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MARKETING CASE STUDY

Dharmendra Singh
Arvind Topno
Vishnu Priya
Shalini Gupta
Manjusha Surampalli
Biplab Das
Durga Prakash
Vaibhav Punetha

(14HS60001)
(14HS60002)
(14HS60004)
(14HS60005)
(14HS60006)
(14HS60008)
(14HS60009)
(14HS60010)

The beginning of a revolution!

AdMart - A direct marketing company launched by


Jimmy Lee Chee-ying , founder of Giordano and Next
Media Group, in Hong Kong in the year 1999.

Ventured into cyber-shopping, offering groceries and


electronic products via:
Internet
Telephone
Fax

Innovative marketing strategy drastically changing the


shopping experience leading to a crazy price war.

Locking Horns with the Giants!

AdMart
VS

Wellcome
&
Park N Shop

Strengths

First mover advantage.


Huge advertising muscle.
Price relief to customers.
Convenient channels for order
processing.
Extensive delivery network.
Inexpensive virtual store.
Jimmy Lais proven success.
Business flexibility.
Deep pockets.

Weaknesses

Poor pricing strategy.


Low quality imported
products.
Compromised service quality.
Inefficient use of labor.
Complex distribution system.
Inadequate market research.
Incoherent PR campaign.
Limited Product Assortment
< 9000 SKUs.
No relationship-building with
suppliers.
Unprofitable small orders.

Opportunities

Rising tide of Internet users.


> 2 mn
Inefficiency of traditional
shopping experience.
Limited competition in ecommerce.
Time constraints of customer.
Customers limitations to
transport bulky items.
Launch of HKs first virtual
credit card.
Scope of product
diversification.

Threats

High entry barrier from competitors


Duopoly in retail market.
High bargaining and purchasing power
Strong personal ties with suppliers
Deep pockets
Aggressive marketing strategies

Unpredictable consumer behavior


Apprehensions over online shopping.
Loyalty towards existing retailers.
Passion for physical shopping and
bargaining.

Advantage to small retailers


Ability to offer small quantity of items
Ability to offer products not found in
supermarkets.

Price restrictions by suppliers.


Competition from wet markets.

Key takeaways for other B2C


marketers in Asia

Extensive market research to understand customers needs and preferences.


Choosing the right marketing mix
Emphasis on delivering value - product and service quality.
Develop sound pricing strategy.
Coherent public relations campaign.
Maintain appropriate inventory levels.

Segment the market and target profitable consumers.


Good terms with suppliers to improve B2B marketing.
Aligning core competency with logistics & operations.
Optimum utilization of human resources.
Risk diversification.
Imitating competition may not work.

I started adMart because


I got caught up in the
Internet hyperbole. It was
a mistake, and a lesson
- Jimmy Lai Chee-ying