UNIVERSITY OF ZAGREB FACULTY OF ECONOMICS AND BUSINESS Master Degree in Business
AUGMENTED REALITY OF YOUR PLACE E-business Project
Student: Ana Jelčić, JMBAG: 0067532379
Zagreb, 2020.
Contents Contents......................................................................................................................................2 1.INTRODUCTION.......................................................................................................................2 1.1.Essay Scope and Purpose.................................................................................................3 1.2.Data Sources and Collection Methods............................................................................3 1.3.Essay Content and Structure............................................................................................3 1.4.E-business Model.............................................................................................................4 2.PROJECT DESCRIPTION............................................................................................................5 2.1.Project Detailed Description And Organization..............................................................5 1.2.1.Innovation list............................................................................................................7 2.3.1.Project Innovations – Detailed Description...............................................................7 2.4.1.Main Competitors......................................................................................................8 2.4.2.Similarities and Differences with Existing Projects in the Market...........................10 2.4.3.Project Competitive Advantage...............................................................................11 3.DIGITAL BUSINESS MODEL....................................................................................................11 3.1.Main Business Partners..................................................................................................11 3.1.1.Main Business Partners List.....................................................................................11 3.1.2.Main Business Partners Description........................................................................11 3.2.E-business Model Values...............................................................................................13 3.3.Key Activities..................................................................................................................15 3.4.Key Resources.................................................................................................................15 3.5.Clients.............................................................................................................................16 3.5.1.Main Clients List.......................................................................................................16 3.5.2.Main Clients – Detailed Description........................................................................16 3.5.3.Markets and Website Language...............................................................................18 3.5.4.Client Registration....................................................................................................18 2
3.6.Customer Relationships.................................................................................................19 3.7.Business Channels..........................................................................................................20 3.8.Project Starting Costs.....................................................................................................20 3.8.1.Project Starting Costs Plan.......................................................................................21 3.9.Revenue Models.............................................................................................................21 3.9.1.Revenue Models List................................................................................................21 3.9.2.Revenue Models – Detailed Description..................................................................21 4.DIGITAL TECHNOLOGIES........................................................................................................23 4.1.Mobile Technologies......................................................................................................23 4.1.1.Mobile e-business....................................................................................................23 4.1.2.Mobile Application for Smartphone Description.....................................................24 4.1.3.Mobile Application Functionality Description.........................................................25 4.1.4.Graphic of Mobile Application Functionality...........................................................27 4.1.5.Mobile Advertising...................................................................................................32 4.2. Social networks.............................................................................................................33 4.3.Cloud computing............................................................................................................34 4.4.Big Data..........................................................................................................................36 4.5.Sensors and Internet of Things (IoT).............................................................................36 4.6.3D Printers......................................................................................................................37 4.7.Robotics..........................................................................................................................37 4.8.Drones............................................................................................................................38 4.9.Virtual and Augmented Reality.....................................................................................38 4.10.Artificial intelligence....................................................................................................38 5.DIGITAL MARKETING.............................................................................................................39 5.1. Project Marketing Plan..................................................................................................39 5.1.1.Advertising online using banners.............................................................................39 3
5.1.2.Blogs.........................................................................................................................40 5.1.3.News Groups............................................................................................................40 5.1.4.Mailing lists..............................................................................................................40 5.1.5.Sponsorships............................................................................................................41 5.1.6.Link Strategies..........................................................................................................41 5.1.7.Affiliate Marketing...................................................................................................42 5.1.8.Search Engine Optimization.....................................................................................42 5.2.Google AdWords............................................................................................................42 5.2.1.Target market...........................................................................................................42 5.2.2.Client Language........................................................................................................42 5.2.3.The size of the possible audience............................................................................42 5.2.4.Keywords..................................................................................................................43 5.2.5.Google Ads Textual Ad.............................................................................................43 5.2.6.Campaign settings....................................................................................................44 5.2.7.Newsletter................................................................................................................45 5.2.8.Traditional Promotion Types....................................................................................46 5.3.Social Networks Advertising..........................................................................................46 5.4.Marketing Plan Table.....................................................................................................47 6.DIGITAL PAYMENT METHODS...............................................................................................47 6.1.Digital Payment Methods List........................................................................................47 6.2.Digital Payment Methods Description..........................................................................48 6.3.Blockchain technologies................................................................................................49 7.SWOT ANALYSIS.....................................................................................................................50 8.PROJECT WEBSITE.................................................................................................................50 8.1.Web Hosting...................................................................................................................50 8.2.Web Domains.................................................................................................................51 4
8.3.Content Management System (CMS)............................................................................53 8.3.1.Possible CMS for Project..........................................................................................53 8.3.2.Best CMS for Project – Description..........................................................................54 8.4.Website Prototype.........................................................................................................55 8.4.1.Project Website Structure........................................................................................55 8.4.2.Project Website Sitemap..........................................................................................63 8.4.3.Project Lucidchart diagram......................................................................................64 8.4.4.Project Website Structure Description....................................................................65 9.CONCLUSION.........................................................................................................................66 10.BIBLIOGRAPHY....................................................................................................................67 11.LIST OF WEB LINKS..............................................................................................................69 12.LIST OF FIGURES..................................................................................................................70 13.AUTHOR CURRICULUM VITAE.............................................................................................71 14.ATTACHMENTS.....................................................................................................................72
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1.INTRODUCTION As introduction to my E-business essay I would like to start with basic explanation of augmented reality. Augmented reality (AR) is a view of the real, physical world in which users find elements enhanced by computer-generated input. Designers create inputs ranging from sound to video, to graphics to GPS overlays and more, in digital content that responds in real time to changes in the user’s environment, usually movement. 1 However, my decision was to explain how augmented reality can be best used in a wood industry or lumber industry, which is one of the oldest industries every country is a part of. Also, since IT, AI, computerization and internet businesses are rapidly growing day by day, it is time for wood industry to start thinking how to make the best of it.
1.1. Essay Scope and Purpose The Purpose of this essay is presentation of how augmented reality can change the way producers and consumers are thinking. It is the cheaper, easier, and faster way for both producers and consumers - to create furniture (or other required products made of wood), and for consumers to make their place (private or public) comfortable as possible.
1.2. Data Sources and Collection Methods All data sources used for this essay are from the internet. The reason for that is the fact that this is E-business or internet-based type of the project. However, collection method depends on different time periods in which data have been collected. Basically, there are multiple online-based sources that are collected within longer period of time.
1.3. Essay Content and Structure
1 Definition of Augmented reality, Interaction Design fundation. Also available at: https://www.interactiondesign.org/literature/topics/augmented-reality
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The essay itself contains 9 chapters or contents and introduction is included as one of them. All of the contents contain several important points that are briefly explained. In the second part project description is placed. Here can be found next highlighted points: project detailed description, project organization, and project strategic background. Also, all new innovations and possible competition here are described as minutely as possible. Within the third part can be found digital business models. They are as follows: Main business partners, e-business model values, key activities, key resources, some of clients, customer relationships, business channels, project starting costs, and lastly revenue models. In the fourth part are described possible digital technologies that can be used in a wood industry to develop, process, and accomplish augmented reality for their future consumers. The fifth part explains overall digital marketing for this project. First is project marketing plan that every company should have, then project key words, then google Adwords ad, social networks advertising, and lastly marketing plan table that every company should follow. Under the sixth part are digital payment methods list and descriptions, and blockchain technologies as well. The seventh part explains overall project swot analysis. Under the eight part can be found websites used for this project, while ninth part is conclusion of this project.
1.4. E-business Model The definition of e-business model is that it is an approach for conducting electronic business on the internet. E-business model for this project would be ability of consumers to create their own place by choosing products offered on cloud by furniture manufacturers. In other 7
words, for manufacturers it would mean that sensors and IoT would be embedded in customer’s device (ex: on mobile phone), then they are able to send data over digital infrastructure, connecting machines via the cloud and using data analytics to help predict breakdowns.
2.PROJECT DESCRIPTION 2.1. Project Detailed Description And Organization Augmented reality of your place is the project topic I have chosen, for a reason of presenting how to make any place (public or private) as simple to arrange and organize as possible. It would be much faster, easier and cheaper way of doing so, and thus will simplify product making decisions for every furniture manufacturer. Placing furniture in augmented reality has always been an obvious use case, so much so that it’s easily taken for granted. Yet the potential importance for furniture stores, and thus manufacturers, cannot be overstated. Today, not everyone is on the doorstep of an furniture store, and nearly 40 percent of people deal with an “imagination gap” - a lack of confidence in taking risks regarding changes in their homes. There’s never been a more essential time for furniture manufacturers (and their stores) to innovate and find new ways to reach people. With augmented reality they can suddenly meet people wherever they are. AR is a way to bridge the imagination gap and not only continue to democratize design, but to potentially democratize interior design, too. Moreover, managers must have an obligation to fulfill this potential, and the only way they can stand a chance would be by putting the people front and center. It’s easy to get caught up in the technology and just look at the innovation of augmented reality, but that would be a limited point of view. Instead, it should be ensured that they involve many other points of view, in order to make customer's augmented reality place as natural to use as possible.
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2.2. Project Strategic Background 1.1.1. Vision To create better everyday life for the many people.
