Running head: Proposal for Online Business Expansion

Proposal for Online Business Expansion

Proposal for Online Business Expansion
A1. Viability of Product or Service Umake is a 3D printing company that is currently in the Discovery Phase of business development, and is looking to start mainly with an online presence, then expanding to a brick and mortar. The company is looking to introduce the technology of 3D printing to a market where the technology has been restricted to machine shops and prototyping companies. This will give the public the opportunity to customize, design, and create physical objects from their imagination, with little to no drawing or technical knowledge, at an affordable price. The company will offer a variety of products, for simple customization, including cell phone cases, key chains, and other novelty type items, allowing the customer to add their name or images to the product. Umake’s target market is separated into 3 categories:
1. Hobbyists
With the introduction of 3D printing, hobbyists have flocked to the technology to reproduce lost or difficult items needed for their projects. Everything from car enthusiasts to scrap booking, customization is key.
2. Prototyping
Inventors, companies, and entrepreneurs, need to produce a product for proof of concept.
3. Students
Children ages 10 – 17 are the fastest growing market, other than companies, for cell phones and accessories. This market has the need to customize everything from backpacks to cell phone cases.

While 3D printing technology is over twenty years old, it is a new concept to the average consumer, and the need for a company of this type within the local market is still unknown, for this reason, the company has identifies the necessity for an online presence. Although the company could purchase software to accomplish the design and printing of their products, a proper deployment of an online environment can negate the need to purchase software, while giving the customer an amazing experience. For example:
• Integrating the online environment with an easy to use 3D product design software, will enable the customer to design their product at their pace, while seeing the cost of the product during inception.
• With the addition of an E-Commerce solution, the customer will have the ability to purchase their design, outside of the traditional business hours.
• The products are primarily produced using Acrylonitrile Butadiene Styrene (ABS) plastics, which are light weight, reducing shipping cost for the customer.
• Using an online environment will allow the company to expand past their local market with the ability to reach potential customer on a global scale intern increasing potential profit.
• The cost of an online environment that has the capability to perform 3D design is more costly than traditional information based website, although a portion of the cost can be absorbed by not having the need to purchase software for the brick and mortar.
• Using the online environment in both capacities, giving the customer the same experience both at home or in the store, allows for a reduction in the staff needed at the store locations.
Although there are several advantages to having an online presence, there are many challenges that will require preparation to overcome. The most costly challenge for having an online environment of this type is locating a qualified software developer, which has the capabilities of producing an Application Programming Interface (API), which will interact within a website. Typically the API programmer charges a higher hourly rate than a website developer, so both will be needed to develop a website that will function in both arenas. Search Engine Optimization (SEO) will be necessary, but can be implemented by using Godaddy’s hosting services, for a minimal monthly charge. In addition, with a global presence there is a potential to over sell and under produce, thus damaging the company’s brand and reputation.
A2. Current Online Competition The cost of 3D printers has dramatically decreased in price since 2010, to a level where a hobbyist or business, could purchase a printer for as low as $2,000.00. This same printer, years earlier, would be roughly ten times the price (3D_printing, 2014). This drop in price allowed more consumers to purchase printers or investigate the possibilities of using this technology for their own needs. This also created a large interest with the online communities, sharing and collaborating ideas. Although the price of the printers have degreased, the price is still outside of the average hobbyist. The hobbyist and the average consumer will still look elsewhere to achieve their goals of producing their ideas. There are very few online competitors that allow the customer to design a product without having knowledge of 3 dimensional drawing. The top three competitors are as follows:
1. 3DTin (www.3dtin.com)
a. Company and Website Design
3DTin was the pioneer in web browser based 3D modeling, in 2010, using open source code. The website is lacking in its entirety. The URL opens into what looks like a program and not a functional webpage, showing minimal navigation. The site is not intuitive on how to use the program, although, it is very functional if you are astute in drawing.
b. Social Media
3DTin is integrated within Facebook, Google+, and Twitter, showing link references at the lower portion of the page. All login information is ported though one of the 3 social media sites. Although the website is lacking in its content, the social media site have a great deal of information including several contributors to the sites.
c. Ecommerce
3DTin has no ecommerce option on their website. When the customer has completed their model rendering, the only option is to export the model. This will allow them to save the drawing to their computer, or to download the drawing to a different website to share their digital designs.
d. Customer Relationship Management (CRM)
3DTin does not use any tool to manage customer relations, other than social media.
e. International consideration
3DTin is available to the English speaking world, with no other language options available. They do not offer any product other that the use of the 3D rendering software so the need for international shipping is not necessary.
2. Tinkercad (tinkercad.com)
a. Company and Website Design
Tinkercad was founded in 2011, and was intended to be a web base browser 3D designer for the masses. In June 2013, Tinkercad was purchased by Autodesk, the makers of AutoCAD products. Tinkercad’s website is well informed and easy to navigate. The site encompasses the flow of information including tutorial video links, and a diagram showing the 3 steps to making your product. They have incorporated user testimonials, and links to publications about their product. A features and benefits section breaks down the different options that their product offers, and a short description of what that option includes. Throughout the site, there are several buttons asking the user to start the editor.
The editor page takes the user to a tutorial, helping the user understand how to use their product. The tutorial includes several lessons that walk you through producing or modifying objects to teach the user the fundamentals of the program. At any time during the lessons, the user can select to create a free Tinkercad account, and start designing their own designs.
