E-Business plan of a shoe business

Report
On
An E-Business plan of a shoe business
Submitted to:
Mr. Masnoon Salehin
Lecturer
Department of Management
Faculty of Business Studies
University of Dhaka

Submitted by:
Group Name: Scintilla
Group number: 8

No. Name ID
1. Jamima Akter 024-004
2. Halima Afrin 024-032
3. Kaniz Fatema Anika 024-034
4. Tanjil Hossain 024-035
5. Md. Kamruzzaman 024-036
6. Emon Barua 024-079

Batch: BBA 22nd, Section: A

Department of Management
Faculty of Business Studies
University of Dhaka

Date of Submission: May 02, 2019

April 29, 2019

Mr. Masnoon Salehin

Lecturer
Course: E-Business
Department of Management
Faculty of Business Studies
University of Dhaka

Subject: Submission of the Report on An E-Business plan of a shoe business

Dear Sir:

We have the pleasure to submit our report on an e-business plan of a shoe business is
prepared for knowing about an e-business plan.

This report helped us to know practical knowledge of an e-business plan. We the members of
Group Scintilla have tried our level best to collect the information for the report. We hope
that the information given in this report will clearly represent all the parts of the business
plan. We wish that you would be very pleased to accept our report and will consider our
shortcomings while you evaluate our report and oblige thereby.

Sincerely yours,

___________

Tanjil Hossain

(On behalf of the group members)

 Acknowledgment

At first, we would like to convey our heartiest gratitude and total devotion to the almighty
Allah for blessing us with the ability, strength, and patience as well keeping us active in
performing this report.
We wish to express our special thanks of gratitude to our honorable course teacher Mr.
Masnoon Salehin Sir, Department of Management, University of Dhaka who has given us an
opportunity to do this wonderful report on the topic of an e-business plan of a shoe
business. This report has also helped us in knowing a lot of information and we have come to
know about the e-business plan and how it is prepared practically. Secondly, we would also
like to thank our friends and group members who have helped us a lot in finishing this report
within the limited time.
We are making this report not only for marks but also for expanding our knowledge.
Thanks again to all who have helped us.
 Table of Contents

Chapter No. Title Page No.

Executive Summary VII
1 General Introduction of the Company 09-13
and Online Value Proposition
2 Marketplace Analysis & Study of E- 14-20
Environment
3 E-Business Strategy 21-23
References 24

List of Tables
No. Title Page No.
1 Revenue Model 12
2 SWOT 17

List of Figures
Figure No. Title Page No.
1 Online Value Proposition 13
2 Market Share 15
3 Distribution Channel 17
4 SLEPT 18

Executive Summary
The report attempted to highlight the e business plan of a shoe business for the fulfillment of
our course requirement. Therefore, we have studied some e business plan for making this
report effective. This report of e business plan will help us in running the shoe business
efficiently and effectively. This report shows about our business’s mission and vision.
Therefore, it also focuses on online value proposition.

The general objective of the report is to make a business plan of our shoe business. And the
specific objectives of the report are to highlight the important part of the e business plan to
elaborate every parts of the e business plan to provide a detailed information of every
respective parts of the business plan so that everyone can get benefits from the business plan.

In order to make the report more meaningful and presentable we have collected data from
secondary sources. There have been visited some websites regarding e business plan.
Information has been collected from textbook and website. Therefore, based on this
information there has been focused on market research, SWOT analysis to identify the
business’s strengths, weakness, opportunities, and threats. A channel to reach the respective
customers and revenue model has been also developed. Customers have been segmented
based on geographic and demographic attributes. An environmental analysis also has been
covered. Finally, for achieving our short term and long-term goals, some strategies have been
developed.

An e-business plan is very helpful for starting a business. It is a blueprint for the business. E
business plan attract investors to invest in the business. It can be said that this business plan
will work properly to achieve the goals and objectives of the business. Besides this e
business plan will help us to conduct our business activities in the online marketplace
efficiently and effectively. And it will ultimately help us to achieve competitive advantage in
the online marketplace.

