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Group 4
 INFIBEAM.COM: Where customers could browse
through products and have the same delivered within
India within a few days.
 1.5 % Market Share in 3 Years
 Successful Partnerships with many retail Giants
 Do-it-Yourself E-Commerce platform for Other
Retailers
 Expansion to Newer formats: Photo Printing
Website and Remote Cataloguing Company
 Vishwagram Bazaar in collaboration with
Government of Gujrat to expand and tap into the
upcoming rural market
 People not comfortable in transacting online. Still in
adaptation process
 Low internet penetration (only 42 mill users with
3.7% penetration
 Payment and Physical infrastructure not much
developed
 Main Offering: Pricing, Selection and Convenience.
 Wide Selection (Virtualization of Inventory)
 Low penetration of Credit and Debit Cards.
 Growing Internet Subscription Rate
 Lacklustre execution and poor customer service
primary cause of closure of players.
 Few Sites could build trust and loyalty
 Challanges:
     Supply Chain
     Accurate and Timely Delivery of products
     Complex system of Taxation
Company Started Merchandise        Promotio    Sales              Users     Misc
        in                         n
FlipKart   Octobe Books, CDs,      SNS and     250 Mill in        50000     Books
           r 2007 DVDs,            WOM, TV     2007               0         are top
                  Mobiles,         Ads         75 Cr in 2010-11             selling
                  Computers,                                                categor
                  Music,                                                    y,
                  Movies                                                    projecte
                  Games,                                                    d
                  Gadgets                                                   revenue
                                                                            of 1 Bill
                                                                            in 2014-
                                                                            15
Ebay       2004    Practically     Social and -----               2.5
(C2C)              Anything        Viral                          Million
                   between         Marketin
                   users (50000)   g, Print
                                   and TV
Company    Started in   Merchandi Promotion Sales                 Users        Misc
                        se
India Plaza 1999        Books,        Rewards      20 Cr in       ---          Low Prices
(NRI Pop)               music,        and loyalty 2007                         Reliable
                        camers,       programs                                 operations
                        mobile,       for Banks,
                        appliances    Airlines etc
                        , flowers,
                        cakes, toys
Rediff     1996         Books, car ‘DEAL HO        14.6 Mill in   15 Million   --
                        accessorie JAYE’,          2009-10        every
                        s, h/w,                    17.94 mill     month
                        health and                 in 2010-11
                        beauty,
                        jewellery,
                        kitchenwa
                        re,
                        apparel,
                        electronics
                        and toys
Company      Started in   Merchandi Promotion Sales              Users        Misc
                          se
Indiatimes                Elecronics,   Brand      312 mill in   47 mill in   Good
                          apparels,     Image of   2009-10       2010         distributio
                          watches,      Parent                                n network
                          bags,         Company                               and
                          jewellery,                                          different
                          gifts                                               payment
                                                                              options,
                                                                              Encrytion
                                                                              tech and
                                                                              privacy
                                                                              rules
 Wide Variety/Depth of Products (using virtualization
of inventory).
 Consistent addition to product portfolios.
 Ability to search for products on various parameters
(individually or in combinations)
 Additional Features: What your Friends Viewed, You
may Also Like, Products similar/Related to this.
 Referral Programs.
 Social Media interaction
 Improving the online experience with navigation,
search, online help and porting over shopping lists
   Online Coupons
   Loyalty Programs
   Discounts
   Seasonal or Festival Sales
   Promotion Codes
 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
 Robust supply chain of tail products helping in
increasing sales
 Also keep track of prices in modern retailers to beat
them
 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
Product Categories       5 Share of Orders
Books and Magazines                           50
Electronics                                   25
-Home Entertainment and appliances            38
- Computers, cameras and peripherals          34
- Mobiles and peripherals                     28
Lifestyle                                     25
- Apparel and accessories                     49
- Home Lifestyle                              32
-Gifts                                        12
-Others                                       7
 Product bundling and cross selling for related
products
 Increase seasonal merchandising (if not being done
currently)
 Increase homepage coverage for Apparels which
could have more margins (currently not shown on
homepage)
 Increase membership by Loyalty programs to
increase customization according to buying pattern,
sex, affluence, age, etc.
WEB DESIGN CONSIDERATIONS FOR E-RETAIL STORE


The Simpler the Better
Customers don’t expect to be confused by a super innovative and inconvenient
navigation or non-readable text. Store’s home page should not be overloaded with a
complex navigation structure

New Products/ Most favored product Display
These should be given discount so as to increase traffic, and should be on the very
first page. One slider banner with several rotating images (with vivid titles,
discounted prices and special buying conditions) will be enough to grab visitors’
attention and to make them follow the link to take a closer look at the featured
products. It will work for both first-time and returning visitors.

