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MARKETING PLAN
INFIBEAM-
“BUILDABAZAAR”
Presented By Group 6:
HARSHITA RAWAT-PGFB1517
VIDHI BAJPAI-PGFB1558
RISHABH SINGH-PGFB1537
BORNITA DAS-PGFB1513
TANU GOEL-PGFB1552
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ACKNOWLEDGEMENT
The module of Marketing Management II has been a unique experience in learning the
marketing aspects and techniques of actual implementing marketing plan and strategy.
During our visit to the company Infibeam we have gained a whole bunch of new experiences
and learned the aspects of actual work environment. We have gained experience in analyzing
a business situation and the marketing techniques that we can adopt in order to run and grow
the business successfully. We have started with the marketing plan of the BuildaBazaar
platform which has a vision to provide shop to every entrepreneur in an affordable way with
least investment of cost. During our every visit to the company our mentor Mr. Kush Tyagi
(Sr. Manager, Infibeam.com) had shared his experience of working in an actual business
environment and also imparted with the knowledge of marketing. It has been a fruitful
experience to learn the actual work environment and use the knowledge we have gained in
the module of Marketing Management- I. Now, we can do the analysis of a business situation
and we can formulate and implement marketing strategy. The module of Marketing
Management II has provided us a framework for decision-making where we can apply both
our knowledge of marketing concepts and also implement the creativity.
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CONTENTS-
1. INTRODUCTION
2. EXECUTIVE SUMMARY
3. SITUATION ANALYSIS:
a. MARKET SUMMARY
b. SWOT ANALYSIS
c. COMPETITION
d. PRODUCT OFFERINGS
e. DISTRIBUTION
4. MARKETING STRATEGY:
a. OBJECTIVES
b. MARKET SEGMENTATION
c. TARGETING
d. POSITIONING
e. STRATEGIES
i. PRODUCT
ii. PRICE
iii. DISTRIBUTION
iv. COMMUNICATION
v. BRANDING
f. MARKETING MIX
g. BLOG
h. FORECASTING
5. FINANCIALS
a. BUDGET
b. REVENUE MODEL
c. EXPENSES
d. ROI
6. CONTROL MEASURES
7. RECOMMENDATIONS
8. EVIDENCE
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INTRODUCTION
Infibeam was founded in 2007 by Vishal Mehta in Ahemdabad. Mehta started Infibeam along
with a group of Amazon employees. He funded the company by selling his personal assets
rather than opting for external equity funding. The company was started with an initial capital
of ₹ 10-15 crores. Infibeam.com started as an automobile portal in 2007, but later turned into
an online retailer.
THE STORYSO FAR-
Established in Sept 2007.
Acquired digital catalog IP from a proprietorship on March 2008.
Acquired online photo printing portal picsquare.com on Aug 2008.
Launched BuildaBazaar enterprise platform on Jun 2011.
Sets up JV with sony for digital downloads and distribution on Nov 2012.
BuildaBazaar crosses the landmark figure of hosting 20,000 retailers on its platform on Dec
2013.
Buys digital marketer ODigMA for $5 million on Feb 2014.
Sony buys 26 percent stake in Infibeam’s digital entertainment platform on May 2014.
Launched a new generic top-level domain(.ooo) on Oct 2014.
EXECUTIVE SUMMARY
Infibeam is an E-commerce company involved in Online retailing, E-Commerce Software
and Internet Services. It has launches the Builabazaar enterprise platform in June 2011. With
the growing scope of internet and technology the company has planned to move beyond the
online retailing and wants to establish an infrastructure for the entrepreneurs to build their
stores online. The company is trying to capture the market opportunity of building the online
platform for selling goods. The company has been aware that more consumers are coming
online day by day. Also, the established brand of infibeam will strengthen their idea of
building e- commerce platform. The company has been focused to provide the incomparable
technological support to its client through its flexible platform of BuildaBazaar in order to
provide shop to ever Indian in an affordable way. The company has set its objective to further
strengthen and grow the service platform of BuildaBazaar.
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MARKET SUMMARY
Infibeam.com is currently generating profits on their part and thus have a good customer base
for their products. The Company also has an e commerce platform to build e- stores for
business entrepreneurs. The increasing usage of internet and global reach shows a positive
growth for the company in the coming years. With the increasing competitors in the market
the company wants to scan the current market situation to further promote their product and
create awareness so that they can emerge at an apex position.
As infibeam.com runs on IT platform and offers B2B, their end customers are “brands”.
Their product ‘BuildaBazaar targets the budding entrepreneurs’. Through BuildaBazaar they
can avail a 15 days free trial and can get business platform where they can upload their
complete catalogue and start their online business.
BUILDABAZAAR-
 BuildaBazaar is an enterprise platform built by Infibeam with operations in India and
Middle East.
 It is a SaaS model that is, software as a service which ensures high performance platform
without worrying about the hardware maintenance and software up gradations.
 It offers small , medium and large merchants a wide commerce platform to start online
store under their own domain name.
 It is based on cloud services which supports multi lingual, multi currency features and
integrates operation support services like payment gateway, logistics, order management,
marketing & catalogue management.
 Leading brands who trust BuildaBazaar are Crossword ,Airtel, Hidesign, MTS and many
more.
 Shopify, Zepo, Shopnix are few of the competitors of BuildaBazaar.
This product is the main pillar of Infibeam. Where other e-commerce companies of INDIA
like flipkart , jabong are running on losses , Infibeam is INDIA’s only profitable e-commerce
company because of its B2B platform and BuildaBazaar is one of them.
After the IPO Infibeam is planning to come out with certain improvisations in its existing
profiles so as to gain the maximum benefit , sales and market share.
POTENTIAL SIZE OF THE MARKET
 Infibeam’s B2B profile portal BuildaBazaar is currently the leader in the ecommerce
shopping platform provider.
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 There are few more companies in this field but the level of services provided by
BuildaBazaar are comparatively higher such as
o Marketing activities for brands
o Ground activities for big brands
o Logistics
 There are at this time 30000+ live stores in BuildaBazaar and still counting.
 Upcoming competitors are both challenge as well as opportunity.
 The size is not confined as any enterprise with plan and money is entertained here.
 New start-ups with plans and ability to pay will broaden the size of the market.
SWOT ANALYSIS OF BUILDABAZAAR
STRENGTHS-
 Customized look and feel.
 Speed of execution.
 Customer support: 24*7 and weekends too.
 Free trials.
WEAKNESS-
 Transaction fees
 Less number of products displayed
 No application support
 Partner not liable to share sales upto Rs. 25000/- earned by partner during the first 6
months
OPPORTUNITIES-
 Customers are more on mobiles and apps now
 Unexploited rural small and medium consumers
 Youths coming up with online start ups
 Can expand more internationally
THREATS-
 Number of alternatives available
 Companies coming up with their own online retail websites
 Security issues
 Amazon is also coming up with B2B profile
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COMPETITION
The key competitors of BuildaBazaar are-
1.) NDSL- Net distribution enables brands and retailers to start selling their products
online under their own brand. To enable their clients to sell using their unique
e.tailing model. They have built a robust e-commerce ecosystem that enables brand to
sell to customers directly using the exclusive online brand outlet (EOBO) concept.
2.) Shopify- A Canadian Commerce Company headquartered in Ottawa, Ontario that
develops computer software’s for online stores and retail point-of-sale system.
Founded in 2004, and was initially based on earlier software written by its founders
for their online snowboard store. The company reports that it has 200,000 merchants
using its platform, with total gross merchandise volume exceeding $10 billion.
3.) Martjack- Martjack is a full-fledged ecommerce software platform to create online
store. Create your own web store and start selling online within minutes. E-commerce
platform system is used by a spectrum of retail businesses including brands, retail
chains, manufacturers, distributors and other retail businesses.
4.) Shopnix- shopnix is one of the best ecommerce platform that gives everything
requires to sell product online. Including website, hosting, shopping cart software and
payment gateway. Ecommerce services are helpful to manage online store software
has features which continuously tested with real life consumers.
5.) Zepo- An Indian ecommerce start-up headquartered in Mumbai, India that offers DIY
ecommerce platform which help SMBs create and run their own online store. it
currently hosts more than 1500 online stores on its platform. The company was
awarded with express IT award under entrepreneurship category in 2014.
PRODUCT OFFERINGS
BuildaBazaar offers:
i) Live online store for entrepreneur.
ii) Entrepreneur can build their own branded online store and can start their business.
iii) Provide 15 days free trial service.
iv) Offers payment gateway, marketing support and logistics support.
