Module 12 case en

1. E-learning course on e-
commerce business in
rural sector
2016-1-ES01-KA202-025335
MODULE 12
Case study
„ Healthy Parcel”
TransForm@ - Game based learning course to boost digital transformation of rural commerce sector – Project number:2016-1-ES01-KA202-025335

2. Case study Healthy Parcel prepared on the basis of the source
material.
The venture had its origin in 2014 in a picturesque and fertile
neighborhood of Nowy Sacz (city South of Poland), where 3
fellow farmers Jacek,Tomasz and Krzysztof decided to sell their
own ecological goods directly to customers (direct sales).

3. Reasons for starting the business
They decided that such a solution:
a) would be beneficial to them, as it guarantees a loyal base of
customers, constant demand for goods at a market price as well
as the feeling of financial independence,
b) would be beneficial to customers, who will receive high quality
goods from a safe source at a relatively low price,
c) would let them establish a fixed income, which may provide a
chance for a comfortable life
d) would constitute an optimum choice for a farmer who owns a
small traditional homestead, as well as for a customer seeking
niche products

4. Step 1 -Tailoring the product
They decided on working together and setting up a company.
The business was focused on selling:
healthy, ecological products obtained through a traditional
way of cultivation, including milk, cheese, vegetables and fruit.
Each of the three friends specialized in a different field:
Jacek produced milk and vegetables that were certified as ecological,
Tomasz was responsible for fruit grown in a traditional orchard, while
 Krzysztof took care of vegetables, though only at a small scale
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If you want to know more about the product, see Module 2 – Product to sell online

5. Step 2 - Market research
Next, they devoted their time to market research.
They attempted to answer the following questions:
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They analyzed information and reports in the Internet as well as in the traditional media.
A range of customers they interviewed claimed they would do their shopping online.
They have also identified a trend for healthy, conscious eating and for the slow food
movement. Moreover, there had not been any similar company in that region before.
The friends agreed that there is a place in the market for such a venture.
 is there a demand for such products , will
people be willing to buy them via the Internet?
 who would be interested in such a type of
product?
 how does the competition look?
If you want to know more about the product, see Module 3 - Business Plan

6. Step 3 - Choosing the store name
The friends refined the character of their products, conducted their own market
research, decided to set up a company and open an e-store.
Finally, it was the time to choose the name.
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 They got together and had a short brainstorm, which
allowed them to invent a dozen or so possible names
 They asked their friends and several customers to select the
best one
 Eventually, they decided on a short, memorable name
which evoked positive feelings - Zdrowa Paczka („Healthy
Parcel”)
 They also purchased an appropriate domain -
www.zdrowapaczka.pl
 Next, they bought a ready to use web store at the Shoper
platform and adapted it to their needs.
If you want to know more how to choose a right name of your e-store, see Module 5 – Name your business

7. Step 4 - The business plan and the law
With the help of a solicitor, the friends prepared a business
plan and scheduled the necessary expenses (including the
launch of the store and the promotion) as well as the
potential income.
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They also familiarized themselves with the basics of the law:
 mainly with the rules of customer service, which involves
the consumer law and the right of complaint
 rules of personal data handling
 civil and economic law, which regulates issues such as
contracts
Three weeks later they established a company and were
ready to act.
More information you can find in Module 3 – Business plan nad in Module 4 – e-Commerce legal aspects

8. The plan was simple.
a) The farmers sell their products in the form of the so called "Zdrowa
Paczka" which is based on the delivery of ecological and traditional
food to a customer's house packaged in a green cardboard box.
b) The store collects the orders via e-mails or phone calls.The delivery
is fulfilled after a given number of orders have been received around
a city.
c) The customers in a city expect to receive a whole range of products
from the farmers.They will not want to order milk, vegetables or meat
from each of the farmers individually.That is why the cooperation is
crucial.
d) The product packaging takes place in the households, which use
identical green boxes labeled as "Zdrowa Paczka".
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Step 5 - The business concept

