Detailed E-Business Plan Report for Roadie Clothing - University Name

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This report outlines the e-business plan for Roadie, a new online clothing company. It begins with an introduction and background on the company, highlighting its mission to offer creative and functional outdoor clothing. The report details the company's aims and objectives, including a focus on international expansion and a cost-effective business model. It includes a comprehensive market analysis, identifying target customer segments and discussing potential problems and solutions related to online clothing sales. The plan also covers competitive advantages, marketing and sales strategies, financial projections, and a conclusion summarizing the key aspects of Roadie's e-business venture. The report emphasizes the importance of marketing, customer service, and financial planning for the success of the online business.
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Running head: E-BUSINESS PLAN
E-Business Plan
Name of the University:
Name of the Student:
Author Note:
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1E-BUSINESS PLAN
Table of Contents
Introduction................................................................................................................................2
Background............................................................................................................................2
Mission...................................................................................................................................2
Aims and Objectives..............................................................................................................2
Company Summary....................................................................................................................3
Business Model......................................................................................................................3
Products..................................................................................................................................5
Market Analysis.........................................................................................................................5
Market Segmentation.............................................................................................................7
Common Problems.....................................................................................................................7
Probable Solutions.....................................................................................................................8
Competitive Advantages............................................................................................................9
Marketing Strategy.................................................................................................................9
Pricing Strategy....................................................................................................................10
Sales Strategy.......................................................................................................................10
Sales Forecast.......................................................................................................................11
Financial Projections................................................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13
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Introduction
Background
Starting an online clothing business is a fun way of making money. One can start the
business by using one of the growing online sales platforms. Roadie, a new clothing business
store, is planning to eliminate their middle men and in turn, offer creative online clothing,
which is both beautiful and functional. The company has served millions of customer in the
last few years and now, it is planning to start its own online store, to serve the international
platform. Roadie’s unique designs, best fabric, styling and fashion sense have managed to
win the hearts of many shopaholics. Maggie Green and Monica Geller, owners of the
company, have over fifteen years of experience in the garment industry. In the upcoming
years, they are planning to make it huge.
Mission
Roadie’s mission is to present its target consumers with their best of clothing, styling
and designs, in the international platform. Starting from office parties to off day beach wear,
Roadie’s comfortable and durable clothing will make its customers feel and look wonderful.
However, before starting a clothing business online, the company needs to choose a proper
business structure and budget plan.
Aims and Objectives
The report throws light on the e-business plan of the company. The purpose of this
report is to present the problems of starting an online business, its solutions and competitors.
In addition to this, it consists of a budget plan, that is, the amount needed to launch the
business and the company’s competitive advantages.
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Company Summary
Roadie is planning to expand its business on the international platform, to gain more
customers. The company offers creative outdoor clothing for both men and women, which is
both beautiful and functional. Maggie Green and Monica Geller, owners of Roadie are
planning to generate a cost-effective program, which will eliminate the inventory cost. The
inventory costs will be handled by a third party, which will keep a track of its manufacturing
as well as shipping operations. Roadie will only process the orders of the customers and
receive the payment through online payment modes. The processed item will be sent to the
third party in order to be filled as well as shipped.
Roadie will be focusing on both clothing designs and marketing the items. The
company has start-up costs which consist mostly of marketing and designing. The company
has around $270,000 for investments and approximately $250,000 from a short term loan
plan.
Business Model
Start Up Funding Amount
Start Up Expenses $60,000
Start Up assets to fund $400,000
Total Funding Required $460,000
Assets Amount
Non-cash assets from start up $0
Cash Requirements $400,000
Additional Cash $0
Total assets $400,000
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Liabilities and Capital Amount
Liabilities
Current Borrowing $0
Long term Liabilities $250,000
Accounts Payable $0
Other current liabilities $0
Total Liabilities $250,000
Capital Amount
Planned investment
Investor 1 135,000
Investor 2 135,000
Other $0
Additional investment $0
Total planned investment $270,000
Loss at Start Up Amount
Expenses $60,000
Start Up Expenses Amount
Legal $1000
Stationery $500
Graphic Designer $5000
Office equipments $10,000
Computer Software $30,000
Website $10,000
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Others $3500
Total $60,000
Start Up assets Amount
Cash Required $400,000
Start Up expenses $60,000
Others $0
Total Requirements $460,000
Figure: Budget Plan
(Source: Created by Author)
Products
Roadie will be selling outdoor clothing for men and women, online. The company
offers outdoor clothing for every type of usage. The company is planning to focus on the
seasonal clothes on demand which includes; fleece outerwear, shoes, hats, shorts, party wear,
beach wear, formals, summer dresses, shirts, pants and more.