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 1. General Introduction of the Company and
OVP
Name of the business: Aesthetic Shoe
Mission: To fulfill the consumer needs by providing innovative, healthy and excellence
products
Vision: To be a benchmark in the market and example of others
Core Value:
 Honesty and Fair Dealing
 Customer Satisfaction
 Innovation
 Team Work
 Leadership
 Productivity
Product Type: We design wide variety of products for our target customers.
 For teenage male and young male customers, we have the following products slippers,
sneakers, sandals, driver, boat, monk strap, cap toe, loafers, oxford’s and dress boots
 For teenage and young female, we have Ballerina flats and heels, sneakers, sandals,
gladiators, loafer, oxford, wedges, pumps, clogs, mary janes, kitten hills and.
 For babies we have Ballet flats, sneakers, sandals patch slide sandals, cotton ballet
flats, mary jane shoes, school cadges, boots, danica shoes, t-strap shoes

Our shoes will be available in many colors like black, grey; navy blue also there will be
bright colors like pink, yellow, red etc.
Organizational condition:
 Ownership: Individual
 Liability of owners: Individually liable for business liabilities
 Costs’ of starting business: Filling fees for trade name and making website
 Continuity of business: Death dissolves the business
 Transferability of interest: Complete freedom to sell or transfer any part of business
 Capital requirements: Capital raised only by loan or increased contribution by
proprietor

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  Management control: Proprietor makes all decisions and can act immediately
 Distributions of profit and losses: Proprietor responsible and receive all profits and
losses

Channel to Reach Customer: we can reach to our customer through using the following
ways;
 Website: First of all we will open a website for our business. Here all the
information about our business and product will be provided; such as, business name,
product variety, price of product, available size of product, ways of order and
payment.
 Facebook: Facebook is free and easy to use. Nowadays most people use Facebook.
We can open a facebook page and easily attract our target customer. Customer can see
the product; get some information like price and quality of the product, order through
this page etc.
 Instagram: It is a visual social media channel. By opening an Instagram account we
can promote our business and attract customer by posting photos and videos of our
shoes.
 Local marketing: Through our visible store we can reach our customer who are
interested to buy product offline rather than online.

Business Model: For our online shoe business we will follow ‘E-shop’ online business
model. For our online business model we will take into consideration the following factors.
 Value proposition: First of all we have to identify our product. And our product is
different types of shoe.
 Market or audience: we will serve our customer through Business to consumer
(B2C) communications.
 Revenue models and cost base: Affiliate revenue model and Sponsorship site
selection revenue model will be followed.

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  Competitive environment: Our direct and indirect competitor are local branded shoe
company, online shoe brand, their business model, ways of attracting customer and
business strategy.
 Value chain and marketplace position: Our business provides different values to the
customer, suppliers and competitors. Our value proposition include:
a) Reduced price
b) Improved service
c) Speed of delivery and assistance
d) Access to large and available inventory that
presents options for the buyer
 Representation in the physical and virtual world: We will be available both in
physical and virtual world
 Organizational structure: Our shoe business is an individual or sole proprietorship
business.
 Management: this business will be managed according to sole proprietorship
business format.

Revenue Model: We will earn revenue by selling our shoes. Besides we can earn revenue by
giving ads of different company related to our business in our company’s website. For
example we can earn revenue by giving ad of RFL shoe racks and bkash. For RFL shoe rack
we will follow affiliate revenue model and for bkash we will follow sponsorship site selection
revenue model. An example spreadsheet of these two revenue model is as follows:

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 Ad unit or container type Measure Site

Pages served 100000

% inventory served 100%
Avg. click through (CTR %) 0.30%
Sponsorship of site selection Ad units served 1 1
Clicks – fixed 300

Revenue – fixed sponsorship 3000

Earning per 100 clicks (EPC) 1000
E-CPM- fixed 30
% inventory served 100%
Average Click through (CTR %) 0.50%
Affiliate revenue Ad units served per pages 1
Clicks – affiliated 500
Destination conversion rate 3%
Average order value 100
Commission % 10%
Revenue- affiliated 150
Earnings per 100 clicks (EPC) 30.0
E-CPM- affiliated 1.50

Table 1: Revenue Model

Online Value Proposition: We sell shoes through our online business. There are many other
online brands who also sells shoes through online. As a new business entity in online market
we can attract customer to purchase our product in the following ways or customers can be
interested to buy our product for the following reason:
 Content: A customer can easily find our product online using Facebook, Instagram,
by searching ‘Aesthetic shoes’ or through our website.

