eshopping & consumer trends_Snapdeal

FACTORS AFFECTING E-SHOPPING

( E - C O M M E RC E W E BS I T E – S N A P D E A L )

DIGITAL MARKETING – PROJECT I

Submitted ByNeha GhoradEPGDM - 1031415011Shanti Business School – Executive Batch 2014-2016

Consumer One who consumes goods and services available in the market.

Consumer BehaviourThe study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

• Influence parameters: sources of information , Consumer Perception, Learning, Beliefs and Attitude

STAGES BEFORE PURCHASING A PRODUCT OR SERVICE

NEEDINFO

GATHERING/SEARCH

EVALUATION OF ALTERNATIVE

PURCHASE OF

PRODUCT/SERVICE

POST PURCHASE EVALUATIO

N

CURRENT BUYING BEHAVIOUR CHANGE

• Shift in communication platform, Marketers are focusing on-line consumer communities.

• New Platforms for marketing: Social networking sites, blogs, video uploading sites, podcasts, bookmarking sites as well as mobile applications and websites.

• New marketing and advertising strategies : Customer Engagement

• Acc to ASSOCHAM survey report , Broadband services & increasing internet penetration leads to online retail industry to be worth Rs7,000 crore or Rs70bn by 2015.

• Indian online retailing market is growing at an annual rate of 35%• Change in customer trend among the consumers: • Earlier consumers used to use the online media for gathering

information about products and purchase them at traditional retail outlets.

• With the advent of facilities like free shipping, time bound deliveries and cash payments more online shopping is witnessed.

WHEEL OF CONSUMER ANALYSIS

CognitionConsumer EnvironmentConsumer Behaviour

Helps to device a successful marketing strategy

2.UNDERSTANDING INDIAN CONSUMER

• Consumer Spending

7,730 individuals in India, with a combined net worth of $925 billion.

Population & Demographics

2.1 CURRENT ECOMMERCE TRENDS

• Indian consumers are becoming technologically savvy• Internet usage surged 49% in 2015: Ravi Shankar Prasad

(Telecom Minister)

• India’s Internet user base is already the third highest in the world after China and the United States and is growing at nearly 40% a year; was 243 million subscribers in 2014.

• Online sales, however, currently comprise less than 0.5% of India’s retail market.

TECHNOLOGY AND POLITICAL ASPECT

• Technology Insight

• Ease in Business: Increase in FDI

• Make In India• It is a major new national programme of the

Government of India designed to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build best in class manufacturing infrastructure in the country.

• The focus of Make in India programme is on 25 sectors

• Digital India• A government initiative to practice best practises by going

online to a corrupt free India route.• Planning e-governance and initiating the government

processes online submission and tracking.

INTRODUCTION TO ECOMMERCE & DIGITAL MARKETING

E Commerce• E Commerce is ‘Using Electronic Platform for

Business Transactions’. It is also called a ‘Virtual Market Place’.  Online communities and technology are key factors for the growth of E Commerce.

Types of E Commerce business models:• Business to Business: Advertising, Marketing, Sales Order

Management besides Supply chain management and Customer Relationship management 

• Business to Customer:  banking; insurance as well as online shopping, online booking

ADVANTAGES• A world wide web, opens up

the world as a market to the businesses.

• Businesses can reach out to millions of customers in an instant.

• The cost of marketing online across the globe is miniscule when compared to the actual cost of marketing in the conventional ways.

• The cost per transaction works out to be very cheap.

• Promotes paperless offices and processes.

• E Commerce a real time business process.

• E commerce has online trading which has perhaps changed the way stock markets, financial markets and commodity exchanges across the world function.

• It enables the customer to view, read, download and experience the product.

• Customisation of product offering to the customer.

Digital marketing An umbrella term for the targeted, measurable &

interactive marketing of products or services using digital technologies to reach and convert leads into customers and retain them.

The key objective is to promote brands, build preference and increase sales through various digital marketing techniques. It is embodied by an extensive selection of service, product and brand marketing tactics, which mainly use the Internet as a core promotional medium.

ESHOPPING TRENDS

Numbers of Customers going online are huge

Smart Mobile phones increase is key driver in ecommerce revolution

• Tremendous increase in the products purchased online• Online consumer is

diverse

• Online research before shopping is increasing fast

Shift in purchase journey

CHANGE IN ENGAGEMENT PROCESS

ESHOPPING & ITS IMPACT ON CONSUMERS

DETERMINANTS OF CONSUMER BEHAVIOUR IN ECOMMERCE ENVIRONMENT

MIAC & ONLINE CONSUMER BEHAVIOUR FRAMEWORK.

FFF MODEL

COMPANY

• An online marketplace, featuring a wide assortment of products across categories like Mobiles, Electronics, Fashion accessories, Apparel, Sports, Books; and services like Restaurants, Spas & Entertainment amongst others.

