Project on IndiaMart And Its Value"

“A Study Of IndiaMart And Its Value

(Largest Online Business Portal For SMEs Growth)

Submitted in partial fulfillment of the requirements for the award of

The degree of

Master of Business Administration

Submitted to:

Punjab Technical University

Jalandhar

By:

“Kumari Mridu”

“Regd No”

9212400026

Under the guidance of

Prof. Nimbel Vivek, Faculty of IIBS (Bangalore)”

#70, 2nd Main Road, 3rd Cross, Kanaka Nagar, Nagawara,

BANGALORE – 560 032

2009 – 11

IIBS BANGALORE, SUBMITTED TO PUNJAB TECHNICAL UNIVERSITY 2009-11

DECLARATION

I, Kumari Mridu, hereby declare that the work presented herein is genuine work done originally by me and

has not been published or submitted elsewhere for the requirement of a degree programme. Any literature

data or works done by others and cited within this dissertation has been given due acknowledgement and

listed in the reference section.

Kumari Mridu

(Reg. No:-9212400026)


ACKNOWLEDGEMENT

I feel immense pleasure to give the credit of our project work not only to one individual as this work is

integrated effort of all those who concerned with it. I want to owe our thanks to all those individuals who

guided us to move on the track. This report entitled “A study of India Mart And its Value”. We sincerely

express our gratitude and lot of thanks to Prof. Nimbel Vivek (Faculty Guide) for helping us in completing

our project work and making it a great success. I would like to express our deep sense of gratitude to staff

members of International institute of Business and studies, who introduced us to the subject and under whose

guidance we are able to complete our project. Last but not least, I would thank all our friends, faculty

members and all respondents who rendered their precious time for contributing their skills and to fill the

questionnaire, which made my project more appealing and attractive.

Kumara Mridu


PREFACE

“Give a man a fish, he will eat it.

Train a man to fish, he will feed his family.”

The above saying highlights the importance of Practical knowledge. Practical training is an important part o

f the theoretical studies. It is of an immense importance in the field of management. It offers the student to

explore the valuable treasure of experience and an exposure to real work culture followed by the industries

and thereby helping the students to bridge gap between the theories explained in the books and their practical

implementations.

Research Project plays an important role in future building of an individual so that he/she can better

understand the real world in which he has to work in future. The theory greatly enhances our knowledge and

provides opportunities to blend theoretical with the practical knowledge.

We have completed the Research Project on “A Study Of India Mart And It’sValue”. We have tried to

cover each and every aspect related to the topic with best of my capability. I hope research would help many people in the future.

Kumari Mridu


LEARNING EXPERIENCE

Summary of learnig during the internship

The main purpose of internship is to gain practical knowledge & apply skill in practical and real environment. It was the time when they have to sharpen our skill abilities & knowledge which would help me in getting final placement.

In Indiamart.com I have got an opportunity to explore my potential.. by preparing extensive research reports I have attend fundamental knowledge of online promotional services. Its scop and its importance in coming years. I have also came across various technicalities related to online promotional services.

Major learning from the project done

On the whole, I feel internet marketing definitely has huge potential and in the coming years it will be of great importance due to growing number of users .however you cannot ignore the fact that traditional marketing is here to stay for time. it would take a while for the new media to sink in and penetrate into the vast sphere of traditional marketing .the need of hour is to educate business owners growing importance of internet marketing.

How the internship and the project will help me during my future career?

Internship and the project will help me in my final placement. Since I will be able to know the in and out of IndiaMart. That will also help Indiamart to plan for future.


EXECUTIVE SUMMARY

India Mart Intermesh Ltd,owner of the Indian online B2B market place and largest business portel in SME’s growth.IndiaMart.com,has plans to raise US$20 million of capital from private equity investors .Reports in the Indian press suggest that PE firms Bessemer Venture partners and Warburg Pincus will be involved in the fund raising. The small and medium enterprises (SME) sector in India plays a vital role in the growth of the country. The SME sector in India accounts for around 95% of the industrial units, almost 40% of the gross industrial value-added in the Indian economy, 34% of exports and provides direct employment to 20 million persons in around 3.6 million registered SME units. The SME sector in India contributes to about 7% of India's gross domestic product (GDP). Here in this study the main objectives were to study understand the attitudes and beliefs of buyers and suppliers towards internet IndiaMart, to compare these beliefs and to see whether demographic variables have something to do with these attitudes and beliefs. Various hypotheses were made and used to test these attitudes and beliefs. T his P r o j e c t is a comprehensive s t u d y of India Mart and its value. It talks about studying of that how India Mart helps to grows any business and value of IndiaMar for SME’s growth.


WORD OF THANKS

I take the opportunity to pay hearty regards to Dr. K.Ramadas(Director) and Dr.Cdr.S.Prakash (Dean) for

lending me their kind support for completion of my project.

I thank all those who directly or indirectly supported me morally, financially and through providing

knowledge by which I could complete my Research.

Last but not the least I am thankful to the management of IndiaMart & especially to my guide Mr. Sajjan

kumar pradhan whose co-operation and guidance was a milestone in completion of my project.


TABLE OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO1 Introduction 06-162 Profile of the company / Organization / System 17-453 Review of Literature 46-504 Research Methodology 51-605 Data Analysis and Interpretation 61-736 Summary of Finding, Conclusion and Recommendations 74-77

Bibliography 78-80

TABLE & GRAPH

TABLE/ GRAPH NO.

CONTENTS PAGE NO.

1 Graph showing Marital status of customer 62

2 Graph showing Result of Awareness of INDIAMART Invest Direct Facilities

63

3 Graph showing Result of satisfaction level among customers with INDIAMART

64

4 Graph showing Result of Frequency of business 655 Graph showing Influence of past profile of company on

customers

66

6 Graph shoing Analysis of the requirement of expertise 66

7 Graph showing Preference for online and online business

67

8 Graph showing Result of customer’s risk taking ability 68

9 Graph showing Result of company services is better than competitors

69

10 Graph showing Result of investment knowledge 70


about share trading

11 Graph showing Result of % of saving for investment in shares

71

12 Graph showing Result showing about customer indulgences in share trading

72

13 Graph showing Figure shows about willingness of customers to open account

73


CHAPTER-1INTRODUCTION


INTRODUCTION

ABOUT THE STUDY

VALUE :

External value

External facing networks include customers or recipients, intermediaries, stakeholders, complementary, open innovation networks and suppliers.

Internal value

Internal value networks focus on key activities, processes and relationships that cut across internal boundaries, such as order fulfillment, innovation, lead processing, or customer support. Value is created through exchange and the relationships between roles. Value networks operate in public agencies, civil society, in the enterprise, institutional settings, and all forms of organization. Value networks advance innovation, wealth, social good and environmental well-being.


http://en.wikipedia.org/wiki/Social_environment

http://en.wikipedia.org/wiki/Social_good

http://en.wikipedia.org/wiki/Wealth

http://en.wikipedia.org/wiki/Organization

http://en.wikipedia.org/wiki/Institutional

http://en.wikipedia.org/wiki/Company

http://en.wikipedia.org/wiki/Civil_society

http://en.wikipedia.org/wiki/Civil_society

http://en.wikipedia.org/wiki/Trade

http://en.wikipedia.org/wiki/Open_innovation

http://en.wikipedia.org/wiki/Open_innovation

http://en.wikipedia.org/wiki/Stakeholder_(corporate)

Tangible valueAll exchanges of goods, services or revenue, including all transactions involving contracts, invoices, return receipt of orders, request for proposals, confirmations and payment are considered to be tangible value. Products or services that generate revenue or are expected as part of a service are also included in the tangible value flow of goods, services, and revenue (2). In government agencies these would be mandated activities. In civil society organizations these would be formal commitments to provide resources or services.

