“COMPARATIVE “COMPARATIVE STUDY OF ONLINE MARKETING AND TRADITIONAL MARKETING MARKETING IN INDIAN SCENARIO”
SUBMITTED BY
ADESH ADES H NARAY N ARAYAN AN A3906414098 BBA (Gen)
AMITY SCHOOL OF BUSINESS AMITY UNIVERSITY UTTAR !RADESH
1
ACKNOWLEDGEMENT
It gives me great pleasure to express my heart felt gratitude towards all those those who guided guided me in formul formulati ation on of this this proje project ct repor report. t. There There are are several people who deserve more than a written acknowledgement of exemplary help. In my eorts to accomplish this task I have received a great amount of help and guidance from some individuals who I wish to thank from the bottom of my heart.
I am grateful to Faculty !"# !mity $niversity %oida who has always encouraged me a lot. &is continuous support has lead me to formulate my project in a right way. !lthough I have tried to express our gratitude to every person but there still maybe some hiding veils of unknown who we might have not been able to recogni'e we would like to thank all of them.
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ADESH NARAYAN NARAYAN
EXECUTIVE SUMMARY
Marketing has pretty much been around forever in one form or another. Since the day when humans first started trading whatever it was that they first traded, marketing was there. Marketing was the stories they used to convince other humans to trade. Humans have come a long way since then, and marketing has too. The methods of marketing have changed and improved, and we’ve become a lot more efficient at telling our stories and getting our marketing messages out there. eMarketing is the product of the meeting between modern communication technologies and the age-old marketing principles that humans have always applied. So before going deep into other information let us know what actually marketing means and its definition. rom a societal point of view, marketing is the link between a society’s material re!uirements and its economic patterns of response. Marketing satisfies these needs and wants through e"change processes and building long term relationships. Marketing in #ndia can be looked at as an organi$ational function and a set of processes for creating, delivering and communicating value to customers, and managing customer relationships in ways that also benefit the organi$ation and its shareholders. Marketing is the science of choosing target markets through market analysis and market segmentation, as well as understanding consumer buying behaviour and providing superior customer value.
#n this day and age, we basically have two categories of marketing %
Traditional marketing and
%
#nternet marketing
There is an ongoing battle between these types of marketing. &hich is better' &hich offers greater benefit and value' The truth is, both methods can be useful. However, the key to making the right allocation of marketing funds is properly understanding your target market and the pros and cons of each type of marketing. #ndia is an emerging market in and hence we are going to study the comparison of these both marketing modes in #ndian scenario.
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Title
%o. 1 2 3 4 5 6 7 8 1! 11 12 13 14 15 16 17 18 1 2! 21
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#ntroduction +eed elevance of the Study /b0ective of the Study 1iterature eview Method of study esearch Statement Tools for data collection Statistics esults 4iscussions 1imitations #mplications Summary (onclusion eferences
CHAPTER 1
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Marketing has pretty much been around forever in one form or another. Since the day when humans first started trading whatever it was that they first traded, marketing was there. Marketing was the stories they used to convince other humans to trade. Humans have come a long way since then, and marketing has too. The methods of marketing have changed and improved, and we’ve become a lot more efficient at telling our stories and getting our marketing messages out there. 7Marketing is the product of the meeting between modern communication technologies and the age-old marketing principles that humans have always applied. So before going deep into other information let us know what actually marketing means and its definition.
M+%,-$*#.
Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling that product or service.
rom a societal point of view, marketing is the link between a society’s material re!uirements and its economic patterns of response. Marketing satisfies these needs and wants through e"change processes and building long term relationships. Marketing can be looked at as an organi$ational function and a set of processes for creating, delivering and communicating value value to customer customers, s, and managing managing customer customer relatio relationshi nships ps in ways ways that also benefit benefit the organi organi$ati $ation on and its sharehol shareholders. ders. Marketing Marketing is the science science of choosing choosing target target markets markets through market analysis and market segmentation, as well as understanding consumer buying behaviour and providing pro viding superior customer cus tomer value.
#n this day and age, we basically have two categories of marketing8 •
Traditional marketing and
•
#nternet marketing
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There is an ongoing battle between these types of marketing. &hich is better' &hich offers greater benefit and value' The truth is, both methods can be useful. However, the key to making the right allocation of marketing funds is properly understanding your target market and the pros and cons of each type of marketing.
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9t the beginning of the century, social life was mostly local. #t was followed by a period in which commodities were produced on a mass scale. Technological change has moved steadily back focusing on the individual. :otler formali$ed this evolution with his book ;Marketing Management.; His key stages are production, sales and brand management. 7ach of these is strongly strongly motivat motivated ed by technolo technologica gicall opportu opportuniti nities, es, which which permit permit new methods methods and new opport opp ortuni uniti ties. es. 9s the new techn technolo ology gy of the #nter #nternet net devel develops ops,, it reinf reinforc orces es the the new new marketing emphasis. #n today’s technology driven world, a new fast paced digital economy is emerging. #t is e-marketing that is changing the way products and services are conceived, manufactured, promoted, priced, distributed and sold.
The #nternet is an increasingly e"panding medium of interaction that has virtually eliminated eliminated geographical boundaries and overcoming previously e"isting obstacles of global business. #t can be considered to be an accidental mega-market born out of technology and that of economic needs. The #nternet, the single most sophisticated on line service, is relatively simple and immediate to use< however, these attributes may not en0oy a perceived status of usability for those new to and somewhat hesitant of advances in computer technology. The #nternet today offers #ndia best opportunity to e"pand its market on an even more global scale. This network of computers computers represents a perpetually perpetually open market without geographical barriers to prevent any business from reaching customers all over the world via a virtual market where trade, transactions, cash and commodities flow in the form of electronic consumption. The #nternet is an inter-networked system of computers linked by telephones that allow free flow of information from one part of the network to any other, provided the information is packaged according to certain conventions. #t was born out of a vision of universal 3 | )age
connectivity and global community. (reated as a data link among a sprinkling of academic communities, communities, the #nternet has fast been embraced embraced by business. (ompanies (ompanies are using it to link employees in remote areas, stay in touch with customers and suppliers, and distribute sales information more !uickly, as well to sell and distribute goods and services. The #nternet began to grow gro w dramatically dramaticall y in )==3 with the advent of a new, more user friendly application -- The &orld &ide &eb -- which provides companies’ access to millions of new customers at a fraction of the cost of print or television advertising, and in many cases, distribution. The &eb uses a technology called hyperte"t which allows users to leap from one computer data base to another by simply clicking on highlighted images or te"t. #t employs easy-to-use browsers to capture the public>s imagination with the promise of a navigable world of a seemingly infinite amount of information. The &orld &ide &eb>s popularity, in turn, has caused the entertainment media and the communication communication industries to revaluate their business models. The use of the #nternet to carry real time data, such as voice and video, in addition to traditional forms of data, which lent themselves more readily to packet switching technology, is on the hori$on.
The number of computers in the world grew from less than half a million two decades ago to ** million in )==6. The number of websites are doubling every 52 days and the number of non-?.S. users is pro0ected to grow from an estimated 3* million in )==@ to 5** million in the year ***. #n #ndia, the #nternet subscribers in 9ugust )==5 were only @*2, but by Aune )==B the number had grown to ), *,*** . However, Aay orrester, the inventor of random access memory, e"pects that for at least three four generations, people will use computers for what they>ve always done, only faster. 9 profession, no less than a craft, is shaped by its tools. The profession of marketing, its theories, practices, practices, and even the basic sciences that it draws upon, are determined by the tools at its disposal at any moment. &hen the tools change, the discipline ad0usts, sometimes !uite profoundly and usually !uite belatedly.
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The boom in computer, computer, telephone and television technologies, technologies, has had a ma0or impact on the way businesses produce and market their products. 9s technology has delivered new and better foods, clothes, housing, vehicles and entertainment possibilities, our lives have changed dramatically. Telecommunications is the driving force that is simultaneously creating the huge global economy and making its parts smaller and more powerful. 9t the heart of this phenomenon is the #nformation Superhighway and its backbone, the #nternet. Chilip :otler, one of the most prominent figures of marketing, warns that even though the alert marketers see this technology as producing an endless stream of opportunities, taking advantage of it entails walking a thin line.
