Introduction
The modern market features a highly competitive environment, and customization seems to be one of the few ways to grasp consumers’ attention and gain their loyalty. In the meantime, the overall rush toward consumers’ approval appears to have triggered an inverted effect â recent research has revealed that consumers are tired of numerous messages they receive from brands through texts and e-mails. Even if the message content is positive, consumers do not notice it because the large scope of personalized information they receive is irritating (Harris 2015).
Since digital communication turns out to be too primitive and ineffective, it is proposed to shift to the elaborate, old-fashioned methods, i.e., customization through handwritten Thank-You Cards. It is suggested that the implementation of this personalized service will assist companies in performing effective consumer engagement and avoiding the common mistake, i.e., excessive pressure. The key peculiarity of this service resides in the fact that companies will be offered to make the Thank-You Cards from the recycled waste paper. Hence, they will not only strengthen their customer relations but will enhance their reverse logistics management as well.
The scope of the market that might be interested in the proposed service is unlimited. Hence, every company that strives to build consistent HR is likely to try the service. The competition in the Thank-You Cards market is relatively low. Thus, most companies that provide this service do not offer a handwritten option or cannot ensure the relevant level of data security. Additionally, none of the companies of a similar type suggest making cards from recycled waste paper. Therefore, it is expected that the proposed service will show a swift and successful market entry.
Technical Service Description and Plan
Service Description
The service delivery pattern is highly simple to implement. Hence, a client company orders the Thank-You service and provides the project team with all the details essential for working out personalized cards. After that, the team designs the cards templates that reflect the companyâs individuality and assesses the scope of materials essential for their production. As soon as the templates are approved, the company sends the client database that needs to be covered by the Thank-You service, as well as the waste paper that needs recycling, and the team writers sign every card.
The cards are then sent to clients through corporate courier to ensure timely delivery and avoid potential mistakes. The Thank-You service and the client company conclude a contract that legally acknowledges that the former party is responsible for ensuring consistent data safety.
First and foremost, client companies will benefit from the Thank-You service as it will allow them to gain customers’ loyalty and interest in an elegant and non-intrusive manner. Second, the proposed service is highly cost-effective as it allows for the implementation of optimized reverse logistics patterns. Finally, the use of recycled materials will add to the establishment of an attractive image of the brand.
Technical Validation
In order to adhere to the principles of sustainable marketing, it is proposed that the Thank-You cards are made of recycled waste paper. The product is currently in its initial production stage. Hence, several sample cards have been made, and corporate experts are now assessing their quality and self-cost. Some experts have likewise been involved in order to outline the scope of materials essential for the production of one card as well as the scope of the necessary equipment.
Remaining Product Development Risks
There is a risk that client companies will fail to provide the scope of waste materials essential for the production of their order. In order to avoid the shortage of raw materials, it is, therefore, essential to search for partner organizations that will agree to use the Thank-You Card service as the third party in their reverse logistic chains. Otherwise stated, they will agree to supply it with waste paper at a minimal cost.
Productâs Advantages for End-Users vs. Substitute Solutions
Customization and waste reduction are the two acute problems that every manager needs to consider. From this perspective, the Thank-You Card service is a perfect alternative solution that allows resolving both problems at once. First, stylish personalized notes ensure effective consumer engagement. Second, their production pattern allows for the optimization of waste management.
Current Intellectual Property Status and Plans for the Future
As soon as the company admits the corporate design and outlines the course of the production procedure, it will appeal for the receiving an IP status to ensure the protection of its industrial design rights.
Market and Industry Analysis
Targeted Market Scope and Segments
Research shows that many modern companies make a shift to intensive customization. In the meantime, most of them still rely on internal resources as there are few customization shops that offer high-quality services. Additionally, a large amount of those market players that strive to provide customer engagement services cannot ensure consistent data safety and optimized delivery patterns, so that managers prefer to avoid engaging third-parties in their relations with customers (Fornuto 2014). Therefore, the target market for Thank-You Cards comprises literally every company that maintains a direct connection with its clientele.
The competition in the waste reduction market is, on the contrary, severe. Hence, according to recent research, the major part of entrepreneurs now tends to involve third-parties to reduce waste and enhance their sustainability practices (Lieb & Lieb 2010). In the meantime, there is currently no company that would offer an effective combination of these two services. As a result, Thank-You Cards is likely to prompt the appearance of a new market segment.
