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WhatShop
Executive Summary 1.
ETHICS CLAUSE This submission is the result of my own work. All help and advice other than that received from tutors has been acknowledged and primary and secondary sources of information have been properly attributed. Should this statement prove untrue I recognise the right and duty of the board of examiners to recommend what action should be taken in line with the University’s regulations on assessment contained in its book. Signed:
Date: 13/05/2020
Helena Evison N0688998 Word Count- Main Report: 8,816 Word Count - Executive Summary: 924
Friends helping friends, in one seamless transaction.
CONTENTS
4.
1.
2.
Introduction.... 1. The Opportunity.... 2. The Big idea.... 3.
The concept.... 4.-5. The Business Model 6.-7. Market overview....8.-9.
3.
4.
The Marketing Strategy........10.-11. The CommunicationPlan.... 12.-13. Critical Path...........................14.-15.
Profit and Loss....16. Cash Flow............17. Growth Strategy...18. Conclusion...........19.
5.
“Privacy gives people the freedom to be themselves and connect more naturally.� - Mark Zuckerberg, 2019
Introduction An identifiable gap in the market and a clear shift in consumer behaviour has demonstrated a clear opportunity for WhatsApp to launch into the social commerce market, in order to provide an additional stream of revenue and meet new consumer needs.
To ensure WhatShop will generate successful results as a brand extension of WhatsApp, a unique brand identity, which is coherent with WhatsApp’s existing brand identity, has been cultivated and a three-year marketing and communication strategy has been devised.
1.
The Opportunity Stage One, which explored generation-Z and consumer trust, was crucial in the identification of an increased sense of scepticism towards online social support from social media influencers, owing to the false sense of sincerity that comes with their financially motivated recommendations (Evison, 2020).
Subsequent wider research supported this notion, uncovering that this level of distrust is leading to younger consumers preferring to interact and engage with their close circles, rather than social media influencers (Wunderman and Thompson, 2019 and Trend Watching, 2020).
Additionally, generation-Z’s path to purchase was identified as a complex process, with a demand for it to be made simpler (Evison, 2020). Supporting this, a pain-point for businesses was discovered to be the stage between product discovery and product purchase (Amed et al., 2019).
Overall, these findings were significant in identifying a key opportunity to enable younger consumers to engage within their inner circles, whilst simplifying their path to purchase.
2.
The Big Idea Through extensive concept testing, with both consumers and industry experts, the decision to develop a brand extension for WhatsApp was made.
WHAT
HOW WHY To connect consumer to their inner circle to gain reviews and recommendations from the people they trust, owing to a loss in trust from online influencers.
By developing a social commerce platform that will exist within WhatsApp.
The new WhatsApp feature, ‘WhatShop’ will enable users to give and recieve shoppable product recommendations, creating a seamless shopping experience. It will allow users to make their purchasing decisions based on the opinions of people they trust.
The Golden Circle (Sinek, 2009)
3.
WhatShop
HOLIDAY 2020 Alex
The Concept
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Flat B234 Harriet: I want a top like you wor...
perfect bikini, help a gal out!
11.25
9.25
HOLIDAY 2020 Alex purchased a bikini from from Nasty Gal
Emily Ahhh I know!!! IÕve been looking at some nice ones on ASOS,Õll send over xx 9.33
I hate my moisturiser Amelia: So, basically, atm IÕm usi...
Women
Men
HOLIDAY 2020 Alex purchased a bikini from from Nasty Gal
Clothing
I hate my moisturiser Amelia: So, basically, atm IÕm usi...
EmilyÕ s Wedding
Accessories Bored of PLT
Bored of PLT Amelia purchased a t-shirt from &otherstories
Amelia purchased a t-shirt from &otherstories
Makeup Bestival babyyyyy
Bestival babyyyyy
WHERE DID YOU GE....
WHERE DID YOU GE....
Skincare Holly OÕBryan
Holly OÕBryan Holly purchased a lipstick fro...
Holly purchased a lipstick fro... WhatShop
WhatShop
4.
Search brands and products Flat B234 Harriet: I want a top like you wor...
Shoes
EmilyÕ s Wedding
In order to faciliate a function where the sole purpose is to purchase, discover and recommend products, a seperate section will hold chats specifically for WhatShop.
WhatShop
Saved Items
Products can be efficiently shared directly to group chats.
Swiping right (from the previous chat interface) will enable a browse page to appear, where partnered brands will be displayed in order to seamlessly share and purchase.
HOLIDAY 2020 Nasty Gal
Saved Items
Cult Beauty ASOS DESIGN mix and match rib knot front bikini top in mint green
Subtotal Shipping
£22.50 £2.99
Total
£25.49
Shipping ASOS DESIGN mix and match rib knot front bikini top in mint green £14.00
Colour Green
All products discussed will automatically save to a shared folder, making products easy to be refound.