Shopping by Category
Since products have a number of categories, hence the search or browsing should be
category wise or else the customers might get too confused
Creating Search Boxes
 A few seconds after entering the site, if a potential customer can’t find a thing he/she
needs, more likely he/she will go away and find another store. Hence it is necessary
to have search boxes

Creating a Product list with Images
Thoughtful products categorization will bring better results and help to arrange the
web space better. It is extremely important to have availability of images since
people shop visually. Home pages can’t include numerous pictures of all products,
but they can be illustrated with the most eye-catching ones or the most favored
products.

Contact Info
A good customer care from the website’s end assures the physical presence of the
online media, hence this is of prime importance.

Payment System
Payment system icons are usually located at the bottom of the home page or even
through the entire website. They are not clickable and just let us know how we can
pay on this store. The payment should be accepted from a number of resources such
as credit card, debit card, online banking or even “cash on delivery” should be an
option.
Shopping Cart/ Checkout Link/ Account Creation
People should create an account (but it’s not an obligation). It will not take much
time but customers will be able to check their previous orders. Store should track
their customers account activity and present them with some discounts or special
buying conditions.
 It’s considered that the upper left part of web pages is the most viewable because
visitors start looking through a website’s content from there. Hence a shopping
cart icon as well as login should be present there to let the customers know their
purchases.

Name/ Website logo
The home page is not a place for self-promotion. Clear logo, store name and short
descriptive sentences about what the company is be more than enough. This is
because majority of customers are interested in the goods/ services being offered
rather than the company offering them.
SUPPLY CHAIN MANAGEMENT FOR E-RETAILING

• Get in a contract with the suppliers within 20 kms of every e-gram that has to be
established. For different areas there should be different suppliers.

• Getting IT implementation on suppliers side to keep a check on inventory.

• Implement better warehouse management, including tailored pick orders and
stock replenishment by pre-set thresholds.

• Implementing reverse logistics, incase the consumers want to sell their products

• Track and manage inventory, including in multiple locations by getting up-to-date
information about in-stock quantities.

• Real time access to customer records, sales histories and customer activity, for
offering better services, discounts and service recovery.

• Implementing the information recovery of getting real time data of delivery on
time to the customers through 3rd party logistics.
SUPPLY CHAIN MODEL FOR E-RETAILING




                        India Post




Warehouse                                        Customers




                       infibeam.com

                                                 World
                                                 Wide
Suppliers                                        Web
For Offline Users
Target Consumers                            For online users       Fund Raising
                         Awareness

• College going &    • At least making     • SEO -- The         • PR – Since one of
  Young Men            people aware of       majority of          their main
• To tap them          it as one of the      shoppers choose      objective is fund
  tools such as        options in the e      to click on a        raising therefore
  Social               commerce              result from the
                       space.                first-page of        this is one tool
  Networking sites
                                             results              which they have
  are most           • TV is most
  important.           important tool      • Affiliate            to use more
• Fan pages,           for this purpose.     Programs – Use
  discussion                                 well known
  forums etc                                 highly visited      often.
                                             sites especially
                                             their
                                             Buildabazaar
                                             partners for
                                             exchange in ad
                                             space.
 Customer Lifetime value is important but since the
major value proposition in this space is low cost so we
think its more about being in the consideration set ,
providing best deals & hassle free experience.
 Although additional Customer acquisition cost due
to promotion & for awareness is calculated below:
Because of both low effectiveness & regulatory cap on SMS’s we suggest zero
spend on the space, also one of the components could be PR but since we are
talking about direct additional customer acquisition cost due to promotion we
have not taken PR into account.
Amazon.com offered convenience of browsing million
books in a single sitting
 Used technical innovation to offer more product
category
 Amazon operated retail website and allowed third
parties to sell product on its site
   Operated several websites for search and navigation
 Offered e commerce platform to other retailers and
individual sellers to enhance revenue.
 Launched in native language for online auction and
shopping in year 2003
 Offering for business retailer and individual
entrepreneur to open their online retail stores
 Unlike eBay which charged listing fees it was free to
use
 Local name drew the local crowd attention and
poached customer from rival eBay.
 Understood its customer well and thus provided
higher satisfaction
 Unlike eBay’s listing which were more product
centric Taobao chose a customer centric listing
 Taobao targeted cell phone savvy Chinese customer
over far less number of internet user( 5.3%
penetration level in 2003) through instant messaging
and voice mails.
Failed to recognize that Chinese market and
business environment very different than the west.

