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ISYS Internet for Business 2110 - Assignment 2 - Semester 1, 2010 – Strategy Plan
MegaMoon
Table of Content
Introduction .................................................................................................................................. 6
b. Line of Business............................................................................................. 7
a. Competitive Forces....................................................................................... 11
3. Market Restructuring............................................................................................... 28
Attract ................................................................................................................................ 33
1. STP ..................................................................................................................... 33
a. Positioning ......................................................................................... 33
2. 7Ps ................................................................................................................................... 36
Interact ................................................................................................................. 37
b. Design .................................................................................................. 38
c. Usability .............................................................................................. 38
Transact................................................................................................................ 39
React ...................................................................................................................... 40
1. Acquisition ......................................................................................... 40
2. Retention ............................................................................................ 41
3. Extension ............................................................................................ 42
Conclusion ..................................................................................................................................... 42
References ..................................................................................................................................... 43
Appendix 1: DEMAND ANALYSIS ............................................................................................ 47
Appendix A: SWOT ANALYSIS ................................................................................................. 49
SWOT analysis ................................................................................................................ 48
Introduction
In modern society, when health care is the best consideration – people also pay
attention to the high quality with unique design for their best product decision.
Intensely understanding “Nothing refreshes tired bodies and fatigued minds like
uninterrupted, blissful sleep” (Michael et al 2010), MegaMoon - The Sleeping Interior
Design Company has established business with special style, quality and services
through offline and online transaction to maximize consumer’s satisfaction. After
doing the Competitor Analysis, MegaMoon should carefully try to reach the
competitive advantages and prevent the threats of e-commerce by developing the
Strategy Plan: “How we will approach putting the business online to increase the
chance of being successful” (ISYS2110 CourseBook, Blackboard@RMIT).
Consequently, the Strategy Plan is setting the preparation for launching Mega Moon
online website, to display the sleeping cared product, likes Bedding cover sets into
different single customers: Male, Female and Baby. Establishing a good website
requires an insight and detailed report that permanently includes Situational Analysis,
Strategic Objectives, Strategy Definition, and Implementation. The first part analysis
goes through Company Overview and SWOT then continues by Competitive
Environment analysis. MegaMoon Vision and Objectives will indicate in the second
section. Then setting Company Strategy will be responsibilities of the third part.
Finally, the implementation of MegaMoon website will be identified clearly in the end
of this report.
A. Situation Analysis
1. Company Overview
a. Business Background
Main Office Location: 127 Tran Quang Khai Street, Ward 2, District 1, HCMC
Launching Date: 27th December, 2007 by Ms. Le Thi Kim Huong (CEO)
Production Industry: 87/9A Street 16, Hiep Binh Chanh Ward, Thu Duc District, HCMC
Number of Employees: 147 (2009)
b. Line of Business
The main core business: Manufacturing, processing and sale of sleeping-care products
with completely different style for Male and Female, from the age of Baby to Teenager,
including:
Mattress: With memory foam surface is designed to reduce pressure points for ideal
comfort, special water resistant and antimicrobial treatment used to help the
mattress stay fresh and clean.
Decorative Pillow
Mattress
Depend on premium quality, design and size, every product has specific high price plus
delivery cost (based on location distance). If there is the whole package purchase, free
beautiful gift will be given to the customers.
Business model:
c. Current Business
Offline Business Position: Currently, MegaMoon is the existing company that understands
the sleeping product requirement is not only high quality and health care, but also need to
be specifically divided into different genders. Male and female usually have different sign
and feeling, one always need to be strong and stylish, one is romantic and soft. Therefore,
MegaMoon is one of the Vietnamese Sleeping-Interior design organizations has brought the
professional working style and premium quality, trustworthiness and creative design
throughout Vietnam, Singapore and China by retail agents. Below is the information of year
2008 and 2009:
100%
90%
80%
70% Other exports
60% China
50% Singapore
40% Vietnam
30%
20%
10%
0%
2008 2009
However, the number of sale is quite low in both domestic and abroad market (only 7.3%
exported in 2009). There is no marketing activity to introduce the business, no promotion
announcement for the customer to be attracted while in the world, Sleeping-Care Product
online transaction with various services and beautiful goods description are available.
Furthermore, in Vietnam, there are many competitors such as Kymdan or Edena has
successful implemented a website to be the smart tool to build the brand awareness in
customer’s mind every time they search for “Mattress” or “Pillow”. Hence, MegaMoon is
known only by offline business.
No Position in the Online Business: In this Internet era, it seems to be easy to build an
online transaction with careful strategy plan. Although there are several number of existing
bedding websites in Vietnam, almost are gallery design, thus, MegaMoon may be the first
successful online transaction on Sleeping care product throughout Vietnam and broaden
into worldwide.
d. SWOT analysis
2. Competitive Environment
a. Competitive Forces
Michael Porter’s classic 1980 model of the 5 main competitive forces that affect MegaMoon
in the e-business as below:
Bargaining Power of B2C: With the large number of Bedding online shops from
Buyer Domestic: Edena, Kymdan, as well as from Foreign Brand:
HIGH Everon, Korean Dai, or Chinese Bedding Set, the buyers have
more choices of colors, quality, and prices which are most
suitable for them before making decision. Some users may like
MegaMoon goods with reasonable prices for premium quality,
beautiful product images and differentiation in available set for
Male and Female decoration. However, they can also switch to
another brand because of better service or same quality but
lower price comparison.
B2B: Building good relationship with partner like Coop-mart
distributor is always benefits. Particularly, business partner can
get better price from MegaMoon rather than purchasing from
Korea with the large quantity purchase as economic of scale
advantage. Or the Singaporean retail agent get lower imported
prices from MegaMoon than its national bedding company,
hence, achieve higher profit. However, whenever they find the
better E-SCM from another business likes Edena, they have full
potential competitors.
