SEARCH CRITERIA LOGIC
SUPPLY CHAIN MANAGEMENT
SECURITY SOCKET LAYER
PROMOTIONAL AND ADVERTISING STRATEGY
In February 2010, Kunal Bahl along with Rohit Bansal,
started Snapdeal.com - India's largest online
marketplace, with the widest assortment of 12
million+ products across 500+ diverse categories
from thousands of regional, national, and
international brands and retailers.
With millions of users and 150,000 sellers, Snapdeal
is the shopping destination for internet users across
the country, delivering to 5000+ cities and towns in
With its acquisition of Freecharge in 2015, a leading
mobile transactions platform, Snapdeal has become
the largest mCommerce company in the country.
In its journey till now, Snapdeal has partnered with
several global marquee investors and individuals such
as SoftBank, BlackRock, Temasek, eBay Inc., Premji
Invest, Intel Capital, Bessemer Venture Partners, Mr.
Ratan Tata, among others.
Snapdeal has raised $500 million from Foxconn,
SoftBank and Alibaba.
Snapdeal has received 7 rounds of funding:
Round 1: In January 2011, Snapdeal received a funding of $12 million from Nexus Venture Partners and Indo-US
Round 2: In July 2011, the company raised a further $45 million from Bessemer Venture Partners, along with existing
investors Nexus Venture Partners and Indo-US Venture Partners.
Round 3: Snapdeal then raised a 3rd round of funding worth $50 million from eBay and received participation from
existing investors – i.e. Bessemer Venture Partners, Nexus Venture and IndoUS Venture Partners.
Round 4: Snapdeal received its 4th round of funding of $133 million on Feb-2014. The 4th round of funding was led
by eBay with all the current institutional investors, including Kalaari Capital, Nexus Venture Partners, Bessemer
Venture Partners, Intel Capital and Saama Capital all participating.
Round 5: Snapdeal received its 5th round of funding of $105 million in May-2014. The 5th round included
investments by Blackrock, Temasek Holdings, PremjiInvest and others. The round valued Snapdeal at
Round 6: Snapdeal received its 6th round of funding in Oct-2014 from Softbank with investments worth $647 million
in fresh capital.This makes SoftBank the largest investor in Snapdeal.
Round 7: Snapdeal received its 7th round of funding in Aug-2015 from Alibaba Group, Foxconn and SoftBank with
investments worth $500 million in fresh capital.
This model is totally different from others in the market, In this model the E-Commerce player does
not sell any goods/service on its own but offers discount coupons which can be used by buyers to
avail discount at the time of buying Good from Merchant. The original concept is copied from
Pros of Snapdeal Model:
1. E-Commerce player is only Technology Provider therefore very less hassles in business
operations…Normally a team of 2-3 sales executives are hired in each city to tie up with brands for
2. Cost of Operations is very Low compared to other models
3. Very Easy to Set Up Business Operations
4. Lot of upcoming Brands / Merchants are available for tie up
Cons of Snapdeal Model:
1. Ultra Low Margin Business: The margin in this business is very thin and can be as low as 25 Rs
2. Unknown Brands: Normally heavy discounts are offered by brands which are new or not known
because they want to build their customer base by offering huge discounts.
3. Discount is available otherwise also: In Most of the cases customer find that discounts are
available without buying discount coupon also.
4. Managing coupon logistics is difficult as it require lot of coordination with merchants so that
same coupon cannot be used multiple times.
5. Profitable Business only if Huge Volumes can be committed to merchants: Merchants are keen
to provide discounts only if high volumes are committed else they find it difficult to manage as
front office staff is not intelligent enough to handle or understand this model at merchants end
6. Marketing cost to generate traffic on website is high
7. E-Commerce player should understand the Local Flavour well so that deals are appealing and
New business model
(EBay Model): In this model, the role of E-Commerce player is to bring buyers and
suppliers on single trading platform i.e. to create a Mall or Common Market Place.
Prominent player following this model is EBay .