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(learly, marketing>s tool kit is e"periencing an unsettling amount of change. The boom in direct and database marketing, the dawning of electronic commerce, new ways to automate sales force management, and the sudden blossoming of the &orld &ide &eb all suggest that the discipline is under pressure to redefine itself. The stock market is well aware that something important is developing< venture capitalists and technology companies are making large bets< and students at business schools, alert to any hint that their investment in the development of personal skills might have to pay off in a changed environment, show particular interest in new methods of market making. Mass marketing concepts and practices prac tices are taking advantage of new ways to become more customi$ed, more responsive to the individual. The challenge facing the companies today is how to take strategic advantage of these opportunities to build more desirable products and services, build brand e!uity and increase revenues and profits. The #nternet represents new opportunities for the marketers and sales people because it provides a wide reach for all marketing efforts conducted on it. #nternational markets can be opened up at low costs. 9dvertising and promotion costs in other countries can be significantly reduced, if not eliminated. &ith the use of the #nternet there can be continuous customer support. Services can be made available through interactive e-mail systems on the net. This saves time and money. #n addition, feedback from the marketplace can be likewise collected on an on-going basis, and in many cases, in the form of ;real-time; ;real-time; data. +ew products and services can be tested through interactive !uestionnaires on the
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#nternet. This feedback forms the basis of market identification and segmentation that enables marketers to better position their products.
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1"2 O-)$*- &0 $- $('
•
Crimary /b0ective (omparative study of traditional marketing and online marketing in terms of o o
•
growth in #ndian scenario. Cotential and penetration of online marketing over traditional marketing.
Secondary /b0ectives To find the effectiveness of online advertising vs. traditional advertising Dreach o o
and creation of awarenessE To find the reliability of online marketing vs. traditional marketing Drecall and remembranceE
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CHAPTER – 2
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Fy the end of this year, one in every )* #ndians will be an #nternet user, making the country the third-largest third-largest #nternet market in the world after (hina and the ?nited States. 9t the end of +ovember, )) million #ndians are accessing the #nternet at least once a week to check emails, chat or log on to a social network, a survey has found. #ndia is adding #nternet users at the rate of almost 5-@ million a month, and at the current pace it will surpass the ?S, which has about 35 million users, in less than two years.
9ccording to the survey by #MF and the #nternet Mobile 9ssociation of #ndia, the country>s #nternet population was about )) million by September. &hen this year ends, about = million more will be added, making #ndia one of the world>s top markets for +et based businesses. busines ses. The profile of users us ers is evolving rapidly, showing that the medium has h as made deep inroads into small town #ndia and among the less affluent. There are more #nternet users in towns with a population of less than 5 lakh than in the top eight metros put together. Schoolchildren Schoolchildren make up more than a fifth of the users and more than one in )* belong to the lowest socio-economic socio-economic groupings. The #nternet e"plosion is also rapidly opening up markets for online businesses, consumers and retailers.
9s per ;#ndia Goes 4igital;, a report by 9vendus 9vendus (apital, a leading #ndian #nvestment Fank specia speciali li$in $ing g in digit digital al media media and techn technolo ology gy secto sector, r, the #ndia #ndian n e-com e-comme merce rce marke markett is estimated at s B,5** (rore D6.2 billionE for the year *)). /nline travel constitutes a si$able portion DB@IE of this market today. /nline /nline travel market in #ndia is e"pected to grow at a rate of I over the ne"t 3 years and reach s 53,B** (rore D). billionE in si$e by *)5. #ndian e-tailing industry is estimated at s 2,6** crore D?SB** mnE in *)) and estimated to grow to s 52,*** (rore D)).B billionE in *)5.
#nternet is growing at an unprecedented pace in #ndia. Fusinesses are e"perimenting with new models, creating a snowballing effect. 9lready, firms such as Google, eFay, Jahoo and acebook have a large presence in #ndia and are delighted by the prospects before them. #ndia crossing the )** million #nternet users mark
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represents an incredible market opportunity for other companies. #t will particularly foster the growth of e-commerce in #ndia. 7ven though the user base is vast, the total number of #nternet connections is 0ust )3.@ million, of which )).B@ million are broadband links. This indicates that most people share #nternet access in offices or cyber cafes. 9n average unlimited broadband plan costing about s @5* per month is still too e"pensive in a country where the monthly per capita income is s ,B)*. /f all the broadband connections, only )I access the #nternet at ) Mbps or higher speeds. 9bout 53I of users access #nternet at speeds of 56 :bps or lower, and for 23I the speeds are between 56 :bps and ) Mbps. The survey found that more than @5I of #nternet usage is among school- and college-going students and those who have recently graduated. However, there is a stark contrast in the usage patterns between urban and rural users. 9n urban youth accesses the #nternet for emails, social networking and research about education, in that order of priority. 9 rural youth uses the #nternet to listen to music, watch videos, download download photos and email. #ndia is now of one of the top markets for Jahoo. Jahoo is now focused on localising content for rural masses. Mumbai has the highest number of #nternet users D6. millionE followed by 4elhiK+( D5 millionE, millionE, :olkata D.3 millionE millionE and (hennai D. millionE. &hile common access points such as cyber cafes continue to be important, there has been a dramatic fall in access from cyber cafes. 9ccess from home, at 2@I, has grown at the cost of cyber cafes and access from offices. The survey found that of the active users, 3BI used the #nternet at least si" times a week and BI used it daily.
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Product
&e now e"amine some of the ways in which marketers can, and some already have, enhanced and e"tended the traditional elements elements of marketing marketing by using the #nternet as a marketing marketing tool, particularly in the #ndian scenario. 9dding product value through information. 9 product is more than 0ust the physical entity. elevant information about related topics also add to the product>s value, and make it easy for the customer to make brand and product choices. 9 marketer can use the website to provide information about the product, and topics related to the the produc productt group group in which which it comp compete etes. s. or or e"am e"ampl ple, e, car manufa manufact cture urers rs could could give give informat information ion about about travel travel destina destination tions, s, diaper diaper compani companies es about about childcar childcare, e, pharmac pharmaceut eutical ical companies about health care and various disease states, and so on. Such techni!ues of providing useful, related information are used in building brand e!uity by forging relationships, relationships, whereby e"isting and potential potential customers begin to identify the brand with that particular product category or certain activities. Frand and site loyalty are developed by providing current and continually evolving information, as this gives visitors an incentive to revisit the website. The concept here is that the website is similar to a maga$ine which people read and marketers use to communicate product and no product information -- it is a living document which needs to be updated, in synchroni$ation synchroni$ation with the overall marketing marketing strategy of the company. Many companies actually allow potential customers to design their own products through interactive websites, within certain specification limits. These orders are then automatically registered and routed to the logistics department. Croduct choice and convenience of ordering can give customi$ed products DTarafdar )==BE. 9s far as #ndian compan companie iess are concer concerned ned,, e"por e"porter terss and and manuf manufact acture urers rs of phy physic sical al produc products ts -- from from commodities to handicrafts, from leather to tea, from seafood to tobacco -- can use the market space to contact customers, but not to deliver their wares. So, the net need not define their product strategy. strateg y. However, marketers of products that can be digiti$ed d igiti$ed and distributed distribut ed directly over over the net can can cash cash in on the the cyber cyberspa space ce by design designing ing approp appropria riate te offe offeri rings ngs.. Cure Cure information relating to the #ndian markets, the economy and the stock markets are hot among the users of such data, who routinely use the net as their primary shopping spot. The The #nternet can be the delivery vehicle for providing business information. #nformation products like newspapers newspapers and maga$ines maga$ines from the country are already on the web. 9lthough 9lthough most of them are free at the moment, the trend is being set by on line publications from the ?S and ?: that charge users a fee to access their news articles and data banks. There are many takers all over 11 | ) a g e
the world for #ndian news and this market is growing day by day< hence, these services would help develop develop an informat informationion-mar market ket that that the #ndian #ndian compani companies es can e"ploit. e"ploit. #nforma #nformation tion seller sellerss like like the the Mu Mumb mbai ai Dan #ndia #ndian n city city form formerl erly y kno known wn as Fombay FombayEE based based (ent (enter er for Monitoring Monitoring #ndian 7conomy D(M#7E D(M#7E are running websites which surfers can access for data on the #ndian economy. #ndian advertising agencies also have web-sites that open up their detailed information bases and full range of services to paid subscribers are pointing to the future. 9mong the other ideal products for the cyberspace is software. Since software, like information, can be downloaded directly over the net, the acts of marketing, sampling and selling are fused together seamlessly seamlessly in the cyberspace. #ndian software companies targeting targeting global global buy buyers ers can use the &eb &eb effecti effectively vely to advertis advertisee and vend their products. products. Some Some companies like the #nfosys and the +ational #nstitute of #nformation Technology D+##TE are already doing this. 7ducational courses are &eb compatible, too. 9ptech is planning to conduc conductt online online e"ami e"aminat nation ionss for studen students, ts, and for for deliv deliveri ering ng onlin onlinee course coursed d throu through gh multimedia. The +##T is starting the +etvarsity with its 0ust-in-time training modules. The #ndian government set up a web site on 9ugust =th, )==B, giving consumers over the world a chance to access information about the different tourist places in the country, about #ndian history, etc.
