All these points are important and have to be covered within the plans for the new organization of instantwheel.com. Even with this, since this site will be the newest of all sites, it will have a natural disadvantage. To cover this disadvantage up, it would be better to tie up or purchase an organization which has existed for a long time, so that 'a wealth of experience' can be claimed for instantwheel.com.
Unique Selling Position
For any business to be a successful business, the organization has to have a Unique selling position. This means that this particular position sets them apart from other business in that area. Here the main source of our business is through Internet, and this makes it essential that our Web site is different from the Websites of others. (Don't Re-Invent the Wheel...Improve on it) if it is just a copy of other sites that exist on the Web, then it will just be a waste of money trying to sell it through the Internet. The effort has to be on developing a site that is better than the other sites, and there are many of them. All of them just talk about the choice that they will provide and the cheap price at which they will sell it. When you copy someone else, you cannot be number one, and we have the objective to be number one in the business of selling wheels.
It is very important to find out what the people are interested in, and this can be found out by talking to people and the websites where they assemble in chat rooms. It is important to get on to the chat rooms and find out details. This will take quite some time in doing, though it will take much less time, than conducting market research. The costs also will be much less than the tens of thousands of dollars that would have been required for market research if done directly, with questionnaires and going from house to house. However the requirement for starting on this is the development of Unique Selling Proposition, and then conducting the research on the market is possible. These also make it possible for the entire set up to be set up in a manner where the person thinking of it originally is a venture partner. (Don't Re-Invent the Wheel...Improve on it)
Customer needs for this product is very simple - they have bought a cheap car and on the second hand market. This does not fit the image that they would like to project of themselves as an individual, and they would like to change the car to one which would project an image of being specially built and designed for them. The reason why they are buying the wheel set is because of their need to build the car to a level of themselves that they would like to project. Remember the line "you're not the type of Gangsta they want to mess around with." (VCT Wheels) These people certainly have developed an understanding of the people who are buying their products, and this is just the reason which has been stated.
Next is the question of the 4Ps - Product, Price, Place, and Promotion. These are quite clear as we are talking about wheel sets for the cars, and that is the product we are trying to sell. Regarding Price, it is a little difficult to answer as we are clearly not talking in terms of the lowest price possible - there are many others who are already trying to go on that path. This has also been made clear already - "When you copy someone else, you cannot be number one, and we have the objective to be number one in the business of selling wheels." Thus the price has to be economical for us to go through this path, and that depends on the price for which the wheel sets are finally purchased, the costs that we have to incur for their collection and distribution all over the country, insurance, etc. At the same time, it will have to be lower than the costs for which these are sold in the local market. Regarding place, the question is quite clear and they will have to go from us directly to the customer, as we have to maintain our links with the customer.
When we try to distribute the product through local agents, then the local agents will end up having more influence over the customer...
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