E-Commerce Industry Analysis

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By categorizing customers into distinct yet manageable groups, segmentation is the first step in understanding the motivational drivers behind customer actions (e.g. searching for a product, abandoning their basket). Refer the above figure for behavioral segmentation. The product catalog and the its display can be personalized for each segment dynamically and the appropriate communication channels will be used target the message the intended to segment.

Positioning

Myntra.com has positioned itself as a premium fashion brand. It has an exclusive line-up of brands, strengthening its dominance in online fashion sales. It currently holds close to 30 per cent market share. It is trying to fulfill the fashion aspirations of the youth in the 18-25 age profile with a combination of popular international and national brands on our Website, many of which are exclusive to our website for a period of one-three years.

Exclusive partnerships with brands are becoming increasingly popular. While Flipkart sold over a million units of Moto G, Moto E and Moto X phones and more recently 35,000 units of Xiaomi Mi3 phones, earlier this week Amazon announced that it is the exclusive partner of Microsoft’s entertainment products in India. E-commerce firms are creating a strong consumer pull by partnering exclusively with popular international and national brands, wherein, the exclusive availability of the brand for a limited period on the portal creates much more interest in the brand than it would otherwise.

Earlier, the USP of Snapdeal being a destination that offers the widest assortment of products at great value. Now it is trying to establish an emotional connect with the customers by emphasizing on the emotional fulfillment of the customers by offering gifts from Snapdeal. Snapdeal’s ‘Dil ki deal’ campaign showcases the same and rides on some such emotions of love, care, joy and fulfillment.

MARKETING MIX (4P’s of MARKETING)

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- Product

First we need to find out what are the products to be sold online. Products can range from general items like clothes, electronics and other items of general use to niche products like jewelry, auto parts of expensive cars, toys etc. General products are over-competitive because these products are over advertised and the market is saturated with competition. In contrast Niche products is an area that has not been completely explored so far. The need of the people should be kept in mind while offering the type and variety of the products.

An old selling quote ‘sell the sizzle not the sausage’ is a bit tricky in an environment where customers can’t smell or hear. This lack in sense can be compensated by increase in other. The online environment gives a marketer significantly more opportunity to provide product detail, from the basics of accurate product descriptions and specifications to the ability to explore the product in greater detail through photography and HD video. Other inclusions such as buying advice, recommendations are important reviews from other buyers and from specialist reviewers could only add value to the product.

Historically, products could be touched, looked at with the naked eye, even smelled in-store to determine its true quality and value. With more and more sales moving online every day, it is harder to understand and feel confident that you are making the right purchase decision when you many not have physically seen or touched the product.

But the lesson for marketers is that just because you are selling in the virtual space that does not mean that quality should suffer or that it doesn’t matter to the consumer. In fact, in today’s digital and highly social shopping environment, consumers can seek out and find reviews all over the Internet for the product they are considering buying. A lower quality product will quickly be sniffed out and may cause you to lose the sale. Features and benefits must be real and differentiated from the competition even more nowadays. Product’s performance, quality and price will always rank amongst the top criteria consumers will consider when deciding whether or not to buy, at retail or on website.

- Price

The topmost priority for any customer whether they are buying through a retail store or online is price. This theory holds even if they are shopping at the luxury end of the market. The online environment provides a much easier way for customers to shop around and compare prices and in a global selling environment there may always be someone that can offer a product cheaper. So it’s the added value that a business can offer which becomes even more important and the extras such as free delivery and a free customer support helpline, help to differentiate a business from the crowd.

At any time, historically or today, price is probably what most consumers would say is the most important ingredient in making a purchase decision. While price and budget are most certainly large contributors it should be equally complimented by product quality coupons and deals features otherwise the sales will fall short. So making sure that price-value equation is right is the key to success. Customers want a high-quality, differentiated product at a competitive price in order to justify paying a higher price. An exclusive deal or coupon can also push customers over the edge in your favor.

If there is a prestigious name brand that can deliver on quality as well, then customers will often be willing to pay a higher price.

- Place

After creating your personas, you can now come up with Keywords to put in the content of your website. These Keywords will help with Search Engine Optimization (SEO). SEO can help you earn money $$$! Also, if you have not already listed your business under Google Places this is a free tool that will list your website on the first page of Google with a map of your business location. The most important thing to remember is to make your website EASY to find!

The website becomes the new physical location and your customers will expect the same level of service online as they would get in store (or even better!) Just as if they were shopping in store they will want a well-designed, easy to navigate website that provides quick and friendly service in a safe and secure environment. Of course the big advantage of online over a physical store is that your customer can order at their own convenience 24/7, without you having