2. Table of Contents
⢠Executive Summary
⢠Situation Analysis
⢠Strategic Analysis
⢠Market Selection
⢠SWOT
⢠Traecy Model
⢠PEST Analysis
⢠Porters Five Forces
⢠Buying Behaviors
⢠Competitor Analysis
⢠Social Media Marketing Analysis
⢠Social Media Zones
⢠Marketing Proposal
⢠Customer Engagement Strategy
⢠Marketing Budget
⢠Timeline
3. Situation Analysis
Boxed is an online & mobile app membership-free bulk wholesaler. Started in 2013 by now CEO, Chieh
Huang and long time friends, Christopher Cheung, William Fong & Jared Yaman privately owned, boxed has
grown into >100 million dollar enterprise.
60% of Boxed customers are between the ages of 18 & 44 with some terming the startup as the âCostco for
Millennials. Their target audience has grown to include families, specifically mothers, short on time. âBoxed
Means Bulkâ conveys both value and their motto also includes ânever run outâ. Boxed also targets business
with similar value proposition â Essentials that fit your budget, delivered to your businessâ
Boxed is looking got increase their e commerce presence and market share. They compete with Amazon,
Costco, Sams Club and Walmart. Similar to Amazon, Boxed does not operate from a storefront, rather
through on line and mobile applications but like Costco and Sams â Boxed relies on bulk to generate
customer value.
4. Strategic Analysis
⢠Market Selection
⢠SWOT
⢠Traecy Model
⢠Porters Five Forces
⢠Buying Behaviors
⢠Competitor Analysis
⢠Social Media Marketing Analysis
⢠Social Media Zones
5. Market Selection
Based on a combination of
average family size and
average household income,
San Diego was chosen as the
target city
Content: reuse the box
Spokes character responds to
customer inquiries/complaints,
pokes fun at competitors
charging shipping
Your next order is free!...and so
are all of the orders after that.
Free shipping for life coupons as
guerrilla marketing (also non-
digital marketing?)
Box character at events?
6. Strengths Threats
⢠No Membership fees
⢠Free shipping with minimum purchase
⢠Large selection of products, including wine and
spirits
⢠Price leader when purchases made in bulk
⢠Social appeal to the public with employee
benefits and social initiatives
⢠Economies of scale of competitors
⢠Buying power of Sams, Costco, Walmart
⢠Physical location of competitors distribution
centers and store fronts
⢠Low barriers to entry
Weakness Opportunities
⢠Newer and less established than Amazon and
other major competitors ( Sams, Costco,
Walmart)
⢠No Guest browsing
⢠Leverage management team competence in
developing applications to gain competitive
advantage
⢠Develop competitive advantage by being early
leader in e commerce wholesaling
⢠Grow B to B market segment
SWOT ANALYSIS
7. Boxed
Amazon
Costco
Walmart
Product
Leader
Customer
Intimacy
Operational
Excellence
(efficiency)
Traecy Model Analysis
Amazon:
- Great selection of products
- Easy purchase and return policy
- Optional annual membership fee (Prime)
offering free shipping
- Customers shop for convenience not price
Walmart:
- Everyday low prices
- All aspects of value chain drive low cost
- Both online and store front shopping options
Costco
- Target value consumers â not low cost
shoppers
- Bulk shopping value
- Constrained to cash or Visa purchase options
- Annual membership fee
8. Political Economic
⢠Low risk to political implications for E-commerce
in United states
⢠Politically stable
⢠States often compete for businesses with
incentives for relocation
⢠Short cycle economic fluctuations (recessions)
⢠With no store fronts boxed would have less
exposure in economic downturn than retail
competitors
Social Technological
⢠Growing use of mobile technology facilitating
greater access of e commerce
⢠Low social media marketing adoption in North
America
⢠E-commerce adoption rates differ across
generations ( Boomers, X, Millennials)
⢠Reliant on delivery service from external
companies ( US Post, couriers..etc)
⢠Competitors experimenting with and seeking
approval for novel delivery technology from local
distribution centers ( Amazon - drones)
⢠Reliant on internet speed and up time for
customer interface
PEST Analysis
9. ď§ Industry Rivalry High
ď§ Multiple large competitors
ď§ Amazon
ď§ Walmart
ď§ Costco
ď§ Bargaining power of
suppliers low.
