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19th	
  Aug	
  2014	
  
	
  
[2nd	
  May	
  14	
  –	
  31st	
  July	
  14]	
  |	
  Masters	
  of	
  Management	
  Studies	
  
RAMYA	
  
KHOSLA	
  
SUMMER	
  PROJECT	
  REPORT	
  
	
  
 
Page2	
  
Content	
  
	
  
Acknowledgement	
   Page	
  3	
  
Introduction	
   Page	
  4	
  
SYNOPSIS	
   	
  
Digital	
  Marketing	
   Page	
  5	
  –	
  8	
  
E-­‐Commerce	
   Page	
  9	
  –	
  11	
  
Consumer	
  Behavior	
   Page	
  12	
  
Different	
  Personality	
  Traits	
   Page	
  13	
  –	
  15	
  
FINDINGS	
  &	
  OBSERVATIONS	
   	
  
Primary	
  Research	
   Page	
  16	
  –	
  26	
  
Secondary	
  Research	
   Page	
  27	
  –	
  33	
  
Social	
  Media	
  Comparison	
  Chart	
   Page	
  34	
  
RECOMMENDATIONS	
   Page	
  35	
  –	
  37	
  
Road	
  Map	
  for	
  Instagram	
   Page	
  38	
  –	
  44	
  
Appendix	
  (Questionnaire)	
   Page	
  45	
  –	
  48	
  
Bibliography	
   Page	
  49	
  
	
  
 
Page3	
  
ACKNOWLEDGEMENT	
  
	
  
	
  
	
  
Every	
  project	
  big	
  or	
  small	
  is	
  successful	
  largely	
  due	
  to	
  the	
  effort	
  of	
  a	
  number	
  of	
  
wonderful	
  people	
  who	
  have	
  always	
  given	
  their	
  valuable	
  advice	
  or	
  lent	
  a	
  helping	
  
hand.	
   I	
   sincerely	
   appreciate	
   the	
   inspiration;	
   support	
   and	
   guidance	
   of	
   all	
   those	
  
people	
  who	
  have	
  been	
  instrumental	
  in	
  making	
  this	
  project	
  a	
  success.	
  
	
  
I,	
  Ramya	
  Khosla,	
  the	
  student	
  of	
  Lala	
  Lajpatrai	
  Institute	
  of	
  Management,	
  am	
  
extremely	
  grateful	
  to	
  “PARX”	
  for	
  the	
  confidence	
  bestowed	
  in	
  me	
  and	
  entrusting	
  
my	
   project	
   entitled	
   “DIGITAL	
   MARKETING”	
  with	
   special	
   reference	
   to	
  
RAYMOND	
  APPAREL	
  LIMITED.	
  
	
  
	
  At	
  this	
  juncture	
  I	
  feel	
  deeply	
  honored	
  in	
  expressing	
  my	
  sincere	
  thanks	
  to	
  Mr.	
  
SHAWN	
  CHANDY	
  for	
  making	
  the	
  resources	
  available	
  at	
  right	
  time	
  and	
  providing	
  
valuable	
  insights	
  leading	
  to	
  the	
  successful	
  completion	
  of	
  my	
  project.	
  It	
  will	
  not	
  be	
  
fine	
  if	
  I	
  don’t	
  thank	
  Mr.	
   TRUSHAL	
   PRAJAPATI	
   for	
  his	
  whole	
  hearted	
  support	
  
during	
  the	
  project.	
  
	
  
	
  I	
  would	
  also	
  like	
  to	
  thank	
  all	
  the	
  faculty	
  members	
  of	
  Lala	
  Lajpatrai	
  Institute	
  of	
  
Management	
  for	
   their	
   critical	
   advice	
   and	
   guidance	
   without	
   which	
   this	
   project	
  
would	
  not	
  have	
  been	
  possible.	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  Ramya	
  Khosla	
   	
   	
   	
   	
   	
   	
   19th	
  Aug	
  2014	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
 
Page4	
  
eed	
  of	
  the	
  Study	
  	
  
With	
  increasing	
  popularity	
  of	
  online	
  shopping	
  the	
  competition	
  is	
  
getting	
  escalated	
  and	
  thus	
  it	
  has	
  become	
  imperative	
  for	
  e-­‐retailers	
  
to	
  understand	
  the	
  motivators,	
  which	
  bring	
  consumers	
  to	
  shop	
  
online.	
  Moreover	
  Indian	
  markets	
  are	
  still	
  untapped	
  in	
  terms	
  of	
  
online	
  shopping	
  phenomena	
  and	
  this	
  trend	
  is	
  still	
  gaining	
  popularity	
  among	
  
consumers.	
  Also	
  the	
  recently	
  done	
  surveys	
  have	
  also	
  indicated	
  the	
  huge	
  growth	
  
expected	
  from	
  non-­‐	
  metros	
  in	
  the	
  near	
  future.	
  As	
  the	
  online	
  buying	
  trend	
  is	
  
gaining	
  popularity	
  in	
  India	
  and	
  many	
  companies	
  aim	
  to	
  capitalize	
  on	
  it,	
  it	
  
becomes	
  significant	
  to	
  get	
  insight	
  about	
  the	
  why,	
  how	
  and	
  what	
  of	
  online	
  
consumer	
  behavior.	
  So	
  this	
  study	
  tries	
  to	
  understand	
  the	
  antecedents	
  behind	
  the	
  
online	
  purchase	
  that	
  too	
  in	
  Indian	
  context.	
  	
  
	
  
Objective	
  
• To	
  study	
  the	
  online	
  consumer	
  buying	
  behavior.	
  
• To	
  understand	
  the	
  role	
  of	
  social	
  networking	
  sites/apps	
  in	
  customer	
  
engagement.	
  
	
  
Methodology	
  
• Primary	
  Research	
  
Ø Questionnaire	
  –	
  To	
  understand	
  the	
  online	
  consumer	
  buying	
  
behavior,	
  a	
  questionnaire	
  was	
  developed	
  which	
  also	
  includes	
  the	
  
demographic	
  profile	
  of	
  the	
  respondents	
  which	
  was	
  distributed	
  online	
  
through	
  social	
  networking	
  sites	
  like	
  Facebook,	
  LinkedIn	
  and	
  also	
  
distributed	
  through	
  emails	
  and	
  Google	
  +.	
  
	
  
Ø Store	
  Visits	
  –	
  To	
  observe	
  the	
  consumer	
  engagement	
  with	
  the	
  store	
  
staff.	
  
	
  
• Secondary	
  Research	
  
Ø To	
  study	
  the	
  existing	
  data	
  of	
  Digital	
  Marketing	
  available	
  in	
  different	
  
research	
  reports.	
  
Limitations	
  of	
  the	
  Study	
  	
  
The	
  results	
  of	
  a	
  study	
  should	
  always	
  be	
  seen	
  in	
  the	
  light	
  of	
  its	
  limitations.	
  Like,	
  in	
  
this	
  study	
  the	
  sample	
  size	
  is	
  an	
  issue,	
  as	
  to	
  make	
  the	
  findings	
  more	
  generalized	
  
the	
  sample	
  size	
  should	
  have	
  been	
  larger.
N	
  
 
Page5	
  
Synopsis	
  
	
  
Digital	
  Marketing	
  
	
  
According	
  to	
  media	
  reports,	
  Indian	
  organizations	
  use	
  social	
  media	
  much	
  more	
  
than	
  the	
  global	
  average	
  and	
  their	
  counterparts	
  in	
  emerging	
  economies.	
  Our	
  study	
  
of	
  social	
  media	
  marketing	
  practices	
  among	
  various	
  social	
  media-­‐savvy	
  
organizations	
  in	
  India	
  has	
  thrown	
  up	
  some	
  good	
  insights.	
  	
  The	
  study	
  answers	
  key	
  
questions	
  that	
  many	
  marketers	
  have	
  in	
  India	
  such	
  as	
  what	
  is	
  the	
  business	
  
objective	
  for	
  using	
  social	
  media,	
  what	
  are	
  some	
  of	
  the	
  best	
  tactics,	
  what	
  is	
  the	
  
average	
  social	
  media	
  budget,	
  how	
  do	
  you	
  measure	
  social	
  media,	
  and	
  what	
  is	
  the	
  
future	
  of	
  social	
  media.	
  
Social	
  media:	
  
• Most	
  social	
  media-­‐savvy	
  organizations	
  in	
  India	
  use	
  the	
  medium	
  to	
  build	
  
communities	
  
Objective	
  of	
  Social	
  media	
  Engagement:	
  
	
  
95.7%	
  of	
  the	
  surveyed	
  social	
  media-­‐savvy	
  organizations	
  in	
  India	
  use	
  the	
  medium	
  
to	
  build	
  communities	
  and	
  advocate	
  usage	
  while	
  76.1%	
  use	
  social	
  media	
  as	
  a	
  
platform	
  to	
  highlight	
  brand	
  news.	
  Around	
  16%	
  of	
  organizations,	
  which	
  use	
  social	
  
media	
  for	
  both	
  the	
  above	
  reasons,	
  also	
  use	
  it	
  for	
  customer	
  service,	
  lead	
  
generation,	
  and	
  research	
  indicating	
  high	
  social	
  maturity	
  and	
  moving	
  toward	
  
getting	
  business	
  meanings	
  out	
  of	
  engagements.	
  
Social	
  media	
  platform:	
  
• Facebook	
  most	
  important	
  platform	
  for	
  marketers	
  in	
  India	
  for	
  engaging	
  
customers,	
  followed	
  by	
  Twitter,	
  YouTube	
  and	
  blogging	
  
Almost	
  half	
  of	
  the	
  social	
  media-­‐savvy	
  organizations	
  are	
  already	
  using	
  emerging	
  
 
Page6	
  
platforms	
  such	
  as	
  Pinterest,	
  Google	
  Plus,	
  and	
  Foursquare.	
  More	
  than	
  half	
  of	
  the	
  
social	
  media-­‐savvy	
  organizations	
  surveyed	
  regularly	
  engage	
  with	
  bloggers	
  or	
  
online	
  influencers	
  who	
  have	
  authority	
  and	
  strong	
  following.	
  
Social	
  media	
  fit	
  in	
  with	
  other	
  marketing/communications	
  campaigns:	
  
• Social	
  media-­‐savvy	
  organizations	
  in	
  India	
  have	
  conducted	
  campaigns	
  where	
  
social	
  media	
  is	
  the	
  leading	
  component	
  
Social	
  media-­‐savvy	
  organizations	
  in	
  India	
  speed	
  up	
  processes	
  or	
  show	
  
special	
  favor	
  for	
  online	
  fans	
  
Among	
  the	
  respondents	
  87.5%	
  said	
  they	
  have	
  conducted	
  campaigns	
  where	
  social	
  
media	
  was	
  the	
  leading	
  component.	
  More	
  than	
  half	
  of	
  the	
  surveyed	
  organizations	
  
have	
  speeded	
  up	
  processes	
  or	
  have	
  shown	
  a	
  special	
  favour	
  for	
  their	
  online	
  fans	
  
and	
  followers	
  that	
  they	
  wouldn’t	
  normally	
  do	
  for	
  their	
  offline	
  customers.	
  
Organizations	
  engage	
  with	
  their	
  social	
  communities:	
  
• Popular	
  practices	
  
Type	
  of	
  content:	
  A	
  majority	
  of	
  social	
  media	
  savvy	
  organizations	
  prefer	
  to	
  post	
  
generic	
  updates	
  instead	
  of	
  brand	
  updates.	
  
Frequency	
  of	
  updates	
  and	
  responses:	
  Social	
  media-­‐savvy	
  organizations	
  post	
  
multiple	
  updates	
  a	
  day.	
  
Majority	
  of	
  social	
  media-­‐savvy	
  organizations	
  respond	
  to	
  fan	
  queries	
  within	
  30	
  to	
  
60	
  minutes	
  on	
  Twitter	
  and	
  within	
  30	
  minutes	
  to	
  a	
  few	
  hours	
  on	
  Facebook.	
  
• Contests/promotions:	
  Picture	
  contests	
  are	
  the	
  most	
  popular	
  contests	
  among	
  
social	
  media-­‐savvy	
  organizations	
  in	
  India	
  —	
  most	
  contests	
  are	
  organized	
  
monthly.	
  
• Policies:	
  Majority	
  of	
  social	
  media-­‐savvy	
  organizations	
  in	
  India	
  surveyed	
  have	
  
social	
  media	
  guidelines	
  for	
  better	
  governance	
  and	
  online	
  monitoring	
  
programs	
  to	
  listen	
  to	
  conversations;	
  however,	
  less	
  than	
  half	
  have	
  crisis	
  
manuals.	
  
• Tools	
  used:	
  Many	
  social	
  media-­‐savvy	
  organizations	
  in	
  India	
  use	
  tools	
  for	
  online	
  
monitoring,	
  response	
  management,	
  or	
  managing	
  social	
  media	
  platforms.	
  
• Social	
  media	
  for	
  research:	
  Almost	
  half	
  of	
  the	
  social	
  media-­‐savvy	
  organizations	
  
in	
  India	
  have	
  conducted	
  research	
  using	
  social	
  media	
  tools	
  to	
  get	
  customer	
  
feedback	
  and	
  understand	
  more	
  about	
  customer	
  behavior.	
  
• Mobile:	
  Half	
  of	
  the	
  social	
  media-­‐savvy	
  organizations	
  in	
  India	
  have	
  created	
  
mobile	
  phone	
  apps	
  and	
  one-­‐fourth	
  plans	
  to	
  create	
  one.	
  
Organizations	
  use	
  social	
  media	
  ads:	
  
• Majority	
  of	
  social	
  media-­‐savvy	
  organizations	
  use	
  social	
  media	
  ads	
  to	
  promote	
  
online	
  campaigns	
  and	
  brand	
  awareness,	
  and	
  find	
  them	
  beneficial	
  
83%	
  of	
  the	
  social	
  media-­‐savvy	
  organizations	
  surveyed	
  said	
  that	
  they	
  have	
  used	
  
 
Page7	
  
social	
  media	
  ads,	
  with	
  majority	
  of	
  the	
  ads	
  being	
  used	
  to	
  promote	
  a	
  
contest/promotion	
  or	
  for	
  brand	
  awareness.	
  88.6%	
  said	
  they	
  find	
  social	
  media	
  
ads	
  to	
  be	
  beneficial	
  in	
  achieving	
  those	
  objectives.	
  
Measure	
  social	
  media	
  success:	
  
• Majority	
  of	
  social	
  media-­‐savvy	
  organizations	
  in	
  India	
  measure	
  social	
  media	
  
efforts	
  through	
  platform-­‐specific	
  parameters	
  
	
  
81%	
  of	
  the	
  social	
  media-­‐savvy	
  organizations	
  surveyed	
  said	
  that	
  they	
  measure	
  
their	
  social	
  media	
  efforts	
  through	
  platform-­‐specific	
  parameters	
  such	
  as	
  likes,	
  
people	
  talking	
  about	
  this,	
  etc.	
  46.7%	
  of	
  the	
  organizations	
  surveyed	
  said	
  they	
  
have	
  not	
  measured	
  revenue	
  from	
  their	
  social	
  media	
  efforts.	
  On	
  the	
  positive	
  side,	
  
some	
  organizations	
  are	
  already	
  measuring	
  social	
  media	
  efforts	
  through	
  leads,	
  
sentiment,	
  brand	
  visibility	
  and	
  have	
  seen	
  increase	
  in	
  revenue	
  from	
  social	
  media	
  
efforts.	
  
Social	
  media	
  budget:	
  
• Almost	
  half	
  of	
  social	
  media-­‐savvy	
  organizations	
  spend	
  1%–5%	
  of	
  their	
  
marketing	
  budget	
  on	
  social	
  media,	
  most	
  social	
  media	
  budgets	
  are	
  below	
  
INR10	
  million	
  
41.5%	
  of	
  social	
  media-­‐savvy	
  organizations	
  said	
  that	
  around	
  1%–5%	
  of	
  their	
  
marketing	
  budget	
  in	
  spent	
  on	
  social	
  media.	
  Three-­‐fourths	
  of	
  the	
  organizations	
  
surveyed	
  have	
  their	
  social	
  media	
  budget	
  below	
  INR10	
  million,	
  while	
  a	
  little	
  
above	
  a	
  quarter	
  of	
  the	
  organizations	
  surveyed	
  have	
  social	
  media	
  budgets	
  
exceeding	
  INR20	
  million.	
  
Department	
  manages	
  social	
  media:	
  
• Majority	
  of	
  social	
  media	
  efforts	
  in	
  India	
  are	
  managed	
  by	
  marketing	
  teams	
  
76.7%	
  of	
  social	
  media-­‐savvy	
  organizations	
  said	
  they	
  have	
  their	
  marketing	
  
 
Page8	
  
department	
  handling	
  social	
  media	
  with	
  the	
  rest	
  being	
  handled	
  by	
  a	
  cross-­‐
functional	
  team/across	
  functions	
  or	
  by	
  the	
  PR/communications	
  team.	
  Other	
  than	
  
marketing,	
  34.6%	
  said	
  they	
  use	
  social	
  media	
  for	
  thought	
  leadership	
  and	
  26.9%	
  
said	
  they	
  use	
  social	
  media	
  for	
  CSR.	
  A	
  majority	
  (70.2%)	
  said	
  they	
  have	
  an	
  in	
  house	
  
social	
  media	
  expert	
  in	
  middle	
  management.	
  
Agency	
  structure:	
  
• Majority	
  of	
  social	
  media-­‐savvy	
  organizations	
  in	
  India	
  use	
  standalone	
  digital	
  
agencies	
  as	
  compared	
  to	
  PR	
  or	
  ad	
  agencies	
  
73.8%	
  of	
  surveyed	
  social	
  media-­‐savvy	
  organizations	
  have	
  chosen	
  standalone	
  
digital	
  agencies	
  as	
  compared	
  to	
  PR,	
  ad	
  agencies,	
  or	
  freelancers.	
  59.1%	
  of	
  the	
  
organizations	
  surveyed	
  also	
  said	
  that	
  they	
  are	
  happy	
  with	
  their	
  current	
  agencies	
  
while	
  40.9%	
  responded	
  with	
  either	
  a	
  ”maybe”	
  or	
  a	
  ”no.”	
  
• Future	
  of	
  social	
  media:	
  
Social	
  media-­‐savvy	
  organizations	
  in	
  India	
  are	
  very	
  optimistic	
  about	
  the	
  
future	
  
Social	
  media-­‐savvy	
  organizations	
  are	
  very	
  optimistic	
  about	
  the	
  role	
  of	
  social	
  
media	
  in	
  their	
  organizations.	
  Though	
  measures	
  such	
  as	
  sales	
  and	
  leads	
  are	
  not	
  
very	
  evident	
  for	
  all	
  organizations,	
  they	
  have	
  realized	
  that	
  it	
  plays	
  an	
  important	
  
role	
  in	
  generating	
  insights	
  and	
  engaging	
  with	
  customers	
  on	
  a	
  continued	
  basis.	
  
Social	
  media	
  has	
  helped	
  organizations	
  to	
  create	
  their	
  own	
  communities	
  of	
  fans,	
  
customers	
  or	
  prospects.	
  In	
  the	
  future,	
  organizations	
  hope	
  to	
  focus	
  more	
  on	
  social	
  
media	
  and	
  are	
  looking	
  forward	
  greater	
  adoption	
  within	
  their	
  organizations.	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
 
Page9	
  
E-­‐Commerce	
  	
  
The	
  e-­‐Commerce	
  industry	
  
was	
  in	
  its	
  infancy	
  for	
  the	
  
larger	
  part	
  of	
  the	
  previous	
  
decade.	
  However,	
  in	
  last	
  
three	
  years,	
  the	
  industry	
  has	
  
witnessed	
  an	
  incredible	
  
growth	
  of	
  150	
  percent.	
  A	
  
number	
  of	
  business	
  models	
  
for	
  e-­‐Commerce	
  have	
  evolved	
  
and	
  are	
  in	
  varying	
  stages	
  of	
  
maturity.	
  
Online	
  shopping	
  of	
  physical	
  
goods	
  in	
  India	
  will	
  grow	
  to	
  
$8.5Bn	
  in	
  2016.	
  Number	
  of	
  online	
  shoppers	
  in	
  India.	
  
Executive summary
4
$2Bn
2013
$8.5Bn
2016P
Online Shopping defined in this presentation does not include travel, ticketing and food ordering – only physical goods commerce
Online shopping of physical goods in India, will grow to $8.5Bn in 2016.
Number of online shoppers in India will more than double to 40M. 
Key finding
2x Indian shoppers X 1.1x number of orders per year per shopper X 2x average order value
63% CAGR
KEY FINDING
25% CAGR
20M
40M
CY2013 CY2016P
Indian online shoppers will double
Accel estimates and Industry sources
	
  
Average	
  order	
  values	
  climbing	
  up	
  
rapidly	
  
1.	
  Last	
  year	
  there	
  was	
  a	
  significant	
  jump	
  
in	
  average	
  order	
  value	
  as	
  there	
  was	
  a	
  
penetration	
  of	
  new	
  categories	
  like	
  
jewelry,	
  home	
  décor	
  etc.	
  	
  
2.	
  Also,	
  users	
  are	
  becoming	
  more	
  
comfortable	
  buying	
  higher	
  priced	
  items	
  
online.	
  
Fashion	
  category	
  doubled	
  last	
  year	
  
	
  
$278 M
$559 M
$2,811 M
Fashion + Footwear + Accessories GMV
INR 1,080
INR 1,860
INR 3,600
CY2012 CY2013 CY2016P
Increasing average order value
Executive summary
Key findings
67%
25%
CAGR
KEY FINDING
1. Last year there was a significant jump in average
order value as there was a penetration of new
categories like jewellery, home décor etc.
2. Also, users are becoming more comfortable
buying higher priced items online.
100%
Growth
71%
CAGR
1. Last year was the rise of the fashion category –
fashion e-commerce GMV doubled since 2012.
2. Given the young demographic which is shopping
for latest looks online and increasing choice
online – we estimate that this category will see
400% growth in the next 3 years and rival
Average order values climbing up rapidly
Fashion category doubled last year
	
  
 
Page10	
  
1.	
  Last	
  year	
  was	
  the	
  rise	
  of	
  
the	
  fashion	
  category	
  –	
  
fashion	
  e-­‐commerce	
  GMV	
  
doubled	
  since	
  2012.	
  	
  
2.	
  Given	
  the	
  young	
  
demographic,	
  which	
  is	
  
shopping	
  for	
  latest	
  looks	
  
online	
  and	
  increasing	
  choice	
  
online	
  –	
  we	
  estimate	
  that	
  
this	
  category	
  will	
  see	
  400%	
  
growth	
  in	
  the	
  next	
  3	
  years	
  
and	
  rival	
  electronics	
  and	
  
mobile	
  category	
  in	
  GMV.	
  
