Business Foundations

Capstone
Framework for Analysis
Snapdeal
Nimrat Grewal
O4/02/2020
Situational Analysis
Product or Service–
Describe the product or service
you are developing a strategy for

The service for which we aim to construct and develop our strategy
for consists in the introduction and subsequent development of a
loyalty program to the Indian market.

This program will mainly be focused towards retention of consumers

by prioritizing existing and valuable customers as well as acquiring
new customers.

The service will be provided via snapdeal.com as well as through its

application that will be offered through a mobile, web, computer
and gaming console interface.

We are looking to market the program using email marketing efforts,

customer service help desk, live chat and remarketing efforts. The
program will offer rewards to consumers for their purchases over
the long run. These rewards will be aligned with consumer’s
interests based upon their past purchases, their preferences, etc.
The program will offer additional discounts on such items and also
enable consumers to earn extra credits to avail discounts on other
offers.
Product or Service–
Describe the product or service
you are developing a strategy for

The current offering of such programs is still niche due to

various constraints such as lack of awareness, limited number
of plastic money holders, online security, etc. Despite these
constraints, India is still a very attractive market for e-
commerce giants such as Snapdeal.

India ranks 3rd among the most attractive investment

destinations for technology transactions in the world. In
addition, the Indian government is now placing focus to make
its citizens technology centric.

Point to point focus (PPP) has also been helping to promote the
exchange of scientific knowledge as well as R&D. According to
the data from the World Bank, India stands 6th in the world’s
largest consumer markets and is one of the world’s fastest
growing e-commerce markets.
External Environment –
Relevant economic, social,
political, legal, technological
trends
ECONOMIC PERSPECTIVE-
India’s current population stands at 1.3 billion with a
GDP growth rate of 7.1% in the year 2018 followed by
4.5% in 2019 resulting in the ongoing development into
an open market economy.
From the year 2014 to 2018, India was the world’s
fastest growing economy.
According to the IMF, India ranked 142nd by nominal
GDP on a per capita basis.
India stands 6th in the world’s largest consumer markets
according to data from the World Bank.
This accelerated economic growth can be attributed to
economic liberalization measures including industrial
deregulation, privatization of state-owned enterprises
and reduced controls on foreign trade and investment.
Nearly 60% of GDP is driven by domestic private
consumption.
India is the world’s 3rd largest economy in purchasing
parity terms.
GDP (PPP) is valued at $9.5 trillion.
India also holds $672 billion worth of retail market
making it one of the world’s fastest growing e-commerce
markets. The market is expected to reach $71.9 billion
by 2022.
External Environment –
Relevant economic, social,
political, legal, technological
trends
SOCIAL PERSPECTIVE-
Despite being the world’s 3rd largest economy
(in PPP), a few issues hinder growth and must be
taken into consideration to improve the
economic growth of society. These include
corruption, illiteracy ( 73.2% literacy rate),
education system (places more emphasis on
theoretical rather than practical knowledge),
sanitation (700 million people do not have
access to toilets resulting in diseases such as
cholera and diarrhoea) , heath care system (lack
of resources in rural India is a major concern),
women safety, infrastructure, unemployment
(6.1% unemployment rate possibly caused due
to demonetization of large banknotes).
GDP as of 2018 was $2726.32 billion (all time
high), representing 4.40% of the world economy.
External Environment –
Relevant economic, social,
political, legal, technological
trends
POLITICAL PERSPECTIVE-
Indian political system follows the dual polity system that consists
of the central authority at the center and states at the periphery.
The Indian constitution defines the organizational powers of both
the central and state governments.
India faces a few political issues including social issues such as lack
of homogeneity that causes division between different sections of
people based on religion, region, language, caste and ethnicity,
economic issues such as poverty and unemployment and issues
related to law and order such as religious and caste related
violence.

