Business Plan: E-commerce Strategy for Brazilian Goods in Australia

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This business plan outlines the strategy for launching an e-commerce business in Australia, specifically targeting Brazilian consumers with traditional goods. The report includes a comprehensive industry background analysis, examining the growth of e-commerce in Australia and identifying key trends such as smartphone usage, and customer-centric marketing. A detailed market analysis is provided, focusing on segmentation and positioning strategies to effectively reach the target demographic of Brazilian women aged 20-40. The market plan objectives include increasing market share and sales revenue. The plan also details the target market, marketing mix (pricing, place, product), and market communication strategies. Barriers to entry, such as competition and political conditions, are also considered. The plan proposes a skimming pricing strategy, online sales channels, and a focus on product quality to attract and retain customers. Finally, the plan outlines the metrics and controls necessary for monitoring performance and successful implementation.
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BUSINESS PLAN
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
BUSINESS DESCRIPTION............................................................................................................3
INDUSTRY BACKGROUND........................................................................................................3
Defining existing products.....................................................................................................3
Sizing industry........................................................................................................................4
Important trends......................................................................................................................5
Anticipating Barriers to Entry................................................................................................6
MARKET ANALYSIS....................................................................................................................6
Segmentation..........................................................................................................................6
Positioning..............................................................................................................................7
MARKET PLAN STRATEGY.......................................................................................................7
Market plan objectives...........................................................................................................7
Target Market.........................................................................................................................8
Market plan Mix.....................................................................................................................8
Market communication plan...................................................................................................9
Budget...................................................................................................................................10
Metrics and controls.............................................................................................................11
Implementation of plan.........................................................................................................11
REFERENCES..............................................................................................................................13
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EXECUTIVE SUMMARY
The study includes description of business which is going to enter in Australia in e-
commerce industry. It will provide traditional goods to Brazilian consumers those who live in
Australia. Description of business and industry analysis is done in the report, furthermore market
analysis of new business is being describes in the study.
BUSINESS DESCRIPTION
Import of traditional goods and engaged in e-commerce business both have high
opportunities in Australia. Government of nation is providing support to online firms so that they
can contribute well in the economic development of nation. Imports of traditional goods include
several products machines, engines, chemicals, food, manufacturing products etc. It is estimated
that online business will grow 19% in coming years worldwide. Sales of liquor is being increased
by 15%, appliance by 17%, as compare to previous year in Australia.
New business is going to operate in Australia, in this nation there are many Brazilian
citizens live. Firm will offer Brazilian traditional goods to the Brazilian customers those who live
in Australia.
INDUSTRY BACKGROUND
Defining existing products
Australian e-commerce business is growing well since long time, in the year of 2016
online selling of industry has been increased by US $13.4 billion. E-commerce business has
grown by 7.5% as compare to 2015. Despite of economic fluctuation still online selling of goods
is increasing consistently. It is estimated that till 2017, e-commerce business will reach US$15.1
billion. Internet is changing environment of companies. Brazilians persons like to use traditional
products and they buy it through online platforms. Consumers are taking much interest in buying
traditional good online rather than purchase it from retail stores. Moreover, customers are able to
compare products of different companies through online medium (Sandberg and Håkansson,
F2014). In such highly competitive environment firms have to offer them attractive discounts so
that they associated with entity for long time and do not move to other brands. Traditional goods
are much more in demand which is offered by Australian e-commerce corporations. More than
half population of Australia and Brazilian persons use internet frequently. Traditional goods
involve books, home electronic, flowers, toys, tickets, music, financial services et.
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Amazon- It is one of the biggest e-commerce company which offers, TV, Tablets, phones
etc. good online and consumers buy these products frequently that shows in its revenues.
In the year 2015 Amazon has earned 107 billion profit (Żyto, 2016).
Ebay- it is another Australian e-commerce firm which sales its products and services
through online platform. It manages its online auctions effectively. In the year of 2015
cited firm has earned revenues of 8.59 Billion.
Webnexs- It is leading e-commerce brand which supports consumers in comparing goods
from other companies and making their choice effectively (Grygiel, 2015).
