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Analysis of Online Store Potential for 99p Store


In this project I’m going to explain the 99p stores potential of using online business or online sales.Online sales in been a success full strategy for most of the companies in UK like Tesco, Asda, Sainsbury, Iceland, dominos, pizza hut, next, M & S and many more.But 99p store is a budget shop and it sales all the items for 99pence or less then 99p so people generally can think online sales for 99p store won’t be as successful like other retails as mentioned above.

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But up to my idea people will always tends to like the changes. So they will definitely make a purchase online if the company implements this online web sale for this store.

Aim of the project:

The main aim and purpose of this project is to investigate the current e – commerce and e – business in the country and then to implement the best strategies for the 99p store. The projects another main purpose is to identify the proper techniques and management strategies for implementing and launching the web business for the 99p store. The dissertations mainly cover the method of the web sale and web business.

In this dissertation I’m going to research the problems and issues of practicing this business into act and also I’m going to mention the usefulness and profitability by adapting this method. And mainly I’m going to highlight the areas which can be useful to problem shoot those problem and issues and also the area of improvement and development in this business. And finally the implementation practices for the following the e business to 99p store.

Objective of the project:

The main objectives of the research are,

To give suggestion to the company (99p store) on launching online sales.
To explain the main advantages of adapting the online sales.
Also to explore the rick factors on adapting the online sales.
About 99 pence store:

99p stores LTD UK was opened at January 2001 by Mr. Nadir Lalani. The first store was opened in Holloway, London and later they opened a 3 more stores in that same year. In 2002 Nadir decided to enlarge the company all the way through the whole of the UK. He has succeeded in quickly developing the company to make a total of 133 stores up to January 2011.The Company’s retailing impression is very simple, choice of more than 3,000 items each on hand at under a pound-representing amazing value for money. The company has planning to open 600 stores within next 10 years; the company turnover is expected to be ?300million. 99pstore has got their warehouse in Northampton its total size is 370,000sq foot and it contains 44,000 pallets. The warehouse is open 24 hours, 7 days a week. Currently there are 3000 people are employed in 99p stores which includes the head office and warehouse staff.

General information about e-commerce (online sales):

Emergence of e- commerce (online sale) in UK:

E-commerce means that the business transactions done by the electronic instruments and electronic data is the technology used for the e-business. In 1970’s the electronic data transfers and the electronic fund transfers systems where introduces, funds in other words office documents, sales orders, sales receipt etc.., and in 1980’s the people started to use credit cards and ATM (automated teller machine) cardsin big numbers and it’s a main part in the e-commerce. In late 90’s the ERP (enterprise resource planning) where introduced and it’s an important part of the e-commerce, data mining and data resourcing also comes under this part. And by 2000 the online business in UK has got a complete shape.

The online business or online shopping is a convenient method of shopping for the UK customers and global as well. The consumers will always choose the best possible way to do their shopping and hence the online shopping has shown a bigger growth is the last few years. The retailers like Tesco, Asda, and many others have show success in their online sales. Mainlyb2c and b2b are the two different forms of the e-commerce. In 99p store the online business can be option. The 99p store is a budget shop and they sell all the items for less than a pound so everyone can think that online shopping in 99p store won’t be successful like other retailers in UK but up to my research findings it won’t be.

Since the last 30 years there are several changes have been occurred in the e – commerce.

Web development:

When the Web initial become well-known among the common public in 1994, many journalists and pundits forecast that e-commerce would soon become a major economic sector. However, it took about four years for security protocols to become adequately developed and widely deployed. Subsequently, between 1998 and 2000, a substantial number of businesses in the UK and Western Europe developed rudimentary web sites. In the dot com era, e-commerce came to include activities more precisely termed “Web commerce” — the purchase of goods and services over the World Wide Web, usually with secure connections, with e-shopping carts and with electronic payment services such as credit card payment authorizations. Although a large number of “pure e-commerce” companies disappeared during the dot-com collapse in 2000 and 2001, many “brick-and-mortar” retailers recognized that such companies had identified valuable niche markets and began to add e-commerce capabilities to their web sites. For example, after the collapse of online grocer Web Van, two traditional supermarket chains, Albertsons and Safeway, both started e-commerce subsidiaries through which consumers could order groceries online. The emergence of e-commerce also significantly lowered barriers to entry in the selling of many types of goods; many small home-based proprietors are able to use the internet to sell goods. Often, small sellers use online auction sites such as eBay, or sell via large corporate websites like, in order to take advantage of the exposure and setup convenience of such sites. –Arno Scharl(2000); Evolutionary Web development

Online shopping/sales in UK:

Last Christmas resulted in big profit for the UK retailers and the sales goes up to 60% through online shopping.

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People in UK have shown interest in web shopping. The reason is it consumes very less time, cost effective, the product availability is more compared to the direct store shopping.

“UK online sales up 12.3% in January 2011 compared to the previous year” – (Alison, internet retailing 11/2/2011)

Due to bad weather the people are forced to stay in home and even the Christmas shopping look really dull and boring for the UK retailers, where has the online shopping started to grow steadily – Stephen Robertson, director general of the British Retail Consortium 2011.

In the online sale the non food goods were not sold really well since last January and meanwhile the direct store sale haven’t show their best performance since last year.” said (Stephen Robertson, director general of the British Retail Consortium 2011).

In UK there are wide ranges of stores and companies are using the online sales in their business and there is even an online shopping directory like UK online directory it’s a web site which guides the customers on selecting the stores and goods required.

Companies in UK adapted online sales are listed below,

Amazon, Argos,, B and Q, Boots, Carphone Warehouse, Comet, Currys, Debenhams, Dial-a-phone, Dixons, Dorothy Perkins, eBay, Figleaves, House of Fraser, JD Sports, John Lewis, Marks and Spencer, Matalan, New Look, Nike Store,, Red Letter Days, Sainsburys, Tesco, the body shop, Thomas Cook, Ticketmaster, are all the well known retails who have business through online as well.

Difference between online shopping and direct store shopping in UK:

The noticeable difference in the online shopping from the direct store shopping is the customers comfort and convenience on do the shopping. Customers can start purchasing even in the midnight and even through the holidays but in the store shopping it is not possible. The another important thing is the main required source for doing online shopping is internet connection and in these modern day people have internet in their mobile phones itself and hence this makes the online shopping more and more comfortable and were as the direct store shopping requires lots of sources in other words customers need to make a travel and prepare them self to get into the shop and the direct shopping cannot be done during their working works. Then the next important difference is the product availability, in online shopping the customers can make the order and they can wait for it to be delivered but in the store the stocks or the products won’t be available in the shop floor all the time it depends upon how they sell, they maid have it in the stock room but the majority retailers and 99p store especially stock feeling is done only once in a day. Some products like clothes and related things are best to buy in store because in the store the customers can make go for trying it but in the online shopping they can’t. Some online retailers will let their customers to customize their product and purchase for instance nike UK they provide wide range of shoes but still they allow the customers to design their shoes to their choice before buying it. And even some retailers Argos they provide customers review on the products so the new customers can read the existing customers review on by using a product and then he can go for buying it, all these are the best know examples which motivates the customers and the companies to get in to online sales and shopping. There are some drawbacks like delivery charges for the online purchase but still it’s a convenient way to get the shop done.

The development of internet shopping:

Internet online shopping has developed almost a lot since 2000. It still only accounts for just over three percentages of total retail sales but this share is higher in certain sectors. Nearly two-thirds of consumers are internet users and over half of these had used the internet to make purchases. Comfort and convenience in shopping are the important lines to be noticed in the online shopping but in the same way the level of security in the payment methods will always be a nervous maneuvers by the customers and that’s the main drawback of the online shopping and online sales

Types of e-commerce

The different types of e-commerce are business to business(b2b), business to customers(b2c), business to employee(b2e), business to government (b2g), business to administration(b2a), business to machines and business to managers(b2m), consumer to consumer(c2c), consumer to business(c2b), consumer to government(c2g), government to business(g2b), government to government(g2g), managers to consumers(m2c), peer to peer(p2p). These are the various transaction methods followed by the business people in the name of e – commerce.

