STUDY OF INSTITUTIONAL MARKETING

STRATEGIES OF E-COMMERCE COMPANIES WITH

SPECIAL REFERENCE TO MITASHI EDUTAINMENT
Pvt. Ltd E-PORTAL
A PROJECT REPORT

Submitted by:

ANKIT BHARDWAJ

In partial fulfillment for the award of the

POST GRADUATE DIPLOMA IN MANAGEMENT

IN

MARKETING

INSTITUTE OF PROFESSIONAL EDUCATION AND

RESEARCH, BHOPAL

AUGUST 2015

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 ACKNOWLEDGEMENT

I would like to take this opportunity to thank all those who helped me in the successful completion
of my Summer Internship Program (SIP).

I would like to thank Mr. Himanshu Shah, Mitashi Edutainment Pvt. Ltd. Mumbai, to give me the
opportunity to work with the company on the project titled “Study of Institutional Marketing
Strategies of E-Commerce Companies with Special Reference to Mitashi Edutainment Pvt. Ltd E-
Portal”. His constant guidance and monitoring helped me immensely during the course of the
project.

I would like to thank my company guide Mr. Himanshu Shah, Business Development Manager,
Mitashi Edutainment Pvt. Ltd. Mumbai, for his constant support and guidance during the course
of the project. I am extremely grateful to him for providing valuable inputs and assistance
throughout my project work. He always motivated and encouraged me during the course of the
project.

I have received immense guidance from my guide Prof. Mahesh Soni who motivated me to receive
enormous amount of input & inspiration at the various stages during my project preparation & also
assisted me to make many valuable improvements that helped me to enhance my project. I would
like to convey my sincere gratitude to him.

I would also like to extend a special thanks to Mr. Nitesh Sharma, Mr. Prashant Nerwade and the
entire Mitashi Edutainment Pvt. Ltd. team, my friends and employees at Mitashi Edutainment Pvt.
Ltd. for helping me throughout my Internship.

Finally I would like to thank to all the Faculties of Institute of Professional Education & Research
(IPER), who supported me in various ways & enlightened me about the valuable information

pertaining to my research work.

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 DECLARATION

This is to certify that, I have completed the Summer Project titled “Study Of Institutional
Marketing Strategies Of E-Commerce Companies With Special Reference To Mitashi
Edutainment Pvt. Ltd E-Portal” under the guidance of Prof. Mahesh Soni in partial fulfillment of
the requirement for the award of Degree of Post Graduate Diploma in Management (PGDM) at
Institute of Professional Education and Research, Bhopal. This is an original piece of work & I
have not submitted it earlier elsewhere.

Date: Signature:
Place: Name:
Enrolment No.:

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 Contents

ACKNOWLEDGEMENT ....................................................................................................... 2

DECLARATION...................................................................................................................... 3

CERTIFICATE SIP...................................................................................................................

CERTIFICATE INSTITUTION ..............................................................................................

CHAPTERS ........................................................................................................................ 5-50

1.Conceptual Overview ........................................................................................................ 5

2.Research Methodology ...................................................................................................... 7

3.Theoretical Background ................................................................................................. 10

4.Company Introduction ................................................................................................... 19

5. Data Analysis .................................................................................................................. 35

6.Findings ............................................................................................................................ 49

BIBLIOGRAPHY .................................................................................................................. 51

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 CHAPTER-1
Conceptual Overview

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 EXECUTIVE SUMMARY
The world is emerging to be a global village and the correspondence among people from across
the world for various aspects has been changing. One most evident change is the way we buy and
sell. Shopping now is now nothing similar to what it was a few years ago as people prefer to buy
things with the click of a button from the comfort of their couch, rather than having to head out
from home and walk around the stores.

This rapid change in the consumer behaviour has resulted in the fast paced growth of the online
retailers across the globe, creating a new eco-system of traders. Online retailers also have an edge
over their brick and mortar counterparts as they can sell more and can sell from anywhere. This
increase in online retailing business has obviously created demand for ecommerce professionals.

This internship would provide me with understanding on everything that is required for offline
business to go online and all the essential things for succeeding in the ecommerce industry. Full
knowledge will be attained in this internship regarding:

1. Product Ecommerce24

2. Offline business as a whole

3. Understanding Consumer Behavior

4. Sales Pitch

5. Meeting Process

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 CHAPTER-2
Research Methodology

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 PURPOSE

1. To gain practical expertise in corporate life by understanding their culture and exposure to

actual working life.

2. Understand the ecosystem of online retailing, which help me in interviews of ecommerce

companies like Flipkart, Amazon, Snapdeal, etc.

3. Understanding offline business.

4. To enhance my analytical and research skills.

OBJECTIVE
1. To learn lead generation by:

• Tele-calling

• Cold calling

• Creating database through different sources

2. To understand consumer behavior.

3. To know different job options and job profiles in ecommerce industry.

4. To understand the increasing trend of marketplaces.

5. To learn the tactics of sales pitch and closure of meeting.

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 RESEARCH METHODOLOGY

 This project is an exploratory project as it contains data from primary sources collected
from Jabong vendors and LRF (electronics) in the format of calling.

Statistical Tools Used:

 The methodology comprises of varied econometric and statistical tools. Frequency and
trends of perception on various schemes and operations of the company has been analyzed
with the help of tabulation of data, use of simple percentages, correlation, and cross
tabulation.

