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Box n Gift

E-business in the EU Erik Pollet


Birgit Hellebuyck, Sara De Waele, Scarlett Allen,
Mathilde Volcke & Jean-Philippe Copers

Artevelde University College Ghent


International Business
3ION01

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Table of contents
1. BOX N GIFT ................................................................................................................................ 4
2. THE MISSION, VISION, OBJECTIVES AND STRATEGY .................................................... 4
2.1. THE MISSION ......................................................................................................................................... 4
2.2. THE VISION ............................................................................................................................................ 4
2.3. OBJECTIVES ........................................................................................................................................... 4
2.4. STRATEGY .............................................................................................................................................. 5
3. THE BUSINESS MODEL ............................................................................................................ 5
3.1. VALUE PROPOSITION: ........................................................................................................................... 5
3.2. BASIC MODEL: ....................................................................................................................................... 5
3.3. REVENUE MODEL: ................................................................................................................................. 5
3.4. MARKET OPPORTUNITY........................................................................................................................ 5
3.5. COMPETITIVE ENVIRONMENT .............................................................................................................. 6
3.6. COMPETITIVE ADVANTAGE .................................................................................................................. 6
3.7. MARKET STRATEGY .............................................................................................................................. 6
3.8. ORGANIZATIONAL DEVELOPMENT ...................................................................................................... 7
3.9. MANAGEMENT TEAM ............................................................................................................................ 8
4. THE TARGET AUDIENCE ......................................................................................................... 9
4.1. WHERE .................................................................................................................................................. 9
4.2. WHO .................................................................................................................................................... 10
4.3. CUSTOMER PROFILE ........................................................................................................................... 12
5. THE BALLPARK ....................................................................................................................... 13
5.1. SIZE, GROWTH, CHANGES .................................................................................................................. 13
5.2. STRUCTURE ........................................................................................................................................ 13
5.2.1. COMPETITORS................................................................................................................................. 13
5.2.2. SUPPLIERS ....................................................................................................................................... 15
5.2.3. SUBSTITUTE PRODUCTS ................................................................................................................. 15
6. THE CONTENT ......................................................................................................................... 16
6.1. STATIC................................................................................................................................................. 16
6.2. DYNAMIC ............................................................................................................................................ 17
7. SWOT-ANALYSIS ..................................................................................................................... 18
7.1. STRENGTHS ........................................................................................................................................ 18
7.2. WEAKNESSES ..................................................................................................................................... 18
7.3. THREATS ............................................................................................................................................. 18
7.4. OPPORTUNITIES ................................................................................................................................. 19
8. THE E-COMMERCE MAP ....................................................................................................... 19
8.1. WEB SITES .......................................................................................................................................... 20
8.2. E-MAIL ................................................................................................................................................ 20
8.3. SOCIAL MEDIA .................................................................................................................................... 20
8.3.1. FACEBOOK ....................................................................................................................................... 20

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8.3.2. TWITTER ......................................................................................................................................... 21


8.3.3. INSTAGRAM ..................................................................................................................................... 21
8.3.4. PINTEREST ...................................................................................................................................... 21
8.3.5. GOOGLE + ........................................................................................................................................ 21
8.4. OFFLINE MEDIA .................................................................................................................................. 21
9. DEVELOP A TIMELINE: MILESTONES .............................................................................. 22
9.1. PLANNING ........................................................................................................................................... 22
9.2. WEB SITE DEVELOPMENT ................................................................................................................. 22
9.3. SOCIAL MEDIA PLAN........................................................................................................................... 22
9.4. SOCIAL MEDIA IMPLEMENTATION .................................................................................................... 23
9.5. MOBILE PLAN ..................................................................................................................................... 23
9.6. BUSINESS PLAN .................................................................................................................................. 23
9.7. ACTIVATE SITE ................................................................................................................................... 23
10. THE COSTS ............................................................................................................................. 24
10.1. PLANNING ........................................................................................................................................ 24
10.2. WEB SITE DEVELOPMENT ............................................................................................................... 24
10.3. WEB IMPLEMENTATION ................................................................................................................. 25
10.4. MARKETING COMMUNICATION PLAN ............................................................................................ 25
10.5. SOCIAL MEDIA PLAN ........................................................................................................................ 26
10.6. SOCIAL MEDIA IMPLEMENTATION ................................................................................................. 27
10.7. PHYSICAL PRESENCE ....................................................................................................................... 27

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1. Box n Gift
Box n Gift is a company that is created by 5 students: Birgit
Hellebuyck, Sara De Waele, Scarlett Allen, Jean-Philippe
Copers and Mathilde Volcke. The idea behind Box n Gift is
that everyone can put together a box with gifts for a loved
one. They have the option to choose between several boxes
and the amount of items that they want to put in the box. The
customer can put as many things in the box for the amount
that he/she wants to spend. The webshop provides multiple
products that are adapted to each season and which are divided in gifts for her and
for him. After the customer has put everything in the box he/she can choose the
perfect delivery address, which makes the customer experience complete.
Website URL: http://birghell.wix.com/boxngift

2. The mission, vision, objectives and strategy


2.1. The mission
The company is generally focussed on the B2C business and is created to give the
customer the opportunity to find something special, unique and even better
something that is personal. We want to give our customer the opportunity to put
together a personal and unique gift by only using our webshop. They can shop with
us at any hour of the day or night without ever leaving their home.

2.2. The vision


The service that we give to our clients is made to give them a product that is unique
and that is personal. Besides that we want to make it easy for our clients to get the
product. By using a webshop it is possible for us to let the customer shop with us at
any hour of the day or night without ever leaving their home. By using a delivering
company we make the customer experience complete.

