Transcript Online Selling Used books

LOGO
LIBROPARADISO
GROUP MEMBERS :
RAJA AINUL BISMI
FATHILAH
NASHRAH HANUM
Presentation Outline
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INTRODUCTION
BACKGROUND
OBJECTIVE
MISSION & VISSION
VALUE PROPOSITION
REVENUE MODEL
COMPETITIVE ENVIRONMENT
MARKET OPPURTUNITY
COMPETITIVE ADVANTAGE
MARKET STRATEGY
ORGANIZATIONAL DEVELOPMENT
MANAGEMENT TEAM
INTRODUCTION
The 1st company solely selling used books in
Malaysia – especially for the school of
management.
The business covered all around Malaysia
especially for the high education students
either post or undergraduate.
Encourage people especially students to
involved business online in a simple way by
posted the used books in the internet.
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COMPANY BACKGROUND
Libroparadiso is the 1st company solely
selling used books in Malaysia
Find and match buyers and sellers based on
demand with a reasonable price.
BACKGROUND
 Description of business
To become intermediaries in selling used books online especially university student
textbooks. Space for the company will be through virtual store.
 Finding inventory: walk-in traffic, garage sales, flea markets, Goodwill stores,
library sales, estate auctions, newspaper ads, scouts, other bookstores, remainder
outlets, web interface, etc.
 Supply and demand:
 To decide whether to go for volume with low prices, or go for service with high
prices.
 Set prices high enough on the decent books.
 The lower prices, the more work and the less money make, focus on average
selling price.
 Pay more for fewer but better books. The company are competing for those
higher quality books.
 The company would offer range of discount according to years of publishing,
author, condition of the books.
 Condition Rules: Do not buy books that are in poor condition.
Even if they are hot titles.
Assessment of the business environment
 Economic Environment
The economic condition is expected to be stable.
Inflation & interest rates have been stable.
The business is not highly exposed to economic conditions – the price
offers is quite reasonable.
 Industry Environment
Competition in the industry.
General demand for the product in the industry.
The demand for the product/services is increasing in the local area.
- This business would compete against other company thus we will focus on
students which solely selling the education used books in the market.
 Global Environment
The business may sell products in foreign markets in the future or obtain
supplies.
The business may consider purchasing books from Asian countries in the
future.
In general, this type of business is not highly exposed to global conditions.
Business Model
 Consumer to consumer (c2c) Model
A model wherein a consumer himself puts goods for sale and there is
another to buy it.
 Consumer-to-consumer (C2C) (or citizen-to-citizen) electronic commerce
involves the electronically-facilitated transactions between consumers
through some third party. A common example is the online auction, in which
a consumer posts an item for sale and other consumers bid to purchase it;
the third party generally charges a flat fee or commission. The sites are only
intermediaries, just there to match consumers. They do not have to check
quality of the products being offered.
This type of e-commerce is expected to increase in the future because it
cuts out the costs of using another company.
 Examples for online consumer to consumer (c2c) model:
Example 1-http://www.ebay.com
Example 2-http://www.ubid.com
Universities & C2C Business Model
 Universities
 C2C are becoming more popular amongst students in universities because
these are large communities in the same geographical region that are low
on money.
 So they are looking for deals very often and these kinds of websites offer
this. Universities themselves set up places for students to sell textbooks and
other stuff to other students, you can even advertise that you are subletting
your apartment.
 An example of this from above is Tiger books and Dalhousie University
Classifieds, both of these are put together by the school itself for the
students.
 Sources: Haag, Stephen; Maeve Cummings; Donald J. McCubbrey; Alain
Pinsonneault; and Richard Donovan. Management Information Systerms:
For the Information Age. 3rd Canadian ed. New York: McGraw-Hill Ryerson,
2006.
OBJECTIVE
To provide a platform in exchanging information
& knowledge.
To reduce waste of holding inventory/used
textbooks among students.
To assist university student in getting extra
money at the same time generating income to
the company.
To assist student in reducing cost, as well as
time among students.
MISSION & VISSION
 Vision:
To be the leading organization in providing platform in
online business transaction especially in selling used
books.
