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Major Research Project Mohina 2
Major Research Project Mohina 2
ON
Submitted to:-
(2015-2017)
UNDER GUIDENCAE:
SUBMITTED BY:
We make the students of the working of the business world every student of
MASTER OF BUSINESS ADMINDSTRATION (4th Semester) has to undergo
a major research project where he\she experiences many aspects of business
under the supervision of professional managers.
Strongly believe that the knowledge gained from hi experience is more than the
knowledge gained from the theories in the book.
Place : Indore
Mohina Gupta
MBA IV Semester
STUDENT DECLARATION
I Mohina Gupta student of Malwa Institute of Science & Technology, Indore of
MBA (Full time) program has prepared Major research Project report on topic.
A CUSTOMER EXPERIENCE IN FASHION INDUSTRY ON MOBILE
SHOPPING.
Mohina Gupta
MBA IV Semester
ACKNOWLEDGEMENT
The journey towards knowledge is challenging but difficult. It is almost impossible for the
single individual to reach the destination alone. Luckily, the world is full of knowledgeable as
well as co-operative human beings who are always there when one looks for help. The
present study has reached to the final stage due to the contributions and help from a number
of individuals who always stayed with me during the rough patches.
I am highly obliged for her kind guidance. I find no words to express the depth of my
gratitude towards him/her.
I am thankful to his/her for her whole hearted and unwavering support at the crucial parts of
the work.
Apart from this, I would like to thank all the respected professors who trim the silver lamp of
knowledge kept the scared of flame bright towards me. I would also like to thank all the
respondents who helped me whole heartedly by providing me valuable information.
Mohina Gupta
MBA IV Semester
TABLE OF CONTENT
As a means of guiding the literary research and the collection of expert opinion,
Bourdieus Social Capital Theory (1985) says, the profits which accrue from
membership in a group are the basis of the solidarity which makes them possible
(Bourdieu, 1985, p. 249). The need for social networking is based on this social theory
that interactivity and engagement promote social capital, or the building of networks
and relationships. Consumers appreciate the transparency and trust built through
social media, but the fashion industry has yet to construct standards for the uses and
types of social media content and analytics.
As more fashion and public relations professionals move to online sourcing and social
platforms, the increased interactivity in this digital age greatly benefits all participants,
and designers and brand representatives need to embrace social networking strategies
and their related improvements towards reputation, sales, and accessibility.
INTRODUCTION
Social media is an emerging platform that enables brand recognition and popularity
for designers in the fashion industry while contributing to the interactivity of
companies and consumers. Although better adopted by parallel industries, the fashion
industry lacks industry-wide standards regarding the success and use of social media
tools, including Facebook, Twitter, Instagram, and Pinterest. Social media is a public
venue that promotes transparency and feedback. According to Lee (2009), while
fashion brands and retailers are still grappling with social media in terms of
controlling brand perception and establishing metrics to measure its marketing value,
they have used Twitter, Facebook, YouTube and other social communities to develop
digital marketing strategies to drive online sales and retail store traffic.
The fashion industrys adoption of social media has lead to exponential feedback by
its users who suggest and recommend styles and collections that, in turn, make those
designers and brands more popular. However, social media is not yet recognized as an
effective public relations tool or emerging venue for fashion debuts and responses in
the fashion industry as a whole, and the content producers who have taken to social
media have yet to develop strategies equivalent to industry standards. Social media
marketing is the use of social media platforms and websites to promote a product or
service. Most of these social media platforms have their own built-in data analytics
tools, which enable companies to track the progress, success, and engagement of ad
campaigns.
BACKGROUND
The current developments in social media allow consumers to anticipate and follow
upcoming trends and styles before they debut. Traditionally, the fashion industry was
limited in its public relations tools to ones that restricted interaction between designers
and brands, consequentially limiting consumer exposure and knowledge of upcoming
collections, styles, and promotions. There is little published data supporting the use
and growth of social media as a public relations strategy in the fashion industry given
its recent establishment and development as an effective measurement of public image
and reputation.
