Mahindra warroom daily maar cutting iimk-retail e commerce
TEAM: DAILY MAAR-CUTTING IIM KOZHIKODE RETAIL – E-COMMERCE STRATEGY CAMPUS FINALIST MAHESH KOPPAD ARNAB GUHA MALLIK ABHISEK PAUL MADANISH KANNAmaheshk15@iimk.ac.in email@example.com firstname.lastname@example.org email@example.com Ph:8943455233 Ph:8943994677 Ph:8943707444 Ph:8943053300 2nd Year 2nd Year 2nd Year 2nd Year 15/24 15/74 15/197 15/23
INTRODUCTIONIndian consumers are increasingly looking at shopping as an experience, not just a process ofacquiring necessary items. With our Mahindra’s into retail, they seek to provide our customers witha holistic experience that satisfies their desire for an enriching and pleasant experience as well asfor excellent products Mom and Me Beanstalk Mahindra Retails first venture, Mom & This is the companys second venture in theMe, brings Indian mothers a specialty store retail sectorwhere they can meet all their product and The store is designed to exude excitementservice needs and the element of fun, innate in children. In From pregnancy fashion to children’s keeping with the Mahindra philosophy of qualityapparel, from toys to baby and mothers’ products, customer focus and superiorwellness products, from strollers and car service, Beanstalk offers an overall experienceseats to children’s furniture of entertainment, enjoyment and learning Guidance and support one needs to Ensures that product range is assorted tonavigate pregnancy, infancy, and childhood include an entire range of toys to developconfidently various skills from a very early age Competitors
E-commerce industry in India Indian E-commerce industry has come a long way since Steep growth over last few yearsthe tumultuous days of dotcom bubble Floodgates were opened by online travel sites likeIRCTC and makemytrip.com which changed the wayIndians book travel tickets Rapidly increasing Internet user base and rising middleclass with disposable income has contributed to theflourishing of industry Secure online transaction environment, measures likeCash-on-delivery, focus on customer service hasmotivated Indian customers to place their trust in onlineshoppingOnline Shopping behaviour among Indians Market share of various categories
Online stores of physical retailers • Website acts as the sole front end of the respective player where customers can choose from online catalogue and place order. Overview • Telephonic sales channels are also established to augment sales • Revenue through online (sometimes inbound telephonic also) product salesBusiness Model & Target Segment • Internet savvy customers mostly in Tier I and Tier II cities • Scalability depends upon internet traffic growth rate and a change in consumer buying behavior Scalability • Existing set of low prices are helping to attract throng of customers and enabling E-tailers to scale up • Low investment needed in front end and hence able to offer lower prices and wider product variety Strengths • Provides ease and convenience of shopping from any location or at any time • Needs to have a robust backend to ensure timely delivery and service level Challenges • Managing return supply chain is a complex challenge for existing players • Online stores have to ensure safety and security of payments to abridge trust deficit existing in the mind of consumers
Leveraging online-offline model Mahindra Retail customers Customers visiting Customers visiting physical store virtual store• Look for complete shopping experience • Look for convenience, avoid crowds• Believe in feel and buy • Reduce purchasing time• Prefer face-to-face interaction with • Look for the best price and discounts sales personnel among competitors
Customers visiting physical stores Showrooming Mom & Me and Beanstalk stores should act as experience centers to let customers enjoy the buying experience To overcome the space constraints, Mahindra Retail can use the physical stores as showrooms for the e-commerce division The physical stores will have limited variants (colours, quantity) of a product to help retailer save the occupancy costs. The fast moving variants will have more stocks whereas the others will have very few stock Customers feel the product in the store and go online to purchase them. The online store will have an “endless aisle” i.e. greater product ranges and even the out-of stock material Rationale Mahindra retail stores will not need to stock large quantity of slow moving products, hence overcoming the space constraints in the shop and enjoy lower inventory cost. If an order comes, the order can be routed through the e-commerce channel from within the store. Customers like to touch and feel and try on the merchandise, but they also want that information that they get online. So the concept of showrooming caters to both the corporate and customer needs