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 CHAPTER-3
Theoretical Background

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 LITERATURE OVERVIEW

Recent years have seen a remarkable transformation in the way India shops and trades. E-
commerce has taken the world of retail by storm and captivated the imagination of an entire
generation of entrepreneurs, with e-commerce ventures with various business and commercial
models. The explosive growth in the last few years has already catapulted the biggest firms among
these ventures past the billion-dollar territory. The sector has grown three times in four years to
nearly 12.6 billion USD in 2015. Various industry estimates project that the sector will further
growth five to seven times over the next four to five years.

Online retail, while today representing a small fraction of the e-commerce space is one of the
fastest growing segments. It is also the most challenging in fulfilling its fundamental proposition
of transcending physical boundaries to deliver a variety of products to the customer’s doorstep.
Logistics and infrastructure in e-retailing becomes the very backbone of the fulfilment network
and the basis on which stringent service level expectations are set and met, and customer mind-
space among competing alternatives is won. In India, these are arguably the weakest links, and
therefore the enhanced need for greater attention and management bandwidth to these critical
functions.

We estimate that a large proportion of investment in e-commerce retail will flow into logistics and
infrastructure. In the absence of an incumbent ecosystem, e-commerce providers are beginning to
build these functions from scratch. This will also spawn infrastructural investments into allied
sectors such as warehousing, air cargo, road and rail-based transport transportation. As delivery
reach and fulfilment networks become more entrenched and increasingly complex, opportunities
will emerge for logistics service providers and 3PL players. All of these trends point to a bright
future for talented entrepreneurs, operational managers as well as greater employment
opportunities for blue-collared workers.

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Evolution of e-commerce in India

The rapid growth of e-commerce in India

Over the last two decades, rising internet and mobile phone penetration has changed the way we
communicate and do business. E-commerce is relatively a novel concept. It is, at present, heavily
leaning on the internet and mobile phone revolution to fundamentally alter the way businesses
reach their customers.

While in countries such as the US and China, e-commerce has taken significant strides to achieve
sales of over 150 billion USD in revenue, the industry in India is, still at its infancy. However over
the past few years, the sector has grown by almost 35% CAGR from 3.8 billion USD in 2009 to
an estimated 12.6 billion USD in 2015.

Industry studies by IAMA2 I indicate that online travel dominates the e-commerce industry with
an estimated 70% of the market share. However, e-retail in both its forms; online retail and market
place, has become the fastest-growing segment, increasing its share from 10% in 2009 to an
estimated 18% in 2015. Calculations based on industry benchmarks estimate that the number of
parcel check-outs in e-commerce portals exceeded 100 million in 2015. However, this share
represents a miniscule proportion (less than 1%) of India’s total retail market, but is poised for
continued growth in the coming years. If this robust growth continues over the next few years, the
size of the e-retail industry is poised to be 10 to 20 billion USD by 2017-2020. This growth is
expected to be led by increased consumer-led purchases in durables and electronics, apparels and
accessories, besides traditional products such as books and audio-visuals.

With the increasing internet literacy, the prospect of online marketing is increasing in India.
Alternative names of online shopping are: e-web-store, e-shop, e-store, Internet shop, web-shop,
web-store, online store, online storefront and virtual store. An online shop evokes the physical
analogy of buying products or services at a bricks-and-mortar retailer or shopping center; the
process is called business-to-consumer (B2C) online shopping. The largest of these online retailing
corporations are Snap deal, Amazon.com, and eBay .Retail success is no longer all about physical

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stores. This is evident because of the increase in retailers now offering online store interfaces for
consumers. With the growth of online shopping, comes, the concepts of satisfaction and loyalty
for website which involved in providing services on the website and transacting online. Companies
before using effective marketing strategies analyze various factors to convert potential customers
into active ones the five dominant factors which influence consumer perceptions of online
shopping are Information, Ease of use, Satisfaction, Security/Privacy, Proper Utilization. In this
paper we are trying to identify the perception of the customers towards on line shopping.
Internet is changing the way consumers shop and buy goods and services, and has rapidly evolved
into a global phenomenon. Many companies have started using the Internet with the aim of cutting
marketing costs, thereby reducing the price of their products and services in order to stay ahead in
highly competitive markets.
Companies also use the Internet to convey communicates and disseminate information, to sell the
product, to take feedback and also to conduct satisfaction surveys with customers .Customers use
the Internet not only to buy the product online, but also to compare prices, product features and
after sale service facilities the will receive if they purchase the product from a particular store.
Many experts are optimistic about the prospect of online business. In addition to the tremendous
potential of the E-commerce market, the Internet provides a unique opportunity for companies to
more efficiently reach existing and potential customers. Although most of the revenue of online
transactions comes from business-to-business commerce, the practitioners of business-to-
consumer commerce should not lose confidence. It has been more than a decade since business-
to-consumer E-commerce first evolved. Scholars and practitioners of electronic commerce
constantly strive to gain an improved insight into consumer behavior in cyber space. Along with
the development of E-retailing, researchers continue to explain E-consumers behavior from
different perspectives. Many of their studies have posited new emergent factors or assumptions
which are based on the traditional models of consumer behavior, and then examine their validity
in the Internet context.