Following are Pros and Cons of this Model
Pros of EBay Model:
1. Possible to create Very Large Market Place i.e. Large Product Portfolio in terms
of One Stop Shop for all requirements. Also customer can select from multiple
2. Ease of Management: EBay’s role is restricted only to manage Technology and
Marketing of platform
3. Competitive Rates because of cut throat competition among Sellers
4. Less Capital Intensive i.e. Cost of Operations is very Less i.e. No Warehouse
required and Logistics is controlled by Sellers.
Cons of EBay Model:
1. Low Margins: Margins in this business model is normally
2. Success of this model is dependent on external
partners as EBay can only monitor the quality aspect through
feedback mechanism from buyers but cannot really control
the same therefore customer satisfaction is not in direct
control of EBay which goes against principle of marketing.
3. High Risk in terms of Charge Backs & Disputes by
Buyers: With large scale of operation and large no of sellers
on board, the customer disputes will bound to increase
4. Many Seller might sell products without
Bill/Invoice because of which they can sell at much lower
rates though most of them mention it indirectly that product
is under dealer’s warranty which implies that product is being
sold without paying taxes like VAT etc. and Manufacturer will
not cover the product for warranty…
• You get your payment immediately.
• There are no additional fees.
• Not many people carry cash anymore.
• Cash is easy to counterfeit.
• Extra vigilant bookkeeping is required.
Credit (and Debit) Cards:
• Credit cards are the most common/preferred
• Accepting credit cards encourages impulse
buys. Credit cards can be used to make PayPal
• Keeping track of all the laws and security
Online Banking or e-Banking
Pros: Secure, receipts
automatically generated by
banks, convenient and paying
with what you have (sensible
Cons: Need to have sufficient
funds in account and not
everyone has an online
Snapdeal’s payment gateway enables shoppers to save their card details on it, post which they
can opt for Klickpay as a payment method in the checkout window. First time users will have to
make a Klickpay account or they can also register via Facebook.
It looks like Snapdeal has gone live with its payment gateway solution Klickpay, allowing users
to make payments for their online purchases on Klickpay merchant websites. The solution is
currently live on Snapdeal wherein consumers can use this option for their purchases.
KlickPay Score: For merchants, it offers features like checkout widgets, payer network, fraud
detection and others. But what’s particularly interesting is a Klickpay priority score for each
customer, generated from their online transaction history, COD (Cash on delivery) returns, social
network influence and others to help merchants separate genuine orders from fake ones and
prioritize their shipments. This score is also visible to consumers on their respective profile
Developer accounts opening shortly: Klickpay also notes that it will open developer account
registrations shortly. According to the company website, it will support OAuth 2.0 protocol to
enable developers offer KlickPay user registrations through a popup. It will also provide two
types of checkout integration – a popup form and an iFrame-based embedded form
SUPPLY CHAIN MANAGEMENT
Supply Chain Management is a key function at Snapdeal.
supply chain operations including – planning, warehouse management, driving process excellence,
supply chain technology integration, end-to-end solutions design and implementation.
The company is investing $300 million this year to strengthen the same.
Snapdeal entered into a strategic partnership with Gojavas earlier this year. In order to further
customer experience on the platform, the companies together launched innovative delivery
services like 4 hr delivery, card-on-delivery and 90 minutes reverse pickups.
Snapdeal’s flagship service, Snapdeal Plus has seen tremendous success since its launch a year ago.
Currently, 60% of the orders are Snapdeal Plus fulfilled up from 7% in January 2015. The SCM team
at Snapdeal is 1000+ people strong and has grown 5 times since December 2014.
SECURITY SOCKET LAYER
SSL (Secure Sockets Layer) is the
standard security technology for
establishing an encrypted link
between a web server and a
browser. This link ensures that all
data passed between the web
server and browsers remain
private and integral.
SSL Security is one basic step that
every e-commerce site must take
at the very minimum. Doing so will
at least ensure that transactions
between an e-commerce site and
its customers remain private. This
is critically important in India,
especially because a large portion
of the population there uses
shared internet (i.e. cyber cafes).
IDENTIFY top selling products
SnapDeal pull an 80/20 manoeuvre and focus in on 25-50 most popular products. For most stores,
this should represent roughly 50% or more of your revenue. Optimizing pricing on these items will
give them the most bang for buck from a time invested perspective.