1.1.2. Mission My business idea supports this vision by offering a wide range of well-designed, functional home furnishing products available non-stop, at prices so low that as many people as possible will be able to afford them. 1.1.3. Project Goals and Objectives There are five goals of AJ Company, and are described below in following order: increasing market share, lowering production costs, increasing the effectiveness of marketing, increasing the efficiency of manufacturing, and last one is improving customer service. The order is not of significant importance, but content is. To start, the first goal of AJ Company would be increasing market share which means finding more customers to buy companies’ product from the cloud and getting a larger percentage of the market by buying a particular product to choose our brand. The next one would be lowering production costs. If AJ Company can find lower cost suppliers or cut deals with existing suppliers, they may be able to lower company's cost. Company can then pass that savings on to the consumer, or keep the difference they save to increase the profit margin on each product. The next one is increasing the effectiveness of marketing meaning that by creating a more effective marketing program, or a lower cost marketing program, company can reduce wasted money and gain new customers. For example, several ads via social media is the cheapest way of doing promotion, while filming the ad about choosing a product offered on cloud, and thus placing them through an augmented reality in an wanted place, would be more costly, but far more profitable. Also, there is no way that something like that will not attract attention of many. 9
As a fourth one I have chosen an increasing the efficiency of manufacturing: If company can manufacture products more quickly, it can cut costs and get those products to the consumers more quickly, and Increasing the efficiency of sales and delivery - the more efficient company can be, the lower their costs. In other words, it is easier to make and deliver product made by customer’s desires, than creating product and holding it on stock until someone wants to buy it. The last goal for AJ Company would be improving customer service: Better customer service will result in better word-of-mouth advertising and thus more loyal customers.
1.2. Innovations 1.2.1. Innovation list Here can be found some important innovations AJ Company will make. They are: Red ocean innovation, Service innovation, Experience innovation, Disruptive innovation, and User led innovations. Their order doesn’t make significant meaning. 2.3.1. Project Innovations – Detailed Description 2.3.1.1.
Red Ocean Innovation
First of them would be Red Ocean innovation. Red Oceans refer to the company's known market space, i.e. in general, all the industries in existence today. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Companies try to outperform their rivals to grab a greater share of existing demand usually through marginal changes in offering level and price. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities, and cutthroat competition turns the red ocean bloody. 2.3.1.2.
Service Innovation
Next one would be Service innovation. Service Innovation can be defined as a new or considerably changed service concept, client interaction channel, service delivery system or 10
technological concept that individually, but most likely in combination, leads to one or more renewed service functions that are new to the firm. In fact, it is offered products on cloud, or cloud-service. 2.3.1.3.
Experience Innovation
As a third one we have chosen Experience innovation where company will try to create holistic experiences by emotionally engaging their consumers. In our case it would be the customer's place itself, where they are able to arrange it based on their desires and demands. 2.3.1.4.
Disruptive Innovation
The next one is Disruptive innovation. A disruptive innovation is an innovation that will help to create a new market and value network, and eventually go on to disrupt an existing market and value network (over a few years or decades), displacing an earlier technology of the company. 2.3.1.5.
User led Innovation
And as a last one we have chosen the User led innovations where the user of company’s products is king. It’s a phrase that’s repeated over and over again as a mantra – company must become user-centric. Also, user will share it's wishes, while company will do the rest of it.
2.4. Competitors 2.4.1. Main Competitors Competitor is any person or entity which is a rival against another. In business, a company in the same industry or a similar industry which offers a similar product or service. 2 For AJ 2 What is competitor, BusinessDictionary. Also available at: http://www.businessdictionary.com/definition/competitor.html
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Company, competitors would be IKEA, Smart furniture venture, Amazon, Private brands, International brands. 2.4.1.1.
IKEA
First is IKEA. The reason for it is because IKEA has developed one of most useful things by now – augmented reality IKEA place. The concept is almost the same to one we are explaining in this project, except the fact IKEA is mostly selling product from other, smaller brands under their name. Also, they are almost cheapest furniture store in the world, while the one we are presenting are not based on price, but quality of offerings. 2.4.1.2.
Smart Furniture Venture
Second competitor is Smart furniture which is a part of a worldwide European – Egyptian venture founded in Austria In 1952. Also, venture is specialized in indoor modern furniture and provides a wide range of furnishing solutions for hotels resorts industry as well as stylish modern residential furniture.3 However, the reason they are competitors is the fact they are dealing with modern, neoteric or fashionable furniture. It is highly-demanded furniture nowadays, but the only defect is it is too expensive. Also, compared to our model of furniture company it doesn't offer augmented reality of space editing.
2.4.1.3.
Amazon
The third most important and the strongest competitor is Amazon – „We strive to have a positive impact on customers, employees, small businesses, the economy, and communities. Amazonians are smart, passionate builders with different backgrounds and goals, who share a common desire to always be learning and inventing on behalf of our customers.“ 4 The fact is that Amazon is strong as a competitor to many industries, producers, and buyers. But, by comparing with my company they also offer augmented reality experience to their customers. Their prices and products are of something higher quality than IKEA's are. 3 About Smart Furniture, Who we are. Also available at: https://smartfurniture.com.eg/aboutus/#1531139454269-d5f67d7f-7327 4 About Amazon, Building the future. Also available at: https://www.aboutamazon.com/
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2.4.1.4.
Private Brands
The fourth strong competitor is Private brands. When company starts to go global there is always threat of Private brands within countries that are there for years, they are already most wanted and most beloved. However, customers are loyal and many of them have no need to change perspective and commitment to their old company, except new entrant on market is offering something more interesting, new, and more adjustable. It is exactly what AJ Company can offer – more innovative way of looking at furniture products and thus experiencing them. 2.4.1.5.
International Brands
Very last competitor for AJ Company is International brands. As opposed to Private brands, International ones are much demanding and challenging competitors. They are very familiar with market wants and needs. They are more adjustable to customer desires and have bigger scale of offered products. However, many of them do not offer smart furniture nor dialing of products through augmented reality.
2.4.2. Similarities and Differences with Existing Projects in the Market Similarities with existing projects in the market are the fact there are many producers of modern-technology based furniture. It includes robotics build in an furniture (ex: kitchen preparing food with no human), or intelligent tables (ex: table may charge mobile phone, or play radio on touch). Also, there are forced creations of augmented reality within many companies these days where many of them tend to be in line with modern technologies (ex. IKEA place, Amazon augmented reality). The very last important similarity is that they add importance to customer itself – customer is leader in this type of a business, company is follower. However, there are many differences of course. One of them is that big international ventures such as IKEA and Amazon don't posses any real production company, but huge warehouses full of other companies’ brands and then they rename it into their own product, 13
and sell like that. In addition. since they produce almost nothing, if customer requires some specific product that is not on stock it can cause problems, while for manufacturers it represents more work rather than a problem. 2.4.3. Project Competitive Advantage Competitive Advantage of AJ Company is creation of furniture based on customer's desires. It distinguish itself from its competitor by providing a better shopping experience, a new concept of lifestyle, a wider range of product, a simultaneous service which would involve customer’s participation.
3. DIGITAL BUSINESS MODEL A business model describes the value an organization offers to various customers and portrays the capabilities and partners required for creating, marketing, and delivering this value and relationship capital with the goal of generating profitable and sustainable revenue streams
3.1. Main Business Partners 3.1.1. Main Business Partners List Main business partners for profit would be production/manufacturing companies, transportation/delivery companies, big tech companies, investors and designers. 3.1.2. Main Business Partners Description 3.1.2.1. production/manufacturing companies A manufacturing companies make any business that uses components, parts or raw materials to make a finished good. Manufacturing businesses in today's world are normally comprised of machines, robots, computers, and humans that all work in a specific manner to create a product. In addition, such companies are main business partners to almost every other 14
manufacturing or production company as mine is. Also, they are business partners directly to many stores and buyers. Without them production of whole assembly lines would not be possible. For simple example: if company produces tables means company is within wood industry and thus deals only with wood, which means it requires purchase of metal parts from another company that deals with metal. 3.1.2.2. transportation/delivery companies Companies for transportation or delivery are made to complete process of transporting goods from a source location to a predefined destination. In the world of technology and internet, they are still of almost biggest importance for everyone. Additionally, for AJ Company it is impossible to do any business without them. From the starting point customer choose augmented reality creation for his/her place, until it is delivered to him. In other words, company will receive all orders online, and then ship all orders via transportation/delivery companies. There is no other way of delivering product except that way, and company highly depends on transportation/delivery companies. 3.1.2.3. big tech companies Companies that are source of high technology, innovations and robotics are of huge supplier importance for AJ Company. These are not companies like apple, iRobot, 3D printing companies, etc., but smaller companies that supply same thing in a different, jet cheaper way. They are still expensive, but worthy. Moreover, in our e-business company model, they are important for smart homes and/or sensors that are able to identify customer's desired furniture, and thus send it as a request for order. 3.1.2.4. investors An investor is any person or other entity (such as a firm or mutual fund) who commits capital with the expectation of receiving financial returns. Investors rely on different financial instruments to earn a rate of return and accomplish important financial objectives like building retirement savings, funding a college education, or merely accumulating additional wealth over time.5 Without investors, company like mine that is in manufacturing sector, but also deals with augmented reality, robotics, high-tech and smart intersections cannot finance 5 Investor definition, Investopedia. Also available at: https://www.investopedia.com/terms/i/investor.asp
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all by itself. AJ Company highly depends on investors, but is strongly promising in a way that is able to make a great cooperation and returns. 3.1.2.5. designers Designers in a modern world are one type of suppliers and are very important as well. A designer is a person who makes designs for objects. A fashion designer designs clothing, a web designer designs web pages and an automobile designer designs automobiles. In each case, the designer works with the help of a technician or engineer who understands deeper level concepts of manufacturing and engineering and the designer is also largely confined to work at a surface level. Their importance is coming from the fact that there is huge competition on market, and their product will absolutely shrink that competition. Once company starts to offer augmented reality of place others will follow, but with good designers, companies’ products will never become obsolete.