Price
The economics of manufacturing products for the cyberspace is uni!ue, primarily because a product has to be created only once and stored digitally. The cost of the product tends to be comparatively low because an on-line marketer avoids the e"pense of maintaining a store and the accompanying costs of rent, insurance, and utilities. 4igital catalogues can be produced at price much less than the cost of printing and mailing paper catalogues. 9s in any other competitive new market, demand and supply, rather than the cost-plus formula will determine the price. The real innovation, however, will be the fact that sales will typically be in small units rather than complete packages -- one item of information instead of the entire database< a small application instead of the entire program< individual songs rather than the entire album< one training module instead of the entire course. That is why +##T>s +etvarsity is able to sell its training modules at prices as low as ?S4 each DShankar )==BE. #n addition, the reduction in cost e"penditures normally incurred in marketing a product globally De.g., advertising and sales-teams in multiple markets -- nationsE, can be reduced, if not eliminated,
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by via the th e reallocation of these activities ac tivities on the net< and an d thus, result res ult in a lower cost, and an d thus, price, or a higher unit profit contribution.
Promotion
or promotion, the #nternet>s big technical advantage over conventional forms of media is that the cost of reaching out to each additional person keeps crashing as the web widens. Signals are carried by phone lines at a speed which keeps bills low. The web acts as a cyberspace version of yellow pages. #t transcends borders letting a C( user in 9merica access an information docket from a website in #ndia. Marketers should consider the world>s net surfing community as a market in its own right. The findings of a +ielson survey says that surfers, as a consumer group, are richer and younger than most people, they are likely to be early early adopter adopterss of new products products and services services DCrabhakar DCrabhakaran an )==6E. )==6E. #ndian #ndian markete marketers rs are therefore now reali$ing the use of the net to reach global audiences. Many agencies in #ndia are putting in a lot of money to make their popular sites. Specific industries that they are attracting for this purpose are tourism, real estate, publishing, financial institutions and airfreight services -- all in the business of e"ports. The Caper Croducts 1td., a packaging company has a home page on #ndia 1og, a site offered by Crogressive Science #nformation Cvt. 1td. DCS#CE whose server is located in the ?.S. The most common kind of an ad is a >banner>. This small patch of te"t-visual space can be placed is a side column along with other information, or made to creep on to the C( user>s screen whenever he initiates a >search>. This website has already attracted advertisers such as the Malhotra Group and the #on 7"change 1td. DTarafdar )==BE. 9dver 9dverti tisin sing g on the net has been been given given the the name name >webv >webvert ertisi ising> ng>.. Since Since webve webvert rtisi ising ng is interactive, it can be used to send purchase order forms back and forth, so an advertiser can correlate his ad spend with the sales achieved. The Malhotra Group has reported orders worth a daily average of s)*,*** Dappro"imately ?4S 5*E for its 1a$er blades through the #nternet. Jet, the web might take years to become a big force in #ndian advertising, mainly due to the very few telephone lines available for it by Lidesh Sanchar +igam 1td. DLS+1E -thus, limiting the surfer>s style. There are only B* lines supporting Fombay, which has 56 per cent of the total surfers in #ndia. Fut some of the space sellers in #ndia have bypassed the #ndian telecommunication tangle by setting sites in places outside #ndia which have high speed links. This obstacle, however, should and is being diminished as more businesses are 13 | ) a g e
reali$ing the potential for growth in this market. or e"ample, #ndian advertisers, have reali$ed that for corporate advertising outside the country, the website is the best option -- in terms terms of cost versus versus benefit benefit Di.e., Di.e., reachE. reachE. #t is like a permane permanent nt face face of the company company to the world. There is no limit to the on the amount of information one can give. So, to woo foreign institutional investors who need information about banking and finance in #ndia, having a web site is ideal -- thus, the pressure to e"pand this availability of this technology is incre increasi asing. ng. (usto (ustome merr servic servicee and and produ product ct sup suppor portt has has becom becomee a strate strategic gic lever lever for competitive advantage. The #nternet makes it possible for companies to run 3-hour service centres for their customers across the globe. (ustomers can log into predetermined websites and re!uest for maintenance and service, giving details of their problems. (omplaints get logged into the company>s database and re!uest can be served on-line, especially if the product is software or any an y consultancy service. service .
Place
#n regard to >place> variable of the Marketing Mi", the most powerful boost to international marketing comes from the fact that the +et makes the physical distance between the buyer and the seller immaterial immaterial for digiti$ed products De.g., software, information, information, etc.E. 9s for the distribution distribution of tangible -- not digiti$ed products -- the net can serve as a coordination coordination tool to achieve higher efficiencies. +o longer do #ndian companies targeting global customers need to set up e"pensive distribution channels -- usually the highest entry-barrier entry-barrier in open markets -- in different countries. /ne website, located in any computer in the world, can service consumers all over the world. Creviously, distribution and payment were not integrated on the net and payments had to be made in the real world either through cash or credit cards. +ow even that has been simplified with secure on-line payment systems, emerging in the form of credit cards and electronic cash. 9nother obvious >place> use of the #nternet is that products can be sold anywhere in the world, 3 hours a day, through interactive selling. #t takes less time and capital to set up a virtual shop, complete with advertising advertising and merchandising. merchandising. Small companies can have as much as a presence as the larger ones, their effectiveness effectiv eness being b eing limited only by b y the creativity of the site design and the convenience which can be provided to the customer.
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The #nternet represents an efficient and effective vehicle in which businesses especially those of small and medium si$e -- in #ndia, as well as other lessor developed countries, can overcome many of the common barriers to entry into the global market place De.g., capital investment investment and accessE. #t is evident that the use of the #nternet in #ndia is not as advanced as in many other countries, but there has been a phenomenal amount growth in the use of this technology as a marketing tool, and even more promise as an opportunity to promote to the world. 1ikewise, 1ikewise, #ndian consumers also have the opportunity to seek out goods and services beyond their local, regional and national boundaries. This universal access may also have a positive impact on the !uality of life of some population segments -- if this concept can be defined at least in part by the value D!uality price ratioE and variety Dnew and better !ualityE of products< via an increase in competition competition and the likely result of lower or more competitive competitive prices due to the very nature of the economic principle of supply and demand. How and by whom this technology is e"ploited for competing competing in the global marketplace will determine in large part the future of commerce in #ndia, and the world.
#n the research paper of NThe (omplementary oles of Traditional and Social Media in 4riving Marketing Cerformance’ by 9ndrew T. Stephen 9nd Aeff Galak, the authors have discussed thoroughly on how the Social Media and traditional marketing are complementing each other in a way that both together can emerge to be the ne"t big thing. #n the abstract authors summarise the paper as NThe media landscape has dramatically changed over the past decade, with traditional media De.g., newspapers, televisionE now supplemented by social media De.g., blogs, discussion forumsE. This new media landscape is not well understood with respect to DiE the 0oint impacts of traditional and social media on marketing performance De.g., salesE, DiiE how these media types influence each other, and DiiiE the mechanisms through which they affect marketing outcomes. These issues are e"amined with )3 months of daily performance data and media activity for a microfinance website. The authors find that both traditional and social media have strong effects on marketing performance, though a single unit of social media has a much smaller effect than a single unit of traditional media. However, because social media is created in larger volumes than traditional traditional media, it has a si$eable effect on performance Di.e., social media is high-volume, low-margin, whereas traditional media is low-volume, high15 | ) a g e
marginE. urther, social media acts as a broker of information flow in an informal network comprising traditional and social media outlets.’
Through this we can get to know how important both traditional traditional as well as the eMarketing is for today’s marketing scenario especially in #ndian background which is one of the fastest develo developin ping g geogr geograph aphic ic area area in the the world world with with one fo the larg largest est marke markett which which is still still une"plored.