 NATURE OF PRODUCTS
o Jewellery: Mangalam, EVES24, Sukkhi online jewellery etc.
o Home Decor: @home , Nilkamal , furnishturfetc
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o Apparels :Club Fox , GlowIndianetc
o Books : Om Books.com , Crossword etc
o Theme Parks :Adlabsimagica , Adventure Island etc
 EXCEPTIONS TO THE PRODUCTS
o Food products are perishable in nature so these are less favourable for them.
BASIC PRODUCT FEATURE
The nature and type of the product depends on the interested enterprise itself. The common
feature that BuildaBazaar provide is good back end service.
BuildaBazaar deals with or allows every kind of product to be sold through its portal except
highly perishable items.
CHANNEL
A channel strategy is a plan of the vendor as to how a product or a service will move through
the decided or planned chain of commerce to the ultimate consumers.
A prescribed channel design is required to be made in order to make sure that there are no
clashes or confusion in between the movement of a product or service.
Our company that is BuildaBazaar being a SaaS that deals in B2B profile follows a zero level
marketing strategy or a direct channel of marketing.
It directly deals with the consumers without any intermediaries in between as it is basically a
software that provides a platform to other enterprises (SME’s) to come and sell their products
online under their own brand name.
The third party components can be considered rather.
They are as follows:
 Logistics
 Payment gateways
 Other integrations
LOGISTICS
BuildaBazaar provides logistics support to its customers. It has 35 third party courier partners
integrated into the platform. BuildaBazaar connect its customer to one or more of them for
exploring a partnership. This way the customers that are the brands in the platform can
organize their shipping services.
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Some of the shipping agents are as follows:
 BlueDart
 Deccan 360
 RedExpress
 DTDC
 Fedex
 DHL etc.
International shipping is also facilitated now for gold plans.
PAYMENT GATEWAYS
The enterprises under BuildaBazaar can collect online payments using credit cards, debit
cards and net banking as well. For this purpose BuildaBazaar provides support for online
payment gateways integration to its customers.
It is integrated with numbers of domestic and international payments gateways that can be
used by the brands or enterprises in the platform to solve their online payment problems.
Some of the qualified payment gateways are as follows:
 DirecPay
 Billdesk
 CCAvenue
 TechProcess
 HDFC
 PayPal
 Axis etc
Other than this the payment gateway apps in the BuildaBazaar app store like Paytm ,PayU
Money etc can also solve the problem.
For offline payments cash on delivery facility is also available.
OTHER INTEGRATIONS
Apart from the above two that are mentioned, BuildaBazaar has integrated with other third
parties for different services. For example :
 it has integrations with some companies for sending bulk SMS
 Amazon for cloud computing
 3rd party app store for merchant for the purpose of feedback, payment gateway, launch
and campaign, etc.
In case of the 3rd party app store the app developers also get large pool of merchants through
BuildaBazaar.
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OBJECTIVES
PRICING OBJECTIVES
It gives direction to the whole pricing process as well as determines the various objectives
involved in the first step of pricing. When deciding on pricing objectives one must consider.
1) The overall financial, marketing and strategic objectives of the company.
2) The objectives of the product or brand.
3) Consumer price elasticity and price points.
4) The resources available.
The pricing objectives followed by BuildaBazaar are as follows:
1) Survival - BuildaBazaar is more about providing services rather than products. So
there is flexibility in price based on their needs and requirement of the brands. Mainly
there focus is on big bands like crossword, airtel, hidesign, MTS.etc. Catered to any
category from the one who pays Rs.1000 or 2000/month to the other who pay Rs.20
lakh and above so it’s scalable.
2) Profit maximization – In order to maximize their profit they are providing their own
courier services, logistics and own software. They also provide their own custom-er
services. They had also launched a third party application store for its merchants to
improve customer experience on their online store.
3) Providing discounts and allowances – Creating interest and excitement about a
product by providing discounts and allowances they offer discounts on silver and gold
yearly plans when advance payments is made. There are no additional charges for
data transfer or band width that the shop or brand will consume even if their site is
attracting high traffic.
4) Discourage competitors from cutting prices – Their competitors are NDSL, shopify
etc.
5) Maintain price leadership- They follow a value based pricing strategy so they are
the leaders among their competitors.BuildaBazaar is a leader in its sector.
COMMUNICATION OBJECTIVE:-
The major key marketing communication objectives of BuildaBazaar are –
1.) Social network integration-They attract customer on social networks. Share
information about their store on face book and twitter, allow customer to engage with
their store using social sharing features like face book and twitter
.
2.) Publicity for ipo- Recently they raised funds for doing the publicity for IPO. They
are the first e-commerce firm to take the IPO (initial public offering) route to raise
money.
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3.) Advertisement through tv commercials and public speaking- They advertise stores
through various TV commercials and public speaking although there TV commercials
are not popularized still they took some initiative to advertise their platform.
4.) Advertising agency for digital marketing odigma – They advertise it through
ODIGMA. A digital marketing company that provides strategy, digital marketing and
technical services to hundreds of companies across major retail and services to
hundreds of companies across major retail and services sector.
5.) Creating successful brand identities- To get more and more merchants to it’s
platform they launched .ooo (triple ooo) top level domain registry. Actually digital
fulfillment of services is what they do. As most of the merchants don’t get the name
they want with ooo. Builadbazaar can get more merchant and on the other hand brand
can create their own identities.
MARKET SEGMENTATION
GEOGRAPHIC
I. BuildaBazaar.com is an e commerce SaaS platform built by Infibeam with operations
in India and Middle East.
II. With its recently launched division BuilaBazaar Ahemedabad based leading
ecommerce firm infibeam.com looks to create rural, urban linkages that the company
expects will benefit farmers in the state.
III. Planning to offer the service in 10 more countries
.
DEMOGRAPHIC
I. A gift to all the entrepreneurial dream
II. Mainly focussed on big brands
III. Get customers across the world
PSYCHOGRAPHIC
I. Focussed on budding entrepreneurial
II. Links with big brands
BEHAVIORAL
I. Integration support for payment gateway
II. Get larger product selection
III. Coupons and discounts
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TARGETING:
• Targeting refers to selecting the segment(s) to enter Infibeam’s product
‘BuildaBazaar’ targets ‘Brands’, at the same time they also serve the niche market.
• Currently they have all big brands like Airtel, Canon, Crossword associated with
them. BuildaBazaar offers as a hosted solution for its both current & target market.
• They have set targeted segments based on the features of their product and also the
price they offer.
• They have vision to target their customers according to each customer personal
requirements. Example –
• They have a comprehensive CMS – Catalogue management system for product
management.
• Also they have simple web User interface to add new products to the store, manage
product description, price, and stock.
FUTURE TARGETING OPTIONS
• Currently, they offer 4 pricing plans including ‘Silver’, ‘Gold’, ‘Gold Plus’ and
‘Platinum’ starting from 1,000 per month to as high as custom plan with 15 days free
trail.
• In order to target more customer base they can offer free online website options as
well as value added features to their website to gain the crowd.
• Also, they can add different offers for different customers segments and can
respectively target firms, brands, students, women entrepreneur. For example they can
bring whole package for firms, a different package with distinguish features for
brands same they can apply segregate package plans for students and women
entrepreneur.
POSITIONING
• Positioning refers to position the market offering in the minds of target customers.
• Since, customers already have Infibeam brand positioned in their mind it supports
BuildaBazaar to imprint its impression on customer mind.
• Also, with the increasing advent of technology benefits BuildaBazaar positioning can
be carved.
The diagram shows BuildaBazaar positioning and target perspective.
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The company targets both its profit building customers like brands and general customers like
budding and women entrepreneur to capture the bigger market share from their product.
They are maintaining this targeting segment with their loyalty and attractive price offers
which help to build a position for the company’s product in customers mind.
BRAND POSITIONING
For brand positioning in the mind of its target customers BuildaBazaar is insisting upon
customer care and the satisfaction of their customers, as they offers intangible services. They
want to position their platform in the mind of their customers as their customers are big
brands like airtel, crossword etc.
They keep in mind their key competitors like Shopify, martzack , NDSL when they do the
branding of their product. They make a complete competitive analysis for the same in order
to segregate themselves from their competitors. They provide their own logistic services and
also do attractive packaging for their brand positioning. They are their own software
provider. Recently, they have also launched a third party application store for its merchants to
improve customer experience on their online stones.
