Chumbak Case Study

The journey of Chumbak: from mail to mall – leveraging social media networks for on-going dialogue with customers Chetna Kudeshia and Arun Mittal

Chetna Kudeshia and Arun Mittal are Research Scholars, both at Birla Institute of Technology, Extension Centre, Noida, India.

“Hi Vivek, Your company ‘Chumbak’ has been selected, and you’d be one amongst the three firms worldwide that will be a part of the Google case study!” This was the email that husband and wife team Vivek and Shubhra Chadda got from the California-based company known as Enso, who was working with Google to make a case study video on how firms worldwide are using Google services. They were looking for businesses that had a “compelling business, web and a human story” and Chumbak fulfilled all the requirements. However, this wasn’t the case just a few of years previously when Shubhra and Vivek had to sell their house for Rs 40 lakhs to raise seed capital for the venture. Chumbak “which started as an absolutely self-funded company without any financial liabilities” was now being banked by the big financial companies of India. But how did it become possible for a self-financed company with a meager investment to incur a place on a Google case study that was being conducted jointly with Facebook’s study about advertisement success stories? The had company broken even after three years of trading and was presently pumping all of its profits into the business and the success of Chumbak can be attributed to social media. Social media was responsible for all aspects of Chumbak and its success, from brand identity to brand awareness, from campaigns to recruitments. What started as a store for magnet souvenirs now offers a line of products including apparel, accessories, stationary, home and style products.

Introduction The definition of business in India has changed from having a shop or manufacturing unit to discovering and creating a strong online identity for brands. One necessary phenomenon is maintaining personal and steady relationships with customers. Even if a business is being set up or expanded through modern technologies, such as the Internet, the basis will always be the same – better engagement with your customers. The only difference will be the medium of establishing that engagement and it is not surprising that this philosophy is widely being accepted by many small and medium-sized businesses as a function as their business strategy.

Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The author/s may have disguised names, financial and other recognizable information to protect confidentiality.

DOI 10.1108/EEMCS-09-2014-0209

One drawback that small business face is-competition from medium-sized and large businesses. Additionally, there is very little funding at the disposal of these businesses for promoting functions, which may greatly hinder a small businesses ability to reach an oversized audience. Unlike established businesses units that may already have a good reputation, a large customer base and high brand recognition, small and medium-sized businesses need newer, innovative avenues for building their brand, to reach out to every prospective customer and creating better and strong relationships with the customers once the relationship has been established. Online promoting now plays a vital role in

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establishing small-scale businesses, and gives them the advantage of being able to run favorably alongside their larger counterparts. As per the Micro, Small and Medium Enterprises Development (MSMED), 2006 Act of India, a small or medium-sized enterprise (SME) is an one where the investment in plant and machinery is more than Rs 25 lakh but does not exceed Rs 5 crore [22]. A significant 17 per cent of India’s GDP come from its 40 million SMEs. A recent report by McKinsey says that the SMEs who are highly active on various social media avenues report double the revenue growth of those who are not using it. Out of the 40 million small entrepreneurs, around 500,000 SMEs, have a strong presence on social media (McKinsey Global Institute, 2012). A report by Assocham and Comscore (2012) says that Internet users in India are expected to reach between 350 to 450 million by 2015-2016, and this will act as a catalyst in the growth of SMEs (Batra et al., 2012). Social media statistics in India:

India has 243 million Internet users.

Facebook is the most browsed social network on social media with a large base of 100 million users.

India has 33 million Twitter users.

LinkedIn has 26 million India users, of the total 300⫹ million users.

Of the total 70 million total users of Pinterest, 5.5 million are from India [source: www. digitalinsights.com (accessed 9 August 2014)].

Small businesses in India are integrating social media in their marketing strategies for better collaboration, engagement and effective communication. From the company websites to the blogs, from social networking sites to the content communities, these social technologies are helping the businesses to reach the most influential audience giving a stronger brand impact. On the same notion, in March 2010 Vivek and Shubhra Chadda started Chumbak, a Bengaluru-based souvenir startup popular among the age group between 18 to 24 years. Vivek, the Chief Executive Officer and co-founder, and Shubhra Chadda, Head of Product and Design, had successful corporate careers before they founded Chumbak. Shubhra was associated with KPMG, Nortel and NetApp before the launch of Chumbak and Vivek worked for various brands and had over 16 years of experience in retail marketing. During his time with Tanishq, Vivek was an important part of its initial brand team responsible for the company’s turnaround. He was then associated with Platinum Guild International as head of their south markets looking after retail marketing. He joined as the head of modern trade marketing at Motorola, and worked in setting up Moto Stores across India. In his last and final corporate role he was head of Partner Marketing at Sun Microsystems.