Online	
  retail	
  is	
  still	
  a	
  very	
  small	
  portion	
  of	
  retail	
  in	
  India	
  
Enough headroom for growth
Online retail is still a very small portion of retail in India
9
Online sales,
4 Mn, 2%
Offline sales,
243 Mn, 98%
247Mn mobiles shipments in India CY2013
Online sales,
45 Mn, 7%
Offline sales,
555 Mn,
93%
600Mn books sold in India CY 2013
Online sales,
$0.08 Bn, 0.2%
Offline sales,
$44.92 Bn,
99.8%
USD 45Bn jewellery sales in India CY 2013
Online sales,
$0.5 Bn, 1%
Offline sales,
$42 Bn, 99%
USD 43Bn fashion + footwear sales in India CY 2013
Accel estimates, Accel portfolio companies and industry sources: CMR, FICCI, Deloitte
GROWTH FACTORS
	
  
It	
  is	
  estimated	
  that	
  the	
  e-­‐Commerce	
  industry	
  is	
  expected	
  to	
  contribute	
  around	
  4	
  
percent	
  to	
  the	
  GDP	
  by	
  2020.	
  In	
  comparison,	
  by	
  2020,	
  the	
  IT-­‐BPO	
  industry	
  is	
  
expected	
  to	
  account	
  for	
  10	
  percent	
  of	
  India’s	
  GDP,	
  according	
  to	
  a	
  NASSCOM	
  
report,	
  while	
  the	
  share	
  of	
  telecommunication	
  services	
  in	
  India’s	
  GDP	
  is	
  expected	
  
to	
  increase	
  to	
  15	
  percent	
  by	
  2015.	
  However,	
  with	
  enabling	
  support,	
  the	
  e-­‐
Commerce	
  industry	
  too	
  can	
  contribute	
  much	
  more	
  to	
  the	
  GDP.	
  
The	
  growing	
  industry	
  will	
  also	
  have	
  a	
  positive	
  spillover	
  effect	
  on	
  associated	
  
industries	
  such	
  as	
  logistics,	
  online	
  advertising,	
  media	
  and	
  IT/	
  ITeS.	
  Currently	
  e-­‐
Commerce	
  accounts	
  for	
  15-­‐20	
  percent	
  of	
  the	
  total	
  revenues	
  for	
  some	
  of	
  the	
  big	
  
logistics	
  companies.	
  The	
  revenue	
  for	
  logistics	
  industry	
  from	
  inventory	
  based	
  
consumer	
  e-­‐Commerce	
  alone	
  may	
  grow	
  by	
  70	
  times	
  to	
  USD	
  2.6	
  Billion	
  (INR	
  
14,300	
  crores)	
  by	
  2020.	
  Currently,	
  the	
  inventory	
  based	
  consumer	
  e-­‐Commerce	
  
model	
  alone	
  provides	
  direct	
  employment	
  to	
  approximately	
  40,000	
  people	
  and	
  is	
  
$278 M
$559 M
$2,811 M
CY2012 CY2013 CY2016P
Fashion + Footwear + Accessories GMV
INR 1,080
CY2012 CY2013 CY2016P
67%
25%
CAGR
categories like je
2.  Also, users are b
buying higher p
100%
Growth
71%
CAGR
1.  Last year was th
fashion e-comm
2.  Given the young
for latest looks o
online – we estim
400% growth in
electronics and
Fashion ca
	
  
 
Page11	
  
estimated	
  to	
  create	
  1	
  million	
  direct	
  and	
  another	
  0.5	
  Million	
  indirect	
  jobs	
  by	
  
2020.	
  Low	
  entry	
  barriers	
  have	
  attracted	
  many	
  young	
  and	
  enterprising	
  
individuals	
  to	
  try	
  their	
  hand	
  at	
  entrepreneurship.	
  First	
  time	
  entrepreneurs	
  have	
  
started	
  a	
  significant	
  63	
  percent	
  of	
  e-­‐Commerce	
  ventures.	
  
E-­‐commerce	
  is	
  a	
  small	
  sliver	
  of	
  Indian	
  retail	
  
E-commerce is a small sliver of Indian retail
18
91.0%
8.7%
0.3%
Unorganized retail Organized retail - offline Organized retail - online
92.0%
7.8%
0.2%
2012
 2013
Market
 Trends
 Growth Factors
 Payments
 BRICS
Accel estimates & Deloitte
	
  
Although	
  many	
  factors	
  support	
  the	
  growth	
  of	
  e-­‐Commerce	
  in	
  India,	
  the	
  fledgling	
  
industry	
  is	
  faced	
  with	
  significant	
  hurdles	
  with	
  respect	
  to	
  infrastructure,	
  
governance	
  and	
  regulation.	
  Low	
  Internet	
  penetration	
  of	
  11	
  percent	
  as	
  compared	
  
to	
  world	
  average	
  of	
  34	
  percent	
  impedes	
  the	
  growth	
  of	
  e-­‐Commerce	
  by	
  limiting	
  
the	
  Internet	
  access	
  to	
  a	
  broader	
  segment	
  of	
  the	
  population.	
  Poor	
  ‘last	
  mile	
  
connectivity’	
  due	
  to	
  missing	
  links	
  in	
  supply	
  chain	
  infrastructure	
  is	
  limiting	
  the	
  
access	
  to	
  far-­‐flung	
  areas	
  where	
  a	
  significant	
  portion	
  of	
  the	
  population	
  resides.	
  
High	
  drop-­‐	
  out	
  rates	
  (25-­‐30	
  percent)	
  on	
  payment	
  gateways,	
  consumer	
  trust	
  
deficit	
  and	
  slow	
  adoption	
  of	
  online	
  payments	
  are	
  compelling	
  e-­‐Commerce	
  
companies	
  to	
  rely	
  on	
  costlier	
  payment	
  methods	
  such	
  as	
  COD	
  (Cash	
  on	
  Delivery).	
  
(Access,	
  logistics,	
  payments	
  are	
  part	
  of	
  infrastructure).	
  
	
  
	
  
	
  
	
  
	
  
 
Page12	
  
Consumer	
  Behavior	
  	
  
“Consumer	
  behavior	
  is	
  the	
  study	
  of	
  individuals,	
  groups,	
  or	
  organizations	
  and	
  the	
  
processes	
  they	
  use	
  to	
  select,	
  secure,	
  and	
  dispose	
  of	
  products,	
  services,	
  
experiences,	
  or	
  ideas	
  to	
  satisfy	
  needs	
  and	
  the	
  impacts	
  that	
  these	
  processes	
  have	
  
on	
  the	
  consumer	
  and	
  
society.	
  	
  
With	
  the	
  reference	
  of	
  
above	
  cite;	
  Consumer	
  
behavior	
  of	
  every	
  
individual	
  is	
  different	
  
from	
  other	
  depending	
  on	
  
buying	
  choices	
  which	
  is	
  
influenced	
  by	
  buying	
  
habits	
  and	
  choices	
  that	
  
are	
  turn	
  tampered	
  by	
  
psychological	
  and	
  social	
  
drivers	
  that	
  affects	
  
purchase	
  decision	
  process.	
  	
  
“We’re	
  not	
  aware	
  of	
  changing	
  our	
  minds	
  even	
  when	
  we	
  do	
  change	
  our	
  minds.	
  
And	
  most	
  people,	
  after	
  they	
  change	
  their	
  minds,	
  reconstruct	
  their	
  past	
  opinion	
  —	
  
they	
  believe	
  they	
  always	
  thought	
  that.”	
  	
  
As	
  quoted	
  above,	
  consumer	
  behavior	
  about	
  decision-­‐making	
  is	
  difficult	
  to	
  define	
  
and	
  is	
  a	
  system	
  of	
  short	
  cuts	
  and	
  rule	
  of	
  thumb,	
  which	
  is	
  unpredictable.	
  The	
  short	
  
cuts	
  in	
  decision	
  making	
  vary	
  from	
  person	
  to	
  person	
  and	
  focusing	
  on	
  the	
  past	
  
experience	
  of	
  consumers;	
  we	
  can	
  predict	
  the	
  future	
  trends	
  by	
  bringing	
  profitable	
  
products	
  and	
  services	
  into	
  the	
  market.	
  In	
  this	
  modern	
  world,	
  the	
  popularity	
  of	
  
interactive	
  media	
  like	
  the	
  World	
  Wide	
  Web	
  is	
  increasing	
  day	
  by	
  day	
  with	
  rapid	
  
pace.	
  With	
  reference	
  to	
  marketing	
  it	
  is	
  continuously	
  realized	
  that	
  the	
  main	
  two	
  
factors	
  observed	
  due	
  to	
  WWW	
  are:	
  
1)	
  Most	
  of	
  the	
  companies	
  are	
  doing	
  their	
  business	
  online	
  and	
  make	
  their	
  website	
  
as	
  showroom	
  of	
  their	
  product	
  and	
  services.	
  	
  
2)	
  Fast	
  increment	
  of	
  consumer	
  segments	
  due	
  to	
  increase	
  needs	
  and	
  demand	
  
including	
  online	
  shopping	
  as	
  well.	
  	
  
 
Page13	
  
Different Online Shopper Personality Traits:	
  
Online	
  shopping	
  continues	
  to	
  gain	
  popularity.	
  	
  Every	
  day	
  more	
  and	
  more	
  
people	
  make	
  the	
  leap	
  to	
  buy	
  online.	
  	
  Many	
  businesses	
  wish	
  to	
  capitalize	
  on	
  the	
  
momentum	
  in	
  the	
  online	
  retail	
  sector.	
  	
  Thanks	
  to	
  new	
  technology	
  that	
  
measures	
  the	
  way	
  consumers	
  behave	
  when	
  they	
  are	
  engaging	
  in	
  commerce	
  
activities,	
  retailers	
  are	
  now	
  beginning	
  to	
  understand	
  the	
  various	
  ways	
  that	
  
people	
  shop.	
  	
  These	
  consumer	
  insights	
  can	
  provide	
  targeted	
  incentives	
  to	
  those	
  
customers,	
  in	
  an	
  attempt	
  to	
  gain	
  their	
  business.	
  
There	
  are	
  many	
  different	
  online	
  shopper	
  personality	
  types,	
  or	
  behavioral	
  
characteristics	
  of	
  shoppers.	
  	
  Each	
  has	
  certain	
  traits,	
  and	
  skillful	
  marketing	
  
professionals	
  stress	
  the	
  importance	
  of	
  learning	
  each	
  type	
  in	
  order	
  to	
  design	
  
shopping	
  services	
  that	
  are	
  attractive	
  to	
  members	
  of	
  each	
  type	
  or	
  customer	
  
segment.	
  	
  Because	
  of	
  the	
  large	
  number	
  of	
  online	
  retailers,	
  online	
  shoppers	
  need	
  
to	
  be	
  wooed	
  with	
  an	
  online	
  shopping	
  experience	
  that	
  is	
  tailored	
  to	
  their	
  
specific	
  online	
  shopping	
  personality	
  type,	
  so	
  they	
  do	
  not	
  look	
  elsewhere	
  for	
  
their	
  purchases.	
  	
  The	
  following	
  is	
  a	
  list	
  of	
  some	
  of	
  the	
  most	
  common	
  Online	
  
Shopping	
  Personality	
  Types,	
  based	
  on	
  consumer	
  research	
  of	
  online	
  shoppers,	
  
in	
  no	
  particular	
  order:	
  
Recreational	
  Shoppers:	
  
Recreational	
  shoppers	
  are	
  all	
  over	
  
the	
  place.	
  	
  They	
  flit	
  from	
  one	
  website	
  
to	
  another	
  very	
  quickly,	
  and	
  only	
  
stop	
  when	
  a	
  truly	
  significant	
  deal	
  
catches	
  their	
  eye.	
  	
  You	
  have	
  to	
  really	
  
come	
  up	
  with	
  something	
  eye-­‐
catching	
  if	
  you	
  hope	
  to	
  catch	
  these	
  
customers. 	
  	
  These	
  are	
  customers	
  
that	
  like	
  to	
  click	
  on	
  ‘similar	
  product’	
  
links,	
  and	
  that	
  are	
  likely	
  to	
  spend	
  a	
  great	
  deal	
  of	
  time	
  at	
  your	
  online	
  retail	
  store	
  
if	
  your	
  present	
  enough	
  engaging	
  content	
  to	
  keep	
  them	
  there.	
  	
  
Deal	
  Hunters:	
  
Deal	
  hunters	
  are	
  in	
  search	
  of	
  the	
  holy	
  
grail	
  of	
  deals.	
  	
  They	
  purchase	
  items	
  
used	
  or	
  refurbished	
  if	
  it	
  will	
  get	
  them	
  
a	
  better	
  deal.	
  These	
  are	
  customers	
  
who	
  might	
  buy	
  an	
  item	
  they	
  don’t	
  
actually	
  need	
  if	
  you	
  present	
  them	
  
with	
  a	
  good	
  enough	
  deal	
  for	
  it.	
  	
  Deal	
  
hunters	
  are	
  also	
  often	
  on	
  the	
  lookout	
  
for	
  free	
  shipping	
  deals.	
  	
  Many	
  deal	
  
hunters	
  refuse	
  to	
  make	
  purchases	
  at	
  online	
  stores	
  that	
  do	
  not	
  offer	
  free	
  
shipping	
  if	
  they	
  can	
  find	
  a	
  competing	
  online	
  store	
  that	
  offers	
  the	
  same	
  product	
  
	
  
	
  
 
Page14	
  
with	
  free	
  shipping.	
  	
  
The	
  Flitter:	
  
These	
  shoppers	
  can	
  be	
  ‘the	
  fish	
  that	
  got	
  away’	
  if	
  you	
  are	
  not	
  careful.	
  	
  One	
  way	
  
to	
  keep	
  them	
  shopping	
  is	
  to	
  ensure	
  that	
  the	
  shopping	
  cart	
  on	
  your	
  website	
  
remains	
  active	
  for	
  a	
  long	
  time,	
  so	
  that	
  if	
  they	
  are	
  in	
  another	
  window	
  and	
  forget	
  
that	
  they	
  are	
  in	
  the	
  middle	
  of	
  a	
  transaction,	
  they	
  can	
  simply	
  return	
  and	
  finish	
  
it.	
  	
  If	
  the	
  shopping	
  cart	
  at	
  your	
  online	
  retail	
  store	
  times	
  out	
  and	
  the	
  items	
  are	
  no	
  
longer	
  there,	
  the	
  customer	
  is	
  less	
  likely	
  to	
  re-­‐add	
  the	
  items	
  to	
  the	
  cart	
  and	
  
purchase	
  them.	
  	
  
The	
  Researcher:	
  
Researchers	
  love	
  to	
  learn	
   everything	
  they	
  
can	
  about	
  a	
  product	
  before	
   purchasing	
  it	
  
online.	
  They	
  may	
  watch	
  a	
   product	
  for	
  a	
  
while	
  on	
  various	
  websites,	
  to	
   see	
  what	
  the	
  
average	
  price	
  is,	
  so	
  that	
  they	
   can	
  know	
  for	
  sure	
  
when	
  they	
  are	
  presented	
  with	
   a	
  price	
  whether	
  or	
  
not	
  it	
  is	
  a	
  good	
   deal.	
  	
  Researchers	
  
also	
  enjoy	
  reading	
  reviews	
   from	
  other	
  
customers,	
  and	
  regularly	
  rely	
   on	
  ratings	
  and	
  
reviews	
  when	
  deciding	
  what	
   to	
  purchase	
  online.	
  
Impatient	
  Shoppers:	
  
Impatient	
  shoppers	
  will	
  not	
  stick	
  around	
  if	
  your	
  
checkout	
  process	
  is	
  lengthy	
  and	
  
complicated. 	
  They	
  do	
  not	
  want	
  to	
  waste	
  time	
  
signing	
  up	
  for	
  an	
  account,	
  they	
  want	
  to	
  buy	
  their	
  
items	
  immediately,	
  and	
  if	
  you	
  cannot	
  provide	
  
them	
  with	
  immediate	
  checkout,	
  they	
  will	
  go	
  to	
  
another	
  website	
  that	
  will.	
  	
  To	
  capture	
  this	
  type	
  
of	
  online	
  shopper,	
  make	
  sure	
  that	
  your	
  website	
  
loads	
  quickly,	
  and	
  that	
  your	
  checkout	
  process	
  is	
  
as	
  streamlined	
  as	
  possible.	
  
Rewards	
  Shoppers:	
  
Many	
  online	
  shoppers	
  like	
  to	
  patronize	
  
the	
  same	
  online	
  retail	
  stores	
  
repeatedly.	
  These	
  brand	
  loyalists	
  enjoy	
  
customer	
  loyalty	
  programs	
  that	
  give	
  
rewards	
  or	
  points	
  for	
  purchases,	
  and	
  
love	
  to	
  take	
  part	
  in	
  deals	
  and	
  
promotions	
  that	
  make	
  them	
  feel	
  like	
  
they	
  are	
  working	
  towards	
  a	
  goal	
  with	
  
their	
  purchases.	
  	
  Rewards	
  shoppers	
  enjoy	
  taking	
  part	
  in	
  SMS	
  Text	
  Message	
  
Marketing	
  campaigns,	
  where	
  they	
  can	
  receive	
  messages	
  about	
  sales	
  and	
  
	
  
	
  
	
  
 
Page15	
  
specials	
  they	
  qualify	
  for	
  send	
  directly	
  to	
  their	
  personal	
  mobile	
  devices.	
  	
  	
  
Hipsters:	
  
Some	
  online	
  shoppers	
  only	
  purchase	
  high-­‐end	
  retail	
  brands.	
  	
  These	
  customers	
  
will	
  purchase	
  these	
  brands	
  from	
  various	
  sellers,	
  but	
  only	
  buy	
  the	
  very	
  best	
  and	
  
premium	
  brand	
  names,	
  and	
  also	
  generally	
  wish	
  to	
  purchase	
  the	
  latest	
  and	
  
newest	
  models	
  of	
  items.	
  	
  You	
  will	
  find	
  that	
  these	
  customers	
  are	
  willing	
  to	
  
spend	
  a	
  great	
  deal	
  of	
  money	
  in	
  order	
  to	
  get	
  top	
  of	
  the	
  line	
  items	
  that	
  are	
  hot,	
  
fresh,	
  and	
  in	
  style.	
  
Day	
  Dreamers:	
  
Some	
  people	
  really	
  love	
  to	
  make	
  wish	
  
lists.	
  	
  This	
  type	
  of	
  shopper	
  will	
  
typically	
  have	
  wish	
  lists	
  at	
  several	
  
online	
  retail	
  stores,	
  and	
  enjoys	
  
dreaming	
  about	
  their	
  ideal	
  purchases,	
  
but	
  needs	
  a	
  push	
  in	
  order	
  to	
  actualize	
  
the	
  transaction.	
  You	
  can	
  convince	
  them	
  
to	
  purchase	
  by	
  lowering	
  the	
  price	
  of	
  
items	
  on	
  their	
  wish	
  list,	
  so	
  that	
  they	
  
can’t	
  help	
  but	
  take	
  advantage	
  of	
  the	
  
savings	
  you	
  are	
  offering.	
  
Intrepid	
  Explorers:	
  
Some	
  online	
  shoppers	
  are	
  after	
  one	
  thing,	
  and	
  
only	
  one	
  thing.	
  	
  Those	
  shoppers	
  will	
  not	
  
purchase	
  anything	
  else	
  and	
  will	
  not	
  deviate	
  from	
  
their	
  quest	
  for	
  the	
  specific	
  item	
  until	
  they	
  find	
  
it.	
  Once	
  they	
  find	
  the	
  product	
  they	
  are	
  looking	
  
for,	
  they	
  may	
  reward	
  you	
  by	
  purchasing	
  
additional	
  items	
  from	
  your	
  online	
  store	
  because	
  
they	
  are	
  so	
  happy	
  that	
  they	
  found	
  what	
  they	
  are	
  
looking	
  for.	
  	
  This	
  type	
  of	
  shopper	
  typically	
  enjoys	
  
websites	
  that	
  have	
  search	
  functionality,	
  or	
  site	
  
maps	
  that	
  can	
  make	
  it	
  easy	
  to	
  pinpoint	
  the	
  item	
  
they	
  are	
  seeking.	
  
Consumer	
  insights	
  are	
  only	
  of	
  benefit	
  to	
  you	
  –	
  if	
  you	
  use	
  it.	
  	
  If	
  you	
  are	
  the	
  
owner	
  or	
  operator	
  of	
  an	
  online	
  retail	
  entity,	
  you	
  should	
  definitely	
  take	
  into	
  
account	
  the	
  variety	
  of	
  online	
  shopping	
  personality	
  types.	
  	
  Shoppers	
  will	
  reward	
  
you	
  by	
  making	
  more	
  purchases,	
  and	
  your	
  profit	
  margins	
  will	
  most	
  definitely	
  
rise!	
  	
  If	
  you	
  are	
  looking	
  to	
  increase	
  the	
  amount	
  of	
  customers	
  who	
  purchase	
  
items	
  from	
  your	
  online	
  store,	
  you	
  should	
  definitely	
  use	
  this	
  information	
  to	
  your	
  
advantage.	
  	
  
	
  
	
  
	
  
 
Page16	
  
Findings	
  and	
  Observations:	
  
	
  
Primary	
  Research	
  
	
  
§ FIGURE	
  -­‐	
  I	
  
	
  
60%$
29%$
7%$
2%$2%$
AGE$
16#25&
26#30&
31#39&
40#45&
Other&
	
  
	
  
From	
  the	
  figure	
  named	
  as	
  AGE	
  analysis,	
  it	
  is	
  clear	
  that	
  in	
  this	
  research	
  we	
  have	
  
41	
  frequencies	
  in	
  the	
  age	
  of	
  16-­‐25	
  with	
  percentage	
  60%,	
  which	
  is	
  the	
  highest	
  
percentage	
  among	
  other	
  age	
  distribution.	
  In	
  age	
  distribution	
  of	
  26-­‐30	
  we	
  have	
  
29%	
  and	
  7%	
  fall	
  in	
  31-­‐39	
  age	
  and	
  rest	
  percentage	
  fall	
  in	
  more	
  than	
  40-­‐45	
  years	
  
old	
  respondents.	
  The	
  questionnaire	
  responses	
  mainly	
  show	
  the	
  young	
  
generation,	
  which	
  is	
  actively	
  part	
  of	
  the	
  research.	
  	
  
§ FIGURE	
  -­‐	
  II	
  
 
Page17	
  
From	
  the	
  above	
  table	
  and	
  figure,	
  we	
  can	
  easily	
  analyze	
  that	
  majority	
  of	
  the	
  males	
  
are	
  respondents	
  of	
  the	
  survey	
  as	
  compared	
  to	
  females,	
  we	
  have	
  72%	
  of	
  males	
  
and	
  28%	
  percentage	
  of	
  females	
  have	
  participated	
  in	
  this	
  survey.	
  