3.2. E-business Model Values Values that we will offer in our e-business model are affordable furniture, renew and improve, giving and taking responsibility, caring for the people and the planet, and togetherness. The values „renew and improve“ and „giving and taking responsibility“ refer to the company's obligations and responsibilities. In addition, „renew and improve“ represents the fact that whatever company is doing today it can do much better tomorrow. In other words, company will going to strive to find solutions not as a source of a problem to be solved, but as a source of inspiration. Regarding other value that refers mostly to a company „giving and taking responsibility“ is related to a fact that company is responsible for all they do – production, sales and delivery. Moreover, this value is based on inspiring everyone to contribute (within and outside the company), and on empowering people in order to help company to grow.
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The values that AJ Company will deliver to it's customers are „affordable furniture“ where company is promising that furniture they are offering is easy to assembly and transport to a customer's required destination. It is also referred to a moto where company wants to include as many people as possible. Which is logical due to a fact that they strive to increase the number of customers, and market share as well. Affordable furniture is everyone's dream, and will be much easier to choose through augmented reality. Also, they don’t have to bother with the transport of the furniture because everything is covered. The next one is „caring for the people and the planet“ that refers to long lasting impact today for the generation to come. Also, company is manufacturing mostly eco-products, meaning they are manufacturing of wood in a least share of an 80%. The other 20% is granted to other materials like glass, metal, etc., that are not necessarily „eco“. This way customers can be of safe thinking they didn’t make damage to a eco-system by buying companies products, but contributing – because once it can be easily recycled. Also, there is less gas expenditure and no time wasting in stores. The value “togetherness” is the last one and strongest one that refers to a customers. It means customers and company should trust each other, they have to follow the same direction, and most importantly they have to have fun together. In my opinion, there is no better thing for both company and its customers to enjoy joint cooperation.
3.3. Key Activities According to Strategyzer, when it comes to the Business Model Canvas, key activities are any activities that your business is engaged in for the primary purpose of making a profit. Business activities include operations, marketing, production, problem-solving, and administration.6 Regarding key activities of our e-business project company, the ones that value prepositions of our model would require are as following: design new products and continuous renewal 6 Key Activities and your business model, Business2community. Also available at: https://www.business2community.com/
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development, services, supply chain management, inventory management, procurement, pushing for delivery through online sales, cost control, manufacturing, marketing, retail stores and city centers shops, and web sales. Also, key revenue stream in my project company is transaction-based revenue of furniture sales. An asset sale is completed when the buyer acquires the assets dropped by a company. An example of an asset sale is when a company sells furniture to a customer. By doing this, the company sells the ownership rights to the buyer, giving him complete freedom over what to do with the furniture bought. After key activities coming key customer relations. That is due to fact that in today's world consumers have more industry influence than they've ever had in the past, allowing them to focus on more than just the product that you're selling them. Consumers are interested in what you're selling them, how you're selling it, and what happens after you've sold it to them. In addition, customer relations describes the ways that a company will engage with its customers to improve the customer experience. In my case it is offered augmented reality itself.
3.4. Key Resources Key resources that our value proposition require are the network effects, platform architecture, brand, app, and infrastructure (online stores, cloud, actual furniture, trucks). However, Distribution channels would be company’s superstores, online stores, website, catalogs, cloud.
3.5. Clients 3.5.1. Main Clients List Client list for our project company would consist of the following:
stage young, single people not living at home
married couples
families
small businesses
cost conscious consumers 18
3.5.2. Main Clients – Detailed Description 3.5.2.1. stage young, single people not living at home This type of clients are mostly students or those who decided to not to live with their parents, families, family homes, etc. the young and single people includes those who are unmarried and do not have any children, as well as same-sex couples, whether or not the couple has children. This type of customers is most interesting in buying fashionable and design furniture and other products as well. Purchase mostly dormitory and small room decorations. 3.5.2.2. married couples Married couples include both new and older married couples. They are of high interest because most of them are thinking of arranging some new place they will be living in. Of course, it doesn't have to be the new place, maybe already existing one, but still ready for new arrangement. Augmented reality will help them to create their place easy and beautiful as possible, while they don't have to be worried about transportation because it is included into overall company offerings. 3.5.2.3. Families Families are pretty similar as married couples, but they are a bit more occupied about their children. In other words, whether there is a new baby coming or they already have children, they will need additional place to be arranged for their loved ones. Company is able to produce any required product made of wood, they just have to imagine it, or choose from the cloud, and set the order. Also, if they want to call company to consult more about products, they are free to do so. 3.5.2.4. small businesses Small businesses make up 99.7% of all companies in the U.S., according to the U.S. Census Bureau. That means that of the 5.73 million businesses in the U.S. as of 2012, 5.71 million were considered small. Companies with fewer than 20 employees comprised 89.6% of all business enterprises and on top of those companies, as of 2013, there were 23 million 19
businesses with no employees at all, meaning the only worker is the owner. 7 There is no so much to add except they are so important for my project company – so many offices that can be arranged or re-arranged. 3.5.2.5. cost conscious consumers These type of clients are important to highlight due to the fact my company is selling allscale-prices products. Meaning that everyone can afford them, they just have to download free app on their mobile phone (everyone today have one) , and then scan their place to be arranged. That's the way this is cheaper way of doing shopping, purchasing, arranging place, and delivering (or receiving delivery). 3.5.3. Markets and Website Language The number of languages my project company will use in the begining is 4 world languages -English, Russian, Chinese and Spanish. German language as one that is not world language but is of high importance in Europe. The starting point would be in European area, so the languages company will use for it's website correspond to ones Europeans uses mostly. Moreover, if company starts to grow other markets will be targeted and higher offered scale of languages will be offered on website and cloud. 3.5.4. Client Registration My company will definitely require registration form. The reason for that is to sign up customers for subscriptions, services, or other programs or plans. Also, it is way of connecting with customer. In my personal example, before I started to use registration forms, I though it is unnecessary step in a process of purchasing. However, from the moment I started to do internet purchasing non-stop, I am glad such steps existing. I feel more comfortable and safer if purchasing when I do registration. It is personal, indeed. 3.5.4.1. Registered Client Benefits It provides clients with information about new products, new discounts, new designs, new open stores, newsletter and all important information that can influence company and 7 Small business, Business Encyclopedia. Also available at: https://www.shopify.hk/encyclopedia/small-business
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clients as well. Also our customer support is available 24 hours in a week if it comes to issues or questions. Registration will include following:
First Name
Last Name
Company Name
Birthday
Password
Confirm password
Card details – in any case of future purchase
All points are obligatory to fulfill except Card details – it can be fulfilled in a moment of purchase.
3.6. Customer Relationships Essentially, customer relationships is about setting the right strategy and technology for your company to create the best possible interactions with existing and potential customers. Getting it right is central to running a functioning business.8 Customer relations co-workers will help people find answers and prevent problems. We want our customers to come back, and the best way to do this is to make each contact with company's positive experience. Whether it is before, during or after a purchase, customers should find our support and services as good as our products. We want them to trust that there is always a satisfactory solution if a problem arises. The way our company will get, keep and grow it’s customers is going to be explained within next few points: 8 5 Brilliant Ways to Optimize Your Customer Relationships, Acquire. Also available at: https://www.google.com/search? q=pdv+id+broj&oq=pdv+id&aqs=chrome.0.0j69i57j0l6.2053j0j8&sourceid=chrome&ie=UTF-8
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Company’s family – it will offer special discounts and offers for loyalty.
Limited on cloud associates – lower costs
Assembly and delivery – for a fee.
Childcare
Manage company image
The way customer relationship is integrated with the rest of business model is going to be of high-quality. In today’s business environment as always, knowledge is the power to give to company an advantage over it's competition. Providing accurate, easily accessible, and timely information between company’s sales team and back-office employees can make the difference between a useful customer relationship management (CRM) system or frustration. Full and easy access to up-to-date customer information will be the rule and will make it affordable and painless for company to make this available to it's team 24/7. In addition, the costs of keeping customer relationships are not going to be so high in a value of money, but will rather require time, patience, intelligence, and optimism.
3.7. Business Channels The channels AJ Company is going to reach its customers are:
Cloud
App
Digital Ads
Company stores website
Email subscriptions
The fact is that in today’s world almost every company reaches both it’s own and competitor’s customers in the same way. The main difference between similar and AJ Company is that our company do not possess physical stores, and thus cannot reach it’s customers via superstores or showrooms. Also, AJ Company do not bother with massive
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printing of catalogs, but we only have online one, while other companies would invest specific amount of money. For AJ Company the best one that works the best so far is digital ads. We are putting them on all social media like instagram, facebook, linkedin, twitter, and other social media sites where people are able to click on ad that leads them directly to our website catalogue. Also, this one is most cost-efficient as well because there is no real costs, only positive time-spending.
