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    White Paper

    On

    Amazon’s Diferentiation Strategy

    in India

    (Operations Case)

    Submitted by

    Team Deters! II" Ahmedabad

    An#ur $oya%Puneet Sri&asta&a

    Sudarshan S'aminathan

    Amazon Confdential Team Dexter- IIMA Page 1

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    Ana%ysis o* Amazon’s +urrent ser&i+es and oferings in IndiaBased on the secondary research and in depth interviews of customers and experts, we have reached following

    inferences:

    Product Categories:  Amazon is mainly present in Books and Media, some parts of Consumer Electronics, Bay,

    !oys, "atches, #ewellery and $ealth % &ersonal Care' $owever competitors like (lipkart and )ndia azaar have

    many additional categories like Apparels, $ome and *itchen, +ports and Accessories etc' Because of less categories

    Amazon has relatively less traffic coming on its platform' )t also loses on the cross selling opportunities'

    Selection: )n the categories in which Amazon is present, Amazon has vast selection of products which is comparale

    to )ndustry leaders like (lipkart and larger as compared to players like )nfieam, +napdeal etc' (or e'g' Amazon has

    close to -. products in moile category while )nfieam which is an older player hardly has /-. products in this

    category' (or almost all categories, Amazon carries products in all price ranges and contains oth premium and

    normal rands' !his provides customers a much wider variety to choose from'

    Price and Promotions: !he prices are comparale and competitors often engage in price wars' Almost all the

     players give discounts, promotions, undling offers etc' $owever as Amazon has a marketplace model, it does not

    have control over prices unlike #aong or Myntra which follow a retail model

     Delivery: Amazon0s delivery time is slightly more in some pin codes as compared to other competitors' )t takes / to

    1 days in ma2or cities and - to 3. usiness days in other smaller cities' 4ther competitors like (lipkart have

    relatively faster delivery' !his may e attriuted to the fact that currently Amazon has warehouse only in Mumai

    whereas (lipkart has warehouses in multiple cities' $aving fewer warehouses increases the transportation cost'

    Amazon provides free shipping on products aove 5s166 7currently all deliveries are free8 while this cutoff is higher 

    for some other players like Myntra 75s 9668

    Customer Service: Amazon has commendale customer services and provides email, chat and phone options'

    (lipkart and #aong have call and mail option while hardly any player provides chat option' !his makes it more

    convenient for the customers if they face any issues while uying products online'

    Item Availability: Most of the items on Amazon'in are )nstock while it is not so for some other players like

    )nfieam or +napdeal' !his gives the customers the confident that the product would reach on time

    Customer Returns: Amazon has ;. day full refund policy under A< guarantee which is at par with other 

    competitors' $owever return policies are more lieral for Amazon and they do not re2ect customer returns on the

     asis of reasons given y consumers for returning the product' )ndian customers value easy returns a lot'

    Advertising: Amazon currently deploys very few advertising channels 7mainly social media8' 4ther competitors

    like Myntra, #aong, (lipkart etc do extensive marketing in form of campaigns, != commercials, social media

    marketing, print advertisements, distriuting coupons etc'

    Ease of use: Amazon scores a notch higher on we features like searchaility, navigation etc' as compared to other 

    sites' Moreover in the existing categories, Amazon provides comprehensive product information and detailed

    information aout sellers too' As of now, some of the products on Amazon'in do not have cash on delivery facility

    which is valued very highly in )ndia' #aong0s card payment facility at home provides a lot of convenience to

    customers which Amazon and other players lack'

    !he perceptual map depicting relative position of Amazon in the minds of the consumer as compared to other e

    commerce players is shown in Appendix 3

    Amazon Confdential Team Dexter- IIMA Page 2

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    , "ar#et -esear+h and Ana%ysisObjective:  )dentify key consumer segments in the online retail market' 5ecognize their inherentcharacteristics, current arriers to using online retailing and understand what they look for in the same'

    .p%oratory -esear+h)n an effort to gather deeper understanding of consumer ehavior in online purchasing, we spoke to experts7professors at ))MA8 and took indepth interviews of ; customers' 4n this asis of the information gathered through

    these mechanisms, we created a >uestionnaire capturing information on:

    a' Recent experience: !ime since last purchase, order value, purchase fre>uency, diversity in categories of 

    items purchased and time to take a purchase decision'