- Easy to reproduce and copy the design and techniques via
internet as it creates “Fast Follower” (Chaffey 2007, p.219)
High Competition for New Entrant
However, MegaMoon has set up the factory with skillful and
hard working labor force of over 100 people from 2007, doing
the different business with Kymdan or Edena and brand
awareness from offline business, established the unique design
catalogue of products for male and female. Thus, it may be
timely and costly for the “Follower” to prepare. Consequently,
the barrier to entry is quite low for MegaMoon; the important
thing is they should focus on building the professional, clear and
easy to use website with high security and payment method.
Rivalry existing amongst Although most of competitor’s websites are services oriented
competitors relationship building, the degree of rivalry is still at high level
INTENSE due to the fact that “Internet facilitates the moves to the global
market with potentially lower cost-base also potentially
increasing the number of competitors” (Chaffey 2009, p277).
Specifically, as designs and pricing list posted widely in the
websites, there will be intensive competition since companies
can make research and develop differentiation in their own
interior products and even setting more competitive prices to
compete with each other. The matter of the fact is that in
sleeping product industry, differentiation is the key to succeed
and even survive.
There are 18 available Vietnamese Sleeping-product websites (vietnamwebsite.net 2009), and none of them have online transaction,
they focus only on online galleries. Competitor analysis collection based on represented Strong and Weak points:
Benchmark Competition:
Factors (Xanthidis et al
2009)/Mark
Visit times <5: Low
Loading times =5: Average Please see explanation in
Accessibility >5: High Appendix B
Stickiness
Customization and globalization
Security & Privacy
Online Transaction Yes (10) No (0)
Company Name/Factor Times Accessibility Stickiness Customization Security & Privacy Online
Globalization transaction
My Linh Curtain 6.5 5 4.5 4.0 3.0 0
www.mylinhcurtain.com
ISYS Internet for Business 2110 - Assignment 2 - Semester 1, 2010 – Strategy Plan
MegaMoon
23/60
Van Thanh 7.5 4.0 6.5 5.0 2 0
www.nemvanthanh.vn
25/60
Uu Viet 8.5 4.0 6.5 4.0 0 0
http://www.uuviet.com/
23/60
Kymdan 8.75 8.5 9 8.5 7.5 0
www.kymdan.com
42.25/60
Everon 5 6.5 5 4 4 0
http://www.everon.vn/
22.5/60
Conclusion:
From the above analysis, Kymdan is the most popular sleeping-product brand name in Vietnam; hence, it has highest score in Website
establishment. However, both Kymdan and others national websites are used as a marketing tool, or online strategy to generate the
offline business which lead to the low attractiveness in the world when this is the time for Online Transaction over the world
(Appendix B2). Consequently, MegaMoon should understand that the Online Gallery without sufficient and credible Product
Information, missing the International language cannot catch the customer’s attention – A website without online transaction and poor
design – as Xanthidis (2009) evaluation 4 Dimensions, you cannot read the goal of expand the market. In order to be successful online
transaction as the first volunteer in this market, MegaMoon must learn from current competitor’s strength of Stickiness and try to
prevent the weakness, especially in Security and Privacy System, try the Customization which is missing in every rival websites so the
customers will be attracted and repeat the purchase or increase the visit times.
Political
The Institute of Vietnam Economy (2005) had stated that: “Support Corporation is
applying e-commerce into business, focus on training human resources for e-commerce”
when Vietnam becomes WTO member. Obviously, the more global investors coming, the
more challenges, the more high-tech and efficient method in business requirement, the
more MegaMoon should focus on how to build a good online transaction that can satisfy
all of international standard and policy. Furthermore, closer relationship between
Vietnam and other nations considerably reduces the barrier of export and import, with
smallest or none of tax rate. For example, USA is the potential market for MegaMoon to
export sleeping-cared products with the advantage of No Impose of Imported Tax.
(Runckel & Associates 2006)
Legal
Economical
Entering WTO also means that there will be more challenges in competition since many
stronger international companies invest in Vietnam. Apart from WTO access, GDP of
Vietnam is on the rise of 5.2% in 2009 and next year, that figure will be targeted at 6.2%
(Saigon-gpdaily.com.vn, 2009). As the increase in income of people, the standard of living
will also grow. Thus, people will tend to pay more attention to fulfill their own and
family’s spirit life and image. It means, apart from purchasing other accessories,
consumers will spend more money in decorating their house to build their own status,
more care for their children when they was young until teenager.
Social-Cultural
As discussed in SWOT analysis (VietnamBridge 2009), the preference of paying cash and
hesitance in online purchase is the Threat of MegaMoon. However, the culture seems to
be changed when there is the significant change in consumer behavior. The reason is after
WTO joining, the international behaviour from Western or America directly influences on
Vietnamese customer’s mind and requirement, especially for the Youth (teenager or
young couple)
MegaMoon target customer: Young Parents, Teenager with Medium to High Income, who
usually want to have good appearance, pay more attention in Decoration and Style rather
than Money spending. Young parents will show their care to their kids by accepting to pay
more money for decorating their room. Moreover, Online Shopping is their habit because
of convenient time surfing even in workplace.