3.8. Project Starting Costs There is usual list of costs that are mostly inherent to my business model. The ones that are most important are:
Raw material costs
Manufacturing costs
Advertising costs
Labor costs
Transportation cots
Moreover, the most expensive are production/manufacturing and raw-material costs because they are most capital-intensive. Regarding activities, most expensive one is measurement of process improvement activities.
3.9. Revenue Models 3.9.1. Revenue Models List A revenue model is the strategy of managing a company’s revenue streams and the resources required for each revenue stream.9 The ones important for AJ Company are:
Furniture sales
Services (delivery, assembly)
Ad-Based Revenue
Affiliate revenue (CPA)
9 The 10 Most Popular Startup Revenue Models, Founder Institute. Also available at: https://fi.co/insight/the10-most-popular-startup-revenue-models
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Subscriber data access for e-mail marketing
3.9.2. Revenue Models – Detailed Description 3.9.2.1. Furniture sales This is one of first company’s main sources of revenue. Moreover, the better furniture sales resulting in higher revenue collection. 3.9.2.2. Services (delivery, assembly) Services are next important company’s source of revenue. The thing is that on every delivery and assembly company receives certain fee. Since there are huge numbers of transports on daily basis it resulting in to a huge number of fee collections. The same comes with assembly – the bigger number of orders, the bigger number of collected fees. 3.9.2.3. Ad-Based Revenue Ad-based revenue models entail creating ads for a all of our website, service, app, or other product, and placing them on strategic, high-traffic channels. It is due to a fact our company has a website or is a web-based company. Moreover, making money from ads is one of the simplest and easiest ways to implement revenue models, which is why our company utilize ads as a source of revenue. However, in order to generate sufficient revenue to withhold a business, we will need to attract millions of users. In addition, most people find ads annoying, which can lead to low clickthrough rates, and therefore, lower revenue. 3.9.2.4. Affiliate revenue (CPA) Another popular web-based revenue model is the affiliate revenue model, which works by promoting links to relevant products and collecting commission on the sales of those products, and can even work in conjunction with ads or separately. For example, we use this model to sell products from other similar companies within industry, or cooperate with other companies to create specific product, all for a fee. 24
One of the most obvious benefits of employing an affiliate revenue model is that it generally makes more money than ad-based revenue models. However, the negativity is that usage of it the limit the amount of money company make to the size of industry, the types of products we sell, and audience. 3.9.2.5. Subscriber data access for e-mail marketing The subscription revenue model entails offering our customers a product or service that customers can pay for over a longer period of time, usually month to month, or even year to year. This model can generate recurring revenue, and can even benefit from customers who are simply too lazy to cancel their subscription to your company (which is the dirty little secret of a subscription-based model). However, Because this model depends so much on having a large consumer base, it’s critical to maintain a higher subscribe rate than an unsubscribe rate.
4. DIGITAL TECHNOLOGIES 4.1. Mobile Technologies 4.1.1. Mobile e-business Telecommunication Market for an AJ Company is going to be the main point of company’s business. The way we are going to use it is a way of providing storage area networks, storage products, storage networking services, entry level servers, enterprise networking services, 3G services, calling cards, broadband networks, and application networking services. The growing number of internet users worldwide has been increasing exponentially by the day, and thus, within the telecommunications market, the market for internet-based services is currently thriving and is at its peak. What we are going to implement depends on various factors fueling the growth of the telecommunication market. It includes the advanced technology, intense market 25
competition, and high investments in new telecommunication technologies such as wireless communication and satellite. In addition to this, maintaining security will also pose a challenge. Moreover, the services we actually offer are easier, simpler and faster purchase of your favorite furniture. Plus, the App allows you to sync up everything between the website and your devices. So, if you’re logged in, all your wished and favorited products come with you. In addition, our mobile e-business model is like the app strategy that has so far been experimental and piecemeal. Company offers the app on which actually you are allowed to buy companies' furniture. There is an in-store app that has 3 main divisions – will be explained later in text under „mobile application functionality description“. 4.1.2. Mobile Application for Smartphone Description Mobile application design for AJ Company is simple as possible so to be suitable to all. The app is imagined to be main business connection between customers and the company. Everything that our company is offering, no matter whether products and designs are companies' own or from companies' partners, they are all available on the app. It is so small it fits in customer's pocket. Full of inspiration, ideas and products, the app is a stylist and store all in one. It offers the ability to shop straight from a phone – anytime, everywhere - customer is able to check stock availability and enjoy special offers wherever he/she currently are. Moreover, the usage of the app is simple in deed. Once customer download it, first thing they will have is an offer to have the ability to receive bunch of weekly discounts and other benefits if they subscribe. If they do not subscribe, they will still be able to use the app. But, in this case, if they decide to purchase will not get a discount. That is one way of forcing customers to „be loyal“.
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In addition, the app is completely different from the companies' website, but is of the same importance as website is. Both are as closely related to the mobile e-business model as possible. However, difference between them is in the price. Price of the app is 2$ per month while website is completely free. The reason for 2$ is that it seems to be cheap at first, but it is huge profit for the company in the long term. For example, 2$ times 12 months is 24$ per year just per one user, and if there is 10 users it is 240$ per year, etc. It is cheap in deed regarding the fact that app offers a huge amount of offerings, information. Platform itself is huge as well, and digitalized completely – all new information technology, augmented reality, cybersecurity, etc. at the beginning AJ Company had some debts, but this is type of a business where once company invest, they will have more and more profit. Well, maybe some more investments to improve the app, but the costs are nothing compared to profit. 4.1.3. Mobile Application Functionality Description The mobile application offering 2 main sections - first one is the catalogue part where customer can actually purchase anything from it, while second one represents augmented reality that lets customer preview furniture right in your room. When consumers enter the first section – catalogue - they are offered 4 options:
Offerings
New products
Most popular
Your creation
Under „Offerings“ customers are offered all company furniture and other products offerings. Under „New products“ customers are able to see what is coming and what new entered the app store. Under „most popular“ they can see and compare products that are most wanted among other customers.
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Last one „Your creation“ is part of the app where customers are able to create product they want, or upload the scheme of the product they desire the most and thus send the request to the company for making it. After calculation, company is going to reply whether it is possible to make, how long it takes to be finished, what would be the price and when is approx date of delivery. Then it's turn on customer to decide is it worthy or not to wait and pay for a desire. Furthermore, the second section of the app - Augmented reality section- is offering:
Collections
Categories
Room sets
Each of them will be explained within next part of the project section: „Graphic of Mobile Application Functionality“.
It is created to let customers to preview furniture within their place. Once customer make a click on augmented reality section, first thing that is required from him/her is an app's access to customers' camera. Once customer confirm, there is a notification about privacy policy. In other words, the app explaining about how company's privacy policy describes about how the app manage customer private data and how it uses data. If customer wants to know more about it, he/she is able to continue with reading. In opposite case customer has to confirm he/she agrees with privacy policy and he/she has read all of them. Then the action begins. The customer's task then is to choose any object from the store, and then place it anywhere in the room. Camera moves around, and thus the chosen object does. For example: if customer has chosen a chair and placed it next to his/her tv in the room, then he/she is able to move a phone toward a chair (it becomes larger on camera), or move it away from a chair (it becomes smaller on camera). Also, customer is able to see a chair from every and each angle, change the color and the size of a chair, and finally decide whether to put it into basket or not. Once a chair is in the basket, customer is able to either continue shopping, or continue to make a payment, or cancel the purchase. 28
4.1.4. Graphic of Mobile Application Functionality Here is visual representation of how AJ Company mobile application looks like. Figure 1. 1 Collections It showing the very starting point once customer enter the augmented reality part of the app. First thing customer can notice is what he/she can browse - it is the same as in catalogue part. But, in this case are collections, categories and room sets so customers are able to have better picture of what is offered.
Figure 1. 2 Room sets Here are literally offered as room sets for every part of a house, apartment or the office. Here can be found sets as „A space to relax“, „Calm & Comfortable“, „Home office“, etc.
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Figure 1. 3 Categories Here customers can find specified products for every part of the place they want to arrange. Here can be found categories as „Sofas“, „Armchairs“, „Dining tables“, „Outdoor“, etc.
Figure 1. 4 Within Outdoor Once customer enter „outdoor part“ (as shown in picture 3) it open the set of products, their descriptions and prices under same section.
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Figure 1. 5 Offered products this showing how it looks like when customer click on some of offered product. For this project, our company decided to show it on example of our „AJ brown brown stained sun lounger“ with the price of 150 euros. If they like the product, customers are able to click on small blue hart on the lower left corner above name of the chair. Once they click they like it, it will immediately be saved as one of their „favorite“ products, and thus they can find it in the same-name section. There is also blue circle on the lower right side, under which stands all-directions-cube. Once customer make click on it, it will show augmented reality of the „AJ brown brown stained sun lounger“ within customer desired place. Also, it can be rotated and moved in any direction, and zoomed and distanced as well. Figure 1. 6 Offered products extension This is basically the extension of the picture five. In other words, when customer scrolls-down on screen below „AJ brown brown stained sun lounger“ they will find some offered products by AJ company to customer based on his/her previous searches or likes.
