Australian Textile, Clothing and Footwear Industry - Magic Culture - Case Study Example

Magic culture E-commerce Site Business Plan Students Name and Number: Lecturer’s Name: Institution: Course: Date of Submission: 1.0 Industry Analysis Magic Culture which is a clothing company falls under the Australian Textile, clothing and footwear (TFC) Industry. The Australian TFC industry is known to make significant contributions towards the social and economic development of Australia. In an increasing globalised work place, the operating environment of TFC industry is being affected by the political, social and technological changes with knowledge and innovation becoming great drivers of growth in this industry. This industry is also subject to immense competition especially from the imports. The TFC industry includes a range of activities including designing, innovation, and manufacturing, processing and marketing activities. The industry contributes about $ 2.8 billion towards the country output and $1.6 billion towards exports. The industry employs about 48,000 in the formal sector and multiple numbers in the home-based employment. In regards to the product ideas and design concepts, they are sourced electronically. The industry is quickly moving towards a free trade market by reducing the tariff barrier. The reduction in tariffs is likely to pose a challenge as it will bring rise to competition from the influx of cheap imports while the increased access. The reduction in tariff will also offer a good opportunity for the industry to market their products overseas (Walsh, 2009). 2.0 Mission The mission of Magic Culture is to present the customers with stylish designs and cloths that put a lot of energy on all outdoor activities including snowboarding, drifting on the river and even running along the beaches. Magic Culture aims at offering the clients with durable and comfortable clothes that will make the feel wonderful and look good as well. 3.0 Products Magic Culture will focus on selling Women outdoor wear over the internet. The company will offer the women outdoor clothing in response to rising demand of seasonal women outdoor clothing. Magic culture will offer the following products Shorts Hats Pants Fleece outerwear. Shirts waterproof breathable, Rain gear, and coated nylon Synthetic clothing for outdoor activities 4.0 Keys to Success To have an accessible website We intend to create a website that will be accessible to all our clients and make it entertaining for them to surf through our website. We want them to feel like they are taking a trip to their favorite store where they are sure that they can always find something new To strengthen our advertisement We aim at coming up with a strong advertising campaign with the help of the internet. With the internet we will be able to access a large number of clients and potential clients To enhance our supplier relationship With the help of the internet, we will be able to enhance our supplier relationship and enhance the use of Just In Time concept. It will also make it possible to facilitate the manufacturing of quality Magic Culture clothing as well as enable faster shipment of all the clients orders Access quality design staff With the help of internet, we hope to get the best designers all over the world. We will be able to access a large number of potential qualified deign staff 5.0 Value proposition By shopping via Magic Culture website, our clients will get to benefit a lot. To begin with, the customers will be able to purchase our product from any place even if it so remote. With our website, even the customer in the most remote place has an option to buy and therefore, we will save their cost of driving and possibly, they can save that money and use it to but some clothing from our website. Also through shopping through our website, our clients will have greater control as the website will provide them with an easy to use ordering system that will enable then to chose products and make order for them in accordance with their own unique and personal specification. Moreover, the shopping via our website will save all our clients’ time as they don’t have to travel to come to our shops. They can get do all their shopping at the click of a button. In addition, shopping with our website will offer our clients with the convenience of shopping at any time of the day. Every product will have a product catalogue with a detailed description of each product and all the information that the customer may need to make a purchasing decision at any time of the day. The customer will also get all the warranty information in our shopping cart which will ensure that all our clients will be fully aware of all the terms and conditions associated with buying a particular product. 6.0 Target Market The target market of Magic Culture will be two groups of women who usually buy outdoor clothing. The first target group will comprise of women aged between 17 and 25 years. Young people drive the e-market and for this reason, this group is an important for our business. They have less money as compared to the older women and are budget conscious and for this reason, we have to give them the products that they want for less money. The main objective here is to have less expensive selection in each group of clothing that had a popular cut. We believe that the small purchases from this group will grow bigger with time. The second group of our target market will be women aged between 26 and 40. They are our main target group and they will drive the success of Magic Culture group. This group is a main driver to growth of the outdoor women's wear market. We acknowledge that they will be harder to pull to the website as compared to the young ladies. However, once we get them to our website, we will ensure that we convince them of our attractiveness in terms of our product quality and saving they will make if they shop with us. Moreover, we will ensure that the product description will fit customers’ expectation. It is of utmost importance that the return policy is fast and hassle free. The chart below indicates the proportion of each group of our target market. The table below shows an analysis of the projection of the sales growth the company expects to get from the target group Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Customers Growth CAGR Women Ages 16-25 20% 6,000,000 7,200,000 8,640,000 10,368,000 12,441,600 20.00% Women Ages 26-40 