In 2013, Asia-Pacific emerged as the strongest business-to consumer (B2C) ecommerce region in
the world with sales of around 567.3 billion USD, a growth of 45% over 2012, ranking ahead of
Europe (482.3 billion USD) and North America (452.4 billion USD). The top three were followed
by Latin America, and the Middle East and North Africa (MENA) region, according to Ecommerce

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Europe1. Globally, B2C eCommerce sales increased by 24% over 2012. This reflects the huge
untapped potential of eCommerce by retail companies, both in their country of origin and across
borders.

eCommerce or electronic commerce, deals with the buying and selling of goods and services, or
the transmitting of funds or data, over an electronic platform, mainly the internet. These business
transactions are categorized into either business-to-business

(B2B), business-to-consumer (B2C), consumer-to-consumer (C2C), consumer-to-business (C2B)

or the recently evolved Business-to-business-to-consumer (B2B2C).

ECommerce processes are conducted using applications, such as email, fax, online catalogues and
shopping carts, electronic data interchange (EDI), file transfer protocol and web services and e-
newsletters to subscribers. eTravel is the most popular form of eCommerce, followed by eTail
which essentially means selling of retail goods on the internet conducted by the B2C category.

According to Ecommerce Europe, country-wise, the US, UK and China together account for 57%
of the world’s total B2C eCommerce sales in 2013, with China having total sales of 328.4 billion
USD. As against this, India had sales of only 10.7 billion USD, 3.3% of that of China in 2013 with
fifth position in Asia- Pacific. This is despite the fact that India enjoys high demographic dividends
just like China. India’s internet penetration with total e-households at 46 million against China’s
207 million is one of the reasons behind India’s poor B2C sales growth.

Since the eCommerce industry is fast rising, changes can be seen over a year. The sector in India
has grown by 34% (CAGR) since 2009 to touch 16.4 billion USD in 2015. The sector is expected
to be in the range of 22 billion USD in 2015.

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Currently, eTravel comprises 70% of the total eCommerce market. eTailing, which comprises of
online retail and online marketplaces, has become the fastest-growing segment in the larger market
having grown at a CAGR of around 56% over 2009-2014. The size of the eTail market is pegged
at 6 billion USD in 2015. Books, apparel and accessories and electronics are the largest selling
products through eTailing, constituting around 80% of product distribution. The increasing use of
smartphones, tablets and internet broadband and 3G has led to developing a strong consumer base
likely to increase further. This, combined with a larger number of homegrown eTail companies
with their innovative business models has led to a robust eTail market in India rearing to expand
at high speed.

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Models of E-commerce

Business-to-Business (B2B):

B2B e-commerce is simply defined as e-commerce between companies. This is the type of e-
commerce that deals with relationships between and among businesses. About 80% of e-commerce
is of this type, and most experts predict that B2B ecommerce will continue to grow faster than the
B2C segment. E.g.: indiamart.com, eindiabusiness.com, tradeindia.com etc.

Business-to-consumer (B2C):

Business-to-consumer e-commerce, or commerce between companies and consumers, involves

customers gathering information; purchasing physical goods (i.e., tangibles such as books or
consumer products) or information goods (or goods of electronic material or digitized content,
such as software, or e-books); and, for information goods, receiving products over an electronic
network.
It is the second largest and the earliest form of e-commerce. Its origins can be traced to online
retailing (or e-tailing). Thus, the more common B2C business models are the online retailing
companies such as flipkart.com Amazon.com, snapdeal.com etc

Business-to-Government (B2G):

Business-to-government e-commerce or B2G is generally defined as commerce between

companies and the public sector. It refers to the use of the Internet for public procurement,
licensing procedures, and other government-related operations. This kind of e-commerce has two
features: first, the public sector assumes a pilot/leading role in establishing e-commerce; and
second, it is assumed that the public sector has the greatest need for making its procurement system
more effective. Web-based purchasing policies increase the transparency of the procurement
process (and reduce the risk of irregularities). To date, however, the size of the B2G ecommerce
market as a component of total e-commerce is insignificant, as government e-procurement systems
remain undeveloped.
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Consumer-to-Consumer (C2C):

Consumer-to-consumer e-commerce or C2C is simply commerce between private individuals or

consumers. This type of e-commerce is characterized by the growth of electronic marketplaces and
online auctions, particularly in vertical industries where firms/businesses can bid for what they
want from among multiple suppliers. It perhaps has the greatest potential for developing new
markets. Online auction site eBay, Yahoo! Auctions are a couple of examples of C2C websites.

M-commerce
M-commerce (mobile commerce) is the buying and selling of goods and services through wireless
technology-i.e., handheld devices such as cellular telephones and personal digital assistants
(PDAs).
Mobile Commerce is any transaction, involving the transfer of ownership or rights to use goods
and services, which is initiated and/or completed by using mobile access to computer-mediated
networks with the help of an electronic device.

Mobile Commerce in India

Mobile is growing in India with more than 800 million subscribers across the country. The
advancement in terms of adoption of smart phones with 3G enabled services is happening at a
rapid pace. This of course has opened up the gates to mobile advertising, mobile application
development and mobile commerce in India. According to Buzz City's latest report, India is top
performing mobile advertising region in the whole of Asia. The growth in mobile advertising
globally is tremendous with ads served on a year-on-year growth of 139%. With respect to some
number crunching, more than 126 billion ads were served in 2011, compared with 52 billion in
2010.

