Executive Summary
According to (Myerson 34), the internet presents a remarkable opportunity for businesses to expand into new markets, offer new products and services, and compete on a more-equal ground with established businesses (Myerson 34). This report attempts to build on the above philosophy to business operations of Mova Globe, an American company manufacturing and selling solar powered globes for rooms and offices. Mova Globe is largest manufacturer and seller of globe that rotates silently in the world. The gadgets do not require power batteries or cords, only the natural light of an office or home. The Mova globe comes in two different sizes and numerous striking finishes that allows customers to select for the globe that perfectly fits into their offices or homes.
Mova sells its products through the company website in addition to other online shopping sites such as Amazon.com, and alibaba.com. The Mova’s website does not have interactive tools and promotional materials, which limits the customer base to those in direct contact with the client (turtletechdesign.com).
Market Summary /Target Audience
E-commerce is still experiencing strong growth despite the unfavorable economic climate. According to (Data Monitor 2013), e-commerce sales reached a total of $24.8 billion in 2012 representing 6.6% of retail sales. This commanding growth is expected to continue, with sales estimates for 2014 reaching $ 27 billion representing 9.1% of retail sales. People who find the products and services of the firm similar to those of the retail gift industry find a good reason to invest in the same. This is a good indication that the industry has potential for growthIndustry statistics show that giftware sector has experienced steady growth since 2004 but declined in 2009 following the global recession.
Target market is consumers looking to purchase a gift. Market trends indicate that there is increase in number of people conducting their shopping online and many products and services are being incorporated on online shopping. According to (Data Monitor 2013), more than two out of five (44%) of the adult population have purchased something online for personal or private reasons other than work. more than 70% of those who purchase something online never encountered any problem doing so (Data Monitor 2013). New study of the gift industry shows that young adults aged between 25 and 34 spend most of their time purchasing gifts online. The primary market for Mova Globe is young adults aged between 25 and 34 years of age (Data Monitor 2013). Consumers in this group spend 41% more than buyers aged between 35 and 44 years spend, making these young adults the highest spending age for gifts (Data Monitor 2013). The secondary market for Mova Globe is senior adults aged between 35 and 44 years.
SWOT Analysis
Strengths
- Existing online presence and expertise
- Specialized and niche selling
- Direct consumer communication
- Minimal legal and ethical considerations
Weaknesses
- Minimal awareness among prospective customers
- The company does not have current customer base
- Website requires alterations
- Unpredictability of search engine
- Lack of a strong brand presence
Opportunities
- The growth in online spending presents an opportunity for continued growth
- Advancing technology offers opportunity for encouraging regular visits and additional sales
- Strong business-to-business networking that will allow for exchange of links to increase traffic and search engine optimization
- Gift industry sales on the internet have experienced double-digit growth each year for the last eight years.
Threats
- Readily available substitutes as people can opt for other gifts
- No barriers to entry because other firms can also produce the same product
- Existing completion in the gift industry
- Online price transparency.
Competition
The internet encourages commoditization, which reduces the capability to differentiate products and services (Myerson 54). The current firms that compete with turtletechdesign.com include OnlyGlobe.com, UltimateGlobes.com, and worldglobeu.com. World globes universe offers a wide variety of globes including desk globes, floor globes, hanging globes, table globes, and children globes among others. The site offers a variety of globes, with an online assistant that can help clients make their choice of globe. Onlyglobes.com offers a wide range of high quality world globe and gemstone globe. The site has more than 1000 globes to choose from through their user-friendly website. The site sells globes made by top globe manufacturers including Mova Globe among others. UltimateGlobes.com also stocks a wide collection of globes that meets the different tastes and styles of every customer. The site offers free shipping to customers who make purchases of over $25 within the continental USA. In addition, they offer customer support service that gives customers an insight on variety of globes sold by the firm.
Positioning involves communicating information about a brand such that the target audience perceives it to be differentiated from the competition (Myerson 60). With this definition in mind, it appears the website of the company does not have a positioning statement. Brand positioning should encompass all benefits, both tangible as well as stating the desired perception and acknowledging the limitations of the brand. As such, the firm should position itself as the seller of globes that float a perfect point of balance that comes to life by the energy of light and by the forces of magnetic field of the earth.
The firm can position its products against competitors by conducting online advertisement, blogs, affiliate marketing, search engine optimization, e-mail marketing, and reciprocal links. Turtletechdesign.com can use blog to attract more customers who find the blogs interesting.
Marketing Strategy
E-marketing strategy includes the procedures followed and steps taken for marketing a brand through the web. To start with, turtletechdesign.com should upgrade its website to make it more attractive and have a good impression on prospective buyers.
Studies show that more than 90% of Americans use the internet daily. As such, using search engine optimization (SEO) will enable the business attract internet traffic to the website. This will be done using keyword phrases that users generally put in the internet when searching for gifts, particularly globes. Email marketing will also be used to entice existing customers and prospective customers to make purchases. The firm has not invested on online advertising and the company will place advertisements on its website, sites that receive considerable amount of traffic from internet users, and sites that rank high on the first page of search engines. In addition, the firm will issue online newsletters to regular customers informing them of new introductory offers as well as new product developments.
Marketing Mix
Price
Compared to the existing market competition, there is no need to skim the market, or use excessive pricing strategy. The company sell superior globe and it can charge prices slightly above the market price.
Place
The place is somehow irrelevant because the products are sold online. The firm should develop an attractive website that attracts consumers to visit.
People
The company will need experienced support staff that help customers to make choices when purchasing the products. However, developers will play a minimal role in the customer experience, and when they do it will be incorporated in the process section.
Product
The firm sells products, which are superior compared to other competing products. Mova globe has products with unique and superior characteristics compared to competing products (turtletechdesign.com). Globes produced by Mova uses light technology that differentiates them from other globes.
Measuring Success
The tools that will be used in measuring success include click-through rates, online sales, and number of e-mail addresses captured each day. Bounce rate will also be used to determine the percentage of people who came into the site but decided it was not form them and moved on.
Conclusion
In conclusion, turtletechdesign.com need to implement the above mentioned e-marketing strategies to remain competitive in the marketplace. The firm also needs to look for ways of increasing traffic into its website through increased promotional activities.
Work Cited:
Data Monitor. Market watch: Technology. Data Monitor Market report. 2013. Web 21 April 2013.
MOVA. “MOVA Globe recreates the earth’s perpetual motion in space, on your desktop, or even in the palm of your hand.” 21 April 2013. Web 21 April 2013.
Myerson, Conrad. Mastering Online Marketing. New York: Entrepreneur Media Publications. 2012. Print.
