Executive Summary
There is need in the Emirati society to establish a charitable organization that will give citizens specialized services at a reduced price or without any cost, depending on the nature of their needs. In the developed countries, the government has the major role of ensuring that citizens realize their potentials, as the major function of the government is to enable individual fulfilment.
Based on this, the western society has a developed charitable system that relies on various stakeholders for funding and operations. Similarly, this is possible in the Emirati society, as long as various stakeholders will accept to play their roles faithfully by availing resources and empowering the project.
Charitable organizations often depend on donors for funding, but this is not the guaranteed source of capital, as some of them could perhaps pull out at the most critical stage, particularly when the project is about to achieve goals.
Therefore, the charitable organization to be set up will come up with a different strategy of sourcing funds, which would be mainly through online disposal of products through the auctioning system. The project organizers will put in place measures, strategies that would ensure top-quality products are obtained from various individuals at a reduced price, and the same goods would be sold to the highest bidder.
The prices offered would be competitive in the market and the staff will exercise the highest moral responsibility to an extent that no bidder will ever raise complain over the loss of his or her capital.
We will continuously develop the relationship with various stakeholders, including suppliers and customers, to make sure the light is shed into the lives of the majority hopeless individuals in society who are unable to meet their primary, as well as secondary needs.
The project will definitely succeed in convening its core objectives because it aims at offering something different, pleasant, and heart touching. The type of purchasing environment that would be created would in fact cater for the customers’ interests since research shows that an organization with the interests of the customer at heart will always succeed.
The type of services offered to customers are professional in nature and customer’s experience will encourage them to come back and some will go an extra mile to recommend the service to other clients wishing to support the program.
Once the project kick-starts, it is expected that it will rise adequate funds within the first month and the same funds will be channelled towards funding the activities of the charitable organization. The project owners are determined, as well as inspired and this is the most important factor as to why the organization will achieve its objectives.
Business Ideas and Description
Instead of competing with the existing ideas on business development and capital rising, the project owners decided to take a different approach that would instead give them a competitive advantage in the market. Several charitable organizations exist in the society, some of them being governmental while others are non-governmental.
Unfortunately, a majority of the non-profit organizations depend on the government and foreign donors for funding, something that deprives them of the right to independence and innovativeness. Before introducing a new aspect or concept in externally funded project, donors have to be consulted and their approval is critical to the success and implementation of the idea.
The project will devise specialized techniques that would fulfil the interests of clients, one of them being time management and the other is adopting a liberal leadership approach. Customers will not have to wait for long to know their fate once they place their bid and auctioning takes place.
In fact, an email confirmation will be send, as soon as the highest bidder is determined and the rest of the bidders will be notified to avoid speculation. Consultation and clear information circulation will be the major aspect of the management in order to prevent confusion and conflicts, which have the potential of derailing the achievement of the desired goals.
Whenever an opportunity presents itself, project coordinators will not spare any minute to explore it meaning that flexibility is another business strategy that will be employed in ensuring that the project attains its objective of raising sufficient funds to help the hopeless in the community.
The project will target all individuals in society, irrespective of gender, class, and religious affiliation. Some practices and policies of several businesses in the country discriminate individuals based on their gender and class. This will be the first project to employ modern managerial and marketing techniques that do not rely solely on demographic variables.
For any project or business idea to realize its potential goal, setting an objective is critical and the owners of this project will aspire to come up with short, intermediate, and long-term goals. The long-term goals would be to form a large-scale online auctioning firm whose proceeds would be used to save lives and provide critical services to the vulnerable in the global society, not only in the country or in the region.
These long-term goals would be attained in a period ranging from eight years to twelve. However, the short-term goals are the most important and they will have to be attained within a year hence they have to be visual. The set goals are numerical and are perhaps measurable, as they will be quantified based on the number of customers that place their bids successfully.
The project owners underscore the fact that public relations, media handling, and efficient communications are some of the backbone of any business project. Any information released to the media, especially the social media regarding the nature of the project will be credible, and sufficient research will be conducted before offering any communication.
The world in which we live in is smaller implying that business owners will have to think globally and understand the dynamics of the global market. Cultural aspects influence the success of the business and all project owners will have to consider cultural diversity when dealing with customers.
In fact, members are encouraged to travel to various places across the world, particularly in develop countries where charitable organizations are more advanced. Finally, no business in the modern society can succeed without employing technology effectively.
Based on this, the project will rely on e marketing in disposing its products, as only internet bidding and auctioning would be the ways of dealing with customers. Technology has the potential of either boosting business or bringing it down, depending on how it is employed.
Unique Selling Point
Unlike the existing selling points that are often employed by the conventional charitable organizations in the country, the project owners decided to employ a more recent technique, which is online auctioning that is mainly applied by western non-profit organizations, such as institutions of learning and human services organizations.