 Mission:
Mission is to provide consumers with quality used
textbooks at cheap prices, with friendly customer
service.
 ‘Your partners in exchanging information’
VALUE PROPOSITION
COMPANY
- Market leader for selling used books online.
- Platform for those who wants to sell / buy the
used books.
- Generate profit in an easy way – we are
intermediary not much cost incurred.
- As way to minimize the cost of education among
students.
- Complete & informative data base – lead to
customer & seller retention.
VALUE PROPOSITION
 CUSTOMERS
- Reduce cost of education especially students.
- Reduce time consuming – no need to spend a lot of time
to search the books.
 SELLERS
- Reduce space of inventory.
- Generate side income.
- Closed contact – benefits in term of latest information of
books especially most wanted books.
REVENUE MODEL
Online
business
revenue
models
Revenue from
conventional
c2c business
models
The website charge
the consumer for
exhibiting his product
or might charge a
commission when a
transaction is made.
Example can be like a
consumer being
charged commission
for every transaction
that he makes through
ebay.com.
Revenue from
Internet specific,
innovative
business models
PPC is pay per click
revenue model where
an advertisement is
charged based on the
number of clicks it gets
through the advertising
site.
Sponsored ads can be
a permanent banner
or a rotating banner
placed on an
advertising website
and is charged for a
fixed time interval like
monthly, quarterly,
yearly etc.
COMPETITIVE ENVIRONMENT
 List of competitor:
1.
2.
3.
4.
5.
6.
7.
8.
Arthur's Books - Online Book Retailer
http://www.arthursbooks.com
Borders Bookstores (Malaysia)
Berjaya Books Sdn Bhd
http://www.berjaya.com.my/berjayabooks.htm
Kinokuniya Bookstores, KLCC
http://bookweb.kinokuniya.co.jp/indexohb.cgi?AREA=05
MPH Bookstores Sdn Bhd (21 bookstores in Malaysia)
http://www.mph.com.my
Pay Less Books
(Malaysia’s largest bookstores chain for used books)
http://www.paylessbooks.com.my
Popular Book Stores & CD-Rama outlets
http://www.popular.com.my
Times Bookstores Malaysia
http://www.timesbookstores.com.my/
Malaysia Used Books for Sale, Buy, Sell @ Adpost.com Classifieds
http://www.adpost.com/my/books/
Wide list of categories of books
comprising :
fiction books,
romance books,
science fiction books,
fantasy books,
general self-help books,
business books,
relationship books,
health books,
parenting books,
spiritual books,
cook books, travel books,
D.I.Y. books,
art & design books,
music books,
kid books, teenager books,
classic & literature books,
education textbooks,
dictionary,
national geographic and many more.
MARKET OPPURTUNITY
Increased number of internet user worldwide
including Asian countries and Malaysia.
Opportunity to encourage/promote buying
products through online.
Increased number of students across country
according to type of institution (wider scope of
target market).
Usage of textbooks among university student is
considered as a must, need and necessary
regardless it is a new one or used item.
 Source : Internet world stats http://www.internetworldstats.com
 Malaysaian population exceed 14.9 million users.
 Source : Internet world stats http://www.internetworldstats.com
20 IPTA
17 IPTS
COMPETITIVE ADVANTAGE
SWOT ANALYSIS
• Specification: focus on
business school books
• Promotion
• Payment option: ease
to the customer
• Discount
• Membership
• Competitor in same
business model
• Number of company
already exist in the market
• Various range of books
sold in the market
• Students photocopy rather
than buy used textbooks
• Imitator
Strength
Weakness
Threat
Opportunities
• Cost Limitation eg.ads
cost
• Risk of delivery: damages
• Condition of the books
• Availability of the books
• Trust issues between
buyers & sellers
• Limitation in types of
books sold compared to
competitor sold new &
used books
• Market opportunity:
Total number of UITM
Student:40,000 main
campus (Shah Alam),
80,000 across region
with 24 faculties
MARKET STRATEGY
Marketing plan
Product/Service
Characteristic
Target Market
Pricing
Promotion
Distribution
Product: Used Textbooks
 To become intermediaries in selling used books mainly
textbooks for university students across region.