Intangible valueTwo primary subcategories are included in intangible value: knowledge and benefits. Intangible knowledge exchanges include strategic information, planning knowledge, process knowledge, technical know-how, collaborative design and policy development; which support the product and service tangible value network. Intangible benefits are also considered favors that can be offered from one person to another. Examples include offering political or emotional support to someone. Another example of intangible value is when a research organization asks someone to volunteer their time and expertise to a project in exchange for the intangible benefit of prestige by affiliation .

All biological organisms, including humans, function in a self-organizing mode internally and externally. That is, the elements in our bodies—down to individual cells and DNA molecules—work together in order to sustain us. However, there is no central “boss” to control this dynamic activity. Our relationships with other individuals also progress through the same circular free flowing process as we search for outcomes that are best for our well-being. Under the right conditions these social exchanges can be extraordinarily altruistic. Conversely, they can also be quite self-centered and even violent. It all depends on the context of the immediate environment and the people involved.[7]

Business Plans:

What is business? Business is all about buying and selling of share in the share market. Business can be done through online and offlineWhat is online Business?

Online business means trading/investing in equities, derivatives, commodities etc through the Internet. It enables the investor to electronically connect sell stocks, derivatives etc with the other investors. In online trading, one can access a stockbroker’s website through an Internet-enabled PC and can placed orders.

What is offline business?


http://en.wikipedia.org/wiki/Value_network#cite_note-6

In offline trading the customer either goes to the share broker's place and sits before the share trading terminal and asks the dealer to place orders in his account.or rings the share broker, asks the share quotes and other relevant informations, and accordingly places orders over the phone.

BENEFITS OF OFFLINE BUSINESS?

1. safer in comparisons to online share business.

Offline share trading is always considered to be a safer option than online share trading, because of increasing internet fraud.

2. Business can be done without internet connectivity at one’s home. In a country like India where internet connectivity is not available everywhere trading online is not possible for everyone, this is also the reason which enhances the growth of offline trading.

3. Better for new comers:

offline share trading is considered to be better for new investor because in that case he can take a help of RM, but I case of online share trading he himself must have a complete knowledge about share market.

DISADVANTAGES OF OFFLINE BUSINESS

1)Often times the brokers takes time to execute your instruction for selling or buying the stocks that might incur losses.

2) Offline trading brokerage is always higher than that of online brokerage.

3) It is a time consuming process as everything is done offline. it is quite obvious that in case of offline share trading takes more time in comparisons to online share trading,

4) RM may not provide the correct information as required by his client and may also trade without permission of client in order to achieve his brokerage target.


What is E-Business?

Electronic business (e-business) - Conducting business via the Internet.

1. E-tailing, or virtual storefronts on Web sites.

2. Online business-to-business transactions.

3. Electronic data interchange (EDI), the business-to-business exchange of data using compatible software.

4. E-mail, instant messaging, and other Web-enabled communication tools and their use as media for reaching prospective and existing customers.

5. The gathering and use of demographic, product, and other information through Web contacts.

2. Capabilities and Benefits of E-Business

Global Reach. Goods and services can be sold to customers worldwide. Personalization. Companies can customize products and reduce inventory. Interactivity. Customers and suppliers can negotiate prices online. Right-time and integrated marketing. Online retailers provide products when and where

customers want them and promotions can be directed to individual customers. Cost savings. E-business can reduce costs.

Increase a firm’s visibility, promote its offerings, and provide information to interested parties.

Build customer goodwill and assist retailers and other resellers in their marketing efforts.

Disseminate financial information to investors.

Enable prospective employees to apply online for jobs.

Provide e-mail communication.

.

Business-to-Business (B2B)

• Business-to-business e-business (B2B) Electronic business transactions between businesses using the Internet.

• B2B transactions total $2.5 trillion.

• By some estimates, account for 90% of all e-commerce activities.

• Can reduce cost of B2B transactions by almost 25 percent.


Many of the benefits of e-commerce have come with business-to-business transactions. Companies like UPS and the Post Office use their websites to save money and time by doing business online. Companies use a variety of tools to conduct business online with partners, wholesalers and retailers.

Online Shopping and B2C

• Business-to-consumer (B2C)

• E-tailing accounts for 4% of all U.S. sales.

• Growing at a rate of 18%.

• Services like banking and brokerage are key aspects of e-tailing

• Many retailers have electronic storefronts.

• Growth of broadband is aiding e-tailing.


Selling to customers directly over the Internet. There are millions of goods for sale online. There are a variety of retail stores that make the Internet one big cybermall.

Who are online buyers and sellers?

Typical user is young, highly educated, urban or suburban, and affluent.

Demographics are shifting; there is decreasing difference in Internet purchasing habits among groups.

Benefits of B2C E-Business

Lower Prices

• Many products cost less online.

• Internet allows customers to easily compare prices from multiple sellers.

Convenience

• Can order products from around the world anytime, day or night.

• Can register customer information to streamline transactions.

Personalization

• Emphasis on personalized, one-on-one marketing to increase repeat purchases.


Developing Safe Online Payment Systems

• Through encryption, data is encoded for security purposes.

• Many companies use Secure Sockets Layer (SSL) technology to encrypt information and verify senders and receivers.

• An electronic wallet contains credit card and identification information. Customers can avoid retyping purchase information.

E-Business Challenges (privacy)

Privacy is among the top concerns of Internet users.

E-business sites often require passwords and use electronic signatures, an electronic form of identity verification.

Companies can track customers’ shopping and viewing habits through cookies.

Customers usually prefer that companies do not share their personal information. Merchants have responded by joining privacy organizations.

Privacy protections may soon become legally required.

Employees also have concerns that employers are monitoring their Internet behavior.

Companies worry about data theft.

In addition to credit card transactions online, privacy is a growing concern for consumers. Consumers worry

that the information about them will be available to others without their permission. Although online

shopping is growing, consumers are very concerned about providing credit cards and personal information online.


E-Business Challenges (Internet Fraud)

• Internet Crime Complaint Center logs more than 200,000 complaints annually.

• 50% of the complaints referred to law enforcement agencies deal with online auctions.

• Phishing is a growing form of Internet fraud that uses e-mail or pop-up messages to get unsuspecting victims to disclose personal information.

• Vishing, or voice phishing, involves phone calls to credit card customers to obtain personal and banking information.

• Payment fraud is growing.

• E-Business Challenges (poor website design)

• 50% of shopping carts are abandoned before any purchase is made.

• Lack of Information

• Inability to find the information they need

• Feeling overwhelmed by too much information

• Companies that have brick-and-mortar experience often have better success satisfying customers than Internet-only retailers.

• Online sales can compete with business partners such as retailers and distributors causing disputes called channel conflict.

Using the Web’s Communication Function

• Web has four main functions: e-business, entertainment, information, and communication.

• Communication is Web’s most popular function.

• Firms use e-mail to communicate with customers, suppliers, and other partners.

• Online Communities: Internet forums, newsgroups, electronic bulletin boards, and Web communities that appeal to people who share common interests.

