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Snapdeal.com
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This document and its content are copyright of Manish Kumar Singh. All rights reserved. Any
redistribution or reproduction of part or all of the contents in any form is prohibited.
LETTER OF TRANSMITTAL
Yours sincerely
Manish Kumar Singh
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CERTIFICATE OF APPROVAL
The following Summer Project Report titled "Vendor Management And Consumer Buying
Behaviour at Snapdeal undertaken by Mr. Manish Kumar Singh, Roll No. 36/2013, is
hereby approved as a certified study in management carried out and presented in a manner
satisfactory to warrant its acceptance as a prerequisite for the award of Post-Graduate Diploma
in Management for which it has been submitted. It is understood that by this approval the
undersigned do not necessarily endorse or approve any statement made, opinion expressed or
conclusion drawn therein but approve the Summer Project Report only for the purpose it is
submitted.
Summer Project Report Examination Committee for evaluation of Summer Project Report
Prof S.K.Tyagi
Project Mentor
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DECLARATION BY STUDENT
I, Manish Kumar Singh, student of PGDM 2013-15, studying at Lal Bahadur Shastri Institute of
Management, hereby declare that the summer training project report titled Vendor Management
and Consumer Buying Behaviour at Snapdeal.com. Delhi completely belongs to me and is an
original piece of work.
The contents of the project report have not been published before and reflect the work done by
me during my summer internship from April 14, 2014 till May 29, 2014 at Snapdeal.com, Delhi.
This project report is being submitted towards the partial fulfillment of Post Graduate Diploma in
Management undertaken at Lal Bahadur Shastri Institute of Management, New Delhi.
Manish Kumar Singh
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PREFACE
It is great honor to work on the project assigned to me and to prepare a project report on vendor
management@ Snapdeal.com.
In the presented project report the Introduction of Snapdeal.com, which is a well-known and a
leading online market place at present is given in detail which will help the reader to make the
clear figure of the company in mind.
The topic assigned to me was vendor management@ Sanpdeal.com of Home Furnishing
category at Snapdeal, and after working on it I have reached to the conclusion which is very clear
shown in the report presented.
The endeavor to complete this project was possible only with the great help and guidance of the
staff of Snapdeal, who guided me in the right path in each and every problem that came in front
of me. Help from other possible sources has also been taken.
It is request to the respected readers to give their views and suggestions regarding this project
and will be honored, which will definitely help me on my next task.
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ACKNOWLEDGEMENT
I take this opportunity to express my deep sense of gratitude towards my project guide Mr.
Nitesh Nayan(Merchandise Manager), for giving me due freedom of decision-making and at the
same time strictly adhering to high quality of work.
I am highly indebted to Mr. Swati Roy (Category Head) for this support and his timely advice
and valuable suggestions. From this project work my guide had brought the best out of
me.
The completion of this project was a cumulative effect of the assistance of all the people who
have helped me directly or indirectly.
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TABLE OF CONTENTS
Table of Contents
CHAPTER 1................................................................................................................................................9
1.
INTRODUCTION...........................................................................................................................9
1.1
1.2
1.3
1.3.1
1.4
E-COMMERCE.....................................................................................................................12
CHAPTER 2..............................................................................................................................................14
2.
INDUSTRY PROFILE..................................................................................................................14
2.1
GLOBAL TRENDS................................................................................. 14
2.2
2.3
DISTRIBUTION CHANNELS...................................................................16
2.4
AN E-DISTINCTION..............................................................................16
2.5
CHAPTER 3..............................................................................................................................................20
3.
COMPANY PROFILE...................................................................................................................20
3.1
FUND RAISING................................................................................. 21
3.2
ACQUITISIONS................................................................................. 22
3.3
3.4
CORE VALUES..................................................................................22
3.5
3.6
3.7
HOME FURNISHING..........................................................................24
3.8
COMPETITOR ANALYSIS...................................................................26
3.9
CHAPTER 4..............................................................................................................................................32
4.
PROJECT DETAILS.....................................................................................................................32
4.1 OBJECTIVE OF STUDY......................................................................32
4.2 BUSINESS MODEL OF SNAPDEAL....................................................32
4.2.1 LISTING OF THE PRODUCTS......................................................32
4.2.1 END TO END PROCESS..............................................................34
4.3 ISSUES FACED BY SELLERS.............................................................39
4.4 HELP US TO FURNISH UR HOME.....................................................40
4.5 CUSTOMER BUYING BEHAVIOUR IN OUTLETS.................................44
CHAPTER 5..............................................................................................................................................54
5.
RECOMMENDATIONS...............................................................................................................54
5.1 Features or Points which can be considered for increase in sales. .54
REFERENCES..........................................................................................................................................56
ANNEXURE 1..........................................................................................................................................57
ANNEXURE 2..........................................................................................................................................59
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CHAPTER 1
1. INTRODUCTION
1.1 WHY ONLINE SHOPPING GROWING POPULARITY
In the early years of e-commerce, consumers were skeptics. Internet privacy and fraud were
amongst the main concerns. Today, the world is moving faster than ever. The consumer has
transitioned from skeptic shopper, fearful of entering into any Internet transaction, to a confident
shopper. Some truly dedicated Internet shoppers will tell you they do not ever go into a retail
store. For many, the attraction is the convenience of shopping from your living room. It is not
only more comfortable, but when doing product and price comparisons it is optimal.