15% 5,000,000 5,750,000 6,612,500 7,604,375 8,745,031 15.00% Other 0% 0 0 0 0 0 0.00% Total 17.81% 11,000,000 12,950,000 15,252,500 17,972,375 21,186,631 17.81% 7.0 Competitive Analysis The competitors of Magic culture in the outdoor women wear are many including Timberland, Patagonia ,Bass Pro Shops, Cabello’s, L.L. Bean and REI. All of these companies have created their own online shopping website for their customers. In general the market for the outdoor women wear is said to be positive by our competitors for several reasons. To begin with, the consumers are now participating more in recreational activities and many are also investing in this activities near their homes. Also, consumers are increasingly looking for better ways to enjoy their leisure time with their families and friends without having to spend a lot of money and finally, customers are more willing to spend more. For these reasons, all our competitors are trying as much as we are doing to make their website the customer’s choice. A look at our competitor’s websites indicates that they have tried as much as possible to make sure that it has the features of a good website. Our competitors know too well that the first impression is always the last impression. They have tried to make their websites as attractive as possible so as to draw their visitor’s attention. For instance, a visit to Patagonia website leads you to attractive photos of customers in their outdoor activities in outdoor wear that they have purchased from the companies. A visit to Bass Pro Shops and Cabello’s websites leads you to the latest discounts in large letters which are flashing to attract the attention of the customers. However, on a closer look, there are several flaws with the websites of our competitors which we will take advantage of to stay ahead of them. First of all, none of the websites display a specific target audience. A quick scan through the websites of our competitors does not reveal who the website is targeting. Magic Culture website will target only the two groups of women and we will ensure that the headlines and the texts on our websites will clearly meet our target audience needs and wants. We also found that some of the competitor’s website like Patagonia had a problem loading. The speed of loading is slow. Magic culture website will be fast to load as we understand that generally, customers are impatient and that they will switch to other websites if they find that ours is taking too long to load. We will reduce the number of background images and flash objects so as to increase on the speed of loading. We will also make sure that the images are optimized and that the codes are clean. In addition we found out that some competitors website like Timberland were very difficult to navigate on them. It is not easy for a visitor to navigate through the website easily. Magic culture will ensure that the visitors are able to find all the desired information without having any difficulty. We will place our navigation menu right at the top where all the visitors can locate it with ease. We will also make sure that the navigation links anchor texts are easy to understand and are relevant. We will ensure that the website is well organized so that the customers will have an easy time shopping. Although our competitors’ website had product descriptions for all the products that they were offering, none of the website had warranties to let the customers know what the terms and conditions are of purchasing a particular product. Magic culture intends to have this unique feature which will ensure that the customers are sufficiently informed of our terms and conditions of purchasing each product. Although all the websites allow the customers to purchase the outdoor wear online, none of the competitors have put in place a tracking system to allow their customers to track where their goods are. Magic culture will have a tracking system so that the customers can know where their shipments are and how long it will take them to have the goods. Also, none of our competitor’s website has put in place chatting system where customers who have difficulties purchasing online or have inquiries can have an immediate response. Magic Culture website will have a chat system where will have customer care representatives who will be attending to the customers inquiries. This is better than sending their inquiries through email which may a lot of time for us to respond. 8.0 Marketing Strategy The marketing strategy of Magic Culture will be introducing our product and our website. We will do this via women’s fitness magazines like The Australian Women's Health & Fitness Magazine (WH&F), we will also advertise in Ellegirl and Cosmo Girl magazines. 9.0 Sales Strategy Magic Culture will launch an advertisement campaign worth $245,000 that will target our target. The name of our advert will be “save the money that you give to middlemen and spend it on outdoors and enjoy your life”. The attractive logo of magic culture logo will be displayed in our advertisements. We will continue doing this for the better part of the year until we start making profit Sales Forecast We forecast that the company’s sales will be small as it opened and will increase at a constant rate in the first year as our customers continue to increase. We expect to get a sales increase of 38% in the first and second year. The charts shows our monthly and yearly sales forecast References Porta M (2009), Eight Characteristics of a Good Website. Retrieved on September 11 2012 from http://www.successdesigns.net/articles/entry/characteristics-of-a-good-website/ Walsh S (2009) Australian fashion Directions – getting it right. International Specialized Skills Institute: Australia Gefen, D., & Straub, D.W. (2004) Consumer trust in b2c e-commerce and the importance of social presence: experiments in e-products and e-services. Omega: The International Journal of Management Science, 32, 407- 424. Chen, C. (2007). Consumer trust in an e-retailer: an integrative model directed toward customer. PhD Dissertation, The University of Arizona, Arizona. Lin, H.F. (2007). The impact of website quality dimensions on customer satisfaction in the b2c e-commerce context Total Quality Management, 18(4), 363-378 Kim, E. (2003). Factors impacting customers' trust in e-businesses: an empirical study of customers' initial trust in e-business PhD Dissertation, Southern Illinois University, Carbondale. Read More