Incumbent Displacement
The Thank-You Cards service will have a first-mover advantage due to the innovative production patterns that it offers. Since the service’s format, i.e. sending handwritten thank-you notes to customers through mail, is not a novelty, there will be competing with other companies of a similar type. In order to gain a competitive advantage, it is proposed to put a particular emphasis on the “green” implications of the proposed service.
From the standpoint of the indirect market forces, the service will have to compete with the modern digital trend. In other words, it is likely to meet the clients’ resistance to returning to employ old-fashioned methods of customization instead of using modern IT resources.
Partnership Strategy
It is assumed that the service implementation is impossible without the engagement of the relevant partners. Hence, it is essential to ensure the partnership with a reliable manufacturer that will agree to process the waste paper and supply the Thank-You Cards team with the ready cards. This partner will be targeted as soon as the technical validation of the service is completed, i.e., as soon as the analysts finish the evaluation of the productivity cost of one card and assess the scope of cards that the service will be able to process per day.
Additionally, it is necessary to establish consistent supply chain functioning. Hence, the company might involve couriers and drivers that will deliver the raw materials to the partner, the ready cards to the Thank-You Cards office, and the signed cards to the target addressees.
Customer Value Proposition
Targeted Customers
The primary group of customers targeted is large automobile corporations with high money turnover and sufficient resources for consumer engagement. Thus, the trial service proposition will be made to four companies: Toyota, Ford, Volkswagen, and General Motors. The functional capacity of the service will be able to serve only one corporation so that, at this stage, the expected outcome is one contract.
The automobile industry has been selected due to the fact that it implies intense competition so that the company’s image is particularly important within this market segment. According to recent research, automobile companies are especially interested in adding luxury implications to their brand concept ((Sinha 2015). Thus, it is assumed that the personalized Thank-You Card service can assist them in accomplishing this task.
Customer Engagement
To date, all the potential clients, i.e., Toyota, Ford, Volkswagen, and General Motors, have been provided with the business proposal describing the value of the Thank-You service. In order to convince the partners of the advantages of this customer engagement method, special presentations have been designed emphasizing the inefficacy of the digital “thank-you” channels such as text messages and e-mails.
As soon as the initial production stage is completed, the potential clients will be likewise informed on the amount of waste paper they will be able to reduce through transforming it into stylish Thank-You cards. The targeted clients have also been provided with rough contract templates that elucidate the data security aspect and emphasize the responsibility that the Thank-You service takes in terms of data protection.
Need Validation
The evaluation of the clients’ needs has been carried out through consistent market research and trend analysis. Hence, the preliminary study has helped to reveal that none of the target clients currently uses the Thank-You service. Instead, all of them rely on Internet resources to maintain contact with their customers (Cameron 2016). Additionally, every targeted client exhibits interest in improving its sustainability practices and developing an image of an eco-friendly organization. Hence, for instance, Ford emphasizes the need for new waste reduction practices as the key priority of its sustainability strategy (Waste Management 2014). As a result, it is expected that the target clients will show high awareness of the potential value that the proposed service implies.
Go-To-Market Plan
Short- and Long-Term Customer Acquisition Strategies
The customer acquisition strategy is based on the emphasis on the innovative property of the proposed service. Hence, the key-value proposed to potential customers is the balance between the price and effectiveness: on the one hand, client companies will pay for enhancing their customer acquisition methods; on the other hand, they will reduce waste paper costs. Since client companies will be the main providers of the raw materials essential for the production of the “thank-you” cards, the cost of the service will be lower in comparison to the competitors’ prices.
From a long-term perspective, it is proposed to involve the local authorities to provide financial support to the client companies that carry out their customization policy through this eco-friendly method.
Achievements to Date
To date, the company has managed to communicate the project value to the local authorities. Hence, the latter are now analyzing the potential outcomes and expected benefits, and, in case they consider the project to be valuable from the social benefit perspective, i.e., the local community can contribute to enhancing eco-friendly practices, the authorities might agree to invest in the service development and cover some part of the start-up expenses.
Additionally, several recycling companies have already expressed their interest in investing in the service development on the condition that they will participate in the production of the Thank-You cards. l
Economics
Business Model
The proposed business is supposed to operate upon the local business license. The license will allow for providing the clients with a personalized “thank-you” card and the relevant delivery service. The manufacturing license is not essential since the production of the cards will be carried out by the local partner manufacturers. Generally speaking, the business will operate within the shop functional pattern. Technology or OEM licenses will neither be required as the company will not be engaged in producing any technologies or IT parts. The idea of innovative card production can be patented, and the patent can be further resold to the partner manufacturer. The business can further extend through offering new customized products made from recycled waste paper.
