All Toys E Business Plan Marketing Essay

Objective: All Toys’ vision is to be the World’s Greatest Kids’ Brand destination on the internet, not only offering parents and families a broad selection of products but to also create a magical playtime memory along with everyday essentials, being able to provide the resources necessary to keep their kids safe and happy.

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The aim of this e-business plan is to help our business deal with the complex problems that we may face as we develop a response to the e-business challenge.

Value Proposition

All Toys is a new Web-based company that sells toys over the Internet. All Toys doesn’t have toy stores, salespeople, or even a delivery system. It takes orders over the Web and then uses an established shipping company to ship products to its customers.

Benefits

All Toys Inc. is a leading online retailer of children’s toys and products. Even though it emphasis is toys, its aims to sell parents a wide selection of products that their kids might want or need. Their entire product lines consist of more than 50,000 stock products such as children’s books, music, as well as toys.

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Its extensive range of toy products consists of mass-market items such as dolls and Legos, as well as other products to specialize in different taste. Altogether, All Toys carries over 500 brands which are sold exclusively on the Internet.

Its web site catalogs consist of a range of products, and customers can use the site’s advanced search capabilities to find items by a variety of strategies. For instance, consumers can search All Toys for toys of a specific shape, color or brand. On a regular basis the site will be updated with a list of suggestions of Bestsellers, Favorites and most popular. Moreover, All Toys website allows shoppers to sign up and register in which they will receive a birthday reminder service. The company notifies shoppers by e-mail in advance of a child’s birthday, and appends a list of gifts appropriate for that age.

The site also provides a Wish List service. Children or their parents can use it to e-mail friends and family members lists of the gifts they most hope for. The site also allows children to play games and other fun activities, while parents search for tips, advice and other product ideas

The benefits of a new company like All toys are that they:

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Sell products to consumers at the lowest price possible

It’s a specialty online toy store – Niche items and markets

It hires architects and developers acquainted with the latest software techniques. The developers feel comfortable with objects, components, and distributed systems design. They use Java latest application servers to quickly build a powerful, scalable Internet commerce application, and they design their applications for growth and change.

Costs and Value

As a leading online retailer, All Toys must be able to deliver whatever is best for its customers and its prospective customers. This includes providing excellent customer service, being able to deliver its products in the fastest time and allowing customers to choose and compare the prices amongst the vast selection of products that All Toys offer.

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All Toys as an E-business will have a competitive advantage amongst other toy companies, as the following process adds value to its business operations:

Cost-effective communication and marketing strategy – Because your business environment becomes a focal point of your communication, e-business gives you a vital web presence (24/7 web service)

Reaching new markets across the globe – The internet allow businesses to target consumers from all over the world and customers can access resources from across the globe

Minimize marketing costs – online advertising is not often less expensive than traditional advertising.

Ordering Process – Implementing an online ordering system allows you to eliminate the cost of paper work and communication costs such as telephone lines and standard calls. It also offers the possibility of integrating your sales order system with order fulfillment and delivery so customers can be up to speed on the progress of their orders at all times.

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Potential market

Competition

The explosion of the internet age has forced e-businesses to compete with the long standing structure of traditional businesses (William, 2006). Although e-business offers endless opportunities for both businesses and consumers. The one main factor that differ e-business from traditional businesses is the technology that underpins the business itself. E-business is built electronically on a network, therefore without a network it’s completely impossible for an e-business to survive.

Local

Local businesses that compete for the same pool of local customers can be quite threatening to online businesses such as All Toys. Unlike traditional business who can gain trust from its prospective customers through a straight, personal contact, the web eliminates the customers’ privileges to experience such personal contact with both the products and organization they want to buy the products from. In traditional business, customers come to a store and have personal interaction with the organization through its sales person and then, possibly, have personal contact with the product. These types of experience somehow develop trust towards the organization and are very important for certain types of product.

For example, Customers who buys toy products at their local toy store will have a better impression of the store through the interaction and communication they have with the salesperson. As a result they gain a better understanding of the store itself and the people within it. However, through an e-business store, customers are dealing with a web interface that shows nothing else but a website within a screen. Thereby, it is more difficult to determine the reliability and assurance of the website. Also, when a product is faulty, with a traditional business, customers are able to exchange the product immediately during business hours. However, it is much more difficult to do this through the web, due to procedures and other measures that needs to be done. This could take up to several days or weeks after the complaint.

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Nevertheless, All Toys has an advantage in that they target to a specific niche or segment of the market, which in this case are children and their parents. Traditional businesses have a disadvantage against e-businesses in that they are forced to choose a location in which they believe to attract their customer base; however it is much more difficult given the degree of adaptability in which a physical store has. For instance, when you have a physical store, there is not a lot of room for error. You can only customize your store, marketing, and product to a small extent. With an e-business, you can do massive customization, and change how and what you market, depending on your business performance (William, 2006).

Moreover, the most significant difference is that e-businesses cost very little upfront when compared to traditional businesses. Starting a business on the Internet does not have the burden of a physical storefront and any expenses that accompany it. The vast majority of e-businesses are much easier to use for the customer, most sales and purchases can be done from the comfort of home.

Global

As competition increase in the global market, customers have a wide range of products to choose from and compare. One of All Toys major competitors are Amazon.com, Ebay.com and the traditional businesses. These firms provide a similar service with a wide range of products ranging from books, toys to music. However, All Toys differentiate itself in that it promises its customers this “We bring the toy store to you”, hoping to emphasize the convenience of at-home shopping versus the crowded scramble at the mall.

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William, S. (2006). Traditional Business vs. E-Business. Retrieved 27th April 2011 from http://www.ehow.com/facts_5903880_traditional-business-vs_-e_business.html