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Group No 4-Snapdeal

Group No 4-Snapdeal

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Published by Gajendra Singh
Snapdeal
Snapdeal

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Published by: Gajendra Singh on Mar 13, 2013
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05/14/2014

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Submitted By: Group No.

4 Gajendra Sisodia (FT13125) Gaurav Varshney (FT13127) Gurpreet Singh(FT13132)
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.. 3 Current website ........................................................... 7 Recommendations for new e-commerce model & Justification: ............................................ 5 Opportunities: ......................................................................Table of Contents Submitted By: Group No.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 7 Promotion and Revenue: ................................................................................. 1 Gurpreet Singh(FT13132)........... 1 Gaurav Varshney (FT13127).............. ........ 1 Gajendra Sisodia (FT13125) . 3 Existing Ecommerce practices by Snapdeal ................................. 3 Existing Ecommerce practices by competitors (Flipkart) ........................................................................................ 8 2 ............................................................................................................................................................................................................... 1 Introduction ......................................................................................................................................................

Clearly. technology. the only differentiating factor is assortment. Existing Ecommerce practices by competitors (Flipkart): Flipkart an electronic commerce company was established by Sachin Bansal and Binny Bansal in 2007 and now it is among India’s largest online retailers with reported sales of Rs 75 crore for year 2011-11. Its E-commerce business is built around three pillars: value.com was started in February 2010. 250000+ listed products with over 200 categories. Snapdeal has zipped ahead of others. Apparel. Furthermore. Footwear.com is a leading online marketplace. has that edge in assortment as of now in both online and offline modes. The valuebased approach of Walmart for example is hard to replicate. Electronics. Spas & Entertainment amongst others. Sachin Bansal and Binny Bansal both are alumni of Indian Institute of Technology Delhi who 3 . The company was started by Kunal Bahl. Subsequently. Snapdeal. as a daily deal platform. Existing Ecommerce practices by Snapdeal: The Company believes in working backwards to fulfilling what customer wants and then align supply chain. the returns are still single-digit figures. alumnus of IIT Delhi. Sports. Books. a Wharton graduate and Rohit Bansal. Another significant factor is the retail sector worth $500 billion in India is only 10% organized. and services like Restaurants. convenience. Fashion accessories. headquartered in New Delhi. The company claims that everyday about 25000+ units are sold. product management." In doing all this. and customer support towards this objective. has almost 3000+ featured brand. Snapdeal’ s experience is different. Kids. When a user visit the website it gives an option to enter the users email address to receive daily promotional and discount offers. in February 2010. which doesn’t eat much into Snapdeal’s sales. Snapdeal received a funding of $12 million from Nexus Venture Partners and Indo-US Venture Partners. India." The Company interrogate things about what is the best experience for the customer. The courier companies returning products don’t charge Snapdeal. You are either convenient. Snapdeal claims to have a subscriber base of around 18 million and has a presence across 50 cities in India. in July 2011.Introduction: Snapdeal. Snapdeal features products across categories like Mobiles. Cash on delivery model is also one the key differentiating ecommerce practice adopted by the company however high charges for COD transactions and customer returns are quoted as two reasons for COD being unfavourable. Home and Kitchen. the company raised a further $45 million from Bessemer Venture Partners. but later expanded into product retailing across various categories. The company has a section by the name Today’s top offer from which a user can select the best offer as per his/her demand. It almost ships to around 4000+ towns and cities in India. So. with 3000 products and adding a product every 10 seconds. assortment. there is no middle path in convenience. In January 2011. Its COD charges are lower than expenses of online payments and so the company prefers that customer’s buy on COD. taking the total investment in the company to $52 million. Snapdeal. In India. or you are out of business. a conscious effort is made to make it cost-effective too. along with existing investors Nexus Venture Partners and Indo-US Venture Partners.