Since time in memorial, human beings have employed marketing strategies, but these tactics keep on changing based on the changes that take place in the community. The marketing strategy has to change with the changing human needs and expectations. The interaction between the new communication technologies and the old marketing principles has resulted to e marketing.
The major principles of marketing would be applied through the electronic media to capture the attention of the customers. Studies show that electronic marketing has a high possibility of attracting new customers, retaining the existing clients, and enhancing the identity of the brand. It is expected that the returns on investment would be high.
Through the new system, highest bidders will have the opportunity of viewing the product they intend to purchase without visiting the premise or travelling for longer distances to present their bids physically. Electronic marketing has four major benefits that the project wishes to capitalize on to realize its objectives. The following strategies will be employed in online donation.
Instant processing of donation via PayPal, Credit cards, wire transfer, and electronic dirham will be employed. The transaction process would be made safer through the secured IT system. This will encourage adequate collection of donations and participation of individuals.
Through electronic marketing of products and allowing potential buyers to place their bid, the targeted group will be large and those reached would be many. It means that even those individuals in other countries wishing to support the program through buying our branded products would simply have to connect to the internet instead of travelling or writing letters, which are both time consuming and costly.
Additionally, online auctioning consumes little resources as compared to traditional selling techniques. Another befit of online auctioning is that it allows the project owners to reach many consumers in a number of ways hence they would be able to access wider range of products.
This implies that it would be easy to handle information, strengthen our relationship with the public, and offer quality customer service, as chat services would be possible. Online auctioning is a form of selling that permits interactivity, something that traditional marketing strategies could not offer, even though our competitors apply them.
In case we decide to bring changes to the way we operate, it would take few seconds to inform all the stakeholders of the new changes meaning that the form of communication is two-way. This allows customers and other stakeholders to be more adaptive and dynamic. The use of online auctioning in rising funds for the charitable organization has an instant result, what scholars refer to as immediacy in business.
When the potential customer comes across a product on auction in the internet, chances are high that he or she would go through its features and the price to determine whether it suits his or her needs. This is referred to as actual acquisition whereby the consumer takes the step of perusing through the details of the product after hearing about it for several days or years.
The use of electronic marketing would allow the project to run for 24hours a day, seven days a week, and thirty days a month. Online auction closes the gap between the information circulation and advertising and consumer reaction whereby the customer makes a move of placing his or her bid.
The new system of selling speeds up the buying cycle and allows the project owners to channel the available resources towards creation of immediate leads in advertising. With online auctioning, it would be possible to analyze the consumer demographics and targets since this is considered the ultimate dream of any marketer.
Finally, the use of online auctioning in disposing products enables the project coordinators to track the response, which is critical in understanding the dynamism of consumers regarding their needs and expectations.
Customer responses are evaluated in real-time and project owners are able to reply continuously. It can be concluded that the use of online techniques presents new opportunities to the project and it would be able to acquire strategic competitive advantage over other charitable organizations regionally and globally.
Mission Statement
The mission of the project is to enhance charitable work incomes in the Emirati society, as well as augment the revenues through adoption of online means of raising funds and online auction. The new online auctioning project for the charitable organization offers a unique service to clients in the Emirati society, one that places much emphasis on customer pleasure.
The project owners understand that the process of acquiring products from supplies and disposing them to highest bidders is efficient in raising funds for the organization, but it comes with several challenges.
Therefore, the major goal is to offer enjoyable customer experience, honest service that would satisfy clients and arrangement of after sales services. Through this, the project owners are confident of success and mutual relationship with several stakeholders.
Goals and Objectives
- Incorporate novice ideas in charitable work in the UAE in a diverse way to increase resources and sustain the organizations’ income through online contribution. The second objective would be related to financial growth. The organization will be aiming to realize, as well as exceed the industry normal income margin in the period of two years.
- To integrate online auction into charitable trust work whereby everyone is offered an opportunity to participate in the splendid work.
- The main goal is to improve the performance of charity work by incorporating live action and online action in the work.
- The first goal would be to satisfy clients who place their bids. The objective will be measureable through checking whether there are any repeat purchases, whether a friend recommended the new bidder, and the project coordinators will conduct infrequent surveys to establish the levels of satisfaction
Location of Business
Several factors influenced the choosing of Abu-Dhabi as the main centre of operations, even though a small office would be set up in Khalifa City Abu-Dhabi to supplement the activities conducted at the head office. Several factors influenced our choice of location. Within the city, there are cheaper premises, but spacious that would be used for storage of products.
Additionally, the city has some of the best buildings that could accommodate the main office. The owners have the option of renting the premise with an option of buying it. In some other cities, this service is unavailable since a few aristocrats who would do everything possible to ensure that young innovative minds do not succeed own buildings.