b. Social Media
Tinkercad uses Facebook, Twitter, and a blog, but only the reference to social media on their website is a small icon at the bottom of the page for the blog site. They offer a free account which will allow the user to login using Facebook or Twitter. Once logged in, a Twitter icon is available at the bottom of the page. The integration with Tinkercad and social media is well implemented once the user has an account and already utilized the sites software.
c. Ecommerce
After the completion of the model, the user can select the option to order 3D print. This option take the user to a pop up screen with four different websites were the models can be printed. Tinkercad does not have any ecommerce option on their site, instead sends the user to one of their printing partners sites.
d. Customer Relationship Management (CRM)
Tinkercad allows the user to share the models they create, and any registered user has the ability to comment or like other users models. This will give the user a way to express themselves, both by sharing the model and by commenting on the work of others. The user can also download an existing model, from another user, and modify it, creating collaboration between users.
Tinkercad has utilized email notifications that may be modified in user settings page giving the user the ability to receive emails regarding their shared models
e. International consideration
Tinkercad is available to the English speaking world, with no other language options available. They do not offer any product other that the use of the 3D rendering software so the need for international shipping is not necessary.
3. Autodesk 123D (www.123dapp.com)
a. Company and Website Design
Autodesk123D website is very intuitive with a scrolling photo header which catches your eye with a great space scene of an astronaut holding a 3D printer. The site features user projects that are eye catching and engages the curiosity and imagination of the user. Below the featured projects contains the latest updates form the sites blog.
Autodesk123D’s model design page is quite easy to navigate and appears very straight forward, even for the novice user. On the right of the page is a drop down menu with pre drawn objects from robots to jewelry.
b. Social Media
Autodesk123D’s website has a section that states “We’re social!” with icons for Facebook, Tweeter, YouTube, and Pinterest. The site uses these social media portals to disseminate the latest news and updates regarding their site. The integration of social media is well put together and executed nicely.
c. Ecommerce
After the completion of the model, the user can select the option to order 3D print. This option take the user to a pop up screen with four different websites were the models can be printed. Tinkercad does not have any ecommerce option on their site, instead sends the user to one of their printing partners sites.
d. Customer Relationship Management (CRM)
Similar to Tinkercad, Autodesk123D has the option to save user models and share them with other users. This allows for the other users to use your model to build upon. The user can also like, share, or comment on the model.
e. International consideration
Autodesk123D does not show any interest in expanding past the English markets. The only reference that was found, regarding a different language, was a user asking for a Spanish version of the help manual. No response was given.
A3. Online Marketing Suggestions and Strategies Umake has a market that expands across several demographics, making the online marketing approach very important to target the customers that will be interested in the product. Many of these customers are looking for an avenue to product their products in a place that is easy to design and access, while creating their ideas into reality. To achieve this, the following marketing strategies are suggested:
a) Development of website
The website development and deployment is the single most important implementation of the online strategy. This will ensure the customer will have a pleasant experience and maintain user site cohesiveness.
b) Online ad campaign
An advantage of utilizing an online ad campaign is the ability to advertise to your targeted market. The target market has been determined to be students, hobbyist, and prototyping websites. These sites should be identified by the amount of traffic and by the content of the site. Once these sites have been identified, a budget needs to be set. The budget should consider the traffic of the sites that the ad will be place, and the price per click (PPC) cost that would be associated to the sites. The design of the ad should have the consideration of the target customers in mind. A minimum of three ads should be produced to accommodate the target market. Once the designs are complete, the use of companies like Adsbrook should be used to implement and track your ads.
c) search ad campaign
An advantage to using a search ad campaign and using a company such as Google AdWords is the user is searching for similar keywords in which increases the likelihood of consumer contact to the website.
The use of dynamic keywords and phrases will help increase the ad views. These keywords will include the following:
1. 3D printing
2. 3D printer
3. 3-D printing
4. What is 3d printing
5. What is a 3d printer
6. 3d print
7. Rapid prototyping
8. What is rapid prototyping
9. Additive manufacturing
10. What is additive manufacturing
The costs associated to a search ad campaign can be separated into 3 options, cost per click (CPC), cost per impressions, and conversions. Utilizing the bidding strategy and setting the CPC bid price, will allow a budget to be maintained.
c. email marketing
The notification of changing products and services, to existing customers, will be disseminated via email marketing. The design of the email and the distribution can be implemented using the company Active Campaign. Using this service the email marketing can be monitored to identify the effectiveness.
A4. Social Media Integration The best way to maintain a relationship with your customers is the utilization of social media. If used correctly, the collection of vital feedback will provide opportunities to apply customer requests to products or services.
1. Facebook
A business Facebook page should be implemented before the deployment of the website. A Facebook link icon will be located on every page of the website and in all email correspondence from Umake. The Facebook page will include company photos, videos and current calendar events. The utilization of discounts, if the customer Likes, can be utilized in addition to other discounts and offers for friends of the company.
Customers will have an opportunity to leave comments and post items to the Wall, giving a chance to answer questions.
2. Twitter
Similar to Facebook, a Twitter account should also be created. Twitter is the best medium to exchange quick commentary with customer. This will allow the customer to obtain up to the moment promotions and deals.
3. Blog
As a page of the main website, a blog page should be created. In this section, customers can be spotlighted for their projects or accomplishments. The blog will also be a ideal location to promote and explain new technologies regarding 3d printing to help educate the customers.

B. Sources
3D_printing. (2014, April 12 ). Retrieved April 13, 2014, from Wikipedia : http://en.wikipedia.org/wiki/3D_printing