Kamis, 18 Maret 2010

E-Commerce Proposal


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1.1. Definition of Electronic Commerce

Electronic commerce or e-commerce is the distribution, purchase, sale, marketing of goods and services through electronic systems such as the Internet or television, www, or other computer networks. E-commerce can involve electronic funds transfer, electronic data interchange, automated inventory management systems, and automatic data collection systems. See the information technology industry e-commerce activities as the application and implementation of e-business (e-business) related to commercial transactions, such as electronic funds transfers, SCM (supply chain management), e-marketing (e-marketing) , or online marketing (online marketing), online transaction processing (online transaction processing), electronic data interchange (electronic data interchange / EDI), etc..

E-commerce or e-commerce is part of e-business, in which the scope of e-business more broadly, not just commercial but also include the mix of business partners, customer service, etc. and jobs. Apart from www., network technologies, e-commerce also requires database technology or data base (databases), e-mail or electronic mail (e-mail), and the form of non-computer technology as well as other delivery systems, and tools for e-payment this trade. E-commerce was first introduced in 1994 when first-electronic banner used for promotional and advertising in a web-page (website). According to Forrester Research, electronic commerce generated sales worth U.S. $ 12.2 billion in 2003. According to another report in October 2006, online retail revenues of non-travel in the United States expected to reach the quarter-trillion U.S. dollars in 2011.

1.2. E-Commerce History

The term "electronic commerce" has changed over time. Initially, electronic commerce meant the use of commercial transactions, such as the use of EDI to send commercial documents like purchase orders or invoices electronically.

Then he developed into an activity that have a more precise term "Web commerce" - the purchase of goods and services via the World Wide Web via secure servers (HTTPS), a special server protocol that uses encryption to keep important data customers. At first when the web became famous in the community in 1994, many journalists predicted that e-commerce will become a new economic sector. However, only about four years later as the HTTPS secure protocol enters a mature and widely used. Between 1998 and 2000 many businesses in the U.S. and Europe to develop this trade website.

1.3. E-Commerce Objectives

In many cases, an e-commerce companies can survive not only rely on strength alone product, but with a reliable management team, timely delivery, good service, organizational structure is good business, infrastructure and network security, web site design good, several factors which include :

1. Provide competitive pricing

2. Purchases provide a responsive, fast, and friendly.

3. Providing information goods and services a complete and clear.

4. Provides many bonuses such as coupons, special offers, and discounts.

5. Giving special attention such as the proposed purchase.

6. Providing a sense of community for discussion, input from customers, and others.

7. Facilitate the trading activities

1.4. Business Applications

Some common applications related to e-commerce are :

E-mail and Messaging

Content Management Systems

Documents, spreadsheets, databases

Accounting and financial system

shipping and ordering information

Reporting information from the client and the enterprise

System of domestic and international payments


On-line Shopping


1.5. Benefit

By using this electronic commerce strategy, there’re some benefits will be get such as follows :

  1. Increasing our total revenue by 30% total increased.
  2. Increasing our total room occupancy rate from 60% into 70% average room occupancy.
  3. Increasing our market segment from 4 countries into 6 countries.
  4. Making close relationship between our customer and our staffs
  5. Making easier way for the customer to serve a room
  6. Providing all information about our product effectively efficiently

Those facts is very inspired me to create a new concepts of our hotel marketing. We must make a new innovative plan from old marketing into a new marketing with based on electronic trade and commerce. Our old marketing strategy is still not satisfied us because we’re only got 60% of room occupancy total and about only 50% of them are the double room occupancy. That’s why the board of executive made a new position to manage this marketing strategy professionally. The board of executive choose me as The Electronic Commerce Manager and by making this proposal, I want to create a new strategy for this electronic commerce. Here’s The Proposal of Electronic Commerce Kuta Warrior Hotel.


