Running head: FROM TRADITIONAL TO E-BUSINESS 1

Final Report

Law Yen Fong

DeVry University

Week 7: Couse Project Final Report

From Traditional to E-Business

FROM TRADITIONAL TO E-BUSINESS 2

Law Yen Fong

205 Bay Street, New York, USA
987-789-2352

Feb, 08/2018

David Willey
206, Mountain Street
California, USA

Dear Mr. Willey:

As per our agreements last week, I’m sending you a report “online business: changing
the way of doing business”.
This report will give you all the details about online marketing, its benefits, how to use it
and what will be the requirement for implementing the online marketing. It will also discuss the
cost structure and other expenditure that will arise during the implementation of the online
marketing program.
Following are the highlight of the Online Marketing plan that will be implemented:
 Website Integration with SEO Plan
 Social Media Marketing
 Pay Per Click
 Email Shooters
As a highly skilled Internet Marketing expert, we will like you to implement online
marketing strategy as soon as possible to gain the benefits.

I hope you will find this report satisfactory.

Sincerely
Law Yen Fong
Manager
FROM TRADITIONAL TO E-BUSINESS 3

Contents

Executive Summary ............................................................................................................ 4

Introduction ......................................................................................................................... 5

Background ..................................................................................................................... 5

Scope ............................................................................................................................... 6

Discussion ........................................................................................................................... 6

Objective ......................................................................................................................... 6

Goals of Online Business: ............................................................................................... 7

Methodology ................................................................................................................... 9

Implementation ............................................................................................................. 10

Cost Difference ............................................................................................................. 14

References ......................................................................................................................... 15
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Executive Summary

Many individuals everywhere throughout the world are currently associated with the

Internet, it has changed the way we work, working together, and communicate with each other

for the advantages of doing trade with the world online. The Internet has changed the way we

live, the way we think and the way we work. The use of the Internet is developing day by day

and our businesses have perceived the need to do online business and communication.

Hippies Adventures is competing in the highly competitive and fragmented travel market.

It makes itself different from other by consistently offering best client service through its

knowledgeable travel guides and with an easy money back guarantee. Its low-cost travel package

defines its brand image. The marketing plan shows that how Hippie's Adventures will use it to

increase the profit and its brand image by moving its way of working into an online adventure

club and by receiving international customers.

This plan will describe all the methodologies and marketing techniques that will promote

travel packages and online adventure club. Hippies Adventures will describe the outcomes that

online marketing methods will create and the coveted financial related results: income

development and deals, wide client base, more tourists change over into clients, more repeated

customers, and give rates of return that will enhance the margin of contribution.
FROM TRADITIONAL TO E-BUSINESS 5

Introduction

A number of individuals everywhere throughout the world are currently associated with

the Internet, it has changed the way we work, work together, and communicate with each other

for the advantages of doing trade with the world online. The Internet has changed the way we

live, the way we think and the way we work. The use of the Internet is developing day by day

and our businesses have perceived the need to do online business and communication.

E-Business is the name given to the term of the medium of doing business online or

through the internet. Hippies Adventures in an adventures club and deals in providing vacations

and trips through the world. They used to deal with various kinds of treks and camping activities.

For such a company to survive in this competitive world, moving from traditional business to

online business is essential. There are various ways of doing E-Business

Background

A lot has been said about doing business on the Internet or "putting your business online"

For many people, this is very complex or very risky. But there are various good reasons for doing

business online (and run your business) online. In 1994, IBM and Ogilvy & Mather (an agency

of IBM) became the leader of doing online business. They give it a name “e-business”.

(Raymond, 2012). At the point when the business goes online, they need to choose which e-

business model best satisfies their objectives. The business model is characterized as the source

of income and benefit for the organization of services, administrations, and data flow, and

merchants and clients. (Timers, 2000). Since the starting of Digital Era, companies started

offering their products and service with the help of internet. They felt the instead of investing in

marketing offline, sending salespersons to the various area to generate leads, using the internet

and generating leads with the help of Digital Marketing is easier and budget friendly.
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Scope

While switching from traditional business to E-Business, lots of question will be raised

like: What are the Objectives of going to online business from traditional business? What are the

methodologies that will work with E-Business and the characteristics of online business?

Objectives will discuss the goals and purpose of this report. Why a business needs online

marketing and how e-business is different from traditional business? The methodology will

discuss the strategy and implementation of online business. We will find the answers to the

above question in detail in the next section of this report which is "Discussion". There we will

analyze E-Business with the help of various literature.

This project will require funding according to the reach of business, digital marketing

expert will work during office hour (or flexible working) to ensure that you reach is maximum

and your business is getting benefit from them. Your company will need conversion effort from

your side as the leads will be generated from digital marking experts.

Discussion

Objective

One of the major objectives of implementing E-Business in Hippies Adventures is to

increase the area of business, widens the lead generation and to earn profits by acquiring clients

from all over the world. According to an article “Benefits of doing business online”, you don't

need to run your whole business on the Internet to get profit from the opportunities for online

business. Independent companies may require an email delivered to discuss electronically with

their clients, customers, and merchants. Different businesses can utilize their website to maintain
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their whole business to run online. (Queensland, 2018) A business can accomplish its objectives

and it should push ahead in the second year (in the primary year the survival can be to increase

benefit in the second year).