2.3. Objectives

We want to increase our turnover with 15% after the first year.
Each month we want to have at least 80 visitors.
Each month we want to have that 50% of our visitors become our customers.
After one year we want to see an increase in our brand awareness with 30%
After two years we want to widen our customer reach with our webshop. We want
to reach customers in the Benelux from which at least 15% of them have to live in
the Benelux but outside Belgium.

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2.4. Strategy
We are going to use a differentiation strategy, we will do this by delivering a unique
service towards our clients. By using this strategy we will differentiate ourselves from
the competition, which will result in an increase in our turnover and there will be more
visitors and customers. Besides that we are also going to use a cost-efficient
strategy, which will help us to get more clients. To get more brand awareness we will
make sure that we have a strong mark and a good marketing campaign.

3. The business model


3.1. Value proposition:
We provide our customers a product that is unique and personal. It is a product that
can be bought at any hour of the day our night and that without ever leaving their
home. We actually provide you a service that gives you an easy way out to buy
different gifts for someone. We offer our customers a variation of products, which are
offered at different and affordable prices. So what do we do? Well we provide you a
simple and fast way to buy an amazing gift for a loved one.

3.2. Basic model:


Box n Gift uses the E-tailer model as
its business model. Thats because
Box n Gift is a business-to-consumer
focussed business that sells products
by using an online e-commerce
platform. We are an online version of
a retail store, where customers can
shop at any hour of the day or night
without ever leaving their home. They
only have to connect themselves to
the Internet or use their smartphone to
place an order. Box n Gift only uses the Internet as a way to sell products to his
customers. With other words, we dont have a bricks-and-mortar shop. Because of
that we will concentrate us more on a specific model of the E-tailer concept, the
Virtual Merchant model.

3.3. Revenue model:


Box n Gift will generate profits and produce returns on invested capital based on the
sales revenue model. Thats because the basic idea behind Box n Gift is that
customers can go to our site and they can put together a personal and unique box
that is filled by different little products. So we generate returns by selling goods to
customers with the use of an e-commerce webshop.

3.4. Market opportunity


The intended market space Box n Gift wants to work in is of course the online
market for starters. We want to compete with other web stores that provide gifts but
still differentiate our self with the creativeness of our gifts assortments. If we look at

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the basis gifts we have such as perfumes, we dont have a lot of financial
opportunities to compete on that level with our customers. So here we ask around the
same price as our competitors. Because we can buy other goods in large quantities
we can ask a higher profit margin for those goods and here we see a potential
financial opportunity. Also because we deliver for free when you order over a certain
amount and because our delivery times will be faster than those other sites such as
Alixpress we can also create a opportunity here to attract a part of their Belgian
customers to our store. To find more information about our market we would like to
refer to 5.1

3.5. Competitive environment


Our intended marketspace is mostly occupied by big online companies. For instance
one of our biggest competitors is Aliexpress and Amazon.com. Like you know these
are two companies that are known all over the world and which have multiple
warehouses. The only weakness that they have is their delivery time. Another
example is Bol.com a web shop that is very close and even in our market. To find
more information about our competitors we would like to refer to 5.2.1

3.6. Competitive advantage


Box n Gift is website that wants to deliver next to the goods an excellent service.
Our site consists of the basic goods, where we cant really compete with other online
stores. But next to the basic goods we also offer goods that you dont find that easily
on the Belgian market. Most of those goods come from America or China and so if
they order these in the other web shops the chance is big that they have to wait for
several weeks for their package. If they order with us, we will make sure they have it
within the couple of days and if possible even the next day. On this level we will try to
compete mainly with bol.com that is a huge competitor for us.

3.7. Market strategy


Because of the fact that our customers are all using the Internet we will be using
social networks as a mainly way to promote our products. We will be using
Facebook, Twitter, Pinterest, Google Plus and Instagram. With these social media
platforms, we will maximize our possibility to reach our customers and besides that
we will be able to show our information in a different way. Besides that we will also be
sending some of our products to well-known bloggers and personalities. Because of
this our USP will get already some attention, which will lead to an increase in traffic
and in our sales figures. For more specific information about our market strategy we
would like to refer you to 4.2

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3.8. Organizational development


In the first year everyone in the company will work together, we will all be responsible
for some big functions. Two of our members will be busy with managing the shop.
They will be in charge of the products, they will have to make sure that everyone gets
the products on time and that the webshop is up-to-date. To send the packages to
our customers we will be using B-post. While another person will look for new items
to buy and to extend our product assortment. Sometimes this person will be helped
by one of the others in case of busy periods like the holidays. Besides these two
things we will also use one person to manage the financial part of our company and
another person will be in charge of the marketing or our company.
In the future we will look for more employees, certainly when we expand our market
reach. Besides that we will also focus us on possible improvements and on keeping
the clients satisfied. Another thing that we will be doing in the future is, that we are
going to make the functions more specific and we will look to use a delivery system of
our own.

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3.9. Management team


Looking at all the functions that have to be filled in in our company we can already
tell you that we will need a strong and diverse team. At this moment we are with 5
students which all have had a different study focus in high school.
These are the functions that will have to be filled in:
- Chief Executive Officer:
Everyone in our group will be part of the CEO function. At the moment we are
choosing for this because we want to start with a simple way of working and we
want to see teamwork.
- Chief Sales Officer:
Volcke Mathilde will be in charge of the sales department. For
this function you need to know how to close deals. Besides that
you also need to have a wide view on what the client wants and
you need to cooperate with all the other departments. Another
thing that is very important for a sales officer is to master
different languages.
- Chief Operating & Logistic Officers:
This department will be lead by Allen Scarlett and
Copers Jean-Philippe. They will have to make sure
that the website and webshop are up-to-date, besides
that their job will be to make sure that the customer
gets his product on time. They will be the once that
are in charge of the warehouse as well. First of all you
need to have had some IT training and a creative mind. For the logistics part you
have to be able to plan everything well and to be able to work together with other
departments.
- Chief Marketing Officer:
Hellebuyck Birgit will be our Chief Marketing Officer. To exert this
function in the best way possible, you need to know your target
group and market. You have to know your products and your
client.