Online action calls for the recruitment of several employees, with others working on commission. Moreover, clients might be established organizations and companies. Abu-Dhabi is the most preferred destination since major businesses have their head offices there.
Studies show that the location of the office have the potential of attracting employees because some regions have insufficient infrastructure that makes it difficult for goods and services, including human labour to move freely. Since it is one of the most developed cities in the country, Abu-Dhabi will serve the interests of both the employer and the employees.
The goods that the organization intends to sell online through auction are mainly automotive. Studies shows that people living in urban areas are mainly middle-class and they have a tendency of replacing their cars frequently. Therefore, the location of the business in the city is strategic, as goods would be collected and delivered easily.
Form of Business Ownership
Several forms of business ownerships exist in the modern society, but a number of factors encouraged us to form a partnership. Usually, partnerships entail the coming together of two or more people to form a business. Under the arrangement, the returns, liabilities, managerial roles, and the execution of duties ought to be ratified in a clearly signed agreement.
In the project, each partner has a clearly defined role to play, with five students each being in charge of defined section. M will be mandated to plan the overall approach and will determine the size of our action, and strategize how the charity work will fit together with other fundraising strategies.
H will acquire the items to be auctioned. Considered that successful auction necessitates competitive items, Hazem will be required to find these items by networking with potential customers, donors and other relevant stakeholders. S will reach out for the participants. Sultan will be required to market the program through emails and social media.
Notably, the success of the project heavily relies on sultan because marketing is a key facet of online auctioning. A & M will search and acquire online auction software or apple and android applications. Currently, there are several companies offering online auction software. They will search for the most appropriate software or that will ensure that the project attains its objectives.
The law talks extensively about the forms of business partnerships, with the applicable law stating that a creditor has to seek recovery against the assets of the business before trying to recover any funds from the individual assets. This implies that individual assets could be used to offset any bills that the business might have incurred in the course of its operation.
We know that personal assets are likely to be lost if the project fails to kickoff as planned and creditors fail to recover their money. This serves as a motivation for us to work hard because any recklessness would lead to the loss of personal assets.
One advantage is that the law prevents partnerships from dual taxation since the internal revenue code suggests that earnings generated through partnership businesses are remitted and would be taxed directly to each partner. In fact, exception from dual taxation is one of the reasons that encouraged us to go for partnerships rather than corporation.
General Operational Resources Required
The process of setting up a new venture is always complex since many of them fail to kickoff while others operate for shorter periods. However, studies show that an entrepreneur who prepares well has all the reasons to succeed, even though there is no guarantee. Based on this, the new online auction venture should have all the operational resources to prevent it from collapsing in its initial stages.
Several resources are required to realize this dream, including financial, human, educational, physical, and emotional. Financial resources are the most important since sources of funding should be clear and consistent to enable the project to take off. In this project, the initial operational costs would be registration charges, installation of the telephone line, and printing the cards for designated clients.
The main source of funds would be online auctioning. For the purchase of the basic operational equipments, a loan would be obtained from the local financial institution while grants will be sought from several stakeholders.
For a business to move forward, availability of human resources is critical and the project will be reliant on the talent and strength of the owners, as they will be the direct employees of the project (Rajagopal, 2007). Apart from owners, a few other employees with adequate experience in online marketing will be hired on contractual terms. Through a competent workforce, the project is likely to implement its mission statement and goals
Environmental Analysis
Analyzing Internal Factors using SWOT Analysis
According to Hersberger (78), a firm will always succeed in the market if it has the capacity to take advantage of strength. The new project has a number of strengths that would probably enable it become more successful in the market. One such strength is the massive experience that its owners have had in the field of marketing and online trading.
The new project has been in the offing for quite some time and the owners have been exploring the possibility of establishing it. Each member is given a specific issue to handle, something that makes it easy to coordinate activities and link up with all he stakeholders (Hill, & Westbrook, 1997). Knowledge of online trading would help the project owners know how to face various challenges in the market in a manner that is cost effective.
The owners know how to handle customers and understand the challenges that online auctioning present. This knowledge would also earn the project trust with customers making it increase its market share to regions beyond United Arab Emirates.
The strength of this project that would help in propelling its growth has is its financial strength because all car dealers are willing to participate in the exercise and they are promising to give substantial amount of cash. This project would have enough financial assets to support various projects that can help it expand its operations.
Another important strength that would help this firm is its base of skilled employees who understand the online market. These factors two factors would help this firm experience massive growth over the years to become the one of the largest online auctioning firms that sponsors the need.
The project would have a number of weaknesses that would perhaps affect its capacity to increase its operations in the world market. One of the main weaknesses that would affect this firm negatively is its slow response to the emerging technologies, such as the use of the software in developing business. Online marketing demands that the business adopts the most efficient technologies.