• Spam is junk e-mail.


http://www.ic3.gov/

Web Communication Blogs

• Blog - short for Web log, an online journal written by a blogger.

• May incorporate wikis, a Web page that anyone can edit.

• Some incorporate podcasts, video & audio recordings. Feedburner services more than 200,000 podcasts.

• Corporate blogs can help build brand trust.

– Example: Apple’s iLounge builds the iPod brand and gives Apple ideas for product improvement.

Employee blogs may present ethical issues

Blogs have become increasingly popular. People have combined the use of blogs with other technologies like wikis and podcasts. Wikis allow all users to edit the pages while podcasts are audio and video content. Many organizations are beginning to use blogs as a way to build brand loyalty but some blogs can be problematic. Disgruntled employees can destroy a company’s reputation.

Web Communication Web Based Promotion

• Banner Ads – messages placed on frequently visited websites

• Pop-up Ads – ads that appear in separate windows

• Pre-roll Video Ads – advertisements that roll as soon as a page is loaded

• Search marketing – companies pay for top visibility in search results

Some companies, such as ValPak Marketing Systems , offer virtual, searchable coupons.

Global Environment of E-Business

Future growth of many companies is linked to a global strategy that incorporates e-business. U.S. leads world in Internet users but ranks only 5th in Internet penetration.


http://www.valpak.com/

http://www.valpak.com/

http://www.ilounge.com/

E-Bay may dominate most markets, but Chinese company Alibaba.com has 83% of the auction business in China.

Three of four Web pages are written in English. E-business can heighten competition in the global marketplace...

World Internet Statistics

s


http://www.alibaba.com/

Developing a Successful Website

Business websites serve multiple purposes. It is imperative that websites are good. Different websites

serve different purposes; therefore, success may mean different things. Popularity for a news web site

that sells advertising is important, while a website that is selling goods requires a streamlined transaction

process. The planning of the website is the first step. The content that is included on a website

determines whether visitors return to a site. The cost of a site is an important consideration

sCosts include variable costs like development expenses, maintenance, updating and promotion.


Managing a Website

• Click-through rate - percentage of people presented with a Web banner ad who click on it.• Conversion rate - percentage of visitors to a website who make a purchase.


1.Why develop small business?

Unemployment is one of the most important challenges facing the poor people in our country. This has been made worse by the fact that over the last two decades, the formal economy (especially mining) has been shedding jobs and many workers were retrenched. Furthermore, every year hundreds of thousands of new job seekers (the vast majority of them youth) join the army of unemployed.

It is accepted worldwide that the development and growth of small, micro and medium enterprises (SMMEs) can play an important role in turning this situation around. Policies and programmes to support the development of SMMEs are therefore an important part of the democratic government’s programmes to create a better life.

A strategy was outlined in a White paper by the Department of Trade and Industry (the lead department for SMME development) entitled: “A National Strategy for the Development of Small Business in South Africa (May 1995)”. A year later, the National Small Business Act was passed by Parliament, which provided for the institutions to implement this strategy.

2. Description of Small, Micro and Medium Enterprises (SMME’s)

The National Small Business Act divides SMMEs into the following categories:

Category of SMME

Description

Survivalist enterprises

Operates in the informal sector of the economy.Mainly undertaken by unemployed persons.Income generated below the poverty line, providing minimum means to keep the unemployed and their families alive.Little capital invested, not much assets.Not much training.Opportunities for growing the business very small.

Micro enterprises

Between one to five employees, usually the owner and family.Informal - no license, formal business premises, labour legislationTurnover below the VAT registration level of R300 000 per year.Basic business skills and trainingPotential to make the transition to a viable formal small business.

Very small enterprise

Part of the formal economy, use technologyLess than 10 paid employeesInclude self-employed artisans (electricians, plumbers) and


professionals.Small enterprise Less than 100 employees

More established than very small enterprises, formal and registered, fixed business premises.Owner managed, but more complex management structure

Medium enterprise

Up to 200 employeesStill mainly owner managed, but decentralised management structure with division of labourOperates from fixed premises with all formal requirements.

Small business can also be divided between established formal SMMEs (mainly white and some Indian ownership) in predominantly urban settings and emerging SMME economy (mainly African and Coloured) situated in townships, informal settlements and rural areas. According to the White paper, by far the largest sector is the survivalist enterprise sector. This means that most people are active in the informal sector where they have little institutional support.

The government’s national small business strategy seeks to address the following common problems faced by SMMEs:

An unfavorable legal environment Lack of access to markets and procurement Lack of access to finance and credit Low skills levels Lack of access to information Shortage of effective supportive institutions

4. Intended outcomes of the small business strategy

The White paper and Act sets out the objectives of our SMME development policy as:

Alleviating poverty, by making it possible for poor people to generate income to meet basic needs; Reducing poverty through employment creation; Redistribution of wealth, income and opportunities; and Contributing to economic growth, by improving innovation and thus competitiveness.

The national small business development strategy also seeks to strengthen cohesion amongst small enterprises and to level the playing field between big and small business.

5. Support for the development and growth of SMME’S

The Act provided the foundation for the establishment of the institutions listed in the table below, and the transformation of others, to support small businesses.


In addition to the listed institutions, there are also NGOs, donors and private sector organisations (e.g. the programme by the Banking Council of SA) who support SMMEs. The Black Economic Empowerment Commission, an initiative of black business, also highlighted the importance of SMME development for broad based black empowerment.

Institution Services Target Centre for Small Business Promotion

This is a Chief directorate in the DTI, responsible for policy and coordination of support programmes for SMMEs. It also mobilises funds and supervises the establishment of new institutions.

Ntsika Enterprise Promotion Agency

Provides non-financial support such as mentoring programmes, business advice, help with government tenders and technology support to small enterprises, through:

Local business service centres (LBSC) Tender Advice Centres (TACs)

Targets survivalist, micro and very small enterprises.Majority of the LBSCs focus on start-up business, targeting unemployed, women and youth.

Khula Provides access to finance through:

Khula Credit Guarantee Scheme – provide guarantee products to banks. Other institutions and NGOs, referred to as Retail Finance Intermediaries (RFIs) which borrow from Khula to make loans to SMMEs Khula-Start: access to micro credit in rural areas

Mainly targets very small, small and medium enterprises, with two small programmes for the survivalist and micro sector.

NAMAC Two key programmes

Manufacturing advisory centres (MACs), providing support for small scale manufacturing businesses. Business Referral and Information Network (BRAIN) – information and a help line.

The MACs are mainly for small and medium, more formal businesses.

BRAIN for the entire spectrum of SMMEs.


Provincial SMME desks

To provide a one-stop information centre to SMMEs and developing enabling government policy to support SMMEs in each province. Activities of the SMME desks include (though not in all provinces):

Keeping data bases of SMMEs in the province Developing SMME orientated procurement and sub-contracting policies for provincial government Targeted support programmes for HDIs, women, contractors, tourism entrepreneurs, small/micro manufacturers, etc

Land Bank Finance agricultural businesses From small to large scale farmers.

Industrial Development Corporation

Supports and funds various industrial development programmes.

Predominantly large scale projects, but some small to medium enterprises. Has a specific BEE mandate.

National Empowerment Corporation

Funded by government, it provides funding for black economic empowerment ventures

Large, but also small and medium enterprises.

