DebaPratim_Technical Project Manager

EXPANSION OF MARKETING FOR PRODUCTS OF M/S BHARAT

LEATHERS THROUGH E-COMMERCE PLATFORM

BY

DEBA PRATIM SINHA

IIM KASHIPUR

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CONTENT

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Topic Slide NO.

Leather Industry In India 3

E-commerce in India 4

Important facts for M/s Bharat Leathers before taking decision 5

Selection of an e - Commerce platform to support its online sales Pan India. 6

Integration with a suitable the e-Commerce website to support 500 SKU catalogue. 7

Strategically manage the inventory as demand increases 8

Maintain control over products page to manage all details 9

Support brand extensions 10

To achieve best user experience across all devices 11

LEATHER INDUSTRY IN INDIA

Leather is most widely-traded commodity, so demand rarely comes down

Demand is driven by fashion industry( especially footwear), furniture and interior design, automotive industry

LEATHER INDUSTRY s 50% of the trade comes from international market.

In 2013-14, India's leather exports reached US$ 5908.82 million

Finished leather registered export revenues of US$ 77716.43 million in 2013-14

India is the second largest producer of footwear and leather garments in the world

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E-COMMERCE IN INDIAIndia has 243million internet user as on June,2014 which is 16% penenetration

Indian e-commerce market worth $12.6 billion in 2013 where e-retail worth $2.3billion

Almost 70% of India's e-commerce market is travel related

Increase in mobile internet user and increasing broadband Internet

Increase in standards of living with high disposable incomes

Busy lifestyles and lack of time for offline shopping

Availability of much wider product range at comparatively lower

price

Key Drivers

Essential factors necessary for growth of E-Commerce in India

Reach- Website should be platform independent which also supports M-Commerce services

Quality -The product quality should be same as shown on the portal.

T & C should be clear & realistic.

A dedicated 24/7 customer care Centre should be there.

Shipment option

Price comparison

Multiple payment option which include COD4

IMPORTANT FACTS FOR M/S BHARAT LEATHERS BEFORE TAKING DECISION

In e-tailing 30% of purchased goods are Apparels and accessories

In that 30% market, only 10-17% share is for leather items

Only 16% penetration is for internet in India

For every Rs 100 spent on e-tailing, Rs 35 is spent on supporting services like warehousing, payment

gateways, and logistics, among others.

Indian logistics and supply chain market is not yet well organized

Still 4000-5000 small towns are not in reach

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SELECTION OF AN E - COMMERCE PLATFORM TO SUPPORT ITS ONLINE SALES PAN INDIA.

Deal with the best in the market like Myntra, flipkart or Jabong

Create your own portalThere two options

Option 1Maximum customer base

Better reach

Better chances of promotion and sells of product

Initial payment with follow up of strategy

Required to create minimum two warehouses

It is not possible to push 500 sku together here

Option 2Have to spend more money in digital marketing for

promoting product and creating brand name

Have to build infrastructure of higher standard so that orders can be delivered efficiently

Can go with its own strategy

Can push all its product together

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INTEGRATION WITH A SUITABLE THE E-COMMERCE WEBSITE TO SUPPORT 500 SKU CATALOGUE.

Option 1It is not possible to push all 500 SKUs in first go and also will not be supported

by them

Should categorize all the SKUs and in push the best one

This will have better impact because you are giving the best and eventually

will increase the brand value

Later according to customer need and satisfaction, you can push the related

SKUs

Option 2

Here it is possible to push all the 500 SKUs

Categorize and maintain the portal as per customer prference

More costly affair 7

STRATEGICALLY MANAGE THE INVENTORY AS DEMAND INCREASES

In option 1, as per customer requirement/ preference inventory should be managed.

All the SKUs which are liked and chances are there of more sales, they should be put more in warehouses

SKUs those are ignored or not bought by customer, should be removed to decrease inventory cost

When company is in introductory stage, SKUs should not go out of stock So, company should be ready for JIT inventory delivery

In option 2, inventory should be kept as per the demand

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MAINTAIN CONTROL OVER PRODUCTS PAGE TO MANAGE ALL DETAILS.

GETTING THE RIGHT CONTENT AND TARGETING CUSTOMERS WITH CRISP AND RELEVANT

INFORMATION IS OF UTMOST IMPORTANCE TO USERS ON THE MOVE.

THE PRODUCT QUALITY SHOULD BE SAME AS SHOWN ON THE PORTAL.

UNSATISFIED FEEDBACK SHOULD BE HANDLED AS SOON AS POSSIBLE

CUSTOMER CAN BE RETAINED IF PAGE IS MANAGED PROPERLY

SHOULD BE ACTIVE IN SOCIAL MEDIA

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SUPPORT BRAND EXTENSIONS

When brand is doing good, most of the time brand extension helps in increasing brand value

When its option 1, and company did not put up all its SKUs earlier, it should slowly push its other SKUs

This will help in growing brand image and also help in converting potential customer

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TO ACHIEVE BEST USER EXPERIENCE ACROSS ALL DEVICES

Deliver what you have shown/promised

Deliver it on time

Deliver them what they need.

Example: True & co is this interesting company that combines data & design to create an opportunity for consumers to share data with the company thereby improving the appropriateness of the product to the customer. True & co claims to be the first company to fit women into their favourite bra with a fit quiz no fitting rooms, no measuring tape, no photos. The data they collect allows them to match the customer to over 6000 body types on their database.

They collected over Half a million data points from users to help customise the experience. Since the company launched in 2012, True & Co has collected some 7 million data points They used this data to launch products designed using this data. Body type, implicit explicit preferences etc all mashed together to create a personalised recommendation engine.Source: http://blog.hansacequity.com/Customer-Management-blog/?Tag=lingerie

Data mining on data that is collected on consumer behaviour by survey while customer is purchasing. Eventually

coming up with customised product line which include combination of accessory according to occasion or personality.

In short using big data to make shopping online for leather goods

easier & better.

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