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Introduction Of Online Shopping Marketing Essay

Introduction of Online Shopping

Anything that customers purchases affects environment through delivery, if they have the merchandise delivered at home or drive to a offline store(supermarket). In earlier times people used to visit different shops before purchasing as they didn't have a great deal of easy access to home elevators products. Due to the development of INTERNET it has become easy to access the merchandise available worldwide without squandering time, money and other resources apart from aiding environment. Centre for Energy and Weather Solutions suggests that we can protect land and save energy by shopping online. (Trask, 2006)

The example of Ocado Group plc that gives the grocery directly to the customer rather than shopping from the supermarket helped in handling the carbon emissions. Many supermarkets such as Markings and Spencer's, John Lewis, Amazon, Carbon Cart etc. have their own websites are selling greener products and offering more selections to customers. Markham (1998)

Ocado's objective is to revolutionise just how people shop by giving them progressive and greener alternatives to traditional shopping. While using leading edge technology in their delivery model helps these to cut price, deliver quality and save environment.

'Meat free Mondays' creates environmental knowing of local climate changing impact of creation of beef and consumption. By using bio- diesel in delivery vans the emission is reduced. They deliver their products from the state-of-the-art warehouses directly to consumer home. They are using anaerobic digestion to produce electricity from the leftover food. The business has their own renewable team called eco-warriors to increase environment recognition amongst the staff. They have slot machine games allotted for renewable van area-wise to reduce carbon emission. They use put together heat and power (CHP) which is energy conserving process to mitigate environmental impact. A whole lot of recycling works using finished loop grocery carrier recycling by keeping a an eye on the consumption of plastic bags and batteries.

Bricks and mortar store consume lot of energy and resources. Online shopping retail companies stores goods in direct warehouse which will save cost of accessories and glitzy gimmicks of offline store.

External Evaluation of Online Shopping Industry

PESTEL Analysis

Political

The country is politically secure and the surroundings is suitable to market online shopping industry. The government is all available to offer the infrastructural and insurance plan support had a need to make the experience of online shopping safer, useful which makes it friendly to consumer, vendors and environment which will help them meet the criteria of carbon emission and reduce garden greenhouse gases set from the Kyoto Protocol as well as the Copenhagen Climate Council. THE UNITED KINGDOM government is taking up broadband and digital mass media growth speedily paving method for online shopping.

Economic

Online shopping gets the potential to create huge opportunities for innovation and economic progress in UK market which is facing recession. Online shopping can help in economic efficiency increasing competitiveness and profitability by mitigating environmental effects.

Social

Social consciousness about environment is also travelling people not to drive to the physical retailers and purchase online with upsurge in internet connection. People are more technology prepared than before. Many retail chain such as Markings and Spencer, Ocado, etc are now promoting green theory to sell their products online and generating goodwill which is in the end helping them to reduce costs and increase profits.

Technological

Technology is one of the key drivers to successfully execute effective online shopping. The bank operating system and internet obligations are some regions of matter but with improvements in technology related to internet security such as in Amazon. com shopping experience are becoming far more convenient and safer. The countries, organisations and internet community must concentrate on technology by using effective payment, delivery and storage area means e. g. Ocado warehouses and deliveries, Mega electric cars, etc.

Environment

Organisation are now challenging the status quo and thinking about changing the way of doing business because of energy prices. During the recent spike in gas prices online shopping helped bring some respite to these retailers which incurred significant losses otherwise. Putting into action online sales plan will help a company to develop set up a baseline of energy use, actively handling energy use and costs, reduce emissions without negative influence on operations, continue to improve energy use and product result overtime and report savings for inner and external use eg. Emission credits.

Legal

More environmental legislation from government authorities will also support energy conserving technologies such as online shopping. Consumer Safety (Direct Offering) Work 2000 helps consumer on issues related to online shopping.

Porter's five forces:

Bargaining vitality of Suppliers: As the web shopping is an enormous network with many suppliers the bargaining ability of supplier is not strong. Suppliers can be swiftly switched without impacting disrupting consumers shopping experience.

Bargaining vitality of customers: The customers of Schneider Electric come with an similarly strong bargaining power due to easy of information available about other challengers. There won't much competition if the services and solutions provided need to be customised according to the buyer needs.

Restriction to new admittance: The industry is extending with new keeping the market available for new entrants. An impressive idea such as CarbonCart is sufficient to be successful even with limited resources.

Substitution effect: There are varied solutions to same problem for example electricity can be preserved by insulation as well as improvement in technology. This will keep many substitution companies open to competition for Schneider Electric.

Existing competition: There are several competitors as mentioned above which can become potential threat in future. Schneider Electric has been successful in acquiring many companies to lessen competition and increase their market.

Key Players:

Online Sellers

Argos is allowing customers to order goods through cellular phone by jumping in texting bandwagon. (BBC, 2002). Dell has been pioneer in immediate selling proving that sophisticated product such as computer can be sold without contact. Ocado Group plc (Ocado) is employed in online retailing and distribution of groceries and consumer goods in UK. Ocado offers delivery of food products to customers centrally selected from an individual highly-automated warehouse. John Lewis realized from talking to their customers just how important energy saving has become to their customers, and they developed their own range of electrical appliances with that in mind. Aixam Mega offers light and private commercial vehicles with the key priority for environment. Their investment in product market and designs has made them innovator in market of affordable diesel and electric vehicle.

Opportunities for Schneider Electric:

"You must be the change you intend to see on the globe" Mahatma Gandhi. Schneider Electric's objective is to aid organisation and people make most of their energy. Their perspective is to remove more while consuming reduced resources from our earth.

The company can involve itself in supplying parts to vehicles such as those Created by Aixam Mega, Ocado etc to help them are more energy efficient. This can help them to increase its business on the automobile sections as well. Schneider can also start its online offering business on the lines of Amazon, Waitrose, Dell etc. using the immediate offering model. This will eliminate distributors thus reducing costs and increasing profitability. The company may use Bricks and clicks model where consumer can order online and opt for goods from shop or get it sent at home. The business can appoint various people as marketing brokers to popularise and sell their products and earn commission. Schneider may use the written text and collect service employed by Argos to sell their products through cellular phone.

Threat to Schneider

CarbonCart. com allows someone to choose "Green" products and generate a positive impact by neutralizing more than hundred percent of the carbon emission generated from delivery. This makes consumer feel liable about the contribution they make to environment by purchasing from CarbonCart. com. The immediate selling style of Schneider will not be successful if people will buy more from such business.

Online shopping model for company such as Schneider which sells technical products will have to backed up by large number of customer assistant agencies which requires huge financial and recruiting where in fact the attrition rate is high.

Segmentation

The company can segment online market based on

Direct customers: These are the customers who've purchase product straight from the business. The immediate customers will get maximum price edge in product and services.

Distributors: Customers who have purchased product through distributor network providers (DNO's) of company's product. The vendors will get fixed targets and will be allowed to sell the merchandise in their name and below the purchase price. This can help company to increase sales and steer clear of dealing with specific consumers. Through the business DNO's can reduce maintenance and set up cost with superior network design.

Direct Brokers: The real estate agents are the customers who have sold company products with their customers. These brokers will sell products at higher prices and will be given bonuses on sales.

Conclusion:

Online shopping is the new mantra of selling products effectively and efficiently but the conditions must be satisfied. Schneider must change its offering models with the addition of online selling for increasing their market show and contributing to environment. Shopping centres have border on experience and customers services but online shopping has advantage in selection of products, convenience and prices.

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