MYNTRA
History
Established by Mukesh Bansal along with Ashutosh Lawania and Vineet Saxena,
Myntra was in the business of on-demand personalisation of gift items. It mainly
operated on the B2B (business-to-business) model during its initial years. Between
2007 and 2010, the online portal allowed customers to personalize products such as T-
shirts, mugs, mouse pads, calendars, watches, teddy bears, pendants, wine glasses and
jigsaw puzzles.
In 2011, Myntra expanded its catalogue to include fashion and lifestyle products and
moved away from personalisation. Myntra tied up with various popular brands to
retail a wide range of latest merchandise from these brands. Myntra offered products
from 350 Indian and International brands by 2012. Myntra also had casual wear for
men and women from brands. The website saw the launch of Fastrack watches and of
Being Human, the brand.
2014 saw the merging of Myntra with another Indian e-commerce gaint
Flipkart.com in an estimated deal of 2,000 crore (US$300 million), though
nothing in terms of value was officially disclosed by any of the company. Merger was
majorly influenced by two large common shareholders, Tiger Global and Accel
Partners. Myntra still continues to function and operate independently to increase its
market share from 50 to 70 per cent of the market share. In 2014, Myntra's portfolio
included about 1,50,000 products of over 1000 brands ranging from international
brands to designer brands and distribution area of around 9000 pincodes in India
In May 2015, Myntra moved on to app-only business model wherein customers can
only buy and transact in their site through smartphones. The move came after the site
claimed that 95 percent of Internet traffic on their site came mobile and 70 percent
sales were generated through smartphones. The move to app-only generated mixed
reviews and saw 10% dip in sales initially. However, in February 2016, the company
retracted its app-only model in an attempt to win back lost customers. The company
cited that the app-only strategy had backfired and Myntra would relaunch its website.
One of the oft-repeated reasons for Myntra moving to an app-only model is its claim
that 90% of traffic and 70% of sales is already coming from the mobile app and so in a
way, Myntra is following the market. The only problem with this argument, as any
amateur statistician can readily testify, is that percentages is not a zero-sum game.
Traffic from the mobile app might have grown from nearly zero to 70% in the space of
one year but that doesnt necessarily mean that desktop traffic has declined. So while
mobile traffic might be growing at a great clip, it is quite possible that desktop traffic
has also remained stable and while it might not necessarily growing at the same rate, it
might nevertheless be increasing.
While we have no way to know what the absolute growth numbers are for Myntra, it
is not difficult to envisage a scenario where mobile traffic is unlocking new time
online for users rather than folks shifting out from desktops. This is anecdotally true
with a lot of users surfing the web on their mobile while they are in transit or after
work hours but more pointedly, a recent comScore report highlighted how this is
certainly true in the US where mobiles share of traffic is growing but the overall pie
is growing too with mobile use adding to desktop use, not subtracting from it
PRODUCT
Myntra has tied up with top fashion and lifestyle brands in India, such as Nike,
Reebok, Puma, Adidas, Lee, Converse, Lotto, FIFA, John Miller, Indigo Nation etc.
To offer a wide range of current season merchandise from these brands Myntra
currently offers products from more than 200 Indian and international brands. These
include shoes for running, tennis, football, basketball and fitness, along with casual
footwear from world-renowned industry leaders.
There are also casual and dressy footwear for women from Catwalk, Carlton London
and Red Tape to name a few. E-retailing strategies of myntra
SUPPLY CHAIN
Procurement is important for Myntra as they deal in merchandising; they receive the
finished goods from various brands, store them at their various warehouses and then
ship them to the customer when ordered. Outbound logistics is one of the critical
activities for Myntra. They use a third party courier for their outbound logistics. It is
their responsibility to give the demanded product to the third party courier as soon as
possible. They then keep track of the lead time and try to reduce it with collaboration
from the courier company. Marketing and Sales is a core activity of Myntra. Through
proper marketing Myntra is creating awareness among customer & enhancing their
online shopping experience
THE LITERATURE REVIEW
According to Sinclaire (2011), consumers are active creators and monitors in social
networking, and are no longer passive receivers of marketing messages. As a result
of the widespread growth of online social networking and user-generated content sites,
a shift in the balance of power is occurring
Felix, R., Rauschnabel, P.A.; Hinsch, C. (2016). "Elements of Strategic Social
Media Marketing:
A Holistic Framework". Journal of Business Research.
doi:10.1016/j.jbusres.2016.05.001.
