MARKETING PLAN OF MYNTRA.COM

2012SUNITARegistration No. PGP20101304, IILM Institute for Higher Education, Lodhi Road, New Delhi.9/10/2012

MARKETING PLAN OF MYNTRA.COM

EXECUTIVE SUMMARY

For this report I have taken up an e-mall named Myntra wherein they provide premium fashion and lifestyle brands with an exceptional levels of services unseen and unheard in India. The aim of Myntra is to push the fashion quotient even further, highlight myntra as a unique style and personality maker and provide quality standards and growth in middle and upper strata of society.The demographics are majorly towards people who are from group of 16-40 years of age, as they are the most roving mass of individuals in terms of fashion and lifestyle activities and also they are highly tech savvy and are more comfortable to computers. Most of the sales are expected to come from the people of age group 15-35 as this is the target group having a great amount of disposable income.At Myntra we are inclined to provide our customers with an effective and comprehensive user interface and communicate the unique benefits that we offer by transposing the advantages on real life shopping. We will leverage dedicated client servicing with multiple payment methods and money back guarantees.The challenge is to educate and captivate the audience on the positives which realm holds and we would like to enhance the concept and experience of online shopping with innovation so that we can gain the loyalty of our customers.This report covers the Strategies Myntra is adopting, defining various aspects of the marketing through SWOT, Ansoff matrix, PEST and Porters model analysis in order to keep it ahead in the game.

Table of Contents:S.NoParticularsPage no.

1.Myntra Introduction4

2.Positioning, advertising and promotion5-6

3.Industry overview7

4.External Environment8

5.PEST analysis9

6.Porters five force model10

7SWOT analysis11

8.TOWS analysis11-12

9.Ansoff matrix 12

10.Financial pay-off13

11Contigency Plan14

12Conclusion15

13References16

\

MyntraAn amalgamation of creatively charged IIT youngsters i.e. Mukesh Bansal, Ashutosh lawania and vineet saxena established Myntra in the year 2007. It began its operations in B2B (Business to Business) segment with customized product. Myntra happened to be Indias first online portal for personalized merchandise and was the most successful brand in aforesaid segment. The firm which started with personalized merchandise solutions to companies realized that the business was fragile with wafer thin margins and large volumes. The CEO studied Indian market and found that the fashion and lifestyle industry is a $30billion market in India and decided to become an online apparel merchandiser. In 2010, the company shifted its strategy to becoming B2C (Business to Consumer), and re-invented itself into myntra.com expanding its catalogue to fashion and lifestyle product. Myntra.com is Indias largest online fashion store; it is one of the first of its kind in India a as most of the online fashion and lifestyle store are mere online shops where you just pick and pay whereas in Myntra.com customers are provided with:1. Rich detailed catalogue of products having clear creatives and clear call of action with 24 hours customer support services.2. The website elements i.e. menu layout, access to product information, logical presentation, screen design, navigation, and presentation of product attributes and product availability are well maintained ensuring a comfortable user interface.3. Myntra retails only most popular in-season merchandise.4. Myntra offers 30 day return policy which gives an ample amount of time to the Indian customers to touch and feel of the product.5. Myntra attempts to ship every order within 24 hours, free shipping within India on all products. It can also ship goods internationally to all major countries. 6. Payment terms would be COD (Cash on delivery) and Credit/debit cards.

Myntra is aggregator of many brands. To be over and above competition, with 350 premium brands and 20000 styles, it has the largest collection of latest fashion and lifestyle product in India. All the products are brand new and 100 % original. Myntra has also a style blog on its website which keeps the individuals about the latest trends of fashion.