In India, Mobile Commerce is still in the development phase as the use of mobile phones for
carrying out transactions is very limited. However, the development is taking place at a nice speed
and in the coming years, Mobile Commerce is most likely to make its presence feel as companies

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and businesses have started understanding the benefits of Mobile Commerce. Some of the
companies have even incorporated this technology. Airtel, ICICI, Reliance are some of the
companies/businesses that are using this technology as their users are allowed to make limited
purchases from their phones. For now, the users are mainly allowed to pay phone bills, utility bills,
book movie tickets, book travel tickets with their cell phones.

However, more services will be introduced in coming years. Security is one of the main concerns
of Mobile Commerce as it’s very important to offer secure transactions and this is the reason why
Mobile Commerce is still in the development phase in India.

For now, users are mainly allowed to do Mobile Banking i.e. to access the bank account with a
cell phone in order to pay the utility bills. With the current rate of development, users will be soon
allowed to purchase products, advertise, to take part in auctions and pay bills with the help of a
cell phone, while they are on the move.

E-commerce Service Providers

E-business service providers (eBSPs) are companies that help other companies use e-business
technology to improve operations. This might involve tasks like the design, construction, and
operation of a company's Web site or the streamlining of procurement processes for a business.
E-commerce solutions are the products and services that help a company conduct business
electronically. The range of available e-commerce solutions is vast, including those that allow
traditional businesses to design, create, and operate World Wide Web sites. Some solutions focus
on a specific problem. For example, a company selling its wares via a World Wide Web site might
purchase a bandwidth management solution from a firm like Packeteer Inc. in an effort to allocate
more resources to actual commerce transactions than to other applications. Similarly, an electronic
merchant who wants to improve the online checkout process for its clients might turn to a
specialized vendor like Virtual Cart for a shopping cart solution.

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 CHAPTER-4
Company Introduction

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 INTRODUCTION OF THE COMPANY

Mitashi as a brand has been in the Indian market since 2 decades, and is a transnational brand
serving various countries in South East Asia Middle East Asia and Europe.
A Subsidiary of the Mitashi Group, E-commerce 24 was founded by Mr. Manish Patil in the year
2012. It is India's first end to end Ecommerce Solution Provider. Pioneers in the Ecommerce
Industry in India. Their expertise and experience is in E-retail sector along with,
• Strong distribution network and warehouses
• Customers service
• Branding
• Marketing
Ecommerce24 create a unique platform wherein Retailers, Entrepreneurs, Brands and others can
start and manage their business in a more effective, efficient and profitable way. Their service
continues even after your e-store is set up. They help you run your business with their expertise in
Manages Services at affordable charges. They help you build business.

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Services Provided By E-commerce24 are:

BUILD A WEBSITE
Select from 100+ readily available Mobile friendly website designs or let their experts customize
the design for you. 200+ features & tools give you the flexibility to create and manage your online
stores via PC, Tablets & Mobile.

GET TRAFFIC
Ecommerce24 comes with intelligent apps which enhance your website on search engines & get
your products indexed on Google. Their third party tie-ups enable you to get your website listed
on product comparison websites, coupon websites and other platforms that help you get genuine
traffic on your website.

INCREASE SALES
Apart from selling on your own website, Ecommerce24 helps you to sell on various
platforms like Facebook, EBay, Amazon, Flipkart, Snapdeal and 25 other platforms. The in-built
tools also enable you to cross sell, up sell and promote your deals to existing customers as well as
visitors.

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LOGISTICS AND PAYMENT GATEWAYS
They have strategic tie-ups with Multiple Logistics & Payment Gateway partners which offer pre-
negotiated rates & premium services.

PRODUCT SOURCING
Their latest offering Quicksource24, India’s first product sourcing and drop shipping platform is
bundled with Ecommerce24. Get access to 80000+ products across 500 categories at wholesale
rates. You need not stock the products or ship them, they manage all the hassle for you.

FEATURES

1. Mobiles friendly Website Design

2. On the go website management
3. Managed services
4. Sales & Marketing tools
5. Facebook Store
6. Cross sell / up sell
7. Easy Banner Management
8. Signup with Facebook & Google
9. Create an affiliate program
10. Get listed on coupon websites
11. Google analytics
12. Bulk Upload
13. Dynamic Discount / Coupons
14. ADD HTML/ CSS / Java scripts
15. Live chat
16. 200+ Features to choose from
17. Hassle free Payment solutions
18. Automated Shipping tools

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MISSION
“Provide innovative solution to satisfy customer’s needs”.

VISION
“To be the most trusted brand”.

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 SWOT ANALYSIS

STRENGTHS
1. Customer service.
2. Tie up with ICICI bank and Google.
3. Pre negotiated rates with partners.
4. Provides Integrated Solution.
5. Mitashi Venture.
6. Unlimited services available in less cost.
7. Give end to end ecommerce solution.
8. Strong Research and Development.
9. More concerned about customer’s needs and less about profits.

WEAKNESS
1. Not so involved in social media.
2. Mobile App still not built.
3. Poor publicity.

OPPORTUNITY
1. Rapidly increase in internet users.
2. Online business is booming day by day.
3. Growth in rural areas and outside India.

THREATS
1. Change in customers taste.
2. Entry of new competitors due to growth in ecommerce industry.
3. New technologies coming up in fast pace.
4. Adverse government policies.
5. Buyer reluctant to convert into online business.

