Chapter - I Mobile & E-Mail Marketing Opportunities With Refrence To Retail Industry
Chapter - I Mobile & E-Mail Marketing Opportunities With Refrence To Retail Industry
Chapter - I Mobile & E-Mail Marketing Opportunities With Refrence To Retail Industry
1.1 Introduction:
` Mobile marketing is a marketing approach that sees brands and businesses using
a variety of techniques to promote their business, brand, product, or service directly to
mobile users. In the early days of mobile devices, mobile marketing was limited to
SMS, and later MMS. But as the technology has developed, and the reach and use of
mobile phones has grown, this has expanded to include email, mobile websites, voice-
calls, and more recently, mobile apps – with or without push notifications – social
media, and chat apps. And while the first SMS ad was sent back in 2000, many of the
newer strategies are less than a decade old, highlighting how quickly the technology is
evolving. We have also shifted from using mobile phones with a limited set of features,
to using smartphones that themselves are capable of more with each update, now also
complemented by the addition of tablet devices, and smart watches.
The explosion of iPhone, Android, and tablet devices means that businesses
must adopt a “mobile-first” mentality or risk losing the clicks, opens, and conversions
that deliver revenue back to the business.
The digital world has experienced a mobile transformation over the last decade.
In the first thirty years since the birth of email in 1971, people viewed and interacted
with electronic mail on desktop computers exclusively, until now. In 2019, people are
using their mobile devices more frequently and for longer periods of time than their
desktop computers. A great majority of Indians alone (95%) now own a cell phone of
some kind, with 77% of them owning a smart phone. As people continue to shift away
from desktops and towards mobile, the way they receive and consume email campaigns
naturally shifts with them.
In fact, in 2019, 60% of email campaigns are being opened on mobile devices,
compared to 10% on desktops and 29% on webmail clients. The number of smartphone
users in India is expected to grow by 15.6% to reach 337 million in 2018, according to
the report. Surprisingly, it is the highest estimated growth rate posted by any country in
the world. The key factors behind this growth are the upsurge in smartphone usage and
the demand for more affordable smartphones in urban areas.
Most retail stores are complex environments that have developed gradually over
the past fifty years. There are two levels to that complexity. Firstly, the move to the
self-service format from the service format that preceded it was a massive cultural
change. For consumers, self-service meant choice, convenience and value. However, it
also involved learning how to find their way around a new environment. Over the years,
retailers have learned how to design that environment to better meet shopper needs and
to drive sales. In the future, all of retail touch points for consumers could have a mobile
element. From the research work available in the mobile space, one can identify the
emerging applications that will enable shoppers to have richer interactions. These
interaction points enable scope for Mobile Marketing to be highly effective tool in retail
for marketers in future.
Definitions:
Email marketing is one segment of internet marketing, which encompasses online
marketing via websites, social media, blogs, etc. It is essentially the same as direct mail except
that instead of sending mail through the postal service, messages are sent electronically via
email.
Mobile marketing is the interactive multichannel promotion of products or services for
mobile phones and devices, smartphones and networks. Mobile marketing channels are diverse
and include technology, trade shows or billboards.
Retail is the sale of goods and services from businesses to an end user (called a
customer). Retail marketing is the process by which retailers promote awareness and interest
of their goods and services in an effort to generate sales from their consumers. There are many
different approaches and strategies retailers can use to market their goods and services
Email Marketing is also gaining huge popularity among retail marketers with improved
internet connectivity of the consumer in today’s world. Email marketing is used in a number
of ways by organizations and marketers for brand and customer loyalty building, acquiring or
converting customers, company advertisements, or for communicating promotional offers and
more.
On analysis of data collected it was noted that Android and iOS based mobile marketing
solutions were mostly offered in the retail industry. It was also established that mobile
marketing opportunities exist in the retail industry especially in these business segments - In
store, Merchandising and Mobile Commerce. Android was identified as the most popular
mobile platforms globally followed by iOS, so it’s recommended to offer mobile marketing
solutions on these platforms. Based on the research findings, it was concluded that Email
marketing was among the most widely used marketing tool by the marketing companies in the
retail sector. E mail Marketing pricing offering is very competitive in Asia Pacific region so
most of the companies price quotation are on the average range and very similar. The real
differentiators are the service offerings and access to Email address list with demographic
details.