Sizing industry
Illustration 1: Market size
Source: (Żyto, 2016)
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Illustration 2: Industry size and growth
Source: Ruggieri, Silvestri and Piccarozzi,2014)
Important trends
Advanced technological era supports firm in gaining high revenues. Online shopping
supports clients in saving time and purchasing goods in cost effective manner. It is the belief of
Brazilian consumers that they need quality products at less time period. They like to save their
time and want to purchase it in cost effective manner. They compare products with other brand
before buying any item (Sloughter and et.al., 2016). Important trends are e-commerce business
in Australia are as following:
Smartphones: It is the main demand of Brazilian consumers those who live in Australia.
Young people purchase smartphone online by comparing prices and features of the phone
with other brands. It needs to be priority of new e-commerce firm and they have to offer
smartphones of all brands to consumers so that they feel happy from this site (Alkaabi
and Dixon, 2014).
Instant delivery: E-commerce firms are required to provide instant delivery to consumers,
it will support in attracting more people towards the brand. If company deliver goods on
time then it creates positive image in the mind of Brazilian consumers those who live in
Australia.
Customer centric marketing approach: Firms which are engaged in the e-commerce
business they will have to pay attention on marketing (Nisa and Ravichandran, 2013).
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Effective promotional plans can supports entities in gaining attention of mass audience
and making them satisfied towards the brand..
Anticipating Barriers to Entry
Internet and online platform is all about to gain and meet with expectations of consumers.
Anyone can get entered into this business immediate. It is very easy to enter in this industry
because entry cost is low as compare to other business (Narayan, 2013.). But before entering
into in this field new e-commerce firm is required to make group of Brazilian customers so that it
can earn profit and it is required to adopt effective marketing strategies. In the absence of these
aspects firm can not be able to meet with the objective. Online selling business is considered as
sensitive and creative as well. It can help corporation in gaining competitive advantage
(Narayan, S., 2013).
Political condition of Australia can get changed any time thus, it is barrier for the new
firm because due to which entity fails to enter into this market effectively. Brazilian consumers
those who live in Australia may adopt living culture of Australia. Thus, it may be possible that
company fails to target these people effectively. For that it is essential to understand requirement
of persons an accordingly it has to offer them traditional goods.
MARKET ANALYSIS
Segmentation
The segmentation is a process which is need to be undertaken for evaluating and
categorising various customer groups in order to follow market activities. The main aim of this
term is to make better understanding and satisfy the need and expectation of each consumer. The
E- commerce business is popular growing at large scale. To make more profitability, new e-
commerce firms id required to segment that consumers, it can be done on the bases of following
aspects:
Geographic- there are various kinds of people who are having different choices. In this way
segmentation can be done in country, region, state and city. This all activities largely depending
on scope of business.
Demographic- this is also essential factor in relation to determine different role and behaviour of
person. It can be measure on following grounds are as gender, age, income, education level etc.
this are the major factors which work in manner to influence the mind of individuals.
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New e-commerce firm which is planning to enter into Australia and sell Brazilian
traditional goods to Brazilian citizens those who live in Australia. Demographic segmentation
will be done by the new e-commerce firm. It will concentrate on age element and will target
women those who are between 20-40 years old. All these women are working women and self
depended.
Requirement to market segment
It is very crucial process in order to ignore overlap in marketing activities. It can be done
in following manner are as-
Accessibility- It should be in reachable manner. There is need to understand the needs of
consumer and habits of target consumer (Alkaabi and Dixon, 2014). In this manner the
geographic distribution channel is need to be considered. By targeting the Brazilian women those
who live in Australia, cited firm will be able to understand their specific needs which may help
the entity in offering same traditional products which they want.
Action- at this level the lots of question will arise like satisfy the need of market segment. The
overall activity of e- commerce business plan defined by action of this firm.
Positioning
The main aim is to need to make proper identification of appropriate market in order to
make effective distribution of good and services. It helps in the manner to establish product or
service in the eye of customer (Grygiel, 2015). The main aim is to designing the company image
in the target market mind. It is very important element in order to enhancing the market share
and profitability and productivity of business. New business will use product characteristics and
pricing positioning strategy. By offering products as per the needs of Brazilian consumers those
who live in Australia cited firm will be able to sustain in the market for longer duration. Pricing
as positioning strategy will be beneficial for new business because by this way it will be able to
attract more people and make them loyal towards the brand.