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 SERVICES PROVIDED BY E-COMMERCE INDUSTRY

Website Promotion:

A survey tells that about 80% of general visitors to web sites use the search engines to find the
information they are looking for. They don’t have all those website addresses which would help
them with the required information. So they find their requirements through search engines. And
because of this it is not only imperative that your site be listed in the search engines but even come
up in the top rankings.

In today's business world, Search Engine Optimization & Online Marketing Services plays vital
role in getting good search engine ranking. Creative Web Promotion helps in getting high search
engine ranking, search engine positioning, through its legitimate SEO strategies. We always update
ourselves with latest technologies and Search engine algorithms of major search engines and take
necessary measures to keep our clients' site on top position. Creative Web Promotion offers the
best methods of web site promotion and SEO services for your web site. Creative Web Promotion
is specialist in providing natural search engine optimization to both small and large internet
business companies to get their web sites highly ranked in the search engines(MSN, Yahoo,
Google) through "on-page" optimization and "off-page" optimization.

Electronic Payment Schemes:

Electronic payment schemes, a comprehensive index of electronic payment schemes and a brief
overview of their relationship to the framework is provided. The framework consists of two axes,
the levels of abstraction at which the protocol is analysed and the payment model considered.

Many businesses, including both the largest of corporations and small retailers, rely on electronic
payment system, provided in most instances by the major banks, to accept payments. Essentially
these systems provide companies with an efficient and secure means of collecting payments,
transferring value and managing cash flows.

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Security tokens, authentication techniques, access controls, confidentiality measures and data
transmission controls are all important considerations for electronic payment systems. An
understanding of the key components, underlying risks, key control features, and workable
procedures must be obtained before an audit can make recommendations to management about
safeguarding assets and payments in a cost effective and secure way. Similarly, management needs
to be informed if the auditor is to have any hope of having their findings and recommendations
accepted.

Mobile Application:

Mobile technology has become an integral part of everyday life - supercharged by consumer
adoption. There is a need for speed, and business must catch up. Requirements to access to
information anytime and anywhere has accelerated growth of mobile devices and increased
bandwidth, resulting in high demand for enterprise mobile apps to empower mobile employees.

SAP is the market leader in enterprise mobility and offers the combination of a cutting-edge mobile
device management (MDM) solution and a leading mobile enterprise applications platform
(MEAP).

Logistic Service Provider:

Logistic service provider’s management is the outsourcing of logistics operations to a third party.
Companies, or clients, use these third parties known as logistics service providers (LSPs) to
provide logistics services. LSPs may provide logistic services to one or more clients at any given
time. Clients may choose to outsource a portion, or all of their logistics services to one or more
LSPs. When sending information to an LSP, the client communicates the receipts or shipment to
the LSP, which then runs the transaction on behalf of the client. Therefore, the client may be a
buyer or seller for a transaction.

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A client typically outsources the following services to an LSP:

 Warehousing
 Inventory management
 Cross docking
 Transportation
 Freight forwarding

Search Engine Optimization (SEO):

SEO is short for search engine optimization or Search Engine Optimizer. Search engine
optimization is a methodology of strategies, techniques and tactics used to increase the amount of
visitors to a website by obtaining a high-ranking placement in the search results page of a search
engine (SERP) -- including Google, Bing, Yahoo and other search engines. It is common practice
for Internet users to not click through pages and pages of search results, so where a site ranks in a
search is essential for directing more traffic toward the site. The higher a website naturally ranks
inorganic results of a search, the greater the chance that that site will be visited by a user.

Website Development:

Web development refers to building, creating, and a maintaining websites. It includes aspects such
as web design, web publishing, web programming, and database management.
While the terms "web developer" and "web designer" are often used synonymously, they do not
mean the same thing. Technically, a web designer only designs website interfaces
using HTML and CSS. A web developer may be involved in designing a website, but may also
write web scripts in languages such as PHP and ASP. Additionally, a web developer may help
maintain and update a database used by a dynamic website.
Web development includes many types of web content creation. Some examples include hand
coding web pages in a text editor, building a website in a program like Dreamweaver, and updating
a blog via a blogging website. In recent years, content management systems like Word Press,
Drupal, and Joomla have also become popular means of web development. These tools make it
easy for anyone to create and edit their own website using a web-based interface.

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While there are several methods of creating websites, there is often a trade-off between simplicity
and customization. Therefore, most large businesses do not use content management systems, but
instead have a dedicated Web development team that designs and maintains the company's
website(s). Small organizations and individuals are more likely to choose a solution like Word
Press that provides a basic website template and simplified editing tools.

Affiliate Program:

An automated marketing program where a Web advertiser or merchant recruits webmasters to

place the merchant's banner ads or buttons on their own Web site. Webmasters will receive a
referral fee or commission from sales when the customer has clicked the affiliate to get to the
merchant's Web site Web site to perform the desired action, usually make a purchase or fill out a
contact form. The most common types of affiliate programs include

 Pay-Per-Click,
 Pay-Per-Lead,
 Pay-Per-Sale.

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 E-commerce Strategies

Micro-Target an Online Audience: E-commerce is basically about establishing a

“territory”: defining and designing a site to reach an audience with a common interest or
characteristic. Whatever your product or service, define your company’s niche markets that you
can penetrate online with specialized offerings.

