Study of "Snapdeal & Infibeam"

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Group 6 Retail Analytics

Presented By:Amarjeet SinghAnkush RoyAshitha VSKoushik RakshitMasarrat YasmeenRoma Agrawal

&

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About SnapdealBusiness ModelBusiness ResultsHow Snapdeal worksSpecial FeaturesCustomer SegmentationPromotion & Social Media Campaign

Agenda

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Starting off in February 2010 with 20 employees and currently boasting of around 2 croresregistered users

It offers assortment of 4+ million products across diverse categories from over 50,000 sellers shipping to 4000 cities and towns in India

It offers upto 90% discounts on dining, beauty, health services, travel and much more

Within 14 months of its inception, they had 70% of market share in deals space

Source: Wikipedia

About Snapdeal

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Jan 2015: smartprix.com

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It was started as daily deal platform, but later expanded into product retailing across various categories.

They are basically a middle – on one side there is supply of wholesalers, distributors, importers, retailers, manufacturers, dealers, etc who have stuff they want to sell, but they do not have enough reach through offline media to do that – hence, they use online media. On the other side they have many customer’s demand.

Business Model – “Market Place”

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According to the CEO, an inventory based online store is becoming obsolete in India because of the poor supply network and the high cost of holding inventory.

Indians do not like paying upfront before getting the product/service. Instead of taking the full amount upfront, Snapdeal only takes its revenue share from the customer.

Business Model – “Market Place” Contd…

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Business Results

2012-13:Revenue of about Rs 600 crore (US$94 million)

(15-20% is coming from m-commerce)

2013-14:CEO is predicting revenue will cross 2000 crore (US$310 million)

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Snapdeal to open logistics platform Safe ship to rival

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Snapdeal is flush with funds, having raised $627 million (about Rs 3,845 crore at the then exchange rate) from Japanese internet, media and telecom conglomerate SoftBank in October.

Snapdeal remains the only big e-tailer in India that does not have a captive delivery arm and relies completely on third-party logistics

Snapdeal to spend Rs 350 crore on supply chain logistics in FY’15

Snapdeal shortens delivery time, sets up 40 fulfilment centres

Snapdeal to pick up products on Sundays too

Snapdeal for single-factor authentication for low value deals

Supply Chain & Logistics Contd…

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Step 1: Subscribe• Subscribe with Snapdeal to get daily deal alert on your mobile number and e-

mail

Step 2: Buy• To buy any deal, click on “Buy” and make payment by various payment

modes: credit cards, debit cards, net banking etc.

Step 3: Deal Confirmation• Receive your deal voucher on SMS and E-mail

Step 4: Redeem Your Deal• Show your voucher at merchant location and redeem the deal

How Snapdeal Works

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Price search on SMS

Web services available for CRM and ERP integration

Online payment facility

It has Flexible Shipping management

Client Account with return facility

It has multicurrency and Multilingual support

Easy to use payment methods

Offers working coupons and promo codes

Snapdeal Feature

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Segmentation involves grouping consumers based on certain criteria.

Demographic segmentation

Geographicsegmentation

Psychographicsegmentation

Behavioralsegmentation

-Age wise-Gender wise-Income wise

-State wise-Urban Class

-SEC wise -Internet savvy users-who are not afraid of online shopping-who love to get discounts-who want to try new products or services

Customer Segmentation

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To generate the initial awareness, they conducted some strategic marketing initiatives. After that, customer engagement increased rapidly as the service became popular.

It makes extensive use of Google+, Twitter & Facebook for advertising deals. The company's Facebook page has more than 1 million “Like”s.

On its website as well as on Social Media pages, Snapdeal prominently displays the latest deals.

The key to their promotion is the aggressive discounting. Any customer will pause for a second when he sees 80% off next to a product.

Promotion and Social Media Campaign

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One campaign in particular deserves mention. Snapdeal used both television and internet for their “Yam-Dude” campaign. The ads claimed that even Yama, the God of death cannot resist Snapdeal's deals and offers.

Snapdeal partners with Den Networks to launch

TV home shopping channel ‘Den Snapdeal TV

Shop’

Promotion and Social Media Campaign Contd…

http://www.bgr.in/news/snapdeal-partners-with-den-networks-to-launch-tv-home-shopping-channel-den-snapdeal-tv-shop/

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About Infibeam

Business Model

Profitability


Pricing

Supply Chain & Logistics

Promotion & Social Media Campaign

Agenda

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About Infibeam

Source: Wikipedia

Businesses

Infibeam.com : Online Retailing

Buildabazaar : E-Commerce Platform Software

Service

INCEPT : Ticketing Platform Software

INDENT: Music Streaming Platform

ODigMa: Digital Marketing Services

ShipDroid: Logistics Aggregation Platform

Infibeam Pi2: E-book Reader

Picsquare.com : Online Digital Photo printing

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Business Snapshot

Claims to offer 15 million products

Five million monthly visits

Site offers products including books, movies, music, mobile phones, computers, apparel, jewellery, footwear and auto accessories

Average transaction size is around Rs. 1,500 per order

Tier 2 and 3 cities account for more than 50% of our sales

Acquired Picsquare.com and Odigma

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Business Model – “Hybrid”

Infibeam.com, the online retail website of the company

– Sells own inventoried products and facilitates other sellers

Buildabazaar, e-commerce platform to build online stores

– Separate web space or list in infibeam.com

– e-commerce features of product upload, promotions, accounting, analytics, payment gateway, logistics and reporting

– Ported into 20 languages

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Profitability

Break even and marginal profit booked in 2012-2013

– First of its kind and era to achieve this

GMV (gross merchandising value) generated collectively across thousands of merchant presence contributes largely

– Rejects the notion of marketplace but maintains uniqueness of sellers

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Infibeam Logistics: its own logistics arm in major Indian cities.

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• ShipDroid, a logistics aggregation platform was launched in January 2015, to provide uniformity of logistics services to small merchants across all courier partners.

• The platform covers 20,000 pincdes across 600 cities. The platform allows merchants to choose mode of delivery such as surface, rail or air mode and also can opt for delivery commitment SLAs such as express delivery or regular deliver

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Infibeam targeted the community of Internet users who were currently online.

Most Indian online shoppers were in the age group of 18 to 49 years.

Infibeam had almost equal share of orders coming from northern (29 per cent), western cost (30 per cent) and southern (31 per cent) India.

The average time spent on the website, increased by 50 per cent during 2010.

The number of registered users increased the compound annual growth rate (CAGR) by 360 per cent over 2007–11.

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Pricing

Infibeam tried to maintain low prices for its products throughout the year.

Magic Box – One product everyday at a heavily discounted price

Maintain low prices across categories

Lowest possible price throughout year

Regular monitoring of competition’s prices to set target purchase prices

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Pricing Contd…

More discounts, offers during weekends to increase traffic

Use of automated pricing technology - which automatically adjusts prices within specified business rules when a competitor changes their prices on products

Increase margins on tail products

Price discrimination - Identify the sources through which customers come to the website – and price accordingly

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TV commercials

Infibeam contests and offers:

– “Ad-Vent”: where participants could design ads for the website and win awards

– “Magic Box” offer: offers two products every day for lowest prices anywhere, both online and offline

– Hot Deals

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1. ODigMa: Strategy, Digital Marketing and Technical Services to retail sector companies.

2. Built some applications and campaigns on Facebook, WhatsApp and Twitter for clients in India and abroad.

3. This acquisition will broaden Infibeam's own service capabilities in online space, which the company provides through its B2C platform Infibeam.com

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Study of "Snapdeal & Infibeam"

Retail

Transcript of Study of "Snapdeal & Infibeam"