Research Based Marketing Decision- Proposal

Analysis of Myntras App only move

Team:

Ashwini P A 1411216

Chetan Varma 1411219

Niranjan J 1411252

Sakshi 1411261

Thiyagarajan G 1411274

Organizational Objective:

The number of people using mobile internet in India is expected to grow from 203 million currently to 302 million by end of 2015[footnoteRef:1] growing at a growth rate of 32% YOY. It is expensive for e-commerce companies to sustain both a website and a mobile application. In this scenario, Myntra has decided to move to application store only to tap onto this opportunity and to improve on its costs which in turn improves profitability. This move is in line with its organizational objective to win on mobile. We have taken this opportunity to study this bold move and its repercussions on the customers overall. [1: http://www.thehindu.com/sci-tech/technology/internet/india-set-to-become-secondlargest-internet-market-by-decemberend-report/article6614417.ece2http://www.livemint.com/Industry/v6SCQhhl94uriMLM3Qev6N/Flipkart-Myntras-apponly-move-draws-mixed-reactions.html]

We want to do whatever it takes to win on mobile; thats the top priority2

-Mukesh Bansal, Chief Executive at Myntra

Project objective:

Based on the organizational objective, our research objective is to gauge the impact of moving solely to a mobile application on sales, customer base and customer reaction for Myntra. We will also be detailing recommendations to increase effectiveness of the App-only move based on our analysis.

Reason for choosing the project / why it is relevant today:

The greatest challenge for e-commerce companies is to break even and achieve sustainable profits. This can be achieved by increase of customer base and through cost reduction. One of the significant factors contributing to the costs is maintaining both web and mobile platforms.

In 2014, 90% of Myntras traffic and 70% of its sales[footnoteRef:2]3 were derived from the mobile platform. In this context, Myntra has reduced cost by going app-only and leaving the web platform altogether. So, it is pertinent to analyse the customers reaction to this move and the possible impact to the e-commerce industry as a whole. [2: 3http://yourstory.com/2015/05/myntra-app-only-move-mobile/]

Proposed methodology:

1. General Contextual Study: We will list our research objectives based on Myntras organizational objectives. We will do a general contextual study post this by making a list of mutually exclusive and collectively exhaustive set of questions catering to our research objectives. The study will typically involve understanding the following,

a. Understanding who are the customers and their purchase processb. What do they purchase and at what price?c. Frequency of purchase.

d. Experience with the current purchase process.

2. Initial hypothesis: From general contextual study, well develop initial hypothesis.

3. Exploratory research: We will look for secondary data available to support our initial hypothesis. Well check the secondary data (data sources available in the public domain including research reports, and library resources) with respect to our research objective against error/objective/nature/ dependability. We will also conduct pilot survey/ depth interviews to supplement and validate our initial hypothesis.

4. Validate the hypothesis using quantitative research:

A. From the exploratory research well develop final hypothesis.

B. These hypothesis will be tested using quantitative research. This would involvefloating online surveys to test the final hypotheses. Also, acorrelation involving the various factors would be done.C. Based on the outputs, the finalrecommendations regarding to improve effectiveness of Myntras app only move will be made.

Final deliverables:

1. Project proposal

2. Midterm Report

Secondary research on Application only store move; characteristics and trends.

Literature review and marketers perspective

Outline of primary surveys and delineation of data collection methods both qualitative and quantitative

3. End term Report

Insights from primary data

Research outputs and quantitative analysis

Final recommendations and Comment on the sustainability of the move.

Secondary Analysis

Qualitative Surveys

QuantitativeAnalysis

Research Output

General Contextual Study