The idea The Chadda’s loved to travel and each time they travelled, they would shop for souvenirs, especially fridge magnets. As they were usually on a small budget, they found that fridge magnets made appealing and affordable gifts to friends and family back home. While varieties of such products were available abroad, in India, buying mementos was restricted to options such as pashmina shawls, marble miniatures of the Taj Mahal or brass elephants. “Why don’t we get these fridge magnets in India?” Shubhra asked Vivek, and the duo started searching for India-made fridge magnets but they could not find fun fridge magnets in India and Vivek and Shubhra soon realized that affordable, well-designed and crafted products that could be used as accessories and gift items were in demand. Why don’t we start making our own fridge magnets and add a bit of color and modernity to the market of Indian trinkets? And thus came the idea of Chumbak! In 2004, the couple started doing some initial research and, finally, in 2009, spent a good six months researching various

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products. The company is inspired by and based on the couple’s love for India combined with their love for travel. The creativity and cleverness of the company can be seen in the name of the company itself, effectively merging “Chumma” (kiss), and “Bak” (stone). Vivek and his colleagues agreed on the name “Chumbak”, which means kissing stones, more popularly known as magnets. In April 2011 Chumbak started a dedicated e-commerce website (www. Chumbak.in). The company that did not its own store initially, today retails through 250 stores across India and 100 stores in Japan. It also exports to the USA, the UK, Australia and the Middle East, including the Virgin Megastore in Dubai, where Chumbak’s phone and laptop cases are also available. Chumbak is also in talks with “big-box retailers” such as Anthropologie and Pier 1 imports in the USA to include its India-themed souvenirs in different categories of home decor and apparel.

Design philosophy of chumbak products Chumbak products range from extraordinarily designed and crafted products, including apparel and footwear, bags and wallets, souvenirs, key chains and jewelry. Its range also includes phone covers, unique whistle charms and bracelets. It has a total of 38 categories, with between 400 to 500 products, which makes Chumbak impressive. Inspired by the various colors embedded in Indian culture and day-to-day events of an Indian’s life, Chumbak tries to put all this together in its products. Vivek says: We believe that our products should be recognizable nine out of 10 times without the logo and to achieve this we follow a very strict filtering process before any product hits the racks. That is the design test all our products have to go through.

Chumbak is a leading design company and they take great care about how they look, from their office to kiosks and to products. The originators, who conceived the workplace themselves, settled on an open-plan arrangement office with only two encased rooms that are implied for imaginative conceptualizing and gatherings. Chumbak required the work environment to be open. “We didn’t require anyone to need to thump on ways to meet “the boss”, “said Vivek. In spite of the fact that their organization’s items have a tendency to be jumbled with pictures that summon India, such as the auto rickshaw and dairy animals, the originators chose to be moderate in the workplace. The creativity of the founders is reflected in the Technicolor item tones emerging in the pink and blue seats and the blue-green pin sheets. However, style wasn’t the sole concept on their mind. Shubhra and Vivek additionally ensured that the workplace is energy efficient. The organization utilizes window air-conditioning systems that cool the area of workplace being utilized at a given point of time. To scale back temperatures within the warehouse they have spinners on the roof and upside-down clear PVC panels let in light throughout the day.” We don’t have to switch on the lights until around 6:30 at night. Our power bills are low”, said Vivek.

Funding The unique designs of Chumbak have attracted favors from private equity investors and funds from venture capitalists. As the brand was being established and there was acknowledgment from various areas, Chumbak got funding by Seedfund in 2012 and from Matrix Partners. Rishi Navani, co-founder and managing director, Matrix India, says, “The entrepreneurs, Vivek and Shubhra, have a unique mix of design sensibilities and strong business acumen (Rebecca, 2011).” Revenues for Chumbak in 2010-2011 stood at Rs 1.25 crore, however, online sales account for 15 per cent of revenues.

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Business model Chumbak does its business through the hybrid model, i.e. online through its website (www.Chumbak.in) as well as offline by having more than 20 kiosks in the best malls all over India. Vivek says that 50 per cent of Chumbak’s orders come through Facebook, organic searches on Google and in-store visibility. Spotting trends and developing new products along those lines is a continuous process for Chumbak. The marketing strategy of Chumbak believes in removing old products, for which demand dips as a new product is introduced. The entire planning, designing and production processes are in-house.

What made chumbak successful? Vivek believes, “It’s a volume game. After having loads of items to choose from, in the range of Rs 95-1,495.” Chumbak recorded breakeven within the first three years of business. In the lifestyle products segment, the most important thing the company believes needs to be done, is to know your customer and to implement this. Chumbak became very aggressive on all social media channels in the initial years of its setup and is still following the same practice. When Chumbak was founded, the company aimed to grow in terms of distribution channels, through both online and multi-branded outlets. It achieved this in the first two years and grew the business.

Chumbak and social media Chumbak as a brand has been built solely through social media marketing and word of mouth with zero marketing spenditure. Social media is an important component of Chumbak’s overall marketing strategy and is integral to the overall company goals and strategy for attaining those goals. In a very short span of time Chumbak has made its presence known on almost all the social media platforms. Bootstrapped and with no budget for high-flying ad campaigns, Chumbak built all their brand-recall value by solely focusing on social media. Chumbak is one of the first brands in India to merit a global Facebook case study. By having a strong presence on Twitter, Facebook, YouTube and their own website, the company tries to be more open and transparent in their marketing communication. The goal is primarily to communicate and build relationships with consumers. Chumbak uses all these avenues to communicate the same message but in different ways, depending on how engaged the consumers want to be. The use of social media in the company is a tactical rather than a strategic decision. Chumbak uses a blog to comment on business issues, while also using Facebook, LinkedIn and Twitter to reach customers. The company monitors its customers’ and analyzes comments to take a proactive approach in responding and has steadily become a highly regarded startup brand on social media. Their impressive fanbase on Facebook, Twitter, YouTube, Pinterest, Tumblr and Instagram, and the recent feature on the Google Business YouTube Channel, is proof that social media has as a charm for them (Table I). The firm is also doing quite well into corporate gifting, as a result of social media. Vivek says, “Every single corporate order we have done has been Table I Chumbak’s presence on social media Facebook: number of likes Facebook: number of people talking about this page Twitter: number of tweets Twitter: number of followers YouTube Chumbak: subscribers YouTube Chumbak: video views YouTube Chumbak: number of uploaded videos Pins on Pinterest Boards on Pinterest

