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Sector Report
E-commerce

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E-Commerce: Use of internet to buy and sell products, idea, technology and services.
Value:

Increased efficiency

Cost-cutting

Improved quality of goods and services

E-commerce started around 1995


1995-2000 Dot-com bubble of E-commerce: Most companies had website name ending
with .com. Bubble burst in around 2003 due to efficiency and lack of proper business
mode.

DOT-COM E-Commerce

New E-Commerce

Technology-driven

Business-driven

Revenue growth emphasis

Earning and profits emphasis

Venture capital financing

Traditional financing

Pure online strategies

Mixed click-and-brick strategies

Entrepreneurial

Traditional firms

Lack of standards

Stronger regulation/standards

The main characteristics of -e-commerce:

Pervasiveness: persistent development and proliferation in business.

Inexorability: inevitable and unstoppable nature in terms of the high rates of growth

E-commerce disintermediation: act of taking out an intermediary organization used for


channel delivery of products and services. For example, direct sales of computers through
the Internet by Dell or Hewlett-Packard (HP) eliminates any intermediate organizations like
distributors and retailers. This leads to reduced cost of product delivery to the customers
and increased profits.
E-commerce re-intermediation facilitates creation of third party organizations that provide
virtual environments for connecting buyers and sellers. Example: companies like eBay or
Amazon act as third parties.
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Pure -e-commerce organizations: products/ services and processes being completely


digitized and organization is a digital agent company. These organizations are also known as
virtual or pure-play -e-commerce companies. An example: www.YouTube.com
Partial -e-commerce organizations are those organizations that may have some physical -ecommerce dimensions like physical products or processes. For example, Amazon purchases
and stores books (physical products) that it then sells online.
Click-and-mortar organizations are companies that conduct some -e-commerce activities,
for example, selling computers through -e-commerce channels like HP or Gateway, but
provide primary business in the physical world.
Brick-and-mortar organizations perform all their business without the Internet by selling
their physical products in stores or by means of physical agents.
E-commerce organizations are also differentiated by the transactions and interactions
they make:

Business-to-Consumer (B2C) e-commerce


Consumer-to-Consumer (C2C)
Peer-to-Peer (P2P)
Government-to-Business (G2B)
Government-to-Consumer (G2C.
Business-to-Business-to-Consumer (B2B2C

Value creation: Represents the potential or expected and actual monetary and nonmonetary results of utilizing an -e-commerce business model
The main monetary results of value creation include revenue enhancement through sales
growth and price differentiation, and cost reduction related to cost of goods sold, operating
costs, and asset intensity reduction.
E-commerce creates opportunities for asset intensity reduction, which means
(a) Reducing capital costs by effective, speedy disposition (selling) of unnecessary or old
equipment as well as excess or obsolete inventory
(b) More effectively using existing space by reducing inventory clutters with e--commerce.
The non-monetary value creation:

Improved customer satisfaction through providing more choices of products,


services, and information.
Customization and personalization of product and service offering. Improved quality
of products and services.
Faster delivery schedules.
Extended hours of work (24 hours, 7 days a week).
Global outreach of products, services, and information.
Permanent access to information.

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BUSINESS MODELS FOR E-COMMERCE

Business model: method or tool by which a company would like to generate revenue/profit
and serve the customer needs.
E-commerce business model - five main components:

1. Value proposition unique values that the organization offers to its customers
through e--commerce. It is based on :
a. target market segment (customers)
b. core customer benefits that can be offered
2. Value-added e-commerce offerings or activities: set of e-commerce
products/services, processes and their relationships, which are required to fulfill the
value proposition. It includes:
a. product and service offerings
b. e-commerce processes
c. Relationships between products/services and processes
3. Supporting resources: resources that sustain the e-commerce models value
proposition and value-added offerings.
4. Revenue model: describes how a company will generate revenue/profit through ecommerce to build and sustain a competitive advantage. Cost model emphasizes
ways that a company uses to reduce cost
5. Value creation represents the potential/expected monetary and non-monetary
results of utilizing an e-commerce business model, i.e., an output of the e-commerce
model development
Types of e-commerce business models:
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Demand (sell)-side models: provide e-commerce solutions to the organizations


customers
Supply (buy)-side models: concerned with online outsourcing and supplier
relationships
Collaborative commerce (c-commerce): establish online collaboration between an
organization and its customers
e-service models: models that provide online services to its customers to support

Return on Investment (ROI) defines a business value of e-commerce model and is identified
as an expected savings divided by investments in e-commerce

Demand (sell)-side e-commerce models are designed by organizations (sellers) to


provide selling opportunities on the downstream side of supply chains, i.e., from the
organization to its customers.

Most common types of e-commerce models in practice


A direct online channel to business customers or end consumers
Complementary selling and auctioning represents an online channel of selling
products and services to business customers and end consumers, which is
complementary to the existing traditional distribution/retail channels.

Pricing options in demand-side E-commerce

Examples of market
Pricing Option
Precision
Determine the highest
price that has little or
no impact on purchase
Decision
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Source of Value
Test prices continuously
to better understand
market and the zone of
price indifference

segments
Commodity products:
Bikes, books, jewellery etc.

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Adaptability
Change prices frequently
in response to market
conditions, inventory
levels, etc.

Prices can be changed


quickly and frequently
and in response to
Internet-monitored
Conditions

Consumer products with:


Short life cycle (electronics),
Perishable (food)
Fluctuating demand

Segmentation
Divide customers into
different classes and offer
a different price for each
Segment

Easily identify which


segment a buyer belongs
to and create barriers
between segments

Products in which customer


profitability varies widely:
Credit cards, mortgages
Products with special offers

The value added capabilities of demand-side e-commerce involve:

Creating new channel of marketing and product sales with global outreach.
Can be used at any time of the day or week (24/7).
consolidates all product and sales information and search capabilities online,
allowing the customers to find quickly needed products or services
Provide paperless processes, which speeds up the order fulfilment process
and reduces transaction costs.
Provides an opportunity to coordinate order taking and order execution
Provides price differentiation online for various products and customer
segments for
o a new customer versus a repeat customer
o small business customer versus large volume customer
o international customer versus domestic customer

Order processing in the demand-side e-commerce model may involve

Electronic shopping cart checkout process using electronic shopping cart and
payment sys-tem
Order confirmation
Order tracking by connecting to the logistics carrier
Payment information to the internal back-end system like order management
and accounting

E-fulfilment: online process that provides collaboration between sellers and suppliers to
speed-up production and delivery of orders. The seller makes order information directly
available to suppliers.

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E-fulfilment process
Some demand-side e-commerce are Microsoft Office Live (former -Microsoft Commerce
Manager), eBay Stores, Yahoo Merchant Solutions, Storefront.net, and Oracle i-Store.