7-(ommerce has shown a very e"citing growth trend among the travel and retail sites, which have gained considerable acceptance within the #ndian population. ew relevant statistics mentioned below highlights this e"citing growth trend8 •
#(T( D#ndian ailwaysE, MakeMyTrip and Jatra are amongst the most visited travel sites in #ndia.
•
lipkart leads the way among the online retailers in #ndia with @.3 million uni!ue visitors a month, growing at 32)I annually. Snapdeal has been close second with 6.= million uni!ue visitors.
•
9pparel has been the fastest growing subcategory in retail and reaches )2.3I online users in #ndia.
etail growth in e-(ommerce in #ndia has been primarily fueled due to the following factors8 •
Several startup ventures getting the re!uired funding from Lenture (apital funds or Crivate 7!uity funds
•
9ggressive marketing by the players going online
•
(onsumer need and convenience to buy these products online
Today #ndian e-(ommerce market has been bu$$ing due to significant progress achieved in all the four pillars of e-(ommerce8 technology, logistics, payment and marketing. •
ClatformsK products have been developed in various robust and scalable Technology ClatformsK technologies such as 7nterprise Aava, Microsoft Technologies as well as open source technologies Dprimarily Magento frameworkE.
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•
Logistics The level of connectivity between Supply chain management and last mile
logistics and end customers have greatly improved over the past few years. The increasing increasing presence of international international logistics player in #ndia such as ed7" Dac!uired 91E and 4H1 Dac!uired Dac!uired Flue dartE etc. has compelled the #ndian players to upgrade their logistics services offerings. •
/ther than usage of (ards and +et Fanking payment modes, the newer Payment models like (ash on 4elivery D(/4E and other consumer centric payment options such as 7M# for purchases has boosted the growth of online commerce. ?sage of 4ebit cards for shopping as well as credit card penetration in the country is also increasing year-on-year.
•
/n the digital marketing side, people have partnered with Google, who Marketing provide analytics to retailers, and demonstrated that usage of 9d&ords 9d&ords can drive traffic.
/nline retail has seen a heavy overlap with social networking and search due to aggressive marketing and strong inclination towards social commerce. #ndia is positioning itself as one of the fastest growing social networked user base. To conclude, conclude, e-(ommerce has seen tremendous growth in the last ) months. Jet, Jet, these are still early days, as the e-(ommerce e-(ommerce industry in #ndia is set to boom further, perhaps reaching 6* billion, by *5, according to a report by irst 4ata (orporation and #(#(# Merchant Services.
Google India Study reports numbers about online shopping in India; ‘Electronics’ Top Top Search but ‘ppare ‘ pparels’ ls’ most bought
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Thee methodo Th methodolo logy gy used in this pro0ec pro0ectt is 4escr 4escrip iptiv tivee and 7"plo 7"plorat ratory ory resear research ch..
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descriptive research method refers to the method used to describe data and characteristics used to describe the population. The purpose of using the descriptive research method is to ac!uire accurate, factual, systematic data that can provide you with an actual picture of the data set that you are reviewing. #t is advice that the descriptive research method should not be used to create a causal relationship, where one variable affects the other. 7"ploratory research of research conducted for a problem that has not been clearly defined. 7"ploratory research helps determine the best research design, data collection method and selection of sub0ects. #t should draw definitive conclusions only with e"treme caution. Given its fundamental nature, e"ploratory research often concludes that a perceived problem does not actually e"ist.
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The research statement of this pro0ect is the comparative study of traditional and online marke marketi ting ng in #ndian #ndian scena scenario rio whic which h is preva prevaili iling ng now now and and how inter internet net marke marketi ting ng is overshadowing the traditional marketing.
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Secondary data are information that already e"ists, collected by others. These could be in form of books, 0ournal articles, online data sources such as web pages of companies, etc. The data collected in this pro0ect are mainly secondary data. The main source for these secondary data were8 •
+ewspaper 9rticles
•
Aournals
•
9rticles
•
Maga$ines
•
&eb sources
•
eports
The information information gathered from these source of data have been analysed and then used in this pro0ect according to the th e need and topic discussed in this pro0ect. This is a very v ery crucial stage where the data is collected is put up in a way that the research statement is 0ustified and the solution for it can be found out. Since there was no need of primary data and all the information was dependent on the secondary data only the pro0ect has its own limitation as well as advantage.
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The research and secondary data which was gathered in the time period depicted following results8 #n research done by +ielson, #nternet advertising has been outgrowing traditional forms like television, radio, maga$ines, and newspaper. #t is pro0ected to take up a !uarter of the advertising share by *)5. Cenetration level of traditional and online marketing8 2!11 2!12 2!13 2!14 2!15 *.2I )B.=I )@.BI )6.BI )5.=I N-9+-% =.3I B.BI B.2I @.BI @.2I M+.+=*#- 2=.=I 3*.I 3*.)I 3*.)I 3*I T--**&# @.)I @.*I 6.=I 6.@I 6.6I R+'*& *.5I *.6I *.5I *.6I *.6I C*#-/+ 6.@I 6.6I 6.5I 6.3I 6.2I O($'&&% )6.)I )B.*I )=.BI ).6I 2.3I I#$-%#-$ Source ! In"ographic# Internet Marketing Statistics $ou %an’t %an’t Ignore
Mode of operation in #ndia among the retailers Din percentageE8 >(*#- &-%+$*&# /&'O00*#- &-%+$*&# O#*#- &-%+$*&# O00*#- &-%+$*&# 9*$ E?)&//-%) E?)&//-%)-- %+#) O#*#- &-%+$*&# 9*$ &00*#- %+#)
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&anner'PP%'Search &anner'PP%'Search marketing E Mail Marketing SMS Marketing Social media promotions promotions other
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4"! R-($ +#' '*)(*&# 4"1 R-($ The results which came out of this pro0ect and secondary data depicts how the new entry i.e. online marketing is overshadowing the traditional marketing but still online marketing is far behind the traditional marketing in real world. Foth online and traditional marketing when used together works wonders in terms to be a successful mantra for winning the market. There are many products which consumers still have no faith in buying online instead they want to see, touch and confirm it on themselves like furniture, apparels apparels etc., but the there are benefits of online marketing mark eting as well on the traditional tradit ional marketing. (nline Marketing
1et us know some of them which was found out through this pro0ect8 R-+)
The nature of the internet means businesses now have a truly global reach. &hile traditional traditional media costs limit this kind of reach to huge multinationals, eMarketing opens up new avenues for smaller businesses, on a much smaller budget, to access potential consumers from all over the world.
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#nternet marketing allows the marketer to reach consumers in a wide range of ways and enables them to offer a wide range of products and services. 76*Marketing 76*Marketing includes, among other things, information management, public relations, customer service and sales. &ith the range of new technologies becoming available all the time, this scope can only grow.
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&here &hereas as tradit traditio ional nal marke marketi ting ng is larg largely ely about about getti getting ng a brand’ brand’ss messa message ge out there, there, eMarketing facilitates conversations between companies and consumers. &ith a two way communication channel, companies can feed off of the responses of their consumers, making them more dynamic and adaptive. 26 | ) a g e
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#nternet marketing is able to, in ways never before imagined, provide an immediate impact. #magine you’re reading your favourite maga$ine. Jou see a double-page advert for some new product or service, maybe FM&’s latest lu"ury sedan or 9pple’s latest iCod offering. &ith this kind of traditional media, it’s not that easy for you, the consumer, to take the step from hearing about a product to actual ac!uisition. &ith &ith eMarketing, eMarketing, it’s easy to make that step as simple as possible, meaning that within a few short clicks you could have booked a test drive or ordered the iCod. 9nd all of this can happen regardless of normal office hours. 7ffectively, #nternet marketing makes business hours 3 hours per day, @ days per week for every week of the year. Fy closing the gap between providing information and eliciting a consumer reaction, the consumer’s buying cycle is speeded up and advertising spend can go much further in creating immediate leads.
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Generally speaking, speaking, the demographics demographics of the #nternet are a marketer’s dream. #nternet users, considered as a group, have greater buying power and could perhaps be considered as a population group skewed towards the middle-classes. Fuying power is not all though. The nature of the #nternet is such that its users will tend to organise themselves into far more focussed groupings. Savvy marketers who know where to look can !uite easily find access to the niche markets they wish to target.Marketing messages are most effective when they are presented directly to theaudience most likely likel y to be interested. The #nternet creates cre ates the perfect environment for niche marketing to targeted groups.