LEGAL PERSPECTIVE-
India has a common law legal system whose infrastructure is
influenced by the British colonial rule. Apart from this influence,
personal laws are frequently based on Hindu as well as Islamic law.
The judiciary is independent in structure.
To enter the Indian market, a foreign investor can either set up a
company or limited liability partnership or via foreign direct
investment (FDI) policy.
In addition, the government has taken many initiatives to enhance
ease of doing business in India.
External Environment –
Relevant economic, social,
political, legal, technological
trends

TECHNOLOGICAL
PERSPECTIVE-
India ranks 3rd among the most attractive
investment destinations for technology
transactions in the world. India's middle class
is forecasted to expand by 1.4% a year
outpacing China, Mexico and Brazil, making it
one of the most attractive consumer markets.
India is also the top exporter of IT products
and has a fast-growing contract research
segment.
External Environment – 350
Nature and extent of demand
(demand elasticity & size of the 300

market) 250

200
E-commerce market size in the year 2017 was 39
billion, followed in 50 billion in 2018. The size is 150
anticipated to reach 188 billion by the year 2025.
Growing digital populace, expanding beyond India’s 100
urban centers, has spent an average of $224 per
user in 2017. Growth of smartphone users is directly 50
proportional to growth in the e-commerce sector.
Share of internet users who are digital buyers- 0
52.3% in 2017 72.9% expected by 2022. (suggesting 2016 2017 2018 2019 2020
that almost 71% of internet users will have bought
products online)
Number of digital buyers- 180.1 million in 2017
330 million in 2020 (contributed majorly from tier Digital Buyers
Digital buyers (in millions) from 2016, with forecasts until 2020
two and lower cities probably due to lower service
costs and expansion of e-commerce market)
The sector is driven by personalized ads, attractive
discounts, quick delivery and return infrastructure
and a high smartphone penetration rate.
External Environment – 250

Nature and extent of demand

(demand elasticity & size of the 200

market)
150
The e-commerce market was valued at $45.5 billion and is
expected to reach $198 billion by 2026. (CAGR of 20.18%)
Total retail e-commerce revenue is expected to grow to
$66.2 billion in 2024. 100
India has the 2nd largest online market globally with
around 560 million internet users that are expected to
increase over 660 million by 2023. 50
One is every 3 Indians is estimated to take part in online
shopping and hence, the benefits in this sector are likely to
increase 3 –fold.
0
The e-commerce industry witnessed 21 private equity and 2017 2018 2020 2025 2027
venture capital deals worth $2.1 billion in 2017 and 40
deals worth $1,129 million in the first half of 2018. Value in US billion dollars

The retail ecosystem along with the comfort of at-home Market size of e-commerce industry from 2014 to 2017,
with forecasts until 2027
shopping has changed the game for the e-commerce
sector.

This makes India one of the most attractive retail markets

in the world.
External Environment –
Industry structure
2024

(entry/exit barriers) 2023

2022
STATE OF INDUSTRY-
India’s retail e-commerce CAGR is projected to reach 2021
23% from the year 2016 to 2021. Approximately 329.1
million people are projected to purchase goods and
services online by 2020, meaning that around 70% of 2020
Indians will have bought products online by then)
Majority of digital shoppers are male (reflecting 2019
revenue)
Retail e-commerce sales in 2019 was $32.3 billion. 2018
(estimated retail e-commerce sales growth in 2019-
24.1%) Sales are forecast to increase to $45 billion in
2021. 2017
Amazon was the leading online retailer in 2016 with net
e-commerce sales of $437.7 billion, followed by Flipkart 0 10 20 30 40 50 60 70
and Snapdeal.
With an increase in urbanization and a massive growth Revenue in US billion dollars
in digital population, people’s lifestyles are becoming Retail e-commerce revenue forecast from 2017 to 2024
unfavorable towards shopping at a physical store. A
tremendous increase in India’s digital payments sector
acts as an accelerator for carrying out activities online
which in large part includes online shopping.
External Environment –
Industry structure
(entry/exit barriers)
Leading Online Stores in India in 2017, ranked by net e-
commerce sales-
1. Amazon
2. Flipkart
3. Myntra 600
4. Jabong 500
5. Snapdeal 400
300
Electronics is currently the largest contributor to online 200
retail sales with a 48% share, followed by apparel at
29%. 100