280,593 4,100 5,306 2,776 576 66,485 9 168 10

Source: Compiled by authors from www.facebook.com/twitter.com/youtubeChumbak/pinterest.com (accessed 28 April 2014)


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because someone approached us.” By being dynamic on all the social networking sites, Chumbak can consistently monitor what is said about the organization. Chumbak believes that gone are the days when discussions about the brand used to take place on the company’s own website only; now most of the discussions take place on third party sites, making it more difficult for the company to control and thus self-involvement of the firm is required to review and analyze all of these discussions regularly. Chumbak plans to shift the customer service to Facebook, as the most frequently asked questions can help several customers at any one point of time. By observing on what is being said, the company can customize the material it wants to publish and this can definitely get the customers involved. Vivek says, “The company knows that people are out in social media channels seeking information and researching, and they need to use social media to influence their buying behavior” (Table II). Chumbak is using the following social media channels:

Blogs;

Social network sites such as Facebook;

Multimedia sharing (e.g. YouTube);

Micro blogs (e.g. Twitter);

Review sites/discussion forums;

Instagram; and

Pinterest (Figure 1).

Vivek, as the social media head, says that social media is meant for businesses such as Chumbak and the company harnessed the opportunities that the Internet presented. It utilizes it to team up with its customers, to enthrall its customers, to collect and track client’s surveys and to make announcements about diverse campaigns. In addition to these functions, Chumbak additionally utilizes online networking devices for procuring better labor for its organization.

Convert your fans into finance using social media A facebook page to start with The most famous social networking site, Facebook is a sublime stage to begin with (Tables III and IV). Best for the companies who are focusing on adolescent clients, as Facebook’s client base is mostly in the age range of 18-25 years in India. This was the reason Facebook was the first social media tool with which Chumbak associated. After its launch, Chumbak had no PR or launch event – just a Facebook page and a fully functional web store. Before Chumbak knew it, they had almost a 1,000 fans on Facebook, adding 100 new fans every 10 days, all this in less than 100 days of launch (Table V). In March 2010, Chumbak had 117,526 likes on Facebook, with 2,261 people talking about them, Chumbak now has more than 2 lakh likes on Facebook, the platform that helped make it what it is today: One of our biggest advantages in 2010 was Facebook. The FB page back then was very different, as it was not focused on advertising. So if I posted a product, people were checking it out without us paying for it. That was great for a startup, says Vivek.

One of the fun, creative things Chumbak did was to encourage participation from its fans. Chumbak always believed that its communication would never be one way. They are very conversational on this platform and the communication topics range from movies to rain in Bengaluru to spontaneous quizzes to talking about social issues and many more subjects. Chumbak held a Weekend Contest every week to encourage fans to participate. Chumbak founders have been using Facebook as an interactive forum to engage with the customer base, treating them like a community of friends. Vivek says “Interaction with customers is

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Table II Survey of Chumbak customers on “engagement through social media” Survey items I follow Chumbak on various social media sites because I find its products to be unique

I follow Chumbak on various social media sites because I want to get my queries solved

I follow Chumbak on various social media sites because I want to know its promotional schemes

I follow Chumbak on various social media sites because I want to know more about it

I follow Chumbak on various social media sites to have direct interaction with the Company

When needed I notice the products of Chumbak more often as I am following it on various social media sites

I buy the products of Chumbak directly from its social media platforms (Facebook) as I am following it

I repurchase the products of Chumbak when required, as I am following it on various social media sites

I refer it to others, as I am following it on various social media sites

Information shared on the platforms of Chumbak influences my buying intentions

I prefer Chumbak over the other products in the same category as I am its follower

I think favorably about Chumbak after joining it, on various social media sites


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Scale anchors

Frequency

(%)

1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1

4 7 21 51 64 8 23 33 44 49 5 13 27 51 51 3 11 17 47 69 6

2.7 4.8 14.3 34.7 43.5 5.4 15.6 22.4 29.9 26.5 3.4 8.8 18.4 34.7 34.7 2.0 7.5 11.6 32.0 46.9 4.1

2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

13 28 46 54 8 8 31 40 60 14 29 36 32 36 10 18 30 46 43 4 9 30 34 70 7 13 35 37 45 10 11 33 46 43 11 9 26 44 56

8.8 19.0 31.3 36.7 5.4 5.4 21.1 27.2 40.8 9.5 19.7 24.5 21.8 24.5 6.8 12.2 20.4 31.3 29.3 2.7 6.1 20.4 23.1 47.6 4.8 8.8 23.8 32.0 32.6 6.8 7.5 22.4 31.3 32.0 7.5 6.1 17.7 29.9 38.1 (continued)

Table II Survey items I am more confident about Chumbak’s quality after becoming its fan

I feel emotionally connected with Chumbak after following it on various social media sites

