1 Background: Selling products on social media has become a trend, especially on popular apps such as Instagram. However, people gradually found a disadvantage, that is, Instagram can only allow users to open their own shops and let buyers buy through your Bio link, but there is no way to directly hang a specific commodity on the interface during LIVE so that customers can go shopping more directly Instagram Livestream Business Concept Question 1 Although a business can go live on Instagram, viewers/customers can hardly place orders on the livestream. In order to solve this problem, the business concept involves building a shopping button on the ‘live’ interface. In this manner, when a business is live on Instagram, customers can easily press a shopping button to order products. Question 2 The value of this proposition is that it enhances customers’ shopping convenience. They do not have to leave the 'live' page when they need to shop. Additionally, businesses would benefit from increased sales, which results in enhanced profitability and overall productivity. Question 3 This idea is compelling now because many organizations and businesses have adopted digital forms of marketing and selling. Customers are also used to online shopping. For these reasons, more features should be incorporated to improve the interface and customer experience. Question 4 This business idea satisfies the customer’s need to shop conveniently. It enhances their shopping experience as they order a wide variety of goods, including basic, luxuries, and comfort products. Question 5 2 This fulfills the needs of people who prefer shopping online and those who tend to need or prefer having assistance while shopping. During the livestreams, sales associates or brand representatives will be talking about the products being sold, and customers will be able to ask questions about these products in the chat bar for further inquiries. Question 6 The key point of Instagram live streaming is two-way communication between sellers and buyers. This makes it easier to lead buyers to purchase the products by getting sympathy which is a significant part of social media. Question 7 Our target audience is users of all genders, ages 25 to 34, who use Instagram a lot and who have relatively good financial resources. 1 Background: Selling products on social media has become a trend, especially on popular apps such as Instagram. However, people gradually found a disadvantage, that is, Instagram can only allow users to open their own shops and let buyers buy through your Bio link, but there is no way to directly hang a specific commodity on the interface during LIVE so that customers can go shopping more directly Instagram Livestream Business Concept Business Concept While people can purchase products on online Apps, Instagram provides marketers with an excellent platform for displaying their goods virtually. However, although marketers can go LIVE and interact with customers in real-time, they cannot shop without leaving the LIVE page. Instagram can only allow users to open their shops and let customers buy through a Bio link, but there is no way to directly hang a specific commodity on the interface during LIVE so that customers can go shopping more directly. To allow marketers to hang their products when LIVE for customers to make purchase orders, more features are required on the Instagram App. In this case, the solution involves building a shopping button on the LIVE page, a feature that allows customers to make an order through a single click. While the business market has shifted to online selling, this feature is relevant in today's world because it enhances customers' digital interaction with various interfaces. People will need more improved and sophisticated technologies every day, making it a reason for building more features on marketing Apps, such as Instagram. The value of this proposition is that it enhances customers’ shopping convenience. This is because they do not have to leave the LIVE page when they need to shop. They can also shop amid the Livestream conversation and at the comfort of their houses. Additionally, businesses would benefit from increased sales, which results in enhanced profitability and overall productivity. This is because the shopping button and the associated convenience would enable 2 many customers to shop fast and in real-time. The button on the Livestream interface also enhances customers’ shopping experience as they order a wide variety of goods, including basic products, luxuries, and comforts. Relevance to Social Media Marketing Industry Instagram is an online App that belongs to social media marketing, where businesses can display and sell their goods and services. Social media marketing is a digital and modern technology and industry-leading in today’s internet of things. This industry uses social media platforms, such as Instagram, Twitter, and Facebook, to build a brand, enhance sales volume, and drive website traffic (Buffer, 2022). While social media has become a place for entertainment, news, and inspiration, many people are interested in using effective digital marketing tools to boost their online presence and sales. Marketers use these significant platforms for promotion and to draw influence. Statista (2021) indicates that 3.78 billion people use social