Various government initiatives such as Digital India, 0

Amazon.in Flipkart.com Myntra.com Jabong.com Snapdeal.com
Make in India, Start-up India, Skill India and Innovation
Fund are also likely to promote e-commerce growth.
In the Union Budget of 2018-2019, the government has
allocated $1.24 billion to the BharatNet project, to Yearly web sales as of 2017 in US million dollars
provide broadband services to 150,000 gram Leading online stores (in 2017), ranked by net e-commerce sales
panchayats, resulting in more people engaging in
online retail shopping)
The e-commerce industry is expected to surpass the US
to become the 2nd largest e-commerce market in the
world by 2024.
External Environment –
Industry structure (entry/exit barriers)
MARKET BARRIERS

ENTRY BARRIERS
• High Capital Investment
• Legal and Government Created Barriers
• Distribution Network
• Economies of Scale

EXIT BARRIERS
• Fixed Cost of Exit (such as labor agreements)
• Specialized Assets (assets with values linked to a business or location)
• Strategic Interrelationships (relationships of mutual dependence
between one business and other parts of a company’s operations)
• Government and Social Restrictions
External Environment –
Industry structure – Competition (nature
of competition, profile of competitors
(background, resources, etc.), market
shares, & stage of product life cycle)

NATURE OF COMPEPTITION-
The current nature of loyalty programs within the e-
commerce sector in India is an OLIGOPOLY. There
are a few retailers/sellers, and each supplies a large
portion of most products sold in the market.

STAGE OF PRODUCT LIFE-

The current stage of loyalty programs within the e-
commerce industry would be the GROWTH STAGE
wherein a product has received acceptance from
customers and companies are striving to increase
market share.
Product demand as well as profits tend to increase,
and marketing is aimed towards a broader audience.
Funding in the growth stage is generally carried out
through lenders or by increasing revenue from sales.
External Environment –
Industry structure – Competition (nature
of competition, profile of competitors
(background, resources, etc.), market
shares, & stage of product life cycle)

PROFILE OF COMPETITORS-
1. Amazon Prime- Paid subscription service offered at Rs
999 a year (Rs 129 a month) by Amazon. Includes 1-2-
day product delivery without any extra cost. Prime
membership offers Prime video (for streaming movies
and TV shows), Prime music, unlimited 5% reward points
on all purchases on amazon.in using Amazon Pay ICICI
Bank credit card, Prime reading, exclusive and early
deals. Market share- 31.2%
2. Flipkart Plus- Nonpaid subscription service offered by
flipkart. Customers who have shopped and earned 300
super coins(rewards) in the last 12 months can join Plus
and avail benefits such as free and fast shipping, early
access to sales and priority customer support. Market
share- 31.9%
3. Myntra Insider- Nonpaid subscription service offered
by myntra. Existing myntra customers can visit Myntra
Insider and opt to join the program. A customer can earn
Insider points for purchasing through myntra and then
redeem them for a variety of offers from myntra and its
partners in lifestyle areas such as travel and dining.
Market share- 4.7%
External Environment –
Marketing Channels
CURRENT MARKETING MIX USED BY
SNAPDEAL-

Product
Snapdeal sells millions of products in more than 900 categories to target
different customer segments. It has a variety of both domestic and
international brands, many of whom are not physically accessible. It also
has tie- ups in its exclusive category which includes electronic goods and
mobiles.
Majorly bought and preferred products include- lifestyle products (fitness
and beauty products), electronic gadgets and accessories, apparel
(fashion brands for men, women and kids), footwear, movies and books,
home and kitchen products, etc.
The retailer hosts many merchants and sellers with delivery all across the
country thus, providing customers with the option to select both products
and vendors.

