retail analytics group-6
TRANSCRIPT
April 18, 2023
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Group 6 Retail Analytics
Presented By: Amarjeet Singh Ankush Roy Ashitha VS Koushik Rakshit Masarrat Yasmeen Roma Agrawal
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Group 6 Retail Analytics
About SnapdealBusiness ModelBusiness ResultsSupply Chain & LogisticsHow Snapdeal worksSpecial FeaturesCustomer SegmentationPromotion & Social Media Campaign
Agenda
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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
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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”
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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…
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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)
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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…
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Group 6 Retail Analytics
Step 1: Subscribe• Subscribe with Snapdeal to get daily deal alert on your mobile number and e-
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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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
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Segmentation involves grouping consumers based on certain criteria.
Demographic segmentationDemographic segmentation
GeographicsegmentationGeographicsegmentation
PsychographicsegmentationPsychographicsegmentation
BehavioralsegmentationBehavioralsegmentation
-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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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
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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 CampaignContd…
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Group 6 Retail Analytics
About Infibeam
Business Model
Profitability
Customer Segmentation
Pricing
Supply Chain & Logistics
Promotion & Social Media Campaign
Agenda
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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
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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
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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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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
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Group 6 Retail Analytics
Supply Chain & Logistics
Infibeam Logistics: its own logistics arm in major Indian cities.
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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
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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.
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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
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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
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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
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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