Technological
B. Strategic Objectives
1. Vision
The core business strategy of Mega Moon is to provide the most effective website for
Internet users globally by building the efficient sleeping interior-design product online
transaction, make it easy for shoppers to find, compare and choose products which are
most suitable with their preference, gender and income ability. Using this strategy,
MegaMoon strive to provide the best possible customer experience by offering superior
value, high-quality, online-purchase instruction, customized system and services, online
support and differentiated product’s design that are easy to buy to buy, long-term usage
or gift given. (Chaffey 2007)
Customer Perspectives
Objectives Key Performance Indicators Individual Strategy
Increasing: Reach 2% visitors of total internet With support of the right e-marketing strategy likes adverting as the
- Online Market users (Internet World Stats, 2009, electrical banner in popular websites such as TuoiTre, Kenh14, and 24h
(Appendix C): In the first 3 years: or Teenager sites (Hoahoctro, Muctim, Sanhdieu)
share
reach 900,000 visitors and half of Using media channel: Yeah1TV in order to introduce the company and
them; about 450,000 are registered products to customers.
as site’s member. Using social network likes the Facebook and Twitter as one of the main
communication tools
- Customer’s Customer acquisition rate will Building the friendly interconnection with customers as create the
acquisition rate increase by 12-25% in the coupon Teenager Hint for Gift purchasing, so they will comeback as they expect
in next few years. to see more creative products for their girl/boyfriend.
Ensure retention of key account customers: Attain soft lock-in by
ISYS Internet for Business 2110 - Assignment 2 - Semester 1, 2010 – Strategy Plan
MegaMoon
- Customer Retention Rate: Revisit of developing extranet facilities and continued support from sale reps by
retention rate customer in our website: adding the “Disable Back button” JavaScript in the Tag Heading (Chaffey
- In 1st following year: 30% 2007)
- And 60% in next following Virus scanning: available for customer feel comfortable when enter our
year. site (no virus)
- Ensure 80% of key account
customers
Increasing Should be more than 80% Providing clearly purchasing instruction and Eye-catching interface and
Customer commenting well and less than 5% give consumer the right to customize the website based on Colour
negative feedback in the 1st year by favourite.
satisfaction index
creating the customer feedback to Provide additional services such as Live Chat available 24/7 and FQA to
evaluate. prevent the consumer confusion of using product or services.
- Increasing the number of loyalty Frequently maintain and update database in order to improve the
customer to 40% of total registers quality of connection
each quarter Doing quarterly survey of buyers’ behaviour
Establishing the promotion to attract more customers such as free
shipping, discount coupons, vouchers and free testers
Usually updated with the newest trend of interior design in order to
satisfy buyers
Process
Objectives Key Performance Indicators Individual Strategy
Reduce EProcurement The procurement lead-time should The “Add more” button in Shopping cart is designed to help customer to
lead time be equal or less than 2 minutes come back the product’s catalogue (Menu). Then, the user wants to select
more products to buy, just add them into shopping-cart and confirm what
they actually want to purchase.
Reduce Delivery lead Remaining consistent delivery lead Using reliable logistic firm such as TNT and DHL. Building the relationship
times time: with specific foreign logistic firm in each country MegaMoon export so it
National purchases: 1hour - 3 days will be easily deliver products into right customer at the right time.
International purchases: 2-5 days.
Online Error and Control the failure delivery by By building the effective online transaction system and use Access to
Accident Rate 3% save customer databases (ordering and time of delivery) by IT expert
Keep the transaction errors less Update every time the customer play the order and payment method,
than 2% each month immediately work with the production and sale department to deliver
right products to the right place.
Use Email/phone call confirmation before delivery.
Financial
Objectives Key Performance Indicators Individual Strategy
Increasing the revenue Gaining 20% market share in Research for new potential market such as Cambodia and Laos, US
contribution from Vietnam after 3 years, targets advantage of no imported tax.
selling online & offline 90,000 orders after 3 years. Create e-commerce facility for standard products and assign agents in
Gaining 20% international order to develop the revenue from new geographic markets such as Da
market share after 4 years Nang, Hue, Hai Phong, Thailand or Laos.
25% offline purchases Marketing strategy effectively used by banner in famous page
generated from online and 5% (vnexpress.net) or a newspaper about free decorative and special pillow
cash purchases of total revenue from MegaMoon for 10 lucky students in kenh14.vn. After they get the
after 2 years gifts at the offline store, they will be attracted more with actual design
and beautiful products.
For the Internet users who do not own the credit card, they can pay by
Cash or face to face communication after playing an order and seeing
fabulous photos from catalogue.
Saving Cost Try to reach the 30,000$ saving The marketing is used by Website and banner in other pages leads to the
for writing documentation such decrease in handmade-marketing
as price sheets, marketing cost
likes flyers or office renting, Use collaboration and project management tools, MegaMoon play the
decoration fee, utility fee, etc per hyperlink of the website address at the other page and vice versa.
year Improve the delivery system rather than building the offline shop to
The capital investment will be reduce the office renting.
covered after 3 years
Innovation and Employee Development
Objectives Key Performance Indicators Individual Strategy
Improving the quality of Visit times will be over 5,000 per Frequently changing the website background based on the occasions
the website month in the 1st year Creating more attractive functions such as Flash, video and voice
Number of register will be
consultant
following the increase of quarter
Creating a application that customer can directly purchase on Iphone
numbers of visitor, 50%, 30%, and other electronically devices
and 50%, respectively. Establishing IT and Design departments
Employee Development 75% employees can work for Improving the staff’s knowledge about e-commerce.
our e- business
English training course will be established for communication purpose.
100% Staff can be able to write
and speak English confidently Outside Activities: Sport, Creative product competition will be held to
after one year encourage the employee to think about new design of product and
Professional working marketing strategy with the reward (10 million) for the team winner (3
people) and building traditional and friendly workplace environment.
environment
C. Strategic Definition
1. Channel Priorities:
In order to reach the right Time, using the Right Communication channels with a relevant
Offer, Product or Message to the Right person (Chaffey 2009, p.299), MegaMoon apply:
Both:
- VIP member card offline for over $200 purchasing
- Free gift for baby, teenager in birthday, value: $15 by direct interaction
from MegaMoon represents.