Personalize: Site visitors are demanding one-of-a-kind experiences that cater to their needs and
interests. Technology is available, even to smaller players, to capture individual shoppers’ interests
and preferences and generate a product selection and shopping experience led by individualized
promotions tailored to them.

Create Content to Build Stickiness: Winning e-commerce deploys crowd-sourced content

to make a site “sticky” for potential buyers. Amazon attracted millions of consumers by
encouraging them to share their opinions of items like books and CDs. What is your strategy to
help potential customers for your products or services find you via Google? Use keywords and
Meta tags to raise your ranking in search results.

Tailor the Browsing Experience to Target Segments: Brand-appropriate site design

and well-structured navigation remain key ingredients for attracting an audience and getting them
to come back. Provide an enticing browsing experience across online platforms. If you want to sell
backpacks to college students, for example, use vibrant Colors with a flashy design to evoke a
sense of youth and adventure.

Integrate Across Channels: Create multi-channel offerings, enabling your consumers to

experience your brand consistently, whatever their shopping method of choice. But be sure that
products you are selling via different channels are sufficiently differentiated to account for price
differences.

IPER PGDM TRIM-III P a g e 29 | 52

Invest in Mobile: Mobile commerce is growing at a rate of over 130 percent annually. If you
lack a robust mobile commerce platform, you will see a dramatic drop off in revenue over the next
several years. To stay competitive, you need to offer mobile-accessible services such as delivery
status, real-time notifications, click-to-call, maps, and product information.

Tap into Logistics: To accommodate growth, you may need to tap the capabilities of third-
party logistics providers (3PLs) to manage a high volume of complex orders. Reverse logistics,
the ability to handle returns and exchanges quickly and economically, is becoming a key
differentiator. Same-day delivery and innovative fulfilment networks can be competitive
advantages.

Consider Subscription Commerce: Subscription commerce takes several forms. In the

replenishment model, a commodity item is sent to the customer every month. The discovery model
is more promising. It offers a subscription to a curated experience that delivers new, hard-to-find,
or customized items periodically to the customer’s doorstep.

Bypass the Middlemen: The Internet is enabling small companies to reach lots of consumers
quickly. Manufacturers, including factories in China, are increasingly willing to work with small
brands. They have discovered that small brands are more likely to introduce new products to
market because they are less constrained by shelf space limitations and complex supply chains.

Offer a Seamless Experience across Channels: Your sales will grow if you ensure that
product availability, promotional strategies, and brand experience are consistent across all
channels — whether online, in-store, or on a mobile device. Implement cloud-based supply chain
technology to gain visibility into your performance across all channels.

IPER PGDM TRIM-III P a g e 30 | 52

Curate a Proprietary Selection: Proprietary selection is a strategy that focuses on
“curating” a narrow and deep assortment of products in a particular segment. These sites make
merchandise feel exclusive due to the depth and originality of the assortment, the difficulty in
finding the products elsewhere, and the power of customer communities.

IPER PGDM TRIM-III P a g e 31 | 52

 Advantages to the businesses of online shopping

Reduced long-term costs:

Businesses do not need to pay for expensive shop premises, running costs (bills, insurance) and
sales staff. They may need to employ people to set up and look after the website, but this will
normally be cheaper.

Wider customer base:

Products can be sold to customers all over the country/world and not just in the area where the
shop is based.

Added Items:

Customers often impulse buy when online and buy extra items.

Competitors:

Companies can easily keep track of competitors and quickly change their prices to match.

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 Disadvantages to the business of online shopping

Cost:

Businesses will normally need to pay out a lot of money to have their websites professionally
designed and developed.

Staff with expertise:

The staff required to run the online business will need to have the expertise to manage the
website and keep it maintained.

Website downtime:

If the website goes down, no one will be able to purchase anything meaning the company are
making no money.

Personal touch:

No personal contact with the customers means it may be harder to get repeat orders.

Online Fraud:

A lot of online fraud, means there is a risk of losing money on sales.

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 E-commerce Problems

 Failure to understand the customer, why they buy, and how they buy. Even a product with
a sound value proposition can be a failure if customer habits, expectations, and motivations
are not understood. This potential problem could be mitigated with proactive and focused
marketing research.
 Failure to consider the competitive situation. You may be able to construct a viable book
e-tailing business model, but do you really want to compete with Amazon.com? This
problem can be mitigated with competitor, industry, and market research.
 Inability to predict environmental reaction. What will competitors do? Will they introduce
fighting brands or fighting web sites? Will they supplement their service offering? Will
they try to sabotage your site? Will there be price wars? What will the government do?
This can be mitigated with a 360 degree continuous environmental scanning system.
 Over-estimation of resource competence. Can your staff, hardware, software, and
processes handle the new strategy? Have you failed to develop new employee and
management skills? This can be mitigated with thorough resource planning and employee
training.
 Failure to coordinate. If reporting and control relationships do not suffice, one can move
towards a flat, accountable, and flexible organizational structure.
 Failure to obtain senior management commitment. This often results in a failure to obtain
sufficient company resources to accomplish the task. This can be mitigated by getting top
management involved right from the start.
 Failure to obtain employee commitment. The strategy is not well explained to employees.
Employees are not given the whole picture. This can be mitigated by training and by
creating incentives for workers to embrace the strategy.
 Under-estimation of time requirements. Setting up an e-commerce venture could take
considerable time and money, and failure to understand the timing and sequencing of tasks
can lead to significant cost overruns. This can be mitigated with critical path, critical chain,
or PERT analysis.