6. Promotion of SMME’s by government

The second National Small Business Conference organised by the DTI in 1998 focused on the role of local government in SMME support. Local councils do procurement and sometimes form partnerships with business to deliver services. The Local Economic Development approach encourages local government to also play their role in promoting small businesses. The Department of Provincial and Local Government administers a fund of about R42 million, to which municipalities can apply for their LED projects. Many of the approved projects relate to small business activities.

The promotion of SMMEs has become an objective across government. Many departments have specific strategies in place, for example developing SMMEs in the tourism sector, or developing small and emerging contractors by Housing and Public Works, Land and Agriculture, Arts and Culture and so forth. The promotion of SMMEs is also an important part of the different spatial development initiatives and the Urban Renewal and Rural Development strategies.


As part of the National Skills Development Strategy, the Sector Education and Training Authorities (SETAs) are also supposed to develop programmes that help develop small businesses in their respective sectors.

There are a number of other parastatals which also support small businesses, though mainly at the upper end of the spectrum. These include:

Independent Development Corporation (IDC): tourism development, venture capital, low interest empowerment and emerging entrepreneur schemes. South African Bureau of Standards (SABS): through its missing links programme provide quality assistance and awareness to SMMEs. Centre for Science and Industrial Research (CSIR): product improvement and manufacturing assistance to SMMEs through their National Manufacturing Centre.

The Manufacturing Strategy (2001) of the DTI identified a range of sectors with potential for growth of SMMEs. These included tourism, agro-processing, business services, cultural industries, etc, with sectoral strategies to achieve this objective for each of these sectors.

7. Business management support services

The institutions and organisations mentioned above also provide a wide range of business management support services to entrepreneurs and small enterprises, such as:

Developing business plans Doing market research Managing a small business Legal requirements of small businesses Marketing Business development Advice on government tender processes, etc.

BRAIN, the business referral and information network, established by the DTI provides a national helpline and has a data base of services and organisations in each province which provide these services. Provincial SMME desks also keep data bases of SMME service providers.

8. Access to loans for starting or expanding SMME’S

Lack of access to finances continues to be the major problem faced by people who want to start their own businesses, or to expand their businesses to become more profitable. Commercial banks generally do not regard the majority of people as bankable or creditworthy. An important part of the national small business strategy is therefore to create an enabling environment for entrepreneurs and small businesses to access finances. Although a number of institutions have been set up, we still have a very long way to go.


In the Medium Term Expenditure Framework, government has committed to establish an Apex Fund which will lend directly to micro enterprises, and has voted R10 billion to recapitalise the existing institutions like Khula and Ntsika.

Institutions providing finances to SMMEs National Contractors Finance Corporation

Business Partners (formerly the SBDC) Commercial Banks Community Projects Funds - CPF-SP Development Bank of South Africa Industrial Development Corporation - (IDC) International Tourism Marketing Assistance Scheme - (ITMAS) Khula Credit Guarantee Scheme Khula Micro Credit Outlets Khula Retail Financial Intermediaries (RFIs) Khula Thuso Mentorship Scheme Land Bank Sizanani Scheme Zimele

E Cape Business Finance Promotion Agency (Khula RFI) Community Entrepreneurial and Business Initiative Eastern Cape Development Corporation FNB Momentum Umsobomvu Progress FundMarang Financial Services

Free State Free State Development Corporation Remmogo Business Finance

Gauteng African Contractors Anglo Platinum Corporation Artpac Lending Services Basani Business Development Services FNB Momentum UYF Progress Fund Khethani Business Finance Land Bank Marketing Department http://www.brain.org.za/FINANCING/financingprovgaut.html - landbank#landbankMarang Financial Services Sankofa Financial Services The Nations Trust Tusk Construction Support


KZN FINCA

FNB Momentum UYF Progress Fund Ithala Development Finance Corporation Khethani Business Finance (Khula RFI) KwaZulu-Natal Development Foundation , Financial Services

Limpopo African Contractors Anglo Platinum Corporation Artpac Lending Services Basani Business Development Services FNB Momentum UYF Progress Fund Khethani Business Finance Land Bank Marketing DeparMarang Financial Services

Sankofa Financial ServicesThe Nations TrustTusk Construction Support

Mpumalanga

Beehive Entrepreneurial Development CentreEkukhanyeni Finance Facility (Khula Micro Credit Outlet) Emerging Entrepreneurs Finance Service Centre Marang Financial Services Middleburg Micro Credit Outlet Mpumalanga Economic Empowerment Corporation - (M.E.E.C) Siyakhula Micro Business Finance (Khula Micro Credit Outlet)

Northern Cape

Remmogo Business Finance (Khula RFI)

W Cape FNB Momentum UYF Progress FundKhethani Business Finance (Khula RFI) Landelike Ontwikkelings MaatskapyNations Trust (Khula RFI)

New Business Finance

9. SMME’S established by women

The national small business strategy, since its inception sought to target women. However, women continue to make up the bulk of the survivalist sector of SMMEs and of the poor. During the last decade, a number of organizations and institutions were established by and for women entrepreneurs. These include:


South African Women Entrepreneurs Network (SAWEN) – launched July 2001

SAWEN identifies the origin of women entrepreneurs' problems as:

Gender - despite the fact that women-owned enterprises are contributing an increasing share to national revenue, they are generally perceived to lack the capacity of their male equivalents. Size - Nearly all women-owned enterprises belong to the lower end of the SMME category, being either very small or micro sized companies. Men are predominant in the more lucrative sectors. Approximately 70 percent of informal businesses in South Africa are owned/controlled by women.

SAWEN seeks to affiliate all women enterprise groups, co-operatives, organisations and initiatives in to a national umbrella body that will represent and articulate the aspirations of all women entrepreneurs (potential and existing) that operate within the South African SMME sector, as well as lobby for their support needs. It also seeks to target rural women. Since its launch in 2001, it has established a number of provincial chapters.

Women in Oil and Energy in South Africa (WOESA)- launched March 2002

Facilitates the participation of women in business ventures in the oil, gas and other energy sectors.

Technology for Women in Business (TWIP)

Aimed at enhancing the accessibility of science and technology to women in business, in particular SMME's. It is a national programme under the auspices of the Department of Trade and Industry (DTI). The CSIR, as contracted by DTI, acts as an agent for DTI to implement the TWIB programme.

South African Women in Construction – launched August 1999

Promotion and advancement of women in construction; of education and contribution to the betterment of the construction industry and the enhancement of the entrepreneurial development of women-owned enterprises in construction.

10. The Youth entrepreneurship programme

In 2000 government announced the establishment of the Umsobomvu Youth Fund, out of the proceeds of the demutualisation of Old Mutual and Sanlam. The fund started operating in 2001, with the mandate to facilitate the involvement of young people in economic activities. Umsobomvu implements a youth enterprise programme, providing both financial and non-financial support to youth enterprises.


The youth entrepreneurship programme has three major projects:

Enterprise funding. Micro-finance. Business development services.

An estimated 700 SMMEs and 3 640 micro-enterprises will benefit from these projects over the next three years, and approximately 17 000 jobs are expected to be created.

Enterprise funding

Recently launched FNB-Momentum-UYF Progress Fund, which complements the Franchise Fund, launched in partnership with business partners.

Micro-finance Focus on entry-level investments, and its pilot projects with the Nations Trust and Micro Enterprise Finance are funding micro-enterprises and co-operatives.

Business development services voucher

Helps young entrepreneurs to access quality business support from approved service providers through vouchers, ranging in value from R1 500 to R23 000.