     ' Driver to purchase online: ?ower prices, enefit of purchasing from home, variety in choice'c' arriers: !ime of delivery, inaility to see the product efore purchase, fear of receiving damaged product,

    complexity of the purchase process'd' Demographics: Age, occupation and gender'

    Con+%usi&e -esear+h

    *eeping the primary o2ective of segmentation in mind, we performed a cluster analysis of a diverse sample of 

    respondents (  Appendix 4 ).  "e performed cluster analysis on ehavioral and psychographic >uestions and then

     profiled those using demographics' !he Agglomerative Hierarchical Clustering Technique was used and 1 clusters

    were selected ased on the dendrogram as shown in the appendix' !he following tale summarizes the inferences

    generated from the cluster analysis'

    Segment Consumer Characteristics !a"or Constituents #eed

    Engagers

    !echnically savvy and highly

    active in all online forums'

    @enerally the first ones to try

     products in each category'

    !hey take the lead in guiding

     people through their feedacks

    and rating and drive sales'

    !hey are the loyal customers

    oung working

     professionals 7/;;-

    years8 who are also

    experienced )nternet

    sers

    !hey want to see new additions on the

    site and continuously updated y all

    the new products' !hey are looking for 

    a holistic experience and end to end

     product solutions' !horough product

    description and wide diverse portfolio'

    !hey want fast delivery

    Conservatives

    5isk averse' ?ook for reviews,

    guarantees, return policy,

    seller ratings and rand' !hey

    want surety in whatever they

     uy

    Middle aged people

    who are relatively

    newer to ecommerce

    sites

    +eek trust through critical reviews

    from experts in the relevant domain'

    Also re>uire overall satisfaction score

    of other consumers' !hey want Cash

    on elivery and easy return policy

    argainers

    &rice sensitive' !hey scout

    throughout the online to find

     est possile deals and may

    also postpone the purchase in

    anticipation of etter deals

    +cattered across

    demographics'

    &redominantly

    Middle class people

    and students

    =ery good comparison tools that allow

    them to get the est deal in the market'

    ?ook for attractive promotions

    Simplifiers

    @enerally not tech savvy'

    on0t explore across too many

    online sites' =isit wesites

    only when they feel a need of 

     purchasing'

    Middle age "omen

    and @enerally people

    aove -. years age

    !hey want the entire purchasing

     process to e as simplified as possile'

    A user friendly online platform which

    aids them in taking >uicker decisions

    and gives recommendation on est

     products

    Amazon Confdential Team Dexter- IIMA Page 3

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    Knowledge

    Persuasion

    Deision Proess Deli!er"

    Simp%i/ers#OldAged

    Customers$

    Simp%i/ers

    #MiddleAged

    %omen$

    0argainers

    Prie&ensiti!e

    Conser&ati&es'is(

    a!erse

    .ngagers

    Ati!eusers0uying

    $uideA sim)le*

    user-+riendl"guide toassist inseletiono+ an a)t)rodut,

    Appro&a%

    System&ee(

    a))ro!alon

    )roduts+romlose

    +riendsand

    relati!estrougsoialmedia

    1appy1ours

    ./disounton selet)roduts0etweenmidnigtand 3 AMe!er"da"

    ,

    Open0o

    De%i&ery

    'edueanxiet"

    o+)a"ing

    +ordamaged)roduts,

    "obi%e0an#ingPaymen

    tailit" o+

    )a"ingtrougmo0ile

    0an(ingin lieu o+

    COD,

    O'n Transport Team2 Amazons own dediated teamres)onsi0le +or end mile deli!er"

    A++e%erated De%i&ery Ser&i+e2 &)eialized deli!er" ser!iewitin 1 to 2 da"s at a )remium

    "obi%e 3ans2 Pro!ide ome tr" on o)tion +or ategories wereft is im)ortant

    4o+#er system Customers an )i( u) orders 0ased on teiron!eniene +rom a osen )lae

    Ad&ertising T4 Commerials* &oial Media* Print Media and5ill0oards

    -e*erra% In+enti&e System2 Customers re+erring frst time0u"ers to Amazon,in will 0e gi!en an inenti!e

    Persona%ized $reeting Cards2 Mailing )ersonalizedards6small gi+ts along wit te )rodut