Price
Pricing is based on competitor strategy. People tend to buy products with
the least price. To cater to this demand, Snapdeal has made ties with
various manufacturers and sellers to provide the lowest possible prices.
In addition, the retailer also gives special deals at certain times of the day
and during festivals by lowering prices as discount and promotional
coupons or by offering additional services such as dining and spas. It also
has many discount offers through cashback schemes through online
payment modes.
External Environment –
Marketing Channels
Place
Through its online portal, customers can view its
wide product range. It has also branch offices in
major cities in order to improve its regional visibility.
In addition, the platform has strong distribution
networks to ensure timely delivery of products to
customers. Snapdeal does not maintain inventory
but rather promotes its sellers to advertise
products.

Promotion
It uses both online and offline promotions through
various campaigns such as “Dil ki Deal” and “Unbox
Zindagi.” It also advertises its products on social
media platforms such as Facebook and Instagram.

In addition, Snapdeal has strong teams that

consistently handle technology, customer service
and marketing along with a protocol for product
returns and handling complaints.
External Environment –
Marketing Channels

MOST SUCCESSFUL MARKETING

CHANNELS-

Social Media Marketing

Search Engine Optimization
Email Marketing
Video Marketing
Display Ads
Internal Environment –
Resources (Top management, Marketing,
Finance, research & development)
TOP MANAGEMENT
Top management is responsible for more than making decisions
such as setting an example for employees to constantly making
efforts to tap into their potential, which also has an impact on
the success of the company. To bring our opportunity to life,
approval and feedback from the top management is key. The
financial decision including the project budget along with other
assets also depends upon the approval from the top
management.
Their approval and feedback is indispensable to our opportunity.

MARKETING
Marketing benefits companies by promoting a cause, surpassing
sales expectations and providing exceptional service to
customers. Marketing offers a competitive advantage by helping
to differentiate a product from an array of similar products. They
also help a company in creating brand strategy and unique brand
identity. Effectively leveraging marketing will enable the company
to make our proposed opportunity stand out from other
companies/competitors. It will also help increase the profit
margin for Snapdeal by enhancing value received by the
customer. Marketing will also help Snapdeal to effectively
communicate our proposed opportunity with a large customer
base as well as help creating new customers and retain existing
customers and increase their lifetime customer value.
Internal Environment –
Resources (Top management,
Marketing, Finance, research &
development)
FINANCE
Every business operates on money which is under
the control of the financial department of the
company. The financial department is also
responsible for preparation as well as evaluation of
budgets to address the issue of paying for a new
project or opportunity and also to lay out a clear
plan if any unforeseen circumstances arise. The
finance department will also serve as a valuable tool
for aligning our proposed opportunity with
Snapdeal's long term objectives.

RESEARCH AND DEVELOPMENT

The role of R&D department is critical for product
innovation and development and for product
improvement. It helps companies stay relevant in
their target market and as well as supporting
improvement of existing products or developing
new products. The R&D department will help
support strategic decision making for our proposed
opportunity.
Internal Environment –
Brand diagnosis (current brand positioning,
current pricing strategy, current distribution
strategy, & current promotions strategy)
CURRENT BRAND POSITIONING-
Snapdeal positions itself as a one-stop shop for fast, easy and secure mobile
shopping. With over 65 million products such as phones, electronics, gadgets,
fashion and jewelry, Snapdeal is the largest mobile marketplace.
It also lists as to why people love its mobile shopping application-
• Shopping for the Hottest Items with one simple push of a button
• Exclusive Access with instant mobile notifications on offers, discounts, daily
promotions and exclusive deals. It also has flash sales and daily deals for
products that the customers want.
• Explore New Products- You can also view product images and detailed
specifications along with comparing product reviews, ratings and prices.
• Personalized and Secure with 100% payment protection guarantee via
TrustPay for 7- Day returns. Snapdeal also offers many payment types-
rechargeable credit/debit, EMI, Net banking, Cash on Delivery.
• Fast and Free Shipping- Snapdeal offers on-time delivery with free shipping
to over 6000 cities along with tracking shipping status and editing billing
options.
• Shortlist your favorites- Customers can save items and shop later.
• User- Friendly Interface- Customers can navigate easily across product
categories. A customer also has the option to select his or her language
according to their preference.
• Share Products to other shoppers through WhatsApp, Facebook or email to
win rewards.

