Online-to-Offline (O2O) commerce is a new business concept that becomes rather popular today. It presupposes the combination of offline operations and online transactions. Currently, Amazon is it’s primitive but the most well-known representative.
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My target market includes Internet users who are willing to do traditional shopping but find it advantageous to have an opportunity to get information about products online. The size of this market is huge, as it includes the global population aged 24-50. This sector is new and the number of competitors is limited. The key ones are Amazon and Facebook and they have been growing over the past few years. O2O has developed since the 2010s and started to be actively discussed in 2015. My company is likely to achieve success in this industry because it manages well-developed online and offline operations (“Online to Offline Commerce Market”). The organization fulfills people’s needs for various products, including food, clothes, books, and furniture. The possibility of the future expansion of the market scope is also considered.
The majority of the customers are likely to be bargain shoppers who are willing to make a purchase of the desired product for the best price. They are expected to be motivated by the necessity to have a particular item and for the price offered by my organization. My clients are mainly people of both genders with the middle-class income. They are students, office workers, and service providers, etc. of any marital status. The majority of them are at least high school graduates. Due to the location of shops, clients are mainly European Americans, African Americans, and Latin Americans.
Stronger sales are expected in big cities of the USA, as in-person interaction is required. The market is about $100 billion in size with about 50 companies that sell approximately 10,000 of each product (Agrawal). Such companies, like Amazon, hire about 500,000 employees and measure success, focusing on sales revenue. Being a cyclical industry, it depends on the economic environment. Recently, the youngest and the oldest population of clients increased, as more people look for products online but prefer to check their quality in a person.
Customer awareness will be ensured due to marketing operations. The company will have a compelling website that is easy to navigate. It will include much information about provided services and offered products, such as images, descriptions of their composition, and major features. Information about the company will be posted on social media. Google AdSense will also be used.
The cost of these methods varies. The creation of a great website can be rather costly. For the O2O business, it may be about $7,000. However, additional expenditures should be considered, as constant alteration and improvements will be needed. Ads posted on social media cost about $5,000 monthly. Finally, Google AdSense can cost about $0,7 per click.
I will try to make my clients understand that my company is targeted at benefiting them. In particular, it is willing to provide them with a wide range of products (including food and properties) for the best possible prices.
To encourage my clients to purchase offered products, I will focus on the following messages:
- Product: the company provides an opportunity to reach the widest range of products, including such diverse items as noodles, books, toys, computers, and chairs. Thus, everyone will find something to his/her liking.
- Price: the company offers the lowest price for the highest quality.
- Place: it is possible to find products online and then buy them in a shop nearby.
- Promotion: it is possible to find information about the organization and to leave feedback on the company’s website or on social media (Facebook, Instagram, or Twitter).
Agrawal, A. J. “The Formula to Create a Trillion-Dollar O2O Industry.” Inc. 2016. Web.
“Online to Offline Commerce Market: Global Industry Analysis and Opportunity Assessment 2016-2026.” Future Market Insights. 2018. Web.