Investigate the Opportunity of Employing CE Before we put forward our detailed analysis about how to set up our website and fulfill our ideas, there is a question that why we choose E-commerce? How could E-Commerce satisfy the needs of both customers and companies in this field? 1. Consumer Analyses To specify this, we shall analyze the characteristics of sports customers in the market first, which are different from other specific fields to some extent. To begin with, the difference is that with sports, fans tend to develop strong relationships with their favorite teams and these teams hold a special place in heir life.
This product relationship has more depth than more typical targets of traditional marketing like a laundry detergent or shirt. Moreover, sports fans will spend large amounts of money on game tickets, stay up late researching player statistics, or write letters to their favorite players. Whereas, another element that makes sports marketing unique from traditional marketing is that it is unpredictable, rapidly changing, and inconsistent. Unlike selling a concert with a set plastic and agenda, a marketer never knows what is going to happen in the ninth inning of a baseball game.
Consequently, all of these qualities make sports both difficult and enjoyable to market. 2. E-commerce benefits sports marketing After our research, we find that most recently, the hottest trend in sport marketing is utilizing the Internet. Whether by a team website, social media page, or blob, nearly all teams are using the Internet as part of their marketing strategy to build relationships. The Internet is not only used as a tool to obtain information but, due to recent technology, it can be utilized as a two-way communication system.
Now, websites are not only media Sources but they are also a means for fans o communicate with the organization. This provides consumers with a stronger relationship with the team and in turn, increases brand awareness and profitability, which is the key point of the companies. To make a comparison with foreign websites, the most common trends in sport marketing practices can be found in Table 1 as below: Based on these facts, we can see that using E-commerce to fulfill our idea is the best way. It not only satisfies both consumers and our needs, but also represents the latest trend in sports business. . Requirements for sports websites At the same time, there are also some key requirements when we consider owe to set up our website. A) Stay up-to-date with current trends in technology and utilize them in marketing practices. B) Continue to enhance the social media offerings on the team’s website. C) Do not only focus on the quantity of fans but also on forming meaningful relationships with fans. D) Pursue other forms of sport marketing on top of marketing through the Internet. E) Closely monitor the marketing practices used by the other sports to see if they should be adopted and adapted. ) Continuously evaluate marketing practices for success and forecasting. Part Two: Identify Competitors Online booking websites a) Jiao. Com Jiao. Com is an online booking website based in Guanos, founded in 2012. “Ciao” stands for “get together” in Chinese. Users can book gyms, fields in any district of Guanos. Also, they can share sports experiences, chat with other fans and invite friends in Jiao. Com to join their game. Ciao. Com started from a sports club. The establisher once owned a club and started the website to make his business “larger”. Therefore, Jiao. Mom now focuses on getting and keeping in touch with sports clubs and pay them to book fields/gyms. B) Who. CNN Who. N is an online booking website which is originally based in Beijing (and now covers 6 main cities nationwide. It provides booking service in several different kinds of activities: ball games, extreme sports, dancing, water sports, etc. The main competitive advantage of who. CNN is its good relationship with universities. Because China’s market of sport fields is still developing, a big percentage of fields belong to universities and schools and is open to the public. There’d not many private -?owned sports fields.
Who. CNN succeeded in keeping good relationship with different universities like PKZIP and BAA. ) Dam Ball Adrian ball is a subsidiary company of Dam. Com. Adrian. Com is the No. 1 online booking website of tickets of concert/shows/sport games. On 1st Jan 201 3, Dam. Com introduced its sports field booking platform – Dam Ball. Dam Ball provides the basic features like searching, booking or sharing. And its main advantage against other booking websites is the well-known brand of Dam. Com, which covers more than 30% of the market share nationwide (and this number is as high as 90% in Beijing). 2.
Online sports gears seller a) Youngling. Com “Youngling’ stands for “sports fan” in Chinese. It’s a typical BBC seller that provides sports gears (mainly basketball and football) online. The layout of youngling. Com looks exactly like any BBC website in China (such like JDK. Com). The main business model of youngling. Com is to cooperate with famous sports brands like Nikkei, Aids and Puma. And the core competence (according to its official introduction) is that every product it sells is 100% genuine. In China there’d many fake products in sports market, and it’s difficult for costumers to tell.