2 Encourage consumers Be different from Kymdan or Edena, MegaMoon focuses on Family, but purchase
to buy through online for Baby and single Teenager with the whole package, different style: romantic
channels: and stylish for different gender. Therefore, customers have more choices to buy
through online channel.
Risk: The strong bargaining power of customer to switch the products if they
found there are available lower prices.
DECISION The first strategy is selected because it is the smart way to maintain the
business relationship by letting the customer knows they are carefully cared and
respected, not only who buy, but also their beloved-baby. Moreover, this
channel priority encourages high-volume customers like Coop-mart because of
high economy of scale benefits.
Gulati and Garino (2000) give the advantages of the integration approach as being able to
use existing brands. MegaMoon application as below:
3. Market Restructuring
a. Business Model:
According to Chaffey (2007), MegaMoon can use:
b. Revenue Model:
MegaMoon will be the first online transaction in sleeping product market (other are Online
Gallery only), therefore, focusing on the Market Penetration to sell existing product to
existing market is the strategy to achieve the market share advantage in Vietnam in this
mean time (Amstrong 2005)
Market share growth By using the online communication
techniques as search engine marketing
(Google) to compete with other business
Customer Loyalty improvement Online value proposition (discussed later)
When the MegaMoon brand-name become popular in Vietnam and global, when there are
potential competitors enter the market, MegaMoon can move up to Product Development
to prevent the imitate issues from rivals.
- Developing the unique products with special design to express the MegaMoon logo
meaning and brand-name: Building the Exclusive and Premium bedding style for
consumers with romantic surrounding (whole package) related to the Moon shape.
Consequently, this is the way to upgrade image to the higher level with wide range of
products from baby beautiful bedding design to extreme rare Moon shaped-bedding set.
Although this product development is costly, and the selling price will be premium but
under this economy grow, rich people such as Singers or Actress are affordable to purchase
a unique product for their wealth-show-off, hence, this market is an enormous potential.
Differentiation MegaMoon core business is offering sleeping product with special design
for different gender from baby into teenager who influence the purchasing
decision of Family (Parents). There are various products from Covet Set,
Pillow and Mattress with superior quality and unique design. Furthermore,
the consumers will be provided online transaction’s instruction, on-time
delivery, secured financial information, consultant for decorating bedding
room, available Live Chat for consumer confusion and valuable gifts range
from $50 up to $250.
Focused Differentiation The market will be narrower, and MegaMoon can charge higher price for
the uniqueness in design and product quality. The profit can be calculated
by Money Get, not the quantity.
Decision However, in Vietnam, this 2nd strategy is not appropriate as Sleeping care is
common product for broaden use, Teenager are the large number of people
at current time and young couple tend to purchase the premium sleeping
care for their baby with low money consideration. Hence, it is better to
choose the Broad market for uniqueness.
MegaMoon can apply the Online – Marketing Mix: 7P’s (Richard, Jim & Rod 2004): More
detail in Appendix E.
D. Strategic Implementation
Attract
1. STP:
a. Positioning:
Mega Moon has a differentiated position- Prestige Segment in our target customers and
stand above our competitors due to perform effective 4 extent areas: High quality of
products and services, reasonable price and low lead-time (Deise et al, 2000 cited in
Chaffey, 2007). Furthermore, by offering the medium price (no higher than $1,000/ set)
for the unique products, which are the newest trend of interior design, customers can
obtain the highest fulfillment rate is 1 hour- within HCMC and the longest just 5 days for
other countries’ purchase. Therefore, Mega Moon will let its customers realize their
Product excellent performance- High Quality and Unique but Reasonable Price.
After identified the Company position, the target Segments are defined from using ETypes
(User Guide, CACI Limited, 2008)
Customer 1 Customer 2
Demographic
Age 25-44 35-55
Gender Both from Young and Middle age Mostly female from Middle age families
families
Value added Updating latest information about Always offer discounts and different
new and upcoming products every promotion activities.
week. Special discounts with high volume of
Free sample of new products purchasing
always be provided or additional Online sales: we sell the Sleeping-care
gifts product products online to customers
Online advertising: we shall allow and gain profits.
other businesses put their
advertising banners our website E-mail and photo sharing services: we
and charge them and they will pay provide these services to get more
Positioning Always be Up-to-day with new Good quality from well known brands
ourselves products with acceptable prices
How can your Need to build the famous website Need to be linked with other websites
business become to be the 1st when Internet use and vice versa to do the online
first choice? write “Vietnamese Sleeping-care marketing and PR for themselves
product” in the search engine tool Convenient, fast and obvious way of
website (Google or Yahoo) using the website.
In order to be famous, the website
must be attractive with product
images and full information for
viewers for their purpose than
other competitors
Products divided into 2 targets: Baby and Teenager. However, the payment and decision
are made by Parents. It is clearly divided into 2 different ages. In each category, there are
different products: Whole set package or separate one including Mattress, decorative
pillows, etc. Hence, the Internet user can easily find their need based on obvious
arrangement of Product Type and Consumer Type.
As discussed above, MegaMoon tries to achieve the customer satisfaction by building online help and
instruction so they can easily access and use without confusion in our website. Furthermore, full information of
delivery methods will be wider choice for consumers.
In order to build the trust in customer mind about our online business
Customers have the right to know exactly about what they purchase
Not only online shopping, consumer can take time to read news about Sleeping benefits, MegaMoon
articles and current trade fair, economic changes, etc
Consumer can contact the company via Email, phone call or direct
interaction
For customer easily checks their Cart after added product. This tab is available in Menu, so customer
can check anytime they want, not as other competitor: after play order, the “Your cart” will be
appeared at the corner which is very difficult to see
ISYS Internet for Business 2110 - Assignment 2 - Semester 1, 2010 – Strategy Plan
MegaMoon
c. Usability
The website is usable as we will discussed based on the Nielsen’s usability heuristics:.