1.2 Objectives of the study:
The research was undertaken with the following objectives in mind:
1. To identify opportunities for Mobile marketing and Email marketing in the
Retail Industry.
2. To study profiles of marketing companies along with their business categories,
solutions and supported marketing tools/platforms in order to identify Email
Marketing opportunities.
3. To trace the growth and opportunities of the mobile and e-mail marketing in
retail industry.
4. To identify the facilitating and limiting factors associated with mobile
marketing communication in India.
5. To identify basic strategies that can help Marketers Bridge the gap between the
customers and the brand.
This data is very important for Syntellinex as they are exploring opportunities to offer
solutions in mobile marketing and email marketing with retail sector as primary target. The
finding and recommendations from the research would be used to define future strategy for the
company in respect of market scope, initial target market, and pricing strategy.
1.4 Methodology
The research design is the conceptual structure within which research is conducted. It is a plan
of action, a plan of collecting and analysing the blue print for the collection, measurement &
analysis of data. The proposed study is an exploratory cum descriptive.
Descriptive Research is designed to provide further insight into the research problem by
describing the variables of interest. It can be used for profiling, defining segmentation,
estimating, predicting and examining associative relationships. This research used descriptive
research design for getting exact information on price quotation on email marketing in Asia
Pacific region. This region was identified after initial analysis using exploratory research
method.
1.8 Chapterisation:
First chapter is deals with Introduction, Needs, Objectives, Scopes and
Limitations of the study.
Second chapter is gives the review of literature for related on study.
Third chapter is gives the overview of India post.
Fourth chapter shows the analysis and interpretation tools used.
Fifth chapter summarizes the findings, suggestions and conclusion.
CHAPTER – II
REVIEW OF LITERATURE
The main purpose of review of literature is going to gain the knowledge from the
previous study in related research topics. It helps the researcher to justify to framing question
and get an idea for upcoming suggestion of the study.
3. Garyl L Frazier [1987] had pointed of focus of marketing practice towards the
concepts of product positioning & differentiation as ways to impact on market behavior in
current market situations. Strategic marketing practices had focused on product and market
portfolios. “In today’s scenario the globalization of market has introduced strategic marketing
practice which has produced standardized products and services as a way of creating better
values for the customers. The marketing research has also become more important in the area
of marketing practice because of the failures of new products introduced in the late fifties. The
marketing practices are highly focused on specific products or industries. The task of marketing
practice is to create and retain positive market position for the product as well as services of
the industries. They further concluded that creation and retention of positive market
predisposition and positive market behavior is achieved by the help of seven or four P’s of
marketing principles which are practiced.
7. Smarta [1994] observed the changes in marketing practices stressed that in addition
to devising strategies to generate prescriptions, in the new environment, the firm must devise
method to strengthen retailing. He said if retailing is not focused, generated prescriptions are
likely to get substituted by similar brands of other companies
8.Okazaki [2007] suggested that Japanese mobile Internet users could be classified into
three segments in terms of their demographics and life-styles. The literature also indicated that
mobile device shoppers might be further segmented based on multiple variables (Table A1).
The only segment that seemed to fit into the classification of mobile device shoppers were
students and young unmarried office workers, as they exhibited higher usage of mobile Internet
and using mobile pull advertising to a higher degree to search for new information.
9. Okazaki and Romero [2010] also identified segments of dual Internet media users.
Four different Internet user segments in the Japanese market were identified: segments of
moderate fixed and mobile Internet users, heavy fixed Internet users, and two segments of
heavy mobile Internet users. Among the heavy mobile Internet users one segment were also
heavy dual Internet users, while the other segment only used Fixed Internet moderately. The
dual Internet users were of certain interest as it indicates that mobile device shopping was a
learnt behaviour from fixed Internet PC, and potentially developed by other mobile experiences
(Table A1). The results from Okazaki and
10. Romero [2010], also indicated that PC Internet might be used for recruitment of
mobile device shoppers in markets with high fixed Internet penetration and high fractions of
dual media users.
