Chumbak Case Study

The journey of Chumbak: from mail tomall leveraging social media networksfor on-going dialogue with customersChetna Kudeshia and Arun Mittal

Chetna Kudeshia andArun Mittal are ResearchScholars, both at BirlaInstitute of Technology,Extension Centre, Noida,India.

Hi Vivek, Your company Chumbak has been selected, and youd be one amongst the threefirms worldwide that will be a part of the Google case study! This was the email thathusband and wife team Vivek and Shubhra Chadda got from the California-based companyknown as Enso, who was working with Google to make a case study video on how firmsworldwide are using Google services. They were looking for businesses that had acompelling business, web and a human story and Chumbak fulfilled all the requirements.However, this wasnt the case just a few of years previously when Shubhra and Vivek hadto sell their house for Rs 40 lakhs to raise seed capital for the venture. Chumbak whichstarted as an absolutely self-funded company without any financial liabilities was nowbeing banked by the big financial companies of India. But how did it become possible fora self-financed company with a meager investment to incur a place on a Google case studythat was being conducted jointly with Facebooks study about advertisement successstories? The had company broken even after three years of trading and was presentlypumping all of its profits into the business and the success of Chumbak can be attributedto social media. Social media was responsible for all aspects of Chumbak and its success,from brand identity to brand awareness, from campaigns to recruitments. What started asa store for magnet souvenirs now offers a line of products including apparel, accessories,stationary, home and style products.

IntroductionThe definition of business in India has changed from having a shop or manufacturing unitto discovering and creating a strong online identity for brands. One necessaryphenomenon is maintaining personal and steady relationships with customers. Even if abusiness is being set up or expanded through modern technologies, such as the Internet,the basis will always be the same better engagement with your customers. The onlydifference will be the medium of establishing that engagement and it is not surprising thatthis philosophy is widely being accepted by many small and medium-sized businesses asa function as their business strategy.

One drawback that small business face is-competition from medium-sized and largebusinesses. Additionally, there is very little funding at the disposal of these businesses forpromoting functions, which may greatly hinder a small businesses ability to reach anoversized audience. Unlike established businesses units that may already have a goodreputation, a large customer base and high brand recognition, small and medium-sizedbusinesses need newer, innovative avenues for building their brand, to reach out to everyprospective customer and creating better and strong relationships with the customers oncethe relationship has been established. Online promoting now plays a vital role in

Disclaimer. This case is writtensolely for educationalpurposes and is not intendedto represent successful orunsuccessful managerialdecision-making. The author/smay have disguised names,financial and otherrecognizable information toprotect confidentiality.

DOI 10.1108/EEMCS-09-2014-0209 VOL. 5 NO. 4 2015, pp. 1-24, Emerald Group Publishing Limited, ISSN 2045-0621 EMERALD EMERGING MARKETS CASE STUDIES PAGE 1

establishing small-scale businesses, and gives them the advantage of being able to runfavorably alongside their larger counterparts.

As per the Micro, Small and Medium Enterprises Development (MSMED), 2006 Act of India,a small or medium-sized enterprise (SME) is an one where the investment in plant andmachinery is more than Rs 25 lakh but does not exceed Rs 5 crore [22]. A significant17 per cent of Indias GDP come from its 40 million SMEs. A recent report by McKinsey saysthat the SMEs who are highly active on various social media avenues report double therevenue growth of those who are not using it. Out of the 40 million small entrepreneurs,around 500,000 SMEs, have a strong presence on social media (McKinsey Global Institute,2012). A report by Assocham and Comscore (2012) says that Internet users in India areexpected to reach between 350 to 450 million by 2015-2016, and this will act as a catalystin the growth of SMEs (Batra et al., 2012).

Social media statistics in India:

India has 243 million Internet users.

Facebook is the most browsed social network on social media with a large base of 100million users.

India has 33 million Twitter users.

LinkedIn has 26 million India users, of the total 300 million users.

Of the total 70 million total users of Pinterest, 5.5 million are from India [source: www.digitalinsights.com (accessed 9 August 2014)].

Small businesses in India are integrating social media in their marketing strategies forbetter collaboration, engagement and effective communication. From the companywebsites to the blogs, from social networking sites to the content communities, these socialtechnologies are helping the businesses to reach the most influential audience giving astronger brand impact.

On the same notion, in March 2010 Vivek and Shubhra Chadda started Chumbak, aBengaluru-based souvenir startup popular among the age group between 18 to 24 years.Vivek, the Chief Executive Officer and co-founder, and Shubhra Chadda, Head of Productand Design, had successful corporate careers before they founded Chumbak. Shubhrawas associated with KPMG, Nortel and NetApp before the launch of Chumbak and Vivekworked for various brands and had over 16 years of experience in retail marketing. Duringhis time with Tanishq, Vivek was an important part of its initial brand team responsible forthe companys turnaround. He was then associated with Platinum Guild International ashead of their south markets looking after retail marketing. He joined as the head of moderntrade marketing at Motorola, and worked in setting up Moto Stores across India. In his lastand final corporate role he was head of Partner Marketing at Sun Microsystems.