Supply-side e-commerce or e-procurement is a growing area of -e-commerce models. It


provides direct and efficient purchasing process linkages between the requesters
(employees) and suppliers, enabled by restructuring the way organizations practice
traditional procurement activities like supplier selection, contact negotiation, price bidding,
supplier relations, and others.

Provide direct and efficient procurement linkages between business customers


(buyers) and suppliers,enabled by a group of internet-networked models
Many-to-one (company-centric) relationships are based on a single buyers initiative
and organized by several buying organizations

There are four main types of supply- side e-commerce (e-procurement) models:

E-sourcing is the use of Web-based applications, decision-support tools, and


associated services to identify, evaluate, negotiate, and configure purchases and
supplier relationships that will effectively support supply chain and other business
operations.
o Provides a variety of value-added elements to companies procurement
processes like promoting souring best practices and increasing the efficiency
of sourcing processes
o Issue is that It remains a fragmented, labour-intensive and lengthy process
Electronic reverse auction (e-RA) is one of the major models of supply-side ecommerce, in which a buyer (buying organization) creates a request for quote (RFQ)
and invites potential suppliers to submit bids. Then, using the online auction process,
the buyer selects the lowest-price bidder (supplier) to negotiate the purchasing
contract
o Creates substantial value in terms of lowering purchase price and is among
the most cost-efficient e-commerce solutions for buyers.
o Drawbacks: potentially expensive, specifically for small- and mid-size
companies and focus on price only lowers -opportunities to differentiate
between suppliers.
E-procurement with electronic catalogues is the purposeful activity of purchasing
materials and other resources online utilizing electronic catalogues

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o Value creation (benefits): lowering the procure-to-order cycle time and cost,
reducing prices of materials, and lowering maverick purchase
o Drawbacks: The e-procurement software may be expensive for small and
mid-size companies and would require a lengthy implementation process.
Electronic exchange includes a variety of sellers that provide their supplier
catalogues to perspective customers and buyers use the online exchange for
sourcing to locate perspective suppliers

The main difference between demand side and supply side model is that the supply-side ecommerce models do not generate profit, but rather reduce costs associated with
purchasing/ procurement activities.

Collaborative commerce or c-commerce is the use of Internet-based technologies that


enable companies to collaboratively plan, design, develop, and manage products and
services through their life cycle. Companies participating in collaborative commerce provide
new rules of engagement by sharing decisions, capabilities, and information with each
other.
Mobile commerce or m-commerce refers to commercial (buying and selling) business
models and applications carried out via a mobile devices such as cell phone or and
smartphones

Founders

Kunal Bahl & Rohit Bansal. Owned and Operated by Jasper


Infotech Pvt. Ltd.

eCommerce Drivers

Mobile and Internet for location-based marketing ,


Personalization and Customization to meet the needs of each
customer, User friendly shopping experience, Easy
accessibility and availability, Wide range of products,
Competitive price through offers and discounts

Started in

2010

Headquarters

New Delhi, India

Business Model

Online Market Place

Revenue Model of

Pricing, Packaging, Shipping, VAS etc. Selling goods it stocked

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eCommerce Industry
Comprise of

to consumers at prices lower than traditional brick-andmortar stores. Working with min. profit and gaining from
economic of scale is how it works. Selling Inhouse branded
services and products to customers.

Size of the Market Place

No of Sellers - 50000
Unique Visitors per day - 15mn(Oct'14)
Registered Users - 25mn
Product Categories - 24
Products Listed(Catalog) - 5mn
Fulfillment Centres - 40
Total Sales FY 12-13 - $330mn

Financial Scenario

1) Recently raised funds from Tata


2) Market Valuation - $1bn
3) $340bn funds raised in 5 rounds since its launch

Top Investors

Nexus Partners, Bessemer Patners, eBay, Indo-US Venture


Partners, Intel Capital, Kalaari Capital, Saama Capital

VAS

Same Day Express Delivery, Cash on Delivery, SD Cash, 7 day


return policy, 100% money back guarantee, Order Tracking,

Inhouse
Products/Service

1) TrustPay - Buyer/Seller Online Protection Service


2) Snapdeal Express - same day delivery
3) Safeship - Logistics for Sellers
4) SmartFeed - Personal Shopping Guide
5) Courier Service delivery method

Payment Options

1) Internet Banking (Tie up with 22 banks)


2) EMI (HDFC, Citi bank credit card) min. value of Rs.3000/3) Cash on Delivery (on certain products only)
4) Credit card/Debit card - Visa, Master Card
5) SD cash
6) Mobile payment

Sales Promotion
Techniques

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


referal reward system, Savings Day

Advertising budget 201415


Rs. 40-50cr
Ad Agencies

FCB Ulka

Digital Marketing

1) Building Brand equity

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Startegy Focus

2) Increase Repeat Purchases


3) New Customer acquisition
4) Providing unique online service

Website Rank

Google Page Rank - 5/10


Alexa Website world Rank - #265
Daily Page Views - 4.2mn

SEO

Load Speed - 2.8 sec


Backlinks - 3923
User Interface - very Good
Alexa Site Navigation Rating - 4.7/5
Keywords - Snapdeal, Online Shopping, Buy books online,
online book store, online shopping India, online shopping
website, online shopping store
Organic SEO Rank - 6 or 7

Consumer Search Trends


of Past 12 Months
(Google) Part1

Web Search - 36
Image Search -34
News Search - 15
YouTube Search 0

Consumer Search Trends


of Past 12 Months
(Google) Part2

Top Web Searches - Mizoram, Tripura, Meghlaya, Goa


Top Image Searches -Tamilnadu, Gujarat, UP, WB
Top News Searches - Tamilnadu, Delhi, karnataka, Gujarat
YouTube NA

Google Adwords

PPC Search ad- Category based text ads


Display - Product's offers based ad images
Gmail - Content/Topic based Text ads
Keyword Targeted - All category based keywords
Paid ad rank - 8 or 9
Overall Paid Search Performance - Below Average

Re marketing

Remarketing activates if customer visits site and clicks any


display/search ad

Successgul Brand
Campaigns

"Bachatey Raho", "Yam - Dude", "Shake Karo aur Save Karo",


"Big Savings Day"

TV Commercial Strategy
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1) Objective is to build brand and increase brand recall value


2) Targeting biggest event of the year Big Boss 8 as lead
sponsor in a deal of Rs35cr to penetrate into tier 2 market.
3) 50 ad films, 30 celebs, 85 national and regional channels

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until Diwali to make history in sales nos.


