Msec Final

7/26/2019 Msec Final

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1.0 Introduction

Our company, BestPack is born out of passion and desire to be our customer branded

leather bags expert. We will be a one stop online store for all types of bags. We provide wide

selection of bags brands due to customers preference. We will fulfil our customers needs and

wants and invite them to create a look that is effortless, fashion and uniuely to them.

Our product which is branded bags will bring to our customers an orchestrated selection

of ma!or bags brands that focuses on design, functionality and craftsmanship. Our bags brands

separate in many categories such as women, men, sporty, kids, business and lifestyle. "hey

can expect to find luxury bags power houses like Bottega #eneta, Prada and $ucci, subculture

bags brands for the cool kids such as %isney, &ike, %' and all sorts of carriers for our customer

lifestyle needs. We also have popular bags brands include Bellroy, Brooks (ngland, )ote ("

)iel and so on.

"he reason of why our company create online business because we realise that the new

generation nowadays more prefer online shopping. "herefore, we use this reason as our

company goal to increase company profit, expand our marker and make our company well*

known.

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2.0 Situational Analysis

2.1 Strengths

"here are various strengths which our company has. +irst and foremost, our company provides

a very strong customer service to our customers. We have provided a return and exchange

policy to our customers for any defective items which have been purchased from us. Our

company is also efficient in responding to our respective customers after they have placed their

orders with us. When theyve placed their orders, immediately their orders will be captured into

our system and be processed efficiently. &ext, our companys strength is also by providing a

high quality and authentic products.Our company is selling mainly original branded products

in the market and our customers do not need to worry about purchasing a pirated product from

us. ll in all, our company is a trustworthy company. Our company has lower operational costs

than a brick and mortar company too. -ince our company is an e*commerce company, we do

not reuire many costs in setting up a business. +or example, we do not have to pay for a

building or involve many documents. "hen, our customers even benefit from the 24-hour online

shopping experience too. t is because our company operates /0*hour per day and our

customers can shop with us anytime and anywhere. part from that, our companys strength is

also that we provide free shipping worldwide. We ship our products for free worldwide but

custom duties charges may apply for each country.

2.2 ea!nesses

1owever, our company has some weaknesses too. Our companys weakness is customers"

ina#ility to touch or feelour products. -ince we are an (*commerce company, our customers

could only touch the products after theyve arrived at their door steps. &ext, shipping time is

also our weakness too. t takes longer time for our products to arrive at the western countries

especially, and it normally takes maximum 20 working days. 1owever, in the -outh (ast sia

countries, it took up maximum 2 week for products to arrive. &ext, fraudconcerns are our

weakness too as some people may be reluctant to purchase from us. Our customers might be

concern about their financial and personal data when they are registered with us. &ext, our

company does not allow for price #argainingto our customers too. 1ence, our customers

may not purchase from us and eventually turn to our competitors instead.

2.$ %pportunities

"he opportunities which could help our company to grow are the changes in technology and

mar!et in our industry nowadays. t is because the daily numbers of internet users areincreasing daily. People can purchase from us conveniently and comfortably as they do not

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have to step into the physical store personally to purchase their desired products. &ext, the

changing trendsin the industry have helped our companys growth. s we are the e*commerce

company, our customers could make financial payments from any part of the world efficiently.

"he changing trends have also caused the people of tomorrow to feel more comfortable to buy

our products through the internet. part from that, we have used social media as a free

platform for promotion and advertising purposes. "hrough social media, we could promote our

company and products to the world and reducing the costs at the same time too. +or example,

we have use +acebook, "witter, nstagram and $oogle3 to promote and reach more people

worldwide. 4oreover, we could reduce local competitionby providing online customer service

to our customers. )ustomers could reach us easily without meeting face*to*face with us

whenever they are encountered with problems regarding our products. With this, customers

could contact us by sending us e*mail directly to our company.

