Catalogue

Business Plan
Design and Implementation of JMGO Projectors’
Foreign Online Shopping Website

Catalogue
1. Executive Summary ................................................................................................................................1

2. Company Background ............................................................................................................................3

2.1. Company history ..........................................................................................................................3

2.2. Mission and future strategy ..........................................................................................................3

3. Product Description ................................................................................................................................4

3.1. Main features ................................................................................................................................4

3.2. Unique characteristics ..................................................................................................................5

3.3. Business model.............................................................................................................................5

4. Market Analysis ......................................................................................................................................7

4.1. Porter’s Five Forces Model ..........................................................................................................7

4.2. SWOT analysis .............................................................................................................................7

4.3. Market objective...........................................................................................................................8

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 Catalogue

5. Sales and Promotion ...............................................................................................................................9

5.1. Attraction to new customers.........................................................................................................9

5.2. Interaction with existing customers .............................................................................................9

5.3. Enrichment of brand contents ....................................................................................................10

6. Website Design and Implementation Plan ............................................................................................ 11

6.1. Website design............................................................................................................................ 11

6.2. Implementation plan...................................................................................................................12

7. Financial Projection ..............................................................................................................................13

7.1. Revenue model ...........................................................................................................................13

7.2. Financial justification .................................................................................................................13

8. Business Risks ......................................................................................................................................15

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 1. Executive Summary

1. Executive Summary
Company background and mission

JMGO is a high-tech company of smart projection equipment and established in 2011 in Shenzhen. And
now, it has become the largest projector company with the largest number of smart projector users in the
world. In future, JMGO intends to broaden its foreign market, and current foreign channels are all through
the third agencies, so this project is aimed to develop JMGO’s own overseas online shopping website.

The market

Although there are many other projector competitors with similar online shopping websites, JMGO’s
products have its unique strengths including good quality and price which are the core competition
advantages. Our objective of this project is to focus on improving 3 aspects, brand image, channel control
and customer service. All those related functions are what we manage to develop with the website.

Our Product

Our product is a new website for JMGO to sell projectors or other products online in overseas market. In
addition to the general viewing, searching and transaction functions of e-commerce websites, our website
pay more attention to customer experience. We have established a sound membership system where
customers can get discounts by attending the events. Compared to competitive products, we have
particularly set up a blog section to provide customers with a better service experience. In this section, we
have both manual and intelligent pre-sales and after-sales services to help customers solve problems. The
company will invite some famous people to post blogs about product evaluation and usage experience here,
and customers can also share their feelings here.

Promotion and implementation plan

We divide the entire sales and promotion plan into three aspects: attraction to new customers, interaction
with existing customers and enrichment of brand contents. In the beginning, we should focus on how to do
more propaganda to attract website traffic and let more foreign customers know about our products. After
having a certain customer base, we should interact with them and launch more promotions to encourage
them to promote and purchase our products again. In addition, we should focus on the brand itself and
enrich the product diversity and brand culture. In total, we estimate that we need at least 8 weeks to put the
website into operation.

Business and revenue model

Our project’s business model is based on B2C model, we mainly play the role of an e-tailor and a provider
of community to add the customers’ retention. Then we analysis the business canvas model to specify the
keys of our project.

The revenue model of our online website is also vital as we need to make sure the income balance the cost.
Our incomes can be divided into four parts, from sales of products, installment revenue to subscription fee
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 1. Executive Summary

and advertising charges.

Finances and risks

We estimate the total amount of funds the business must invest to implement the project, which can be
divided into website construction cost and operation and maintenance costs. Through our analysis, the total
cost is about $190,700 in the first year. We also analyze the income brought by the e-commerce website.
There are risks from technical, financial and legal aspects we should pay attention to and analyze the
corresponding countermeasures.

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 2. Company Background

2. Company Background
JMGO was established in 2011, specializing in R&D and production of smart projectors and laser TV. With
superior product features and outstanding design, JMGO becomes No.1 in smart home theater industry in
China, and has become a trustworthy supplier of smart theater projectors in the world. JMGO has sold out
more than 300,000 units in 2016, and received 860 million RMB investments from investors globally.