- Chief Financial Officer:


De Waele Sara will have the function of Chief Financial Officer.
She will have to do the accounting of our firm. Besides that Sara
will also have to check if we are still working in a profitable way.
For this function you certainly need to have had some accounting
skills.

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4. The target audience


4.1. Where
Where our target audience resides is an easy question. As we are only an startup
company we have decided to limit ourselves to a single country to start with. This
allows us to deliver at high speeds, with great security and at low prices. This limits
our target audience severely, but it is necessary to first create a foothold and start
progressing from there. We chose for safety instead of looking for insecurity, since
we value customer service very highly. This should not stop foreign customers from
ordering from our store as we can deliver the goods to them, however we make clear
in our delivery policy that we are not liable for any delays or extra delivery costs. As
we do not advertise in any countries outside of Belgium we believe that the foreign
orders will be limited, but we do make sure that most orders can be fulfilled even if
special circumstances arise. These foreign customer contacts will mean a step into
these markets and could provide valuable information for possible future endeavors.
This means we have starting plans to invest in a foreign market, but these concepts
are all still theoretical instead of practical. We plan on watching our popularity and
success (locally) and will be expanding to nearby countries if the numbers are to our
liking. This will allow us ease into the foreign market by starting smaller marketing
campaigns in these selected countries. We will probably start with the neighboring
countries first and assess each countries individual success. If we dont see a
positive growth in the near future we will decide to pull out of the market and leave it
be for another time when we believe the time is right. Once successful abroad we
can scout for similar markets and introduce ourselves here. We will have to keep in
mind that each country will need its personal website as otherwise there could be a
communication error that we did not foresee. We believe online-gift market is quite
volatile and being the first to offer such a service (using the packaging as our Unique
Selling Proposition) could be our golden ticket to a decent market share. This
volatility also means that if we miss our window of opportunity that we might be
locked out of the market for a long time, thats why we decide to asses at a frequent
interval to look at the profit capacity of each country.
Currently because we work solely in Belgium, (except for special circumstances) we
have decided to work together with B-Post (the Belgian post delivery service) to
deliver all our packages. This co-operation has put us in a special position where we
can deliver at a fast rate and with a trustworthy partner. This also allows us to use the
B-Post tracking service to follow all your packages or returns. This is yet another step
in customer service that we offer coupled with the financial benefit of having a longterm relationship with a big delivery service. Being able to use all their services at a
reduced rate and allowing us to deliver packages ordered before 17.00 within 48
hours. When we decide to expand it would be opportune to find a foreign partner to
do our delivery, the service will be decided on what each company can offer us in
terms of service and fast shipping. Being able to rely on business relationships is an
important aspect in being able to have a trustworthy and reliable service towards the

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customer. These will also give us the ability to deliver at certain drop-off points further
centralizing our deliveries and services in certain parts of the country (in support we
also have a home-delivery).

4.2. Who
The who we are trying to reach art is a bit more difficult for us to determine.
Everybody has a need to buy gifts once and a while, but its a bit more difficult to
determine which people want to go the extra mile by getting a perfect fit gift box as a
supplement. From the research we did we discovered that we had the best chance
with two groups. Primarily old people and the early 20s to late 30s people. The first
group fell off quickly as we are a company based entirely on a web shop and no brick
and mortar shop. Even though the elderly loved the concept of giving the special gift
boxes, they were unable to purchase them due to that online nature of our company.
This left us with a direct demographic age group of the 20 to late 30 year olds. Which
should come as no surprise as dinner parties, birthdays and social gatherings often
require a gift from the invited party as this is expected by most people. We
discovered that this age group had the need for a gifting service, but were also
wishing to go the extra mile for their friends or family. They feel the need to give
something unique rather than something mundane. We at Box n Gift fill this hole
perfectly. The ability to reach an Internet active demographic that uses both mobile
means and the Internet to visit our web shop is a big plus. As research has shown
that this age group is also most inclined to purchase items online. This inspired us to
create a web shop, which is predominantly attractive to this age group, but also to
offer goods that both fit within the age group and are unique in their own way. These
people dont want to give mundane things to their friends, no they want to combine
usefulness with a sort of unique feature, all these steps are incorporated when we
offer items on our platform.
This one main demographic will however not be able to convert us into a profitable
enterprise, thats why we will assess our business after an interval of 6 months as to
see how popular we are with all age groups (using a feedback form) this should allow
us to expand our product line, but also change our marketing approach slightly as we
can adjust to possible profitable markets. However our first concern will be to gain
enough market share to keep existing. For this we will be using the concept of the 2030 year olds (our main demographic). Research has shown that this demographic
lives by the necessary lifestyle and shows the correct consumption and digital pattern
that we need for us to become successful. When looking at Business to Consumer Ebusiness the main users will be within our current age group, for them its no longer a
stigma as they grew up in the new online society and they discovered online
purchasing as they grew older. For them the threshold to buy online is much smaller
in comparison to the older generations, couple this with our protected purchasing
ability, our competitive pricing, our impeccable service and our unique selling
proposition then we believe we have a highly competitive concept ready for national
exposure. To maximize our exposure we will be adjusting our web shop to a mobile
version which has the same accessibility and user-friendliness as our website.