    3irtua% -ea%ity2 Tool to !irtuall" use and ex)lore te )rodut0e+ore )urase,

    Primar" segments tat get st"mied in a s)eif stage o+ teentire )urase )roess

    'eommendations +or ea segment to aid tem in om)letingte entire )urase )roess

    'eommendations targeting all te segments

    5 Segment Oriented Diferentiators!he entire chain of activities right from awareness of an ecommerce wesite, purchase of a product through it to its

    final delivery can e classified into five ma2or steps: *nowledge, &ersuasion, ecision, &rocess and elivery' !he 1

    ma2or segments identified i'e' argainers, engagers, precautioners and simplifiers are usually stuck at different stages

    of the purchase process' !he following chart explains how some effective recommendations will assist the trapped

    segments to move further along the chain'

    !he recommendations specific to each segment are explained in detail in  Appendix 1

    $% -e+ommendations targeting a%% the segments

    a& '(n )ransport )eam for Delivery of ProductsAlthough Amazon has started its own transport service 7A+!&?8 7http:DDindia'amazon'comD4thers'html8 ut it is at avery nascent stage' "e recommend extending this service first to top metros and then later on depending on thescale to top -; cities 7!en ?akh plus population towns8 of )ndia'

    Ensure faster product returns and etter customer servicing through etter control over the end mile delivery to its

    customers' !hus, it is in line with Amazon0s core principle of FCustomer 4session0' Amazon'in currently lacks there>uired scale for providing irect !ransport services' $owever, etter customer servicing and launch of customer 

    friendly schemes through it would lead to increase in orders, resulting in economies of scale and lower 

    Amazon Confdential Team Dexter- IIMA Page 7

    http://india.amazon.com/Others.htmlhttp://india.amazon.com/Others.html

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    transportation and delivery costs in future' !hus, it is in line with Amazon0s philosophy of F?ong !erm (ocus0' +ome

    of the other enefits would e:

    Increase in brand a(areness : 4wn employees responsile for end mile delivery would help to increase

    Amazon0s randing 4pen box return policy: Allows customer to return to inspect product for any damage or malfunction

    oo* your Slot: Customers can e delivered products ased on their convenient times under the optionCredit or debit card payment facility: Customers can make payments through card at the time of delivery

    +igher discounts to customers: Currently, the courier company charges extra cost for providing C'D

    facility and the cash payment to Amazon is also delayed' elivery through our own transport team would

    eliminate these extra costs and also reduce cycle time' !he extra costs saved could e transferred toconsumers as enefits'

    'perations Strategy and Potential Challenges for this differentiation

    "e have to setup distriution centers in ma2or cities from where the transport team can take the products for end

    mile delivery' (or immediate returns under open ox return policy, reverse logistics has to e planned y !ransport

    and warehouse team' epending on the reason of return, the product has to either go ack to C 7if it was a wrongshipment8 or main warehouse 7if it was defective8 from where it would e sent ack to seller'

    Amazon would have to incur huge costs in hiring new employees and setting new distriution centers' $enceachieving economies of scale would e must to make this service sustainale' Also, the customer service team has toimpart ade>uate training to the employees who make final delivery so that they can engage well with the customers'

    (or the Gook your slotH scheme, the warehouse and transport team at individual Cs need to keep track of the time

    slot in which the product needs to e delivered'

    b& Accelerated delivery service(or those customers who are looking for faster delivery options and are willing to pay a slight premium for it' (aster 

    delivery leads to higher customer satisfaction' Customers would e ale to get the products within /1 to 1 hours,which is rarely provided y any other ecommerce player in )ndia' )n the )ndian scenario, where orders get delayed

    very often, this will e a differentiating factor'

    Promotion strategy for the differentiation

    se advertisements and promotions to create a uzz aout its campaign G4rder and 5eceive in a dayH' (irst deliveryto every registered user will e made free of extra charge under this accelerated delivery service'

    'perations Strategy and Potential Challenges for this differentiation

    ?aunching of Accelerated delivery service would go hand in hand with the estalishment of irect !ransport team'

    )n order to have such tight control over delivery time, Amazon would need its own transportation team as we cannot

    rely on courier services' Moreover Amazon has to open more warehouses and distriution centers in many of the

    ma2or cities in )ndia

    Because of poor road infrastructure in )ndia, delivering products within / days can e difficult to achieve in smaller 

    cities for the transportation team' Also, uncontrolled traffic and congestion in many )ndian cities can also pose a

    challenge' !he warehouse needs to differentiate products ordered for normal and accelerated delivery, so thataccelerated delivery items can e given preference for picking, packing and other outound operations'

    c& !obile ,ans=ans containing the more popular and fast selling products will reach customer0s doorsteps if they opt for this' !his

    initiative can e started in top metros and ased on the response can e expanded to top -; towns 7!en ?akh &lus

     population towns8' !his would e more eneficial for product categories where product fit is a ma2or issue such as in

    apparels, sunglasses, 2ewellery, shoes etc' Amazon could charge a premium 7 5s 3..8 for this differentiated service'

    Amazon Confdential Team Dexter- IIMA Page .