This firm would suffer massively due to the speed at which it would have to implement some of the new technological systems in a major office in Abu-Dhabi. Large firms have always found it very challenging to adapt to changes in the market meaning that it would be a challenge for the new project to convince large car dealers to employ technology.
This may explain the slow pace at which this firm would able to respond to these changes. Another weakness that this firm would have to face is its inability to retain its skilled employees in the two centres where it operates. It is an expensive venture to train an employee on online marketing.
This means that when these employees are lost, the firm will go at great loss because it will be forced to train the new employees. This would perhaps affect operations of this firm.
The market in which the project is expected to operate has a number of opportunities, which would be of great help in pushing this firm towards success. The massive Abu-Dhabi market is one of the greatest opportunities that have helped in growth of many companies and this project is expected to tap from the market.
Another opportunity that this firm would be keen to tap into is the takeovers of large, but poorly performing non-profit organizations that have been utilizing public auctions to raise funds. The use of the internet in reaching customers would present massive challenges to competitor in the market.
The fact that economy where this project is expected operate have been able to control inflation and the fact that recession is no longer an issue in the country would helped this firm increase its customer base.
The market poses some threats despite the above-mentioned opportunities. The biggest threat is the stiff competition posed by various competitors, both in the local and international markets. These competitors are very aggressive and if this project is not managed carefully, it would not find a way of remaining competitive in the market.
In fact, it might be forced to close its operations if sufficient strategies are not put in place. New government policies are also posing serious challenges, which this firm has to take care of in order to remain operational. For instance, the owners of this project must understand varying policies of that guide auctioning in different localities, including overseas markets.
Failure to understand these policies may have serious negative consequences on its operations. This project can even face litigation in some of the localities if its operations are considered to breach the set laws and regulations. Another threat that the project will have to face is the unscrupulous customers who would constantly ask for compensation just to fleece finances.
The cartels always stage-manage events and then they claim hefty compensation. This would reduce the profitability of the project and its ability to expand its operations.
Various local governments where the project is expected to operate are yet to come up with strong measures to curb unethical business practices that people conduct in the internet. The project owners will have to seek the protection of the government to prevent reported cases of fraud.
PESTEL Analysis
The external business environment of this project has been full of a number of challenges. The economic environment of the country was shaken by the recent world economic recession hence reducing the profitability of many organizations and companies that are likely to participate in the exercise.
The political environment has been generally stable. Technological improvements in this field have helped ease its operations, while the legal environment would be important in regulating the relationship between this firm and other stakeholders. External factors of a business unit will always determine the ability of a firm to operate successfully.
The project is expected to enjoy a mutual relationship with the populace because it mainly focuses on improving lives. Therefore, there would be no hostility, both locally and globally.
This is the reason that is would help this project achieve its high status as the premier humanitarian organization in the country. The socio-cultural environment would not affect this project because individuals all age groups and classes will be involved.
A good marketing strategy starts by developing a good market research. Market research will help the project to understand some of the forces that will affect its normal operations. This firm must understand its customers in terms of age, race, population, location, income level, and their tastes and preferences.
This firm targets Arabs of all ages. It must categorize these customers based on their ages, and determine foods that are most desired in each age group. The location of this firm at Dorchester Street offers it the best opportunity to attract visitors who come to this island.
The management should determine any difference in tastes and preferences that may exist due to gender difference, and then ensure that each gender receives the product they desire most. Determining the social class of the customers would also help in determining such factors as pricing. Most of the visitors and residents of this region are categorized as middle and upper income earners.
The economic environment in this country has also been stable. According to Thoma (2009), United Arab Emirates is one of the wealthiest countries in the world, with the rate of unemployment estimated to be less than 6%. The project has the capacity to benefit from this stable economy. The purchasing power of the market is relatively high.
The management must find the best approach of reaping maximally from this developed economy. The social environment in this society is varied. UAE has people from different ethnic groups, some of whom migrated into the country recently.
The social environment is always important, especially when designing marketing strategy that is most appropriate in the market. This firm’s products target the Arab market, especially people from the Middle East. It can also design its products and marketing strategy to attract customers of different cultures within this society.
Technology is one of the factors in the external environment that have influenced operations of firms in various ways. The project coordinators cannot ignore the emerging technologies. Technology can help this firm improve efficiency of its operations. It can also help to improve communication with the customers.
Social media has been considered as an important technological tool used for marketing and enhancing communication between the project and its customers. This project should also point of sale (POS) technology to enhance efficiency and accuracy of its financial operations.
The management can also develop its communication system to enhance its strategy development using technology. For instance, the management can use decision support system (DSS) as a way of ensuring that most of its decisions are based on a scientific premise.
The society has been very sensitive on environmental issues. Laws have been developed in this country to regulate issues such as industrial emissions and effluents that affect the environment negatively.