In addition to these, Snapdeal also has various games through which customers
can win exciting discounts.
 Internal Environment –
Brand diagnosis (current brand
positioning, current pricing strategy,
current distribution strategy, & current
promotions strategy)

CURRENT PRICING STRATEGY

Snapdeal recognizes the fact that consumers like to save
money and has positioned its pricing strategy accordingly. It
has direct tie-ups with several companies to be able to arrive
at much lower prices for products. It has also continued to grab
attention of its customers by surprising them daily by providing
at least 1 good deal. A customer can also avail offers that re in
terms of discounts.

CURRENT DISTRIBUTION STRATEGY

Through its online portal, customers can view a wide range of
products. To increase its regional visibility, it has branch offices
in major cities of India such as Bangalore, Mumbai, etc. In
addition, it also has a strong distribution network of courier
services, sellers as well as logistics to ensure timely delivery of
products to customers. Snapdeal has also acquired e-
commerce distribution logistics- GoJavas and UniCommerce to
fortify the logistics mechanism and supply chain of sellers.

CURRENT PROMOTIONS STRATEGY

It offers many discounts and deals to attract as well as retain its
customer base. It also has a completely different page for each
city where it offers many deals specific to that city’s targeted
audience. Product postings on its homepage include current
deals arranged periodically according to competition.
Internal Environment –
Problem definition &
Critical Factors
BENEFICIAL FACTORS WITHIN THE
ORGANIZATION FOR OUR PROPOSAL
Efficiently integrated IT infrastructure
Wide product portfolio
Vast network of retailers
Strong financial position (from investments)

FACTORS THAT MAY HINDER OUR

PROPOSAL
Poor inventory management practices
Insufficient marketing and promotions budget
Dependence on internet only
Segmentation, Targeting &
Positioning
Market Analysis &
Segmentation – 1200

Who is/are the

market?
WHO IS THE MARKET
1000

The country has the 2nd largest online market in the

world with around 560 million internet users that 800
are expected to increase over 660 million by 2023,
making India one of the most attractive retail
markets globally. 600
Rising internet penetration is expected to lead
growth in the e-commerce industry.
The e-commerce market size was around 50 billion 400
in 2018 and is expected to reach 188 billion by 2025.
52.3% of internet users were digital buyers in 2018.
This number is forecasted to reach 72.9% by 2022. 200
The e-commerce sector in India is mainly driven by a
young demographic profile propelled by increasing
smartphone penetration, launch of better networks
0
and rising consumer wealth. 2017 2018 2019 2020 2021 2022 2023 2024
The industry is also increasingly attracting people Users (in millions)
from tier 2 and 3 cities.
Number of e-commerce users (in millions) in India, with forecasts
1 to 1.2 million transactions occur daily in this until 2024
sector.

Millions of internet users make up the “market.”

Market Analysis &
Segmentation –

WHAT DOES THE MARKET BUY

The market buys a variety of products such as travel,
insurance, computer software, cosmetics, apparel and
daily use items.

WHEN DOES THE MARKET BUY

The market buys products whenever it needs them. The
market also has a major tendency to purchase products
during the festive season.

WHERE DOES THE MARKET BUY

The market purchases products either by going to
physical stores or online.
The market is also highly influenced by information on
digital channels prior to purchase. A small fraction of the
market uses the internet to search for products but
purchases products in physical stores.