Literature review:

Difference between E-business and E-commerce:

E-business is a modern day business method where most of the work is processed by using the internet resources. E-commerce is the method followed by the companies who uses the latest electronic technology to process their business for example the electronic money or information transferring.

Turban and lee (1999) stated that the e- commerce is a method of transaction of money, data or information, or buying a product and services through any electronic device. E-commerce is the main part of the e – business and the main available source for the e-business is the internet resources. Through internet they can research customer’s door step straight away.

Business-to-consumer and business-to-business are mainly focused by the e-retailers, B2C refers to businesses which are for the customer, especially retail activities over the internet and includes product. B2B refers to business conducted over the Internet mainly between businesses. – Edith Simchi-Levi(2004). Designing and managing supply chain, concepts, strategies, and case studies, second edition page no – 130.

Online Sales are the process of selling the products online or the ability of the retailer to transact sales online. Buyers in point of fact buy and shoppers in point of fact they shop but they will be keen in selecting the easiest way. Internet shopping is also involves in enquiry or even an online catalogue check up. But in general the e-business can’t allow the retailers to do there all works like stock management and office administration works which actually demands a lot to run a retail business. So the e-business in purely depends up on the companies status in all aspects. E- Business has a wide range of perspective; it supports the some retail companies which is following supply chain management – Dave Chaffey (2005). E-marketing excellence: the heart of e-business, 2nd edition.

E- Commerce business models

Justin Gooderl Longenecker(2006) stated that every company have unique business model especially the e-retailers. The company’s business model will just describe how they producing sales and revenue, and a company’s business model is identified by the technique they use for their operations and the technology which they are depends on it. For example Tesco a very big retailers company who adapts e-business and they concentrate mainly on the business to the customers, they sell products to customers by offering a wide range of groceries and the households products as well, e-commerce allows them to do their job in a quick successions. – Justin Gooderl Longenecker (2006). Small business management: an entrepreneurial emphasis page no-186.

E-shopping overview:

The e-shopping will tempt the customers to do their shopping and it will reduce the number of direct store shoppers and hence it will be more beneficial in the customer’s point of view because their cost of travelling and the valuable time will be avoided and the shopping will be maid will leaving their home. – Mokhtarian, (2004).

Online product selling:

Many scholars admits that the number of shopping trips will be reduced by e – shopping. Its make more comfort for the shoppers especially in the payment methods, order it through telephone and collect it in store. – Keskinen (2001)

As on my research I have found some scholars mentioned that several shopping trips were connected by means of other activities it is called as trip chaining, in other words, a person goes to a shopping center or a super market on their way from work to home or vice versa. – Visser and Lanzendorf (2004).

The people like to sit in front of the computer to do their shopping instead of making their way to the supermarkets, and there are some particular consumers who like to enjoy the power of web are utilizing it in the proper way, and hence their money gets added in the consumers account as the nation’s economic improvement remains fragile. – Chris Webster, head of retail consulting and technology at Capgemini. According to Capgemini SA and Interactive Media in Retail Group, the online sales in UK have surged 25% during December 2010 comparatively with the same time the previous year and increased 7% during November.

Purpose and importance of e-sales:

The most efficient and accessible way to reach out for clients in all over the UK is through internet selling. More or less, people have absolutely purchased thru online to save lots of time and money, and earn more profit at the same time. Growth of online sales is growing in double digits and the growth of Internet use by the public is still showing dramatic increases.

With the current boost in online sales will maximize the company’s overall sales, through online is becoming an increasingly attractive choice for any retail company. Through online sales the company can gain access to millions of potential buyers who would not have known about them. Imagine a retail company store that sales a no of amount of product; these product consist mostly common product for daily use. This retail company store in a rural area and for the most part is known only to the locals of the area in which it is located. As a result of this company retail store being known to only a small segment of people, the potential sales are limited because of the reason is quite clear: customers who can drive to the physical location of the store within a reasonable amount of time will have the most likelihood of being repeat customers. Anyone does not live within a relatively short distance will most likely take their business elsewhere so how can this particular company retail store maximize potential salesIf this local company store can electronically enable its commerce activities like online sales that effort will result in the greatest probability of maximizing sales and profits for the company. – Paul Sarknas, (2005) Pro ASP.NET 2.0 e-commerce in c#, page no – 4.

Probably the most advantage and purpose reason to implement online sales in company so the store can reach potential customers far beyond its current local limit. The store could even attract customers from any cities or town around the countries.

E-shops, in general online retailers like Tesco, ASDA, Amazon, etc. In the B2C sector is looking for profits from the online sales. The sales revenue model is based on actual online sales and as more people gravitate towards the internet and its importance as a model will grow. Even the B2C sector has accounted for around 70% to 80% of online transactions, largely due to relentless drive for cost efficiencies and competitive advantage. However, the growth in consumer B2C online sales volume is growing and making a significant contribution to the total revenue of established organization such as Tesco. According to Jupiter research there will be over 200 million internet users in Europe by 2010. This signifies a nearly 68% increase from 2001. – Rita Esen. (2007) online marketing: a customer-led approach, page no – 52.

Benefits on having online sales

Benefits to the Organizations

Expands a company’s selling and buying opportunities to national market. With minimal capital outlay. A company can quickly locate more customers.
Shortens or even eliminates marketing distribution channels, making product cheaper and vendors profit higher.
Helps some small or medium companies against large companies.
Enables a very specialized niche market(e.g.,

Benefits to the Customers

Frequently provides less expensive products by following consumers to conduct quick online search and comparisons.
It gives more choice to customer in selecting product and vendors.
This will enable shoppers to shop anywhere anytime.

– Efraim Turban & Linda Volonino, (2010); Information Technology for Management, Page no. 206.

Online sales success in UK:

In a Metro article at 25/06/2009 they have published that the Woolworths one of the retail company in UK have shown better sales though their online business. It shows that their new website has reached almost 100,000 shoppers online and the important thing is they have achieved in the first few offers in the day of launch. And they made their comeback into the business.

Sainsbury’s grew its online sales by a quarter in the three months to 2 October2010, as the firm continued investing heavily in its supply chain and other systems. The gaint retailer stated that they have overtakes the arch rivals Tesco in the overall sales figures with 2.9%^ this includes there in store profit as well and they stated that this online growth motivated them to produce excellence in the product service and availability. During May 2010 Sainsbury’s reveals that the success behind their online sales is the constant improvements in IT & supply chain management and store-picking processes. They even stretched their online sales by previous year (2009) when they started selling 8000 non-food items through online. – Leo king, CIO magazine, published at 11th October 2010.

Tesco, well known as Britain’s leading food retail group in UK. Tesco online is generally recognized as the UK’s largest online grocer. Online sales in the first half of the year in September 2007 were 748 million, 35% year-on-year increase, and the profit increase 54 million. now receives over 300,000 orders each week. In 2007, the company outlined some points for the future online sales and its online strategy is aligned with this, with Tesco Direct now having 12,000 products online and expected to generate revenue in excess of 150 million in the 2007/2008 financial year and within the top 10 UK online stores. – Richard Gay, Alan Charlesworth, Rita Esen.(2007) Online marketing – a customer – led approach, page no – 52.

ASDA, Britain’s leading-biggest supermarket chain is planning its biggest internet expansion to date in an attempt to generate ?1 billion of online sales by 2011, and to close the gap with Tesco. The group plans to go head-to-head with the likes of other retail leading companies in UK. Its current online offering is limited to food and drink, toys – where shoppers can surf the ASDA Direct site in-store – later in the year.

ASDA’s chief executive, Andy Bond, acknowledged that Tesco, which launched a similar non-food service two years ago in UK, was ahead of its supermarket rivals in online sales. However, he said: “For a long time the internet boom has been one where you could see how you could sell stuff thru online. We now believe the economics are such that you can truly make a profit. Maybe we could have gone faster than we have. – Steve Hawkes, the news paper The Times, published on 01/02/2008.