The ideaThe Chaddas loved to travel and each time they travelled, they would shop for souvenirs,especially fridge magnets. As they were usually on a small budget, they found that fridgemagnets made appealing and affordable gifts to friends and family back home. Whilevarieties of such products were available abroad, in India, buying mementos was restrictedto options such as pashmina shawls, marble miniatures of the Taj Mahal or brass elephants.Why dont we get these fridge magnets in India? Shubhra asked Vivek, and the duostarted searching for India-made fridge magnets but they could not find fun fridge magnetsin India and Vivek and Shubhra soon realized that affordable, well-designed and craftedproducts that could be used as accessories and gift items were in demand. Why dont westart making our own fridge magnets and add a bit of color and modernity to the market ofIndian trinkets? And thus came the idea of Chumbak! In 2004, the couple started doingsome initial research and, finally, in 2009, spent a good six months researching various

PAGE 2 EMERALD EMERGING MARKETS CASE STUDIES VOL. 5 NO. 4 2015

products. The company is inspired by and based on the couples love for India combinedwith their love for travel.

The creativity and cleverness of the company can be seen in the name of the companyitself, effectively merging Chumma (kiss), and Bak (stone). Vivek and his colleaguesagreed on the name Chumbak, which means kissing stones, more popularly known asmagnets. In April 2011 Chumbak started a dedicated e-commerce website (www.Chumbak.in). The company that did not its own store initially, today retails through 250stores across India and 100 stores in Japan. It also exports to the USA, the UK, Australiaand the Middle East, including the Virgin Megastore in Dubai, where Chumbaks phone andlaptop cases are also available. Chumbak is also in talks with big-box retailers such asAnthropologie and Pier 1 imports in the USA to include its India-themed souvenirs indifferent categories of home decor and apparel.

Design philosophy of chumbak productsChumbak products range from extraordinarily designed and crafted products, includingapparel and footwear, bags and wallets, souvenirs, key chains and jewelry. Its range alsoincludes phone covers, unique whistle charms and bracelets. It has a total of 38 categories,with between 400 to 500 products, which makes Chumbak impressive. Inspired by thevarious colors embedded in Indian culture and day-to-day events of an Indians life,Chumbak tries to put all this together in its products.

Vivek says:

We believe that our products should be recognizable nine out of 10 times without the logo andto achieve this we follow a very strict filtering process before any product hits the racks. That is

the design test all our products have to go through.

Chumbak is a leading design company and they take great care about how they look, fromtheir office to kiosks and to products. The originators, who conceived the workplacethemselves, settled on an open-plan arrangement office with only two encased rooms thatare implied for imaginative conceptualizing and gatherings.

Chumbak required the work environment to be open. We didnt require anyone to need tothump on ways to meet the boss, said Vivek. In spite of the fact that their organizationsitems have a tendency to be jumbled with pictures that summon India, such as the autorickshaw and dairy animals, the originators chose to be moderate in the workplace. Thecreativity of the founders is reflected in the Technicolor item tones emerging in the pink andblue seats and the blue-green pin sheets. However, style wasnt the sole concept on theirmind. Shubhra and Vivek additionally ensured that the workplace is energy efficient. Theorganization utilizes window air-conditioning systems that cool the area of workplace beingutilized at a given point of time. To scale back temperatures within the warehouse they havespinners on the roof and upside-down clear PVC panels let in light throughout the day. Wedont have to switch on the lights until around 6:30 at night. Our power bills are low, saidVivek.

FundingThe unique designs of Chumbak have attracted favors from private equity investors andfunds from venture capitalists. As the brand was being established and there wasacknowledgment from various areas, Chumbak got funding by Seedfund in 2012 and fromMatrix Partners. Rishi Navani, co-founder and managing director, Matrix India, says, Theentrepreneurs, Vivek and Shubhra, have a unique mix of design sensibilities and strongbusiness acumen (Rebecca, 2011). Revenues for Chumbak in 2010-2011 stood at Rs 1.25crore, however, online sales account for 15 per cent of revenues.

VOL. 5 NO. 4 2015 EMERALD EMERGING MARKETS CASE STUDIES PAGE 3

Business modelChumbak does its business through the hybrid model, i.e. online through its website(www.Chumbak.in) as well as offline by having more than 20 kiosks in the best malls all overIndia. Vivek says that 50 per cent of Chumbaks orders come through Facebook, organicsearches on Google and in-store visibility. Spotting trends and developing new productsalong those lines is a continuous process for Chumbak. The marketing strategy ofChumbak believes in removing old products, for which demand dips as a new product isintroduced. The entire planning, designing and production processes are in-house.

What made chumbak successful?Vivek believes, Its a volume game. After having loads of items to choose from, in the rangeof Rs 95-1,495. Chumbak recorded breakeven within the first three years of business. Inthe lifestyle products segment, the most important thing the company believes needs to bedone, is to know your customer and to implement this. Chumbak became very aggressiveon all social media channels in the initial years of its setup and is still following the samepractice. When Chumbak was founded, the company aimed to grow in terms of distributionchannels, through both online and multi-branded outlets. It achieved this in the first twoyears and grew the business.

Chumbak and social mediaChumbak as a brand has been built solely through social media marketing and word of mouthwith zero marketing spenditure. Social media is an important component of Chumbaks overallmarketing strategy and is integral to the overall company goals and strategy for attaining thosegoals. In a very short span of time Chumbak has made its presence known on almost all thesocial media platforms. Bootstrapped and with no budget for high-flying ad campaigns,Chumbak built all their brand-recall value by solely focusing on social media.

Chumbak is one of the first brands in India to merit a global Facebook case study. Byhaving a strong presence on Twitter, Facebook, YouTube and their own website, thecompany tries to be more open and transparent in their marketing communication. The goalis primarily to communicate and build relationships with consumers. Chumbak uses allthese avenues to communicate the same message but in different ways, depending on howengaged the consumers want to be. The use of social media in the company is a tacticalrather than a strategic decision. Chumbak uses a blog to comment on business issues,while also using Facebook, LinkedIn and Twitter to reach customers. The companymonitors its customers and analyzes comments to take a proactive approach inresponding and has steadily become a highly regarded startup brand on social media.