networks worldwide. Advertisement on social media has cost businesses approximately $154 billion, which enhances their productivity, sales, and profitability. About 92% of marketers use social media in their marketing strategies, where the success rate of such marketing efforts amounts to 78% of the businesses engaging in social media (Wutzke, 2022). Based on these statistics, digital marketing is almost endless and has fundamental benefits to businesses. The social media marketing industry is crucial today as it influences people’s shopping experience and purchase behaviour. Customers can shop severally on social media platforms because they save time and energy that would otherwise have been wasted while visiting physical shops (Roch & Mosconi, 2016). This industry helps businesses in brand development as it invests in growing loyalty among customers (Yadav & Rahman, 2018). This is because customer return 3 is highly probable since the marketer uses strategies that align with buyers’ needs and purchase behaviour. Therefore, the social media marketing industry is fundamental in today’s world as it is accessible among customers across almost all nations. While social media marketing has grown significantly, the industry is in its growth phase of the life cycle. In this phase, the industry is already functional in the market, and consumers understand the value of the offering, leading to rapid demand growth (Eger & Drukker, 2010). Although most businesses in this phase are concerned with research and development, they do not focus on immediate sales and profits. However, the business idea, which involves using a shopping button on Instagram for customers to make purchases during Livestream, is essential for increasing immediate sales and profits. Marketers rarely use social media platforms to sell directly to customers, but rather collect essential data for analysis during marketing decision-making (Constantinides, 2014). As such, a shopping button during Livestream would allow marketers to receive orders from customers. The growth phase, in this case, allows Instagram to offer a variety of opportunities for sellers’ and buyers’ convenience. Due to the industry’s present life cycle phase, Instagram has opportunities for improvement and development (Stark, 2020). This is because Instagram can still offer more features to enhance customers’ experience and interaction with various technological interfaces. Their shopping is made more accessible, and communication with the seller is done in real-time and conveniently. During Livestream, inquiries are made quickly, and responses are provided almost immediately. Thus, while customers enjoy new technological developments, their shopping experience should be enhanced to make purchasing easier and more reliable. 4 A market for your business 83% of Instagram users said they browse the platform to find new products or services (Sheng, 2020). Those users mainly encounter new products and services through postings, stories, or live. As opposed to pre-recorded Instagram Stories, Instagram Live enables followers to participate by asking questions while watching, adding a human element to the feed (Warren, 2021). Many people prefer an unedited version with improvisation and interaction with viewers over a fully prepared and scripted compilation. In fact, a study found that 82% of viewers agree they would rather see a live stream than a brand's social posts (Growthoid, 2021). In a recent study, 45% of US live stream viewers aged 18-34 watched live video content on Instagram, compared with 31% on YouTube (Growthoid, 2021). Although this figure is limited to the United States, it has a similar percentage worldwide. Therefore, our target audience is users of all genders, ages 25 to 34, who use Instagram a lot and who have relatively good financial resources. A competitive analysis One of the reasons for the increasing demand for live commerce worldwide is the large impact of the new coronavirus that has spread worldwide (Chiquoine, 2020). Overseas, many regulations threaten people's lives unless they change the way they sell products, such as restrictions on going out and restrictions on the sales of physical stores due to lockdown, and it had an impact on the development of live commerce. The number of infected people by covid daily will decrease, and consumers will increase their purchasing activities at physical stores. After all, the higher the price, the more consumers do not want to fail in shopping, and there would still be a desire to talk one-on-one with a clerk at a physical store and make a purchase after familiarizing them (“Coronavirus and luxury...”, 2020). Under these circumstances, Instagram's 5 live purchasing system should allow businesses to build closer relationships with consumers, and other viewers will be motivated to purchase by seeing the presence of real-time distribution and interaction with third parties. The key is to raise it and guide viewers to purchase on life. There are a number of platforms that offer live shopping. ShopShops is popular amongst Chinese consumers and has expanded to the US market (Lockhart, 2022). Talkshoplive debuted in 2018 and has increased sales by seven times since then, while having two million followers and counting (Lockhart, 2022). NTWRK’s live selling platform caters to