MARKET PLAN STRATEGY
Market plan objectives
The main aim of new e-commerce firm is to successfully establish its business in
Australia and gain attention of Brazilian consumers those who live in Australia from longer
period. The main objective of new e- commerce business is as following:
Increase in number of market shareholders in Australia
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Increment in sale revenue by targeting Brazilian consumers hose who live in Australia.
Expansion of e- commerce to gain online sales by 5%.
To make effective coordination with existing vendors (Nisa and Ravichandran, 2013).
The main aim top enhance company growth and increment in profitability.
To make more amount of productive and profitability in market.
Target Market
The target market means to make proper identification about people who really wants to
or what is offering by firms. Before setting business it is essential to find out need of people and
target market as per their requirement (Narayan, 2013.). It means targeting the market by
conducting proper research in order to sell their product and to earn maximum amount of profit.
A well defined target market is the crucial element which define as marketing strategy. It is
important in manner to development of marketing plan (Nisa and Ravichandran, 2013). Target
marketing works as breaking market into segments so that selling activity can be taken
effectively and efficiently.
Target market of new e-commerce business is women those who are between 20-40
years. By targeting this particular session company can meet with its objectives. Women like to
buy online traditional goods and Brazilian ladies frequently purchase goods from online
websites. By targeting this particular group entity will be able to successfully establish its
business in Australia.
Market plan Mix
The term marketing plan is inclusive of following process are as-
Pricing- it is essential factor. It defines the value of product in order to determining the
price of product it is to be decided. This means how much is to be charged by company.
It plays very vital role, at the time of setting price of product once need be prepared for
change strategy as per fluctuations market. New e-commerce business is planning to
enter into Australia, It is targeting the Brazilian consumers. Brazilian people like to buy
high quality products at affordable rates. Skimming pricing strategy would be better for
the entity because by this way it will be able to gain their attention and making them
loyal towards the brand.
Place- the another important feature is that at where product will be available to
consumer. At this level lost of market research is need to be taken (Alkaabi and Dixon,
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2014). The target market decide the type of product they want to sale. The main objective
of company is to sell product as many customers as possible. Company is not required to
research for particular place. It needs place in official e-commerce websites or others. By
this way it will be able to target Brazilian consumers those who live in Australia.
Product- The product can be taken as a thing, what the company is trying to sell out by
making many policies in relation to this. The product should be qualifies and have unique
identity in market (Narayan, 2013.). It should have the capacity to satisfy the need of
customers. The innovative feature must be added in order to face rivals of market. It
needs to offer variety of traditional goods as per the requirements of Brazilian consumers
those who live in Australia. It will provide mobile phones, jeweller, books, clothes etc.
Apart from this, cited firm will also provide quality and immediate services. It will offer
free delivery services and attractive discounts facilities to its consumers.
Promotion- This is last and very important feature of marketing mix. Without this it is
hard to aware the customer about the uses of commodity (Al-Rabayah, 2016). The
promotion activity is need to be taken at very good level so that numbers of consumer can
get attracted towards it. Promotion needs to be done through social networking sites.
Cited firm can use Facebook and Twitter to promote its business in Australia. Brazilian
and Australian consumers use internet frequently and they buy products online most of
the time. Because they think that it saves their time and money as well. By using social
media promotional techniques and promotional camps cited firm will be able to establish
its busies in Australia successfully.
Market communication plan
Marketing communication plan is one of the most important part, effective planning
supports organization in entering into new market (Nisa and Ravichandran, 2013). If the
company enters into Australia then it needs to identify needs of consumers. It needs to coordinate
with Brazilian and Australian consumers through advertisement and social media networking. It
is one of the best way through which firm can enter into this industry and market (Business
Metric or Key Performance Indicator? What's the Difference?, 2017). It will develop its face
book page and will get attached with Brazilian people. It will communicate with them and will
offer them gift cards on their first purchase. By this way persons will take interest and they will
definitely buy company's traditional products.