They Cater to needs of any category of customer able to deal in terms of monetary of rupees
2,000 to 20,00,000.
They have a benefit as they already have a positioned brand name of infibeam with this
product.
Some key areas that BuildaBazaar has insisted upon for brand positioning:
POSITIONING
ATTRACTIVE
PRICES
LOYALTY
GENERAL
CUSTOMERS
BASE
(Forgrowth and
expansion)
PROFITABLE
CUSTOMERS
(Like Brands)
TARGETING
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• They have focused on good back-end flexibility for their customer.
• They are focused on value additions for their brand positioning.
• Building their own courier company.
• Flexibility for user in product pricing.
• Cloud computing for customer benefit.
• Storage facility.
PRODUCT MIX
Product mix refers to the total number of product lines that a company offers to its customers.
The four dimensions of a company’s product mix includes width, length, depth and
consistency.
BUILDABAZAAR PRODUCT MIX
BuildaBazaar that is into business to business ( B2B) profile does not have any such product
mix in their system because they only provide the platform for other interested enterprises to
sell their products through its portal.
The product offer totally depends on what is the need from the software.
Additional services or products offered by BuildaBazaar are:
 Safe and secure payment gateways
 Marketing support
 Logistics support
Though it provide the above listed services as well but does not own these services as it has
tied up with other companies for such services and has to pay for them.
PRODUCT DECISION
Product decision basically depends upon the enterprises coming up to BuildaBazaar for
platform requirements and so the decision depends on the requirements of such enterprises
provided that they have money to pay for the same.
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PRODUCT EXTENSION
Although no proper product line can be determined in the BuildaBazaar system but an
extension to the number of services that can be offered has been come up with online
ticketing portal inside BuildaBazaar itself.
No new product has introduced in last 2 years but in coming future after IPO BuildaBazaar is
planning to own a cloud storage of its own for which till this time it is paying to Amazon and
to invest more in own logistics.
PACK SIZE
Pack size may vary from a small mobile to Ac or refrigerator. Anything that can be courier is
offered.
PACKAGING
Sometimes secondary packaging is asked for over and above primary packaging by the
enterprise itself from BuildaBazaar where the risk of damage is high , so as to ensure that the
product do not get damage otherwise the whole return would come to the head of
BuildaBazaar.
PRODUCT LIFE CYCLE
The products of BuildaBazaar goes from introduction to growth and to maturity but doesn’t
decline as after reaching the maturity stage it further goes to upgradations.
PRICING STRATEGIES
A business can use a variety of pricing strategies when selling a product or service. The price
can be set to maximize profitability for each unit sold or from the market overall. It can be
used to defend an existing market from new entrants, to increase market share within a
market. Businesses may benefit from lowering or raising prices, depending on the needs and
behaviors of customers and clients in the particular market. Finding the right pricing strategy
is an important element in running a successful business.
BuildaBazaar primarily follows the following pricing strategy :
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1. PAY WHAT YOU WANT
The more features you want the more you will have to pay.
2. VALUE BASED PRICING
The level of value that a particular customer derives out of the BuildaBazaar, he will
be charged accordingly.
3. TIME BASED PRICING
It simply means adjusting the price according to the willingness of the customer to
pay.
4. PRICE DISCRMINATION
Setting different price for different brands, depending upon their size and pocket.
5. PRICE LEADERSHIP
As there are a few alike setups like BuildaBazaar so it always aims at putting he first
step ahead.
6. PREDATORY PRICING
It shows a cut throat competition between the competitors.
For example when one of the competitor of BuildaBazaar NDSL reduced the prices ,
BuildaBazaar also reduced its prices to a level.
The pricing strategy that BuildaBazaar follows highly depends on the demand of its
customers at a particular point of time as well as the paying capacity of the customers that is
the other enterprises in this case.
The changes in prices of the services are done according to the need and requirements of their
customers.
BuildaBazaar purely follows value based pricing strategy driven by the customers.
Big brands are charged accordingly and so the small brands.
There are many pricing schemes from which one can select the best suited:
 SILVER : Rs 1000/month
 GOLD : Rs 2500/month
 GOLD PLUS : Rs 5000/month
 PLATINUM : Custom
Pricing depends on the ability of a customer to pay for the service and can choose
accordingly from the list of schemes.
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In the same way pricing for other heads such as setup fees , transaction fees , sellers’
commission etc is done.
 For SILVER transaction fee is 2% and seller’s commission is 1%.
 For GOLD transaction fee is 1% and seller’s commission is 1.5%.
 For GOLD PLUS transaction fee is 0% and seller’s commission is 2%.
 PLATINUM is highly customized.
Along with all the other services it provides 15 days free trial to the new joiners.
It also gives its customers a benefit of upgrading to a higher plan as and when requested.
It further offers discounts on SILVER and GOLD yearly plans when advance payments are
made by them.
A very new concept or feature of BuildaBazaar offers a basic plan having limited features
with zero monthly fees.
So at last to conclude we can say that the policy here in BuildaBazaar is “the more you get,
the more you pay “depending upon the needs and requirements.
FACTORS DECIDINGTHE CHANNEL DESIGN/3RD
PARTY
 SERVICE LEVEL AGREEMENT (SLA)
It is an agreement between the service provider (internal or external) and the end user that
defines the level of service expected from the service provider. It is a document that
describes the performance criteria a provider promises to meet while delivering a service.
BuildaBazaar completely follow this agreement while making any decision.
It works on an agreement between the 3rd party and itself abiding to the terms and
conditions mentioned there in.
There is a SLA between the enterprises and BuildaBazaar as well.
 COST EFFECTIVENESS
BuildaBazaar will select that 3rd party where the cost of taking up the service is minimal.
The main motive of BuildaBazaar is profit making so it tries to save cost as and when
possible. If a service provider will charge more than the willingness of BuildaBazaar to
pay then it will cancel the deal. This factor is taken into consideration for every type of
service whether payment gateways or logistics.
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 DELIVERY ON TIME
In case of logistics the other factor can be the time taken by a shipping agent or courier
company to deliver the product to the final customer.
It can be decided by checking the past records and reviews of that courier company.
 FREQUENCY OF FAILED TRANSACTIONS
In case of the payment gateway decision making, the frequency of failed transactions
happened in any of the integrated gateway will decide whether to choose it or not. On the
contrary, the gateway with good reviews for transaction success will be considered first.
Other factor can be the transaction fee charged by the payment gateway.
COMMUNICATION STRATEGY
Communication is the process of imparting or exchanging of information by speaking,
writing, or using some other medium.
 Initially BuildaBazaar was limited to conferences in order to communicate with the
other big brands.
 They are target the Middle East for meetings and other business deals. For example:
They had recently approached South Africa to increase there B2B selling by offering
them their platform.
 They had recently introduced new TV Commercial Ads which is a process of
communication strategy.
 Unlike the other ecommerce companies such as Amazon, Snap deal etc invest more in
promotion, BuildaBazaar invest less for higher profit return.
 They had very limited banners and posters.
BRANDING STRATEGY
Branding strategy is a long term plan for the development of a successful brand in order to
achieve specific goals. There are several components of branding strategy such as Purpose,
Consistency, Flexibility, Loyalty and Competitive Awareness.
The branding strategy of BuildaBaazar is based on two parameters:
1. Pricing
They remain consistent with their pricing policy. They plan their strategy according to
the customers need and demands. They also have the quality of flexibility which
depends on the requirements of the customers.
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2. Changes in products
They upgrade their products as customers requirements changes and according to the
demands from the company. They also provide services online.
For example: Infibeam.com will soon be coming up with video-conferencing for
business deals for those who are unable to meet them face to face.
PROMOTIONMIX
1. Publicity: In this kind of promotional strategy they conduct CII i.e. Confederation of
Indian Industries where the big brands and they meet in meetings and conferences to
create awareness about BuildaBazaar.
2. Digital Marketing: They have their own software ODIGMA where the big brands
can do their business.
3. Advertising: They have recently come up with TV commercials and print media for
promoting their product.
ATL (Above the line)
ATL focuses on the TV commercials that they have started newly. They also use print media
as one of their communication strategy.
BTL (Below the line)
BTL focuses on the banners and posters. BuildaBazaar is also active in facebook.
BLOG
‘BUILDABAZAAR’ --The Service that offers the billion dreams to come true.
Ho Ho Ho!! Here comes the Santa with his bag full of gifts for everyone. This year his bag is
even heavier, might be the list of gifts are longer this time. Let’s see what he has in his big
bag. It’s a box. It is labeled as dreams. Let’s open this dream box.