Table 01. Our Market Segment


Origin / Market segment












Others Asia and Europe


As the graphic above shows that shows Australian is the strongest market. And then Indonesia is still as dominate Asian Market segment. Moreover, Japan still become our market segment because it’s make 15% contribution of our total revenue. Our last market segmentation are others Asia and Europe. Both of them give 5% contribution from our total market segmentation. As the graphic above, we can know that most of our market segmentation is come from outside (foreign country). Outside market segmentation means we must keep a strong relationship with them because most of our guest will be not come directly, however they must reserve their room at first before they come as a guest.

Based on the source from internet, I already know that all of our market segments are the internet users actively. The Internet is now believed to be a powerful tool for marketing the product. There’re quite a lot of people are also unfamiliar Indonesia with credit card payment online. This is different from conditions in the U.S., Europe and Australia, which used to using credit cards online as a means of payment. In Indonesia, there’re about 500.000 internet users approximately increased in a year. It’s not too different with others market segment like Japan, Australia, and also Europe.

Those facts shows us how much important the electronic commerce for electronic marketing. First, we must create a new concept electronic marketing which can increase our total market segmentation. Second, we must conduct a new strategy to keep strong relationship with our market segmentation to ensure they will come back for the others opportunity. And last but not least, by using electronic commerce strategy, we hope we can give easier way for our market segmentation to reserve our room.


After we know about how is necessary the electronic commerce is, then we must create any strategy for using the electronic marketing. The Kuta Warrior is three star hotel in Kuta, and Kuta is one of famous beach destination in the world. It will be not too hard to attract our tourist to come to Kuta. For some strategies, we must look at four and five star hotel electronic marketing strategies.

At any stage, organizations can use their e-marketing capability to achieve the business goals of acquisition, retention, and operational cost savings. At each stage, the organization should track and record responses to inform future campaigns and lay the foundation for the next stage of development.

Table 02. Four Stages of Strategic Development

Hotels by Stages of Strategic Development

Source : ION Organization 2009

Those two stages chart shows us how is strategic commerce happen in today’s organization marketing. Firstly, they use website for electronic commerce strategy. Some big hotels has its own website, directly connected with some chain hotels. For us as three star hotel, it will be wisely if we create the hotels own private website. Secondly, for email publications, it’ll be necessary especially for reservations process. We must make create a newsletter monthly, quarterly, or one-off. This email publications also has the functions as a links back into the our private website. The email publications also can be used as initial gathering of preferences.

Strategy number three is about how we care about the audience specific. There’re some strategic for this stage, several of them is making regularly monthly newsletter. When our guest has know our website, and start to reserve the room, the books engine must be connected directly into the website. For easier bookings, the reserve page must be simple-audience but specific customization. The highest stage of this strategy is automated rules-based / business integration. On this stage, e-newsletter distributed with promotion release. It must be there’s some incentives and sophisticated to use online channel like special rate.


A 360-degree e-mail marketing strategy takes into account every aspect of the marketing process to conceptualize and plan an integrated solution that can best leverage a hotel’s existing client-base and capture new clients through all ongoing and up-selling opportunities. The tactics outlined below are a sampling of some of the more fundamental aspects of successful online marketing efforts.

1. Be prompt

The first rule is to send a newsletter as the confirmation e-mail upon registration. If an e-newsletter is produced monthly, then send the latest edition. Or, if we can only send a confirmation e-mail, be sure to specify the timeframe in which they can expect to receive their first e-newsletter. The user doesn't know if "soon" means the next day or the next month. When a user takes the time to supply contact information on a website, they are actively seeking information and will expect immediate results.

2. Personalize, but not pigeon-hole

Gather basic data about our registered users, such as which destinations and types of activities that interest them the most. If possible, tailor our subsequent communications to this data, but avoid rigid classifications that will pigeonhole customers, or we may miss opportunities.