StatisticsGlobal rankMyntra.com has 1611 global rank according to alexa

Views/day1,351,825

Daily Ads revenue$4,055

Worth of Myntra$2,952,386

Rank in India95( top 100 websites)

source:www.getwebsiteworth.com

POSITIONING - Myntra is positioned as an online fashion and lifestyle shop in the minds of people which especially cater upper middle to affluent class. It will push the fashion quotient even further and highlight myntra as a unique style and personality brand. It has used social networking sites to expand the customer base. Positioned itself as a fashionable new age brand. Viral marketing to increase the popularity coupled with discounts and referral discounts. Cross campaigns through emails, cinemas and homepage. Above the line advertisements. Doesnt sell DEEPLY DISCOUNTED PRODUCTS.ADVERTISEMENTS - The challenge for the advertisements is to communicate the unique benefits myntra.com offers by transposing those advantages on real life shopping and to educate and captivate the audience on the positives of what the realm holds. They lately came up with an outdoor campaign named shop online to spread awareness about the brand and to showcase the gazillions of national and international brands being retailed under one banner. Myntra came up with Television commercial lately which is Above-The-Line advertising. The first TVC ad was created by Taproot India with the theme Real life mein aisa hota hai kya? highlighting the various benefits of online shopping like free home delivery, cash on delivery and 30 day return policy. Myntra also unfurled OOH (out of home) campaign to build awareness.PROMOTIONS -Phase 1 Ad words: Ad words are Google ads on search engines, when people search for any product related keywords it appears. They have bought ad slots on various websites related to their products to tap the untapped market. For example facebook and inkfruit. Initially online websites pull off their promotions online which is low on budget and high on impact.

SEM (Search Engine Marketing): Myntra will go bankrupt if it will invest all their capital on ad words. SEM is the process through which a website gets traffic or visibility on search engines. Myntra is doing SEM through articles and link exchanges; they are very technical in nature and often needs experts. Myntra has developed Style mynt blog wherein they have provided customers with latest fashion styles of the season through their range of products.

Link exchange is an effective internet marketing system that makes it easy to increase traffic to your website. With increased link popularity comes increased search engine ranking and if channelized efficiently, it can become cash cow for the company. It gets company direct traffic, helps in building relationship with other websites and search engine optimization.

The promotion codes have been made to lure customers through discounts and coupons.

Phase 2 From online to Tele: With increasing cash flows and IPO funds, Myntra came up with Tele Vision Commercials and also they are doing viral advertising by outdoor campaigning, e-mails, hoarding placement and cross campaigning.

Industry OverviewBefore we jump directly to online stores market potential we need to understand the situation of internet penetration in India, starting with a strong note it is heart warming to know that one in every 10 Indians will be an internet user making it third largest internet market in world after China and United States.In fact by the end of this year, 121 million Indians will be accessing internet for e-mails, chat and social network (where Myntra is focussing heavily), and as far as Indian scenario is concerned the annual sales of 2011 is $5.6 billion approximately. E-marketer forecasts that online sales will be more than double by reaching $168.7 billion.

Companys Mission To provide the best fashion and lifestyle goods with exceptional services which keep our customers satisfied, always.Vision StatementTo grow and prosper with our consumers and be the ultimate fashion and lifestyle product provider under the sun.Goals and objectivesFor any company the prime aim is to satisfy their customer with intense servicing. Offer defect free products, error free delivery and give them the best known fashion and lifestyle brands around India at ease. Myntra aims to expand its warehousing capacity to deal with the surge in orders and will maintain fine tuning in the processing and delivery of orders. Myntra will improve their backend services by deploying 24 hrs call centre. The thrust is towards building rich catalogues and user interface. The target is to get a turnover of Rs.500 Cr expecting 20000 orders per month by March of next year.External EnvironmentMyntra was first to come up with online retail store, Myntra e-mall serves quite a big market with its focus towards fashion and lifestyle. The company enjoyed first mover advantage for a decent period of time but then the opportunities lie in e-commerce was sensed by the competitors. It gets competition from jabong.com, fashionandyou.com, yebhi.com and smileinteractives.com offering vast range of clothes and accessories to purchase online.Online fashion and lifestyle industry is very much new in India. The main reason is that fashion and lifestyle have not taken much seriously in our country. But the scope is large enough because e-commerce is good enough platform to serve the nation and there is still big market where a company can sustain and make profits.In the beginning Myntra collaborated with distributors of products as the volume of sales was not at surge. With passing time and increase in the volume of sales they slowly progressed with suppliers and built their own warehouse.Myntra is mainly dependent upon its suppliers whom they take products directly from. This makes their product cost go even lower. And the products are thus available in its best available quality and price.There are 300+ brands we are dealing in. Some of them are as follows:DKNYNIKESOLIVER

