Organizations and businesses run for profit. However, irrespective of the revenue generated by the firm in any financial year, a critical factor that depicts the level of success for any business is the strength of its brand name. This report highlights a new business model Brandbuild using the nine component business model canvas to determine its critical success factors and overall feasibility as a business.
Brandbuild is an advertising agency that takes complete responsibility regarding the client’s social media presence, public relations, search engine efficacy and positioning across digital platforms. Effective branding continues to be a critical factor in determining a brand’s positioning in the minds of its customers (Choi, 2017).
Entrepreneurship is the process of starting a new business and the people responsible for the business are known as entrepreneurs (Kuratko, 2016). There has been an exponential rise in the number of entrepreneurs throughout the country. Australian Bureau of Statistics states that there were over 2.24 million business actively trading in Australia in the year 2017 (ABS, 2018). This only goes to show that there is a high level of competition among new businesses that are introduced in Australia year on year.
The crux of a successful business is a unique idea, efficient planning, effective execution, customer retention, employee satisfaction and impeccable branding. The efficiency of a business’s branding can go a long way in ensuring high sales and positive positioning. Within every industry, there is cut throat competition and the rule of the jungle ensures survival of the fittest. As far as a business’s fitness is concerned, the strength of their brand name and the positioning that the brand holds in the minds of its stakeholders are critical success factors.
Australian economy is strong (13th largest in the world), their job market is solid and salaries offered are high with the minimum wage of AUD 18.22 (Forbes, 2017). Therefore these aspects of the business are already taken care of. Hence the marketing and branding of the business is the factor that can give the business the desired edge in order to survive and sustain the increasing competition within the industry at large.
Brandbuild servers the purpose of offering businesses with a one stop shop for all their branding needs. There are several factors that are required in order to ensure that a business is able to build a strong brand name for itself. This includes traditional marketing tools as well as digital marketing. Digital marketing refers to the process of marketing a product or a service across digital platforms and ensuring its high accessibility and availability through various search engines. (Stephen, 2016). Social media also plays a critical role in reaching out to customers by businesses today (Ashley & Tuten, 2017).
The value proposition canvas aims to provide an effective mapping of job done on the right to the value that it aims to deliver on the left (Kyhnau, 2017). BrandBuild aims to accomplish ensure effective branding and positioning of its clients by conducting five important activities. Social media marketing, digital marketing (SEO & SEM), Events & PR, Traditional advertising (Billboards, TV ads, and print ads) and content writing. The business would be skilled in taking complete responsibility for handling social media pages for clients, introducing them to new events and fests that would help the business’s positioning, optimizing their search through various engines and ensuring adoption of efficient marketing strategies through all digital platforms. This would allow businesses to focus on their core functions and rest assured that their marketing department is being handled by experts. This would also reduce on their overall cost of hiring employees for their marketing department.
Such a set up would enable businesses to ensure a positive brand positioning and an active presence across digital marketing platforms. A large part of Brandbuild would also be to conduct surveys and understand the current brand’s value, awareness and positioning and thereon strategize a future course of action to improve upon the same. Frequent brand audits would also keep the business aware regarding customer’s attitudes, behaviour and preferences towards the brand.
Feasibility towards any business is determined by four important factors. This includes human feasibility, technological feasibility, market feasibility and financial feasibility (The Balance, 2017). The first pivot was the extensive rise in businesses throughout Australia. The number of active businesses has gone up by 3.1% since 2015-2016 (Appendices: Figure 1). The second pivot is the growth rate of the Australian economy making it suitable for the establishment of new businesses. The growth witnessed by the economy continues to remain well above the 2.75% level (Appendices: Figure 2). Third pivot includes the growth in the advertising market within Australia signifying the increasing importance of advertising among Australian businesses. The digital advertising market $7.9 billion in CY 2017 (Appendices: Figure 2). The business is largely feasible. Marketing of a business has come a long way and there has been a noticeable shift from traditional forms of marketing to digital platforms. Even on the digital platforms, there are new innovations introduced frequently which are changing the shape of the advertising industry. Such rampant growth assures an optimistic future for BrandBuild.
A business model canvas is attached at the end of the file to understand the business model of BrandBuild. The target market for any business includes the set of customers whose needs the business aims to fulfil (Schlegelmilch, 2016). The target market for BrandBuild would involve new age start-ups who do not have a strong marketing department in place yet. Businesses who have been in existence since long but need to revamp their marketing strategy would also be targeted.
Two key partners would be leading the team. The departments would include specific teams for handling digital marketing (SEO & SEM), PR & Events, Social media marketing and content writing. The brand would be positioned in an effective manner wherein services would be priced relatively lower to the competitors. Such a strategy is known as price penetration strategy (Khan, 2014). The lower price would help in penetrating an already competitive market and help the business in gaining customers.