§ FIGURE	
  –	
  III	
  
	
  
Among	
  all	
  the	
  respondents	
  44%	
  are	
  the	
  students,	
  29%	
  are	
  the	
  professionals,	
  
14%	
  are	
  doing	
  their	
  own	
  business	
  and	
  the	
  10%	
  are	
  self-­‐employed.	
  
§ FIGURE	
  -­‐	
  IV	
  
	
  
	
  
	
  
Majority	
  of	
  the	
  respondents	
  that	
  is	
  94%	
  of	
  the	
  total	
  respondents	
  are	
  using	
  the	
  
Internet	
  from	
  more	
  then	
  3	
  years.	
  
	
  
 
Page18	
  
§ FIGURE	
  –	
  V	
  
	
  
	
  
From	
  the	
  above	
  figure	
  we	
  can	
  see	
  that	
  55%	
  that	
  is	
  36	
  respondents	
  spend	
  more	
  
then	
  2	
  hours	
  on	
  internet	
  in	
  a	
  day	
  and	
  the	
  second	
  largest	
  majority	
  is	
  of	
  18	
  
respondents	
  that	
  is	
  28%	
  which	
  spends	
  1-­‐2	
  hour	
  a	
  day	
  on	
  internet.	
  
	
  
§ FIGURE	
  –	
  VI	
  
	
  
	
  
Above	
  figure	
  talks	
  about	
  the	
  Internet	
  services	
  respondents	
  used	
  for,	
  so	
  from	
  the	
  
given	
  options	
  in	
  the	
  questionnaire	
  we	
  can	
  say	
  that	
  social	
  websites	
  has	
  the	
  
leading	
  share	
  that	
  is	
  21%	
  and	
  communication	
  via	
  email	
  has	
  a	
  share	
  of	
  19%.	
  
Respondents	
  use	
  Internet	
  to	
  do	
  shopping	
  and	
  have	
  a	
  share	
  of	
  17%,	
  
product/service	
  information	
  got	
  15%	
  of	
  share	
  among	
  the	
  given	
  options	
  and	
  at	
  
the	
  end	
  research/education	
  has	
  16%	
  and	
  E-­‐newspaper/magazine	
  had	
  a	
  12%	
  of	
  
the	
  share.	
  
	
  
 
Page19	
  
	
  
§ FIGURE	
  –	
  VI	
  
	
  
	
  
This	
  figure	
  shows	
  that	
  54%	
  of	
  the	
  respondents	
  like	
  to	
  do	
  shopping	
  from	
  the	
  
stores	
  and	
  46%	
  of	
  the	
  total	
  respondents	
  prefer	
  to	
  do	
  online	
  shopping.	
  
	
  
§ FIGURE	
  –	
  VII	
  
	
  
	
  
	
  
This	
  shows	
  that	
  40	
  respondents	
  that	
  is	
  61%	
  gets	
  influenced	
  by	
  the	
  
advertisement	
  done	
  by	
  the	
  social	
  sites	
  and	
  26	
  respondents	
  that	
  is	
  39%	
  didn’t	
  get	
  
influenced.	
  
	
  
	
  
 
Page20	
  
§ FIGURE	
  –	
  VIII	
  
	
  
	
  
	
  
Majority	
  of	
  the	
  respondents	
  that	
  is	
  33%	
  sometimes	
  use	
  Internet	
  for	
  information	
  
prior	
  to	
  purchase	
  and	
  31%	
  use	
  Internet	
  very	
  often	
  for	
  the	
  same.	
  
	
  
§ FIGURE	
  –	
  IX	
  
	
  
	
  
E-­‐tickets	
  got	
  the	
  leading	
  share	
  of	
  28%	
  where	
  respondents	
  also	
  shop	
  apparels	
  
online	
  and	
  got	
  a	
  share	
  of	
  27%.	
  Electronics	
  and	
  computer	
  products	
  also	
  get	
  the	
  
share	
  of	
  21%	
  and	
  14%.	
  Respondents	
  don’t	
  like	
  to	
  shop	
  jewelry	
  and	
  furniture	
  
online	
  which	
  got	
  the	
  share	
  of	
  2%	
  and	
  3%	
  respectively.	
  
	
  
	
  
 
Page21	
  
§ FIGURE	
  –	
  X	
  
	
  
	
  
Above	
  graph	
  says	
  that	
  37%	
  of	
  the	
  respondents	
  usually	
  spend	
  2000-­‐5000	
  on	
  a	
  
single	
  purchase	
  which	
  is	
  a	
  good	
  amount	
  and	
  34%	
  spends	
  1000-­‐2000	
  and	
  the	
  
interesting	
  figure	
  is	
  that	
  14%	
  of	
  the	
  respondents	
  spend	
  more	
  than	
  5000	
  on	
  a	
  
single	
  purchase.	
  
	
  
§ FIGURE	
  –	
  XI	
  
	
  
	
  
	
  
We	
  can	
  easily	
  interpret	
  from	
  the	
  above	
  figure	
  that	
  Flipkart.com	
  has	
  the	
  leading	
  
share	
  of	
  frequently	
  preferred	
  pages	
  that	
  is	
  28%.	
  Ebay.in	
  and	
  Amazaon.in	
  has	
  the	
  
same	
  share	
  that	
  is	
  16%.	
  Fashionandyou.com	
  has	
  the	
  least	
  share	
  of	
  frequently	
  
preferred	
  pages	
  of	
  just	
  5%	
  which	
  means	
  that	
  respondents	
  don’t	
  like	
  to	
  buy	
  from	
  
is	
  page.	
  
 
Page22	
  
§ FIGURE	
  –	
  XII	
  
	
  
	
  
From	
  the	
  above	
  figure	
  we	
  can	
  analyze	
  that	
  30%	
  of	
  the	
  respondents	
  are	
  
influenced	
  by	
  the	
  best	
  deal	
  factor	
  whereas	
  28%	
  said	
  that	
  they	
  are	
  influenced	
  by	
  
promotions/offers.19%	
  of	
  the	
  total	
  consider	
  EMI	
  option/COD	
  as	
  a	
  influencing	
  
factor	
  and	
  rest	
  23%	
  thinks	
  that	
  buying	
  online	
  saves	
  their	
  time	
  which	
  is	
  an	
  
important	
  factor.	
  
	
  
§ FIGURE	
  –	
  XIII	
  
	
  
	
  
The	
  above	
  figure	
  shows	
  that	
  Prices	
  are	
  the	
  major	
  factor	
  which	
  effects	
  buying	
  
decision	
  with	
  34%	
  whereas	
  second	
  leading	
  factor	
  is	
  Reputation	
  of	
  the	
  company	
  
with	
  22%.	
  19%	
  respondents	
  said	
  that	
  Guarantees	
  and	
  Warrantees	
  effect	
  their	
  
buying	
  decision.	
  14%	
  and	
  11%	
  of	
  the	
  respondents	
  believe	
  that	
  Product	
  
 
Page23	
  
description	
  and	
  Delivery	
  time	
  are	
  the	
  factors,	
  which	
  effect	
  their	
  online	
  buying	
  
decision.	
  
	
  
§ FIGURE	
  –	
  XIV	
  
	
  
	
  
	
  
22%	
  of	
  the	
  total	
  respondents	
  respond	
  that	
  due	
  to	
  difficulty	
  in	
  returning	
  
products/items	
  they	
  don’t	
  buy	
  online	
  whereas	
  19%	
  of	
  respondents	
  have	
  a	
  fear	
  of	
  
fake	
  products.	
  Intangible	
  buying	
  is	
  also	
  a	
  factor	
  for	
  17%	
  of	
  respondents	
  and	
  15%	
  
believe	
  that	
  lack	
  of	
  trust	
  is	
  the	
  major	
  factor.	
  
	
  
§ FIGURE	
  –	
  XV	
  
	
  
	
  
 
Page24	
  
We	
  can	
  interpret	
  the	
  above	
  figure	
  like	
  45%	
  of	
  the	
  respondents	
  said	
  that	
  they	
  
shop	
  apparel	
  online	
  sometimes	
  and	
  24%	
  shop	
  rarely.	
  14%	
  of	
  the	
  respondents	
  
often	
  shop	
  apparel	
  online	
  and	
  only	
  8%	
  shop	
  apparel	
  frequently.	
  
	
  
§ FIGURE	
  –	
  XVI	
  
	
  
	
  
	
  
This	
  figure	
  shows	
  that	
  52%	
  of	
  the	
  total	
  respondents	
  mostly	
  buy	
  T-­‐shirts	
  and	
  
25%	
  used	
  to	
  buy	
  Shirts	
  whereas	
  10%	
  of	
  the	
  respondents	
  buy	
  some	
  other	
  
products	
  and	
  8%	
  respondents	
  mostly	
  buy	
  denims.	
  
	
  
§ FIGURE	
  –	
  XVII	
  
	
  
	
  
 
Page25	
  
Social	
  networks	
  influence	
  41%	
  of	
  the	
  respondents	
  while	
  buying	
  apparels	
  and	
  
29%	
  said	
  that	
  Fashion	
  websites	
  influence	
  them	
  while	
  buying	
  apparel.	
  
	
  
§ FIGURE	
  –	
  XVIII	
  
	
  
	
  
The	
  above	
  figure	
  shows	
  that	
  47%	
  of	
  the	
  respondents	
  believe	
  that	
  Variety	
  of	
  
collection	
  is	
  the	
  important	
  factor	
  while	
  buying	
  apparel	
  online	
  and	
  the	
  second	
  
leading	
  factor,	
  which	
  21%	
  of	
  the	
  respondents	
  believe,	
  is	
  Product	
  information.	
  
12%	
  of	
  the	
  respondents	
  said	
  Ease	
  of	
  returns	
  is	
  the	
  important	
  factor	
  while	
  buying	
  
apparel	
  online.	
  9%	
  of	
  the	
  total	
  respondents	
  said	
  that	
  Visual	
  content	
  is	
  the	
  factor.	
  
	
  
• FIGURE	
  –	
  XIX	
  
	
  
	
  
 
Page26	
  
From	
  the	
  last	
  figure	
  of	
  the	
  survey	
  we	
  can	
  interpret	
  that	
  majority	
  of	
  respondents	
  
that	
  is	
  45%	
  of	
  the	
  total	
  believe	
  that	
  the	
  Sizes	
  and	
  fits	
  are	
  the	
  important	
  factor	
  
which	
  effects	
  online	
  apparel	
  buying.	
  Second	
  factor	
  is	
  Quality	
  of	
  product	
  which	
  
41%	
  of	
  the	
  respondents	
  agreed	
  to.	
  According	
  to	
  8%	
  Quality	
  of	
  fabric	
  is	
  the	
  factor	
  
and	
  the	
  rest	
  6%	
  believe	
  in	
  some	
  other	
  factors	
  which	
  effects	
  online	
  apparel	
  
buying.	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
 
Page27	
  
Secondary	
  Research	
  
	
  
Understanding	
  Consumer	
  Online	
  buying	
  Behavior	
  
Researchers	
  have	
  proved	
  that	
  consumers’	
  decision	
  making	
  is	
  based	
  on	
  utility	
  
concept.	
  They	
  postulated	
  that	
  functional	
  and	
  non-­‐functional	
  motives	
  are	
  the	
  two	
  
personal	
  determinants	
  shaping	
  consumer-­‐shopping	
  behavior.	
  Functional	
  motive	
  
reflects	
  utilitarian	
  functions	
  or	
  task	
  related	
  functions	
  such	
  as	
  convenience,	
  
product	
  quality,	
  variety	
  of	
  product	
  offered	
  and	
  price	
  required	
  possessing	
  that	
  
product.	
  Non-­‐functional	
  motives	
  include	
  satisfaction	
  of	
  social	
  and	
  emotional	
  
needs.	
  They	
  are	
  often	
  termed	
  as	
  hedonic	
  motives	
  and	
  include	
  enjoyable	
  or	
  
interesting	
  shopping	
  experience.	
  Prior	
  researches	
  on	
  virtual	
  shopping	
  have	
  
suggested	
  that	
  most	
  online	
  shoppers	
  are	
  goal	
  directed	
  and	
  hence	
  there	
  is	
  a	
  
dominance	
  of	
  function-­‐	
  al	
  motives	
  over	
  non-­‐functional	
  motives.	
  It	
  is	
  important	
  
for	
  virtual	
  stores	
  to	
  identify	
  the	
  key	
  motivators	
  that	
  attract	
  Indian	
  consumers	
  in	
  
order	
  to	
  determine	
  key	
  areas	
  where	
  things	
  must	
  go	
  right.	
  Below	
  mentioned	
  are	
  
some	
  critical	
  reasons	
  derived	
  on	
  the	
  basis	
  of	
  literature	
  review	
  and	
  study	
  of	
  
market	
  statistics	
  that	
  makes	
  Indian	
  consumers	
  go	
  shopping	
  online.	
  
A. Product	
  Offerings	
  
An	
  easy	
  reach	
  to	
  the	
  hottest	
  brands	
  of	
  various	
  parts	
  of	
  the	
  world	
  with	
  doorstep	
  
delivery	
  and	
  ease	
  of	
  payment	
  facilities	
  in	
  home	
  currency	
  is	
  a	
  great	
  motivator	
  that	
  
prompts	
  traditional	
  Indian	
  customers	
  to	
  move	
  online.	
  As	
  per	
  research	
  conducted	
  
by	
  a	
  US	
  based	
  research	
  firm	
  Harris	
  interactive	
  about	
  74	
  %	
  adult	
  Indian	
  
customers	
  go	
  for	
  brand	
  while	
  purchasing	
  clothing	
  or	
  accessories.	
  One	
  other	
  
research	
  proved	
  that	
  a	
  large	
  percentage	
  of	
  people	
  turn	
  to	
  the	
  Internet	
  to	
  look	
  for	
  
the	
  products	
  that	
  they	
  cannot	
  find	
  anywhere	
  else.	
  The	
  penetration	
  of	
  branded	
  
outlets	
  in	
  tier	
  II/III	
  cities	
  is	
  much	
  lower	
  than	
  in	
  tier	
  I	
  cities.	
  The	
  desire	
  of	
  branded	
  
products	
  turn	
  people	
  of	
  tier	
  II/III	
  cities	
  to	
  go	
  online	
  as	
  virtual	
  stores	
  have	
  the	
  
capability	
  to	
  solve	
  this	
  availability	
  issues	
  faced	
  in	
  these	
  cities.	
  This	
  is	
  well	
  
supported	
  by	
  the	
  statistics	
  that	
  says	
  30-­‐40%	
  of	
  total	
  sales	
  revenue	
  of	
  e-­‐tailing	
  
industry	
  comes	
  from	
  tier	
  II/III	
  cities.	
  
B. Convenience	
  
Internet	
  provides	
  24/7	
  nonstop	
  services,	
  which	
  is	
  not	
  limited	
  by	
  time,	
  space	
  or	
  
weather.	
  Convenience	
  is	
  a	
  prime	
  motivator	
  in	
  online	
  shopping	
  and	
  virtual	
  stores	
  
provide	
  a	
  comfortable	
  and	
  convenient	
  shopping	
  environment.	
  The	
  comfort	
  of	
  
shopping	
  at	
  home	
  excites	
  customers	
  but	
  above	
  that	
  they	
  like	
  the	
  medium	
  
because	
  it	
  prevents	
  them	
  from	
  standing	
  in	
  long	
  queue.	
  Products	
  or	
  services	
  that	
  
may	
  require	
  a	
  long	
  waiting	
  time	
  if	
  opted	
  through	
  traditional	
  modes	
  like	
  movie	
  
tickets,	
  train	
  or	
  flight	
  reservations	
  or	
  various	
  banking	
  services	
  have	
  gained	
  easy	
  
and	
  huge	
  acceptance	
  by	
  Indian	
  consumers.	
  Although	
  online	
  shopping	
  is	
  new	
  for	
  
Indian	
  and	
  they	
  are	
  apprehensive	
  regarding	
  reliability	
  and	
  trust	
  issues,	
  the	
  
benefit	
  of	
  convenience	
  particularly	
  for	
  these	
  products	
  increases	
  the	
  total	
  utility	
  
customers	
  perceive	
  about	
  using	
  online	
  medium.	
  Online	
  travel	
  hence	
  dominates	
  
in	
  total	
  e	
  commerce	
  revenue.	
  28%	
  of	
  travel	
  today	
  in	
  India	
  gets	
  booked	
  online	
  
 
Page28	
  
where	
  IRCTC	
  alone	
  accounts	
  for	
  117	
  million	
  transactions.	
  Sites	
  like	
  
BookmyShow.com,	
  makemytrip.com,	
  flipcart.com	
  etc.	
  understood	
  this	
  motive	
  of	
  
Indian	
  consumers	
  and	
  provided	
  them	
  with	
  excellent	
  customer	
  experience,	
  which	
  
made	
  them	
  a	
  hit	
  in	
  the	
  country.	
  
C. Cost	
  Saving	
  
It	
  is	
  said	
  that	
  one	
  of	
  the	
  important	
  motivator	
  for	
  online	
  consumers	
  is	
  cost	
  saving.	
  
Indian	
  goes	
  online	
  in	
  search	
  of	
  good	
  discounts	
  and	
  offers.	
  It	
  is	
  in	
  fact	
  a	
  belief	
  that	
  
Indian	
  E-­‐commerce	
  industry	
  is	
  growing	
  on	
  the	
  back	
  of	
  deep	
  discounting.	
  
Discounts	
  on	
  product	
  price	
  and	
  free	
  shipping	
  is	
  perceived	
  as	
  a	
  premium	
  for	
  the	
  
risk	
  they	
  take	
  on	
  buying	
  a	
  product	
  without	
  inspection	
  and	
  price	
  war	
  among	
  
different	
  websites	
  have	
  made	
  it	
  an	
  expected	
  feature.	
  According	
  to	
  a	
  discount	
  site	
  
snapdeal.com	
  they	
  sold	
  300	
  Gucci	
  wallets	
  in	
  just	
  45	
  minutes	
  on	
  a	
  day	
  when	
  they	
  
offered	
  77%	
  discount	
  and	
  on	
  an	
  average	
  they	
  are	
  able	
  to	
  sell	
  25000	
  deals	
  in	
  a	
  
day.	
  The	
  same	
  fact	
  is	
  also	
  supported	
  by	
  the	
  report	
  of	
  Comscore	
  that	
  says	
  coupon	
  
sites	
  are	
  gaining	
  popularity	
  in	
  India	
  with	
  16.5%	
  of	
  Indian	
  online	
  population	
  
visiting	
  these	
  sites.	
  
D. Richness	
  of	
  Information	
  
The	
  most	
  confusing	
  and	
  costly	
  stage	
  in	
  respect	
  to	
  time	
  and	
  money	
  in	
  consumer	
  
decision-­‐making	
  process	
  is	
  evaluation	
  of	
  different	
  alternatives,	
  which	
  becomes	
  
even	
  more	
  prominent	
  when	
  the	
  products	
  are	
  of	
  high	
  involvement	
  nature.	
  
Comparison	
  websites	
  and	
  customers	
  information	
  sites	
  by	
  helping	
  customers	
  at	
  
this	
  stage	
  not	
  only	
  acts	
  as	
  the	
  first	
  in	
  the	
  transaction	
  series	
  of	
  buyer	
  and	
  seller	
  
but	
  also	
  reduces	
  customers	
  frustration	
  by	
  helping	
  him	
  locate	
  a	
  range	
  of	
  products	
  
with	
  detailed	
  price	
  and	
  feature	
  comparison	
  without	
  much	
  physical	
  or	
  monetary	
  
loss.	
  Indian	
  statistics	
  revealed	
  that	
  comparison	
  sites	
  have	
  witnessed	
  a	
  growth	
  of	
  
25%	
  in	
  2012	
  as	
  compared	
  to	
  previous	
  year	
  with	
  5.8	
  million	
  online	
  users	
  visiting	
  
these	
  sites	
  for	
  their	
  deals.	
  They	
  have	
  75%	
  year	
  on	
  year	
  and	
  are	
  dominating	
  
Indian	
  retail	
  online	
  market	
  with	
  a	
  penetration	
  rate	
  of	
  15%.	
  Portals	
  and	
  
classifieds	
  that	
  provide	
  customized	
  information	
  are	
  very	
  popular	
  in	
  Indian	
  
market.	
  Portals	
  attract	
  high	
  traffic	
  with	
  more	
  than	
  50%	
  of	
  Internet	
  users	
  visiting	
  
top	
  portals.	
  	
  
Some	
  Facts	
  of	
  Digital	
  India	
  
• Indian	
  online	
  population	
  grows	
  steadily	
  with	
  a	
  growth	
  of	
  31%	
  over	
  one	
  
year.	
  
• India	
  has	
  205	
  million	
  Internet	
  users,	
  which	
  will	
  increase	
  up	
  to	
  350	
  million	
  
by	
  2015	
  in	
  which	
  61%	
  of	
  the	
  total	
  are	
  men	
  and	
  rest	
  39%	
  are	
  women.	
  
• India’s	
  online	
  population	
  skews	
  significantly	
  younger	
  than	
  other	
  BRIC	
  
countries	
  with	
  75%	
  under	
  the	
  age	
  of	
  35.	
  
 
Page29	
  
	
  
• 21	
  million	
  users	
  visit	
  online	
  sites/social	
  media	
  
• 40	
  million	
  check	
  online	
  reviews	
  
• 57	
  million	
  wants	
  Brand	
  related	
  Information	
  
• Fastest	
  Growing	
  Web	
  categories	
  in	
  India	
  
	
  
Blogs	
  category	
  showed	
  phenomenal	
  growth,	
  adding	
  11.6	
  million	
  new	
  users.	
  
• 86%	
  of	
  the	
  Indian	
  web	
  users	
  visit	
  a	
  social	
  networking	
  site.	
  
• India	
  has	
  950	
  million	
  Mobile	
  users,	
  which	
  is	
  the	
  fastest	
  growing	
  Mobile	
  
Subscriber	
  Base	
  in	
  the	
  World.	
  
• Almost	
  half	
  of	
  the	
  Mobile	
  Internet	
  users	
  are	
  less	
  than	
  25	
  years	
  that	
  is	
  48%	
  
of	
  the	
  total	
  users.	
  
• 110	
  million	
  are	
  active	
  users,	
  which	
  uses	
  Internet	
  on	
  their	
  mobile.	
  
• Messaging	
  and	
  Social	
  apps	
  have	
  a	
  year-­‐on-­‐year	
  growth	
  of	
  203%	
  whereas	
  
 
Page30	
  
lifestyle	
  and	
  shopping	
  had	
  a	
  growth	
  of	
  77%.	
  
