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Description of the Product Demand

Tertiary competitors are primary and secondary competitors abroad that offer and sale their products in the UK. They are mainly located in North America and the European Union. They are similar in size to secondary competitors and rely more on the Internet to market and sale their products inside the UK. In general, the competitors’ environment is made up of small to medium size businesses (and some independent craftsmen) that tend to compete in prices more than in services. Nevertheless, despite being an open and easy to break-in market, there is no sign of a dominant competitor.

For a detailed breakdown of primary competitors, please refer to Competitors List Current Market Conditions Online shopping is booming in the United Kingdom. According to the BBC website, online sales growth rates are currently around 28%, six times better than the traditional market sales. Part of the success is better products offered by companies, and better Internet connectivity from users – broadband connections.

In 2004 the giftware industry, estimated in ? 10 billion, carried out 60% of its transactions online – 4 billion that is an increase in 63% with respect 2003. According to Cardewdesign. com, in the UK there are 200 million mugs sold every year. In the UK, an average shopper spends around ? 220 in gifts online, the main reasons are: better price, and convenience. Shoppers on the 18 – 35 age groups are most likely to buy online, with much of their shopping done during working hours. A mug can be described as a repeated demand product due to its price and use. A satisfied customer is likely to buy a mug again. A mug can be an ideal gift, tableware item, and/or marketing tool.

The main marketing objective is to win customers and to retain them. With an initial budget of ? 50. 00 per month, marketing activities should attract enough customers to guarantee sufficient sales to pay for the business fixed costs (? 200. 00 per month) The ultimate marketing goal for the first year is to ensure a turnover of ? 25,000. 00. Branding To establish a strong branding, the business selected Jolly Mugs as its name. The name deliberately uses the word jolly to reflect enjoyment, happiness, expressiveness, freshness, and joyfulness.

To spread the brand, all web pages, invoices, and products (packaging boxes and mugs) are carefully labelled with the business name, logo and web address. The purpose is to make the customer see and hear the brand in everything. The management team, and any future staff, are also responsible of branding. The team should understand and believe in the brand values, and meet or exceed what the customer expects from the brand. The main purpose branding is to make the customer, and potential customers, relate the products to charm, innovation, simplicity, and high quality.

Quality Mugs are decorated with the best printing techniques available: sublimation-transfer and water-transfer. The sublimation-transfer technique ensures that the colours are more vivid, dishwasher and microwave safe. The water-transfer technique is used to mark the mug with the Jolly Mug name and web address at the bottom of the cup. All mugs are printed by hand to guarantee the quality of the print. In regards to the artwork, the management team previously approves all designs before they are transferred to the mug.

On large purchases (36+ mugs), the customer also needs to approve the artwork through a sample to guarantee the full satisfaction of the product. Product Line & Artwork Only the most popular mug cups are used – Balmoral and Durham. Mugs artworks are fresh, modern, and enchanting drawings or patterns that echo the customer’s mood, vibes and taste. Mugs can also be personalised with photos, images or logos to reflect the identity of an individual or a company. Mugs design and artwork are all developed in-house.

Nevertheless, external designs can also offered with previous approval of the management team bearing in mind all copyrights from the owner. Warranty Warranties are given in accordance to the Distance Selling Regulations : The products are under the customer risk from the time they are sent for delivery. All products will be given a 12 months guarantee from the date of supply. The guarantee will not apply to defects arising from tear, wilful damage, accident, and negligence by the customer or any third party.

If the products develop a defect while under the 12 months guarantee, the customer is requested to notify Jolly Mugs within 7 days of date the defect was discovered. Full refund will be given over the defective product. The customer is responsible for returning the products. If costs are incurred while returning the products, a reasonable refund will be given. The customer has the right to return an unused product within 14 days of the date of purchase. The customer is responsible for returning the products in good state. Refund will be given within 30 days for the sum paid, not including delivery charges.