HAMLINE MBA CLASS: S15 DATE: 8/9/2010 TO: GARY JADER FROM: Nikhil Enugula DATE: 8/9/2010 RE: sendwine. com Summary: sendwine. com is in current situation, where it has choice between two alternatives. Should company merge its niche position in wine gift-giving or should it strongly expand into new gift-giving categories under the “Send. om” name. Problems: New challenges to keep up with the changing times and needs for the customers. Secondly win over main competitors like Yahoo, Amazon and 911gifts. Goal: Goal was to send other gifts, as well as, wine and other goal was to establish an E-commerce business that would be high-speed quality and efficient to use. Objectives: * To make the gift stylish and tailored to each customer’s wants and needs. Building Online Trust & to upgrade the site for flexible and simple usage * Recruiting was major concern because talented people were needed to keep business running * decided to take marketing campaign to the next level from the previous radio advertising and print media If sendwine. com wants to stay in wine service these are the options: sendwine. com should merge with big search engine like Bing or Google. Advantage: people will have more trust because it is promoted by big brands; Disadvantage: may be expensive but profit can be heavy.
Online coupons: for the first time or new customers, who have been referred by other old customers. Advantage: will force customer to use the site again because of coupons. Disadvantage: none Marketing plan: For example having tie up with some high-quality wine companies or having move variety of wine from Europe will give an edge or having exclusive gift cards for corporate companies or advertising on television with celebrities. Advantage: wide public awareness; Disadvantage: expensive If send. om is operated: as mention in case there are no business leader in this category, this would be a great opportunity to grow as company and this will give a major multiplicity strategy. In this current market position customer wants more variety and if send. com is functioned and marketed strongly. Send. com can be leader in these categories, as send. com can cover huge audience not only wine consumers but any regular gift giver or any group can be can benefited by send. com.
Now site has additional consumers and there is possibility to earn profits. Recommendation: I think Mike Lannon should invent money in opening send. com because virtual network creates online shopping for consumers looking for the convenience and effortlessness of buying excellence gifts from a single, trusted gift site destination versus the more complex and time-consuming process of shopping at multiple retail destinations . Lannon company has a chance to grow with the help of send. com, If they focus on send. com.