Goals of Online Business:

The main goal implementing online business in Hippies Adventures is to create a value,

this value can be in different forms depending on the nature of the business. We will discuss the

values that will affect Hippies Adventures' business. These are:

1. Increase in profit margin with the help of:

a. Market Positioning

b. Quality of services

c. New client prospect

d. Increase in the loyalty of customers.

e. Increasing the reach of company (Global)

Instead of traditional marketing where people were made to go on the field to find the

customers, the online business makes it possible for a customer to reach you without any extra

expense on fiend executives.

2. Increased staff motivation

The change from traditional business to online business will ideally make it possible to

motivate an employee to an extent. All the marketing staff will feel better to have online services

for lead generation for Hippies Adventures

FROM TRADITIONAL TO E-BUSINESS 8

3. Increased Customer satisfaction:

Online business makes it easy for a customer to review a company. A positive review will

help company gaining trust in the market over the customers.

According to an article in a book “E-Business Applications: Technologies for

Tomorrow’s Solutions” by Jorge Gasos, he said that there are various benefits of E-Business like

reduction in cost benefits, sales cycle reduction, reduction in the cost of business, elimination

and control over errors. (Gasos & Thoben, 2012)

Online business is growing all the time and as you can see in the graph below, global

online business-to-consumer (BCC) sales are likely to be almost double between 2013 and 2018.

For an instance, there are some other interesting facts in the USA, although over 57% of

the population used to do online shopping, while just 28% of private companies offer their

services on the Internet.

Online business is currently roughly 7% of aggregate deals in the US, which implies that

there is space for an increased sale.

1. This graph provides information on B2C e-commerce sales worldwide in 2012 and 2013,
including the forecast by 2018 (Statista, 2018)
FROM TRADITIONAL TO E-BUSINESS 9

Methodology

According to an article the book “Internet Marketing: Strategy, Implementation, And

Practice", with the use of online business, we can separate our relationships from the old

economy to new economy. The below mention figure will tell us about the relationship between

old economy and the new economy. (Chaffey, 2008)

Hippies Adventures will need E-Business to compete with New Economy Relationship in

which Hippies Adventures will have a direct relationship with retailers and customers both. This

process is explained in detail in the below figure.

2 The figure shows that in old economy customers were not directly linked with producers,
the retailer used to come between both. But in the new economy, customers, retailers, and
producers are directly linked with each other. Image Source: Scribd (https://html1-
f.scribdassets.com/2tqzx5jneoysmaf/images/11-ab3fdccd73.jpg )
In an article “THE IMPORTANCE OF DIGITAL MARKETING", written by Kaur, Kaur

said that Quality of site today is compulsory before setting up the business site on the web. It not

just causes your business to move past geological limits to achieve new conceivable outcomes,

yet it additionally fills in as a digital goal for your gathering of people, who can reach 24x7.

(Kaur, 2017). (The PDF link is mentioned in the references)

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While, in the process of implementing online business, it is important to manage

customer to user expectations. The proper online strategy for Hippies Adventures will be needed

for this, this will depend on:

1. Target Countries/ Area: Hippies Adventures can target any country around the globe.

2. Target Customers: Hippies Adventures can target its clients all around the world

3. Duration: It takes just a few clicks for a customer to book a package.

4. Type of online promotion: Hippies Adventures will use PPC, Social Media, Analytics.

All the above factors will determine the pricing of doing business online.

Implementation

Since the possibility of the implementation of e-business systems is high, it is important

that environment/installation plans and code development be tightly controlled so that the defects

are not in various releases. Proper training will be required after implementing the online

business.

According to an article” An Analysis of E-Business Adoption and Its Impact on Business

Performance” by Wu Fang, to maintain sustainable balance and to maintain internal business

processes, lots of companies have implemented online business instead of traditional marketing.

(Wu, Mahajan, & Balasubramanian, 2003).

There is various type of Online Business, For Hippies Adventures we will prefer:

1. Social Media Marketing: Marketing via Facebook, Twitter, Instagram, WhatsApp,

etc.

2. Pay per click: Marketing with the help of Pay Per Click.
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3. Affiliate Marketing

4. Email Marketing

Haron and Azhar explained the effectiveness of online business on consumer response in

their article “Consumer responsiveness towards social media advertising”. Effective social media

advertising is now a part of most of the business, consumers are getting aware of social media

adverts and this has been explained by Haron in the article. (Haron & Azhar, 2018) (PDF link of

this is mentioned in the reference)

Internet or Online marketing is essential because of following:

1. Convenience: Either company can hire some Digital Marketing expert or to

overcome this, they can just packages that are available online from various

companies providing online marketing solutions. No need to go on the market and do

the research.

2. Reach: One of the basic advantages of online marketing over traditional marketing is

that reach of online marketing is very wide and global, whereas in traditional

marketing reach is limited.