Take it to the People project

Launched recently to create locally based economic opportunities for young people. The project focuses on income-generation and self-employment for young people living in 21 urban and rural areas identified as significant "poverty pockets". The project aims to develop local solutions to unemployment by investigating options for youth development in the form of micro and small businesses and co-operatives. It will work in conjunction with local municipalities and donors.

Contact, information & counselling

Aim to reach more than 730 000 young people over the next three years, offering information and counselling support regarding career development, employment and entrepreneurship through a youth line, advisory centres and an Internet portal. The first 12 of 33 planned advisory centres have already opened in the provinces of Gauteng, KwaZulu-Natal, Limpopo, Northern Cape, North West, and Western Cape.

School to Work Is designed to transfer high-level technical skills and to facilitate work experience for unemployed matric and tertiary graduates. It also aims to introduce black youth into previously inaccessible careers, such as IT and accounting.

Youth Service Focuses on unemployed youth who have no tertiary education, enabling them to acquire the skills, competencies and experience they require to achieve economic independence. This is done through a structured learning programme and accredited through a

EXCHANGE - BUSINESS TRENDS:


INDIAN STOCK MARKETS AND EXCHANGES:There are 23 recognized stock exchanges in India, including the Over the Counter Exchange of India for small and new company and the National Stock Exchange (NSE) that was set up as a model exchange to provide nation-wide services to investors.

SENSEX:SENSEX is not only scientifically designed but also based on globally accepted construction and review methodology. First compiled in 1986, SENSEX is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies. The base year of SENSEX is 1978-79 and the base value is 100. The index is widely reported in both domestic and international markets through print as well as electronic media.The index is calculated on the "Free-float Market Capitalization" methodology. The "Free-float Market Capitalization" methodology of index construction is regarded as an industry best practice globally. All major index providers like NIKKEI. NASDAQ and DOW JONES use the free float methodology.The growth of equity markets in India has been phenomenal in the decade gone by. Right from early nineties the stock market witnessed heightened activity in terms of various bull and bear runs. The SF; NSBX captured all these events in the most judicial manner. One can identify the booms and busts of the Indian stock market through sensex.

BOMBAY STOCK EXCHANGE (BSE): Bombay stock exchange is the oldest stock exchange of India For the premier Stock Exchange that pioneered the stock broking activity- in India, 128 years of experience seems to be a proud milestone. A lot has changed since 1875 when 318 persons became members of what today is called "The Stock Exchange, Mumbai" by paying a princely amount of Ref. Since then, the country's capital markets have passed through both good and bad periods. The journey in the 20th century has not been an easy one. Till the decade of eighties, there was no scale to measure the ups and downs in the Indian stock market. The Stock Exchange, Mumbai (BSE) in 1986 came out with a stock index that subsequently became the barometer of the Indian stock market.


http://www.bseindia.com/index_op.htm

NATIONAL STOCK EXCHANGE (NSE):

The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FEs) lo provide access to investors from all across the country on an equal fooling. Based on the recommendations. NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country.When India's National Stock Exchange (NSE) was started in 1994, few believed it would survive. How could a stock exchange run by a team of untested professionals headed by a former development banker succeed against existing stock exchanges run by third generation, savvy stockbrokers?

FUNCTIONS OF STOCK EXCHANGE

Maintain Active Trading: Shares are traded on the stock exchanges, enabling the investors to buy and sell securities. The prices may vary from transaction to transaction. A continuous trading increases the liquidity or marketability of the shares traded on the stock exchanges.

Fixation of Prices: Price is determined by the transactions that flow from investors demand and the supplier’s preferences. Usually the traded prices are made known to the public. This helps the investors to make the better decision.

Ensures safe and fair dealings: The rules, regulations and bylaws of the Stock Exchanges provide a measure of safety to the investors. Transactions are conducted under competitive conditions enabling the investors to get a fair deal.

Aids in financing the Industry: A continuous market for shares provides a favourable climate for raising capital. The negotiability and transferability of the securities, investors are willing to subscribe to the initial public offering (IPO). This stimulates the capital formation.

Dissemination of Information: Stock Exchanges provide information through their various publications. They publish the share prices traded on their basis along with the volume traded. Directory of Corporate Information is useful for the investor’s assessment regarding the corporate.


Handouts, handbooks and pamphlets provide information regarding the functioning of the Stock Exchanges.

Performance Inducer: The prices of stocks reflect the performance of the traded companies. This makes the corporate more concerned with its public image and tries to maintain good performance.

Self-regulating organization: The Stock Exchanges monitor the integrity of the members, brokers, listed companies and clients. Continuous internal audit safeguards the investors against unfair trade practices. It settles the disputes between member brokers, investors and brokers.

The Securities and Exchange Board of India (SEBI)

The Securities and Exchange Board of India even though established in the year 1988. Received statutory powers only on 30th January 1992. Under the SEBI Act, a wide variety of powers are vested in the hands of SEBI. SEBI has the powers to regulate the business of Stock Exchanges and other security. Registration and regulation of market intermediaries are also carried out by SEBI. It has responsibility to prohibit the fraudulent unfair trade practices and insider dealings. Takeovers are also monitored by the SEBI has the multi pronged duty to promote the healthy growth of the capital market and protect the investors.

Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.

Within organizations, customer satisfaction ratings can have powerful effects. They focus employees on the importance of fulfilling customers’ expectations. Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth marketing, which is both free and highly effective.

In researching satisfaction, firms generally ask customers whether their product or service has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When customers have high expectations and the reality falls short, they will be disappointed and will likely rate their


http://en.wikipedia.org/wiki/Marketing

experience as less than satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction rating than a budget motel—even though its facilities and service would be deemed superior in “absolute” terms

PURPOSE

Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty. Customer satisfaction data are among the most frequently collected indicators of market perceptions. Their principal use is twofold

1. Within organizations, the collection, analysis and dissemination of these data send a message about the importance of tending to customers and ensuring that they have a positive experience with the company’s goods and services

2. Although sales or market share can indicate how well a firm is performing currently, satisfaction is an indicator of how likely it is that the firm’s customers will make further purchases in the future. Much research has focused on the relationship between customer satisfaction and retention. Studies indicate that the ramifications of satisfaction are most strongly realized at the extremes. On a five-point scale, individuals who rate their satisfaction level as “5” are likely to become return customers and might even evangelize for the firm. (A second important metric related to satisfaction is willingness to recommend. This metric is defined as "The percentage of surveyed customers who indicate that they would recommend a brand to friends." When a customer is satisfied with a product, he or she might recommend it to friends, relatives and colleagues. This can be a powerful marketing advantage.) Individuals who rate their satisfaction level as “1,” by contrast, are unlikely to return. Further, they can hurt the firm by making negative comments about it to prospective customers. Willingness to recommend is a key metric relating to customer satisfaction.

customer

A customer (also known as a client, buyer, or purchaser) is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services. However, in certain contexts, the term customer also includes by extension any entity that uses or experiences the services of another. A customer may also be a viewer of the product or service that is being sold despite deciding not to buy them. The general distinction between a customer and a client is that a customer purchases products, whereas a client purchases services.


http://en.wikipedia.org/wiki/Service_(economics)

http://en.wikipedia.org/wiki/Good_(economics)

http://en.wikipedia.org/wiki/Renting

http://en.wikipedia.org/wiki/Purchasing

http://en.wikipedia.org/wiki/Vendor

http://en.wikipedia.org/wiki/Seller

http://en.wikipedia.org/wiki/Distributor_(business)

http://en.wikipedia.org/wiki/Organization

http://en.wikipedia.org/wiki/Product_(business)

The word derives from "custom," meaning "habit"; a customer was someone who frequented a particular shop, who made it a habit to purchase goods of the sort the shop sold there rather than elsewhere, and with whom the shopkeeper had to maintain a relationship to keep his or her "custom," meaning expected purchases in the future.

