PEPPERFRY – MARKETING TO

MANAGE CUSTOMER
EXPERIENCE

Submitted To:
Prof. Rambalak Yadav

Submitted By:
Prateek Gupta 19A3HP662
Nishant Kumar 19A3HP630
Shreshth Saxena 19A3HP602
Rishabh Das 19A1HP014
Digbijay Singh 19A1HP015
Aman Kumar Srivastava 19A1HP016
Sameer Gupta 19A2HP446
 SUMMARY
Pepperfry started as an online furniture store, where customers could search through catalogs and
select the furniture. As Pepperfry was the first to enter the online furniture market, it covered 50%
of the market share. It raised a capital of $160 million in September 2016. Customers took time to
purchase high-priced items and explore all the options before buying an item. Pepperfry saw
resistance in customers to buy furniture online by just visiting the online store. Pepperfry followed
a hybrid model, and to provide customers the in-hand experience, they devised "Studio Pepperfry."
They had interior designers instead of the salesperson at the stores to suggest and help the
customers choose the furniture by understanding their needs. They collaborated with Homestop
and came up with "Pepperfry Live" as both share some commonalities. The company followed
innovative ways of marketing. They followed 360-degree marketing to show the disadvantages
and discomfort when the furniture is made at home and marketing at airport lounges. The company
saw many challenges while catering to the Indian audience. Customers had security issues while
making financial transactions online. The internet quality was not good, and only 18% of the
population had access to the internet. Most of the market's online players were facing large
distribution issues, but Pepperfry came up with its own unique model that helped them provide
home delivery of the large items. The road to the future includes improving the customer
experience and coming up with effective ways to satisfy customer needs.
Q1. Analyze the Pepperfry brand and the reason for its success in the initial years?
Pepperfry was the first company to sell furniture online in India. It functioned as a "Managed
Market" meaning it connected customers with craftsmen and marketers who wanted to showcase
their talent and needed a platform. The company was started in 2012. Selling furniture online was
a relatively new concept in the Indian context. So attracting people from the beginning was hard
work. But thanks to marketing initiatives launched by the company such as-

360 degree marketing - they were targeted at clients who had previously hired a carpenter to
make furniture at home. The campaign highlighted on the negatives of making home furniture
such as the noise caused during the program, and the dust from the dangerous saws on young
children. There was pressure on these customers and he insisted that they buy from Pepperfry. So
that the problem is in the company and customers can enjoy the process.

Marketing at airports - While we travel, most of us have free time so Pepperfry vendors use this
fact. And at airports in major cities they display the product experience offered by the brand.
People are really impressed by this idea and visit the site after arriving in their hometown. Lack of
time, both co-workers were one of the biggest reasons customers buy furniture online.

The reason for the success of the product in the early years -
The launch of "Studio Pepperfry" was a major factor in the success of the product. Provided
experience to potential customers regarding the wide range, design and layout of furniture
available online. Expert advice was also given to customers regarding the interior design and
selection of furniture not by a general salesman but by professional interior designers. These
studios are open to all major cities in Tier 1. Every day these studios have 35-40 people visiting
the store and 30 to 40 percent are used to convert Pepperfry customers. Marketing programs
adopted by the company such as 360 degree advertising and enabling them to experience the
Pepperfry experience in the airport rest areas. Hiring interior designers who specialize in studios
rather than the average sales person. Providing consumers with high quality experience that has
led to word of mouth for the product. Technology is being used to make virtual tours of its studios
available in cities where studios did not exist. Timely and safe consumer furniture has persuaded
them to become repeat customers.
Q2. Discuss the Customer Decision Making Process for Online Retailing.
Indian customers were reluctant to buy from online sites. They always wanted to see and feel the
tangible physical presence. These challenges maneuvered Pepperfry to move from an online to
offline hybrid business model which became the foundation for the Pepperfry Studio Experience.
On average the potential customers explored the product portfolio 15-20 times before making the
purchase decision. This repetitive interaction affected customer experience and was defined as a
subjective response to both direct and indirect encounters of the firm. The interaction could place
at any stage which included of searching, buying or consuming stages. Consumers usually
indulged in deep searching after enquiring with family and friends.
Online Transactions among Indians increased as a result of higher spending capacity and rapid
internet penetration. Shopping Convenience and free home delivery appeared to be key drivers for
online retailing among the consumers. Customers would compare prices and then look for final
discounts. Convenience was a key driver among online customers and internet connectivity and
speed played a vital role in final conversion.
Q3. Considering consumer decision making process suggest how to improve customer
experience at each stage.
The Model EBG incorporates the decision-making process and describes four different categories.
Since the customer experience management feature is a standard thread running at each stage of
the model, let’s point out how Pepperfry can add value to each category.
Details Input Stage
At this stage the customer has a certain idea in his mind that he needs to buy furniture. While the
customer is unsure of the decision, the customer often has access to online and offline sources for
information about the products. Identify sources and the role of influencers can be very important.
It is therefore important that Pepperfry be where the customer is. Targeted online advertising
campaigns can help catch a customer before they move on. If Pepperfry is able to build a
connection here, a lot of things are made easier right before the actual sale.
Data Processing Information
Capturing customer attention is not enough. Understanding their needs and giving them with the
information and knowledge needed in the next available form. Pepperfry Studios is an ideal section
to help the customer find furniture and gain insight. This is because the customer is open to
donations and can carefully analyze the information collected in the previous section. The use of
interactive 3-D models and 360 degree viewing on the website can also help with the information.
Decision-Making Process
The phase of the decision-making process should be made up of a cycle of events such as: problem
identification, finding alternatives, alternative testing, purchasing and results. Now each of these
categories can be very useful if Pepperfry can catch a customer with these. In today's situation,
customers choose a one-stop solution as they save time. Pepperfry should aim to be a one-stop
solution for furniture needs for the consumer by giving them not only product details but also
guidance on what to buy, how to buy, etc.
Variables that influence the Decision Process
It involves understanding the factors that control customer purchasing decisions. These items can
be a person or external environment related for example lifestyle, personality, social and cultural
factors, identification groups, family etc. The most effective way to understand the factors that
govern the purchase decision is to obtain and analyze data about the customer’s journey. With
online use, it is easy to track a customer’s trip, his or her preferences, the products he or she wants
and search online. Pepperfry should go into data acquisition and obtain important information
about consumer Behaviour in it.

Q4. Draw a customer Journey map of Pepperfry, clearly mention the various pain points &
how Pepperfry has a deal with it in recent times.

The Customer Journey map for Pepperfry is shown below –

 Awareness
Steps - Customer identifies that there is a need for the product.
Touchpoints – 360-degree Advertisements, marketing at Airport lounges, social media,
blogs.
 Consideration
Steps – Customer goes online to search for products on the website that could satisfy the
need. The customer compares the prices, features of the products. Pepperfry works on the
Omni model, so the customer can go to Pepperfry studio to see the product physically.
Customers can get suggestions from the interior designer present in the studio. Customers
can visit the studio through virtual reality tours without actually visiting the store.
Touchpoints – Landing page, website, app, Pepperfry studio, the salesman (specifically an
interior designer), technology (virtual reality tours), Pepperfry Live
 Acquisition
Steps – After verifying the product physically in the studio, the customer can place an order
online on the app and make the payment.
Touchpoints – User experience, personalization
 Service
Steps – Customers get the product delivered at home.
Touchpoints – delivery network, Last-mile delivery