Located in Shenzhen City, the Silicon Valley of China, JMGO is expanding the overseas market and strive
to provide cutting-edge and revolutionary technology projectors to our customers. Enthusiasm in R&D and
technology, JMGO is more than a smart projector manufacturer, JMGO inspires people to be more creative
and spend more time with families.

2.1. Company history

JMGO was founded in 2011, and launched A1 with Linux. In December, JMGO got TI DLP Open System
permission.

In June 2012, JMGO launched A2 projector with Windows system. In December 2013, JMGO launched
A3 with Android system, which targeted home entertainment.

In May 2015, JMGO received 30 million USD dollars by Green Pine Capital Partners, Timesbole and
Skychee Ventures CNR. In December, JMGO launched portable projector P1. In the same year, JMGO
started cooperation with Chinese video contents providers iQIYI and PPS.

In March 2016, JMGO received 90 million USD dollars C-Round investment by Golden Brick Capital,
Qianhai Zhongjin Group, and became the leading company in smart projector industry. In April, JMGO
launched SI Pro Laser TV, 1080P X1, and P2. With laser TV, JMGO started the revolution for bigger screen
TV.

On 11th November 2017 (Alibaba Top Consumer Festival), the sales quota has reached 23 million USD
dollars, which ranked first in the industry.

2.2. Mission and future strategy

JMGO is focusing on building the industry's first intelligent home theater ecosystem integrating "terminal
+ content + platform + software". In previous years, JMGO pay more attention to its domestic market and
has allocated few resources to overseas. But in future, JMGO intends to broaden its overseas market, and
upgrading its current overseas website which is simpler compared with its rivals’ is the primary. Up to now,
JMGO's footprints has covered five continents, including the United States, Russia, Canada, UK, France,
Germany, UAE, Japan, Korea, India, Singapore, Australia, Egypt, South Africa and many other countries.

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 3. Product Description

3. Product Description
3.1. Main features
Now JMGO intends to broaden its overseas market, so we analyze and design a new website for JMGO’s
foreign market.

(1) Registration and management functions of customers

A database involves useful customers’ information after customers’ registration will be developed in this
function. Before purchasing, customers should log in JMGO’s website, which helps collecting information,
and JMGO could analyze the information to distribute its products, for instance, it can find where is the
best place to run more physical stores if most customers come from this place.

(2) Sound membership system

We have a membership system for all registered customers. Customers can gain experience by purchasing
products or interacting in the blog section, in order to upgrade the membership level. The higher
membership level a customer has, the more privileges and coupons he enjoys. Customers can also purchase
our SVIP directly, which can provide exclusive discounts and audio-visual contents.

(3) Online shopping function in official website

This function includes search and view products, manage order, comment and ask for service. It helps
JMGO to sell its products directly without middlemen to improve profits. Customers can add it to shopping
cart and make an order immediately after they browse the information page of a product, and many buyers
prefer convenience and efficiency when they go shopping online. Besides, the product details page will also
provide the purchase links from other third-party e-commerce platform.

(4) Partner’s advertising areas

We have partners in hardware and content fields, so we can give them some area on the website for
advertising, in order to strengthen our partnership. Also, we may get some advertising fees from it.

(5) Function to post promotion activities

There will be a new banner field in the homepage where JMGO could release these activities, and it can
send notification to customers after collecting users’ information.

(6) Online customer service and after-sales service

Customers may need to know more information before purchasing our products, so we need to provide
smart service or staff service for customers to solve their problems. After the purchasing, we need to follow
the user's experience from time to time and provide a satisfactory after-sales solution.

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 3. Product Description

3.2. Unique characteristics

(1) Blog section for customers to share ideas

In blog section, customers can ask for service, such as questions about products or after-sale service, and
manager can provide comment to solve users’ problems. This function benefits loyalty as well.

