Customer Segmentation
Discuss about the Kogan Business Model for Insurance and Travel Deals.
Kogan Company is an online selling business in Australia. The company sells a variety of electronic products and other electronic-based services. The company deals with offering different services including Kogan mobile, internet, insurance, travel deals and Kogan marketplace. The company’s objective is to make their products and services more accessible and affordable. The company offers the leading products in its marketplaces and the retail. This product includes home wares, hardware, toys, electronics, and others. The company also provides valuable internet plans and unbelievable travel plans for the people in the country.
The company’s business model provides for the reduction of costs so that they can be able to maintain their customers. The company has been trying as hard as possible to come up with strategies to be able to cut the prices of their commodities to be able to meet the demands of their customers (Alles et al, 2018). Therefore, the company has applied different incentives in their effort to cut the cost of the commodities. For instance, the company uses plain items for packaging which enables them to save 10$ in one package. They also avoid paper costs by offering their user manual online. In addition, the company uses a feature called smart ship which allows commodities to be packed together in order to reduce the shipping cost. Live price is also another strategy used by the company to be able to reduce the prices for the customers. This is where the company allows consumers to buy commodities before full production. Therefore, the company is able to cut the cost of all the tags used in the selling of the commodities after full production (Giacosa, 2018).
Customer segmentation; customers are an important aspect of the success of a business. The company uses different ways to create awareness among the customers on their products and different offers. The company uses direct mails to advertise their commodities (Pozo, et al 2018). This promotes the sales of the company. It also uses other different strategies in the creation of awareness among the customers. In addition, The Company uses catalogs as a medium of advertisement.
Key partners: key partners of the company include the government, competitors and other important shareholders (Bengtsen, & Barnett, 2018). It has been innovative enough to be able to come up with a different strategy to acquire competitive advantages over the other businesses. The company also maintains a good relationship with the suppliers to enable a consistent supply of quality goods and services. Creation of awareness to the consumers is done via many ways. The company uses its website to advertise its commodities and to make the customers beware of the new c commodities and services. The company also maintains a good relationship with the other companies to be able to gain important information about the market and the external environment.
Key Partners
Value proposition: the company is based on serving its customers in the best way possible. Its values its customer and has an objective to make electronics available to the customers at an affordable price. The company aims at making the commodities available to the customers easily and at a fair cost (Poida, 2018). They value reduction of the cost of the commodities to ensure that the consumers save much of their money. The company has an objective to make the latest technology available to the Australians. The only way that the company is able to do this is by cutting the cost by eliminating all the intermediaries to reduce cost.
Main activities: the company is involved in different activities in its objective to provide the best technology to the clients. The company is mainly involved in advertising its commodities through the different medium of advertising (Schluep, 2018). The company is also involved in coming up with different strategies to be able to cut the prices of the commodities to be able to make them affordable to the people. The company advertises its commodities via catalogs, direct emails and on its website.
Channels: The Company is able to make sure that the consumer gets a quality product at cheaper prices by allowing the customers to buy products before they are completed. This enables the customer to be able to keep in touch with the commodities after importation (Valbuena Martínez, 2018). The company also uses different channels to reach the outside world. the company uses a strategy that enables them to dispatch their commodities in a fast and efficient way. The company also uses the website to be to notify their customers of the arrival of the commodities and the place where they can get the commodity.
Cost structure: the company does not spend all the capital on the manufactured goods because it allows the customers to be able to access the goods before full production. The company is able to earn a lot for the initial investment as it works hard to cut the cost of the goods by use of different strategies.
Key resources; The Company has great recourses in its advertising mediums starting from the direct mailing system. It also has a website where the advertisement for its commodities is done.
Revenue streams: the company’s revenues are realized after all the risks and rewards have been transferred to the customers (Giacosa, 2018). These are all the revenue from the sale of goods including the profits realized in the sales. The company realizes revenue from services when the managers ensure that the company has rendered travel, mobile, and other services. Below is an illustration on the revenue stream of 2016 and 2015
Value Proposition
Revenue stream 2015-2016
2016 2015
Sales of goods 204213344 199552196
Rendering of services 4625461 433122
Totals 208838805 199985318
Other revenue
Marketing subsidies 1184759
Other revenue 1135031 303295
211158595 200288613
Customer relations; The Company in most cases uses direct emails to maintain good relations with their customers (Giacosa, 2018). They also use catalogs as a way of reaching their customers in an effort to maintain good relations with them. The company also uses social media to be able to reach their consumers. The consumers after buying their commodities are able to like the company’s products on Face book to be able to influence more customers.