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    !his would comine the enefits of oth online and offline shopping, allowing the customers to try the products

     physically and simultaneously offering customer vast range of products at competitive prices' !o promote this,

    Amazon can launch a campaign G+ome )ry onH' )t should also pulicize this initiative in social media wesites'

    'perations Strategy and Potential Challenges for this differentiation

    5oust )nventory model that allows vans to procure inventory from the nearest Cs once the inventory goes elow

    the minimum level' Also a system needs to e set up inside the van which should e connected to the Amazon server so that as soon as the customer uys any product, the entry can e made in the system' !his would keep track of 

    inventory and also would facilitate returns if re>uired at a later stage' )nitially the van would go to a customer0s

    house when order is placed' )f enough demand is created, then the van can go on pre decided specific routes every

    day and the registered customers must e intimidated aout the route' 4ne trained personnel would e kept in each

    van who can efficiently answer the >ueries and sell the products to the customers'

    4ne of the challenges would e to decide the >uantity of each item to e kept in the van' )f we decide to keep more

    >uantity then numer of +*s would go down' )f we decide to increase the variety of products 7+*s8, then

    >uantity would e less and fre>uent stock repletion would e re>uired which can increase the transportation cost'

    Moreover, going to a specific route for 2ust one order can e a it costly unless scale is reached' 4ther challenge isthat M(I sellers may not give their inventory for moile van

    d) 4o+#er SystemCustomers would e the given the option to collect the products from the neary locker' !he enefits would e

    Many times customers are not availale at home and the order is returned ack' "ith locker facility, they

    can collect products from the neary locker whenever they find time' !his would e highly useful for those

    office going customers who traverse through the same route daily' (or Amazon, the transportation cost for the end mile delivery would e saved as many of the orders will e

    accumulated at a single place' !he costs thus saved can e passed on to the customers'

    'perations strategy

    ?ockers will e opened in key areas like corporate locks, residential complexes or shopping malls where

    customers go daily' )nitially, we would start in top 1 metros and seeing the utilization rate would expand

    gradually to other metros' !iming would e from 6am in the morning to 3. pm in the night'

    Amazon0s own employee would e availale at each locker facility who can also collect C4 money orcard payment as this is valued y most )ndians

    -ey Challenges

    !he capacity of the locker would e limited hence orders have to e collected in a given time frame

    M(I sellers also need to e convinced aout this facility

    !ying up with retail outlets or other agencies to lease rental space'

    e) Introdu+ing "obi%e ban#ing payment *a+i%ityApart from C4, the customer would e given the option to make payment through Moile Banking' !he enefitsof moving to moile anking include:

    a'.o(er Cost:

     Currently, Courier Company charges some money for C4 and even if we allow cardswapping then we have to pay some fees to the ank' )n case of moile anking, we will save this money

    and thus we can pass on a part of this money saved to the customer in form of discount'

     ' /aster Cash )urnover: !he time taken for cash to reach Amazon from the hands of the courier service is

    eliminated' !his saving of around 1 to 1 days in receiving payments will oost working capital'

    c' Decreased .osses: C4 suffers some loss in revenue due to soiledDtorn notes and has the risk of fake notes

    reaching our hands' Moile anking eliminates these losses'

    Amazon Confdential Team Dexter- IIMA Page 8

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    d' Improved Service: Especially for higher valued products, the customer need not have sufficient cash to

     pay for it at that instant' As customer anking is evolving towards moile domain, this step on our front is

    the right direction in providing etter customer service in the long term'

