LittleFish Solutions
Summary and Appendix Report Supporting Pitch
LITTLEFISH SOLUTIONS
Digital Technologies for Marketing MG502- Coursework 3 20905669, 20914440, 20902515, 20826853 6/5/2011
Assessing Tutor: Mike Watson
LittleFish Solutions
Summary and Appendix Report Supporting Pitch
LittleFish Solutions Summary and Appendices Report Contents 1.0 Introduction 2.0 Business Concept 2.1 What the Business Offers 2.2 Web Analytics 3.0 Website 3.1 Domain 3.2 Technologies 3.3 Database 3.4 Branding 3.5 Copy 3.6 Images/Graphics/Flash 4.0 Traffic Building 5.0 Finance 5.1 Start Up 5.2 Cash Flow & Project Lifecycle 5.3 ROI 5.4 Forecasts 6.0 Appendices 6.1 A) Break Even Analysis 6.2 B) Cash Flow Projections
LittleFish Solutions
Summary and Appendix Report Supporting Pitch
1.0 Introduction th
This report is to support the business pitch on the 10 May 2011. All information within this report is aimed to show evidence and detailed explanation of the points put forward within the pitch. The business is a marketing solutions agency named LittleFish Solutions and offers services in four key areas of PR, Market Research, Online Publishing and events. These services are offered to businesses via the website www.littlefishsolutions.co.uk.
2.0 Business Concept Little Fish aims to enter the national market as a fully digital marketing solutions agency. They will sell their services as part of a solutions team, acting as a marketing and communications advisor. In hindsight, businesses will approach Little Fish for any type of work within the Marketing and PR field; Little Fish will then complete these tasks whilst building customer relationships. They aim to hit the Marketing and PR industry and many of the aspects that interlink within. These will stretch from; • • • •
Market Research – investigating into the existing and overlooked consumer base and markets of businesses. Events – Planning and co-ordinating events for any corporation on any scale, around given budgets. Public Relations – content creation, press releases, crisis management and pr evaluation. Digital Publishing – specialising in female lifestyle magazine sector, the advances and methods of online and digital publishing from website to new era platforms.
2.1 What the Business Offers Little fish will be set up as a fully functional E-business. This will there-fore mean dealing with all aspects of human resources, financial and administration systems. Externally sales and marketing, supply of goods and customer relationships will also be included with-in the system. The way in which these tools will help manage LittleFish will not affect business relationships but the way they are referred to whilst using these tools will. Little Fish is a strict ‘Business to business’ (B2B) company. Using E-business tools provides more than just having a digital website for a business, they improve all administrative and operational tasks effectively. Many of the tools Little Fish will be integrating are listed below: • • • •
Selling and communicating with customers throughout the communication of Email or EFax Accessing the Internet to source information about your industry, suppliers and products and for general research Maintaining all new electronic transactions online; for example stock control, online banking, financial control Using the correct management and graphic software
Little Fish will currently stand as an online digital company; therefore Electronic commerce is vital for any transfer of information across the internet. This will therefore mean that the transfer of goods and services electronically will bear no barriers of time or distance. Business to Business refers to electronic commerce between businesses rather than between a business and a consumer. Little Fish is a B2B company, and therefore would benefit greatly from carrying out transactions electronically as it will obtain a competitive advantage over traditional methods. In order to carry out these transactions Little Fish will invest in the form of Electronic Data Interchange or EDI. This will therefore require both the supplier and the customer to set up a data link between the two, when implemented properly ecommerce is often faster, cheaper and more convenient than traditional methods and therefore would benefit Little Fish greatly. The audience to which it targets is classified simply as any business types. This makes LittleFish Solutions a B2B agency. As the target is of any business type, the ethos and tone of the agency and website is to be informal yet informative. This tone of voice and approach is then unbiased to any business categories.