Marks & Spencer, a well known retailer, has online sales which represent a tiny proportion of Marks & Spencer’s total turnover. In an attempt to turn the online sales into a strong contributor, Marks & Spencer’s is planning to set up Internet points in-store so that customers can place an order for the item the item that they want and it will be delivered to them. There is nothing particularly unusual or innovative in what Marks & Spencer are doing. It does, however, reflect the growing trend for multi channel retailing. – Richard Wyatt-Haines, (2007) Align IT: business impact through IT, page no.40.

Marks & Spencer’s online sales increased by 49% in the early part of the 2010 and the overall UK sales increased as well with the help of M&S online sales and it helps the company to perform well. M&S chief executive Mark Bolland said in his Interim management statement Marks & Spencer has delivered another good online sales performance in the first quarter 2010. – Rebecca Thomson published on 07/07/2010; Computer Weekly magazine.

Literature findings on online shopping and e-commerce:

Estimates for future online sales of apparel are optimistic. One forecasts online sales at over 7 percent of sales in 2003 and more aggressive projection estimates that online apparel sales will account for 9 percent of apparel sales in 2000, and more then 18 percent of sales in 2005. What rates of growth prevails will rely heavily on the implementation of online sales technologies.

Emerging B2C business models in the apparel industry.

Bricks and mortar retailers ( retailers that derive the majority of their revenues from physical stores)
Pure-play firms (retailers that sell apparel only online).

Although the use of the internet as a front-end tool B2C apparel sales has great potential, most agree that the real power of e-commerce in the apparel industry is in the opportunities for significant improvements in supply channel management through B2B initiatives in business industry. – Berkeley Roundtable, Tracking a transformation: e-commerce and the terms ofcompetition in industries, page no 319-20.

The dot-com bubble has burst, but e-commerce isn’t dead – online sales are still growing impressively in UK and all around the globe, Forrest research reported that 2002 online sales were up nearly 40 to 50 percent compared with the year before. In the UK the interactive Media in retail group said that 2002 online shopping grew 19 times faster than traditional retailing venues. Furthermore, as of in December 2003, the reports online sales are up 20% to 35% this year. In fact, numerous experts predict that internet shopping is likely to continue to grow brick-and-mortar sales for foreseeable future because consumers are recognizing and exploiting the benefits of web shopping in the globe.

In 2003 e-spending report found that 62 percent of the online shoppers interviewed described themselves as satisfied with the experience while less than 5 percent were dissatisfied. This means that online shoppers are also more confident about security and more comfortable spending money online. 2003 was the year that e-commerce proved it is not a “flash in the pan” and the web is now common shopping venue for average consumer. – Janice Reynolds, The complete e-commerce, page no – 11.

The retail industry was in general late to respond to competition from virtual stores and to recognize the opportunities provided by thru Internet. Recently, the landscape has changed, as many so called brick-and-mortar companies are adding an Internet shopping component to their offering. Enter click-and-mortar giants Wal-Mart (ASDA) and among others. These retailers recognize the advantage they have over pure Internet companies. As a result of going online, click-and-mortar firms have changed their approach to stocking inventory. High volume and fast moving products.

– David Simchi-Levi, Philip Kaminskay, Edith Simchi-Levi (2004). Designing and managing supply chain: concepts, strategies, and case studies, second edition, page no – 131.

Main advantages of adapting online business:

There are a number of advantages for retailers. Firstly, location is unimportant. According to some textbooks and adapting an old saying, the three most important elements in retail are “location, location and only location”. The best high street locations are therefore expensive. The main advantage for the e-retailers, though, can sell equally well to anywhere in the country. Secondly, size does not matter – small e-retailers can compete on equal terms to large ones and reach a larger audience than the high street- and be open 24 hours a day. There are many other advantages to e-retailing. The socio-demographic profile of e-shoppers is attractive to many retailers, with higher than average education, employment and disposable income levels. In the theory at least, online selling saves on the wages of face-to-face sales people and the cost of premises.

Advantages of E-Retailing for Retailers

Location is unimportant
Size does not matter
Accepts orders 24 hours a day
More opportunities for CRM, micro-marketing, cross and up selling
Reach a larger audience
Higher disposable income profile then average
Saves on the wages and premises costs
– Lisa Harris, Charles Dennis (2007); marketing the E-business second edition, page no – 238.

Success Factors in e-retail

According to research company Forrester, two- third of e-shopping transactions are aborted after the shopper has already placed goods in the shopping basket and 9 out 10 buyers do not make a repeat purchase. The e-retailers main focus should be on the reliability. Help like, virtual or human but customers like human to be available as a last resort and needs to be available to sort out problems at least by e-mail, but preferably also with a phone option. 41% of Internet users would be more likely to buy if human interaction was available.

– Lisa Harris, Charles Dennis (2007); marketing the E-business second edition, page no. 244.

Ravi kalakota (2004) suggested that the retailers should conserved some important aspects on e sales for their products, first they need to recognize what kind of product going to sales or what kind of products are suitable for selling online. Then they should find and use some features which will produce an effective interface or for example the features provided by the company’s online web site should make the customers easy to find and select the products which are to be purchased. Then online buying process for example the selection of items then adding it to the basket and final online checkout for payments, all these should be made clear for the customers ease of access.

Andrew.Bwhinston (2004) says that the online business is a secured and safe way of modern shopping for the customers.

Gary B.Shelly demonstrates the e shopping model in steps, this model explain the basic method of e shopping in retail industry.

Step 1 = the customers selecting their products through the e retailers web site.

Step 2 = the customers collect the purchased items in the electronic basket.

Step 3 = the customers input the payment information’s ions and the e retailer send these data to the bank.

Step 4 = the bank perform security check and sends authorization to the e retailer.

Step 5 = the e retailer send a conformation to the customers and they will process the order and they will send it to the fulfillment center.

Step 6 = fulfillment center do the packaging works and send the products to the next stage of the shipment. And they will send a message to the e retailer as well.

Step 7 = in this step the ordered products will travel to the customers house, and the delivery information will be sent to the customers and e retailers simultaneously.

Step 8 = this is the final stage, now the ordered products is delivered to the customers.

Misty E. Vermaat & Jeffrey J. (CON) Quasney (2010). The e retailer can get combine together with some companies for the online payment, companies like PayPal and Google checkout are the example for it. The customer’s needs to register in the online payment services companies and they should register their bank details to them, then when a customer make a online purchase then they can use their online payment account , which transfers money from the customers to the shops account without revealing the customers financial information.

The Shopping become a virtual experience. In the normal e retailers uses the website which displays their available product but the online shoppers may experience their shopping online in the three dimensional environment which almost gives the experience of the direct shopping at the mall or store. Software manufacturer kinset, Inc. is a leading e commerce development. The kinset has launched its product to the retailers. The shoppers just need to download and install this software in their computer system and connect to the internet and then they can begin their virtual shopping. The information about the product will be displayed when the shoppers click the product once and the press the mentioned key will add the products to the shopping e basket and further to the checkout.

Gary B. Shelly, Misty E. Vermaat, Jeffrey J. (CON) Quasney(2009) Discovering Computers 2010: Living in a Digital World, Introductory

Plan a web site, analyze and design a website, create a website, deploy a web site and maintain a web site. These are the five major works to be carried out for the web publishing. – Misty E. (Gary B. Shelly, 2009).

Several factors have critical importance in the success of any e-commerce venture which include.