For example, if Ms. Lee has specifically stated that she is interested in golfing in Sanur, it is likely that this "top-of-mind" preference pertains to her next trip. We then have the unique opportunity to ensure the next communication we send her is relevant, and therefore more likely to appeal to her. Remember, however, that this initial preference does not mean she won't be interested in a spa package at our property in Kuta for her next holiday.

Developing our own interested e-mail list combined with precision marketing will result in much higher sales conversion than purchased lists and unsolicited e-mail. In our experience, precision e-mail marketing can generate an average click-through rate of 10–15%, rising to up to 50% for filtered e-mail lists. Evolving the technology and operational processes to provide customized e-newsletters will take time and investment, but our customers will appreciate it, and their favorable impression of our brand will be maintained or even improved.

3. Be action-oriented

We want our users to act on what we're sending them. Ensure that our website contains the information that these potential guests will need to make their booking decision, such as offer details, terms and conditions, and available hotel amenities and services. Provide support to them if they want to make inquiries or book rooms online. Our booking engine should automatically populate the booking form with the relevant offer details and should display the advertised rate, so that the user knows they are getting what they expect. Many hotel websites make the mistake of requiring the user to re-select the hotel and displaying the rack rate instead of the advertised rate. If we want people to use online channels, the service should be just as good or better than what they would get from calling our telephone reservations line or a travel agent.

4. Explore local opportunities

Remember that e-mail marketing is not limited to monthly e-newsletters to potential guests. Its greatest strength is as an extremely personal and customizable communication channel with all of our existing and potential customers. As a deluxe Asian hotel, out-of-country visitors aren't our only potential target for e-marketing, what about our local client ? It is provide 30% contribution. E-marketing is relatively low-cost to implement, and e-mail lists of our local customers will be easier to obtain than lists of foreigners wishing to visit our hotel.

5. Capitalize on existing assets – Loyalty Programs

Leverage an existing asset, such as an airline partner mileage program or our own loyalty program, as incentives for our customers to switch to online channels. This could be across all hotels or just targeting certain properties or rooms where increased traffic is needed.

Loyalty programs have been extremely successful in creating significant increases in the number of reservations booked and sold directly online. This is because they allow we to target the most valuable and active customers and reward them for transacting with we directly.

Here are some ideas for promotions to move customers online through a loyalty program:

a. Award bonus points or miles

This campaign is for rooms booked online within a finite period of time (e.g. six weeks) and should be communicated three to four weeks prior to the promotion start date so there is time to change people's behaviour and get them to book and to benefit from the promotion. The simpler the message the more effective it will be. Focus on what the reward points will deliver in terms of free accommodation or upgrades rather than the number of points awarded.

b. Reduce redemption requirements for online bookings

There will be times when certain properties have excess capacity. This would be a good time to reduce the miles or points to qualify for a reward stay booked online. We could also tactically reduce the number of points needed for a room upgrade when the situation permits – for example, a member reserving a deluxe room online could enjoy superior status for 50% of the usual points. This is a good switch from other hotels and where travel policies do not allow superior status.

c. Let online users book rooms for cash plus points

Offer members who do not have enough points for a complete redemption the opportunity to book rooms online for cash plus points. This is a good way to drive incremental revenue.

d. Use online channels to acquire new members

Attract new members to our loyalty program by offering an activation bonus for booking online. This can be a good tool for converting an existing database (e.g. food & beverage) or a list we have as a result of an association into program members and rewarding their next stay. For example, anyone joining our loyalty program and booking online within 6 months of joining receives 500, 750 and 1,000 bonus points for standard, deluxe and superior rooms respectively. We could consider increasing this bonus if we need to increase the number of new members.

Another and proven means of getting new members is a "Member Get Member" campaign, which is particularly suited to online execution for ease of management and cost effectiveness. Also referred to as "viral marketing", existing members nominate friends, family and colleagues to join. The member will earn bonus points for each nominee who joins. The referring member then earns a variable bonus based on the room rate whenever the new member books online.