They make sure to record all legacy pricing before they go in and change everything up. They dive
into your top products and start increasing prices, but with but here are a few rules:
(a) Think Incrementally
raising prices by 5% to 15%ish is a good rule of thumb for bumping up pricing.
(B) Be More Aggressive With Cheaper Item
A 50% increase on a $10 item takes it from $10 to $15 – in nominal terms, the extra $5 often
isn’t a deal breaker. However, try raising pricing on a $100 product by 50% and your customers
will be much less likely to continue buying.
(C) Understand Where they’re At In the Market
Spend some time looking at how much the products are selling for on other niche websites,
and also be honest with their how professional and trusted their own website is.
(D) Re-Investigate Product Pricing
They have spreadsheet that lists three columns: current price, cost, and the new
price. Seeing all of these items side-by-side will be really helpful as they’re coming up with a
new price and will ensure they’re not selling too close to cost.
(E) Using Comparable Test Periods
They are now easily able to complete all of the research and execute on the implementation in
under a week, if not a day or two. Once you’ve got everything set update their pricing on their live
store to start the experiment. They control for (at least a little bit) monthly variations from week
to week like people getting paid, being more likely to shop at certain times, etc.
(F)Optimizing for Profit / Visitor
To calculate “profit per visitor” simply take the # of site visitors for their test period divided by
their total profit for that period. So let’s say we had 50,000 visitors and we made $10,000 in
profit. Our calculation would look like this:
$10,000 (Profit) / 50,000 (Visitors) = $0.20 profit/visitor
they now calculate this metric for your control and test periods and use the comparison to judge
Measure Your Results
The first thing to do is to create
baseline, which they likely have already
done. Calculate the profit/visitor for
control month – ideally the full month
before they changed their
pricing. Next, calculate the
profit/visitor for the experiment period
– again, ideally the calendar month right
after your control.
Comparing these two numbers should
give them a good sense of how the
ADVERISING AND PROMOTIONAL
STRATEGY Hitting the right spot!
Buy it or not- we believe in
doing things the BIG way and
exposing it to the wide
audience. Buzz and hit the
right spot describes our first
Flipkart launched its “Big
Billion Day” offer in October
2014, and Snapdeal left no
room for others to take its
advantage. It introduced its
own advertisement along
with Flipkart showcasing
users the advantage to shop
It’s close to our heart!
And how can we forget the best thing the
team did this year. Very close to the heart and
special. Since we were planning to do
something in our own small way to the society,
we thought it was a good opportunity to
support a village, where one of our colleagues
comes from, by enabling easy access to
portable drinking water and the villagers
expressed their gratitude by naming the
village after Snapdeal!
Uber cool and bold are a few understatements
for Snapdeal’s excellent marketing strategies.
We know the tricks and techniques of the
trade. But going to the ground level and
executing it; is really, really tough and so it is
In short, Snapdeal’s dynamic marketing
approach includes doing things the big way
and creating the buzz through innovative
Gul Panag on Discount!
Snapdeal created a lot of
excitement the last Valentine’s
Day with an innovative ‘Date
with Me’-Gul Panag campaign.
The offer was quite simple,
stating anyone can buy a date
with Gul Panag at a special
price. But, the kind of buzz it
created in the market was
For promotional activity,
Snapdeal used the face of many
celebrities including Aamir Khan,
Pulkit Samrat, Alok Nath and
You live only once!
A sneak peek before I log off –
Snapdeal just launched its TVC
this week…Take a look at—
‘Owning the space’
Snapdeal’s 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
Gurgaon’s-DLF Cyber City. Many
thought and still think, that it is
Snapdeal’s office! That’s what
you call “owning the space” and
the “mind”. Quite audacious an
attempt since it has never even
been tried before by an online
Again when Flipkart launched
its new advertisement in June
2015, then also Snapdeal nailed
it and created its own ad along
SOCIAL MEDIA PRESENCE
1. YouTube- 351 videos
2. Instagram- 44.5 k followers
3. Twitter- 260 k followers, 44 retweets
4. Google+ - 9,57,134 followers
5. LinkedIn – 70,175 followers
6. Facebook – 38,95,471 followers
7. Pintrest – 1.8 k followers , 3.8 k pins, 263