Consumers have learned to keep up with technology and in turn technology helps them keep up
with their fast paced lifestyle. New software technology, advances in Internet security, along with
the cooperation of financial institutions are some of the top reasons why online shopping is on
the rise.
The financial institutions have helped guarantee the satisfaction of online shopping with their
credit protection services. Customers are assured that the financial institution will help intervene
in the event of an unsatisfactory transaction. Institutions have also made added efforts to assure
their clients security when using their credit cards and in the prevention of identity theft. All of
these things add to the consumer feeling more comfortable using credit cards for payment. Credit
card transactions are typically the preferred choice of payment for consumer impulse purchases.
Consumers have become aware of the many security programs they can install in their systems to
help protect their computers. This is helping them feel more comfortable as they surf the net. The
rise of Secure Sockets Layer servers (SSL) provided added protection that also protected shopper
information and buying online began to seem less risky. As more buyers feel safe online
shopping sales rise.
The retailers and webmasters are paying attention to their newly confident website visitors.
Assuring customers Internet safety with transactions and conforming to security on websites.
Many retailers have made option only information requirements for membership and order
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processing. The retailer is trying to limit the amount of information they require the customer to
give.
The customer is no longer obligated to sign up for newsletters and emails. Giving the customer
the option to provide you with certain information allows them to fell more in control of their
transaction. Webmasters are constantly assessing and making changes to their websites because
they have learned to pay attention and respond to what the visitor wants and needs.
More money than ever has been invested into e-commerce advertising dollars, which has only
helped make the world of e-commerce spin. Retailers, marketers, and the latest craze is the
television industries are all moving in fast on the internet. Advertising dollars are following close
behind.
Affiliate advertising, pay per clicks, and residual benefits are all aiding in the business owners
sales. This can also offer their visitors an enhanced experienced with more to offer on their
website. Webmasters have become pros at optimizing their company sales pages to direct the
customers eyes in all the right directions.
A successful website leads a visitors eye to key products. While a visitor is shopping, additional
products sold by the retailer or an affiliate are strategically placed for optimal viewing. Many
shoppers that purchase from one site will also purchase from a site directly linked to the product
they just purchased. This has the possibility to promote a chain of shopping events.
Convenience, time, and money are some of the top reasons why online shopping is on the rise. A
more confident consumer is using the Internet for more and more of their daily needs. The ecommerce community is responding quickly to their customers wants and needs. It is becoming
easier and more convenient to be an Internet user. There are many smaller but no less exciting
shopping malls and shopping districts scattered around.
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There is a simple solution to all those things that dampen your holiday spirit. What if you were
told there is a way where you can avoid parking unavailability, long check out queues, the never
ending hunt for the perfect gift and the fatigue that it brings. This is what brings me to the
brilliance that is the Internet.
1.3 ONLINE SHOPPING AT HOME
The Internet allows you to shop at home and to shop at your own convenience and pa why give
up the thrill of going out and experiencing the exciting and crazy world that most shoppers enjoy
of shopping at malls.
Most departmental stores and apparel stores have their websites, which makes it convenient for
people to shop at home. All you need is a credit card and a personal computer and you are ready
to go.
The convenience of shopping at your own pace and at any time is what has made home shopping
so popular. Shoppers can enjoy some shopping time before bed, or when you are not getting
sleep. You can even shop before breakfast or even when you have some spare time at work
1.3.1
1. Convenience shoppers can shop at home at their own convenience. No more worrying about
reaching the mall before it closes. You can shop whenever you want, in the morning, late at
night or even during your lunch hour at work.
2. Variety - All the variety is at your fingertips, literally! No more shuttling between stores and
traveling for miles till you find that perfect gift for your friends, family or special someone. It
is all available on the Internet. At the click of a button you can access stores across countries
and continents.
3. Bargains You will be surprised with the amount of bargains you will find online. You can
find everything from free gifts, huge discounts and free shipping online. Home shopping
need not be dull or expensive. In fact it is cheaper and a whole lot more exciting.
4. Quality- You can be assured of the quality of the stuff you by online. You will find that most
online stores have a special reviews column with every item; this helps you understand what
the others buyers have to say about the items. And if you are not satisfied by the product or
quality you can always return it within the stipulated time period and get your money back.
5. Security- You do not be worried about using your credit card for home shopping. Home
shopping is perfectly safe and secure. All your personal information that is available through
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your credit card is encrypted and completely secure. Leave all your woes about hacking and
identity theft aside and enjoy the thrill of shopping.
Home shopping is as simple as it gets. You need not worry about complicated procedures and
technical difficulties! Just connect to the website, browse items, add them to your cart and pay
using your credit card. Everything is very simple and easy. Within 21 days your item will be
shipped to you. Shopping really cant get better than this.