• 95%	
  of	
  smart	
  phone	
  users	
  used	
  to	
  search	
  for	
  local	
  information,	
  91%	
  of	
  
the	
  total	
  used	
  to	
  research	
  their	
  products	
  and	
  54%	
  of	
  the	
  smart	
  phone	
  
users	
  made	
  a	
  purchase	
  via	
  their	
  phones.	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
 
Page31	
  
Some	
  facts	
  from	
  KPMG	
  report	
  on	
  Emerging	
  Consumer	
  
Segments	
  in	
  India	
  (Feb	
  2014)	
  	
  
	
  
According	
  to	
  the	
  above	
  figure,	
  it’s	
  clear	
  that	
  the	
  87%	
  of	
  the	
  total	
  online	
  
population	
  users	
  access	
  the	
  Internet	
  from	
  their	
  mobiles,	
  which	
  is	
  the	
  huge	
  
percentage.	
  One	
  fact	
  can	
  also	
  see	
  from	
  the	
  above	
  figure	
  that	
  36%	
  of	
  the	
  total	
  
online	
  population	
  i.e.	
  164.81	
  million	
  (Mar	
  –	
  13)	
  is	
  of	
  age	
  group	
  15-­‐24	
  years	
  
which	
  is	
  significantly	
  a	
  larger	
  share	
  than	
  the	
  global	
  internet	
  users	
  of	
  the	
  same	
  
age	
  group.	
  This	
  research	
  of	
  KPMG	
  also	
  says	
  that	
  50%	
  of	
  the	
  consumers	
  used	
  to	
  
buy	
  mobile	
  phones	
  online	
  whereas	
  25%	
  of	
  the	
  online	
  population	
  used	
  to	
  buy	
  
apparel/accessories	
  /shoes.	
  
	
  
	
  
	
  
 
Page32	
  
The	
  above	
  given	
  data	
  of	
  KPMG	
  report	
  says	
  that	
  there	
  is	
  a	
  increase	
  in	
  Internet	
  
penetration	
  in	
  smaller	
  cities	
  which	
  acted	
  as	
  a	
  key	
  enabler	
  for	
  the	
  growth	
  of	
  e-­‐
commerce	
  in	
  such	
  regions.	
  Share	
  of	
  revenues	
  of	
  the	
  e-­‐commerce	
  websites	
  from	
  
these	
  smaller	
  cities	
  are	
  very	
  interesting	
  like	
  Jabong.com	
  has	
  a	
  share	
  of	
  50%	
  from	
  
such	
  cities	
  and	
  Myntra.com	
  has	
  a	
  share	
  of	
  55%	
  from	
  these	
  smaller	
  cities.	
  We	
  can	
  
also	
  find	
  that	
  from	
  the	
  research	
  that	
  there	
  is	
  27%	
  increase	
  in	
  consumer	
  
complaints	
  for	
  e-­‐commerce	
  firms.	
  There	
  key	
  issues	
  we	
  can	
  analyze	
  are	
  wrong	
  
delivery,	
  defective	
  products,	
  lack	
  of	
  warranty	
  and	
  delay	
  in	
  delivery/funds.	
  
	
  
	
  
	
  
Consumer	
  Behaviors	
  Changing	
  Online	
  Marketing	
  
	
  
i. Consumers	
  shift	
  to	
  More	
  Sophisticated	
  Queries	
  
As	
  the	
  Internet	
  and	
  e-­‐commerce	
  have	
  evolved,	
  consumers	
  have	
  been	
  conditioned	
  
to	
  be	
  more	
  specific	
  about	
  what	
  they	
  are	
  searching	
  for	
  online.	
  	
  This	
  increases	
  the	
  
chance	
  of	
  finding	
  the	
  exact	
  product	
  they	
  desire.	
  Studies	
  consistently	
  show	
  that	
  
search	
  queries	
  are	
  becoming	
  longer.	
  	
  Hit	
  wise	
  reported	
  that	
  queries	
  that	
  were	
  
less	
  than	
  three	
  words	
  were	
  declining	
  and	
  those	
  between	
  four	
  to	
  eight	
  words	
  
were	
  growing	
  year-­‐over-­‐year	
  from	
  3%-­‐20%.	
  What’s	
  more,	
  the	
  longer	
  the	
  query	
  
the	
  more	
  likely	
  the	
  searcher	
  was	
  to	
  convert.	
  	
  	
  
ii. Consumers	
  Embrace	
  A	
  Visual	
  Culture	
  
Whether	
  consumers	
  are	
  shopping	
  for	
  a	
  camera,	
  shoes	
  or	
  a	
  specific	
  bolt,	
  one	
  way	
  
to	
  verify	
  what	
  they	
  are	
  getting	
  is	
  through	
  imagery.	
  	
  Shoppers,	
  bombarded	
  with	
  
data,	
  seek	
  the	
  simplicity	
  of	
  images	
  as	
  short	
  hand.	
  	
  Images	
  validate	
  and	
  capture	
  
interest,	
  hence	
  the	
  rise	
  of	
  sites	
  like	
  Pintrest,	
  Instagram	
  and	
  others.	
  	
  According	
  to	
  
the	
  Search	
  Engine	
  Journal,	
  images	
  ranked	
  higher	
  than	
  product-­‐specific	
  details,	
  
descriptions,	
  ratings	
  or	
  reviews	
  in	
  driving	
  purchase	
  decisions.	
  	
  Yahoo’s	
  recent	
  
billion-­‐dollar	
  acquisition	
  of	
  Tumblr	
  reaffirms	
  that	
  search	
  and	
  content	
  companies	
  
believe	
  this	
  is	
  the	
  way	
  of	
  the	
  future.	
  
iii. Consumers	
  Rely	
  on	
  the	
  Opinion	
  of	
  Others	
  
 
Page33	
  
While	
  images	
  help	
  validate	
  that	
  shoppers	
  have	
  found	
  the	
  right	
  product,	
  reviews	
  
and	
  recommendations	
  validate	
  the	
  quality	
  of	
  the	
  product	
  that	
  consumers	
  are	
  
shopping	
  for.	
  Hub	
  Spot	
  found	
  that	
  71%	
  of	
  people	
  were	
  more	
  likely	
  to	
  make	
  a	
  
purchase	
  based	
  on	
  friends’	
  social	
  media	
  suggestions	
  and	
  70%	
  trusted	
  consumer	
  
reviews.	
  	
  Social	
  media	
  and	
  reviews	
  engender	
  consumer	
  trust.	
  
iv. Consumers	
  Want	
  the	
  Facts	
  
Armed	
  with	
  the	
  information	
  gleaned	
  from	
  social	
  networks	
  and	
  reviews,	
  
consumers	
  want	
  specific	
  details	
  about	
  products	
  quickly.	
  Moreover,	
  they	
  want	
  
data—not	
  marketing	
  spin.	
  Customers	
  would	
  rather	
  see	
  “18-­‐mega-­‐pixel”	
  than	
  
“crystal	
  clear	
  images.”	
  This	
  information	
  ensures	
  that	
  the	
  shopper	
  is	
  getting	
  
exactly	
  what	
  they	
  want,	
  not	
  an	
  imitation	
  or	
  variation	
  of	
  the	
  product.	
  	
  
v. Consumers	
  Feel	
  that	
  Price	
  Matters	
  
Queries,	
  images,	
  reviews	
  and	
  specs,	
  guide	
  consumers	
  along	
  the	
  purchase	
  
path.	
  	
  However,	
  price	
  is	
  critical	
  to	
  that	
  last	
  step—purchase.	
  	
  Consumers	
  are	
  
willing	
  to	
  put	
  some	
  effort	
  into	
  this	
  step	
  as	
  is	
  evident	
  by	
  the	
  emergence	
  of	
  
programs	
  like	
  Red	
  Laser	
  and	
  the	
  recent	
  trend	
  of	
  show	
  rooming.	
  	
  Whether	
  
browsing	
  in	
  store	
  or	
  online,	
  consumers	
  don’t	
  want	
  to	
  overspend.	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
 
Page34	
  
Social	
  Media	
  Comparison	
  Chart:	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
 
Page35	
  
Recommendations	
  
From	
  the	
  findings	
  from	
  the	
  Primary	
  and	
  Secondary	
  Research	
  below	
  are	
  the	
  
following	
  recommendations:	
  
• Target	
  the	
  age	
  group	
  of	
  16-­‐35,	
  as	
  this	
  is	
  the	
  only	
  age	
  group,	
  which	
  has	
  a	
  
greater	
  percentage	
  in	
  terms	
  of	
  online	
  buying.	
  
• Advertise	
  more	
  on	
  social	
  sites	
  because	
  consumers	
  are	
  influenced	
  by	
  the	
  
advertisement	
  done	
  on	
  social	
  sites.	
  
• Provide	
  consumers	
  the	
  best	
  deal	
  as	
  well	
  as	
  price	
  comparatively	
  to	
  other	
  
brands.	
  
• Difficulty	
  in	
  returning	
  of	
  products/items	
  is	
  a	
  barrier/reason,	
  consumers	
  
don’t	
  want	
  to	
  buy	
  online.	
  So,	
  brand	
  should	
  come	
  up	
  with	
  a	
  policy	
  to	
  
overcome	
  this	
  barrier.	
  
• Consumer	
  expects	
  a	
  variety	
  of	
  collection	
  while	
  buying	
  online,	
  so	
  brand	
  
make	
  sure	
  that	
  its	
  complete	
  merchandise	
  of	
  SS/AW	
  must	
  be	
  available	
  
online	
  specially	
  t-­‐shirts	
  and	
  shirts	
  because	
  most	
  of	
  the	
  consumer	
  buy	
  t-­‐
shirts	
  and	
  shirts	
  only.	
  
• To	
  gain	
  the	
  trust	
  of	
  the	
  consumers	
  brand	
  must	
  make	
  sure	
  that	
  it	
  doesn’t	
  
compromise	
  with	
  the	
  quality	
  of	
  the	
  product	
  and	
  focus	
  on	
  the	
  sizes	
  and	
  fits	
  
because	
  consumers	
  had	
  a	
  perception	
  that	
  if	
  they	
  are	
  getting	
  a	
  good	
  deal	
  
online	
  so	
  its	
  not	
  a	
  quality	
  product.	
  
• As	
  figured	
  from	
  the	
  secondary	
  research	
  there	
  are	
  a	
  lot	
  consumers	
  which	
  
uses	
  and	
  shop	
  through	
  mobile.	
  So,	
  brand	
  should	
  come	
  up	
  with	
  a	
  mobile	
  
app	
  through	
  which	
  consumers	
  can	
  browse	
  and	
  shop	
  products.	
  	
  
	
  
Instagram	
  for	
  Business	
  Branding	
  -­‐	
  A	
  New	
  Superhero	
  in	
  Social	
  
Platforms	
  
While	
  many	
  people	
  are	
  busy	
  promoting	
  themselves	
  with	
  selfies	
  all	
  over	
  the	
  
social	
  networks,	
  Instagram	
  specifically	
  is	
  gaining	
  recognition	
  in	
  another	
  arena.	
  
Business	
  Branding.	
  As	
  this	
  platform	
  continues	
  to	
  grow,	
  more	
  and	
  more	
  
companies	
  are	
  realizing	
  that	
  it	
  can	
  be	
  a	
  super	
  tool	
  to	
  generate	
  exposure	
  for	
  their	
  
business.	
  So	
  much	
  so	
  we	
  were	
  inspired	
  to	
  research	
  and	
  share	
  some	
  tips,	
  which	
  
will	
  help,	
  make	
  it	
  work	
  for	
  you	
  and	
  may	
  give	
  your	
  branding	
  a	
  boost	
  of	
  power:	
  
START	
  
Get	
  started!	
  First	
  and	
  foremost,	
  get	
  it	
  going.	
  Be	
  sure	
  to	
  optimize	
  your	
  profile…	
  
include	
  your	
  brand	
  identification,	
  information	
  and	
  contact	
  details.	
  Create	
  a	
  clear	
  
presence	
  and	
  goal	
  for	
  your	
  business	
  through	
  your	
  new	
  super	
  powered	
  social	
  
account.	
  
 
Page36	
  
QUALITY	
  
Make	
  sure	
  that	
  the	
  pictures	
  you	
  post	
  look	
  great!	
  Washed	
  out,	
  grainy,	
  or	
  just	
  plain	
  
lousy	
  looking	
  photos	
  of	
  your	
  products/services	
  are	
  a	
  sure	
  way	
  not	
  to	
  sell	
  
anything.	
  Also	
  be	
  aware	
  of	
  the	
  background…	
  is	
  there	
  a	
  lot	
  going	
  on	
  in	
  the	
  
background	
  that	
  will	
  take	
  away	
  from	
  what	
  you	
  want	
  to	
  feature?	
  Is	
  there	
  a	
  small	
  
child	
  sucking	
  his	
  thumb?	
  Watch	
  for	
  things	
  like	
  that	
  and	
  make	
  them	
  fun	
  with	
  a	
  
balance	
  of	
  business.	
  
	
  
CONTESTS	
  
	
  
Instagram	
  is	
  a	
  great	
  place	
  for	
  contests	
  and	
  giveaways	
  so	
  why	
  not	
  take	
  advantage	
  
of	
  it?	
  Create	
  the	
  campaign	
  you	
  want	
  and	
  what	
  you	
  will	
  be	
  giving	
  away,	
  just	
  keep	
  
it	
  simple.	
  The	
  most	
  popular	
  types	
  of	
  contests	
  involve	
  users	
  submitting	
  photos	
  of	
  
them	
  using	
  your	
  product	
  or	
  possibly	
  sharing	
  a	
  picture	
  that	
  you	
  designate.	
  Don’t	
  
forget	
  to	
  promote	
  the	
  right	
  contest	
  #hashtag.	
  
	
  
REWARDS	
  
Reward	
  your	
  followers	
  with	
  discounts.	
  Most	
  users	
  follow	
  your	
  company	
  because	
  
they	
  like	
  your	
  product,	
  right?	
  Why	
  not	
  reward	
  them	
  for	
  it?	
  Happy	
  followers	
  are	
  
more	
  likely	
  to	
  let	
  their	
  friends	
  know	
  that	
  they	
  should	
  be	
  following	
  you	
  too!	
  
DISCOUNTS	
  
Let’s	
  say	
  that	
  you	
  don’t	
  want	
  to	
  offer	
  a	
  discount	
  to	
  every	
  person	
  that	
  follows	
  you	
  
though,	
  maybe	
  just	
  a	
  select	
  few	
  that	
  always	
  engage	
  with	
  you?	
  Take	
  advantage	
  of	
  
Instagram	
  Direct	
  then.	
  Create	
  a	
  group	
  that	
  consists	
  of	
  your	
  best	
  followers	
  and	
  
use	
  this	
  direct	
  messaging	
  feature	
  to	
  make	
  them	
  privy	
  of	
  discounts,	
  new	
  products	
  
that	
  available,	
  etc.	
  
	
  
LINK	
  TO	
  NOWHERE	
  
Nothing	
  worse	
  than	
  seeing	
  something	
  that	
  you	
  want	
  and	
  then	
  has	
  to	
  search	
  
endlessly	
  for	
  where	
  to	
  buy	
  it!	
  It’s	
  a	
  guaranteed	
  way	
  to	
  lose	
  business	
  as	
  people	
  
lose	
  patience	
  quickly,	
  so	
  do	
  yourself	
  and	
  your	
  followers	
  a	
  favor	
  by	
  making	
  it	
  
easy.	
  Simply	
  include	
  a	
  link	
  that	
  will	
  take	
  them	
  right	
  where	
  they	
  need	
  to	
  be	
  to	
  
spend	
  that	
  money!	
  
	
  
DON’T	
  OVER	
  SELFIE	
  
Don’t	
  over	
  do	
  the	
  self-­‐promotion.	
  Obviously	
  the	
  primary	
  objective	
  is	
  to	
  sell	
  your	
  
product	
  but	
  don’t	
  drive	
  it	
  down	
  your	
  followers	
  throats!	
  Posting	
  other	
  industry	
  
related	
  photos	
  and	
  even	
  photos	
  that	
  show	
  your	
  personal	
  interests	
  is	
  a	
  great	
  
addition,	
  as	
  they	
  can	
  give	
  a	
  glimpse	
  behind	
  the	
  curtain,	
  so	
  to	
  speak.	
  But	
  
remember	
  that	
  everything	
  you	
  post,	
  on	
  any	
  social	
  network,	
  represents	
  your	
  
 
Page37	
  
business	
  so	
  keep	
  it	
  respectable.	
  
	
  
VIDEO	
  
And	
  don’t	
  forget	
  about	
  those	
  videos.	
  The	
  new	
  Video	
  on	
  Instagram	
  feature	
  is	
  a	
  big	
  
hit	
  with	
  its	
  length	
  and	
  filter	
  functionality.	
  Next,	
  be	
  sure	
  to	
  embed	
  your	
  Instagram	
  
Video	
  on	
  your	
  blog	
  and	
  website.	
  You	
  know	
  what	
  you’re	
  doing	
  creating	
  that	
  cross	
  
promotion	
  between	
  you’re	
  social	
  marketing	
  and	
  your	
  end	
  goals.	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
 
Page38	
  
Road	
  Map	
  for	
  Instagram	
  
• Create	
  your	
  Instagram	
  for	
  Business	
  account	
  -­‐	
  It’s	
  easy	
  to	
  make	
  a	
  
business	
  account	
  on	
  Instagram.	
  
• Make	
  a	
  business	
  username	
  -­‐	
  Use	
  your	
  business	
  name	
  as	
  your	
  username.	
  
If	
  it	
  is	
  taken,	
  choose	
  a	
  username	
  that	
  is	
  instantly	
  recognized	
  with	
  your	
  
brand.	
  
• Complete	
  your	
  profile	
  -­‐	
  Include	
  a	
  cool,	
  branded	
  photo,	
  a	
  short	
  
informative	
  bio,	
  and	
  a	
  link	
  to	
  your	
  website.	
  
• Connect	
  your	
  account	
  to	
  Facebook	
  -­‐	
  Instagram	
  is	
  owned	
  by	
  Facebook.	
  
Connect	
  these	
  two	
  very	
  powerful	
  social	
  media	
  sites	
  to	
  boost	
  your	
  
marketing	
  efforts.	
  
• Make	
  an	
  Instagram	
  tab	
  on	
  your	
  Facebook	
  page	
  -­‐	
  this	
  enables	
  you	
  to	
  
instantly	
  share	
  your	
  Instagram	
  photos	
  to	
  your	
  Facebook	
  Fans.	
  
• Create	
  a	
  brand	
  specific	
  strategy	
  -­‐	
  Keep	
  your	
  Instagram	
  content	
  strategy	
  
focused	
  on	
  your	
  brand’s	
  unique	
  way	
  of	
  seeing	
  the	
  world.	
  Instagram	
  is	
  a	
  
photo	
  (and	
  now	
  video)	
  sharing	
  site.	
  Connect	
  your	
  business	
  with	
  your	
  
‘tribe’	
  on	
  Instagram	
  in	
  a	
  consistent	
  and	
  particular	
  visual	
  way.	
  
Use	
  Hashtags	
  
• Use	
  hashtags	
  (#’s)	
  in	
  your	
  updates	
  -­‐	
  Hashtags	
  are	
  a	
  major	
  part	
  of	
  
Instagram.	
  It’s	
  a	
  big	
  way	
  of	
  how	
  users	
  can	
  find	
  you	
  through	
  their	
  mobile	
  
Instagram	
  searches.	
  Unlike	
  on	
  other	
  sites	
  (such	
  as	
  Twitter),	
  you’re	
  not	
  
limited	
  by	
  character	
  count.	
  Include	
  a	
  few	
  tags	
  (but	
  not	
  too	
  many	
  -­‐	
  or	
  you’ll	
  
look	
  desperate)	
  in	
  your	
  posts	
  to	
  get	
  connected.	
  
• Use	
  brand	
  specific	
  #’s	
  -­‐	
  Include	
  your	
  business	
  name	
  in	
  some	
  of	
  your	
  post	
  
hashtags.	
  Also,	
  use	
  unique	
  tags	
  for	
  particular	
  marketing	
  campaigns	
  you	
  
run.	
  For	
  example,	
  if	
  you’re	
  hosting	
  a	
  photo	
  contest	
  on	
  Instagram,	
  make	
  a	
  
unique	
  tag	
  just	
  for	
  that	
  campaign.	
  This	
  tactic	
  both	
  promotes	
  your	
  contest,	
  
and	
  it	
  gives	
  your	
  consumers	
  a	
  distinct	
  tag	
  to	
  connect	
  with	
  others	
  
participants	
  (so	
  they	
  can	
  see	
  their	
  competition!).	
  
• Use	
  general	
  #’s	
  -­‐	
  Include	
  general	
  tags	
  on	
  your	
  posts,	
  to	
  be	
  found	
  for	
  your	
  
products	
  or	
  lifestyle	
  posts.	
  For	
  example,	
  if	
  your	
  business	
  is	
  a	
  coffee	
  shop,	
  
and	
  you	
  post	
  an	
  image	
  of	
  your	
  scrumptious	
  latte,	
  include	
  tags	
  like	
  #latte	
  
or	
  even	
  #coffee.	
  
 
Page39	
  
• Use	
  trending	
  #’s	
  -­‐	
  Trends	
  on	
  Instagram	
  can	
  happen	
  at	
  lightning	
  speed	
  -­‐	
  
and	
  they	
  are	
  often	
  even	
  quicker	
  to	
  go.	
  If	
  you	
  spot	
  a	
  trend,	
  and	
  it	
  fits	
  with	
  
your	
  brand,	
  use	
  it.	
  Your	
  post	
  could	
  literally	
  be	
  seen	
  by	
  thousands	
  of	
  
interested	
  consumers	
  in	
  a	
  matter	
  a	
  minutes.	
  
• Explore	
  and	
  engage	
  on	
  #’s	
  -­‐	
  Be	
  sure	
  to	
  keep	
  exploring	
  for	
  new	
  and	
  
relevant	
  hashtags	
  on	
  Instagram.	
  Use	
  them	
  in	
  your	
  posts.	
  If	
  they	
  are	
  active	
  
tags,	
  take	
  your	
  social	
  media	
  marketing	
  time	
  to	
  connect	
  with	
  users	
  of	
  it	
  by	
  
loving	
  their	
  posts	
  and	
  commenting.	
  It	
  can	
  be	
  a	
  very	
  cool	
  way	
  to	
  get	
  
connected	
  with	
  (and	
  market	
  to)	
  even	
  more	
  Instagram	
  users	
  around	
  the	
  
world.	
  
• Monitor	
  your	
  brand	
  #hashtags	
  -­‐	
  Your	
  consumers	
  are	
  using	
  your	
  tags	
  to	
  
connect	
  with	
  you.	
  Be	
  sure	
  to	
  keep	
  checking	
  your	
  Instagram	
  #’s,	
  just	
  like	
  
you	
  would	
  your	
  Facebook	
  Page	
  and	
  Twitter	
  mentions.	
  Respond	
  to	
  
comments	
  and	
  concerns	
  quickly,	
  and	
  you’ll	
  build	
  happy	
  customer	
  
relationships.	
  