4) Mobile shopping app download TV ad aiming at shopping at
anytime anywhere besides offering monetary savings.
5) use of celebrity in tv ad to convey strong message of
Savings in your hands which goes inline with its slogan
"Bachatey Raho"
6) Launching campiagn i.e. biggest sale of the year to gain
maximum volume share

Facebook Strategy

1) only one official Facebook Page


2) Likes - 2.4mn
3) Facebook ads with image and into title
4) Product launch based cover photos
5) Updates on new products and offers
6) Avg posts per day - 1 or 2
7) Response on customer complaint is above average
8) Runing contest to ensure user engagement
9) Avg response rate per post - 40-45
10) Focus is on customer engagement and service
11) Social Listening/Emotional Connect - Above Average
12) Recently they launched campaign called Selfie with
Snapdeal
13) SuperSavingsDay campaign for user engagement

Twitter Strategy

Engagement Based Marketing


1) Followers - 54,000
2) Updates on new product based contest besides offers and
discounts using interactive title and images
3) Other Inhhouse Products/Services focused twitter channel
4) Avg. 6-7 tweets on product/contenst based per day
5) Launched Mega Campaign on Micromax Canvas Nitro
6) 24*7 customer service channel - Snapdeal_Help
7) Real time connect
8) response on customer query is on real time
9) Focus is on customer service and engagement
10) Social Listening/Emotional Connect - Good

Linkedin Strategy

1) update on company info, news, events, culture, technology,


hiring updates via posts, video, image ads
2) Followers - 22,000
3) Interaction with followers is zero

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Youtube Strategy

1) Exclusive channel on youtube


2) Subscribers Base- 1500
3) Total Video views - 3.8mn
4) Service/Product launch/Brand Promotion specific video
5) Good Partcipation from viewers on Snapdeal channel
platform
6) Engagement/partcipation with viewers is lacking

Pinterest Strategy

1) Followers - 750
2) Teme based 55 boards i.e. Nail art, DIY, Excl offers,
perfumes, watchubuy, worth a read etc.
3) Each Pin is redirected to its official webpage
4) Each board and image is very appealing

Google+ Strategy

1) Followers - 6,37,000
2) 1 or 2 category based Posts everyday.
3) Less focus on Deals/offer specific posts
4) Category/Product feature based posts with attractive image
ads
4) Follower engagement is area of improvement

Content Marketing
Strategy

1) It has its own official blog page(http://blog.snapdeal.com/)


2) Blog posts on "how to"on categories i.e.fashion, home,
travel, gadgets, health, entertainment etc.
3) PR release page also exists
4) PR release about company info, events, exclusive
product/service updates

Integrated Channel
Across social media
platforms

1) No of offers post varies across social platforms


2) No of post per day per platform also varies
3) quality of experience management/query response /service
also varies across all platforms.
4) Level of engagement with users/followers also varies across
platforms

Mobile Marketing
Strategy
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1) Mobile optimized website is available


2) Mobile app on all platforms(iOS, Android, Windows)
3) 1mn downloads, 4.2 rating, doesn't reply to negative
reviews
3) 18% sales via mobile
4) Exclusive Cashback offers for shopping on mobile app
5) Campaigns - Shake Karo aur save Karo

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6) Product offers, Order Tracking, Seamless experience


Secure payments are mobile apps specific features
7) mobile website - m.snapdeal.com

Affiliate Marketing
Strategy

1) Earn upto 20% for each purchase via content site and upto
12% for each purchase via shopping site
2) Payment via EFT options
3) Referral Payout for each month/category is communicated
4) Payments made 60days after the month of sale
5) various reports are released to help Affiliates
6) very transparent and accurate program

Brand Association and


Acquisition

1) Grabbon.com, esportsbuy.com, Shopo.in, Doozton.com


2) Tie ups for exclusive electronic launches i.e. Micromax
Canvas Nitro, Micromax LED TV, Karbbon mobile, Kriya
Jewellery, Intex mobile
3) Recently, company has tied up with Karbon for exlcusive
launch of their Android one based low cost phone
Hitting the right spot!
believe in doing things the BIG way and exposing it to the
wide audience. Buzz and hit the right spot describes their first
marketing strategy.
Gul Panag
Snapdeal created a lot of excitement the last Valentines Day
with an innovative Date with Me-Gul Panag campaign.
Owning the space

Other Marketing
Strategies

Snapdeals next big thing is to hit the outdoors. This year the
team came up with a massive Snapdeal banner which stands
imprinted on a building in Gurgaons-DLF Cyber City.

Acquisitions:
June 2011

Bangalore-based group buying site

Grabbon.com.

April 2012

an online sports goods retailer

esportsbuy.com

May 2013

an online marketplace for Indian handicrafts Shopo.in

April 2014

fashion products discovery site

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Doozton.com

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Dec 2014

gifting recommendation site

Wishpicker.com

Jan 2015

product comparison website

Smartprix.com

Feb 2015

luxury fashion products discovery site

Exclusively.in

March 2015

20% stake in

Gojavas.com

March 2015

ecommerce management software

Unicommerce.com

March 2015

a digital platform for financial products

RupeePower.com

April 2015

mobile-payments company

FreeCharge.com

STP

Segmentation
Demographic segmentation

Teens and young adults are grouped together into one segment. People in the
age group of 16 to 30 years typically forms this segment.
These people are either college students or people who have recently started
earning.
People having moderate to high family income are segmented together.

Geographic segmentation

Indian urban class


Psychographic segmentation
People in upper middle class

Behavioural segmentation

Internet savvy users


People who are not afraid of online shopping
People who love to get discounts
People who want to try new products or services

Targeting

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Snapdeal focuses on mass online marketing but uses customer history to give a more
personalized experience

Positioning
Snapdeal is currently positioned as best advertising
and discount platform in the online Indian market. For
product and service providers it acts as a great
advertising platform and for consumers it acts as a
low price online market.
Snapdeal is trying to reposition itself with greater
focus on quality. All the products showcased on the
website are genuine. Each and every product is
quality checked before being delivered to the
customers.

SWOT Analysis
1. Constant innovations and good branding
2. Vast network of retailers across nation
3. Excellent service through convenient processes
4. Wide range of deals and transactions to choose from
5. Lots of awards and recognition as best startups, ecommerce etc

Strength

1.Services not available in all cities


Weakness

2.Dependence on internet only

Opportunity

1. The markets devoid of internet


2.Customers reluctant in shopping online can be persuaded
3.Partnerships with bigger corporate houses for bulk selling

Threats

1. Can be subjected to frauds


2. Risk of being involved into selling of illegal entities
3. Newly emerging competitive online shopping portals

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Founders

Sachin Banssal & Binny Bansal. Owned by Singapore based


holding company

eCommerce Drivers

Mobile and Internet for location-based marketing ,


Personalization and Customization to meet the needs of each
customer, User friendly shopping experience, Easy
accessibility and availability, Wide range of products,
Competitive price through offers and discounts

Started in

2007

Headquarters

Bangalore, India

Business Model

Online Inventory and Market Place

Revenue Model of
eCommerce Industry
Comprise of

Pricing, Packaging, Shipping, VAS etc. Selling goods it stocked


to consumers at prices lower than traditional brick-andmortar stores. Working with min. profit and gaining from
economic of scale is how it works. Selling Inhouse branded
services and products to customers.