Their impressive fanbase on Facebook, Twitter, YouTube, Pinterest, Tumblr and Instagram,and the recent feature on the Google Business YouTube Channel, is proof that social mediahas as a charm for them (Table I). The firm is also doing quite well into corporate gifting, asa result of social media. Vivek says, Every single corporate order we have done has been

Table I Chumbaks presence on social mediaFacebook: number of likes 280,593Facebook: number of people talking about this page 4,100Twitter: number of tweets 5,306Twitter: number of followers 2,776YouTube Chumbak: subscribers 576YouTube Chumbak: video views 66,485YouTube Chumbak: number of uploaded videos 9Pins on Pinterest 168Boards on Pinterest 10

Source: Compiled by authors from www.facebook.com/twitter.com/youtubeChumbak/pinterest.com(accessed 28 April 2014)


because someone approached us. By being dynamic on all the social networking sites,Chumbak can consistently monitor what is said about the organization. Chumbak believesthat gone are the days when discussions about the brand used to take place on thecompanys own website only; now most of the discussions take place on third party sites,making it more difficult for the company to control and thus self-involvement of the firm isrequired to review and analyze all of these discussions regularly. Chumbak plans to shiftthe customer service to Facebook, as the most frequently asked questions can help severalcustomers at any one point of time. By observing on what is being said, the company cancustomize the material it wants to publish and this can definitely get the customersinvolved. Vivek says, The company knows that people are out in social media channelsseeking information and researching, and they need to use social media to influence theirbuying behavior (Table II).

Chumbak is using the following social media channels:

Blogs;

Social network sites such as Facebook;

Multimedia sharing (e.g. YouTube);

Micro blogs (e.g. Twitter);

Review sites/discussion forums;

Instagram; and

Pinterest (Figure 1).

Vivek, as the social media head, says that social media is meant for businesses such asChumbak and the company harnessed the opportunities that the Internet presented. Itutilizes it to team up with its customers, to enthrall its customers, to collect and track clientssurveys and to make announcements about diverse campaigns. In addition to thesefunctions, Chumbak additionally utilizes online networking devices for procuring betterlabor for its organization.

Convert your fans into finance using social mediaA facebook page to start withThe most famous social networking site, Facebook is a sublime stage to begin with(Tables III and IV). Best for the companies who are focusing on adolescent clients, asFacebooks client base is mostly in the age range of 18-25 years in India. This was thereason Facebook was the first social media tool with which Chumbak associated. After itslaunch, Chumbak had no PR or launch event just a Facebook page and a fully functionalweb store. Before Chumbak knew it, they had almost a 1,000 fans on Facebook, adding100 new fans every 10 days, all this in less than 100 days of launch (Table V). In March2010, Chumbak had 117,526 likes on Facebook, with 2,261 people talking about them,Chumbak now has more than 2 lakh likes on Facebook, the platform that helped make itwhat it is today:

One of our biggest advantages in 2010 was Facebook. The FB page back then was verydifferent, as it was not focused on advertising. So if I posted a product, people were checkingit out without us paying for it. That was great for a startup, says Vivek.

One of the fun, creative things Chumbak did was to encourage participation from its fans.Chumbak always believed that its communication would never be one way. They are veryconversational on this platform and the communication topics range from movies to rain inBengaluru to spontaneous quizzes to talking about social issues and many more subjects.Chumbak held a Weekend Contest every week to encourage fans to participate. Chumbakfounders have been using Facebook as an interactive forum to engage with the customerbase, treating them like a community of friends. Vivek says Interaction with customers is


Table II Survey of Chumbak customers on engagement through social media

Survey itemsScale

anchors Frequency (%)

I follow Chumbak on various social media sites because I findits products to be unique

1 4 2.72 7 4.83 21 14.34 51 34.75 64 43.5

I follow Chumbak on various social media sites because I wantto get my queries solved

1 8 5.42 23 15.63 33 22.44 44 29.95 49 26.5

I follow Chumbak on various social media sites because I wantto know its promotional schemes

1 5 3.42 13 8.83 27 18.44 51 34.75 51 34.7

I follow Chumbak on various social media sites because I wantto know more about it

1 3 2.02 11 7.53 17 11.64 47 32.05 69 46.9

I follow Chumbak on various social media sites to have directinteraction with the Company

1 6 4.1

2 13 8.83 28 19.04 46 31.35 54 36.7

When needed I notice the products of Chumbak more often asI am following it on various social media sites

1 8 5.42 8 5.43 31 21.14 40 27.25 60 40.8

I buy the products of Chumbak directly from its social mediaplatforms (Facebook) as I am following it

1 14 9.52 29 19.73 36 24.54 32 21.85 36 24.5

I repurchase the products of Chumbak when required, as I amfollowing it on various social media sites

1 10 6.82 18 12.23 30 20.44 46 31.35 43 29.3

I refer it to others, as I am following it on various social mediasites

1 4 2.72 9 6.13 30 20.44 34 23.15 70 47.6

Information shared on the platforms of Chumbak influences mybuying intentions

1 7 4.82 13 8.83 35 23.84 37 32.05 45 32.6

I prefer Chumbak over the other products in the same categoryas I am its follower

1 10 6.82 11 7.53 33 22.44 46 31.35 43 32.0

I think favorably about Chumbak after joining it, on varioussocial media sites

1 11 7.52 9 6.13 26 17.74 44 29.95 56 38.1

(continued)