There are 6 elements of quality metric will be used to apply:
Loading Speed
Attractiveness
Security
Transaction
Searching
Navigation
Please See more in Appendix G3
Transact
Visitor
s Not tend to buy
Select payment method
Fill in card
information Delivery
Achieve
Card
checking
Failed
The figure above is a purchasing process of MegaMoon. The visitors have to log in the
account initially if they want to begin the transaction. From the figure, there are three
methods of payment that we have used which are credit card (Visa and Master Card),
PayPal and cash. Payment by cash means we will collect the money after delivering the
products to customers. Besides that, we will check the card whether credit/debit card
achieve or not before the acceptance credit/debit payment. And this checking process will
be run by banks that we have cooperated with such as Sacombank, Vietcombank, DongA
bank and ACB. Moreover, MegaMoon also collaborates with express firms such as DHL and
VNPT that will ensure to delivery products to customers outside HCMC. (See more in
Appendix H)
React
1. Acquisition
In this phrase, Mega Moon Company will carry out different marketing activities online
which related to promotion to capture attention from new customers to generate online
sales. (See more in ATTRACT)
websites including beddingwindow.com and vietnambedding, and the forums about the
interior design in websites, we intend to place interactive and banners in which best
collections are shown under flashing mode.
The use of Google adds URL due to the fact that customers, in generally, they will use
search engine as Google initially to search for the particular products rather than
immediately entering the address of the particular site. Also, our major targeted customers
are parents who always seek for economical benefits initially. Before making purchase
decision of a particular product, they often carefully visit the trading websites to get
general information about market and sometimes enter forums to ask for the experience of
the others about their preferable brand. When we place advertisement on these sites, these
customers will probably see and attract by our banners or interactive. Somehow they will
visit our website because of curiosity and attraction.
2. Retention
Mega Moon mainly focuses on activities maintaining and enhancing relationship with
existing customers.
The information related to the historical transaction will be saved in our database system
under the accounts of customers; hence, they can review at anytime they log in. Saving
database of customers in transactions can also be used to reward customer’s loyalty.
Besides, we will apply opt-in mail to keep confirming existing customers about
introduction of new collections or whenever having promotion campaigns. Additionally,
the forum of discussion will be created for customers to visit and share ideas or feeling
about our products. We believe that by using opt-in email, our advertisement will not be
ignored by customers since they are given the option of giving us the email contact.
Furthermore, by actively creating the online community in our website, it is easier for us to
get feedbacks from customers. Also, through responding to the concerns and comments
from customers online, we can enhance the relationship with existing customers more
effectively. (More discussion in Appendix F)
MegaMoon – Premium Interior Design Company – Strategy Plan
Group 6 – Lecturer: Kevin Kuruvilla Page 41 of 88
ISYS Internet for Business 2110 - Assignment 2 - Semester 1, 2010 – Strategy Plan
MegaMoon
3. Extension
According Chaffey (2009, p483), this phrase mainly focuses on activities encouraging
customers to increase purchase frequency. Mega Moon acquires customers to pay through
deposit transfer or credit card. By persuading our customers to pay through the other
financial service as Credit Card or PayPal, our relationship with customers will be
intensified somehow.
For Credit card, the customer’s information will be encrypted via SLL Certificates.
Thus, the Internet user can assured about their financial information provided into
MegaMoon.
PayPal: Customer can totally assure because this is one of the highest security
payment system around the world, as well as, there is no fee or charge through the
purchase online using PayPal. “Save Time. Pay without sharing your financial
information” – PayPal slogan
Conclusion
“To conclude, being victorious in the online market is not an easy term as there are
several critical issues need to be taken into account. As a result, understanding the
market nature and then applying an effective strategy to adapt with the business
environment, MegaMoon can be successful in the near future.”
(Chaffey 2009)
***
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MegaMoon – Premium Interior Design Company – Strategy Plan
Group 6 – Lecturer: Kevin Kuruvilla Page 44 of 88
ISYS Internet for Business 2110 - Assignment 2 - Semester 1, 2010 – Strategy Plan
MegaMoon
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Student assignments:
2009
2008
Additionally, Vietnamese living standard has a fast development, education and health are
the best consideration, parents would choose the best product for their baby, and
teenagers have wider choice for specific decoration or special design that fit with their
characteristics. As a result, online shopping has a strong upward movement.
From Chaffey (2007) and-the survey result from Nielsen (2007), we found that:
Most of Vietnamese consumers, price is the most important to determine the store
option. In fact, over 77% of consumers point out that they have changed their buying
intention due to price rising. Thus, as a new online entrant, MegaMoon must carefully
revisit to-buy products from the previous site purchased (Nielsen 2008). Hence,
MegaMoon understands that since the online customers are loyal, it is vital to capture
revisit.
Strengths Weakness
MegaMoon manufactures high quality Familiar with offline business operation.
goods with creative design based on the Therefore, lack of experience in online
combination between traditional (hand- business is the primary weakness.
Sewing, embroider) and modern Executive team is qualified but
techniques (production system, high- MegaMoon does not have experiences in
tech machines) online trading. Thus, time cost to build
Products are for Baby and Teenager, an employee training program of
divided separately to Male and Female internet usage.
gender; strongly focus on Single High cost to set up the online transaction
Customers - which is no competitors yet and IT department to maintain the
in Vietnam. online business, databases and customer
Having skillful employees in both feedback.
handmade sewing and technical field.