Size 12
Products can be purchased directly from the chat interface.
Standard
£2.99
Payment
Convenient mobile payments and bio metrics will be enabled to ensure the path to purchase is as seamless as technologically possible.
5.
The Business Model Key partner’s
Key Activities
Value Proposition
Customer Relationship
Consumer Segment
• • • • •
Social Media Website feature
Target consumer:
Fashion, lifestyle, beauty and skincare brands
Consumers: Simplifies the point between discovery and purchase, whilst receiving opinions from the people they trust.
WhatsApp users
App development and maintenance Research Networking Marketing and promotion Consumer support
Key Resources • • • • • • •
Skilled employee’s App development technology Mobile and app commerce technology Social channels Website development Trademark Communication resources
Businesses: Brands can increase their chance of making a sale by facilitating organically advocated, shoppable products.
• • •
British WhatsApp users’ aged 18-25 Sociable Disposable income Value honesty and efficiency
Channels
Target Business
• • •
Industries: Fashion, lifestyle, beauty and skincare online brands and retailers Location: Online (Available in the UK) Pricing: Affordable- mid priced
Online and offline advertising Social media Website and blog
Cost Structure
Revenue Stream
• • • •
The primary revenue stream will be from commission fee, taken from each sale that is made directly via the platform.
App development (commerce implementation) Marketing and Communications Employee’s wages Website development
The business model canvas exemplifies how the concept will work, who it is for, how it will generate capital, the value it offers and the internal and external business structure.
6.
•
7.
The market Social commerce In January, 40% of brits aged 18-24 were reported to have made purchases directly through social media (Emmanuel, 2020). Concurrently, 24% of UK businesses enable sales to be made directly through social media, however as the demand rises this figure is expected to reach almost 50%, within the next six months, (PayPal, 2020). The notable demand for social commerce, from both businesses and consumers, illustrates why now is the right time for WhatsApp to launch into the social commerce market.
8.
Market positioning The market positioning map demonstrates that, within the social commerce market, WhatShop’s point of difference can be defined by its ability to provide a space where users’ can give and receive unbiased product recommendations and purchase them within the space of their private chats. Public Networks
LiketoKnowit 21Buttons Instagram
Influenster
Facebook Amazon Commision driven advoations
Snapchat
Countr
Non-commision driven advocations
Masse
Storr
Private Networks
9.
The Marketing Strategy
Year 1 Build
Partnerships and a social media presence.
10.
Year Gro
Partnerships an
r2 ow
nd in-app sales.
Year 3 Expand To desktop
11.
The Communication Plan
WhatShop
The key to WhatShop’s success is dependent on both businesses and consumers, therefore devising a communication plan which successfully reaches and engages with both stake holder’s is crucial.
B2B: To acquire affiliate partners’ an integrated online and offline strategy has been designed. LinkedIn will play a key role in efficiently driving brand exposure and awareness and optimising on sponsored videos will efficiently reach the target business. Live events and tradeshows will be attended by WhatShop, where they WhatShop will hold their own stand, helping to drive brand awareness and develop tangible relationships with potential partners.
12.
WhatShop Inc. London, United Kingdom
B2C: Similarly, online and offline communications will also be executed to ensure WhatShop is in the forefront of the target consumers’ mind and the value proposition is clearly delivered. Social media channels, Instagram and Facebook, will play an active role in capturing the target audience’s attention, as this it tends to lie (Lambert, 2020).
WhatShop For more information visit: www.whatsapp.com/whatshop
The Critical Path - Year 1 Month: Initiative: Launch Linkedin page B2B Press release B2B Webpage LinkedIn video Moda Expo E-comm Expo Instagram video Billboard Launch B2C social channels B2C Webpage and blog B2C Press release Launch event Instagram competition Marketing Expo Cyber week campagin Xmas pop-up 12 Days of Xmas giveaway Valentines Video Student Ambassador campaign 6 month infographic Holiday shop promo Summer spree Facebook video B2B expo Summper party pop-up Video case study
Key B2B
14.
B2C
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
The critical plan demonstrates how the B2B and B2C communications will run alongside one another throughout the first year to effectively reach both audiences.
15.
Financials - Profit and Loss Profit and Loss year 1
Profit and Loss year 2
Profit and Loss year 3
Total Revenue (£)
469,536.00
Total Revenue (£)
610,396.80
Total Revenue (£)
1866,393
Cost of goods (£)
0.00
Cost of goods (£)
0.00
Cost of goods (£)
0.00
Total Costs (£)
825,423.04
Total Costs (£)
727,084.04
Total Costs (£)
9993,396
Net Profit (£)
-355,887.04
Net Profit (£)
-116,687.24
Net Profit (£)
872,997
Profit and Loss year 4
16.