ImplementationWi-Fi stores Mahindra Retail can provide Wi-Fi in their stores and make iPads available to customers to freely browse to comparison shop and order products online which are not available in store. The Ipads will consist of a Mahindra Retail App through which customers can visit the online store The app will be available for android, iOS and Windows. Such a move will make customer experience the online store as well as the app. A seamless integration will result in customers using the same in futureIn-store kiosksIn-store kiosks in malls allowing customers to search for out of stock products in Mom&Me andBeanstalk website Sometimes even the fast moving item runs out an the customer is asked to visit sometimes later which invariably results in a drop. Making the customer apply online then and there will create a good image in terms of service provided & the customer will be retained. Showrooming customer retention + better service+ more customer engagement loyal customer base
Customers visiting virtual store• In order to retain a better brand recall and ensure one-to one interaction with the company staff, it is important that customers also engage in the physical store• The social aspects of shopping also serve as natural governors on e-commerce Site to Store strategies Avail In-Store Pickup We can give an option for customers to place order online and pick up the order from the store The in-store pickup option can be put in the Mom&Me and Beanstalk ecommerce sites itself The customer needs to be notified as soon as the order is ready for pickup Since the store presumably does not have unlimited space to keep all the orders ready forever; customers are given a 3-to-5 day window to pick up The reduced transportation cost for Mahindra Retail can be passed on to the customer in the form of discounts for in-store pickup
Add the in-store pickup option in the ecommerce site along with COD and free shopping option Advantages for Customers: Advantages for Mahindra Retail: • Special discounts not available on home • Savings on transportation cost to delivery customer doorstep • Ease of pick up if the store is on the way • 3rd party logistic providers may not of workplace provide the same level of service and • Avoid dropped orders or missing out on commitment as Mahindra wants to offer. product delivery if customer is not at So in store pick ensures better customer home service is maintained
Increase store footfalls through Snapdeal coupons Mahindra Retail can have tie up with Snapdeal.com and give exclusive discounts to customers on slow moving products These discounts will be available only through Snapdeal.com Customer pays service charge to snapdeal.com and gets e-coupon with discount on Mom&Me and Beanstalk products. The customer walks in to the nearest Mahindra retail store and avails the discountRationale Snapdeal.com has better reach than the existing Mom&Me and Beanstalk online sites. Snapdeal ranks No.35 in terms of website traffic in India according to alexa traffic rankings Once the deal with Snapdeal goes live, Mom&Me and Beanstalk products will be flashed in their home page during the period of offer resulting in free marketing of Mahindra’s products Snapdeal.com will promote this deal by email blasting, sms, social media campaigning. The no of days the deal remains on the main landing page depends on the popularity of the deal; otherwise it shifts to the next page. Snapdeal.com can be used as a marketing channel for the launch of new products, year-end sales etc.
An example: Suppose a toy is of Increasing physical stores footfall through Snapdeal tie-upRs.250/-. The discount is 20%. Thecustomer pays Rs.20/- to snapdeal toget a voucher. He walks in with the MOM and Me andvoucher , pays 200/- to the dealer benastalk canand buys the toy Returns if display as many any, due to faulty products as it quality wants Customer Step 1: walks in, pays Products It is a flash sale and the money Listings hence we choose along with with detailed which products to vouchers descriptions put on sale Flash sale Address of resulting in select Rank in India (Website traffic) : 35 Selection free Mom&Me & with marketing in Beanstalk retail Inventory their website outlets given to commitment customers They will lets us know about the vouchers being bought. Snapdeal Taking monitors the Products Customers pay snapdeal sale Live and get the voucher
Also tie up with other deals websites like Mydala.com, Crazeal, DealsandYou.com, 99labels.com Our marketing strategy for youetc. All these websites provide extensive marketing which will be beneficial for mahindra retail.More traffic will be generated to their website as well as create awareness
Reinforcing model for leveraging physical stores + e-commerceCustomer Visiting Virtual Store Customers visit Customers get Customers visit Mom&Me snapdeal.com to avail vouchers/coupons and Beanstalk outlets to special discounts from snapdeal and avail offer other deal sites In-shop experience may compel customers to buy additional products If the product is out of Customer collects the stock, customer uses Customer goes to the products either at home iPad/Smartphone in the physical stores or in-store depending on store to place the order the option preferred online Customer Visiting Physical Store