Focus	
  on	
  Your	
  Customers	
  
• Make	
  your	
  followers	
  famous	
  	
  -­‐	
  Share	
  follower’s	
  photos	
  on	
  your	
  social	
  
sites.	
  Show	
  your	
  customers	
  you	
  appreciate	
  them	
  by	
  acknowledging	
  their	
  
cool	
  photos,	
  and	
  share	
  them	
  with	
  your	
  Facebook	
  fan	
  or	
  Twitter	
  followers.	
  
NOTE:	
  be	
  sure	
  to	
  ask	
  permission	
  to	
  use	
  their	
  photo	
  first!	
  
• Embed	
  followers’	
  photos	
  -­‐	
  Instagram	
  now	
  enables	
  you	
  to	
  embed	
  
Instagram	
  photos	
  on	
  your	
  website	
  and	
  other	
  sites.	
  Use	
  this,	
  like	
  
Starbucks,	
  to	
  show	
  cool	
  images	
  of	
  your	
  brand	
  and	
  product	
  from	
  your	
  
Instagram	
  followers	
  by	
  embedding	
  the	
  entire	
  post.	
  Make	
  sure	
  you	
  tell	
  
them	
  you’re	
  showcasing	
  their	
  image,	
  to	
  make	
  them	
  feel	
  appreciated,	
  and	
  
to	
  get	
  their	
  permission	
  to	
  use	
  it.	
  
• Like	
  your	
  Follower’s	
  photos	
  -­‐	
  Acknowledge	
  your	
  customers’	
  
awesomeness	
  by	
  liking	
  their	
  photos	
  -­‐	
  particularly	
  if	
  they	
  include	
  your	
  
product,	
  or	
  emulate	
  your	
  brand.	
  
• Comment	
  on	
  Followers’	
  photos	
  -­‐	
  Engage	
  with	
  your	
  consumers	
  by	
  
commenting	
  on	
  cool	
  product	
  related	
  photos	
  they	
  post.	
  
• Respond	
  to	
  comments	
  on	
  all	
  your	
  posts	
  -­‐	
  If	
  someone	
  comments	
  on	
  
your	
  posts,	
  respond	
  to	
  them.	
  This	
  is	
  particularly	
  true	
  when	
  then	
  comment	
  
is	
  a	
  question,	
  or	
  even	
  something	
  negative	
  about	
  your	
  brand.	
  
• @mention	
  your	
  customers	
  -­‐	
  @mentioning	
  is	
  another	
  huge	
  part	
  of	
  
Instagram.	
  @mention	
  your	
  followers,	
  your	
  customers,	
  and	
  any	
  other	
  user	
  
with	
  great	
  photos	
  of	
  your	
  products.	
  You	
  show	
  appreciation	
  for	
  them,	
  and	
  
you	
  get	
  to	
  engage	
  with	
  your	
  market.	
  
 
Page40	
  
• @mention	
  celebrities	
  and	
  other	
  related	
  industry	
  leaders	
  -­‐	
  If	
  your	
  
images	
  are	
  about	
  celebs	
  -­‐	
  let	
  them	
  know.	
  They	
  may	
  just	
  appreciate	
  it	
  
enough	
  to	
  share	
  it	
  with	
  their	
  followers!	
  
• Focus	
  on	
  engaging	
  your	
  customer	
  -­‐	
  Post	
  images	
  with	
  your	
  customer	
  in	
  
mind.	
  Post	
  about	
  more	
  than	
  your	
  product.	
  Make	
  your	
  business	
  Instagram	
  
about	
  lifestyle,	
  and	
  authentically	
  connecting	
  with	
  your	
  customers.	
  
Show	
  Your	
  Stuff	
  
	
  
• Be	
  creative	
  with	
  your	
  photos	
  -­‐	
  Use	
  filters	
  to	
  enhance	
  your	
  photos.	
  Use	
  
cool	
  angles,	
  lighting	
  and	
  other	
  photography	
  tricks	
  -­‐	
  whether	
  you	
  hire	
  a	
  
photographer,	
  or	
  learn	
  a	
  few	
  tricks	
  on	
  your	
  own.	
  Use	
  photoshop,	
  Diptic,	
  
or	
  photoshake	
  to	
  edit	
  your	
  pics,	
  or	
  combine	
  a	
  number	
  of	
  photos	
  into	
  one.	
  
• Make	
  videos	
  -­‐	
  Instagram	
  now	
  has	
  short	
  video	
  capabilities.	
  Use	
  this	
  to	
  
make	
  15	
  second	
  videos	
  on	
  your	
  Instagram	
  feed.	
  
• Post	
  photos	
  and	
  short	
  videos	
  of	
  your	
  products	
  -­‐	
  take	
  and	
  post	
  cool	
  
photos	
  of	
  your	
  goods	
  to	
  share	
  with	
  Instagram	
  users.	
  
• Show	
  your	
  products	
  authentically	
  -­‐	
  Show	
  photos	
  of	
  your	
  products	
  as	
  
they	
  are	
  used	
  in	
  real	
  life.	
  
• Show	
  your	
  products	
  creatively	
  -­‐	
  Be	
  cool	
  and	
  creative	
  on	
  this	
  hip	
  mobile	
  
site.	
  
• Show	
  your	
  brand	
  story	
  -­‐	
  post	
  cool	
  photos	
  and	
  videos	
  to	
  show	
  your	
  
company’s	
  core	
  values	
  and	
  brand.	
  
• Show	
  who	
  you	
  are	
  -­‐	
  feature	
  fun	
  photos	
  and	
  videos	
  of	
  your	
  employees.	
  
Give	
  your	
  Instagrammers	
  a	
  behind	
  the	
  scenes	
  look	
  at	
  your	
  company.	
  This	
  
makes	
  you	
  look	
  like	
  a	
  cool	
  company.	
  
• Post	
  fun,	
  authentic	
  videos	
  of	
  your	
  CEO	
  -­‐	
  make	
  your	
  top	
  executives	
  look	
  
personable.	
  Make	
  short,	
  quirky	
  videos	
  of	
  them	
  to	
  post	
  on	
  Instagram.	
  For	
  
example,	
  get	
  them	
  show	
  one	
  thing	
  they	
  like	
  to	
  do	
  when	
  not	
  working,	
  or	
  
doing	
  something	
  fun	
  at	
  the	
  office.	
  
• Share	
  exclusive	
  content	
  -­‐	
  Use	
  your	
  Instagram	
  feed	
  to	
  show	
  photos	
  you	
  
haven’t	
  shared	
  on	
  your	
  Facebook,	
  Twitter	
  or	
  blog	
  (and	
  vice	
  versa).	
  This	
  
makes	
  your	
  followers	
  feel	
  special.	
  
• Launch	
  a	
  product	
  live	
  on	
  Instagram	
  -­‐	
  If	
  you’re	
  launching	
  a	
  new	
  product,	
  
taking	
  your	
  music	
  group	
  on	
  tour,	
  or	
  opening	
  a	
  new	
  store,	
  etc.	
  -­‐	
  do	
  it	
  live	
  
on	
  Instagram.	
  For	
  example,	
  the	
  day	
  you	
  launch	
  your	
  product,	
  make	
  a	
  few	
  
15	
  second	
  videos	
  of	
  you	
  and	
  staff	
  behind	
  the	
  scenes	
  preparing	
  for	
  the	
  
launch,	
  and	
  the	
  actual	
  launch	
  with	
  excited	
  customers.	
  Post	
  this	
  to	
  
Instagram.	
  
 
Page41	
  
• Build	
  pre-­‐launch	
  momentum	
  -­‐	
  If	
  you’re	
  launching	
  a	
  new	
  product	
  
through	
  Instagram,	
  be	
  sure	
  to	
  build	
  excitement.	
  Tease	
  your	
  followers	
  with	
  
a	
  15	
  second	
  video	
  behind-­‐the-­‐scenes	
  looks	
  at	
  how	
  you’re	
  preparing	
  for	
  
the	
  new	
  product	
  -­‐	
  without	
  giving	
  away	
  exactly	
  what	
  it	
  is.	
  
• Show	
  your	
  post-­‐launch	
  staff	
  party	
  (or	
  clean	
  up)	
  -­‐	
  Dare	
  to	
  show	
  you	
  
and	
  your	
  employees	
  authentically,	
  by	
  posting	
  a	
  short	
  video	
  of	
  you	
  after	
  a	
  
product	
  launch.	
  
• Partner	
  with	
  other	
  Brands	
  on	
  Instagram	
  -­‐	
  Whether	
  you’re	
  a	
  small	
  one-­‐
shop	
  business,	
  or	
  a	
  large	
  multinational,	
  you	
  have	
  relationships	
  with	
  other	
  
businesses.	
  If	
  they’re	
  on	
  Instagram	
  too,	
  partner	
  up,	
  and	
  get	
  them	
  to	
  post	
  
your	
  products	
  on	
  their	
  Instagram	
  feed.	
  
• Ask	
  for	
  comments	
  on	
  your	
  photos	
  and	
  videos	
  -­‐	
  If	
  you	
  want	
  more	
  
engagement	
  on	
  your	
  posts,	
  ask	
  for	
  it.	
  Questions	
  open	
  up	
  conversations.	
  
Ask	
  your	
  followers	
  what	
  they	
  think	
  of	
  a	
  new	
  post	
  you	
  made,	
  and	
  more.	
  
• Ask	
  questions	
  about	
  your	
  business	
  or	
  products	
  -­‐	
  Use	
  questions	
  to	
  get	
  
your	
  people	
  talking	
  about	
  your	
  business.	
  For	
  example,	
  ask	
  your	
  Followers	
  
if	
  they	
  have	
  used	
  your	
  product	
  today.	
  Add	
  a	
  unique	
  hashtag	
  and	
  give	
  your	
  
consumers	
  a	
  hub	
  to	
  share	
  photos	
  of	
  how	
  they	
  used	
  your	
  goods	
  with	
  each	
  
other.	
  
• Ask	
  questions	
  about	
  lifestyles	
  -­‐	
  Ask	
  a	
  question	
  about	
  lifestyles	
  or	
  how	
  
to	
  solve	
  common	
  problems.	
  For	
  example,	
  if	
  you’re	
  a	
  fashion	
  store	
  -­‐	
  ask	
  
what	
  boots	
  your	
  followers	
  would	
  wear	
  with	
  a	
  new	
  line	
  of	
  jeans	
  you	
  have.	
  
• Use	
  “fill	
  in	
  the	
  blank”	
  posts	
  -­‐	
  Make	
  updates	
  with	
  sentence	
  followers	
  can	
  
complete.	
  For	
  example,	
  if	
  you	
  sell	
  groceries,	
  create	
  a	
  post	
  with	
  an	
  image	
  of	
  
breakfast	
  cereals.	
  Include	
  a	
  “fill	
  in	
  the	
  blank”	
  post	
  such	
  as	
  “I	
  love	
  starting	
  
my	
  day	
  with	
  a	
  bowl	
  of	
  ______”.	
  	
  	
  
• Use	
  photo	
  caption	
  posts	
  -­‐	
  Another	
  great	
  way	
  to	
  get	
  engagement	
  on	
  your	
  
Instagram	
  posts	
  is	
  through	
  photo	
  caption	
  questions.	
  Take	
  a	
  cool	
  image	
  of	
  
your	
  products,	
  or	
  something	
  related	
  to	
  your	
  brand	
  lifestyle.	
  Ask	
  your	
  
followers	
  to	
  have	
  fun	
  by	
  captioning	
  it.	
  Tip:	
  You	
  can	
  even	
  make	
  a	
  photo	
  
caption	
  contest,	
  to	
  entice	
  engagement	
  in	
  your	
  followers	
  through	
  a	
  cool	
  
prize.	
  
• Crowd	
  source	
  photos	
  -­‐	
  Ask	
  followers	
  to	
  submit	
  photos	
  of	
  how	
  they	
  use	
  
your	
  product.	
  This	
  could	
  help	
  your	
  business	
  gain	
  customer	
  insight,	
  and	
  
future	
  product	
  development	
  research.	
  It’s	
  pretty	
  easy	
  to	
  do,	
  but	
  you	
  may	
  
need	
  to	
  up	
  the	
  ante.	
  To	
  entice	
  lots	
  of	
  consumers	
  to	
  give	
  you	
  their	
  photos,	
  
run	
  an	
  Instagram	
  photo	
  contest.	
  
Run	
  Instagram	
  Photo	
  Contests	
  
	
  
• Run	
  photo	
  contests	
  -­‐	
  To	
  get	
  a	
  lot	
  of	
  user-­‐generated	
  content,	
  to	
  crowd	
  
source	
  product	
  ideas,	
  or	
  to	
  just	
  get	
  your	
  fans	
  engaged	
  by	
  letting	
  them	
  
share	
  their	
  best	
  photos	
  with	
  you	
  -­‐	
  run	
  cool	
  Instagram	
  photo	
  contests.	
  
 
Page42	
  
Make	
  contest	
  themes	
  that	
  get	
  photos	
  and	
  videos	
  for	
  your	
  business	
  
objectives.	
  
• Run	
  Instagram	
  photo	
  contests	
  with	
  cool	
  prizes	
  -­‐	
  When	
  you	
  host	
  an	
  
Instagram	
  photo	
  contest,	
  make	
  sure	
  your	
  prize	
  provides	
  the	
  right	
  
incentive	
  to	
  get	
  your	
  customers	
  entering,	
  and	
  sharing	
  with	
  their	
  friends,	
  
too.	
  The	
  right	
  prize	
  that	
  connects	
  with	
  your	
  market	
  can	
  easily	
  make	
  your	
  
contest	
  go	
  viral.	
  
• Run	
  Instagram	
  photo	
  contests	
  with	
  voting	
  -­‐	
  Include	
  a	
  voting	
  element	
  in	
  
your	
  Instagram	
  photo	
  contest.	
  This	
  will	
  get	
  your	
  contestants	
  vying	
  for	
  the	
  
most	
  votes.	
  They	
  will	
  spread	
  the	
  word	
  about	
  your	
  contest	
  to	
  their	
  friends,	
  
and	
  friends	
  of	
  friends.	
  
Make	
  Use	
  of	
  Mobile	
  
	
  
• Geotag	
  your	
  posts	
  -­‐	
  Target	
  your	
  local	
  consumers	
  by	
  using	
  Photo	
  Map	
  to	
  
tag	
  where	
  you	
  are.	
  
• Bring	
  offline	
  online	
  -­‐	
  use	
  QR	
  codes	
  to	
  entice	
  your	
  in-­‐store	
  traffic	
  to	
  
engage	
  with	
  you	
  instantly	
  on	
  Instagram.	
  Entice	
  them	
  with	
  group	
  
offers	
  and	
  coupon	
  codes.	
  
• Bring	
  offline	
  events	
  online	
  -­‐	
  Are	
  you	
  hosting	
  a	
  live	
  event?	
  Promote	
  a	
  
hashtag	
  for	
  attendees	
  to	
  use	
  to	
  share	
  their	
  photos	
  of	
  it.	
  
• Bring	
  online	
  offline	
  -­‐	
  Host	
  an	
  Instagram	
  meetup	
  to	
  engage	
  in	
  real	
  life	
  
with	
  local	
  Instagram	
  enthusiasts	
  -­‐	
  and	
  potential	
  customers.	
  
Improve	
  Your	
  ROI	
  
	
  
• Post	
  consistently	
  -­‐	
  Regardless	
  of	
  your	
  follower	
  count,	
  post	
  consistently.	
  
This	
  gets	
  your	
  brand	
  seen	
  regularly	
  by	
  your	
  followers.	
  They	
  will	
  be	
  more	
  
apt	
  to	
  become	
  more	
  regular	
  customers	
  this	
  way	
  too.	
  
• Determine	
  post	
  frequency	
  -­‐	
  You	
  might	
  need	
  to	
  post	
  2-­‐3	
  times	
  a	
  day,	
  or	
  
2-­‐3	
  times	
  a	
  week.	
  Monitor	
  your	
  account	
  to	
  determine	
  your	
  post	
  
frequency.	
  
• Find	
  your	
  perfect	
  Instagram	
  posting	
  time	
  -­‐	
  Not	
  all	
  brands	
  have	
  the	
  
same	
  best	
  time	
  to	
  post	
  on	
  Instagram.	
  Not	
  all	
  products	
  do	
  either.	
  Use	
  
analytic	
  tools	
  to	
  monitor	
  when	
  your	
  photos	
  are	
  getting	
  liked	
  and	
  
commented	
  on.	
  Find	
  out	
  when	
  your	
  hashtags	
  are	
  being	
  used.	
  Then	
  post	
  
your	
  fresh	
  content	
  at	
  these	
  most	
  active	
  times.	
  
• Monitor	
  your	
  Instagram	
  results	
  -­‐	
  use	
  third	
  party	
  analytics,	
  or	
  track	
  
your	
  followers,	
  your	
  hashtag	
  post	
  numbers,	
  your	
  post	
  likes	
  and	
  
comments.	
  
• Continuously	
  improve	
  -­‐	
  Based	
  on	
  your	
  content	
  results,	
  keep	
  improving	
  
 
Page43	
  
your	
  photo	
  and	
  video	
  posts.	
  If	
  a	
  particular	
  type	
  of	
  image	
  drives	
  tons	
  of	
  
engagement,	
  keep	
  using	
  those	
  types	
  of	
  posts.	
  If	
  using	
  general	
  hashtags	
  get	
  
your	
  posts	
  interacted	
  with	
  a	
  lot,	
  keep	
  searching	
  for	
  and	
  using	
  general	
  
hashtags.	
  
• Keep	
  on	
  top	
  of	
  Instagram	
  trends	
  -­‐	
  Instagram	
  is	
  constantly	
  developing	
  
new	
  and	
  innovative	
  ways	
  to	
  engage	
  on	
  this	
  application.	
  Keep	
  learning	
  to	
  
stay	
  knowledgeable	
  about	
  the	
  coolest	
  ways	
  to	
  connect.	
  
Running	
  an	
  Instagram	
  Photo	
  Contest	
  
Run	
  weekly	
  and	
  monthly	
  contest	
  because	
  this	
  will	
  build	
  momentum	
  for	
  us,	
  as	
  the	
  
contest	
  spreads	
  through	
  “online	
  word-­‐of-­‐mouth”	
  via	
  our	
  contestants	
  social	
  
networks.	
  If	
  we’re	
  giving	
  something	
  away	
  every	
  week,	
  we’ll	
  build	
  a	
  habit	
  in	
  your	
  
consumers.	
  
• Goal	
  –	
  To	
  engage	
  them	
  and	
  to	
  build	
  trust/interest	
  among	
  the	
  users	
  so	
  
that	
  they	
  can	
  create	
  user	
  generated	
  content	
  for	
  the	
  brand.	
  
	
  
• Target	
  market	
  -­‐	
  Our	
  Consumers	
  and	
  the	
  age	
  group	
  of	
  20-­‐35.	
  
	
  
• Prize	
  -­‐	
  The	
  prize	
  of	
  a	
  contest	
  is	
  what	
  gives	
  people	
  motivation	
  to	
  enter.	
  
o Weekly	
  –	
  Gift	
  Vouchers,	
  Discount	
  Vouchers	
  
o Monthly	
  –	
  A	
  holiday	
  trip	
  to	
  Bangkok	
  
	
  
• Type	
  of	
  Contest	
  –	
  Photo	
  contest	
  and	
  Video	
  Contest	
  
	
  
• Theme	
  of	
  the	
  Contest	
  -­‐	
  Every	
  weekly	
  and	
  monthly	
  contest	
  will	
  be	
  having	
  
different	
  themes	
  for	
  example	
  monsoon	
  is	
  going	
  on	
  these	
  days	
  so	
  we	
  can	
  
create	
  a	
  theme	
  MONSOON	
  TIME	
  and	
  then	
  later	
  on	
  according	
  to	
  the	
  
upcoming	
  seasons	
  and	
  festivals.	
  
	
  
	
  
• Create	
  Hastag	
  for	
  a	
  specific	
  theme	
  for	
  example	
  #monsoontime	
  
	
  
• Make	
  a	
  campaign	
  specific	
  hashtag	
  -­‐	
  Create	
  a	
  hashtag	
  for	
  your	
  
promotional	
  campaign.	
  Hashtags	
  are	
  super	
  important	
  on	
  Instagram	
  -­‐	
  it’s	
  
an	
  amazing	
  way	
  to	
  connect	
  with	
  any	
  Instagrammer.	
  Using	
  a	
  unique	
  tag	
  for	
  
our	
  campaign,	
  we	
  can	
  make	
  a	
  community	
  for	
  our	
  entrants	
  and	
  everyone	
  
who	
  enters	
  can	
  see	
  the	
  other	
  photos	
  directly	
  on	
  their	
  mobile	
  Instagram	
  
search.	
  
	
  
• Make	
  an	
  attention	
  grabbing	
  title	
  -­‐	
  Make	
  a	
  title	
  for	
  your	
  contest	
  that	
  
grabs	
  people’s	
  interest.	
  Include	
  the	
  prize	
  you’re	
  giving,	
  your	
  company	
  
 
Page44	
  
name,	
  and	
  your	
  contest	
  theme.	
  Keep	
  it	
  short	
  and	
  witty	
  -­‐	
  as	
  best	
  you	
  can.	
  
	
  
• Create	
  an	
  appealing	
  visual	
  of	
  your	
  prize	
  -­‐	
  The	
  prize	
  is	
  very	
  important	
  
for	
  the	
  success	
  of	
  your	
  marketing.	
  Get	
  or	
  make	
  a	
  cool	
  image	
  of	
  your	
  
incentive,	
  and	
  include	
  it	
  in	
  your	
  contest	
  and	
  contest	
  promotional	
  material.	
  
	
  
	
  
• Include	
  details	
  about	
  your	
  contest	
  rules	
  -­‐	
  Make	
  sure	
  you	
  include	
  the	
  
details	
  of	
  your	
  contest,	
  such	
  as	
  when	
  it	
  starts	
  and	
  ends,	
  what	
  the	
  photo	
  
theme	
  is,	
  and	
  the	
  mandatory	
  use	
  of	
  your	
  campaign	
  hashtag.	
  If	
  you	
  have	
  
more	
  legal	
  stuff	
  you	
  need	
  to	
  include.	
  
	
  
• How	
  a	
  winner	
  will	
  be	
  chosen	
  –	
  User	
  having	
  the	
  maximum	
  likes	
  and	
  
comments	
  will	
  be	
  declared	
  as	
  a	
  winner.	
  
	
  
• Promote	
  the	
  contest	
  via	
  emails,	
  messages,	
  and	
  social	
  networks.	
  