games and software. They have an understanding with their associates for order tracking. reconciliation and MIS (Management Information Systems) reports. The 4 .com site by making payments using payments options like credit/debit card. selling CDs/DVDs of music. to deliver their products and Indian post for areas where courier do not reach. net banking. given their appreciation in e-commerce the world over. a 30-day replacement policy. The stocks are replenished every 24-48 hours. The major goal of the company is to provide a memorable online shopping experience to their customers so that they come back again and again using innovative services like Cash on Delivery. Flipkart stores details of all the transactions that need to be carried out. This also makes them differentiate from their competitors. They do not require huge inventory maintenance. 11 different categories. Depending upon the area where the item is to be shipped the company uses either their own internal logistics or Indian post and the delivery time varies between less than 24 hours 3 weeks and availability of the product like the products which are imported take 3 weeks’ time to get delivered to the customers. cashon-delivery. 2. Depending on items purchased they are packed and shipped accordingly for example mobile phones and books are packed differently as per requirement and also all items have transit insurance against theft and damages that may be caused while they are in transit. Flipkart follows some of the best practices of supply chain 1. as well mobile phones and electronics. movies. Also since books are low value items. are easier to negotiate supplier terms and profit margins are high. Initially Flipkart started with selling books online and has since diversified into a generic e-commerce site. The private courier companies in turn have their own ways of tracking every package. It is a safe option to start off with books.The first step in buying the products like books online from the Filpkart. The Process of Supply Chain. 3. packing. Flipkart bears the cost of delivery and this make them give a reason/motivator for improving efficiency at every point of supply chain. and discounted price and very importantly on time delivery of the products. with a strong focus on customer service. Building the Supplier base: The Company has established a network of more than 500 distributors and only stocks frequently ordered items. Building Infrastructure for Operations: The Company has 4 offices in 4 metros cities with more than 500 employees. EMI options. All the Team Members have been trained to work efficiently to meet customer expectation 4.com with a vision To be one of the largest multi-category e-commerce destinations in India.5 million book titles. In the Back End. First Flight etc. Items like the 'Long tail' are almost always sourced from suppliers in real time and as and when the customer places an order. shipping and so on. Now Flipkart have about 11. Company has tie-ups with more than 15 courier companies like Blue Dart. Use of Information system: The Company use sales to predict the inventory levels. Flipkart started with books because they are a comparatively easy category products to sell online. free shipping. inducing customer trial was easy. cheque/DD and money order and enter the phone number and address where the items need to be delivered. more than 2 million registered users and sale of 30000 items a day which makes it India's answer to Amazon. The warehouses are split into multiple areas — inventory. Warehouses of the company are located in 7 cities including the metros.started this company after quieting their jobs in Amazon.

customer is also updated about the status of his shipment via message. as a daily deal platform. It comes out with “Today's Top Offers” and “This Hour's Top Sellers” information as well Payment methods: Available on Snapdeal ranges from Credit Card. Electronics. and services like Restaurants. and Entertainment & Adventure. no Paperwork or any Processing Fees. Citi Bank Visa Card. Salon & Wellness. Cash On Delivery and Credit Card EMI. Current website: Snapdeal features products across categories like Mobiles. COD facility is available only on selected products. Apparel. HDFC Bank Visa Card and ICICI card are available with this Credit Card EMI facility after selecting one of the five options the user is taken to the transaction page where complete his purchase by putting his credentials. Visa. Books. They don’t charge any extra money for COD facility. Net Banking. Master Card and American Express are credit card service providers. It is unique in a sense that it also offers services unlike other e commerce sites like Spa. Debit Card. Footwear. Fashion accessories.com was started in February 2010. Spas & Entertainment amongst others. but later expanded into product retailing across various categories. HDFC Bank Master Card. 5 . All major banks are included for the Net Banking facility. Home and Kitchen. For Debit card payments all leading bank debit cards are valid. Citi Bank Master Card. Snapdeal claims to have a subscriber base of around 18 million and has a presence across 50 cities in India. Sports. Restaurants. Kids. A person can pay in 3 or 6 monthly instalments with no Interest. Snapdeal. email or through the website.