2.4 &hreats

"he threat which our company has encountered in this industry is the increasing num#er of

competitors. 4any big companies have already stepped into the industry and have set a stable

market share in it. Our competitors in the industry are such as 5eebon6 and 7alora. Besides

that, our competitors" activitiesare a threat to us as well. Our main competitor, 5eebon6, is

currently having sales promotion up to 89: at certain hour at their website. "his might cause

our customers to shift to them when purchasing their desired products. &ext is the security

threat. "here are many online hackers and credit card thieves out there who are looking for

every customers personal data. "herefore, we have used the -ecure -ocket ;ayer


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being exposed to online hackers. "herefore, we have practiced the +ersonal ,ata +rotection

Act 2010 in the business. "his act is created to protect customers data especially when they

have performed any online transaction with us. "hrough this act, our customers can boost up

their confidence to shop and trade online with us always. "hen, the ethical issue that normally

arises is also fraud. +raud is normally used by online hackers to obtain profit through false

claims. -ince we are selling our products online, the online hackers will normally try to

impersonate us and send e*mail to our customers. "herefore, there is a must for our company

to increase the security system to prevent this misconduct from happening. "hrough this, we

have complied with the ,igital Signature Act 1, whereby digital signature is an identity

verification that uses encryption techniues to protect against e*mail forgery. 4oreover, the next

issue that happened freuently in the e*commerce industry is the e-mail spamming issue.

-pam is the mass distribution of unsolicited electronic mail. "herefore, we have complied with

the /ommunications and ultimedia Act 1in order to stop this from happening.

$.0 Segmentation &argeting

$.1 Segmentation

Our company, BestPack, sells product to consumer market, which is those who purchase

products for themselves rather than purchasing for government use or business use. We are

segmenting our market into 0 segments including geographic segments, demographics

segments, psychographic segments, and also behavior segments.

$.2 3eographic segmentation

BestPack is applying geographic segmentation, which also means dividing the population by

area. -ince our company is based in 4alaysia, the location we will be targeting is also 4alaysia.

lthough we sell and deliver our products to many other countries like )hina, -ingapore,

"hailand, "aiwan and ndonesia, but we focus most on 4alaysia. One of the reasons is that itmakes product distribution more convenient and cost saving. f we are to deliver our products to

places out of 4alaysia, the postage will more costly and there will be more procedures to be

done. 4oreover, the internet usage rate in 4alaysia is rapidly increasing nowadays. We believe

that we can be exposed to many users as well as attract them to purchase from us. Other than

that, our companys website is using (nglish as our main language and the reason why we use

only (nglish is because it is the main languages used among the ma!ority of 4alaysians. By

doing so, the information and message we want to deliver are more easily understandable.

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$.$ +sychographic segmentation

Psychographics or lifestyle segmentation includes lifestyles, activities, and interests. BestPack

is also targeting on backpackers, whose interest is to travel around the world. +or any

backpackers, backpack is the most essential accessories they should prepare and use while

travelling. Backpacks are obviously more spacey for them to pack in everything they need and

convenience enough to carry all the way. +urthermore, there are a lot of people whose interest

is collecting branded accessories. BestPack offers big variety of branded bags and wallets that

these group of people desire. We have a big range of varieties for all the branded bags and

wallets so it will be the right place for them to shop. s for lifestyles, there is a group of people

who leads a sedentary lifestyle, who faces the computer every single day. "hese people rather

shop online than going to physical stores because they are either too busy or la6y to go out.

$.4 ,emographics segmentation

"hey are targeting on users around age /9 to >8, some of them are college students and some

of them are working adults. "he reason why we are targeting on college students is that they

buy backpacks as their necessities, as they need to use backpacks to college at least five days

a week. s for working adults, they also need to use branded bags to work so they can have a

good image built for themselves when they are around their colleagues. fter some research,

we also found that this group of people has the highest purchasing power and willingness to

purchase bags online. n addition, young adults take up the most percentage among all the

internet users so we have a high possibility to be exposed to them. t BestPack, there is no limit

for gender as we target on both male and female. We have a big range of varieties of bags and

brands designed for men, women, and even kids. s for language, we focus mainly on people

who understand (nglish. 4ost people can understand (nglish because it is widely used all over

the world, including 4alaysia.

