SCHOOL OF INFORMATION AND TECHNOLOGY (SITE)

M.TECH INTEGRATED SOFTWARE ENGINEERING

SWE-1014- ENTERPRISE RESOURCE PLANNING
DIGITAL ASSIGNMENT – 1
TOPIC : “HYPERMARKET SYSTEM”
ENTERPRISE CHOSEN : “OLX”

TEAM MEMBERS:

(MARKETING & SALES) 18MIS0133 – M.MADHUMITHA

(ACCOUNTING & FINANCE) 18MIS0246 - R.SNEHAVILASHINI

FACULTY :

PROF: KRITHIKA. L.B

A.IDENTIFY THE ENTERPRISE AND GIVE SNAPSHOT OF THE COMPANY WEBSITES AND LINKS:

ENTERPRISE : “OLX”

SNAPSHOTS AND LINKS:

HOME PAGE:
BLOG:

SOCIAL MEDIA STATISTICS :

DESCRIPTION OF A ORODUCT:

LINLS :

www.owler.com
www.similarweb.com
www.mbaskool.com
www.cleverism.com
www.margcompusoft.com
B. LIST OUT THE FOLLOWING FOR THE CHOSEN ENTERPRISE:

1. ORIGIN OF THE ENTERPRISE:

OLX was founded in 2006 by Fabrice Grinda (“Grinda”), Alec Oxenford (“Oxenford”), and Jordi Castello
(“Castello”). The founders sought to establish an online platform through which general consumers are
able to sell unwanted items at no cost to themselves. Grinda noticed in particular that larger online
marketplaces such as eBay and Craigslist had extensive operations across developed markets but had
shown little interest in establishing a presence in emerging markets, particularly across Latin American,
Eastern Europe, and South East Asia.

Grinda, Oxenford, and Castello subsequently developed the OLX platform to cater specifically to
consumers in emerging markets. They pinpointed certain aspects that would be key to the platform,
including: social integration with Facebook and Twitter and the ability to see pictures and videos; mobile
access, with smartphones the principal link to the internet for consumers in emerging markets; a free
service, especially in countries where credit card usage is not high. The team also focused on providing a
high-quality and reliable service.

Since its launch, OLX has expanded significantly, and now has operations in around 40 countries
worldwide, including in markets across Latin America, Asia Pacific, Africa, and Eastern Europe that are
often not as well-served by large tech and online companies. The Company attracts more than 200 million
active users per month, generating 1.7 billion monthly visits and 35 billion monthly page views.

OLX’s success across emerging markets – particularly Brazil, India and Poland – saw the company gain
interest from a number of investors, with the Company raising more than $28 million in five rounds of
funding. OLX was ultimately acquired in 2010 by internet and media group Naspers, and continues to
function as a subsidiary of the company.

2. THE TYPE OF BUSINESS AND DOMAIN:

OLX provides an accessible platform for general consumers to buy and sell items and services, and
organise community activities. The Company’s online platform is reported to attract more than 200 million
active users each month.

A recent report suggested that the majority of the platform’s users are male, around 65%. As an online
service it is utilised primarily by a younger, more tech-savvy audience, with the most significant portion of
its traffic coming from 25 to 34 year-olds, followed by users falling between the ages of 18 and 24. The
Platform, however, is reported also to generate traffic from users above the 50 to 55 age range, owing the
platform’s simplicity of use.

Contrary to other tech companies, OLX does not seek to compete is large, established markets, instead
seeking to exploit opportunities in emerging markets. The Company serves users locally in more than 40
countries worldwide, with its largest markets being India, Brazil, and Poland, which together account for
around 50% of users. OLX also operates across other emerging markets in Africa, Latin America, Asia
Pacific, and Europe.