WHY DOES THE MARKET BUY

The market buys products to meet their needs and
wants.
 Percentage of Users (by
age)

Market Targeting – 18-24 years 25-34 years

8%
35-44 years 45-54 years

Who is/are the target 31%

audience(s)? 24%

WHO IS THE TARGET AUDIENCE

37%
Users by Age
People in the age bracket of 25 to 34 years
tend to participate the most in online Percentage of Users (by
purchasing activities. This is followed by gender)
people belonging to the age bracket of 18 to
24 years. Female Male

Users by Gender 29%

Males tend to take part in purchasing
products online which mostly includes
shopping for electronics.
71%

As of the year 2019

 Market Targeting –
Percentage of Users (by
income) Who is/are the target
Low income
High income
Medium income audience(s)?
USERS BY INCOME
Users with high income participate the most in
online purchasing activities followed by users with
low incomes.
35% 34%

The target audience for our proposal will be

tech savvy individuals (with reliable means of
internet) that fall within the age brackets of
15-24 years and 25-34 years due to higher
average monthly income levels and frequency
of purchasing products online.

32%
As of the year 2019
Market Positioning –
Proposed brand
positioning
Today’s consumers expect their shopping experience to be
seamless across every channel. The e-commerce sector
operates through business models that are rapidly evolving
with changing trends and increased technological use.
Snapdeal follows the E-Commerce Marketplace Model
wherein this segment is permitted to bring investments in
the automatic mode to the tune of 100 percent.
Furthermore, the amended FDI policy on e-commerce
permits 100% FDI under the automatic route. This segment
is driven by a tremendous level of innovation along with
modern retail concepts and the use of technology in almost
every part of the retail sale process.
Our loyalty/ rewards program will be developed taking into
consideration the new age consumer characteristics such as-
Convenience (For the working younger generation, dearth
of time is one of the key reasons for the growth in online
shopping)
Experiential Shopping ( Millennials view brands through a
holistic lens and place greater reliance on the ethos and the
value system of the brand. Brands that clearly define the
source of their materials or establish work done for a
specific cause/movement tend to strike a chord with current
and prospective customers.)
Need for Personalization (Millennials aim at differentiating
themselves from the rest of the crowd and in lieu of the
same, prefer personalized product and service categories.)
Market Positioning –
Proposed brand
positioning

The customers in any e-commerce market are

looking for the best value and choice. They look for
service that provides them the most utilitarian value
of their time and money instantly rather than
waiting for some points to reach a certain level to
redeem something prized.
With the rise in acquisition costs along with the
intensification of customer brand relationships, our
proposed plan will shift focus and resources into
customer retention and loyalty.
59.5% of consumers are likely to join the loyalty
program of a brand they love.
36.5% of shoppers will spend more on products if
they’re loyal to a brand.
59.3% of shoppers will refer their friends and family
to brands they love.
Market Positioning –
Proposed brand positioning
The way our proposed loyalty/rewards program will
be simple and understandable.
• A person will need to signup at Snapdeal’s website
or mobile application.
• After signing up, the customer will be required to
login into the loyalty/rewards program using their
username or email and password.
• Once logged in, the customer will be required to
take a survey that will help Snapdeal to gauge into
what the customer’s interests are. This will further
help create personalized deals for the customer.
• Next the customer will be offered 100 free coins if
he/she fills out the survey. The customer can then
start earning coins by doing simple activities such
as-
Filing out own birthday or birthdays of friends and
family members along with their email addresses
Posting pictures or videos of the product(s) the
customer bought
Following Snapdeal on social networking sites such as
Instagram and Facebook
Posting user experiences and stories
Posting ratings and reviews of products
Referring Snapdeal or its products to friends
Contacting Snapdeal about how to improve user
experience
Market Positioning –
Proposed brand positioning
The more products a customer buys or the more he
spends, the more offers he unlocks using his personalized
discount code.
The customer will also receive benefits if the people to
whom he sent referrals for sign up and make purchases
from Snapdeal.
Additional discount will be provided on a product a
customer wants to buy if he buys another item across any
product categories (the additional products the customer
can buy will be displayed to the customer as
recommendations.)
Doing so will in turn promote cross-selling and increase
sales.
All these activities will also help generate user generated
advertorial content and help promote the brand through
referrals and word of mouth marketing.
In addition to personalized discounts, handpicked gifts and
season savings, the customer will also be offered discount
on offline stores, salons, etc. hence creating experiential
shopping.
Market Positioning –
Communication
objectives
COMMUNICATION OBJECTIVES

Increase brand awareness- This will be done through

advertising via paid ads, social media, email marketing,
search engine optimization, etc. With our proposal,
users will be motivated to refer Snapdeal because they
know that by engaging in word of mouth marketing, they
will be earning rewards. Social media contests could also
be done wherein users will be Voting for their favorite
products along with sharing the link with their friends
and family to get more votes.