Bridgen, (2012) The fashion industrys previous tell style standards of
communication were one-way and limiting to where public relations professionals
could dictate and control their organizational methods conversely, social media
actively enforces monitoring or discussing content with consumers. The discussion of
power in the fashion industry today is directly correlated to the impact one has on
consumers and critics, as opposed to merely selling merchandise or advertising.
According to Binkley (2010), social media has a marketing promise [that] is obvious
for business: it has deep potential as a customer-service channel for retailers. The
immediate reaction and discussion that social media allows and encourages creates a
trusting relationship between consumers and designers. This online networking is
granting the world an unprecedented level of access to fashion gurus.
According to Wilson (2012), to have power in fashion today means to have real
impact, the kind that demonstrably moves an industry, as opposed to merely moving
merchandise, this is achieved through the effective use of social media.
RATIONALE OF STUDY
RATIONALE OF THE STUDY
Because of the largely undocumented connection between social media use and
increased consumer reaction and brand trending, research indicates that there are no
prevalent or established industry standards regarding the use of social media in the
fashion industry. By comparing the impact of social media on fashion public relations
strategy with parallel industries, the question arises of content control and production
of such social media outlets.
The fashion industry incorporates designers, consumers, brands and media, which are
interlinked by social media tools. The use of these outlets is relatively new in the
fashion industry and the investigation of how they are beneficial and whom they reach
exemplifies the exponential exposure social networking provides. The field of public
relations emphasizes reputation and open forums for dialogue.
OBJECTIVES
Research design:
Sample Size: 50
Data collection:
Data analysis:
Pie Chart, Bar Graph, will be used to analyze interpret and present the data.
DATA ANALYSIS
1. Age basis distribution of respondents.
Response
10%
18 to 25 years old
40% 26 to 35 years old
36 to 45 years old
50% 46 to 55 years old
INTERPRETATION
Response
35%
Male
Female
65%
INTERPRETATION
Response
10%
Primary Education
40% 20% Secondary Education
University Education
Master or PHD Education
30%
INTERPRETATION
Out of 50 respondents 10% had primary education, 20% had secondary education,
30% had university education while 40% were doing master degree.
4. Are you aware about social media marketing?
Aware
36%
Yes
No
64%
INTERPRETATION
Out of 50 respondents 64% were aware while 36% respondents were not aware about
social media marketing.
5. Which social site attract you most?
Response
4%
16% Facebook
Instagram
44%
10% Twitter
Youtube
Any other
26%
INTERPRETATION
Out of 50 respondents 44% said Facebook, 26% said Instagram, 10% said Twitter
while 16% said Youtube and 4% said other when they asked about which social site
attract you most.
6. Which of the following social media is best in marketing in Fashion Industry?
Response
4%
16% Facebook
Instagram
44%
10% Twitter
Youtube
Any other
26%
INTERPRETATION
Out of 50 respondents 44% said Facebook, 26% said Instagram, 10% said Twitter
while 16% said Youtube and 4% said other when they asked which of the following
social media is best in marketing in Fashion Industry.
7. Social media marketing place vital role in Fashion industry to attract the customer
Response
Out of 50 respondents 30% respondents were strongly agree, 50% were agree, 10%
were neutral while 10% were disagree with statement that social media marketing
place vital role in Fashion industry to attract the customer.
Response
10%
20%
10% Very Important
Important
Neutral
Not Important
60%
INTERPRETATION
Out of 50 respondents 20% respondents said very important, 60% said important
while 10% said neutral and 10% said not important when they asked what your
opinion is regarding social media marketing in fashion industry.
9. How it is easy for customer to find relevant product through the social media
marketing
10%
30% Very easy
Easy
Not so easy
40%
Not easy
20%
INTERPRETATION
Out of 50 respondents 10% said very easy 40% said easy while 20% said not so easy
and 30% said not easy when they asked about how it is easy for customer to find
relevant product through the social media marketing.
10. What are the mean do you mostly find in social media marketing
Response
6% 2%
20% Internet
Television
Radio
Other
72%
INTERPRETATION
Out of 50 respondents 72% said internet, 20% said television while 6% said radio and
rest respondents said other when they asked about what are the mean do you mostly
find in social media marketing.
