1 - CPP



Market Analysis

Our customers targeted will be undergrad students in need of books. The potential size of this target will be 4460 students the first year. The projected market share would be 5% of targeted students at a total forecasted sale of $356,800. Total forecasted sales continues at 5% the second year, and would result $360,320 from 4504 students, and third year would sale $363,920 from 4549 students.

1. Target Market Demographics

will target two segment markets include six campus and online which will cover 48 continental states.

The trailer-based will be targeting Six Southern California University segments: California State University, Fullerton, California State Polytechnic University, Pomona, California State University, Los Angeles, University of Southern California (USC), University of California, Riverside and University of California, Los Angeles (UCLA). is participating in 11062 undergraduate student markets.

is participating in 11062 undergraduate student markets

|In Fall 2002 |Undergraduate Student |

|California State University, Fullerton |24568 |

|(Cal State Fullerton) | |

|California State Polytechnic University, Pomona (Cal Poly Pomona) |17580 |

|California State University, Los Angeles (Cal State LA) |14296 |

|University of Southern California (USC) |16145 |

|University of California, Riverside (UCR) |12714 |

|University of California, Los Angeles (UCLA) |25318 |

|Total |110621 |

2. Market Growth and Trends

The retail book market has undergone significant concentration in recent years. An American Booksellers Association study found that second generation business, which is traditional bookstore, declined by 9.4% between 2000 and 2003. However, the rapid growth of in the last two years suggests that Electronic Commerce may lead to further market concentration. The increasing concentration of the industry has been a concern of many small booksellers. The college textbook market is substantially different from the trade book market. Textbook shoppers have a list of books that they need, and they will go to the store to buy those books. The convenience of online shopping is thus well suited to serve those customers. The local bookstore can satisfy customers by having the books right away and customers are not worry about shipping time when comparing to online store. Therefore, combines the strengths of the first two generations, while avoiding of their weaknesses.

1.3. Customer base defined: the main customers will be undergraduate students at six colleges who want to buy lower division GE textbooks at their convenience.

1.4. Market size and Potential: Initially, targets six major college campuses along Southern California all of which are fifty miles in diameter apart:

|University |Forecasted targeted students at 5% market share |

|Cal Poly Pomona |173 |

|University of California Riverside |197 |

|Cal State Los Angeles |212 |

|University of California Los Angeles |281 |

|Cal State Fullerton |123 |

|University of Southern California |129 |

Product and Service

Products focuses on high volume low variety textbooks, which is English, History and Mathematics only.

English

• Basic Communication Skills

• Basis Sill for ESL

• College Composition

• Freshman English I

• Freshman English II

• Introduction to Modern Fiction

History

• History of Civilization

• Introduction to United States History

• World History: Twentieth Century

• Europe Since 1845: Cold War

Mathematics

• Intermediate Algebra

• Liberal Arts Mathematics

• College Algebra

• Pre-calculus

• Calculus

Multivariate Calculus

Competition

One of our main industry competitors is College Bookstores, which is based on inside of school and targeting to college students, such as UBE in Cal Poly

With a “click and mortar”. Our online competitors are , Barnes & Nobles, Boarders, and .

3.3 Comparison of Strengths and Weaknesses and Key Competitors

First generation such as only operated on the Internet; second generation such as Barnes & Noble supplemented their existing sales and services facilities with extensive Internet capability. represents and advanced approach to E-Commerce because it combines the strengths of the first two generation, while avoiding many of their weaknesses, it can penetrate sizable existing niche markets more effectively than Internet only business, it more cost effective than establishing and maintaining substantial retail network or a major freestanding Internet portal web site.

3.4 Competitive Success Factors

The competitive factors listed below are used to compare to the other players in the industry. These factors are critical for attracting new users and retaining existing users.

3.4.1 Price (ADM}

Pricing is a vital factor for . Purchase price reflects selling costs therefore negotiations among suppliers is a must. We aim to buy books at the cheapest price available.

3.4.2 Promotion Strategy

We are totally new company in the bookstore industry and there are some big competitors in this area. Therefore, to compete to those competitors, we are offering some promotion based on differentiation comparing to others. Customers can take an advantage in promotion such as discount and building credit to get other books for free.

3.4.3 Strong Relationship

members post variety of information such as project, news related to class subjects, text information and so forth. The users can share this tremendous source of critical textbook information. It is available on a membership basis for any college or university professor, and best of all. Therefore, member of Share Text maintain their strong relationship in a community by referral effect.

3.4.4 Direct Transactions

Selling and buying between members who have the books to sell and buy is accessed autonomously based on the enormous users. The users can set the price of textbook between users who are willing to buy and sell the textbook. We help matching buyers and sellers by providing price and product information. In case of operated by eBay, gets a 5 dollars commission whenever customers succeed the transaction. However, because doesn’t take any commission from our users, our users can take better deal without deducting the commission. If our users can get 5 dollars more each transaction, they are willing to pay the membership fee to in order to use our website. BookTruck..com will take the idea from Barnes & Noble that evaluates the transaction quality about each transaction as a ranking such as on-time delivery, buyer’s satisfaction, payment, and so forth.