    +ome key challenges faced in this recommendation:

    a%  Initial /ixed Costs: +etting up the complete ackend system and linking it with the anking network will

    lead to incurring high initial fixed cost' $owever, variale costs will e minimal'b%  Creating Customer A(areness: ?ack of awareness may result in lower usage of this feature which will

    not help in recouping initial investment' !o gather incremental sales due to this initiative, Amazon needs to

    showcase itself as the first ecommerce company in )ndia to offer this feature'c%  )echnology barriers: )ssues such as poor moile network, server outages, lower internet speeds may cause

    the reaks in the payment chain' )f it happens that the customer gets deited ut the salesman does not get

    the confirmatory message, the salesman cannot sell the product and the customer will feel cheated' !o prevent such issues, a call centre must e estalished to solely tackle issues related to moile anking'

    d% !his facility would not e implementale for M(I sellers' $ence customers may get confused whether this

    facility is availale for a particular product or not

    'perations Strategy for this differentiation

    a' Create ackend system to route moile payments and send confirmatory message to salesman' ' Amazon needs to open an account for receiving payment through moile aking'

    c' 4nce the payment made y the customer ecomes successful, a confirmatory message would e sent to the

    moile of the delivery oy who goes for end mile delivery'

    6 7inan+ia% Imp%i+ations!he financial impact of these new strategies are shown elow

    0ear 123$ 1234 1235 1236 1237

    Incremental Profits 8in Rs&1/';6 crores ;-'/; crores

    3'19

    crores'/ crores 1/'63 crores

    etailed calculations can e seen in Appendix2.

    Amazon Confdential Team Dexter- IIMA Page 9

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    3' ?ease warehouse in

    Bangalore

    /' ?aunch $appy $ours

    scheme

    ;' Enhance wesite J

    referrals, approvals, etc'

    1' Begin advertisementcampaign3' 4pening of istriution

    Centres in Mumai,

    Chennai, elhi %

    Bangalore

    /' &rovision of direct

    transport aove

    ;' ?aunch moile payment

    facility

    3' 4pen istriution

    Centres % direct

    transport in *olkata %

    $yderaad

    /' ?aunch moile vans

    in Mumai, Chennai,

    elhi % Bangalore

    3' ?aunch of locker services

    in top 1 metros

    /' ?ease warehouse in elhi

    ;' ?aunch Accelerated

    elivery +ervice 7A+8

    in Mumai % Bangalore

    1' )mplementation of virtualreality on wesite :an

    2;17 :ul2;17

     :an2;1.

     :ul2;1.

     :an2;18

    3' ?ease warehouse

    in *olkata

    /' ?aunch A+ in

    elhi, Chennai %

    $yderaad

    ;' ?aunch locker innext 1 metros

    3' 4pen distriution centre %

    direct transport in

    Ahmedaad and &une

    /' ?aunch moile vans in

    Ahmedaad, $yderaad,

    *olkata and &une

    3' ?ease warehouse in

    Chennai

    /' ?aunch A+ in

    *olkata, &une %

    Ahmedaad

    3' ?ease warehouse in

    ?ucknow

    /' ?aunch A+ in

    ?ucknow, &atna

    3' 4pen distriution centre %

    direct transport in Chandigarh and

    Bhopal

    /' 5evamp advertisement

    campaign

    ;' ?aunch A+ in Bhopal,Chandigarh and #aipur  :ul

    2;18 :an2;19

     :ul2;19

     :an2;1<

     :ul2;1

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    minimizing financial impact due to discount' As the customers in this segment tend to procrastinate their purchase

    in hope of finding a etter offer, this offer will push them to take a >uick decision' !hus it serves to increase

    conversion ratio in the argainer segment'

    D% 'pen ox DeliveryA ma2or arrier for the conservatives segment is the fear of landing up with a damaged product despite having to pay

    the full amount for it' By offering open ox policy, we relieve the conservatives of a ma2or stress factor' !his policy

    has the twin enefits of time savings of purchasing online as well as aility to check out the product efore making

     payment as is the case in retail outlets'

    E% ,irtualiationEngagers are tech savvy and are well aware of all processes in the online retailing world' !o differentiate

    Amazon'in from its competitors and entice engagers to stay loyal to it, we propose a virtualization tool ridges the

    gap etween reality and the online world' +ome examples include:

    a' Electronic Products: An environment to simulate the functioning of the product such as utton clicks, feel

    of the 4+, navigating maps, etc'

     ' /ashion (ear: !ry out a variety of fashion products like apparels, sunglasses etc on an uploaded image or 

    using the wecam' !here can also e a facility of maintaining an online closet of purchased products'

    c' )oys: Actually simulate the toy online to check out how it works'

    /% Referral Incentive System!he referral scheme is a push strategy to get more people to try Amazon'in' !he crux of this scheme is to incentivize

    a customer for a successful referral of a new first time customer' (irst time customers will e validated through

    login details such as email address, (aceook account, etc'

