A proposed marketing plan for Avanza Incorporated Online Shop, For Your Home Now

• Main Authors: de Quiroz, Mark, De Vera, Jose Lorenzo
• Format: text
• Language: English
• Published: Animo Repository 2010
• Subjects: Marketing
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18165
• Institution: De La Salle University

E-commerce in the Philippines is experiencing continuous growth in the past several years and its popularity to the Filipinos have been widespread. Many businesses in the country have entered the world of e-commerce to increase their reach to the market and speed up the stages in their business process to generate income more efficiently. The growth is a result of the increasing rate of internet penetration in the country. According to internetworldstats.com and AC Nielsen, around 24 million out of 97,976,603 or 24.5% of the Philippine population are internet users compared to only 2.6% in the year 2000 and 14.6% in 2008. This is a result of easy and affordable internet connections that are available to the consumers. The internet retailing industry more popularly known as online shopping which is a type of ecommerce has also experienced growth as more and more Filipinos have started accepting it as a routine. In 2009, internet retailing in the Philippines experienced 5% growth in value reaching almost Php13 billion. Due to the increasing acceptance and popularity of online shopping, many retailers have ventured into the industry hoping to generate more income and increase their portfolio. Avanza Incorporated, a Consumer Relationship Management firm, engaged in the world of ecommerce through internet retailing. The organization specializes in loyalty and partnership marketing and has strong relationships with many clients from different industries. They have an abundant source of home appliances, electronics, and other home essentials from big brand manufacturers and are considered as merchants of these manufacturers. They also have strong partnerships with several banks like Banco de Oro. BDO has provided them with an excellent payment gateway system that accepts all major credit cards for internet purchases. With a reasonable product line and an outstanding payment gateway system combined with all other resources the organization has, they created foryourhomenow.com.ph, an online shop dedicated for all home appliances, electronics, and other home essentials. The online shop was launched last July 15, 2009. They have done online and offline marketing through SMS blasting, distribution of flyers, banner ads, magazine ads, and search engine optimization but deemed to be ineffective. Since its launch in the World Wide Web, the online shop has not generated any sale and only received 16 membership registrations. The organization has already invested a huge amount of money for the e-commerce venture but it has not been profitable. Due to its poor performance, Avanza Inc. deemed it necessary to conceptualize a new marketing plan for their online shop. The new marketing plan is based on Dr. Leonardo Garcia's Enlightened 4P's of Marketing framework. The proposed strategies were based on both the review of related literature done and the consumer research conducted by the proponents. The online shops web design and layout will be improved to be more visually appealing to the consumer. Traditional media will be used minimally and focus will be more on online campaigns as the market for the product are online consumers. Due to the huge amount already invested for the online shop, the organization has limited budget for a new campaign therefore the strategies proposed are cost efficient. The new marketing plan aims to re-launch the online shop and become profitable. Through the campaign, Avanza Inc. aims to achieve at least break even on the first year of the plan and generate Php80, 637.09 and 98, 622.57 net income on the 2nd and 3rd year respectively.