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Followed by a possible app creation if we discover a need for such an application (we
request feedback from whoever makes a purchase on what they would want to see
from us in the future). An extra added value is given to this demographic by the
consumption pattern shown. We see a use of online purchases combined with a
need for the products we deliver. As we mentioned before this demographic is most
likely to buy something unique for their friends, but more importantly they also go to
the events that require such a gift. This combination puts us at an excellent position,
an interesting feature that we could look at would be a concept in which we allow a
group of people to combine their funds to buy a bigger collection at once. This could
further increase the width of our demographic to people with a lower income and its
still a fairly new concept. This would be implemented based on feedback from the
customers or if we notice a lack of a certain age group that lacks funds. As said
before we will use the customer feedback for many things during our start-up as its
necessary for us to give an excellent customer service and get returning consumers.
This will increase our positioning, but also our image as we try to grow and gain
market share. As you can see from our primary idea we are using a very narrow
demographic, but we intend to increase this width as we gain the necessary feedback
and recognition.
As we are dealing with excessive Internet users we will be predominantly using social
networks as to market our product. This is only fitting as we are entirely e-commerce
based. The social networks we will be using are Facebook, Twitter, Pinterest, Google
Plus and Instagram. We believe these will maximize our possibility to reach our
demographic (as they are frequent internet and mobile users), but also to diversify
the way in which we show the information to our customers. Media such as
Facebook, Twitter and Google Plus should help in reaching our male demographic as
they are more likely to react to verbal information and Instagram/ Pinterest will be
used to mainly go for the female market as these visual media will make them react
heavier. These are just thoughts we have that are based on research done by third
parties, we believe in following the scientific approach here to increase our
marketable output. Combine this with the addition of Google Adwords in the initial
month of launch and we should create a remarkable web presence when people are
looking for gifts online.
As a way to get our foot through the door we will be sending some of our products to
notable bloggers and personalities. This way our USP will get some exposure before
we launch the site or just after the launch of our web shop, this should not only
increase traffic, but should also increase sales in an easy yet tangible way. Positive
reviews will start the buzz that we need to get off the ground as a company. We feel
this exposure will be a positive influence on our initial sales and should produce
some additional sales if we make sure the service we want to deliver is dully
delivered. Not only will this increase our direct demographic, but it could also get
media coverage for other demographics too, something we will desperately need if
we wish to acquire a decent amount of market share. In a way you could say that we

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use people as our primary marketing tool, because if you can create a positive hype
around your service or product. Then you could grow at an immense rate.

4.3. Customer profile


Age:

Between 20 and late 30

Nationality:

Belgian

Personality:

Sociable
Wide circle of friends and family
Often attend parties for which gifts are
required
Wants to give unique things
Has no issues with buying online

Income:

Medium to high income (money to spare


for gifts)

Professional life:

Students
Professionals
Mid to high ranged income

Internet usage:

High; both mobile and through computer

Social media:

Frequents blogs
Facebook
users,
Twitter
users,
Instagram users, Pinterest users,

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5. The ballpark
5.1. Size, growth, changes
As Box n Gift still is a recently active but small web shop. We are concentrating on
the local market first. As we have a web shop we cant really say we are localregional. For starters we want to sell in all of Belgium, so we want to become known
national.
We expect to grow within several years and create a new opportunity to expend our
selling market and go beyond the Belgian borders. Were intending to expand first to
our neighboring countries and then even beyond if possible. When we are hitting of,
we can even look for some storage places in other countries so we can deliver
products as soon as possible to our customers.
To keep our customers satisfied we would try to work with different themes and
adjust our assortments to it. Example, we are close to the Christmas period and try to
think about the things our customers would like to give to their friends or relatives.
We want to differentiate our web shop by providing besides to the usual gifts also
original gifts.
To keep attracting customers it is very important to be creative on our website and
also provide creative gifts. People want to give gifts that are original and arent that
easy to find. And on our website we provide that.
If we look at the global Internet market we see that there is a lot of competition so it
would be important for us to differentiate our self from them and make sure that
potential customers are also aware of our web shop.
To make our potential customers aware of our website we will start with the basic
tools to let the people know of our existence. For starters well create a Facebook
page and try to push the popularity by putting commercials on the Facebook banners
on the side.

5.2. Structure
5.2.1. Competitors
One of the biggest competitors to our web shop is Aliexpress. The website is very
known, especially for the young crowd. When you look on Facebook you see at least
three times a day someone asking about the site, how their experiences is with it, if
they are honest. Because of that mouth to mouth advertisement its increasing it
popularity. Also their prices are so low, it hard to compete with that. But one of their
weakest points is their delivery time. Another of our biggest competitors is Amazon.
They are a bit like Aliexpress. Also their delivery time is a bit longer than we can
provide. But then we have a competitor that is a bit closer to our market: Bol.com.
They are very well known and have an impeccable name. To can deliver the day
after, they keep you update if there is a delay (and this doesnt happen often) and the
delivery time they say is always correct.

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After looking at their weaknesses, we should turn them in our strengths. Especially if
we have to deliver we have to make sure we can deliver at least within 3 days and if
possible even the day after.

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5.2.2. Suppliers
List of our main suppliers:
Aliexpress
Amazon
EBay
Nordstrom.com
Urban outfitters
Bongo.com
Iwantoneofthose.com
Uncommon goods
ICI Paris XL

When we order with them, we order in bulk and always ask for a quantity reduction.
We want to make good agreements with them. Even though they are our suppliers
they are also our competitors and we are theirs. We dont have a completely similar
assortment, but some things resemble. Our biggest suppliers, but at the same time
competitors, are aliexpress and amazon.