3. Cost: Lower cost than marketing products on the Internet through a physical retail

outlet. The company needs to spend money on maintenance and rental of any

services. Also, there is no need to buy and stock to keep in store.

4. Social: Getting social this day is very important for any company. Whether the

company is small or big, people are getting digital day by day and also the way of

buying products and reaching has also been changed in recent decades.
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5. Competitive Strategy: Any business requires competitive Strategy to guarantee

competitive advantage over each other. Without any effective procedure, business

will think that it’s difficult to keep up benefits and gain benefits.

Every business has to change its strategy and adopt online business marketing in order to

ensure that they survive in this competitive world and earn profits while keeping in mind the

reviews of customers. So, for promoting business, reaching more people and gaining profits,

Hippies Adventures should adopt online business marketing.

In his article “The Effect of the Internet on Modern Businesses & Corporations”, author

Osmond explained the effectiveness of online business. He said that lots of companies which

were not able to sell their services or good by traditional means have now adapted online

business and now they are earning a lot of money. (Vitez)

Conclusion & Recommendation

Internet Marketing has changed the way of doing businesses, if all the requirements are

met, the internet will provide Hippies Adventures, a new and profitable way to do business.

I am recommending Hippies Adventures to implement online marketing program as a

pilot project. This will help the company in gaining global exposure and making profits.

 Hippies Adventures will need to implement online SEO strategy with the help of

various online SEO tools that will optimize their business.

 Hippies Adventure will need to implement analytics, which will help them to

track their promotions and target market.

 One of the major benefits of Online marketing is that company can get various

reviews and recommendation from customers online.

FROM TRADITIONAL TO E-BUSINESS 13

Cost Plan and Facts:

The graph above shows the marketing campaign comparison Online vs Offline.

(Charts, Marketing Charts, 2017)

Budget Allocation

The chart below will describe you how we will use your budget in doing online

marketing. We will use the same allocation for Hippies Adventures to gain the advantages of

online marketing campaigns.

FROM TRADITIONAL TO E-BUSINESS 14

Figure 3. A screenshot of a social media post (Charts, 2017 Marketing Budget Trends, by
Channel, 2017)

Cost Difference

30

COST OF LEADS IN $

400

0 50 100 150 200 250 300 350 400 450

Online Offline
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References

Chaffey, D. (2008). Internet Marketing: Strategy, Implementation And Practice, 3/E. In D.

Chaffey, Internet Marketing: Strategy, Implementation And Practice, 3/E (pp. 1-31).

India: Pearson Education India.

Charts, M. (2017, 02 13). 2017 Marketing Budget Trends, by Channel. Retrieved from Marketing

Budget: https://www.marketingcharts.com/wp-

content/uploads/2017/02/EconsultancyAdobe-Digital-Marketing-Budget-Plans-in-2017-

Feb2017.png

Charts, M. (2017, 09 17). Marketing Charts. Retrieved from B2C Marketers’ Online and Offline

Campaign KPIs Are Converging: https://www.marketingcharts.com/wp-

content/uploads/2017/09/PlaceIQ-Evolving-Online-Offline-Campaign-KPIs-

Sept2017.png

Gasos, J., & Thoben, K. D. (2012). E Business Benifits. In E-Business Applications:

Technologies for Tommorow's Solutions (pp. 4-5). Springer Science & Business Media.

Haron, H., & Azhar, H. H. (2018, January 25). Consumer responsiveness towards social media

advertising. Retrieved from Researchgate:

https://www.researchgate.net/profile/Hazliza_Haron/publication/311107444_Consumer_

Responsiveness_Towards_Social_Media_Advertising/links/583e553008ae2d217554caa6.

pdf

Kaur, G. (2017, June). THE IMPORTANCE OF DIGITAL MARKETING. Retrieved from

International Journals of Research- Granthaalyah:

http://granthaalayah.com/Articles/Vol5Iss6/10_IJRG17_A06_387.pdf
FROM TRADITIONAL TO E-BUSINESS 16

Queensland, G. (2018, 1 30). Benefits of doing business online. Retrieved from Business

Queensland: https://www.business.qld.gov.au/starting-business/internet-start-ups/online-

basics/benefits

Raymond, P. (2012). Learning From Winners: How the ARF Ogilvy Award Winners Use Market

Research to Create Advertising Success. Taylor & Francis, 32-33.

Statista. (2018, 2 3). B2C e-commerce sales worldwide 2018 | Statistic. Retrieved from Statista:

https://www.statista.com/statistics/261245/b2c-e-commerce-sales-worldwide/

Timers, P. (2000). Electronic Commerce - strategies & models for business-to-business trading.

John Wiley & Sons, 31.

Vitez, O. (n.d.). The Effect of the Internet on Modern Businesses ... Retrieved 2 12, 2018, from

http://smallbusiness.chron.com/effect-internet-modern-businesses-corporations-896.html

Wu, F., Mahajan, V., & Balasubramanian, S. (2003). An Analysis of E-Business Adoption and Its

Impact on Business Performance. Journal of the Academy of Marketing Science, 31(4),

425-447. Retrieved 2 12, 2018, from

https://link.springer.com/article/10.1177/0092070303255379