Pricing and Downstream Value Analysis
Compelling ROI for end-users will be ensured by the multi-functional character of the service. Hence, in case client companies use the service of competitors, the only output of their investment is a personalized handwritten “thank-you” card. On the contrary, in case the client companies use the service offered by the Thank-You Card, they will receive the cards and the paper waste reduction at the same cost. As a result, the company can set the same price for their service as competitors, and the competitive advantage will still be gained through the double value of the service offered.
Scaling Strategy
It is proposed to adopt a moderate scaling strategy and resist the temptation to engage in a rapid business extension. Hence, it is assumed rationale that the company focuses on continual service improvement rather than the swift entry into new market segments. The continual quality improvement can be accomplished through implementing new supply chain strategies, optimizing the manufacturing procedures, enhancing the sustainability character of the operations, and reducing the time of delivery services.
In the first stages, the business can remain within the automobile segment and serve the relevant corporations only. In a future perspective, it can move on to a new stage offering its services to other client companies and organizations.
Funding Strategy
At the early stages, it is proposed that the major funding is obtained from the partner manufacturers and individual investors. The project realization does not require considerable funding as the proposed service does not imply the manufacturing process and the purchase of costly equipment. The key milestone in the funding strategy is communicating the project value to the local authorities. Since the proposed service is of high sustainability value, there is an opportunity to receive substantial funding from the local authorities. The latter are not expected to allocate direct investments; instead, they can provide financial support to the client companies to encourage their partnership.
Deployment Method, Strategic Partners, Suppliers, and Distributors
The implementation of the proposed service implies the establishment of effective supply chain strategies. Hence, part of the logistic process, i.e., the transportation of the raw materials to the plant and the delivery of the ready-made cards to the Thank-You Card office, can be carried out by the partner manufacturer. In the meantime, the delivery of the signed cards to clients will require the engagement of an external partner or the establishment of the delivery service within the company. Additionally, several advertising agencies will need to be involved to ensure that the service is properly promoted to target customers.
Risk
The key risk is the failure to maintain the required productivity level. Hence, the handwritten option implies that the completion of one “thank you” card will be rather time-consuming so that the maintenance of the required productivity can only be reached by increasing the number of corporate card writers. Therefore, the key difficulty is to find the balance between the optimal size of the workforce and its production capacity.
In case the company fails to find this balance with the existing card design, it is proposed to involve designers that will reshape the card format in such a manner so that less time will be required to sign them.
Team
Key Team Members
The start-up team is composed of the best professionals in the field of customer relations and service quality improvement. Hence, before coming up with the service proposal, the team has been engaged in long-lasting market research trying to determine the main trends in the modern market. The team members have likewise carried out a large-scale study aimed at identifying the consumers’ vision of the existing customization practices and their effect on their loyalty and engagement.
Additionally, it should be pointed out that each team member has sustainable experience of working for a large corporation and, thus, shows a perfect understanding of the HR systems and their functional patterns. The team likewise comprises high-quality accountant and supply chain managers that are expected to ensure consistent and effective operation.
Key Advisors, And Their Contributions to Date
In the course of the project development, the company has involved several advisors and experts to adopt the best experience and develop an effective implementation strategy. Hence, the main contribution was made by the expert on waste management that explained the mechanisms of the proposed waste reduction patterns and outlined their potential value for clients.
The board of advisors likewise comprised experts in supply chain management, advertising and business promotion, and design. Additionally, professional lawyers were involved in designing legally relevant contracts and defining the responsibilities of the parties entering them.
Gaps
No critical gaps have been identified in relation to the current team composition. In the meantime, it is essential to note that the process of communicating the project value to the local authorities turned out to be more complicated than it was initially expected. Therefore, expert assistance might be potentially required to fill this gap and ensure the establishment of consistent collaboration with the local authorities and their engagement in the funding process.
Reference List
Cameron, N 2016, âWhy Ford is counting on the Internet of Things to drive customer engagement’, CMO. Web.
Fornuto, A 2014, Running a mail server. Web.
Harris, R 2015, âIrrelevant messages drive rise of âdeletistâ consumers‘, Marketing. Web.
Lieb, K & Lieb, RC 2010, âEnvironmental sustainability in the third-party logistics (3PL) industry’, International Journal of Physical Distribution & Logistics Management, vol. 40, no. 7, pp. 524-533.
Sinha, S 2015, 4 Factors that led Automotive Industry to Focus on Customer Engagement. Web.
Waste Management 2014. Web.