3.4.5 On-time shipping service

We will offer the best service to customers from ordering to shipping. Based on contract to carriers such as Air Borne Express, FedEx, and UPS, we will try to meet you on time.

3.5.5 Competitive Market Niche

Truck can be move around freely, like mobile homes; can travel to the customers

3.7 Barriers to Entry

To be a new comers which enters an existing business, there are some obstructions that make difficult for our company to enter, such as capital requirements-Amazon invest huge financial resources in order to produce computer microprocessors to any competitors; Economic of Scale-some existing companies has a significant cost such as Amazon; Access to Distribution Channel: we have difficulty obtaining book market because Amazon are priority known by consumers.

Marketing Strategy

1. Overview of Competitive Strategy

is a startup company and the financial capital is not enough to compete with big dot COM companies such as . We try to provide convenience and focus on low variety and high volume textbooks to forward a lower price. However, we would not be the low price leader, and we will use percent of markup depend on the discount rate from our publishers. Also we will support better customer service such as free shipping and easy refund and return; students can sale their used textbook on trucks and pick up their book, which ordered on line.

2. Pricing Strategy

aims to provide convenience. In a market with such high competition (i.e. ) would not be able to be the low price leader. Because of this, percentage of markup would depend on the discount rate from our publisher.

Depending on the break-even analysis, the markup on books will differ. For discussion purposes, we will say that we are marking up the books from between 10-15%.

3. Advertising Strategy

will advertise online with banner, passing out flyers on campus, and with event booths around the school.

1. Customer Surveys

Surveys are an easy way to find out what your customers think about our business, products and services. And we do not have to spend a great deal of money to conduct these surveys. Some techniques include mailing written surveys to your customers and hoping they will respond, telephoning them and asking them a series of question, or giving them a card to fill out and mail back in.

2. Banners, Flyers

Banner ad is an important component in our promotion campaigns. We will place our ad on a page linking to the next. Text in ads will include a call to action, the shaping of ads to appeal different demographics on different site, do well to rotate ads. The banner on can attract traffic by designing it professionally and effectively. For offline business, flyers will be pass out to six campus during the first week of school.

4.4 Public Relations and Promotions

Public Relations: There are several ways that used to keep a good public relations in our society: We give free gift during lunch time at first week on campus, such as pen, pencil, notes pad with logo; we will mail coupon to our customer for purchasing more than $200 without refund during the first week of school, the coupon is 5% of total value and it can be spend on campus restaurant such as Panda Express and Carl’s Junior; We will coordinate with each school to build a scholarship program, which used to reward student who keep a GPA 3.9 by $1000 per year. We hope these ways will let our company is knew by more people.

4. Marketing Budget

|Notepad (with logos) 5000 pcs $6250 |

|Stick in Pens 5000 pcs $1915 |

|Flyers 5000 pcs $ 499 |

|Total $8664 |

Deciding how much it would cost to ring more students to our web site and truck through promotion and advertising.

6. Estimated market share-by time period

|Year |Total Students |Total Sales |

|2003 |4460 |$356800 |

|2004 |4504 |$360320 |

|2005 |4549 |$363920 |

4.7 Start-Up Market

is a third generation, which represents an advance approach to E-Commerce. seeks to be recognized as the pre-eminent retailer of college textbooks, initially in Southern California, and in time nationally.