$.( ehavioral segmentation

"hrough behavioral segmentation, BestPack is dividing customer groups based on benefits

sought. "here are customers who prefer shopping online but refuse to pay shipping fee when it

comes to payment. -hipping fee might cost around 5429 or even more if the destination is out

of the country range. "hey might think that even if the original price of the product is cheap, it

will automatically be considered expensive once the shipping fee is added. "his group of people

often seeks for website that provides free shipping worldwide. lthough BestPack is based in

4alaysia, but we have a very attractive benefit for all our customers, that is we deliver

worldwide without charging customers on the shipping fee.

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$.5 &argeting

fter segmenting the groups of consumers that BestPack is going to sell our products to, our

company will have to decide on the targeting strategy that is most suitable to be used on our

target prospects. "he targeting strategy that our company is going to apply is multi*segment

marketing strategy .By using this strategy, it also means our company is focusing on two or

more segments and wants to develop different strategies for them. BestPack is offering a big

variety of bags including bags for men, women, and sports lover, business use, and even for

kids. 4oreover, customers can choose from more than 89 brands of bags on our website, which

is a big range of variety for every of our customers. "his way, BestPack will have the ability to

serve different types of customers easily. s you can see, our company has so many different

types of bags designed to meet the needs of different types of market segments, this way, our

company will not have to be worried about customers switching to our competitors because we

are having a competitive advantage. BestPack can also sell to more customers by offering

different types of bags at different prices. +or instance, we can set a higher price for luxury

brands and those people with high income will purchase from us while set an affordable price

for normal brands so people with middle income can purchase from us too. We believe that

using the multi*segment strategy, we will have a higher chance of exposure to the market. +or

example, men who visit our website to look for bags for themselves will notice that bags for

women are available too. "he next time he wants to purchase for women, he will remember

coming back to our website.

4.0 ,ifferentiation +ositioning Strategies

4.1 ,ifferentiation

%ifferentiation is the process of adding meaningful and valued differences to distinguish ourcompanys product from our competitors product. Csing the dimensions and strategies, our

company will be differentiated from our competitors in a good way. BestPack will only be

focusing on some of the strategies.

4.2 +roduct ,ifferentiation

Our company has the ability to differentiate ourselves from competitors through product

differentiation. Our strongest competitor, 7alora, is selling almost everything on their website."hey have products from apparels to accessories to footwear and more. t BestPack, we are

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focused mainly on bags so we have more choices of bags compared to our competitor.

4oreover, we are focused on the bags we sell so we offer only the best uality bags from

different well*known brands. "his way, we can also guarantee that our products uality will meet

the promised specification and that the durability and reliability is strong. &ot only we pick every

product of ours from well*known brand, we also consider the design of the product. Our

company specially picks those bags with good designs and features so we can attract and

retain more customers.

4.$ Service ,ifferentiation

-ervice differentiation is very essential as we believe that providing customers with better

service than our competitors will make them visit us again. fter some research, we found that

most of the online companies charge their customers for shipping fee. (ven one of our

strongest competitors, 7alora, charges approximately 548*29 of shipping fee if customers

purchase product that amount to less than 54A8. "he service differentiation of BestPack is that

we provide free shipping worldwide. %espite the amount of goods customers purchase and

where the goods need to be delivered, BestPack will definitely deliver the goods right to

customers doorstep in the shortest period of time possible, and most importantly, it is for free.

4.4 +ersonnel ,ifferentiation

BestPack has very well trained personnel to handle customer service and take care of all our

customers. +or instance, our well trained personnel will be thoughtfully answering the most

freuently asked uestions by our customers to make sure they will not be confused about our

products, or services. f customers have further ueries or they need assistance, !ust contact us

by e*mailing or giving us a phone call. Our personnel will be the most to assist you. )ustomers

will not have to worry about not being able to get assisted as our personnel will be giving

response straight away after the uestion is asked. We guarantee our customers that our

companys personnel are very well trained, friendly, have patience, and most importantly, they

are happy to help.

4.( Site )nvironment Strategy

Our website is designed to be simple so it will not cause confusion to our customers. Csing a

plain white colour background, we ensure that the pictures and fonts will be easily readable for

our customers. +urthermore, our websites navigation bars are all very neat and consistent.