1.4 E-COMMERCE
Considering the newness of the internet and World Wide Web, it's safe to say that nearly
everyone who has purchased online gained their understanding of commerce offline. "Dirt-side"
commerce transactions have structural, schematic, and semantic orders that don't fully map to the
different medium of the web, and it's this gap in mapping that causes the problems users
experience trying to shop online, whether the problems stem directly from usability flaws or
unmet expectations.
My experience shopping online and working on a major online commerce site -- Borders.com -has shown me that most people involved in the design, creation, marketing, implementation,
hyping and analysis of ecommerce sites haven't thought about the basic relationship that
commerce is based of Trust & Trustworthiness.
Most people have an understanding of commerce based on their experience as shoppers and
buyers, and they bring this experience with them when they start shopping online. In order to
meet the user's needs, then, we must understand the typical user's experience of traditional
commerce.
Most problems with commerce sites are due to misunderstandings on the part of the site creators
about how users understand the structure and elements of typical commerce transactions. Users
have formed schemas to understand commerce, but commerce sites routinely ignore these
schemas.
Commerce is a communicative transaction between two parties playing very familiar roles buyer
and seller. Selling and buying, must share a basic understanding of how the transaction is
generally supposed to flow. Ecommerce web sites can't simply make products available to be
bought, these sites must hold up their part of role-playing the commerce transaction.
Branding serves as a marker of corporate identity, and so has some value to the user, but the
hubbub over branding misses some very important concerns that users have.
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Ecommerce web sites must pay attention to how they communicate to users. Ecommerce sites
play their role of seller by trying to broadcast two messages to potential buyers: "buy from us"
and "trust us". The impact of these explicit messages, though, is often corrupted by contradictory
or distracting messages implicit in the site's implementation of navigation flow, page layout,
visual continuity, and information space.
Ecommerce sites seem to shout the message that they are trustworthy, that users need have no
trepidation over purchasing from these sites, but trust derives not from assertions but rather from
experience and judgment. People interact, and they make judgments and form expectations of
others based on what they experience and what they surmise; it's a lot easier to decide to trust a
merchant when you can speak to them face-to-face and shake their hand. Trusting a web site to
deal with you fairly and deliver your merchandise, though, well, that's harder to do when you
realize that anyone can build a commerce site. Ecommerce sites must work hard to build the
impression of trustworthiness
Mall Networks maintains relationships with over 500 leading online merchants, including worldclass merchants such as eBay, Expedia, Best Buy, Staples, Macy's, and Sears. Mall Networks has
not only secured the top merchants, but also has integrated many merchants that are rarely or
never available elsewhere.
Mall Networks offers best in class merchant funded commission rates combined with a rich
variety of superior offers from merchants ranging from free shipping, percentages off, free items
over certain price levels, and many others.
Mall Networks is able to secure terrific commission rates and special offers due to (1) superior
and growing purchasing power, now representing 25 million consumers across a wide range of
demographics and very different loyalty and affinity programs and (2) a dedicated merchant
management team with longstanding, strategic merchant relationships. The team at Mall
Networks pioneered the regular updating of valuable offers on the website and in a previous
company was the first major loyalty site to institute a policy of refreshing deals every business
day.
Consumers are presented with the most relevant merchants and offers based on their profile and
their shopping history. Mall Networks self-learning personalization engine ensures that all offers
are targeted and relevant for each user based on their profile, their shopping history, and based on
their similarity to other shoppers. As consumers shop online, the recommendations continue to
improve.
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CHAPTER 2
2. INDUSTRY PROFILE
Electronic commerce, commonly known as e-commerce or e-comm, refers to the buying and
selling of products or services over electronic systems such as the Internet and other computer
networks. Electronic commerce draws on such technologies as electronic funds transfer, supply
chain management, Internet marketing, online transaction processing, electronic data interchange
(EDI), inventory management systems, and automated data collection systems. Modern
electronic commerce typically uses the World Wide Web at least at one point in the transaction's
life cycle, although it may encompass a wider range of technologies such as e-mail, mobile
devices and telephones as well.
Electronic commerce is generally considered to be the sales aspect of e-business. It also consists
of the exchange of data to facilitate the financing and payment aspects of business transactions.
E-commerce can be divided into:
E-tailing or "virtual storefronts" on Web sites with online catalogs, sometimes gathered into a
"virtual mall" The gathering and use of demographic data through Web contacts.
E-mail and fax and their use as media for reaching prospects and established customers (for
example, with newsletters) business to e-business buying and selling the security of business
transactions
Contemporary electronic commerce involves everything from ordering "digital" content for
immediate online consumption, to ordering conventional goods and services, to "meta" services
to facilitate other types of electronic commerce. On the institutional level, big corporations and
financial institutions use the internet to exchange financial data to facilitate domestic and
international business. Data integrity and security are very hot and pressing issues for electronic
commerce.