11. Customer get more attract by social media marketing then other mean of
marketing
Response No. of respondents
Strongly Agree 10
Agree 25
Neutral 10
Disagree 05
Strongly Disagree 00
Response
INTERPRETATION
Out of 50 respondents 20% respondents were strongly agree, 50% were agree, 20%
were neutral while 10% were disagree with statement that customer get more attract
by social media marketing then other mean of marketing.
FINDINGS
Out of 50 respondents 40 % were between 18 to 25 years, 50% were between
26 to 35 years while 10% were between 36 to 45 years.
Out of 50 respondents 35% were male while 65% were females.
Out of 50 respondents 10% had primary education, 20% had secondary
education, 30% had university education while 40% were doing master degree.
Out of 50 respondents 64% were aware while 36% respondents were not aware
about social media marketing.
Out of 50 respondents 44% said Facebook, 26% said Instagram, 10% said
Twitter while 16% said Youtube and 4% said other when they asked about
which social site attract you most.
Out of 50 respondents 44% said Facebook, 26% said Instagram, 10% said
Twitter while 16% said Youtube and 4% said other when they asked which of
the following social media is best in marketing in Fashion Industry.
Out of 50 respondents 30% respondents were strongly agree, 50% were agree,
10% were neutral while 10% were disagree with statement that social media
marketing place vital role in Fashion industry to attract the customer.
Out of 50 respondents 20% respondents said very important, 60% said
important while 10% said neutral and 10% said not important when they asked
what your opinion is regarding social media marketing in fashion industry.
Out of 50 respondents 10% said very easy 40% said easy while 20% said not so
easy and 30% said not easy when they asked about how it is easy for customer
to find relevant product through the social media marketing.
Out of 50 respondents 72% said internet, 20% said television while 6% said
radio and rest respondents said other when they asked about what are the mean
do you mostly find in social media marketing.
Out of 50 respondents 20% respondents were strongly agree, 50% were agree,
20% were neutral while 10% were disagree with statement that customer get
more attract by social media marketing then other mean of marketing.
CONCLUSIONS
The paper focused on a particular challenge faced by many marketers of luxury brands
how to attract new customers in a shrinking marketplace. This paper first outlined
the relationship between luxury, fashion, and social media. Next, the paper addressed
how technology development benefits the world of fashion by attracting customers to
interact with the brands. After, a multitude of luxury business models were identified:
the luxury business model, the fashion business model, and the premium (or super)
business model. Despite the value in these business models, this paper pointed to their
limitation in failing to address social media as key in connecting and building strong
relationships with customers, and increasing social engagement to drive growth. New
innovative business models must incorporate social media to allow firms to build
strong customer relationships and encourage loyalty, and interact with customers
through new channels, formats, or revenue models. Given that social media has a
strong impact among media professionals, and the fact that their views spread on line,
offering opportunities for bloggers to formulate second tier expert views of fashion, it
is essential that we develop a deeper understanding of this influence to improve
fashion business models.
REFERENCE
Bridgen, L. (2012, June). Emotional Labour and the Pursuit of the Personal Brand:
Public Relations Practitioners Use of Social Media. Journal of Media Practice. 12(1),
61-76.
Binkley C. (2010, March 25). Fashion Pros Share Sometimes Too Much. Wall
Street Journal - Eastern Edition. D9. Retrieved
from:
http://online.wsj.com/article/SB10001424052748704896104575140361533549880.ht
ml
Noricks, C. (2010, September 14). Advanced social media for fashion brands and
retailers. Retrieved from http://www.prcouture.com/2010/09/14/advanced-social-
media-for-fashion-brands-retailers/
Prabhakar, H. (2010, February 13). How the fashion industry is embracing social
media. Retrieved from http://mashable.com/2010/02/13/fashion-industry-social-
media/
Lee, M. W. (2009, December 21). 5 Ways social media changed fashion in 2009.
Retrieved from http://mashable.com/2009/12/21/social-media-fashion/
Wilson E, Horyn, C. (2012, September 6) The New Order. New York Times, 1.
Retrieved from:
http://www.nytimes.com/interactive/2012/09/05/fashion/newyorkfashio nweek
-theneworder.html