3. CURRENT MARKET AND CHALLENGES FACED:

OLX provides value to its customers in the following ways:

 The quality and reliability of its platform, with the Company operating an efficient and high-quality
platform, providing a reliable and effective channel for consumers to interact with one another;

 Its accessibility and ease of use, with the Company providing a user friendly and flexible experience
that can be access either through mobile and desktop browsers or via the Company’s mobile
applications
 Its broad range of product categories, with the Company enabling consumers to sell a range of
products, including electronics, clothes, furniture, cars, and home appliances;

 Its expertise and experience, with the Company employing specialist technical personnel across its
business, as well as an experienced team of industry executives; and

 Its international reach, with the Company serving consumers across 40 countries worldwide, in
particular serving customers in emerging markets that are not typically served by growing online
businesses.

4. COMPETITORS:

OLX Competition

Below are the top 5 OLX competitors:

1. Quikr
Competitors 2. eBay
3. Flipkart
4. Amazon
5. Snapdeal
5. TECHNOLOGIES AND IMPLEMENTATION STRATEGY ADOPTED:
Marketing Mix of OLX analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion)
and explains the OLX marketing strategy. The article elaborates the pricing, advertising & distribution
strategies used by the company.

Product:
The product strategy and mix in OLX marketing strategy can be explained as follows:
OLX is a leading online platform which is used a classified advertisement website for buying-selling of
pre-owned goods. OLX provides a horizontal online classifieds platform as its marketing mix product
offering for sellers and buyers to interact with one another and do business. OLX is different from an
online marketplace like Flipkart or Amazon as it follows only C2C model. On this website only the end
consumer can sell used products or rent out accommodations to another end consumer. OLX mostly have
individuals listing their items on the website. So, in essence, they have two kinds of customers- the sellers
and the buyers and they have to attract both of them to increase its business and revenues. For the classified
ads, it provides the service of featured ads and free ads. Featured ads have two offerings- 7-day featured
ads and 30-day featured ads. Apart from the service of online classifieds, there are various product
categories which can be sold and bought on OLX - Cars, Real Estate, Mobiles, Electronics & Appliances,
Jobs, Bikes, Furniture, Books, Sports & Hobbies, Fashion, Pets, Services. The most revenue generating
category for OLX is used mobile phones and they are the biggest marketplace for this category in the
country. The next best categories are used cars and bikes respectively in which about 80 to 90% listings are
from individuals. Other important categories are- electronics, furniture and other household categories.

Price:
Below is the pricing strategy in OLX marketing strategy:
OLX follows a free-mium model for its classifieds ads service. Majority of the people don’t pay for
listings, but those who want their ads to be highlighted and listed at the top in search results need to pay
minimal charges for their listings to OLX. Hence, the pricing in its marketing mix is based on usage of
premium services. Featured ads have 10 times more replies than free ads. Ads for different product
categories attract different prices in different regions. Taking a typical example, a featured ad for 30 days
for cars is priced at Rs.1599, while for real estate it is priced at Rs.999. Electronic and appliances, bikes,
furniture, fashion, pet, books sports and hobbies are all charged at Rs.499 for 30 day featured ad. For Jobs
and Services on the other hand, OLX charges Rs.799 for the seller to place it as a featured ad. But its best
category, used mobile phones is priced at just Rs.239 for a 30-day featured ad. 7-day featured ads are
priced significantly lower than the 30-day ads. The ads are also available in packages: Lite saver with a
pack of 3 Ads, Pro-Saver with 6 Ads, and Super Saver with 10 Ads. Another source of revenue for OLX is
the advertisements placed by Google AdSense and other companies.