Market Analysis
In the past few years, women’s and men’s outdoor wear has contributed a lot to the
overall clothing industry. In addition to this, the ever increasing popularity of the digital
platform has benefitted a lot in increasing the number of the online stores for outdoor
garments. But the question is, will the customer buy something which they can only see over
internet? There are number of issues which come along with this. Customers feel that this
particular online buying concept is very difficult to grab. Majority of them have a mindset
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that once they buy the item and if it does not fit them, they cannot return it back. However,
Roadie Company believes that customers will love their unique process of buying products,
which is of great convenience and cheaper as well (Armstrong et al.).
The owners of Roadie, Maggie Green and Monica Geller, have introduced a unique
concept of buying clothes online, for their target customers. On buying products from the
company’s website, customers will be able to upload their pictures and check that if that
particular product suits their personality or not (Boone and David). They can customize the
colors as per their choice and moreover, the company has a new “try and buy” option, which
is absolutely free. In this “try and buy” option, the customers can order their item and try it at
the time; it is delivered to their destination. If the customers do not like their purchase, they
can instantly return it back to the delivery man. In addition to this, the company offers 30
days return policy, to those who are office goers and cannot opt for the “try and buy” option.
In the 30 days return policy, the customer can try the item later and if they do not like
their purchase, they can return their products within 30 days. The amount will be refunded to
their bank accounts, instantly. With its unique features, the company is now trying to focus
on their marketing segments. The marketing procedures include; traditional advertising
mediums, like newspapers, magazines and others. Furthermore, with the advent of digital
media, promotional activities have become easier (McKeever). Promoting the website on
social networking sites like, Facebook, Twitter and Instagram, will help the company in
achieving huge. The advertisements of the company will completely focus on the distinctive
style of clothing and unique pieces by Roadie Company. The logo of the company will also
play a crucial marketing tool for bringing in the customers to their website. Therefore, the
design of the logo must be unique and should grab the attention of the target customers
(Aaker and Erich).
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Market Segmentation
Roadie Company will be focusing on two distinct market groups of customers, who
will buy their clothing. Generally, youth drives the garment market, so the age group of 17-25
years is considered to be the most important group to attract to the company’s website. They,
generally have lesser money than the older groups, so the garments must be priced in
accordance with that. The aim is to have an inexpensive section as well, in order to cater to
each clothing group. The company’s logo must be its unique selling proposition. The initial
smaller purchases will increase over time (Pedersen, Esben and Wencke).
Another target group will be the matured section of the society that is from 30s to 40s.
Generally, this age group is considered to be a bit harder to pull into the company’s website.
However, in this segment the promotional activities must be different. The marketer should
promote savings, attractiveness and garment quality. Additionally, the company needs to
assure that the items will fit the customer’s personality and style. Moreover, it is crucial to
mention that the return policies are absolutely hassle-free as well as speedy (Shamsuzzoha et
al.).
Common Problems
Starting up an online business is not that easy. At the initial stages, proper marketing
techniques must be applied in order to promote the website on a large scale. Moreover, it is
immensely necessary to choose a proper business structure for getting benefitted on the long
run. Having an online clothing store will not make huge money initially. Some customers do
not like buying their necessities online, like clothing. The biggest problem is that, customers
feel they may not get good quality products (Cavusgil, Pervez and Ayse). Reviews are
sometimes, not reliable as well. In addition to this, size remains a bigger drawback when it
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comes to buying clothing and footwear online. Moreover, the sizes vary from brand to brand.
Therefore, this is a major drawback for online websites (DaSilva and Peter).
