AMT SHIPPER

NO. 20, ANIFOWOSE STREET, IKEJA, LAGOS STATE

Contact Information
Olaniyi Aminat Tinuola
[email protected]
+2348017003556
[email protected]
No. 20, Anifowose Street, Ikeja, Lagos State

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Table of content

Executive Summary
Objectives
Mission
Keys to Success
Company Summary
Start-up Summary
Services
Market Analysis Summary
Market Segmentation
Competition and Buying Patterns
Strategy and Implementation Summary
Competitive Edge
Marketing Strategy
Sales Strategy
Sales Forecast
Personnel Plan
Financial Plan

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Executive Summary

AMT Shipper is a start-up packaging and shipping organization that caters to online auctions

such as eBay as well as offering regular shipping services to walk-in customers. AMT Shipper

will be known as the reasonably priced, environmentally sensitive, convenient service provider.

AMT Shipper has identified three keys of success that will be instrumental in its sustainable

success. The first is to provide a market-needed service which it will accomplish by offering

reasonably priced packaging and shipping services. The second will be to ensure its services

are as convenient as possible. If it is not the most convenient solution, then people will not

become long-term customers. The last is the use of strict financial controls.

AMT Shipper will target three customer segments, new eBay users and more advanced eBay

users. Each group will have different compelling reasons as to why they use AMT Shipper.

Recognizing that these are two distinct groups, they will targeted differently.

AMT Shipper faces two different types of competition. The first type of competition is from

mom and pop shops that offer packaging and shipping as an additional service beyond the core

service offerings. These type of shops typically offer shipping as an auxiliary service. The

second form of competition is from franchise operations that focus on packaging and shipping.

There are many different competitors in this space and as a general rule have high priced

shipping options. These service providers appeal to someone who values convenience and is

willing to pay for it.

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Objectives

 Become the premier auction shipping service.

 Reach profitability within the first two years.

 Achieve market penetration of 15% by year three.

Mission

AMT Shipper mission is to become the premier auction shipping service. This will be achieved

by offering reasonable prices, fast and environmentally sound service, and maintaining 100%

customer satisfaction.

Keys to Success

 Provide a market-needed service.

 Be as convenient as possible.

 Employ strict financial controls.

Company Summary

AMT Shipper is a new eBay users, Detroit-based shipper who concentrates in auction-based

shipping services. AMT Shipper offers the most convenient, inexpensive, environmentally

sound shipping service. Through environmentally sound practices such as using only recycled

shipping materials, AMT Shipper is able to offer competitive pricing that is easily able to

undercut competing services.

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Start-up Summary

AMT Shipper will require the following items for business start-up:

 Cash register;

 Fax machine;

 Computer system with printer, broadband Internet connection, bar code scanner, and

assorted software;

 Office furniture;

 Three 5"x20" counter tops;

 Neon sign;

 Assorted office and packing supplies.

Services

AMT Shipper offers shipping services, similar to MailBoxes Plus, but geared for auction-based

transactions. AMT Shipper will only use recycled, re-used shipping materials for packaging as

well as for the containers as well. This serves two very important functions. The first is the

ability to significantly decrease the costs involved with packaging since all packaging materials

are free. They are collected from nearby retailers that would otherwise throw them out. It also

serves a business philosophy/marketing edge by being as environmentally sustainable in

normal business operations as possible. By using only recycled materials, AMT Shipper is

reducing waste, re-using materials, and not consuming any new eBay users shipping materials.

The services will be geared toward auction transactions where the customer drops off an item

that they need packaged and sent. This is ideal for auction transactions as these types of

products often do not have original boxes for the sold items and also there is the compelling

need to keep the price of packaging/shipping down as much as possible. Having a fast service

for packaging and shipping products will help create incentives for people to increase the

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number of items that they sell the easier it is to package and send an item, the increased

likelihood a person will have for selling increasingly more things on eBay. Customers who are

interested in shipping items that are non-auction items will be happily serviced as well.

Market Analysis Summary

AMT Shipper will be going after two distinct market segments for their business: new eBay

users and advanced eBayers. eBay is a fairly new eBay users online auction which has created

its own market by developing a huge, successful, online auction. Starting from nothing, eBay

has developed a site where millions upon millions of users buy and sell new eBay users and

used items online. Suddenly, with the creation of eBay, there is a wonderful market where

almost anything can be bought or sold. Looking for a bike part, a piece of Nambe sculpture, a

Patagonia jacket, whatever, it is available to be bought or sold on eBay.