(2) Share blogs to other websites

The number of clicks, from an important website’s link, is a factor in the search engine algorithm. And,
with this function, JMGO invites famous technology reviewers or media to post and share blogs of JMGO
website to other websites, to attract more traffic. Of course, this is a good method to advertise products.

(3) Member credits can be exchanged for gifts

Members can earn credits by purchasing products or interacting in the blog section. We have a Credits
Exchanging Mall where members can exchange for coupons or services, and purchase in discount. In this
way, we can enrich our blog content and motivate members to participate more in our activities.

(4) Complete daily tasks to earn credits

We have daily tasks for members, such as posting a product review or a blog. Members can get credits if
they complete the task.

(5) Rich online activities

We will prepare a rich gift for newly registered members. Also, if a member invites a friend to register as a
member and purchase any product, both of them will receive a generous reward.

3.3. Business model

The JMGO projectors’ online shopping website is a B2C business model, and acting as the e-tailor and the
community provider. The website sells the JMGO’s own products, and provide an online environment
where people with similar interests can transact, share content, and communicate. The business model
canvas is shown in Table 4.1.

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 3. Product Description

Table 4.1 Business model canvas

Key Partners Key Activities Value Customer Customer
Suppliers, Develop and maintain Propositions Relationships Segments
Manufacturer, the website, Price, Blogs, Global customers
Distributors, Customer service, Convenience Membership,
Retailers Sales promotion After sales
Key Resources Channels
Human, website
Intellectual Property,
Financial
Cost Structure Revenue Streams
Value-driven, Sales
Economies of scale Subscription

(1) Key Partners: JMGO is a company of smart projector designing and producing, its partners from supply
chain to distribution and retail who are close cooperated with JMGO’s production are important.
(2) Key activities: This project is aimed to design and implement an online website of JMGO’s foreign
market, so developing and maintaining the website is the key work. Since the website being operated,
customer service and sales promotion activities are essential work to promote market.
(3) Key resources: JMGO is a hi-tech company which emphasizes creation and innovation, so employees
with hi-tech knowledge and intellectual property are its key resources. In foreign market, JMGO is at
the early stage and financial resource is crucial to support the development of online shopping website,
such as promotions and advertising.
(4) Value propositions: JMGO’s online shopping website can provide high quality production with lower
price; online customer service enables customer to purchase, enquiry, share views or require other
services more convenient. Those are the value propositions of JMGO’s website.
(5) Customer relationships: The blog function of the website allows customers to share their experience or
views with JMGO products, and customers can lookup others’ blogs to choose the best projector. The
membership allows customers to acquire discount coupons. After sales service enables customers to
enjoy more excellent shopping experience. All these helps our website to maintain our customer
relationship.
(6) Channels: Online shopping website.
(7) Customer segments: JMGO’s website enable customers over the world to purchase its products.
(8) Cost structure: The main products of JMGO is physical merchandise, but the smart projector involves
up-to-date technology and advanced functions which are diverse from traditional projector, and the
online website provide various convenient customer services with products, so the price is based on
products’ value, the cost structure is value-driven. There are few types of JMGO’s products, only smart
projectors, so the economies of scale are the cost-structure.
(9) Revenue streams: The products sales and membership subscriptions are the main revenue resources.

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 4. Market Analysis

4. Market Analysis
4.1. Porter’s Five Forces Model
(1) Threat of New Entrants is high

Digital convergence is tearing down the burrier of setting an online electronic website. Since the website
developing cost is low, many projector companies may start an online website to operate their business.

(2) Industry Rivalry is high

a. Online projector websites show intense competition as there is no single leader in this industry.

b. Most well-known companies have their own oversea website and are actively innovating with new
functions to provide a more attractive platform.

(3) Buyers Bargaining Power is high

Buyers have various options to purchase a smart projector online, from C2C to B2C platforms, they can
compare products and price easily. The cost of click away is really easy and that raised the power of buyers
bargaining power.

