KidapCompany produces clothes for babies and children. The company has 13 stores all around the world and is presented at the international market for 2 years. It was set up in the USA 3 years ago, the first two years the company worked well; however, in the course of the last year the profit of the Kidap was not growing. Therefore, the target of this budget proposal is to improve the company’s effectiveness and help increase sales volume.
The idea of the proposal is to create a website, Kidap.com, where customers around the world can order goods from home (Odhiamo, 2013). According to the recent survey, holds in Kidap’s stores among the customers, some of them have difficulties with getting to the shop because of time issues, small kids or location area. The target audience of the company is mothers with little children, who stay at home and typically, have problems with going out because of small babies. It affects sales volumes and profitability of the company. In order to make the purchasing process more comfortable, there is the need to create a website where all customers can make a purchase in 5 minutes without taking a break from their businesses (Susan, 2010). The primary goal is to make online shopping comfortable for the customers; therefore, two different types of orders should be provided: e-orders and fax orders. It means that customers will be able to E-mail or fax the order 24-hours a day, seven days a week. As the company grows, it would be possible to open a Customer Care center to take orders by telephone. More personnel will be added if needed, in the future. Clients will enjoy a choice to pay with credit cards, PayPal or by cash. The company will hire one full-time employee whose job will be to work with clients, process orders, control all the payments and handle the shipping process. To promote Kidap.com, the company will use online advertising at partner sites such as babytoys.com and kidszone.com. It is also necessary to use direct mail and e-mail advertising, in order to generate public awareness and drive site traffic (Till, 2003).
Start-up costs for Kidap.com are estimated at $79 250, and they include legal costs, computer suppliers, advertisement, website design and manager’s salary (Harrington, 1997).
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