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FINAL PROJECTENEB Business School
Final Project GuidelinesPlease use this format to submit your final work. The paper must follow all theguidelines as instructed in order to obtain full credit.Remember that our team of tutors is available for any questions regarding yourfinal work. You must present the final version of your work as no previouscorrections will be carried out. To submit the final project, students must usethe template below, with their answers written after each statement.Please present your final paper according to these requirements:• Arial 12 Font.• Margin: 2,5.• Line spacing: 1,5.• All fields on the cover page must be completed.• The document needs to be properly paged.Your final project must be authentic and individual. Any work that has beenplagiarized or papers written by others or with the help of others are likely to befailed. If this occurs for the second time, you will not be permitted to obtain yourdegree.Be aware that you are permitted a maximum of two submissions per subject. Ifboth projects do not meet the standards and fail, the student must pay thecorresponding fee to be evaluated again.When writing your final project please use Microsoft Office, Adobe or Apache'sOpen Office Writer tools (DOC, DOCX, ODT, PDF, etc.). Please consult your tutorwhen using a different format. Additional information about the software will beneeded.Page 3Please use the following format:ddmmyyyy_Subject_LastNameandName.pdfExample:11052019_StrategicManagement_ElsaMoore.pdfThe project should not exceed more than 18 pages, excluding the cover page,bibliography and the appendix.Evaluation GuidelinesThe final work will be evaluated based on the following criteria:• Acquired knowledge (25%): the knowledge acquired throughout thecourse of the subject will be evaluated through the analysis of thetheoretical data shown in the project presented by the student.• Development of the Subject (25 %): the interpretation of the thesissubject by the student and its development will be evaluated in acoherent and analytical manner.• Final result (25%): the final evaluation is based on coherent solutionsapplied to solve objectives set out in the paper. The presentation mustbe conclusive and formatting must meet established parameters.• Additional information and bibliography (25%): additionalinformation regarding the research and subject matter will be evaluatedand taken into consideration as a bonus. This consist of: bibliography,visual graphics, charts, independent studies carried out by the student,external academic sources, articles of opinion, etc. All sources, bothprinted and online, must be referenced according to the APAregulations.Page 4BACKGROUNDElephant is a company dedicated to the sale and distribution of wine withDesignation of Origin Ribera del Duero. It was founded in 1999 and since then itssales have been increasing.Elephant (fictitious company), has a high quality product, has won some prizesand aims to become a reference for the younger consumers.The company has created an online sales platform and proposes a new salesstrategy, based on the online channel to reach a wider market share and surpassthe reach of its stores to the virtual experience.DEVELOPPreparation of the Marketing Plan for Elephant’s proposal, presenting thestrategy and actions that will form the implementation route of the onlinebusiness in the Spanish market.1. Analysis of the external situation.• It will be necessary to research the Spanish market in relation to the winesector and an analysis of its competence.• In addition, a study of electronic commerce in Spain will be necessary.2. Analysis of the internal situation.• Identify the target audience and the different customer segments and theirpositioning.• SWOT analysis to identify the weaknesses and strengths of the company,and the opportunities and threats from abroad.Page 53. Specify the goals aligned with the business proposal to expand to a new saleschannel.4. Prepare and select the strategies that will serve as a route for implementing anonline business in the market. You must include the different tactics of theMarketing-Mix and concoct the action plan to follow.5. Propose a detailed schedule and timing for each action.6. Write a detailed elaboration of the budget of the necessary actions toimplement the proposal.7. Define which measurement and control methods will be used to determinewhether the proposed actions and activities are beneficial to the company or not.Justify the use of these tools.Page 61. Analysis of the external situation.• It will be necessary to research the Spanish market in relation to the winesector and an analysis of its competence.