Introduction
This paper provides insight into BUT WAIT, THERE’S MORE LLC, which is focused on selling collectible toys through the Amazon online platform. The document presents internal factors, mission, objectives, and market analysis, followed by recommendations for launching the project entirely associated with the specified goals. The company’s unique features are highlighted, which will distinguish it in the market and shape the positioning and development strategy accordingly.
Mission Statement
Our purpose is to offer the most sought-after collectible toys at below-market prices. Our company can make collecting accessible to a broader segment of customers and give an extensive reach through a competitive price, diversified selection, and high-quality service. People will get more positive emotions and draw attention to collecting toys on a larger scale.
Literature Review
SWOT
The project’s strength is obtaining a competitive price by simplifying the production process and the supply chain. The company plans to track trends nationwide and offer the most colorful and exciting collectibles on the Amazon Business platform. Working closely with a potential audience makes it possible to list only liquid goods for sale and significantly reduce turnover rates, which are high for this industry (Kuhn & Yu, 2021). Accordingly, in the absence of construction costs and similar expenses for the maintenance of the premises, the organization will be able to keep the price low while maintaining a sufficient margin for further development. In addition, the project is relatively easy to expand and scale due to its exceptional online presence.
Weaknesses lie in online selling: firstly, potential buyers always want to see collectible items live before they pay money for them because they must be in perfect condition. Second, suppliers and manufacturers with exclusive rights to brand-name products may be contracted to other retailers that have a lower MSRP than potential competitors (Sacco & Giovanni, 2019). In this regard, the launch of a start-up may promise a potential expansion of the audience, but there is much power from suppliers at the moment. Finally, another weakness of the start-up is the initial lack of a customer base, which needs to be built up in various marketing ways, requiring significant investments early.
In addition to a particular pricing policy, opportunities lie in diversifying the collection’s sales line. The online platform allows selling goods, organizing marketing campaigns on social networks, and creating an image site where feedback is possible. A global search for audiences interested in collectible toys can provide a comprehensive list of potential products through integration into other cultures and trends, including imports. Similarly, exports can be developed when the manufacturer is located in the US, and the demand for specific products is significantly increased abroad, which is not uncommon in the case of cultural events (Crothers, 2021). Accordingly, the opportunity lies in the horizontal development of the business, expanding the line of collectible toys without the need to expand the actual point of sale or office.
Porter’s five forces model can describe threats. Firstly, the bargaining power of suppliers allows them to dictate their terms regarding pricing and exclusive rights to sell to retailers, which, combined with the uniqueness of the product and the absence of the threat of replacement products, can make this problem critical to maintaining the original mission (Bruijl & Gerard, 2018). Secondly, the threat of new players, on the one hand, is minimal; however, large chains can diversify their business and offer competitive offers only at the expense of the enormous asset of their capabilities (Lamb et al., 2012). Therefore, the company should focus on the more accessible and untapped niches of sci-fi, pop culture, and other areas where such things are popular.
Objectives
On the one hand, the objectives of the “BUT WAIT, THERE’S MORE LLC” business are similar to those of any other similar retail business. First of all, they are to increase awareness and demand for new products in stock, reduce sales losses due to shipping damage, increase positive reviews through customer satisfaction, offer new products monthly, attract new customers, retain existing customers, and increase profits (Fischer et al., 2020).
On the other hand, the company’s offer must be unique in the market. If other specialty stores can provide a live service in natural points of sale, this company must look for other ways to influence potential customers through an Internet presence. Items featured in a collectible toy line generally do not require advertising per se: collectors always know what they are after, given that manufacturers have unique production rights. As a result, the company’s offer must be original, precisely in terms of service and any support at the expense of its brand, which does not contradict the primary mission and function of sales. This task is the accessibility of the toy-collecting phenomenon in general to a broader audience.
Target Marketing & Positioning Strategy
Our goal is to sell to avid pop culture collectors, comic book fans, sci-fi fans, and fans of funk-pop in general. In the future, it is possible to diversify the line into the most promising segments of the culture, which will be selected based on customer feedback, delivery options, and agreements with the supplier, as well as on a preliminary assessment of the financial proposal that the company can make. A small business always requires the correct definition of its target audience due to constant global and local challenges that require a reaction and response from the organization (El-Chaarani, 2021).
Since the prerequisites for the project are online sales and a competitive price, an appropriate approach to the target audience should be sought in the Internet segment at affordable prices. Potential consumers of pop culture collectible toys can be parents of children and young people, so mainstream advertising should be done on social networks. For memorable lines, the target audience is much older, so it is possible to use the channels of e-mail, phone calls, and advertising in the press.