Building strong relationship with
existing customers based on premium
gifts and VIP member cards.
Main office is in District 1, 3 showrooms
in District 3 (foreigner & high-income
people’s area), product distribution in
Coop-Marts (13 branches) and retail
Score 23/60
Van Thanh Main business: Visit times: Stickiness: 6.5 Quite high Stickiness
www.nemvant Manufacturing mattress 6,690 visitors -Hyperlinks are easily accessible. User interface is quite weak:
per month They are embedded in the top bar -There is annoying appearance
hanh.vn Website: Online Gallery
with clear font. of big flashing banner in every
and contact, then, move to
Loading times: -The hyperlink is well organized as page.
offline purchasing
2.766 the -The design of drop down list is
Line of business: mattress, second(s) -The use of drop down list in top not functional since it is white
pillow and drape. (52.184 s/Kb) bar showing sub sections is well which cannot distinguish with
organized in order. the background of the site.
Target customer: Local
Le Thi
My household customers. Faster than -Using mouse over function for
MyLinh Curtain, box of products description.
Duyen Because although the site Customization: 5 (Average)
but lower than 2
ISYS2110_A1_s has English, Chinese and others Customization& globalization: -No showing signal of online or
Vietnamese, almost
MegaMoon – Premium Interior Design Company – Strategy Plan
Group 6 – Lecturer: Kevin Kuruvilla Page 52 of 88
ISYS Internet for Business 2110 - Assignment 2 - Semester 1, 2010 – Strategy Plan
MegaMoon
3230346 information in the site is 7.5 -Online help through Yahoo nick offline
written in Vietnamese, the chat. -Online help is not available
other languages do not -Site designs its core proposition 24/7.
work well through delivering the message -Customers feel frustrated easily
Prestige - Quality – Innovation -- by lacking of much important
Business Type: B2C Providing the user’s guide for information such as price.
customer. Security: 2 (Extremely Low)
Online Transaction: No -Providing news about health care -No register of user name of
for customers. password required. Thus,
anyone can access easily.
-No security and privacy
system
Accessibility: 4 (Low)
-Some link labels do not have
information that customers
need (e.g. COMPANY PHOTOS
link label)
- No price list
- No online purchase
Score 25/60
Uu Viet Main Business: selling Visit times: Stickiness: 6.5 Quite high Stickiness
(http://www.u family products online in 3,840 per month -Sitemaps are linked well with -Lack of pricing information
uviet.com/) Vietnam Loading times: each other. under each product.
2.3 seconds -Online support and feedback form -The website design is complex
Line of business: are available for customers. due to many information is
(59.7s/kb)
customers is protected.
Score 23/60
Kymdan Main business: offers Visit times: Stickiness: High Security: High, without
www.kymdan.c sleeping-care products, 20,280 per -Tendency to use scrolling Transaction, hence, it is not
especially mattresses made mechanism necessary to build the
om month -Full use of Hyperlink, sitemap,
of 100% natural latex in transactional protocol or
Loading times: interface attractiveness
sponge, mousse form payment method system.
-Full information provided
2.714 Seconds -Strong visitor feedback and
Line of business: Providing online help
(57s/kb)
quality mattresses and Customization: High
pillows to beds and -Language support system
Nguyen Bich furniture. (English, German, Chinese,
Vy Vietnamese)
Target customers: -Color used for cultural
ISYS2110_A1_s Household in Vietnam and background
3175613 87 countries -Implemented almost level of
customization
Accessibility: High
Business model: B2B, B2C No requirement for loading time,
Web site displayed properly, i.e.
no horizontal scrolling
mechanism, no twisting of objects,
etc, in different display resolutions
Score 42.25/60
Everon Main business: offers Visited times: Accessibility: 6.5 (High) Stickiness: 5 (Average)
http://www.ev sleeping-care products, 540/month No requirement for loading time, - There is only Yahoo icon for
eron.vn/ imported from Korea Loading time: 2.48 Web site displayed properly, i.e. online help, but it does not
54s/kb no horizontal scrolling work.
Line of business: Providing
quality mattresses and mechanism, no twisting of objects, - No customer feedback form
pillows Quite fast but not etc, in different display or login page.
really popular resolutions - Dead hyperlink in language,
Target customers:
Household in Vietnam (lowest visited Stickiness: and product price.
times per month) - Providing full and clear Customization &
Business model: B2B, B2C
5 information about production Globalization: 4 (Low)
process, product detail and price. - English and other language
does not work
- No export or import issues
provided.
Security: 2 (Low)
- Order by Yahoo chat, but it
does not work. There is no
privacy statement or
customer database, no
security system.
Score 22.5/60
For more specific information: Please see the attachment files.
Firstly, according to Alexa statistic and WOO rank report (see more in WOO rank report
attachment file), the Kymdan traffic rank is 605,448 globally and 5,437 in Vietnam, means that
this website gets from 1,000 to 50,000 visitors per month. Secondly, 54% Internet
ISYS Internet for Business 2110 - Assignment 2 - Semester 1, 2010 – Strategy Plan
MegaMoon
Marketing Effectiveness (average rate = 50.7%) lead to the result of 53 websites linked
including domestic and global ones.
www.sealy.com: 174,044
http://www.simmons.com: 155,987
Alcatel-Lucent (2007) analyzes 26% of Internet users in Vietnam are online purchasing,
approximately (26% of 22.8 millions) 5,928,000 online shopping per year. Mega Moon
intends to achieve about numbers of orders of 20% visitors, 90,000 orders for the first 3
years, included online and offline sales.
In the traditional market structure, MegaMoon gets the materials such as Cotton or fabric
from suppliers and then goes to the production process: Some will be handmade; some will
be sewed and made by technology. Then, the completed pillow or cover set will be
packaged and delivered into different shop, showrooms and retailers. Finally, it comes to
the customers (parents or teenager) by direct sale in shop or distributor (Coop-mart).