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Figure 1. 7 Using camera This showing what happens when customer decide to check how „AJ brown brown stained sun lounger“ fits his/her balcony. Once camera opens, customer will se white circle moving around together with movements of camera. Then they can click on white-confirm-circle, on the bottom centered part of a camera.
Figure 1. 8 Product representation This showing how „AJ brown brown stained sun lounger“ is presented in an augmented reality of customer’s balcony. From this point on, customer is able to rotate and move it in any direction, and zoom and distance camera as well.
Figure 1. 9 Product rotation This is showing the same as picture eight does. The difference is in the opposite corner of holding a camera. 32
Also, in this picture can be seen white circle below the „AJ brown brown stained sun lounger“. It represents the fact that chair is still in the decision where and how to place it on the balcony.
Figure 1. 10 Final position This is representing final version of customer decision. He/she decided to put the „AJ brown brown stained sun lounger“ this way. From this point on, customer is able either to put item into basket to save it, and purchase it immediately or some other day, or continue with more purchase, or discard everything and exit the app.
4.1.5. Mobile Advertising Mobile advertising is a type of advertising that appears on mobile devices such as smartphones and tablets that have wireless connections. As a subset of mobile marketing,
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mobile advertising can take place as banner advertisements that appear embedded in a mobile web site, in downloaded apps or mobile games.10 Mobile technology used by „AJ Company“ adjust mobile advertisements based on an individual's web browsing history, geographic location, and data collected by his/her shopping habits. Because mobile devices typically have smaller screens than computers or laptops, this form of digital advertising is usually optimized for small displays by being concise. Our Mobile advertising also works together with mobile marketing, which uses personal data collected and technology (such as location services) to personalize ads based on user preference, habits, or location.
4.2. Social networks „AJ Company“ is a part of two social networks – Linkedin and instagram. Linkedin for business purposes, instagram for customer connecting purposes. Below are pictures and links that are showing linkedin and instagram profiles.
Figure 2. 1 Linkedin profile
10 Mobile advertising, Investopedia. Also available at: https://www.investopedia.com/terms/m/mobileadvertising.asp
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Source: Creator of this project Link: https://www.linkedin.com/in/aj-company-03b5051a5/
Figure 2. 2 Instagram profile 35
Source: Creator of this project Link: https://www.instagram.com/aj.company.1/
4.3. Cloud computing Cloud computing is the on-demand delivery of IT resources via the internet, with pay as you go pricing. Instead of buying, owning and maintaining physical data centers and servers we have accessed technology services, such as computing power, storage and databases, on an as needed basis from a cloud provider. Our company are using the cloud for a wide variety of use cases, such as data backup, disaster recovery, email, virtual desktops, software development and testing, big data 36
analytics, and customer facing web applications. For example, we are using the cloud to power real-time fraud detection and prevention. With cloud computing our business have become more agile, costs were decreased, and we deployed globally in minutes. Cloud computing gave us instance access to a broad range of technologies so we were able to innovate faster and built nearly anything we imagined from infrastructure services such as compute, storage and databases, to Internet of Things, machine learning, data analytics, and much more. Moreover, we have deployed technology services in a matter of minutes and implemented several orders of magnitude faster than before. This gave us the freedom to experiment and test new ideas to differentiate customer experiences and transform our business, such as (adding machine learning and intelligence) to our applications in order to personalize experiences for our customers and improve their engagement. With cloud computing we access resources from the cloud in real time as they're needed. We scaled these resources up and down to grow or shrink capacity instantly as your business needs change. Cloud computing also makes it easy to expand to new regions and deploy globally in minutes. For example, our aim is to make huge infrastructure at as many destinations as possible so customers are able to deploy their application in multiple locations in just a few clicks. Putting applications in closer proximity to end users reduces latency and improves their experience. The cloud frees us from managing infrastructure and data centers so you can focus on what matter most to your business.
4.4. Big Data AJ Company collect data from a variety of sources, including business transactions, smart (IoT) devices, industrial equipment, videos, social media and more. The same data comes in 37
all types of formats – from structured, numeric data in traditional databases to unstructured text documents, emails, videos, audios, stock ticker data and financial transactions. With the growth in the Internet of Things, data streams in to businesses at an unprecedented speed and must be handled in a timely manner. Sensors and smart meters are driving the need to deal with these torrents of data in near-real time. The AJ Company constantly trying to analyze big data to find answers that enable: cost reductions, time reductions, new product development and optimized offerings, and smart decision making. We also strive to combine big data with high-powered analytics, so that we can accomplish business-related tasks such as: -
Determining root causes of failures, issues and defects in near-real time.
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Recalculating entire risk portfolios in minutes.
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Detecting fraudulent behavior before it affects our organization.
4.5. Sensors and Internet of Things (IoT) Simply put, this is the concept of basically connecting any device with an on and off switch to the Internet (and/or to each other). The IoT is a giant network of connected "things" (which also includes people). However, AJ Company uses IoT in a way it offers to connect their furniture and other products with customers. Our company is able to produce smart furniture or organize complete smart-home if customers require it. In that case, company is putting sensors and other high technology to be flexible for our customers' home. For example, if customer is not at home, he/she can unlock the doors to friends for temporary access. Or, another example, smart table with alarm clock in it will start to be activated once customer announces it he/she is ready for sleep. Then alarm knows customer wakes up at 6 a.m. and then notifies his/her coffee maker to start brewing coffee for him/her. Of course, everything is connected via wi-fi and customer is able to turn it off whenever he/she wants.
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4.6. 3D Printers 3D Printers are of high importance for our company. All elements that cannot be produced with standard manufacturing machines, or elements that are highly challenging, are produced with 3D printer. In other words, 3D printing is the opposite of subtractive manufacturing which is cutting out / hollowing out a piece of metal or plastic with for instance a milling machine. Also, 3D printing enables AJ Company to produce complex shapes using less material than traditional manufacturing methods. It all starts with a 3D model. We create required one, then we can choose to use a or 3D scanner or 3D modeling software to produce what is required. For example, if library wants us to decorate place in a wavy way with many challenging details, 3D printer would be of the best choice for help to complete some parts or even overall project (depending on how hard to produce it is).
4.7. Robotics AJ Company is dependent on a robotics. It is the key of the overall manufacturing processes. Every element made for table, chair, kitchen element, or some other element is created with robotics. In addition, all the planks, elements, logs and other are cut and shaped by robots. For example, once log enters the manufacturing it is sliced on several parts that are later distributed for production of goods. Of course, humans manage machines and robots, but robotics is the base. Each millimeter is important in such process and thus it is the reason robots doing most of a job, while humans are here just to oversee, monitor, and supervise needed.
4.8. Drones AJ Company managers were thinking about using drones for some small-parts delivery processes. But it was rejected immediately because it is not safe and profitable. However, they use some of them only as „moving cameras“ just so supervising is easier and less time 39
consuming. For example, since drones are equipped with cameras and sensors, it can detect one of the machines or robots is overheated so it requires to be checked to not cause mistakes in making process or in worst case fire.
4.9. Virtual and Augmented Reality Virtual and Augmented Reality are the drivers and basis of AJ Company. Above in the text are explained all details about our app and augmented reality options it offers. Augmented reality powering our business considering the fact it is the starting point of our sales, and thus customers' purchasing. AJ Company closely follows the latest technology trends. Augmented Reality (AR) is one of them. Augmented Reality is a technology that superimposes a computer-generated image on a user’s view of the real world, thus providing a composite view. This technology and AJ Place app provides a composite view for the brand. From the customer’s point of view, it’s really helpful for a customer for only seeing the catalogue and couldn’t imagine how the furniture will look and fit in their homes. Virtual Reality (VR) technology already using for entertainment purpose and game content creation. AJ Compan's unique virtual experiences take customers to an unforgettable journey. Customers accessing the VR technology and try kitchen before buying it and even cook there! This kind of virtual experiences attracts so much attention and creates so much buzz around the brand. AJ Company uses VR technology for being closer to the customers and gaining their loyalty.
4.10.
Artificial intelligence
By now AJ Company had no need to use or implement Artificial Intelligence. But, we are considering implementing due to customers and partners need for it. In other words, all questions our company is getting on daily basis, all orders and all requests would be answered by AI system. Our app would have the touch-button in it where customer can say or write whatever he/she wants to ask for, and will get the answer immediately – regarding price, availability of a product, ability of a company to produce specially-required product, which material will be used for production of that product, which color, help to find new 40
product product, help to find cheapest product product, etc. Also, it would be more like „siri“ system in an mobile phone app so our customers would never get bored while using the app.