	
  
	
  
	
  
 
Page45	
  
Appendix	
  
Questionnaire:	
  Consumer	
  Behavior	
  for	
  Online	
  Shopping	
  
Name:	
  
……………………………………………	
  
Age:	
  
o 16-­‐25	
  
o 26-­‐30	
   	
  
o 31-­‐39	
  
o 40-­‐45	
  
o Other……………….	
  
Sex:	
  
o Male	
  
o Female	
  
City/Current	
  Location:	
  
……………………………………………	
  
Occupation:	
  
o Student	
  
o Professional	
  
o Self	
  Employed	
  
o Business	
  
o Other…………………….	
  
You	
  have	
  been	
  using	
  Internet	
  for:	
  
o Less	
  than	
  1	
  year	
  
o 1	
  to	
  2	
  year	
  
o 2	
  to	
  3	
  year	
  
o More	
  than	
  3	
  years	
  
Time	
  spend	
  on	
  Internet	
  in	
  a	
  day:	
  
o 0	
  -­‐	
  30	
  min	
  
o 30	
  -­‐	
  60	
  min	
  
o 1	
  -­‐	
  2	
  hour	
  
o More	
  than	
  2	
  hour	
  
You	
  use	
  Internet	
  services	
  for:	
  
o E-­‐Newspaper/Magazine	
  
o Research/Education	
  
o Product/Service	
  Information	
  
Digital Marketing Research & Report
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Digital Marketing Research & Report

