21.08.2019-971 views -B&K Distributor
B& K Marketers
ROI for a Web Based Consumer Portal
15 January 2011
Anne Huang, Yu Shelter Kim, Minutes Woo Shelter,
Chalida Nakornchai, Kana Osugi, Jones Thompson
Recommendation to Invest in the Web Portal
We all recommend investing in the Web-Based Customer Web site. The anticipated high economical rewards with net present value of $346K and 41% IRR within five years (see Exhibit 1) are the key motivators. Based upon our market research, we believe the high income would come from an broadened customer base, improved order frequency/size and lowered costs. Heading beyond the financial advantages, the tactical impact from the project isn't only to increase the penetration price and customer support quality inside the short run, although also to enhance long-term expansion potential.
To realize the net present value calculations, we believe the project will increase B& K's penetration rate by 50% to 70% in five years. With our current ordering strategies and sales team, we were unable to reach and serve buyers in isolated areas, and consequently growth offers stayed with the inflation level. The web site will enable our sales team to enlarge our customer base.
In addition , the customer web site can provide a total product list and easily simplify the ordering process. Because of this, customer satisfaction might increase and providing customers access to information on products that had not been readily available before. Looking at the industry environment, not many competitors are employing a website, and the simplified method and quick response can be our competitive advantage.
Thirdly, the customer portal is crucial to get our long term growth, in particular when the Internet is an inevitable trend. Though few eating places are using on the net order devices, they will sooner or later do so to be able to adopt to the end consumers' behavioral patterns. The consumer portal may lead us prior to the trend. Over time, we can record more work at home opportunities when the re-homing of the...