Profit and Loss year 5
Total Revenue (£)
2426,508
Total Revenue (£)
3,154,456
Cost of goods (£)
0.00
Cost of goods (£)
0.00
Total Costs (£)
923,364
Total Costs (£)
923,364
Net Profit (£)
1503,144
Net Profit (£)
2,231,092
The five-year financial forecast exhibits that growth in profit will be gradual for WhatShop, nevertheless producing healthy financial return after five years of operating, proving the business has longevity.
Financials - Cash Flow
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
Total Revenue (£)
0
39128
49301
51649
37563
37563
39128
40889
40889
48910
45388
39128
Outgoings (£)
207,767
56,475
59,408
55,531
51,975
51,975
56,615
57,115
56615
60811
55600
55531
Investment (£)
360,000
Opening Cash Balance (£)
360,000
152,233
95,757
36,349
-19183
-71158
-123134
-179,749
-236,864
-293,479
-354,291
-409891
Add Incoming cash + (£)
0
39128
49301
51649
37563
37563
39128
40889
40889
48910
45388
39128
Deduct outgoing cash - (£)
207,767
56,475
59,408
55,531
51,975
51,975
56,615
57,115
56615
60811
55600
55531
Closing Cash Balance (£)
152,233
134,885
124,778
120,896
106,483
92,070
74,583
58,356
42,630
30,728
20,516
4,113
Exemplified by the cash flow, within WhatShop’s first year of operating, an injection of £360,000 will be required to cover initial losses and operational and marketing costs. The aforementioned profit and loss accounts ascertain that this will be repayable after three years of operating.
17.
Growth strategy • New Markets: India, Brazil, Germany and the US • Product Expansion: Electronics Once the business model has demonstrated its ability to support WhatsApp in increasing revenue and meeting the needs of their existing user base, new geographical markets should be considered expanding into and businesses in different product categories should be partnered with to widen the target audience.
18.
Conclusion
HOLIDAY 2020 Cancel Alex
Complete purchase
Hey girls Croatia is fast approaching and I need a new bikini!
The Aster Crop - Grey ASOS DESIGN mix and match rib knot 11.25
front bikini top in mint green
Tala Subtotal Shipping
£22.50 £2.99
Total
£25.49
Shipping
WhatShop is a direct response to the way in which younger consumers are choosing to discover and purchase products today. Developing an extension for WhatsApp enables a large portion of this cohort to be reached, providing strong financial return and room to expand in the future.
£2.99
Standard Payment
Place Order
19.
References Amed, I., et al., 2019. The Year Ahead: Smoothing the Path to Purchase [online]. Mckinsey&Company. Available at: https://www.businessoffashion.com/articles/intelligence/the-year-aheadreducing-the-inspiration-acquisition-gap [Accessed 15/03 2020].
Emmanuel, Z., 2020. Digital Platforms and the Customer Journey 2020 [online]. Mintel. Available at: https://reports.mintel.com/display/987732/ [Accessed 03/16 2020].
Evison, H., 2020. A Global Trust Crisis: Has a loss in trust among Generation-Z driven the rise in community-commerce? . Research Project ed. Nottingham Trent University: .
Lambert, N., n.d. An (in)convenient truth: Gen Z and the culture of instant gratification [online]. Sapho. Available at: https://www.sapho.com/blog/an-inconvenient-truth-gen-z-and-theculture-of-instant-gratification/ [Accessed 14/04 2020].
PayPal, 2020. PayPal Commerce Index: social and security top of mind for UK consumers [online]. PayPal. Available at: https://www.paypal.com/uk/brc/article/paypal-commerce-indexsocial-and-security-top-of-mind-for-uk [Accessed 03/20 2020].
Sinek, S., 2009. The golden circle. Gumroad.Com, Http://tinyurl.com/golden-Circle-Sinek, .
TrendWatching, 2020. 5 TRENDS FOR 2020 [online]. Trend Watching BV. Available at: https://trendwatching.com/quarterly/2019-11/5-trends-2020/ [Accessed 05/11 2020].
Wunderman Thompson, 2020. Future 100 2020. https://intelligence.wundermanthompson.com/trend-reports/the-future-100-2020/ ed. Wunderman Thompson Company: Wunderman.
Wunderman Thompson, 2020. Generation Z: APAC. https://intelligence.wundermanthompson.com/trend-reports/generation-z-apac/ ed. Online: Wunderman Thompson Company.
Zuckerberg, M., 2019. A Privacy-Focused Vision for Social Networking [online]. Facebook. Available at: https://www.facebook.com/notes/mark-zuckerberg/a-privacy-focused-vision-forsocial-networking/10156700570096634/ [Accessed 04/05 2020].
20.
