require proprietors and chiefs to discover new sellers or providers for procuring business
inputs, sparing cash and meeting budget limits. The Iconic often utilize resources to plan for
future growth of business (Spitas, Spitas and Rajabalinejad, 2013). The company can use
budgeting for their future growth opportunities, and it ensures that the organizations have
capital on when the company needs to make quick decisions for the business expansion.
However, the money may also be used during slow economic times because the company
needs a safety net for paying regular expenses in the firm.
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References
Advice, rules and regulations for setting up an internet pharmacy. (2015). The
Pharmaceutical Journal.
Awards for improving the coastal environment. (2007). 1st ed. Copenhagen: Foundation for
Environmental Education.
Beckett in the cultural field =. (2013). 1st ed. Amsterdam: Rodopi.
Borek, L. (2011). Team structural constellations and intra‐team conflict. Team Performance
Management: An International Journal, 17(7/8), pp.405-417.
Cao, M. and Zhang, Q. (2011). Supply chain collaboration: Impact on collaborative
advantage and firm performance. Journal of Operations Management, 29(3), pp.163-180.
Cibinic, J., Nash, R., O'Brien-DeBakey, K. and Nash, R. (2011). Competitive negotiation. 1st
ed. Washington, DC: George Washington University, Law School, Government Contracts
Program.
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Howard, P. (2010). Triangulating Debates Within the Field: Teaching International Relations
Research Methodology. International Studies Perspectives, 11(4), pp.393-408.
Provenzano, S. (2012). Top secret executive resumes. 1st ed. Boston, MA: Course
Technology.
Sparrow, J. (2013). The five key roles of managers: how HR can build engagement that lasts.
Strategic HR Review, 12(2), pp.83-88.
Spitas, C., Spitas, V. and Rajabalinejad, M. (2013). Case Studies in Advanced Engineering
Design. 1st ed. Amsterdam: IOS Press.
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