The slogans "the customer is king" or "the customer is god" or "the customer is always right" indicate the importance of customers to businesses – although the last expression is sometimes used ironically.

However, "customer" also has a more generalized meaning as in customer service and a less commercialized meaning in not-for-profit areas. To avoid unwanted implications in some areas such as government services, community services, and education, the term "customer" is sometimes substituted by words such as "constituent" or "stakeholder". This is done to address concerns that the word "customer" implies a narrowly commercial relationship involving the purchase of products and services. However, some managers in this environment, in which the emphasis is on being helpful to the people one is dealing with rather than on commercial sales, comfortably use the word "customer" to both internal and external customers.

OBSOLETE meaning: In the early 17th century customer was defined as a "common prostitute". This meaning is important for understanding historical literary works. ("I marry her! What, a customer?")Othello, or ("I think thee now a common customer") All's Well that Ends Well. Today the meaning of "customer" has been inverted in this usage.

Types of customer

There are six types of customers.

1. External Customer. These are the people and organizations who have a need for your product or service. They purchase your stuff in exchange for money. They have a budget and will give you some of it in exchange for a solution that meets their needs and expectations. Given that, I affectionately refer to external customers as ones with thebag of money. They have the financial autonomy to decide where and how they will spend their budget—the bag of money. The question is, who gets the bag of money, you or your competitor? Who has earned the confidence and trust of the customer? You and your competitor are vying for a piece of their budget—the best solution wins. Know this: Customers vote with their money and complain with their feet.

2. Allies. These are the users of your product or service, not the ultimate decision maker. These customers usually don't have a bag of money but they play a vital role in your success. They do not make the final decision but they may have tremendous impact on the outcome. They are often closely connected to the bag of money and positioning them as an ally to your cause is critical for your success. You must earn their trust and confidence if you expect them to support you at the bag of money level. A caution about allies: They have veto power, the authority to say no. They can give you a hundred no's but can't give you the one yes needed to close the deal. I have seen countless selling hours wasted on allies with the hope of closing the deal. However, allies can be a tremendous wealth of information. Pick their brains and learn how you can differentiate yourself from the competition. Customers buy differences, not similarities. It can sometimes be difficult to ascertain


http://en.wikipedia.org/wiki/Stakeholder_(corporate)

http://en.wikipedia.org/wiki/Customer_service

who the bag of money is and who the allies are. Ask questions early in the call to determine who's who in the zoo. Shrink your sales cycle by understanding the players within your accounts. Simply ask them who else may be involved with decisions.

3. Internal Customer. These are fellow employees and managers within your place of business. They support you and make you look good to your external customers. Appreciate them and treat them with respect. Unfortunately, they are often the victims of your blamefest: "The jerks in production screwed up again ..." or "The idiots in shipping messed up . . ." or "Management gave me a lousy price . . ." and so it goes. Poor internal relationships can have fatal consequences for your external customers. I recently saw an anonymous quote that supports my point. "We have less to fear from outside competition than from inside conflict, inefficiencies, discourtesy, and bad service." So true. Take ownership for customer concerns. After all, you are an ambassador for your company, so don't abdicate responsibility for late deliveries, poor service, and inadequate support. Customers really don't care whose fault a problem is or how it happened. Customers aren't interested in fixing the blame. They want to fix the problem. It's up to you to quarterback all of the company's resources to resolve their problem.When you work in harmony with your internal customers, external customers become the beneficiary of your internal relationships. In company after company, I see sales working in isolation from other departments. Sales cannot fly solo and expect to service the expectations of external customers. Long-term success means having your entire company and all its resources focus on its customers. Be aware too of your own personal internal customers, such as family, spouse, and parents. View your kids, spouse, or significant other as your personal internal customers. They also deserve respectful treatment.

4. Repeat Customer. They are the jewels of your business. Do the job well the first time and you often get rewarded with another opportunity to serve them. And guess what? They give you more money! You may have heard that it costs up to five times as much to replace a customer as it does to keep one. So, keep them happy. Underpromise and overdeliver.

5. Born-Again Customer. These are previous customers who no longer do business with you. For some reason they have forgotten about you or they are still upset with you. I suggest you dig up their file, give them a call, and settle any outstanding grievance. Put your ego aside and offer restitution to satisfy the customer. Do what it takes to resolve the situation. Make amends. Very frequently they will once again be receptive to doing business with you. They often become loyal customers provided you resolve the problem to their satisfaction. As you work with your customers, you will find the Sequential Model is applicable to all six types. Remember: Pay particular attention to your internal customers.

6. Bag of Wind. You guessed it, these people have little or no impact on the decision. They are often an easy point of entry into an account but they seldom contribute to the sales process. In fact they do more harm than good by creating a false sense of authority. There is nothing worse than wasting valuable selling hours on people who cannot help advance the sale. However, I'm not suggesting to ignore these people but rather exploit their knowledge to deepen your understanding and confidence about the account. They may also provide clarity as to who the allies are and who the bag of money is. Knowing these people can prove to be a huge advantage; knowledge is power.

Customer segmentation


In the snowmobile example, the served market consisted of one segment. But conceivably, the served market could be much broader in scope. For example, the company could decide to serve all industrial customers (large, medium, small) by offering diesel-driven snowmobiles for delivery use. The “broader” served market, however, must be segmented because the market is not homogeneous; that is, it cannot be served by one type of product/service offering. Currently, the United States represents the largest market in the world for most products; it is not a homogeneous market, however. Not all customers want the same thing. Particularly in well-supplied markets, customers generally prefer products or services that are tailored to their needs. Differences can be expressed in terms of product or service features, service levels, quality levels, or something else. In other words, the large market has a variety of submarkets, or segments, that vary substantially. One of the crucial elements of marketing strategy is to choose the segment or segments that are to be served. This, however, is not always easy because different methods for dissecting a market may be employed and deciding which method to use may pose a problem. Virtually all strategists segment their markets. Typically, they use SIC codes, annual purchase volume, age, and income as differentiating variables.

Categories based on these variables, however, may not suffice as far as the development of strategy is concerned. RCA, for example, initially classified potential customers for color television sets according to age, income, and social class. The company soon realized that these segments were not crucial for continued growth because potential buyers were not confined to those groups. Later analysis discovered that there were “innovators” and “followers” in each of the above groups. This finding led the company to tailor its marketing strategy to various segments according to their “innovativeness.” Mass acceptance of color television might have been delayed substantially if RCA had followed a more traditional approach. An American food processor achieved rapid success in the French market after discovering that “modern” Frenchwomen liked processed foods while “traditional” Frenchhousewives looked upon them as a threat. A leading industrial manufacturer discovered that its critical variable was the amount of annual usage per item, not per order or per any other conventional variable. This proved to be critical since heavy users can be expected to be more sensitive to price and may be more aware of and responsive to promotional perspectives. Segmentation aims at increasing the scope of business by closely aligning a product or brand with an identifiable customer group. Take, for example, cigarettes. Thirty years ago, most cigarette smokers chose from among three brands: Camel, Chesterfield, and Lucky Strike. Today more than 160 brands adorn retail shelves. In order to sell more cigarettes, tobacco companies have been dividing the smoking public into relatively tiny sociological groups and then aiming one or more brands at each group. Vantage and Merit, for example, are aimed at young women; Camel and Winston are aimed mostly at rural smokers.