Size of the Market Place

No of Sellers - 3000
Unique Visitors per month - 28mn(Oct'14)
Registered Users - 22mn
Product Categories - 24
Products Listed(Catalog) - 15mn
Total Sales FY12-13 - $1bn

Financial Scenario

1) Recently raised $1bn funding from investors


2) $1.7bn total funding raised since its launch 2007
2) Valuation - $5bn to $7bn

Top Investors

Naspers, Tiger Global Management LLC, Accel Partners,


Morgan Stanley Investment Management, GIC, ICONIQ, Sofina
and Vulcan, Dragoneer Investment

VAS

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30 day return policy, Delivery withini 2 days, cash on delivery,

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Free Shiping, Card Swipe on Delivery

Inhouse
Products/Service

1)Flipkart Flyte - Online Music Store


2) Flipkart DigiFlip- online digital products store
3) FlipkartFirst- Annual Subscription Service,Free shiping In a
day & same day guarantee, 24*7 service
4) PayZippy - Payment Gateway Solution
5) eKart - Logistics Service arm
6) Fliptomania - First Brick and Motor Store

Payment Options

1) Internet Banking (Tie up with 45 banks)


2) E-Gift Vouchers
3) Cash on Delivery (max order value of Rs 50,000)
4) Credit card swipe on delivery
5) Credit card/Debit card - Visa, Master Card
6) Wallet (Topped up, Store credit, Promotional balance)
7) mobile payment
8) EMI (HDFC, Citi, SBI, ICICI) min order value of Rs 4000/-

Sales Promotion
Techniques

Rebate, Deals, Refunds, Coupans, Qunatity Deals/gifts, Full


Finance @0%, Instant cashback

Advertising budget 201415


Rs. 75cr
Ad Agencies

Happy Cretive Services

Digital Marketing
Startegy Focus

1) Customer Service Information


2) Brand Building and Positioning
3) Customer Enagagement and acquisition
4) Trageting Youth

Website Rank

Google Page Rank - 6/10


Alexa Website world Rank - #109
Daily Page Views - 10.1mn

SEO

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Load Speed - 3 sec


Backlinks - 12214
User Interface - very Good
Alexa Site Navigation Rating - 4.5/5
Keywords - Flipkart, Online Shopping, Buy books online, online
book store, online shopping India, online shopping website,
online shopping store

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Organic SEO Rank 1

Consumer Search Trends


of Past 12 Months
(Google) Part1

Web Search -100


Image Search - 100
News Search - 70
YouTube Search 16

Consumer Search Trends


of Past 12 Months
(Google) Part2

Top Web Searches - Goa, Tripura, Mizoram, Meghlaya


Top Image Searches -Haryana, Tamilnadu, Karnataka, Kerala,
Top News Searches - Haryana, Odisha, kerala, karnataka,
Tamilnadu
Top YouTube Searches -karnataka,Maharashtra,Tamilnadu, AP

Google Adwords

PPC Search ad- Category based text ads


Display - Product's offers based ad images
Gmail - Content/Topic based Text ads
Keywords missing - Online books shopping, online shopping
are not showing top of page 1 rank for flipkart
Keyword Targeted - FLIPKART
Paid ad rank - 6 or 7
Overall Paid Search Performance - Good

Re marketing

Remarekting activates if customer visits site and clicks any


display/search ad

Successgul Brand
Campaigns

Fairy tale, No kidding, No worries, Shopping Ka Naya


Address and "Don't Shop, Flipkart It, "Shope Anytime,
Anywhere!" "Big Billion Day", "Singles Day"

TV Commercial Strategy

1) Objective is to build brand as a verb for shopping


2Target biggest event of the year i.e. IPL T20 2014
3) Total 29 ads released since 2011
4) Portraying kids as adults in ads gives higher brand recall
5) Ads targeted at Pan India shoppers of all generation
6) Ads aimed to popularise the brand as a verb
7) Testimonial based creative campaigns to demystify the fear
of online shopping experience
8) Mobile App download TV ad to increase mcommerce value
9) Luanching Campaign i.e. The Big Billion Day on 6th oct'14

Facebook Strategy
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1) Category Focused FB page i.e. books, gaming, fashion etc.


which is for building engagement with fans
2) Deals and Offers based FB page which is for customer

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acquisition
3) Likes - 3.3mn
4) Seasons to Festives to Birthday based cover photos
5) Avg. 3-4 posts per day basis
5) Updates on new products and customer quiries
6) response on customer complaint is average and
inconsistent
7) Running contests/gamification
8) Exclusive customer tab for support
9) Avg Response per Post - 40-50
10) Focus is on customer acquisition and engagement
11) Customer queries response is area of impro.
12) Social Listening/Emotional Connect - Average

Twitter Strategy

Engagement Based Marketing


1) Followers - 160K
2) Updates on new product, offers and discounts using
appealing videos and images
3) Tech@Flipkart execlusive channel on tech updates
4) Running Product/Service based contest like Flipkartfirst,
AcerA1onFlipkart
5) Avg. 2-3 product offer/launch based posts per day basis
6)FlipkartSupport Exclusive channel on quiries solution
7) Flipkart-Offers Special offers based channel
8) 24*7 customer service channel
9) Real time connect
10) response on customer query is on real time
11) Focus is on customer service, engagement and acquisition
12) Social Listening/Emotional Connect - Good

Linkedin Strategy

1) uodate on company info updates


2) Followers - 70K

Youtube Strategy

1) It does not have its own channel


2) It executes lots of youtube campaigns i.e. search page,
display ad, video ad etc.
3) Total 29 videos uploaded
4) Total Video Views -1.4mn

Pinterest Strategy

1) Pinterest startegy is very unclear


2) deals/offer based pinterest
3) 8 boards and 290 followers.

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Google+ Strategy

Theme Based Marketing


1) Followers - 500K
2) 1-2 Posts on per day bsis
3) Less focus on deals/offer
4) More focus on company updates, product launch update
besides Festive/season/customer mood based posts
5) focus is on more on engagement and brand building rather
customer acqusition
6) Interaction/engagement with follower is area of
improvement

Content Marketing
Strategy

1) It has its own official blog page(http://blog.flipkart.com/)


2) Blog page gives updates about company, Industry, tech etc.
3) It has its own unique tech focused blog too(http://techblog.flipkart.net/)
4) PR release page also exists
5) PR release about company info, events, exclusive
product/service updates

Integrated Channel
Across social media
platforms

1) No of offers post varies across social platforms


2) No of post per day per platform also varies
3) quality of experience management/query response /service
also varies across all platforms.
4) Level of engagement with users/followers also varies across
platforms

Mobile Marketing
Strategy

1) Mobile optimized website is available


2) Mobile app on all platforms(iOS, Android, Windows)
3) 5mn downloads, 4.3 rating, responding to each negative
review
4) 25% sales via mobile
5) Campaigns aiming towards Product launch, Acquisition,
Engagement and Retention
6) Mobile Remarketing does not seem to be part of strategy
7) Mobile weekend offers to target repeat purchases.