 Costs are reduced by not having to maintain a
warehouse, and but the company have shipping/post
and handling expenses.
 The profit margins are typically higher with digital
products compared to books.
 Company need to identify product/service costs,
operating & overhead costs, & profit.
 Details, Category, Book Title, Author,
Language, condition, Price, State
Target Market
Institution of Higher Learning in Malaysia
IPTA/IPTS/Private College across region
IPTA in Selangor area: UITM
UITM: Management & business, Science & technology, Social science & humanities
Management & Business Faculty: Undergraduate/Postgraduate
Undergraduate/Postgraduate: 5 diploma programmes, 10 degree programmes, MBA & EMBA,
PHD & DBA,Chartered Institute of Transport & Logistic
Pricing
 Desirable features of product/services.
 Membership RM10, discount & incentives for the buyers as well as
sellers
 Reasonable price range
 Review opening for every universities in Selangor & region.
 Price of books is according to supplier.
 The company will gain profit from 20% of books price + delivery cost
 If the books damage/not as in the picture/website, the supplier will
be penalize with 15% loss
TABLE OF PRICING, DISCOUNT & BOOK SOLD
TYPES OF BOOK
TO
FINISHING
NO OF PAGES
PURCHASED
UV + HOT
STAPPING
MORE THAN
351
200< 350
LESS THAN 199
GROSS % GROSS DISCOUNT DISCOU
PROFIT
(RM)
PROFIT
5%
(-)RM
2%
(-)
5
32.50
3
7
130.00
100.00
30.00
30%
123.50
95.00
28.50
30%
5
30.88
3
7
117.00
90.00
27.00
30%
5
29.25
3
7
110.50
85.00
25.50
30%
5
27.63
3
6
104.00
80.00
24.00
30%
5
26.00
3
6
5
24.38
3
5
5
22.75
3
5
HOT STAPPING
MORE THAN
351
200< 350
97.50
75.00
22.50
30%
91.00
70.00
21.00
30%
UV
LESS THAN 199
MORE THAN
351
200< 350
84.50
65.00
19.50
30%
5
21.13
3
5
LESS THAN 199
MORE THAN
351
NO UV &NO
200< 350
HOT STAPPING
LESS THAN 199
78.00
60.00
18.00
30%
5
19.50
3
4
71.50
55.00
16.50
30%
5
17.88
3
4
65.00
50.00
15.00
30%
5
16.25
3
3
58.50
45.00
13.50
30%
5
14.63
3
3
120.00
80.00
40.00
30%
5
30.00
3
7
108.50
75.00
33.50
30%
5
27.13
3
6
99.00
70.00
29.00
30%
5
24.75
3
5
100.50
65.00
35.50
30%
5
25.13
3
6
89.00
60.00
29.00
30%
5
22.25
3
5
79.50
55.00
24.50
30%
5
19.88
3
4
HARD COVER
UV + HOT
STAPPING
MORE THAN
351
200< 350
LESS THAN 199
UV
ART CARD COVER
PURCHAS
ED
PRICE
PRICE (RM)
(RM)
SELLING
MORE THAN
351
200< 350
LESS THAN 199
TABLE OF COMMISSEN FOR SUPPLIER
TYPES OF BOOK TO
PURCHASED
FINISHING
UV + HOT STAPPING
HOT STAPPING
HARD COVER
UV
NO UV &NO HOT
STAPPING
UV + HOT STAPPING
UV
ART CARD COVER
HOT STAPPING
NO OF PAGES
MORE THAN 351
200< 350
LESS THAN 199
MORE THAN 351
200< 350
LESS THAN 199
MORE THAN 351
200< 350
LESS THAN 199
MORE THAN 351
200< 350
LESS THAN 199
MORE THAN 351
200< 350
LESS THAN 199
MORE THAN 351
200< 350
LESS THAN 199
MORE THAN 351
200< 350
LESS THAN 199
PURCHASED
PRICE (RM)
100.00
95.00
90.00
85.00
80.00
75.00
70.00
65.00
60.00
55.00
50.00
45.00
80.00
75.00
70.00
65.00
60.00
55.00
50.00
45.00
40.00
DISCOUNT
3%
(-)RM
5
5
15.00
14.25
5
5
5
13.50
12.75
12.00
5
5
5
11.25
10.50
9.75
5
5
5
9.00
8.25
7.50
5
5
5
6.75
12.00
11.25
5
5
5
10.50
9.75
9.00
5
5
5
8.25
7.50
6.75
5
6.00
Promotion
Website
Autorespo
der
Student
Portal
Promotion
Banner/ot
her links
to website
Flyers
Effective
mkt/SEO
Email
Blast,
Newsletter
Promotion
Activity
Details
Venue
Date
Website
link to join company mailing list
on every page & put a check box
on the order form.