Project owners must make an effort to ensure that its operations do not contravene laws and regulations of this country that are set to protect the environment. The managers of this project should find a way of engaging in such activities in whichever way that is within its capacity. Given its small size, it may focus on a smaller region in its corporate strategies.
Finally, the managers of the project should be very sensitive to issues regarding laws of the land. A firm cannot survive in a market that lacks laws and regulations to govern the relationship between one firm and another, a firm and its customers, a firm and the government, or any other relationship that a firm may find itself in during its operations.
The managers of this project will have the responsibility of ensuring that it follows all the laws and regulations set in this industry on such issues as levels of hygiene, qualifications of the employees, remittance of tax, and any other legal requirements set by the government.
Observing these rules will help this project avoid any legal actions that may be levelled against it. Legal suits have the capacity of reducing profitability and exposing the project to injustices.
Survey Results
Age Analysis
Data obtained through questionnaires were analyzed and the results are presented in this section. The results suggest that people of all ages are interested in supporting charitable organizations through participating in online auction. However, a close evaluation of the market suggests that not all ages are important in assessing the performance and viability if the market niche.
For instance, ages between thirteen and twenty-five are interested in supporting the program through participation in online auction, but they members of the age group do not have financial capacities to purchase the type of products being traded. Very few of them would actually purchase the products, as the social stratification does not allow them to do so.
The project is expected to perform well in the market because the ages between twenty-six and thirty-five are willing to support it. Members of this age group have substantial purchasing power, but individuals between the ages of thirty-six and fifty are the best, even though few of them are willing to support the program. The results are presented in the following chart and table.
Interested in charities * Age Cross-tabulation
Out of the twenty individuals interviewed, thirteen of them are willing to support the project through buying products online. Only one individual aged between 36 and 50 years is interested in supporting the project. Fortunately, the target population, ages between 26 and 36, is interested in charities since six out seven expressed their interest.
Those interested in giving their donations are many, and a good number of individuals are willing to give their contributions personally rather than engage in online purchases.
Members of the target age group wishing to contribute through giving directly are more when compared to those willing to purchase the products online. The encouraging thing is that no one is willing to drop his or her contributions in boxes or cans. The following chart and table captures this clearly.
Prefer to donate * Age Cross-tabulation
Within the target age group, members who do not prefer using technology are only two while those who would wish to communicate online are five out seven. This shows that the project will definitely achieve its objectives because the target population is willing to use the chose method of communication, as expressed in the chart and table below.
Like communication technology involvement in the charity work * Age Crosstabulation
The results of the survey indicate that few people are unaware of other methods of rising finances for the charity organizations. When asked whether they would be interested to join an online auction for charity, only one member of the target population accepted while other four expressed a possibility of joining.
Encouragingly, members of the age group between 36 and 50 also accepted to join online auction while one of them agreed to join in the future. This shows that the project coordinators have a daunting task of informing people of the importance of rising funds through online auctioning. The following graphical data captures this clearly.
Interested in joining an on-line auction for charity purpose * Age Crosstabulation
Of all the 20 people interviewed, only one person in the target age group expressed concerns conventional method of collecting donations. Six members favoured the conventional and no member from the age group ranging from 36 to 50 expressed concern with conventional system.
Age is directly proportional to an individual’s interest in technology since young people aged between 13 and 25 had hopes with the online auctioning, as the following graph and table show.
How good are charities in what they do in conventional way * Age Crosstabulation
Similarly, a number of individual do have trust with online auctioning mainly because it is associated with fraudsters. Only one person in the first age group trusted online auctioning whereas only two from the target age group had trust. The following graph and table shows this.
Trust online donation or auction * Age Crosstabulation
Within the target population, the number of those who confirmed to attend the first online auctioning exceeded the number of those who would not. This was very encouraging because the project would have customers once it is launched. Many school going children would not have time to access the internet and this explains their absence at the fundraising dates, as proved from the following graph and table.
How likely are you going to attend our fundraiser online * Age Crosstabulation
All participants confirmed that our fundraising goals were very clear, as shown below
How clearly did our project explain our fundraising goals * Age Crosstabulation
Concerning the updates on what could be going on as regards to fundraising, a majority of those interviewed preferred emails, with four of those from the target population supporting email communication, as shown below.
How would you most like to receive additional information regarding our fundraisers * Age Crosstabulation
Gender Analysis
The results of the study revealed something that is inconsistent with what literature review would suggest because the number of men who are interested on charities is higher than that of women.
In western countries, women would be expected to donate to charities, but the Emirati society is different meaning that adequate funds are going to be raised. Men are known to control the financial system and their interest in charities is a boost to this project. The following table and char prove this assertion.
Interested in charities * Gender Crosstabulation
The number of women wishing to donate their contributions personally is higher as opposed to those interested in giving out through online auction. Since a majority of people are not interested in box collections, it shows that they are willing to switch over to a different system if given sufficient training and guidance. The table and the chart prove this.