an audience of 75% men, and Google Shopping offers shoppable stories (Lockhart, 2022). CommentSold had a 50% in spending per view in 2020, and PopShop Live contains merchandise from more expensive brans, by majority of customers returning within 30 days to purchase more (Lockhart, 2022). Other platforms include TaoBao Live, which had a 100% increase in sales amounts from 2019, and WeChat (Lockhart, 2022). However, unlike our Instagram Live Business Concept, these thirdparty platforms have a lack of customer experience, as products are not being livestreamed by the brand’s actual sales associates, which decreases the amount of branding, personalization, and product knowledge (Lockhart, 2022). Nordstrom, however, has launched its own live shopping channel, which gives customers access to sales associates, employees, and brand partners (Kim, 2021). 6 References Buffer. (n.d.). Social Media Marketing. Buffer. Retrieved March 7, 2022, from https://buffer.com/social-media-marketing Chiquoine, J. (2020, December 14). How the COVID-19 pandemic is sparking growth in livestreamed e-commerce. Retrieved March 7, 2022, from https://www.uschamber.com/co/good-company/launch-pad/livestreamed-ecommercestartups CNBC. (2020, September 20). Coronavirus and luxury retail: Shopping for used Hermes, Cartier in covid era. CNBC. Retrieved March 7, 2022, from https://www.cnbc.com/2020/09/19/coronavirus-how-the-pandemic-has-impacted-luxuryretail.html Constantinides, E. (2014). Foundations of social media marketing. Procedia-Social and behavioral sciences, 148, 40-57. https:doi.org/10.1016/j.sbspro.2014.07.016 Eger, A. O., & Drukker, J. W. (2010). Phases of product development: A qualitative complement to the product life cycle. Design Issues, 26(2), 47-58. http://www.arthureger.nl/wpcontent/uploads/2012/10/201003-PhasesOfProductDevelopment-DesignIssues.pdf Growthoid. (2021, December 12). Instagram live statistics [data for 2022]. Growthoid. Retrieved March 7, 2022, from https://growthoid.com/instagram-live-statistics/ Kim, K. (2021, July 13). Livestream shopping: When Social Commerce and Video Collide. Sprout Social. Retrieved March 7, 2022, from https://sproutsocial.com/insights/livestreamshopping/ 7 Lockhart, J. W. (2022, January 18). Live shopping: How to launch a live event that drives engagement and conversions. Shopify Plus. Retrieved March 7, 2022, from https://www.shopify.ca/enterprise/live-shopping Roch, J., & Mosconi, E. (2016, January). The use of social media tools in the product life cycle phases: A systematic literature review. In 2016 49th Hawaii International Conference on System Sciences (HICSS) (pp. 1830-1839). IEEE. https://doi.org/10.1109/hicss.2016.232 Sheng, M. (2020, September 7). How 6 brands use Instagram live in their marketing strategy. HubSpot Blog. Retrieved March 7, 2022, from https://blog.hubspot.com/marketing/instagram-live-examples Stark, J. (2020). Product Lifecycle Management (PLM). In Product lifecycle management (Volume 1) (pp. 1-33). Springer, Cham. http://sewiki.ru/images/8/8a/Stark-PLM.pdf Statista. (2021, November 15). Social media marketing worldwide - statistics & facts. https://www.statista.com/topics/1538/social-media-marketing/#dossierKeyfigures Warren, J. (2021, September 15). Instagram Live: A step-by-step guide for businesses. Later Blog. Retrieved March 7, 2022, from https://later.com/blog/instagram-live/ Wutzke, M. K. (2022, February 28). 20 Benefits of Social Media Marketing Every Business Should Know. CoSchedule Blog. https://coschedule.com/blog/benefits-of-social-media- marketing-for-business Yadav, M., & Rahman, Z. (2018). The influence of social media marketing activities on customer loyalty: A study of e-commerce industry. Benchmarking: An International Journal. https://doi.org/10.1108/BIJ-05-2017-0092 8 Final Business Plan 4 pages According Assignment 1 and 2, you will submit your completed business plan. Your business plan will be written as though for an investor - so it should be concise, clear, polished, complete and professional. Make sure to proofread their work and aim for a concise, straightforward paper (i.e. no page limit is not an excuse not to edit work). Please, make use of headings and sub-headings, point form and numbered lists, tables and figures as is appropriate. Single-spaced is perfect, but please leave a space between paragraphs, and keep margins at 1" with a size 11 or 12 font. Your final business plan should include the following: Contents of the plan: 1. Concept overview - introduction to the business concept and its position (the submission presented for Assignment 2 need to check the assignment 2 for this question!!! with changes made) – this is the whole justification for your business 2. Business organization - sole proprietorship, partnership, corporation, etc. and why 3. Marketing plan – detailing products and services being offered, and covering four Ps in detail. Show clear alignment between the business idea, the market being targeted and the 4Ps as related to that market. Clear links are necessary here. The way you market, price, distribute and promote should be clearly aligned with each other, with the market and with the concept. 4. Future plans – vision (where you would plan to take the business over time, i.e. growth plans, strategy, etc.)
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