Cigarette marketing success hinges on how effectively a company can design a brand to appeal to a particular type of smoker and then on how well it can reach that smoker with sharply focused packaging, product design, and advertising. What is true of cigarettes applies to many, many products; it applies even to services. Banks, for example, have been vying with one another for important customers by offering innovative services that set each bank apart from its competition. These illustrations underscore not only the significance of segmenting the market but also the importance of carefully choosing segmentation criteria.

segmentation criteria


Segmentation criteria vary depending on the nature of the market. In consumergoods marketing, one may use simple demographic and socioeconomic variables, personality and lifestyle variables, or situation-specific events (such as use intensity, brand loyalty, and attitudes) as the bases of segmentation. In industrial marketing, segmentation is achieved by forming end use segments, product segments, geographic segments, common buying factor segments, and customer size segments. For a detailed account, however, reference may be made to a textbook on marketing management. In addition to these criteria, creative analysts may well identify others. For example, a shipbuilding company dissects its tanker market into large, medium, and small markets; similarly, its cargo ship market is classified into high-, medium-, and low-grade markets. A forklift manufacturer divides its market on the basis of product performance requirements. Many consumer-goods companies, General Foods, Procter & Gamble, and Coca-Cola among them, base their segments on lifestyle analysis. Data for forming customer segments may be analyzed with the use of simple statistical techniques (e.g., averages) or multivariate methods. Conceptually, the following procedure may be adopted to choose a criterion for segmentation:

1. Identify potential customers and the nature of their needs.

2. Segment all customers into groups having

a. Common requirements.

b. The same value system with respect to the importance of these requirements.

3. Determine the theoretically most efficient means of serving each market segment, making sure that the distribution system selected differentiates each segment with respect to cost and price.

4. Adjust this ideal system to the constraints of the real world: existing commitments, legal restrictions, practicality, and so forth.

A market can also be segmented by level of customer service, stage of production, price/performance characteristics, credit arrangements with customers, location of plants, characteristics of manufacturing equipment, channels of distribution, and financial policies. The key is to choose a variable or variables that so divide the market that customers in a segment respond similarly to some aspect of the marketer’s strategy. The variable should be measurable; that is, it should represent an objective value, such as income, rate of consumption, or frequency of buying, not simply a qualitative viewpoint, such as the degree of customer happiness. Also, the variable should create segments that may be accessible through promotion. Even if it is feasible to measure happiness, segments based on the happiness variable cannot be reached by a specific promotional medium. Finally, segments should be substantial in size; that is, they should be sufficiently large to warrant a separate marketing effort. Once segments have been formed, the next strategic issue is deciding which segment should be selected. The selected segment should comply with the following conditions:

1. It should be one in which the maximum differential in competitive strategy can be developed.

2. It must be capable of being isolated so that competitive advantage can be preserved.

3. It must be valid even though imitated.


The success of Volkswagen in the United States in 1960 can be attributed to its fit into a market segment that had two unique characteristics. First, the segment served by VW could not be adequately served by a modification to conventional U.S. cars. Second, U.S. manufacturers’ economies of scale could not be brought to bear to the disadvantage of VW. In contrast, American Motors was equally successful in identifying a special segment to serve with its compact car, the Rambler. The critical difference was that American Motors could not protect that segment from the superior scale of manufacturing volume of the other three U.S. automobile producers. The choice of strategically critical segments is not straightforward. It requires careful evaluation of business strengths as compared with the competition. It also requires analytical marketing research to uncover market segments in which these competitive strengths can be significant. Rarely do market segments conveniently coincide with such obvious categories as religion, age, profession, or family income; or, in the industrial sector, with the size of company. For this reason, market segmentation is emphatically not a job for statisticians.

Rather, it is a task that can be mastered only by the creative strategist. For example, an industrial company found that the key to segmenting customers is by the phase of the purchase decision process that they experienced. Accordingly, three segments were identified: (a) first-time prospects, (b) novices, and (c) sophisticates. These three segments valued different benefits, bought from different channels, and carried varying impressions of providers. A technology-consulting firm, Forrester Research Inc., separates people into ten categories: “fast forwards, techno-strivers, hand-shakers, new age nurturers, digital hopefuls, traditionalists, mouse potatoes, gadget-grabbers, media junkies, and sidelined citizens.” For example, “Fast forwards” own on an average 20 technology products per household. Several of their clients have found this kind of classification useful in identifying segments to serve. Market segmentation has recently undergone several changes. These include: 16

• Increased emphasis on segmentation criteria that represent “softer” data such as attitudes and needs. This is the case in both consumer and business-to-business marketing.

• Increased awareness that the bases of segmentation depend on its purpose. Forexample, the same bank customers could be segmented by account ownershipprofiles, attitudes towards risk-taking, and socioeconomic variables. Each segmentationcould be useful for a different purpose, such as product cross-selling,preparation of advertising messages, and media selection.

• A move towards “letting the data speak for themselves,” that is finding segmentsthrough the detection of patterns in survey or in-house data. So-called “data mining”methods have become much more versatile over the past decade.

• Greater usage of “hybrid” segmentation methods. For example, a beer producermight first segment consumers according to favorite brand. Then, within eachbrand group, consumers could be further segmented according to similarities inattitudes towards beer drinking, occasions where beer is consumed, and so on.

• A closer connection between segmentation methods and new product development.Computer choice models (using information about the attribute trade-offsthat consumers make) can now find the best segments for a given product profileor the best product profile for a given market segment.


• The growing availability of computer models (based on conjoint data) to findoptimal additions to product lines products that best balance the possibility ofcannibalization of current products with competitive draw.

• Research on dynamic product/segment models that consider the possibility ofcompetitive retaliation. Such models examine a company’s vulnerability to competitivereactions over the short term and choose product/segment combinationsthat are most resistant to competitive encroachment.

• The development of pattern-recognition and consumer-clustering methods thatseek segments on the basis of data but also respect managerial constraints onminimal segment size and managerial weightings of selected clustering variables.

• The development of flexible segmentations that permit the manager to loosen aclustering based only on buyer needs (by shifting a small number of people between clusters); the aim might be to increase the predictability of some external criterion, such as household profitability to a company, say, selling mutual funds.

Customer service

Customer service is the provision of service to customers before, during and after a purchase.

According to Turban et al. (2002), “Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation."

Its importance varies by products, industry and customer; defective or broken merchandise can be exchanged, often only with a receipt and within a specified time frame. Retail stores will often have a desk or counter devoted to dealing with returns, exchanges and complaints, or will perform related functions at the point of sale; the perceived success of such interactions being dependent on employees "who can adjust themselves to the personality of the guest,"according to Micah Solomon quoted in Inc. Magazine.

From the point of view of an overall sales process engineering effort, customer service plays an important role in an organization's ability to generate income and revenue. From that perspective, customer service should be included as part of an overall approach to systematic improvement. A customer service experience can change the entire perception a customer has of the organization.