Table II

Survey itemsScale

anchors Frequency (%)

I am more confident about Chumbaks quality after becomingits fan

1 8 5.42 12 8.23 19 12.94 42 28.65 66 44.9

I feel emotionally connected with Chumbak after following it onvarious social media sites

1 12 8.22 8 5.43 27 18.44 40 27.25 60 40.8

Source: Compiled by author from SPSS output

Figure 1 Customer engagement via social media channels

Community pages

Visuals (photos)

BlogsSocial media

Chumbak marketing Polls & games

Campaigns

User generated content

Source: Authors own findings

Table III How did you come to know about Chumbak?Source of information Frequency (%)

Facebook 116 78.9Company website 2 1.4Word of mouth 29 19.7Others 0 0Total 147 100.0

Source: Compiled by author from SPSS output

Table IV Which is the most preferred social media platform to interact with Chumbak?Source of information Frequency (%)

Facebook 127 86.4Company website 16 10.9Instagram 1 0.7Pinterest 1 0.7Other 1 0.7Total 147 100

Notes: Survey done through Chumbak Facebook fan page between February and July 2014. Thetotal number of respondents: 147 (where 1 strongly disagree, 5 strongly agree, scale compiledby authors from literature review)Source: Compiled by author from SPSS output


really spontaneous sometimes I impulsively announce discounts, theres nothing planned,he adds. One of the strategies to encourage participation is through contest questions thatare India-related, e.g. Which are your most memorable Bollywood movie dialogues andwhat would be a funny English translation? Instead of giving away products as prizes,Chumbak gives away discount vouchers, which are then redeemable at their web store.This not only ensures that the contest winners get something substantial in value, but it alsoconverts these fans into customers. Chumbak sees 30 per cent of its website traffic fromFacebook. The company uses its Facebook page to raise awareness of product lines,announce new product launches and crowd source ideas for new products. It alsoengages with its fanbase by showcasing new products under the Brand New! tab, givesfans sneak peeks of upcoming products, promotes special offers and discounts, holdscontests and enables customers to directly get in touch through the Contact us tab. Thecompany has seen a five-fold return on investment in total advertising spend withFacebook, a very high degree of repeat purchases among fans of their FB page and sees25 per cent of its revenue coming from Facebook users and fans.

Chumbak is a case study in the success stories of facebook advertisement page and itsays:

There is nothing else out there that gives you the ability to reach out to your target audience theway Facebook does. Whether its a product launch or a contest or even customer queries itshonestly the best marketing tool a startup like Chumbak can have (YouTube video of Chumbak).

ApproachChumbak uses Facebook as its sole marketing channel for building community ofChumbak-passionate users who love the brand. Chumbak created a Facebook page thatis very colorful, very suitable for its brand personality.

Content marketingDont use social media always to push your product as your customers want to listen tosomething closer to them, is what Chumbak believes:

Dont push your product/service.

Talk about what drives you.

Table V Increasing fan page engagement of Chumbak on Facebook

Engagement activity DateNo. oflikes

No. ofshares

Were online baby. . . 14 October 2009(joined Facebook)

5 3

Our products are ready 5 March 2010 0 0Sneak peek the boxer shorts!! 29 March 2010 42 11Youll have to tell your friends to likeChumbak from now on

21 April 2010 8 3

With so many of you liking 31 July 2010(Crossed 1,000 likes)

12 6

Introducing antasticFlipAwesome Women all over!!

Flops 14March 2011

153 44

Brand new Chumbak 5 October 2012 357 75iPhone casesAn amazing 20% off everything 3 April 2013 346 32Chumbak make the web work for them 1 July 2013 1,845 83Be awesome be responsible vote! 7 April 2014 1,785 13Celeberating 20 stores of Chumbak 31 July 2014 936 68

Source: Compiled by authors from Chumbak Facebook fan page


Design contests which people would really like to comment/reply on.

The moment you start looking at social media as a marketing tool and ROI questionspop up, youve lost the plot.

Be on social media to have fun and speak to people. Good recognition with good recallconsistent messaging is key [Source: Compiled by authors from www.socialsamosa.com/2013/09/chumbak-start-up-brand (accessed 13 March 2014)].

Content marketing helps to attract and retain customers by creating and publishingrelevant and valuable content. Content marketing follows the gut feeling strategy ratherthan using data. An interesting, useful and compelling content keeps you in the mind ofyour consumers. Through its Facebook page, Chumbak publishes the content that mattersto their fans. They believe that their fans are around to see stuff they like as well, instead ofthe stuff that is pushed down on their news feeds!

Real time marketingThe on the moment marketing gives marketers plenty of opportunities to craft real-timeresponses on Facebook, Twitter and Instagram. This makes social media unique assometimes it needs no planning and is spontaneous. By implementing small, real-timemarketing initiatives on an everyday basis Chumbak tries to connect with all its customersin all the situations, whether its festivals time or voting time in the country. Different festivalsand occasions in India give Chumbak plenty of lead way to craft real-time responses onFacebook. Through its creative post, Chumbak tries to connect with the life of its customerwith a personal touch which is many times very effective and conversational.

Social careSocial care is defined as how much the company is embracing the opportunity to providecustomer support using dedicated social media channels like Facebook, Twitter and blogs.The more your company can solve queries through these tools, the more you will beengaged with your customers in a better way. Facebook is the most used social mediaplatform for interaction by Chumbak to solve its customers queries.

Offer little moreA sales-orientated business can always consider offering product discounts as the bestway of promotion for people who like pages by installing the Coupons application. It is saidthat, if the average Facebook user has almost 150 friends, you only need to engage oneperson to reach the 150 more. Offering prizes, gift coupons and running competitions arealso an interesting way to attract customers and Chumbak continuously does this to appealto its customers.