5.2.3. Substitute products


Looking at the products that we sell, we can conclude that there are a lot of substitute
products. The products that we sell are normal products, which you can find back in a
lot of shops. For instance go to a perfumery and you will find 10% of our products
back or products that are almost the same. When you go to regular shops, you will
find substitute products back there as well. But looking at what we really are selling,
we can say that what we are doing is a service. We buy our products at large stores
and then put a basket together of products and send the basket to a delivery
address. So there arent a lot of substitute products if we look to our service as our
product. People can buy our products or substitute product in other shops, but they
will have to go to different shops and which will cost more time and eventually
money. But when people are going to buy there products online for instance on
Bol.com, than we can say that it is becoming a substitute product of our service. Here
Bol.com will also send the products but their service is still a little different from ours.
Taking that in mind we can say that we are offering a service that is almost exclusive,
so which has a small amount of substitute products.

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6. The content
So lets talk about the content for Box n Gift. Just like every site ours will have both
static and dynamic content. There is however a clear split between the places where
the different types will be visible. The products for instance will be mostly static while
the dynamic content will be found mostly on the homepage, Facebook, and other
social media. Here content will change regularly. Lets get down to the details.

6.1. Static
First we want to tell you
about the static content. This
content will mostly consist of
product descriptions. The
following picture is an
example of the different types
of static content. On this
picture we can see that every
product has a picture on the
left. On the right there is a
product name followed by a
description and small sales pitch. In this case there is an option for different prices
but on other products this could be the colour or type. The last 3 things on the
product fiche are the price, add to cart button and different ways to share the product
on social media. These products wont change on a regular basis. There could be
small ones every once in a while but this in not dynamic content.
A second big source of
static content will be the
contact page. Here we
start with the contact
form. Next to that is the
address. Since a business
doesnt move around
every five seconds this
will stay the same for a
very long time. At the
bottom of this site page
customers can find all the
store policies on shipping,
returns, tracking
All this content is definitely static. Might change every once in a while but it is not the
intention to do this on a regular basis.

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6.2. Dynamic
Here are some of the things
we want to change regularly.
This means new product
updates or other things that
are happening with the
company. There are 3 big
sources of dynamic content
for our web shop. Firstly there
is the sales section on the
Home page. Our company is
based on gift giving. It is only logical we will have sales related to big holidays such
as Christmas, mothers day, etc. The bottom of the home page will show the specials,
sales and products we are trying to push. This section will be visible by the banner
above 4 or 8 products that are currently on sale. There will be 4 columns and
sometimes there can be a 2nd row. Every product has a picture with the product
name, sale price and normal price. There will also be a stamp to emphasize the
percentage off.
A second place where content will be changing regularly would be the actual shop
pages. The boxes, for her and for him page will change every month. This is because
every month there will be new products added. There will also be products that are
removed when they dont meet the selling standards. Here the set-up is pretty much
the same for every page. There are columns of products with a couple of rows for
each page.

The last source of the dynamic content will be the social media platforms. At the
moment we have decided to set up 2 of the different types we could use. Updates to
Facebook and Twitter will occur at least once a week, making this the biggest source
of our dynamic content. The whole team has decided that there will be new products
every month. In the section about web presence we will discuss the purpose and use
of these social media sites in more details. Layout will be the same as any other
Facebook or Twitter account.

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7. SWOT-analysis
Now we will analyse the SWOT for Box n Gift. Making a SWOTanalysis helps us to identify things we have to take into account
in the near and distant future. It gives us an idea of the
competition. Because this is a web shop there are definitely some
very specific things we have to take into account. We could list
hundreds of different threats and opportunities but we have
decided to focus mainly on the biggest ones.

7.1. Strengths
What are the strengths of Box n Gift? The main strength is the product itself. There
are quite a few sites where you can buy one gift and wrap that but with our concept
you can order all different fun gifts and combine them in a cool box. By offering
different types of wrapping we can let customers decide which box suits the occasion
best. Another strength is that we offer normal presents, gift cards and even some fun
unconventional gifts. A last plus to the product itself is that it can be ordered to deliver
to the buyer or the person to whom they want to gift it. When they order they can get
the gift delivered to the right person at the right time. Speed and timeliness in
shipping can be a definite advantage to our store. It is a strong selling point to put
forward to our customers. Being an online store we can cut costs we would have to
spend on a normal brick and mortar shop. We can simply rent a storage space for the
products and have order pickers assemble the package. This reduces our operational
costs by quite a bit.

7.2. Weaknesses
One of the biggest strengths can also be a weakness. We do not control the
shipping. If something goes wrong with the shipper causing a delay could definitely
hurt our business image. Next to that there is still quite some distrust amongst
customers. It is still the biggest deterrent. The news is still filled with fraudulent seller
stories and faulty products. We feel that by consistently offering good products, we
can overcome this problem. A last weakness is shipping costs. We dont want to vary
these costs too much and as a starting business we wont have a big enough sale
volume to lower these costs. The only way to get these costs to diminish is to rise the
sale volume. If the shipping cost is too high people wont buy our products, too low
and we will lose profits. It is a case of finding the right balance.

7.3. Threats
Once of the biggest threats is always found in the competition. Customers could
simply prefer to buy a gift on sites such as bol.com and amazon. They also offer
wrapping but this is just on one product. They have the advantage that their bulk
purchases lower their selling price. There are also a lot of sites that offer fun and
unconventional gifts. Because the Internet is so accessible anyone can compete.
People dont even need to get their own site and sell products via eBay. We want to
distinguish ourselves by having a really big and varied gamma. Another threat is the
Internet. When the Internet goes down or there is a computer glitch, we lose our way

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to reach our customers. The odds of this happening are rather small but it is
something we have to take into account.