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Budget
Expenses
Year 1 Year 2 Year 3
Salary - sales personnel (technical
team)
20,34
0
21,35
7
22,7
81
Salary - errand personnel
6,78
0
7,11
9
7,5
94
Expenses in development in website
6
00
60
0
7,6
00
Technical installation
4,95
0
4,95
0
4,9
50
Electricity expenses
20,40
0
21,42
0
22,8
48
Water expenses
18,00
0
18,90
0
20,1
60
Staff meal
12,00
0
12,60
0
13,4
40
Salary - functional managers - -
67,1
22
Stationery and other materials
1,86
0
1,95
3
2,0
83
-------------- --------------- ---------------
Total
84,93
0
88,89
9
168,57
8
Profit and Loss
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Note Year 1 Year 2 Year 3
Revenue 5 505,600 557,419 670,350
Cost of sales 6 151,192 158,752 169,335
-------------- -------------- --------------
354,408 398,667 501,015
Administrative expenses 7 84,930 88,899 168,578
Selling expenses 8 58,200 72,360 163,934
-------------- -------------- --------------
Operating profit 211,278 237,408 168,503
Corporate tax 4 52,820 59,352 42,126
-------------- -------------- --------------
Net income 158,459 178,056 126,378
Metrics and controls
Management will take feedbacks from Brazilian consumer those who live in Australia, on
the bases of feedback company will modify its operations and services. Company will measure
its performance on the bases of key performance indicators such as profit ratios, consumers
satisfaction level etc and accordingly implement the plan.
Implementation of plan
Key Activities
1st
Wee
k
2nd &
3rd
Week
4th
Wee
k
5th
Wee
k
6th
Wee
k
7th
Week
8th &
9th
Week
10th
Wee
k
11th
Wee
k
12th
Week
Business
Registration
Purchasing of
equipments
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Appointing
employees
Allocating
responsibilities
Development of
website
Connection with
suppliers
Developing
marketing
activities
Promotion
through social
media
networking
Obtaining
feedback from
customers
Bringing
modification in
the service range
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REFERENCES
Books and Journals
Al-Rabayah, W. A., (2016). Using Social Strategy to Retain Customers: Cases and
Tips. Strategic Uses of Social Media for Improved Customer Retention. pp.246.
Alkaabi, S. K. & Dixon, C., (2014). Factors affecting internationalization decision making in
family businesses: An integrated literature review. Journal of Applied Management and
Entrepreneurship. 19(2). pp.53.
Grygiel, M., (2015). The conceptual metaphor BUISNESS IS WAR in Business English. Im
Wirkungsdeld der kontrastiven and angewandten Linguistik. In the Field of Contrastive
and Applied Linguistics. 6. pp.65-78.
Narayan, S., (2013). Mobile Payments: Comparison of Mobile Wallet Concepts.
Nisa, S. & Ravichandran, N., (2013). Business Model: Concept and Evolution. Amity Global
Business Review. 8.
Ruggieri, A., Silvestri, C., & Piccarozzi, M. (2014). Consumerism, Market Analysis and Impact
on Business Plan Definition.Marketing and Consumer Behavior: Concepts,
Methodologies, Tools, and Applications: Concepts, Methodologies, Tools, and
Applications. 228.
Sandberg, K.W. & Håkansson, F., (2014). Barriers to adapt eCommerce by rural
microenterprises in Sweden: a case study. International Journal of Knowledge and
Research in Management and E-Commerce. 4(1). pp.1-7.
Sloughter, J. M. & et.al., (2016, October). Designing a sustainable business plan for an off-grid
energy kiosk in Chalokwa, Zambia. In Global Humanitarian Technology Conference
(GHTC), 2016 (pp. 401-405). IEEE.
Żyto, M., (2016). Holistic Marketing and Lean Management–Correlation or Misspecification in
Company X. Browser Download This Paper.
Online
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Business Metric or Key Performance Indicator? What's the Difference?, 2017. [Online] Available
through: <https://www.klipfolio.com/resources/articles/what-are-business-metrics>.
[Accessed on 21st September 2017].
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