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Submitted to Mr. Jitendra Bhandari Ms. Shailaja Manocha
Submitted by Mr. Bhoopendra Tiwari Mr. Chandan Kumar Ms. Nipun Kalia Ms. Pallavi Baranwal Ms. Shivi Shukla Mr. Sudeep Poddar
(13A) (14A) (30A) (31A) (46A) (52A)
E-retailing, most commonly known as e-tailing is nothing but shopping through the Internet and other media forms. There are many things that are common between direct retail stores and online retail stores. Both have the process of billing of the customers and have to maintain a relationship with the suppliers
To evaluate the feasibility of an online retail format. It provides a comparatively low cost alternative channel to the retailers keeping in mind their overall brand and retail strategy. For Whom? * Retailers looking to enhance sales by selling online * Online retailers planning to improve various aspects of their retail offerings * Entrepreneurs venturing into online retail formats How?
The four challenges of E Retailing Every on-line fulfillment operation, large or small, faces four main challenges: Controlling customer data As outsourcing arrangements proliferate and delivery services become more expert in using information technology, retailers risk losing their lock on consumer data. This knowledge, ranging from the socioeconomic status of customers to their buying patterns and preferences, helps intermediaries and shippers reduce costs, but they can also use it to compete with retailers. Integrating on- and off-line orders From an operations perspective, the easiest route for companies with a foot in both the real and the virtual worlds might be to enter electronic orders manually into the off-line order management system. This option makes most sense when the volume of on-line orders is higher; companies must decide how much integration they need. In a totally integrated system, Internet orders would be automatically transmitted through a processing center and transferred to the shippers manifest. Savings up to 30 percent are possible if the cost of long-distance telephone calls, data entry, timeserver operations, and error correction is reduced or eliminated and the cycle time between order and delivery is cut significantly. An integrated system with full ERP (enterprise resource planning) capabilities, for e g, can ensure that surges in demand don’t retard key fulfillment operations such as data entry, inventory, and packing. Delivering the goods cost-effectively At present, every single transaction challenges e-tailors to deliver the goods quickly, cheaply and conveniently. The existing model for home delivery works well for letters and flat packages but not for e-tailing high volumes and wide variety of package shapes and sizes. But this is largely a technical and logistical problem, and it will be possible (though perhaps expensive) to solve it by developing new sorting and scanning equipment and by deploying larger delivery vehicles. Guide to E-Retailing Resources To help e-retailers find the right solutions and service providers to take their Internet retail businesses to the next level, the publishers of Internet Retailer --the most trusted source of journalistic information on webbased retailing--comes the Guide to E-Retailing Resources. The Guide to E-Retailing Resources provides strategic data on all competitors in the following segments of the solutions market: • Affiliate Marketing • Content Management • Customer Service
• Delivery Services • E-Commerce Systems • Email Marketing • Fulfillment Services • Order Management • Payments Processing • Performance Monitoring • Research Studies/Books • Researchers / Consultants • Returns Processing • Search Engine Marketing • Site Search Solutions • Supply Chain Solutions • Web Analytics • Web Design / Hosting Advantages of E-Retailing • Sheer convenience • Wider choice • Better value • Unique gifting opportunity • Saves time and strain • Micro targeting • Mass personalization • Know customer preferences • Integrated source of information.
Company name happycustomer.com Mr. Sudeep Poddar is CEO of the company. Ms. Nipun Kalia is GM of the company.
• Ms. Pallavi Baranwal is Managing Director of the company.
• Mr. Bhoopendra Tiwari is Marketing Director.
Company product name is “Watch”.
Status of the company
Happycustomer.com started their business in March 2009 from the major cities Delhi, Bangalore, Mumbai with products • Wrist watches
(Digital and Analog)
Fancy wall clocks (Digital and Analog) Market status of the company
Our company mainly focusing in India’s market. As a result of market survey we have a large quantity of potential costumers. There is continuous communication with the customer (promotion) to increase the awareness about the company.