Prefer to donate * Gender Crosstabulation
Even though many men might not be interested in online auction, they support the use of technology in collection of charity funds. However, women are reluctant to adopt technology since only two out of eight would like the use of technology in fundraising.
Like communication technology involvement in the charity work * Gender Crosstabulation
Just like in age distribution, the number of both men and women willing to participate in online auction is high, but those who are ready to adopt the system instantly are few, with only three men out nine and two women out of six confirming.
Adoption of technology is still something that the Emirati society is reluctant accept because three men observed that they will never approve the use of technology, with two women following suit.
Interested in joining an on-line auction for charity purpose * Gender Crosstabulation
The number of those who might engage instantly in online purchasing is equal to the number of those who would join in the future for men, but the case is different for women, as only two of them confirmed instant participation while six expressed future interest. This shows that women would turn out to be the major supporters of online auctioning for purpose of donations because no one of the eight sampled denied engaging in it in future.
Willing to buy on online auction for donation purpose * Gender Crosstabulation
Just like in the case of age distribution, the number of individuals willing to donate their contributions online is less as compared to that of individuals who would be comfortable with the conventional means.
Like online auction or the conventional way of auction * Gender Cross-tabulation
Determination of the Target Market
Within the Emirati society, almost everyone is willing to support the charitable work, even though some are unable because of low financial capabilities. Again, many people are interested in acquiring new vehicles each day implying that they engage in research on what model or type of the vehicle they would be willing to buy.
A car has become almost a basic need because it is needed in taking an individual from point to the other, something that is encouraging as far as the project is concerned. Official data indicate that many people have either two or many cars and they would be willing to dispose them at a fair rate, especially when they realize that it would do some charity work.
The achievement of the new motor vehicle market in the nation, particular Abu-Dhabi City implies that a large catalogue of used cars is accessible for disposal. In the recent month, the number of individuals who acquired new cars went up, yet the old ones are still under their possession. Several techniques would be used to establish the number of potential customers in the market. Some of these methods are explained below:
Determining the Market
Market Survey
Market survey is an important instrument in the collection of data regarding the market. If the venture is to achieve something, an analysis of the market has to be carried out and the most helpful instrument is the survey. However, it does not mean that a survey is the only instrument that ought to be relied before offering products since marketing plans are equally important.
In modern society, the market is ever changing and it is currently complex and competitive to an extent that it has pushed other firms out of business. Therefore, the only sure way of understanding the market is conducting continuous research to establish its nature. Surveying entails objective and systematic collection of critical information, recording data, analyzing, and finally interpreting the same data to take not of the risks.
The survey will be employed in analyzing the size of the market, as well as the project’s anticipated share as far as volume and value is concerned. Since the method used in fundraising is new, the project coordinators will want to know the pattern of demand that is, to establish whether it is seasonal or fluctuating. If it is seasonal, the purchasing team has to know the exact time when customers need vehicles.
The survey plays a role in establishing the demographic structure of the market, such as age, gender, and economic status. Whenever the project coordinator wishes to identify the buying habits and the motives of various clients, conducting market survey is recommended implying that the instrument will of great use to the project.
Certain products might demand unique proposition, but the project coordinators might not be familiar with such propositions hence the use of survey is recommended. Some studies suggest that online auctioning has always been affected by fraud and other uncertainties, but this would be difficult to ascertain unless market survey is conducted to either authenticate or refute the claims.
When using market survey, several processes are recommended, one of them being defining the objective clearly and delineating the type of information needed. This means that the researcher in this case would have to identify the sources of information, assess his or her available time and cost, and move ahead to adopt the better methodology.
Selection of a sample would then follow whereby the participants are determined and the best time to conduct is identified as well. The commonly used tool in data collection is the questionnaire, which has to be prepared depending on the nature of information needed.
The researcher will then go out to collect the needed data using the questionnaires, which would culminate ton data analysis using mathematical formulas. Finally, a report is prepared, but it has to be based on the collected and analyzed data.
Secondary Data
This refers to the type of data that is contained in various reports, both official and academic. For instance, census reports are important in providing gender, social status, and age distribution of the target market. Banking institutions can provide valid data that could be used in identifying the potential customers.
For instance, it can offer information on customers who have ever taken loans to purchase vehicles, even though any bank would be reluctant to release this critical information. Traders engaging in automotive parts and car dealers usually keep records of their customers and they would be important in identifying the frequency with which a certain gender or age group buys cars or spare parts.
Target Market Characteristics
Segmentation means analyzing the market based on the needs. In the Abu-Dhabi market, those targeted would be students, families, retirees, and youths. An analysis of the survey data revealed that high school and college students would perhaps make up a good market for the online auction, as they fall in the targeted age group of between twenty-five and thirty-six years.