Affiliate Marketing
Stratetgy

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1) Earn upto 15% for each purchase on website


2) Payment via Gift Voucher and EFT options
3) Referral Payout for each month/category is communicated
4) Payments made 45days after the month of sale
5) offer lower commission compared to competition
6) various reports are released to help Affiliates

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7) lack of transperancy and inaccuracy in the program

Brand Association and


Acquisition

1) Flipkart + OLX Joint Marketing Campaign


2) Flipkart Acquired Myntra - Online Fashion Portal
3) Tie ups for Exclusive Electronic Launches i.e. Xiomi, MSI
gaming laptops, Samsung Galaxy S5 mini, MOTO G etc.
4) Recently, company has tied up with Spice for exlcusive
launch of thier Android one based low cost phone.

Acquisitions
2010:

WeRead

a social book discovery tool]

2011:

Mime360

a digital content platform company

2011:

Chakpak.com

a Bollywood news site that offers updates

2012:

Letsbuy.com

an Indian e-retailer in electronics

2014:

Myntra.com (20 bn)

2015:

AdiQuity

2015:

Appiterate.com

Bangalore-based global mobile network


a mobile marketing start-up as to strengthen its mobile

STP
MARKET SEGMENTATION and TARGET
GEOGRAPHIC SEGMENTATION

CATERS TO TIER 1, TIER 2 AND TIER 3 CITIES DEMOGRAPHIC SEGMENTATION


75% of online users between the age group of 15-34 years
Flipkart targets mainly the youth of the country

BEHAVIOURAL SEGMENTATION

Web friendly people


PSYCHOGRAPHIC SEGMENTATION
Flipkart concentrates on more Psychographic, which helps in deciding where to
display ads online

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They target online shoppers and people who dont online shop (thus TVC to
encourage them)

MARKET POSITIONING
Points of parity:

Easy locating of products


Competitive prices
No hassles of going to shops personally and shop for products
Availability of various products on one platform
Discount on purchases
Home delivery
Gifting services
Cash on delivery
Availability of liquor
Flipifts
Academic related books

Points of Difference:

Flipkart membership cards for premium customers


Vernacular language
Better user interface-one drag approach

Founders

Jeff Bezos

eCommerce Drivers

Mobile and Internet for location-based marketing ,


Personalization and Customization to meet the needs of each
customer, User friendly shopping experience, Easy
accessibility and availability, Wide range of products,
Competitive price through offers and discounts

Started in

2013

Headquarters

Seattle, Washington US

Business Model

Online Inventory and Market Place

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Revenue Model of
eCommerce Industry
Comprise of

Pricing, Packaging, Shipping, VAS etc. Selling goods it stocked


to consumers at prices lower than traditional brick-andmortar stores. Working with min. profit and gaining from
economic of scale is how it works. Selling Inhouse branded
services and products to customers.

Size of the Market Place

No of Sellers - 4000 plus


Unique Visitors per day - 18mn(Oct'14)
Registered Users - 18mn
Product Categories - 28
Products Listed(Catalog) - 17mn
Total Sales FY 12-13

Financial Scenario

1) Recently announced $2bn investment


2) Market Cap - $148bn
3) Global Annual Revenue - $75bn

Top Investors

Capital world investors, vanguard group inc, Price T Row


assoc, Capital research global investors, State Street Corp

VAS

Free return pickup, Guaranteed 1 day delivery, cash on


delivery, Gift Wrap, Fulfilled By Aamzon (Free shipping), AtoZ
Guarantee, Delivery Tracking to the doorstep,

Inhouse
Products/Service

1) Amazon Pick up Service


2) Amazon Studios - online social movie studio
3) Amazon Kindle - eBook, digital service
4) Klickpay - Amazon's preferred payment solution
5) Amazon Prime($99/year) - Prime membership service,
6) Amazon fulfillment centres - fulfilled by amazon/seller
7) AmazonBasics - amazon branded electonic products
8) Amazon Cloud Drive - Cloud computing
9) Amazon Instant Video - Video on demand service
10) Amazon web services - collection of web services giving
cloud computing platform
11) Amazon MP3 - online music store
12) Amazon appstore - interactive venue for developers and
buyers
13) Amazon Cloud Player - sync music and playlists

Payment Options

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1) Internet Banking (Tie up with 22 banks)


2) EMI (HDFC, ICICI, Citi bank credit catd) min. value of
Rs.3000/-

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3) Cash on Delivery (max order value of Rs 50,000)


4) Credit card/Debit card - Visa, Master Card
5) Mobile payment
Sales Promotion
Techniques

Deals, Coupans, Rebate, Qunatity Deals/gifts,

Advertising budget 201415


Rs. 100-150cr
Ad Agencies

Taproot Inida, Initiative Media

Digital Marketing
Startegy Focus

1) Increase brand reach to Tier II and Tier III cities


2) Communicate Brand promises
3) Offering unique and global service
4) Interactive and one class above Experience

Website Rank

Google Page Rank - 8/10


Alexa Website world Rank - #221
Daily Page Views - 5mn

SEO

Load Speed - 2.2 sec


Backlinks - 6562
User Interface - very Good
Alexa Site Navigation Rating - 4.5/5
Keywords - Amazon, Online Shopping, Buy books online,
online book store, online shopping India, online shopping
website, online shopping store
Organic SEO Rank - 4 or 5

Consumer Search Trends


of Past 12 Months
(Google) Part1

Web Search - 32
Image Search - 45
News Search -17
YouTube Search 35

Consumer Search Trends


of Past 12 Months
(Google) Part2

Top Web Searches - Goa, Tripura, Mizoram, Manipur


Top Image Searches -Kerala, Karnataka, Tamilnadu,WB, AP
Top News Searches - Haryana, kerala, karnataka,
Tamilnadu,AP
Top YouTube Searches - karnataka, Tamilnadu, AP, WB, Kerala

Google Adwords

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PPC Search ad- Category/Product based text ads


Display - Product's offers based ad images
Gmail - Content/Topic based Text ads

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Keyword Targeted - All products/category based keywords


Paid ad rank - 1 or 2
Overall Paid Search Performance excellent

Re marketing

Remarekting activates if customer visits site and clicks any


display/search ad

Successgul Brand
Campaigns

Service specific Campaigns i.e. Gigantic Amazon Box,


Guaranteed 1 Day Delivery, Easy Return Policy,

TV Commercial Strategy

1) Objective is to Introduce brand and connect with an


audience
2) Target biggest event of the year i.e. IPL T20 2014 to
increase amazon brand awareness.
3) Ads targeted to offline shoppers who dont use internet
4) Ads aimed at increasing awareness of their VAS and
products
5) Creative ad depicting chemistry of husband and wife
6) Ad of guaranteed 1 day service depicting quick family
solution
7) Drive the purchase using preemtive occasions