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(losed 1oop Marketing re!uires the constant measurement and analysis of the results of marketing initiatives. Fy continuously tracking the response and effectiveness of a campaign, the marketer can be far more dynamic in adapting to consumers’ wants and needs. &ith eMark eMarketi eting, ng, respo response nsess can can be analy analysed sed in real real-ti -time me and campai campaigns gns can can be tweak tweaked ed continuously. (ombined with the immediacy of the #nternet as a medium, this means that there’ there’ss minimal minimal advertis advertising ing spend spend wasted wasted on less than than effecti effective ve campaign campaigns. s. Ma"imum Ma"imum
27 | ) a g e
marke marketi ting ng effi efficie ciency ncy from from eMark eMarketi eting ng create createss new opp opport ortuni unitie tiess to sei$e sei$e strate strategic gic competitive competitive advantages. The combination combination of all these factors results in an improved /# and ultimately, more customers, happier customers and an improved bottom line. Traditional Traditional Marketing
&hile &hile newer newer marke marketin ting g metho methods ds do work work and can incre increas asee a compan company> y>ss clien clientt base, base, completely replacing traditional marketing with the latest marketing techni!ues can prove dangerous. Traditional methods have a high success rate and are proven. #nternet methods are sub0ect to clients or customers having access to an online medium and being #nternet savvy. &ith traditional marketing, anyone with a newspaper, mail service, television or radio can learn of your business or service. ather than customers going online to find your business or service, you bring your business or service to potential customers with print advertisements and other traditional methods. +ow let us find us some key points where traditional marketing is winning over online marketing8 S$&),
9 fundamental of retailing. etailers clearly have plenty of stock and great channels and relationships relationships to get more of it. Fy comparison, comparison, their online retailers either have to invest in it or spend considerable time creating relationships with suppliers to ac!uire it.
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#n addition to their stores, many retailers have other space to store their product. /nline retailers have to find, create and pay for this space which is a given for their traditional retailers.
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9gain a standard operational fundamental of retailing and an asset online retailers need to resource. /r put another way, properly resourced, e"isting staff can be re-purposed towards online operations.
28 | ) a g e
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etailing has been around for centuries and over that time have developed systems for everything everything from sourcing product to conducting conducting stocktaking. /nliners need to establish these from scratch.
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Crobably the most important asset of all. Traditional retailers in most cases have been looking after customers for years. #f they could be counted, they would probably number several thousand. Fy comparison, online retailers need to invest heavily to attract those kinds of numbers.
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1ike many of these factors, traditional retailers have built in credibility that onliners have to work hard to attain. Simply by having a street address that can be passed, seen and even droppe dropped d into into provid provides es a massi massive ve advant advantage age over over their their onlin onlinee compet competit itors ors who battl battlee considerable suspicion and caution before buyers will hand over their credit card details to them. This advantage cannot be underestimated in a increasingly cautious online market.
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Having usually worked in the game for some time, traditional retailers have that asset that often cannot be bought relationships with the gamut of retail stakeholders stock suppliers, other suppliers, other retailers and as discussed, customers. Many online retailers have to build these relationships from scratch and may never be able to match those of the traditionalists.
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9 massive advantage that should never be underestimated. The e"perience of the retailer is something that most onliners simply don’t have. Jet it is as valid to the online world as it is to 2 | ) a g e
their traditional modus operandi. The trick is simply understanding how to translate that e"perience to an online setting something that with the right guidance, isn’t as difficult as many would make it out to be.
#dentifying and understanding your target audience is still the key to marketing success. Many traditional marketing techni!ues remain appropriate. 9udience segmentation is one e"amp e"ample. le. Marke Markete ters rs can ident identify ify ways ways to provid providee a relev relevant ant and meani meaningf ngful ul custo custome mer r e"perience by creating segments for a number of components like8
•
•
audience composition buying behaviour
•
geography
•
events
4o you have a current and precise overview of your target audience so that you can create a persona' The first step is to know your customer so that you can tailor relevant messages, offers and content to them, taking into consideration the media preference of your audience throughout an entire lifecycle. &ith defined audience segmentation and on target offers, traditional marketing is still very effective effective when ac!uiring some customer segments. Traditional Traditional marketing marketing strategies strategies offer an effective way to deliver content to current and prospective customers, and can become a catalyst to drive your web site along other traffic marketing assets. This traditional marketing approach is often referred to as PpushQ marketing. Cromotions Cromotions and offers are still important important pieces in the marketing mi", but in *)2, content is a new form of currency. currency. #nstead of relying solely on coupons and price discounts, marketers marketers can offer valuable information that consumers will find relevant and engaging.
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4eli 4eliver verin ing g the right right messa message ge throug through h the prope properr chann channel el is mo more re impor importan tantt than than ever ever.. Traditional marketing strategies still work as they e"pand to incorporate more options.Here’s how Strategic Marketing Solutions can help with your traditional marketing strategies8
•
#dentify your target audience.
•
(reating relevant content that will optimi$ed the customer e"perience.
•
Select channels for delivery including 7mail andKor 4irect Mail.
•
4evelop a variety of marketing materials for the selected channels
•
Test messages and then measure results.
31 | ) a g e
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Marketing Goals8
(ustomer 9c!uisition came out to be the primary marketing goal for retailers during this pro0ect research based on the secondary data. dat a. (ustomer retention and brand awareness awar eness follow respectively according to the both online De*(ommerceE and offline Dbrick mortar storesE retailers. •
Chysical or Lirtual8 Lirtual8
Most of the retailers seems to be convinced of going online for capturing the bigger market even while having their physical stores. ew retailer even seem to have been convinced with the idea of trying something new with their store in order to reach out to more customers. •
Going /nline8
(ompanies are looking to increase their online e*(ommerce (ommerce activities while about some are planning to start an online o nline retail presence soon. s oon. •
?se of Technology8
+ot a lot of companies are into use of internet as a source of marketing but most of them seems to be keen to enter into this new segment of internet in order to reach the youth target who are actively participating in the social media and online buying. So the scope is very good in this criteria to e"plore. •
7mail vs. Mobile8
9 lot of brick and mortar DofflineE retailers was found to be using Mobile as a marketing channel while very less of the e*(ommerce companies are doing the same. 7 Mail marketing is still not have penetrated and going well with brick and mortar companies while online companies rely mostly on 7mail marketing. •
?se of 9nalytics8
32 | ) a g e
4emographics Dage, gender, location etc.E and average basket value is the top two metrics used by #ndian retailers to understand their customer base as seen in through the secondary data found out on the websites.
•
(ustomer 7ngagement8
?nderstandably, when it comes to customer engagement, brick mortar stores and online retailers think differently. &hile most of the offline retailers feel sales special offers get them ma"imum engagement very few of online retailers feel the same way. Most of the e*(ommer (ommerce ce compani companies, es, 7m 7mail ail marketi marketing ng is the more preferre preferred d platform platform for custome customer r engagement. •
/nline Marketing #nvestments8
&hen &hen it comes comes to offl offline ine retai retailer lers, s, mo most st of them them go with with social social medi mediaa for mark marketi eting ng investments while very few seem to go with email marketing. 9t the same time, when looking at online companies, they rely mostly on both the social media as well as email marketing e!ually.
The #ndian retail industry has e"perienced growth of )*.6I between *)* and *) and is e"pected to increase to ?S4 @5*-B5* billion by *)5. ood and Grocery is the largest category within the retail sector with 6* per cent share followed by 9pparel and Mobile segment. segment.&i &ithin thin the organi$ organi$ed ed retail retail sector, sector, 9pparel 9pparel is the larges largestt segment. segment. Pood Pood and GroceryQ GroceryQ and PMobile and telecomQ are the other ma0or contributors to this segment. The ecommerce market in #ndia is smaller than in other markets, but it is growing the fastest. etailers have a si$eable opportunity as the online population starts to spend more and buy more fre!uently online.Similar to retailers in most emerging e-(ommerce markets, retailers in #ndia are doing whatever is necessary to drive consumers to shop online. /nline shoppers e"pect to see good deals online accompanied by free or very low-cost shipping.To be successf successful ul online online in #ndia, #ndia, e-Fusin e-Fusiness ess professi professional onalss mus mustt understa understand nd local local e-(omm e-(ommerce erce trends. Two key areas that companies must focus on in all markets -- locali$ed payment and fulfilment options -- are particularly essential in #ndia. 33 | ) a g e
9n increasing number of global companies are eyeing the rapidly growing e-(ommerce market in #ndia as improvements in infrastructure are made and #ndia’s economy grows. 9s the world’s ))th-largest economy Dand fourth-largest emerging economy after F#( peers (hina, Fra$il, andussiaE, andussiaE, #ndia is starting to appear on e-Fusiness e-Fusiness organi$ations’ organi$ations’ lists of key international marke markets. ts. &hil &hilee #nter #nternet net penet penetra rati tion on is low at 0ust 0ust )*I of the the overa overall ll pop popul ulati ation, on, the government is building infrastructure to improve and enable connectivity in metropolitan and rural areas and with the **) census showing an estimated 7nglish-speaking population of )5 million, #ndia currently appeals to global companies looking to sell online using their 7ngli 7n glishsh-la langu nguage age websi websites tes.. (urr (urrent ently ly,, shopp shoppers ers in metr metropo opoli litan tan #ndia #ndia are drivin driving g e(ommerce8 These consumers are primarily buying travel, consumer electronics, and books online online.3 .3 9nd althou although gh spendi spending ng per onlin onlinee buy buyer er rema remain inss low, low, som somee 5=I of online online consumers in metropolitan #ndia already make purchases online at least monthly.5 (onsumers in nonmetropolitan areas will also help fuel growth< unlike online consumers in cities, they are more likely to shop online for goods that are unavailable at local stores.
