How the changing consumer trends due to change in technology and political scenario in India has induced the growth for ecommerce industry with snapdeal as the business model for analysis

1. FACTORS AFFECTING E-
SHOPPING
( E - C O M M E R C E W E B S I T E – S N A P D E A L )
DIGITAL MARKETING – PROJECT I
Submitted By
Neha Ghorad
EPGDM - 1031415011
Shanti Business School – Executive Batch 2014-2016

2. Consumer
One who consumes goods and services available in
the market.
Consumer Behaviour
The study of individuals, groups, or organizations
and the processes they use to select, secure, use, and
dispose of products, services, experiences, or ideas to
satisfy needs and the impacts that these processes have
on the consumer and society.
• Influence parameters: sources of information , Consumer Perception,
Learning, Beliefs and Attitude

3. STAGES BEFORE PURCHASING A
PRODUCT OR SERVICE
NEED
INFO
GATHERING/
SEARCH
EVALUATION
OF
ALTERNATIVE
PURCHASE
OF
PRODUCT/
SERVICE
POST
PURCHASE
EVALUATION

4. CURRENT BUYING BEHAVIOUR
CHANGE
• Shift in communication platform, Marketers are focusing on-line consumer
communities.
• New Platforms for marketing: Social networking sites, blogs, video
uploading sites, podcasts, bookmarking sites as well as mobile applications
and websites.
• New marketing and advertising strategies : Customer Engagement
• Acc to ASSOCHAM survey report , Broadband services & increasing
internet penetration leads to online retail industry to be worth Rs7,000 crore
or Rs70bn by 2015.
• Indian online retailing market is growing at an annual rate of 35%
• Change in customer trend among the consumers:
• Earlier consumers used to use the online media for gathering information
about products and purchase them at traditional retail outlets.
• With the advent of facilities like free shipping, time bound deliveries
and cash payments more online shopping is witnessed.

5. WHEEL OF CONSUMER ANALYSIS
Cognition
Consumer
Environment
Consumer
Behaviour
Helps to device a successful marketing strategy

6. 2.UNDERSTANDING INDIAN CONSUMER
• Consumer Spending

7. 7,730 individuals in India, with a combined net worth of $925 billion.
Population & Demographics

8. 2.1 CURRENT ECOMMERCE TRENDS
• Indian consumers are becoming technologically savvy
• Internet usage surged 49% in 2015: Ravi Shankar Prasad (Telecom
Minister)
• India’s Internet user base is already the third highest in the world
after China and the United States and is growing at nearly 40% a
year; was 243 million subscribers in 2014.
• Online sales, however, currently comprise less than 0.5% of India’s
retail market.

9. TECHNOLOGY AND POLITICAL ASPECT
• Technology Insight

10. • Ease in Business: Increase in FDI

11. • Make In India
• It is a major new national programme of the Government of India
designed to facilitate investment, foster innovation, enhance skill
development, protect intellectual property and build best in class
manufacturing infrastructure in the country.
• The focus of Make in India programme is on 25 sectors
• Digital India
• A government initiative to practice best practises by going online to a
corrupt free India route.
• Planning e-governance and initiating the government processes
online submission and tracking.

12. INTRODUCTION TO
ECOMMERCE & DIGITAL MARKETING
E Commerce
• E Commerce is ‘Using Electronic Platform for Business
Transactions’. It is also called a ‘Virtual Market
Place’. Online communities and technology are key
factors for the growth of E Commerce.
Types of E Commerce business models:
• Business to Business: Advertising, Marketing, Sales Order
Management besides Supply chain management and Customer
Relationship management
• Business to Customer: banking; insurance as well as online
shopping, online booking

13. ADVANTAGES
• A world wide web, opens up the
world as a market to the
businesses.
• Businesses can reach out to
millions of customers in an
instant.
• The cost of marketing online
across the globe is miniscule
when compared to the actual
cost of marketing in the
conventional ways.
• The cost per transaction works
out to be very cheap.
• Promotes paperless offices and
processes.
• E Commerce a real time
business process.
• E commerce has online trading
which has perhaps changed the
way stock markets, financial
markets and commodity
exchanges across the world
function.
• It enables the customer to view,
read, download and
experience the product.
• Customisation of product
offering to the customer.

14. Digital marketing
An umbrella term for the targeted, measurable &
interactive marketing of products or services using digital technologies to
reach and convert leads into customers and retain them.
The key objective is to promote brands, build preference and increase sales
through various digital marketing techniques. It is embodied by an extensive
selection of service, product and brand marketing tactics, which mainly use
the Internet as a core promotional medium.

16. ESHOPPING TRENDS
Numbers of Customers
going online are huge
Smart Mobile phones
increase is key driver in
ecommerce revolution

17. • Tremendous increase
in the products
purchased online
• Online consumer is
diverse
• Online research
before shopping is
increasing fast

18. Shift in purchase journey

19. CHANGE IN ENGAGEMENT PROCESS

20. ESHOPPING & ITS IMPACT ON CONSUMERS

21. DETERMINANTS OF CONSUMER BEHAVIOUR IN
ECOMMERCE ENVIRONMENT

22. MIAC & ONLINE CONSUMER
BEHAVIOUR FRAMEWORK.

23. FFF MODEL

25. COMPANY
• An online marketplace, featuring a wide assortment of products
across categories like Mobiles, Electronics, Fashion accessories,
Apparel, Sports, Books; and services like Restaurants, Spas &
Entertainment amongst others.
• Founded in 2010. 18 million registered members.
• Snapdeal features the Best Deals on products and services at
unbeatable prices.
• A one-stop-shop website, Snapdeal sells products & services online
form across India.
• Operated by Jasper Infotech Private Limited, head office at Delhi,
India.
• Company website: www.snapdeal.com
• Company blog: www.blog.snapdeal.com
• Revenue: 168cr (FY 14)