Facebook Strategy

1) only one official Facebook Page


2) Likes - 3.6mn
3) Interactive questions based Facebook ads
4) Seasons to Festives to Product launch based cover photos
5) Updates on new products and offers
6) Avg posts per day - 3 or 4
7) Response on customer complaint is below average
8) Runing contest to ensure user engagement
9) Avg response rate per post - 20-25
10) Focus is on customer engagement
11) Customer Service is huge area of improvement
12) Social Listening/Emotional Connect - Below Average

Twitter Strategy
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Engagement Based Marketing


1) Followers - 23K
2) Updates on new product, offers and discounts using
interactive title, good quality videos and images
3) Other In-house Products/Services focused twitter channel
i.e. Amazon Cloud Drive, Amazon Prime, Amazon Music etc.
5) Avg. 4-5 product offer/launch based posts per day basis
8) 24*7 customer service channel - Amazon Help

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9) Real time connect


10) response on customer query is on real time
11) Focus is on customer service and engagement
12) Social Listening/Emotional Connect Good

LinkedIn Strategy

1) update on company info, news, technology updates


2) Followers - 860K
3) Interaction with followers is zero

YouTube Strategy

1) Exclusive channel on YouTube


2) Subscribers Base- 37K
3) Total Video Views - 24mn
4) Other channels i.e. FBA by Amazon, Amazon Kindle,
AmazonFashion, AmazonWebServices
5) Service/Product/Brand/Performace specific video
6) Good Partcipation from viewers on Amazon channel
platform

Pinterest Strategy

1) Followers - 8.5K
2) Theme based 23 boards i.e. lifestyle, tech, gadget, party
3) Each Pin is redirected to its official webpage
4) Each board and image is very appealing

Google+ Strategy

1) Followers - 5.9K
2) 1 Posts on fortnightly basis
3) Deals/offer specific posts
4) The whole strategy is lacking
5) Interaction and participation level is very poor
1) PR Release page exists
2) PR release about company info, events, exclusive
product/service updates

Content Marketing
Strategy
Integrated Channel
Across social media
platforms

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3) Amazon has various blog pages i.e. Amazon Associates blog,


Amazon web services

1) No of offers post varies across social platforms


2) No of post per day per platform also varies
3) quality of experience management/query response /service

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also varies across all platforms.


4) Level of engagement with users/followers also varies across
platforms
1) Mobile optimized website is available
2) Mobile app on all platforms(iOS, Android)
3) 20% sales via mobile
4) Inbound Targeted Marketing
5) Campaigns - Product launch, Engagement and Retention
6) Mob App Distribution Portal

Mobile Marketing
Strategy

7) Product offers, Order Tracking, Reviews,


Recommendations, Search scaning, Secure payments are
mobile apps specific features
1) Earn upto 20% for each purchase on website
2) Payment via EFT options
3) Referral Payout for each month/category is communicated
4) Payments made 60days after the month of sale
5) offer higher commission compared to competition
6) various reports are released to help Affiliates

Affiliate Marketing
Straetgy

7) very transparent and accurate program


8) Amazon Associates Mobile Policy is in place
1) Junglee.com, audible.com,zappos.com, fabric.com,
askville.com, lovefilm.com, dpreview.com, lexcycle.com,
pets.com, diapers.com
2) Tie ups for Exclusive Electronic Launches i.e. Lenovo tablets,
Microsoft Entertainment products

Brand Association and


Acquisition

3) Recently, company has tied up with Miromax for exclusive


launch of Android one based low cost phone.

E-mail Marketing

1) One promotional mail in every 2-3 days

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2) Emails with subject line is not that appealing


3) All categories offers in one mail
4) Email ad/text image quality is average
5) Product launch and deals based email
6) Deals, upto % off, flat % off
7) End of season sale, festival sale, season based sale

STP
Segmentation
The main strategies that a firm can use to segment there market include;

Psychographic segmentation focuses on classifying customers according to their


values and lifestyles.
Geographical segmentation entails the classification of customers according to the
geographical locations.
Demographic segmentation entails the classification of customers according to their
demographic characteristics such as, nationality, gender, age, religion, education,
income, family size and many other characteristics.
Behavioural segmentation entails the classification of customers according to their
behavioural aspects such as brand loyalty, price consciousness, value consciousness
and readiness to buy

Targeting
Targeting strategies are classified into two main categories:

Undifferentiated marketing entails channels the same marketing campaigns to the


entire market and is applicable in situations where is difficult to distinguish the
market segments
Differentiated marketing entails tailoring the marketing campaigns according to the
characteristics of the market segments. This means that Amazon will channel varying
marketing campaigns to different market segments and may also focus on multiple
segments or a single segment

Positioning
There are two main strategies for positioning a company within the market.
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Cost leadership entail positioning the company by promoting operational efficiency.


Reducing cost enables these firms offer products at low prices thus attracting a large
volume of customers
Differentiation entails positioning a firm by adding unique attributes to the firms
products. It focuses on adding value to the companys offer so as to make it more
appealing than those of competitors. The firm positions itself by meeting the
customers needs in a unique way

Founders

Sandeep Agarwal and Sanjay Sethi

eCommerce Drivers

An online marketplace and has announced the launch of its


end-to-end advertising and branding roadmap to gain top-ofthe-mind recall in the Indian e-commerce segment.

Started in

July 2011

Headquarters

Gurgaon, India

Business Model

Online Inventory and Market Place

Revenue Model of
eCommerce Industry
Comprise of

Attraction and a very well-developed marketplace ecosystem,


it also has an unmatchable cost advantage and rapidly
improving

Size of the Market Place

The brand has already carved a strong niche for itself in the
Indian e-tailing space with over 65,000 merchants powering
an extensive selection of 5.3 million products across 3000
listing categories.

Top Investors

Helion Venture Partners and Nexus Venture Partners

STP
MARKET SEGMENTATION and TARGET

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Geographic Segmentation
Caters to tier 2 and tier 3 cities demographic segmentation
75% of online users between the age group of 15-34 years
Behavioural Segmentation
Web friendly people
POSITIONING Great shopping experience for the masses and ample choice to customers in
its products varieties at wholesale rates.

SWOT Analysis:
1. It has 7,500 plus national and international brands.
2.A large sellers base comprising of 75,000 plus sellers.
3. It lists 9,000,000 products across 4000 plus categories.
4. Products are shipped to 12,000 plus cities.
5. Great offering of EMI plans for price sensitive customers
6. Loyalty system in the form of Clues Bucks.