Invest your time

The more you waste time on the social media the more you will be productive is whatChumbak feels about social media. Considering this Vivek and Shubhra visits thecompanys page up to six times a day. They say, It is one of the most effective ways toknow whats happening in your business because youre not controlling whats comingthrough; its in real time.

Keep on askingChumbak tries to involve with its customers in the most possible ways as per themcrowdsourcing is the best way to know your fans. They conduct polls, use apps such asSurvey Monkey to know what their fans like about Chumbak and what they want from thebusiness to do for them next.


Be consistent

Chumbak is very consistent about its presence on various social media channels.Chumbak tries to integrate them efficiently, and its Facebook page is thus embedded by allthe other social media platforms they are using including Instagram and Pinterest.

Recruitment

Social recruiting is the latest and most discussed recruitment method. Recruitment throughsocial media is not only cost-effective but it gives a company a wider choice and this isChumbak motivation for placing ads on Facebook.

Results 30 per cent of online revenue of Chumbak comes from Facebook, with a very high

degree of 25 per cent repeat purchases among page fans.

5X ROI on total advertising spend with Facebook.

30-40 per centof website traffic of Chumbak comes from Facebook (YouTube video ofChumbak).

Twitter

With around 2,776 followers and 5,306 tweets on Twitter, Chumbak does an excellent jobby maintaining replies, retweets and hashtagging. Vivek says that Twitter is a platform a lotof recommendations are made and Chumbaks customers can subscribe to itse-newsletters. Chumbak shares a range of quotes, articles and media that its followers loveto watch and share. With the magic of 140 characters Twitter connects Chumbak to itscustomers in real time, and it uses Twitter to quickly share information with the people thathave an interest in their product. Through Twitter it tries to assemble real-time marketintelligence and feedback and build relationships with its customers, partners andinfluencers. Chumbak contains an effective method of including links in nearly each singletweet, sharing its achievements. By including links of the varied interviews and videos ofYouTube featuring the company, Chumbak continually offers its followers something toengage in. Chumbak talk, share and post photos and this ultimately provides positive wordof mouth to the brand at nearly zero cost. Keeping your followers interested is essential formaintaining a strong social network, and this is why Chumbak uses their Twitter feed tokeep their followers up-to-date concerning new product arrivals and present offers. Twitteroffers Chumbak an easy way to reach an engaged audience in an effective manner and thecompany remains consistent with its tweets, using a variety of videos, links and images.

Pinterest

Pinterest has become a strong tool for Chumbak to garner time period insights, shareknowledge and influence content creation and amplification. With 10 boards being seriouson visual content, Chumbak tries to own a group of pleasantly colored pictures andmerchandise to feature on Pinterest. Through Pinterest, Chumbak tries to keep it simple forindividuals to find and share its products. Pinterest reworked the way Chumbak isconcerned with its content selling. By generating content on Pinterest on an everydaybasis, Chumbak can connect with a new audience by showing off their latest collectionsand a few digital art galleries through varied and simple visible classes. Chumbakundoubtedly has become a good place for shoppers to search out completely differentmerchandise for all of their desires and their Pinterest account lays out the products in avisually friendly style.

YouTube

YouTube, the first major video hosting and sharing site, helps Chumbak in engaging withits customers by uploading its attractive videos. These 10-minute videos uploaded can also


be embedded on other websites including social networks, blogs and forums. The successrate of the videos uploaded could be judged by the ratings, comments and through thenumber of times it has been viewed. At the moment, Chumbak has uploaded nine videoshaving 524 subscribers and 62,313 views. Some of the uploaded videos containinformation about Chumbak, some concern new arrivals through attractive animatedmovies having Chumbak product characters, some are doing real time marketing bygreeting the customers on various festivals and some are just for fun. Chumbak believesthat uploading just a commercial wont get a company nearer to its fans: a company has tobe creative and subtle to make individuals remark positively on its products.

InstagramChumbak uses Instagram to reach its customers in a fun way by taking pictures of itsproducts, daily activities and offers. By sharing their activities and products on varioussocial media sites it gets engaged with its customers in a better way.

GoogleChumbak uses their Google presence to post images that show the value of theirproducts rather than just tell it. It consistently uses Google for promoting their latestproducts as well for interactions with their potential, as well as existing, customers. Theregular posts on this social media tool help Chumbak get engaged with its fanbase.

The road aheadChumbak says it is registering about 300 per cent year-on-year growth. From initiallystarting with a two-member team, Chumbak now has a 70-member staff and its stores havean 80 additional members. Though a lot of Chumbaks designs are India-inspired, they dowell in the international environment and the company now also sells its products in Japanand West Asia. The brand has grown considerably in the past two to three years. With grossmargins varying across all categories, Chumbak is eyeing annual revenue of Rs 400-500crore in the next three to four years. Chumbak plans to have between 60 to 65 kiosks andlarger retail stores across malls and high streets by March 2015 and is planning to open a2,600-square foot store in Bangalore soon. Co-founder Shubhra says, One of the most funthings at Chumbak is working on new designs. At the end of the day, the thing that makesme most happy is seeing people using our products.