It is a shop. But see this is not just a shop it is a virtual shop. People are doing their business
virtually. This is a shop can’t be seen from the globe but persists as dreams for every
entrepreneur.
The medium that fulfill these dreams is BUILDABAZAAR. Let’s build this bazaar of
dreams.
Entrepreneurship is fulfilling your dreams, taking risk and investing time and effort. But what
an ease in today’s scenario is ease of virtual business. Where no extra money we spend on
infrastructure rent and maintaining shelves. Just pure business.
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Let’s start building your own dream shop, where every brick is put not by the contractor but
by the entrepreneur. Firstly a name of choice is must to recognize the brand and differentiate
it from rest. Here we have a .000 domain extension which offers a brand name of the choice
of the entrepreneur.
Done with the brand name let’s create this virtual infrastructure (bazaar). This is
BUILDABAZAAR. A platform to create online business infrastructure in an easy manner
FORECASTING
 There are no such techniques or methods of forecasting the sales for future or target
any sales margin for the upcoming years.
 They also sometimes work at 0% sales.
 They do consider the past experience for assumptions but they do not focus much on
forecasting.
 They focus on the big brands mainly with an initial investment of 20 lakhs.
 The big brands like Canon, Airtel, Adlabs, Panasonic etc who shows their interest for
their website are offered their portal with a initial investment of 20 Lakhs.
 They do not probe any one to come up, they just give that the platform to the
interested brands.
BUDGET
Budget is an estimate of revenue and expenses for over a specified future period of time of a
particular business.
BuildaBazaar , being a Software as a Service (SaaS) works on one time investment plan. The
software once prepared is used in the near futures for all the services to be provided to the
customers/ clients.
In BuildaBazaar the revenue is regular but expenses are not regular and frequent. They
charge a fixed monthly fee from their clients depending upon the type of plan chosen by that
client.
There are no investments made by the company also they do not spend much on promotions,
advertisements and marketing. Therefore, the expenses so far are few but with the issue of
IPO in near future they will be investing more on advertisements and marketing and other
investments as well.
The level of service provided in BuildaBazaar varies from client to client depending upon the
demand and requirement of that particular client. The client pays for the services rendered by
21
BuidaBazaar to them and in case the client demand for any value added service like
marketing or video conferencing etc, so in this case the value added cost will be borne by the
client itself. This way the expenses on part of BuildaBazaar are neutralized.
BuildaBazaar has not made any budget so far from the commencing date that is may , 2011
but once the IPO will be out they are planning to expand their services, branch office, new
investments etc and so will come up with a particular budget after the IPO.
As there are no fixed revenue and expenses hence finding out the breakeven point analysis is
very difficult to do as of now.
Budget allocation for various activities is not fixed and regular. The budget for promotional
activities is very low although they have recently started expending more on that for publicity
because of the IPO to come.
The company is looking forward to the IPO$80 million for capital raising and certainly after
that it will come up with a proper budget.
REVENUE MODEL
The company Infibeam revenue has been divided into two categories:
1. Product revenue: It includes revenue that comes from selling of products through its
private website www.infibeam.com
2. Service revenue: It includes revenue that it accumulate through BuildaBazaar where
the company capture value of commission, and not of transaction
The Service revenue showed CAGR of more than 100% in December 2014. Also, the EBITA
performance in 2014, showing marginally negative & on net level EBITA stands at 218 cr.
ranges from April 2014 to December 2014.
BUDGET ALLOCATION FROM IPO
Since, infibeam has planned to launch the Initial Public Offering it has planned to allocate the
money to various purposes. It has planned to raise 450 cr. and invest the same in building
logistics and strengthen the technological platform. The planned distribution of money is as
under:
• 235 cr. planned to be used for cloud based data centre and on IT platform.
• 37.5 cr. in building logistics centers, delivery to merchants and customers on board.
• 67 cr. will be invested in software, to add more servers.
22
• Rest of the money will be allocated for GCBD.
Also, according to the management the company is able to retain their EBITA as positive as
the services revenue is helping them to maintain the profit level.
REVENUE
• Revenue for the Company infibeam is divided into two categories:
• Product revenue (buy and sell product)
• Service revenue (BuildaBazaar- capture value of commission, and not of transaction)
• Service revenue showed CAGR – more than 100% December 2014
• EBITA performance in 2014, showing marginally negative & on net level EBITA
stands at 218 cr. From April to December 2014.
• Cash inflow through IPO
• Sales percentage
• New expansion
• Monthly fee from clients for example:
 Airtel: minimum 2 lakh per month
 Omex theme park: 2.15 lakh per month etc
• Tie up with govt charging Rs. 500 per store
1.) Cash inflow through IPO. –First e-commerce firm to take IPO route for raising
funds. Estimated raised funds are about $80 million. It will also be used to expand in
international market, build infrastructure, platform and manages supply chain
logistics.
2.) Sales percentage- Being their client JJ valaya offers them 40% of their sales margin.
Also they charge Rs.2 lakhs/month as the rental charge from airtel, 2.15 lakhs/month
from omaxe (theme park).
3.) New expansion –new expansion in Bangalore is there after IPO.
4.) Focus on profit- buildabazzar earns one percent of sales on its platform. It’s perhaps
the largest infrastructure provider for SMEs in the country. As this company forayed
into west as in 2013 which add significantly to the group’s revenue.
5.) Hosting- today buildabazzar host more than 30,000 retailer including crossword and
the mobile store ,home appliances maker prestige, leather goods maker hidesign and
mobile companies such as MTS India and Airtel . They charge Rs.2 lakh/month as a
rental charge from airtel.
23
EXPENSES
The expenses of BuildaBazaar are the charges it has to pay for the services it has taken from
various other service providers.
BuildaBazaar has to pay hosting fee to Amazon for taking cloud computing services from it.
Fee is paid to Akamai service providers for cash distribution network and security services
like firewall etc.
Cash distribution network is also taken from CDN and so fee is paid to CDN as well for the
same.
The total payment made for the above services is 3 lakh per annum that is to be paid by
BuildaBazaar.
Other than the above expenses it also spends on advertisements but very less as they do not
do their marketing a lot.
If any additional service is demanded by the clients so the extra charge is borne by the
customer itself depending on the requirements.
With the issue of IPO they will be increasing their spendings.
Expenses also include the salary which they provide to the software engineers and the support
staff.
RETURN ON INVESTMENT
• One time investment-
To setup BuildaBazaar cost is incurred only once which is of source code i.e. which is
purchased and redefined to build the software.
• All charges including setup and monthly charges are revenue-
All the cost which BuildaBazaar charges from its customer which includes setup cost
and monthly rental are all revenue for BuildaBazaar.
• High ROI-
BuildaBazaar has high ROI because of one time investment and regular high returns.
• 1% of the sales on its platform-
Apart from setup and monthly charges BuildaBazaar also charges 1% of the sales
from its customers for which they have provided their platform.
24
CONTROL MEASURES
Man Hours:
The budget depends on how much rate they charge for the man hours in a day. If they do not
work it doesn’t affect the budget.
Software records the transaction itself:
The software as service to the enterprises that are the clients of BuildaBazaar, record the
transactions made in between BuildaBazaar and the clients as and when it takes place in the
memory.
RECOMMENDATIONS FROM OUR SIDE
FOR COMMUNICATION STRATEGY
 BuildaBazaar is far behind in marketing and recognition to quite an extent despite of
being a leader in its domain. It should start spending more on advertisement, promotions
and marketing. The more it will be visible to the public and the existing SME’s as well as
the budding one, the more benefits it will reap out of it.
 In order to be more profitable and high on market share it can focus on making a social
awareness among the people through promotions and advertisements on urban-rural
linkage, opportunity for youths, various SHG’s , an easy and hazel free online store.
 BuildaBazaar may conduct online as well as offline surveys among the people as well as
the SME’s to know their visibility, popularity as well competitors in the market.
 More use of banners and posters is required to get mass viewers out of which few might
turn into its customers.
 The frequency of print ads must be increased specially in the business columns and
business newspapers.
 Print ads should also be published in regional/ local newspapers and in the respective
language to get a wider reach and scope.
 Public speaking can be done in rural areas as well to create awareness and may be special
offers and schemes can be given to them.
25
 Last but not the least, blogs must be written and published to create awareness of the
company.
FOR CHANNEL DESIGN
 Being a follower of direct channel marketing we cannot recommend much for the channel
design but the channels or the third parties in this case may contribute in promoting
BuildaBazaar.
