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Study of "Snapdeal & Infibeam"

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Overall working of Snapdeal and Infibeam, Business Model, Supply Chain, Social Media Presence

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Study of "Snapdeal & Infibeam"

  1. 1. 19 March 2015 1 Group 6 Retail Analytics Presented By: Amarjeet Singh Ankush Roy Ashitha VS Koushik Rakshit Masarrat Yasmeen Roma Agrawal &
  2. 2. 19 March 2015 2 Group 6 Retail Analytics
  3. 3. 19 March 2015 3 Group 6 Retail Analytics About Snapdeal Business Model Business Results How Snapdeal works Special Features Customer Segmentation Promotion & Social Media Campaign Agenda
  4. 4. 19 March 2015 4 Group 6 Retail Analytics Starting off in February 2010 with 20 employees and currently boasting of around 2 crores registered 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
  5. 5. 19 March 2015 5 Group 6 Retail Analytics Jan 2015: smartprix.com
  6. 6. 19 March 2015 6 Group 6 Retail Analytics
  7. 7. 19 March 2015 7 Group 6 Retail Analytics 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”
  8. 8. 19 March 2015 8 Group 6 Retail Analytics 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…
  9. 9. 19 March 2015 9 Group 6 Retail Analytics 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)
  10. 10. 19 March 2015 10 Group 6 Retail Analytics Snapdeal to open logistics platform Safe ship to rival
  11. 11. 19 March 2015 11 Group 6 Retail Analytics  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…
  12. 12. 19 March 2015 12 Group 6 Retail Analytics  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
  13. 13. 19 March 2015 13 Group 6 Retail Analytics
  14. 14. 19 March 2015 14 Group 6 Retail Analytics  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
  15. 15. 19 March 2015 15 Group 6 Retail Analytics Segmentation involves grouping consumers based on certain criteria. Demographic segmentation Geographic segmentation Psychographic segmentation Behavioral segmentation -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
  16. 16. 19 March 2015 16 Group 6 Retail Analytics 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
  17. 17. 19 March 2015 17 Group 6 Retail Analytics 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…
  18. 18. 19 March 2015 18 Group 6 Retail Analytics
  19. 19. 19 March 2015 19 Group 6 Retail Analytics About Infibeam Business Model Profitability Customer Segmentation Pricing Supply Chain & Logistics Promotion & Social Media Campaign Agenda
  20. 20. 19 March 2015 20 Group 6 Retail Analytics 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
  21. 21. 19 March 2015 21 Group 6 Retail Analytics 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
  22. 22. 19 March 2015 22 Group 6 Retail Analytics 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
  23. 23. 19 March 2015 23 Group 6 Retail Analytics 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
  24. 24. 19 March 2015 24 Group 6 Retail Analytics Supply Chain & Logistics Infibeam Logistics: its own logistics arm in major Indian cities.
  25. 25. 19 March 2015 25 Group 6 Retail Analytics Supply Chain & Logistics • 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
  26. 26. 19 March 2015 26 Group 6 Retail Analytics Customer Segmentation  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.
  27. 27. 19 March 2015 27 Group 6 Retail Analytics 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
  28. 28. 19 March 2015 28 Group 6 Retail Analytics 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
  29. 29. 19 March 2015 29 Group 6 Retail Analytics Promotion and Social Media Campaign  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
  30. 30. 19 March 2015 30 Group 6 Retail Analytics
  31. 31. 19 March 2015 31 Group 6 Retail Analytics Promotion and Social Media Campaign
  32. 32. 19 March 2015 32 Group 6 Retail Analytics Promotion and Social Media Campaign
  33. 33. 19 March 2015 33 Group 6 Retail Analytics Promotion and Social Media Campaign
  34. 34. 19 March 2015 34 Group 6 Retail Analytics 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
  35. 35. 19 March 2015 35 Group 6 Retail Analytics