Scale anchors

Frequency

(%)

1 2 3 4 5 1 2 3 4 5

8 12 19 42 66 12 8 27 40 60

5.4 8.2 12.9 28.6 44.9 8.2 5.4 18.4 27.2 40.8

Source: Compiled by author from SPSS output

Figure 1 Customer engagement via social media channels Community pages Visuals (photo’s) Blogs

Chumbak

Social media marketing

Polls & games Campaigns User generated content

Source: Author’s own findings

Table III How did you come to know about Chumbak? Source of information

Frequency

(%)

116 2 29 0 147

78.9 1.4 19.7 0 100.0

Facebook Company website Word of mouth Others Total Source: Compiled by author from SPSS output

Table IV Which is the most preferred social media platform to interact with Chumbak? Source of information

Frequency

(%)

127 16 1 1 1 147

86.4 10.9 0.7 0.7 0.7 100

Facebook Company website Instagram Pinterest Other Total

Notes: Survey done through Chumbak Facebook fan page between February and July 2014. The total number of respondents: 147 (where 1 ⫽ strongly disagree, 5 ⫽ strongly agree, scale compiled by authors from literature review) Source: Compiled by author from SPSS output

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Table V Increasing fan page engagement of Chumbak on Facebook Engagement activity We’re online baby. . . Our products are ready Sneak peek the boxer shorts!! You’ll have to tell your friends to like’ Chumbak from now on With so many of you “liking” Introducing antastic Flip Awesome Women all over!! Brand new Chumbak iPhone cases An amazing 20% off everything Chumbak make the web work for them Be awesome be responsible vote! Celeberating 20 stores of Chumbak

Date 14 October 2009 (joined Facebook) 5 March 2010 29 March 2010 21 April 2010 31 July 2010 (Crossed 1,000 likes) Flops 14 March 2011 5 October 2012 3 April 2013 1 July 2013 7 April 2014 31 July 2014

No. of likes

No. of shares

5

3

0 42 8

0 11 3

12

6

153

44

357

75

346 1,845 1,785 936

32 83 13 68

Source: Compiled by authors from Chumbak Facebook fan page

really spontaneous sometimes I impulsively announce discounts, there’s nothing planned,” he adds. One of the strategies to encourage participation is through contest questions that are India-related, e.g. “Which are your most memorable Bollywood movie dialogues and what would be a funny English translation?” Instead of giving away products as prizes, Chumbak gives away discount vouchers, which are then redeemable at their web store. This not only ensures that the contest winners get something substantial in value, but it also converts these fans into customers. Chumbak sees 30 per cent of its website traffic from Facebook. The company uses its Facebook page to raise awareness of product lines, announce new product launches and crowd source ideas for new products. It also engages with its fanbase by showcasing new products under the “Brand New!” tab, gives fans “sneak peeks” of upcoming products, promotes special offers and discounts, holds contests and enables customers to directly get in touch through the “Contact us” tab. The company has seen a five-fold return on investment in total advertising spend with Facebook, a very high degree of repeat purchases among fans of their FB page and sees 25 per cent of its revenue coming from Facebook users and fans. Chumbak is a case study in the success stories of facebook advertisement page and it says: There is nothing else out there that gives you the ability to reach out to your target audience the way Facebook does. Whether it’s a product launch or a contest or even customer queries it’s honestly the best marketing tool a startup like Chumbak can have (YouTube video of Chumbak).

Approach Chumbak uses Facebook as its sole marketing channel for building community of Chumbak-passionate users who love the brand. Chumbak created a Facebook page that is very colorful, very suitable for its brand personality. Content marketing Don’t use social media always to push your product as your customers want to listen to something closer to them, is what Chumbak believes:

Don’t push your product/service.

Talk about what drives you.


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Design contests which people would really like to comment/reply on.

The moment you start looking at social media as a marketing tool and ROI questions pop up, you’ve lost the plot.

Be on social media to have fun and speak to people. Good recognition with good recall ⫹ consistent messaging is key [Source: Compiled by authors from www.socialsamosa.com/ 2013/09/chumbak-start-up-brand (accessed 13 March 2014)].

Content marketing helps to attract and retain customers by creating and publishing relevant and valuable content. Content marketing follows the gut feeling strategy rather than using data. An interesting, useful and compelling content keeps you in the mind of your consumers. Through its Facebook page, Chumbak publishes the content that matters to their fans. They believe that their fans are around to see stuff they like as well, instead of the stuff that is pushed down on their news feeds! Real time marketing The “on the moment marketing” gives marketers plenty of opportunities to craft “real-time” responses on Facebook, Twitter and Instagram. This makes social media unique as sometimes it needs no planning and is spontaneous. By implementing small, real-time marketing initiatives on an everyday basis Chumbak tries to connect with all its customers in all the situations, whether its festivals time or voting time in the country. Different festivals and occasions in India give Chumbak plenty of lead way to craft “real-time” responses on Facebook. Through its creative post, Chumbak tries to connect with the life of its customer with a personal touch which is many times very effective and conversational. Social care “Social care” is defined as how much the company is embracing the opportunity to provide customer support using dedicated social media channels like Facebook, Twitter and blogs. The more your company can solve queries through these tools, the more you will be engaged with your customers in a better way. Facebook is the most used social media platform for interaction by Chumbak to solve its customer’s queries. Offer little more A sales-orientated business can always consider offering product discounts as the best way of promotion for people who like pages by installing the Coupons application. It is said that, if the average Facebook user has almost 150 friends, you only need to engage one person to reach the 150 more. Offering prizes, gift coupons and running competitions are also an interesting way to attract customers and Chumbak continuously does this to appeal to its customers. Invest your time The more you waste time on the social media the more you will be productive is what Chumbak feels about social media. Considering this Vivek and Shubhra visits the company’s page up to six times a day. They say, “It is one of the most effective ways to know what’s happening in your business because you’re not controlling what’s coming through; it’s in real time.” Keep on asking Chumbak tries to involve with its customers in the most possible ways as per them crowdsourcing is the best way to know your fans. They conduct polls, use apps such as Survey Monkey to know what their fans like about Chumbak and what they want from the business to do for them next.