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9s the e(ommerce market in #ndia develops, so will its consumers. etailers should be aware that8 •
(onsumers e"pect the returns process to be seamless and convenient. Traditionally, the shopping culture in #ndia is not returns-friendly. However, online shoppers have come to e"pect the option to return items purchased online, and retailers have made doing this convenient R at their own cost. /ne of the top online retailers in #ndia, for e"ample, has gone so far as to offer an at-home pickup service for returned goods. The cost is high, but the retailer considers this option necessary to develop consumer trust and confidence in the retailer. &hile such at-home pickup for returns is typical in other other emergi emerging ng markets markets,, markets markets tend to shift shift from this labourlabour-int intensi ensive, ve, often often inconvenient process to prepaid return labels as the e(ommerce ecosystem develops.
•
1ike e(ommerce e(ommerce retailers in other emerging emerging markets such as Fra$il, it is standard for e(ommerce retailers in #ndia to offer free, relatively !uick delivery of online orders.
34 | ) a g e
HomeShop)B, for e"ample, offers free shipping for the ma0ority of its items and delivers within five days. MyGrahak offers free 3B-hour delivery, but it will deliver within 3 hours for an e"tra ?S*.BB. To compete in #ndia’s nascent e(ommerce market, online retailers have little choice but to offer the same convenience and low cost that their local counterparts are offering, a situation that venture capitalists haveidentified as unsustainable in the long term. &hile retailers cite free shipping as an essential first step to drive customers toshop online and win customer loyalty, companies companies investing in the space must consider how longthey can sustain this type of offering. •
#n addition to the challenges of offeringfree shipping, retailers also face hurdles in matching the highly discounted prices that leadingonline retailers have traditionally offered on their sites. +ew entrants have struggled to keepup8 ?pstart Taggle.com ceased operations in late *)), for e"ample, citing its unwillingness toengage in a price war with retailers selling sellin g below cost to gain customers. custo mers.
•
#n #ndia, as in all other markets, payments and fulfilment are two of the areas that retailers mustmost heavily locali$e.
7-(ommerce PnormsQ are still being established in #ndia, where the e(ommerce market is 0ust developing and an d e"perienced eFusiness eFusin ess professionals are still s till hard to find. •
#n #ndia, no single player today can handle all aspects of the e(ommerce business on behalf of ma0or retailer or brands. #nstead, eFusinesses will need to manage every step of the eFusiness operation Rfrom site design to fulfilment solutions to employee training. 1eading e(ommerce sites in #ndia today tend to build their capabilities rather than buy, although although that scenari scenario o is likely likely tochange tochange as more more global global players players with with e"isting vendor partners enter the market. 7Fusinessesentering the #ndian market must be aware of the need to work with a variety of partners andbe willing to work through the challenges of integrating multiple solutions.
•
&hile the mobile opportunity in #ndia is nascent, it is undeniably going to be a critical part of how consumers interact online. 7Fusinesses should take advantage of this growing trend by including a mobile website as part of their offering offering R ensuring that
35 | ) a g e
it is accessible on bothfeature phones and smartphones, given the relatively low penetration of smartphones s martphones in #ndia today. toda y.
The main differences which was found out during this pro0ect research between online marketing and traditional marketing were8 I#$-%#-$ M+%,-$*#.
T%+'*$*&#+ T% +'*$*&#+ M+%,-$*#.
#nternet Marketing is very economical and fast way
Traditional Marketing is very e"pensive
to promote product. #nternet Marketing is very useful for promoting
and takes more time to promote product. #t is very e"pensive and time consuming
product globally globall y without any additional cost. c ost. #n #nternet Marketing, you can also work with less
process for traditional tradition al marketing. #n Traditional Marketing, you need more
employs you can take more work with less
employment with more man power which
manpower. #n online business you can sell or buy product 3 U
in terms re!uires spending more money. That is not possible in traditional
@, round the year without employing any person. Caying Crofessional and 7"perienced #nternet
marketing. Caying renowned 9dvertising and
Marketing (ompany is very economical.
Marketing (ompany is very costly.
Gro)th prospects prospects )hich )as "ound out during this research )as as "ollo)s#
7-commerce in #ndia is still in budding stage but it offers e"tensive opportunity in developing countries like #ndia. Highly intensed urban areas with very high literacy rates, an enormous rural population with fast increasing literacy rate, a rapidly growing internet user base, technology advancement advancement and adoption and such other factors make #ndia a dream destination destination for e-commerce players. Moreover, stumpy cost of personal computers, an emergent installed base for #nternet use and a progressively more competitive #nternet Service Crovider D#SCE market has added fuel to the fire in augmenting e-commerce growth in 9sia’s second most populous nation. #ndia’s e(ommerce industry is on the growth curve and e"periencing a surge in growth. The /nline Travel #ndustry is the biggest segment in e(ommerce and is flour flouris ishin hing g large largely ly due to the the #ntern #nternet et-sa -savvy vvy urban urban pop popula ulatio tion. n. Th Thee other other segm segment ents, s, 36 | ) a g e
categori categori$ed $ed under under online online non-trav non-travel el industry industry,, include include e-Tai e-Tailing ling Donline Donline retailE retailE,, online online classifieds and 4igital 4ownloads Dstill in a blossoming stageE. The online travel industry has some private players such as Makemytrip, (leartrip and Jatra as well as a strong government presence in terms of #(T(, which is a successful #ndian ailways initiative. The online classifieds classifieds segment is broadly divided into three sectors< Aobs, Matrimonial Matrimonial and eal 7state. Mobile(ommerce is also growing rapidly and proving to be a stable and secure supplement to e(ommerce due to the record growth in mobile user base in #ndia, in recent years. Growth drive drivers rs and and barrie barriers rs are presen presentt in e!ual e!ual measur measures es for new e(om e(omme merce rce ventur ventures. es. 9 description by the #nternet and Mobile 9ssociation of #ndia has e"posed that #ndia’s ecommerce market is mounting at an average rate of @* percent annually and has grown over 5** percent since **@. The current estimate of ?S 6.@= billion for year *)* is way ahead of the market si$e in the year **@ at ).@5 billion. The following chart depicts the growth of 7-commerce in #ndia in the last couple of years.9pparently, more online users in #ndia are willing to make purchases through the #nternet. /verall e-commerce industry is poised to e"perience a high growth in the ne"t couple of years. The @* percent year on year growth is e"pected to continue and #ndia’s e-commerce market is forecast to reach a whopping ?S )* billion by the end of *)).The e-commerce market in #ndia was largely dominated by the online travel industry with B*I market share while electronic retail D7-TailingE held second spot with 6.3BI market share.7-Tailing and digital downloads are e"pected to grow at a faster rate, while online travel will continue to rule the ma0or proportion of market share. 4ue to increased e-commerce initiatives and awareness by brands, e-Tailing has e"perienced decent growth. 9ccording to the #ndian 7commerce eport released by #nternet and Mobile 9ssociation of #ndia D#9M9#E and #MF #nternational, PThe total online transactions in #ndia was s. @*B* crores Dappro" ).@5 billionE in the year **6-**@ and it was grown by 2*I to touch s. =)* crores Dappro" .)5 billionE by the year **@-**B. 9ccording to a Mc:insey-+asscom Mc:insey-+asscom report the e-commerce e-commerce transactions in #ndia hasreached )** billion by the **B. 9lthough, as compared to the western countries, #ndia is still in is its initial stage of development. Home #nternet usage in #ndia grew )=I from 9pril **6 to 9pril **@. #n 9pril **@ it became 2*.2 million and the e-Marketer accepts that there will be @) million total #nternet users in #ndia by *)). #ndia is showing tremendous growth in the e-commerce. ival tradeindia.com has @**,*** registered buyers and it has the growth rate of 25I every year which is doubled in the year **B. #ndiamart.com claims claims revenues of s. 2B crores and has a growi growing ng rate rate of 5* every every year year.. #t receiv receives es aroun around d 5** 5**,* ,*** ** en!uir en!uirie iess per mo month nth.. ?ndoubtedly, with the middle class of BB million people, online shopping shows unlimited 37 | ) a g e
