Developing and Implementing an Internet Business Site

Plan Outline Prepared by:  

Scott M. Smith. Brigham Young University Provo, UT 84602
Materials and text were adapted from "Creating A Business Plan"
William R. Swinyard, Brigham Young University Provo, UT 84602

Introduction

Well-trained managers understand their company, its competition, and its customers. A fundamental task in gaining this information when setting up a business is the development of a marketing or business plan. The plan improves program coordination, encourages disciplined thinking, provides a guide to action, facilitates the measurement of progress, provides a historical record, and encourages an orientation toward the customer and competitor. This assignment includes some financial objectives and therefore is in part a business plan rather than just a marketing plan.

This plan addresses such questions as... What is the Internet market?, What is the market for our product/service?, How do we compare with our competitors?, What do out customers desire?, and What type of advertising and sales plan do we need to succeed?

This set of of assignments is designed to help you further explore the technical and strategic potential of the Internet. To this end, your evaluation on these assignments will be weighted on content (70 percent, including the introduction, the management summary, the market evaluation, the competitive analysis, the laddering exercise to identify the customer's attributes and benefits desired, the actual implementation of the site structure and graphics, the explanation of the advertising appeals and methods used for selecting and developing headlines and copy, and the sales program). And on the presentation (30 percent, including the formal written report, and the site's visual appeal). The standard of comparison for the papers and the actual site development is that of professional-quality work.

Note that even after you have decided on your site content, the preparation of the site and the reports will likely take much more time than you expect.  

The Point of View for the Report
This project will focus on your "client". This client will be a product or service firm, or an informational topic of your choice. The project will be completed on an individual basis or in groups of no more than two individuals. Individual work is required in this class because of the depth of knowledge and integration you are expected to achieve.  

View yourself as the consultant hired by the business to analyze and improve its business by setting up an on-line business opportunity. You are to not only develop a site, but also advertise and promote the business and develop a traditional sales force for selling internet sites.  

Selecting a Client
Each group will locate a firm willing to work with you. Because this is a business course, you may select any form of retailing, service (store or non-store base), or non-profit business. Exercise caution that the project is not too large in terms of the number of products or services that are to be offered.  

If doing a project for an existing firm, they must be willing to discuss the background of the business (but not confidential financial data) and permit a reasonable degree of investigative work in evaluating the objectives, operation, and customers. A key to the success of the assignment is that you develop a business that will succeed (meet profit or other goals).  

By the date indicated in the course syllabus, submit on one page, information that includes

• the business name of your client,
• a brief statement about the nature of this business,
• the name and telephone number of the client liaison person, if other than yourself, and
• your name and phone number

General Style and Format for the Report

For all reports, a few things to keep in mind:

• Somewhere on the cover page of each report, include at least these items: - the client name (and possibly their logo)
  - the name and logo of your "company"
  - your name - at least one contact phone number
  - my name (and phone number [ 422-5569]
  - the school name: "Brigham Young University"
  - the date.

• You may use a heavily annotated Powerpoint Presentation Format
• Precede each major section with a page separator announcing only the name of the section.
• Include a table of contents and page numbers.
• Use headers and/or footers appropriately.
• Make good use of titles, headings, and subheadings (see Exhibit 1 below for sample page).
• Single space the report, with double spacing between paragraphs. Do not indent paragraphs.
• Provide plenty of white space by using 1 1/2 inch margins all around.
• Use bullet points where appropriate.
• These will be technical documents, so be sparing in your use of the personal pronoun.
• Use an appropriate typeface, do not be reluctant to use a small number of different font sizes or weights (within the same typeface family), but don't overdo it ... you don't want attempts at pizazz to detract from the message of the report.
• Remember your reader. The reader should be assumed to be a naive one ... someone not acquainted with the background of the project. Take the reader by the hand (beginning with the introduction) and lead them from where they are to where you want them to be.
• Give the reader a "sandwich." For the paper as a whole, as well as for the individual sections of the report,
  - tell the readers what you are going to tell them,
  - tell them what you were going to tell them,
  - then tell them again what you have told them.
  - Package the report in a thoroughly professional manner.  
• This report will be in summary narrative form and not necessarily contain tables and graphs (except for the competitive analysis and means ends), but should lead to a summary and conclusions.
• Writing quality and style are important... not too chatty, use personal pronouns ("we," "our") only when the passive voice is overly awkward.  
• Good quality work requires real software skills, not just familiarity.

EXHIBIT 1
Sample Page Layout
Client Name                                                                                                                                                          Competitive Analysis

or

* bullet points, for emphasis and

* listings.  

Second Level Heading. Normally, the second-level headings are underlined, and end with a period. Instead of underlining, it could be bolded or in a slightly larger type size. Text for the heading begins on the same line as the heading.  

Ordinarily, third-level subheads are not necessary.  

Your Company Name                                                                                              Page Number        

Suggested Organization of the Report

• Introduction. A brief statement of the purpose for this business. Be clear and specific. Do not assume too much about the reader, so be sure to explain how the project originated, what led the business to want a site, and what questions the project will address. About a page.
  
  
• Market Analysis. An analysis of the Internet market as a whole, and the market for the specific products or services offered at your site. This analysis should include size, characteristics, growth rates, and trends overall and for segments.



• Competitive and Customer Market Analysis Methodology. The methodology section describes both the competition and the customer. Each of these methodologies are very different. About a page should be required to explain the methodology of competitive sets and one page for the Means-ends analysis. For the means-ends analysis, tell how respondents were identified as belonging to the target market and how representative they are. You want to assure the reader that your sample is representative of the target market. This may be two sections.



