Felix Niederhauser
Rotterdam (NLD)
Role(s):
Founder/Owner/Principal
Miracle Marketing International
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Startup
Location:
Rotterdam
Industry:
Internet
Year Founded:
2010
Number Employees:
1-10 people
Business Stage:
Creation/Idea
Entity Type:
Sole Proprietorship
Description:
Executive Summary
The objective of Miracle Marketing International is to achieve € 117.000 turnover, € 4.872 gross profit and cash -flow saldo of € 11.207 at the end of year 1 and € 624.540 turnover, € 127.296 gross profit and € 147.655 cash -flow in year 3 (app.) The above is supported by and includes a massive marketing budget of 33% of the turnover during the first year, followed by 14% and 13.5% in the following years.
The strategy is to establish 10 regional Web-Shops for food supplements and nutrition in the fastest growing (average
20+% per year, see app) regions, offering the well-known high quality products from Herbalife, with a worldwide brand- name penetration close to Coca Cola.
Our target group, marketing strategy and marketing tools, have been chosen wisely and with sincere con- sideration of all the relevant demographics and the respective internet behavior researches.
The idea and vision is unique and delivers guaranteed results. Direct selling via regional Web-Shops covering multiple languages, cultures and regions with one supplier who is able to handle the challenge in all regions, not only in terms of distribution but also providing worldwide support from it‘s reputable R&D including tailor made medical advice for specific customer needs as well as access to his Intranet, offering key product information for over 70 countries, screened on compliance with local legislation. Market research confirms that direct selling is a growing way of doing business: In the USA, 74% of adults have purchased products from a direct seller. This behaviour and trend is transformable to other world regions. The USA turnover in 2009 has been reported with $29.6 billion sales per year. This trend is also supported by the Internet users as shown in the ABN Amro documentation ―Visie op Retai 2010‖ page 24 ff and several studies from the University Worms (app.)
MMI is thinking globally, however we will act locally and adapt our local country shops not only to the local currencies and product assortment, but also to the respective culture and mentality by using the ―appropriate‖ English language from the existing Herbalife data bank.
Market research confirms that direct selling via the internet is a growing way of doing business. Special emphasise has been given to the market size, the target groups, the demographics and the competition. The target group is split into three segments: People who want to lose weight, gain weight and Sporters/body builders. More than 6.4 Million people worldwide, search monthly in English for these key words. With the 10 regional web-shops we will reach 57% to 88% of the people in the targeted segments or over 4.5 Million potential customers.
The above apart from the fact that to-day‗s internet saturation is some 28% with 1.9 billion people still in the beginning.
As we write this document the internet community is growing with 1 Million new users per day.
Pareto‘s principle of ―the vital view‖ is clearly confirmed by the research results for existing supplement web -shops: some
80% of the sales is channelled through 20% of the shops.
The vast majority of the shops do not attain a level of sustainable business mainly due to a lack of professionalism, low or no marketing budgets and very likely a lot of those are dormant. On average this eighty per cent of the shops in the targeted regions score around 5 visits a month. We do not expect competition of any significance from those shops. Focusing on the 20% of the web-shops in the targeted regions, research shows that the top three competitors in each region have near 3 million visitors a month in total, reaching an internet penetration that varies between 7 and 88%.
This more than substantially contrasts with (URL removed) with over 113 million monthly visitors (app.) It is reported that Herbalife‘s Internet popularity percentage ranks with 99.25 %! Considering the above we strongly believe that our strategy, backed up by a substantial marketing effort, should enable to achieve MMI‘s objectives. The 20% supplement web-shops in the regions concerned make between 1 and 30 sales transactions per day. The same research shows, that the value starts at € 15 and can exceed € 100 per transaction. MMI‘s basic assumptions in this plan are as follows: During the start-up year, we forecast 0.4 transactions per day, with an average of €75 per sale and foresee to reach 1 sales transaction per shop per day by the end of year 1. With a tight marketing and promotion plan, we will bring this turnover up to 2 daily transact-tions per shop. Contingency planning has been considered, and is outlined on page 26.
The Business Process is simple and unique; after generating massive traffic to our web shops by means of professional promotion according to our marketing mix, the visitor eventually becomes a first time buyer. He/she is choosing the respective products; use a SSL certified secure payment system and closes the transaction. The system is taking care of Invoicing and order confirmation, whilst we will place the order in the respective country via Herbalife Netherlands for t he next day delivery, directly from one of the 73 Herbalife Distribution Centres.
MMI is organized as a one men company (ZZP), initially without any employees. Third party suppliers will take care of the Administration & Accounting, the SEO/SEA, web hosting and web site maintenance, so I am free to do what I know best, selling and business developing. In order to make this company happen, we need a budgeted loan in the amount of
€30.000 over a period of 3 to 5 years.(Equivalent to USD 43k)!
I am confident, that this business plan finds your approval, thank you for your support and positive consideration.
Sincerely yours and God bless you
Felix (URL removed)derhauser