At the moment, Budapester has successfully introduced the online value proposition (OVP), which helped the company increase its conversion rate by 12.5% and 30% for the mobile version. Therefore, this move was the most significant among all the steps and approaches that will be listed below. Nonetheless, the Budapester will also need to develop a complete e-marketing strategy. The first three steps of the generic framework of the Budapester e-marketing strategy will probably utilize the SOSTAC model. In the abbreviation SOSTAC, ‘S’ stands for ‘Situation analysis’, ‘O’ – for ‘Objectives’, ‘S’ – for ‘Strategy’, ‘T’ – for ‘Tactics’, ‘A’ – for ‘Actions’, and ‘C’ stand for ‘Control’. These six letters describe the six steps necessary to develop an outline for the e-marketing plan that will supplement the e-business strategy. The first three steps for Budapester will include making a situation analysis, defining objectives, and developing an e-marketing strategy.
To make a situation analysis, Budapester executives will have to answer the question, “Where are we now?” The answer to this question may include assessing the goal performance (5 S), finding the meaningful customer insight, performing the e-marketplace SWOT analysis, analyzing the brand perception, and identifying the company’s internal capabilities and resources. First, the Budapester team will have to determine how much of their customers have access to the Internet. Then they will have to identify what percentage of customers are ready to buy their products online and offline. The first step of the generic framework will also include competitor analysis. Therefore, the Budapester marketing team will have to review e-commerce services proposed by other companies and assess the adoption of these services by competitors’ customers. Finally, the company will have to perform an intermediary analysis that involves identifying relevant intermediaries for Budapester’s marketplace.
To make the second step, the executive team will have to answer the question, “Where do we want to be?” considering the 5 S objectives – sell, serve, sizzle, speak and save. The ‘sell’ stands for the customer acquisitions and retention target, and the ‘serve’ describes the customer satisfaction targets. The ‘sizzle’ speaks of the site’s stickiness and visits duration. Then, the ‘speak’ considers the number of engaged customers, and the ‘save’ stands for quantified efficiency gained.
Finally, to make the third step, the Budapester team will have to answer the question “How do we get there?” and develop appropriate target marketing strategies. The answer will consider conducting segmentation, targeting and positioning, online value proposition (OVP), integration or OVP consistency, database, and e-marketing tools, such as web-functionality, e-mail, IPTV. Segmentation and targeting will imply identifying different groups within a target market, which will have different demands. Positioning then may include introducing new product features to attract the customers’ attention and influence their perception of the product within the marketplace. The Budapester has already developed the OVP; after introducing the OVP, the Budapester will also have to improve the content strategy and consider tactics and further actions to implement the strategy. Thus, relying on a detailed plan, Budapester will be able to continue to develop in the field of online sales successfully.