However, in order to join the online operation, MegaMoon has to make the market
restructuring by applying:
Strategy Tactics
Buy side Disintermediation - Cost reduction due to the intermediate’s elimination increase of
competitive advantages such as higher profit achievement
For disintermediation strategy, MegaMoon should:
Build a team (5 people) called Material Collector who are responsible
MegaMoon can apply the Online – Marketing Mix: 7P’s (Richard, Jim & Rod 2004):
7Ps OVP
Product New service: Payment method: Credit Card and PayPal
For the Internet users who do not own the credit card, they can pay by
Cash or face to face communication after playing an order and seeing
fabulous photos from catalogue.
Providing new catalogue of product via websites and email to extent or
tailor the products based on Customization level 1. (Tool 1/Figure 23)
B2B:
Reduce more in retailed cost:
favourite.
Live Chat available 24/7 and FQA to prevent the consumer confusion of
using product or services.
Doing quarterly survey of buyers’ behaviour
Establishing the promotion to attract more customers such as free
shipping, discount coupons, vouchers and free testers
Usually updated with the newest trend of interior design in order to
satisfy buyers
Support varieties of payment method such as cash or credit.
Full information of product and beautiful images available (1 products
with 2 or more photos in different corners).
Appendix F: ATTRACT
Promotion:
In searching field, find out some important keys words. “81.7% viewer will change the keys
words to begin new search if the research result of original keys words is not relevant”
(Chaffey, 2007). Moreover, “the viewers only skim the research result with first three pages
before begin new search” (Chaffey 2007). Therefore, using repeated terms inside the
contents, such as ‘interior design’, ‘interior decoration’ or ‘sleeping-care’, ‘bedding’ will
help our site be easier to find and define as well as apply the Search Engine Optimization
in Google, Yahoo in order to achieve highest ranking.
Meta-tags: According to Chaffey (2007) “meta-tags are part of the HTML source file.
Meta name =”keywords” content = “sleepingcare, MegaMoon, mattress, pillow, cover
set”
The keywords should be described in Vietnamese, English and other languages which is
more impressed for customers when choosing their Mother language as easier
searching. Moreover, it should be more synonyms for 1 keyword which can make
customer feel easier to searching for a product. Moreover, keywords also included the
Color (describe in product information) as MegaMoon establish the Search Tool with
“Category, Price, Color and Keyword”
B/ Advertising:
Buying the sponsorship for placing link to our website on search-result-page of Viet
Advertising Company and Google.com to market our company business to both
domestic and global areas.
Banner/Interactive: Mega Moon banner will be appeared in several popular news:
Size
Advertising on
Fullbanner (468x60)- Tuoitre
internet
online (www.tuoitre.com.vn)
Asking: Emails: opt-in, opt-out, double pt-in: During the purchasing or registration
progress, there will be a notification of our web site to ask customers whether they
want to get updated new events of our company likes new collections.
Third-party e-newsletter: Gaining new Customers and obtaining new buyers by sending
them information when new collections are arrived or the sale –off seasons are coming.
Furthermore, customers can prevent receive letters or emails just easily by replying
‘unwanted information’. We will have a respond of ‘apologizing’ and not sending again.
Coupons and discounts: We provide online discount coupons for each special season likes
the Weddings and the New Year and sale off campaigns for old collective by time period to
encourage purchasing power.
B2B:
E/ Viral Marketing
Seeding: MegaMoon can use Yahoo Messenger or Yahoo 360 Plus to send offline message
of “Special Gift for your Valentine with Decorative Pillow” as the “virus spreading” because
Teenager seems to be attracted by stylish and gender differentiation in product design.
Product:
Price:
Mega Moon offers high quality and Unique Product (see Positioning part). Therefore, the
price is acceptable high. Customers will find out that it is very reasonable price compared
with their sacrifices, for example maintenance after purchasing service. Furthermore, price
strategy including:
- For attaining and remaining loyalty customers, who always update and use the
latest collections, they will receive Loyalty Card with 10%discount. Finally, cheaper
price will be offered for the old trend design products.
- Furthermore, there is 5% discount for online purchase in order to encourage
customer go to online transaction.
- Maximize the economy of scale for B2B partner as discussed in Appendix E:
packages or 20 separated products
Place:
MegaMoon uses intermediaries as the distribution channels to save the location fee. We co-
operate with some of the partners who have already got distribution system and sign the
contracts with them to ensure our products are well distributed. Furthermore, there are
also the physical places for cash purchases after getting the online information about our
company.
Place strategy can be used in online such as providing information about Events,
Achievement and new office of MegaMoon in other countries likes Singapore, Korea or
Thailand in the NEWS tab of menu. So the customers can know about MegaMoon around
the world, what we have done and achieved during the core business’s activity.
Appendix G: Interact
Appendix G1: Information Architecture
PARTNER (Supplier & Logistic) is separately
Site Tree Diagram and dropdown-list menu:
designed, not included in the Menu bar
Products divided into 2 targets: Baby and Teenager. However, the payment and decision
are made by Parents. It is clearly divided into 2 different ages. In each category, there are
different products: Whole set package or separate one including Mattress, decorative
pillows, etc. Hence, the Internet user can easily find their need based on obvious
arrangement of Product Type and Consumer Type.
As discussed above, MegaMoon tries to achieve the customer satisfaction by building online help and
instruction so they can easily access and use without confusion in our website. Furthermore, full information of
delivery methods will be wider choice for consumers.
