EDITION II

Ab Sirf Online

WHAT IS “AB SIRF ONLINE”

When products are sold ONLY online, through retailers like Flipkart.

ONLINE RETAIL SHARE OF SALES

COMPETITIVE ADVANTAGES

Adds to seller’s brand Image

Higher Brand Visibility

Remove Intermediation• Low price to customer• More profit margin to

retailer

FACTORS CONTRIBUTING TO THE GROWTH OF ONLINE RETAILING IN INDIA

Increasing broadband Internet (growing at 20%

MoM) and 3G penetration all over the country

Rising standards of living and a burgeoning,

upwardly mobile middle class with high disposable

incomes

Availability of much wider product range (including long tail and Direct

Imports) compared to what is available at brick and mortar retailers

Busy lifestyles, urban traffic congestion and lack of time for offline

shopping

Lower prices compared to brick and mortar retail

driven by disintermediation and reduced inventory and

real estate costs

FACETS OF ONLINE RETAIL

GOOD!

Higher sales & profit

Reduction in distribution cost

Building Image of Motorola

Flipkart sells more than 1 million Motorola phones in

less than 5 months- Times of India

BAD!

Pets.com was the first virtual pet

store, launched in 1998

Faced problems:1) Differentiating from competitors

2) Selling low margin food with

high shipment costs

Consumers preferred to shop at

local stores. Website shut down

in 2000

UGLY!

Beacon was launched in 2007, to track Facebook users’

activities on outside partner websites

That information was shared on

Facebook and the users’ newsfeeds violating user’s

privacy

Due to multiple lawsuits, Facebook

was forced to discontinue that service in 2009

You are Mr. Karan Mehta, Brand Manager of Hiro Cycles. The Board of Directors have decided that a new range of mountain bicycles, MX-1, will be launched in November, 2014. The MX-1is a first of its kind mountain bicycle and comes with 18 gears, odometer and speedometer. It can be used on road and off road as well.The Board has also decided that MX-1 will be sold only online. You are required to come up with a marketing plan for the same.

CASE STUDY!

Mail the solution to smark@sims.edu by 31st August, win attractive cash prizes