• In addition, a study of electronic commerce in Spain will be necessary.1.1. MarketSpain is one of the most important countries in the world of wine with a total of959,535 hectares, it is the first country of vineyard cultivation in the world, despitethe cuts experienced in the last decade by the reconversion processes, from1,150,000 hectares.In fact, Spain is the third largest producer in the European Union and the world'sleading exporter by volume. Sales abroad touched 3,000 million euros (2018) andhave set a new record in 2019, according to data from the Wine MarketObservatory (WMO). And, for the first time in four years, domestic consumptionhas slowed its fall to stand at 21 liters per person per year, according to the WineInstitute.When it comes to exporting Spanish wine, we can see that price is a problem; forexample, France had an income of 9,000 million euros selling the liter at € 6,while Spain sold the liter at € 1.25. This is one of the reasons why Spain is thethird largest producer in the European Union, since France is at the top of the listand Italy is next.Currently, Spain is proposing a new strategy with which it can raise the price of aliter of olive oil in order to increase the economic volume of its final turnover. Infact, in the 2018 campaign, the price of wine in Spain is around € 2.65 / liter.Due to the price increase, Spanish bulk wine imports were increased by 43.6%since the average prices are cheaper. Therefore, bulk sales rise but sales ofprotected origin denomination wines and sparkling wines decrease.Despite the general increase in Spanish imports of wine, the trade balancecontinues to be clearly favorable for Spanish wine, reaching 20.4 million hl andPage 72,746.5 million euros, representing a significant contribution by the sector to thenational trade balance.Spain exported 1.3 million hl less this season but billed 197 million euros more,at an average price of € 1.39 / liter. With respect to wine exports made in theprevious season, the export volume decreased (-6%) but billing increased by7.2%, thanks to an increase of 14% or 17 cents per liter more than the averageprice.The following graph shows the evolution of Spanish wine from 2015 to 2018 inSpanish.As we can see in the graph collected from theInterprofessional Organization ofSpanish Wine (OIVE), the price of Spanish wine has increased over time, from1.08 in 2015 to 1.39 € / liter in 2018.As previously mentioned, the price increase has been necessary in order toincrease turnover and be able to keep up with France and Italy, trying to shortenthe distances in order to be the country with the highest turnover.Page 81.2. Competition.Taking into account the general situation of the wine market in Spain and withrespect to other countries, we reached the following conclusion of what themarket is like and what competitors are in Spain. Therefore we can say that it is:➢ It is a fairly fragmented market in which leaders monopolize over 3% interms of volume.➢ Top buyers generally need to offer a wide variety of wines to their owncustomers, which can create difficulties for small companies.➢ We are in a very competitive market since it is a highly differentiatedproduct with a wide variety of products and prices.Among the companies that stand out in Spain, we find:➢ Freixenet SA is the leading participant in the Spanish wine market,accounting for 1.4% of the market volume.➢ Codorniu generates 0.9% of the market volume.➢ The leading companies in the sector were Galician Wines & Wineries,where the Bodegas de Martín Codax and Bodegas Arnoya stand out.1.3. Electronic commerce.In the case of Electronic Commerce in Spain, according to the NationalCommission of Markets and Competition (CNMC), the turnover of electroniccommerce in Spain increased by 25.7% in 2019, exceeding 30,000 million euros.The volume of business increased in the last quarter of the year by 28.1%compared to the same period in 2018, reaching 8,526 million euros.In the last quarter of 2019, 36.4% of sales were within Spain, while 49.8% werepurchases from foreign websites. Only 13.8% were purchases made from abroadfrom Spanish websites. The deficit in the Spanish electronic commerce balancewas more than 3,000 million euros.Page 9The most dynamic sectors were travel agencies and tour operators, whichrepresented 11.3% of the turnover. Air transport followed with 7.5% and clothing,with 7.1%. The number of transactions also increased considerably in the fourthquarter of the year, with more than 154 million purchases, 31.5% more. Gamblingand betting led the ranking, monopolizing 6.8% of them. They are followed byland passenger transport, with 6.6%; records, books, newspapers and stationerywith 5.8%; and clothing, which also reached that 5.8%.The value of Spanish purchases from foreign websites increased by 36.8%,reaching 4,247 million euros. 