New Categories to be added Increased Pester power of kids due to: 1. Working parents & increasing gap between growing children 2. The hurried-child syndrome and hyper parenting 3. Delayed or single parenthood; More pampering 4. Busy life-style 5. The “Ask able” parent; Friendly and complying 6. The “Alpha-pup” competition among parents PESTER POWER means keep products to lure kidsConsumer insights•India being a cricket frenzy nation, kids right from their childhood are influenced by sportspersonalities, consider them as idols and want to become like them•Parents urge children to join coaching classes on sports•Continuous use of sports products by boys & girls under age 9.•Display of sports equipment among peer group urges the kids to possess sports equipmentsProducts to be addedCricket bat, ball, Acquatic sports, Badminton, Football, Frisbie, Skipping rope, Table Tennis goods etc can beadded to both Mom&Me and Beanstalk stores. Sports jerseys can be added in Mom&me storesMom& Me store already sells boys and girlsfootwear and stationeries. The portfolio can beextended to offer all school related items as newcategory including school bags and water bottleswhich are not offered currently
Super hero combo Kids love to associate themselves with a super hero and when the things they use in daily life are associated to their super hero, there is higher chance of purchase A separate category called ‘Superhero’ can be added which will contain all products such as pillows, geometry box, mugs, Tshirts etc sorted by the names of superhero The most commonly recognized Indian superheros such as Chota Bheem, Hanuman, Bal Ganesh should be included along with spiderman, batman etc to better connect with the kids Health and Safety Equipments Digital thermometer: Best to get one that works both under the arm and rectally. A rectal temperature isbest when checking temperature in a newborn, for which even a mild fever can be dangerous, or any timeyou need a more accurate readingNasal aspirator:T o keep that little nose from getting plugged. New babies cant easily breathe throughtheir mouths, and itll be a while before you can say "blow!" Baby monitor: Crucial for letting you get things done around the house and yard without worries duringnaptime. Night light: Having a low light near where the baby sleeps helps you check on the baby during the night,and having one in the changing area allows for un-stimulating night-time changes.
Where should the Focus Lie Easy to use website, hassle Focused on user Great customer service free payment system experience• Great customer service has • The user interface should • Focus on having relevant been its hallmark. be sleek and easy to use. information on the• All focus on better • It should not be confusing website. service leads to greater • Change the existing • It should not be cluttered customer retention problems in the website INSIGHTS People are comfortable Emotional benefits spending upto 6k to 7k in • Saves time and • Selling products and online shopping Money • Sense of convenience Extra discounts in high • One stop shop satisfaction involvement products • Sense of being tech savvy are looked down upon as • Sense of being lesser quality Rational Benefits aware Actual Selling People feel online portal provides more product choices to choose from PRICING STRATEGY SHOULD BE UNIFORM ACROSS ALL CHANNELS Why buy online from Beanstalk and Mom and Me??
Website – Competitive ScenarioCharacteristic Mom and Me Beanstalk Mothercare LilliputURL ×Look and Feel ×Homepage on one screen × × ×Ease of use ×Return to homepageBroken links ×Useful external links ×Testimonials × ×Up-to-date × × ×FAQs × × ×Special offers and freebies ×Competitions and blogs × × ×Online advertisingRecommend a friend online × × × ×Intuitive URL × ×Contact detailResponse time to enquiries × ×Browser compatibilityOffers based on past buying history × × × ×Order tracking × ×Feedback possible? × We find that beanstalk website does not have many features and a lot of attention needs to be given to improve the customer experience for the e-commerce platform Mom and ME can provide FAQs and Blog writing forum for mothers to share their thoughts. All this increases the customer engagement of the site - more loyalty
Website - Observations2 different websites for Mom and Me, leading to unnecessary confusion as to which of them is the authentic one resulting in less order placement
Website - Observations Difficult for the customers to connect with the offerings of Mom and Me as well as Beanstalk Toy Shop they position themselves as products for pregnant mothers and newborn babies and kids, but they don’t portray any image of the actual users of their products (pregnant mothers or newborn babies, etc.) as compared to their competitors like Lilliput, Mothercare, etc. The photo of the babies and the children on the landing appeals to the affective component of attitude of the users, in this case the parents, as a result the connect is more
Website - Observations Website design is inappropriate - The basic homepage of Beanstalk should have contained tabs depicting the broad categories of products. Instead they have arranged the products on the basis of age- groups e.g. 0-1 yr, 1-2 yrs, 2-3 yrs, etc. which has led to too many narrow categories resulting in confusion.They could have mentioned the product categories here Broken links - Another shortcoming of Beanstalk e- commerce website is that there are broken links (the image file seems to be broken). This also portrays a negative image of the website.