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Business models across the world also continue to change drastically with the advent of
ecommerce and this change is not just restricted to USA. Other countries are also contributing to
the growth of ecommerce. For example, the United Kingdom has the biggest e-commerce market
in the world when measured by the amount spent per capita, even higher than the USA. The
internet economy in UK is likely to grow by 10% from 2010 to 2015. This has led to changing
dynamics for the advertising industry.
Amongst emerging economies, China's ecommerce presence continues to expand. With 384
million internet users, China's online shopping sales rose to $36.6 billion in 2009 and one of the
reasons behind the huge growth has been the improved trust level for shoppers. The Chinese
retailers have been able to help consumers feel more comfortable shopping online. E-commerce
is also expanding across the Middle East. Having recorded the worlds fastest growth in internet
usage between 2000 and 2009, the region is now home to more than 60 million internet users.
Retail, travel and gaming are the regions top e-Commerce segments, in spite of difficulties such
as the lack of region-wide legal frameworks and logistical problems in cross-border
transportation. E-Commerce has become an important tool for businesses worldwide not only to
sell to customers but also to engage them.
2.2 IMPACT ON MARKETS AND RETAILERS
Economists have theorized that e-commerce ought to lead to intensified price competition, as it
increases consumers' ability to gather information about products and prices. Research by four
economists at the University of Chicago has found that the growth of online shopping has also
affected industry structure in two areas that have seen significant growth in e-commerce,
bookshops and travel agencies. Generally, larger firms have grown at the expense of smaller
ones, as they are able to use economies of scale and offer lower prices. The lone exception to this
pattern has been the very smallest category of bookseller, shops with between one and four
employees, which appear to have withstood the trend.
2.3 DISTRIBUTION CHANNELS
E-commerce has grown in importance as companies have adopted Pure-Click and Brick and
Click channel systems. We can distinguish between pure-click and brick and click channel
system adopted by companies.
1. Pure Click companies are those that have launched a website without any previous existence
as a firm. It is imperative that such companies must set up and operate their e-commerce
websites very carefully. Customer service is of paramount importance.
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2. Brick and Click companies are those existing companies that have added an online site for ecommerce. Initially, Brick and Click companies were skeptical whether or not to add an
online e-commerce channel for fear that selling their products might produce channel conflict
with their offline retailers, agents, or their own stores. However, they eventually added
internet to their distribution channel portfolio after seeing how much business their online
competitors were generating.
2.4 AN E-DISTINCTION
For the purpose of clarity, the distinction between e-commerce and e-business in this book is
based on the respective terms commerce and business. Commerce is defined as embracing the
concept of trade, exchange of merchandise on a large scale between different countries. By
association, e-commerce can be seen to include the electronic medium for this exchange. Thus
electronic commerce can be broadly defined as the exchange of merchandise (whether tangible
or intangible) on a large scale between different countries using an electronic medium namely
the Internet. The implications of this are that e-commerce incorporates a whole socio-economic,
telecommunications technology and commercial infrastructure at the macro-environmental level.
All these elements interact together to provide the fundamentals of e-commerce. Business, on the
other hand, is defined as a commercial enterprise as a going concern. E-business can broadly be
defined as the processes or areas involved in the running and operation of an organization that
are electronic or digital in nature. These include direct business activities such as marketing,
sales and human resource management but also indirect activities such as business process reengineering and change management, which impact on the improvement in efficiency and
integration of business processes and activities. Figure 1.1 illustrates the major differences in ecommerce and e-business, where e-commerce has a broader definition referring more to the
macro-environment; e- business relates more to the micro-level of the firm.
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CHAPTER 3
3. COMPANY PROFILE
Snapdeal.com is an online marketplace, headquartered in New Delhi, India. The company was
started by Kunal Bahl, a Wharton graduate as part of the dual degree M&T Engineering and
Business program at Penn, and Rohit Bansal, an alumnus of IIT Delhi in February 2010.
Snapdeal.com was started in February 2010 as a daily deals platform but expanded in September
2011 to become an e-commerce company via a marketplace model. With 20 million registered
users, Snapdeal is one of the first and largest online marketplaces in India offering an assortment
of 4 million+ products across diverse categories from over 20,000 sellers, shipping to 4,000
towns and cities in India.
In the year 2012-13 Snapdeal had said that it expects to garner revenues of about 6 billion
(US$100 million). Betting big on the growth of mobile commerce, Kunal Bahl, the CEO of
Snapdeal, said at present 15-20 per cent of the sales on Snapdeal comes through m-commerce.
Snapdeal.com expects the total sale of products traded on its platform to cross 20 billion
(US$340 million) in the fiscal year 2013-14 helped by its robust growth in the past two years and
the growing popularity of e-commerce in India.
Snapdeals mission is to provide a platform for small businesses across India to be able to sell to
consumers nationally. Even they expect its online sales to cross 2000cr. INR in FY 14.
Snapdeal has recently launched its best mobile app for iOS users. The app, already available for
Windows and Android users, provides users access to Snapdeal's various product categories.
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3.2
ACQUITISIONS
3.3
1. E-Retailer of the Year & Best Advertising campaign of the year - Indian eRetail awards 2012
organized by Franchise India in Feb, 2012.