(4) Bargaining Power of Suppliers is low

There are a lot of e-commerce websites in the market. Like Amazon, which is familiar to consumers, not
only sells projectors but also sells other items. Almost every customer would like to choose the well-known
e-commerce platform which is also familiar to them when they want to buy something. In addition, the e-
commerce platforms like Amazon also offer projectors with multiple brands and prices, even many brands
are better known than ours. Therefore, buyers have more choices.

(5) Threat of Substitute Products or Services is low

One of the unique functions on our website is the blog section which can provide a place for customers to
share ideas and the blog can be shared to other websites. Although there is a website called Red in China
has the similar function, but this kind of e-commerce website in that operational form is still a minority
overseas. That means there are not so much substitute products in the market, we still have our strengths.

4.2. SWOT analysis

(1) Strengths

a. Low price. JMGO’s products are normally the 70% of others.

b. High market share in China. JMGO has the highest market share than other brands in domestic market
in the smart projector field within few years. So, it has been developing very fast. And that means,
JMGO has sufficient experiences in smart projector producing and marketing.

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 4. Market Analysis

(2) Weaknesses

a. Lack of brand influence in overseas market. In previous years, JMGO didn’t allocate many resources
to overseas, so few foreign users know its products.
b. Single selling channel. In overseas, JMGO sells products only through the third agencies. With
middlemen, JMGO can’t get buyers’ information and can’t know its customers, so JMGO can’t analyze
its market immediately, it’s not beneficial to making products or market strategy. And with internals,
the profits also will be affected.

(3) Opportunities

The fast increase of smart projector market. In Amazon, smart projector shows a notably increase in sales
in 2018, up nearly 100% over the same period of last year. So, there will be a big market for JMGO to
develop.

(4) Threats

Intense competition abroad. Now, more and more giants in current project market, such as Epson, BenQ
and Sony, pay attention to smart projector. And these 3 brands, hold a share nearly 40% in traditional
projector market, they are more acceptable to customers.

4.3. Market objective

Through the analysis of the market, we have come up with some development suggestions.

(1) Brand. JMGO needs get as more as possible clicks and traffic in its website, in order to be known by
more people.
(2) Channel. JMGO needs its own e-commerce website to sell products immediately. That can help to get
customers’ information and reduce cost of internals. And it’s more convenient for customer service.
(3) Customers. JMGO could set up customers’ database, and make membership policy to attract users and
develop customers’ loyalty.

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 5. Sales and Promotion

5. Sales and Promotion

We divide the entire sales and promotion plan into three aspects: attraction to new customers, interaction
with existing customers and enrichment of brand contents. In the beginning, we should focus on how to do
more propaganda to attract website traffic and let more foreign customers know about our products. After
having a certain customer base, we should interact with them and launch more promotions to encourage
them to promote and purchase our products again. In addition, we should focus on the brand itself and
enrich the product diversity and brand culture.

5.1. Attraction to new customers

(1) Do search engine optimization. By understanding the various types of search engine (such as Google
and Yahoo) ranking technology for search results, refine the keywords of the website and optimize the
relevant pages to improve the search engine ranking, thereby increasing the number of website visits,
and ultimately improving the sales or promotion of the website.
(2) Do normal thing-advertising. Not only the traditional paper advertising, but also electronic one is
needed. The advertisement is about our products and the way to purchase-on our online shopping
website. So, the website link needs to be displayed in all of these advertisements.
(3) Attracting website traffic. Choose to post a specific page or section that requires traffic (such as a home
page, a specific product category page, an entire blog, or a contact page) to the social media, and
measure the increase in traffic. Our plan is to increase the traffic volume from Pinterest to the “New
Products” page by 50% at the end of the year. At the same time, launch the “Holiday Warm-up”
promotion on social media such as Facebook, Pinterest and Instagram, which increase the sales of
projectors in the next quarter by 12%.
(4) Raise the popularity of brand. Track the number of fans, comments, and the number of times JMGO is
being mentioned on the social media. If each item increases within a certain period of time, then the
brand popularity has improved. Our plan is to increase the audience coverage by 40% on Facebook in
the next quarter.
(5) We can invite some big names in this industry to help us propagate our products and online shopping
website by posting blog posts about their feelings after using our projectors. Moreover, we can
cooperate with two Internet celebrities that will be free to promote and a new paid signing celebrity.
They will help to promote our new projector series in the upcoming months.