  • 1. 19th  Aug  2014     [2nd  May  14  –  31st  July  14]  |  Masters  of  Management  Studies   RAMYA   KHOSLA   SUMMER  PROJECT  REPORT    
  • 2.   Page2   Content     Acknowledgement   Page  3   Introduction   Page  4   SYNOPSIS     Digital  Marketing   Page  5  –  8   E-­‐Commerce   Page  9  –  11   Consumer  Behavior   Page  12   Different  Personality  Traits   Page  13  –  15   FINDINGS  &  OBSERVATIONS     Primary  Research   Page  16  –  26   Secondary  Research   Page  27  –  33   Social  Media  Comparison  Chart   Page  34   RECOMMENDATIONS   Page  35  –  37   Road  Map  for  Instagram   Page  38  –  44   Appendix  (Questionnaire)   Page  45  –  48   Bibliography   Page  49    
  • 3.   Page3   ACKNOWLEDGEMENT         Every  project  big  or  small  is  successful  largely  due  to  the  effort  of  a  number  of   wonderful  people  who  have  always  given  their  valuable  advice  or  lent  a  helping   hand.   I   sincerely   appreciate   the   inspiration;   support   and   guidance   of   all   those   people  who  have  been  instrumental  in  making  this  project  a  success.     I,  Ramya  Khosla,  the  student  of  Lala  Lajpatrai  Institute  of  Management,  am   extremely  grateful  to  “PARX”  for  the  confidence  bestowed  in  me  and  entrusting   my   project   entitled   “DIGITAL   MARKETING”  with   special   reference   to   RAYMOND  APPAREL  LIMITED.      At  this  juncture  I  feel  deeply  honored  in  expressing  my  sincere  thanks  to  Mr.   SHAWN  CHANDY  for  making  the  resources  available  at  right  time  and  providing   valuable  insights  leading  to  the  successful  completion  of  my  project.  It  will  not  be   fine  if  I  don’t  thank  Mr.   TRUSHAL   PRAJAPATI   for  his  whole  hearted  support   during  the  project.      I  would  also  like  to  thank  all  the  faculty  members  of  Lala  Lajpatrai  Institute  of   Management  for   their   critical   advice   and   guidance   without   which   this   project   would  not  have  been  possible.                              Ramya  Khosla               19th  Aug  2014                
  • 4.   Page4   eed  of  the  Study     With  increasing  popularity  of  online  shopping  the  competition  is   getting  escalated  and  thus  it  has  become  imperative  for  e-­‐retailers   to  understand  the  motivators,  which  bring  consumers  to  shop   online.  Moreover  Indian  markets  are  still  untapped  in  terms  of   online  shopping  phenomena  and  this  trend  is  still  gaining  popularity  among   consumers.  Also  the  recently  done  surveys  have  also  indicated  the  huge  growth   expected  from  non-­‐  metros  in  the  near  future.  As  the  online  buying  trend  is   gaining  popularity  in  India  and  many  companies  aim  to  capitalize  on  it,  it   becomes  significant  to  get  insight  about  the  why,  how  and  what  of  online   consumer  behavior.  So  this  study  tries  to  understand  the  antecedents  behind  the   online  purchase  that  too  in  Indian  context.       Objective   • To  study  the  online  consumer  buying  behavior.   • To  understand  the  role  of  social  networking  sites/apps  in  customer   engagement.     Methodology   • Primary  Research   Ø Questionnaire  –  To  understand  the  online  consumer  buying   behavior,  a  questionnaire  was  developed  which  also  includes  the   demographic  profile  of  the  respondents  which  was  distributed  online   through  social  networking  sites  like  Facebook,  LinkedIn  and  also   distributed  through  emails  and  Google  +.     Ø Store  Visits  –  To  observe  the  consumer  engagement  with  the  store   staff.     • Secondary  Research   Ø To  study  the  existing  data  of  Digital  Marketing  available  in  different   research  reports.   Limitations  of  the  Study     The  results  of  a  study  should  always  be  seen  in  the  light  of  its  limitations.  Like,  in   this  study  the  sample  size  is  an  issue,  as  to  make  the  findings  more  generalized   the  sample  size  should  have  been  larger. N  
  • 5.   Page5   Synopsis     Digital  Marketing     According  to  media  reports,  Indian  organizations  use  social  media  much  more   than  the  global  average  and  their  counterparts  in  emerging  economies.  Our  study   of  social  media  marketing  practices  among  various  social  media-­‐savvy   organizations  in  India  has  thrown  up  some  good  insights.    The  study  answers  key   questions  that  many  marketers  have  in  India  such  as  what  is  the  business   objective  for  using  social  media,  what  are  some  of  the  best  tactics,  what  is  the   average  social  media  budget,  how  do  you  measure  social  media,  and  what  is  the   future  of  social  media.   Social  media:   • Most  social  media-­‐savvy  organizations  in  India  use  the  medium  to  build   communities   Objective  of  Social  media  Engagement:     95.7%  of  the  surveyed  social  media-­‐savvy  organizations  in  India  use  the  medium   to  build  communities  and  advocate  usage  while  76.1%  use  social  media  as  a   platform  to  highlight  brand  news.  Around  16%  of  organizations,  which  use  social   media  for  both  the  above  reasons,  also  use  it  for  customer  service,  lead   generation,  and  research  indicating  high  social  maturity  and  moving  toward   getting  business  meanings  out  of  engagements.   Social  media  platform:   • Facebook  most  important  platform  for  marketers  in  India  for  engaging   customers,  followed  by  Twitter,  YouTube  and  blogging   Almost  half  of  the  social  media-­‐savvy  organizations  are  already  using  emerging  
  • 6.   Page6   platforms  such  as  Pinterest,  Google  Plus,  and  Foursquare.  More  than  half  of  the   social  media-­‐savvy  organizations  surveyed  regularly  engage  with  bloggers  or   online  influencers  who  have  authority  and  strong  following.   Social  media  fit  in  with  other  marketing/communications  campaigns:   • Social  media-­‐savvy  organizations  in  India  have  conducted  campaigns  where   social  media  is  the  leading  component   Social  media-­‐savvy  organizations  in  India  speed  up  processes  or  show   special  favor  for  online  fans   Among  the  respondents  87.5%  said  they  have  conducted  campaigns  where  social   media  was  the  leading  component.  More  than  half  of  the  surveyed  organizations   have  speeded  up  processes  or  have  shown  a  special  favour  for  their  online  fans   and  followers  that  they  wouldn’t  normally  do  for  their  offline  customers.   Organizations  engage  with  their  social  communities:   • Popular  practices   Type  of  content:  A  majority  of  social  media  savvy  organizations  prefer  to  post   generic  updates  instead  of  brand  updates.   Frequency  of  updates  and  responses:  Social  media-­‐savvy  organizations  post   multiple  updates  a  day.   Majority  of  social  media-­‐savvy  organizations  respond  to  fan  queries  within  30  to   60  minutes  on  Twitter  and  within  30  minutes  to  a  few  hours  on  Facebook.   • Contests/promotions:  Picture  contests  are  the  most  popular  contests  among   social  media-­‐savvy  organizations  in  India  —  most  contests  are  organized   monthly.   • Policies:  Majority  of  social  media-­‐savvy  organizations  in  India  surveyed  have   social  media  guidelines  for  better  governance  and  online  monitoring   programs  to  listen  to  conversations;  however,  less  than  half  have  crisis   manuals.   • Tools  used:  Many  social  media-­‐savvy  organizations  in  India  use  tools  for  online   monitoring,  response  management,  or  managing  social  media  platforms.   • Social  media  for  research:  Almost  half  of  the  social  media-­‐savvy  organizations   in  India  have  conducted  research  using  social  media  tools  to  get  customer   feedback  and  understand  more  about  customer  behavior.   • Mobile:  Half  of  the  social  media-­‐savvy  organizations  in  India  have  created   mobile  phone  apps  and  one-­‐fourth  plans  to  create  one.   Organizations  use  social  media  ads:   • Majority  of  social  media-­‐savvy  organizations  use  social  media  ads  to  promote   online  campaigns  and  brand  awareness,  and  find  them  beneficial   83%  of  the  social  media-­‐savvy  organizations  surveyed  said  that  they  have  used  
  • 7.   Page7   social  media  ads,  with  majority  of  the  ads  being  used  to  promote  a   contest/promotion  or  for  brand  awareness.  88.6%  said  they  find  social  media   ads  to  be  beneficial  in  achieving  those  objectives.   Measure  social  media  success:   • Majority  of  social  media-­‐savvy  organizations  in  India  measure  social  media   efforts  through  platform-­‐specific  parameters     81%  of  the  social  media-­‐savvy  organizations  surveyed  said  that  they  measure   their  social  media  efforts  through  platform-­‐specific  parameters  such  as  likes,   people  talking  about  this,  etc.  46.7%  of  the  organizations  surveyed  said  they   have  not  measured  revenue  from  their  social  media  efforts.  On  the  positive  side,   some  organizations  are  already  measuring  social  media  efforts  through  leads,   sentiment,  brand  visibility  and  have  seen  increase  in  revenue  from  social  media   efforts.   Social  media  budget:   • Almost  half  of  social  media-­‐savvy  organizations  spend  1%–5%  of  their   marketing  budget  on  social  media,  most  social  media  budgets  are  below   INR10  million   41.5%  of  social  media-­‐savvy  organizations  said  that  around  1%–5%  of  their   marketing  budget  in  spent  on  social  media.  Three-­‐fourths  of  the  organizations   surveyed  have  their  social  media  budget  below  INR10  million,  while  a  little   above  a  quarter  of  the  organizations  surveyed  have  social  media  budgets   exceeding  INR20  million.   Department  manages  social  media:   • Majority  of  social  media  efforts  in  India  are  managed  by  marketing  teams   76.7%  of  social  media-­‐savvy  organizations  said  they  have  their  marketing  
  • 8.   Page8   department  handling  social  media  with  the  rest  being  handled  by  a  cross-­‐ functional  team/across  functions  or  by  the  PR/communications  team.  Other  than   marketing,  34.6%  said  they  use  social  media  for  thought  leadership  and  26.9%   said  they  use  social  media  for  CSR.  A  majority  (70.2%)  said  they  have  an  in  house   social  media  expert  in  middle  management.   Agency  structure:   • Majority  of  social  media-­‐savvy  organizations  in  India  use  standalone  digital   agencies  as  compared  to  PR  or  ad  agencies   73.8%  of  surveyed  social  media-­‐savvy  organizations  have  chosen  standalone   digital  agencies  as  compared  to  PR,  ad  agencies,  or  freelancers.  59.1%  of  the   organizations  surveyed  also  said  that  they  are  happy  with  their  current  agencies   while  40.9%  responded  with  either  a  ”maybe”  or  a  ”no.”   • Future  of  social  media:   Social  media-­‐savvy  organizations  in  India  are  very  optimistic  about  the   future   Social  media-­‐savvy  organizations  are  very  optimistic  about  the  role  of  social   media  in  their  organizations.  Though  measures  such  as  sales  and  leads  are  not   very  evident  for  all  organizations,  they  have  realized  that  it  plays  an  important   role  in  generating  insights  and  engaging  with  customers  on  a  continued  basis.   Social  media  has  helped  organizations  to  create  their  own  communities  of  fans,   customers  or  prospects.  In  the  future,  organizations  hope  to  focus  more  on  social   media  and  are  looking  forward  greater  adoption  within  their  organizations.                            
  • 9.   Page9   E-­‐Commerce     The  e-­‐Commerce  industry   was  in  its  infancy  for  the   larger  part  of  the  previous   decade.  However,  in  last   three  years,  the  industry  has   witnessed  an  incredible   growth  of  150  percent.  A   number  of  business  models   for  e-­‐Commerce  have  evolved   and  are  in  varying  stages  of   maturity.   Online  shopping  of  physical   goods  in  India  will  grow  to   $8.5Bn  in  2016.  Number  of  online  shoppers  in  India.   Executive summary 4 $2Bn 2013 $8.5Bn 2016P Online Shopping defined in this presentation does not include travel, ticketing and food ordering – only physical goods commerce Online shopping of physical goods in India, will grow to $8.5Bn in 2016. Number of online shoppers in India will more than double to 40M. Key finding 2x Indian shoppers X 1.1x number of orders per year per shopper X 2x average order value 63% CAGR KEY FINDING 25% CAGR 20M 40M CY2013 CY2016P Indian online shoppers will double Accel estimates and Industry sources   Average  order  values  climbing  up   rapidly   1.  Last  year  there  was  a  significant  jump   in  average  order  value  as  there  was  a   penetration  of  new  categories  like   jewelry,  home  décor  etc.     2.  Also,  users  are  becoming  more   comfortable  buying  higher  priced  items   online.   Fashion  category  doubled  last  year     $278 M $559 M $2,811 M Fashion + Footwear + Accessories GMV INR 1,080 INR 1,860 INR 3,600 CY2012 CY2013 CY2016P Increasing average order value Executive summary Key findings 67% 25% CAGR KEY FINDING 1. Last year there was a significant jump in average order value as there was a penetration of new categories like jewellery, home décor etc. 2. Also, users are becoming more comfortable buying higher priced items online. 100% Growth 71% CAGR 1. Last year was the rise of the fashion category – fashion e-commerce GMV doubled since 2012. 2. Given the young demographic which is shopping for latest looks online and increasing choice online – we estimate that this category will see 400% growth in the next 3 years and rival Average order values climbing up rapidly Fashion category doubled last year  
  • 10.   Page10   1.  Last  year  was  the  rise  of   the  fashion  category  –   fashion  e-­‐commerce  GMV   doubled  since  2012.     2.  Given  the  young   demographic,  which  is   shopping  for  latest  looks   online  and  increasing  choice   online  –  we  estimate  that   this  category  will  see  400%   growth  in  the  next  3  years   and  rival  electronics  and   mobile  category  in  GMV.   Online  retail  is  still  a  very  small  portion  of  retail  in  India   Enough headroom for growth Online retail is still a very small portion of retail in India 9 Online sales, 4 Mn, 2% Offline sales, 243 Mn, 98% 247Mn mobiles shipments in India CY2013 Online sales, 45 Mn, 7% Offline sales, 555 Mn, 93% 600Mn books sold in India CY 2013 Online sales, $0.08 Bn, 0.2% Offline sales, $44.92 Bn, 99.8% USD 45Bn jewellery sales in India CY 2013 Online sales, $0.5 Bn, 1% Offline sales, $42 Bn, 99% USD 43Bn fashion + footwear sales in India CY 2013 Accel estimates, Accel portfolio companies and industry sources: CMR, FICCI, Deloitte GROWTH FACTORS   It  is  estimated  that  the  e-­‐Commerce  industry  is  expected  to  contribute  around  4   percent  to  the  GDP  by  2020.  In  comparison,  by  2020,  the  IT-­‐BPO  industry  is   expected  to  account  for  10  percent  of  India’s  GDP,  according  to  a  NASSCOM   report,  while  the  share  of  telecommunication  services  in  India’s  GDP  is  expected   to  increase  to  15  percent  by  2015.  However,  with  enabling  support,  the  e-­‐ Commerce  industry  too  can  contribute  much  more  to  the  GDP.   The  growing  industry  will  also  have  a  positive  spillover  effect  on  associated   industries  such  as  logistics,  online  advertising,  media  and  IT/  ITeS.  Currently  e-­‐ Commerce  accounts  for  15-­‐20  percent  of  the  total  revenues  for  some  of  the  big   logistics  companies.  The  revenue  for  logistics  industry  from  inventory  based   consumer  e-­‐Commerce  alone  may  grow  by  70  times  to  USD  2.6  Billion  (INR   14,300  crores)  by  2020.  Currently,  the  inventory  based  consumer  e-­‐Commerce   model  alone  provides  direct  employment  to  approximately  40,000  people  and  is   $278 M $559 M $2,811 M CY2012 CY2013 CY2016P Fashion + Footwear + Accessories GMV INR 1,080 CY2012 CY2013 CY2016P 67% 25% CAGR categories like je 2.  Also, users are b buying higher p 100% Growth 71% CAGR 1.  Last year was th fashion e-comm 2.  Given the young for latest looks o online – we estim 400% growth in electronics and Fashion ca  
  • 11.   Page11   estimated  to  create  1  million  direct  and  another  0.5  Million  indirect  jobs  by   2020.  Low  entry  barriers  have  attracted  many  young  and  enterprising   individuals  to  try  their  hand  at  entrepreneurship.  First  time  entrepreneurs  have   started  a  significant  63  percent  of  e-­‐Commerce  ventures.   E-­‐commerce  is  a  small  sliver  of  Indian  retail   E-commerce is a small sliver of Indian retail 18 91.0% 8.7% 0.3% Unorganized retail Organized retail - offline Organized retail - online 92.0% 7.8% 0.2% 2012 2013 Market Trends Growth Factors Payments BRICS Accel estimates & Deloitte   Although  many  factors  support  the  growth  of  e-­‐Commerce  in  India,  the  fledgling   industry  is  faced  with  significant  hurdles  with  respect  to  infrastructure,   governance  and  regulation.  Low  Internet  penetration  of  11  percent  as  compared   to  world  average  of  34  percent  impedes  the  growth  of  e-­‐Commerce  by  limiting   the  Internet  access  to  a  broader  segment  of  the  population.  Poor  ‘last  mile   connectivity’  due  to  missing  links  in  supply  chain  infrastructure  is  limiting  the   access  to  far-­‐flung  areas  where  a  significant  portion  of  the  population  resides.   High  drop-­‐  out  rates  (25-­‐30  percent)  on  payment  gateways,  consumer  trust   deficit  and  slow  adoption  of  online  payments  are  compelling  e-­‐Commerce   companies  to  rely  on  costlier  payment  methods  such  as  COD  (Cash  on  Delivery).   (Access,  logistics,  payments  are  part  of  infrastructure).            
  • 12.   Page12   Consumer  Behavior     “Consumer  behavior  is  the  study  of  individuals,  groups,  or  organizations  and  the   processes  they  use  to  select,  secure,  and  dispose  of  products,  services,   experiences,  or  ideas  to  satisfy  needs  and  the  impacts  that  these  processes  have   on  the  consumer  and   society.     With  the  reference  of   above  cite;  Consumer   behavior  of  every   individual  is  different   from  other  depending  on   buying  choices  which  is   influenced  by  buying   habits  and  choices  that   are  turn  tampered  by   psychological  and  social   drivers  that  affects   purchase  decision  process.     “We’re  not  aware  of  changing  our  minds  even  when  we  do  change  our  minds.   And  most  people,  after  they  change  their  minds,  reconstruct  their  past  opinion  —   they  believe  they  always  thought  that.”     As  quoted  above,  consumer  behavior  about  decision-­‐making  is  difficult  to  define   and  is  a  system  of  short  cuts  and  rule  of  thumb,  which  is  unpredictable.  The  short   cuts  in  decision  making  vary  from  person  to  person  and  focusing  on  the  past   experience  of  consumers;  we  can  predict  the  future  trends  by  bringing  profitable   products  and  services  into  the  market.  In  this  modern  world,  the  popularity  of   interactive  media  like  the  World  Wide  Web  is  increasing  day  by  day  with  rapid   pace.  With  reference  to  marketing  it  is  continuously  realized  that  the  main  two   factors  observed  due  to  WWW  are:   1)  Most  of  the  companies  are  doing  their  business  online  and  make  their  website   as  showroom  of  their  product  and  services.     2)  Fast  increment  of  consumer  segments  due  to  increase  needs  and  demand   including  online  shopping  as  well.    
  • 13.   Page13   Different Online Shopper Personality Traits:   Online  shopping  continues  to  gain  popularity.    Every  day  more  and  more   people  make  the  leap  to  buy  online.    Many  businesses  wish  to  capitalize  on  the   momentum  in  the  online  retail  sector.    Thanks  to  new  technology  that   measures  the  way  consumers  behave  when  they  are  engaging  in  commerce   activities,  retailers  are  now  beginning  to  understand  the  various  ways  that   people  shop.    These  consumer  insights  can  provide  targeted  incentives  to  those   customers,  in  an  attempt  to  gain  their  business.   There  are  many  different  online  shopper  personality  types,  or  behavioral   characteristics  of  shoppers.    Each  has  certain  traits,  and  skillful  marketing   professionals  stress  the  importance  of  learning  each  type  in  order  to  design   shopping  services  that  are  attractive  to  members  of  each  type  or  customer   segment.    Because  of  the  large  number  of  online  retailers,  online  shoppers  need   to  be  wooed  with  an  online  shopping  experience  that  is  tailored  to  their   specific  online  shopping  personality  type,  so  they  do  not  look  elsewhere  for   their  purchases.    The  following  is  a  list  of  some  of  the  most  common  Online   Shopping  Personality  Types,  based  on  consumer  research  of  online  shoppers,   in  no  particular  order:   Recreational  Shoppers:   Recreational  shoppers  are  all  over   the  place.    They  flit  from  one  website   to  another  very  quickly,  and  only   stop  when  a  truly  significant  deal   catches  their  eye.    You  have  to  really   come  up  with  something  eye-­‐ catching  if  you  hope  to  catch  these   customers.    These  are  customers   that  like  to  click  on  ‘similar  product’   links,  and  that  are  likely  to  spend  a  great  deal  of  time  at  your  online  retail  store   if  your  present  enough  engaging  content  to  keep  them  there.     Deal  Hunters:   Deal  hunters  are  in  search  of  the  holy   grail  of  deals.    They  purchase  items   used  or  refurbished  if  it  will  get  them   a  better  deal.  These  are  customers   who  might  buy  an  item  they  don’t   actually  need  if  you  present  them   with  a  good  enough  deal  for  it.    Deal   hunters  are  also  often  on  the  lookout   for  free  shipping  deals.    Many  deal   hunters  refuse  to  make  purchases  at  online  stores  that  do  not  offer  free   shipping  if  they  can  find  a  competing  online  store  that  offers  the  same  product      
  • 14.   Page14   with  free  shipping.     The  Flitter:   These  shoppers  can  be  ‘the  fish  that  got  away’  if  you  are  not  careful.    One  way   to  keep  them  shopping  is  to  ensure  that  the  shopping  cart  on  your  website   remains  active  for  a  long  time,  so  that  if  they  are  in  another  window  and  forget   that  they  are  in  the  middle  of  a  transaction,  they  can  simply  return  and  finish   it.    If  the  shopping  cart  at  your  online  retail  store  times  out  and  the  items  are  no   longer  there,  the  customer  is  less  likely  to  re-­‐add  the  items  to  the  cart  and   purchase  them.     The  Researcher:   Researchers  love  to  learn   everything  they   can  about  a  product  before   purchasing  it   online.  They  may  watch  a   product  for  a   while  on  various  websites,  to   see  what  the   average  price  is,  so  that  they   can  know  for  sure   when  they  are  presented  with   a  price  whether  or   not  it  is  a  good   deal.    Researchers   also  enjoy  reading  reviews   from  other   customers,  and  regularly  rely   on  ratings  and   reviews  when  deciding  what   to  purchase  online.   Impatient  Shoppers:   Impatient  shoppers  will  not  stick  around  if  your   checkout  process  is  lengthy  and   complicated.  They  do  not  want  to  waste  time   signing  up  for  an  account,  they  want  to  buy  their   items  immediately,  and  if  you  cannot  provide   them  with  immediate  checkout,  they  will  go  to   another  website  that  will.    To  capture  this  type   of  online  shopper,  make  sure  that  your  website   loads  quickly,  and  that  your  checkout  process  is   as  streamlined  as  possible.   Rewards  Shoppers:   Many  online  shoppers  like  to  patronize   the  same  online  retail  stores   repeatedly.  These  brand  loyalists  enjoy   customer  loyalty  programs  that  give   rewards  or  points  for  purchases,  and   love  to  take  part  in  deals  and   promotions  that  make  them  feel  like   they  are  working  towards  a  goal  with   their  purchases.    Rewards  shoppers  enjoy  taking  part  in  SMS  Text  Message   Marketing  campaigns,  where  they  can  receive  messages  about  sales  and        
  • 15.   Page15   specials  they  qualify  for  send  directly  to  their  personal  mobile  devices.       Hipsters:   Some  online  shoppers  only  purchase  high-­‐end  retail  brands.    These  customers   will  purchase  these  brands  from  various  sellers,  but  only  buy  the  very  best  and   premium  brand  names,  and  also  generally  wish  to  purchase  the  latest  and   newest  models  of  items.    You  will  find  that  these  customers  are  willing  to   spend  a  great  deal  of  money  in  order  to  get  top  of  the  line  items  that  are  hot,   fresh,  and  in  style.   Day  Dreamers:   Some  people  really  love  to  make  wish   lists.    This  type  of  shopper  will   typically  have  wish  lists  at  several   online  retail  stores,  and  enjoys   dreaming  about  their  ideal  purchases,   but  needs  a  push  in  order  to  actualize   the  transaction.  You  can  convince  them   to  purchase  by  lowering  the  price  of   items  on  their  wish  list,  so  that  they   can’t  help  but  take  advantage  of  the   savings  you  are  offering.   Intrepid  Explorers:   Some  online  shoppers  are  after  one  thing,  and   only  one  thing.    Those  shoppers  will  not   purchase  anything  else  and  will  not  deviate  from   their  quest  for  the  specific  item  until  they  find   it.  Once  they  find  the  product  they  are  looking   for,  they  may  reward  you  by  purchasing   additional  items  from  your  online  store  because   they  are  so  happy  that  they  found  what  they  are   looking  for.    This  type  of  shopper  typically  enjoys   websites  that  have  search  functionality,  or  site   maps  that  can  make  it  easy  to  pinpoint  the  item   they  are  seeking.   Consumer  insights  are  only  of  benefit  to  you  –  if  you  use  it.    If  you  are  the   owner  or  operator  of  an  online  retail  entity,  you  should  definitely  take  into   account  the  variety  of  online  shopping  personality  types.    Shoppers  will  reward   you  by  making  more  purchases,  and  your  profit  margins  will  most  definitely   rise!    If  you  are  looking  to  increase  the  amount  of  customers  who  purchase   items  from  your  online  store,  you  should  definitely  use  this  information  to  your   advantage.          
  • 16.   Page16   Findings  and  Observations:     Primary  Research     § FIGURE  -­‐  I     60%$ 29%$ 7%$ 2%$2%$ AGE$ 16#25& 26#30& 31#39& 40#45& Other&     From  the  figure  named  as  AGE  analysis,  it  is  clear  that  in  this  research  we  have   41  frequencies  in  the  age  of  16-­‐25  with  percentage  60%,  which  is  the  highest   percentage  among  other  age  distribution.  In  age  distribution  of  26-­‐30  we  have   29%  and  7%  fall  in  31-­‐39  age  and  rest  percentage  fall  in  more  than  40-­‐45  years   old  respondents.  The  questionnaire  responses  mainly  show  the  young   generation,  which  is  actively  part  of  the  research.     § FIGURE  -­‐  II  
  • 17.   Page17   From  the  above  table  and  figure,  we  can  easily  analyze  that  majority  of  the  males   are  respondents  of  the  survey  as  compared  to  females,  we  have  72%  of  males   and  28%  percentage  of  females  have  participated  in  this  survey.   § FIGURE  –  III     Among  all  the  respondents  44%  are  the  students,  29%  are  the  professionals,   14%  are  doing  their  own  business  and  the  10%  are  self-­‐employed.   § FIGURE  -­‐  IV         Majority  of  the  respondents  that  is  94%  of  the  total  respondents  are  using  the   Internet  from  more  then  3  years.    
  • 18.   Page18   § FIGURE  –  V       From  the  above  figure  we  can  see  that  55%  that  is  36  respondents  spend  more   then  2  hours  on  internet  in  a  day  and  the  second  largest  majority  is  of  18   respondents  that  is  28%  which  spends  1-­‐2  hour  a  day  on  internet.     § FIGURE  –  VI       Above  figure  talks  about  the  Internet  services  respondents  used  for,  so  from  the   given  options  in  the  questionnaire  we  can  say  that  social  websites  has  the   leading  share  that  is  21%  and  communication  via  email  has  a  share  of  19%.   Respondents  use  Internet  to  do  shopping  and  have  a  share  of  17%,   product/service  information  got  15%  of  share  among  the  given  options  and  at   the  end  research/education  has  16%  and  E-­‐newspaper/magazine  had  a  12%  of   the  share.    
  • 19.   Page19     § FIGURE  –  VI       This  figure  shows  that  54%  of  the  respondents  like  to  do  shopping  from  the   stores  and  46%  of  the  total  respondents  prefer  to  do  online  shopping.     § FIGURE  –  VII         This  shows  that  40  respondents  that  is  61%  gets  influenced  by  the   advertisement  done  by  the  social  sites  and  26  respondents  that  is  39%  didn’t  get   influenced.      
  • 20.   Page20   § FIGURE  –  VIII         Majority  of  the  respondents  that  is  33%  sometimes  use  Internet  for  information   prior  to  purchase  and  31%  use  Internet  very  often  for  the  same.     § FIGURE  –  IX       E-­‐tickets  got  the  leading  share  of  28%  where  respondents  also  shop  apparels   online  and  got  a  share  of  27%.  Electronics  and  computer  products  also  get  the   share  of  21%  and  14%.  Respondents  don’t  like  to  shop  jewelry  and  furniture   online  which  got  the  share  of  2%  and  3%  respectively.      
  • 21.   Page21   § FIGURE  –  X       Above  graph  says  that  37%  of  the  respondents  usually  spend  2000-­‐5000  on  a   single  purchase  which  is  a  good  amount  and  34%  spends  1000-­‐2000  and  the   interesting  figure  is  that  14%  of  the  respondents  spend  more  than  5000  on  a   single  purchase.     § FIGURE  –  XI         We  can  easily  interpret  from  the  above  figure  that  Flipkart.com  has  the  leading   share  of  frequently  preferred  pages  that  is  28%.  Ebay.in  and  Amazaon.in  has  the   same  share  that  is  16%.  Fashionandyou.com  has  the  least  share  of  frequently   preferred  pages  of  just  5%  which  means  that  respondents  don’t  like  to  buy  from   is  page.  
  • 22.   Page22   § FIGURE  –  XII       From  the  above  figure  we  can  analyze  that  30%  of  the  respondents  are   influenced  by  the  best  deal  factor  whereas  28%  said  that  they  are  influenced  by   promotions/offers.19%  of  the  total  consider  EMI  option/COD  as  a  influencing   factor  and  rest  23%  thinks  that  buying  online  saves  their  time  which  is  an   important  factor.     § FIGURE  –  XIII       The  above  figure  shows  that  Prices  are  the  major  factor  which  effects  buying   decision  with  34%  whereas  second  leading  factor  is  Reputation  of  the  company   with  22%.  19%  respondents  said  that  Guarantees  and  Warrantees  effect  their   buying  decision.  14%  and  11%  of  the  respondents  believe  that  Product  
  • 23.   Page23   description  and  Delivery  time  are  the  factors,  which  effect  their  online  buying   decision.     § FIGURE  –  XIV         22%  of  the  total  respondents  respond  that  due  to  difficulty  in  returning   products/items  they  don’t  buy  online  whereas  19%  of  respondents  have  a  fear  of   fake  products.  Intangible  buying  is  also  a  factor  for  17%  of  respondents  and  15%   believe  that  lack  of  trust  is  the  major  factor.     § FIGURE  –  XV      
  • 24.   Page24   We  can  interpret  the  above  figure  like  45%  of  the  respondents  said  that  they   shop  apparel  online  sometimes  and  24%  shop  rarely.  14%  of  the  respondents   often  shop  apparel  online  and  only  8%  shop  apparel  frequently.     § FIGURE  –  XVI         This  figure  shows  that  52%  of  the  total  respondents  mostly  buy  T-­‐shirts  and   25%  used  to  buy  Shirts  whereas  10%  of  the  respondents  buy  some  other   products  and  8%  respondents  mostly  buy  denims.     § FIGURE  –  XVII      
  • 25.   Page25   Social  networks  influence  41%  of  the  respondents  while  buying  apparels  and   29%  said  that  Fashion  websites  influence  them  while  buying  apparel.     § FIGURE  –  XVIII       The  above  figure  shows  that  47%  of  the  respondents  believe  that  Variety  of   collection  is  the  important  factor  while  buying  apparel  online  and  the  second   leading  factor,  which  21%  of  the  respondents  believe,  is  Product  information.   12%  of  the  respondents  said  Ease  of  returns  is  the  important  factor  while  buying   apparel  online.  9%  of  the  total  respondents  said  that  Visual  content  is  the  factor.     • FIGURE  –  XIX      
  • 26.   Page26   From  the  last  figure  of  the  survey  we  can  interpret  that  majority  of  respondents   that  is  45%  of  the  total  believe  that  the  Sizes  and  fits  are  the  important  factor   which  effects  online  apparel  buying.  Second  factor  is  Quality  of  product  which   41%  of  the  respondents  agreed  to.  According  to  8%  Quality  of  fabric  is  the  factor   and  the  rest  6%  believe  in  some  other  factors  which  effects  online  apparel   buying.                                                                                                
