Executive Summary ................................................................................................................... 6
1.0 Company Profile ...............................................................
...
Executive Summary ................................................................................................................... 6
1.0 Company Profile ............................................................................................................. 8
1.1 Company Mission........................................................................................................ 9
1.2 Company‟s Product/Services....................................................................................... 9
1.3 Value proposition................................................................................................... 10
1.4 Positioning Statement ............................................................................................ 10
2.0 Market Analysis ............................................................................................................ 10
2.1 Target Market segmentation...................................................................................... 10
2.2 Size and Potential of market...................................................................................... 10
2.3 Unmet needs .............................................................................................................. 11
2.4 SWOT (Internal Analysis)......................................................................................... 11
2.5 Macro-Environmental Trends.................................................................................... 12
2.5.1 International ....................................................................................................... 12
2.5.2 Local................................................................................................................... 12
2.6 PESTEL analysis ....................................................................................................... 13
2.6.1 Political & Legal ................................................................................................ 13
2.6.2 Economic............................................................................................................ 14
2.6.3 Socio-cultural ..................................................................................................... 15
2.6.4 Technological ..................................................................................................... 16
2.6.5 Environmental .................................................................................................... 16
3.0 Business industry description........................................................................................ 16
3.1 Porter 5 Forces........................................................................................................... 17
3.1.1 Implications (Porter‟s Five forces)..................................................................... 19
3.1.1.1 Bargaining Powers of Buyers............................................................................ 19
3.1.1.2 Threat of Substitutes.......................................................................................... 20
3.1.1.3 Barriers to Entry................................................................................................ 20
3.1.1.4 Bargaining Powers of Suppliers........................................................................ 20
3.1.1.5 Competition / Rivalry........................................................................................ 21
3.2 Critical Success Factors............................................................................................. 21
3.2.1 Rate of receptibility............................................................................................ 21
3.2.2 Partnership with Banks in Singapore ................................................................. 22
3.2.3 Government agencies as venue-suppliers .......................................................... 22
3.3 Current Market Condition ......................................................................................... 22
4.0 Marketing Strategy........................................................................................................ 22
4.1 Marketing Objectives ............................................................................................. 234.2 Marketing Mix........................................................................................................... 23
4.2.1 Price.................................................................................................................... 23
4.2.2 Place ................................................................................................................... 23
4.2.3 Promotion........................................................................................................... 23
4.2.4 Product ............................................................................................................... 24
4.3 Pioneer strategy ......................................................................................................... 24
4.4 Niche penetration....................................................................................................... 24
4.5 Position/Defence........................................................................................................ 25
4.5 Profitable Survivor strategy....................................................................................... 25
5.0 Sales Forecast & Marketing Expenditure Budget ........................................................ 25
5.1 Projected Expenses (Budget).......................................................................................... 26
5.2 Projected Forecast (Profit).............................................................................................. 28
6.0 Implement and Control Plan ......................................................................................... 29
7.0 Contingency Plan .......................................................................................................... 31
7.1 Technological Glitches or Issues............................................................................... 31
7.2 Personal Data Issues ................................................................................................. 31
References ................................................................................ Error! Bookmark not defined.
Appendices ............................................................................................................................... 36
Group Activity Records ........................................................................................................... 38Executive Summary
The contents of this report are prepared by a marketing team in Facebook, subjected to
a business proposal for Facebook Inc. With key relevance to the report, the proposal is an
alternative establishment to Facebooks‟ primary source of revenue; Advertising. The epithet
to the newly proposed business extension will be FBQS. It is basically a concept that
integrates e-commerce platforms to functions of the QR-code.
The first section highlights Facebook‟s background, mission, product and services
offering, and the positioning statement against competitors. The report will then present
description of FBQS on how it will serve the company, who will the target market be, what
needs will it fulfil for both the direct clients and the end-consumers. Both qualitative and
quantitative data will also be presented to substantiate claims.
In the preceding phase of FBQS; within the allocated period of 12-months, Sheng
Siong, a popular supermarket in Singapore, is identified to be the first direct client the
company seeks to collaborate with. For strategic reasons, the partnership with Sheng Siong
will not only be vital in the introductory stage but is as well a valid stepping-stone for future
applications of the FBQS concept and potential business opportunities.