Providing good values to the customers the company can achieve it by offering product for a competitive price which attracts the potential customers.
Providing better services and performance and this can be done by offering a fast, user friendly purchasing experience.
Providing an attractive site and which can be done by the tasteful use of color, products photograph, graphics, animation, fonts.
Giving an incentive to buy and to return. This can be done with sales promotions like special offers, coupons, and discount. Cross-linked website and advertising affiliate programs can also be used.
Offering a personal attention like personalized website and shopping suggestion.
Providing a 360-degree view of the customer relationship, suppliers, defined as ensuring that all employee, and partners have a complete view, and the same view of the customer.
Providing reliability and security. Parallel servers, failsafe technology, firewalls, and information encryption can enhance this requirement.
Owing the customers total experience and this can be done by contacts with a customer as part of a total experience, so an experience that becomes synonymous with the brand.
Streamlining business processes. This can be done through re-engineering information technologies in e-business.
Letting customer help themselves. Provision of a self serve site and easy to use without assistance, can help in this respect.
Help to customers like e-retailers can provide such help through ample comparative information and good search facilities.

E-commerce implementation allows enterprises to improve customer service, efficiency and productivity and to reduce over-all cost. It also helps them reach new market cost effectively, transact business through the online, and provide a new selling environment. Above all it is a new method of acquiring customers. (pankaj, 2010)

The basic rules for success in E-business

Product: there has to be a demand for the product in market which company offering. Before launch any new product in the market company should do to research on it.

Stand out from the crowd: competition on the web is stiff and company has a good selling position. Something has to make customers use their site rather than others who sell same product. In other words, company needs something to make their site stand above the crowd.

Payment options: company will have to accept credit card payments online. Forget about personal checks and money orders on the web; research shows that when people buy over the internet, they want it now and don’t want to think about sending checks or filling out order forms etc.

Service: as with any business, service is what keeps customers happy and coming back again. Some good ideas include offering personalized order confirmations, post-sales inquires, money back guarantees and dispatch notifications. These things are inexpensive and easy to set up and happy customer is one who will not only come back but recommend you to others.

Marketing: marketing may be the single most important thing company does for the successes of their online business. Company may have a good product or service but if customers don’t visit their site company could be failure. Plan to spend a significant amount of time marketing for companies’ product and services.

Community: your customer will find your site from many geographical points on the globe. A good way to establish a web community is to offer message boards, newsletters, promotions and contests. These are relatively easy to do and keep customers returning to your site, gives people from diverse locations a sense of belonging.

Site design: there are several stages to website design and the most important stage is planning stage. Researcher recommend work closely with a professional to make sure your goal are properly defined and met, make sure with the overall design and the navigation and the website upkeeps is straightforward. Creating a really good website is not an easy task, but that an experienced professional should be able to do well.

– Pankaj, (2010); E-commerce, page no.-21.

Disadvantage for Online sales

Retailers have been slow to take e-retailing or online sales. This is to some extent understandable in the light of many disadvantages and problems or challenge. Retailers, for example, may lack the technical know-how, even the substantial investment required or the order fulfillment capabilities. Set-up cost is depending like up to small to large organization. And set-up costs are only the start: Data monitor estimates that high street retailers are spending more on ongoing costs than on setting new sites.

Website crash ruins M&S flash sale

Marks & Spencer’s flash one-day sale, offering 20% discounts, backfired yesterday when its website crashed, stopping thousands of shoppers from buying the cut-price goods. So many costumers were left disappointed and angry at their inability to pick up bargains that M&S is extending its website sale into today in an attempt to placate website shoppers. A spokeswoman for the ailing retailer said that the M&S website had stopped working for several hours in the middle of the day. By mid afternoon, the online store was running again, but transactions were so slow that many simply gave up. We want to apologies to customers for any problem caused, said the M & S store. – Julia finch, (3/12/2004); city editor, the guardian.

A further disadvantage is that online sales are less powerful than face-to-face selling. This view point is linked to a concern of traditional high street retailers that e-retailing offers a diminished role for their expertise in the market. For example, there are obvious difficulties with products sold by “atmosphere”-touch, smell, feel and with impulse purchases. In addition, consumers have a perception of lower price online. This puts pressure on margins for e- retailing and can lead to shoppers expecting consistent low price in store.

May lack know-how and technology.
Complex logistics of fulfillment.
E-selling less powerful than face-to-face uptake slows for goods selected by taste or smell.
Substantial set-up, investment and ongoing cost.
Fewer impulse purchases
Pressure on margins and prices in store

– Lisa Harris, Charles Dennis (2002); marketing the e-Business. Page no. 244 to 247

Disadvantages of e-shopping for consumers

Consumer, too have been slow to embrace e-shopping. Back in 2000, the UK’s largest e-consultancy Cap Gemini carried out an employee survey. The main disadvantages for shoppers, in ranked order were availability; can’t be in to receive delivery; premium charged for delivery and can’t see or feel the merchandise. With years more experience many e- retailers still do not have satisfactory answer to these problems.

Lack of personal and social interaction
Credit card and security worries
Don’t know how
Difficulties with returning goods for refund
Premium charged for delivery

– Lisa Harris, Charles Dennis (2002); marketing the e-Business. Page no. 244 to 247.

Some researchers have discussed several benefits that online shopping provide to consumers, which are not quite available in traditional shopping channels. There is no doubt that internet has provide a different shopping experience in various ways to consumers and there are much more benefits for consumer to purchase online. For example, consumer can buy product without the limit of space and time, consumer can access more information than ever before with the help of search engine, and the other exploration tools on the internet, thus consumer will feel more joyful and active during the online shopping process.

Risk factor:

Risk factor it divided in to seven dimensions based on related literature Nena, (2003) and interview to online consumers, which can be divided further by their characteristics respectively, which was shown in detail as following:

1)Economical risk (ECR) represents the possibility of monetary loss arising from online shopping. It can be further divided into three parts.

Payment loss risk
Credit card embezzled risk
Online bank payment risk

2)Product functional risk (PFR) refers to the possibility that the purchased products sometimes do not work properly and could not satisfy customer’s anticipation. It can be divided into three parts.

The product performance not fit the need
Products damaged for third party reasons
Possibility of buying counterfeit goods, inferior products, damaged goods

3)Information risk (INR) refers to the possibility of loss may brought by information unsymmetrical or falsehood information. It can be divided into two parts.

Unable to judge the reliability of description about products and service provided by the online shop;
Unable to confirm the validity of other information;

4)Social contact risk (SCR) refers to the possibility of online shopping may bring influence to the consumers normal human social relations. It can be divided into two part:

Individual information exposition risk;
Individual prestige and the social position impair.

5)Health risk (HER) refers to the possibility of physically or psychologically health impair brought by online shopping. It can be divided into two part

The physically health risk;
The psychologically health risk.

Online shopping relevant elements

There are many factors may influence consumers perception about risk and benefit. In order to identify items that has influence on online consumer’s decision making. That there are three main elements, consumer, product and website, have influences on consumers; perception during online shopping process. Furthermore, each of these three elements can be divided into several influences factors as following.

The first elements is consumer, which is the most important and main participant in online shopping and obviously played an essential role regarding the most shopping decision making. When shopping online, factors may influence consumer’s perception about risk and value is shown as following:

1)Degree of involved in internet;

2)Demographic data

3)Online shopping experience;

4)Personal characteristic

5)Degree of involved in online shopping

6)Degree of product cognition

The second one is products, which is the main object of online shopping. The product characteristic determined whether it is suitable for online purchase or not. In other words, some times products itself will influence consumers perception and will influence their online shopping decision (Peterson, Bronnenberg). There are several factors related with product have influence on consumer’s perceptions.

1)Standardization (Cheng and He, 2003);

2)Price level (Covaleski, 1997);

3)Seller’s credit and reputation;

4)Information reliability of products;

The last element is website, which is the business intermediary platform. The role of website is an intermediary agent in the process of online purchasing or shopping. Some research results have shown that the website reputation, design style, function and other contents will have great influence on customers shopping possibility(McKnight, Kacmar, 2003; Keesling and Black, 2003; Cox and Dale, 2002). Here, we consider website characteristics including following parts:

1)Website’s business security(Bhatnagar, Misra and Rao, 2000);

2)Rationality of business website designs;

3)Convenience of transaction on the website;

– Matthew L. Nelson, Michael J. Shaw, Troy J. Strader(2009). Value Creation in E-Business Management page numbers 88 to 93.

