This document provides an overview of Snapdeal and Infibeam, two major Indian e-commerce companies. For Snapdeal, it summarizes their business model as a marketplace, growth in revenue from 2012-2014, investments in supply chain and logistics to improve delivery times, and use of social media marketing. For Infibeam, it outlines their hybrid business model involving both direct sales and as a marketplace, profitability achieved in 2012-2013, investments in their own logistics arm and logistics aggregation platform, and social media promotions.

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Presented By:
Amarjeet Singh
Ankush Roy
Ashitha VS
Koushik Rakshit
Masarrat Yasmeen
Roma Agrawal
&

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About Snapdeal
Business Model
Business Results
Supply Chain & Logistics
How Snapdeal works
Special Features
Customer Segmentation
Promotion & Social Media Campaign
Agenda

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Starting off in February 2010 with 20 employees
and currently boasting of around 2 crores
registered users
It offers assortment of 4+ million products across
diverse categories from over 50,000 sellers
shipping to 4000 cities and towns in India
It offers upto 90% discounts on dining, beauty,
health services, travel and much more
Within 14 months of its inception, they had 70%
of market share in deals space
Source: Wikipedia
About Snapdeal

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Jan 2015: smartprix.com

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It was started as daily deal platform, but
later expanded into product retailing across
various categories.
They are basically a middle – on one side
there is supply of wholesalers, distributors,
importers, retailers, manufacturers, dealers,
etc who have stuff they want to sell, but
they do not have enough reach through
offline media to do that – hence, they use
online media. On the other side they have
many customer’s demand.
Business Model – “Market Place”

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According to the CEO, an inventory based online store is becoming obsolete in India
because of the poor supply network and the high cost of holding inventory.
Indians do not like paying upfront before getting the product/service. Instead of taking
the full amount upfront, Snapdeal only takes its revenue share from the customer.
Business Model – “Market Place” Contd…

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Business Results
2012-13:
Revenue of about Rs 600 crore (US$94 million)
(15-20% is coming from m-commerce)
2013-14:
CEO is predicting revenue will cross 2000 crore (US$310 million)

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Supply Chain & Logistics

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Snapdeal to open logistics platform Safe ship to rival

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 Snapdeal is flush with funds, having raised $627 million (about Rs 3,845
crore at the then exchange rate) from Japanese internet, media and
telecom conglomerate SoftBank in October.
 Snapdeal remains the only big e-tailer in India that does not have a
captive delivery arm and relies completely on third-party logistics
 Snapdeal to spend Rs 350 crore on supply chain logistics in FY’15
 Snapdeal shortens delivery time, sets up 40 fulfilment centres
 Snapdeal to pick up products on Sundays too
 Snapdeal for single-factor authentication for low value deals
Supply Chain & Logistics Contd…

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 Step 1: Subscribe
• Subscribe with Snapdeal to get daily deal alert on your mobile number and e-
mail
 Step 2: Buy
• To buy any deal, click on “Buy” and make payment by various payment
modes: credit cards, debit cards, net banking etc.
 Step 3: Deal Confirmation
• Receive your deal voucher on SMS and E-mail
 Step 4: Redeem Your Deal
• Show your voucher at merchant location and redeem the deal
How Snapdeal Works

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 Price search on SMS
 Web services available for CRM and ERP integration
 Online payment facility
 It has Flexible Shipping management
 Client Account with return facility
 It has multicurrency and Multilingual support
 Easy to use payment methods
 Offers working coupons and promo codes
Snapdeal Feature

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Segmentation involves grouping consumers based on certain criteria.
Demographic
segmentation
Geographic
segmentation
Psychographic
segmentation
Behavioral
segmentation
-Age wise
-Gender wise
-Income wise
-State wise
-Urban Class
-SEC wise -Internet savvy
users
-who are not afraid
of online shopping
-who love to get
discounts
-who want to try
new products or
services
Customer Segmentation

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To generate the initial awareness, they conducted some strategic marketing initiatives.
After that, customer engagement increased rapidly as the service became popular.
 It makes extensive use of Google+, Twitter & Facebook for advertising deals. The
company's Facebook page has more than 1 million “Like”s.
On its website as well as on Social Media pages, Snapdeal
prominently displays the latest deals.
The key to their promotion is the aggressive discounting. Any
customer will pause for a second when he sees 80% off next to a
product.
Promotion and Social Media Campaign