GUESSU.S POLO ASSNVAN HEUSEN

GASREEBOKTOMMY HILFIGER

HUGO BOSSRED TAPEPARIS HILTON

ED HARDYADIDASAND

CALVIN KLIENPUMAARROW

ESPIRITLEVISPARIS HILTON

FCUKDUNHILLJOHN MILLER

PEST ANALYSISPolitical EnvironmentGovernment is liberalizing its retail policies which are attracting new entrants in market. Heavy investments in Information technology infrastructure will make internet experience faster and more reliable. To maintain the exclusivity of the store Myntra has made a community to support its customer and a blog STYLE MYNT to keep people linked and informed. Myntra aim is not just selling products but also to deliver quality and satisfaction.

Economical EnvironmentMyntra is in its growth stage, the aim is to garner Rs.500 Cr sales in current fiscal. It has enhanced its distribution networks and expanded warehouses in different metro cities so that they can deduct the delivery time even further. The prospects of the company are not limited to India. Indeed this field has not much being tapped around the world and currently we are one of the few who are operating. Despite of ineffectual economic conditions, myntra has managed to grow with the turnover of Rs 15Cr from over 5000 orders per month.

Socio-Cultural EnvironmentIndian culture is religiously diverse country; the marketplace of Indian consumer is a challenging environment: a unique demographic makeup, evolving lifestyles and aspirations, highly fragmented media structure and huge growth potential. We do not take fashion seriously from childhood but with passing time the hunger for fashion increases. Our fashion and lifestyle is not world class but competitive. Fashion has taken a new shape and it keeps moulding with the needs and desires of individuals. The spending power of Indian consumer is great with dispensable and disposable incomeBeyond leveraging mainstream English media and the opportunities in social media, Myntra has developed programs to exploit the phenomenal opportunities in regional media. In most large states of India, the penetration of English media is a single-digit phenomenon.

Technological EnvironmentTechnology is one thing which myntra highly bank upon. Fashion and technology both are at surge and myntra has capitalized it quite well. Through technological advancements individuals have become tech savvy and obsessed with internet. We can tap on mass media effectively through internet with much less cost. Media rich contents and fast navigation has made things easier. Everything is just a click away.

PORTERS FIVE FORCE MODEL

Competitive Rivalry within an industryFor many industries, the major factor which determines competitiveness is rivalry within an organization. Myntra came up with online fashion store in 2010 and after a while it shared its market with jabong, fashion and you, yebhi and smileinteractives. The opportunities in market are huge and if positioned well, can create its own market.

Bargaining power of supplierThe suppliers here are the brands whose products are being retailed by Myntra. These products primarily come at fixed prices which are determined by their management. Therefore it makes companys strategy easier because now we know the end price of the product and price after discount on which we can sell our products. Myntra is retailing 350 brands under its name that means the relationship with suppliers is smooth and beneficial.

Bargaining power of customerThere is no possibility to bargain online, still there is huge fear of switching from one offering to another. This way the firm will be stressed to a decent level. Myntras site displays the last and final price of the product. Customers can call myntra only for any assistance. Its service has only one motive, to give products at the best price available in the industry.

Threat of new EntrantsNew entrants are big threat to the companies so the threat is very high in this concern. Indian Retail industry is at boom and many players have sensed it. Myntra has an established name in industry so is the market share. To cope up with competition myntra will have to create Points of Difference (POD) and deliver customer best services with satisfaction.