    9% Personalied 9reeting Cards4ne of the ma2or differences etween purchasing online and through outlets is the association with salesperson in

    the latter which gives it a personal touch' &urchasing through outlets usually involves touching and feeling the

     product which creates a ond' !o recreate the same ond in online retail, we plan to send personalized greetingcards or a small gift along with every purchase' !his assists in enaling the customer to e emotionally attached to

    Amazon'in and serves to increase repeat purchase'

    +% Advertising

    Channel /or (hom +o( enefits

    ),

    Commercials

    !arget audience is young

    working professionals

     etween /- to 1./ !=C0s aired at prime

    time

    ),C 3: Core message should e ease

    of uying at Amazon, excellent

    customer service

    ),C 1: Core message should e wide

    range of products at competitive prices

    "ill influence the

    simplifiers

    "ill attract the engagers

    'nline

    Advertising

    8Social

    !edia&

    oung )nternet users in

    the range 3- to ;.

    eal of the days, discounts availale,

    $appy hour scheme etc should e

     pulished

    "ould increase the

    awareness of argainers

    Print !edia

    li*e /ashion

    !againes

    !argeted at oung women (ull page illustrations of premium

     rands availale, loyalty programs

    Communication of elite

    >uotient

    )nfluencing the engagersill oards )nitially in top metros

    (or posh residential areas,

    isplaying ma2or rands, discounts or 

    schemes availale

    $elps in uilding trust and

     rand recall among the

    Amazon Confdential Team Dexter- IIMA Page =

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    corporate locks target group

    I% Increasing Customer .oyalty

    Credit points to e awarded for shopping aove a certain limit at one go'

    )ntroduce special ulk shopping offers after a certain threshold numer of credit points

    +ending personalized gifts to registered customers on irthdays, anniversaries

    Amazon Confdential Team Dexter- IIMA Page 1;

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    Appendi ,2 In+rementa% 7inan+ia% -eturns *rom our Strategy

    Assumptions

    Currently, Amazon has 3 warehouse in Mumai' Also, it has one istriutional Centre in Mumai'

    !otal numer of daily orders for Amazon'in in current scenario is assumed 3.... per day' 4ut of these -.K

    are assumed to come from top metros Average order value has een assumed to e 5s 3...' !he commission charged y Amazon for each order

    is assumed to e 3/K'

    Amazon Confdential Team Dexter- IIMA Page 11

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       P

      r   i  +  e

       S  a   t   i  s

       *  a  +   t   i  o  n

       4 o '

       1 i g h

    De%i&ery TimeS%o' 7ast

    !o start with irect !ransport facility, istriution Centers 7Cs8 and "arehouse will e opened'

    Monthly rental charge of "arehouse is assumed to 5s /'- lakh while for a C to e 5s -.... '

    irect !ransport will comprise of ;. employees in top 1 metros and 3- employees in next 1 metros

    irect !ransport team will e introduced in top metros, first in top 1 metros and then to other 1 metros'

    irect !ransport team will initially cover ;.K of order in first year, 1.K in second year order, -.K in third

    year and then stailize to 9.K of total orders' +o in long run, the ratio of orders served y irect transport

    team and other couriers services will e 9.:1. (BA orders would e ;.K in the first year, 1.K in the second year, -.K in the ;rd year and then stailize at

    9.K afterwards' Every time a customer orders for a moile van, a premium of 5s 3.. would e charged from him

    Accelerated delivery service would start from the /nd year and we would charge 5s-. for each order 

    )n the second year,3.K of the total orders will e for accelerated delivery' !his numer would e 3-- in the

    ;rd year, /.K in the fourth year and ;.K in the fifth year 

    4ut of the orders served y irect !ransport team, 9.K are assumed to used C4 facility'

    Moile ased payment will e opened for orders served through irect !ransport team' )n first year, 3K of 

    those customers will use moile payment facility, /K in second year, ;K in third year, 1K in fourth year,

    -K in fifth year' +avings through moile payment facility will e around /K of the order value'

    Currently, Amazon is assumed to pay 5s'1. per order as transaction charges to courier companies for

    handling money under C4' irect !ransport team will accept C4 and hence Amazon would incur only

    5s 3. as transaction charges with lower turnaround time'

    (or calculating costs incurred due to moile vans, 5s 1.. per litre is assumed as daily fuel costs, driver

    salary is assumed to e monthly 5s 3-..., employee cost is assumed to e monthly 5s /-... and car

    rental is assumed to e 5s 3,..,...