7.4. Opportunities
There are definitely opportunities to expand to other countries and continents. Right
now the focus would be here in Belgium but with time there are definitely
opportunities to expand. The second opportunity comes from the fast expansion of
technology. The Internet is constantly changing and developing. We will have to
opportunity to expand with an app where we sell our products. Maybe in the future
there will be a hologram technology that allows us to show the composition of the
baskets when we sell them. This is however speculation. Time will tell what we can
do in the future to get more sales and reach a bigger audience.

8. The e-commerce map


E-commerce is not only a PC-centric activity on the Web anymore; e-commerce is
now also possible on mobile phones and tablets. At the moment 80% of e-commerce
today is conducted using PCs, but smartphones and tablets use for purchasing items
is increasing. Smartphones and tablets are used by a majority of Internet users in the
United States to:
Shop for goods and services
Explore purchase options
Look up prices
Access social sites
Our customers use their mobiles and tablets at different times during the day and
involve themselves in different conversations depending on what they are doing.
These different places and conversations are touch points where you can meet your
customer and now you have to think how you can develop a presence in these virtual
places as well as on the PC.
You have four different kinds of e-commerce presence:
Web sites
E-mail
Social media
Offline media
Each of these types has different platforms on which they work and on which you
need to address the consumer. The most important once for us are web sites, E-mail
and social media. Below you will find back a short description of these three.

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8.1. Web sites


The first type of a presence is web sites. You
can have web sites on a traditional platform, a
mobile platform and a tablet platform. On
these platforms you can have different
activities: search, display, affiliates and
sponsorships. We created a website for our
concept http://birghell.wix.com/boxngift. On
our website we have general information
about our idea, but also a webshop in which we feature all our different products. Our
website can be accessed from a PC, from a mobile phone and from a tablet.
In the future we could start to use different websites to help us grow. An example is
Google AdWords. We can only start doing this in the future because now the profit
isnt high enough yet. Google AdWords is an online advertising service that places
advertisement at the top, bottom or beside the list of Google search results. We could
use Google AdWords to promote our site and create more potential clients.

8.2. E-mail
The second type of presence is email. This platform consists of internal lists and
purchased lists. We would like to send newsletters, sales promotions, special actions
to our current registered customers. Customers can register on our website. They
can this way improve their experience and stay loyal to us. The customers could
even tell friends about our web shop if they are very pleased with it. We wont use
purchased lists because it will be too expensive. We can send our customers these
emails on the PC, but most phones and tablets are connected to your mail account,
so you can also read the emails on different virtual places.

8.3. Social media


The third and most prominent presence at the moment for us is social media. The
different platforms are very diverse; you have Facebook, Twitter, Instagram, Pinterest
and many more. Social media networks were a novelty five years ago, but today we
cannot debate about how important they are. Social media marketing has to be part
of your marketing strategy. The benefits of using social media are enormous. It gives
the site an increased exposure, increased traffic, you can develop loyal fans, improve
your search ranking, improve sales

8.3.1. Facebook
We have already created a Facebook page for our website. It is important
to be active on Facebook. Facebook is the leading social media network
and it still continues to grow. 71% of online adults use Facebook, so we
will reach a large target with this presence. We can encourage people to
like our site and that way we can show them relevant information about Box n Gift
e.g. what is new, whats in promotion, etc. People can also share our page and get
more people to like us. Besides that we can give advice to people on our page. They
can ask us a question and we will answer it. Customers can furthermore write

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reviews if they wish it. You can use Facebook on your PC, but also on your mobile
phone and tablet.

8.3.2. Twitter
We also have a Twitter account. On this account we can post short
messages about Box n Gift and people can react on it, retweet it and
follow us. You can use Twitter on your PC, but also on your mobile
phone and tablet.

8.3.3. Instagram
We will make an Instagram account on which we will most our most
likeable gifts. People can repost our picture with a specific hash tag and
take a chance in winning the product. You use Instagram mainly
on your smartphone and tablet.

8.3.4. Pinterest
Pinterest offers a visual discovery, collection, sharing and storage tool.
We already made an account with all of our products on it. Consumers
can share their collections and inspire others. This way sales could
increase. You can use Pinterest on your PC, but also on your mobile
phone and tablet.

8.3.5. Google +
In the future we will also make a google + account. This will also reach a
lager audience and create more customers for us.

8.4. Offline media


The online media is much more important for us than offline media. But it could still
be relevant for us at some level. We wont make ridiculously high priced TV and radio
commercials, but we might us the folder and flyer system. E.g. at a certain important
day at school we could distribute folders and flyers. We could also go to a big city
and try to promote our site a bit.

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9. Develop a timeline: milestones


Its a good idea for you to have a rough idea of the time frame for developing your ecommerce presence when you begin. Our idea to make a web shop started in the
October. That is why we begin our timeline in October and go up until January. Here
are our different steps.

Idea and web


mission
statement
Social media
implementation

Web site
development

Mobile plan

Social
media
plan

Businees
plan

Activate
shop

9.1. Planning
We started planning our web shop on time. After our first introduction lesson we
already had an idea for our web shop. This was in the beginning of the semester.
Our idea was Box n Gift. You can find more information about our idea in the
beginning of the document. Later on we also envisioned a mission for our web shop.
The mission is to create a web shop focused on the B2C business and to create the
opportunity for customers to find something special, unique or something personal to
gift someone else.
After we thought of a good idea, we decided which site we would use to show our
idea on. We chose for the site WIX. WIX is one of the most popular website builders
and it gives us a very easy and affordable way to create our site.

Milestone

Idea and web mission statement

9.2. Web site development


The next step was making the web site. We created the site using WIX. We gave the
site a special look, and then we each looked up suitable products to put on our site.
We put general information and contact information in place and after a while of hard
work our website came to life. This step was done during the fall recess.