Strength

Weakness

Opportunity

Threats

7. Numerous prestigious awards are won by it like Red Herring


Asia Top 100, Best eRetailer Award etc.
8. MOU signed with India Post, wide distribution network of India
Post can be leveraged.
9. Great marketing initiatives like the Make in India campaign,
Diwali Flea Market, ShopClues Factory Outlet etc
10. Received multiple rounds of funding. Investors include Helion
Venture Partners, Tiger Global etc
1. Relatively less brand visibility in metros in comparison to its
strong competitors.
2. Limited market share growth due to intense competition
1. Expansion to other countries
2. Heavy promotion to capture the rising affluent and internet
savvy population in tier 2 and 3 cities.
3. Expansion to other product categories like fresh produce.
4. Acquisition of ecommerce portal like yepme or zovi to
strengthen their positioning.
5. Sale of private labels.
1.Increased competition from ecommerce giants like amazon,
flipkart etc
2. Heavy discounts offered by offline stores like BigBazaar etc.

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Mobile Wallets
The prepaid payment instruments that can be issued in the country are classified under the four
categories viz. (i) Closed system payment instruments (ii) Semi-Closed system payment instruments
(iii) Semi-Open system payment instruments and (iv) Open system payment instruments.

Closed System Payment Instruments: These are payment instruments generally issued by business
establishments for use at their respective establishment only. These instruments do not permit cash
withdrawal or redemption. Example - Freecharge credit, Ola money etc.
Semi-Closed System Payment Instruments: These are payment instruments which are redeemable
at a group of clearly identified merchant locations/ establishments which contract specifically with
the issuer to accept the payment instrument. These instruments do not permit cash withdrawal or
redemption by the holder. Example - Paytm
Semi-open System Payment Instruments: These are payment instruments which can be used for
purchase of goods and services at any card accepting merchant locations (Point of sale terminals).
These instruments do not permit cash withdrawal or redemption by the holder. Example - several
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private label cards issued by merchants.
Open System Payment Instruments: These are payment instruments which can be used for
purchase of goods and services and also permit cash withdrawal at ATMs. Example - Almost every
Visa, MasterCard or Rupay card issued in India.
Mobile Prepaid Instruments: The prepaid talk time issued by mobile service providers. This value of
talk time can also be used for purchase of 'value added service' from the mobile service provider or
third-party service providers.

What are payment banks?


As per World Bank estimates, only 35% of the Indian population has accounts with financial
institutions. To service the remaining population, the RBI came out with two new banking categories
called small finance banks and payment banks.
Payment banks are meant for simple banking transactions. These institutions are neither allowed to
lend or accept term deposits nor can customers keep more than R1 lakh in such accounts. Such
payment banks can issue debit cards and offer services like remittances and utility bill payments.
They can also distribute simple financial products like mutual funds and insurance. Individuals can
use the payment bank account to make daily or monthly cash transactions either through debit
cards or through mobiles. This can also help guard against debit card fraud since one can keep a
smaller balance in accounts.
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Paytm is an Indian e-commerce shopping website launched in 2010, owned by One97


Communications which initially focused on Mobile and DTH Recharging. The company is
headquartered in Noida, India. It gradually provided recharging and bill payment of various portals
including electricity bills, gas bills, as well as telephone bills. Paytm entered India's e-commerce
market in 2014, providing facilities and products similar to businesses such as Flipkart, Amazon and
Snapdeal. In 2015, it added booking bus travel.
Paytm, which has an annualised transaction value of $600 million, is currently funded by SAIF
Partners, Intel Capital, Sapphire Ventures and Silicon Valley Bank. In February, the Alibaba-backed
Ant Financial Services Group pumped $575 million in order to acquire a 25 percent stake in One97. If
that wasnt enough, March saw an undisclosed amount of funding going to Paytm from Ratan Tata.
In the same month, the company crossed a Gross Merchandise Value of $1 billion, with a mere 15
per cent of customers choosing the Cash on Delivery (COD) option.
After reporting a 350 per cent growth between 2012 and 2013, Paytm became one of the largest
digital commerce companies in India in 2014.
It already has more users than the total number of credit cards issued in India, and is the fastestgrowing mobile wallet service. It claims to have crossed 100 million users in the country, carrying out
75 million transactions every month. However, the number of active users, and number of
transactions made by them every week or month is not known.
Top Merchants at Paytm:
Uber, Bookmyshow, Dominos, Jabong, eBay, Food panda etc.

Revenue Models at Paytm:


Advertising revenue model: Paytm allows sellers to show their advertisements on Paytm webpages
and charges an amount for it.
Subscription revenue model: Allows different sellers to list their products on their websites and
Paytm charges an annual subscription fee from these sellers.
Advance payment model: Here Paytm gains interest on the money deposited in the wallet until it is
paid off to the seller
Transaction Revenue model: Paytm charges some transaction fee(~2 percent) both from sellers on
products sold and on money sent to bank account from the digital wallet (~4 percent).

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Some differentiating factors for Paytm :

Chat Messaging (Bargainig option)


Quick Payment
Safe and Secure payments
RBI approved digital wallet
45+ banks in net banking
1 lakh money transfer allowed

Paytm as Cash/Currency
Paytm started as a payment gateway facilitating mobile recharge has risen to become a zero
commission marketplace for multitude of products. It has been able to create a unique concept of
CASHBACK. In this concept, the customer pays the entire amount of the product and then the
cashback amount is credited to the account of the customer within 24 hrs. or on the date of
shipment of the product. The striking feature is that the cashback amount can be used across the
platform which uses Paytm as one of the payment options. Paytm has been very successful in
creating an ecosystem where its users can avail the use of cashback money. The cashback money
can be used to
1. Book bus ticket
2. Book flight tickets on via.com
3. Book train tickets on irctc.com
4. Book movie tickets on bookmyshow.com
5. Book cabs on TaxiforSure and Uber
6. Buy products on paytm.com and Paytm app
7. Order food on app like Tinyowl
8. Book Hotels on sites like makemytrip.com

Small List of platforms where you can use the Paytm wallet

Dominos Pizza

Jabong

FabFurnish

Zovi

Bharat Matrimony

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Foodpanda

TastyKhana

JustEat

Haldirams

Archies

IndiaTime Shopping

Infibeam

It shall be able to close the loop when it facilitates the payment at kirana shops and payment of
taxes to businesses and individuals. This is almost like creating a parallel currency.
Promotional Campaigns:
In order to get more customers and encourage more transactions Paytm regularly comes up with
discounts, cashbacks and combinational offers.
Recent cashback offer was offered on Rakhi was This Rakhi Gift Your Sister Some Paytm Shagun And
This Rakhi Send Her Rs. 2000 &Get Rs. 100 Cashback.