  • 27.   Page27   Secondary  Research     Understanding  Consumer  Online  buying  Behavior   Researchers  have  proved  that  consumers’  decision  making  is  based  on  utility   concept.  They  postulated  that  functional  and  non-­‐functional  motives  are  the  two   personal  determinants  shaping  consumer-­‐shopping  behavior.  Functional  motive   reflects  utilitarian  functions  or  task  related  functions  such  as  convenience,   product  quality,  variety  of  product  offered  and  price  required  possessing  that   product.  Non-­‐functional  motives  include  satisfaction  of  social  and  emotional   needs.  They  are  often  termed  as  hedonic  motives  and  include  enjoyable  or   interesting  shopping  experience.  Prior  researches  on  virtual  shopping  have   suggested  that  most  online  shoppers  are  goal  directed  and  hence  there  is  a   dominance  of  function-­‐  al  motives  over  non-­‐functional  motives.  It  is  important   for  virtual  stores  to  identify  the  key  motivators  that  attract  Indian  consumers  in   order  to  determine  key  areas  where  things  must  go  right.  Below  mentioned  are   some  critical  reasons  derived  on  the  basis  of  literature  review  and  study  of   market  statistics  that  makes  Indian  consumers  go  shopping  online.   A. Product  Offerings   An  easy  reach  to  the  hottest  brands  of  various  parts  of  the  world  with  doorstep   delivery  and  ease  of  payment  facilities  in  home  currency  is  a  great  motivator  that   prompts  traditional  Indian  customers  to  move  online.  As  per  research  conducted   by  a  US  based  research  firm  Harris  interactive  about  74  %  adult  Indian   customers  go  for  brand  while  purchasing  clothing  or  accessories.  One  other   research  proved  that  a  large  percentage  of  people  turn  to  the  Internet  to  look  for   the  products  that  they  cannot  find  anywhere  else.  The  penetration  of  branded   outlets  in  tier  II/III  cities  is  much  lower  than  in  tier  I  cities.  The  desire  of  branded   products  turn  people  of  tier  II/III  cities  to  go  online  as  virtual  stores  have  the   capability  to  solve  this  availability  issues  faced  in  these  cities.  This  is  well   supported  by  the  statistics  that  says  30-­‐40%  of  total  sales  revenue  of  e-­‐tailing   industry  comes  from  tier  II/III  cities.   B. Convenience   Internet  provides  24/7  nonstop  services,  which  is  not  limited  by  time,  space  or   weather.  Convenience  is  a  prime  motivator  in  online  shopping  and  virtual  stores   provide  a  comfortable  and  convenient  shopping  environment.  The  comfort  of   shopping  at  home  excites  customers  but  above  that  they  like  the  medium   because  it  prevents  them  from  standing  in  long  queue.  Products  or  services  that   may  require  a  long  waiting  time  if  opted  through  traditional  modes  like  movie   tickets,  train  or  flight  reservations  or  various  banking  services  have  gained  easy   and  huge  acceptance  by  Indian  consumers.  Although  online  shopping  is  new  for   Indian  and  they  are  apprehensive  regarding  reliability  and  trust  issues,  the   benefit  of  convenience  particularly  for  these  products  increases  the  total  utility   customers  perceive  about  using  online  medium.  Online  travel  hence  dominates   in  total  e  commerce  revenue.  28%  of  travel  today  in  India  gets  booked  online  
  • 28.   Page28   where  IRCTC  alone  accounts  for  117  million  transactions.  Sites  like   BookmyShow.com,  makemytrip.com,  flipcart.com  etc.  understood  this  motive  of   Indian  consumers  and  provided  them  with  excellent  customer  experience,  which   made  them  a  hit  in  the  country.   C. Cost  Saving   It  is  said  that  one  of  the  important  motivator  for  online  consumers  is  cost  saving.   Indian  goes  online  in  search  of  good  discounts  and  offers.  It  is  in  fact  a  belief  that   Indian  E-­‐commerce  industry  is  growing  on  the  back  of  deep  discounting.   Discounts  on  product  price  and  free  shipping  is  perceived  as  a  premium  for  the   risk  they  take  on  buying  a  product  without  inspection  and  price  war  among   different  websites  have  made  it  an  expected  feature.  According  to  a  discount  site   snapdeal.com  they  sold  300  Gucci  wallets  in  just  45  minutes  on  a  day  when  they   offered  77%  discount  and  on  an  average  they  are  able  to  sell  25000  deals  in  a   day.  The  same  fact  is  also  supported  by  the  report  of  Comscore  that  says  coupon   sites  are  gaining  popularity  in  India  with  16.5%  of  Indian  online  population   visiting  these  sites.   D. Richness  of  Information   The  most  confusing  and  costly  stage  in  respect  to  time  and  money  in  consumer   decision-­‐making  process  is  evaluation  of  different  alternatives,  which  becomes   even  more  prominent  when  the  products  are  of  high  involvement  nature.   Comparison  websites  and  customers  information  sites  by  helping  customers  at   this  stage  not  only  acts  as  the  first  in  the  transaction  series  of  buyer  and  seller   but  also  reduces  customers  frustration  by  helping  him  locate  a  range  of  products   with  detailed  price  and  feature  comparison  without  much  physical  or  monetary   loss.  Indian  statistics  revealed  that  comparison  sites  have  witnessed  a  growth  of   25%  in  2012  as  compared  to  previous  year  with  5.8  million  online  users  visiting   these  sites  for  their  deals.  They  have  75%  year  on  year  and  are  dominating   Indian  retail  online  market  with  a  penetration  rate  of  15%.  Portals  and   classifieds  that  provide  customized  information  are  very  popular  in  Indian   market.  Portals  attract  high  traffic  with  more  than  50%  of  Internet  users  visiting   top  portals.     Some  Facts  of  Digital  India   • Indian  online  population  grows  steadily  with  a  growth  of  31%  over  one   year.   • India  has  205  million  Internet  users,  which  will  increase  up  to  350  million   by  2015  in  which  61%  of  the  total  are  men  and  rest  39%  are  women.   • India’s  online  population  skews  significantly  younger  than  other  BRIC   countries  with  75%  under  the  age  of  35.  
  • 29.   Page29     • 21  million  users  visit  online  sites/social  media   • 40  million  check  online  reviews   • 57  million  wants  Brand  related  Information   • Fastest  Growing  Web  categories  in  India     Blogs  category  showed  phenomenal  growth,  adding  11.6  million  new  users.   • 86%  of  the  Indian  web  users  visit  a  social  networking  site.   • India  has  950  million  Mobile  users,  which  is  the  fastest  growing  Mobile   Subscriber  Base  in  the  World.   • Almost  half  of  the  Mobile  Internet  users  are  less  than  25  years  that  is  48%   of  the  total  users.   • 110  million  are  active  users,  which  uses  Internet  on  their  mobile.   • Messaging  and  Social  apps  have  a  year-­‐on-­‐year  growth  of  203%  whereas  
  • 30.   Page30   lifestyle  and  shopping  had  a  growth  of  77%.   • 95%  of  smart  phone  users  used  to  search  for  local  information,  91%  of   the  total  used  to  research  their  products  and  54%  of  the  smart  phone   users  made  a  purchase  via  their  phones.                                                                                          
  • 31.   Page31   Some  facts  from  KPMG  report  on  Emerging  Consumer   Segments  in  India  (Feb  2014)       According  to  the  above  figure,  it’s  clear  that  the  87%  of  the  total  online   population  users  access  the  Internet  from  their  mobiles,  which  is  the  huge   percentage.  One  fact  can  also  see  from  the  above  figure  that  36%  of  the  total   online  population  i.e.  164.81  million  (Mar  –  13)  is  of  age  group  15-­‐24  years   which  is  significantly  a  larger  share  than  the  global  internet  users  of  the  same   age  group.  This  research  of  KPMG  also  says  that  50%  of  the  consumers  used  to   buy  mobile  phones  online  whereas  25%  of  the  online  population  used  to  buy   apparel/accessories  /shoes.        
  • 32.   Page32   The  above  given  data  of  KPMG  report  says  that  there  is  a  increase  in  Internet   penetration  in  smaller  cities  which  acted  as  a  key  enabler  for  the  growth  of  e-­‐ commerce  in  such  regions.  Share  of  revenues  of  the  e-­‐commerce  websites  from   these  smaller  cities  are  very  interesting  like  Jabong.com  has  a  share  of  50%  from   such  cities  and  Myntra.com  has  a  share  of  55%  from  these  smaller  cities.  We  can   also  find  that  from  the  research  that  there  is  27%  increase  in  consumer   complaints  for  e-­‐commerce  firms.  There  key  issues  we  can  analyze  are  wrong   delivery,  defective  products,  lack  of  warranty  and  delay  in  delivery/funds.         Consumer  Behaviors  Changing  Online  Marketing     i. Consumers  shift  to  More  Sophisticated  Queries   As  the  Internet  and  e-­‐commerce  have  evolved,  consumers  have  been  conditioned   to  be  more  specific  about  what  they  are  searching  for  online.    This  increases  the   chance  of  finding  the  exact  product  they  desire.  Studies  consistently  show  that   search  queries  are  becoming  longer.    Hit  wise  reported  that  queries  that  were   less  than  three  words  were  declining  and  those  between  four  to  eight  words   were  growing  year-­‐over-­‐year  from  3%-­‐20%.  What’s  more,  the  longer  the  query   the  more  likely  the  searcher  was  to  convert.       ii. Consumers  Embrace  A  Visual  Culture   Whether  consumers  are  shopping  for  a  camera,  shoes  or  a  specific  bolt,  one  way   to  verify  what  they  are  getting  is  through  imagery.    Shoppers,  bombarded  with   data,  seek  the  simplicity  of  images  as  short  hand.    Images  validate  and  capture   interest,  hence  the  rise  of  sites  like  Pintrest,  Instagram  and  others.    According  to   the  Search  Engine  Journal,  images  ranked  higher  than  product-­‐specific  details,   descriptions,  ratings  or  reviews  in  driving  purchase  decisions.    Yahoo’s  recent   billion-­‐dollar  acquisition  of  Tumblr  reaffirms  that  search  and  content  companies   believe  this  is  the  way  of  the  future.   iii. Consumers  Rely  on  the  Opinion  of  Others  
  • 33.   Page33   While  images  help  validate  that  shoppers  have  found  the  right  product,  reviews   and  recommendations  validate  the  quality  of  the  product  that  consumers  are   shopping  for.  Hub  Spot  found  that  71%  of  people  were  more  likely  to  make  a   purchase  based  on  friends’  social  media  suggestions  and  70%  trusted  consumer   reviews.    Social  media  and  reviews  engender  consumer  trust.   iv. Consumers  Want  the  Facts   Armed  with  the  information  gleaned  from  social  networks  and  reviews,   consumers  want  specific  details  about  products  quickly.  Moreover,  they  want   data—not  marketing  spin.  Customers  would  rather  see  “18-­‐mega-­‐pixel”  than   “crystal  clear  images.”  This  information  ensures  that  the  shopper  is  getting   exactly  what  they  want,  not  an  imitation  or  variation  of  the  product.     v. Consumers  Feel  that  Price  Matters   Queries,  images,  reviews  and  specs,  guide  consumers  along  the  purchase   path.    However,  price  is  critical  to  that  last  step—purchase.    Consumers  are   willing  to  put  some  effort  into  this  step  as  is  evident  by  the  emergence  of   programs  like  Red  Laser  and  the  recent  trend  of  show  rooming.    Whether   browsing  in  store  or  online,  consumers  don’t  want  to  overspend.                                  
  • 34.   Page34   Social  Media  Comparison  Chart:                        
  • 35.   Page35   Recommendations   From  the  findings  from  the  Primary  and  Secondary  Research  below  are  the   following  recommendations:   • Target  the  age  group  of  16-­‐35,  as  this  is  the  only  age  group,  which  has  a   greater  percentage  in  terms  of  online  buying.   • Advertise  more  on  social  sites  because  consumers  are  influenced  by  the   advertisement  done  on  social  sites.   • Provide  consumers  the  best  deal  as  well  as  price  comparatively  to  other   brands.   • Difficulty  in  returning  of  products/items  is  a  barrier/reason,  consumers   don’t  want  to  buy  online.  So,  brand  should  come  up  with  a  policy  to   overcome  this  barrier.   • Consumer  expects  a  variety  of  collection  while  buying  online,  so  brand   make  sure  that  its  complete  merchandise  of  SS/AW  must  be  available   online  specially  t-­‐shirts  and  shirts  because  most  of  the  consumer  buy  t-­‐ shirts  and  shirts  only.   • To  gain  the  trust  of  the  consumers  brand  must  make  sure  that  it  doesn’t   compromise  with  the  quality  of  the  product  and  focus  on  the  sizes  and  fits   because  consumers  had  a  perception  that  if  they  are  getting  a  good  deal   online  so  its  not  a  quality  product.   • As  figured  from  the  secondary  research  there  are  a  lot  consumers  which   uses  and  shop  through  mobile.  So,  brand  should  come  up  with  a  mobile   app  through  which  consumers  can  browse  and  shop  products.       Instagram  for  Business  Branding  -­‐  A  New  Superhero  in  Social   Platforms   While  many  people  are  busy  promoting  themselves  with  selfies  all  over  the   social  networks,  Instagram  specifically  is  gaining  recognition  in  another  arena.   Business  Branding.  As  this  platform  continues  to  grow,  more  and  more   companies  are  realizing  that  it  can  be  a  super  tool  to  generate  exposure  for  their   business.  So  much  so  we  were  inspired  to  research  and  share  some  tips,  which   will  help,  make  it  work  for  you  and  may  give  your  branding  a  boost  of  power:   START   Get  started!  First  and  foremost,  get  it  going.  Be  sure  to  optimize  your  profile…   include  your  brand  identification,  information  and  contact  details.  Create  a  clear   presence  and  goal  for  your  business  through  your  new  super  powered  social   account.  
  • 36.   Page36   QUALITY   Make  sure  that  the  pictures  you  post  look  great!  Washed  out,  grainy,  or  just  plain   lousy  looking  photos  of  your  products/services  are  a  sure  way  not  to  sell   anything.  Also  be  aware  of  the  background…  is  there  a  lot  going  on  in  the   background  that  will  take  away  from  what  you  want  to  feature?  Is  there  a  small   child  sucking  his  thumb?  Watch  for  things  like  that  and  make  them  fun  with  a   balance  of  business.     CONTESTS     Instagram  is  a  great  place  for  contests  and  giveaways  so  why  not  take  advantage   of  it?  Create  the  campaign  you  want  and  what  you  will  be  giving  away,  just  keep   it  simple.  The  most  popular  types  of  contests  involve  users  submitting  photos  of   them  using  your  product  or  possibly  sharing  a  picture  that  you  designate.  Don’t   forget  to  promote  the  right  contest  #hashtag.     REWARDS   Reward  your  followers  with  discounts.  Most  users  follow  your  company  because   they  like  your  product,  right?  Why  not  reward  them  for  it?  Happy  followers  are   more  likely  to  let  their  friends  know  that  they  should  be  following  you  too!   DISCOUNTS   Let’s  say  that  you  don’t  want  to  offer  a  discount  to  every  person  that  follows  you   though,  maybe  just  a  select  few  that  always  engage  with  you?  Take  advantage  of   Instagram  Direct  then.  Create  a  group  that  consists  of  your  best  followers  and   use  this  direct  messaging  feature  to  make  them  privy  of  discounts,  new  products   that  available,  etc.     LINK  TO  NOWHERE   Nothing  worse  than  seeing  something  that  you  want  and  then  has  to  search   endlessly  for  where  to  buy  it!  It’s  a  guaranteed  way  to  lose  business  as  people   lose  patience  quickly,  so  do  yourself  and  your  followers  a  favor  by  making  it   easy.  Simply  include  a  link  that  will  take  them  right  where  they  need  to  be  to   spend  that  money!     DON’T  OVER  SELFIE   Don’t  over  do  the  self-­‐promotion.  Obviously  the  primary  objective  is  to  sell  your   product  but  don’t  drive  it  down  your  followers  throats!  Posting  other  industry   related  photos  and  even  photos  that  show  your  personal  interests  is  a  great   addition,  as  they  can  give  a  glimpse  behind  the  curtain,  so  to  speak.  But   remember  that  everything  you  post,  on  any  social  network,  represents  your  
  • 37.   Page37   business  so  keep  it  respectable.     VIDEO   And  don’t  forget  about  those  videos.  The  new  Video  on  Instagram  feature  is  a  big   hit  with  its  length  and  filter  functionality.  Next,  be  sure  to  embed  your  Instagram   Video  on  your  blog  and  website.  You  know  what  you’re  doing  creating  that  cross   promotion  between  you’re  social  marketing  and  your  end  goals.                                    
  • 38.   Page38   Road  Map  for  Instagram   • Create  your  Instagram  for  Business  account  -­‐  It’s  easy  to  make  a   business  account  on  Instagram.   • Make  a  business  username  -­‐  Use  your  business  name  as  your  username.   If  it  is  taken,  choose  a  username  that  is  instantly  recognized  with  your   brand.   • Complete  your  profile  -­‐  Include  a  cool,  branded  photo,  a  short   informative  bio,  and  a  link  to  your  website.   • Connect  your  account  to  Facebook  -­‐  Instagram  is  owned  by  Facebook.   Connect  these  two  very  powerful  social  media  sites  to  boost  your   marketing  efforts.   • Make  an  Instagram  tab  on  your  Facebook  page  -­‐  this  enables  you  to   instantly  share  your  Instagram  photos  to  your  Facebook  Fans.   • Create  a  brand  specific  strategy  -­‐  Keep  your  Instagram  content  strategy   focused  on  your  brand’s  unique  way  of  seeing  the  world.  Instagram  is  a   photo  (and  now  video)  sharing  site.  Connect  your  business  with  your   ‘tribe’  on  Instagram  in  a  consistent  and  particular  visual  way.   Use  Hashtags   • Use  hashtags  (#’s)  in  your  updates  -­‐  Hashtags  are  a  major  part  of   Instagram.  It’s  a  big  way  of  how  users  can  find  you  through  their  mobile   Instagram  searches.  Unlike  on  other  sites  (such  as  Twitter),  you’re  not   limited  by  character  count.  Include  a  few  tags  (but  not  too  many  -­‐  or  you’ll   look  desperate)  in  your  posts  to  get  connected.   • Use  brand  specific  #’s  -­‐  Include  your  business  name  in  some  of  your  post   hashtags.  Also,  use  unique  tags  for  particular  marketing  campaigns  you   run.  For  example,  if  you’re  hosting  a  photo  contest  on  Instagram,  make  a   unique  tag  just  for  that  campaign.  This  tactic  both  promotes  your  contest,   and  it  gives  your  consumers  a  distinct  tag  to  connect  with  others   participants  (so  they  can  see  their  competition!).   • Use  general  #’s  -­‐  Include  general  tags  on  your  posts,  to  be  found  for  your   products  or  lifestyle  posts.  For  example,  if  your  business  is  a  coffee  shop,   and  you  post  an  image  of  your  scrumptious  latte,  include  tags  like  #latte   or  even  #coffee.  
  • 39.   Page39   • Use  trending  #’s  -­‐  Trends  on  Instagram  can  happen  at  lightning  speed  -­‐   and  they  are  often  even  quicker  to  go.  If  you  spot  a  trend,  and  it  fits  with   your  brand,  use  it.  Your  post  could  literally  be  seen  by  thousands  of   interested  consumers  in  a  matter  a  minutes.   • Explore  and  engage  on  #’s  -­‐  Be  sure  to  keep  exploring  for  new  and   relevant  hashtags  on  Instagram.  Use  them  in  your  posts.  If  they  are  active   tags,  take  your  social  media  marketing  time  to  connect  with  users  of  it  by   loving  their  posts  and  commenting.  It  can  be  a  very  cool  way  to  get   connected  with  (and  market  to)  even  more  Instagram  users  around  the   world.   • Monitor  your  brand  #hashtags  -­‐  Your  consumers  are  using  your  tags  to   connect  with  you.  Be  sure  to  keep  checking  your  Instagram  #’s,  just  like   you  would  your  Facebook  Page  and  Twitter  mentions.  Respond  to   comments  and  concerns  quickly,  and  you’ll  build  happy  customer   relationships.   Focus  on  Your  Customers   • Make  your  followers  famous    -­‐  Share  follower’s  photos  on  your  social   sites.  Show  your  customers  you  appreciate  them  by  acknowledging  their   cool  photos,  and  share  them  with  your  Facebook  fan  or  Twitter  followers.   NOTE:  be  sure  to  ask  permission  to  use  their  photo  first!   • Embed  followers’  photos  -­‐  Instagram  now  enables  you  to  embed   Instagram  photos  on  your  website  and  other  sites.  Use  this,  like   Starbucks,  to  show  cool  images  of  your  brand  and  product  from  your   Instagram  followers  by  embedding  the  entire  post.  Make  sure  you  tell   them  you’re  showcasing  their  image,  to  make  them  feel  appreciated,  and   to  get  their  permission  to  use  it.   • Like  your  Follower’s  photos  -­‐  Acknowledge  your  customers’   awesomeness  by  liking  their  photos  -­‐  particularly  if  they  include  your   product,  or  emulate  your  brand.   • Comment  on  Followers’  photos  -­‐  Engage  with  your  consumers  by   commenting  on  cool  product  related  photos  they  post.   • Respond  to  comments  on  all  your  posts  -­‐  If  someone  comments  on   your  posts,  respond  to  them.  This  is  particularly  true  when  then  comment   is  a  question,  or  even  something  negative  about  your  brand.   • @mention  your  customers  -­‐  @mentioning  is  another  huge  part  of   Instagram.  @mention  your  followers,  your  customers,  and  any  other  user   with  great  photos  of  your  products.  You  show  appreciation  for  them,  and   you  get  to  engage  with  your  market.  
  • 40.   Page40   • @mention  celebrities  and  other  related  industry  leaders  -­‐  If  your   images  are  about  celebs  -­‐  let  them  know.  They  may  just  appreciate  it   enough  to  share  it  with  their  followers!   • Focus  on  engaging  your  customer  -­‐  Post  images  with  your  customer  in   mind.  Post  about  more  than  your  product.  Make  your  business  Instagram   about  lifestyle,  and  authentically  connecting  with  your  customers.   Show  Your  Stuff     • Be  creative  with  your  photos  -­‐  Use  filters  to  enhance  your  photos.  Use   cool  angles,  lighting  and  other  photography  tricks  -­‐  whether  you  hire  a   photographer,  or  learn  a  few  tricks  on  your  own.  Use  photoshop,  Diptic,   or  photoshake  to  edit  your  pics,  or  combine  a  number  of  photos  into  one.   • Make  videos  -­‐  Instagram  now  has  short  video  capabilities.  Use  this  to   make  15  second  videos  on  your  Instagram  feed.   • Post  photos  and  short  videos  of  your  products  -­‐  take  and  post  cool   photos  of  your  goods  to  share  with  Instagram  users.   • Show  your  products  authentically  -­‐  Show  photos  of  your  products  as   they  are  used  in  real  life.   • Show  your  products  creatively  -­‐  Be  cool  and  creative  on  this  hip  mobile   site.   • Show  your  brand  story  -­‐  post  cool  photos  and  videos  to  show  your   company’s  core  values  and  brand.   • Show  who  you  are  -­‐  feature  fun  photos  and  videos  of  your  employees.   Give  your  Instagrammers  a  behind  the  scenes  look  at  your  company.  This   makes  you  look  like  a  cool  company.   • Post  fun,  authentic  videos  of  your  CEO  -­‐  make  your  top  executives  look   personable.  Make  short,  quirky  videos  of  them  to  post  on  Instagram.  For   example,  get  them  show  one  thing  they  like  to  do  when  not  working,  or   doing  something  fun  at  the  office.   • Share  exclusive  content  -­‐  Use  your  Instagram  feed  to  show  photos  you   haven’t  shared  on  your  Facebook,  Twitter  or  blog  (and  vice  versa).  This   makes  your  followers  feel  special.   • Launch  a  product  live  on  Instagram  -­‐  If  you’re  launching  a  new  product,   taking  your  music  group  on  tour,  or  opening  a  new  store,  etc.  -­‐  do  it  live   on  Instagram.  For  example,  the  day  you  launch  your  product,  make  a  few   15  second  videos  of  you  and  staff  behind  the  scenes  preparing  for  the   launch,  and  the  actual  launch  with  excited  customers.  Post  this  to   Instagram.  
  • 41.   Page41   • Build  pre-­‐launch  momentum  -­‐  If  you’re  launching  a  new  product   through  Instagram,  be  sure  to  build  excitement.  Tease  your  followers  with   a  15  second  video  behind-­‐the-­‐scenes  looks  at  how  you’re  preparing  for   the  new  product  -­‐  without  giving  away  exactly  what  it  is.   • Show  your  post-­‐launch  staff  party  (or  clean  up)  -­‐  Dare  to  show  you   and  your  employees  authentically,  by  posting  a  short  video  of  you  after  a   product  launch.   • Partner  with  other  Brands  on  Instagram  -­‐  Whether  you’re  a  small  one-­‐ shop  business,  or  a  large  multinational,  you  have  relationships  with  other   businesses.  If  they’re  on  Instagram  too,  partner  up,  and  get  them  to  post   your  products  on  their  Instagram  feed.   • Ask  for  comments  on  your  photos  and  videos  -­‐  If  you  want  more   engagement  on  your  posts,  ask  for  it.  Questions  open  up  conversations.   Ask  your  followers  what  they  think  of  a  new  post  you  made,  and  more.   • Ask  questions  about  your  business  or  products  -­‐  Use  questions  to  get   your  people  talking  about  your  business.  For  example,  ask  your  Followers   if  they  have  used  your  product  today.  Add  a  unique  hashtag  and  give  your   consumers  a  hub  to  share  photos  of  how  they  used  your  goods  with  each   other.   • Ask  questions  about  lifestyles  -­‐  Ask  a  question  about  lifestyles  or  how   to  solve  common  problems.  For  example,  if  you’re  a  fashion  store  -­‐  ask   what  boots  your  followers  would  wear  with  a  new  line  of  jeans  you  have.   • Use  “fill  in  the  blank”  posts  -­‐  Make  updates  with  sentence  followers  can   complete.  For  example,  if  you  sell  groceries,  create  a  post  with  an  image  of   breakfast  cereals.  Include  a  “fill  in  the  blank”  post  such  as  “I  love  starting   my  day  with  a  bowl  of  ______”.       • Use  photo  caption  posts  -­‐  Another  great  way  to  get  engagement  on  your   Instagram  posts  is  through  photo  caption  questions.  Take  a  cool  image  of   your  products,  or  something  related  to  your  brand  lifestyle.  Ask  your   followers  to  have  fun  by  captioning  it.  Tip:  You  can  even  make  a  photo   caption  contest,  to  entice  engagement  in  your  followers  through  a  cool   prize.   • Crowd  source  photos  -­‐  Ask  followers  to  submit  photos  of  how  they  use   your  product.  This  could  help  your  business  gain  customer  insight,  and   future  product  development  research.  It’s  pretty  easy  to  do,  but  you  may   need  to  up  the  ante.  To  entice  lots  of  consumers  to  give  you  their  photos,   run  an  Instagram  photo  contest.   Run  Instagram  Photo  Contests     • Run  photo  contests  -­‐  To  get  a  lot  of  user-­‐generated  content,  to  crowd   source  product  ideas,  or  to  just  get  your  fans  engaged  by  letting  them   share  their  best  photos  with  you  -­‐  run  cool  Instagram  photo  contests.  
  • 42.   Page42   Make  contest  themes  that  get  photos  and  videos  for  your  business   objectives.   • Run  Instagram  photo  contests  with  cool  prizes  -­‐  When  you  host  an   Instagram  photo  contest,  make  sure  your  prize  provides  the  right   incentive  to  get  your  customers  entering,  and  sharing  with  their  friends,   too.  The  right  prize  that  connects  with  your  market  can  easily  make  your   contest  go  viral.   • Run  Instagram  photo  contests  with  voting  -­‐  Include  a  voting  element  in   your  Instagram  photo  contest.  This  will  get  your  contestants  vying  for  the   most  votes.  They  will  spread  the  word  about  your  contest  to  their  friends,   and  friends  of  friends.   Make  Use  of  Mobile     • Geotag  your  posts  -­‐  Target  your  local  consumers  by  using  Photo  Map  to   tag  where  you  are.   • Bring  offline  online  -­‐  use  QR  codes  to  entice  your  in-­‐store  traffic  to   engage  with  you  instantly  on  Instagram.  Entice  them  with  group   offers  and  coupon  codes.   • Bring  offline  events  online  -­‐  Are  you  hosting  a  live  event?  Promote  a   hashtag  for  attendees  to  use  to  share  their  photos  of  it.   • Bring  online  offline  -­‐  Host  an  Instagram  meetup  to  engage  in  real  life   with  local  Instagram  enthusiasts  -­‐  and  potential  customers.   Improve  Your  ROI     • Post  consistently  -­‐  Regardless  of  your  follower  count,  post  consistently.   This  gets  your  brand  seen  regularly  by  your  followers.  They  will  be  more   apt  to  become  more  regular  customers  this  way  too.   • Determine  post  frequency  -­‐  You  might  need  to  post  2-­‐3  times  a  day,  or   2-­‐3  times  a  week.  Monitor  your  account  to  determine  your  post   frequency.   • Find  your  perfect  Instagram  posting  time  -­‐  Not  all  brands  have  the   same  best  time  to  post  on  Instagram.  Not  all  products  do  either.  Use   analytic  tools  to  monitor  when  your  photos  are  getting  liked  and   commented  on.  Find  out  when  your  hashtags  are  being  used.  Then  post   your  fresh  content  at  these  most  active  times.   • Monitor  your  Instagram  results  -­‐  use  third  party  analytics,  or  track   your  followers,  your  hashtag  post  numbers,  your  post  likes  and   comments.   • Continuously  improve  -­‐  Based  on  your  content  results,  keep  improving  
  • 43.   Page43   your  photo  and  video  posts.  If  a  particular  type  of  image  drives  tons  of   engagement,  keep  using  those  types  of  posts.  If  using  general  hashtags  get   your  posts  interacted  with  a  lot,  keep  searching  for  and  using  general   hashtags.   • Keep  on  top  of  Instagram  trends  -­‐  Instagram  is  constantly  developing   new  and  innovative  ways  to  engage  on  this  application.  Keep  learning  to   stay  knowledgeable  about  the  coolest  ways  to  connect.   Running  an  Instagram  Photo  Contest   Run  weekly  and  monthly  contest  because  this  will  build  momentum  for  us,  as  the   contest  spreads  through  “online  word-­‐of-­‐mouth”  via  our  contestants  social   networks.  If  we’re  giving  something  away  every  week,  we’ll  build  a  habit  in  your   consumers.   • Goal  –  To  engage  them  and  to  build  trust/interest  among  the  users  so   that  they  can  create  user  generated  content  for  the  brand.     • Target  market  -­‐  Our  Consumers  and  the  age  group  of  20-­‐35.     • Prize  -­‐  The  prize  of  a  contest  is  what  gives  people  motivation  to  enter.   o Weekly  –  Gift  Vouchers,  Discount  Vouchers   o Monthly  –  A  holiday  trip  to  Bangkok     • Type  of  Contest  –  Photo  contest  and  Video  Contest     • Theme  of  the  Contest  -­‐  Every  weekly  and  monthly  contest  will  be  having   different  themes  for  example  monsoon  is  going  on  these  days  so  we  can   create  a  theme  MONSOON  TIME  and  then  later  on  according  to  the   upcoming  seasons  and  festivals.       • Create  Hastag  for  a  specific  theme  for  example  #monsoontime     • Make  a  campaign  specific  hashtag  -­‐  Create  a  hashtag  for  your   promotional  campaign.  Hashtags  are  super  important  on  Instagram  -­‐  it’s   an  amazing  way  to  connect  with  any  Instagrammer.  Using  a  unique  tag  for   our  campaign,  we  can  make  a  community  for  our  entrants  and  everyone   who  enters  can  see  the  other  photos  directly  on  their  mobile  Instagram   search.     • Make  an  attention  grabbing  title  -­‐  Make  a  title  for  your  contest  that   grabs  people’s  interest.  Include  the  prize  you’re  giving,  your  company  
  • 44.   Page44   name,  and  your  contest  theme.  Keep  it  short  and  witty  -­‐  as  best  you  can.     • Create  an  appealing  visual  of  your  prize  -­‐  The  prize  is  very  important   for  the  success  of  your  marketing.  Get  or  make  a  cool  image  of  your   incentive,  and  include  it  in  your  contest  and  contest  promotional  material.       • Include  details  about  your  contest  rules  -­‐  Make  sure  you  include  the   details  of  your  contest,  such  as  when  it  starts  and  ends,  what  the  photo   theme  is,  and  the  mandatory  use  of  your  campaign  hashtag.  If  you  have   more  legal  stuff  you  need  to  include.     • How  a  winner  will  be  chosen  –  User  having  the  maximum  likes  and   comments  will  be  declared  as  a  winner.     • Promote  the  contest  via  emails,  messages,  and  social  networks.        
  • 45.   Page45   Appendix   Questionnaire:  Consumer  Behavior  for  Online  Shopping   Name:   ……………………………………………   Age:   o 16-­‐25   o 26-­‐30     o 31-­‐39   o 40-­‐45   o Other……………….   Sex:   o Male   o Female   City/Current  Location:   ……………………………………………   Occupation:   o Student   o Professional   o Self  Employed   o Business   o Other…………………….   You  have  been  using  Internet  for:   o Less  than  1  year   o 1  to  2  year   o 2  to  3  year   o More  than  3  years   Time  spend  on  Internet  in  a  day:   o 0  -­‐  30  min   o 30  -­‐  60  min   o 1  -­‐  2  hour   o More  than  2  hour   You  use  Internet  services  for:   o E-­‐Newspaper/Magazine   o Research/Education   o Product/Service  Information