11. Richardson, [2010], thought that smartphone will help to increase the development
of mobile marketing and the ‘traditional’ phone will go down. Regardless of this, he also
implied that the most important ‘asset’ of the company is the customers.The standard definition
of smartphone is the phone which has a type of operating system, on which the users can install
applications. However, the border between the smartphones and the ‘dumbphones’ has been
become blurred recently because the socalled ‘dumbphones’ can also be installed applications
by the third party, such as widely used Java-applications.
12. Ahonen, [2010], the ‘mobile internet’ was invented by NTT DoCoMo in 1999. A
research by Yankee Group in 2009 showed that 29% of all mobile phone user accessed ‘mobile
internet’ in any kinds of browsers in the phones.There are also 1,2 billion people who use
‘mobile internet’. That is a huge number. The question is, ‘do they belong to the young
generation such as students?’. We will make the survey and discuss about this problem later.
15. Mobile Advertising –Vision by Ogilvy and Acision [2020], Mobile advertising in
2020 will be mobile directed advertising which is selected and chosen by the individuals
themselves. Individuals and not consumers; consumers remain a group or type of person which
conforms to a pre-defined segment by the brands. Individuals, on the other hand, are fully
independent, they may let you know them or part of them but they will never let a brand own
them. It is the individual who will be the pivotal player in the mobile advertising domain of the
future and the mobile device will be a technological representation of them. The mobile phone
will transform from being seen as a new personalized channel to receive advertisements on; to
a device which will orchestrate where, when and how selected advertiser’s information will be
delivered.
CHAPTER - III
3.1 Introduction
The Indian retail industry has emerged as one of the most dynamic and fast-paced
industries due to the entry of several new players. Total consumption expenditure is expected
to reach nearly US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017. It accounts for over
10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the
employment. India is the world’s fifth-largest global destination in the retail space.
The Government of India may change the Foreign Direct Investment (FDI) rules
in food processing, in a bid to permit e-commerce companies and foreign
retailers to sell Made in India consumer products.
Government of India has allowed 100 per cent Foreign Direct Investment (FDI)
in online retail of goods and services through the automatic route, thereby
providing clarity on the existing businesses of e-commerce companies operating
in India.
It is projected that by 2021 traditional retail will hold a major share of 75 per cent,
organised retail share will reach 18 per cent and e-commerce retail share will reach 7 per
cent of the total retail market. Nevertheless, the long-term outlook for the industry is
positive, supported by rising incomes, favourable demographics, entry of foreign players,
and increasing urbanisation.
Cumulative FDI inflow from April 2000 to September 2017, in the retail
sector, reached US$ 1,098.81 million. Retail 2020: Retrospect, Reinvent,
Rewrite. Movement to smaller cities and rural areas
More than 5–6 players with revenues over US$ 1 trillion by 2020. Large-
scale entry of international brands. Approval of FDI limit in multi- brand
retail up to 51 per cent. Rise in private label brands by retail players
SMS Marketing
MMS Marketing
Apps Marketing
Android:
Android was developed by a small start-up company that was purchased by
Google Inc. in 2005, and Google continues to update the software. Android is a Linux-
derived OS backed by Google, along with major hardware and software developers
(such as Intel, HTC, ARM, Samsung, Motorola and eBay, to name a few).
IOS:
The Apple iPhone, iPod Touch, iPad, and second-generation Apple TV all use
an operating system called iOS, which is derived from Mac OS X.
For the purpose of sample design, Non probability sampling scheme was chosen.
4.1 Nonprobability sampling:
Nonprobability sampling is any sampling method where some elements of the
population have no chance of selection (these are sometimes referred to as 'out of coverage'),
or where the probability of selection can't be accurately determined. It involves the selection
of elements based on assumptions regarding the population of interest, which forms the criteria
for selection. Hence, because the selection of elements is non estimation of sampling errors.
These conditions give rise to exclusion bias, placing limits on how much information a sample
can provide about the population. Information about the relationship between sample and
population is limited, making it difficult to extrapolate from the sample to the population.
For the purpose of this research, sample was chosen as all the participant companies for
National Retail Federation 2018 expo.
The study was carried out to identify opportunities of mobile and email marketing in the retail
sector and at the time asses the competition for Syntellinex. This research was done to collect
the information on current players/companies in mobile marketing & email marketing segment
in the retail industry especially in North America region, Asia Pacific region and Middle East
region. The companies under study were primarily scoped as all the companies participating in
National Retail
Federation 2018 expo.