We are selling watches of various brands. The customers have a vast range of options available. They can also choose the watches of their favorites brand
Steps of marketing plan
1) Situational Analysis
1) Micro Environment 2) Macro environment
Micro factors are the factors that directly influence our company. The main micro factors are: 1 Intermediaries (Suppliers / Distributors)
2 Customers 3 Competitors (direct / indirect)
Potential entrants Substitutes Industry Buyers
Macro Environment 1)-Demographic Environment
Demography is the study of human population in terms of age, gender, household size, family life cycle, education and population age mix. India is one of the 3rd world countries with a population of 1,147,995,904 (2008 estimate) out of which 50.52% are males and 49.48% are females 2001 census). 65% of the population involves in agriculture. The literacy rate in very low i.e. 61% and population growth rate is 1.578% annually (2008 estimate). Most of the population lives in rural areas but migration rate is high. The per capital income is Rs 29382 per person annually. Mumbai is one of the largest cities of India. The target of our watch is young generation aging from 15-35 but guys are using still watch as well.
In third world countries, a large part of the income of people is spent on the basic needs, so it’s the most sensitive environment where the income level is low, middle class is shrinking, wealth distribution is unequal and saving rate is low. The people are either very rich or very poor. And their consumption behavior varies accordingly. Percent of the population under the poverty line 22% (2006 est.)
In India, there are more opportunities of innovation are available due to the increased awareness of research. However it also depends on the companies that how much they prefer the research and customer feedback. Keeping in view the target market, our company has to look for opportunities rather then wait for them.
The population level is high & crossing 120 million. The growth rate of the customer is expected to have an increasing trend.
5)-Social cultural Environment
Traditionally youngsters have more interest in internet. This means more advertisement of watches (our product) than from older ones age. Internet users are increasing very rapidly in India
6)-Legal and Political Environment
There are no restrictions for the new entrants. Govt. is supporting us showing their commitment towards welcoming new investment.
Factors influencing consumer-buying behavior
There are many factors that influence the consumer buying behavior directly. These factors are: 1. Cultural factors 2. Social factors 3. Personal factors 4. Psychological factors
As far as we are concerned we will target Indian tier-1 market at first. When we talk about watch, many customers are not really satisfied with their existing watches. That’s where we are focusing:
Some people get inspiration from reference groups and they use the same products as their reference groups are using.
Age factor affects the consumer buying behavior. Mostly young generation use watches to improve their outlook. Economic conditions have also a bit effect on consumer buying behavior. People with high income never hesitate to spend the money on taking care of their out look.
www.misterwatchonline.com www.watchorbit.com www.watchsites.net etc…..
2) Marketing Objectives
There are two types of marketing objectives, which are given below 1. Short term objectives 2. Long term objectives
The fundamental objective of happycustomer.com is to approach the customer, create a good image of our product in the mind of customers. Our main concern is profitability.
Long term Objectives:
happycustomer.com’s long-term objectives are • • • • • Retention of customer Capturing high market share Delivering quality service to our customers Capturing the potential market of India Launching innovative changes for our retail
3) Market Segmentation
Our target market geographical region profile is as follows. o World region: o Asia o Country: o India o City: o Tier-1 Demographic factors:
Age: o 15+
• Gender: o Male and female • Family life-cycle: o Young or aged can be single or married • Occupation: o Student o Doctors o Engineers o Computer Eng o Business Man o Accountants • Education: o Bachelors o Masters o PHD
• Social Class: o Upper Lower o Upper Middle o Upper Upper o Middle upper o Middle • Life Style: o Tech-savvy
• Personality: o Expressive o Stylish
• Occasion: o Regular occasion • Benefits: o Profitability o Service • User status: o Medium and heavy
4) Target Market
This website is designed for students, executives, professionals with different occupation, degrees and education levels. We have designed and customized according to different user needs.