Research methodology

In this project the research method I have planned is of two types parts one is through the qualitative and the quantitative methods the in the earlier part I have shown the literature saying that describes about the e-commerce, e-business and online shopping in UK. And in the qualitative methods I have planned to conduct a primary research which can get the detailed information which is required for this project. In this project I have planned to start the research from identifying the importance of this project and to collect the required information which can be helpful to attain the research objectives.

“Research is a common phrasing refers to the search of a particular knowledge. Research is also called as the investigation of a particular area and it is of two type systematic and scientific researches”. – Dr c r Kothari (2008).

Objective of the Research

The main criteria of the research are to identify the unknown information about the 99p stores potential in online sales which hasn’t been discovered yet. And the main objective of the research is listed below,

To test the hypothesis of the element under observation
Collecting the required data’s for this project.
Collecting data’s through different research methods( primary and secondary research methods)

Motivation in Research

The following points show my motivations of the research.

I desire to get the research findings along with the consequential benefits.
I have faced some challenges in solving the unsolved problems.
I wish to get intellectual joy of doing such a creative work.
I want to produce the service to the society by doing this project and to get the respectability.

Data collection

There are two important data collection method used in this project they are primary research and secondary research method. Qualitative primary data research is the combination of gathering data’s through interviews, observation and analysis, direct one on one interviews, surveys to the people related to this research project. In this research I have chosen some data collection method which are primary research (interview and survey) and secondary research (literature findings and magazine references).

Primary research

In this project I have used primary research to get the qualitative data. This research contains interviews with the management of 99p store and I hope I’ll collect the required data or information and I have processed some survey questionnaires and I have planned to get survey from the staff members of 99p store and hence this is the primary research used in this project.

“Rozakis (2007) stated that primary research is the only available source used for gathering the accurate or fact information’s required which cannot be obtained by other research sources”.

Secondary research

In this project secondary data’s are really helpful for me to understand the research area and to write proper literature review. Some online news about the e-commerce and online shopping is also gather through the online web surfing and hence it is very supportive for the project. In other words the secondary research findings are useful which can be compared with the primary research findings.

“Gratton et al (2004) stated that the secondary research method is the one where the data collected will not be original, but in this project I have used secondary research source as a supporting tool.”

Survey Questionnaires

“One of the primary research technique used in this project is the questionnaires. Grantton et al (2004) stated that the questionnaires are set of questions used by the researchers to get information from a particular subject”.

In this project I have outlined some questionnaire for the survey to find out the key answers form the management and the staffs of the 99pence stores ltd. In this project I have produce in the research findings part all the questionnaires will addresses the key part of the e sales or e shopping in 99pence stores ltd.

The main advantage of using the questionnaire is the cost, this process of conducting survey is really less expensive and there is privacy on doing this process. This process has got some disadvantages like, improper response and there is chance of cancellation of the survey.


In this project I have planned to do qualitative research on this basis I’m going to conduct an interview with the managers of the 99pence store and I hope it will be useful to gather some important information’s which can be used for developing my research on the e sales on the 99pence store ltd.

“According to Rajender kumar (2007) interview are the available tool used by the researchers to get the proper information of the assignment which is under the process. Interview is the best available options for the people to make clarifications on their queries and doubts. There are three types of interview can be conducted first is the structured interview, semi structured interview and unstructured interview”.


In this project I’m going to conduct a short survey on the 99pence stores staffs and customers, and the main importance of this survey is to identify the different opinion and ideas of the both staffs and customers of the 99pence stores to launch the online sales or shopping for this store. And the information will be analyzed in the later chapters and they are listed and presented in the next part of the project.

“Wayne Goddard (2004) stated that the survey is the research technique used by the researchers to obtain the required results from the wide range of people or community or groups. This survey method can be used for getting the findings through the national wide or it is used to gather the opinion from the whole nation. The main importance of conducting a survey is to get different opinion and information from wide range to make the project lot better”.

Hence in this part I have explained about the available research methodology approaches and have chosen one and adopted to process this research project. The qualitative research is used and the overall data collected is the primary data that is the collected information’s are form conducting one on one interview with the 99pence store management and direct survey is conducted as well to the 99pence stores staffs and customers to get their ideas and suggestion as well. In the secondary research I have used some online news about the e commerce and e shopping in UK. Secondary research is also helpful in finding some of the literature findings and some online news magazines. This research adopted interview and questionnaire as a tool of data collection methods to explore the final result.

Research findings and Data Analysis & interception

The current e sales and s shopping success in UK motivated me to undertake this research i.e., online sales for 99pence store. The online business needs lots of IT resources, the company should have a firm grip in the industry and the company should be finically strong to launch online sales for them. In this chapter I’m going to produce the research findings the first one is through the interview to the 99pence store management and the next is the survey from the 99pence stores staffs and customers. After I will consider the data and I will give further recommendation for the organization from the findings on the next chapter.

Now I’m going to produce the interview findings, the interview was conducted to the 99pence store management to obtain their view on launching online sales for their store,

Research findings

Interview questions and answers:

Interview 1

This interview was conducted with the store manager MR. Paresh of 99p store in Edgware.

1)99p store is a budget retailer with chain of shops in the UK. Do you think the online sales for 99p will be successful

Store Manager: yes it is a budget retailer and the making the online business is a good idea. It will make better image for the company among the current market and the market share will increase for sure as well because the new changes in the market will always make attention among the customers. If the 99p stores go online than it will be the news papers head line information for sure. It is the latest trend in the market to sell products online. We can measure the success rate by comparing with the other online retailers and hence it would be a better idea for making 99p stores business both online and stores sales as well.

E-sale is seems to be successful among UK retailer from the day they launch of their online sales. What’s your view?

Store Manager: As I said in the previous question the online sale will be a good idea and in the same way I won’t say it will make dynamic profit figures for the company. The online sale will get more recognition among the people and in the market. Company’s value will increase. In the initial stages the business will reach the more than expected profit for sure because people will tend to try the new things in their life especially in shopping so they will give a try on it. Further performance in the online sales is purely depends upon the organizations development on it , in other words the company should look on introducing new innovative things and strategies on the online sale because people tend to choose the new things they expect to get updated all the time. The retailers in the UK market have show success it a point to agree with it but it’s not by just launching a website for their company it includes many business strategies on it something like online offers, so it’s purely depends on the company’s plan on it.

2)If there will be logistical challenges and would it is possible to justify a delivery charge or will it impact customer view of the 99p store?

Store Manager: Delivery charges should be done, most of the retailers do it and from the view of the organization it should be carried out. Because it includes a cost of a staffs pay, vehicle charge and so on, so the delivery charges should be maid. I think customers in the UK will accept it as well. Doing home delivery has got some issues like product returns and their may a possibility of a damaged goods and so on .before all these it is a big challenge for the company like 99p stores to start an online sale if they are ready to do so then making delivery charges won’t be a big task for them. But anyhow from my view the delivery charges should be applicable hence it won’t affect the company’s sales profit.

3)Online business needs to have an IT technical team. Do you think it should be done internally or externally?

Store Manager: Yes, up to my knowledge they need an IT web designers and developers for sure. And I would suggest having it internally will be a better idea because all the company’s information will not go outside the company and it should save more money. I won’t say outsourcing is a bad idea but still handling the IT works internally will be better idea.

4)Developing an online business creates a new image to the organization but mean while its cost more, in other words if e-shopping site is developed will a re-brand be required. What’s your view?

Store Manager: General thing in the business is if one invests more money expects more money as well just simple as that. By adapting this online sale business will cost more and hence the company will get better recognition among the people and hence its cost more. So the company needs to invest some money for sure and they can get it back easily if they approach the rite path.

5)If the online sale is launched in 99p store and do you think it will affect the direct store sales or vice versa. What’s your opinion

Store manager: I think none of it will affect each other. Because among the e retailers we can clearly see the online sale will be a good support for their main direct store sales. Each of these methods has some advantages and disadvantages so I can clearly say that the online sale won’t affect the direct store sales. For example last winter company faced some low profit figures and I hope the online sale would really help the company’s profit to go high in these situations.