2. Winner of Red Herring Asia Awards 2011.
3. E-commerce site of the year at WAT awards that took place in Jan 2012, Mumbai.[19]
4. Hottest Internet Companies of the year at the premier edition of the 'Young Turks Awards'
organized by Mercedes Benz and CNBC-TV 18 in New Delhi - Jan, 2012.
5. Rated the #1 e-commerce site in India, in terms of traction by Dataquest/Sapient E-commerce
Survey 2011.
6. Voted amongst the busiest brands of India in afaqs's annual buzz-making poll.
7. Rated the Cheapest Online Mobile Store for November 2013, in a study conducted by
Zoutons.com.
8. Silver for the Best Website Service, at the Indian Digital Media Awards 2011, organized by
the Exchange 4 Media group - June 2011.
3.4
CORE VALUES
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2. Change:-We
are
ever
evolving
and
embracing every opportunity with open arms.
believe
in
driving
change,
take
up.
We
foster
Snapdeal being an IITian startup recruits employees from IITs, IIMs and top B-Schools.
3.6
Strengths
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Weaknesses
Competitive market
Low barriers to entry in the industry
Customer and supplier retention
Opportunities
Threats
3.7HOME FURNISHING
Home
furnishing
is a
category
available in
Snapdeal, which includes various sub categories. Home furnishing category has more than 50k products
available which is more than any other online market place. So Home Furnishing leads in number of
products available online compared to Flipkart and Amazon.in (market leader in overall number of
products). Home furnishing has more than 2000 sellers on board. These sellers include international
brands as well as local brands.
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1.
2.
3.
4.
5.
1 Swayam
6. Bombay Dyeing
7. Trident Group
8. Raymond
9. Nilkamal
10. Maspar
11. MYCK
12. Spaces
13. Atmosphere
14. D.Decor
15. Elysia and many more.
Home furnishing also promotes those sellers which do not have their outlets to sell. So they can directly
get a market place where they can sell what they produce.
Home furnishing has its seller base across pan India. It has its sellers even located in very remote areas.
The max base lies in Rajasthan, Gujarat, Haryana, Tamil Nadu and Delhi.
The subcategories available in Home furnishing are: -
1 Bed Linen.
16. Bath Linen
17. Curtains & Blinds
18. Mattresses
19. Pillows & Covers
20. Mats & Carpets
21. Cushion & Covers
22. Blankets & Quilts
23. Table Linen
24. Kitchen Linen
25. Fabrics
Snapdeal also maximum assortments in Home Furnishing category compared to Flipkart and Amazon.in.
It has the maximum business from this category compared to other competitors in Home Furnishing.
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Snapdeal offers various discounts on products available through different promotional activities
and campaigns. These offers can be: 1 Bulk Discount
26. Buy 1 Get 1 offer
27. Flat Discount
28. Festival or special occasion offers
29. Weekly discounts
30. Weekdays offers
31. End of season sale
1 Flipkart
32. Amazon.in
33. Fab furnish
34. Jabong and Others.
Even the outlets available in market are strong competitors. Some of these are: -
1 Home Center
35. Home Town
36. Atmosphere Outlet
37. Good Earth Outlet
38. Aura Furnishings
39. Evoke
40. F & F stores etc.
Also the local market shops are considered to be strong competitors. They are the first place to visit by a
middle income group person. They have the maximum footfall compared to other stores. So Snapdeal
aims to achieve the same scenarios where they can attract those customers and increase the footfall on
their site.
3.8COMPETITOR ANALYSIS
INTERNET TRAFFIC BASED RANKING:
SNAPDEAL
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FLIPKART
AMAZON
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JABONG
FABFURNISH
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MYNTRA
So we can clearly see from the rankings that Snapdeal is having a very tough competition in
market. It has to not only perform well but has also to make sure that it does something
different which makes him in competition.
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Audience Geography:
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Snapdeal.com CEO Kunal Bahl tells the goal has always been to build a socially responsible
organization, and that the decisions to provide clean drinking water for the village came from a
conversation with one of its employee in the hallways.
He says that they honestly did something very simple- didnt even cost that much and installed
15 hand pumps, which now enable clean water within a distance of 50 meters for all the residents
in the village.
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CHAPTER 4
4. PROJECT DETAILS
4.1 OBJECTIVE OF STUDY
To understand the business model of Snapdeal and end to end process of getting a seller onboard.
1. Managing the onboard sellers.
2. Bringing new sellers as Snapdeal clients by motivating them to do business with the
company.
3. To know the consumer behaviour in offline and online market.
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The platform has the widest assortment of products from thousands of national, international and
regional brands across diverse categories like Mobiles, Electronics, Fashion accessories, Apparel
and Footwear, Automotive, Kids, Health, Home and Kitchen, Sports & Books. Snapdeal.com has
a network of more than 50000 Merchants/Brands, and has over 20 million members (which is 1
out of every 6 internet users in the country) and caters to the shopping needs of customers across
4000+ towns and cities.
As a marketplace, Snapdeal follows the below mentioned business model.