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Illustrations WhatsApp. 2020. WhatsApp wallpaper. [Online]. [Accessed 10 May 20120. Available at: https://faq.whatsapp.com/id/android/20354947447840?lang=en
Evison, H. 2020. WhatsApp logo adapted. [Online]. [Accessed 10 May 2020]. Original Available from: https://www.whatsapp. com/
Allie. 2020. iPhone app store featuring Whatsapp. [Online]. [Accessed 10 May 2020]. Original Available from: https://unsplash.com/photos/Zru_wUAcU8g
WhatShop
Acea, KA 2018. Flatlay. [Online]. [Accessed 10 May 2020]. Original Available from: https://unsplash.com/photos/Nm5MnMNxAK4
Flat B234 Harriet: I want a top like you wor...
HOLIDAY 2020 Alex purchased a bikini from from Nasty Gal
Evison, H. 2020. Brand development mock-up. [Illustator]. [Accessed 10 May 2020]. Original.
I hate my moisturiser Amelia: So, basically, atm IÕm usi... s Wedding EmilyÕ
Bored of PLT HOLIDAY 2020 a t-shirt Amelia purchased from &otherstories Saved Items
Alex
Hey Croatia is fastholiday approaching Hey girls girls!!! Our annual is fast and I need a new approaching and bikini! I NEED to find the
perfect bikini, help a gal out!
11.25
Bestival babyyyyy 9.25
Emily Ahhh I know!!! IÕve been looking at some nice ones on ASOS,Õll send over xx 9.33
WHERE DID YOU GE....
Evison, H. 2020. Brand development mock-up. [Illustator]. [Accessed 10 May 2020]. Original.
Holly OÕBryan Holly purchased a lipstick fro... WhatShop
WhatShop Search brands and products Flat B234 Harriet: I want a top like you wor...
Women
Men
HOLIDAY 2020 Alex purchased a bikini from
from Nasty Gal Clothing
I hate my moisturiser Amelia: So, basically, atm IÕm usi...
Evison, H. 2020. Brand development mock-up. [Illustator]. [Accessed 10 May 2020]. Original.
Shoes
EmilyÕ s Wedding
Accessories Bored of PLT
Amelia purchased a t-shirt from &otherstories
Makeup Bestival babyyyyy
WHERE DID YOU GE....
Skincare Holly OÕBryan
Holly purchased a lipstick fro... WhatShop
21.
Nasty Gal
Cult Beauty
Evison, H. 2020. Brand development mock-up. [Illustator]. [Accessed 10 May 2020]. Original.
Evison, H. 2020. Brand development mock-up. [Illustator]. [Accessed 10 May 2020]. Original. ASOS DESIGN mix and match rib knot front bikini top in mint green £14.00
Colour Green
ASOS DESIGN mix and match rib knot front bikini top in mint green
Subtotal Shipping Total
Size 12 £22.50 £2.99 £25.49
Evison, H. 2020. Brand development mock-up. [Illustator]. [Accessed 10 May 2020]. Original.
Shipping Standard
£2.99
Payment
Wisz, B. 2017. Contactless. [Online]. [Accessed 10 May 2020]. Original Available from: https://unsplash.com/photos/Xn5FbEM9564
Nordwood Themes. 2017. High Impace designs for influencers. [Online]. [Accessed 10 May 2020]. Original Available from: https:// unsplash.com/photos/yyMJNPgQ-X8 WhatShop
WhatShop Inc. London, United Kingdom
Evison, H. 2020. LinkedIn mockup. [Illustrator]. [Accessed 10 May 2020]. Original available at: https://www.linkedin.com/company/whatsapp-inc/
Evison, H. 2020. Instagram video mockup [Illustrator]. [Accessed 10 May 2020]. Original available at: https://www.eboostconsulting.com/facebook-instagram-ad-types-image-sizes-text-limits-everything-you-need-to-know/
22.
Evison, H. 2020. Billboard mockup [Illustrator]. [Accessed 10 May 2020]. Original available at: https://www.roninmarketing.co.uk/ wp-content/uploads/setwenty-billboard-mockup.jpg WhatShop
Kendall, R. 2018. Light bulb. [Online]. [Accessed 10 May 2020]. Original Available from: https://unsplash.com/photos/AijuW-HlE30
Tateisi, J. n.d. Step up. [Online]. [Accessed 10 May 2020]. Original Available from: https://unsplash.com/photos/bJhT_8nbUA0 HOLIDAY 2020 Cancel Alex
Complete purchase
Hey girls Croatia is fast approaching and I need a new bikini!
The Aster Crop - Grey ASOS DESIGN mix and match rib knot 11.25
front bikini top in mint green
Tala Subtotal Shipping
£22.50 £2.99
Total
£25.49
Evison, H. 2020. App development mockup [Illustrator]. [Accessed 10 May 2020]. Original.
Shipping £2.99
Standard Payment
Place Order
23.
