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Mcart - Mobile Shopping Solution

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A look at how mobile is revolutionizing the retail game and how adoption will change the retail game forever.

A look at how mobile is revolutionizing the retail game and how adoption will change the retail game forever.

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    Mcart - Mobile Shopping Solution Mcart - Mobile Shopping Solution Document Transcript

    • m-Cart - A look at the future of shoppingThe purpose of this document is to show case an end to end solution for providing Mobile Commercein the retail industry.Naval Vithalani1/23/2011
    • m-Cart - A look into the future 2011TABLE OF CONTENTSSECTION 1. EXECUTIVE SUMMARY ....................................................................................... 4 1.1 Issue ............................................................................................................................. 5 1.2 Anticipated Outcomes.................................................................................................... 5 1.3 Recommendation .......................................................................................................... 5 1.4 Justification ................................................................................................................... 5 1.5 Assumptions.................................................................................................................. 5 1.6 Limitations ..................................................................................................................... 5SECTION 2. PROBLEM DEFINITION ....................................................................................... 6 2.1 Problem Statement ........................................................................................................ 7 2.2 Target customer and Constituent Environment .............................................................. 8 2.3 Current Technology Environment................................................................................... 8SECTION 3. SOLUTION OVERVIEW........................................................................................ 9 3.1 Software Description ....................................................................................................10 3.2 Goals and Objectives ...................................................................................................10 3.3 Performance Measures ................................................................................................10 3.4 Challenges to the solution ............................................................................................10SECTION 4. PROPOSED SOLUTION.......................................................................................11 4.1 Couch Shopping ..........................................................................................................12 4.2 Identifying Customer – Location Based Services ..........................................................13 4.3 Scan Product Barcodes ...............................................................................................14 4.4 Social Network.............................................................................................................15 4.5 Add products to the Shopping Carts and Checkouts .....................................................16 4.6 Recommend Products .................................................................................................16 2Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 2011 4.7 In Store Checkouts ......................................................................................................17 4.8 Self Checkouts ............................................................................................................18 4.9 Home Delivery Model...................................................................................................19 4.10 Pick up Area Model ....................................................................................................20 4.11 Payments ..................................................................................................................21SECTION 5. MARKETING STRATEGY ....................................................................................22 5.1 Introduction..................................................................................................................23 5.2 Splash and Exit Screens ..............................................................................................23 5.3 Product Recommendation............................................................................................23 5.4 Video Advertisements ..................................................................................................23 5.5 Advertisement Insertion ...............................................................................................23 6.1 Architecture Overview ..................................................................................................257 OPERATIONAL STRATEGY .............................................................................................268 FINANCIALS .....................................................................................................................269 CONCLUSION ...................................................................................................................27 9.1 Not Acting Is Not an Option ..........................................................................................2710 CONTACT AND LEGAL INFORMATION...........................................................................28 3Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 2011 SECTION 1. EXECUTIVE SUMMARY 4Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20111.1 IssueThe inability of retailers to tap into the ‘Impulse Buying’ of customers.1.2 Anticipated OutcomesThis project aims at providing our customers with a new way of using mobile telephones to shop fromthe comfort of their homes or in store. The approach is to give them the control of events. This alsohelps the businesses in intelligent assortments and lower operational costs.1.3 RecommendationWe’re proposing two types of software, a mobile application that runs on any java enabled telephone oran iPhone that instantly updates data to the central server and the server software that receives theinformation.1.4 JustificationThis project is the best in its kind, especially in the retail arena where the ever decreasing margins arethe biggest challenge to the retailer in a world of discount hunters.1.5 AssumptionsA customer who would like to buy products from a retailer or even view the recommendation or reviewsof a new product / service being introduced by the retailer. The idea is to tap into the impulse purchaseof the customers by providing them the option to shop from the comfort of their homes. The total costof transaction is reduced as fewer in store over heads are required for this business model.1.6 LimitationsThe major function of this software is provided by mobile devices. It would be better if the applicationwere to be run on newer smart phones but in order to tap into every segment of the market theproposed solution is in J2ME, Android and iOS. 5Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 2011 SECTION 2. PROBLEM DEFINITION 6Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20112.1 Problem StatementProfit as taught in any business school, is basically an outcome of trade between individuals whereinproducts and services are exchanged at a price. For any company to achieve growth and in turn growthere has be to a qualitative increase in profitability and margins.As the mobile phone becomes something more than just a communication device the future neverlooked better for the bricks and mortar retailer.With the advent of smart phones across the world and the newer version which could someday replacethe good old PC most of our time is taken up by this device.The opportunities are immense as retailers move to the mobile platform; this even gives them an opportunity to bypass the ecommerce platform. The new rule of the retail world is ‘Adapt or Perish’. It wasnt a long ago that we used to pay a premium to make a voice call and the only display you had on the handset was big enough to show you the number that was being dialed. But in the past decade, mobiles have gone from being a communication device to being an integral part of our lives from communication to location services to shopping.The next 3 years mobile is where most of the business dollars will be invested. This market presents aunique chance to businesses to get on the growth trajectory.When ecommerce started up, many people dismissed it as a passing fad saying who will buy goodsonline. Today some of the online retailers like Amazon are bigger than many of the traditional retailers.Similarly today mobile is providing another opportunity to the business world to get on to the growthtrajectory. The past few years have been tough across the world and people have by nature becomeDiscount Hunters.Retailers have harnessed the power of social media by providing consumers mobile apps that allowthem to scan a barcode with their phone’s camera and share product information with their friendsthrough social media. But all that sharing of information does not necessarily result in increased dollarcollections. At times a question also pops up is social media going the spam way. In 2yrs from today thelandscape will be quite different.The benefits of taking this approach are quiet and the rate at which the industry is changing it will not bea surprise when people just get tired of the likes and recommendations that social networks offer. Will itbe the next gen spam I don’t know but smells a wee bit like that hence the approach of this paper hasbeen to highlight how mobile will change the way we shop and not on the social side of things. 7Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20112.2 Target customer and Constituent EnvironmentEach stakeholder/customer is related to the solution as follows. Each line shows a customer and therelation to the projectStakeholders/Customers Description / ExamplesMulti format retailersDiscount retailers Wal-Mart, KmartSpecialty stores / Boutiques Walgreens,High end fashion labels Armani, YSL, LVMHBelow is a list of processes and/or services that would be modified or automated by this solutionProcesses/Services Description of Modifications/AutomationOrdering Customers can shop from the comforts of their homesOrder Processing Retailers can process customer orders more efficientlyProduct Information Customer, Manufacturers and Retailers can engage in product discussionsStore Inventory Retailers can reduce the cost of carrying inventory by servicing most orders straight from the Distribution Centers and achieve lower store shrinkageStore Loyalty Retailers can reduce the costs of running a loyalty program by taking advantage of the mobile phones. This helps in getting rid of expenses like card management etc.Store Payments Retailers can increase cash flow by issuing ‘Pre-Paid’ cards to the customers and accepting the same via a mobile payment. Hence keeping the costs of operations, fraud down and in turn getting interest free money.2.3 Current Technology EnvironmentToday retailers have successfully integrated the Point of Sale data with an ERP solution but are stillfacing challenges on how to use the data or how to get that extra percent of profit or how to tap intothe customer’ impulse buying.Retailers now have the ability to integrate very tightly with their consumers by sharing data. At the sametime, the POS store systems provide a comprehensive view of customer data, sales history, inventorymanagement and product availability.By linking these previously disconnected aspects of retail technology, devices and store systems can now“talk” to each other to easily identify customers their requirements, stock in hand as a result leading to amore well-rounded and efficient selling experience. 8Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 2011 SECTION 3. SOLUTION OVERVIEW 9Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20113.1 Software Description“mCart” is a software program that uses any J2ME, Android and iOS enabled mobile devices to instantlyprovide the customers with a shopping experience never experienced before.The program is composed of two parts: mCart Client which runs on any J2Me, Android and iOS enabledmobile telephone. mCart Server which runs in the data centre, this indentifies the customer’s handsetmake, delivers an appropriate client application, stores the ‘mCart’ information and integrates with ERP,Loyalty, Coupon Management, Payment system and Point of Sale systems. mCart is one application tomeet all the shopping needs of an individual customer.3.2 Goals and ObjectivesThe goals and objectives listed below support our business needsBusiness Goal/Objective DescriptionImpulse buying Tap into the impulse buying of customersUser friendly The mobile application presents the buyer with a simple to use 3 clicks buying option.Increase sales By tapping into the mobile commerce market, the business is opening up another channel to tap into.Share information Share accurate information with the customers and with the manufacturersPublish Information Retailers can tap into the active social network arena with customer sharing information about their buying, likes and dislikes.3.3 Performance MeasuresKey Process / Services Performance MeasuresEDGE / 3G Share information on ‘mCart’, ‘wish list’, reviews, track order status in seconds.Server The back end server is strong software that is capable of linking all the results of queries, record updates and integration.Loyalty Recording customer behavior even when they are not interacting with the Point of Sale systems.Point of Sale Sharing customer information with every touch points.3.4 Challenges to the solutionThe major challenge for the success of the proposed solution is the dependency on the mobile networkprocesses and/or services will be affected by the non availability of mobile network signal. 10Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 2011 SECTION 4. PROPOSED SOLUTION 11Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20114.1 Couch ShoppingSitting at home, customers can shop directly from their mobile phones. The customers get all thebenefits of shopping from their armchair similar to e-Commerce but it goes one step further, mobilegives them the all alluding mobility. The opportunity to walk around the house, sit in a pub or lie by thebeach the consumers can now shop without worrying about the extra power supply for the laptop ornet connectivity or without having to carry around one extra piece of bag all the time.Customers can either download an application that will have a preloaded catalogue or the applicationcan come with a basic product catalogue hierarchy where in once the user drills down to the categorythe relevant product details are downloaded. The benefit of doing this is that the user does not have towait forever for the application to be downloaded in the first instance. This is more based on therequest model. The customer can select the products, read the reviews of the product and also view the social networking information about the products. Once the customer is convinced about the product they can add it to their “m- Cart”. In case of home delivery or a collect at store model the customer can also specify their preferences. Customer can also create a wish list of products which over a period of time can be pre-populated with the products that are bought most of the time by the user. The wish list can also be used as the starting point for the ‘in-store’ shopping. The wish list can be used to transfer items from the wish list to the “m-Cart” Once the customer has added the products to the m- Cart, they can go to the check out for making the payments. Once the payment is made the order is transmitted from the mobile to the central server.A transaction ID is generated and the same is sent to the user. The user is also intimated about theexpected time of delivery by the central server. The cash memo is generated and pushed to the handsetfor records. Historical records can be pulled on request by the user giving a date range. 12Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20114.2 Identifying Customer – Location Based ServicesUsing the power of LBS, the retailer can entice customers by offering them information when they areclose to the store. The information can be about new product launches, promotions or events or caneven be mobile coupons that customers can redeem when they shop. The customer is identified the minute he/she walks into the store using LBS.The mobile up automatically pull s all the relevant promotion details and coupons for the customer oncehe or she enters the store or as a regular update of the application. Mobile Coupons are pushed to the customers as they enter the store.Another aspect of mobile based coupons is the benefit is offers in terms of special events like first timebuyer or if based on a predictive model the customer is identified as the most likely to go away from thestore to push a coupon to bring them back in.This also helps in reducing the costs involved in maintaining physical coupons and loyalty programs costless cause many of the costs are taken away. 13Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20114.3 Scan Product BarcodesWith the facility to scan a product bar code, the customer can be informed about the product benefits,reviews or even the promotions that are valid for that product.Customers can view product details while they are in the store by scanning the QR/Barcode of theproduct. While adding to a cart the customer can also be updated on the available quantity at that store. Customers scan a product barcode to check reviews and product information.QR Barcodes can be used for engaging the customers with a layer of gaming involved during theirshopping trips or in collaboration with some vendor run an information campaign or a lucky draw or aspecial promotion.This is the best point in the sales cycle to show the customer more information about the product likereviews from other users or even from their contacts on the various social networks. This creates thesense of ‘keeping up with the Joneses’. 14Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20114.4 Social NetworkToday the amount of information that is exchanged between the users and their connections is so hugethat at times social network becomes a major ‘spam’ for users and turns them off. How many timeshave we hidden posts from users either cause they are so frequent or have altogether hidden postsfrom a particular user? We’ve all done it.Hence the belief that in the next 2 years we will see users go off social network as they get tired of the‘spam’ effect of it and to maintain their privacy. The current social marketing as we know it today will be considered spam.Imagine a scenario wherein you walk into a store and scan a barcode for a product. It makes sense toprovide information only at that time – give the user an option saying ‘See what your connections sayabout it’. Only if the user wants to see what the connections have to say about the product search thedata warehouse to provide the information. It’s like if I don’t own a dog, what good is the informationon dog food to me?The way forward for social network marketing will not be round the clock information sharing, it will bewherein the users will ask for an option to view what their connections have said about a particularproduct or service. 15Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20114.5 Add products to the Shopping Carts and CheckoutsImagine walking into a store and browsing products whether they are pure home delivery products orOTC products. All you have to do scan the bar code of the products you want to buy as you walk alongthe shop floor and add the quantity while loading up your shopping cart. Add products to a shopping cartAnother feature of the application is to provide directions to the aisle, how many times we’ve roamedaround the super market lost trying to find out where the Scottish shortbread is stocked. Providinglocation is a very attractive feature for any store can provide.4.6 Recommend ProductsThe biggest lost opportunity to cross sell or up sell is when the customer chooses a product and adds tothe shopping trolley. If at that time the retailer can recommend products to the customer based onaffinity analysis it not only adds to the customer’s pleasant experience but also added to the ticketvalue. This also helps the business to move the customer up the value chain and can also be used to shiftconsumer behavior towards a particular brand - possibly own label or a particular new product.This approach helps to cross sell and up sell products to the consumers. 16Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20114.7 In Store CheckoutsA normal scenario is where the customer takes the trolley to the checkout and the cashier has to scaneach and every article. The cashier ends up spending close to 10 precious minutes scanning all the 100products from your trolley. These 10 minutes would have stopped some customers from walking awaywithout buying.Wouldn’t it be better if the only thing a cashier needed was the m-Cart ID, the cashier enters the cart IDat the point of sale. The point of sale in turn talks to the mobile server and requests the m-Cart. Thecentral server authenticates the request and sends the cart details with the product and quantitydetails.The only thing the cashier needs to do is take the payment from the customer thus reducing the billingprocess to seconds instead of minutes. Point of Sale retrieving the Shopping Cart details for billing.The approach also helps reducing costs for the retailers on two fronts - since billing only takes secondsinstead of minutes fewer cashiers can service more customers hence the requirement for cashiering isless. 17Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20114.8 Self CheckoutsSimilar to a manned checkout, the self checkouts can also reap the benefits of a mile based purchasing. Self checkoutOnce the shopping cart ID is entered, the store knows that this transaction belongs to a particular loyaltymember hence the need to scan or swipe a loyalty card is taken away. This works for either a mannedcheckout or a self checkout. 18Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20114.9 Home Delivery ModelThe approach works for the home delivery model as well, wherein the customer walks into a store andadds the products to the shopping cart. As the customer walks with his/her mobile phone, he / shekeeps on scanning barcodes and entering the required quantity against each one of them thus creatingan m-Cart.Once he/she is done with the product selection, they can checkout. Based on whether it’s a manned tillor a self checkout, the cart id is entered to retrieve the cart details and the payment is made.The benefit to the retailer is – reduced in store inventory as at any given time, the retailer needs todisplay only one unit of every product. This also reduces the costs in terms of the number of peoplerequired in the store to maintain all the aisles.This also helps reducing costs for the retailers since billing only takes seconds instead of minutes fewercashiers can service more customers hence the requirement for cashiering is less. Customers can scan products and add them to cart for home delivery 19Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20114.10 Pick up Area ModelThe approach works for the home delivery model as well, wherein the customer walks into a store andadds the products to the shopping cart. Now the customer walks with his/her mobile phone and keepson scanning barcodes and entering the required quantity against each one of them.Once he/she is done with the product selection, they can checkout. Based on whether it’s a manned tillor a self checkout, the cart id is entered to retrieve the cart details and the payment is made.Once the transaction is closed the same is transmitted to the packing bay for the products to be pickedup and packed. The customer is advised to proceed to the pickup bay and present his/her transactionreceipt to take delivery of the products that are ready and packed. The pickup area can be a drive in kindof facility there the car can be parked closer to the pickup area and goods loaded. Customers waiting to pick up their purchasesThe benefit to the retailer is – reduced in store inventory as at any given time, the retailer needs todisplay only one unit of every product. This also reduces the costs in terms of the number of peoplerequired in the store to maintain all the aisles.This also helps reducing costs for the retailers since billing only takes seconds instead of minutes fewercashiers can service more customers hence the requirement for cashiering is less. 20Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20114.11 PaymentsAll the payments are processed either using NFC or traditional Credit or Debit cards or using m-Wallet.Once the transaction is paid for, the data sent from the mobile application to central server / storeserver.Near Field Communication - a short-range high frequency wireless communication technology whichenables the exchange of data between devices.Mobile Wallet - The consumer uses the mobile billing option during checkout, the consumers mobileaccount is charged for the purchase.Mobile Web Payments - The consumer uses web pages displayed or additional applications downloadedand installed on the mobile phone to make a paymentOnline Wallet – Like Pre-paid cards, where customer ‘tops up’ their account before using it for making apayment. 21Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 2011 SECTION 5. MARKETING STRATEGY 22Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20115.1 IntroductionFor further information please contact Mr. Naval Vithalani.5.2 ScreensFor further information please contact Mr. Naval Vithalani.5.3 Product RecommendationFor further information please contact Mr. Naval Vithalani.5.4 Video AdvertisementsFor further information please contact Mr. Naval Vithalani.5.5 Advertisement InsertionFor further information please contact Mr. Naval Vithalani. 23Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 2011 SECTION 6. PROPOSED ARCHITECTURE 24Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20116.1 Architecture Overview Proposed Architecture 25Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20117 OPERATIONAL STRATEGYFor further information please contact Mr. Naval Vithalani.8 FINANCIALSFor further information please contact Mr. Naval Vithalani. 26Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 20119 CONCLUSION9.1 Not Acting Is Not an OptionAs the global economic environment gets difficult, retailers are going to be involved in a very viciousfight to gain the extra dollar out of the consumer’s pocket. This need to keep up with the customer’s andstreet expectation where the margin are decreasing a newer way have to be found to stay competitive.Retailers are under increasing pressure and any failure on their part can result in the losing out. Whilethe 1990s were where the retailers streamlined their businesses and moved online. The current growthin mobile technology has opened up a whole new world of opportunity.The benefits of taking this approach are quiet and the rate at which the industry is changing it will not bea surprise when people just get tired of the likes and recommendations that social networks offer. Will itbe the next gen spam I don’t know but smells a wee bit like that hence the approach of this paper hasbeen to highlight how mobile will change the way we shop and not on the social side of things.The options are very clear for the retailer – Adapt or Perish. 27Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120
    • m-Cart - A look into the future 201110 CONTACT AND LEGAL INFORMATIONThis document is the Property of Naval Vithalani and any use, reference, representation or citationwithout the written consent of the author is prohibited.The document is written to express Mr. Vithalani’ views on the current and the future trends in theMobile retail technology. The purpose of this document is to explore opportunities of working in theenterprise mobile applications arena.Email – tonaval@yahoo.comMobile – 0091-9962-531120 28Author - Naval VithalaniEmail – tonaval@yahoo.com M – 0091- 9962- 531- 120