Thus, youngling. Coma’s selling point is really a powerful one for Chinese customers. ) Yeager. Com Yeager is an online BBC sports gears seller founded in 2008. Unlike youngling. Com, Yeager mainly focus on those “small” ball games: table tennis, badminton and tennis. In China, “large” ball games are popular, but “small” ball games are also popular. China’s table tennis (and maybe badminton) is No. 1 in the world, and there’d hundreds of thousands of table tennis lovers. 3. Sports-related forums Bbs. Hub. Com Hub. Com is the largest sport-related website in China, and its forum BBS. Pup. Com is the No. 1 sports online forum. Users discuss about all kinds f sports in tens of sections, and the “sports gears” section is for sellers & buyers. Up to 2013/5, the “sport gears” section had kick topics. Hub. Com has its own currency called Calorie within the BBS. And users can buy things both through online payment or directly with Calorie. And they can also exchange ARM into Calorie, or transfer between accounts. However, there is not any quite influential website that combines online booking, sports gear seller and forums in this market.
The market is still open and lacks a strong leader, and that is also part of reasons why we came up with this idea ND decided to enter into the market. Part Three: Business Development Plan Build Platform We need to hire two computer engineers to technically build our website. There should be several sections in the website. Auto-match system for sports partner search: When a user put up a “partner wanted” notice, the system will automatically help him/her select some partner candidate according to the time, location and kind of sports.
An advanced search also allows users to select with accurate conditions like age, sex and sports experience. Gym section for field booking: On the one hand, he information of gyms like opening time, location, facilities should be clear. On the other hand, it’s very essential to encourage users to make comments on gyms. In the long run, we could build an online payment platform, through which people could pay the booking fee. Sports goods collection for advertising: During start-up period, it is not suitable to put too much sports good on it, for our core business is not selling sports goods.
Advertising could increase after we have a rather solid customer base. We could create a BBS post focusing on sports goods. People may discuss which tennis racket or settable is more durable there. And this will lead to more clicks on advertisement indirectly. A reliable database for customer information storage and different BBS posts for sports lover communication may be needed as well. Find Partners Before grabbing our users, we should find our partners first: gym, coach and sports goods retailer. Gym: Base on the accurate information got from industry research in early stage, we could find suitable gyms that may cooperate with us.
Trying to find some big ones with chains maybe helpful, for we can reach several branches in a short time. We project loud negotiate with these gyms one by one. As a start up in this industry, building relationship with gyms is very important. So the items in contracts could be adjusted according to situation of different gyms. Coach: As for coaches in the gym, we could get them together and sign similar contracts. As for individual coaches, we need to first figure whether he/she is experienced, whether he/she has a professional license.
Sports goods retailer: As mentioned above, we wont regard advertising as a major source of cash flow at the beginning. Instead we value the brand image and customer experience most in this period. So the first step may be cooperating with some reliable retailers who provide quality goods. Reach users The marketing campaigns could be carried out both online and offline. Online marketing: One way may be social networks like render and Webb. Another may be sports related websites like BBS. Hub. Com, sports. SOHO. Com.
We could write some advertorials talking about the convenience brought by our website. Also encouraging users telling their experience on our website may be very effective way of winning reputation. Offline marketing: Some attractive posters may be needed in campus targeting on college students. Delivering some coupons to office buildings may also be a useful way to generate white collars. Putting some leaflets and brochures in gyms with instructions of our website could be tried as well. 4. Keep user stickiness Only we keep the user stickiness, could we achieve success in the long run.
The core strategy of our website is “social sports consolidation. ” That means we provide a series of services to our users. Users could find whatever they want about sports. During this process, they could enjoy the fun of being with other people. In long term, people could buy facilities, book field, find coach, et partners, share experience on our website. Part Four: Identify the Revenue Model How should we make a profit with this website? Since it is a business, how should we generate revenue and earn us a living through this website?
The revenue model of our website can be divided into three parts, according to the ways we generate profits. 1 . The fist part of our revenue comes from the commission fees we charge from sports venues. As users on our website choose from the sports venues and book a time and a place through our website, we should charge a certain fee to the sport venue. Since with our website, the sports venue can get access to a large number of potential users, who may not choose or even know this venue without our website. So it IS natural for us to charge some fee from sports venues.
