Stage 2 Realisation project: WhatShop

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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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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

WhatsApp

• • • • •

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.