Website - ObservationsAlthough there is provision for online help during ordering of products, however most of the times, itsin the offline mode and customers are asked to leave offline queries. This is not only the case with Momand Me, but also with Beanstalk website as well.An ideal strategy would be an online chat feature where customers can talk to a representative in caseof any problems. Such a feature would increase customer engagementThis feature should be integrated with the social media channels as well in form of an app on Facebook
Social Media - ObservationsBeanstalk’s official FB page has only 79 likes and is not displayed in the top 20 results when searchedfor Beanstalk in FB. The last post on Beanstalk’s FB page was more than a month back and notupdated as compared to Mom and Me’s official FB page which has >58000 likes and is also quiteregularly updated.
Website - ObservationsThere has been no information provided about Beanstalk on Mahindra Retail’s official website; only Mom and Me has been mentioned as Mahindra’s venture into the retail space
Marketing Strategy Inorganic marketing can be kicked in once the brand identity increasesPersonal Selling Competitive advantage can be based on Search Engine Optimization•Periodic newsletters Google Ad-words should also be used as a marketing tool to have a far reach in theSales Promotion online world Focus on Social media and its reach to•Discounts at intervals create awareness engagement•No loyalty Schemes loyalty. Can use Facebook as a marketingPublic Relations tool and take the help of Facebook ads•Focus on the welfare of the mother Online Advertising presence in various and the child sites where our target segment visit M-Advertisement along with Mobile AppsAdvertising to provide location based marketing as•TV well search based marketing•Newspaper Google Analytics + tying up with a social media Analytics partner•Social Media and Mobile Tying up with deal aggregators sites will create a lot of visibility and inexpensive marketing
Search Engine OptimizationBeanstalk’s official E-commerce website doesn’t appear in the top 20 Google search results. Thefirst related link is a news article “Mahindra & Mahindra unveils toy store Beanstalk in Bangalore“.It is only after repeated searches and different keywords that one can get to the website Some other site that occupies the first position
Search Engine OptimizationHigh Impact Search Queries for momandmeshop.in With the help of SEO technique, momandmeshop.com can be ranked in top search results of appropriate keywords. SEO operation can help locate the best search terms which will not only attract more visitors to our web site, but ensure that those visitors are Mom and Me loyalists. Some of the benefits of Search Engine Optimization are: Saves time and MoneySearch Engine Marketing (SEM) Opportunities for momandmeshop.in Improve your Competitive Edge Expand Customer Base and target Audience Increases return on investment High Impact search queries have been Opportunities; queries that are relevant but have low competition in Search Engine Marketing
Search Engine OptimizationHigh Impact Search Queries for beanstalkshop.in Search Engine Marketing (SEM) Opportunities for beanstalkshop.inGOOGLE ANALYTICS SOCIAL MEDIA ANALYTICSGoogle Analytics results into actionable intelligence. Tie up with a company that provides Lets you know where your audience is located social media analytics • Analyze Twitter and Facebook at one Provides a metric called Bounce Rates which help place you determine the percentage of people who come to your site but never click through to the next step- • Engagement & Influence Score Can help you improve the quality and user ease of the • Major trends in account activities site • Detailed audience demographics into age, gender, geographical location Provides a metric called Referring Sites - If people are reaching your site from Facebook, Twitter, or Helps in finding sentiment towards the somewhere else, this metric will provide you with brand and more focused marketing and those details, and you can provide better content on engagement strategies these websites.
Use Social media as a marketing tool Promotional /engagement activities on facebook Increased awareness, brand loyalty Increased sales in Increased sales in Physical Stores Online Stores
The present facebook page of Mom&Me is running the Motherhood-A song for life contest. We propose to launch many such contests to keep customers engagedLaunch ‘My Baby Moments’ Contest Moms will have to post the most memorable moments of their child in the Mom&Me and Beanstalk facebook page. The post which gets the most number of likes each week will win gift vouchers.
M-Commerce is the next level of e-commerce. So Mahindra Retail should lock in customers throughapps The newly launched mother’s world mobile app should be leveraged to increase customer engagement The existing offerings in the app include information on Baby’s Growth, Nutrition, Emotional Issues, Health Notes, Fitness, FAQs, online store etc We propose to provide similar information in the form of games to better connect with the customer and increase awareness in an engaging way.Interesting and informative apps Better customer engagement Higher chance of buyingproducts online through the appProposed Simulation game: Mom & Me bondingThis game would place players in the role of a "Mom", where they can explore, play gamesand solve challenges while raising a healthy and happy baby!