    )nitially moile van facility will e launched in top 1 metros and each of these metros will e serviced y

    vans' Iext moile van facility will e launched in next 1 metros with 1 vans to service each of these'

    -K discount would e given to customers during purchase in happy hours

    1 ?ockers each in top 1 metros and / ?ockers each in next 1 metros will e provided' Monthly rental of the

    space is 5s -... and 5s 3/... would e given to the employee

    Appendi 52 Per+eptua% "ap+urvey respondents are asked to rate each of the online portals on two dimensions viz' their perception of its price

    satisfaction and time to delivery' "e then use multidimension scaling to create a /dimensional map of the portals

    with the /axes as the two rating parameters' !he preference map otained is as shown to the right' 

    Amazon Confdential Team Dexter- IIMA Page 12

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    Appendi ;2 C%uster Ana%ysis Summary

    7ormation o* C%usters

    Demographi+ Pro/%ing o* C%usters

    Psy+hographi+ Pro/%ing o* C%usters

    Amazon Confdential Team Dexter- IIMA Page 13

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    Appendi 62 Sur&ey uipment 78

    (ootwear 78

    "atches 768

    *itchenware 73.8

    CsD=s 7338

    1 "hat is the average numer of times you uy products online in a span of ; monthsN

    ?ess than 3 738

    / or ; 7/8

    1 or - 7;8

    9 or 718

    More than 7-8

    - "hat is the average time you take to arrive at a final uying decision on a wesite after deciding to purchase a

     productN

    ?ess than a day 738

    3 to ; days 7/8

    ; days to a week 7;8

    More than a week 718

    Amazon Confdential Team Dexter- IIMA Page 17

    https://qtrial.qualtrics.com/SE/?SID=SV_6tKcEDgDniTzxpXhttps://qtrial.qualtrics.com/SE/?SID=SV_6tKcEDgDniTzxpX

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    "6 #at$ th$ %ollo&ing %actors on its importanc$ in th$ '$cision to purchas$ a pro'uct onlin$.

     Iot at all

    )mportant

    738

    =ery

    nimporta

    nt 7/8

    +omewhat

    nimporta

    nt 7;8

     Ieither 

    )mportant

    nor 

    nimporta

    nt 718

    +omewhat

    )mportant

    7-8

    =ery

    )mportant

    798

    Extremely

    )mportant

    78

    &rice of 

    the

     product

    738

    Benefit of 

     purchasing

    from

    homeDoffic

    e 7/8

    =ariety in

     productrange 7;8

    +ecurity of 

     payment

    system 718

    !ime to

    delivery

    7-8

    )naility to

    feel the

     product

    798

    Complexit

    y of 

     purchasing

     process 78

    Chance of 

    receiving

    damaged

    good 78

    Amazon Confdential Team Dexter- IIMA Page 1.

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    "( #at$ th$ %ollo&ing )ran's o% $comm$rc$ portals on *ric$ )as$' on +our satis%action.

    =ery

    issatisfied

    7;38

    issatisfied

    7;/8

     Ieutral 7;;8 +atisfied 7;18 =ery +atisfied

    7;-8

    Amazon 738  

    eBay 7/8 

    (lipkart 7;8  

    )nfieam 718  

    #aong 7-8  

    $omeshop 3

    798

    Myantra 78  

    +napdeal 78  

    ", #at$ th$ %ollo&ing )ran's o% $comm$rc$ portals on D$li-$r+ Tim$.

    &oor 7138 (air 71/8 @ood 71;8 =ery @ood7118

    Excellent 71-8

    Amazon 738  

    eBay 7/8  

    (lipkart 7;8  

    )nfieam 718  

    #aong 7-8  

    $omeshop 3

    798

    Myantra 78  

    +napdeal 78  

    6 "hat is your age groupN

    ?ess than /. years 738

    /3 to ;. years 7/8

    ;3 to 1- years 7;8

    @reater than 1- years 718

    3. "hat is your occupationN

    +tudent 738

    "orking &rofessional 7/8

    +elf Employed 7;8

    5etired 718 $ousewife 7-8

    4thers 798

    33 "hat is your genderN

    Male 738

    (emale 7/8

    Amazon Confdential Team Dexter- IIMA Page 18