Milestone

Web site development

9.3. Social media plan


Step number three was making a social media plan. We sat down together after the
fall recess and discussed which social media platforms we would use.

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Our first thoughts went to Facebook, Twitter, Instagram and Pinterest. Social media
is definitely important in the business world.

Milestone

Social media plan

9.4. Social media implementation


The next step was actually implementing the social media. We each made a social
media platform that we could use. We made a Facebook page, a Twitter page, an
Instagram account and a Pinterest account. The happened in the week after the fall
recess.

Milestone

Functioning social media presence

9.5. Mobile plan


Next up was making a mobile plan. We made our website accessible for mobile and
tablet users. Our mobile plan is quite limited, but at least mobile users can also see
our site. It is important that mobile phone and tablet users can also visit our site
because the use of mobile phones and tablets has increased a lot in the last years.

Milestone

A mobile plan

9.6. Business plan


After all of these step it is very important to also create a business plan. This way we
can figure out if our efforts will work. In our business plan we will put general
information about Box n Gift. We will also state our mission, vision, objectives and
strategy. We will say which business models we will use and who our target audience
is. We will also mention the ballpark. A SWOT-analysis is also very important for us
to know what our strengths and opportunities are, but mostly to also know our
weaknesses and threats. That way we can try to avoid them or improve ourselves.
An e-commerce presence map is also important, we have already figured out what
social media we want to use, but there might be more possibilities to create a
presence. We will also take a look at the costs that we could have.

Milestone

Create Business plan

9.7. Activate site


We will activate our site for use on the 5th of January.

Milestone

Activate site

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10. The costs


10.1. Planning
Initially we started with setting up our web shop this happened on the 22 nd of October
together with our Facebook page. In the following weeks other social media pages
were added and the basic web shop capabilities were finished. The web shop is
updated in terms that we see necessary. After finishing this web shop we
implemented a Google AdWords campaign (search engine marketing) and this will be
activated after the website goes live in addition we will also be using Facebook
Analytics to analyse click through rates and where our visitors are coming from.
Other factors that need to be implemented is the purchasing, stocking and bundling
costs. The contacts with our suppliers/stock places have been running since the
start-up of our company and the terms have been agreed upon a while back. The
main costs that will be relevant are that of our physical presence, namely how we will
be stocking our wares and the subsequent transport to bring the wares from
warehouse (not realistic to think that our homes will have sufficient room to hold our
wares) to consumer. All the other factors concerning our online presence and the
sales of our product should be much lower, but nonetheless still extremely important.
Our income will of course be coming from selling our products and to make a profit
on our products we will be implementing a profit margin on our products and by
negotiating lower costs with our suppliers that are mutually lucrative. The profit
margin of our products depend on the base costs that we have to pay. Cheap items
that we get through our suppliers (foreign market) will often have a very high profit
margin for us as the costs are low and we can get away with asking more. The high
profile and expensive items (such as perfumes and gift cards) have no to very low
profit margins. This is due to the fact that otherwise these items wouldnt sell and we
have direct contact with our suppliers letting us use these items at their set prices. In
exchange we are allowed to buy these products at a slightly slower rate, but we have
to sell at their set prices. We take a potential financial hit on these products simply to
increase exposure and reputation. In the future these contacts may change and their
products disappear, however at the start its necessary to supply some well-known
products to our customers. This allows us to bundle certain products together
increasing our sales and margins across same type products.

10.2. Web site development


The early costs of creating the website our fairly low. As the first phase is actually
making the website you should know that we will be using the free version of Wix
during the design of the website and we will also be creating free social media such
as Twitter and Facebook at the start. These have no extra financial costs apart from
the usual internet and electricity costs we are already have (under our parents roof
and no direct cost for us). The most important investment during the design phase
will be the time that needs to be invested to create an attractive and user-friendly site
for our customers. This website builder also allows us to make a mobile version of
our website as well. A specific app for our site could be developed if we reach the

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necessary popularity. If we decide to develop this we will have to contact a third party
developer as none of us have any knowledge in programme coding.
The website is done by us and will not be done by an external designer. We have no
idea how long this will be done as with increased popularity there may be a need to
step away from doing it ourselves and searching for a professional to take over for a
while and create something even more appealing. But we dont believe this to
happen for a good couple of years and therefor have requested a proposal from any
website developers.

10.3. Web implementation


After launching our web site we will be updating the Wix site to the E-commerce
version of the platform which will put us at a cost of 16.17 on a monthly basis. This
costs may seem steep, but the analytical value that will be given to us should make
up for this cost. The main reasons for this is that the E-commerce version of Wix
allows us to implement Google and Facebook statistics. Allowing us to see where
customers are coming from (which social media, marketing campaign or even
physical location), but also what they are clicking and how much time they spend on
our website. This information is extremely valuable for those who know what to do
with it and will allow us to assess our web shop in a more efficient and objective way.
The website maintenance will primarily be done by us and have no direct costs linked
with it. This includes trying to fix any problems (improved support will be given by Wix
after updating to a paying model), update possible actions (Christmas products,
valentines day, ) , adjust prices and increasing our product width. These
undertakings will be handled between the 5 of us, and if it ever becomes too much
work to handle or it is needed to give it out to a third party this will be discussed and
the best option will be decided upon. But for a start-up this is not yet important.

