Positioning

Positioning

Positioning

Positioning

Positioning

Positioning

How should eBay position itself in the Indian ecommerce market for sustainable growth?
Customer experience and innovation would be the differentiating factor in the long run
No. of users making online transactions (in million)
2011 2015 38 14 11 6.3 E-commerce segment size (in million $) 2011 2012 2015 38

Holistic Customer Experience

Ebay.in Positioning
Safety & Reliability
Constant Innovation

Indian consumers are now confident enough to make online purchases of up to Rs 25,000, from Rs 2,000- 5,000 in the recent past (Source: First
Data Corporation)

Under-10 million internet users buy online in India; about 150 million internet users or around 75 million households are 'ready' for ecommerce. (Source: ICICI Merchant Services) As per a survey, Indians showed willingness to spend 33% of their disposable income online which is among the highest in the world. ( Rajdeep Endow, Sapient Nitro)

More personalised offers, loyalty programmes and better customer care is what most e-commerce companies would focus on to offer customers a richer, more relevant online experience," an industry analyst said. Cash-on-delivery has been one of the key growth drivers and is touted to have accounted for 50% to 80% of online retail sales. (Source: E&Y)

For the above positioning, eBay has to focus on following dimensions:

Integrated Marketing Communication This is important to increase the awareness and invite consumers to visit the site TVCs, including alternate channels like newspapers, magazines, social media sites, emails, hoardings must promote eBay for safety, assortment and superior customer experience
Safety
Security of transactions and COD on wide variety products must be promoted

Customer Support
Customer care with zero waiting time and 100 percent satisfaction

All-in-One
Consumer should have all the online solutions including retail, mobile recharges, hotel, travel booking

Why NIKE should go online ?

Online retailing presents huge growth potential for B2C companies with increasing internet penetration and enhanced adoption of E-commerce by youth

Worldwide, 2.7 billion people are online and in India alone internet population is 74 million, experiencing very high growth

Worldwide online retail market penetration is 74.4% and in India it amounts to 60% with signs of strong future growth

97% of people having internet access research product and services online before buying

In 2012, world B2C E-commerce sales grew by 21.1% to approx. $1 trillion and is expected to grow further at 18%business is worth

In India, with 0.6 billion, E-tailing amount for 6%of ecommerce and is set to grow hundred fold to touch $76 billion by 2021

NIKE ONLINE Advantages

Cut Cost Increase revenue With direct selling to customers and cut down of middle man, the company can enjoy better profit margin Online store remain open 24 hours/day and 7 days/week thus increasing sales opportunity Online presence reaches large amount of potential customers throughout the world and is not confined to local sales Online statistical data can be easily compiled for designing offer and promotions to be in line with customer needs Better customer service It is easier to get feedback from online customers and interact with them to know their view Engaging customer and incorporating their views will lead to improve customer satisfaction and loyalty Virtual communities and social networks can segment the market for specific product With customer opinions and reviews, better and more effective marketing strategies can be formulated which in alignment with customer tastes and preferences

Cut Costs

Internet orders cost less than $1 /order which is much less in comparison with channels e.g. phone/fax/mail orders costing ~ $4 and normal brick/mortar Low Inventory Costs as the goods are directly delivered to customers instead of being passed through several, middle men. Low Operating Costs with reduced overhead as in this platform there is no need to pay rent for a storefront, hire employees, or even print advertising.

Why ebay?
Over 5 million registered users covering more than 4,306 cities in India Every 16 min a pair of footwear is sold Every 3 min a piece of apparel is sold More than 600 NIKE products currently listed on Ebay

Large customer base

Logistic & payment

Powership program to manage logistic function on behalf of seller to ease their shipping experience Fast and accurate shipping by reputed logistic service with lower freight rate due to scale of economies benefit Efficient, cost effective and secure payment through Paisapay

Data & Analytics Support

ebay can make available to Nike crucial sales data and customer feedback of sales, current trends etc. ebay support for taking informed decision about product customization as per customer needs Better marketing tools, advanced analytics report and design help for listing the product

Special service to Nike

Dedicated toll-free customer service support Integration with Nike ERP system to help better manage inventory and tackle supply chain problems Complete control over look, feel and functionality along with maximized store visibility

Time (mm:ss) Unique page views/day Xerion (Jabong) 5:36 5.81 vector (Myntra) 6.07 5.44 Jasper (Snapdeal) 5:25 5.12 Flipkart 7:00 7.97 Junglee (Amazon) 3:36 5.56 ebay 10.15 11.94

Sales Pitch for NIKE

Wider coverage Tier 2 & 3 cities More than 600 NIKE products currently listed on Ebay Every 16 min a pair of footwear is sold Every 3 min a piece of apparel is sold Statistics regarding sales of Apparel and footwear through ecommerce Value proposition for NIKE Access to large customer base A vibrant marketplace to sell your product eBay India has over 5 million registered users. These users come from over 4,306 cities in India. At any given time, there are over 2 million live listings on eBay India ( www.eBay.in ) across 2,000 categories of products in Electronics, Lifestyle, Collectibles & Media verticals. Approximately 30,000 sellers sell on eBay India annually.