Commission
Snapdeal Charges a fixed commission percentage corresponding to the category of the products
being showcased by the Partner (Vendor). The Commission is charged on the Selling price of the
product.
2.
Shipping Charges
The Shipping of the product is taken care of by Snapdeal.com , through its Courier Partners,
Blue Dart , First Flight or DHL, and the cost of the same is passed on to the Partner ( Vendor).
The Shipping Charges are Rs 45 (exclusive of service tax) for upto 500 Gms. of weight of the
Parcel. The same goes on increasing at the rate of Rs 35 (exclusive of service tax) for every 500
Gms.
For e.g.: The Shipping charge for 500gms- 1 Kg of weight would be (45 + 35) = Rs 80
(exclusive of service tax), and the same goes on increasing.
Heavy Products like Mattress and Carpets will go with Surface and the charges would
be Rs.133/7000 Gms.
In case of Product, wherein the Surface rate of Courier is to be charged, a flat Rs 17 (exclusive of
service tax) per kg is charged for the same.
Packaging material will be provided by the Snapdeal to pack the parcel; this includes the white
poly bag and the Snapdeal tape.
3. Payment Collection Charge
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Snapdeal is a large Platform for Listing and or selling of the products of the Partner Brands
across the nation, as we collect payment on behalf of the Partners (Vendors), a small payment
collection charge is taken from the Partner.
The Payment collection charge is Rs 20 or 2.7 %( Service tax Extra) of the selling price of the
product, whichever is higher.
Please go through the below mentioned example which would help you to understand the process
in a better way.
For e.g.:- If you are listing your products from the Jewellery Category, the charges for the same
would be calculated as follows...
If the selling Price of a Particular Item is Rs 1000. Then in this case
Commission would be 20% of Rs 1000 =
Shipping Charges
Rs 200
Rs 30.03
4. Payment Term.
Snapdeal shall release the payment on the following basis, i.e., the products delivered during the
period from 1st to 7th, 8th to15th, 16th to 23rd of every month and from 24th to end of month.
Snapdeal shall make the payment by way of account payee cheque /RTGS/ NEFT on 17th, 25th
of same month, and 3rd & 11th of the next month, respectively after deducting Snapdeals fee.
5. Return Policy
In case of return or replacement of product due to any reason as mentioned in agreement or othe
rwise, associate charges will be borne by either Snapdeal or Seller as per the table appended belo
w:-
Sr.
No
1
2
Particulars
Shipping
Charges
Reverse Pickup
Charges
Borne By
Seller
NA
Borne By
Seller
NA
Payment
Collection
Charges
Borne By
Seller
Borne By
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3
4
Seller
Borne By
Seller
NA
NA
Borne By Seller
First of all the seller is informed about Snapdeal, its products and categories. If the seller has the
availability of products which could be sell on Snapdeal and also if he is ready to do business
with Snapdeal then he is sent a registration form on his mail id. This complete process is
automated and sellers details are also updated once he is convinced to do business with
Snapdeal.
With the registration form, a document with complete details of business model of Snapdeal is
sent for better understanding. If he is ready to follow all conditions listed in the model, then he
needs to fill the details and sent back to Snapdeal.
Once the seller has sent the form, then a complete process of verification goes with various
stages varying from red to green. The green stage is achieved then the seller is said to be on
board.
After this the companys representatives mails him the credentials of different panels. Basically
the company has 4 panels, which are: 1
Inventory Panel
This is basically provided to the sellers for the management of inventory. They are provided with
the credentials for this panel where the can update their inventory if it is in stock and can remove
the inventory if the products are out of stock.
The representatives need to take follow ups from sellers so that they keep the panel updated. This
panel directly removes the burden from Snapdeal employees; with this the sellers can update
their stock very easily.
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The below attached is the screen shot of login page of inventory panel for sellers. New sellers
has to register him before using this, he can directly fill the registration form and get the
credential for panel.
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Content Panel: -
This is the latest panel added by Snapdeal. This panel basically gives access to seller for
uploading images of the products, giving description about the products. The seller now can add
description whatever he fits best for the product. Seller can directly upload the images which
when once approved by representatives, go live on websites with the details of the product.
Sellers can now choose the category and then sub category of the product to be uploaded. He can
add or remove the details when required. Below snapshots are of content sheet for sellers.
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7. Pricing Panel
Sellers can give their price of the products and through this they will be directly told about
the commission of Snapdeal and what they will be getting back. They can have the access to
this panel through the same inventory panel credentials.
8. Shipment Panel
Shipment panel is basically for tracking of products sold. Snapdeal has launched SafeShip, a
fulfillment platform for sellers listing their products on the marketplace. This is the second
value-added feature offered by Snapdeal.com after it launched TrustPay (which was targeted
more at the consumers); a full cash-back facility if a company fails to deliver, earlier this
year. Through SafeShip, Snapdeal aims to ease the process of fulfillment for merchants. It
gives sellers an email-like interface which processes all the orders in much lesser time. The
service can be used in two different ways by sellers. First, sellers can ship products directly
to the customer through Snapdeals logistics partners. Second, orders can be routed through
Snapdeals fulfillment centers and then shipped to the customer.