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Be consistent Chumbak is very consistent about its presence on various social media channels. Chumbak tries to integrate them efficiently, and its Facebook page is thus embedded by all the other social media platforms they are using including Instagram and Pinterest. Recruitment Social recruiting is the latest and most discussed recruitment method. Recruitment through social media is not only cost-effective but it gives a company a wider choice and this is Chumbak motivation for placing ads on Facebook.

Results

30 per cent of online revenue of Chumbak comes from Facebook, with a very high degree of 25 per cent repeat purchases among page fans.

5X ROI on total advertising spend with Facebook.

30-40 per centof website traffic of Chumbak comes from Facebook (YouTube video of Chumbak).

Twitter With around 2,776 followers and 5,306 tweets on Twitter, Chumbak does an excellent job by maintaining replies, retweets and hashtagging. Vivek says that Twitter is a platform a lot of recommendations are made and Chumbak’s customers can subscribe to its e-newsletters. Chumbak shares a range of quotes, articles and media that its followers love to watch and share. With the magic of 140 characters Twitter connects Chumbak to its customers in real time, and it uses Twitter to quickly share information with the people that have an interest in their product. Through Twitter it tries to assemble real-time market intelligence and feedback and build relationships with its customers, partners and influencers. Chumbak contains an effective method of including links in nearly each single tweet, sharing its achievements. By including links of the varied interviews and videos of YouTube featuring the company, Chumbak continually offers its followers something to engage in. Chumbak talk, share and post photos and this ultimately provides positive word of mouth to the brand at nearly zero cost. Keeping your followers interested is essential for maintaining a strong social network, and this is why Chumbak uses their Twitter feed to keep their followers up-to-date concerning new product arrivals and present offers. Twitter offers Chumbak an easy way to reach an engaged audience in an effective manner and the company remains consistent with its tweets, using a variety of videos, links and images. Pinterest Pinterest has become a strong tool for Chumbak to garner time period insights, share knowledge and influence content creation and amplification. With 10 boards being serious on visual content, Chumbak tries to own a group of pleasantly colored pictures and merchandise to feature on Pinterest. Through Pinterest, Chumbak tries to keep it simple for individuals to find and share its products. Pinterest reworked the way Chumbak is concerned with its content selling. By generating content on Pinterest on an everyday basis, Chumbak can connect with a new audience by showing off their latest collections and a few digital art galleries through varied and simple visible classes. Chumbak undoubtedly has become a good place for shoppers to search out completely different merchandise for all of their desires and their Pinterest account lays out the products in a visually friendly style. YouTube YouTube, the first major video hosting and sharing site, helps Chumbak in engaging with its customers by uploading its attractive videos. These 10-minute videos uploaded can also


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be embedded on other websites including social networks, blogs and forums. The success rate of the videos uploaded could be judged by the ratings, comments and through the number of times it has been viewed. At the moment, Chumbak has uploaded nine videos having 524 subscribers and 62,313 views. Some of the uploaded videos contain information about Chumbak, some concern new arrivals through attractive animated movies having Chumbak product characters, some are doing real time marketing by greeting the customers on various festivals and some are just for fun. Chumbak believes that uploading just a commercial won’t get a company nearer to its fans: a company has to be creative and subtle to make individuals remark positively on its products. Instagram Chumbak uses Instagram to reach its customers in a fun way by taking pictures of its products, daily activities and offers. By sharing their activities and products on various social media sites it gets engaged with its customers in a better way. Google⫹ Chumbak uses their Google⫹ presence to post images that show the value of their products rather than just tell it. It consistently uses Google⫹ for promoting their latest products as well for interactions with their potential, as well as existing, customers. The regular posts on this social media tool help Chumbak get engaged with its fanbase.

The road ahead Chumbak says it is registering about 300 per cent year-on-year growth. From initially starting with a two-member team, Chumbak now has a 70-member staff and its stores have an 80 additional members. Though a lot of Chumbak’s designs are India-inspired, they do well in the international environment and the company now also sells its products in Japan and West Asia. The brand has grown considerably in the past two to three years. With gross margins varying across all categories, Chumbak is eyeing annual revenue of Rs 400-500 crore in the next three to four years. Chumbak plans to have between 60 to 65 kiosks and larger retail stores across malls and high streets by March 2015 and is planning to open a 2,600-square foot store in Bangalore soon. Co-founder Shubhra says, “One of the most fun things at Chumbak is working on new designs. At the end of the day, the thing that makes me most happy is seeing people using our products.”

