Nowadays, online shopping is developing very fast. Almost every well-known company sells its goods both in stores and online. Online stores like Amazon, eBay are earning hundreds of millions every year. Taking all this into account, we decided that opening online store in a country, where online shopping isn’t developed yet, is a really good idea that will bring a lot of money. Our company’s name will be “MY.COM”, which stands for Muhammad & Yerzhan. Also, MY.COM is really easy to memorize. We chose Kazakhstan as place for our new business because of its political stability and rapid economic development. Since 2000 Kazakhstan’s economy grows nearly 10% almost every year and according to experts’ predictions, Kazakhstan will enter top 5 exporters of oil in the World in this decade. However, it is a developing country and the online shopping is not so popular there. It’s kind of a new concept. People are mostly buying their desired product by going to shopping mall. But things are changing day by day, and we are lucky to have this opportunity and we should definitely take advantage of it.
Our company will make shopping convenient for the people. People won’t have to go to shopping mall to buy products any more. They will be able to purchase desired items online. Moreover, the prices will be lower than in shopping malls, because the products won’t be taxed, and unlike malls, we won’t need salespeople and managers. In addition, our customers will save time and gas. In our business we will work as intermediaries. We won’t have to have inventories and storages but we will just mediate orders from customers to manufacturers. Hence, we need an office for our programmers and operation system. Rental of office will cost us around $10’000 per month. When we grow bigger we can rent a more spacious place but so far a building with this rent is alright.
Our target market will be all the people who hold credit or debit cards. Luckily, in Kazakhstan government obliges all employees and government entities to use transactions to pay people salaries, pensions and monthly scholarships for students. Basically, our potential buyers are whole population of Kazakhstan except for children of 18 or less. Since we target such a large consumer segment, we will have to provide variety of products for people of different generations, genders and preferences in general. Students will be buying books and electronics products, housewives will be buying household products etc.
People’s limited experience with the online purchases will probably be the biggest problem we face. So, we will have to spend money on increasing customers’ awareness about both online shopping and our company. In order to achieve better and faster results, we decided to use television and internet advertisements. For television advertisements, we picked the most popular channel “Khabar”. Average price for a minute of commercial here is about $3000. If we buy 3 minutes of commercial per day, it will cost us around $270’000 monthly. Fortunately, internet advertising is so much cheaper and in total it will cost us around $5000 per month.
The slogan of our company will be “fast and easy” which illustrates the biggest advantages we have, and it also persuades consumers who are skeptical about online purchases to start their shopping with us.
There are other companies which sell products online in Kazakhstan. But they are little bit different. They allow companies to upload their products and sell them online, and they get commission. Some companies sell their own manufactured products but the problem with those companies is they can’t offer varieties of products and that’s why they aren’t popular. Our company will be unique in Kazakhstan because we will work as online dealer for other manufacturing companies. We will talk to different manufacturers of different products and will try to get a good negotiated price from them and sell them online. This kind of method is still unique in Kazakhstan.
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