(ven though we have a wide range of products, we arrange them nicely, category by category.

"his makes our customers shopping experience a lot easier and time saving. lthough ourwebsite is simple, but it never fails to be informative. "he information on our website is always

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accurate because we update our site very freuently. Once there is new promotion, event, or

news about our company, we will keep our customers updated immediately.

4.5 uild &rust Strategy

"rust is one of the most important keys to success in business. )ustomers will only stay loyal

and purchase from us again if there is trust between us. +irst, we provide our customers with

safe and secure payment by signing up a trusted online payment system widely recogni6ed by

our targeted customers. +or instance, we signed up for PayPal and 4aybank/u. We ensure that

every payment process or transaction is encrypted so no third parties will be able to hack in to

get our customers information. Besides, we have a page for customers to leave comments

about the products that they purchased from us previously. +rom there, we can receive good

testimonials and comments about our website and product. Word of mouth is believed to be 29

times more powerful and convincing for customers to believe that our website is trustable.

4. +ositioning

Positioning is the process of creating a desired image for a company and its product among

companys competitors in the publics mind. Our companys goal is to build a position on one

base that is relevant and important to the customers BestPack will not be using every

positioning strategy because if we want to be more focused on the one that suits our company

most.

4. +roduct or service attri#ute

"he products that our company is selling are all well*known brands from all around the world.

Our products can be positioned as luxury product in customers mind as the brands we sell are

all considered famous and luxurious. When customers know that we sell branded stuffs, they

will automatically have the mind*set that the uality of the product is 299: assured and the

product will be totally worth the price. s the brands of bags we sell are already well*known

among customers, our website will automatically build a good image in customers mind. naddition, our companys slogan, D"ravel with the best bagE, will deliver the right message to our

customers. &ot only that it shows the importance of good uality bags, it also tells our

customers that we offer bags with best uality on our website. By doing so, we can show how

much we care about our customers. With the aid of our slogan, our company will definitely leave

a good impression for our customers.

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+roduct

With the rapid expansion of the internet nowadays, it has led to many technological, businesses

and social shift to networking. (*business and (*commerce have now become more common

and attractive way to operate businesses.

Our website, BestPack, is a famous (*commerce website that selling original branded bags for

all ranges of people such as women, men and kids. n the homepage, there is a big

automatically sliding advertisement that allows customers to know the new arrival bags at the

first focal point. +ollowed by the information about the company which is recommended

products, membership, mobile application and also contact us detail to let the users have a

clearer understanding with the products and services. Besides, there is navigation bars that

guide users to which categories and brands they wanted to browse. On the other hand, there is

also a listed of popular brands with images to let customers en!oy the e*shop easily.

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"he products that our website provided undoubtedly hundred percent original guarantees, it

also stated full description or history of the particular brands they selling. Besides, the products

in the website are all show in pictures and attach with the detail of the each bags such as name

or categories, prices, colours, material, height, length or width, depth, and some additional

descriptions when users click in to specific products page. "he product image can be 6ooming

to see part by part clearer and bigger by the cursor. With all of these illustrates and functions,

customers will be able to get what products they need to satisfy their wants and more confident

with the website.

n our website, there are varies types of bags or wallets for each product brands that

allow customers from all ages range to have their own favourite style. +or the products, we

provide few colour choices for customers too. "he different colour of the same design will have

its individual webpage to avoid confusion or any mistake when purchasing. Beside the 6oom in

function on the products image, the products also captured with different angles such as front

view, back view, top view or side view to let customers have a clearer vision on the product. n

addition, there is an image of a shaded model body using the products to show actual usage

look.

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fter customers chosen their products, there is a shopping bag button that will lead user

enter into the log in or register webpage. Our website recommend customers to sign up as

membership to en!oy our special rewards and easier to store their information instead of

repeating the same steps on the next purchase. s customers done the registration, customers

will have their own profile that listed all their personal details. "here are 4y ccount, 4y Order,

4y Wish ;ist and other function bars in the customers profile too. We also have "odays (vents

which is the news of all the brands and add or search friends section that allows customers to

have connection with friends.