Influence Purchase Intent- This will be done through

persuasive advertising by emphasizing Snapdeal's loyalty
program benefits as compared to other e-commerce
websites. It has also been found that customers tend to
rely more on intuition than on deliberation when making
online purchases. Making a few simple changes such as
page layouts and choices of fonts, images and colors
may be far more critical to associative trust formation
processes.
Market Positioning –
Communication objectives

Customer Acquisition and Retention

New customers will be acquired through
content marketing, blogging, social media,
search marketing and email marketing.
Customer retention will be done by delivering
great customer service as well as interaction.
This can include simple activities such as
showing appreciation to customers (including
thank you notes along with the product, thank
you gifts for onboarding new clients, etc.),
welcoming and asking for constructive
feedback (by proactively reaching out to
customers to find out what they like and what
they think we can improve on, creating forums
for customer participation, inviting customer to
company functions, etc.)
Operations Plan
 Operations Plans –
Describe your plan for cost, quality,
variety and responsiveness of the new
line
DISTRIBUTION CHANNELS
Snapdeal's current distribution network of sellers, courier
services and logistics who ensure that the products reach the
consumers on time will be used for our proposal.

OPERATIONAL FLOW
Snapdeal uses a direct business to consumer model (B2C)
wherein businesses sell directly to consumers.
B2C businesses possess the following characteristics-
Products are for personal use
Consumers typically do not require big name recognition
Emotion based marketing

In such a model, customers get an opportunity to browse,

choose ,customize and purchase products online from a huge
variety offered at an online marketplace and portal.
As a result, sellers tend to offer price reductions, discounts,
shipping and delivery options along with online customer
service via an electronic portal.
Snapdeal follows a Virtual Mall type of B2C Model wherein its
website hosts many merchants on a single website. Snapdeal
charges a commission from the sellers (typically 15%) for
listing and selling their products online.
Operations Plans –
Describe your plan for cost, quality,
variety and responsiveness of the
new line
How do sellers sell products on Snapdeal
Before selling products on Snapdeal, sellers have to
register by filling out a seller registration form. ( every
seller must have a PAN number and a VAT registration)
Once Snapdeal reviews and accepts the seller details,
the seller can now start listing his products on Snapdeal
marketplace.
A seller can benefit from-
• List, sync and automate (instantly list, automate and
synchronize WooCommerce store with Snapdeal)
• Bulk upload of products
• Centralized order management through
WooCommerce

Support operations will be required for a successful and

smooth integration between Snapdeal's core operations
and customer service.
To achieve this, Snapdeal's maintenance departments as
well as customer support departments will require
expansion.
Operations Plans –
Describe your plan for cost, quality,
variety and responsiveness of the
new line
OPERATIONAL DIAGRAM
Financial Plan
Financial Plan –
Estimate of costs and revenue for the new line

SUBSCRIPTION COST
Main source of income for our proposal will come from paid subscribers.
The service will be offered at Rs. 130 per month ( USD $1.70 per month)

INITIAL INVESTMENT
The initial investment needed to introduce our proposal will be USD 15 million. This investment will be used to further elaborate and
develop our existing support operations, legal fees, marketing and promotions fee, purchase of property, plant and equipment, purchase
of software for big data collection, workforce training and working capital.