Challenges Keeping up with the changing tastes of its young clientele is a real test for Chumbak. The hybrid model – its online, as well as offline presence – has helped the company in keeping itself abreast with the fluctuations of the demand. The company wants to increase the contribution of its online sales to its overall earnings to at least 30 per cent currently, online sales account for about 15 per cent of total sales and is, therefore, focusing on various technological platforms. Furthermore the organization feels that, it’s essential for them to understand the type of dissemination to be the future standards – offline or more of online. The third challenge for the organization is costly land; Chumbak is attempting to handle this by opening more modest stores – 150-200-square feet, rather than standard business spaces of 1,000-square feet. The company currently has 20 stores and kiosks across five cities, along with the presence in about 60 multi-brand outlets. Mumbai, New Delhi and Bangalore contribute 60 per cent to Chumbak’s total sales. The other challenge for the company is to gain acceptability in emerging metros and smaller towns as it expands. It also needs to be aware of the competition. Companies such as India Circus and Happily Unmarried which have a heavy fan following on social media platforms such as Facebook are already making inroads and have similar design aesthetics.

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Table VI Global rank of India in the social media sites Social networking sites Facebook YouTube Twitter Pinterest

% of visitors

Rank of India

7.9 8.4 6.1 8.9

3 4 12 17

Source: Compiled by authors from www.alexa.com/topsites (accessed 9 May 2014)

Conclusion According to PWC (2014), 60 per cent of consumers use social media to follow, discover and give feedback on brands and retailers. A recent survey by a USA-based consumer data collection company Datalogix showed that 70 per cent of Facebook campaigns drove at least three times the return on investment while almost 50 per cent received a five-time return (The Economic Times, 2014b). A recent report from LinkedIn discovered that 80 per cent of small-scale entrepreneurs are turning to online networking stages to produce income and discover new customers. According to the report 73 per cent of high-performing small organizations say they expanded using on online networking and social advertisements. Upon further examination, it can be seen that just 42 per cent of small organizations encountering no development did likewise (LinkedIn, 2014). The fast-growing small businesses report social media to be an effective marketing tool. Nine out of 10 says their social media efforts help maintain a company presence and identity, while 82 per cent says the platforms help generate new leads (LinkedIn, 2014).

Keywords: Facebook, Small business, Social media, Customer engagement, Chumbak, Social media marketing

The tremendous range offered by online networking has surprised small-scale businesses and made them more aspiring (Table VI). Companies have understood they require the stage of social networking to get by as well as to win. Chumbak is the dream of husband-wife duo Vivek and Shubhra Chadda and is currently a fruitful brand that would not have been conceivable without online networking. Engagement through social networking is basic for any business that wishes to be seen as modern and part of the new digital age. Chumbak is wonderfully achieving this and has accepted the fact that, although the spot and strategy for working changes with mechanical headways, eras and changing decisions, one thing that never shows signs of change is the acknowledgment that the customer is always the king.

References Albert, N. and Valette-Florence, P. (2010), “Measuring the love feeling for a brand using interpersonal love items”, Journal of Marketing Development and Competitiveness, Vol. 5 No. 1, pp. 57-63. Assocham and Comscore (2012), “State of e-commerce in India”, available at: www.assocham.org/ old-site/arb/general/Comscore_%20ASSOCHAM-report-state-of-ecommerce-in-India (accessed 4 April 2014). Batra, R., Ahuvia, A. and Bagozzi, R.P. (2012), “Brand love”, Journal of Marketing, Vol. 76 No. 2, pp. 1-16. Cheung, C.M., Chiu, P.Y. and Lee, M.K. (2011), “Online social networks: why do students use Facebook?”, Computers in Human Behavior, Vol. 27 No. 4, pp. 1337-1343. Chumbak on Instagram, available at: www.es-la.de-de.vi-vn.connect.facebook.com/Chumbak/app (accessed 22 March 2014). Chumbak on Pinterest, available at: www.pinterest.com/chumbak (accessed 2 March 2014). Facebook page of Chumbak, available at: www.facebook.com/Chumbak (accessed 20 February 2014). Jahn, B. and Kunz, W. (2012), “How to transform consumers into fans of your brand”, Journal of Service Management, Vol. 23 No. 3, pp. 344-361.


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LinkedIn (2014), “Social media: a hotbed for SMB growth and fertile ground for financial services prospects”, available at: http://marketing.linkedin.com/blog/social-media-a-hotbed-for-smb-growthand-fertile-ground-for-financial-services-prospects (accessed 23 April 2014). McKinsey Global Institute (2012), “The social economy: unlocking value and productivity through social technology”, available at: www.mckinsey.com/.../media/mckinsey%20offices/.../the_social_ economy (accessed 28 March 2014). Park, N., Kee, K.F. and Valenzuela, S. (2009), “Being immersed in social networking environment: Facebook groups, uses and gratifications, and social outcomes”, Cyber Psychology & Behavior, Vol. 12 No. 6, pp. 729-733. Pinterest Page of Chumbak, available at: www.pinterest.com/chumbak/ (accessed 15 March 2014). PWC (2014), “Social media: the future of customer relationships”, available at: www.pwc.co.uk/.../ social-media-the-future-of-customer-relationships (accessed 4 May 2014). Rebecca, L. (2011), “The woman entrepreneur at chumbak: Shubhra Chadda”, available at: http:// youtu.be/XluDONZFPss (accessed 2 March 2014). Reitz, A.R. (2012), “Online consumer engagement: understanding the antecedents and outcomes”, PhD dissertation, Colorado State University, Fort Collins, CO. The Economic Times (2014b), “Bright & Airy: why kitsch design company Chumbak opted for an open plan office”, available at: http://articles.economictimes.indiatimes.com/2014-03-01/news/47799637_1_ office-space-chumbak-sun-microsystems (accessed 10 March 2014). Wallace, E., Buil, I. and de Chernatony, L. (2014), “Consumer engagement with self-expressive brands: brand love and WOM outcomes”, Journal of Product & Brand Management, Vol. 23 No. 1, pp. 33-42.