After we see the necessary things about website, it’ll be so important for us to explain all of the guest facilities in our website. As the electronic commerce strategy in the last chapter, our guest must be see our monthly newsletter. On these newsletter, we must describe all of the facilities in our hotel as follows, guestroom, restaurant, bar, room service, and laundry service.

5.1. Guest Rooms (150)

The Kuta Warrior Hotel has 150 rooms in total, that all rooms is standard room. As the three star hotel, we give normal rate about Rp 600.000,00 per night for all of our room. Standard facilities of our guestrooms are :

a. 2 type of view : beach view, and garden view (beach view has special rate)

b. Twin bedded or double bedded

c. Facilities down pillows and duvets

d. Non allergic and orthopedic pillow

e. 100% cotton oversized bath towels

f. Robes and slippers

g. Hairdryer

h. Complimentary premium toilet ries

i. Iron and ironing board

j. Tea/coffee maker

k. In room save

l. Multiline telephone

m. Colour television

n. Shower and bathtub

o. Laundry service

p. Porter service for check in and check out

At the end of this website, we must put the remark that the rate is not include 21% tax and service. It is according into our electronic commerce strategy that we must describe our facilities into the guest by simple but clearly.

5.2. Food and Beverage Services

Coffee Shop

Coffee shop is one of restaurant in our hotel and it’s close to the lobby. It has 50 seats in maximum capacity. Coffee shop always open for breakfast, lunch, and dinner. We’re focused on European and Australian food in this restaurant. It is because we want to provide 70 % of our market segments, especially Australia (50% of our market segment). We’ll describe this restaurant in the website and the reservation link directly into the monthly newsletter.

Four Seasons Resort Bali at Jimbaran Bay - Dining : Taman Wantilan Perched 30 metres (100 feet) above the shoreline, Taman Wantilan's open-sided pavilion design features a two-tiered roof and is modelled after a traditional Balinese wantilan, or village meeting place.

For electronic commerce strategy, we must explain all of menu that we offered to the guest. (See electronic commerce strategy)


Caesar salad Rp 17.000

Mixed green salad Rp 17.000

Parma Ham and cantaloupe Melon Rp.14.000

Garvlax Rp.27.000


Tomato Soup Rp.20.000

Seafood Choweder Rp.17.000

Crab and Corn Soup Rp.27.000


Work fried Bean Curd Rp.18.000

Bread Chicken Breast Rp.17.000

Pan-fried Red Fillet Rp.19.000


King prawn Rp.28.000

Seafood Skewer Rp.19.000

Fish of the day Rp. 19.000

Australian Sirloin Steak Rp. 28.000 (market segments)

Australian tenderloin Steak 200 gram Rp.18.000 (market segments)

Australian Lamb Chops Rp.18.000 (market segments)

Roasted Chicken Breast Rp. 33.000

Bacon-Wrapped Pork Tenderloin Skewers Rp.33.000


Layerd carmel, walnut and pumpkin cake Rp.75.000

Tropical fruit Rp.69.000

Cheese cake Rp.75.000

Mango and pasiion, frut crème brulle Rp.75.000

Ice cream ir sorbet by the scoop Rp.31.000

Indonesian Food Restaurant

Four Seasons Resort Bali at Jimbaran Bay - Dining The mood at PJ's is always upbeat and casual.The other restaurant is Indonesian Food Restaurant and it has beach view. It has 30 seats in maximum capacity. This restaurant always open for lunch, and dinner. This restaurant is for providing 30 % of our market segments (Indonesia). That’s why we offer Indonesian food focused in this restaurant. However, we also offer another Asian food for this restaurant. Some of them are halal food. We’ll describe this restaurant in the website and the reservation link directly into the monthly newsletter.

