1. Pricing policy
2. Sales forecasts
3. Break-even forecast
4. Cash flow forecast
5. Statement of financial position
6. Capital structure
7. Income sta tement
, Stuvia.co.uk - The Marketplace for Revision Notes & Study Guides
Market analyses and planning
P3: Explain your marketing plan for a selected micro-business.
Target market – Taobao UK is operating in e-commerce sector. To identify the company’s target
market, it is a good idea to look at the biggest competitors. This is
because the business operates in the same sector therefore their
target market is similar. A good business which have very similar
functions are eBay and Amazon – both companies have
comprehensive online stores that offer millions of products. Based
on this information we can establish the target market of Taobao
UK:
• Expectation – Customers will expect to have reasonable
delivery times, meaning that they don’t have to wait too long for their items to arrive. However,
because the prices offered on Taobao UK are much lower compared to competitors like eBay
consumers would be more willing to wait longer for their delivery. Further it is very important for
the consumer satisfaction to have reliable and safe delivery service. Customers want to know exactly
when they are going to receive their item and that it won’t be damage. Statistics show that discounts
and promo cods can be expected in this type of business.
• Shopping habits – Over 36% of consumers undertake research to find the best price on the
products (Edwards, 2018). This is good news because Taobao UK will be able to undercut all the
other competitors because the company is shipping the products straight from china which allows
consumers to benefit from the low prices in Asia. Now more than 50% of the online shoppers use
mobile devices like phones and tablets to make their purchases. This means that Taobao UK has to
have mobile phone compatible website, it also can be beneficial to create an app that consumers
can install on their mobile devices. Research suggests that coupons are another way to attract
consumers because people like to believe that they are saving money. Research suggest that more
than 80% of consumers are willing to shop online when there is free shipping provided, it can be
beneficial for the business to provide free shipping and slightly increase the product prices to
compensate for this.
• Demographics and segments – Research
the eBay’s and Amazon’s I found males are more
likely to shop online then females (refer to graph
1). This means that Taobao can focus on products
that are targeted more from man as this will
reach more consumers thus increasing the sales.
Because most people shop online nowadays it is
very hard to identify specific market
demographics. However, because the products
offered are low priced it is likely that Taobao UK
will attract consumers that are price oriented. This means that the business will be targeting lower
income individuals who are looking on saving.
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Greaterheights. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £10.17. You're not tied to anything after your purchase.