6)What do you think which kind of adverts can reach people quickly about the online business launch in 99p store

Store Managers: 99p is a well know high-street retail store so the adverts can be through online, newspapers ads, public holding near the bus station or even in the high street would be more preferable.

7)Usually many e retailers give offers in online purchase but not much in direct store sales. What’s your view?

Store Manager: Whether it is an online or direct sale it should tempt the customers to go for it. In the case of 99p store customers will have one thing clear in their mind that they going to get any product for under a pound so the company should decide whether to go for further reduction or to not. Up to my opinion the company should stick to their same rule in both direct and online sale.

8)Payment method, what kind of credit and debit cards should be accepted, what’s your view on fraud monitoring and prevention.

Store Managers: I think the normal credit and debit card payment methods will fine. For the fraud monitoring we can use security system method on the website, we can prevent it by getting the whole data’s about the customers, since to make a online purchase they need to type their bank account number and they need to answer some security questions as well so it should be fine. We can make it secure purchase for the customers by send them the receipt through online on their every purchase and hence the customers will have piece of mind as well on their purchase.

9)What kind of return policies should be adapted because the returns will considerably cost the organization?

Store Manager: I would suggest following the same returns policies as we follow it in the store. Since it’s a budget shop, if customer purchased and want to return we just give the 2.97 pounds for whatever purchase they maid. That’s the company’s policy and I would suggest it for the online sales as well.

10) How can company support the products which are to be sale onlineCompany need to answer the basic questions from customers through telephone or email. What’s your view?

Store Manager: Yes definitely the company needs to give feedback to the customers. As I said before the company can give the receipt through e-mail or even they can mail them about the confirmation of the purchase and so on. These are the extra works to be carried out in the online sales.

11) Stock management is crucial part in e-sales. The products should deliver to the customers from the warehouse directly or from the stores stockroom.

Manager: Whichever is closer will be comfortable for the delivery people but it cannot be practiced. The stock to the store will come once in a week and some big stores twice in a week, so it will be enough for them and we can’t take that stock for the online sales system. I would suggest making a separate warehouse for this and even from the 99p main warehouse which is in Northampton for the nearby regions.

12) People may buy products online because their time and money are saved and still they can go to store and pick their items during their daily commute what’s your view on this?

Store Manager: Yes we can expect people to do only online purchase or through direct so basically people prefer online shopping for the big purchases. They also prefer to buy movie dvd’s online and I think we sell it for the best price as well so its all depends on the customer needs, If a person need to buy a coke and if he is on the way to his work then he wont prefer to buy it online and mean while if he is in home and want to wants to order for more 100 pound worth products then he can go online.

13) Wrong payment transaction and wrong product delivery these problems can cost company how do you think this issue will be rectify.

Store Manager: Wrong payment transaction will cost the company for sure and it’s up to the customers as we know we receive transition declined receipt in our tills and even its cost some pence for the company but we can’t avoid it, it’s all depends on the customers. Then the wrong product delivery can be avoided by double checking delivery address and making the work error free. Even in store some products get damaged by the staff members while stock filling and arranging it will cost the company, so the staff needs to check it twice and this process should be monitored by the managers or some superior people should take a lead on.

Interview 2

This interview was conducted with the assistant manager Mr. Sanjiv in 99p store Edgware.

1)If there will be logistical challenges and would it is possible to justify a delivery charge or will it impact customer view of the 99p store?

Asst. manager: I will suggest charging for the home delivery, because the cost of the home delivery includes the person or staffs payment and the vehicle running cost. So it will cause loss for the company hence it is a budget shop as you says. Some companies does it for free but still it will cost more and the company will get loss in the profit so I will suggest to charge for the home delivery.

2)Online business needs to have an IT technical team. Do you think it should be done internally or externally?

Asst. manager: It’s obvious that the company should use an IT technical team for this it would be more precise if they have it inside their organization. Because the organization will have the authority on it if they have the company owns IT department. I think the IT team already exists in 99p store and they can just recruit the wed designers to develop and maintain the website and I will suggest they can recruit expatriates from other countries like India for this kind of work.

3)Developing an online business creates a new image to the organization but mean while its cost more, in other words if e-shopping site is developed will a re-brand be required. What’s your view?

Asst. manager: This question is the common thing arises when we think to apply new strategy to the business. My suggestion is it’s a simple business risk, companies chairperson should think about it twice before launching, 99p store have the potential in all the ways like financially, and staff wise to start this business through internet, and if they does it then definitely it will make better image for the company.

4)If the online sale is launched in 99p store and do you think it will affect the direct store sales or vice versa. What’s your opinion

Asst. manager: I think it won’t affect the direct sales, because the online shopping is in deferent platform, and most of the customers who comes to the stores will be shopaholic, or window shoppers and that won’t affect the online shoppers with the direct shoppers. Definitely the online shopping will support the store sales as well by boosting the more revenue and even this can expand companies business.

5)What do you think which kind of adverts can reach people quickly about the online business launch in 99p store

Asst. manager: first the online advert will be the best suitable thing for this, because it would lead the people to start the shopping instantly from the moment they saw the advert. And the other option like banner in the high street or even a small banner in the store will be the best option of advertising.

6)Usually many e retailers give offers in online purchase but not much in direct store sales. What’s your view?

Asst. manager: The Company should adapt the same from the other retailer. But the 99p is a store which sells everything under a pound so they can’t still go for further reduction in their products but still we are selling some soft drinks three for 99 pence and this can be used as further reduction in the sales. On the other side the company can think for some new offers for the customers who purchase more than fifty pound.

7)Payment method, what kind of credit and debit cards should be accepted, what’s your view on fraud monitoring and prevention.

Asst. manager: Usual payment methods credit cards, debit cards, gift cards from store, gift vouchers etc.., can be done and for the fraud monitoring the company can set a security system through online which was practiced by other retailers and mostly the fraud payment will be handled by the banks itself, so I think it won’t cause more problem for the company on this issue.

8)What kind of return policies should be adapted because the returns will considerably cost the organization?

Asst. manager: We should practice the same as we do in store, because the companies’ returns policy and procedure were followed by many regular customers so far and if change it now it can cause a problem. So I would suggest sticking to the same rules.

9)How can company support the products which are to be sale onlineCompany need to answer the basic questions from customers through telephone or email. What’s your view?

Asst. manager: The product sales and support is the tough thing to handle in the store and through online I think it will be the same. But in these online sales there is a possibility that the customers can bring their product to store if it is danged or if wrong product delivered. So the product support should do through telephone and it should be adapted for the direct store as well.

10) Stock management is crucial part in e-sales. The products should deliver to the customers from the warehouse directly or from the stores stockroom.

Asst. manager: The products should be delivered from a separate place for the internet shoppers somewhere like the main warehouse. Because in the store we usually get the delivery of stock once in a week and it will sufficient for one whole week and sometimes it won’t be enough so it is better to deliver the product directly from the ware house instead of from the nearest store.

11) People may buy products online because their time and money are saved and still they can go to store and pick their items during their daily commute what’s your view on this?

Asst. manager: As we discussed earlier the online shopping is a different platform of selling the products and I’m sure it won’t affect the in store sales. People who wish to shop online will do it and the shoppers who do the in store shopping will come directly to the store for shopping it depends on the people and their situation and we can’t predict things on this questions.

12) Wrong payment transaction and wrong product delivery these problems can cost company how do you think this issue will be rectify.

Asst. manager: Definitely it will cost the company, the company should look for this issue and they should set rite options to handle these problems but still some miscellanies mistakes made by the customers can’t be avoided, and I think these problems will occurs occasionally and hence it won’t affect more but still by proper monitoring on work will avoid such issues, problems occurred by the customers can’t be avoided so the problems through the employees should be monitored and avoided permanently.


