Chapter 1

1. Industry Profile

India had an internet user base of about 354 million as of June 2015 and is
expected to cross 500 million in 2016. Despite being the second-largest
userbase in world, only behind china (650 million, 48% of population), the
penetration of e-commerce is low compared to markets like the united states
(266 million, 84%), or France (54 m, 81%), but is growing at an unprecedented
rate, adding around 6 million new entrants every month. The industry consensus
is that growth is at an inflection point. In India, cash on delivery is the most
preferred payment method, accumulating 75% of the e-retail activities. Demand
for international consumer products (including long-tail items) is growing much
faster than in-country supply from authorized distributors and e-commerce
offerings. Largest e-commerce companies in India are Flipkart, Snapdeal,
Amazon India, Paytm.

Some of the key drivers of the E-commerce industry are as fallows

 Large percentage of population subscribed to broadband internet, 4g

internet users across the country.
 Explosive growth of smartphone users, soon to be world's second largest
smartphone userbase.
 Rising standards of living as result of fast decline in poverty rate.
  Availability of much wider product range (including long tail and direct
imports) compared to what is available at brick and mortar retailers.
 Competitive prices compared to brick and mortar retail driven by
disintermediation and reduced inventory and real estate costs.
 Increased usage of online classified sites, with more consumer buying
and selling second hand goods.

2. Company profile

Amazon

Amazon is the largest internet-based company in the united states. Amazon.com

started as an online bookstore, but soon diversified, selling dvds, vhss, cds,
video and mp3downloads/streaming, software, video games, electronics,
apparel, furniture, food, toys, and jewelers. The company also produces
consumer electronics notably, kindle, fire tablets, fire tv and phone and is a
major provider of cloud computing services.

Amazon has separate retail websites for united states, United Kingdom &
Ireland, France, Canada, Germany, the Netherlands, Italy, Spain, Australia,
brazil, japan, china, India and Mexico, with sites for sri Lanka and south east
Asian countries coming soon. Amazon also offers international shipping to
certain other countries for some of its products. In the year 2011, it had
professed an intention to launch its websites in Poland, and Sweden. In early
June 2013, Amazon.com had launched their Amazon India marketplace without
any marketing campaigns. In July, 2013, Amazon had announced to invest $2
billion (rs 12,000 crores) in India to expand business, after its largest Indian
rival Flipkart too had announced to invest $1 billion.

Vision
Our vision is to be earth's most customer-centric company; to build a place
where people can come to find and discover anything they might want to buy
online.

Mission

"Amazon is guided by four principles: customer obsession rather than

competitor focus, passion for invention, commitment to operational excellence,
and long-term thinking. Customer reviews, 1-Click shopping, personalized
recommendations, Prime, Fulfilment by Amazon, AWS, Kindle Direct
Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of
the products and services pioneered by Amazon."

Products / Services profile

The Amazon kindle is a series of e-readers designed and marketed by

Amazon.com. Amazon kindle devices enable users to browse, buy, download
and read e-books, newspapers, magazines and other digital media via wireless
networking to the kindle store. The hardware platform, developed by Amazon
subsidiary lab126, began as a single device and now comprises a range of
devices, including e-readers with e ink electronic paper displays, and android-
based tablets with color LCD screens. All kindle devices integrate with the
kindle store to acquire content and as of February 2016, the store has over 4.3
million e-books available in the us. The Oneplus one launched as an Amazon
exclusive in India last year, but now the device is available for purchase on rival
e-commerce store Flipkart.

Flipkart

Flipkart has launched its own product range under the name “digiflip”, Flipkart
also recently launched its own range of personal healthcare and home
appliances under the brand “citron”. During its initial years, Flipkart focused
only on books, and soon as it expanded, it started offering other products like
electronic goods, air conditioners, air coolers, stationery supplies and life style
products and e-books. Legally, Flipkart is not an Indian company since it is
registered in Singapore and majority of its shareholders are foreigners. Because
foreign companies are not allowed to do multi-brand e-retailing in India,
Flipkart sells goods in India through a company called ws retail. Other third-
party sellers or companies can also sell goods through the Flipkart platform.
Flipkart now employs more than 15000 people. Flipkart allows payment
methods such as cash on delivery, credit or debit card transactions, net banking,
e-gift voucher and card swipe on delivery. Flipkart is presently one of the
largest online retailers in India, present across more than 14 product categories
& with a reach in around 150 cities and delivering 5 million shipments per
month.