To capture general & relevant
visitors.
http://libroparadiso.webs.co
m
Updated concurrently
Student Portal
To advertise the website &
product
offering
to
create
customer awareness.
UiTM Student Portal:
Newsflash
Jun, Jul, May 2010
Promotion
Flyers
Voucher
Membership
Hot Picks Of The
Month
Author Of The Month
Yr end sales
Leaflet in newspaper
Berita Harian & New Straits
Times (S’gor/S.Alam)
Jan, Apr, Jul, Oct 2010
Faculty
Across region (S’gor)
Jun, Jul, May 2010
July & Aug 2010
Across region (S’gor)
KLCC (KL)
Universiti Sains Islam
Malaysia (USIM) N.Sembilan
Jan, Feb, Mac 2010
4-12 Sept 2010
Jul 2010
Email
blast/newsletter
Send a newsletter to all
subscribers at least once per
month with news, tips & special
offers. Each message has an
"opt out" link so customers can
unsubscribe if they no longer
want to receive mail from you.
Sending email blast to
mailing list of potential &
existing customers .
Send monthly basis,
manually by the company.
Auto respoder
Important
mechanism
for
marketing strategy regardless
any type or business model.
Sending email blast to
mailing list of potential &
existing customers .
Updated concurrently,
automatically using auto
responder software.
Distribution of leaflet during:
Student Registration
Pikom PC Fair
Karnival Pengajian
Tinggi Negara
Bookfest Malaysia 2010
Karnival Mahasiswa (KARSIS
'10)
(Majlis Perwakilan Pelajar)
Distribution: Supplier to Company
• Supply
• Online advertisement via
the company website
Enter books
to sell
Customer
Request
• Demand
• Book advertise match with
customer request
• Product Delivery
• Pack the books
• Deliver:
• By hand
• Post
• Currier
Send the
books
Get paid
• Payment: after company receive
the books in good condition/ no
damages.
• Inspected & marked as
'processed'
• Payment is sent within 3
business days of 'processed'
status.
• Payment via various option
• How the customer have the access of the product?
• How the product/services will be distributed to the customers?
Distribution: Company to Customers
• Customer send
request via email to
the company
Request for
books
Product
offering
• Demand
• customer request
match with product
offering/availability
• Confirm customers
order via
email/calls
Customer
Orders
Payment
• Payment made to
the company via
various payment
option
• Once payment is
received, books will
be deliver directly
to the customers
• Receipt
Delivery of
Products
• How the customer have the access of the product?
• How the product will be distributed to the customers?
Money back
guarantee
• On damages of
products through
delivery process
Website Platform – Getting Started
Website Platform – Register
Website Platform – Rules & Policy
Website Platform – User Agreement
Delivery & Payment Option
Delivery Method:
Post Malaysia
Payment Option:
Maybank2u
Cimbclicks
Credit card
Paypal
MANAGEMENT TEAM
 Organizational Structure
Organizational structure and relationship among
employees position, identify responsibilities of each
position & describe specific task and salaries of manager
& other employees.
 Managing Employees
- Operational & Logistic : focusing on flow of the products,
level of stock, updating stock.
- Financial & sales : focusing on flow of payment made by
the customers, promotion, discount as well as
advertising
- IT : focusing on upgrading the website, respond towards
comments immediately and etc.
Thank you