ChallengesKeeping up with the changing tastes of its young clientele is a real test for Chumbak. Thehybrid model its online, as well as offline presence has helped the company in keepingitself abreast with the fluctuations of the demand. The company wants to increase thecontribution of its online sales to its overall earnings to at least 30 per cent currently, onlinesales account for about 15 per cent of total sales and is, therefore, focusing on varioustechnological platforms. Furthermore the organization feels that, its essential for them tounderstand the type of dissemination to be the future standards offline or more of online.The third challenge for the organization is costly land; Chumbak is attempting to handle thisby opening more modest stores 150-200-square feet, rather than standard businessspaces of 1,000-square feet. The company currently has 20 stores and kiosks across fivecities, along with the presence in about 60 multi-brand outlets.

Mumbai, New Delhi and Bangalore contribute 60 per cent to Chumbaks total sales. Theother challenge for the company is to gain acceptability in emerging metros and smallertowns as it expands. It also needs to be aware of the competition. Companies such as IndiaCircus and Happily Unmarried which have a heavy fan following on social media platformssuch as Facebook are already making inroads and have similar design aesthetics.


ConclusionAccording to PWC (2014), 60 per cent of consumers use social media to follow, discoverand give feedback on brands and retailers. A recent survey by a USA-based consumerdata collection company Datalogix showed that 70 per cent of Facebook campaigns droveat least three times the return on investment while almost 50 per cent received a five-timereturn (The Economic Times, 2014b). A recent report from LinkedIn discovered that 80 percent of small-scale entrepreneurs are turning to online networking stages to produceincome and discover new customers. According to the report 73 per cent ofhigh-performing small organizations say they expanded using on online networking andsocial advertisements. Upon further examination, it can be seen that just 42 per cent ofsmall organizations encountering no development did likewise (LinkedIn, 2014). Thefast-growing small businesses report social media to be an effective marketing tool. Nineout of 10 says their social media efforts help maintain a company presence and identity,while 82 per cent says the platforms help generate new leads (LinkedIn, 2014).

The tremendous range offered by online networking has surprised small-scale businessesand made them more aspiring (Table VI). Companies have understood they require thestage of social networking to get by as well as to win. Chumbak is the dream ofhusband-wife duo Vivek and Shubhra Chadda and is currently a fruitful brand that wouldnot have been conceivable without online networking. Engagement through socialnetworking is basic for any business that wishes to be seen as modern and part of the newdigital age. Chumbak is wonderfully achieving this and has accepted the fact that, althoughthe spot and strategy for working changes with mechanical headways, eras and changingdecisions, one thing that never shows signs of change is the acknowledgment that thecustomer is always the king.

ReferencesAlbert, N. and Valette-Florence, P. (2010), Measuring the love feeling for a brand using interpersonallove items, Journal of Marketing Development and Competitiveness, Vol. 5 No. 1, pp. 57-63.

Assocham and Comscore (2012), State of e-commerce in India, available at: www.assocham.org/old-site/arb/general/Comscore_%20ASSOCHAM-report-state-of-ecommerce-in-India (accessed 4 April2014).

Batra, R., Ahuvia, A. and Bagozzi, R.P. (2012), Brand love, Journal of Marketing, Vol. 76 No. 2,pp. 1-16.

Cheung, C.M., Chiu, P.Y. and Lee, M.K. (2011), Online social networks: why do students useFacebook?, Computers in Human Behavior, Vol. 27 No. 4, pp. 1337-1343.

Chumbak on Instagram, available at: www.es-la.de-de.vi-vn.connect.facebook.com/Chumbak/app(accessed 22 March 2014).

Chumbak on Pinterest, available at: www.pinterest.com/chumbak (accessed 2 March 2014).

Facebook page of Chumbak, available at: www.facebook.com/Chumbak (accessed 20 February2014).

Jahn, B. and Kunz, W. (2012), How to transform consumers into fans of your brand, Journal of ServiceManagement, Vol. 23 No. 3, pp. 344-361.

Table VI Global rank of India in the social media sitesSocial networking sites % of visitors Rank of India

Facebook 7.9 3YouTube 8.4 4Twitter 6.1 12Pinterest 8.9 17

Source: Compiled by authors from www.alexa.com/topsites (accessed 9 May 2014)

Keywords:Facebook,Small business,Social media,Customer engagement,Chumbak,Social media marketing


LinkedIn (2014), Social media: a hotbed for SMB growth and fertile ground for financial servicesprospects, available at: http://marketing.linkedin.com/blog/social-media-a-hotbed-for-smb-growth-and-fertile-ground-for-financial-services-prospects (accessed 23 April 2014).

McKinsey Global Institute (2012), The social economy: unlocking value and productivity throughsocial technology, available at: www.mckinsey.com/.../media/mckinsey%20offices/.../the_social_economy (accessed 28 March 2014).

Park, N., Kee, K.F. and Valenzuela, S. (2009), Being immersed in social networking environment:Facebook groups, uses and gratifications, and social outcomes, Cyber Psychology & Behavior,Vol. 12 No. 6, pp. 729-733.

Pinterest Page of Chumbak, available at: www.pinterest.com/chumbak/ (accessed 15 March 2014).

PWC (2014), Social media: the future of customer relationships, available at: www.pwc.co.uk/.../social-media-the-future-of-customer-relationships (accessed 4 May 2014).

Rebecca, L. (2011), The woman entrepreneur at chumbak: Shubhra Chadda, available at: http://youtu.be/XluDONZFPss (accessed 2 March 2014).

Reitz, A.R. (2012), Online consumer engagement: understanding the antecedents and outcomes,PhD dissertation, Colorado State University, Fort Collins, CO.

The Economic Times (2014b), Bright & Airy: why kitsch design company Chumbak opted for an openplan office, available at: http://articles.economictimes.indiatimes.com/2014-03-01/news/47799637_1_office-space-chumbak-sun-microsystems (accessed 10 March 2014).