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 Customization: If our customer wants customized product, we will try to fulfil their
demand. We will try our best to reach the product to the customer as fast as we can.
  Convenience: Our customers will be able to browse our website from anywhere.
They can use both their mobile phone and desktop to browse our website. They can
order at anytime from anywhere in Bangladesh.
 Community: Customers can easily find us using social site and communicate with us.
They can communicate with us by giving message using Facebook, Instagram, Snap
Chat etc. and they can contact us through our hotline.
 Choice: Our website and other social site gives a wider choice of products to our
customers.
 Cost Reduction: Our product’s prices are reliable, customer can compare the
products price with other brands and we hope that they will find our shoes price is
relatively small while providing same quality shoes.

Figure 1: Online Value Proposition

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2. Marketplace Analysis & Study of E-Environment

Marketing segmentation: To know our customers better and the similar needs for our group
of customers we segmented them in following in the following ways:
 Geographic Segmentation: In Bangladesh, the weather is hot for nine months of the
year, there are rainy season for 4 to 5 months and cold weather is for two months. So
in summer youths look for cozy shoes and in rainy season they look for shoes that are
durable and save foot from rainwater and mud as they go out every day. Therefore, in
geographic segmentation we focus on weather of Bangladesh.
 Demographic Segmentation: For demographic segmentation, we focus on age,
income, generation, gender. Our main focus goes on age. We have focused on
following aged groups:
 Teenagers aged between 13-17 years
 Young students aged between 18-25 years
 Kids aged between 3-10 years

Our target generation is millennial or Gen Y as we are focusing on young aged customers.
We also have a focus on income because young students and teenagers are not earners. They
mainly depend on pocket money or on part time income. They would be motivated if they
find trendy products in average price. We also focus on gender-based choices. Because
choice and demand for shoes varies among on the basis of gender in Bangladesh. A 20-year-
old male university student goes for slippers, sandals, or sneakers on the other hand a female
goes for low heel pumps or ballerinas or for sneakers.

Market trends: Footwear market has diversified trends across different geographic regions.
The changes in disposable income, consumer sentiment, and ever changing trends are major
growth drivers for sales in this industry. No doubt, a massive rise in consumer confidence has
also contributed in helping the industry experience remarkable growth, but uneven performance
in these drivers has led to slightly constrained revenue growth for the Shoe Stores industry. .
Research shows around 50 million people in Bangladesh are young, aged between (10-24)
and their demands, choices for footwear are influenced by new designs, social personalities,
comfort, and new trend of healthy life style. In addition, young people between the ages of
10-24 are mainly students so they also look for shoes at reasonable price.

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Right now global trend in footwear market is the use of sneakers, loafers and slippers. As the
youths of Bangladesh are influenced by global trends, the use of sneakers and loafers are also
increasing in Bangladesh. So current market trend in Bangladesh among youths
 Use of sneakers, loafers and slippers by both male and female
 Among young girls’ ballerina shoes and loafers are also popular for daily usage
 classic pumps, wedges, kitten heels are popular for parties and programs among girls
 for boys they go for same sneakers or slippers and sometimes formal shoes for parties
 Trend for kids’ market has always been using comfortable shoes with simple design.

Competitors Analysis: There are already many established shoe companies in the shoe
market of Bangladesh like Bata, apex, Bay emporium etc., and other local shoe shops
fulfilling demands for shoe of specific market.

Markte
Share

22% Bata Bangladesh

Apex
Bay Emphorium
others
6%
2%

71%

Figure 2: Market Share

1. Bata Bangladesh: Here from the pie chart we can see Bata is the market leader as it
has captured 22% of market share alone. It has a huge number of outlets all over the
country, which shows the company is more customer centric. Bata wants to make the
shopping most convenient in terms of distribution. Bata has 350 retail outlets in
Bangladesh there it has huge influence in price changing, new products and
promotions.
 15

2. Apex: Apex is the second largest shoe company with about 6 % market share in the
local retail footwear market. The company serves the market with 120 retail outlets
and 50 agents throughout the country also; they have planned to introduce around 30
outlets each year.
3. Bay Emporium and others: Bay emporium has a market share of 2%. It started in
2006 and since then it is growing fast and it focuses on average earning customers.
Other all retail shoe shops like lotto Bangladesh, shoppers world etc. has combined
market share of 72%

Niche Market: Niche market is a market where we focus on a specific product, which is a
subset of the entire shoe market. For our footwear company the niche market is collection of
formal shoes for young adults. The customers for formal shoes among our target customers
are small and the demand for it is low. Normally young people wear formal shoes when they
go for presentation in class or competitions and when they go for corporate visit for
information collection or networking.
 16

SWOT Analysis of our shoe business

As new entrants it is must for us to know our strengths and weakness also the opportunities in
the footwear industry and threats.