Interrelationships; The consumers get information from the website of the company where all the information about a product is posted. The boost of the stoke and other expenses when makes the profit of the company after they are abstracted for the net sales. The revenue of the company is realized after the costs have been transferred to the customer (Mosca, 2018). The customer gets information from the company’s most crucial activist, which includes advertisement and catalog from the company.
The most critical factor that has to lead to the success of the business is the trend, which has been embraced by the CEO Russian of the business movement to online. The company also has strived to stay updated on technology and collaborations. This is the main factor in the company’s success.
There is a risk that most of the expected customers will stagnate to their old way of buying things and never shift to online. In addition, the website of the company might not be able to change with the changing demand and preferences of the customers. Increased competition is also a great risk to the company. Lastly, the worsening of the economy is posting a danger ahead for the company (Barr et al 2018).
I would move to get more understanding of customers required to be able to understand what tasks need to be completed that will increase the purchase of the commodity (Faustino, 2018). I would also use different means of product differentiation to ensure that my products are different so that I may acquire a competitive advantage over other businesses. Being innovative and come up with different projects, which will create a need for the consumers.
From the above we can see that the company has maintained a good customer’s relationship, which makes parts of their strength. The company is has also been able to cut their prices through different ways and therefore promoting their sales. The strategies used in the advertisement of the products of the company makes a great percentage of its strength. They use direct emails and catalogs in their websites leads to great product promotion. On the other hand, the company through cutting of prices leads to the reduction of their profit. The cutting of prices is a weakness, which can be avoided by use of other methods of product promotions such as differentiate
Conclusions
In conclusion, a business success is a product of very many factors. All these factors have a relationship and need to be interconnected to bring the desirable results. A business requires that all the important aspects be brought together and out of their relationships, different solutions for the business are found. The company has been successful in the application of their business model.
|
Key partners 2 Suppliers and mailing house |
Key activities 4 Provide best technology |
Value proposition 3 Make technology available at a an affordable cost |
|
Channels 5 Online through the website |
Revenue streams 8 Over 10% profit margin |
Cost structure 6 Stock about 40% sales 30% and admin around 20% of the revenue |
|
Customer relations 9 Direct mail and social media |
Key resources 7 Advertising media and direct mail |
Customer segment 1 Direct mail and social media |
References
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Barr, N., Chapman, B., Dearden, L., & Dynarski, S. M. (2018). Reflections on the US college loans system: Lessons from Australia and England.
Bengtsen, S. S., & Barnett, R. (Eds.). (2018). The Thinking University: A Philosophical Examination of Thought and Higher Education (Vol. 1). Springer.
Faustino, P. (2018). Television market, ownership concentration and management strategies in Portugal. International Journal of Digital Television, 9(2), 125-146.
Giacosa, E. (2018). How the Business Model Could Increase the Competitiveness of a Luxury Company?. In Sustainable Luxury, Entrepreneurship, and Innovation (pp. 17-29). Springer, Singapore.
POIDA, I. I. (2018). Rolul auditorului în contextul evolu?iei reglement?rilor contabile. Audit Financiar, 16(150).
Pozo, M. J., & Durán, R. (2018). Model CANVAS: Its Application for the Promotion of Regional Economies Under the Case Study of Buffalo Milk Cheese. Journal of Modern Accounting and Auditing, 14(4), 174-188.
Schluep, R. B. (2018). Fashion Technology and the Development of New Business Models. In Fashion and Textiles: Breakthroughs in Research and Practice (pp. 174-210). IGI Global.
Valbuena Martínez, M. C. (2018). La movilidad humana y migraciones y sus motores económicos.
Mosca, F. (2018). Stone Island: Product Innovation and Market Positioning as Drivers of Value Creation. In Product Innovation in the Global Fashion Industry (pp. 35-56). Palgrave Pivot, New York.
Giacosa, E. (2018). How the Business Model Could Increase the Competitiveness of a Luxury Company?. In Sustainable Luxury, Entrepreneurship, and Innovation (pp. 17-29). Springer, Singapore.
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