For students, they would want to get high quality cars, but at reduced prices since a majority of them are unemployed and still depend on their parents. For young people, they are keen on acquiring products with flashy looks, but at low prices, as this would enable them be considered cool.
Additionally, this category of the market is never keen on other car specifics since they are less educated on matters related to durability and class since their only aim is to be cool.
Again, their buying pattern is based on impulse buying meaning that they do not take time to analyze a product before settling on the one to acquire. This would perhaps be an advantage since they will always admire the vehicles once they are refurbished and remade.
Retirees make up a substantial share of the market, but they are keen on buying any product having accumulated adequate experience on car purchases. For them, they will be focusing on practicality and cost would not be an issue, as they will be obsessed with quality. The group would be in need of good cars that offer quality and that is why the their vehicles will be nicely equipped at a fair price.
Families are another target market that the project coordinators will have to consider in offering online auctioning services. The cars for this category of the target market would be designed in such a way that they will be able to fetch children from school, collect groceries, and perform other heavy duties.
As is always the case, the family will never engage in impulse buying, but instead all resources would be planned effectively before making any purchase. Therefore, the price will be a major factor to consider in this case.
For the youths who are through with school, they will be in need of flashy vehicles, just like students, but they are a bit different because they have adequate cash to spend on cars, given the fact that they are young professionals working in various organizations. The following chart and table show the buying power of various potential customers in society.
Market Evaluation
(Pinson, 2004)
Competitor Analysis
SWOT analysis suggests that establishing the weakness of the opponent and realizing the opportunities within the environment is very important for the success of any project. In this project, all competitors have to be identified and their strength documented. This would make it easy to compete with them effectively, as charitable organizations rely solely on well-wishers for funding.
The standards should be high to match and even surpass those of the competitors. A preliminary study conducted before the commencement of the project reveal shows four trends in the automotive market. One of them is that new cars entering the city on daily basis are many, which has contributed enormously to the supply of high-class vehicles.
A number of customers have come to value the significance of rebranded cars and some are prepared to pay extra. Another trend in the car market is that low interest rates offered by financial institutions are giving consumers an advantage in the market.
Trucks and saloon cars sale better as compared to the passenger cars. Finally, the type of vehicles meant for reaction is in the increase and they are the ones that should be acquired in order to satisfy the market. After analyzing the trends in the car market, it is prudent to look at the competition among charity organizations.
At least five fully developed charity organizations exist in the city of Abu-Dhabi. The one affiliated to our project, Red Crescent for United Arab Emirates, is a national humanitarian organization that is mandated with the responsibility of providing aid and other forms of assistance to the need without discriminating them based on their gender, age, ethnicity, race, religion, and political affiliation.
The organization is developed mainly because it is public organization and in this case receives funding from the government. However, other charitable organizations are more organized, well managed, and efficient in what they do. For instance, Zayed Bin Sultan Al Nahyan is a charitable organization owned and run by the current head of state whose major activities is to help in the setting up of mosques and other Islamic centers.
It has substantial resources that can pose a serious threat to the national organization, given the fact that it has an advantage over others because it is associated with the present country’s leadership. Dubai cares is another charitable organization that has earned a name for itself, having been launched in 2007 by his Highness Sheikh Mohammed Bin Rashid Al Maktoum.
Its major responsibilities include improving the welfare of children through education and quality healthcare. Since it mainly deals with children, chances are high that it would likely receive sufficient funding from various organizations. Human Appeal International is another competitor that operates in the city whose core functions is to uplift the lives of women and children through economic and social empowerment.
It looks into the affairs of orphans through providing food for them, offering education, and giving women finances to start businesses. Finally, International Humanitarian City is a charitable organization with global ambitions, as it focuses on setting Abu-Dhabi as a center for humanitarian assistance. The last organization is a real threat to the project because it raises funds through online means.
Regarding online auction, only one private motor vehicle company offers the service. The firm aims at capturing the attention of global customers through simultaneous auctions in the United States and UAE. However, it would not pose any challenge because the purposes of the auctions are different.
While it aims at making profit, the project will simply be raising funds to help the needy in society. Therefore, it is expected that it would not give the project any reason to spend the funds on advertising and promotion.
Marketing Plan
Promotion Strategy
Promotion is one of the market mix features that employ several strategies in popularizing the product in the market, including individual selling, advertising, sales promotion, direct marketing, and engaging in publicity. Through promotion, the project managers will be in a position to identify the subcategory among the five that have to be given special attention as far as budging is concerned.
The major would be to increase the sales, facilitate acceptance of the product, development of brand, positioning, competitive revenge, and finally building the image of the company. This will ensure that all clients are presented with information at the right time and the information would be accurate. Consequently, the demand for the products would go up, leading to product differentiation.