ď§ Multiple options for
sourcing products
ď§ Low switching costs to
change suppliers
ď§ Threat of substitutes moderate / low
ď§ Currently online shopping and delivery is the substitute to traditional
shopping
ď§ Substitution relatively cost free as minimal investment ( or none)
required for many brick and mortar, as well as on line stores
ď§ Barriers to entry low / threat of entry high
ď§ No store front required
ď§ No Intellectual property
prohibiting starting on line sales
Threat of Substitutes
Threat of Entry5Bargaining
Power of
Suppliers
Industry Rivalry5
2
ď§ Bargaining power of customers
relatively high
ď§ Mainly individual and small
group sales
ď§ Low switching costs
ď§ Availability of multiple
competitors
4
Bargaining
Power of
Customers
2
Porters Five Forces
11. Strategy
What is their present strategy?
Goals
What are their financial and non-financial goals?
⢠xxx ⢠xxx
Differentiators
What will they leverage to win?
Changes
How have their strategies, goals and differentiators changed?
⢠xxx ⢠xxx
Competitor Profile
12. Social Media Marketing Analytics
Utilizing the following Socialbakers.com tools to analyze our social media
investments will ensure bang for our buck:
⢠Persona Mapping Tool
⢠Influencer Search Tool (available by region!)
⢠Influencer Hashtag Search Tool
⢠Facebook and Instagram Performance Quadrant Reports
⢠Facebook Ads Performance Prediction Tool
⢠Social Media Benchmarking Tool
⢠Social Customer Care
⢠Instagram Analytics Tool
⢠Facebook Post Promotion Tool
⢠Social Media Content Inspiration & Spotlight Tools
⢠Global Social Media Studies
13. Touching On All Social Media Zones
Social Community
⢠Boxed spokescharacter will be the companyâs persona and
bring the brand to life.
⢠Customers will be entertained while being informed,
therefor are marketed to via Facebook, Twitter, etc.
Social Publishing
⢠Content marketing with articles highlighting free shipping,
data around how much time the average household
spends shopping, and what to do with your boxes.
Social Commerce
⢠Customer reviews available.
⢠Spokescharacter replies to customers.
⢠National brand suppliers encouraged to participate and
interact with customers as well.
Social Entertainment
⢠Rotating weekly contests for customers to post their best:
⢠Recipes with Boxed products
⢠Use of their time savings
⢠Use of their money savings from the free shipping
⢠Re-use of their boxes
Social Media Zones
15. Customer Engagement Strategy: Social Media Contests
Recipe Contest
⢠Customers submit their favorite
recipes with Boxed products
Referral Contest
⢠The 10 customers with the most
referrals for the week win!
âWhy do you save?â
⢠Competitors charge $7 or more
to ship groceries.
⢠Customers submit what they do
with their $7.
âWhatâs your time worth?â
⢠Customers submit what they do
with all of the time that they save
by shopping online with Boxed.
⢠4 rotating weekly customer
contests.
⢠10 winners each week get 60
second online Boxed shopping
sprees (estimated at $100 each)
⢠Ways to enter:
⢠Tagging Boxed in Facebook
⢠#Boxedcontest in Twitter
⢠#Boxedcontest in Instagram
⢠Customers vote for the winners!
16. Marketing Campaign Budget
Advertising on Facebook, Twitter, and Instagram $90,000
Articles for content marketing $75,000
Ecommerce website setup and maintenance $50,000
Guerrilla marketing handing out free shipping for life coupons $10,000
Referral program $10,000
Weekly contests for customers $13,000
Socialbakers.com $2,000
$250,000
17. Marketing Campaign Timeline
November
Plan
Campaign
12/1
Hire to
enhance
Ecommerce
website and
set up social
media sites
12/10
Hire to start
writing
content and
print
coupons
12/26
Set up
socialbakers.
com account
12/31
Launch
eCommerce
website
1/1
Kick off
customer
contests and
start handing
out coupons
at all public
events