I got the business idea from the identification of market gap. After I research, I found that there is few companies that operate the said business. The company name would be Tranzsocial.com Tranzsocial will provide an inclusive services to the customers ranging from sports equipment and clothing, personalization, shopping and buying experience to customers. The company would market its products and services globally (Scarborough, 2016).
Business model canvas
- Demographic segmentation – the type of segmentation that would be used would be mainly demographic. The company would address mainly to young generation who like sporting activities and enjoy being associated with celebrities (Reymen, Berends, Oudehand & Stultiëns, 2017).
- Behaviour segmentation- customers would be differentiated according how they buy products, create need or utilise merchandise. These occasions would help tranzsocial.com to expend its market.
- Geographic segmentation- the geographic division would enable the company products to be distributed globally (Serrat, 2017).
Benefits to the clients
Affinity clothing clients will be engrossed because the following important value propositions the would be employed
Content – the content of the company would inspire customers to read the articles of the company and encourage them to repeat their visits and discover new exciting offers in sports, clothing and celebrity across the world. The development and the acquisition of the content is going to be mostly exclusive to secure the brand of the company (Massa, Tucci & Afuah, 2017).
Unique shopping – the company site would give a inimitable visual experience to clients who are browsing over the products. Though now days shopping experience does not contain true colour and texture, but through the use of technology, the company would create the clients with experience via a vibrant experience. Users would be lucky to utilise the technology of 3D mannequin. The online shoppers may be required to input height, bust, weight, waist size and other details. All the products would have a rotation of 3D to enable a better view (Pedersen, Gwozdz & Hvass, 2018).
Highly customizable- the tranzsocial site will be highly customizable and interactive for customers to view and do shopping. Every time a client enters the tranzsocial.com will recognize the clients and offers products and services that are mostly purchase by customers or the contents that are mostly preferred by the customers (Hopp, Greene, Honig, Karlsson & Samuelsson, 2018).
Easy to use- the tranzsocial.com site will be created to major on sports consumer and it will be easy to purchase products.
Community- tranzsocial is going to create a strong group of people who have common interests in in content and programming.
Tranzsocial.com would be created to enhance a good relationship with customers. The relationships would be as follows (Hiteva & Sovacool, 2017).
Self-registration- the potential customers who can browse the site would be able to sign up before purchasing the products. The customer would be prompted to register before making any purchase. The user would also be prompted to select the preferred language and the currency.
Personalised services –customers will have a chance to customize the viewing experience, this would increase the loyalty of customers, each customer is authenticated and their preference are sorted by the system to be priority.
Culture- in order to meet the needs of the customers the company intends to listen to the clients’ needs that would assist them to build the customers profile that add market demographic data and provide feedback to the sponsors.
Tranzsocial.com is going to sell their products via multiple distribution channel or single distribution channel. These would involve either business to business (B2B) or business to consumer (B2C)
- Wholesaler/Distributor- customers would order for goods and services and would be channel via a wholesaler or distributor.
- Direct/Internet- clients may purchase products from the company’s website and delivered to them directly using the company’s vehicles.
- Direct/Sales Team- the products may be sold directly to the clients
- VAR- the company may channel goods via value-added reseller.
- Consultant- the customers may obtain the products from the company consultants, who would give guidance to the clients.
- Dealer- clients may order for products or service via a dealer, the dealer would organise everything until the clients receive the products.
- Retail- the customers may order goods and get them through the retailers who are also the company
Tranzsocial.com will give a comprehensive consumers services that are value added that would concentrate on its audience and the products sponsors. To secure the brands, products and prices, the company would put their services as a priority on the sales. The company will not only deal with online services off-line alternatives would be used as well. It would emphasis on customer interaction on the selling process. The key activities of the company would be as follows: (Ross & Byrd, 2015).
- Content/ programming- the users of the platform would be experiencing the leading programming and expositions that would focus in sporting activities, clothing and celebrity. To enhance the services of the company more of the products and services would be sold to syndication partners (Boons &Lüdeke, 2013).
- Buying and referring- the buyers would be referred to the merchants who are available online through clicking on products that are shown the company content and programming section. Each and every activity would be tracked for purchases history and the customer services (Taneja, 2017).
- Interactive browsing- tranzocial.com would use the modern technology that would facilitate interactive browsing. Users would be able to drag products and drop it to their shopping cart this service would affect way in which the customers do shopping over internet.
- Community- Users of the tranzsocial platform would be inspired to participate in community services and communicate via boards, email and chat rooms. This would create a good profile for the company that would add value marketing and feedback and demographic information to sponsors (França, Broman, Robèrt, Basile & Trygg, 2017).
- Personalization- clients would be in a position to personalise the viewing experience.
The key resources of the company would involve tangible and intangible resources
The tangible resources would offices, vehicles, office computers, servers, the company phone number. The intangible resources would involve the brand name of the organization, company logo, the website, insurance, permits, employment contacts, shareholders agreements, supplier contracts and the copy rights (Yang & Evans, Vladimirova & Rana, 2017).
Tranznet.com will create a sponsorships and strategic alliances with main key industry companies that will create a public relation credibility and traffic to the companies’ site. The main partners of the company would be as follows:
Big pipes- this would be internet service provider, this company would offer services like internet distribution.
Cool Content- this company would provide the internet portal and internet distribution services
Technology Web Builders - this would provide the company with the website, maintenance services and inventory distribution.
Traffic and Brand Builders – would offer marketing activities, content syndication and affiliate marketing.