Wallace, E., Buil, I. and de Chernatony, L. (2014), Consumer engagement with self-expressivebrands: brand love and WOM outcomes, Journal of Product & Brand Management, Vol. 23 No. 1,pp. 33-42.

Further readingAbout Chumbak, available at: www.chumbak.com/about-chumbak.html (accessed 4 February 2014).

Alexa Ranking (2014), available at: www.alexa.com/topsites/countries;4/IN (accessed 4 May 2014).

Anandan, R. (2014), Indian entrepreneurs should stop worrying about failures the Economic Timeson mobile, available at: http://m.economictimes.com/opinion/guest-writer/rajan-anandan-google-india-vp-md-indian-entrepreneurs-should-stop-worrying-about-failures/articleshow/msid-31911842.cms (accessed 23 March 2014).

The Chumbak blog Tumblr, available at: chumbak.tumblr.com/post/56327116404 (accessed 19March 2014).

Chumbak on Google, available at: www.chumbak.com/faq.htmlChumbakGoogleplus.google.com/100694205198881886837 (accessed 19 March 2014).

Cool Age (2013), Chumbak: from fridge magnets to business magnates, available at: www.coolage.in/2013/10/16/chumbak-story-of-the-kissing-stones/ (accessed 1 February 2014).

The Enso Blog (2013), The web is working for global small business, available at: http://blog.helloenso.com/post/52915582314/the-web-is-working-for-global-small-business (accessed 2 March2014).

Entrepreneur India (2013), Seed fund invests over $2 million in Chumbak, available at: http://entrepreneurindia.in/thebuzz/specialreport/seedfund-invests-over-2-million-in-chumbak/18421/ (accessed4 May 2014).

Huang, E. (2013), Chumbak saw a diamond in mere rocks, now in India and Japan, available at:http://e27.co/chumbak-saw-a-diamond-in-mere-rocks-now-in-india-and-japan/ (accessed 24 April2014).

Hubspot (2013), Companies rocking on social-media, available at: http://cdn1.hubspot.com/hub/53/101-Companies-Rocking-Social-media-HubSpotv5.pdf (accessed 1 April 2014).

IBNLive (2013), Indian startup Chumbak exploits the web to create a niche market, available at:http://ibnlive.in.com/news/indian-startup-chumbak-exploits-the-web-to-create-a-niche-market (accessed20 February 2014).

Kareem, R. (2013), Kitschy kitschy bang bang, available at: www.thehindu.com/features/metroplus/nxg/kitschy-kitschy-bang-bang/article4458873.ece (accessed 3 March 2014).


Karol and Karol (2014), Survey: hyper growth small businesses spending more on social media,available at: http://smallbusiness.foxbusiness.com/entrepreneurs/2014/02/19/survey-hyper-growth-small-businesses-spending-more-on-social-media/ (accessed 10 March 2014).

My Bangalore (2010), Chumbak, Indian souvenir, kitschy products, fridge magnet quirky designs,available at: www.mybangalore.com/article/0810/chumbaks-kitschy-souvenirs-truly-represent-india-.html (accessed 4 April 2014).

Pagemodo (2014), Facebook is still king among small business owners [SURVEY], available at:www.pagemodo.com/blog/facebook-king-small-business-owners- (accessed 25 March 2014).

PWC (2013), In-store shopping still center of shopping experience, available at: www.pwc.com/.../pwc-annual-survey-of-online (accessed 6 May 2014).

Reserve Bank of India Report (2014) available at: www.rbi.org.in/scripts/FAQView.aspx?Id84(accessed 3 February 2014).

Social Samosa (2013), Why is chumbak a lovable start-up brand on social media?, available at:www.socialsamosa.com/2013/09/chumbak-start-up-brand-social-media/ (accessed 2 February 2014).

Success story of Chumbak, available at: www.facebook.com/advertising/success-stories/chumbak(accessed 20 February 2014).

The Economic Times (2011), Chumbak: Shubhra Chadda pull in profits by quirky India-centricsouvenirs, available at: http://articles.economictimes.indiatimes.com/2011-11-28/news/30450424_1_fridge-magnet-souvenirs (accessed 11 March 2014).

The Economic Times (2013), 5 women entrepreneurs who have defied myths & handicaps, availableat: http://economictimes.indiatimes.com/slideshows/biz-entrepreneurship/5-women-entrepreneurs-who-have-defied-myths-handicaps/slideshow/19124951.cms (accessed 2 April 2014).

The Economic Times (2014a), Small companies market themselves on Facebook and seal deals viaWhatsApp, available at: http://articles.economictimes.indiatimes.com/2014-02-5/news/47670597_1_whatsapp-facebook-page-mark-zuckerberg (accessed 2 May 2014).

The Hindu Business Line (2014), Quirky, magnetic, very Indian they are the couple who sold a houseto live their entrepreneurial dream, available at: www.thehindubusinessline.com/features/blink/work/quirky-magnetic-very-indian/article5757185.ece (accessed 3 April 2014).

Tribune India (2013), The tribune, Chandigarh, India trends, available at: www.tribuneindia.com/2013/20131102/trends.htm (accessed 4 April 2014).

Twitter page of Chumbak, available at: twitter.com/Chumbak (accessed 15 March 2014).

Your Story (2013), Lessons for entrepreneurs from Chumbak an attractive Indian venture, availableat: http://yourstory.com/2013/02/lessons-for-entrepreneurs-from-chumbak-an-attractive-indian-venture (accessed 1 March 2014).