 The integrated apps or service providers can promote the company by giving suggestions
to the other users for a trial, by pop up ads on the apps, display ads etc.
• After the IPO they should increase-
– Print ads from 2 to 5 which costs around 20 lakhs for front page and 40 lakhs
for both the sides in Times Of India and other Business newspapers.
– Print ads in regional newspapers which have a wider reach costing around Rs.
7 lakhs
– T.V ads which costs 25K per second in peak hours and 15K per second in
normal hours
– Public speaking which costs no more than 20-15K
26
EVIDENCE
27
28

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Marketing plan for Buildabazaar

  • 1. 1 MARKETING PLAN INFIBEAM- “BUILDABAZAAR” Presented By Group 6: HARSHITA RAWAT-PGFB1517 VIDHI BAJPAI-PGFB1558 RISHABH SINGH-PGFB1537 BORNITA DAS-PGFB1513 TANU GOEL-PGFB1552
  • 2. 2 ACKNOWLEDGEMENT The module of Marketing Management II has been a unique experience in learning the marketing aspects and techniques of actual implementing marketing plan and strategy. During our visit to the company Infibeam we have gained a whole bunch of new experiences and learned the aspects of actual work environment. We have gained experience in analyzing a business situation and the marketing techniques that we can adopt in order to run and grow the business successfully. We have started with the marketing plan of the BuildaBazaar platform which has a vision to provide shop to every entrepreneur in an affordable way with least investment of cost. During our every visit to the company our mentor Mr. Kush Tyagi (Sr. Manager, Infibeam.com) had shared his experience of working in an actual business environment and also imparted with the knowledge of marketing. It has been a fruitful experience to learn the actual work environment and use the knowledge we have gained in the module of Marketing Management- I. Now, we can do the analysis of a business situation and we can formulate and implement marketing strategy. The module of Marketing Management II has provided us a framework for decision-making where we can apply both our knowledge of marketing concepts and also implement the creativity.
  • 3. 3 CONTENTS- 1. INTRODUCTION 2. EXECUTIVE SUMMARY 3. SITUATION ANALYSIS: a. MARKET SUMMARY b. SWOT ANALYSIS c. COMPETITION d. PRODUCT OFFERINGS e. DISTRIBUTION 4. MARKETING STRATEGY: a. OBJECTIVES b. MARKET SEGMENTATION c. TARGETING d. POSITIONING e. STRATEGIES i. PRODUCT ii. PRICE iii. DISTRIBUTION iv. COMMUNICATION v. BRANDING f. MARKETING MIX g. BLOG h. FORECASTING 5. FINANCIALS a. BUDGET b. REVENUE MODEL c. EXPENSES d. ROI 6. CONTROL MEASURES 7. RECOMMENDATIONS 8. EVIDENCE
  • 4. 4 INTRODUCTION Infibeam was founded in 2007 by Vishal Mehta in Ahemdabad. Mehta started Infibeam along with a group of Amazon employees. He funded the company by selling his personal assets rather than opting for external equity funding. The company was started with an initial capital of ₹ 10-15 crores. Infibeam.com started as an automobile portal in 2007, but later turned into an online retailer. THE STORYSO FAR- Established in Sept 2007. Acquired digital catalog IP from a proprietorship on March 2008. Acquired online photo printing portal picsquare.com on Aug 2008. Launched BuildaBazaar enterprise platform on Jun 2011. Sets up JV with sony for digital downloads and distribution on Nov 2012. BuildaBazaar crosses the landmark figure of hosting 20,000 retailers on its platform on Dec 2013. Buys digital marketer ODigMA for $5 million on Feb 2014. Sony buys 26 percent stake in Infibeam’s digital entertainment platform on May 2014. Launched a new generic top-level domain(.ooo) on Oct 2014. EXECUTIVE SUMMARY Infibeam is an E-commerce company involved in Online retailing, E-Commerce Software and Internet Services. It has launches the Builabazaar enterprise platform in June 2011. With the growing scope of internet and technology the company has planned to move beyond the online retailing and wants to establish an infrastructure for the entrepreneurs to build their stores online. The company is trying to capture the market opportunity of building the online platform for selling goods. The company has been aware that more consumers are coming online day by day. Also, the established brand of infibeam will strengthen their idea of building e- commerce platform. The company has been focused to provide the incomparable technological support to its client through its flexible platform of BuildaBazaar in order to provide shop to ever Indian in an affordable way. The company has set its objective to further strengthen and grow the service platform of BuildaBazaar.
  • 5. 5 MARKET SUMMARY Infibeam.com is currently generating profits on their part and thus have a good customer base for their products. The Company also has an e commerce platform to build e- stores for business entrepreneurs. The increasing usage of internet and global reach shows a positive growth for the company in the coming years. With the increasing competitors in the market the company wants to scan the current market situation to further promote their product and create awareness so that they can emerge at an apex position. As infibeam.com runs on IT platform and offers B2B, their end customers are “brands”. Their product ‘BuildaBazaar targets the budding entrepreneurs’. Through BuildaBazaar they can avail a 15 days free trial and can get business platform where they can upload their complete catalogue and start their online business. BUILDABAZAAR-  BuildaBazaar is an enterprise platform built by Infibeam with operations in India and Middle East.  It is a SaaS model that is, software as a service which ensures high performance platform without worrying about the hardware maintenance and software up gradations.  It offers small , medium and large merchants a wide commerce platform to start online store under their own domain name.  It is based on cloud services which supports multi lingual, multi currency features and integrates operation support services like payment gateway, logistics, order management, marketing & catalogue management.  Leading brands who trust BuildaBazaar are Crossword ,Airtel, Hidesign, MTS and many more.  Shopify, Zepo, Shopnix are few of the competitors of BuildaBazaar. This product is the main pillar of Infibeam. Where other e-commerce companies of INDIA like flipkart , jabong are running on losses , Infibeam is INDIA’s only profitable e-commerce company because of its B2B platform and BuildaBazaar is one of them. After the IPO Infibeam is planning to come out with certain improvisations in its existing profiles so as to gain the maximum benefit , sales and market share. POTENTIAL SIZE OF THE MARKET  Infibeam’s B2B profile portal BuildaBazaar is currently the leader in the ecommerce shopping platform provider.
  • 6. 6  There are few more companies in this field but the level of services provided by BuildaBazaar are comparatively higher such as o Marketing activities for brands o Ground activities for big brands o Logistics  There are at this time 30000+ live stores in BuildaBazaar and still counting.  Upcoming competitors are both challenge as well as opportunity.  The size is not confined as any enterprise with plan and money is entertained here.  New start-ups with plans and ability to pay will broaden the size of the market. SWOT ANALYSIS OF BUILDABAZAAR STRENGTHS-  Customized look and feel.  Speed of execution.  Customer support: 24*7 and weekends too.  Free trials. WEAKNESS-  Transaction fees  Less number of products displayed  No application support  Partner not liable to share sales upto Rs. 25000/- earned by partner during the first 6 months OPPORTUNITIES-  Customers are more on mobiles and apps now  Unexploited rural small and medium consumers  Youths coming up with online start ups  Can expand more internationally THREATS-  Number of alternatives available  Companies coming up with their own online retail websites  Security issues  Amazon is also coming up with B2B profile
  • 7. 7 COMPETITION The key competitors of BuildaBazaar are- 1.) NDSL- Net distribution enables brands and retailers to start selling their products online under their own brand. To enable their clients to sell using their unique e.tailing model. They have built a robust e-commerce ecosystem that enables brand to sell to customers directly using the exclusive online brand outlet (EOBO) concept. 2.) Shopify- A Canadian Commerce Company headquartered in Ottawa, Ontario that develops computer software’s for online stores and retail point-of-sale system. Founded in 2004, and was initially based on earlier software written by its founders for their online snowboard store. The company reports that it has 200,000 merchants using its platform, with total gross merchandise volume exceeding $10 billion. 3.) Martjack- Martjack is a full-fledged ecommerce software platform to create online store. Create your own web store and start selling online within minutes. E-commerce platform system is used by a spectrum of retail businesses including brands, retail chains, manufacturers, distributors and other retail businesses. 4.) Shopnix- shopnix is one of the best ecommerce platform that gives everything requires to sell product online. Including website, hosting, shopping cart software and payment gateway. Ecommerce services are helpful to manage online store software has features which continuously tested with real life consumers. 5.) Zepo- An Indian ecommerce start-up headquartered in Mumbai, India that offers DIY ecommerce platform which help SMBs create and run their own online store. it currently hosts more than 1500 online stores on its platform. The company was awarded with express IT award under entrepreneurship category in 2014. PRODUCT OFFERINGS BuildaBazaar offers: i) Live online store for entrepreneur. ii) Entrepreneur can build their own branded online store and can start their business. iii) Provide 15 days free trial service. iv) Offers payment gateway, marketing support and logistics support.  NATURE OF PRODUCTS o Jewellery: Mangalam, EVES24, Sukkhi online jewellery etc. o Home Decor: @home , Nilkamal , furnishturfetc
  • 8. 8 o Apparels :Club Fox , GlowIndianetc o Books : Om Books.com , Crossword etc o Theme Parks :Adlabsimagica , Adventure Island etc  EXCEPTIONS TO THE PRODUCTS o Food products are perishable in nature so these are less favourable for them. BASIC PRODUCT FEATURE The nature and type of the product depends on the interested enterprise itself. The common feature that BuildaBazaar provide is good back end service. BuildaBazaar deals with or allows every kind of product to be sold through its portal except highly perishable items. CHANNEL A channel strategy is a plan of the vendor as to how a product or a service will move through the decided or planned chain of commerce to the ultimate consumers. A prescribed channel design is required to be made in order to make sure that there are no clashes or confusion in between the movement of a product or service. Our company that is BuildaBazaar being a SaaS that deals in B2B profile follows a zero level marketing strategy or a direct channel of marketing. It directly deals with the consumers without any intermediaries in between as it is basically a software that provides a platform to other enterprises (SME’s) to come and sell their products online under their own brand name. The third party components can be considered rather. They are as follows:  Logistics  Payment gateways  Other integrations LOGISTICS BuildaBazaar provides logistics support to its customers. It has 35 third party courier partners integrated into the platform. BuildaBazaar connect its customer to one or more of them for exploring a partnership. This way the customers that are the brands in the platform can organize their shipping services.