Failed to understand the local market and used
wrong medium to reach to its target segment

 Didn’t customized its product according to local
taste and preferences instead stuck to its “ global
platform” agenda.

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Infibeam case retail

  • 2.  INFIBEAM.COM: Where customers could browse through products and have the same delivered within India within a few days.  1.5 % Market Share in 3 Years  Successful Partnerships with many retail Giants  Do-it-Yourself E-Commerce platform for Other Retailers
  • 3.  Expansion to Newer formats: Photo Printing Website and Remote Cataloguing Company  Vishwagram Bazaar in collaboration with Government of Gujrat to expand and tap into the upcoming rural market
  • 4.  People not comfortable in transacting online. Still in adaptation process  Low internet penetration (only 42 mill users with 3.7% penetration  Payment and Physical infrastructure not much developed  Main Offering: Pricing, Selection and Convenience.  Wide Selection (Virtualization of Inventory)  Low penetration of Credit and Debit Cards.
  • 5.  Growing Internet Subscription Rate  Lacklustre execution and poor customer service primary cause of closure of players.  Few Sites could build trust and loyalty  Challanges:  Supply Chain  Accurate and Timely Delivery of products  Complex system of Taxation
  • 6. Company Started Merchandise Promotio Sales Users Misc in n FlipKart Octobe Books, CDs, SNS and 250 Mill in 50000 Books r 2007 DVDs, WOM, TV 2007 0 are top Mobiles, Ads 75 Cr in 2010-11 selling Computers, categor Music, y, Movies projecte Games, d Gadgets revenue of 1 Bill in 2014- 15 Ebay 2004 Practically Social and ----- 2.5 (C2C) Anything Viral Million between Marketin users (50000) g, Print and TV
  • 7. Company Started in Merchandi Promotion Sales Users Misc se India Plaza 1999 Books, Rewards 20 Cr in --- Low Prices (NRI Pop) music, and loyalty 2007 Reliable camers, programs operations mobile, for Banks, appliances Airlines etc , flowers, cakes, toys Rediff 1996 Books, car ‘DEAL HO 14.6 Mill in 15 Million -- accessorie JAYE’, 2009-10 every s, h/w, 17.94 mill month health and in 2010-11 beauty, jewellery, kitchenwa re, apparel, electronics and toys
  • 8. Company Started in Merchandi Promotion Sales Users Misc se Indiatimes Elecronics, Brand 312 mill in 47 mill in Good apparels, Image of 2009-10 2010 distributio watches, Parent n network bags, Company and jewellery, different gifts payment options, Encrytion tech and privacy rules
  • 9.  Wide Variety/Depth of Products (using virtualization of inventory).  Consistent addition to product portfolios.  Ability to search for products on various parameters (individually or in combinations)  Additional Features: What your Friends Viewed, You may Also Like, Products similar/Related to this.  Referral Programs.  Social Media interaction  Improving the online experience with navigation, search, online help and porting over shopping lists
  • 10. Online Coupons  Loyalty Programs  Discounts  Seasonal or Festival Sales  Promotion Codes
  • 11.  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  Robust supply chain of tail products helping in increasing sales
  • 12.  Also keep track of prices in modern retailers to beat them  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
  • 13. Product Categories 5 Share of Orders Books and Magazines 50 Electronics 25 -Home Entertainment and appliances 38 - Computers, cameras and peripherals 34 - Mobiles and peripherals 28 Lifestyle 25 - Apparel and accessories 49 - Home Lifestyle 32 -Gifts 12 -Others 7
  • 14.  Product bundling and cross selling for related products  Increase seasonal merchandising (if not being done currently)  Increase homepage coverage for Apparels which could have more margins (currently not shown on homepage)  Increase membership by Loyalty programs to increase customization according to buying pattern, sex, affluence, age, etc.
  • 15. WEB DESIGN CONSIDERATIONS FOR E-RETAIL STORE The Simpler the Better Customers don’t expect to be confused by a super innovative and inconvenient navigation or non-readable text. Store’s home page should not be overloaded with a complex navigation structure New Products/ Most favored product Display These should be given discount so as to increase traffic, and should be on the very first page. One slider banner with several rotating images (with vivid titles, discounted prices and special buying conditions) will be enough to grab visitors’ attention and to make them follow the link to take a closer look at the featured products. It will work for both first-time and returning visitors. Shopping by Category Since products have a number of categories, hence the search or browsing should be category wise or else the customers might get too confused