YouTube video of Chumbak, Chumbak makes the web work for them, available at: http://youtu.be/1EhsNFOA9ew (accessed 19 February 2014).


Exhibit 1. Chumbak product range based on an Indian theme

Figure E1


Exhibit 2. Studio of Chumbak

Exhibit 3. Hiring for Chumbak through Facebook

Plate E1

Figure E2


Exhibit 4. Real Time marketing through Facebook

Exhibit 5. Content Marketing through Facebook

Exhibit 6. Crowdsourcing through Facebook

Figure E3

Figure E4

Figure E5


Exhibit 7. Social care through Facebook

Exhibit 8. Chumbak on Pinterest

Exhibit 9. Chumbak does the subsequent to win back its customers throughPinteres

Quick note on ecommerce deliveries: Hello just wanted to personally update you on some of thedelivery issues weve been having for the past couple of days at Chumbak. Some of your ordershave been delayed. So I thought Id write a quick note to tell you why in the past couple of monthsweve been seeing much larger traffic and increased orders on Chumbak.com. And for that, onbehalf of all of us at Team Chumbak, Im sorry. I truly am. We have ramped up stuff and you wonthave any more cause to get stressed. Heres looking forward to crazy loads of smiles and lovefrom you guys. Vivek (the guy who makes the whoosh sound, Team Chumbak).Source: Screenshot (Chumbak Facebook fan page)

Figure E6

It has Pin It button to its website.It uses well-lit, high resolution photograph of its merchandise to draw in repines.Create Pins around festivals, events and holidays to draw in Pinners longing for specific content.Feature common pins across the digital channels to inspire Pinners to shop for your merchandise.Source: Compiled by authors from Chumbaks Pinterest wall


Exhibit 10. Sharing photos through Instagram

Exhibit 11. VariablesSocial Media Engagement (adapted from Cheung et al., 2011; Park et al., 2009; Jahn andKunz, 2012):

To know more about it.

To have direct interaction with the company.

To know about its promotional schemes.

To get my queries solved.

I find its products to be unique*.

Brand attachment (adapted from Batra et al., 2012; Albert and Valette-Florence, 2010;Wallace et al., 2014):

I feel emotionally connected with the brand after liking it its social media platforms.

Following this brand makes me happy.

Liking this brand me satisfied.

I notice it more often.

Purchase intention (adapted from Batra et al., 2012; Jahn and Kunz, 2012; Reitz, 2012):

I purchase the same brand when required as I follow it on its social media platforms.

I buy its products directly from the social media avenues (e.g. Facebook) whenrequired*.

I intend to purchase this product/brand in the future also.

I am loyal customer of this brand as I follow it on its social media platforms.

Word of mouth (adapted from Batra et al., 2012; Wallace et al., 2014; Jahn and Kunz,2012):

Figure E7


I often talk positive about this brand because I am following it on social mediaplatforms.

I recommend this brand to friends and family.

Information shared on the fan page of the brand influences my buying intentions*.

I introduce this brand to other people.

*Items developed newly within the study.

Corresponding authorChetna Kudeshia can be contacted at: [email protected]


AbstractTitle The journey of Chumbak: from mail to mall leveraging social media networks for on-goingdialogue with customers.Subject area Marketing.Study level/applicability Undergraduate and postgraduate management students.Case overview Small scale business in India employ almost 30 million people contributing 50 percent to industrial and 45 per cent to the total exports of the country. The rapid growth of internet hasmade it possible for the small scale start ups to reach its existing and potential customers withoutinvesting much. The case highlights this fact describing the journey of Chumbak a small scalebusiness from an unknown brand to the foremost favourable funky product of India. Through this casethe authors have tried to relinquish a synoptic view of how Chumbak has used varied social mediaplatforms, to engage and connect with its customers. A survey of 147 customers of Chumbak customersshows that engagement through Facebook fan page of Chumbak positively impacts its purchaseintention, brand image and leads to positive word of mouth.Expected learning outcomes The case highlights numerous dynamics of social media marketingand shows the recent social media promoting methods being used by the little scale businesses toascertain on-going dialogues with their customers. The Case would facilitate the scholars in learninghow these platforms may be used alone as a promotional tool not solely to reach the purchasers butadditionally to type a higher complete awareness of the products with reference to Chumbak. The caseexplains that communication happening at varied social media platforms got to be tailored consideringthe sort of users.Supplementary materials Teaching notes are available for educators only. Please contact yourlibrary to gain login details or email [email protected] to request teaching notes.Subject code CSS 8: Marketing


The journey of Chumbak: from mail to mall leveraging social media networks for on-going ...IntroductionThe ideaDesign philosophy of chumbak productsFundingBusiness modelWhat made chumbak successful?Chumbak and social mediaConvert your fans into finance using social mediaA facebook page to start with

ApproachContent marketingReal time marketingSocial careOffer little moreInvest your timeKeep on askingBe consistentRecruitment

ResultsTwitterPinterestYouTubeInstagramGoogle+

The road aheadChallengesConclusion

ReferencesExhibit 1. Chumbak product range based on an Indian themeExhibit 2. Studio of ChumbakExhibit 3. Hiring for Chumbak through FacebookExhibit 4. Real Time marketing through FacebookExhibit 5. Content Marketing through FacebookExhibit 6. Crowdsourcing through FacebookExhibit 7. Social care through FacebookExhibit 8. Chumbak on PinterestExhibit 9. Chumbak does the subsequent to win back its customers through PinteresExhibit 10. Sharing photos through InstagramExhibit 11. Variables

Chumbak Case Study

Documents

Transcript of Chumbak Case Study