Customer Lifecycle in E-commerce Impact point of Discount/Promotional Campaign 1. RFM Score

Discount / Promotional Campaign Acquisition Customer who left website after adding items in cart Abandonment Attrition Attract old customer who went to other ecommerce websites Discount / Promotional Campaign
2. CLV

Reach Customer Target New customer

1. Abandonment Ratio 2. CCP 3. Acquisition Cost

Conversion

Retention

Loyalty

Withdraw discount

Churn

Churn Rate

Analyzing impact of discount on attracting new customer

In current context, 15% discount will attract first time buyers, metrics to measure impact of first time shoppers & buyers : Metrics
Abandonment Ratio = Ratio of Abandonment carts to completed purchases per day

Data Required No. of Abandonment per day No of purchase per day

Significance of metrics Conversion of shoppers to buyers Discount has positive impact, If shopper having similar profile and items in carts purchase the product rather than abandoning Increase in this ratio signify higher conversion for first time shopper Determines the value of a given promotional effort in given period of time Low cost per conversion signify higher sales Value of given promotional effort in a given month Low acquisition cost signify better impact of discount and increase traffic

Cost per conversion(CCP)= (Advertising & Promotional Cost ) / Number of Sales Acquisition Cost = Total Advertisement Cost / Number of Click - Throughs

Total Advertising Cost Number of sales Total Advertising Cost Number of Ad-banner Click Through Rate

Above metrics will help to measure the impact of discount / promotional campaign in attracting new customer to the sites. Advertisement cost is incurred in display ads on various websites and social media during the given period of 1 month.

Impact of Discount/Promotional Campaign in Customer Retention

Analyzing impact of discount on customer retention
Metrics RFM Score (Recency, Frequency, Monetary) = Recency + Frequency + Monetary Data Required Recency : Last time since customer visited the website Frequency : How many customer visited in one month; frequent purchaser are likely to make repeat purchase Monetary value of the purchase; Significance of metrics Combination of RFM will help to predict the best customer on which Ebay should focus. If customer purchase items worth INR 10000 and his recency is 1 month i.e. customer purchase after every 1 month, he will avail 15% discount on his next visit under current scheme. If for a customer , recency is more than 1 month , but has made purchase under promotion means that discount offer was effective by bringing down the Recency This will also help to identify the customer who have high recency and high monetary value of purchase , so that they can be targeted separately.

Customer Lifetime Value (CLV)

Customer past transactions and purchases Socio-demographic information Monetary value of purchase Cost incurred on retention

15% of 10000 (INR 1500) + Advertisement cost will be incurred in retaining customer. Customer Lifetime Value can be calculated by discounting to identify the best customer. Determine anticipated customer lifetime in months. Future revenue can be forecasted by aggregating CLV of customers

Churn Rate = No. of Subscribers lost/ No. of ending subscribers

No. of Subscribers lost No. of Subscribers at the end of month

This will help to measure no. of new subscribers end in a month. Low churn rate signify : Less customer loss More customer addition

What other ideas or measurements you will suggest which eBay should incorporate in its strategy to remain competitive in Indian ecommerce market.?
Product Comparison A tool to compare different products within the same category will aid consumers buying decision (as done by flipkart, snapdeal etc.) Presently, only sellers have reviews on the site. Product-based reviews should also be initiated. Monthly Cyber Mondays A contract can be signed with few reputed sellers to allow eBay to control them. This can be used to designate one day in a month as a lowest price sale on few products. Print Ads with QR code C2C model A sub-domain (similar to OLX, Quikr) can be introduced which will only list sellers and their products. eBay will not initiate any purchase transaction here. Buyers will contact sellers directly. This will help eBay in gauging buyer interests and customize his/her eBay homepage accordingly. Product Review Mobile top-up & Travel, Hotel Bookings Aim here is to provide all the online solutions on one single website. In this context, mobile recharges, travel, hotel bookings etc. can be provided.

Deals on eBay can be published in newspapers, magazines etc with QR code beside each product. Consumers can scan the QR code to buy directly from their smartphones.
Group Buying There should be sub-domain developed where buyers can place a request for a product and his purchase price Other buyers can join these requests for placing a group request Now, a sellers can see these group requests and quote their prices. The cheapest seller wins the deal Buyers & sellers can be charged a fee so that they dont back out later Real-time chat support An efficient customer care support is very essential for any online retailer. In this direction, eBay can introduce realtime chat support for resolving queries of various buyers and sellers.

Social media connect

eBay can use buyers and sellers facebook, twitter pages to post about their recent purchases or sales. This will help in enhancing brand equity of eBay.