Optimum Nutrition Product: E-Retailing Plan

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Table of Contents

Overview
Brand, Product And Service Offering
Competitors
Market Segmentation
Executive Programs/ceo
Situational Analysis
Positioning
Strategies
Evaluation And Control
References

Overview

Supplements are a very big factor when working towards health and fitness goals. Supplements allow for the body to recover to its maximum potential. Unfortunately in our everyday foods we do not have the recommend nutrients and vitamins that is required for our bodies to fully recover.

The company has carried out various researches on supplements and have found out the best supplement for the customers.

Our mission at forefront fitness is to provide you quality driven results.

When a customer becomes a member he gets the following:

Starter pack
Monthly newsletter

Other services include

Qualified nutritionist
Qualified massage
Qualified physiotherapist

Brand, Product And Service Offering

Brand: Optimum Nutrition Product: The Gold Standard 100% Whey Protein

Whey Protein Isolates are 90% pure protein by weight. The company will rule out various products into the market and these products will have proteins in them. The products will include golden standard 100% whey protein real grains whose brand name will be universal nutrition, animal cuts, animal stake, shock therapy and many others in the area of nutrition. Because of the current need to reduce obesity in America our products will have less fatty contents to reduce cholesterol and lactose. The measure that will be used in determining the contents of fats and protein in our products shall be the measure available by regulating authorities in USA. Animal foods shall have reduced fat contents while shock therapy will be used in helping people to reduce muscle pulls in the body. However out products will not be available for use to children because of the effects they have on stimulating hormones.

Competitors

The existing well-known e-commerce retailers with such a high market share, especially those who are into electronics business are a high competition for The Company. As these retailers effectively implement niche marketing, use value-based pricing strategy, and move toward upscale discount specialty merchandisers – this is certainly going to put pressure on The Company is to design its strategies and break into the market in such a way so as to achieve its aim of becoming one of the market leaders in web-based sales of retail. Its biggest competitors include:

Amazon.com: Amazon.com is working on redefining its niche from people interested in good value books to the time-challenged consumers who are interested in finding most things at one place with easy service and fair prices. Its plus points are that it communicates and highlights its positive points of difference before and after the sale. However, Amazon.com is currently facing a threat of losing its brand identity by extending it non-stop into new territories.
E-bay: E-bay is the leading online seller of collectibles, autos, and many other products. It has indeed worked through its success by its “location strategy” inside the virtual marketplace, which it pioneered, leading its way to creating a flea market where buyers and sellers could participate in auction-type transactions. The competitive advantage that E-bay holds is in the rapport that it develops and sustains with each of its customer bases. It inspires buyers and sellers to evaluate each other, thus regulating and managing the quality of their sellers and transactions. It stays competitive by continuously growing product lines, and appealing to individuals and large enterprises like IBM, Disney, and Home Depot as sellers and buyers.

Market Segmentation

Corporate Health

The forefront fitness corporate health program is designed to build relationships within the organisations. We have developed various programs that can be tailored to each individual organisation. After trial and error we have designed our programs with a simple approach to cut through the jargon and get ‘straight to business.’

Executive Programs/ceo

After working with many Executive Managers we have found that they are very driven and due to their position they frequently need to make decisions and have deadlines to meet. Because of this we understand that the top 1% within an organisation need to have clarity and vision, therefore our focus is productivity and quality as oppose top quantity which in many cases leads to burnouts.

Seminars

Our seminars run for 45 minutes where the follow topis are covered.

Nutrition

During this seminar the basic fundamentals of nutrition will be covered. Due to working in a vigorous environment the focus will be on boosting performance, as this can be affected without supporting nutrition. A lack of nutrients in the body will take its toll on each and every individual who neglect healthy eating.

The aim is to deliver easy to follow nutritional advice to provide solutions and tips which will guide your team in the right direction.

Our delivery techniques are simple and easy to understand so you will be able to incorporate the information as soon as possible.

Exercise

We acknowledge the facts and that is why we have an exercise seminar.

The facts are that not everyone is going to participate in exercise and healthy eating; however education is a key part in our organization.

Educating corporate employees about exercise will give them a clearer understanding on the importance of health and impact unhealthy living cost physically, mentally and financially. By doing this they will be able to make the choice for themselves.

When we are carrying out exercise seminars, participants will be assisted to learn how to carry out exercise without trying such as taking stairs instead of a lift, walking to the shop instead of driving and many others.

Situational Analysis

E-retailing

It has taken sometime, but internet has emerged as a vehicle for selling products. Federico Marchetti, founder and chief executive of multibrand fashion e-commerce site Yoox , says that web was new but it is not new anymore and it has become a little more matured, it has been a great learning experience in the last eight years of development. There has been dramatic transformation in how brands view online distribution in the last six months, people have faith in it. And believe that it works. It is very important to have a strong service inorder to entice the customer, as you don’t have sales assistant to charm and persuade the customer.

