Vi Vi Vector

Digital Artefact – Vi Vi Vector

Vi Vi Vector, started out as purely artistic expression, displaying iconic snapshots or posters from iconic movies and digitally re-imaging them through the form of vector art. They were then put on Instagram and eventually transferred to the online marketplace ‘Redbubble’. However, the products and quality of the products that were being sold with my vector art, on Redbubble didn’t fit with the audience or aesthetic I wanted to associate with my brand. Not to mention the profit margins associated with selling on the marketplace only allowed around 10% profit gain, which for the time and effort put into each piece, with next-to-no recognition, was quite disappointing.

Placing one of the most essential ideation methods into practice, I decided to brainstorm the best way to actively facilitate a way I could possibly enter the market selling vector art as my own rather from a third-party. The most practical idea that came to light was the development and implementation of a business plan. The developed business plan follows below;

Business Plan for Vi Vi Vector at: March 2019

Sole Trader – Olivia Burt

Vision

The vision and future for Vi Vi Vector is a platform to showcase the vector art designed and re-imaged from iconic movie scenes and posters. Transferring the art to various products with the ability to be sold on the market under the brand name Vi Vi Vector.

Business Overview/Mission

Product Development
The products Vi Vi Vector wants to sell follows:

E-cards (greeting and blank)
Enamel pins
Patches
Tote Bags

After research and analysis into the purchasing of physical products such as enamel pins, patches and tote bags, the price associated in developing were too high for a minimum order of at least fifty pins and patches, per pattern, where required to fulfil and order with reputable retailers.

The costs associated with physical products are too high for a small business;

Enamel pins | $120 per 50 order per pattern
Patches | $125 per 40 order per pattern
Tote Bags | $100 per 25 order per high definition print

Especially one not knowing whether the target market will engage and purchase these products.

However, I believe these physical products will be a crucial element in defining who Vi Vi Vector is as a brand. Therefore, an extended product plan has been implemented for the future distribution of these products.

1. Develop and start monetising from the lowest manufacturing cost product, the e-card.
2. Put in place pricing and marketing strategies to create profit margins and the foundation for gaining brand awareness.
3. Research through social media polls and surveys, whether physical items are necessary and a want from consumers.
4. If yes, develop profit margins to encourage the purchasing of physical products.
5. If no, more research into the wants of consumers and if there are other ways or items they want to see displayed in place.
6. Once profits have been marginalised, increase social media and marketing awareness for new products and fulfilling the necessary order.

The choice for using an e-card supports the criteria set by myself, the Future Cultures DA challenge and has beneficial value to all through factors including:

Sustainable & Reusable
Environmentally Friendly
Quick, Cheap & Easy
Able to send to loved ones worldwide at the click of a button

Target Market
Sustainable millennials involved in pop culture and/or classic movie fans with the use of technology.

Marketplace
Etsy

Marketplace platform that allows the control of product and prices.
Acts as a third-party platform, no control.
User friendly and highly reputable with online consumers.
Allows instant downloads of digital files to accommodate e-cards and printables.
Option for customisation in the near future.

Delivery of Product
Instant downloadable files upon purchase, includes a PNG file and a PDF files, and standard shipping via Australia Post for physical products when available.

Pricing Strategy

E-cards
Greeting – $2.42 (includes .20c Etsy fee)
Blank – $2.20 (includes .20c Etsy fee)

As the vector art I have designed are quite simplistic, the placement of a generic greeting can enhance the use of the e-card, also keeping a blank, simplistic card as to not turn consumers away from the chosen greeting. I have kept the pricing of the E-cards low as they are not a physical product which does not involve the manufacturing costs associated with a printing press. As there are near-to-no e-cards being sold on Etsy, especially referencing pop culture, it promotes a niche market which will hopefully lure customers away from competing business selling physical cards. However, to accommodate for the need of physical cards and not pushing myself out of the market to far a high definition PNG file will be attached with an addition PDF file, sized and ready to print.

Physical Products (Enamel pins, patches, tote bags)
An estimation for enamel pins and patches have been made at a selling price of $10-$15 each to accommodate for manufacturing costs.
An estimation for Tote Bags have been made at a selling price of $12-$16 to accommodate for manufacturing costs.
All physical products will incur an approximate $5 shipping cost.

