Business Report

Zero Celsius

Student Name:

Alicia Hirawan 44897472

Hoang Nhi Lam 44247222

Patrick Wilkinson 44089228

Naomi Peiris 45095914

Amer Aljohani 42664097

Unit Course: ACCG250

TABLE OF CONTENTS

Executive summary 1

1. Introduction 2

2. Background of Zero Celsius 3

3. Marketing strategy of Zero Celsius 4

3.1 Target Customer 5

3.2 Customer needs 5

3.3 Market category 6

3.3.1 Size of industry 6

3.3.2 Size of company 6

3.3.3 Advertising 6

4. Implementation of ERP, SCM, and CRM strategy in business 7

5. Benefits of ERP, SCM, and CRM for the company 8

6. Investing in Zero Celsius 10

7. Conclusion 11

Reference list 12

Zero Celsius

EXECUTIVE SUMMARY

The aim of this business report is to introduce a company, Zero Celsius. Zero Celsius is a

fashion business that operates in the retail trading industry, providing services online

and in store. The main objective of this company is to develop as well as maintain a

unique and professional image, to improve customer relations as well as the quality

assurance of the products, and most importantly, to increase the level of creativity

within business, to continue creating fun and unique products.

This business report will provide a detailed analysis as well as evaluation of the current

marketing strategy, which includes identifying the target market, customer needs, as

well as the market category that the company operates in. This business report will also

provide a comprehensive and thorough research, investigation and analysis of the

current management strategies, which is the implementation of the ERP system

(Enterprise Resources Planning) that includes the application of CRM (Customer

Relationship Management) and SCM (Supply Chain Management). The analysis

discussed in this report will consist of the different benefits that the strategies

mentioned above will bring to this company, and how the successful implementation of

those strategies will assist the company in achieving objectives.

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1. INTRODUCTION

For every business or organization, it is necessary to make strategies. With the help of

making policies and strategies, a company can do all business activities in a systematic

way. Zero Celsius is in the retail trading industry that conducts business both online and

face to face. The target market are young adults that are of middle class and upper class

who can spend for the quality, value and latest fashion as the company deliver stylish,

trendy and unique apparel. The quality of the company is fundamentally of a high

standard which will be considered in order to enlighten investors so that they can make

the decision to invest in this business.

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2. BACKGROUND OF ZERO CELSIUS

Zero Celsius is an Australian clothing-retail company, well-known for the unique clothing

for men and women, as well as teenagers. It was founded in 2001 in Sydney, Australia.

Zero Celsius operate in 10 cities in Australia with over 20 stores and, as of 2017,

employed approximately 350 people. Although physical stores are only available in

Australia, Zero Celsius has a significant online presence, the company provides online

shopping service, which is offered in 15 countries located in Asia and Europe.

The customer needs that the company are aiming and to always fulfill and satisfy would

be to help customers to keep up with fashion trends that suit their personal lifestyle of

being trendy, fun, casual or formal that varies from daytime and nighttime looks. This

allows customers to be more fashionable and confident with their outfits. Women’s

apparel classification includes shirts, skirts, dresses, pants, jackets and shoes and Men’s

apparel classification includes shirts, pants jackets and shoes. Zero Celsius focuses on

designing with high quality materials then selling it at a reasonable and affordable price.

However, competition still exists as there are other stores that offer the same products

but the styles and designs being produced is what differentiates the brand from the rest

such as H&M, Forever 21, Zara and Urban Outfitters.

The benefits of online retail are easy entry to market as sales can be made within

minutes, the potential for rapid growth due to a good digital marketing strategy that

helps boost growing sales, and the ability to expand the market beyond local customers

as there can be the potential for strong demands for the products in other countries

(Invest Northern Ireland 2002). In addition, a face-to-face business primarily assists in

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lots of profits from trade. This is because it builds a relationship, which ultimately builds

trust, a high level of personal service leads to additional referrals by customers which

can result in increased sales, more effective in getting customers to make the decision to

purchase products faster with skilled employees that apply their expertise, experience,

and powers of persuasion (Ambercrombie, D 2015).

3. MARKETING STRATEGY OF ZERO CELSIUS

The marketing strategy refers to the design or preparation of a plan to promote

products as well as services. The strategy of a company is a combination of all marketing

related objectives in one framework of the plan. It is the duty of top management to

develop the marketing strategies in an effective and efficient way. Before developing the

strategies and policies, the research department of this business firm conducts a

research on market and focus on the correct product mix for achieving the

organisational goals or higher profitability (Ahmad and Cuenca, 2013). This business

enterprise uses ERP (Enterprise Resource Planning) as it benefits the company to store

its data and information at a single place and share information like inventory stocks,

profit, stock and sales to different departments in the company. Enterprise Resource

Planning is one of the best systems to run the company because it can increase sales

more effectively due to its effective way of sharing information throughout the

company.

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3.1 Target customers

The majority of Zero Celsius’ products and clothing are targeted at young women and

men aged 14-29 years old who are interested in the fashion world and are always on the

look for the current trends. The company carry various fun and unique clothing lines

with high quality and affordable prices.

3.2 Customer Needs

Since the target customers are creative and fashionable young adults, their taste in

fashion often changes rapidly and is quite difficult to predict. After various observation,

the company’s competitors need 6 to 9 months from designing clothing lines to getting

them available in stores. To meet the customer needs, Zero Celsius have integrated

manufacturing skills that allow the company to continuously being introduced to new

products and shorten the time needed to create new products. The company have hired

experienced group of people, who are responsible for travelling and observing trends, to

identify current fashion trends. They are allowed freedom of contribution in deciding

what items to produce, and the item could be designed as well as manufactured in a

short time, and will be available in store in 3 weeks.