In order to build the trust in customer mind about our online business
Customers have the right to know exactly about what they purchase
Not only online shopping, consumer can take time to read news about Sleeping benefits, MegaMoon
articles and current trade fair, economic changes, etc
Consumer can contact the company via Email, phone call or direct
interaction
There is no SITEMAP or PARTNER tab in the Menu list, the reason is:
- The above Tree sitemap design will be appeared in every page the Internet user click
which also can be seen as the VERTICAL navigation bar. The content of this sitemap is
consistent with the Horizontal Navigation (Menu Bar). It will present a friendly
interaction with the consumer. The product category is described in bullet point, so the
consumer will know exactly what they are searching for. Moreover, Internet user can
feel satisfied with the sitemap as they know where they are – their location in
MegaMoon website by extra CSS application (The text will change colour and bold, such
as:
to
www.beautifulthings.co.uk
- A special marketing strategy that impress the
Internet user when looking for beautiful
items: “Gift for her” guide. MegaMoon can
try this as we also do the business of
selling decorative sleeping care to
Teenager, this kind of visitor will influence
their parents (Main target customer) to
purchase for them, or they will purchase for
their friend birthday.
Search… V
Company Address
Choose your web color
Home About us Product Instruction for Use Warranty News Contact Search Your cart
us
Flash Advertising:
About us
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
……………………………………………………………Read more
Visited times:
Home About us Product Instruction for Use Warranty News Contact Search Your cart
us
Our communities
You are here Home – Product – Sleeping care for Baby – Girl Bedding Cover set
Home Discount Information: 5% discount for online purchasing
Promotion: Up to $250 gifts available
About us
Product
Product name
Sleeping care for Baby
Baby Mattress
Pillows and Blanket Images More images Partner
Girl Bedding Cover Set
Boy Bedding Cover Set
Teenager
Mattress
Decorative Pillow
Stylish Bedding Cover
Romantic Bedding Cover
Your cart
Home About us Product Instruction for Use Warranty News Contact Search Your cart
us
You are here Home – Your cart Our communities
Product
Contact us
Search
By Category/Price/Color
By keyword
Your cart
share Kenh14, and 24h or Teenager sites (Hoahoctro, Muctim, design) at the right column
Sanhdieu)
Using social network likes the FaceBook and Twitter as one of Yes, FaceBook and
the main communication tools Twitter’s image hyperlink at
- Customer’s
“Our community” (right
acquisition rate
column) in every page
Building the friendly interconnection with customers + teenager Yes, the layout will be
- Customer Gift Hint designed which is related to
retention rate Sleeping care or bedding as
3 inspirational websites
Online Error and By building the effective online transaction system and use Yes
Accident Rate Access to save customer databases (ordering and time of
delivery) by IT expert
Update every time the customer play the order and payment Yes (see in Shopping Cart)
method, immediately work with the production and sale & Contact Us
department to deliver right products to the right place.
Use Email/phone call confirmation before delivery.
Objectives Individual Strategy
Increasing the revenue Yes
contribution from See more detail explanation in the whole strategy plan.
selling online & offline
Saving Cost
Objectives Individual Strategy
Improving the quality Frequently changing the website background based on the Yes, because the products is
of the website occasions viewed and visited most by
Creating more attractive functions such as Flash, video and young people, therefore the
voice consultant site layout will be changed
Establishing IT and Design departments under Holiday such as Tet,
Valentine
Employee Yes
Development See more detail explanation in the whole strategy plan.
Elements MegaMoon
1.Loading Speed Use simple flash of image animation to attract customers by
beautiful images of products and promotion.
Prevent the loading page; it must be less than 2 seconds.
As Nielsen statement in 1997: “quick response and fast access are
important for websites nowadays” as the user does not have time to
wait for a website with long loading speed of heavy flashes because
their almost major objective is Product Searching.
2.Attractiveness Building the website design with professional interaction with
customer
More than 2 languages
Beautiful flash and Teenager Hint for Gift Purchasing
Achieve the high rank in Google Search engine by implemented
the marketing strategy in ATTRACT
3. Security Web site expires after a pre-defined amount of idle time
Building the payment system PayPal and Credit Card by
collaborated with famous banks (in REACT/EXTENSION part)
Providing the Privacy statement to customer after they play an
order or online purchase that “Your information is saved in our
database with the secured and respect. There will be no Third
party login your account and information”
Appendix H: Transact
Choose products & add
Tend to buy Log in to shopping cart
Visitor
s Not tend to buy
Select payment method
Fill in card
information Delivery
Achieve
Card
checking
Failed
Below is the Transaction Step explanation based on the Consumer Behavior Decision
Making Process:
Problems recognition: Family, especially Parents want their baby have a special
sleeping care product, which is totally for Girl or Boy as well as the Teenager who always
would like to show up the differentiation need a beautifully specific design for their
bedding room.
Information search: Consumer can go offline business, but here we discuss in
Online Business. Teenagers have surfing and online shopping habits during their free time,
hence, they can use the Search Engine like Google to search for “Special Drapes” or “lovely
pillow” as well as their own experience. Family target such as Parents, especially Mother
can also do online shopping or by word of mouth, from external sources (friends,
newspaper) to have more information about choosing a sleeping product company.
Evaluation: The Internet users then come to visit the MegaMoon website, evaluate
the product images and information, compare the price and quality with others
competitors and then tend to purchase or not. If they are interested in MegaMoon goods,
they will add to the Shopping Cart. They can only play the order or make the actual online
transaction by clicking the “Purchase” button
Post purchasing: after purchasing perfume, customers still tend to worry about
their decisions, tastes, quality and prices of the products that they have bought. Hence, we
post positive comments under each particular product. Moreover, articles which
complement any particular product would be sent to people who used to buy that product.
We do these two activities with the purpose of making customers feel secure.