;ast but not least, customers added the products into the shopping bag, it goes to

webpage that show all chosen shopping products image, description and price. )ustomers can

check and confirm the products they want and then click the checkout button. fter provide all

the information needed like name and shipping address, customers can proceed by choosing

the payment types and also double confirm on the products they purchase. "hat will be free of

charge on the shipping cost and with only > easy steps to complete the payment.

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5.0 +ricing online

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Our company, BestPack is using the fi'ed pricingwhich means we provide a product price to

customers and if the customers want to purchase the product, they have to pay the same price

of the product no matter what status they are. Cnder the fixed pricing strategy, weve used the

promotional pricing.

"he promotional pricingof our company is we provide a lower price to our customers who

have !oined our membership. nstead of paying the original price, the members get to pay at a

much lower price to obtain their desired products. Of course, the new arrivals are sold at original

prices. 1owever, our customers can earn some points in return when they have shopped with

us. +or example, our customers get to earn 2 point for each dollar spent.

+urthermore, our company is also using the geographic segment pricing. lthough our

company is based in 4alaysia, we do ship worldwide too. 1owever, tax applicable may vary

accordingly to different countries. "his is because of the difference in currency rate.

;astly, our company has also used value-#ased pricing. Our company, BestPack is selling

original and branded bags for our customers. "herefore, because of our products value, our

customers are willing to pay for the amount no matter how expensive they are.

.0 )-communication +romotion

.1 /onte'tual advertising

We are using contextual advertising in promoting our website. When a related keyword is typed

in $oogle search, the advertisements directing to our website appear.

)ontextual advertisements of our website can be found on $oogle search engine. t $oogle

homepage, the advertisements located below the search box and above search results are

generated based on users current search term. +or example, when the word DbagsE is searched

from $oogle search engine, the advertisement of our website is generated based the keywordDbagsE. "his is because our website is known for selling bags and fashion online. "herefore, the

word DbagsE is a keyword for our website. Our advertisement on $oogle search engine is

displayed in website title, website C5; and a brief website description.


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Besides that, our advertisements can be found in +acebook website. n +acebook website,

advertisements are placed at the right side. With +acebook dverts or -ponsored -tories,

advertisers can define the target audience based on location, sex, age, likes and interests,

broad categories, relationship status, workplace or education. +or example, when a user

searches Dmens bagE in the search box, the advertisement on the right side shows our

advertisement and Dmens bagE page are complementary in the sense that both are related to

fashion. user who goes to Dmens bagE page is most likely to be attracted by our advertisement

because the page can lead to online shopping and shopping online at BestPack.com is !ust a

click away. "he advertisement has saved the users time on searching for online shopping

website and it is very convenience to the user in term of opening a new browser and typing the

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users the faster and easy way to know about our product and company. +urthermore, the e*mail

advertising was efficiency is because, e*mail that send from us to nternet users are direct

marketing, not advertising. Cser can be straight purchase our product through e*mail with lesser

the step to open another internet browser. Besides that, there is no postage or printing cost like

flyers and banner, it also save a lot of money and sources in creating e*mail advertising. (*mail

advertising can be automatically individualised by user, for the users who only want to receive

promotion e*mail advertising, they can customise it and if they dont wish to receive our e*mail

advertising, users can unsubscribed our e*mail advertising in order to prevent the annoyingness

that bring to the users.

.( em#ership 6ewards

(very customer who register to become our member have the chance to collect point which we

called it Gidollar, the more customer gain the Gidollar the more experience point


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positioning are our positioning strategy that we using in this assignment. "hrough the market

strategy we are using, we are more confident that we will bring a better ways of product and

services to our customers.

;ast but not least, we also get to know what the e*communication I promotion strategies are

much more effective and efficiency to our target customers nowadays. +ollow by the improving

of technology, we found that flyer and banner are become insufficiency and cost a lot of money.

fter this assignment, we found that social media, e*mail advertising, mobile application and

contextual advertising are the ways that suit to nowadays technology which save a lot of money

and sufficiency.

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10.0 Appendi'

Appendi' 10.1

Appendi' 10.2

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Appendi' 10.$

Appendi' 10.4

Appendi' 10.(

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