5. DIGITAL MARKETING 5.1. Project Marketing Plan Under this section will be explained:
Web Banners
Blogs
News Groups
Mailing lists
Sponsorships
Link Strategies
Affiliate Marketing
Search Engine Optimization SEO
5.1.1. Advertising online using banners AJ Company has innovative banner usage. Usually, brands apply maximum five products to a single banner box but, AJ's innovative website banner concept exceeds this product limit. They have more than 2.800 product on their 300 x 251 pixel banner. This gives a message to customers that even if they have small living spaces, AJ Company always provides a creative solution with its piece of furniture. 5.1.2. Blogs Blogs create a community of likeminded people and indirectly promote the products and services by building brand awareness and building a buzz around the products. AJ Company created blog as an online life-at-home. We believe that home is the most important place in the world. That’s why we meet people where they live, to learn about what they need and dream about when it comes to life at home. Also, customer can stay up to date with all the latest news and stories so we are able to help make the most of their life at home. We are publishing all news and all products we are creating, and customer's experiences as well. 41
Also, since social media growing rapidly, we are placing paid ads, promoted posts or sponsored stories because these are a popular way to reach more of the demographic of the company, without paying a bundle. 5.1.3. News Groups A newsgroup for AJ Company is like a discussion group that focuses one of a variety of our most interesting topics. These newsgroups are part of a worldwide network of discussion groups called Usenet. These groups by us are represented as online bulletin boards, where people can start discussions related to the topic and others can engage in these discussions. Moreover, our newsgroups aren’t run by a single entity (ex. On facebook) and are more “owned” by AJ Company. This means that they aren’t commercialized and are often unmoderated. Newsgroups are arguably the most important part of the Usenet System. 5.1.4. Mailing lists Buy signing in, our customers are getting AJ Catalogue! AJ Company send out a weekly e-mail newsletter to registered site members that offers tips and news related to our company or industry with links back to our site. In other words, mailing list is broadcasting our newsletters, keeping our prospective customers informed about the sales, promotions and online fliers too. It also announce new products and offering new discounts and exclusive previews. Several search providers build mailing directories and provide services of distributing promotional materials and emails for clients. Moreover, our software are also used to build mailing lists and directories of email addresses and interested users. The example of our mailing list is presented below on figure 3.1.
Figure 3. 1 AJ Company – Mailing list
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Source: Created by writer of this project
5.1.5. Sponsorships Sponsorships are an effective way to develop greater brand impact because we can capitalize from an existing community and associate our brand with fresh content. For example, by customizing our sponsorships to specific areas such as volleyball match or for specific messages such as „Create for yourself with AJ help“, we are creating an excellent platform to communicate our products and services.
5.1.6. Link Strategies We are offering free content to other sites. It's a win-win situation: The other site gets free articles to beef up their offerings and we get a link back to our site and the cachet of being an expert. For example, we doing that with our partners and/or designers. So, we literally created our own link exchange by asking designers (but those who don't compete but cooperate) to put our link on their pages and we are doing likewise.
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5.1.7. Affiliate Marketing AJ Company uses affiliate marketing through influencers mostly to perform a particular outcome. We are giving to online influencers a chance to promote our product for a fee. For example, If any of our influencers generates sales on our website, we are sharing a percentage of revenue with them. Since we have a lots of products, this process is our best choice and is time and cost effective for us as well.
5.1.8. Search Engine Optimization To gain a higher rank in search engine results, we as a advertisers use various SEO tactics, such as linking, targeting keywords and meta descriptions and creating high level content that other sites will link to. Since SEO is organic it making it a sought out type of online advertising. Moreover, We used Google AdWords search engine promotion as decribed below in the text.
5.2. Google AdWords 5.2.1. Target market For AJ Company, first thing we chose while creating Google AdWords was destinations where our company will be running. For start we have decided it will be Europe only until it becomes overseas company. The countries are: Croatia, Italy, Germany, Austria, Switzerland, Spain, France, Netherlands, Belgium, UK, Ireland, Norway, Sweden, Finland, and Denmark.
5.2.2. Client Language Choosen language is English.
5.2.3. The size of the possible audience People – 20.907.098 users per month This is an estimate of the number of users searching for businesses similar to ours in the locations we have selected. The size of the audience does not affect the cost.
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5.2.4. Keywords Keyword themes make it easy to match our ads to Google searches. Our Keywords are: virtual reality, virtual reality apps, virtual reality apps for iphone, augmented reality, augmented reality companies, augmented reality app, augmented reality android, augmented reality iphon, manufacturer, furniture online, furniture manufacturer, furniture online, modern furniture, office furniture, home furniture, furniture maker, furniture stores, and outdoor furniture.
5.2.5. Google Ads Textual Ad Figure 3. 2 AJ Company - Google Ads
Source: https://ads.google.com/
5.2.6. Campaign settings URL address: www.AJCompany.com Maximum daily budget for promotion Campaign is 100 HRK on daily average. Max. HRK 340 per month. 45
Reach an estimated 50,250 - 83,840 users and get 670 - 1,130 monthly clicks on our ad.
Figure 3. 3 AJ Company - Campaign settings
Source: https://ads.google.com/
5.2.7. Newsletter Figure 3. 4 AJ Company - Newsletter
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Source: Created by writer of this project
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5.2.8. Traditional Promotion Types Regarding traditional promotion types, our company is using only Business Cards and The boxes in which the products are shipped. Business cards we are using for business meetings with partners mostly, while the boxes in which the products are shipped are used when products are shipped to a customers. That way we are keeping our partners and customers loyal to us.
5.3. Social Networks Advertising In its early days, social media considered to be a passing fad, a distraction to be avoided. But today, it’s almost an essential part of our daily lives. Each of the social media channels has a high potential for companies and businesses to meet consumers. AJ Company does it very well. They post discounts, promotions, giveaways, news and events on Facebook, Instagram, Twitter and Linkedin. They’re responsive to their followers and quickly returns for any customer for the complaints. Moreover, since social networking websites allow individuals to interact with one another and build relationships, our promotion message spreads from user to user and presumably resonates because it appears to come from a trusted, third-party source, as opposed to the brand or company itself. Hence, this form of marketing is driven by word-of-mouth, meaning it results in earned media rather than paid media.
5.4. Marketing Plan Table
No.
Promotion Type
Promotion Web Address
Promotion Period
Costs
Promotion Description 48
1.
COUPONS
Email, App
2.
LOYALTY PROGRAM
3.
ADVERTISING
4.
SALES PROMOTIONS
5.
PUBLICITY
Social media, email, App, other sites Social media, email, App, other sites -
weekly
Free
weekly
Free
Non-stop
Free
Sending coupons on email and as banners to the customers Sending special offers and discounts to the loyal customers Sending our catalogue or newsletter on all promotional web addresses
weekly
Free
Sending our catalogue or newsletter on all promotional web addresses
Non-stop
free
It is type of word-of-mouth which doesn't require much of company's interaction
6. DIGITAL PAYMENT METHODS 6.1. Digital Payment Methods List AJ Company offering these options for payment:
Banking cards
Mobile Wallets
Internet Banking
Mobile Banking
USSD
6.2. Digital Payment Methods Description
Banking cards - Cards are among the most widely used payment methods and come
with various features and benefits such as security of payments, convenience, etc. The main advantage of debit/credit or prepaid banking cards is that they can be used to make other types of digital payments. 49
For example, customers can store card information in digital payment apps or mobile wallets to make a cashless payment. Some of the most reputed and well-known card payment systems are Visa, AmericanExpress and MasterCard, among others. Banking cards can be used for online purchases, in digital payment apps, PoS machines, online transactions, etc.
Mobile Wallets - A mobile wallet is a type of virtual wallet service that can be used
by downloading an app. The digital or mobile wallet stores bank account or debit/credit card information or bank account information in an encoded format to allow secure payments. One can also add money to a mobile wallet and use the same to make payments and purchase goods and services. This eliminated the need to use credit/debit cards or remember the CVV or 4-digit pin.
Internet Banking - Internet banking refers to the process of carrying out banking
transactions online. These may include many services such as transferring funds, opening a new fixed or recurring deposit, closing an account, etc. Internet banking is also referred to as e-banking or virtual banking. Banks offer customers all types of banking services through their website and a customer can log into his/her account by using a username and password. Unlike visiting a physical bank, there are to time restrictions for internet banking services and they can be availed at any time and on all 365 days in a year.
Mobile Banking - Mobile banking is referred to the process of carrying out financial
transactions/banking transactions through a smartphone. The scope of mobile banking is only expanding with the introduction of many mobile wallets, digital payment apps and other services like the UPI. Many banks have their own apps and customers can download the same to carry out banking transactions at the click of a button.
USSD - Another type of digital payment method, can be used to carry out mobile transactions without downloading any app. These types of payments canalso be made with no mobile data facility. 50
The main aim of this type of digital payment service is to create an environment of inclusion among the underserved sections of society and integrate them into mainstream banking. This service can be used to initiate fund transfers, get a look at bank statements and make balance queries.
6.3. Blockchain technologies Blockchain technology provides fast, secure, and transparent peer-to-peer transfer of digital goods that include money and intellectual property. In crypto coin mining and investing, blockchain technology is an important topic to understand. We are considering implementing Blockchain technologies because Blockchain has come to the forefront of many discussions because of its role in the distribution of cryptocurrencies such as bitcoin. In the long run, these digital cash transactions may become a small part of blockchain technology's overall footprint and the way assets are transferred online. The possibilities for blockchain implementation seem endless, as its underlying technology can be leveraged in many fields to perform some important tasks and more such as it would allow our company to revolutionize internal processes, and would stimulate double-spending as well.