  • 9. 9 Some of the shipping agents are as follows:  BlueDart  Deccan 360  RedExpress  DTDC  Fedex  DHL etc. International shipping is also facilitated now for gold plans. PAYMENT GATEWAYS The enterprises under BuildaBazaar can collect online payments using credit cards, debit cards and net banking as well. For this purpose BuildaBazaar provides support for online payment gateways integration to its customers. It is integrated with numbers of domestic and international payments gateways that can be used by the brands or enterprises in the platform to solve their online payment problems. Some of the qualified payment gateways are as follows:  DirecPay  Billdesk  CCAvenue  TechProcess  HDFC  PayPal  Axis etc Other than this the payment gateway apps in the BuildaBazaar app store like Paytm ,PayU Money etc can also solve the problem. For offline payments cash on delivery facility is also available. OTHER INTEGRATIONS Apart from the above two that are mentioned, BuildaBazaar has integrated with other third parties for different services. For example :  it has integrations with some companies for sending bulk SMS  Amazon for cloud computing  3rd party app store for merchant for the purpose of feedback, payment gateway, launch and campaign, etc. In case of the 3rd party app store the app developers also get large pool of merchants through BuildaBazaar.
  • 10. 10 OBJECTIVES PRICING OBJECTIVES It gives direction to the whole pricing process as well as determines the various objectives involved in the first step of pricing. When deciding on pricing objectives one must consider. 1) The overall financial, marketing and strategic objectives of the company. 2) The objectives of the product or brand. 3) Consumer price elasticity and price points. 4) The resources available. The pricing objectives followed by BuildaBazaar are as follows: 1) Survival - BuildaBazaar is more about providing services rather than products. So there is flexibility in price based on their needs and requirement of the brands. Mainly there focus is on big bands like crossword, airtel, hidesign, MTS.etc. Catered to any category from the one who pays Rs.1000 or 2000/month to the other who pay Rs.20 lakh and above so it’s scalable. 2) Profit maximization – In order to maximize their profit they are providing their own courier services, logistics and own software. They also provide their own custom-er services. They had also launched a third party application store for its merchants to improve customer experience on their online store. 3) Providing discounts and allowances – Creating interest and excitement about a product by providing discounts and allowances they offer discounts on silver and gold yearly plans when advance payments is made. There are no additional charges for data transfer or band width that the shop or brand will consume even if their site is attracting high traffic. 4) Discourage competitors from cutting prices – Their competitors are NDSL, shopify etc. 5) Maintain price leadership- They follow a value based pricing strategy so they are the leaders among their competitors.BuildaBazaar is a leader in its sector. COMMUNICATION OBJECTIVE:- The major key marketing communication objectives of BuildaBazaar are – 1.) Social network integration-They attract customer on social networks. Share information about their store on face book and twitter, allow customer to engage with their store using social sharing features like face book and twitter . 2.) Publicity for ipo- Recently they raised funds for doing the publicity for IPO. They are the first e-commerce firm to take the IPO (initial public offering) route to raise money.
  • 11. 11 3.) Advertisement through tv commercials and public speaking- They advertise stores through various TV commercials and public speaking although there TV commercials are not popularized still they took some initiative to advertise their platform. 4.) Advertising agency for digital marketing odigma – They advertise it through ODIGMA. A digital marketing company that provides strategy, digital marketing and technical services to hundreds of companies across major retail and services to hundreds of companies across major retail and services sector. 5.) Creating successful brand identities- To get more and more merchants to it’s platform they launched .ooo (triple ooo) top level domain registry. Actually digital fulfillment of services is what they do. As most of the merchants don’t get the name they want with ooo. Builadbazaar can get more merchant and on the other hand brand can create their own identities. MARKET SEGMENTATION GEOGRAPHIC I. BuildaBazaar.com is an e commerce SaaS platform built by Infibeam with operations in India and Middle East. II. With its recently launched division BuilaBazaar Ahemedabad based leading ecommerce firm infibeam.com looks to create rural, urban linkages that the company expects will benefit farmers in the state. III. Planning to offer the service in 10 more countries . DEMOGRAPHIC I. A gift to all the entrepreneurial dream II. Mainly focussed on big brands III. Get customers across the world PSYCHOGRAPHIC I. Focussed on budding entrepreneurial II. Links with big brands BEHAVIORAL I. Integration support for payment gateway II. Get larger product selection III. Coupons and discounts
  • 12. 12 TARGETING: • Targeting refers to selecting the segment(s) to enter Infibeam’s product ‘BuildaBazaar’ targets ‘Brands’, at the same time they also serve the niche market. • Currently they have all big brands like Airtel, Canon, Crossword associated with them. BuildaBazaar offers as a hosted solution for its both current & target market. • They have set targeted segments based on the features of their product and also the price they offer. • They have vision to target their customers according to each customer personal requirements. Example – • They have a comprehensive CMS – Catalogue management system for product management. • Also they have simple web User interface to add new products to the store, manage product description, price, and stock. FUTURE TARGETING OPTIONS • Currently, they offer 4 pricing plans including ‘Silver’, ‘Gold’, ‘Gold Plus’ and ‘Platinum’ starting from 1,000 per month to as high as custom plan with 15 days free trail. • In order to target more customer base they can offer free online website options as well as value added features to their website to gain the crowd. • Also, they can add different offers for different customers segments and can respectively target firms, brands, students, women entrepreneur. For example they can bring whole package for firms, a different package with distinguish features for brands same they can apply segregate package plans for students and women entrepreneur. POSITIONING • Positioning refers to position the market offering in the minds of target customers. • Since, customers already have Infibeam brand positioned in their mind it supports BuildaBazaar to imprint its impression on customer mind. • Also, with the increasing advent of technology benefits BuildaBazaar positioning can be carved. The diagram shows BuildaBazaar positioning and target perspective.