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One campaign in particular deserves mention.
Snapdeal used both television and internet for
their “Yam-Dude” campaign. The ads claimed that
even Yama, the God of death cannot resist
Snapdeal's deals and offers.
Snapdeal partners with Den Networks to launch
TV home shopping channel ‘Den Snapdeal TV
Shop’
Promotion and Social Media Campaign Contd…

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About Infibeam
Business Model
Profitability
Customer Segmentation
Pricing
Supply Chain & Logistics
Promotion & Social Media Campaign
Agenda

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About Infibeam
Source: Wikipedia
Businesses
Infibeam.com : Online Retailing
Buildabazaar : E-Commerce Platform Software
Service
INCEPT : Ticketing Platform Software
INDENT: Music Streaming Platform
ODigMa: Digital Marketing Services
ShipDroid: Logistics Aggregation Platform
Infibeam Pi2: E-book Reader

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Business Snapshot
 Claims to offer 15 million products
 Five million monthly visits
 Site offers products including books, movies, music, mobile phones, computers,
apparel, jewellery, footwear and auto accessories
 Average transaction size is around Rs. 1,500 per order
 Tier 2 and 3 cities account for more than 50% of our sales
 Acquired Picsquare.com and Odigma

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Business Model – “Hybrid”
 Infibeam.com, the online retail website
of the company
– Sells own inventoried products and
facilitates other sellers
 Buildabazaar, e-commerce platform to
build online stores
– Separate web space or list in
infibeam.com
– e-commerce features of product
upload, promotions, accounting,
analytics, payment gateway,
logistics and reporting
– Ported into 20 languages

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Profitability
 Break even and marginal profit booked in 2012-2013
– First of its kind and era to achieve this
 GMV (gross merchandising value) generated collectively across thousands of
merchant presence contributes largely
– Rejects the notion of marketplace but maintains uniqueness of sellers

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Supply Chain & Logistics
Infibeam Logistics: its own logistics arm in major Indian cities.

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Supply Chain & Logistics
• ShipDroid, a logistics aggregation platform was launched in January 2015, to provide
uniformity of logistics services to small merchants across all courier partners.
• The platform covers 20,000 pincdes across 600 cities. The platform allows merchants to
choose mode of delivery such as surface, rail or air mode and also can opt for delivery
commitment SLAs such as express delivery or regular deliver

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Customer Segmentation
 Infibeam targeted the community of Internet users who were currently
online.
 Most Indian online shoppers were in the age group of 18 to 49 years.
 Infibeam had almost equal share of orders coming from northern (29 per
cent), western cost (30 per cent) and southern (31 per cent) India.
 The average time spent on the website, increased by 50 per cent during
2010.
 The number of registered users increased the compound annual growth
rate (CAGR) by 360 per cent over 2007–11.

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Pricing
 Infibeam tried to maintain low prices for its products throughout the year.
 Magic Box – One product everyday at a heavily discounted price
 Maintain low prices across categories
 Lowest possible price throughout year
 Regular monitoring of competition’s prices to set target purchase prices

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Pricing Contd…
 More discounts, offers during weekends to increase traffic
 Use of automated pricing technology - which automatically adjusts prices
within specified business rules when a competitor changes their prices on
products
 Increase margins on tail products
 Price discrimination - Identify the sources through which customers come
to the website – and price accordingly

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Promotion and Social Media Campaign
 TV commercials
 Infibeam contests and offers:
– “Ad-Vent”: where participants could design ads for the website and win
awards
– “Magic Box” offer: offers two products every day for lowest prices anywhere,
both online and offline
– Hot Deals

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Promotion and Social Media Campaign

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Promotion and Social Media Campaign

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Promotion and Social Media Campaign

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1. ODigMa: Strategy, Digital Marketing and
Technical Services to retail sector
companies.
2. Built some applications and campaigns on
Facebook, WhatsApp and Twitter for
clients in India and abroad.
3. This acquisition will broaden Infibeam's
own service capabilities in online space,
which the company provides through its
B2C platform Infibeam.com

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