IPER PGDM TRIM-III P a g e 34 | 52

 CHAPTER-5
DATA ANALYSIS

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 Jabong Vendor List Calling

During my internship I was allotted with a task to call the vendors registered at Jabong and ask
and rate them on several parameters. In order to complete the task allotted to me I designed a
questionnaire and started gathering the response from the vendors. I took a sample size of 100
vendors in Apparels category.

Following is the Questionnaire and the responses given by the vendors:

Jabong Vendor list calling

Size of Organization *

 Small
 Medium
 Large

Have own web store *

 Yes
 No

Have shopping website *

 Yes
 No

Present in how many market places *

 1
 2
 3 or more

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Having Mobile application *

 Yes
 No

Social media presence *

 Yes
 No

Mobile responsive website

 Yes
 No

Having Facebook store *

 Yes
 No

Web store Developer

 In-house
 Outsource

Location *

These were the questions asked by the vendors and their responses are as follows.

IPER PGDM TRIM-III P a g e 37 | 52

 SIZE OF THE ORGANIZATION

12%

27%

61%

SMALL MEDIUM LARGE

 What is the size of the organization?

 The graph clearly shows that maximum are medium level enterprises are now penetrating
the ecommerce market places as they have sufficient resources to build and sell their
products in their own web store as well as in other market places.
 Second are the large format retailers which have good market presence offline and are now
moving towards online market. They have good amount of capital to invest and are
increasing and capturing the online market rapidly.
 Last comes the small level enterprises which are not as popular as medium or large level
enterprises but in order to make their presence registered they are moving towards e-
commerce market places.
 Out of 100 calls 61% were Medium organizations, 27% were Large and 12% were Small
in terms of size of organization.

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 OWN WEB STORE

NO
26%

YES
74%

YES NO

 Are you having your own web store?

 Most of the medium level and large level organizations have their own web store to
showcase their products online.
 Small enterprises struggle at this, most of the small vendors are not having their own web
store to showcase or sell their products, and they are just doing their business in other
market places.
 Out of 100 calls 74% of the vendors were having their own web store and 26% said no they
are not having their own web store.

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 SHOPPING WEB STORE

42%

58%

YES NO

 Is your web store is a shopping web store?

 A shopping web store is where all the company products are listed and you can directly
buy the products from company’s web store.
 Most of the large retailers and some medium sized vendors are currently having their own
shopping web store.
 Out of 100, 74 of the vendors were having their own web store.
 And out of that 74 vendors, 42% says yes they are having their own shopping web store,
while 58% said no they just have a simple web store not a shopping web store.

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 PRESENT IN HOW MANY MARKET PLACES
3%
19%

78%

1 2 3 OR MORE

 In how many market places you are selling your products?

 An online marketplace (or online e-commerce marketplace) is a type of e-commerce site

where product or service information is provided by multiple third parties, whereas
transactions are processed by the marketplace operator. Online marketplaces are the
primary type of multichannel ecommerce. For example- Amazon, Flipkart, Snapdeal etc
are the market places.
 Most of the vendors are present and selling their products in 3 or more marketplaces.
 78% of the vendors are present and selling their products in 3 or more marketplaces
including Jabong.
 19% of the vendors are present and selling their products in 2 marketplaces including
Jabong.
 Only 3% of the vendors are present and selling their products in single or marketplace that
is Jabong.

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 MOBILE APPLICATION
5%

95%

YES NO

 Are you having a Mobile Application?

 A mobile app is a software application developed specifically for use on small, wireless
computing devices, such as smartphones and tablets, rather than desktop or laptop
computers.
 As the concept of mobile application is new and getting popular day by day still the vendors
are happy to sell their products via own web store and marketplaces.
 Out of 100 only 5% of the vendors are currently having their own mobile application to
sell their products and services via mobile application.
 95% of the vendors are not operating their business based on any mobile application
software.

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 SOCIAL MEDIA PRESENCE

18%

82%

YES NO

 Do you have a social media presence in Facebook, Twitter or Instagram?

 Social media presence simply means having a page or handle on any of the social
networking sites.
 Social networking sites plays an important role in marketing your products as now a days
the craze of social media is at the top and therefore every one showcases their products
over social media and thus it gives the customers a sense of trust that the brand is having
its social media presence.
 As the above graph represents the value of social media presence, we can clearly see that
most of the vendors are having their Facebook page, twitter handle or any kind of social
media presence in order to get the customer attraction.
 Out of 100 vendors, 82% of the vendors are having social media presence.
 Only 18% of the vendors are not having any kind of social media presence.

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 MOBILE RESPONSIVE WEB STORE

41%

59%

YES NO

 Is you web store Mobile Responsive?