After which, market analysis will be conducted to provide insights on critical
consumer data, business validity and the market potential of FBQS. This is done through three
types of framework that are extensively utilised for such uses. They are namely, SWOT
analysis, PESTAL analysis and Porter Five Forces analysis. In summary, the SWOT will
provide a primary assessment of current weaknesses and strengths of the company and threats
and opportunities that FBQS can potentially face or are facing. PESTAL analysis will present
a macro-environmental assessment on Singapore; the place of launch for FBQS. Lastly,
Porter‟s five analysis will be conducted to evaluate the market attractiveness of the industry
FBQS will be competing in. As follows, the primary conclusion from data presented in the
analytical tools is that while Facebook is confronted with a few threats and weakness, it is of
reasonable presumption that strengths and opportunities weighs at a greater extend. Results
from PESTAL analysis is conclusive that Singapore is accommodative to administer the
launch of FBQS. Finally, even though Porter 5 five forces has revealed results depicting a dim
view of the industry but in a total perspective, the aptitude of Facebook Inc has the capacity to
overcome and ultimately making FBQS a feasible project. Critical success factors such as rate
of receptibility among end-consumers, key partnerships with banks and venue-suppliers will
be elaborated. A conclusive statement of current and predicted future market condition will
also be included.
Following, the report will present implementation of crafted marketing strategies and
budget considerations that are of core significance to FBQS. At start off, this section of the
report will identify and construe a relevant set of marketing mix; price, place, promotion and
product. It will then include implications of marketing strategies such as niche penetration and
pioneer strategy for the introductory of FBQS, position and defence strategy for the parent
company; Facebook Inc and finally a profitable survivor strategy for the integral of the
business proposal.
Finally, the report will include budget planning for the first 12-months and
expenditure forecast for the next three years of FBQS. Essentially, this portion will be an
account of anticipated revenue gains and production costs of the business. For the projected
expenditures, documentation and infrastructure and research and development is discerned to
be unnecessary for additional costs for valid reasons, staff and personnel will accrue to SGD$651,388 per annum, courier services – SGD $4.2 million and marketing and advertising
expenses to be SGD $300,000 per annum, other advertising channels as SGD $150,000 and
contingency expenditure for potential system failures, insurance, maintenance, system
upgrade investments to be SGD $50,000. The forecasted profit FBQS will generate is
estimated to be around SGD $3,000,0000. Based on the statistics, owing to the strength of
Facebook‟s strong branding as well as Singapore‟s endeavours to move towards a cashless
society makes this venture a profitable one. At the final section, the report will provide in
detail the action and control plans for FBQS and a contingency strategy to mediate any
potential lapse.
This page is intentionally left blank.1.0 Company Profile
Launched in 2004, Facebook Inc., the company known as a social networking
platform is now a globally recognised brand with an astounding market value of USD $407.3
million; ranked 6th in the world (Statista 2018). It did not take long for businesses to identify
the marketing capacity of Facebook to be used as communication tool to reach broader
audiences (Loureiro, Sandra and Daniela 2016, 705). Advertising has always been, and still is,
the most significant profit avenue for the company. As displayed in Figure 1, for the past
decade the company has experienced yearly growth in revenue and is showing no signs of
declivity.
In this report, a new business concept will be proposed to Facebook (Singapore). The
standpoint of the marketing department in this proposition is that advertising as a sole revenue
channel, while lucrative, may not be sustainable on the long-run. Given the economic position
and brand influence Facebook possesses today, the proposal is within execution capacity and
will be a prospective venture for the company.1.1 Company Mission
Facebook Mission
“To provide power to people to develop a community and bring the world closer together”
(Smithson 2017)
Facebook Vision
“People utilise Facebook to be connected to their peers and family, to find out the activities
and events going on in the world, and to share or express the things that concerns them”
(Smithson 2017)
1.2 Company’s Product/Services
The proposed business in this report will be labelled as Facebook QR Shop (FBQS).
FBQS is a concept inspired by TESCO (Homeplus) Korea where a QR code virtual store is
positioned in a subway station for people to shop during their transit (Sang, Jay and Kenneth
2013, 111). Another example would be Cold Storage (Singapore). In 2011, the supermarket
collaborated with SMRT had launched a QR code “shopping wall” on two train stations for
commuters to shop (Lur 2011) via their mobile phones.
The FBQS concept will be an extension feature of the existing Facebook App, linking
to Facebook's‟ newly established e-commerce platform in combination with QR code
technology (Refer to appendices 1 & 2). Apart from setting up physical QR-code virtual
stores on high human-traffic areas, the applicability extends to brochures and advertising
spaces in public transports, billboards etc. For the e-commerce platform, the QR code
payment will be an additional mode of payment to existing cashless payment methods. At
starting point, the identified target market of this business would be supermarkets in
Singapore. In this report, Sheng Siong supermarket is identified to be pitched first for the
following reasons:
1) No Sheng Siong outlet in Central Business District Area
2) Slow sales growth in the recent years
3) Has a TV game-show program with high-viewership rate.
4) Strategic partnership to tap into grocery-shoppers in Singapore
5) A local establishment
A central feature of Advertising is the form of communication channel used to convey
an intended message and is established as a mean to present an opportunity for consumers to
see. This business concept is essentially transcending print advertisements to not only an
opportunity to see but also an outlet for p
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