Some have argued that the quality and level of customer service has decreased in recent years, and that this can be attributed to a lack of support or understanding at the executive and middle management levels of a corporation and/or a customer service policy. To address this argument, many organizations have employed a variety of methods to improve their customer satisfaction levels, and other KPIs.


http://en.wikipedia.org/wiki/Sales_process_engineering

http://en.wikipedia.org/wiki/Inc._Magazine

http://en.wikipedia.org/wiki/Customer

http://en.wikipedia.org/wiki/Service_(economics)

CHAPTER 2


PROFILE OF COMPANY


IndiaMART.com is India's largest online B2B marketplace connecting global buyers with suppliers through business directories, online product catalogs, buy-sell

offers, industry specific marketplaces, printed media and trade shows participation.

Founded in 1996, the company has a pan-India presence in over 100 cities. With over 2000

employees located across 47 offices in the country, IndiaMART.com offers an extensive

range of value-added products and services to its 10,00,000 registered members and nearly 5

million global buyers across various industries and verticals.

IndiaMART.com has won numerous awards over the years and has been widely covered by

media such as CNBC, BBC, Business Money, CNN, Business world, Economic Times,

Financial Express, etc for its pioneering role in promoting SME business in the country. Its

existing investors include Intel Capital and Bennett, Coleman & Co. Ltd (Times Group),

India's largest print media group. The Board of Directors at IndiaMART.com comprises of

Mr. Deep Kalra, Founder and CEO of Makemytrip.com and Dr. Nachiket Mor, President,

ICICI Foundation among others.

IndiaMART.com wins the "Red Herring 100 Asia Awards" (8 Dec 2008)

IndiaMART.com bags the "Indira Super Achiever Award" (22 Aug 2008)

IndiaMART.com nominated among the top three at "Emerging India Awards" (1 July 2008)

Bestowed with "Amity Corporate Excellence Award" on the occasion of the

Tenth Business International Horizon INBUSH 2008

IndiaMART nominated for "NIRYAT SHIROMANI PURSKAR" and "GOLD MEDAL" by the Indian Council of Small and Medium Exporters for outstanding performance in the field of Export. (Dec 2007)


IndiaMART asserts to 'Remain a B2B marketplace' - Economic Times (25 Nov 2007)

Recognized by Business Money (UK's leading financial magazine) for IndiaMART's ten years of successful contribution to Indian businesses (Apr 2007)

Indiangiftsportal.com ranked as "Top Indian Shopping Site" - HindustanTimes.com (Feb 2004)

IndiaMART's successful business model featured on CNBC India as analysed by McKinsey

(eFE: 21 July 2001)Declared as India's only profit-making dotcom company by Business World (Cover story: 14 May 2001)

IndiaMART.com listed among Top Indian Websites under Business to business category by ecomready.net

IndiaMART - The Best Indian B2B Portal and Seventh among Top 50 Indian Sites by Bestindiansites.com (21 June 2000)Listed in the Top Indian IT organizations survey by Dataquest (15 Aug 1999)

Nominated amongst the "Top 5 Indian Sites" by Microsoft (1997)


Why B2B Marketplaces?• Largest aggregation of B2B Buyers - more than 30% of these are here• Hassle free way to generate business leads – fully managed• Try for free – Pay for premium• Do it all, right from your desktop

Free Services• Business / Product Catalog – Unlimited Products• Trade Leads• Business Tenders• Enquiry Alerts on SMS / Call from Buyers on Mobile• Videos• Industry, Trade Shows & Business Information Updates

• The first step towards internet marketing & lead generation

• Unlimited Products – photos & videos

• Higher the no. of products, higher the no. of leads

• 200,000 Indian companies having 2 million products, already have their catalog on IndiaMART.com alone

Business / Product Catalog

Trade Leads

• The easiest way to generate 1 lead every week

• Post unlimited product specific offers with picture

• Importance of ‘push-to-top’ – 10 times better results

• More than half-a-million offers live on IndiaMART.com alone


Vision and Mission:

They endeavor to maximize value for our customers by offering thoseefficient and cost- effective solutions for business promotion, processsupport and transaction accomplishment.


BACKGROUND & INCEPTION:

Started in 1996 by Mr. Dinesh Agarwal, IndiaMART.com today isIndia’s

largest B2B Marketplace connecting suppliers & buyers. It isamongst top 5B2B Internet companies in the world. Funded by IntelCapital & BCCL (Times

of India Group), it has over 60% market share(IAMAI Survey). It caters to

over 1 million SMEs who are its registeredmembers and over 5 million buyerssfrom across the globe


ndiaMART.com is India's largest online B2B marketplace for Small & Medium Size Businesses, connecting global buyers with suppliers. The company offers a platform & tools to over 1 million suppliers to generate business leads from over 5 million buyers, who use the platform to find reliable & competitive suppliers. The company has over 4000 employees located across 75 offices in the country. Its existing investors include Intel Capital and Bennett, Coleman & Co. Ltd.

IndiaMART.com offers products that enable small & medium size businesses generate business leads (online catalogs/store-fronts), establish their credibility (third party verified trust profile) and use business information (finance, news, trade shows, tenders) for their business promotion.

IndiaMART.com has won numerous awards over the years, which include coveted Red Herring Award, Emerging India Award, among others. The company has also been widely covered by media for its pioneering role in promoting SME business in the country.

PORTER’S FIVE FORCE MODEL FOE INDIA MART

RIVALRY


SUPPLIER POTHEYRSupplier concentration

Importance of volume to supplierDifferentiation of inputs

Impact of inputs on cost or differentiationSwitching costs of firms in the industry

Presence of substitute inputsThreat of forward integration

Cost relative to total purchases in industry

THREAT OFSUBSTITUTES-Switching costs

-Buyer inclination tosubstitute

-Price-performancetrade-off of substitutes

BUYER POTHEYRBargaining leverage

Buyer informationBrand identity

Price sensitivityThreat of backward integration

Product differentiationBuyer concentration vs. industry

Substitutes availableBuyers' incentives

THREAT OFNEW ENTRANTSBarriers to EntryAbsolute cost advantagesProprietary learning curveAccess to inputsGovernment policyEconomies of scaleCapital requirementsBrand identitySwitching costs

Nature of business

.

SWOT analyisis of indiamart.com Strengths

I. The most potheyr full point in hand of the company is that theyII. provide the customized solution to the customers.

III. The company has excellent distribution system.

IV. The company has built a strong image among the customers.

V. The company experiences excellent Brand loyalty for its Products fromVI. the customers.

VII. The company has made its Product range attractive, which lures the customers, and consequently the products are favorite among the customers.


BUYER POTHEYRBargaining leverage

Buyer informationBrand identity

Price sensitivityThreat of backward integration

Product differentiationBuyer concentration vs. industry

Substitutes availableBuyers' incentives

THREAT OFNEW ENTRANTSBarriers to EntryAbsolute cost advantagesProprietary learning curveAccess to inputsGovernment policyEconomies of scaleCapital requirementsBrand identitySwitching costs

Weaknesses

I. Some products have high prices as compared to the other products.

II. The company pays less attention towards the matured clients

Opportunities

I. India has a vast potential market, which the company can get hold up.

II. The company can prove to be major threats for its competitor’s if it increasesits marketing efforts.

III. IIL should concentrate on the premium segment market.

Threats:

I. The major threat that company faces is from its competitors who are introducing products with lotheyr cost backed by aggressive promotional schemes to attract the customer.

II. The arrival of the MNC is a major serious threat for the company.



CHAPTER 3REVIEW OF LITERATURE

Project on IndiaMart And Its Value"

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Transcript of Project on IndiaMart And Its Value"