Place:
Following is the distribution strategy of OLX:
OLX is present on both website and as a mobile app on mobile platform. All of the products are available
on both platforms, but they focus more on the mobile apps as more than 62% of the traffic comes from
apps. OLX is present in 45 countries across the world and is the number one shopping app in 22 of them.
Its major markets include India, Brazil, Pakistan, Poland, Portugal and Ukraine. It has 25 offices
worldwide. In India, it is the market leader in C2C online trade industry with 80% market share. The
country is a difficult market for OLX because they try to focus on almost 1,000 cities and reach every
customer.
Promotion:
The promotional and advertising strategy in the OLX marketing strategy is as follows:
OLX has the strategy of gaining first movers advantage in most of the developing countries as the reselling
business is not well established like in the western countries. Therefore, more often than not, OLX has to
create a market and not acquire it from existing players. Therefore, their promotional campaigns focus on
Generic-problem recognition and brand communications reflect this strategy. Since the culture of buying
online is already taking root in India thanks to a boom of ecommerce websites, but convincing people to
sell their used/new products online is a bit of a challenge. Keeping this in view, all of the promotional
campaigns of OLX are targeted at sellers. Over the past few years, many interesting campaigns were
launched by OLX, but the catchiest of them all was “OLX pe bech de” (Sell on OLX). Other famous
campaigns by the company are- “Ghar bethe Kamao” (Earn sitting at home), “OLX kr do” (Do OLX) and
“OLX it”. They collaborated with NDTV and came out with a puppet show ‘Bechshala’ in educating
people about how to place an ad on its website. Apart from TV, the company is also actively pursuing
online and social media promotions for OLX.

6. ROLE OF ERP:
ERP helps a Hypermarket business owner make customer's experience better. ERP tracks the customer
purchase history and this way you know who your loyal customers are hence you can allow them to collect
points for their purchases and then let them redeem it with whichever purchase they want in the future.

Management is a backbone of the business, having a strong management helps in making a business stand
through sands of time hence it is important to focus on a good management that will run and improve your
business.

ERP is a complete package that comes with many modules which take care of every department and also it
is an intelligent software that allows you to take better decisions in the future for the betterment of your
business. that comes with many modules which take care of every department and also it is an intelligent
software that allows you to take better decisions in the future for the betterment of your business.

Hypermarket like every other business has several departments and just one accounting software or billing
software is never going to be enough. To improve the entire business a supermarket requires a complete
solution so every department can be under a proper management.

1. Automates the business:

ERP software helps in automating your business so the functions in the business can be carried out
automatically which also gives rise to other advantages. Automating your business saves times and allows
you to focus on other important work that helps your business rather than putting all your focus only on
managing every department.

2. Inventory management:

Inventory is the main area of business production or the staging area for a supermarket. It is a usual thing to
come across the news “out of stock” in any kind of market or showrooms, etc. An unwanted surprise is
never pleasing especially if a customer comes to a supermarket to get one particular item. It is not their loss
as they will find the same item elsewhere and if this occurs too often your customers will stop expecting
and move on to other options.

An inventory software keeps a check of your inventory level so you never go out of stock all of a sudden it
allows you to select a warning level and alerts you when it reaches the minimum level so you can restock
your warehouse beforehand. It tracks what is going out and what is coming in hence you can keep a track
of products in demand and stagnant products leading to less expenditure. It also organizes and optimizes
the warehouse.
3. Better customer experience:

All in all, ERP helps a supermarket business owner make customer’s experience better. ERP tracks the
customer purchase history and this way you know who your loyal customers are hence you can allow them
to collect points for their purchases and then let them redeem it with whichever purchase they want in the
future. The customers do not have to wait for long to get their items billed as ERP contains a billing
module saving you from angry customers and stressed out employees.

An ERP also comes with facilities like bulk SMS and email, this way you can keep your customers updated
about the upcoming offers, sales, new products,etc.

4. Better decision-making:

ERP is an intelligent software that tracks everything and keeps all the details in an account. It shows the
profit meter and lets you compare your profit history and much more. Collecting all the data from daily
sales and every department it helps you make better decisions. For example, it allows you to see which
product is bringing in more profit, who are your highest value customers, best sales executives, etc,
graphically hence you can take more appropriate decisions in the future about your business.

5. Complete Package:

Who is not up for a complete package of software that has all the features you need to manage and improve
the entire business. ERP is a complete package of several modules that takes care of every department and
removes communication gaps between the departments so all of them can cooperate, get updates in real
time and work faster. Along with all the features that handle the business from every corner, it reduces the
workload and boosts the workflow leading to improvement and expanding of the business.