The SafeShip platform claims to auto-optimise and allocate a logistics company for a seller
based on past performance and pricing. It will also handle aspects like pre-shipping verification,
returns/replacement/refunds processing and product quality control.
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Many sellers in India are still hesitant about selling their products online. A major challenge that
they face is that most of them do not have the resources or the know-how to fulfill the customer
orders received while paying the right price for fulfillment. As a solution to this challenge, we
have launched SafeShip; a one-click order of Snapdeal is basically for the fulfillment service for
the
sellers.
SafeShip will also help sellers and buyers track their products right from the time the
consignment leaves the sellers facility to the time it is delivered to the buyer.
the courier service (whichever is available nearest to seller). The seller needs to be prepared
with the product when the courier service people come. The sellers (new sellers) often are
unaware of the packaging and timing of service. They representatives have to look after this
so that there is no delay in the delivery of product.
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The results of pilot testing done in company were: Some of the results of important question in the pilot test are shown below. Question no 4th, 5th
and 6th results are shared during the pilot testing.
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These results motivated the category to go ahead with feedback survey live on website, and this
survey would be live once approved from senior managers.
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Even this will help in collecting a huge database of the customers which can be considered latter
as privileged customers. These customers can be attracted more by giving special discounts and
offers. The suggestions from customers can be taken on priority and the issues should be solved
as soon as possible. Also the favorite sub categories should be promoted more and more. Even
this will help the company to get an idea about target customers.
The information about the content available on page will increase the scope of improvement. The
suggestions from customers will give us a competitive advantage over others. We can get direct
information from customers that what they need in home furnishing.
Being a market leader in Home Furnishing, Snapdeal has wider scope to increase their market
and customer base in this category.
4. Brand and Assortments combination- In this open ended question we asked them about brand
preference for different assortments in store. We questioned them regarding the buying
pattern for different assortment. We even checked the price range for these assortments and
what stores do to reduce the prices and what offers they combine with brands.
After the survey following results were obtained for brand preference:Brands
Portico
Maspar
Swayam
Bombay Dyeing
D' dcor
tangerine
spaces
Eyda
Maishaa
deco window
Spread
Dicitex
Frequency in
Stores
10
4
7
6
7
4
5
1
1
3
2
3
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Raymonds
SJ(Aura Furnishing)
Espirit
Obsessions
3
1
2
3
The above table shows that Portico brand is found maximum in stores, whereas Swayam, Maspar
and D dcor is also available in maximum stores.
Frequency in Stores
12
10
8
6
Frequency in Stores
4
2
0
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Stores
Bed
Comfort
Sheet ers
Home Saaz
Sita Fabrics
Midtown
Furnishing
Aura
Furnishing
F&F
Evok
Dreams
Shopper Stop
EasyDay
ShayamFurnis
hing
LifeStyle_HC
Average
Rugs
And
Carpets
Cushion
covers/Pill
ow Covers
1
1
5
6
6
7
3
7
8
5
5
6
4
2
6
2
4
1
Fabri Table
c
Cove
r And
Sofa
Cove
rs
7
8
8
9
9
2
6
1
5
1
1
1
7
8
6
7
6
7
2
4
3
5
4
5
4
3
4
3
3
4
5
2
7
2
2
2
3
5
2
4
8
3
9
6
8
8
5
6
1
7
1
9
9
9
1
2.27
6
6.55
5
4.82
4
2
4.18 3.82
3
3.55
7
7.45
9
5.91
Mode
900
200
500
600 700
800
100
400
In this table we compared the ranks given by the stores to the assortment as per their demand. We
could easy see that Bed Sheets were in maximum in all the stores followed by Curtains and Bath
linen. Majority of stores prefer to keep bed linen as their main selling product. Here we have
evaluated by getting the average of the ranks given by stores and then assigning the mode values
so that they can be plotted on graph.
Based on promotional activities in stores following result was obtained: -
Types of
Discounts
combo offers
bulk discount
buy 1 get 1
flat pricing
end of season
sale
Frequency In
Stores
8
7
6
5
15
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Over here we collected the information regarding the promotional activities by the stores. The
stores used to have discounts and offers to improve their sales and increase the footfall. They
also told that they have different promotional activities and brands use to have theirs. Maximum
stores gave end to season sale so that they can clear out the stock available. Whereas stores and
brands also prefer combo offers, like a pillow cover free with bed sheets etc.