Investment Required

25% 20%

7%
8%

10%
30%

Support Operations Marketing PP&E

Software Workforce Training Working Capital
PROJECTED COSTS AND REVENUE
2020 2021 2022
Market Size (mil users) 734 805.6 867.6
Subscribers (mil users) 36.7 50.35 69.4
Market Share 5% 6.25% 8%
Revenue $120900000 $130570000 $141010000
Marketing $8463000 $9139900 $9870700
Big Data Collection $2418000 $2611400 $2820200
Center
SG&A $26313725 $28945098 $31839608
Logistics $14508000 $15668400 $16921200
EBITDA $69197275 $74205202 $79558292
Taxes (25%) $17299319 $18551300 $19889573
PP&E Depreciation $7000000 $7000000 $7000000
(linear 22%)
Software Amortization $9000000 $9000000 $9000000
(linear 27%)
Net Income $35897956 $39653902 $43668719

For the first year, our proposal is expected to capture 5% market share that equals 36.7 million people. Even
after evaluating the proposal with a pessimistic approach, it remains considerably profitable.
Integration & Evaluation
Timetable of
Activities
MARKET ENTRY TIMELINE

• Investment Campaign- July 1- 15

• Legal Permit and fees- July 16- 30
• Pre-Launch Marketing Campaign-
August 1-15
• PP&E- August 15- September 30
• Workforce training- October 1-
December 15
• Software Development- October 1-
December 5
• Big Data Collection Contract- October
15- November 20
• Testing- December 5- January 5
• Launch- January 10- ---
 Evaluation
HOW WILL SUCCESS BE EVALUATED
Success will be evaluated using big data and various analytics.

CRITERIA USED FOR EVALUATION

1. Program acts upon insights derived from customer lifecycle or behavior
analysis
2. Program is designed with a clear understanding of its added value to the
customer
3. The business employs a communication strategy that uses the loyalty
program as a leitmotif throughout all communications wit the customer.

WHEN AND HOW DATA WILL BE COLLECTED

Big data is will be used for-
• Shopper Analysis- It will help to develop shopper profiles, determine
customer preferences and reveal unexpected shopping behaviors.
• Customer service- Big data will be used to track customer experiences such
as showing the duration of Snapdeal's response time, delivery time,
customer satisfaction levels and help identify potential problems.
• Personalized Experience- Big data can help by providing insights on customer
behavior and demographics which can then be used to create personalized
experiences.
Evaluation

Ecommerce Big Data can be used to send emails with

customized discounts and special offers to re-engage
consumers, give personalized shopping recommendations,
develop dynamic pricing ( that will rely on external factors
such as consumer demand and competitor’s pricing), present
targeted ads.
• Supply Management and Logistics- Big data can aid in
predictive analysis that can help with various supply
chain issues such as
Trend forecasting- Using social listening to determine which
terms are causing a buzz, or your On the Rise product data.
• Determining shortest routes in order to expedite
shipping process

Data collection will be done on the following periods-

Website traffic and social media engagement- Weekly
Average order value, cost per acquisition and shopping cart
abandonment- Bi-weekly
Email open rate, multichannel engagement, reach and add to
art abandonment- Monthly
Email click through, customer lifetime value and subscription
rate- Quarterly
Evaluation
FAILURE SCENARIOS

• Offering unappealing rewards- Offering limited

types of rewards can lower our proposed loyalty
plan’s perceived value for prospective customers.
To address this issue, our proposal will strive to
diversify available rewards by combining
transactional and experiential rewards such as
early access to sales and product launches, being
part of the product development process and
offering best customers to vote on new products.
• Customers don’t know what they’ve earned- Often
customers can lose track of how many points they
have earned or how many points do they need to
take advantage of rewards. To address this issue,
we will display customer’s status so that our
customers can easily view how close they are to
the reward that they want.
• Confusing program structure- To address this
issue, we aim to design an explainer page for how
our loyalty program works in a very
comprehensive and easy way such as posting
videos in simple language about how they
program works.

In order to continuously improve our program, we will

keep a track of key performance indicators and
continuously engage with our customers regarding
their overall experience, what would they like us to
improve on, what products do they want, etc.
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References •

•
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Ictactjournals.in/paper/IJMS_V1_I3_Paper_4_136_142.pdf

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