• Founded in 2010. 18 million registered members. • Snapdeal features the Best Deals on products and services at unbeatable

prices. • A one-stop-shop website, Snapdeal sells products & services online form

across India.• Operated by Jasper Infotech Private Limited, head office at Delhi, India.• Company website: www.snapdeal.com• Company blog: www.blog.snapdeal.com• Revenue: 168cr (FY 14)

MANAGEMENT TEAM

SnapdealGMV

$3.5bn

5000+ Employee

asset

10 million products

100,000 merchants

5000 cities

SNAPDEAL BUSINESS MODEL

• Snapdeal follows a business to business to consumer model, where businesses can use the platform for free advertising and cut down customer acquisition costs, thereby allowing customers to avail huge discounts.

Vision• To create India's most impactful digital commerce

ecosystem that creates life-changing experiences for buyers and sellers.

• The core of Snapdeal business model is discount coupons that customers use at the time of buying a product from a merchant.

• Snapdeal.com gets these coupons from the merchants and offers them to the customers.

• The revenue from selling these coupons is shared by Snapdeal and the merchants.

• When a customer wishes to make a purchase, he/she must register at the site using an email address and mobile number, a certain amount on the deal purchased is either paid online or on delivery, the rest must be paid to the dealer.

• All terms and conditions as well as the location of stores offering the deal is provided on the website. As soon as a deal is purchased, the customer receives a confirmation via e mail and text message.

• The customer can either print out the coupon or just show the text message at point of purchase to avail the offer.

KEY FEATURES

Discount platform for customers•Consumers can return cuoupons

Advertising platform for merchants•Online simple & secure payment

Discount coupons / promo codes•Online product catalogs, updated regularly

Multi-currency transactions• real-time data

processing system

No inventory costUser-friendly Timely shippingEasy to set-up/monitor operationsBrand variety

Low profit marginMore discounts from unknown brandsComplex coupon managementTraffic generation is toughest

FUNDAMENTAL SUCCESS MATRIX

Keywords

Snapdeal, Online Shopping, Buy books online, online book store,

online shopping India, online shopping website, online

shopping storeOrganic SEO Rank - 6 or 7

SEOLoad Speed - 2.8 sec

Backlinks - 3923User Interface - very Good

Alexa Site Navigation Rating - 4.7/5

Advertising budget 2014-15

50cr

Website RankGoogle Page Rank - 5/10Alexa world Rank - #265Daily Page Views - 4.2mn

Sales Promotion Techniques 

Deals, Offers, Coupons, Promo codes, Discounted vouchers,

referal reward system, Savings Day

VASSame Day Express Delivery, Cash on Delivery, SD Cash, 7 day return policy, 100%

money back guarantee, Order Tracking, 

In House ServicesTrustPay ,Snapdeal

Express,Safeship,SmartFeed,Courier Service

COLLATERAL INTEGRATED MARKETING STRATEGIES

TV • Increase brand recall • Big Boss 8 as 35cr sponsor• Mobile shopping app• Tag line "Dil ki Deal"

Facebook• 2.4mn likes• Fb ads• Product launch as cover photos• Updates on new products and offers• Social Listening/Emotional Connect

Twitter• 54k followers• Avg. 6-7 tweets per day • Mega Campaign • 24*7 customer service channel -• Real time connect• Focus is service & engagement 

Youtube• Exclusive channel• Subscribers 1500• Video views - 3.8mn• Service/Product launch/Brand

Promotion specific video• Lack user Engagement/partcipation

Pinterest• Followers - 750• Teme based 55 boards• Each Pin is redirected to its official

webpage

Google+• Followers - 6,37,000• 2 category posts/day• Less focus on Deals/offer specific

posts• Attractive image ads

CSR ACTIVITY

•  It adopted a village called Shiv Nagar in Uttar Pradesh in 2011, and provided the villagers with clean drinking water. In gratitude the villagers changed the name to Snapdeal.com 

CONCLUSION

• Development of internet connectivity & Speed, firms are able to promote product and services through web site.

• Therefore, detailed product information and improved service attracts more and more people changed their consumer behaviour from the traditional mode to internet shopping.

• Companies have realized that the consumer behaviour transformation is unavoidable trend, and thus change their marketing strategy.

• The internet shopping particularly in business to consumer (B2C) has risen and online shopping become more popular to many people.

• Snapdeal is successful in tapping the consumer needs and focusing on the elimination of challenges faced by the organisations for consumer resistance to online shopping with innovativeness, transparency, security and trust building factors in the form of promotions and technology.

RECOMMENDATIONS AND SUGGESTIONS

• Adopt best practices concerning spamming, adhere to them and communicate this more effectively to the consumer.

• Services like cash on delivery are a major enabler in introducing consumers to online shopping and should have been encouraged further.

• Security features like insurance of goods during delivery are being provided but it is not being communicated effectively, as consumers are largely unaware of such features.

• Controlling and maintaining the standards of services and products on offer is very important.

• Consumers have a lot of choice and are not very loyal, even a single bad experience is enough to turn them away.

• Maintaining a presence in traditional mass media in terms of brand building is very important, judging by the effectiveness of such campaigns in introducing consumers to online shopping, as competition increases, brand will act as a key differentiator.

Thank You!!!