4.8 Sales Forecast (table)

  |  |Calpoly |TB |  |  |USC |TB | |  |  |  |  |  |  |  |  | |English |2320 |Total students | |English |251 |Total students |  | | |1972 |85% buy books | | |213.35 |85% buy books |  | | |749.36 |38% buy books online | | |81.073 |38% buy books online |  | | |1124.04 |57% buy books from Brick and Mortar | | |121.6095 |57% buy books from Brick and Mortar |  | | |98.6 |5% market share for Booktruck |  | |10.6675 |5% market share for Booktruck |  | | | |  | | |  |  |  | |History |1439 |Total students | |History |1327 |Total students |  | | |1223.15 |85% buy books | | |1127.95 |85% buy books |  | | |464.797 |38% buy books online | | |428.621 |38% buy books online |  | | |697.1955 |57% buy books from Brick and Mortar | | |642.9315 |57% buy books from Brick and Mortar |  | | |61.1575 |5% market share for Booktruck | | |56.3975 |5% market share for Booktruck |  | | |  |  |  | |  |  |  | |Math |322 |Total students | |Math |1462 |Total students |  | |  |273.7 |85% buy books | |  |1242.7 |85% buy books |  | |  |104.006 |38% buy books online | |  |472.226 |38% buy books online |  | |  |156.009 |57% buy books from Brick and Mortar | |  |708.339 |57% buy books from Brick and Mortar |  | |  |13.685 |5% market share for Booktruck |173 |  |62.135 |5% market share for Booktruck |129 | |  |  |UCR |  |  |  |UCLA |  | |  |  |  |  |  | |  |  | |English |1993 |Total students | |English |1883 |Total students |  | | |1694.05 |85% buy books | | |1600.55 |85% buy books |  | | |643.739 |38% buy books online | | |608.209 |38% buy books online |  | | |965.6085 |57% buy books from Brick and Mortar | | |912.3135 |57% buy books from Brick and Mortar |  | | |84.7025 |5% market share for Booktruck |  | |80.0275 |5% market share for Booktruck |  | | |  |  |  | |  |  |  | |History |1600 |Total students | |History |1646 |Total students |  | | |1360 |85% buy books | | |1399.1 |85% buy books |  | | |516.8 |38% buy books online | | |531.658 |38% buy books online |  | | |775.2 |57% buy books from Brick and Mortar | | |797.487 |57% buy books from Brick and Mortar |  | | |68 |5% market share for Booktruck |  | |69.955 |5% market share for Booktruck |  | | | |  | | | |  |  | |Math |1048 |Total students | |Math |3076 |Total students |  | |  |890.8 |85% buy books | |  |2614.6 |85% buy books |  | |  |338.504 |38% buy books online | |  |993.548 |38% buy books online |  | |  |507.756 |57% buy books from Brick and Mortar | |  |1490.322 |57% buy books from Brick and Mortar |  | |  |44.54 |5% market share for Booktruck |197 |  |130.73 |5% market share for Booktruck |281 | |  |  |Cal State Fullerton |  |  |  |Cal State LA |  | |  |  |  |  |  |  |  |  | |English |732 |Total students | |English |1883 |Total students |  | | |622.2 |85% buy books | | |1600.55 |85% buy books |  | | |236.436 |38% buy books online | | |608.209 |38% buy books online |  | | |354.654 |57% buy books from Brick and Mortar | | |912.3135 |57% buy books from Brick and Mortar |  | | |31.11 |5% market share for Booktruck |  | |80.0275 |5% market share for Booktruck |  | | |  |  |  | |  |  |  | |History |460 |Total students | |History |1646 |Total students |  | | |391 |85% buy books | | |1399.1 |85% buy books |  | | |148.58 |38% buy books online | | |531.658 |38% buy books online |  | | |222.87 |57% buy books from Brick and Mortar | | |797.487 |57% buy books from Brick and Mortar |  | | |19.55 |5% market share for Booktruck |  | |69.955 |5% market share for Booktruck |  | | | |  | | |  |  |  | |Math |1711 |Total students | |Math |1462 |Total students |  | |  |1454.35 |85% buy books | |  |1242.7 |85% buy books |  | |  |552.653 |38% buy books online | |  |472.226 |38% buy books online |  | |  |828.9795 |57% buy books from Brick and Mortar | |  |708.339 |57% buy books from Brick and Mortar |  | |  |72.7175 |5% market share for Booktruck |123 |  |62.135 |5% market share for Booktruck |212 | |

This chart is used to forecast the total books sold on each campus. Total student in each field represents the population taking the class. 85% of this total student field will buy books, and total estimated students to buy books are displayed. 38% will buy books from online, and 57% will buy books from bookstores. We will anticipate 5% penetration into the total market of 7.12 million.

5 Sales Strategy

5.1 Sales Process Description

On , we will support the best services to minimize customer’s time on selection, shipment and the collection of payment. When customer select a textbook and send the order form to us, our customer service department will reply immediately with the code of the book, the date of shipment, estimated arrive date, the amount they paid, so customer can keep track with their orders. At the same time, accounting department will confirm customer’s credit information with bank. The shipping department will contact UPS and give them the textbook package for delivery.

2. Distribution Channels

We rent truck when and where needed

We will transport inventory between sales locations

We provide different schedule of different school

5.3 Customer Order Life Cycle

On , after a customer sends their order, usually there will be 48 hours deliver time for shipment.

5.4 Service and Warranty Policies

• Provide sales location for customer to identify their special need for book.

• It’s convenient for student to bring their used textbooks to the sales event

• The signs and folding table will be set at the sales even.

• Offer customer service via the Internet and sales event

• Reservation on specific textbooks

• Building a community to provides customers a place to share their opinion and negotiate better price

• On the Internet, we will enable students to advertise the used books they plan to sell at the sales event

• For customers convenient, we accept money order/check.

5. Warranty Policy

Customers are guaranteed will get refund or return during the 5 days after their purchase.

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