Besides, business like sports venues have very high fixed cost but relatively low marginal cost. Thus if they don’t rent their venues out, they would suffer great loss, which means they are eager to find as many customers as possible. So they must be willing to join in our website platform to attract as many customers as possible. In addition, compared to spreading leaflets or outing advertisement on board, using our website is much more effective and cheaper, since the target market is very clear, and the commission only take up a small portion of their revenue. . The second part of our revenue would come from the fee we charge from coaches. Every time a person who wants to learn a certain kind of sports from a coach listed on our website and “books” the coach, we would charge the coach a certain commission for each student. After the first time of training, it can happen that the trainee wants to make another appointment with the coach privately. Since we cannot forbid or control this kind of private contact, we would only charge the coach if the appointment, mostly the first appointment, is made through our website.
The coach has the incentive to put himself on our website as he could get access to a large number of potential customers in a relatively low cost. After all, it is really hard for a single person to put advertisements on board or other public channels, because his resource is quite limited compared to a company or an institution. However, with our website, such an advertisement is quite cheap and convenient. For the users of our website, it is also more convenient for hem to find an appropriate coach through our website.
As all of the coaches have their description and comments made by other trainees, our website is more reliable than those advertisement put by institutions. The last part of our revenue comes from other advertisement, either from sports goods stores, or from companies that provide other service, such as fixing rackets. We understand that users on our websites not only have the need to do exercise, book the place to do exercise and find some one to do sports together, they also need to constantly change or fix their sports equipment. Especially for the latter, it is sometimes hard to find an appropriate service provider.
Thus we would include that part, introducing some companies that provide this kind of service. On the other side, putting advertisement on our website is profitable and worthwhile since the target market is clear and large. It is natural for the users to click on some sports advertisement that they are interested in. Just as other service we provide to sports venues and coaches, it is a relatively cheaper and more effective way to put advertisement on our website than other channels. For the specific fee part, we decide to charge different amount of fee according to when and where to put the website.
For example, the advertisement on top Of the weapon would be more expensive than those floating windows advertisements. Also, putting websites on weekends would be more expensive than on weekdays. 4. It is important to mention that we would not charge any fee from our website users-?those who wants to do sports through our website. Reasons are followed. On the one hand, we think these users are our core assets. The successful operation of our website rely heavily on whether there are a retain number of users and whether they actively use our website.
Without them, the sports venues, coaches and advertisers would not get profit from our website, then why should they pay us? On the other hand, in order to attract as many as users as we can, we think the use experience is the most important thing. Thus it is necessary for us to create a comfort blew and friendly environment for the users. We don’t want the users to hesitate about whether they should join our website because of some additional membership fee. Also we don’t want them to find other channel to kook the sports venue or coach because they have to pay additional money if they use our website.
Part Five: Find the Cost Sources Before we earning we have to pay for several program such as website design and maintenance, labor cost, office supplies and marketing expense. 1. Cost of building the website Website is very important for our company. The website will influence the customer experience. Whether can we attract or retain customers depends on the convenience of the website. Also, all of our business activity such as booking the gym, connecting the player with strangers and buying the sport’s rodents is supported by the website.
We should hire the most excellent staff to make the website more concise and functional. Besides that, website maintenance is also important. We must solve the problem as soon as possible when the website gets in trouble. If we can’t do this better, customer will not satisfied with us and try to find some other ways to play sports. As described above, Of course, it will cost lots Of money of the website, we should try our best to make the website more attractive and become the core competitive of our company. 2. Cost of labor We need 1-2 people to connect the gym in each specific area.
Their task is attracting the gym managers who agree with our terms to make a contract with us as much as possible. We have to make sure a spare gym for our customer after they booking on our website. In addition, worker should find the coach for our customer. Also, the company will hire some full-time coach for the customers but it cost too much and it’s impossible to provide all of the customers a full-time coach. Thus, the staffs need to hire some part-time coach working in some peak periods. Finally, the staffs need to complete the final work is try to make a corporation with the sports shop.
Because we will sell the sports products on the website and also we could get some sponsor from the sports shops to organize the games to promote the website. 3. Management cost As the company develops, our business will expand and the number of staff will increase fast. Management will be a big problem in the near future of our company. Because as the company expand, our business will get involve many types of sports such as golf, hockey and tennis. Although they are all sports, they still have its specific characteristic. We need to find the effective way to reduce our cost in management during the period of the business expands.