AMT Shipper will service three different customer groups, new eBay users, advanced eBay

users, and a catch all category of general customers. AMT Shipper will be a convenient

service for new eBay users. For the advanced user, it will offer a fast solution that is cost

effective and allows advanced users to sell more items on eBay since their time is freed up

from the packaging chores.

Market Segmentation

 New eBay users: These people are fairly new eBay users to the online auctions. They

may have been purchasers for a while, but they are just getting into the selling aspect of

auctions.

 Advanced online sellers: This is a market segment of active sellers on eBay. Offering

a packaging and shipping service that is inexpensive and convenient will be quite

appealing to a seller who would like to increase the number of items they sell on eBay

but cannot because of the time it takes to package and ship the items.

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  Others: This market segment is a catch all category of non-auction customers who

desire to ship packages. Often these people are either sending an item to a friend or

business, or a maybe returning a mail order purchase.

Competition and Buying Patterns

The competition comes in two general forms:

 Mom and pop stores: These stores typically offer additional services beyond

packaging and shipping. They typically have another line of business and since they

already ship UPS they have decided to offer shipping as a value-added service beyond

their core competencies.

 Franchises: These types of stores have packaging and shipping as their primary

services, with other services such as fax service and private mail boxes in addition to

the primary shipping business.

The buying patterns of customers are based on convenience. Convenience is based on

services offered such as packaging in addition to shipping, hours of operation, etc. Price is a

factor to some degree, however most of the businesses charge a premium. AMT Shipper

believes that customers will become more price sensitive when a realistic option becomes

available that is significantly cheaper than the current competition.

Strategy and Implementation Summary

AMT Shipper strategy is to become visible to the targeted perspective customers. AMT

Shipper has a strong competitive edge of price and environmental sensitivity and it will attempt

to exploit this as much as possible to gain new eBay users customers. Exploiting the

environmental aspect of its business is an added marketing bonus because while it does have

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valuable marketing potential, there are underlying economic reasons to be environmentally

sound. The key to the sales strategy will be getting customers to try out AMT Shipper services.

AMT Shipper has the firm belief that the conversion ratio from a first time customer to a long-

term customer will be between 60%-70%.

Competitive Edge

AMT Shipper has two competitive edges:

 Convenience: This competitive edge is made up of many different elements such as

convenient hours of operation, convenient location and convenience in terms of the

overall experience which is based on how quickly customers move through the process

of having AMT Shipper package and ship their product.

 Environmental sensitivity: This is a significant advantage because most competitors

cannot have the same commitment to the environment. It is rare for a shipper to be able

to use 100% recycled materials. Appearance is the main driver to this decision.

Recycled products will not have the fresh, crisp look of brand new shipping materials,

which is a problem for most shippers as their packaging solution must appear

professional.

Marketing Strategy

AMT Shipper will deploy a multi-pronged marketing approach in an effort to generate

awareness among potential customers:

 Location: The choice of location was made based on the need to capture walk-by-

traffic. Having a convenient, prominent location in an area with significant walk-by-traffic

is one method of marketing.

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  Participation in bulletin boards/user groups specific to auctions: Being prominent

on these community communication tools is a great and inexpensive way for developing

awareness of AMT Shipper services.

 Advertisements: While not as targeted, advertisements in the city new eBay users

paper will be an effective marketing tool.

Sales Strategy

The sales strategy will be based on the conversion of first time customers into regular

customers. This strategy can be successful if AMT Shipper offers a compelling, pleasant

service. One way of achieving this goal is adhering to the business philosophy of 100%

customer satisfaction. If AMT Shipper is attentive to ensuring that all customers have their

expectations exceeded, then it will be easy to develop long-term customers. One method of

achieving customer satisfaction is the awareness of the competitive environment. By being

aware of the services that are offered by the competitors, it will be much easier for

AuctionShipper to stand out as a preferred service provider.

Sales Forecast

AMT Shipper has forecasted sales to be fairly slow for the first four months. This can be

explained by the fact that AMT Shipper is a start-up business and there is a learning curve for

new eBay users customers to become aware of the services offered. First year sales revenue

are forecasted to reach N1,500,000 with year three revenue hitting N2,500,000.

Financial Plan

The total amount budget for this business is N500,000, in which N350,000 will be loan from

bank and the owner has a sum of N150,000 with her for a start.