Tranzsocial will generate profits and revenues from variety of sources
- Advertising- the advertisers will have to pay banners and ads, link placements and the featured articles in the company content
- Affiliate commissions
- Content/ design syndication – tranzsocial.com services will be directly sold to affiliate associates for co-branding and republishing exposure. The associates will be receiving fresh updates content from tranzsocial.com every day. The will be received over the links on the website (Schaper, Volery, Weber &Gibson, 2014).
- Services that are value added- the tranzsocial will offer additional products and services to its sponsors like web casting of live events, chat hosting and moderation, messaging boards.
Source of funds and the use proceeds
For the company to achieve its objective it needs to incur some costs. The company is looking forward to secure funding through an equity funding that would create investments in many areas and fund financial needs for the first 12 months of the business operation. Tranzsocial is seeking 200 million US dollars to finance their activities. The funds from equity would be utilize as follows;
||$ 15 million
|Strategic alliance and marketing
||$ 20 million
|Technical equipment start up
||$ 100 million
||$ 20 million
||$ 55 million
||$ 200 million
The company profile
The name of the company would be Tranxsocial.com. The aim of the business is to create an online sports entertaining network that would offer games program, equipment and clothing. Identifying that a vibrant traits of retailing merchandise over an internet is to give persuasive entertainment content that would inspires sales (Brinckmann, Dew, Read, Mayer & Grichnik, D., 2018).
Tranzsocial.com market efforts would be focused to execution of the organization strategies of creating awareness and bring the traffic to the company website. The amalgamation of robust creative marketing will increase the association with the traffic sites which would result to more visitors who are going to be loyal and frequent customers. The company is expecting to utilise many tools of marketing that includes web advertising, grassroots marketing, affiliate market and public relations. The company is forecasting a total of 24, 000,000 in their first year of operations (Ghezzi, Cavallaro, Rangone & Balocco, 2015).
- People who are interested in merchandise and sports products
- People who are entertained by shopping experience
- People who like purchasing clothes online
- People who are living or working in Australia, Asia, North and South America
- People who can access internet either at work or at home or at work
- People like purchasing clothes that contain names of celebrities.
Demographics of target customers
The customer of the tranzsocial would have the following demographic features
- Male 82% age between 25-54 / female 18 percent
- Average of 34 years old
- 55 percent full time employed
- 59 percent married
- 72 percent can access internet from home are office
- 45 percent are
Operation and technology
It is going to be critical that the audience of the Company enjoy the design and the layout of the company’s website and interact freely from the nature of the companies programming. Tranzsocial design and layout is going to be user friendly and it will be very attractive to the eyes of the target audience. The functionality features and the content may be simulated by the competitors. The company would have a robust branding message that is going to advance to all areas of the site and is going to provide a good experience for the clients. The website should encompass the identification and the sophistication of sponsors and the programming that is presented and offered to the clients to enhance an interactive community (Chambers & Humble, 2017).
There are a good number of trends that are going to make tranzsocial.com the ultimate solution in sports industry
New technology- the company site will provide adequate viewing experience to clients online. The 3D graphics, broadband technology and interactive televisions is enabling new both new and existing business that is going to challenge shopping and viewing experience.
Merging partners- the eTailers and the companies that concentrate on internet content are merging and joining together to reinforce offerings.
Pro sports over internet- celebrities are constantly and increasingly making us e of the internet to be a communication medium so as to exploit latest product offering while marketing their personal value gaining fame.
The sports industry is reluctant to utilizing technology- most companies shy off using technology. My company take this to be a chance in the evolving industry.
Success of other online sites- most companies that use online has experience success, for instance Amazon has demonstrated that clients value online shopping.
Currently we have several companies that are providing products or content online. For instance we have BCD limited. Penetration into market for companies might be limited due to the following factors:
- Minimal interactive services offered which build communication with clients, for instance message boards and chats.
- Most companies focus on selling products with no rewards experience such as culture, sports and clothing
My company will adopt the following strategies to meet the objectives which would make it the leading company for online sports.
- Build a persuasive value preposition for both clients and the sponsors
- Create a robust brand leverage and recognition brand equities affiliated by Tranzsocila.com
- Develop a good relationships with clothing manufactures and the content syndication partners.
- Give a persuasive content presentation that would encourage clients foe repeat visits.
- Provide highly personalized services
The human resource team would involve the experience executives and other employees of the company. The executive team will Have a general backgrounds in controlling developing and managing business inside sports and the online industries. The company is planning to have three senior executives and around ten supporting staffs would be in charge of every departments. Some of them would assist in site design, marketing, media programming and business development. The executive’s staff and main business operations will be situated at Sydney, Australia. (Burns & Dewhurst, 2016).
The business owners would comprise of five family members who intends to be entrepreneurs. The owners would be the directors and the executives as well. They are going to be responsible for:
- Organizing- this involves bringing together the materials, man power, machinery and money to execute the organizations tasks and plan.
- Staffing- the management of human resources and planning
- Directing- give guidelines and directions to employees while performing work
- Planning – this is predetermining the performance of the activities of the organization (Foss, & Saebi, 2018).
The implementation of this business model and plan will result to significant viewers, profits and the commercial revenues. The key metrics of finance would include:
Page views monthly
24, 000, 000
Tranzsocial.com revenues ($)
Tranzsocial.com total expenses ($)
Net profit/ loss
For every new business venture, there must have business plan and model. This business model plan will try prepare the tranzsocial.com to have solid business profile and trademark that would make the company to achieve its set objectives (Brinckmann, Dew, Mayer, Read, and Grichnik, 2015).
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