2.2 Web Analytics A critical factor to the success of the online business is how to measure, collect and analysis the success and usage of the website. Web analytics provides information about the number of visitors to a website and the number of page views. This therefore provides a tool for not only measuring website traffic but also for business research and market research. Little fish have installed various web logs to track the customers that search on the site and to gain insight
LittleFish Solutions
Summary and Appendix Report Supporting Pitch
on how there consumers mind works. This will provide knowledge on what aspects need to be improved on. This will also offer a chance to see what the most popular pages to customers are and how long they spend on specific pages. Little Fish will aim to control all aspects of its web analytics. These stretch from Off-site analytics, were the potential audience, share of voice and buzz/opinion of the website it discussed as a whole throughout the internet. Therefore by taking control of the target market, reaching these correct people and then leaving them with a positive opinion will all result in successful off-site analytics. On-site web analytics will measure the visitor’s journey once on the Little Fish website. This therefore measures its performance in a commercial context, meaning the landing pages that encourage people to make a purchase will be reviewed and maintained by Little Fish to keep a steady sales track. In much way this links in with ‘Key performance indicators’ (KPI) as this is the data retrieved for the websites performance, combined together build an excellence way of improving a websites audience response. There are various business tools Little Fish will also be integrating into their management system to ensure the success of the business. The Critical Success Factors (CSF) will be adapted by Little Fish as one of these business tools. Critical Success Factors have been used significantly to present or identify a few key factors that organizations should focus on to be successful. Identifying the main CSF’s allows businesses to focus their efforts on building capabilities to meet these targets. Little Fishes CSF will be split up into 4 sections; industry- analysing the marketing and PR industry and were they can fit into this, Strategy- How they are going to achieve set objectives, EnvironmentalAny economic or technological changes, Temporal- Internal organizational needs and changes.
3.0 Website 3.1 Domain Name The Domain for LittleFish Solutions is: www.littlefishsolutions.co.uk. The availability of this name was confirmed by GBBO.
This site (www.gbbo.com) then also hosts the website free of fee, including that of an email address (info@littlefishsolutions.co.uk).
3.2 Technologies The Website itself sits on a free hosting service provided by GBBO. The site is designed to be as straight forward and simplistic as possible as its core purpose is to promote the services of LittleFish Solutions and provide the opportunity to contact the agency with their business’s specific enquiries.
LittleFish Solutions Summary and Appendix Report Supporting Pitch The only additional technology for the website itself is the use of a “JotForm�. This created form allows the user to enter their specific queries for the LittleFish Solution team. More importantly the form has required fields that need to be filled in order to send. These fields are the data of each user that will be added to the LittleFish Solutions database.
http://www.jotform.com/form/11245614274
This information captured will enable the business to log who has interest in it, which services are of most interest, and the details to communicate with users in the future. Below is how the form will appear to the user on their screen:
Once the form has been sent off, the required fields go into the database and the message comes through to the LittleFish Solutions email address (info@littlefishsolutions.co.uk). An instant reply will be sent back confirming their
LittleFish Solutions form has been received.
Summary and Appendix Report Supporting Pitch
As seen below; these instant replies will be personalised with the information put into the required fields; first name, service interest, and business name.
There are a number of technologies suitable to use within the business in terms of the services that are on offer. Within PR, programmes such as the database; ABI Proquest will be used to source information and knowledge of businesses and media. Online sites such as Facebook, Twitter and LinkedIn provides the platform on which must of the e-pr to promote both the business itself and the clients, will be run. Technologies for market research span from using surveymonkey, Mintel, WARC, BRAD, TGI and again many of the social networks. Gant Charts for Events management will be on smartsheets and when providing online publishing services; Issuu, Photoshop and PowerPoint are technologies suitable.
3.3 Data Base LittleFish Solutions database will be created in Microsoft Access. This is because the programme enables the database to be linked to the online website and jotform via an interface, and allows the business to control and alter it depending on the amendments needed. This programme comes under the budget as supplies: office and operating. The access database table collates the information obtained from the host. This information is saved in fields within the table, those fields are then questioned via a pre defined query, and the information derived from this is then populated into a template report in the form of the instant email reply and sent back to the user. The purpose of the designed database is not to only create personalised instant replies but to also track and document the progress of potential/client interaction. For example it will show how far into the process each respondent has achieved: instant reply, follow up reply of the enquiry, sales and future emails. The Database can then also act as a mailing list for our PR activities. The growth of the database is a measurement in itself of the growth of our business. For all promotional emails (email marketing) sent to the audiences after initial query reply, an ‘opt out’ option will be attached to said emails for all legal and privacy purposes. An exclaimer will also be written to confirm that no information given over via the jotform would be passed on to any other parties. Costs attached to the database are that of Microsoft Access and the Hosting Fees.