93.1% of purchases were from websites ofcountries of the European Union, while 2.3% from the United States. The volumeof sales of Spanish websites to buyers outside the country also increased, 36%more compared to the same period in 2016, reaching 1,174 million euros. 70.1%came from the European Union.Spanish web pages related to the tourism sector monopolized 65% of purchasesfrom abroad. For its part, revenue from purchases made from Spain to nationalwebsites grew by 15.5% year-on-year, reaching 3,105 million. Tourism is also themain driver here, as it accounted for 27.9% of turnover.2. Analysis of the internal situation.• Identify the target audience and the different customer segments and theirpositioning.• SWOT analysis to identify the weaknesses and strengths of the company,and the opportunities and threats from abroad.2.1. TargetTo determine the target audience of our company, we must take into accountthat, today, wine is the second alcoholic product consumed by Spaniards. At thetop is the beer, according to the Wine Market Observatory (WMO). Theconsumption of wine begins to exceed the beer as the average age increases.Therefore, wine is more consumed among people over the age of 35 and beer ismore consumed by young people between 25-35 years.Page 10In our case, Elephant wants to focus on the younger audience and get theirattention. Within the youngest public, according to WMO data, it is women whoconsume the most wine and, among this group of women, those with a mediumor medium-high economic level stand out, due to the fact that the price of wine ishigher than the beer.The idea to attract this target audience will be to create a new range of products,both in red and white wines, in which the flavor of the wine will be soft and fruity,since the palate of young people is different from that of the older people. Youngpeople look for a more refined and smooth wine since they are not used to wineand, as for older people, they have other preferences.In the current market, we are a fairly well-known brand, with wines characterizedby being a traditional wine, aged in old oak barrels, which gives it a differentaroma to the wine. Of the different ranges of wines that we have, we sell morethan 100,000 bottles per year at a cost of € 14 per bottle.Page 112.2. SWOT analysis.In order to know the situation of Elephant in the current market, we are going tocarry out a SWOT analysis to obtain a reliable diagnosis of the company to makea strategic decision. The SWOT analysis helps us to consider the actions that weshould take to take advantage of the detected opportunities and eliminate orprepare the company against threats, being aware of weaknesses and strengths.STRENGTHS➢ Established product.➢ Nationally recognized brand.➢ Great production capacity.WEAKNESSES➢ New unknown market.➢ Difficult target audience.➢ Lack of knowledge about electroniccommerce.➢ Lack of coordination in thewarehouse.OPPORTUNITIES➢ Wine drinking culture in thecountry.➢ New market niche.➢ Launch of a new range of products.➢ Launch of products for onlinepurchase.THREATS➢ High competition.➢ The high consumption of beer.➢ Decrease in wine consumption inrecent years.Page 123. Specify the goals aligned with the business proposal to expand to a newsales channel.To establish our objectives, we have first determined what our target audiencewill be (young people between 25-35 years old); Subsequently, we have carriedout an analysis of the market situation, establishing our weaknesses, strengths,threats and opportunities in the market. Once these analyzes have been carriedout, we will proceed to develop the objectives that the company will follow in orderto achieve the final goal, which is an online sales channel.In our case, online sales are at their peak, especially among young people aged25-35. At the beginning of online commerce, young people were the ones whoused the internet the most and made purchases online, but today, most peoplemake purchases online. Therefore, we consider our target audience as anexperienced audience in the online world, which will help us establish our goalsto reach the final goal.We must be clear about the characteristics that our objectives must meet beforedetermining what they will be. These characteristics are:➢ Viable.➢ Concrete and precise.➢ In time.➢ Consensual.➢ Flexible.