10.4. Marketing communication plan


The normal e-commerce marketing campaign (not including social media) that we will
be using will manly consist of Google Adwords. As this is a tool that can be used
efficiently to get lower marketing costs, but also has the statistical value that gives
you information about the clicks you get. There are many keywords that we can use
to describe our web shop and terms that come up by optimizing our web shop. After
setting up the campaign we noticed that the terms we wanted to use are as a matter
of fact rather expensive. This made us adjust the location based model of this to
reach multiple smaller areas within Belgium instead of going for the enterity of
Belgium from the start. For example in Belgium as a whole a single click could cost
us up to 1.50 (for the first page results), but by adjusting the location to multiple
smaller regions we need to pay ranging from 0.02 to 0.10 per click (it is unrealistic
to think that we can compete with direct competitors by paying high rates). This takes
more time to set up inside the campaign but the exposure youll get for the same
price will be astonishing. We set a (maximum) daily budget of 5 to 10 depending
on the time of year (higher when there is a holiday period). These budgets may seem

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extremely low, but as a small starting company you cant pay high amounts every day
if you arent sure that these clicks will bring in any revenue. Therefor it is better to
have small exposure for a minimal budget, than blow your entire budget on AdWords
alone. If after a period of time we notice that the AdWords is the reason for most of
our revenue we will adjust these prices to a higher amount so we can reach even
more people. But going in blindly with high marketing costs can cost you your
financial security.
After a series of assessments we could decide to expand our marketing plan
(excluding social media) to something that would give even more exposure. Were
thinking about starting a local marketing campaign for the entire Belgium region and
starting an Email Marketing campaign. The latter of these two could be done from the
start by using a tool such as Mail Chimp and other tools to acquire a list of mail
accounts, however we dont feel like this would be effective as many people would
simply mark it as spam. We thought that choosing for a more careful approach would
be safer here. Namely by using the accounts of people that have already bought a
product with us to remind them of our existence and keep us fresh in their minds. The
possibility that this mail would be read instead of marked as spam would be higher
and there for a better response would be had. This extra investment in marketing
after the initial exposure could prove vital to the success of Box n Gift as a business.

10.5. Social media plan


In terms of social media we wish to have all our social media up and running by the
time the site launches. A month to two months after launch we wish to have a decent
social media platform for discussion with our customers, but also a decent
information platform to keep them informed. By using the 20%-80% of only using
20% for product pushing and 80% more based on customers and experience we
wish to create a positive social media presence that isnt just for selling, but a
platform for their customer experiences. Each social media off course has their own
way of conversing with the users and we will be adjusting our posts based on this.
The cots here are fairly low as social media are normally free to use after registration,
thats why the main cost here will be time and not financial. Taking care of a bunch of
social media takes up a lot of your time if we are somewhat successful. Thats why at
the start we will be handling this ourselves however if the load becomes too high a
community manager will be hired to take care of this fulltime.
We will also be implementing a more unique way of using social media to get early
exposure. In the weeks leading up to our launch we will be sending our products to
notable bloggers and internet personalities. These can review our product and
concept and hopefully this will bring some positive buzz. With some luck this could
make a cheap form of viral marketing in the weeks before our launch. However
positive reviews arent a certainty and it might be best to set up an embargo contract
(the chance for this is minimal as we are only the new kid on the block with barely
any credit to our names). Thats why we will have to make sure these packages are
top notch (mostly focussing on the special wrapping/boxes the products themselves

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arent as important). These costs will have to be covered for both transport and the
items. The cost of these will be dependent on the amount of people we wish to
contact, but a price of around 50 per package isnt unrealistic.

10.6. Social media implementation


After the launch the maintenance will be handled by us for as long as possible. It is
our wish to create a series of social media that let us have a platform for both
feedback and discussion with our customer (another important factor is off course to
get the right demographic with each social media platform. For example Pinterest
and Instagram are more visual and Facebook is more verbal, knowing the difference
between female and male customers is important here). The importance isnt to push
our products, the goal is to make the customer feel as if all their needs are being
listened to and their feedback actually matters. In terms of costs there is only the time
that has to be used to maintain these pages to be up to date and correct. Every
social media platform will be assessed after 6 months to see which ones are more
popular and with which ones we can get most traffic to our own website (by
upgrading to Wix e-commerce we can look at the clicks and click through rates
(statistics) that our social media acquire by simply linking our social media and our
web shop. Depending on the load we get through our social media we might start to
use Hootsuite to be able to cover all important aspects. Starting off we should be able
to cover the most important social media using this tool (up to 3, these 3 will be our
most popular ones). But if we feel that many opportunities are missed by only
implementing these 3 into Hootsuite we will be upgrading to the Hootsuite Pro
versions (with a monthly cost of 9.99) to combine even more social media platforms.
The importance here is by correctly assessing our popularity across our social media.

10.7. Physical presence


As mentioned before the physical presence will be the main cost here as we need to
have a warehouse to store our wares and also pay to send our packages. The latter
is at a reduced rate due to an agreement with B-Post. For heavy products (30 kg+)
we will be paying 20, medium (5 to 30 kg) we pay 10 and lighter packages are sent
for only 2 extra costs. These rates only apply to packages that exceed the cost of
49. For packages that need to be delivered outside of Belgium the costs and risks
are entirely up to the customer and we arent liable as stated in the FAQ on our
website.
The costs for a warehouse however will be the highest. We will be stocking our
products with Shurgard in the Ghent area. This means that a warehouse with the
necessary capacity for us will be 150 every month which will give us access every
day from 06.00 to 23.00. This might mean that an initial investment to purchase a
different warehouse could be more fruitful for our organisation. But as we havent
found any that meet our requirements yet we will be taking in this price instead as for
now we have no other option (as stated before keeping it in our own houses would
not be realistic due to amount of products that we need to keep in storage).

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The last cost step would be the necessary wages to be paid. We wont be using any
third party people for design or maintenance so we have no wages outside those of
our own. These wages will be variable, as we cant take up any wages if we dont
make any money. So we will only start taking wages after there is a healthy and
steady income from our business.