Further reading About Chumbak, available at: www.chumbak.com/about-chumbak.html (accessed 4 February 2014). Alexa Ranking (2014), available at: www.alexa.com/topsites/countries;4/IN (accessed 4 May 2014). Anandan, R. (2014), “Indian entrepreneurs should stop worrying about failures – the Economic Times on mobile”, available at: http://m.economictimes.com/opinion/guest-writer/rajan-anandan-googleindia-vp-md-indian-entrepreneurs-should-stop-worrying-about-failures/articleshow/msid-31911842. cms (accessed 23 March 2014). The Chumbak blog – Tumblr, available at: chumbak.tumblr.com/post/56327116404 (accessed 19 March 2014). Chumbak on Google⫹, available at: www.chumbak.com/faq.htmlChumbakGoogle⫹plus.google.com/ 100694205198881886837 (accessed 19 March 2014). Cool Age (2013), “Chumbak: from fridge magnets to business magnates”, available at: www.coolage. in/2013/10/16/chumbak-story-of-the-kissing-stones/ (accessed 1 February 2014). The Enso Blog (2013), “The web is working for global small business”, available at: http://blog. helloenso.com/post/52915582314/the-web-is-working-for-global-small-business (accessed 2 March 2014). Entrepreneur India (2013), “Seed fund invests over $2 million in Chumbak”, available at: http:// entrepreneurindia.in/thebuzz/specialreport/seedfund-invests-over-2-million-in-chumbak/18421/ (accessed 4 May 2014). Huang, E. (2013), “Chumbak saw a diamond in mere rocks, now in India and Japan”, available at: http://e27.co/chumbak-saw-a-diamond-in-mere-rocks-now-in-india-and-japan/ (accessed 24 April 2014). Hubspot (2013), “Companies rocking on social-media”, available at: http://cdn1.hubspot.com/hub/ 53/101-Companies-Rocking-Social-media-HubSpotv5.pdf (accessed 1 April 2014). IBNLive (2013), “Indian startup Chumbak exploits the web to create a niche market”, available at: http://ibnlive.in.com/news/indian-startup-chumbak-exploits-the-web-to-create-a-niche-market (accessed 20 February 2014). Kareem, R. (2013), “Kitschy kitschy bang bang”, available at: www.thehindu.com/features/metroplus/ nxg/kitschy-kitschy-bang-bang/article4458873.ece (accessed 3 March 2014).

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Karol and Karol (2014), “Survey: ‘hyper growth’ small businesses spending more on social media”, available at: http://smallbusiness.foxbusiness.com/entrepreneurs/2014/02/19/survey-hyper-growthsmall-businesses-spending-more-on-social-media/ (accessed 10 March 2014). My Bangalore (2010), “Chumbak, Indian souvenir, kitschy products, fridge magnet quirky designs”, available at: www.mybangalore.com/article/0810/chumbaks-kitschy-souvenirs-truly-represent-india-. html (accessed 4 April 2014). Pagemodo (2014), “Facebook is still king among small business owners [SURVEY]”, available at: www.pagemodo.com/blog/facebook-king-small-business-owners- (accessed 25 March 2014). PWC (2013), “In-store shopping still center of shopping experience”, available at: www.pwc.com/.../ pwc-annual-survey-of-online (accessed 6 May 2014). Reserve Bank of India Report (2014) available at: www.rbi.org.in/scripts/FAQView.aspx?Id⫽84 (accessed 3 February 2014). Social Samosa (2013), “Why is chumbak a lovable start-up brand on social media?”, available at: www.socialsamosa.com/2013/09/chumbak-start-up-brand-social-media/ (accessed 2 February 2014). Success story of Chumbak, available at: www.facebook.com/advertising/success-stories/chumbak (accessed 20 February 2014). The Economic Times (2011), “Chumbak: Shubhra Chadda pull in profits by quirky India-centric souvenirs”, available at: http://articles.economictimes.indiatimes.com/2011-11-28/news/30450424_1_ fridge-magnet-souvenirs (accessed 11 March 2014). The Economic Times (2013), “5 women entrepreneurs who have defied myths & handicaps”, available at: http://economictimes.indiatimes.com/slideshows/biz-entrepreneurship/5-women-entrepreneurswho-have-defied-myths-handicaps/slideshow/19124951.cms (accessed 2 April 2014). The Economic Times (2014a), “Small companies market themselves on Facebook and seal deals via WhatsApp”, available at: http://articles.economictimes.indiatimes.com/2014-02-5/news/47670597_1_ whatsapp-facebook-page-mark-zuckerberg (accessed 2 May 2014). The Hindu Business Line (2014), “Quirky, magnetic, very Indian ‘they are the couple who sold a house to live their entrepreneurial dream’”, available at: www.thehindubusinessline.com/features/blink/work/ quirky-magnetic-very-indian/article5757185.ece (accessed 3 April 2014). Tribune India (2013), “The tribune, Chandigarh, India – trends”, available at: www.tribuneindia.com/ 2013/20131102/trends.htm (accessed 4 April 2014). Twitter page of Chumbak, available at: twitter.com/Chumbak (accessed 15 March 2014). Your Story (2013), “Lessons for entrepreneurs from Chumbak – an ‘attractive’ Indian venture”, available at: http://yourstory.com/2013/02/lessons-for-entrepreneurs-from-chumbak-an-attractive-indianventure (accessed 1 March 2014). YouTube video of Chumbak, “Chumbak makes the web work for them”, available at: http://youtu.be/ 1EhsNFOA9ew (accessed 19 February 2014).