LittleFish Solutions
Summary and Appendix Report Supporting Pitch
The database will look similar to that which follows:
The information provided by the database is used within the email marketing. Those of the emails that have been captured can receive personalised emails marketing individual promotions and services depending on the other information we have gathered. We are able to market separately to all of the database fields.
3.4 Branding It is imperative Little Fish Solutions has a clear brand image from the start. The brand image will be informal and friendly, welcoming to any new businesses. The colour scheme is predominately orange. Goldfish will also be associated with the brand, as it affiliates with the name. Fonts will also remain consistent so people can relate the font to LFS. Consistency within a brand will satisfy the consumers and also give the brand a good reputation. The logo has a quirky vibe about it. It is vibrant and memorable. “The consumers decide if they will buy a product or use a service based on how they view the brand” marketingdeviant.com (2011) This emphasises how the branding has to be suited to the consumer. The personality of the brand will be perceived in various ways, it is important it is seen positively and respectfully
3.5 Copy The website is simple, and informal. This will attract the cliental that is hoped for. As a new business it is important not to sound patronising or ‘snobbish’. “Possibly the most important rule is doing assume your visitors have full knowledge of your company, its products and services.” Chaffey, Smith (2011) This is why it has to be thought that the consumer has never heard of the organisation before, and the website is their first encounter. Therefore it is crucial that the copy on a website is suitable and persuasive. Potential new consumers are likely to check out the website before investing. This means the copy can make or break their decision. The website is selling LFS as a business. In order to persuade a potential client to choose LSF, on the website is a catalogue of previous experiences. This will let the client know if it is the right choice for them, if what is offered is what is needed. Quotes from previous clients, and event goers, will also aid in showcasing the success of the work that LSF have carried out. The copy will read as if one representative is having a one on one conversation with the particular prospect.
LittleFish Solutions
Summary and Appendix Report Supporting Pitch
3.6 Images/Graphics/Flash “Aesthetics comprises graphics, colour, style and personality.” Chaffey, Smith (2011) The images used on the website are all relative to the particular page. It adds colour and breaks up the text. The audience can get a real life image of examples of work that the agency has previously done. Consumers that may fall upon the website need to feel like they want to stay on the site. Therefore design is very important. The graphics of gold fish associate with the brand, and therefore build up the brand personality, where as the images give the audience a feel for LFS and they way they work. The website has potential to use flash and upload videos. This will really represent how successful an event has been, and in turn will hopefully persuade the consumer to become a client.
As you can see the colours, texts, graphics and images really compliment each other. It gives a vibrant, contemporary feel, with easy reading
4.0 Traffic
Building
Being an online business it is required we have as much traffic building directed to the site as possible. However living in a digital age, there are various methods that can be used to optimise website hits. Due to the business just starting up, there is little money to be allocated to more traditional ways of marketing, such as advertising. LittleFish Solutions will predominately focus on the use of public relations in the first few months. “PR is a powerful and relatively low-cost form of offline communications.” Chaffey, Smith (2011) This can also be done online, with the amount of publications being available online now. This will include sending out digital press releases to business blogs, local newspapers etc. These will hopefully reach the target audience. Social Media Marketing is also a vital tool in getting “LittleFish Solutions” out there. Twitter, Facebook and Linked in have all been set up, these will help create a good rapport with the publics, as well as creating a free database for consumers interested in LFS, also keeping the consumers up to date with the business and including them in any events/promo/focus groups that they might be useful in. Pay Per Click advertising is also going to be in function, this will let the business know when potential consumers click on key words. Little Fish solutions will also be building traffic is by email marketing, a data base will have been created by the social media and jot form on the website. This allows LFS to communicate with the consumer directly through emails. As well as this Little Fish Solutions will invest in Pay per Click, this is when it is only paid for when a consumer gets to your site via clicking on the ad. This method will track whether or not the ad is working and how many consumers it brings through. A start up campaign will be “recommend a business” clients will recommend Little Fish Solutions to another business and will be in turn offered a discount. This should create the word of mouth effect. Business’s will hopefully invest and then bring in more clients if they are happy with the service.