7. SWOT ANALYSIS AJ Company's SWOT analysis is described below in Table 1. A SWOT analysis guides us to identify the positives and negatives inside of our organization (S-W) and outside of it, in the external environment (O-T)
STRENGHTS Long-term relationships Aims to create better life No tolerance for wastage of resources Constantly innovating for low cost
WEAKNESSES Balance between keeping low prices while maintaining good quality No physical store, so products not accessible right away 51
Smart marketing Self-assembled furniture Augmented reality OPPORTUNITIES
Strategic partnership with other brands Environment friendly Consumer's cost-conscious behavior Online sales
THREATS
Increasing competitive pressure from the rival brands Recession and economic crises
8. PROJECT WEBSITE 8.1. Web Hosting AJ Company for creation of it's website chose Virtual Dedicated server also known as a Virtual Private Server (VPS), divides server resources into virtual servers, where resources can be allocated in a way that does not directly reflect the underlying hardware. In addition, AJ Company uses Bluehost's Virtual Dedicated Server. Bluehost has all the website tools and expert support you need to make a powerful first impression. It's virtual private servers are built from the ground up using all SSD storage. AJ Company can enjoy increased power, flexibility, and control for it's websites. Moreover, it uses Ultimate plan which is more expensive one, but most useful and profitable. It costs 54.42 euros per month and offering 4 cores, 120 GB SSD Storage, 8 GB RAM, 3 TB Bandwidth, and 2 IP addresses. VPS will often be allocated resources based on a one server to many VPSs relationship, however virtualization may be done for a number of reasons, including the ability to move a VPS container between servers. The users may have root access to their own virtual space. Customers are sometimes responsible for patching and maintaining the server.
8.2. Web Domains AJ Company have been using .hr domain – for legal persons and private individuals that are engaged in an independent business activity. A free .hr domain can be registered by:
legal entities (trading companies, associations, political parties and other organizations with legal existence) registered in the Republic of Croatia 52
private individuals engaged in an independent business activity in the Republic of Croatia (craft workers, artists, doctors etc.)...
Each user is entitled to only one free domain!
We think it is the best domain because it is free and is available to everyone within Croatia and abroad. Also, Most top-level domains today are so-called country-code top-level domains (ccTLD), which are granted to particular institutions within certain countries in order to take care of the organization and management of the national domain name system, i.e. the registration and activation of second-level domains within those top-level domains. As opposed to the general (global) domains, whose management can be based only on some global (e.g. market) principle, national domains are the basic element of the national wealth and sovereignty of every country, the basis of its recognizability in the virtual world, and this is why the management and use of these domains imply a high level of responsibility and respect for the different interests of all interested parties. To make a request about domain, I needed to enter all personal data – Name, Surname, User type (I have chosen Private individual engaged in an independent business activity), Tax number (OIB), Company name, and email. After I sent request, I got message as shown below on figure 4.1. Figure 4. 1 AJ Company – Domain confirmation
Source: https://domene.hr/
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Also AJ Company received confirmation mail that domain is approved as shown below in picture 18.
Figure 4. 2 AJ Company – confirmation mail
Source: Created by author of this project
8.3. Content Management System (CMS) 8.3.1. Possible CMS for Project CMS examples that are suitable for AJ Company are:
Globaldizajn (http://www.globaldizajn.hr/default.aspx?id=1456) - Globaldizajn is a company with many years of experience in web design, web site design and programming not only various types of websites, but also mobile applications for leading Croatian and international companies as well as government institutions. 11
Adobe Dreamweaver (http://www.adobe.com/products/dreamweaver.html? promoid=KAUCF) – Their game-changing innovations are redefining the possibilities of digital experiences. They connect content and data and introduce new
11 About Globaldesign. Also available at: http://www.globaldizajn.hr/default.aspx?id=1456
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technologies that democratize creativity, shape the next generation of storytelling, and inspire entirely new categories of business.12
Wordpress (https://wordpress.org/) - It remains the most widely used content management system on the web, so it would be crazy to list the most popular CMS tools without a mention of WordPress. WordPress offers a quick and simple installation, when done manually. Many web hosts (like Bluehost) offer automated, one-click installation. The vast developer community has collaborated on creating and offering feedback for an unparalleled collection of plugins, enhancements, and themes. Most of these are free; some are paid.13
Drupal (http://drupal.org) - Drupal is content management software. It's used to make many of the websites and applications you use every day. Drupal has great standard features, like easy content authoring, reliable performance, and excellent security. But what sets it apart is its flexibility; modularity is one of its core principles. Its tools help you build the versatile, structured content that dynamic web experiences need.14
Timal (http://www.timal.net/cms.html) - Timal is a web page design firm that's ready to meet your web page needs. We specialize in designing quality web pages for those with varied interests, either commercial or amateur. Timal is specialized in offering internet services, web pages design and promotion of the utter. 15
8.3.2. Best CMS for Project – Description The best CMS for AJ Company would be Worldpress. It is due to a fact that It remains the most widely used content management system on the web, so it would be crazy to not use that one. The best characteristics it has are it is free and open source, scalability, endless plugins, open source, easy to use, constant updates, it offers infinity of themes, responsive design, it is good for e-Commerce, ready for SEO, and has quick installation process. 12 About Adobe Dreamweaver. Also available at: https://www.adobe.com/about-adobe.html? promoid=2NVQCDBQ&mv=other 13 About Wordpress. Also available at: https://www.makeuseof.com/tag/10-popular-content-managementsystems-online/ 14 About Drupal. Also available at: https://www.drupal.org/about 15 About Timal. Also available at: http://www.timal.net/about_us.html
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Regarding costs, AJ Company would take the Business site which costs from 5.000 to 15.000 euros. WordPress is free for anyone to download and use. It is an open source software which gives you the freedom to install it on any kind of website. But, there are costs for using it. To create a self hosted WordPress site, we needed web hosting to store our files. Every website on the internet needs hosting. This is our website’s home on the internet. However, our business site offers 5-15 page templates, additional functionality, and creative custom design. 20% of that goes on design and content, 20% on management and 20% on development.
8.4. Website Prototype 8.4.1. Project Website Structure AJ Company’s website is created via Google sites. Website’s structure is as follows:
Homepage
AJ App
Sofas
Beds
Chairs
Outdoor
Categories
New
Contact
About Us
Customer’s profile
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Figure 5. 1 AJ Company Website - Homepage
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Source: https://sites.google.com/d/15hoI5OP6cikxfkMBzism4ZAuIqkVJpB/p/1T8dLcQlcgiIBxl0BPbeU1o0wHwGJC2zs/edit? userstoinvite=anajelcic.28%40gmail.com&actionButton=1&pli=1&authuser=1
Figure 5. 2 AJ Company Website – AJ App 58
Source: https://sites.google.com/d/15hoI5OP6cikxfkMBzism4ZAuIqkVJpB/p/1T8dLcQlcgiIBxl0BPbeU1o0wHwGJC2zs/edit? userstoinvite=anajelcic.28%40gmail.com&actionButton=1&pli=1&authuser=1
Figure 5. 3 AJ Company Website - Sofas 59
Source: https://sites.google.com/d/15hoI5OP6cikxfkMBzism4ZAuIqkVJpB/p/1h50pMTsqCaRzVfcwxB5vntl0JHGM799t/edit? userstoinvite=anajelcic.28%40gmail.com&actionButton=1&pli=1&authuser=1
Figure 5. 4 AJ Company Website - Beds
Source: https://sites.google.com/d/15hoI5OP6cikxfkMBzism4ZAuIqkVJpB/p/1z2Slt8WeBvy0ea7h7G2-4cnFYBMx3zeQ/edit? userstoinvite=anajelcic.28%40gmail.com&actionButton=1&pli=1&authuser=1
Figure 5. 5 AJ Company Website - Chairs 60
Source: https://sites.google.com/d/15hoI5OP6cikxfk-MBzism4ZAuIqkVJpB/p/1ih3BoqFBAPCsQGRK6liFzXVdfrz_974/edit? userstoinvite=anajelcic.28%40gmail.com&actionButton=1&pli=1&authuser=1
Figure 5. 6 AJ Company Website - Ourdoor
Source: https://sites.google.com/d/15hoI5OP6cikxfkMBzism4ZAuIqkVJpB/p/1f5IWFPI4hiTpSV4axPNApj79e39kCpF4/edit? userstoinvite=anajelcic.28%40gmail.com&actionButton=1&pli=1&authuser=1
Figure 5. 7 AJ Company Website - Categories
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Source: https://sites.google.com/d/15hoI5OP6cikxfkMBzism4ZAuIqkVJpB/p/1stKH1amsYRsniHz6KPEU2sUtMFg47-F-/edit? userstoinvite=anajelcic.28%40gmail.com&actionButton=1&pli=1&authuser=1
Figure 5. 8 AJ Company Website - New 62
Source: https://sites.google.com/d/15hoI5OP6cikxfk-MBzism4ZAuIqkVJpB/p/1W119epgEAYT1tWIKellTcGcy79tFWMS/edit? userstoinvite=anajelcic.28%40gmail.com&actionButton=1&pli=1&authuser=1
Figure 5. 9 AJ Company Website - Contact
Source: https://sites.google.com/d/15hoI5OP6cikxfkMBzism4ZAuIqkVJpB/p/1VzeyTYa_S_1vvzeic7pPQ9F3mfNXKfKx/edit? userstoinvite=anajelcic.28%40gmail.com&actionButton=1&pli=1&authuser=1
Figure 5. 10 AJ Company Website – About Us 63
Source: https://sites.google.com/d/15hoI5OP6cikxfkMBzism4ZAuIqkVJpB/p/1C9cg0GgGy_iAjTVj1V559dIox2EwxzaR/edit? userstoinvite=anajelcic.28%40gmail.com&actionButton=1&pli=1&authuser=1
Figure 5. 11 AJ Company Website – Your Profile and Registration form for Website visitors
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Source: https://sites.google.com/d/15hoI5OP6cikxfkMBzism4ZAuIqkVJpB/p/1C9cg0GgGy_iAjTVj1V559dIox2EwxzaR/edit? userstoinvite=anajelcic.28%40gmail.com&actionButton=1&pli=1&authuser=1
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8.4.2. Project Website Sitemap Figure 6. 1 Project Website Sitemap
Source: https://drive.google.com/file/d/186oFS-i11iGwr6XvVkSfYfauIsDNNs9f/view
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8.4.3. Project Lucidchart diagram Figure 6. 2 Project Lucidchart diagram
Source: https://app.lucidchart.com/documents/edit/d3956f9c-299e-4f6c-a501f90a5e1ec95c/YGcM5DNywbTK?referringApp=google+drive&beaconFlowId=1c3a19bf694e0dc4
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8.4.4. Project Website Structure Description So, there are 10 web pages in hierarchical order . Each of them provides customers with all necessary information. Firstly, The “Homepage” is offering most important information for the customers. In the next page there is all about “AJ App”, how to use it, what it offers, etc. Within “Sofas”, “Beds”, “Outdoor”, and “Chairs” sections there is all about same-name products that are currently available and those that can be potential products in the future It is small presentation of huge range of similar sections that can exist on the web page. Then there are “Categories” page responsible for offering furniture created only for either kitchen, or bedroom, or bathroom, or living room, or similar. Then there is “New” section offering all newcomer products and furniture such as smart tables or beds. Three last sections are “Contact”, “About Us” and “Your profile”. Under Contact are contact addresses, some social media web addresses, mail, and contact number for our support service. Under “Your profile” customers can reach their shopping basket and order products or furniture, and follow their shipment as well.
