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The Fairy Godmother Essay

3895 words - 16 pages

E-Business (QRT2) Task 1
Proposal for Expansion into the Online Market
Part 1

E-Business (QRT2) Task 1
Proposal for Expansion into the Online Market
A1. Viability of Product/Service
The Fairy Godmother is a small, locally-owned business currently based in Bloomington, Indiana. The main source of business comes from local customers interested in custom clothing. The two biggest revenue streams come from the custom production of prom dresses and drag costumes. The business does offer other services such as custom costumes for Halloween or fan conventions, regalia for graduation, and formal wear for any occasion.
Currently, The Fairy Godmother does not have an advertising campaign ...view middle of the document...

For example:
* Prom dresses are a seasonal portion of The Fairy Godmother’s business. Because of the local nature of all sales, the company does not have the desired demand for these items. Opening business to online customers will increase demand and ultimately increase The Fairy Godmother’s market share.
* The number of drag queens in any one area is quite limited. As with the prom dresses, opening business to online customers will increase demand and ultimately increase The Fairy Godmother’s market share.
* The potential increased profit margins from the market expansion will greatly outweigh the costs to implement an online presence. Clothing is typically very light and inexpensive to ship. With all of the customization and personalization in each piece, the few dollars spent to ship an order would be negligible in comparison to the profit margin of a custom made garment.
* The Fairy Godmother will allow customer to provide electronic feedback on the products. The feedback can be used to improve current products and even design new ones. Going online will allow the company to use emails, blogs, forums, and social media to collect this information. These same communication routes will also be used to build long-term relationships and brand loyalty.
While all of this sounds very promising, The Fairy Godmother will definitely have a few risks when expanding to the online community. Customization may be a selling point, but if something goes wrong with the design, or doesn’t fit properly, an upset customer can do quite a bit of damage to the company’s name. Proper planning can help mitigate this issue with a very clear return/adjustment policy. This would need to be clear about shipping and/or refund procedures. The owner would need to determine in advance what policies she is willing to set in place before launching the website and taking orders.
Another way to mitigate damage against the brand name is customer relationship management (CRM) tools that are set in place on all social media sites. These would be used to address customer complaints and concerns that are posted online. They would even be useful to proactively promote the brand on these same channels.
A2. Current Online Competition
The current online competition is mainly and While there are still several others that are available and easy to find, we will focus on these two main competition sources for now.
a. Company and Website Design
According to, is the world’s largest online retailer. With products on the site being rated by customers across the country, it is very easy for consumers to compare quality and prices with just a few clicks. This would facilitate potential customers of The Fairy Godmother obtaining a full outfit due to the ease of finding shoes, jewelry, or any other accessory to go with their clothing.
b. E-Commerce offers a...

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