LittleFish Solutions
Summary and Appendix Report Supporting Pitch
5.0 Finance 5.1 Start Up As with any new business, Little Fish Solutions will require capital to make the transition from a viable business idea to a fully functioning agency. The start up will cover all initial salaries, rent, bills, taxes, fees and charges and will be invested in launching Little Fish Solutions in to the marketing communications sector. What will make LFS unique in this area is that we will be one of the few (if any) fully functioning digital agencies, with a small home office based in Buckinghamshire. This enables us to keep our overheads lower, meaning we can sell our services for a more cost-effective price; which in the middle of a recession will be a key role to the business’ success. After salaries, a large proportion of our budget will be spent on software and subscriptions to various services and databases which will help to provide contact lists pivotal to producing a successful business and for drumming up new business. Though initially these services will haemorrhage finance, LFS understands the necessity for these services. The first month of non-trading will be used to find leads, set up the business and make sure all office space is fully functioning and that the small team of four are ready to commence business in the first month of trading. Looking at the ‘Monthly Cash-Flow’ projection chart it is clear that our outgoings will be a lot higher in the first year as LFS learns to economise on expenditure, which will come over time and creating good relationships with suppliers.
5.2 Cash Flow & Project Lifecycle Little Fish Solutions in a service industry. As with any service industry standards, constraints and expectations change over time based on the macro environment. The current economic climate means that companies are cutting their marketing budgets across the board of sectors. Being fully based online and dealing with clients and colleagues through primarily the internet and telephone, this allows LFS to keep operating costs lower, allowing for the agency to charge less to our clients. This will in time encourage new business as it allows us to enter the sector with a unique price point and offering a new angle on the industry. Initially cash flow will come from any angel or capital investments or from bank loans and business overdraft facilities. This will allow the company to operate effectively while it is still finding its feet. Initially we will have £6,000 each month coming in to cover operating costs and all outgoings, but by the end of year one reducing it down to £4,000 per month as the business sees more income from clients coming in.
5.3 ROI Little Fish is working to a time scale of twelve months before turning profit. The most delicate part of the launch of the company will be during the Execution and Controlling stages of LFS project life cycle; in a product based industry a tests can be run to see the viability of the product, but with the services sector its relied purely on research and can’t be measured in the same way the performance of a tangible product can be. Little Fish Solutions expects to start making profit within the first year; precisely during the first week of the eleventh month of trading. This is when the investment begins to benefit our investor. By the end of year one, LFS plans to have five clients using Little Fish Solutions’ various services. We predict growth to continue to ten clients in year two, and then slow eleven or twelve in year three. We project growth to be five new clients a year, but LFS understand that customer retention is not guaranteed, so the company is making conservative judgement in regards to the numbers of clients the company will have after thirty-six months. On average in the PR sector, it takes fifteen months for a client to be profitable, to the company, but as the overheads are lower we are looking to reduce this time to twelve months by the end of year two. As part of financing the project, the investor will receive a 15% share of the company and will be a voting board member until, the initial capital has been paid off; at which point the share will be diluted down to 10%, and full board
LittleFish Solutions
Summary and Appendix Report Supporting Pitch
control will be returned to the founders of Little Fish Solutions. At this point the investor will be able to sell their shares to a third party if they wish.
5.4 Forecasts The figures proposed in LFS Cash Flow Projections and Break-even Analysis, are based on conservative income from profits and using realistic outgoing projections. Initially LFS will charge clients ÂŁ1250 per month and this will offer a baseline of services which will enable to them to grow their business either through sales, reputation and brand value as well as other aspects of their company. LFS will offer unique and tailor made solutions, thus creating a tailor made unit pricing system. With this in mind, Little Fish Solutions believe that we may be able to start turning profit by the end of the ninth month of year one. As the economy slowly recovers and GDP slows, we will focus more heavily on introducing businesses that have never worked with marketing solutions firms in the past to get on board. Initially the LFS will set modest growth as the economy continues to recover. Pre-recession new and smaller businesses were growing at very rapid rates in a false-economy, so for LFS to have longevity, the company will wait five years of steady growth before expanding either nationally or internationally.
LittleFish Solutions
6.0 Appendices 6.1 A) Break Even Analysis
Summary and Appendix Report Supporting Pitch
LittleFish Solutions
6.2 B) Cash Flow Projections
Summary and Appendix Report Supporting Pitch