With our low operating overhead, we should position ourselves as a place to get these collectibles at a lower price while still having the same quality products as a big store in this segment. Accordingly, the company positions itself as a discounter in the premium product category. This combination allows positioning the company for an audience just starting out or even considering collecting as a potential hobby. More experienced collectors may prefer a higher price and a corresponding live service that allows seeing the product’s condition firsthand. Consequently, wealthier people are not the goal of positioning the company; instead, the goal is to bring new players into the hobby.
Marketing Mix Strategy
The company’s products are sold on Amazon, which provides an immediate market mix on its website. The prices will be controlled based on the average of each advertising company. Still, we have the flexibility to price our product at a lower price, legally being able to outprice any competition with a lower price. The product will speak for itself through photos provided by our company to show the quality of each item and ensure it is in mint condition. Place and promotion are all in one thanks to the platform we use through the Amazon Business website.
Initially, it is necessary to contact suppliers, develop trend concepts, and select available options among manufacturers with rights to unique and well-known brands. In parallel with the proposed study, it is necessary to study the demand, which consists of market research, communication with potential consumers, and price planning. In fact, the price should be lower than that of competitors where these collection product lines are available; the feasibility of the business will be judged primarily by this factor. After placing products, we need to keep in mind the sales control tool that will allow us to determine the liquidity of the collection. After establishing contact with buyers, it is much easier to establish feedback and inquire about demand. After collecting detailed information about the collections of interest to customers, we can consider these proposals and contact new suppliers for diversification. Such a cycle will grow and be done as the margin arrives in the company’s budget.
As mentioned above, promotion strategies lie through media or e-mail channels for an older audience and social networks for a younger one. Internet presence can also be used as a feedback tool, one of the levers for development and diversification. Since the company intends to look for customers who will be new to the hobby, mainly because of the low price, giving away collectible toys is a strong strategy. An item won for a collection can motivate a client to buy the remaining collection or at least participate in subsequent ones; the price of participation is the distribution and advertising of this online store.
Implementation
Start-up funding should be sought from organizations such as the Small Business Administration (SBA). This organization provides diversified opportunities for business lending at an early stage (USA Government, n.d.). At the same time, against the background of the pandemic, the Treasury Department also began supporting this segment by providing various tax incentives and a credit line to finance employees (US Department of the Treasury, n.d.).
In addition, Amazon Business often raffles off grants to support small businesses. However, to participate in such grants and potentially receive subsidies from the state, our company must be open, socially, and environmentally responsible. These factors will manifest through cooperation only with responsible suppliers; the social mission is reflected in low prices, popularizing an expensive hobby, and supporting certain funds after reaching an inevitable turnover. Recommendations for the marketing department are detailed above, while the roadmap includes ongoing sales monitoring and customer feedback – these tools are partly available within the Amazon Business platform.
Conclusion
This collectible toy business has many features and opportunities to grow due to its particular pricing policy and mobile approach, which implies constant adaptation and flexibility. Online presence in this context is both a plus and a minus for this area; respectively, the company should use only the strengths of this approach to the maximum. Finally, based on the research and analyses, specific recommendations were made for the project’s financing, launch plan, and potential marketing strategy for the first period of operation.
References
Bruijl, D., & Gerard, H. T. (2018). The relevance of Porter’s five forces in today’s innovative and changing business environment. Web.
Crothers, L. (2021). Globalization and American popular culture. Rowman & Littlefield Publishers.
El-Chaarani, H. (2021). COVID-19: Problems, challenges and business opportunities. Journal of Contemporary Research in Business Administration and Economic Sciences (JCRBAES), 1(1). Web.
Fischer, M., Imgrund, F., Janiesch, C., & Winkelmann, A. (2020). Strategy archetypes for digital transformation: Defining meta objectives using business process management. Information & Management, 57(5). Web.
Kuhn, P., & Yu, L. (2021). How costly is turnover? Evidence from retail. Journal of Labor Economics, 39(2), 461-496. Web.
Lamb, C. W., Hair, J. F., & McDaniel, C. (2012). Marketing. Cengage Learning.
Sacco, A., & Giovanni, P. D. (2019). A comparison between manufacturer’s suggested retail price and minimum advertised price in a distribution channel and the effect of competition. Journal of Business Research, 96. Web.
U.S. Department of the Treasury. (n.d.). Assistance for Small Businesses. Web.
USA Government. (n.d.). Finance Your Business. Web.