 Responsive web design (RWD) is an approach to web design aimed at crafting sites to
provide an optimal viewing and interaction experience—easy reading and navigation with
a minimum of resizing, panning, and scrolling—across a wide range of devices (from
desktop computer monitors to mobile phones).
 As now a days people are moving towards smartphone to shop rather than a desktop or
laptop thus a new trend in ecommerce or we can say m-commerce is the introduction of
Mobile Responsive web stores which gives the customers a fit to screen view of the web
store.
 Vendors are sensing the importance of mobile responsive web store as now people are
more comfortable in accessing the web store in their smartphones and tablets, thus to keep
the pace with the latest trends, they are trying to develop a mobile friendly website for their
customers.
 As we can see that out of 100, 41% of the vendors has adopted the mobile friendly website.
 But still 59% of the vendors are not having a mobile responsive website.

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 FACEBOOK STORE

12%

88%

YES NO

 Are you having a Facebook store?

 A Facebook Store is a showcase of a retailer's products within a custom app in a Facebook

Page Tab. They are an easy way for fans to browse, share and purchase your products
without having to leave Facebook. It allows retailers to promote to an enormous audience
without having to pay heavy expenses.
 Facebook store is relatively a new concept launched in year 2013 in order to provide
retailers a new way to showcase and promote their products in social media.
 As it is a new concept most of the vendors are unaware of the facebook store and what are
its uses and benefits.
 The graph clearly shows the less awareness and popularity of facebook store among the
jabong vendors.
 Out of 100, only 12% of the vendors are having a facebook store
 And 88% 0f the vendors are not having any idea what facebook store is and what are its
uses.

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 WEB STORE DEVELOPER

47%
53%

IN-HOUSE OUTSOURCE

 Who has developed your web store?

 An in-house project is a project developed inside one company and for its own benefits. In
other words, an internal project.
An example of an in-house project is an online web store developed inside the company
and to be used by the company.
 Outsourcing is an arrangement in which one company provides services for another
company that could also be or usually have been provided in-house.
 As we can see that vendors registered at jobong are using both the methods of web store
developers that is in-house as well as outsource.
 Out of total vendors having their own web store 53% have developed their web store by
outsourcing.
 Whereas 47% of the vendors have developed in-house.

IPER PGDM TRIM-III P a g e 46 | 52

 PREFERRED LOCATION

26%
32%

22%

20%

MUMBAI SURAT DELHI OTHERS

 Preferred Location

 The above graph represents the favorable and preferred locations in which most of the
vendors operate their business.
 As we can see that Mumbai is the most preferred location among the apparels vendors due
to ease of access to all the ecommerce services and good amount of customer base is also
a factor vendors are operating their business in this location. It’s also known as the Business
capital of India.
 The second most preferred location for apparels vendors is Surat due to the fact that most
of the clothing market is in Surat thus it provides them good quality of cloth and reasonable
rates.
 The third most preferred location among the appeals vendors is Delhi. Delhi is the capital
of India and thus provides ease of access in terms of all the solutions an ecommerce vendor
needs.
 Others includes the cities like- Bangalore, Jaipur, Ludhiana, Noida, Gurgaon etc.

IPER PGDM TRIM-III P a g e 47 | 52

 Commodity Distribution In Ecommerce
3% 2%

6%

10% 30%

15%

34%

Apparels & Accessories Electronics Books

Beauty & Personal Care Home & Furnishing Health Care
Baby Products

 Commodity Wise Distribution in Ecommerce.

 The above graph represents the category wise distribution of ecommerce portals.
 As we can see from the graph most of the ecommerce vendors that are selling their products
online are of Electronics category.
 The second most preferred branch is Apparels & Accessories.
 The third major category in this distribution is the selling of online books.
 Then comes the Beauty and personal care with 10%, followed by Home & Furnishing with
6% and then after Health Care and Baby Products with 3% and 2% respectively.

IPER PGDM TRIM-III P a g e 48 | 52

 CHAPTER–6
Findings

IPER PGDM TRIM-III P a g e 49 | 52

 FINDINGS

 During my study I found that most of the vendors just have their web store for name, that
is, it’s not even updated with their newest products available nor with their latest contact
number.
 Out of 100 vendors only 74% of the vendors have their own web store out of which about
20% of the web store domain is expired or the web store is hacked or is in updating mode.
 Majorly medium sized vendors are entering the market with about 61% of vendors’ falls
in medium sized organization.
 Vendors are less concerned about having their own shopping web store as only 42% of the
vendors have their own shopping store, other vendors are happy with their sales on different
market places like Flipkart, Amazon, Snapdeal etc.
 Out of 100 vendors most of them are already registered on several market places, about
78% of the vendors are registered and selling their products on more than 3 market places.
 Mobile application is a very new concept of ecommerce and thus very less vendors knows
and trusts on that, therefore only 5% of the vendors have developed their mobile
application.
 Social Media has emerged as a best possible medium to interact with a huge amount of
customer base in less amount of time.
 Mumbai, Surat, and Delhi are the top most preferred locations for operating a business in
apparels category.
 Electronics and Apparels are the top most preferred category among the Ecommerce
business (online retailing).

IPER PGDM TRIM-III P a g e 50 | 52

 BIBLIOGRAPHY

Books:

 E-Business & e-Commerce for Managers by Harvey M. Deitel, Paul J. Deitel.

 Electronic Commerce: The Second Wave, Fifth Edition by Gary Schneider.
 E-Commerce: Formulation of Strategy by Robert Plant.
 Realizing E-Business with Components by Paul Allen.
 Online Marketing for Your Craft Business, by Hilary Pullen.

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IPER PGDM TRIM-III P a g e 51 | 52

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