For students we have designed our website in such a manner so that they can get the latest and several different model of watches and accomplish their need. Professionals and executives We are providing free delivery and free return to our customers. It is both time and money saving for them. B-to-B
Positioning and Differentiation
Positioning – price positioning (since we are providing service faster and at cheap rate) Differentiation - Service
5) Marketing mix
1. 2. 3. 4. Product Price Place Promotion
PRODUCTS: As we have already discussed about the product. We are selling only watches of different brands through our e-retail (happycustomer.com)
PRICE: PRICING STRATEGY: The pricing strategy portion of the marketing plan involves determining how we will price our service; the price we charge has to be competitive but still allow us to make a reasonable profit. The keyword here is "reasonable"; we can charge any price we want to, but for every product or service there's a limit to how much the consumer is willing to pay. Our pricing strategy needs to take this consumer threshold into account. We set our prices by examining how much it costs us to deliver the product or service and adding a fair price for the benefits that the customer will enjoy. We find it useful to conduct a breakeven analysis. In break even analysis the price is set to break even on the costs of marketing a product or in other words setting a price to make a target profit.
Setting the price
1. Selecting the pricing objective
Survival- we adopt here the cost based pricing which involves adding a markup to the cost of the service
Our customers are price and time sensitive. Customers need the product in less time
3. Estimating cost
Cost incurred on getting space for our website
4. Analyzing competitors cost, prices and offers
We are in B-to-B and B-to-C business our competitors have been mentioned above. We are focusing on customer assessment of unique service. We have reduced various mediatory so the cost incurred is comparatively less than our competitors.
5. Selecting the pricing method
• Markup pricing • Going rate pricing
6.selecting the final price PLACE: It includes marketing channels and channel levels as described below:-
Few producers sell their goods directly to final users. Instead most use intermediaries to bring their products to market. They try to forget a marketing channel or distribution channel, a set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user. There are basically two marketing channels:-
Direct marketing channel:A marketing channel that has no intermediary levels called direct marketing channel.
Indirect marketing channel: Channel containing one or more intermediary levels called indirect marketing channel.
We Implement Direct channels:
We have collaboration with various watch manufacturing companies. So that we directly take the product from the company and deliver to the customer.
Promotion means customer communication that how we can reach to our customer to read and capture his mind. PROMOTION MIX STRETAGES:Marketers can choose from two basic promotion mix strategies:1). Push strategy 2). Pull strategy
PUSH STRATEGY:A promotion strategy that calls for using the sales force and trade promotion to push the product through channels is called push strategy. The producer promotes the product to wholesalers the wholesalers promotes to retailers, and the retailer promotes to consumers. A push strategy involves “pushing” the product through distribution channels to final consumers. The producer directs its marketing activities (primarily personal selling and trade promotion) toward channel members to induce them to carry the product and to promote it to final consumer.
PULL STRATEGY:A promotion strategy that calls for spending a lot on advertising and consumer promotion to build up consumer demand is called pull strategy. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers. Using a pull strategy, the producer directs its marketing activities (primarily advertising and consumer promotion) toward final consumers to induce them to buy the product. If the pull strategy is effective,
consumers will then demand the product from channel members, who will in turn demand from producers. Thus, under a pull strategy, consumer demand “pulls” the product through the channels.
As we are launching our e-retail so we will use the pull strategies to improve the customer demand to have more sales and better supply in all kinds of markets and stores. And for this we have to analyze trends or behaviors of the consumers so that the company’s ability to do business can be improved. So in this section we’ll also give the tools we will be using for this launch. We will also discuss the promotion strategy that we will be using in this launch.
Advertisement Advertisement is the tool to make the product known to the customer, the advertisement should be in such a manner so that it can attract the customer at first glance then their should be image retention in the mind of customer. Continuous advertisement stimulates the customer for the purchasing of the product. We are advertising our e-retail so that customer can know what are we doing actually.
Bibliography Kotler. Philip - Marketing management www.entegratedretail.com www.flore2fashion.com www.economywatch.com www.wikipedia.org
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