  • 13. 13 The company targets both its profit building customers like brands and general customers like budding and women entrepreneur to capture the bigger market share from their product. They are maintaining this targeting segment with their loyalty and attractive price offers which help to build a position for the company’s product in customers mind. BRAND POSITIONING For brand positioning in the mind of its target customers BuildaBazaar is insisting upon customer care and the satisfaction of their customers, as they offers intangible services. They want to position their platform in the mind of their customers as their customers are big brands like airtel, crossword etc. They keep in mind their key competitors like Shopify, martzack , NDSL when they do the branding of their product. They make a complete competitive analysis for the same in order to segregate themselves from their competitors. They provide their own logistic services and also do attractive packaging for their brand positioning. They are their own software provider. Recently, they have also launched a third party application store for its merchants to improve customer experience on their online stones. They Cater to needs of any category of customer able to deal in terms of monetary of rupees 2,000 to 20,00,000. They have a benefit as they already have a positioned brand name of infibeam with this product. Some key areas that BuildaBazaar has insisted upon for brand positioning: POSITIONING ATTRACTIVE PRICES LOYALTY GENERAL CUSTOMERS BASE (Forgrowth and expansion) PROFITABLE CUSTOMERS (Like Brands) TARGETING
  • 14. 14 • They have focused on good back-end flexibility for their customer. • They are focused on value additions for their brand positioning. • Building their own courier company. • Flexibility for user in product pricing. • Cloud computing for customer benefit. • Storage facility. PRODUCT MIX Product mix refers to the total number of product lines that a company offers to its customers. The four dimensions of a company’s product mix includes width, length, depth and consistency. BUILDABAZAAR PRODUCT MIX BuildaBazaar that is into business to business ( B2B) profile does not have any such product mix in their system because they only provide the platform for other interested enterprises to sell their products through its portal. The product offer totally depends on what is the need from the software. Additional services or products offered by BuildaBazaar are:  Safe and secure payment gateways  Marketing support  Logistics support Though it provide the above listed services as well but does not own these services as it has tied up with other companies for such services and has to pay for them. PRODUCT DECISION Product decision basically depends upon the enterprises coming up to BuildaBazaar for platform requirements and so the decision depends on the requirements of such enterprises provided that they have money to pay for the same.
  • 15. 15 PRODUCT EXTENSION Although no proper product line can be determined in the BuildaBazaar system but an extension to the number of services that can be offered has been come up with online ticketing portal inside BuildaBazaar itself. No new product has introduced in last 2 years but in coming future after IPO BuildaBazaar is planning to own a cloud storage of its own for which till this time it is paying to Amazon and to invest more in own logistics. PACK SIZE Pack size may vary from a small mobile to Ac or refrigerator. Anything that can be courier is offered. PACKAGING Sometimes secondary packaging is asked for over and above primary packaging by the enterprise itself from BuildaBazaar where the risk of damage is high , so as to ensure that the product do not get damage otherwise the whole return would come to the head of BuildaBazaar. PRODUCT LIFE CYCLE The products of BuildaBazaar goes from introduction to growth and to maturity but doesn’t decline as after reaching the maturity stage it further goes to upgradations. PRICING STRATEGIES A business can use a variety of pricing strategies when selling a product or service. The price can be set to maximize profitability for each unit sold or from the market overall. It can be used to defend an existing market from new entrants, to increase market share within a market. Businesses may benefit from lowering or raising prices, depending on the needs and behaviors of customers and clients in the particular market. Finding the right pricing strategy is an important element in running a successful business. BuildaBazaar primarily follows the following pricing strategy :
  • 16. 16 1. PAY WHAT YOU WANT The more features you want the more you will have to pay. 2. VALUE BASED PRICING The level of value that a particular customer derives out of the BuildaBazaar, he will be charged accordingly. 3. TIME BASED PRICING It simply means adjusting the price according to the willingness of the customer to pay. 4. PRICE DISCRMINATION Setting different price for different brands, depending upon their size and pocket. 5. PRICE LEADERSHIP As there are a few alike setups like BuildaBazaar so it always aims at putting he first step ahead. 6. PREDATORY PRICING It shows a cut throat competition between the competitors. For example when one of the competitor of BuildaBazaar NDSL reduced the prices , BuildaBazaar also reduced its prices to a level. The pricing strategy that BuildaBazaar follows highly depends on the demand of its customers at a particular point of time as well as the paying capacity of the customers that is the other enterprises in this case. The changes in prices of the services are done according to the need and requirements of their customers. BuildaBazaar purely follows value based pricing strategy driven by the customers. Big brands are charged accordingly and so the small brands. There are many pricing schemes from which one can select the best suited:  SILVER : Rs 1000/month  GOLD : Rs 2500/month  GOLD PLUS : Rs 5000/month  PLATINUM : Custom Pricing depends on the ability of a customer to pay for the service and can choose accordingly from the list of schemes.
  • 17. 17 In the same way pricing for other heads such as setup fees , transaction fees , sellers’ commission etc is done.  For SILVER transaction fee is 2% and seller’s commission is 1%.  For GOLD transaction fee is 1% and seller’s commission is 1.5%.  For GOLD PLUS transaction fee is 0% and seller’s commission is 2%.  PLATINUM is highly customized. Along with all the other services it provides 15 days free trial to the new joiners. It also gives its customers a benefit of upgrading to a higher plan as and when requested. It further offers discounts on SILVER and GOLD yearly plans when advance payments are made by them. A very new concept or feature of BuildaBazaar offers a basic plan having limited features with zero monthly fees. So at last to conclude we can say that the policy here in BuildaBazaar is “the more you get, the more you pay “depending upon the needs and requirements. FACTORS DECIDINGTHE CHANNEL DESIGN/3RD PARTY  SERVICE LEVEL AGREEMENT (SLA) It is an agreement between the service provider (internal or external) and the end user that defines the level of service expected from the service provider. It is a document that describes the performance criteria a provider promises to meet while delivering a service. BuildaBazaar completely follow this agreement while making any decision. It works on an agreement between the 3rd party and itself abiding to the terms and conditions mentioned there in. There is a SLA between the enterprises and BuildaBazaar as well.  COST EFFECTIVENESS BuildaBazaar will select that 3rd party where the cost of taking up the service is minimal. The main motive of BuildaBazaar is profit making so it tries to save cost as and when possible. If a service provider will charge more than the willingness of BuildaBazaar to pay then it will cancel the deal. This factor is taken into consideration for every type of service whether payment gateways or logistics.
  • 18. 18  DELIVERY ON TIME In case of logistics the other factor can be the time taken by a shipping agent or courier company to deliver the product to the final customer. It can be decided by checking the past records and reviews of that courier company.  FREQUENCY OF FAILED TRANSACTIONS In case of the payment gateway decision making, the frequency of failed transactions happened in any of the integrated gateway will decide whether to choose it or not. On the contrary, the gateway with good reviews for transaction success will be considered first. Other factor can be the transaction fee charged by the payment gateway. COMMUNICATION STRATEGY Communication is the process of imparting or exchanging of information by speaking, writing, or using some other medium.  Initially BuildaBazaar was limited to conferences in order to communicate with the other big brands.  They are target the Middle East for meetings and other business deals. For example: They had recently approached South Africa to increase there B2B selling by offering them their platform.  They had recently introduced new TV Commercial Ads which is a process of communication strategy.  Unlike the other ecommerce companies such as Amazon, Snap deal etc invest more in promotion, BuildaBazaar invest less for higher profit return.  They had very limited banners and posters. BRANDING STRATEGY Branding strategy is a long term plan for the development of a successful brand in order to achieve specific goals. There are several components of branding strategy such as Purpose, Consistency, Flexibility, Loyalty and Competitive Awareness. The branding strategy of BuildaBaazar is based on two parameters: 1. Pricing They remain consistent with their pricing policy. They plan their strategy according to the customers need and demands. They also have the quality of flexibility which depends on the requirements of the customers.
  • 19. 19 2. Changes in products They upgrade their products as customers requirements changes and according to the demands from the company. They also provide services online. For example: Infibeam.com will soon be coming up with video-conferencing for business deals for those who are unable to meet them face to face. PROMOTIONMIX 1. Publicity: In this kind of promotional strategy they conduct CII i.e. Confederation of Indian Industries where the big brands and they meet in meetings and conferences to create awareness about BuildaBazaar. 2. Digital Marketing: They have their own software ODIGMA where the big brands can do their business. 3. Advertising: They have recently come up with TV commercials and print media for promoting their product. ATL (Above the line) ATL focuses on the TV commercials that they have started newly. They also use print media as one of their communication strategy. BTL (Below the line) BTL focuses on the banners and posters. BuildaBazaar is also active in facebook. BLOG ‘BUILDABAZAAR’ --The Service that offers the billion dreams to come true. Ho Ho Ho!! Here comes the Santa with his bag full of gifts for everyone. This year his bag is even heavier, might be the list of gifts are longer this time. Let’s see what he has in his big bag. It’s a box. It is labeled as dreams. Let’s open this dream box. It is a shop. But see this is not just a shop it is a virtual shop. People are doing their business virtually. This is a shop can’t be seen from the globe but persists as dreams for every entrepreneur. The medium that fulfill these dreams is BUILDABAZAAR. Let’s build this bazaar of dreams. Entrepreneurship is fulfilling your dreams, taking risk and investing time and effort. But what an ease in today’s scenario is ease of virtual business. Where no extra money we spend on infrastructure rent and maintaining shelves. Just pure business.