The latest survey done by Nielsen Global Online Survey reveals, that fashion is second only to books when it comes to shopping online. “About 36 percent of Internet users said they had bought clothing, accessories or shoes online in the three months before the survey, a large increase compared with the 20 percent who reported doing so only two years before and the fastest growth in any e-commerce category.”(Horton, 2008).It has been observed that the highest percentage is found in South Korea, where 99 percent of all Internet users mention that they have shopped online. This is followed by Britain, Germany and Japan with 97 percent of users reporting that they have purchased online, the United States reported 94 percent. Most of shopping in fashion shops in Britain, Germany and the United States is done through online.

SWOT Analysis

The industry has the following Strengths and weaknesses, opportunities and weaknesses.

Strengths

Helps in environmental conservation therefore customer confidence high:

Low services costs
Highly experienced management and staff available in the market
Growth by increasing market share through diversification of products that supports sustainable development

Weaknesses

Barriers to expansion due to environmental regulations by governments:

Licensing problems
Highly competitive market
Raising money from banks rather than shareholders.

E-retail has become an important venture because a company invests in diversified products and services, winning consumer confidence and by providing them various products.

Opportunities

Teamwork is necessary for every organization. Although the team work of e-retail is very appreciable, when one enters into e-business, more efforts are required in order to keep the standards high. The teamwork depends upon the people working in the organization and what kind of bond they have formed together. If the organizational culture is dynamic, there are greater chances of success. However, when operating globally, one has to take in consideration the cultural diversity in mind. Something that can be considered as friendly in the culture of United States may be considered as an insult in some Middle Eastern countries. Therefore, if the company plans to operate internationally, it should keep in mind the different type teams within the company, and create an interaction pattern that would not offend anyone, and enhance performance. Environment is also a growing concern in many European countries today, and research is being done in order to make the healthy.

Growth by increasing market share through mergers and acquisitions within the industry.
Develop new brands which link to changing peoples lifestyles.
Incorporate new technologies in reservation to stay ahead of the competition

Threats

Lack of knowledge, Investors unhappy:

Economy – Expensive borrowing
Expansion, Mergers and Acquisitions – could lead to failure
Competition – other major companies entering the market could affect their revenue
Rules and Regulations of different countries

Positioning

The company has already positioned itself as the world’s most renowned web search engine, and for entry into the flourishing e-commerce market, such an extensive experience that The company already has, will provide it with the data and figures to understand the much needed products for customers. The company will position itself as a one-stop internet supplier of high-quality, fair-priced products. It will leverage its competitive advantages to achieve the desired positioning.

The competitive advantage that The Company already has is its strong brand name and its affiliation with whomever uses the internet. Its brand image and wide recognition will be a strong customer-attracting factor, which will cut its advertising costs to a considerable level. Its designed competitive edge will be its easy to use website and exclusive customer service. The easy to use website will substantially boost the sales, as research highlights that sales are frequently lost due to websites being way too complex.

Strategies

The company’s seven marketing mix strategies are:

Information: the right information should be given about the product the quality and features to avoid conflict of forms when the product is delivered. The other information that shold be given is information in relation to pricing, shipping and impact of returns.
Assortment: proper assortment of products that is available by the company shouldl be assorted in terms of prices, purpose, for easier access by the customer when browsing the companys website.
Product: The Company Shop exclusively offers to customers who are interested to buy real products from retailers and in this case they are safe to get original products. In the beginning, The company plans to offer several products e.g. supplements..
Pricing: As for every online retailer, designing a pricing strategy for The company is a tricky job. There will be a very little room for error in this area, as price hunters will go away or shift to the competitor if there is any bit of overpricing. Due to the price-sensitivity of online buyers, The Company plans to do value-added pricing. The extra small benefits and efficient distribution and after-sales services will make the customer feel that they have been charged fairly. In order to offer low prices to customers,
Distribution: The company shop will distribute its products all over the world. By the company having E-retail will benefit from the international market due to accessibility of internet all over the world. Although infrastructure is poor in Africa, there is a believe that it is Emerging market and provide necessary market. Initially the Company will work as an intermediary; it will be following the logistics outsourcing strategy. When a customer will place an order on the website, The Company will send the product description to the retailer and the retailer will send the product to customer. The company also provides an interface in up to 88 languages. If people cannot understand the product description in English, they can have other language options to choose from.
Convenience: the online retailing website should be convenient to the customer to avoid scenarios where the customer is forced to pay twice in other words the hassles of a customers going to traditional store to look for the supplement should be avoided by this E-retailing.
Entertainment: the e-retailing website for the company should be entertaining i.e. when the customer enters into the site he should find entertaining features that will keep him browsing the website.

Evaluation And Control

Evaluations of Alternatives seek to establish the criteria for evaluation, the features that consumers decide are needed or not.

Past experience is an excellent source of internal search. The greater the experience, the more comfortable is the consumer in terms of search. Some customers do not need to carry out external research for them to make a purchasing decision. They will rely on past experience.. Many consumers’ decision is a combination of past experience (internal sources), marketing, and non-commercial information (external sources). These are important points which internet-based marketers must be mindful of while propagating their products online. In most cases it has been found that while a direct reference to such needs are not met, online marketers do make comparisons of competitor’s product and pricing for customers to make an on-the-spot evaluation, before making their purchase.

When there is risk factor lurking around, consumers are likely to engage themselves in complex information search and evaluation; in low-risk situations, they employ simple search and evaluation tactics.

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