Brand Campaigns:
Paytm had launched its brand campaign during the IPL, which aimed to reinforce its position as the
leader in the mobile commerce space. Paytm was an associate sponsor on Sony and also the official
partner of Mumbai Indians and had spent Rs 50 crore for this marketing campaign.
The campaign is led by TV and the thematic film tries to establish Paytm as the simpler, more
convenient solution to a significant number of slice of life, everyday situations.
The ad begins with a rakhi scene, in which a brother surprises his sister by transferring money in her
Paytm wallet after the ritual. Next comes the scene where a husband is in the middle of preparing a
dish for his wife by taking tips from a TV show, when suddenly the show stops as the DTH recharge
gets over. This is when his wife activates the recharge through Paytm and the cooking continues. A
homesick son, going to the war front, brings a smile on his mothers face by sending her a mobile
recharge through Paytm, making sure distance doesnt separate them. A passenger transfers money
into the Paytm wallet of his taxi driver as he doesnt have change, showing the convenience of
money transfer in a last minute situation. Lastly, the TVC ends with a lady bargaining while shopping
online and making the purchase at the price of her choice, which again is another crucial feature that
Paytm offers
The TVC aimed at blending Paytms transactional aspect with the real human emotions attached to
them and position Paytm as a new way of life.

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Recent News and Developments:


Indias mobile payment processing firm Paytm is splitting into two. Vijay Sharma the founder of
Paytm said that the payments business will be separated from the e-commerce wing, and will be
called Paytm Payment Bank Ltd. This is because RBI has made it mandatory to add Payment Banks
to the names of new initiates in order to differentiate them from legacy banks.
According to Vijay, the license equips Paytm with the third part of their business model,
concentrating around savings, with Buy and Pay being successfully integrated into their marketplace
and wallets. Moving forward, the consumers will get added incentives (like interests) to keep
balance in their wallets.
Following the same media report, the new entity will be registered in the next three months. One97
will hold a stake of less than 40 per cent, while the majority stake (51 per cent) will be going to Vijay.
The remaining stakes will be allotted to One97s subsidiary. This is in accordance with the RBIs
regulations, demanding that an Indian promoter should have a majority stake in the company.
Having a separate leadership team with a new CEO, the new company will hire 2000-2500 people in
two years.

Oyo Rooms is Indias largest branded network of hotels founded by Ritesh Agarwal. OYO Rooms
currently operates in 113 Indian cities including Delhi, Gurgaon, Mumbai, Bangalore, Hyderabad,
Goa, Chennai, Kolkata and others. OYO is present in major metros, regional hubs, leisure
destinations and pilgrimage towns. The company is backed investors like the Softbank Group,
Greenoaks Capital, Sequoia Capital and Lightspeed India.

Business Model:
OYO Rooms is an online aggregator of budget hotels. OYO Rooms partners with hotels with the aim
of standardization on various measures in each room including free Wi-Fi and breakfast, flat screen
TVs, spotless white bed linen of a certain thread count, branded toiletries, 6-inch shower heads, a
beverage tray and so on. The standards are audited every few days so that the customers are
assured a quality experience.
OYOs budget stays range from 999 ($16) to 4,000 rupees ($66). OYO provides property owners with
support such as quality standardized supplies and service training. OYO boasts of a 24x7 in-house
customer service centre.
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To make hotel booking convenient and seamless, Oyo Rooms has developed an app ecosystem
which includes all stakeholders, including customers, in-house staff and hotel owners.
OYO's traction and market coverage has swiftly increased thanks also because of being listed with
travel aggregators like Make MyTrip, Clear trip and hotels.com. The Hospitality industry segment
targeting small business travellers and budget tourists is eminently swift-cash, and that works in the
favour
of
OYO,
because
revenues
get
realized
quicker
too.

OYO doesn't own any of these properties, and instead, invests in marketing and management quality
improvement for the hotels under its fold. It's a win-win for OYO and the hotels, many of whom just
don't have the network, knowledge or the budget for smart marketing, and they run empty. OYO
helps them improve their yields. Oyo currently has 2500+ hotels offering standardized stay
experiences at an unmatched price.
It's not easy in India, where there are no standards being followed by class B and C hotels; where the
owners are not entirely professionally trained or oriented for the hospitality space, and where, it's
not easy to get money to improve your hotel. To OYO's credit, it seems to have created an
understandable
and
compelling
value
proposition
for
partner
hotels.

How is it different from Airbnb?


The two-year-old OYO is Uber-like and not an Airbnb imitator for several reasons. In India, the
problem of finding affordable accommodations is massive. The challenge is not discoverability,
which is what start-ups like Airbnb address. Rather it is the lack of predictability in hotel stay
experiences that Agarwal is tackling. Travelers are all too familiar with nightmarish encounters in
standalone hotels in India. Contrary to promises, guests arrive to ramshackle buildings, missing
signage, leaky washrooms, torn mattresses, unclean floors, sputtering air-conditioning, nonacceptance of credit cards and so on. OYO Rooms ensures a basic standard of room and here lies it
value.

Recent news and developments:

Currently, the company at is under the invest-and expand mode, and has attracted two
rounds of PE funding already.

There is a heady mix of competition in this segment with Zo rooms and Awesome Stays also
looking to scale up their business.

Madison Media Plus, a part of Madison Media Group, won media AOR for Oyo Rooms. The
account was won in a multi-agency pitch.

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Brand Campaigns:
Oyo Rooms majorly focuses on Digital Media to popularise its brand and connect to the customers. It
has its own blog where things like the top 5 food to eat in Delhi or the Old Delhi photography route
is covered to appeal for its customers. Major branding is done through hashtag campaigns to gain
popularity. Some of its campaigns are given below.
Fathers Day Campaign
OYO Rooms launched a campaign around Fathers Day to celebrate this relationship.
The film shows how a son (who is also a father now) all of a sudden sees his late father. To his
surprise, the father points him for not getting a gift on Fathers Day. Apologetic son gets emotional
and confesses on how much he always loved him. To the son's surprise, it turns out that it was his
own son disguised as his father seeking an occasion to express his love.
Independence Day Campaign
OYO Rooms, a branded network of hotels, has rolled out a digital film to support its social media
campaign #Azaadi4me in the lead up to the Independence Day on 15 August.
The film titled Jai Hind features Bollywood actors Manoj Bajpai and Raveena Tandon and has been
conceptualised by Boring Brands. The film, an official statement informed, is a tribute to Indias
Freedom Fighters.

Set in 2015 Mumbai, the film depicts an evening out of a regular couple. The couple, on a motorbike,
discuss what to have for dinner in celebration of the ladys birthday. They meet with an accident as a
car slams against them. The car comes to a halt as the lead couple lie on the road. Its driver, a
foreigner, opens the door only to curse Bloody Indian, before driving off. What transpires from
there on is an extreme take on what might have happened to the couple if India had not attained
independence. But the film pulls back to the present day, independent India, and plays out the
happy scenario before saluting freedom fighters who enabled Indias freedom.

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