6 . Exciting offers of the days are promoted to their followers on twitters through daily tweets. Twitter. Its privacy policy is designed on the below parameters.Jan. Google Plus and Pinterest also. 2012. They are present on Facebook. including the use of social media They were identified as the hottest Internet Companies of the year at the premier edition of the 'Young Turks Awards' organized by Mercedes Benz and CNBC-TV 18 in New Delhi . Snapdeal has got huge no of likes on facebook and they promote to their followers these images. They share the pictures of hottest offers and promote it on their facebook page.Privacy Policy: Snapdeal is registered as Jasper Infotech Private Limited and its privacy policy was last updated on May 25. Afaqs's annual buzz-making poll voted them as the Buzziest brands of India in. 2012. Mostly sponsored adverts from Snapdeal appear on Facebook and Google search. They also run contests on social media sites.         Information and Usage Shared Personal Information Links to Third Party Websites Security Disclosure User Discretion General Provisions Contact Digital marketing.

The villagers were so grateful for the SnapDeal. Snapdeal.000 by December 2014. Company at present have tie up with 3. At present. Company is are not only looking for e-commerce players that specialise in specific product categories. a private equity firm invested Rs 550 crore in Snapdeal. In one of these initiative they installed 15 hand pumps so that villagers wouldn't have to walk nearly two miles just to get clean water.com expects to garner revenues of about Rs 600 crore in the current fiscal. With total market size of the industry Rs 46.com acquired eSportsBuy. Nepal.com an online retailer of sports & fitness equipment and accessories and Grabbon a group buying site. They looked for small companies which are riding on innovations and great ideas. from Shiv to SnapDeal.000 brand stores by the end of 2013 and 20. snapdeal is the largest e-retailer that earns highest e-commerce traffic in India.In India has experienced an astonishing growth in recent times and this growth is going to increase considerably in the near future.com branded pumps. but also relevant technology firms that can add value to their business. 7 . Snapdeal. Maldives and Singapore) and company further expecting to move the company towards a broader retailbuying platform. Snapdeal not only survived but also got successful in making amazing profits. so a lot of people of our parent’s age still don’t know what all this is.520 crore there is lot of opportunity for Snapdeal. many sites eventually shut down after acquiring losses.Opportunities: Due to competition in the e-commerce space. Snapdeal aims to record revenue of Rs500 crore by the year end and increase this to Rs5. However. It also raised money from from Bessemer Venture Partners and Nexus Venture Partners.Snapdeal is already operating from 50 cities in India and internationally (Snapdeal has started in Sri Lanka.500 crore by 2015. The company plans to have 10.com. Bangladesh. Snapdeal also took the inorganic route to expand quickly. Snapdeal also took some social initiative. with an 80% to 90% growth in traffic on Snapdeal.000 odd stores . Promotion and Revenue: Snapdeal uses advertisements on TV and radio as e-commerce is still nascent.from local to national and international ones. Awareness is increasing fast though. that they decided to change the name of their village. This is the reason why General Atlantic.

e. And demand side is (as-always) hunger for deals.000 brands and retailer partnering with the daily deal site. prospects are good. The startup is currently averaging 1. if you bought a spa deal.   Under new e commerce model proposed an equal importance on services deal should be provided. It should start targeting in tier II cities by including more products into its portfolio that attracts consumer segments. you could be interested in cosmetics and the site will surface relevant deals based on your historical data.  8 . there is a lot of distress inventory.  The Company should work on a recommendation engine that will help them cross-sell products and service deals – i.Recommendations for new e-commerce model & Justification: Given that Snapdeal is the largest player in daily deals business – this surely comes as a shock as the company is solely focusing on product business! Given that Snapdeal is the largest player in daily deals business – this surely comes as a shock as the company seems to be focusing on product business more and is moving away from daily deals business.  Snapdeal’s Product Business is 40% Driven by Tier-II Cities. With Snapdeal operations now extending across 50 of India’s largest cities and 10. Top categories are: Lifestyle (fashion accessories) and electronics (drives 20-25% of the sales). As far as supply side is concerned.5 million new members per month and can extract a lot of value out of the new members. They should focus more on apparels section where other sites like Jabong and Yebhi are going strong. The company sells 4000-5000 products a day and 92% products get delivered within 5 days.

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