Threat of Substitute Product/CompanyMyntra was the first player to realize the potential of fashion and lifestyle so they surely have the first mover advantage but then with liberalization of policies many new substitutes are coming down to India. Myntra cannot provide the customer with a real retailing experience but at the same time gives the convenience of shopping from home/office. They have 4 major players competing with them so the threat is moderate. Pricing and servicing should be maintained well in order to fight the competition.SWOT ANALYSISStrengths: Serving markets through internet requires less infrastructure setup. Fast delivery at low cost from dedicated warehouses. Having a sound infrastructure funded by venture capitalists which is sufficient to reach out any part of the country. Dedicated client services through back end services by deploying 24 hrs call centre. Offer a lesser price from the close competitor offering similar services.

Weakness: Not much penetration of internet in the country. Sports not taken much seriously in India. Customers always like to get a feel of the product before buying. Has to win the faith of the customers first regarding the delivery of the product

Opportunities: Untapped marketing platform. Growth in interest of Indians towards fashion and lifestyle. Dealings directly with suppliers which gives good margins in the country.

Threats Increased Competition. Government Regulations. Technology Breakdown, Hacking. Relationship with 3rd party logistics company.TOWS AnalysisSO Strategies Filmstar kalki koechin is doing advertisements for myntras blog style mynt and they were official online partner for cocktail movie. Branding through fast, accurate and low cost services through different agencies like they did an outdoor campaign in metro and malls. They also came up with their first TVC ad few months back.

WO Strategies Increase the faith of the customers by installing 24 hours customer support system, they also have a community on getsatisfaction.com where they take complains, suggestions, ideas and advices from customer.

ST Strategies Hired some experienced technicians to maintain the network of the company. Capitalizing on the market through mass marketing. To become leader in the specified industry.

WT Strategies Initialized schemes like cash on delivery and 30 days return policy. This will give a personal touch to the customer. These schemes will not only make myntra win the faith of customer but increase the sales too.

ANSOFF MATRIX

It can be clearly witnessed that myntras strategy is product development with the existing market and new products. Myntras strategies are to update the website with the latest product, first in market, lesser price than the close competitor offering similar services and the customer support system needs to be strengthened.The risk in e-commerce is high but the extravagant growth of internet decreases the risk involved substantially. Our aim is first of all is to win the faith of potential customers which can only be done by timely and fast delivery of products at fairly economic price for the firm.

Financial Pay OffThe financial payoff certainly boils to the point where myntra has to see how much they are putting into setup & how much are the sales, the following are their major cost heads Space: Myntra is planning to setup its warehouses and offices in metro cities of India so that they can make the logistics smoother. Myntra have already established its offices in Delhi, Mumbai and Chennai and planning to expand its warehouses as well. Employees: Myntra has about 300 employees and they will be given training about the vision and goals of the company. Myntra has state of the art offices for its employees which are full of experts. Myntra is quite able to attract and retain its employees.

Logistics: This is the expense or the money which will be given to third party logistics for transfer of goods from manufacturer to consumer.

Advertisements & promotions: Myntra has spent a big amount in TVC ads and also made 2 mass media campaigns. Myntra is doing viral advertising through social media websites like facebook, twitter, pinterest, inkfruit and google+The difference between all sales minus all the payment of above heads will be the profits.

Contingency plan of MyntraIf things do not fall according to plan myntra would firstly unlock itself from a particular segment and start catering to other segments. It will decrease its level of personalized services but it would not change the brands & collaborations as this gives it a competitive advantage, in fact it will try to provide these high end brands at attractive rates & offers. It will also expand its logistics network and warehouses.

CONCLUSIONMyntra is going quite smooth in e-commerce industry with its dedicated services and rich catalogue of products. The company expects to escalate its turnover to 500Cr in current fiscal with new products and brands, investment in marketing and enhanced distribution network. New entrants have been coming and to stay ahead myntra has to do lot of struggle. It also has to play very safe with its strategies of pricing and promotions. They need to innovate themselves gradually because the industry is very vivacious and vibrant.

References:www.myntra.comwww.brandanalyzer.wordpress.comwww.economictimes.comwww.getwebsiteworth.comwww.businesstoday.comwww.getsatisfaction.comwww.wikipedia.comwww.business-standard.comwww.moneylife.inwww.indiaprwire.comtechcircle.vccircle.com

2 | Page