Team: Prison Breakers Aman Kumar(p10amanv@iimahd.ernet.in) Mrinal Suresh(p10mrinalks@iimahd.ernet.in) Tarun Hathila(p10tarunvh@iimahd.ernet.

in) IIM Ahmedabad

Customer Acquisition: Guaranteed customer engagement unlike advertisements Makes new customer acquisition easy for businesses Attractive commission rate for merchants Less than Rs.100 Clear cost of customer acquisition E-Marketing: Opportunities for E-mail acquisition and further e-marketing to consumers Similar to extremely targeted advertising with guaranteed returns

Unused inventory management: Inventory clearance becomes easy Creating option for merchants to sell their distressed or unused inventory Merchant over production losses are managed through Snapdeal

Awareness: Customer become aware of the new product/service being offered Huge word of mouth advertising for merchants products Huge awareness of deal amongst the users

The following are the main factors that have given Snapdeal a lead in the group buying market Advertising mix - Social media, online and offline advertising campaigns has resulted in good click through rates and conversions

Started offline as a coupon business which resulted in a initial huge vendor list when site went online. This results in a scale on merchant side for consumers, which is not available with other sites
Huge discounts offered fits with the Indian behavior of frugality Opportunity to try higher value aspirational products & services by a new set of consumers As the vendors are real world merchants -> Product/Service quality assurance available which E-commerce sites cannot provide

Hyper-localization

Branded Products Make available certain well known products at steep discounts This will spread word of mouth on social networks and attract more fans & users to site Portray it as end of end of season sale deal to merchants will clear their final inventory No erosion in brand equity as similar stores exist in modern retail Brand factory offers upto 70% discount on major brands Provide more offers and brands than any other discount coupon website in the market

Building on snapdeal.coms first mover advantage Will cause critical mass accumulation on both sides consumers and merchants In metros and top10 markets Residential locality level offerings Will be difficult for newer entrants to replicate Customer and merchant growth will feed on one-another Snapdeal has 70% market share of discount coupon market - It provides highest customer access to merchants

Customer Demanded deals

Target Student population

Give power to hands of customer and engage them Will also arouse interest in the brand/service being demanded Will be an indicator customer interests in various areas Certain minimum number of members to demand deal before company acts on it Conduct primary research in metros or top ten cities and find out customer preferences Going forward discount deals could be driven by customer needs

Rationale: Students demand sophisticated products at cheaper prices Early adopters in almost all new products/services on the internet Inform and engage through sponsoring and stalls in various college fests Special offers/product categories/deals only for student population Huge population and ability to make it viral on social networks Prioritization of discount deals through student survey

Differentiators For merchants:

Help of a specialized team in deal design for SME in various areas Access to higher number of online users than competitors Better deals for merchants as compared to other discount coupon websites Provide customer insights to the merchants based on earlier buying behavior & database profile Reward loyal merchants with progressively higher revenue share Providing better display and positioning options to merchants

24*7 Customer support and seamless integration for tracking vouchers and preventing misuse Focus on new customer acquisition and retention capacity development of SME, So satisfaction levels are increased amongst merchants Use industry knowledge to consult merchants about deciding on discounts based on inventory levels

OBJECTIVE Be the primary place to get the highest discounts across the widest range of product & services for consumers Be the primary inventory clearance & footfall acquisition system for merchants Be the primary medium to market to and micro-target the online population Evolve into a social commerce platform where people collaborate to drive bargains on products & services

Organizational Structure Research teams - to develop expertise in certain product/service categories and characteristics like seasonality's and regional variations Sales teams To focus on penetrating SMBs metros and tier 1 cities Aim get merchants on board and also enhance their capacity to acquire and retain customers Customer Service teams Regional focus teams to trained effectively to handle all issues arising from the customer end Corporate teams To handle completely with major international & national branded goods/service companies Marketing Aggressive all round marketing campaign to establish brand & increase recall rates thus break the from the clutter of clone sites Sponsor student fests and put stalls in high visibility areas like malls Use OOH to effectively reach target eyeballs outside colleges/high student population zones in metros and tier 1 cities Run TVC or collaborate with youth channels like VTV, MTV, UTV BIndaas

IT Support Systems Change systems to enable interaction between customers on a fixed scale within a category/specific region. Thus lay roadmap for gradual evolution to a social interactive-commerce platform Facility for seamless tracking of vouchers by merchants Especially for multi-outlet stores to prevent misuse Other appropriate changes to incorporate localization, student targeting & customer demanded deals Human Resource Scout for local talent in sales force - Hire experienced salesmen from other industries Gradually develop category specific expertise Align incentives on merchant retention and acquisition metrics in a Salesman's area Follow up with dropped out merchants Focus on hiring best people and achieving a lead over clone sites in the merchants minds In-house customer service Give a guaranteed query/problem resolution deadline

DISCOUNTS

PRODUCTS/SERVI CE

Consumer Experience

Study seasonality's Act as a online version Give consumer the across product & service of Brand Factory to power to ask for deals categories to drive hard get in major brands Facilitate interaction bargains during lean Street level amongst users looking period localization for for similar deals Area wise sales teams to convenience of Very targeted mailers look for new SMBs/ customers based on past history, businesses expansion Expand to new preference, location of mode to offer marketing categories like consumer etc services Healthcare, Hobby and Offer to major brands interest camps/classes, against discount -> hotel rooms, local Inventory clearance & end travel services etc of season footfall This combination will lead to critical mass both on consumer and merchant side which will be our primary strength and be impossible to replicate