➢ Motivators.Firstly, once we have the products on the website available for sale, we will focuson social media to promote our product with new offers only for online purchase.At the same time, we will use the "spread of the word" tactic so that our clientssee the new website and are informed of the option to purchase online withdelivery of the product within 24 hours within the region of Spain.Our goal for the first year will be to sell 20,000 bottles of wine online. Every yearwe sell 100,000 bottles to the different clients that we already know, so we hopePage 13to increase the volume of sales by at least 5% and thereby expand the clientportfolio.Once we have achieved our goal the first year, the following years we willincrease the cost dedicated to marketing and social networks to continuepromoting our product and thus continue to expand our sales and our number ofcustomers.In addition, another objective will be the visual attraction of the target audience,so we will modify the packaging of the new line of wines, with a packaging thatwill break the usual lines of the company. In this case we are targeting youngpeople, and these people value both price and design; The first thing you buy isthe first thing that visually appeals to you.Therefore, we can consider as a quantitative objective to reach a new market,increase sales of our product and get new customers. In the case of thequalitative objective, it will be the design of the new bottle to attract newcustomers.Page 144. Prepare and select the strategies that will serve as a route forimplementing an online business in the market. You must include thedifferent tactics of the Marketing-Mix and concoct the action plan to follow.To determine the strategies to follow of our product to achieve the objectives ofthe company, we will base ourselves on the 4 P's of the Marketing Mix (product,price, distribution and promotion)Product.In our case, the product is wine bottles that, like all products, have a life cycle thatgoes from the launch of the product to its decline. Currently, the Elephant productis in a stage of maturity, since it is established in the market, it is a well-knownbrand with fixed customers. On the other hand, when introducing a new productto the market, such as the new line of wines, it will be in the launch phase, wherepromotions and attracting new customers are the priority.Price.In the case of the bottles currently sold, the average price of the bottles is € 14;In the case of the new line of wines, the prices will be around € 7, a greatDISTRIBUTIONMARKETINGMIXPROMOTION PRICEPRODUCTPage 15difference in price since the public of said wine will be the younger people. As wehave previously analyzed, when selecting a wine, young people first look at theformat of the bottle (which is what captures their visual attention) and, later, theylook at the price (which is decisive for the purchase of the product).Having carried out an analysis of the competition that sells wines with similarcharacteristics, we have decided to establish this price since it will be aroundthose of the competition. It would be impossible to set a lower price as the qualityof the wine remains high.DistributionUntil now, the distribution of the product was carried out from the warehouse tothe stores where end customers could buy it, but, with the introduction of anonline store to commerce, we expect that the percentage of online sales will begreater than that of telephone sales. (which was the old way of contact)Promotion.In this case, to promote the new product we will rely on interactive communicationthrough the internet, "spread of the word" with our customers so that they can talkto more people about our new product and online offers.We have to promote online sales, since it is the new service that the companywill offer, and, in addition, we must capture the attention of the younger public.For this, we will base ourselves on the online promotions that we will publish onsocial networks and, in this way, our potential customers will be able to see thatwe have a new product and a new way of selling.In summary, we will base ourselves on the following strategies:➢ Product portfolio strategy: We will add new products to complete andcover a larger market and customers.Page 16➢ Pricing strategy: we will have a wide variety of wines at different prices inorder to adapt to all types of clientele, from those seeking an exclusivewine to those seeking a more normal wine.➢ Communication strategy: "spread of the word" will be our biggest key toincrease product sales.Page 175. Propose a detailed schedule and timing for each action.To organize and collect the tasks that we are going to carry out, we are going toperform a timing with the help of the Gantt Chart.To do this, I will first show what we are going to include in the Gantt Diagram andthe distribution of each of the strategies by days.Gantt Diagram ElephantPriority Task Start date End dateHigh Introduction of the new product 16/07/2020 26/10/2020High 1. Determine target public 16/07/2020 19/07/2020Low 2. Design of the new bottle 19/07/2020 26/10/2020High Start of the online selling 27/10/2020 09/11/2020medium 1. Establish online offers 27/10/2020 