potential in #ndia. The real estate costs are touching the sky. The travel portals> share in the online business contributed to 5*I of s 3B** crore online market in **@-*B. The travel portal MakeMyTrip.com has attained s )*** crores of turn-over which is around *I of total e-commerce market in #ndia. urther an annual growth of 65I has been anticipated annual annually ly in the trave travell portal portalss alone alone.9 .9cco ccordi rding ng to a Mc:in Mc:insey sey-+a -+assc sscom om report report,, the ecommerce transactions in #ndia are e"pected toreach )** billion by the **B. 9lthough, as compared to the western countries, #ndia is still in is its initialstage of development. 7Marketer forecasts that online sales will more than double by reaching )6B.@ billion in *)). Market share is moving toward 9ustralia, #ndia and especially (hina. (hina’s share of regional F( e-commerce will grow more than threefold from 3.)I in **6 to )3.2I by *)). 9t the low end, South :orea’s F( e-commerce sales will grow by )2.2I over the same period. Fetween **6 and *)), the aggregate (9G for the five countries will be 2.2I.Sales of selected countries in 9sia Cacific /nline travel is the largest e-commerce sales category in most ma0or countries. or the same group of five countries, plus +ew Vealand, online leisure and unmanaged business travel sales totaled about )@.@ billion in **@ and are forecast to rise to 3).@ billion by *)). 7-Marketer forecasts that from **6 to *)) online travel sales will grow at a 3.BI annual rate, higher than the 2.2I rate for F( e-commerce. This indicates that travel is one of the key drivers of e-commerce sales in the 9C9 9C9( region. #n (hina and #ndia, online-travel online-travel spending drives F( e-commerce sales, and it accounts for a ma0ority of total sales. (onsumers are less wary of buying services like train or airline tickets online, and sellers can avoid the logistics and delivery problems associated with physical goods. Aeffrey Grau, senior analyst at e-Marketer, said that such preferences underscore how e-commerce in the region has a vast amount of growth ahead. 7-commerce in these markets will have come of age when consumers start buying more e"pensive, hightouch categories such as apparel, home furnishings and 0ewellery. 9ccording to the eFay (ensus Guide, **= for #ndian e-commerce scenario, it has been observed that #ndia has over ,3@) e(ommerce Hubs consisting of the cities, towns, villages and smaller towns which cover the entire length and breadth of the country. Technology or technology related products dominate #ndia’s domestic e-commerce. &hereas, lifestyle product category dominates in the global trade. Technology, being #ndia’s favourite traded vertical category contributes 33I of totals e(ommerce transactions according to the latest eFay (ensus. 1ifestyle category at 25I comes second in popularity for online #ndians. or Global Trade, lifestyle lifestyle is the clear winner at 63I of all transactions followed by Media (ollectibles at )5I each. 7laborating #ndia’s domestic online shopping scenario, South #ndia has the most active buyers at 3)I of all 38 | ) a g e
transactions, followed by &est #ndia at @I. However, &est #ndia has the most active sellers at 36I, followed by +orth #ndia at BI. 4elhi entrepreneurs sold the most technology gadgets at 36I of all transactions transactions to buyers in #ndia. 1ifestyle scored on the 7"ports front at 6@I of all transa transacti ctions ons.. 4elhi 4elhi sells sells the mo most st mu musi sical cal instr instrum ument entss percus percussi sion, on, brass, brass, synthesi$ers, and guitars - in the country. #n addition to this, 4elhi buyers bought the most sunglasses in the country according to the eFay census. 4elhi buyers have also bought the most number of high end digital cameras in the country.#ndi country.#ndiaa is showing tremendous tremendous growth in the e-commerce. e-commerce. ival tradeindia.com tradeindia.com has @**,*** registered registered buyers and it has the growth rate of 25I every year which is likely to double in the year *)*. #ndiamart.com claims revenues of s. 2B crores and has a growing rate of 5* every year. #t receives around 5**,*** en!uirie en!uiriess per month. month. ?ndoubt ?ndoubtedly edly,, with with the middle middle class class of BB millio millionpeo npeople, ple, online shopping shows unlimited potential in #ndia. The real estate costs are touching the sky. The travel portals> share in the online business contributed to 5*I of s 3B** crores online market in **@-*B. The travel portal MakeMyTrip.com has attained s )*** crores of turnovers which are around *I of total e-commerce market in #ndia. urther an annual growth of 65I has been anticipated annually in the travel portals alone. To make a successful e-commerce transaction both the payment and delivery services must be made efficient. There has been a rise in the number of companies> taking up e-commerce in the recent past. Ma0or #ndian portal sites have also shifted towards e-commerce instead of depending on advertising revenue. Many sites are now selling a diverse range of products and services from flowers, greeting cards, and movie tickets to groceries, electronic gadgets, and computers. &ith stock e"changes coming online the time for true e-commerce in #ndia has finally arrived. /n the negative side, there are many challenges challenges faced by e-commerce e-commerce sites in #ndia. The relatively small credit card population and lack of uniform credit agencies create a variety of payment challenges unknown in #ndia. 4elivery of goods to consumer by couriers and postal services is not very reliable in smaller cities, towns and rural areas. However, many #ndian Fanks have put the #nternet banking facilities. The speed post and courier system has also improved tremendously in recent years. Modern computer technology like secured socket layer DSS1E helps to protect against payment fraud, and to share information with suppliers and business partners. &ith further improvement in payment and delivery system it is e"pected that #ndia will soon become a ma0or player in the e-commerce market. &hile &hile many companies, companies, organi$ organi$atio ations, ns, and communit communities ies in #ndia #ndia are beginnin beginning g to take take advantage of the potential of e-commerce, critical challenges remain to be overcome before e-commerce would become an asset for common people. #ndia’s ecommerce industry is on 3 | ) a g e
the growth curve and e"periencing a spurt in growth. The /nline Travel #ndustry is the biggest segment in ecommerce and is booming due largely to the #nternet-savvy #nternet-savv y urban population. The other segments, categori$ed under online non-travel industry, include eTailing Donline retailE, online classifieds and 4igital 4ownloads Dstill in a nascent stageE. The online travel industry has some private players such as Makemytrip, (leartrip and Jatra as well as a strong government presence in terms of #(T(, which is a successful #ndian ailways ailways initiative. initiative. The onlineclassifieds onlineclassifieds segment is broadly divided into three sectors< Aobs, Matrimonial and eal 7state.
4! | ) a g e
C;APTER ?5
41 | ) a g e
5"! L*/*$+$*&# +#' */*)+$*&# 5"1 L*/*$+$*&# 9lthough the research has been conducted systematically and all the relevant data has been collected carefully in order to eliminateK minimi$e the errors in study, apart from positive situations the study has some limitations too, as listed below8•
The study is entirely based on secondary data collected from #nternet, maga$ines, newspapers, 0ournals etc. This e"poses it to the threat of being accurate authentic only to the e"tent of authenticity and accuracy being
•
provided on internet. intern et. The pro0ect which has been completed within a limited time frame may also
•
stand as a limitation. Since the study is e"ploratory in nature, there is ample scope for further
•
research in this field of study. There was a limitation of financial support, which restricted the scope of my
• • •
research work. The data maybe old and out of date. The sample used to generate the secondary data maybe small. The company publishing the data may not be reputable.
5"2 I/*)+$*&#
42 | ) a g e
Some implications which can be taken out of it and the suggestive measures for future researchers, policy measures, inclusions of result based suggestions is 8
•
Crimary data can be more reliable and so it could be used in this type of research.
•
More emphasis on data mining can be helpful and fruitful in this research.