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Exhibit 1. Chumbak product range based on an Indian theme Figure E1

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Exhibit 2. Studio of Chumbak Plate E1

Exhibit 3. Hiring for Chumbak through Facebook Figure E2


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Exhibit 4. Real Time marketing through Facebook Figure E3

Exhibit 5. Content Marketing through Facebook Figure E4

Exhibit 6. Crowdsourcing through Facebook Figure E5

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Exhibit 7. Social care through Facebook

Quick note on ecommerce deliveries: Hello just wanted to personally update you on some of the delivery issues we’ve been having for the past couple of days at Chumbak. Some of your orders have been delayed. So I thought I’d write a quick note to tell you why in the past couple of months we’ve been seeing much larger traffic and increased orders on Chumbak.com. And for that, on behalf of all of us at Team Chumbak, I’m sorry. I truly am. We have ramped up stuff and you won’t have any more cause to get stressed. Here’s looking forward to crazy loads of smiles and love from you guys. Vivek (the guy who makes the whoosh sound, Team Chumbak). Source: Screenshot (Chumbak Facebook fan page)

Exhibit 8. Chumbak on Pinterest Figure E6

Exhibit 9. Chumbak does the subsequent to win back its customers through Pinteres

It has “Pin It” button to its website. It uses well-lit, high resolution photograph of its merchandise to draw in repines. Create Pins around festivals, events and holidays to draw in Pinners longing for specific content. Feature common pins across the digital channels to inspire Pinners to shop for your merchandise. Source: Compiled by authors from Chumbak’s Pinterest wall


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Exhibit 10. Sharing photos through Instagram

Figure E7

Exhibit 11. Variables Social Media Engagement (adapted from Cheung et al., 2011; Park et al., 2009; Jahn and Kunz, 2012):

To know more about it.

To have direct interaction with the company.

To know about its promotional schemes.

To get my queries solved.

I find its products to be unique*.

Brand attachment (adapted from Batra et al., 2012; Albert and Valette-Florence, 2010; Wallace et al., 2014):

I feel emotionally connected with the brand after liking it its social media platforms.

Following this brand makes me happy.

Liking this brand me satisfied.

I notice it more often.

Purchase intention (adapted from Batra et al., 2012; Jahn and Kunz, 2012; Reitz, 2012):

I purchase the same brand when required as I follow it on its social media platforms.

I buy its products directly from the social media avenues (e.g. Facebook) when required*.

I intend to purchase this product/brand in the future also.

I am loyal customer of this brand as I follow it on its social media platforms.

Word of mouth (adapted from Batra et al., 2012; Wallace et al., 2014; Jahn and Kunz, 2012):

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I often talk positive about this brand because I am following it on social media platforms.

I recommend this brand to friends and family.

Information shared on the fan page of the brand influences my buying intentions*.

I introduce this brand to other people.

*Items developed newly within the study.

Corresponding author Chetna Kudeshia can be contacted at: [email protected]


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Abstract Title – The journey of Chumbak: from mail to mall – leveraging social media networks for on-going dialogue with customers. Subject area – Marketing. Study level/applicability – Undergraduate and postgraduate management students. Case overview – Small scale business in India employ almost 30 million people contributing 50 per cent to industrial and 45 per cent to the total exports of the country. The rapid growth of internet has made it possible for the small scale start ups to reach its existing and potential customers without investing much. The case highlights this fact describing the journey of “Chumbak” a small scale business from an unknown brand to the foremost favourable funky product of India. Through this case the authors have tried to relinquish a synoptic view of how Chumbak has used varied social media platforms, to engage and connect with its customers. A survey of 147 customers of Chumbak customers shows that engagement through Facebook fan page of Chumbak positively impacts its purchase intention, brand image and leads to positive word of mouth. Expected learning outcomes – The case highlights numerous dynamics of social media marketing and shows the recent social media promoting methods being used by the little scale businesses to ascertain on-going dialogues with their customers. The Case would facilitate the scholars in learning how these platforms may be used alone as a promotional tool not solely to reach the purchasers but additionally to type a higher complete awareness of the products with reference to Chumbak. The case explains that communication happening at varied social media platforms got to be tailored considering the sort of users. Supplementary materials – Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code – CSS 8: Marketing


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Chumbak Case Study

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