• Results of the Competitive Analysis and Means-ends Analysis. This section begins with a definition of the target market. Follow this with a concise statement of key findings revealed in the detailed pages which follow this section. Make use of bullet points highlighting the findings, each of which refers the reader to the appropriate supporting exhibit where appropriate. This section may contain printed copies of competition's sites, or discussions of actual competitors against which you view yourself as competing. It should also include a means-ends ladder diagram. This may be two sections.



• Site Development. Site development materials should document the site development process. A flowchart/map of the site, should be included, including rough sketches of the pages, along with identification of the features (database, search engines, graphics, links, etc.) to be found on each page of the site.



• Advertising Appeals for the Site. Each site has a purpose, be it to provide information, to sell commercial products or services, or just to be an individual's personal site that provides entertainment value. How are marketing principles are used to produce awareness, interest, provide information, and prompt the viewer to act on the information provided by the site? How are concepts and tools such as themes, metafors, content, new information, samples, and navigational tools used to create value. The advertising message should reflect the means end analysis and the competitive analysis. It should be direct and focused on the features the site and business offer, and on the benefits or value delivered to the customer.



• Sales Guide. Develop a sales guide to train someone to sell a variety of internet sites.



• Appendix. Provide a listing a all internet sites used in developing your competitive analysis and your site. Provide a one or two sentence annotation as to the nature and value of the site.


Each of these topics will now be discussed in detail.

I. Internet Market Analysis

Objective: To analyze the Internet market as a whole, and the market for the specific product or service offered by your site. This analysis should include size, characteristics, growth rates, and trends overall and for segments. Questions that address these topics include:

Is my market clearly identifiable?
By what methods am I able to reach them?
What is the size of the market?
How fast is the market growing?
Can the market be segmented?
What types of people buy this product/service?

II. Competitive Analysis

A competitive strategy report is based on an evaluation of the competitive market place to show strengths and weaknesses of your business or concept vis-a- vis three or more major competitors. This is done using a "competitive sets" analysis. The competitive sets analysis focuses on the major attributes that determine patronage of that competitor and their products/services.

Objective: The Competitive Analysis assesses your client's and competitor's strengths and weaknesses, as perceived by yourself and members of the target market. The key questions to answer include:

• Who are our present competitors?
• What is our position from a "competitive sets" perspective?
• How are we perceived, vis-a-vis our competitors, on characteristics of value to consumers?
• What must the site do to make it a more appealing place to shop?

Sample Competitive Analysis Questionnaires and Forms

EXHIBIT 2
COMPETITIVE ANALYSIS QUESTIONNAIRE  

Below are several sites which might compete with my business (give full urls)

(A)

(B)

(C)

(D)  

A list of possible questions to evaluate the competitive sites include:

Does the product/service have limited appeal based on geography?
What do potential or existing customers like about my competitor's products/services?
What makes my product/service unique relative to others in the marketplace?
What are current buyers paying for comparable products/services?
What factors are most important to buyers when selecting a product/service, price, quality, delivery time, etc. What is required to succeed in this market?
How many competitors will I be competing against?
Can the market sustain another player?
How do my competitors reach the market?
Are my competitors making any changes?
Are they successful?
If yes, why?
If no, why not?
How are my competitor's fees, operations and marketing structured?
Is the industry growing?
What are the current trends within the industry?
Who are the leaders within the industry, and why are they successful?
What type of marketing strategies are prevalent within the industry?
Is the industry seasonal?
Are there regulations that affect the industry?
Is there customer loyalty within the industry?
Is the industry sensitive to economic fluctuations?
Are there technological changes happening or required in the industry?
What are the financial characteristics of the industry?

(Source: Entrepreneurial Edge Online: http://www.edgeonline.com/main/bizbuilders/
See also the marketing guides for internet site development at http://marketing.byu.edu )  

Alternatively, a competitive analysis evaluation guide might be used. One such evaluation guide is shown in Exhibit 3.

This section of the report should be based on the design evaluation sheet (Exhibit 3) or similar questioning techniques. Complete this evaluation for the client and at least three other sites. The sites should be selected either because (a) they are highly competitive in this market or (b) they have something significant to teach you about your client's layout issues. The key output of this section of the report will be a recommended site layout, and recommendations for design, including graphics, customer service, headlines, types of products to feature, colors, backgrounds, and other design elements you believe are of importance.

Procedure: Make copies of Exhibit 3. Modify the form if necessary for appropriateness. Select three or more competitive sites and spend some time to complete the evaluation guide. Be thorough and specific in your comments, and make a printout of the site. After completing these evaluations, you may want to use a blank form to prepare ideas for your site.  Approximately 3-5 pages.

IV. Customer Analysis

The means ends analysis, as described in a separate document linked to the course syllabus, is directed at identifying the relationship between the attributes or features offered by a business, product, or site, and the benefits or values that are received or desired as part of consuming that product or service. These features and benefits are critical in designing, advertising, and selling Internet products and services. Approximately 3-5 pages.

V. Site Design and Layout

Objective
To develop a professional layout, design, and service elements for your client's site.. Your site should provide an implementation that solves the following problems:  

• What initial obstacles do you face in getting customers through the front door of your site?
  
• How are shoppers likely to judge the client site versus other sites they are likely to choose on layout, design, and customer service?
  
• What layout, design, and service will be most appealing to the target segment?