Mom & Me Bonding Game concept Source: Baby&me fb app The player (mom) would be asked questions about As the points increase based on right answers, the child care, pregnancy etc and based on the right player can do shopping for both mom and the child answers points will be credited for mom & childBased on how well the player has taken care of the kid, a kid happiness % will be displayed as final score. Players can inviteother players to play the game or share their score on facebook. The apparels/toys displayed in the game can be replica ofactual models available in online store inducing purchase intention
LogisticsMom and Me have 100 stores in India and Plan to open up to 200 stores. Beanstalk also wants tobe present as 100 stores across IndiaFor a thriving E-Commerce plus Physical Stores, the Supply chain and Logistics must be robust Presence of Ware-Houses in Multiple locations to serve the demand of the physical stores as well as the demands from the E-Commerce Channel Presence of CFAs instead of Warehouses at other places can be used to deliver to the numerous retail stores without sales taxLogistics Warehouses Focus on third party logistics Warehouses should be split into Make them a partner so that they multiple areas — inventory, packing, understand the level of service shipping required to be provided be on Stock replenishment every 24-48 hours. the same page The order processing should be done The better the service lesser the every 12 hours and the stock should be dropped orders updated for replenishment purposes Tie Up with Courier Companies Associates for tracking systems, such as Blue Dart, First reconciliation and MIS reports. Flight, FedEx, Aramex and Private courier companies carry Professional Couriers shipment tracking ID or an airway bill Indian post number linked to every package. By air, train ,truck, two wheeler, on foot.
Why Focus on 3rd Party LOGISTICS for E-Commerce Third-party Managed Parameters In-house Logistics Logistics In-house logistics require heavyCapital Expenditure investment Very High Manageable upfront Logistic networks of third-parties reach the farthest corners of the Last mile Access Poor Extensive and Good country Experience and expertise of specialist Expertise in Operations less or nil Very High third-parties is hard to copy Easy to modify logistic strategy andAgility to Respond to Dynamic switch partner with third-party Market less in case of goof up high logistics Financial & management resources Operational Risk & needed to run in-house teams;Requirement of Management High Less additional operational risk assumed Managed services are generally costlier; may change with industry Delivery Cost Low High growth In-house logistics teams can cater only to a few metros, tier-2 onwards cities accessible almost exclusively by third parties Existing logistic providers, such as DTDC, are creating separate arms for catering to ecommerce business Specialist e-commerce logistic companies, such as Delhivery, Chhotu, and Holisol, emerging Only when the logistics partner is on board sharing the same vision of providing good service to customers, will the decline rates come down focus in the short run The In house Logistics can be beefed up over a period of time in the long run
Integrating E-Commerce: CMS The retail partners are provided the lists in the form of a master excel sheet containing the details. They choose the products they want and place an order with Mom & Me and Beanstalk for the same. We suggest 2 models A national hotline number Creation of an online where the retailers can call content management and place an order. system The centre will then forward the order to The system will contain the information of all the the local CFA (carry and forward agency) products in a digital format where more than one nearest to the warehouse of the 3d images would be provided. Pictures from respective retail and send them the different angles and different colours (variants) of order. the same models will be provided.The entire idea of the CMS is to integrate purchasing and procurement, supplier management,inventory management, channel management, sales activities, payment management, and service andsupport
Content Management System The retailer goes to the respective sites and logs in He is shown the entire range of products on the landing page with 3 An online content management d images etc. system which can be accessed He clicks on Place your order tab by the retailers He is redirected This CMS system will be to an API like different from the ones this where he generally used i.e. the excel file. writes the product number It would be an application and quantity. protocol interface where we will provide the retailers a panel where they can view all data. If he wants They can view the information another product he clicks on the of the products which can be plus button and downloaded by them. repeats the The e-commerce portals can above step. place orders as shown in the picture There will also be inbuilt credit Once he is limit above which the retailers done, he cannot order. It would help in presses SAVE preventing of bulk orders
Content Management SystemOn clicking SAVE, he is directed to the Order Panel where the Product name, no, order, amount chargedfor each item is shown.He is asked to check. If the cart is wrong, he may click on change in order to rectify it, if not he confirmsand his order is placed He may also go back to the landing page after login and search some other item and get all details about it, view 3d images The orders will be processed twice a day and on checking the inventory in the local CFA, an order will be blocked. As soon as the orders are processed and the orders are released for delivery by the local RS, the stock will be updated by the different CFAs. The CFAs can also send a requisition of the no and model they require to the warehouses through this same CMS. The benefit of the above CMS system will be faster replenishment of orders and convenience The vendors can track their orders also (whether dispatched or processed) The same API can be extended for inventory management