Furthermore, some customers may not get their items delivered on time. Delivery
personnel often arrive at times, when the customers are at their workplaces. This same issue
exists at the time of exchanging their products as well. Moreover, most of the e-commerce
sites have a particular delivery zone and do not serve at interior locations. Some customers
also complain about digital payment failures. Whether the customers pay via credit or debit
cards, digital wallets or net banking, the digital payment failures always stops the customers
from shopping online. In addition to this, some websites also charge additional taxes and
shipping costs, which prove to be a great deal for the consumers buying products online
(Guffey and Dana).
Majority of the e-commerce sites have unclear return as well as guarantee policies.
Therefore, customers have a tendency of not believing the authentic sites as well. As most of
the online websites do not mention their return and exchange policies, customers prefer
buying clothes from offline stores. The same applies for guarantee policies as well. In
addition to this, cyber security is one of the major problems over the internet in modern days
(Jang et al.). E-commerce sites keep a record of important customer data like their names,
phone numbers, address, bank details and more. Thus, it can be said that online shopping is
convenient, but there are several challenges as well, which Roadie Company needs to keep
under consideration (Goworek et al.).
Probable Solutions
Roadie must take certain initiatives before starting their business. The company has
unique features like trying and then buying. Moreover, it needs to grab the attention of its
customers by featuring its products online. The company should select its delivery zone, so
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that the customers may not face any issues later. In addition to this, the company should have
a fixed delivery time for the office goers. Furthermore, the company can also focus on
cashless transactions so that they do not face any issues related to digital payments. Another
important thing is, the company can include the taxes and shipping charges to the individual
products so that the customers do not have to pay any additional charges (Arrigo).
In addition to this, Roadie Company should make its return and product guarantee
policies clear, so that the customers can buy the products without any hesitations. Moreover,
cyber security is a major problem, in today’s scenario. Therefore, the company should install
special cyber security software, in order to keep its customers’ records safe and secured.
Furthermore, the company should manage its social networking pages on a daily basis, in
order to keep a track of its customers’ reviews and feedbacks. The company should also reply
to its customers’ queries and interact with them, quite frequently. Online shopping is far more
convenient and easy, therefore, Roadie needs to keep these factors into consideration, to grab
more customers’ attention (Berman).
Competitive Advantages
Roadie is planning to expand its business on the international platform; therefore, it
has huge competition in the market. The companies which have already achieved huge
popularity can pose a great threat for Roadie’s market expansion. Its major competitors are
Zara, Privalia and Mango (Cassidy). However, the company can implement certain strategies
in order to grab the international market.
Marketing Strategy
The company should focus on its marketing strategies more. It should promote its
activities on the social networking sites and most importantly, on fashion magazines.
Moreover, it can focus on the processing of their items and products. Building a concrete
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road to Roadie’s website is the most important job. It can also introduce new measurement
features, which will reduce the consumers’ confusion regarding the size of the products. The
company’s aim is to ensure consumers’ satisfaction with their online shopping experience.
Additionally, the owner of the company is planning to introduce a special feature, which will
reduce returns (Ferraro and Elizabeth).
Furthermore, Roadie Company has special offers for its first time users. Roadie will
offer a discount of 5% for the consumers, who are shopping from their site for the first time.
In addition to this, all the customers will get up to 10% off on purchases under $100 and 20%
off on purchases above $100. Moreover, the company will offer some seasonal sales as well,
in order to grab majority of the consumers’ attention. Such marketing strategies will help
Roadie gain huge popularity and appreciation as well (Finch).
Pricing Strategy
Initially, the company can segregate its pricing strategies as per the age group and
consumers’ preferences. This advantage will not have any negative impact on Roadie’s sales
profit. This will also help in absorbing some initial costs of offering lucrative discounts
during the first three operating months (Gloor).
Sales Strategy
Roadie is planning to launch an advertisement campaign to grab the attention of the
targeted customer groups. The main focus of the advertisements will be to get quality
products at affordable prices. The company’s attractive logo will be displayed heavily in
these advertisement campaigns (Murphy). Roadie Company will offer lucrative discounts at
different times of the year in order to even out the seasonality as well as build awareness of
their website (Burns, Kathy and Nancy).
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