  • 16. Creating Search Boxes A few seconds after entering the site, if a potential customer can’t find a thing he/she needs, more likely he/she will go away and find another store. Hence it is necessary to have search boxes Creating a Product list with Images Thoughtful products categorization will bring better results and help to arrange the web space better. It is extremely important to have availability of images since people shop visually. Home pages can’t include numerous pictures of all products, but they can be illustrated with the most eye-catching ones or the most favored products. Contact Info A good customer care from the website’s end assures the physical presence of the online media, hence this is of prime importance. Payment System Payment system icons are usually located at the bottom of the home page or even through the entire website. They are not clickable and just let us know how we can pay on this store. The payment should be accepted from a number of resources such as credit card, debit card, online banking or even “cash on delivery” should be an option.
  • 17. Shopping Cart/ Checkout Link/ Account Creation People should create an account (but it’s not an obligation). It will not take much time but customers will be able to check their previous orders. Store should track their customers account activity and present them with some discounts or special buying conditions. It’s considered that the upper left part of web pages is the most viewable because visitors start looking through a website’s content from there. Hence a shopping cart icon as well as login should be present there to let the customers know their purchases. Name/ Website logo The home page is not a place for self-promotion. Clear logo, store name and short descriptive sentences about what the company is be more than enough. This is because majority of customers are interested in the goods/ services being offered rather than the company offering them.
  • 18. SUPPLY CHAIN MANAGEMENT FOR E-RETAILING • Get in a contract with the suppliers within 20 kms of every e-gram that has to be established. For different areas there should be different suppliers. • Getting IT implementation on suppliers side to keep a check on inventory. • Implement better warehouse management, including tailored pick orders and stock replenishment by pre-set thresholds. • Implementing reverse logistics, incase the consumers want to sell their products • Track and manage inventory, including in multiple locations by getting up-to-date information about in-stock quantities. • Real time access to customer records, sales histories and customer activity, for offering better services, discounts and service recovery. • Implementing the information recovery of getting real time data of delivery on time to the customers through 3rd party logistics.
  • 19. SUPPLY CHAIN MODEL FOR E-RETAILING India Post Warehouse Customers infibeam.com World Wide Suppliers Web
  • 20. For Offline Users Target Consumers For online users Fund Raising Awareness • College going & • At least making • SEO -- The • PR – Since one of Young Men people aware of majority of their main • To tap them it as one of the shoppers choose objective is fund tools such as options in the e to click on a raising therefore Social commerce result from the space. first-page of this is one tool Networking sites results which they have are most • TV is most important. important tool • Affiliate to use more • Fan pages, for this purpose. Programs – Use discussion well known forums etc highly visited often. sites especially their Buildabazaar partners for exchange in ad space.
  • 21.  Customer Lifetime value is important but since the major value proposition in this space is low cost so we think its more about being in the consideration set , providing best deals & hassle free experience.  Although additional Customer acquisition cost due to promotion & for awareness is calculated below:
  • 22. Because of both low effectiveness & regulatory cap on SMS’s we suggest zero spend on the space, also one of the components could be PR but since we are talking about direct additional customer acquisition cost due to promotion we have not taken PR into account.
  • 23. Amazon.com offered convenience of browsing million books in a single sitting  Used technical innovation to offer more product category  Amazon operated retail website and allowed third parties to sell product on its site  Operated several websites for search and navigation  Offered e commerce platform to other retailers and individual sellers to enhance revenue.
  • 24.  Launched in native language for online auction and shopping in year 2003  Offering for business retailer and individual entrepreneur to open their online retail stores  Unlike eBay which charged listing fees it was free to use  Local name drew the local crowd attention and poached customer from rival eBay.
  • 25.  Understood its customer well and thus provided higher satisfaction  Unlike eBay’s listing which were more product centric Taobao chose a customer centric listing  Taobao targeted cell phone savvy Chinese customer over far less number of internet user( 5.3% penetration level in 2003) through instant messaging and voice mails.
  • 26. Failed to recognize that Chinese market and business environment very different than the west. Failed to understand the local market and used wrong medium to reach to its target segment  Didn’t customized its product according to local taste and preferences instead stuck to its “ global platform” agenda.