26. MANAGEMENT TEAM

27. Snapdeal
GMV
$3.5bn
5000+
Employee
asset
10 million
products
100,000
merchants
5000
cities

28. SNAPDEAL BUSINESS MODEL
• Snapdeal follows a business to business to consumer
model, where businesses can use the platform for free
advertising and cut down customer acquisition costs,
thereby allowing customers to avail huge discounts.
Vision
• To create India's most impactful digital commerce
ecosystem that creates life-changing experiences for
buyers and sellers.

29. • The core of Snapdeal business model is discount coupons that
customers use at the time of buying a product from a merchant.
• Snapdeal.com gets these coupons from the merchants and offers them
to the customers.
• The revenue from selling these coupons is shared by Snapdeal and the
merchants.
• When a customer wishes to make a purchase, he/she must register at
the site using an email address and mobile number, a certain amount
on the deal purchased is either paid online or on delivery, the rest must
be paid to the dealer.
• All terms and conditions as well as the location of stores offering the
deal is provided on the website. As soon as a deal is purchased, the
customer receives a confirmation via e mail and text message.
• The customer can either print out the coupon or just show the text
message at point of purchase to avail the offer.

30. KEY FEATURES
Discount
platform
for
customers
•Consumers can
return cuoupons
Advertising
platform
for
merchants
•Online simple &
secure payment
Discount
coupons /
promo
codes
•Online product
catalogs, updated
regularly
Multi-
currency
transactions
• real-time data
processing
system

31. No inventory cost
User-friendly
Timely shipping
Easy to set-up/monitor operations
Brand variety
Low profit margin
More discounts from unknown brands
Complex coupon management
Traffic generation is toughest

32. FUNDAMENTAL SUCCESS MATRIX
Keywords
Snapdeal, Online Shopping, Buy
books online, online book store,
online shopping India, online
shopping website, online
shopping store
Organic SEO Rank - 6 or 7
SEO
Load Speed - 2.8 sec
Backlinks - 3923
User Interface - very Good
Alexa Site Navigation Rating -
4.7/5
Advertising budget
2014-15
50cr
Website Rank
Google Page Rank - 5/10
Alexa world Rank - #265
Daily Page Views - 4.2mn
Sales Promotion
Techniques
Deals, Offers, Coupons, Promo
codes, Discounted vouchers,
referal reward system, Savings
Day
VAS
Same Day Express Delivery,
Cash on Delivery, SD Cash,
7 day return policy, 100%
money back guarantee,
Order Tracking,
In House Services
TrustPay ,Snapdeal
Express,Safeship,SmartFeed
,Courier Service

33. COLLATERAL INTEGRATED MARKETING STRATEGIES
TV
• Increase brand recall
• Big Boss 8 as 35cr sponsor
• Mobile shopping app
• Tag line "Dil ki Deal"
Facebook
• 2.4mn likes
• Fb ads
• Product launch as cover photos
• Updates on new products and offers
• Social Listening/Emotional Connect
Twitter
• 54k followers
• Avg. 6-7 tweets per day
• Mega Campaign
• 24*7 customer service channel -
• Real time connect
• Focus is service & engagement
Youtube
• Exclusive channel
• Subscribers 1500
• Video views - 3.8mn
• Service/Product launch/Brand
Promotion specific video
• Lack user Engagement/partcipation
Pinterest
• Followers - 750
• Teme based 55 boards
• Each Pin is redirected to its official
webpage
Google+
• Followers - 6,37,000
• 2 category posts/day
• Less focus on Deals/offer specific
posts
• Attractive image ads

34. CSR ACTIVITY
• It adopted a village called Shiv Nagar in Uttar Pradesh
in 2011, and provided the villagers with clean drinking
water. In gratitude the villagers changed the name to
Snapdeal.com

35. CONCLUSION
• Development of internet connectivity & Speed, firms are able
to promote product and services through web site.
• Therefore, detailed product information and improved service
attracts more and more people changed their consumer
behaviour from the traditional mode to internet shopping.
• Companies have realized that the consumer behaviour
transformation is unavoidable trend, and thus change their
marketing strategy.
• The internet shopping particularly in business to consumer
(B2C) has risen and online shopping become more
popular to many people.

36. • Snapdeal is successful in tapping the consumer needs
and focusing on the elimination of challenges faced by
the organisations for consumer resistance to online
shopping with innovativeness, transparency, security and
trust building factors in the form of promotions and
technology.

37. RECOMMENDATIONS AND SUGGESTIONS
• Adopt best practices concerning spamming, adhere to them and
communicate this more effectively to the consumer.
• Services like cash on delivery are a major enabler in introducing
consumers to online shopping and should have been encouraged
further.
• Security features like insurance of goods during delivery are being
provided but it is not being communicated effectively, as consumers are
largely unaware of such features.
• Controlling and maintaining the standards of services and products
on offer is very important.
• Consumers have a lot of choice and are not very loyal, even a single
bad experience is enough to turn them away.
• Maintaining a presence in traditional mass media in terms of brand
building is very important, judging by the effectiveness of such
campaigns in introducing consumers to online shopping, as competition
increases, brand will act as a key differentiator.

38. Thank You!!!