  • 20. 20 Let’s start building your own dream shop, where every brick is put not by the contractor but by the entrepreneur. Firstly a name of choice is must to recognize the brand and differentiate it from rest. Here we have a .000 domain extension which offers a brand name of the choice of the entrepreneur. Done with the brand name let’s create this virtual infrastructure (bazaar). This is BUILDABAZAAR. A platform to create online business infrastructure in an easy manner FORECASTING  There are no such techniques or methods of forecasting the sales for future or target any sales margin for the upcoming years.  They also sometimes work at 0% sales.  They do consider the past experience for assumptions but they do not focus much on forecasting.  They focus on the big brands mainly with an initial investment of 20 lakhs.  The big brands like Canon, Airtel, Adlabs, Panasonic etc who shows their interest for their website are offered their portal with a initial investment of 20 Lakhs.  They do not probe any one to come up, they just give that the platform to the interested brands. BUDGET Budget is an estimate of revenue and expenses for over a specified future period of time of a particular business. BuildaBazaar , being a Software as a Service (SaaS) works on one time investment plan. The software once prepared is used in the near futures for all the services to be provided to the customers/ clients. In BuildaBazaar the revenue is regular but expenses are not regular and frequent. They charge a fixed monthly fee from their clients depending upon the type of plan chosen by that client. There are no investments made by the company also they do not spend much on promotions, advertisements and marketing. Therefore, the expenses so far are few but with the issue of IPO in near future they will be investing more on advertisements and marketing and other investments as well. The level of service provided in BuildaBazaar varies from client to client depending upon the demand and requirement of that particular client. The client pays for the services rendered by
  • 21. 21 BuidaBazaar to them and in case the client demand for any value added service like marketing or video conferencing etc, so in this case the value added cost will be borne by the client itself. This way the expenses on part of BuildaBazaar are neutralized. BuildaBazaar has not made any budget so far from the commencing date that is may , 2011 but once the IPO will be out they are planning to expand their services, branch office, new investments etc and so will come up with a particular budget after the IPO. As there are no fixed revenue and expenses hence finding out the breakeven point analysis is very difficult to do as of now. Budget allocation for various activities is not fixed and regular. The budget for promotional activities is very low although they have recently started expending more on that for publicity because of the IPO to come. The company is looking forward to the IPO$80 million for capital raising and certainly after that it will come up with a proper budget. REVENUE MODEL The company Infibeam revenue has been divided into two categories: 1. Product revenue: It includes revenue that comes from selling of products through its private website www.infibeam.com 2. Service revenue: It includes revenue that it accumulate through BuildaBazaar where the company capture value of commission, and not of transaction The Service revenue showed CAGR of more than 100% in December 2014. Also, the EBITA performance in 2014, showing marginally negative & on net level EBITA stands at 218 cr. ranges from April 2014 to December 2014. BUDGET ALLOCATION FROM IPO Since, infibeam has planned to launch the Initial Public Offering it has planned to allocate the money to various purposes. It has planned to raise 450 cr. and invest the same in building logistics and strengthen the technological platform. The planned distribution of money is as under: • 235 cr. planned to be used for cloud based data centre and on IT platform. • 37.5 cr. in building logistics centers, delivery to merchants and customers on board. • 67 cr. will be invested in software, to add more servers.
  • 22. 22 • Rest of the money will be allocated for GCBD. Also, according to the management the company is able to retain their EBITA as positive as the services revenue is helping them to maintain the profit level. REVENUE • Revenue for the Company infibeam is divided into two categories: • Product revenue (buy and sell product) • Service revenue (BuildaBazaar- capture value of commission, and not of transaction) • Service revenue showed CAGR – more than 100% December 2014 • EBITA performance in 2014, showing marginally negative & on net level EBITA stands at 218 cr. From April to December 2014. • Cash inflow through IPO • Sales percentage • New expansion • Monthly fee from clients for example:  Airtel: minimum 2 lakh per month  Omex theme park: 2.15 lakh per month etc • Tie up with govt charging Rs. 500 per store 1.) Cash inflow through IPO. –First e-commerce firm to take IPO route for raising funds. Estimated raised funds are about $80 million. It will also be used to expand in international market, build infrastructure, platform and manages supply chain logistics. 2.) Sales percentage- Being their client JJ valaya offers them 40% of their sales margin. Also they charge Rs.2 lakhs/month as the rental charge from airtel, 2.15 lakhs/month from omaxe (theme park). 3.) New expansion –new expansion in Bangalore is there after IPO. 4.) Focus on profit- buildabazzar earns one percent of sales on its platform. It’s perhaps the largest infrastructure provider for SMEs in the country. As this company forayed into west as in 2013 which add significantly to the group’s revenue. 5.) Hosting- today buildabazzar host more than 30,000 retailer including crossword and the mobile store ,home appliances maker prestige, leather goods maker hidesign and mobile companies such as MTS India and Airtel . They charge Rs.2 lakh/month as a rental charge from airtel.
  • 23. 23 EXPENSES The expenses of BuildaBazaar are the charges it has to pay for the services it has taken from various other service providers. BuildaBazaar has to pay hosting fee to Amazon for taking cloud computing services from it. Fee is paid to Akamai service providers for cash distribution network and security services like firewall etc. Cash distribution network is also taken from CDN and so fee is paid to CDN as well for the same. The total payment made for the above services is 3 lakh per annum that is to be paid by BuildaBazaar. Other than the above expenses it also spends on advertisements but very less as they do not do their marketing a lot. If any additional service is demanded by the clients so the extra charge is borne by the customer itself depending on the requirements. With the issue of IPO they will be increasing their spendings. Expenses also include the salary which they provide to the software engineers and the support staff. RETURN ON INVESTMENT • One time investment- To setup BuildaBazaar cost is incurred only once which is of source code i.e. which is purchased and redefined to build the software. • All charges including setup and monthly charges are revenue- All the cost which BuildaBazaar charges from its customer which includes setup cost and monthly rental are all revenue for BuildaBazaar. • High ROI- BuildaBazaar has high ROI because of one time investment and regular high returns. • 1% of the sales on its platform- Apart from setup and monthly charges BuildaBazaar also charges 1% of the sales from its customers for which they have provided their platform.
  • 24. 24 CONTROL MEASURES Man Hours: The budget depends on how much rate they charge for the man hours in a day. If they do not work it doesn’t affect the budget. Software records the transaction itself: The software as service to the enterprises that are the clients of BuildaBazaar, record the transactions made in between BuildaBazaar and the clients as and when it takes place in the memory. RECOMMENDATIONS FROM OUR SIDE FOR COMMUNICATION STRATEGY  BuildaBazaar is far behind in marketing and recognition to quite an extent despite of being a leader in its domain. It should start spending more on advertisement, promotions and marketing. The more it will be visible to the public and the existing SME’s as well as the budding one, the more benefits it will reap out of it.  In order to be more profitable and high on market share it can focus on making a social awareness among the people through promotions and advertisements on urban-rural linkage, opportunity for youths, various SHG’s , an easy and hazel free online store.  BuildaBazaar may conduct online as well as offline surveys among the people as well as the SME’s to know their visibility, popularity as well competitors in the market.  More use of banners and posters is required to get mass viewers out of which few might turn into its customers.  The frequency of print ads must be increased specially in the business columns and business newspapers.  Print ads should also be published in regional/ local newspapers and in the respective language to get a wider reach and scope.  Public speaking can be done in rural areas as well to create awareness and may be special offers and schemes can be given to them.
  • 25. 25  Last but not the least, blogs must be written and published to create awareness of the company. FOR CHANNEL DESIGN  Being a follower of direct channel marketing we cannot recommend much for the channel design but the channels or the third parties in this case may contribute in promoting BuildaBazaar.  The integrated apps or service providers can promote the company by giving suggestions to the other users for a trial, by pop up ads on the apps, display ads etc. • After the IPO they should increase- – Print ads from 2 to 5 which costs around 20 lakhs for front page and 40 lakhs for both the sides in Times Of India and other Business newspapers. – Print ads in regional newspapers which have a wider reach costing around Rs. 7 lakhs – T.V ads which costs 25K per second in peak hours and 15K per second in normal hours – Public speaking which costs no more than 20-15K
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