The questionnaire was created for a survey with the employees of the 99pence stores and the 99pence store customers to ensure their (customers) views and employee’s view. And ill discuss the each and every questions of the survey conducted with the 25 staffs and 30 customers on 99p store.

What’s your opinion on launching the online business or online sales for the 99pence stores ltd?

This question is for the both staffs and employees of 99pence store. First the 60% staffs suggested starting online sales for the store and 40% doesn’t wish to start the online business and they think it won’t be successful for such budget shop. Whereas the customer most of them were suggested to go for online sales for 99pence store, this is more important finding in this research because from the customers point of view the online shopping demands a lot it seems and hence 90% of customers wants to go for the online sales. Here the result findings were represented below in the graph,

Launching online sales for 99p stores, will it be successful or not.

Many employees at 99p store stated that the online sales will became successful and majority of 65% of staff stated that it will be successful and rest of the 35% stated that it would be average or non successful. In the customer point of view majority of 50% of the customer says it would be successful and 20% of customer says no idea and the balance 30% of customer says it would be average.

If they launch the online sales at 99p store then what do you think does it affect the direct store sales?

On this question majority of 60% employees stated that it won’t affect direct sales because they thought they got some reputed customer for their direct store purchase. The balance 40% of the employee stated it will affect the direct store sales and they says people will feel more comfortable and relaxed on doing online shopping from home.

From the customer point of view I didn’t receive proper feedback from this question and only few of about 10% has reported it won’t affect direct store sales.

What do you prefer online shopping or direct store shopping?

This question is uniquely designed for customer and most of the customer prefer online sales and they says that like it is like less time consuming process. Customer reviewed that the product information and availability should be detailed online. The most important thing is most of the customer is wishes to get their product delivered to their home at any cost rather then carrying it from the store. Hence majority of 80% of people would like to online shopping and only 20% had preferred to do direct store shopping.

In this part I have gathered some useful information from primary research on conducting interview with the 99p store management and I have conducted short survey to identify the view of both employees and customers on launching online sales at 99p store. From the above made research the final finding is to launch online sales at the 99p store. Majority of the customers, employees and management people have preferred for online sales as well. There is some negative feedback from the customers and employees from 99p store but it doesn’t look like serious question to think. Some of the customer stated that this kind of budget shop can’t be successful in online sales, and hence overall from this research would prefer 99p store to online business. So in the next chapter ill explain the recommend strategies and final conclusion on this project.

Justifications of the interview

Question 1: The main reason for asking this question is launching an online business will cost more for the company and I want their opinion and want to know whether they can make it successful or not.

Question 2: I want to the manager’s opinion on the general online sales in UK; everybody knows that the online shopping is a successful and convenient way of shopping and I want to get the managers view about this.

Question 3: In UK generally most of the retailers are charging for the product home delivery by the customers purchase which is depends on the amount of purchase and I don’t have clear idea of charging for the delivery or doing it for free.

Question 4: The company need to set an IT team for sure in order to develop a website and online business through it so I want to know whether they are going to do it internally or they are going to approach any other IT firms.

Question 5: I want to know the managers opinion about developing online business will cost more in all the ways, is this cost going to get a brand name for the company

Question 6: I personnel though that the online shopping will affect the direct store sale and that what I found in the magazine references. And I want to know manager’s opinion on this.

Question 7: advertisement is the only available tool to give the companies information to the customers. And what is the best possible way to do it.

Question 8: 99p store is meant for giving sale offers in the direct store sale and what they going to do special in the online sale.

Question 9: there are plenty of payment methods are available in the market now for the online shoppers, and I want to know which types payment method are more suitable for the company.

Question 10: product returns are the commonly known thing among the retailers and their customers. There is a unique return policy was followed by the 99pence store management, so I want to know what kind of return policy will suit the online shopping.

Question 11: as like the previous question here I want to know the managers opinion about the product after sale and support.

Question 12: I personnel thought that delivering the products for the online shoppers from the 99p store’s stock room or from the ware house whatever is close to the customer’s house. And I want to know managers suggestions on this.

Question13: online shopping is purely depending up on the customers wish and even they pop into the store and they can do their purchase and I want to know managers view on it.

Question 14: wrong payment transaction will cost the company and I don’t have any clear idea to sort this issue and that’s the reason for asking this question to my manager.

Review on managers feedback

On the first question both the store and the assistant managers have said a similar reply that the launching the online business doesn’t require any brand name or it’s not only for the giant retailers, and both mentioned that the 99p can start a online business and it will be successful since online shopping is successful in UK.

On the second question I asked something similar to the first one and manager’s replied pretty much common here as well that the UK retailers have faced success in the online shopping and that they expect as well. Store manager’s wishes not only to launch the online business he wants to apply strategic ideas with it. And the assistant manager wants to make clear forecasting in this before starting the online sales for the company and he wish that it would be great investment for the company.

On the third question both the managers suggested to charge for the home delivery from the manager’s point of view it seems to be charging is the better option. Manager’s said that the UK customers will accept it as well and this won’t create any serious problem on the sales. So hence the charging would be the best suggested option.

On the fourth question both store and assistant managers says that the company should set a IT for sure and it should be inside the company, assistant managers wishes to recruit some talented expatriates from foreign countries like India for instance where they can get highly skilled web designers and graphic designers for reasonable salary.

On the fifth question store managers and assistant manager replied in different ways store manager wants to take risk in order to get success, he says invest more and expects more on it but mean while assistant manager says that it purely depends companies chairmen’s wish and he dint commented any good feedback on this question and he finally says launching online business will bring better name to the company.

On the sixth question both the managers says that it won’t affect each other, because they says that both of the sales are in the different platform and one on one will boost the company’s profit and it won’t affect each other.

On the seventh question store managers preferred the online, newspapers, and public holding whereas the assistant manager says it a online business it should be mainly focused on the online advert and he prefer other options as well.

On the eight questions regarding the product sale offers store manager want to stick to the same policies what they follow in the store and he says this won’t confuse the customers. But the assistant manager wants the company to adapt the policies which was practiced by the other retailers in e- sales. On relating this question both the mangers have different opinion and best option is to follow the store manager’s suggestion because if the company different policies in the direct store and online sale it will confuse the customers and it will lead to some problems.

On the ninth question in the payment method both the managers says the same statement that the usual thing should be practiced and they wish to alert the security level very high in order to avoid fraud involvement.

On the tenth question is about the return policies and both the managers’ wants to follow the same policies and procedures as followed in the store and in the eleventh question is about the product after sales and support and both the manager’s reply was to handle it in the proper way to sustain the reputed customers and they want to use the online resources like e-mail to have communicate with the customers.

On the twelfth question both the manager’s prefer to have separate ware house for the online sales because the store stock is limited it seems and it won’t be sufficient for the store sales itself and they want the separate ware in order to make better sales.

On the thirteenth question store managers says we can expect customers and the assistant managers says we can’t predict the customers and at the end both the manager’s says that it depends up on the customers situation and demands.

On the fourteenth question store manager says that the wrong transaction is happens occasionally and it not intentionally by the staffs and the customers so only way to avoid it is to having clear focus on it and in other hand the assistant manager says that definitely it’s going to cost the company he clearly says that the company should look after it and miscellanies thing can happen and we can’t avoid it.

From this comparison I have gathered some similar information from the managers of the 99p store in the next chapter I m going to discuss more about all the collected information.

Justification for the survey

Before launching the online sales for the 99p store it is necessary to know the customers and employees view on it so I conducted a survey with the employees and customers of the 99p store to get the general opinion about launching the online sale or shopping for this company and I asked them about again will it be successful or not, another important thing I asked them is this online shopping affects the direct store sales because customers are the one going to do the shopping and by asking this question we can have an idea how it going to be in the future. And the finally I asked them about the choice of shopping direct store or online shopping by asking this question a clear idea can be attained whether to launch the online business for 99p.