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9. CONCLUSION Augmented reality is created to add information and meaning to real object and place. Unlike virtual reality, augmented reality does not create simulation of reality, but it augments the reality or mix the Virtual with Real. Also, AR will further blur the line between what's real and what's computer-generated by enhancing what we see, hear, feel and smell. The goal is to make a system that will be so efficient that the user will not be able to tell the difference between the real world and the virtual augmentation. It has possibilities beyond our imagination and perception. It will have huge applications in almost every field. At the end, for this project AR was starting point that reflected on any place scheduling. Idea was to make a company that has no physical store, or at least does not depend on them. In today's world everything is possible, so why this would not be? The final conclusions are as follows: Cloud computing and processing and smart environment as well, could be enabling concepts for AR. Miniaturization of devices leads to increasing opportunities. Mobile phone is one of the most promising device, and other display techniques could become predominant.
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10. BIBLIOGRAPHY 1. Definition of Augmented reality, Interaction Design fundation. Also available at: https://www.interaction-design.org/literature/topics/augmented-reality 2. What is competitor, BusinessDictionary. Also available at: http://www.businessdictionary.com/definition/competitor.html 3. About Smart Furniture, Who we are. Also available at: https://smartfurniture.com.eg/about-us/#1531139454269-d5f67d7f-7327 4. About Amazon, Building the future. Also available at: https://www.aboutamazon.com/ 5. Investor definition, Investopedia. Also available at: https://www.investopedia.com/terms/i/investor.asp 6. Key Activities and your business model, Business2community. Also available at: https://www.business2community.com/ 7. Small business, Business Encyclopedia. Also available at: https://www.shopify.hk/encyclopedia/small-business 8. 5 Brilliant Ways to Optimize Your Customer Relationships, Acquire. Also available at: https://www.google.com/search? q=pdv+id+broj&oq=pdv+id&aqs=chrome.0.0j69i57j0l6.2053j0j8&sourceid=chrome&ie=UTF8 9. The 10 Most Popular Startup Revenue Models, Founder Institute. Also available at: https://fi.co/insight/the-10-most-popular-startup-revenue-models
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10. Mobile advertising, Investopedia. Also available at: https://www.investopedia.com/terms/m/mobile-advertising.asp 11. About Globaldesign. Also available at: http://www.globaldizajn.hr/default.aspx?id=1456 12. About Adobe Dreamweaver. Also available at: https://www.adobe.com/aboutadobe.html?promoid=2NVQCDBQ&mv=other 13. About Wordpress. Also available at: https://www.makeuseof.com/tag/10-popularcontent-management-systems-online/ 14. About Drupal. Also available at: https://www.drupal.org/about 15. About Timal. Also available at: http://www.timal.net/about_us.html
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11. LIST OF WEB LINKS Linkedin: https://www.linkedin.com/in/aj-company-03b5051a5/ Instagram: https://www.instagram.com/aj.company.1/ Facebook: https://www.facebook.com/ Google Ads: https://www.ads.google.com/ Mobile Application: https://www.apps-builder.com/ Domain: https://domene.hr/ Official Website: https://sites.google.com/d/15hoI5OP6cikxfkMBzism4ZAuIqkVJpB/p/1T8dLcQlcgiIBxl0BPbeU1o0wHwGJC2zs/edit? userstoinvite=anajelcic.28%40gmail.com&actionButton=1&pli=1&authuser=1 Website Sitemap: https://drive.google.com/file/d/186oFSi11iGwr6XvVkSfYfauIsDNNs9f/view Lucidchart Diagram: https://app.lucidchart.com/documents/edit/d3956f9c-299e-4f6c-a501f90a5e1ec95c/YGcM5DNywbTK? referringApp=google+drive&beaconFlowId=1c3a19bf694e0dc4
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12. LIST OF FIGURES FIGURE 1. 1 COLLECTIONS.......................................................................................................................................... 30 FIGURE 1. 2 ROOM SETS............................................................................................................................................ 30 FIGURE 1. 3 CATEGORIES............................................................................................................................................ 31 FIGURE 1. 4 WITHIN OUTDOOR.................................................................................................................................. 31 FIGURE 1. 5 OFFERED PRODUCTS................................................................................................................................. 32 FIGURE 1. 6 OFFERED PRODUCTS EXTENSION................................................................................................................. 33 FIGURE 1. 7 USING CAMERA....................................................................................................................................... 33 FIGURE 1. 8 PRODUCT REPRESENTATION........................................................................................................................ 34 FIGURE 1. 9 PRODUCT ROTATION................................................................................................................................. 34 FIGURE 1. 10 FINAL POSITION..................................................................................................................................... 35
FIGURE 2. 1 LINKEDIN PROFILE................................................................................................................................... 36 FIGURE 2. 2 INSTAGRAM PROFILE................................................................................................................................ 36
FIGURE 3. 1 AJ COMPANY – MAILING LIST.................................................................................................................... 43 FIGURE 3. 2 AJ COMPANY - GOOGLE ADS..................................................................................................................... 46 FIGURE 3. 3 AJ COMPANY - CAMPAIGN SETTINGS........................................................................................................... 47 FIGURE 3. 4 AJ COMPANY - NEWSLETTER..................................................................................................................... 47
FIGURE 4. 1 AJ COMPANY – DOMAIN CONFIRMATION.................................................................................................... 55 FIGURE 4. 2 AJ COMPANY – CONFIRMATION MAIL......................................................................................................... 55
FIGURE 5. 1 AJ COMPANY WEBSITE - HOMEPAGE.......................................................................................................... 59 FIGURE 5. 2 AJ COMPANY WEBSITE – AJ APP.............................................................................................................. 60 FIGURE 5. 3 AJ COMPANY WEBSITE - SOFAS................................................................................................................. 61 FIGURE 5. 4 AJ COMPANY WEBSITE - BEDS.................................................................................................................. 61 FIGURE 5. 5 AJ COMPANY WEBSITE - CHAIRS............................................................................................................... 62 FIGURE 5. 6 AJ COMPANY WEBSITE - OURDOOR........................................................................................................... 62 FIGURE 5. 7 AJ COMPANY WEBSITE - CATEGORIES......................................................................................................... 63 FIGURE 5. 8 AJ COMPANY WEBSITE - NEW.................................................................................................................. 64 FIGURE 5. 9 AJ COMPANY WEBSITE - CONTACT............................................................................................................ 64 FIGURE 5. 10 AJ COMPANY WEBSITE – ABOUT US........................................................................................................ 65 FIGURE 5. 11 AJ COMPANY WEBSITE – YOUR PROFILE AND REGISTRATION FORM FOR WEBSITE VISITORS................................65
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FIGURE 6. 1 PROJECT WEBSITE SITEMAP....................................................................................................................... 66 FIGURE 6. 2 PROJECT LUCIDCHART DIAGRAM................................................................................................................. 67
13. AUTHOR CURRICULUM VITAE
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14. ATTACHMENTS 1. Registration Form for Website Visitors – page 65 2. Newsletter – page page 44 3. Project Website Screenshots – from page 59 to page 65 4. Mobile Application Screenshots – from page 30 to page 35
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15. PRESENTATION
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