Frequency In Stores
combo offers
bulk discount
buy 1 get 1
flat pricing
end of season sale
Based on assortment and brand combination following result was obtained: BED LINEN: Brands
Portico
Maspar
Swayam
Bombay Dyeing
D' dcor
tangerine
spaces
Eyda
Maishaa
deco window
Bed Sheets
11
4
8
9
6
4
6
1
1
3
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Portico is the maximum sold brand in stores in Bed Sheets. Bombay dyeing is the brand
maximum aware to the customers due to its popularity in Indian market, whereas Swayam has
also been seen in maximum stores due to its demand and shades in bed sheets.
bedsheets
1
2
3
4
5
6
7
8
9
10
QUILTS: -
Brands
portico
Maspar
Swayam
Bombay Dyeing
D' dcor
tangerine
spaces
Eyda
Maishaa
deco window
Quilts
4
2
0
2
6
1
3
1
0
0
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When considered the quilts section we see that D dcor is the most preferred brand, maximum
of the stores which have Quilts available keeps D dcor in their store. Portico and spaces were
also available in some stores. Rest stores prefer local brands in quilts.
Quilts
1
2
3
4
5
6
7
8
9
10
PILLOW COVERS: -
Brands
portico
Maspar
Swayam
Bombay dyeing
D' dcor
tangerine
spaces
Eyda
Maishaa
deco window
Pillow Covers
6
3
3
6
4
1
4
1
1
0
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Pillow covers are available with bed a sheet only, which is why stores usually dont keep
separate pillow covers. Portico and Bombay Dyeing are maximum selling brands in these
assortments.
Pillow Covers
1
2
3
4
5
6
7
8
9
10
CUSHION COVERS: -
Brands
portico
Maspar
Swayam
Bombay Dyeing
D' dcor
Cushion
Covers
2
1
4
3
2
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tangerine
spaces
Eyda
Maishaa
deco window
0
1
0
1
0
Only few stores usually keep cushion covers. Swayam was maximum available in these stores.
Cushion Covers
1
2
3
4
5
6
7
8
9
10
CURTAINS: -
Brands
portico
Maspar
Swayam
Bombay Dyeing
D' dcor
tangerine
Curtain
s
2
1
1
1
1
0
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spaces
Eyda
Maishaa
deco window
1
1
0
4
We could easily find stores with exclusive outlets of curtains and fabrics. Usually stores like
Midtown and Shyan are exclusive only for Curtains. Thus we could not find curtains in many
stores.
Curtains
1
2
3
4
5
6
7
8
9
10
BATH LINEN: -
Brands
Portico
Maspar
Swayam
Bombay Dyeing
Bath Linen
3
2
3
6
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D' dcor
tangerine
spaces
Eyda
Maishaa
deco window
1
0
3
0
0
0
In Bath Linen Bombay Dyeing was available in maximum stores; we also found many
international brands in this category. Even portico and Swayam were available in some stores.
But Bombay Dyeing was maximum available in stores and leads the market according to the
store managers.
Bath Linen
1
2
3
4
5
6
7
8
9
10
Portico
Swayam
Maspar
Bombay Dyeing
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Bed Sheets
Curtains
Bath Linen
Comforters
Cushion Covers
CHAPTER 5
5. RECOMMENDATIONS
5.1Features or Points which can be considered for increase in sales
1
We now need to concentrate also on international brands, and try to add more and more
products from international brands.
41. The promotion strategy for these brands should be on higher scale; it should be through
some modern techniques and based on themes. As our target audience is middle income
group+ people, so our old traditional products should be removed or put on hold.
42. We should also do some modification in our return policy. It should be changed to 15 days
return back policy.
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43. Senior managers should do some random visits to customers with the shipment boys. They
should interview them that why they feel snap deal is better than others. Also try to collect
as many negative feedbacks. This will lead to a huge word of mouth advertisement.
44. Our shipment process should be more effective and tracking part should be modified.
5.1.1
For Home Furnishing:1 We can use blogs written by some people in our category. This will make people to know
more about our category.
45. We can also try with various discount coupons or vouchers, which we can provide during
our shipment. These coupons can be like travel coupons, some discount vouchers, recharge
coupons, also it can be some discount on restaurants.
46. Headlines can be used for benefits of product.
47. Also use of hover ads for promotion activity can be used to attract people to a particular
advertisement.
48. Use of greeting system, by collection customers and sellers birthday and anniversary data.
We can send them greeting through mail and even by shipping to their home. This will lead
to increase in brand name.
REFERENCES
http://www.livemint.com/Industry/Z5LsukiJKgjfdbU3oiTDBO/Indias-ecommerceboom.html_20/6/2014
http://in.reuters.com/article/2014/06/13/walmart-indiaidINKBN0EO15Z20140613_13/06/2014
http://www.livemint.com/Industry/B3Am55INce3z0Cza5KYzVP/Shopify-eyes-Indiasecommerce-promise.html_17/6/2014
http://www.sxccal.edu/msccs/ecommerce1.pdf
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www.flipkart.com
www.amazon.in
www.fabfurnish.com
www.jabong.com
ANNEXURE 1
Survey on organised retail stores
1. Which product sells the most?
Ranking
Product 1
Product 2
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Product 3
Product 4
Product 5
Product2
Product3
Product 4
Product 5
Do ranking
in brands
3. Attributes:
Bed linen
design
Rank 1
Fabric
quality
Same as
above
Rank
2
Rank 3
Product
assortmen
t
Pdt ratio
Age
group
gender
discount
Price point
5.
(Ranking)
ANNEXURE 2
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