For electronic commerce strategy, we must explain all of menu that we offered to the guest. (See electronic commerce strategy)


Gado-gado Rp 10.000

Satay and ketupat Rp 10.000

Pecel Bali Rp 15.000


Soto Ayam Rp. 28.000

Soup Buntut Rp.18.000

Nasi goreng Rp.28.000

Mie kuah Rp.28.000

Mie goreng Rp.25.000

Phad thai Rp.43.000

Tom ka gai Rp.45.000

Rending sapi Rp.35.000

Kare Rp.41.000

Ikan gurame Rp.37.000

Szechewan Rp.48.000


Rujak Cingur Rp 20.000

Sup buah Rp 17.000

Es buah Rp 15.000

Es campur Rp 15.000

Hotel Bar

The third food and beverage outlet of our hotel is bar. We put the bar in two of our restaurant. We provide some beverages on this bar. Because of our market segments come from Australia and Indonesia, so we put some halal and alcoholic beverages on this bar. We also will put it on our website design and put it as a link.


GORDON Rp 50.000




MALIBU Rp 45.000


SMIRNOFF Rp 40.000


CIROC Rp 48.000


IRISH Rp 20.000

ITALIAN Rp 30.000


MEXICAN Rp 35.000









LARGE EVIAN Rp. 15.000


AQUA Rp. 5.000


COKE Rp 10.000

SPRITE Rp 8.000



Room Service

For the guest which want to get their meals in the rooms, we also provide room service. Most of these menu comes from Indonesian Food Restaurant and Coffee shop. Room service is available 24 hours for our guest.

At the end of this website, we must put the remark that the rate is not include 21% tax and service. It is according into our electronic commerce strategy that we must describe our facilities into the guest by simple but clearly.

5.3. Laundry Service

Last but not least, we also provide laundry service for our guest. This kind of service must be explained in our private website to attract our guest to use this facilities.


Implementation of Online marketing strategy (e-marketing) the right will help be expand our hotel's business market, and the website our company will have added value because it can support our company's business development.

Homepage is a means of promotion in the world of cyberspace or the internet. The development of cyberspace today's world so fast. Until now, Internet users in Indonesia have amounted to approximately 500,000 Internet users. That amount will increase with increasing amount of people will understand the benefits of the Internet, both for the purpose of information, entertainment or for business purposes, especially in the face the competition in a free market economy later. The condition is a potential new segment for the company to expand its business market share. After make a calculation, we will prepare about Rp 20.000.000,00 for making a homepage for this electronic commerce completely.

In today’s global industry, there’re some problem facing homepage electronic commerce. A lot of homepage, some of them, hotel’s homepage are lonely. Most of them are not recognized perfectly.The success of a site depends on many factors.

Firstly is design of the homepage. A homepage / website should look attractive, but in accordance with the building purpose of the website. Image positioning, navigation is easy and not confusing, as well as a clear material, but not boring. Besides the speed factor also access the website, this is what should really be noted. If a homepage / website have access to the old rate, then it is not impossible, the visitors will going out soon, but otherwise if its access speed, the visitor will feel at home, especially if supported by an attractive site appearance and not boring.

Second is Content. Content of a site must also be able to bring netter to enjoy it. Give the things that can create opportunities netter for a little pro-active, provide facilities, games, forums, and surveys, or anything else that is more formal, such as feedback, aspirations, or contact netter, so netter feel I have a place on the site . Give a little attention with a speech or a newsletter, through mailing lists, etc..

Last but not least is e-Marketing. Online promotion is one of the main key to the success of a homepage / website. Tricks and strategies that fit in conducting e-marketing to a homepage / website determines whether or not a lot of visitors, and the existence of a website for the future.


After discussed with all management, we can conclude that we must change our marketing strategy from old marketing into electronic marketing especially in electronic commerce. For this strategy, we must make an integrated management and operational module. We built our homepage with url : www.kutawarriorhotel.com. For our personal mail, we provide it by using this email address : reservation@kutawarriorhotel.com.



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