5.2. Interaction with existing customers

(1) Excavate the consumer representatives who meet the targeted customer characteristic from the offline
store and invite them to become the product experience officers of the website.
(2) Provide free trials for these experiencers and collect their feedback and comments.
(3) Constantly revise and improve the website to enhance the user interaction experience according to the
results of the iterative testing.
(4) Invite these experience officers to post their experience on social media as publicity in early stage.
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 5. Sales and Promotion

(5) Everyone would get coupons when he or she register as a first-time user on our website. Old customers
can get some specified coupons regularly. Websites will also launch promotional activities frequently
to attract old and new customers.

5.3. Enrichment of brand contents

(1) Increase the R&D funds, research new projection technology, launch serialized and customized
products for e-commerce channels, and open up the market.
(2) Increase the brand popularity by organizing some brand-specific events regularly and irregularly both
online and offline.
(3) In addition to working with content providers, we also need to cooperate with the big-name
manufacturers to launch joint-name products, which can help us increase our brand popularity.

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 6. Website Design and Implementation Plan

6. Website Design and Implementation Plan

6.1. Website design
Figure 6.1 is the design of the home page of the website, and Figure 6.2 is the design of the product details
page. On the home page, we will have banners to scroll through our latest activities. The photos and links
of our star products are put below the banners. Besides, we will also set up specified areas for advertisement
from other companies. On the product details page, we will display all the fine photos and specification
about the product, and set a “buy now” button at the top of the page.

Figure 6.1 The home page Figure 6.2 The product details page
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 6. Website Design and Implementation Plan

6.2. Implementation plan

Firstly, we need 1 week to research the system requirements in JMGO company. Secondly, we need 5 weeks
to develop the whole system and environment. Thirdly, we need 1 week to do the internal testing in software
company. Finally, we need 1 week to do the acceptation test in JMGO company. So, in total, we need at
least 8 weeks to put the website into operation.

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 7. Financial Projection

7. Financial Projection
7.1. Revenue model
Our revenue model is shown in Table 7.1.

Table 7.1 Revenue Model

Revenue Model Description
Selling the products of JMGO or allied
Sales of products manufacturers, which is the main source of
our profit.
If the customer chooses to pay on
Installment revenue installments, we can charge a certain amount
of installment interest.
Customers can become VIP members by
Subscription fee paying an annual fee and enjoy more
exclusive products and discounts.
Selling parts of the website pages to other
companies for advertising. They can be
Advertising charged according to the specifications of the
ads, the number of clicks or the effective
turnover.
The blogs shared on other websites are
Intangible revenue conducive to enhance our brand’s awareness,
which can bring us more customers.

7.2. Financial justification

Financial justification is the process by which a business determines whether or not a specific investment
is a wise financial decision. It determines if the investment is the best use of the business's funds and how
fast the investment will pay for itself. One way to analyze the financial justification is to estimate the
investment's total capital cost, which is the total amount of funds the business must invest to implement the
project.

The main products of e-commerce are information products, which is different from traditional industries.
Through our analysis, the total cost can be divided into website construction cost and operation and
maintenance costs.

Website construction cost includes equipment cost, communication cost, information cost, software
development cost, and other costs.
(1) Equipment cost includes the various equipment costs necessary to build an e-commerce website. The
equipment cost here refers to the investment of a large number of main equipment during the
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 7. Financial Projection

construction phase.
(2) Communication cost is the fee paid for the transmission of information (network equipment rental fee
or network equipment occupancy fee).
(3) Information cost is the fee for the information provided by the information provider of the e-commerce
websites to the users after processing, editing and collating (or building the database).
(4) Software development cost, which is more difficult to determine than hardware and other costs that
can be estimated.
(5) Other costs. Including workplace construction fees, related political and technical consulting fees,
website domain registration fees, personnel recruitment and training fees.

