Proposal Of Setting Up A Telemarketing Company Marketing Essay

Proposal Of Setting Up A Telemarketing Company Marketing Essay A business plan proposal of setting up a telemarketing company Contents Introduction The telemarketing at the moment is a growing industry with most companies having an annual growth between 8% and 10% (Anything research, 2013). This is due to the fact that the  businesses are  becoming increasingly aware of the need for market information on ongoing basis and the desire to reduce customer turnover rates in the current hard hit economy. It is the mission of  JH Marketing to provide broad  telemarketing consultation which will help companies increase sales volume and provide customer services to our clients in the Ireland at reduced prices. Thus, helping clients to increase revenue and offering them substantial amount of savings on the operational costs of their telemarketing and customer services functions. JH marketing will be based in Karachi, Pakistan where the company will have access to high skilled labour at lower costs. Idea Selection Process As the recession has hit the profits of the businesses more and more companies have been forced to cut down the operational costs and to make the most out of the resources they have. Many big and small companies look to outsource their telemarketing and customer services operations to emerging markets where they can get skilled labour for lower costs and that is the rationale behind selection of the venture. Ideas such as setting up a PR company and advertising agency were considered as well but costs, skilled labour and the competition were the factors of not going ahead with the mentioned options. The other rationale behind selection of this business is the lower start up cost as well, the costs only include office space, computers and the internet connection and the staff with higher English speaking capabilities to handle the queries of the clients from Ireland. Service Description JH Marketing will be adapting low cost strategy for its venture by setting up its operations in Pakistan to minimise its costs and the clients will be given higher level of service as the company will be focusing on low cost, efficiency and innovation as their core strategic competitive advantages (Lawson, 2003). JH Marketing  offers complete and customized telemarketing campaigns and customer services operations. The most common telemarketing campaigns embarked on are for following purposes: Lead Generation Setting appointments Market research Surveys (Political surveys and statistical analysis etc) Subscriptions Business development or Sales Product promotion In order to create greater effect for the clients JH Marketing provide a comprehensive program for them that may include, but not limited to, some of the following services: Classification of Program Objectives and potential. Creation of tailored lists of leads for sales Market research and analysis Training and development of telemarketing agents Script writing for campaigns Conception of follow-up programs for successful calls. The list above is only a partial list of our services as each campaign and project is customised to the needs of the clients and is different and unique in terms of scope, length, customer reach, depth and costs. Competition in the Market The telemarketing and customer services industry is rather fragmented with companies that vary greatly in size, reach, services offered, and market share. Most of the companies are advertising agencies who offer telemarketing services along with other consultative services. Moreover, there are many companies who do not realise the potential of outsourcing, thus, set up their own telemarketing departments. The direct competitors of JH Marketing include all advertising and telemarketing companies and the call centres across Ireland. Whereas, the indirect competitors are all those companies, big or small, who have developed in-house telemarketing departments to handle their operations. JH Marketing, practically, has great threat from big nationwide consulting companies and the large and well established telemarketing agencies in Ireland such as Capita, Intercall and Conduit who hold significant market share. The industry itself is extensively fragmented, where huge numbers of small companies mainly provide services to small and medium sized firms and there are big companies who tend to seek large and extended contracts with the large companies which make this industry highly intense. With our strategy of greater service at lower cost and having office set up in Pakistan we will be able to offer lower costs to the companies and through our low cost strategy (Greater service at lower cost) we intend to avoid such  a debilitating market competition as price and scope are important reasons for accepting contracts, especially if the company is small or new. Industry Analysis JH Marketing Professionals business strategy is to  offer greater service at lower cost but our company does not intend to be a call centre only,  nor will it  ever become one as we are a consulting firm which will design the marketing and telesales campaigns for its clients and will also execute them to provide the cost advantage to the clients. These services  are  where we can offer a higher standard of quality to our clients. This will allow us minimise the costs, thus higher profit. Rivalry among different telemarketing agencies as stated before is greater and the market is fragmented but the industry as a  whole is  mature with long-term moderate growth with higher number of established companies. The fact that there are so many diverse or general telemarketing agencies; it makes this an aggressive industry. The threat of clients backwardly integrating so as to have their sales and customer services done in-house is one of the major factors used by buyers to indirectly control price in this industry, and increase competition. This must always be foremost in the minds of JH Marketing management when offering services and setting prices. The key advantage for JH Marketing is that they will have access to staff at low costs as compared to their competition which will help them to offer low prices than their competition as the difference between wage in Pakistan and Ireland is huge i.e Average wage per annum in Ireland is à ¢Ã¢â‚¬Å¡Ã‚ ¬35k (Central statics off ice, 2013) whereas, in Pakistan is à ¢Ã¢â‚¬Å¡Ã‚ ¬7k a year (Payscale, 2013). Human Resource Management Plan The company will have two officers: CEO Mr. Jihad Habib and Director, who will be highly skilled with many industry relations to help the company attract clients. We will also hire  an office manager, and 5 staff to do cold calls. The company plans to hire additional consultants and administrative personnel as we begin to get large numbers of contracts. To start off with JH Marketing will need 5 staff to do cold calls to the business in Ireland. As the business does not require highly skilled labour so the recruitment and selection of the staff will depend on the proficiency in English speaking and understanding and some background in sales and marketing. However, people with no sales experience could also be recruited and trained as per the campaign requirement, provided that they have grasp over the language. Operations Plan The CEO, Mr. Jihad Habib will personally schedule meetings and presentations with the perspective clients to sale them the idea of outsourcing their telesales and customer service operations. As per the clients requirement the staff will be taken on board and trained to make outbound calls and handle the inbound customer service calls. As discussed earlier in the plan companies who are new to the market find it hard to attract the clients and to give them the confidence to outsource, for this reason JH Marketing will need the help from an experienced professional (Director JH Marketing) who have experience of convincing the clients to outsource and has great industry connections as well. As per the requirements of the clients and volume of the business the staff will be recruited and trained to start off operating from the Karachi office. As discussed earlier, for the operations the company will need an office space, computers and the VOIP (Voice over internet phone) Software to start calling the customers in Ireland to sell the clients products and services. Marketing plan In order to attract clients, JH Marketing will begin to contact promising organizations and offer free initial consultations, and initial contracts at reduced  prices. These promotions will allow us to begin to make our reputation within the market. In addition, Mr. Jihad Habib and the Director will be travelling to different parts of Ireland during the first year of operations where we will have booths to advertise our services. Finally we will be setting up cold calls to potential companies and have half- and full-page advertisements in various  publications catering to  local businesses and organizations. JH Marketing will be focusing on cost leadership strategy to win the contracts and will be paying greater attentions to quality of the services as well to reiterate the mission of the company, Greater quality at lower prices. Mr. Jihad has been actively seeking to acquire a large contract with Resource International Consulting Ireland over the past 2 months. This company is the largest recruitment and tax solution company which deals with UK freelance contractors and provides them tax advice and recruitment services over the telephone and internet. JH Marketing believes that its chances  of acquiring this contract are excellent. Location Plan JH Marketing will have its office situated at Karachi, Pakistan for the sole reason of having access to quality labour at cheaper prices to main the low cost strategy of greater service at lower prices. As all the transactions will take place over the phone so location in itself does not have any advantages or disadvantages associated to it for the clients but it will play a vital role for the growth of JH Marketing.