Fees Associated with Etsy
Four fees associated with selling on Etsy

Monthly Store Fee $2.40
Listing Fee = $0.20c
Transaction Fee = $0.11c
VAT (processing) Fee = $0.04c

Breakeven and profit would be made after the sale of two e-cards. Price may need to be adjusted in future for the recurring fees compared to product worth.

Encouraging consumer feedback is crucial in understanding what’s working well and what’s not. How to stimulate consumers to provide online customer reviews becomes a critical issue for the online retailers. “When the review effort is small, it is efficient for the retailer to set a higher rebate value to persuade consumers to share their opinions online, and charge for a higher product price in the first period to extract more profit.” Yang, L and Dong, S (2018)
With a possible price increase in the future, with the quality of the product could engage purchasing consumers to leave reviews and feedback which will help developing an analysis for the possible want of physical products.

Advertising and Promotion

Marketing Strategy
The majority of Vi Vi Vectors marketing strategy will be done through social media and Etsy.

Social Media
Tagging and sharing to increase audience engagement and possibly the purchase of followers to develop a presence on the Instagram platform. Continual posting and Instagram Stories to keep organic followers and new followers.
Etsy Insights and Marketing Strategies
Etsy provides calculated insights related to your products being sold. Using these key words and tactics will help implement a marketing strategy once there is inventory being sold.

Objectives

Breakeven with minimal profit each month for 4 months.
Increase marketing strategies and profit margins by 30% for the next 3 months
Gain customer feedback to increase and improve product
Have at least a 50% click rate leading to purchase
Evaluate profit margins and consumer feedback to review physical products at the end of 6 months

Obstacles/Limitations

Possible copyright laws and infringements
Due to the use of movie posters and movie scenes, it could be infringing on certain copyright laws. Look into how to avoid infringements.
No sales or engagement
It is possible that Vi Vi Vector could not achieve any profit as there is no market for the products. Overcome by doing further research and possible change of product.

Action Plans

March 30th New logo
April 15th Finish target marketing research and background research on chosen products
April 29th – Finish design of e-cards
May 4th Launch of Etsy Store
May 30th Projected profit
May 31st Review peer feedback
June 4th Review sales and products
July 4th Review sales and products
July 15th Consumer engagement and feedback

This business plan has been implemented to the best of my ability with more to come in the near future. Vi Vi Vector launched on Etsy on the 4th of May. The decision to only sell e-cards has been stated through the business plan as the costs of physical products (enamel pins, patches and tote bags) were too high for a recently developed small business. Research was completed presenting E-cards as the best option due to the low cost and minimal effort to increase profit. An article released by Forbes explains why e-cards should be on the rise “postal mail rates dropping and the cost of printing and postage rising—not to mention the state of the environment and our limited natural resources—the whole concept of a greeting card printed on paper and sent in the mail no longer works”.

Whilst my business plan had already been completed, peer feedback and public feedback did help altering and adjusting Vi Vi Vector to minimise complications. One piece of peer feedback received from Trang Bùi was incredibly helpful in understanding and avoiding copyright infringements. There is a lot more I need to read up about these laws, however from articles provided by Trang, I was able to add the film’s title and name of director to the bottom corner of each piece. This has the ability to give credit and avoid each piece being taken down and/or fines being distributed, Karapapa, S (2013).

So far for the month of May, Vi Vi Vector has since sold six e-cards, which means it’s past the breakthrough area gaining some profit, even minimal, in return. This helps show that there is a market out there who is interested in what I am producing, which will hopefully gain reviews and feedback in return. This is a promising start to what I hope to be an eventuating business plan that gets to exhibit physical items in the near future.

Reference List:

Yang, L and Dong, S (2018) ‘Rebate strategy to stimulate online customer reviews’, International Journal of Production Economics, 204, pp. 99–107. doi: DOI: 10.1016/j.ijpe.2018.07.032. Accessed 27 March 2019

Karapapa, S (2013), ‘Reconstructing Copyright Exhaustion in the Online World’ I.P.Q. 2014, 4, 307-325. https://ssrn.com/abstract=2862300 Accessed 30th May 2019

https://www.forbes.com/sites/propointgraphics/2014/12/03/why-holiday-ecards-are-better-than-paper/#3271a664c02a Accessed 27 April 2019

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One comment

  1. oliviaburt98 · June 22

    Reblogged this on Future Cultures.

    Like

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