Operation and maintenance costs include the costs of all applications (configuration, learning and use),
information acquisition, online payment, information security, logistics and distribution, after-sales service,
and the cost of goods in the production and distribution processes.
(1) Technical cost. Including learning cost, maintenance cost, hardware and software costs in the operation
and maintenance phases.
(2) Safety cost. In any case, transaction security is always the primary concern. In a virtual environment,
it is necessary to ensure the fairness and security of online transactions, the authenticity of the identity
of the two parties, the integrity of the information transmitted and the non-repudiation of the transaction.
(3) Delivery cost. E-commerce delivery should try to establish a channel between manufacturers and
consumers to reduce the delivery costs.
(4) Risk cost. Such as the loss of talents, viruses, hackers, the rapid development of new technologies and
the replacement of hardware and software.
(5) Legal cost. Inevitably, the development of e-commerce is bound to face a large number of legal issues.

We estimate that the development cost of the website construction is about $190,700 in the first year,
including software fee of $120,000, server fee of $26,000 a year, payment channel fee of $7500, market
source fee of $30,000 a year, and security fee of $7200 a year. For the operation and maintenance stage, we
also estimated other expenses for one year, including employee salary of $350,000, office building rent of
$90,000, office supplies of $50,000 and so on. However, the sales profit brought by the e-commerce
platform is also very impressive, because that the low price of online sales can attract more people and
increase the website traffic, which will bring new business to JMGO sales. Also, the recognition and support
of the JMGO brand by the majority of users. According to the data from Taobao, after the release of the
JMGO P1, a total of 8235 units were sold in two days, with total sales of 21.38 million yuan. Besides,
during the Double 11 Sales Promotion in this year, the sales of JMGO has exceeded 100 million yuan in
one hour, which ranked first in the industry. In this way, we can predict that if the overseas platform is
operated with proper promotion, we can also get good sales, which can fully support the development and
operation and maintenance costs. In addition, company can manage the inventory more effectively and
reduce its cost, giving products more trading opportunities.

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 8. Business Risks

8. Business Risks
Running an ecommerce store might be much simpler than opening a brick-and-mortar store. However, it
also comes with a whole new set of risks we might not have thought about.

(1) Online Security. There is a whole range of security threats out there to beware of, including malware,
phishing attacks, hacking and spam mail. To defend against these threats, make sure that you update
your platform’s operating system regularly, and use a strong SSL (Secure Sockets Layer).
(2) System Reliability. The Internet service provider (ISP) server could crash, our online payment system
could show errors and the ecommerce plugin could have bugs. Except keeping all operating systems
and APIs updated, these are just some things that may happen outside of our control.
(3) Privacy Issues. Customers’ personal data could be compromised and used for spamming, identity theft
and unsolicited marketing. In addition to the online security measures previously mentioned, make sure
to require customers to use strong passwords.
(4) Customer Disputes. A customer might not have received their order, their credit card was charged twice,
or the product their received didn’t fit the online description. Whether the customer is right or not, it’s
important to always have great customer service and to rectify all possible mistakes that were made.
(5) Credit Card Fraud. Someone could use a stolen credit card to make an online purchase, or a hacker
could use stolen credit data from other customers in your system. No matter how good our online
security measures are, always watch out for any suspicious transactions.
(6) Intellectual Property Issues. Our website images, product descriptions, logos, videos and music could
be copied by others, or violate someone else’s intellectual property.
(7) SEO. Google or other platforms could do a complete makeover of their algorithm at any time, and
make our website traffic drop significantly overnight.
(8) Taxation. We might not be including the appropriate sales tax in our sales, or we are not paying fair
shipping or import taxes depending on our shipping destination.
(9) Return of Goods and Warranty. Common headaches when dealing with product returns: Increase in
supply chain costs and not being able to resell the items at their original price.
(10) Warehousing and Logistics Issues. We could run out of stocks while orders are coming in, a product
shipment might be delayed, or a parcel could be delivered to the wrong recipient.

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