Several means of product promotion exist in the current society, but the most preferred in this project would be internet advertisement, endorsements, and newspaper adverts.
Whenever an individual accepts to purchase the product through online auctioning, a special gift would be given to him, which would include branded T-shirts. For the automobile companies, their companies will be included in the list of individuals who support the charitable organization.
Product Positioning
Unlike promotion, product positioning intends to offer products or services in the best way meaning that each customer would be in a position to see it. Based on this, the project coordinators will first have to conduct a study to establish the core market in terms of gender, age, social class, and structure. For instance, those interested in the program might the young people, women, the old, or the religious leaders.
Once the target market has been identified, the next step would be to design a message that would more pleasing and ensuring that the message reaches them in the right time and form. The strategy entails manipulation of symbols, such as displays and packaging, as this would go a long way to attract the customer.
The officials of the program would first inform the public that the proceeds from auctioning would go to sponsoring the young talented individuals who might be stuck in their lives (Shaw, 2012).
Pricing Strategy
Several pricing strategies exist in the modern market, but this project will utilize the contribution margin-based pricing model whereby pricing is maximized in order to gain profits that would be enough to be shared between the car owners and the project. If goods are sold at cheaper price, the project might not have something to donate to the charity while at the same time paying for the cost of producing the car or pimping the car.
In all case, the consumer should not identify that the cost of the product is higher when compared to the market since many of them will share aware. Consumers are often concerned with the prices of goods and services, even though some are keen on both the price and quality.
Distribution Strategy
While the project might be interested in making profits, it has to think about increasing sales and at the same time remaining competitive in the market. Based on this, the location of project was chosen as Abu-Dhabi because monitoring the market from this strategic location would be productive.
Regarding distribution, the project will avoid being the challenger, follower or niche oriented, but instead focuses on becoming the market leader. Instead of utilizing the traditional marketing strategies, the project will as well rely on real-life marketing whereby some common sense will be applied when handling potential an existing customers.
The analyzed data from surveys revealed that the market is imperfect because information on online auctioning is limited, even though individuals are willing to try. The application of classical marketing would not be appropriate in this scenario.
The creative minds would be needed to implement this strategy. Project managers will have to apply their minds, principles, and knowledge in interpreting certain events. In fact, the model chosen would be compatible with the form of leadership employed in the project (Kurtz, 2010).
Human Resources
Human resources play an important role in the running of any organization or project, as previously noted. In this project, competent individuals will be employed to head critical departments because online auctioning is a new phenomenon in the field of sales and marketing. The flow chart shows various responsibilities of individuals.
In the above diagram, each line manager has a specific responsibility to fulfil and each has to report the senior authority. For any organization to realize its objectives, the policy of subordination has to exist because each leader has to be held responsible for what he or she does. The owners of the project will be the general managers and their aim would be to ensure that the business picks well within the first year.
They will mainly be charged with publicity and improving the image of the project (Pinson, 2004). All owners will be sitting in the executive board, but other clients, including representatives of car dealers, will be invited to sit in the board. The executive director will be the secretary to the board and he or she would be charged with the day-to-day running of the project.
He or she will have to ensure that all long and short-term objectives are realized within the stipulated time. The operations and the program directors will be helping the director in the running of two important sections, one of them being the program coordination and the other is operations. Each of the junior directors will have some workforce to take care of, as well as other supervisory work.
Finance
Breakeven Analysis
Projected Cash Flow
Sources of Funds
The project will depend on donors, but before it kick-starts its operations, it will borrow a loan from one of the local institutions
Summary
The project is expected to achieve its objectives because it is different from the rest of the projects. It would rely on technology to raise funds through online auctioning, something that major car dealers and auctioneers are yet to introduce in the city. The survey results suggest that many individuals in the city are interested in contributing their donations to the charities.
However, they are reluctant to utilize online means of donation because of fraud and technological challenges. Asked whether they would be willing to join the online market, many respondents gave a positive feedback. This means that the future of the project is bright and only the sky would be the limit.
An analysis of the competitor strength suggests that online means of raising funds are yet to be applied because conventional techniques are still applied. Before they think of applying the technology, the project would have achieved its objectives and it would be thinking of going global.
References
Hill, T. & Westbrook, R. (1997). SWOT Analysis: It is Time for a Product Recall. Long Range Planning, 30(1), 46–52.
Kurtz, D. (2010). Contemporary Marketing: Mason South-Western Cengage Learning.
Pinson, L. (2004). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future (6th ed.). Chicago: Dearborn Trade.
Rajagopal, A. (2007). Marketing Dynamics: Theory and Practice. New Delhi: New Age International.
Shaw, E. (2012). Marketing strategy: From the origin of the concept to the development of a conceptual framework. Journal of Historical Research in Marketing, 4(1), 30-55.