Hii! This is gonna be my second brand audit analysis that I write. I’m going to write the result Adorable Projects’ market analysis. Since I have conducted interview with Mr Fajar Nugraha last week, I got some new insights and information that I will deliver little by little through my writings here.
I would like to choose the market analysis since I think it is one of the most basic analysis that we have to know and understand. It helps us to know better about how large is the business, the scope, and the scale. By knowing it, I can plot its position in the market and among its competitors in the next step. I haven’t conduct the competitive analysis since I still need time and effort to gather more information. Currently, I have got the competitors name but I haven’t dig the information deeper.
So, here is my analysis result. Firstly, the segment description which I observe through its marketing channels especially Instagram and Shopee. Adorable Projects’ Instagram which has been established since 1 October 2011 has gained more than 1.1 million followers within this 9 years. I couldn’t calculate the growth of its Instagram since I have no previous data regarding the growth, thus I would like to show its approximation engagement rate from Adorable Projects’ 10 newest post. Those ten newest post was posted within 2 days and the range of likes are from 600–1400 likes per post. (This engagement rate calculation needs more update since I see from previous posts that the like of each feed is still increasing.) Within this 2 days and through 10 post, the average engagement rate is 0.09%.
According to the calculation and engagement rate standard from Sociabuzz, with 1.1 million followers, Adorable Projects engagement rate is categorized still too low since the normal engagement rate for 1.1 followers is 2.59%. However, I see that there is some posts that have very high engagement. One of them is the feed about new product launch in 8 September 2020. With 15,939 likes and 331 comments per 13 September 2020, it gains 1.4% engagement rate.
Next, according to Adorable Projects’ Shopee Mall account, it has 1,1 thousand products and more than 524,9 thousand followers. Since joined in Shopee 4 years ago, I think they have gained so many followers in Shopee and already gained 194,2 thousand feedbacks with rate of 4.9/5.0 star.
Secondly, I’d like to discuss about the second point in market analysis which is current and emerging trends. As we know that marketplace apps and online shop through social media has been growing massively in this late decade, many business use it for the sales channel and also marketing. In the case of Adorable Projects, they mainly use their Instagram as the primary marketing channels and also their sales channel, it is effective according to Mr Fajar statement that said Instagram is the most effective channel to communicate and offer their product since its Instagram has a very large number of followers. Instagram which provides space to share picture is a right place to communicate the product, it also could be the place to interact and get closer to the customers.
Next, the current trend that is emerging in society is the use of marketplace app. There are plenty of marketplaces that emerge lately, it grows in market rapidly and now it’s being a strategic place to market a product. Shopee, Bukalapak, Tokopedia, and so on are some of top board marketplaces in Indonesia. Adorable Projects also utilize it as the marketing channels such as Shopee and Tokopedia. In Tokopedia, Adorable Projects has about 5,2 thousand followers but unfortunately it seems that its Tokopedia’s channels isn’t as famous as its Shopee Mall channel.
Another trends that is emerging is e-commerce web and e-commerce mobile app. This breakthrough is made to ease people who love practicality by just click the app or web without have to search for the shop in marketplaces. Adorable Projects itself already have its own web and according to its owner, they still developing for mobile app of Adorable Projects.
Physical store might be still needed for some business, but as the online shopping has growing well, some business might don’t really need it just like in Adorable Projects’ case. They only have warehouse, but still their business can run and grow well.
Thirdly, I’ll talk about Adorable Projects’ estimated profit. I have interviewed the owner and he said that within past several years, Adorable Projects has a stable sales which they could sell about 150,000–200,000 items in a year. Looking from its catalog, the product with highest price is Rp327,750 and the lowest price is Rp50,000. I might couldn’t calculate precisely the average of all price, but I could estimate averagely that the Adorable Projects price is about Rp200,000 since there are so many products with have price range not really far from it. If the sold items are between 150.000–200.000, then the omzet per year is between Rp30,000,000,000-Rp40,000,000,000. And if the owner take half profit from its sales price, then the estimated profit per year is about Rp15,000,000,000-Rp20,000,000,000. This estimation is based on my interview with Mr Fajar and also my own approximation, so there might be any incorrect data and I hope I could get more information about it.
Lastly, the topic is about trends. Nowadays trend, especially among the teenagers is related into practicality, fashionable, and affordable. Adorable Projects fulfill it all and they also commit to follow the trend to keep their business sustain.
My recommendation regarding the analysis result is Adorable Projects should maximize all channels that they have, such as their Tokopedia or maybe they can enter into new channels. Even though their business already grow big, there is nothing wrong if they could expand the market by using advertisement in social media, or maybe in web or youtube.
There is all from me, I hope it could be understood well and I’m sorry for any mistaken words or data. Hope to hear your feedback and critics to enhance my writing and analysis. Thank you and see you next week!
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