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3.3 Market category

Zero Celsius is operating in a monopolistic market, which is a kind of competition which

has various producers as well as manufacturers promoting and selling goods that are

differentiated from one another, such as branding and characteristic.

3.3.1 Size of industry

The fashion industry is made of a great number of branded retailers, several of which

are international and have various branches located in many different countries. Zero

Celsius only makes up a very small portion of the entire fashion industry.

3.3.2 Size of the Company

Zero Celsius is a middle-sized company, with 20 stores running in Australia, and a total

of 350 employees.

3.3.3 Advertising

Because of the great number of companies in the retail fashion industry, advertising is

crucial for Zero Celsius to increase the number of customers and gain advantage over

other brands. Zero Celsius uses advertising as well as branding in magazines, television

commercials, also public advertisements.

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4. IMPLEMENTATION OF ERP, SCMR, AND CRM STRATEGY IN

BUSINESS

ERP is an enterprise resources planning, which integrates all multiple functions into a

complete central database. ERP plays an important role in the company since it allows

users to organise and share the same information, especially inventory, in different

departments to keep the company up to date on any changes made. In addition, ERP

software offers automatically synchronized reporting instead of standalone

spreadsheets and a separate database which are required to be combined or merged

into a general report. For instance, as sales orders made, it will be automatically synced

into the database of financial department, therefore, billing and processing of sales can

be faster and more efficient. An ERP system can be used for various marketing strategies

which help the business build better customer relationships by collecting customer’s

data to provide better and faster support for customers as well as record previous

transaction for discount policy of the company. ERP system also includes SCM (Supply

Chain Management), which plays a critical role in reducing inventory costs and overhead

costs for the retail business. For instance, users can keep in track of the production

procedures and delivery schedules for customers or the in-time purchases so that the

business does not lose overhead cost in accumulated depreciation cost.

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5. BENEFITS OF ERP, SCM, AND CRM FOR THE COMPANY

Zero Celsius is a retail fashion business which relies on retail stores and an online

website. ERP systems, including SCM and CRM, provides numerous advantages for the

conduct of both the retail and online business:

Faster communication and unlimited access: where ERP is used as a web-

based software. ERP can access the database from anywhere on any devices

to control over the company’s department more efficiently with real time

updates.

Efficient costing process: because of the automating function that enables

users to perceive accurate and up-to-date data transactions. Users can also

monitor balance sheet, cost of goods sold, profits, return goods and

purchases or even VAT returns faster. Thus, the business owner can generate

invoices for bank recording without collecting multiple spreadsheets.

Better Customer Service: CRM systems provide the company the capability to

personalise as well as modify relations with the clients, no matter which

worker is communicating with them at any time. CRM systems uphold a

source of customer profiles, which provides staffs the ability to help each

client independently. As a result, staffs are more up-to-date about

consumer’s precise needs. This can lead to an increase in customer loyalty

and potentially reduce customer dissatisfaction.

Increase in Customers and Revenue: Since CRM systems can help user stay

up to date on existing customer profiles, the company will be able to create

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new approaches to conclude which demographics should be focused on to

gain a wider customer base. By using CRM data, the business will be able to

manage marketing as well as promotional campaigns more proficiently.

Customer Relationship Management systems also ensure an increase in

regular customers through the completion of loyalty programs.

Simplified Marketing Sales: CRM also permits the company to provide

customers the choice of selecting the way that they want to be or contacted.

Furthermore, as different departments in the business can share data,

employees will be able to effectively work as a team, rather than working

individually. Even though each division has its own set of purposes, all

employees are conscious of and are also contributing to achieving the same

goals.

Minimise delays in order: Supply Chain Management (SCM) varies

considerably at every stage of a product life cycle because time and ordering

quantities placed by the supplier may not be quantified without tying

significant capital on inventories. By managing the product’s life cycle at

every stage, the supply chain process enables the manufacturers to create

sufficient sale revenues and considerable losses that commensurate with the

complexity and scale of production. By increasing the availability of

inventory that can sufficiently serve the market at a given time, the company

can ensure that each client can access the minimum order quantity at a given

time and the manufacturers do not produce beyond the market demand.

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6. INVESTMENT IN ZERO CELSIUS

Investors play an important role in the company. The main and important role of

investors is to invest or give finance to business firms for production or manufacturing

processes. Investors invest in a business firm for the expectation of the good future

return. The management of Zero Celsius always takes care of its stakeholders such as

shareholders, investors, creditors, customers, employees, suppliers etc. This business

organisation gives its contribution towards the welfare of society and conducts some

activities which are beneficial for society. The focus of this firm is to increase the living

standard of local people and their level of income (Dezdar and Ainin, 2011). From

expansion its business, many people will be employed. The benefits of this enterprise is

that it includes stakeholders in the decision-making process and can provide new

products adapting to the trends now and in future.

To sum it all, some reasons on why investors should take part in the company are that:

The network of this business firm is good.

Good customers care service in the company.

It earns profit every year and from this it gives good dividends to its existing

investors.

Its goodwill is high in the market.

Investors always look for an opportunity to gain profit and this company can

give good return on investment (ROI) to investors.

Good experience of existing investors of this business organisation.

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7. CONCLUSION

In conclusion, Zero Celsius is in the retail industry and it provides good and fashionable

clothes, shoes and many accessories to its customers. This present report details about

the background of this company and reasons why investors will be benefited and it also

explains why Enterprise Resource Planning system is the main strategy and how it will

benefit the company in the future.

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