Strengths Weakness
 Good knowledge about current  Lack of public trust
market and demand of target  Lack of fund to start broadly
customers
 Trendy shoe line
 Quality with elegant design
 Convenience to use the website
 Potential target market
Opportunities Threats
 Growing industry  Established competitors
 Young people like to buy from online  Attractive market for new entrants
 More competition results in more  consumers misconception where they
campaign of products think being average priced means the
 Buying power of our target market is quality is not maintained
increasing

Table 2: SWOT
Distribution channel: We are following disintermediation process for distributing shoes. So
the shoes will be delivered to the consumer from the manufacturing place. It is able to
remove the sales and infrastructure cost of selling through the channel. The channel will seem
to the following model:-

Producer Consumer

Figure 3: Distribution Channel

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SLEPT Analysis:
Here we did slept analysis to understand the effect of the macro environment factors on our e-
business as it helps to scan the environment and makes aware about the competitors.

Social
Social
Factors
Factors

Technological
Technological
Economic
Economic
Factors
Factors Factors
Factors

External
External
Environment
Environment

Political
Political Legal
Legal
Factors
Factors Factors
Factors

Figure 4: SLEPT
1. Social factors
Social factors actually govern the demand for internet services and propensity to purchase
online because these factors relate to tastes and lifestyles of people. As our target customers
are teenager and young students these factors are most important for us. The fashion choice
of teenagers and young students are very much up to date and they like trendy things and
their choice is very specific. Trend changes time to time so our business needs to be updated
with trends constantly. They are the one who uses internet more so online presence of our
business would help to grab their attention and boost both offline and buying
2. Economic factors
Market for shoe business is constantly on growth and this is a positive economic factor. Other
factors like inflation rate, interest rate, rate of wage is quite stable now in Bangladesh as
result of stable government and this is positive situation for going to e-business

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3. Political factors
Political condition was a matter of concern for our country Bangladesh because of unstable
government but recently the government is stable and is more concerned with the
development of business sector so in that is a positive situation.
4. Legal factors
Bangladeshi ICT laws are mostly business friendly but it prohibits any kind of content
creation that causes the law and order situation to deteriorate, besmirches the image of the
state or any individual, or hurts religious sentiments. (Section 57 of the ICT (amendment)
act, 2013)
5. Technological factors
Today’s world is technologically advanced and it constantly changes and upgrades. In
production of shoes raw materials are required and through placing orders electronically it
can be found easily. Technological environment of Bangladesh is gradually facing
improvements and thus makes this factor supportive to start or run e-business

Competitive threats:
Michael Porter’s model of five main competitive forces provides a valid framework for
reviewing threats arriving in e-business era. On the context of e-business, threats have been
divided to competitive threats, sell-side and buy-side threats.

1. Competitive threats: These threats are related with the existing competitors and with
possibility of upcoming competitors.
Threat of new e-commerce entrants
The barriers of entry are low in this sector and since it is a sector with growth, it’s lucrative
for many new entrants. So our business is affected mostly by this sector.
Threat of new digital products
This threat can occur for many existing and new companies with products like magazine,
newspaper etc. But our shoe business is not affected by this threat.
Threat of new business model
This threat is relevant with us as there are already many established shoe companies like bata,
bay, apex, lotto Bangladesh etc. In the market and constantly they are doing researches to

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come up with better services, better and innovative model. With the use of internet our target
market can easily compare price, service, product, design etc. This things increase the
competitiveness more.
2. Sell-side threats: These are the threats related with the marketing and selling of products.
Customer power and knowledge
In today’s world customer is the king and the use of internet keeps them updated with current
trends, fashion, lifestyles and also they get easily idea about price, quality and design about a
product. Customers thus have knowledge about products and services offered by companies
and they use internet to evaluate products.
Sell side threats
For our business we follow the chain of manufacturer to retailer concept and currently there
is not any distributor so this part is not a matter of tension currently.
3. Buy-side threats: These are the threats related with suppliers and intermediaries.
Power of suppliers
Suppliers of raw materials in production of shoe are convenient in Bangladesh and materials
can be collected from them at fair price.

