Business Plan: Online Shopping Mall Harvard Case Solution & Analysis

Market Size for Business Opportunity

Market Size

Indian Market

The market size can either be calculated with respect to the number of buyers in the market or through the quantity purchased through the online shopping per year. While considering the Indian market, the average revenues that were generated in the year 2013 were $16 billion, whereas, the number of consumers reached a total of 20 million (Economic Times, 2013). However, this particular trend in the market has greatly increased when many companies enhanced their payment options. Therefore, the greatest strength of Myshopinternational also lies in providing the different payment modes to the end consumers.

Chinese Market

China is considered as the center of the online retail market because it has the largest number of online shopping buyers than any other country. The number of online shoppers in China for the year 2013 is recorded as 302 million (People Daily Online, 2014). The online transaction for the same year includes 1.85 trillion yuan. The market growth of the online market in China has increased by 120% from the year 2003 to 2011. The online market has boosted the economy of the country and it is a perfect market to enter for Myshopinternational because the customers are savvy. According to 2011, the highest percentage share for online purchasing was apparel with 35% market share (McKinsey, 2013). Consumer electronic and recreation makes up the second largest percentage with 20% (Details could be seen in Exhibit 1).

Prototype

A prototype website shall be developed by Myshopinternational which would be based on the same concepts and presented to the potential buyers. The prototype of an online shopping store would be based on the number of pages in a website and the analysis for each page (Salvendy, 2012). The prototype should be active and have navigational features so that a consumer can run through the website and provide its feedback.

Administer a Buying Intention Survey

A survey would be conducted amongst university students in each Indian university and the Chinese university in order to get feedback on the prototype. These customers are also the potential buyers for the company as the majority of the online purchasing is performed by university and college going students. Therefore, a set of questionnaire shall be developed to monitor the feedback of consumers. The questionnaire would be based on open ended and as well as closed ended questions. The idea for administrating a buying intention survey is to allow the users to see the offered website, test the website, and lastly to use the website.

Marketing Mix

Product

The services that are being offered by Myshopinternationalis to play a role of intermediary between its customers, which includes Walmart, Marks and Spencer and its end consumers. Myshopinternational would provide a single medium for its overseas consumers to purchase the product from different companies and make payments through their local payment methods.

Price

There is no price associated with consumers for buying a product through its websites or for providing the shipping services to the end consumers. However, Myshopinternational does work on the basis of commission collected from its customers. The commission is 5% to 10% of the total sales made through Myshopinternational.

Place

India and China are the prospective target market for Myshopinternational because of their increase of growth in online shopping market. However, the Indian market is still untapped because of the unavailability of the local payment options in online purchasing. China is the largest online market for consumers and Myshopinternational needs to target its potential customers through its competitive advantage.

Promotion

The company would promote its services through online social network marketing where a larger group of Millenialsis present. The physical retail stores of customers shall also be considered to attract potential customers and to make them aware about the services offered by Myshopinternational through below the line activities in the store.

People

The particular marketing mix is concerned with the staff people of Myshopinternational. In order to provide repeat purchases, it is mandatory to offer extraordinary services to make consumers delighted. Good service would result in positive consumer experience and lead to positive word of mouth (Richter, 2012).

Niche Market

A niche market for Myshopinternational could be considered those customers, which are unable to make online purchases due to unawareness of payment options or the unavailability of the local payment options in their country. The research identifies that if the desired payment structures are provided to customers living in India and China then the online shoppers could increase at a higher rate. The niche market are those specific markets, which can be targeted by the company to sustain comparative advantage (Ferrell & Hartline, 2007). Therefore, the company has a comparative advantage that it shall provide the local payment options to increase consumer acquisition for their customers................................

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