27/10/2020High 2. Start of the "spread of the word" 03/11/2020 09/11/2020High Customers fidelization 08/11/2020 28/12/2020Medium 1. Fidelity special dicounts 08/11/2020 13/11/2020High 2. Incentives to clients for bringing friends 13/11/2020 16/11/2020Medium Promotion and advertisment 20/11/2020 02/11/2020High 1. Promotion in social media 20/11/2020 27/11/2020Medium 2. Special offers online 28/11/2020 08/12/2020Medium 3. Offers to new customers 28/11/2020 28/12/2020Medium 4. Fidelization cards 28/11/2020 28/12/2020Page 18At the beginning the most important thing is to have the new image of the productand the online website with the sale of the products. We will de dedicate a lot oftime to achieve something that we really think it is what we want to offer and it isreflects rightly our product. Also in the first phase we have to study the marketand determine the target public to sell our product.After this analysis we will start the online selling with very notorius online offersand focusing in the satisfaction of the customer. That will make that the customerswill tell other people abouttheir experience and we will have more customers.Afterwards we will try fidelize our current customers with special discounts andincentives for bringing new friends. This will be one of the keys of the processbecause it will help us to obtain new costumers from the competency. Also wewill have at this point a strong main group of costumers who are very lloyal to us.Finally we will invest much more money in promotion and advertisement. Now adays we we have to focus in social media like Instagram or facebook becausealmost everyone uses that kind of platforms. Trying to hire their publicity servicesso that videos of our brad appears to posible customers. We will continue to havespecial offers online and base them on quantity too, so that we can sell as muchas possible. Also we will have offers for new costumers, like have special codesor vouchers with the first buy, so that they are incentivated to buy for the first time.Page 196. Write a detailed elaboration of the budget of the necessary actions toimplement the proposal.For this campaign, we will make a budget with the annual fixed costs and themonthly costs. Being the first campaign, it will not be excessively expensive sincewe must check if the online store is working or if we cannot get it to work.Therefore, we will have a budget of 20,000 euros to spend annually anddedicated solely and exclusively to the company's marketing.We do not take into account the rest of the costs that the company has, such asthe monthly rent, the personnel who are working in the company ... Since thisbudget is directed only to the marketing campaign that is going to be carried outto achieve the goal set.Annual fixedexpenditure (ineur)Monthly / OccasionalExpense (in eur) DescriptionDesigner 300 * Bottle design and labelingWeb designer 500 * Online store designOnline store maintenance 300Network promotion 500 * Payment promotion on social networksNew cards 150 * Company cards with the new bottle on themLoyalty cards 200 * Cards for new clients and cards for regularclientsPersonal recruitment 16,000 * Incorporation of an e-comerce manager intothe companyTOTAL 16,800 1,150TOTAL CAMPAIGNEXPENDITURE 17,950Page 207. Define which measurement and control methods will be used todetermine whether the proposed actions and activities are beneficial to thecompany or not. Justify the use of these tools.In this section we will carry out a control to verify that all the tasks are beingcarried out properly and that it is not necessary to make modifications or, ifnecessary, make the necessary modifications to continue with the developmentof the project until achieving our objective.During the project, weekly meetings will be held with the personnel who arecarrying out the project and with the managers to verify that everything continuesto function correctly. Therefore, this project will take place in approximately twomonths, where we will hold a total of 10 meetings.The first two weeks will be the start of the project, so many doubts anduncertainties will arise among employees.Between the third and sixth week, the project will be well in action, and problemswill begin to arise among employees, the doubts that appeared in the first weekswill be resolved and we will see that other economic problems or problems withmanagement may arise due to some organizational issue.Between the seventh and eighth we will focus on correcting all possible errorsand continue towards the final objective.The last two stages we will check that we have carried out the necessary steps,that the team has worked correctly and that we will finally achieve the desiredobjective.
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