Nesan, Ashvin
(2018)
Developing a business plan for an online crowd gifting platform.
[Dissertation (University of Nottingham only)]
Abstract
The wedding and events industry is a multi-billion dollar industry that only seems to keep growing. Even in Malaysia, this events and functions are celebrated more lavishly and extravagantly than ever before. Over time, a number of services that are related to this events such as designing of invitation cards, booking of event space and or even buying accessories and clothes for the wedding entourage, have been done over the internet instead of in conventional brick and mortar stores. The act of gifting in the industry though, has stood the test of time thus far and remained largely unchanged from as far back as one can remember.
By studying and applying an adaptation of the crowdfunding business model to the said industry segment, there seems to be a gap in the market to be exploited. Unlike crowdfunding, where funds are sourced from anyone online for the purpose of supporting a business or a non-profit cause, crowd gifting, on the other hand, is the process of funding a gift online by a group of people that typically already have a connection, personal or otherwise, with the recipient of the gift.
This aim of this management project is to develop a business plan for an online crowd gifting platform.
The report will provide a literature review on the various types of crowdfunding, the gift giving custom specifically in Malaysia and the thriving e-commerce market amongst others. This would be followed by the business plan that will include an analysis of the existing market, financial projections and the formulation of business strategies by use of theoretical models such as the Blue Ocean Strategy, Business Canvas and Porter’s Five Forces.
From the market research conducted on a sample of 500 people located in the Klang Valley, Johor and Penang, a third of the people are open to using an online platform to gift at events and a shocking 11% already practice this. These are encouraging numbers that will require marketing efforts to create brand and product awareness. Using the 4P’s of marketing, marketing efforts are to be concentrated on social networking sites like Facebook and event and wedding expositions. The financial numbers are extremely encouraging with the platform expected to bring in a net profit of approximately RM1.2 million within three years.
For potential investors, in exchange for 20% equity in the company, a funding amount of RM150,000 is expected. The payback period and ROI (in 3 years) are calculated at a promising 25 months and 149% respectively.
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