The data collection of the study for company profiling was scoped to following details:
Company Name
Corporate Website URL
Brief Description of the Company
Business Segment and Solutions Offered
Mobile/Marketing Platform supported
This data is very important for Syntellinex as they are exploring opportunities to offer solutions
in mobile marketing and email marketing with retail sector as primary target. The finding and
recommendations from the research would be used to define future strategy for the company
in respect of market scope, initial target market, and pricing strategy.
Brief Description:
KoamTac's creates application generation software that enables barcode scanning integration
without modification to most line-of-business applications and supports all major
Smartphones.
Business Categories:
Information Technology
In-Store - Scanning Technology
In-Store- Retail Technology Solutions
Storage & Distribution
Solutions:
Transportation and Logistics,
Distribution and retail,
Hospitality
Supported Platforms:
IPhone (iOS)
Android
Windows
Brief Description:
Air Watch’s secure, web-based solution provides a single, integrated view of a retailer’s entire
fleet of both corporate and employee-owned Apple iOS, Android, Blackberry, Symbian and
Windows devices.
Business Categories:
Application Management
POS
In-Store
Decision Support System
Solutions:
Mobile Application Management
Mobile Content Management
Mobile Email Management
Supported Platforms:
iPhone
Android
Windows
Business Categories:
Application Service Provider
E Commerce
Solutions:
Retail Banking,
Retail Brokerage
Enterprise Asset Management
Supported Platforms:
iOS (iPhone/iPad)
Android
Windows
Android 91.32%
iOS 2.71%
kaiOS 4.39%
Samsung 0.38%
Tizen 0.29%
Others 0.25%
Table 4.2: India Mobile market share by os
Android 76.02%
iOS 22.91%
Windows 0.04%
Linux 0.20%
SymbianOS 0.02%
Others 0.79%
Table 4.4: China Mobile market share by os
Australia Market Share by OS:
In Depth analysis of all the marketing companies participating in NFR 2018 Expo was
conducted.Corporate web sites of each of these companies were explored to identify business
solution and supported marketing platforms. A questionnaire was created as part of this
module.
A total of one hundred thirteen companies were listed as part of the research with detailed
profile along with supported marketing platforms. Research was conducted in view of
identifying usage pattern of following platforms by these companies.
SMS Marketing
MMS Marketing
Email Marketing
Web Marketing
Apps Marketing
Digital Marketing
Database Marketing
Direct Marketing
Brief Description:
Vision6 is a global leader in SMS & Email Marketing and Database Management solutions. Its
award offers a powerful, on demand solution delivering automated marketing, email marketing
system analytics, online surveys, Email & SMS creation, sales lead generation and extensive
list management all within an intuitive and spam compliant framework.
Business Categories:
Information Technology and Services
Solutions:
Marketing
Advertising
Email Marketing
Business Categories:
Marketing and Advertising
Solutions:
Marketing Strategy
Marketing Communications
Brand Strategy
Website Design
Digital Marketing
Social Media Marketing
Online Marketing
Email Marketing
Vision6
EzyMsg
Melon Media Sydney
Groovy Mail
Apex Pacific
Interact Guru
V.Sop Design
Pinpointe
Blayn Inc.
Campaign Monitor
Total Companies: 85
5.3 CONCLUSIONS:
In 2018 alone, more than 218 billion emails were sent — every single day. That number
is expected to increase to more than 333 billion daily mails in 2022. When it comes to email
marketing, the average return on a $1 investment is $44, and email marketing is used by 82%
of B2B and B2C companies.Smart retailers know they can’t do it alone, which is why millions
of people use email marketing to create engaging newsletters that encourage conversions.
Mobile users spend more than four hours a day on their phones, and according to
Statista, mobile accounted for 52.5% of worldwide website traffic in 2018. Not only that, but
while email has an average open rate of around 24%, the rate of text message open rate in the
US is a whopping 82%.What this should tell retailers is that while email marketing is necessary
and still very effective, you should also be optimizing the use of mobile in your marketing
efforts. Just as you collect email addresses, start to collect phone numbers, as well,
REFERENCES