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e – Business Solutions for Diesel Project Diesel Beauty Spa – Retail Products

Submitted by: Rachel Aquino

Submitted to: Mary Schloetzer

June 2013


DIESEL BEAUTY SPA – RETAIL PRODUCTS This business area of Diesel includes beauty products such as makeup, facial and skin care products, hair care products and maintenance. They also include services for people such as hair, face and body makeover. It’s pretty much a one-stop-shop for women who want to be beautiful. Target market would be mostly women from 18 to 34 years old. Also businesses who want to have a diversity of beauty products that they can use for their shops or for retail as well.

I.

Type of model to be used: 1. B2B (Business-to-Business) -

E-Procurement is one of the basic models for B2B. This way you can create a website that is only accessible to businesses such as Myer, David Jones or other small businesses like salons. To access this website, they will need to have a business so they can register with a username and password. Once they created an account, they can login and see wholesale prices and services particularly to the kind of business they have. The reason why we have to verify if the account holder has a valid business is because we wouldn’t want the public to know about the special prices, otherwise, they will end up not buying directly from Diesel at all. We will also sell them products that are exclusive for businesses only and will not be sold directly to the public from us, Diesel.

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E-Collaboration is a model for B2B where you indirectly advertise the products of another company to people. We will be having website (eMall or eShop – to be explained later) and we will post links to our business partners – who have accounts in our eProcurement. We will somehow advertise their products as well since there are products that we will not sell to public directly as we can make more income if we do wholesale to business partners.

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Cost Implications: Roughly $10,000.00 for 6 months Man Power 30% Server 20% Maintenance 25% Research 25%

2. B2C (Business-to-Customer) -

E-Shop/E-Mall is common in all businesses at the moment. Since eBusiness is booming, everyone who has a business would need to have one eShop so they can sell their products directly online. Cheaper and at the same time helps customers


save time. We will need to have a website where we put all of our items and services that we will provide the public directly. This way, we can always update people on what’s new and what’s hot within the Diesel beauty products. One thing that this website can do is persuade the target market in wanting to buy more and more from Diesel Beauty Spa without realizing that we actually didn’t change the products every week but we just improvise how it looks like. The beauty of it is that with the new technology now, we can always modify how a product looks like and we can always add up features in a click. -

II.

Cost Implications: Roughly $10,000.00 for 6 months Man Power 40% (Includes people who will do payments and shipping arrangements) Server 10% Maintenance 25% Research 25%

SWOT Analysis Strengths - All the chosen e-Business types are 100% easy to use and are reliable and accessible most of the time unless during maintenance period, which make clients check them every now and then. - Registered businesses would feel safe when using the website and would not hesitate to share certain secured information such as bank account because it is hack proof. - Website is always open to feedbacks and is always ready to update or upgrade or fix issues whenever it has some to provide excellent customer service. Weaknesses - Some customer might want to visit products personally since they would want to try first before buying or using a certain beauty product. - Diesel has not been popular yet for beauty products and might need some time to make this area known to many. Unless otherwise with very good marketing. - Two people would be managing at the moment. The website traffic might increase when customers grow bigger then we might need more staff and budget. Opportunities - Every new release of products have their opportunity to grow and be known and since this area is kind of unique, there would be a great chance that people would be curious on how it’s going to work. - The collaboration part is very much helpful since all businesses that would have accounts will have a link to our own website and vice versa which will make it easier to market on the internet.


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We will have a good analysis on the competitor’s products and of course, would make something better than that.

Threats - Aside from opportunities to grow, new products also have a possibility to fail in the market since there have been millions of thousands of products that have been released before us and we must be very careful about it. It’s “make or break” on the first phase. - Some business that would register might be spying or just analyzing how the eBusiness works for Diesel’s beauty products and might just get some idea and do it for their own benefit. III.

Competitor Analysis - One of the competitors would be Myer, although they don’t really have a range of beauty products under their own name, but they do sell quite a lot of them that makes them a threat to Diesel. Either they make us their partner or let us do our own thing which is not really going to help in Australia. - Their number one strength would be they are known for years now and they have very good reputation. They don’t even need marketing; marketing needs them at the moment. - People would always love to shop at Myer since it’s the talk of the town.

IV.

Value Chain Analysis - Advertising We have been making partners with existing businesses and that would be a step in making the products known. Collaborating with them on the websites and sharing links together is the first step. - Promotion We might have to give out products samples on first phase, only to the prospective business partners, so before anything else, they would be able to try and make their own customers know that there is something big going on. Diesel has not been very famous on this area that’s why we need to have a bit of something they should be excited about. - Channel Selection & Creations Internet and e-Business is the main channel on this project since this is the fastest way to get to people, businesses or the end users themselves. Internet has the highest influence nowadays and people on the target market would use this as the first reference. - Price Decision This part is kind of tricky since Diesel is known to be a bit more pricy than the average jeans brand. We would not want our products to be that expensive but at the same time we wouldn’t want to lower down Diesel’s level. Pricing will vary on


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V.

how people react and how badly or not they want the product. Given all expenses covered, of course. Sales This would mean some products are only available to the registered businesses and some to the public or end users themselves. They would have separate websites as mentioned above.

Policies & Guidelines - B2B They will need to have a valid ABN so they can register. Accounts must be active at least twice a month for updates, otherwise, void. - B2C They will only need to have internet connection since they don’t need to have membership at the moment. - All other explanations are mentioned at first part.

e-Business Solutions - Diesel Project  

e-Business Solutions - Diesel Project