•
9ll the data must be crossed check with the available data and then should be put in the research paper.
•
Time Time management should be done in order to take out the best output of the research paper.
•
More financial support should be taken in order to reach more mass and get the e"act survey and relevant information.
43 | ) a g e
C;APTER < 6
6"! S(//+% +#' C&#)(*&# 44 | ) a g e
6"1 S(//+% &hile the growth of the digital medium over the last decade has surpassed that of any other media, the year *)2 was especially important in this regard as B6I of top #ndian marketers confirmed their use of this channel as the most vital client engagement platform. The prime use of e-Marketing channels in *)2 was customer ac!uisition. or ma0ority of #ndian marketers this platform proved its effectiveness D=@IE and a substantial number of marketers are using this platform for daily communications communications D23IE with their audiences. /verall /verall the use of e-Marketing platform in *)* was focused on sending promotional communications D6IE and newsletters D5IE. #n terms of budget allocation on e-Marketing platform, 26I of #ndian marketers’ have invested more than )*I of their marketing budgets in *)2. #n terms of generating sales through online medium, it is interesting to know that 36I of marketers are generating more than )*I of their sales online. #t is not surprising that marketers plan on considerably incre increasi asing ng their their bud budge gets ts towa toward rdss emai emaill and SMS SMS marke marketi ting ng in *) *)3. 3. @I of leadin leading g marketers have reported of their plans to increase investments in e-Marketing platform in *)3. &ith increase in budget allocation, there is a positive outlook for e-Marketing platform in *)3. *) 3. (usto (ustome merr ac!ui ac!uisit sitio ions ns remai remain n to be the the prime prime goal goal of #ndia #ndian n marke markete ters rs D5=IE D5=IE.. 9ccording to leading marketers of #ndia, the top three online investment channels for *)3 are Social media, 7mail marketing and Search marketing. #n email marketing, the main challenges challenges faced by marketers in #ndia are Neaching #nbo"’ NFuilding Subscriber 1ists’. 9s reported by #ndian marketers, the top 2 factors impacting email deliverability were8 re!uency, content of mailer and sender reputation. #n order to decrease inbo" clutter, marketers are now focusing on NCersonali$ation’ and NTargeting’ of their mailers. /verall the responsibility of email delivery is fairly distributed between #T team DIE, Marketing group DIE, partnership between #T group and marketing team D6IE and 7SCs D)=IE. There is no single group ownership as yet. 9ccording 9ccording to marketers marketers in #ndia, the integration of email and SMS will result in a significant increase in the return on campaign investments. 9bout BI of marketers believe that there is indeed a synergy in integrated service offering to customers.
45 | ) a g e
&ith regard to the presence of fle"ibility aspect in either Traditional or #nternet Marketing, there happens to be contrast opinions. /n one hand it is found that most(onsumers and (ompany agrees that traditional marketing marketing is more fle"ible than internet marketing while on other hand most of the 2rd party agency agrees that #nternet Marketing is more fle"ible than Traditional Traditional Marketing.&hile Marketing.&hile comparing the Traditional Traditional and #nternet Marketing it was found that most (onsumers have strong opinion that in near future the #nternet marketing will fully takeover traditional marketing. Similarly more than )K3thof the total companies in #ndia and 2rd party party agenc agency y respo responde ndent ntss strong strongly ly agree agree to the the grow growin ing g signi signific ficanc ancee of #ntern #nternet et Marketing Marketing and hence have opinion that it may take over the Traditional Traditional Marketing. Marketing. However about few people also disagree and hence don’t want to have any comparison between Traditional Marketing and #nternet Marketing. Most consumers and 2rd party agency strongly agree that more number of players would enter in the field of #nternet Marketing in the ne"t 5 years so as to cater to the growing number and needs of consumers. &ith &ith the increase in use of internet and thereby the growth of the #nternet Marketing it was found that many companies companies would spend more towards the promotion of their products. This seems to be true as the increa increase se in spendi spending ng by compan companie iess on promo promoti tiona onall purpo purpose se is report reported ed in ?.S ?.S econo economy my.. 9ccord ccording ing to Fusin Fusiness ess Stan Standar dard d repor reportt dated dated )3th )3th 9pril pril *) *)) ) the the inter internet net advertising revenue increased by )5I and thus the total revenue spending accounted to 6 Fillon dollars. 9bout 9bout @5I to =*I of the respondents 9gree 9gree that the spending by company in #nternet Marketing for promotion of the products would increase in near future.There are vario various us schem schemes es i.e. i.e. marke marketin ting g techni techni!ue !uess in #nter #nternet net Market Marketin ing. g. Th Thee search search engin enginee marketing scheme was found to be one of most successful marketing techni!ue followed by schemes like 7-mail Marketing, Lideo Marketing, Flog Marketing and so on.Fesides the above findings there are certain facts which also needs a mention as the facts are related to the field of #nternet Marketing. Today it is found that the Sponsored links in search engines are ma"imum and this is followed by 7mail marketing. marketing. #t is reported that the viral marketing advertisements have minimum viewership and hence are least clicked.
The growth of internet marketing is certainly a phenomena e"perienced by almost all. The growth of internet marketing is directly related to the increase in the use of internet. Hence the effect of internet era is e"perienced in marketing sector. 9like the e"istence of specific relationship between company and 2rd party in traditional marketing, there also e"ists similar relationship in internet marketing The only variation found between traditional marketing and 46 | ) a g e
internet marketing is that there is no compulsion of channel network in internet marketing. Through all these we can see the bright future of online marketing in #ndian scenario but at the same time we should never ignore the importance and pillar of the marketing i.e. the traditional marketing. Traditional marketing and online marketing when used together can be a boon and hence should be focused together in order to gain the ma"imum profit out of it.
47 | ) a g e
6"2 C&#)(*&# Thee bursti Th bursting ng of the the dotcom dotcom bub bubble ble has made made sever several al compan companie iess appre apprehen hend d that that doing doing business on the #nternet is not as easy as it sounds. ?ndoubtedly, ?ndo ubtedly, the power of the #nternet to reach any part of the world holds terrific potential for enhancing international trade and boosting global economy. However, Howeve r, 0ust 0u st as every coin has a flip side< it has been observed that doing business on the #nternet also has risks and legal issues associated with it. The rapid pace of e-commerce development has generally left the legal system struggling to keep up and gasping for breath. #n much the same way as companies doing ecommerce must invent new business procedures and rules, the legal system is trying to adapt e"isting laws to fit new settings where it is simply unclear how these laws will apply. #n the midst of this legal turmoil, #ndia is one of the few countries across the globe that has enacted an e-commerce legislation. However, much more is needed to effectively regulate the tangled web. 7ffective risk management strategies strategies coupled with ade!uate legal documentation documentation will go a long way in protecting e-commerce companies. 9lthough the #nternet is a goldmine, without ade!uate legal protection, it could become a landmine. +evertheless, with the rapid e"pansion of internet, e-commerce is set to play a very important role in the )st century, the new opportunities that will be thrown open, will be accessible to both large corporations and small companies. The role of government should be to provide a legal framework for e-commerce so that while domestic and international trade are allowed to e"pand their hori$ons, basic rights such as privacy, privacy, intellectual intellectual property prevention of fraud, consumer protection etc. are all taken care of.
48 | ) a g e
R-0-%-#)- •
7conomic Times dated )@ Auly *)2 D4igital Marketing by Sunil Gupta et alE
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(hip maga$ine DAuly editionE
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7mer 7m ergi ging ng Trend rend of 7-(o 7-(omm mmerc ercee in #ndia8 #ndia8 Some Some (ruci (rucial al #ssue #ssues, s,Cr Crosp ospec ects ts and and (hallenges by Sarbapriya ay
•
9nnual #ndiae-Marketing by Fenchmark esearch on#ndia 4igital Marketing
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www.!uirk.bi$
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Marketing Marketing /n The #nternet The #ndian Scenario Scenario by ?sha:iranai, ?sha:iranai, 9shish (handra, and Sheb 1. True
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(omparative Study /f Traditional 9nd /nlineMarketing Mi"
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9 1ayperson’s Guide to#nternet Marketing Market ing Terms
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eMarketing8 The essential guide to digital marketing by ob Stokes
•
www.wikipedia.com
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http8KKwww.smartinsights.comK
•
http8KKwww.slideshare.netK
•
/ctane esearch
•
http8KKvisual.lyK
•
http8KKra0eshthambala.blogspot.in
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