9. Step 6 -The rules of delivery
 At first, with a view to getting to know their customers
better and earning their trust, the farmers intended to
deliver the packages themselves.
 Yet, in the long run they decided to employ an
appropriate person to do that
 They immediately ruled out a courier company.
It could put their close relationship with the customers
at risk.
 They also decided that as long as the order is large
enough (the so called big package), the customers
will not be charged for the delivery.
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If you want to know more about shipping and fulfilments see Module 8

10. Step 7 - The planning and conducting
of the promotion campaign
When the store was ready, appropriate promotional steps were taken:
a) traditional media in the vicinity were sent messages with the announcement of the
official opening of the store Zdrowa Paczka along with short articles on the
significance of healthy food.
b) use of social media - a previously launched Facebook profile was used to post
beautiful photos of gardens, orchards and the neighborhood allowing the users to
see where and in what conditions the goods were produced.
c) an affordable Facebook campaign was launched, whose intention was to reach
potential customers and inform them about the shop opening.The campaign
included a free delivery and an extra bag of fresh, healthy fruit throughout the first
three days after the opening.
d) At the same time, the first, affordable AdWords campaign was purchased
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If you want to know more about promotion campaign by social media see Module 7 – Social media in e-commerce business

11. What was an effects?
It did not take long before the effects
could be noticed:
 within several days, the traditional media
published the messaged information free of
charge, which let the venture reach the public.
 the Facebook campaign provided both a
growth of the fan base and a store log-in
system.
 over 100 packages were sold within the first
three days!
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12. 10 things to keep in mind when opening a web store
1. It is better to first purchase a ready store, learn about its
features, your own needs, and then consider ordering a tailor-
made shop of your own.
2. Remember that customers are impatient. If the shopping
procedure is too long, they will cancel it.
3. Allow customers to make a purchase without an account. Let
them learn about your store and develop trust.
4. The mobile sales are growing - make sure your web page is
responsive.
5. It is worth considering a free delivery if an order is big enough
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13. 10 things to keep in mind when opening a web store
6. From time to time, it is worth organizing a day or two days long
promotion, and a free delivery for any product.This will attract plenty of
new customers. Promote valuable goods to make the free delivery pay off.
7. Facebook is really significant - it is indispensable when communicating
with your customers.
8. Collect recommendations and put them in your website as often as
possible.They strongly affect your credibility.
9. Do not forget about AdWords campaigns and SEO.
10.Discount vouchers work only under specified conditions. If you distribute
them without any engagement on the part of a customer (for instance by
adding them to each package that you send), they will probably attract
very few people. It is much more effective to hand them out in return for
subscribing to a mailing list.
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14. Other case study
Case study: How two friends turned up the heat and sold 170k worth of spicy honey in
10 months
https://www.shopify.com/blog/17878276-how-two-friends-turned-up-the-heat-and-sold-170k-worth-of-
spicy-honey-in-10-months?ssid=102ad3d7f95b043b60b7f5183f3dd5&signup_code={signup_code}&ref=wbe
Case study: E-commerce: Edible Arrangements' countdown ad lifts same-day orders
8%
http://www.marketingsherpa.com/article/case-study/countdown-ad-ecommerce-same-day-orders
Case study: Smart Balance seasonal e-cards get 112% boost in traffic
http://www.digitaltrainingacademy.com/casestudies/2014/09/case_study_smart_balance_valentines_ecards_gets_112_
boost_in_traffic.php
Case study: Spicy honey
https://www.shopify.com/blog/17878276-how-two-friends-turned-up-the-heat-and-sold-170k-worth-of-
spicy-honey-in-10-months?ssid=102ad3d7f95b043b60b7f5183f3dd5&signup_code={signup_code}&ref=wbe
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15. Other case study
Case study:Vegan shop
https://www.shopify.com/blog/56875333-how-v-word-market-launched-a-successful-ecommerce-grocery-
store-in-a-crowded-marketplace
Case study: Delivery of fruit and sweetness
http://www.marketingsherpa.com/article/case-study/countdown-ad-ecommerce-same-day-orders
Case study: Healthy food
http://www.digitaltrainingacademy.com/casestudies/2014/09/case_study_smart_balance_valentines_ecards
_gets_112_boost_in_traffic.php
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16. Examples of e-stores
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www.maurer. com.pl
www.bartnik.pl