Data analysis

The potential of online sales in 99p store as got more possible chances. From the chapter one we come to know about the online sales, online successes and online shopping in UK. Online sales in been a success full strategy for most of the companies in UK like Tesco, ASDA, Sainsbury, Iceland, dominos, pizza hut, next, M & S and many more. But 99p store is a budget shop and it sales all the items for 99pence so people generally can think online sales for 99p store won’t be as successful like other retails as mentioned above. But up to my idea people will always tends to like the changes. In general most of the company prefers to launch e business, e-business is a collection of business models and processes motivated by Internet technology and focusing on improvement of extended enterprise performance. Internet online shopping has developed a lot since 2000. It still only accounts for just over three percentages of total retail sales but this share is higher in certain sectors. Nearly two-thirds of consumers are internet users and over half of these had used the internet to make purchases. Convenience of use is an important factor in purchasing decisions but the main concerns about the security of payment and delivery arrangements are seen as negative aspects of the internet shopping. The most efficient and accessible way to reach out for clients in all over the UK is through internet selling. More or less, people have absolutely purchased thru online to save lots of time and money, and earn more profit at the same time. Growth of online sales is growing in double digits and the growth of Internet use by the public is still showing dramatic increases. With the current boost in online sales maximizing sales through online is becoming an increasingly attractive choice for any retail company. Through the online sales the company can gain access to millions of potential buyers who, would not have known about them. Imagine a retail company store that sales a no of amount of product; these product consist mostly common product for daily use. This retail company store in a rural area and for the most part is known only to the locals of the area in which it is located. As a result of this company retail store being known to only a small segment of people, the potential sales are limited because of the reason is quite clear: customers who can drive to the physical location of the store within a reasonable amount of time will have the most likelihood of being repeat customers. Anyone does not live within a relatively short distance will most likely take their business elsewhere so how can this particular company retail store maximize potential salesIf this local company store can electronically enable its commerce activities like online sales that effort will result in the greatest probability of maximizing sales and profits for the company. – Paul Sarknas (2005). Paul Sarknas mentioned the activities like online sales will boost the company profit in the interview section store manager and the assistant managers conveyed the same.

Hence by adopting the online sales the organization will achieve as follow, Expands a company’s selling and buying opportunities to national market with minimal capital outlay. A company can quickly locate more customers. Shortens or even eliminates marketing distribution channels, making product cheaper and vendors profit higher. The online sales and e business generally helps some small or medium companies against large companies and it enables a very specialized niche market. – Rita Esen (2007). As Rita Esen mentioned that there is wide opportunity of expanding this business even the interview section in question no.6 asst. manager agreed that there is a possibility of expanding this business.

The online shopping is more beneficial to the customers more than the company, as it frequently provides less expensive products by following consumers to conduct quick online search and comparisons. It gives more choice to customer in selecting product and vendors, and it Enables customers to shop or make other transactions 24 hours a day from almost any location.– Efraim Turban, Linda Volonino (2010). From the 99pence store point of view the company has got some potential to launch the online sales for their customers. And I have found many customers during my survey they had telling that they are regular to the store for buying so and so products and they feel it would be better if they get it delivered in their home rather than carrying it from store to home.

The main advantages of adopting the e sales for any retailers islocation is unimportant, Size does not matter, Accepts orders 24 hours a day, More opportunities for CRM, micro-marketing, cross and up selling, Reach a larger number of customers and buyers, the company can easily receive higher disposable income profile then the usual average, the company can saves some money on the wages for the staffs and the other premises costs – Lisa Harris, Charles Dennis(2007) and hence this literally provides better job opportunity in the wide range and if we compare it with the survey findings most of the employees are willing to contribute more work in order to earn more and even its my personnel thought as well as a staff of 99p store.

On by seeing the collected information one thing come to mind is both the employees (managers and staffs of 99pence store) and the customers wish launch the online business for the company if we look back to the interview questions 1,2 and 6 then if we compare it with the last survey question which clearly show high level percentage in preferring the online shopping or online sales of the company.


As I conclude in this dissertation I have researched about the e sales potentials at the 99p store and I wise the company to do it. From my research in this project I have gathered information which says that the company has potential to undergo to this business. All the gathered information’s are found from in two different Ares mainly through the primary research and the secondary research. After conducting a primary research by conducting interviews with 99p store management and I also conducted a survey with the staffs of 99p store and their customers as well, and then I had made some secondary research as well which was really useful for me to develop the literature review and later it was useful in the data analysis as well, the secondary research was used as a supportive tool in this dissertation along with the primary research. There are some positive and negative feedback was obtained after conducting the interviews and surveys and I’m going to conclude them here below, as from my findings the company could prefer the online sales and I don’t want the company to go only for the online sales it should have both the store sales and online internet sales as well. Because I fell it would make more comfortable for the customers. And even from my findings some customers have mentioned some useful points which I haven’t guessed, that the online sales can be a supportive thing for the direct store sales because the customers can look for their items and products availability and then can shop in the store while during their journey to work or etc.., so from this above mentioned feedback I was really got the confident that the people the customers are aware of the online sales and shopping and they can point out the advantages which they have practiced already in their life and hence his feedback shows that the online shopping for the customers and online sales for the company will definitely benefits both the customers and the company.The frequently raised question on this dissertation is, the 99pence store is the budget high street retailer in UK, does the online sales is suitable for them hence the cost of launching the online sales requires lots of IT and warehouse resources, but after conducting a interview with the management people in the 99pence store I have got a feedback that the company can easily launch the online sales in future and sources say that they already have a IT technical team for handling their current website (, So for the company it easy to start the online sales and it will make the company a new brand image and hence company can attain the profitable success and online sales will be more supportive for the direct store sales as well. so the 99pence store is the budget retailer and it doesn’t mean they can’t start a online sales for their products, they have the potential to do it, out of my research I have found both the company and customers have the ability shop and sale through internet and customers are more willing to do online internet shopping due to their convenience and hence the company can adopt this internet sales and they have the rite potential to do it.

Recommended strategies:

As I recommend the best possible strategies for the 99pence store on by starting online sales for their business,

1)Initially the company need to arrange an IT resource for developing and running the website for the online sales and I would recommend them to get web designers , developers, and programmers for it.

2)The company needs to forecast and they need to do market research on e retailing before launching this project.

3)The proper updating of the website should be monitored accurately and it should be in the current market level, because in general the people tends like changes and they won’t prefer the older versions

4)Company needs to concentrate on the adverts of this project through online, news papers, high-street banners and holding if they prefer to launch the online sales on their company.

5)The company should decide the cheapest and best possible delivery charges so that it will make customers to go for online shopping easily.

6)The product range and the details should be updated properly in the company’s website should that it will easier for the customers to select their required things to shop.

7)A wide range of product display will tempt the customer to buy one in both store and online sales.

8)After launching they need to concentrate on the after sales and services to their customers and hence it will make them more repeated customers and it will make better opinion of the company to the public and they can feel a secured and comfortable shopping.

9)Product availability on the online should be more comparatively to the store and it should help the company by overall sales in both the internet sales.

10) If the company prefers to launch these online sales they should concentrate on the payment methods, because even in this current modern day technology people still have some fear on making the online payment because their whole bank details will be in the process and it has got some risk factors in it. The company should prefer the security system to monitor for the fraud interference and they can also add some secure payment option like adding PayPal payment method to their online sales. Then the customers will be feels free to shop online.

Limitations of the research:

The following limitation causes and effects were experienced while conducting this dissertation,

1)Short time period was the biggest hurdle to complete such a bigger topic.

2)A very limited research has been done on the chosen topic and this limited the ability of theoretical materials.

3)The interview conducted through the management was not done as I planned, because I had interview with the store manager and assist manager of the 99p store Edgware and I can’t able to take interview with the line managers as I planned.

4)There is no response from the IT team of 99p store and hence I haven’t get information from their side.

Further research

In further this research can be continue as “impact of e-commerce in the UK e-retailers”, this topic is about the how important is the e-commence in all the e-retailers in UK. And I hope it would give in-depth information about the technology.


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