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 3. E-Business Strategy
Strategic objectives and definition:
At this step, we will cover how to develop different types of future course of actions in order
to communicate and achieve our organizations mission, vision and objectives. We have
selected shoe business as electronic business. Here, we will develop different types of
strategy in order to achieve our goals that is selling shoes as a short-term objective and
ensuring growth through achieving long term goals.
Bricks and Clicks as e-channel strategy: We will conduct our shoe business both online
and offline. In order to conduct our business, we will follow bricks and clicks e channel
strategy. If we follow this strategy, we can be able to conduct our shoe business both clicks
that is online and bricks that is offline. Some people use internet to conduct product research
but intends to buy offline. Some others use internet to conduct product research and also
intends to buy online. Keeping this consumers preference, we will use bricks and clicks e
channel strategy in order to provide best services to our customers.
Market penetration and development strategy: We will use market penetration and
market development strategy. At first, we will use market penetration strategy so that we can
sell our existing products more than before in the existing market through using digital
channel. We have different shoe products for different market segments. We will try to add
more value to our existing products through using information about what customers want in
the products. So, we will try to sell our existing products in our existing market. Later we will
use market development strategy when demand for our products will increase. In this case,
we will develop new market segment and we will sell our existing products in the new
market.
Target marketing strategy: As we have new shoe business and we have no brand right
now; we have those customers who are not actually brand loyal. So, in order to attract them
and also to retain them, we will provide them available information about our products, for
example how to use, provides incentives, conduct promotional campaign through using viral
marketing and provide good level of product quality.

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Positioning and differentiation strategy: In order to position in the online market place we
will provide good quality of products with variety of design according to the customers
preference at prices lower than others. We will provide valuable information about products
so that customers can conduct product research before purchase decision. And also, to ensure
differentiation of our products, we will use specific name of our products that is aesthetic
shoe. It will help us to differentiate our products from those of others in the market place.
Marketplace channel strategy: We will use disintermediation strategy in order to provide
our services to our consumers. We will not use any whole seller or retailers to deliver our
products to our respective customers. We will use this strategy because it will reduce
different cost. We will be able to deliver our products at relatively lower prices than others.
Pull supply chain model strategy: We will produce our products on the basis of customer’s
preferences. So, we will conduct proper market research about what customers want. As we
have divided our customers in different segments we will focus on different segments. For
each segment we will produce and deliver unique products according to the need of those
particular segments and also use different marketing strategy for different segment.

Strategy Implementation:

In our business we found out some success factors. These are given in the following:-

 Content: We have effective presentation of our products.

 Convenience: Anyone of any age can use our website.
 Interaction: We always focus to build good relationship with our customers.
 Price Sensitivity: The sensitivity of a product price competition on the internet.
 Brand Image: We have the ability to build up a credible brand for our e-commerce
site.
 Commitment: A strong motivation for using the internet.
 Process Improvement: We always focus on the business development.

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 4. Conclusion
4.1: Conclusion: An e-business plan is an important tool for managing and growing online
business. It is the blueprint of the business. A well-designed plan lays out a vision of growth
and the steps needed to get there. A business plan is also an essential communications tool for
attracting financing for your business as well as managers and staff as your business grows.
In this report, there has been focused on e-business plan of shoe business. The business will
carry only top of the line quality in shoes. For teenage male and young male customers, the
business have the following products Slippers, Sneakers, Sandals, Driver, Boat, Monk Strap,
Cap toe, loafers, Oxford’s and dress boots. There has been also provided the distribution
channel and how to reach to the customers. It can be concluded that the e-business plan will
work effectively and efficiently for starting the business.

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 References
1. CHAFFEY, DAVE (2016) E-Business & E-Commerce Management [Strategy,
Implementation and Practice]. 5th Ed. Noida: Pearson India Education Services
Private Limited
2. COELHO, BERBERDO (2006) The footwear factory’s assembly sector 3 P. 4-5
3. 1000+ Business Plans & Small Business ideas for Beginners (2019) A Sample Online
Shoe Store Business Plan Template [Online] Available from:
https://www.profitableventure.com/online-shoe-store-business plan/?
fbclid=IwAR08SgKlg7ByHbd2y8_aKgdx7ljjMBZWF-
fkTO4e7GgUGh4932PX_V8Tg2o [Accessed: 1st May, 2019]

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