The value proposition for customers would be a one stop shop for all their digital marketing needs. The idea is take complete responsibility of all their marketing needs to the extent that they do not have to hire employees or maintain an in-house team for the same. Customer relationships would be maintained at a key level to ensure year or year customer retention. Customer retention can be ensured by delivering excellence through service and maintaining profitable relationships through effective customer management (Choudhury & Harrigan, 2014).
Lastly the revenue structure would include quarterly, six monthly or annual fees received from clients. The fees would be different for different clients depending upon the newness of the business, size of the business and responsibilities shared by the business.
Critical factors are those elements which define the level of success of failure of a business (Cochrane, 2014). CSF for BrandBuild that would ensure business success would primarily include number of clients associated with the business after the first six months, one year and every year post that. Consistent feedback would be taken from clients and a balanced score card would be maintained in order to understand the effectiveness of the business. Balanced score card is an efficient performance management tool that will help businesses analyse the performance of employees in terms of the execution of activities within their control (Hoque, 2014).
The revenue generated per client would also help in understanding profitable clients as well as not profitable clients. The critical success factor would be to retain profitable clients and make non profitable clients profitable. Client renewal rate refers to the number of clients that renew services and remain associated with the business. Client renewal rates would be essential to understand if the clients are happy with the business activities or not (Han & Hyun, 2015). Effective customer relationship management is the key to high level of customer retention (Tripathi, 2014). A dedicated customer relationship manager would be recruited who would be the one point contact for all clients with the business. This CRM will help the top management is identifying and understanding the problems faced by clients with the business. Lastly, the success of the client businesses associated with the firm will also help in understanding the true impact of the marketing strategies adopted by the business to ensure awareness and efficient positioning. In order to make sure that success of the business based on these factors, BrandBuild would focus on effective recruitments, upgrading technology on a regular basis and striving to accomplish long term relationships with clients.
Conclusion
BrandBuild will be an advertising and marketing agency that would help startups and other businesses in ensuring high customer traction by devising and implementing effective strategies to market their products and services. The idea is not just to increase sales but enable organizations to build a strong brand which people recognize, like and associate with. Branding continues to be an essential aspect of any business and BrandBuild would help organizations in ensuring the effectiveness and strength of their brand.
References
ABS, (2018), ‘Business counts up 3.1% in the year to June 2017’, Available at https://www.abs.gov.au/ausstats/[email protected]/mediareleasesbytitle/950EC94DB899312ECA2573B00017B8F4, retrieved on 5 September, 2018.
Ashley, C., & Tuten, T. (2015). Creative strategies in social media marketing: An exploratory study of branded social content and consumer engagement. Psychology & Marketing, 32(1), 15-27.
Choi, S. C. (2017). Defensive strategy against a private label: Building brand premium for retailer cooperation. Journal of Retailing and Consumer Services, 34, 335-339.
Choudhury, M. M., & Harrigan, P. (2014). CRM to social CRM: the integration of new technologies into customer relationship management. Journal of Strategic Marketing, 22(2), 149-176.
Cochrane, T. D. (2014). Critical success factors for transforming pedagogy with mobile W eb 2.0. British Journal of Educational Technology, 45(1), 65-82.
Forbes, (2017), ‘The rising success of startups down under’, Available at https://www.forbes.com/sites/groupthink/2017/08/10/the-rising-success-of-startups-down-under-inside-australias-entrepreneurial-ecosystem/#454e9e991cda, retrieved on 5 September, 2018.
Han, H., & Hyun, S. S. (2015). Customer retention in the medical tourism industry: Impact of quality, satisfaction, trust, and price reasonableness. Tourism Management, 46, 20-29.
Hoque, Z. (2014). 20 years of studies on the balanced scorecard: trends, accomplishments, gaps and opportunities for future research. The British accounting review, 46(1), 33-59.
Khan, M. T. (2014). The concept of’marketing mix’and its elements (a conceptual review paper). International journal of info Hoque, Z. (2014). 20 years of studies on the balanced scorecard: trends, accomplishments, gaps and opportunities for future research. The British accounting review, 46(1), 33-59. rmation, business and management, 6(2), 95.
Kuratko, D. F. (2016). Entrepreneurship: Theory, process, and practice. Cengage Learning. India.
Kyhnau, J. G. (2017). Value Proposition Canvas. In Marketingmodeller (pp. 74-79). Samfundslitteratur. United Kingdom.
Schlegelmilch, B. B. (2016). Segmenting Targeting and Positioning in Global Markets. In Global Marketing Strategy(pp. 63-82). Springer, Cham.
Stephen, A. T. (2016). The role of digital and social media marketing in consumer behavior. Current Opinion in Psychology, 10, 17-21.
The Balance, 2017, ‘Feasibility study’, https://www.thebalance.com/what-is-a-feasibility-study-3514853, viewed on 5th September, 2018.
Tripathi, M. N. (2014). Customer Satisfaction and Engagement-Customer Retention strategies for brand manager. Vilakshan: The XIMB Journal of Management, 11(1).
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