Vision

“To become Amazon of India.”

Mission

"Providing a delightful customer experience"

Products / Services profile

Motorola mobility, previously owned by google but then sold to Lenovo, in an

exclusive tie up with Flipkart launched its budget smartphone moto g in India
on 5 February 2014 more than 20,000 units were sold within hours of launch on
Flipkart after this Flipkart was looking for a long term tie up with Motorola
mobility. They also launched their android smartphone, the moto x, on 19
march 2014. Flipkart later sold the moto e, cheaper than moto g, from 13 may
2014. The sale of high-end smartphone Xiaomi mi3 produced by Xiaomi tech
was launched in India on an exclusive tie-up with Flipkart. The first batch was
sold out within 39 minutes on 22 July 2014, the second in 5 seconds on 29 July
2014. The sale was proceeded on pre-registration mode where more than
150,000 buyers booked for the 5 august 2014 sale. This got sold off in less than
2 seconds. Following this Xiaomi tech sold 20,000 units in the next sale on 12
august 2014.

On 2 September 2014 Flipkart held a flash sale of the Xiaomi Redmi 1s budget
android smartphone which was launched in India in July 2014. 40, 000 units
priced at rs 5999 each were sold within seconds. A further 40,000 units were
sold within 4.5 seconds on sept 9, 2014. The third Redmi 1s sale on sept 16,
2014 sold 40,000 units in 3.4 seconds; in the 4th round of sale of Redmi 1s,
60,000 units sold in 5.2 seconds on sept 23, 2014. On 30 September 2014
60,000 units sold in 13.9 seconds. Redmi note in India exclusively through
Flipkart; 50,000 units sold in 6 seconds on 2 December 2014. In July 2014
Flipkart launched its own set of tablets, mobile phones & phablet. The first
among these series of tablet phones was digiflip pro xt 712 tablet. In July 2014
Flipkart launched its first networking router, under its own brand name named
digiflip wr001 300 mbit/s wireless n router. In September 2014 Flipkart
launched its in-house home appliances and personal healthcare brand citron.
The label includes a wide range of cooking utilities and grooming products.

Snapdeal

Snapdeal is one of India’s leading e-commerce companies with its headquarters

located in New Delhi. Snapdeal was launched in 2010, a time when the e-
commerce market in India was at a nascent stage. The company was co-founded
by Kunal Bahi and Rohit Bansal. Snapdeal currently offers more than 60
million products across various categories such as mobiles & tablets, computers,
office & gaming, electronics, home & living, men’s and women’s fashion,
sports, fitness & outdoors, daily needs, motors & accessories, books, music, real
estate, and financial services. The company has more than 3 lakh sellers on its
e-commerce platform that cater to millions of users. Snapdeal has a wide
logistics network and it delivers to more than 6000 cities and towns in India.
Vision

“To create Indian’s most powerful digital commerce ecosystem that creates life
changing experiences for buyer and sellers.”

Mission

“Aims at making life fun for consumers. We have simple business philosophy;
we just do not offer best prices; we offer great experiences! You do not need to
spend a fortune to enjoy what you love; we are just a click away.”

3. Area of operation

Ecommerce is the broad term. Today, e-commerce isn’t just reserved for big
companies but appealing much anyone can get involved in this (Affilorama,
n.d.). It has covered various sectors including health, education tourism etc.
some of the main areas where the ecommerce has penetrated are listed bellows:

In Education as e-learning

In Health as Telemedicine

In Travel and tourism: Online Hotel Reservation, Managing trips and vacations.

In entertainment: Online movie database, online games, betting sites etc.

In Service-related areas: E-brokers, E-ticketing etc

In Financial sector as E-banking.

Beside the above given main areas it also has its impact on various sectors such
as E-publishing, Online Auction, Online advertisement etc.
 4. Competitors’ information

Amazon is considerable part of its revenue is generated from the online sale of
electronics and other related goods. It is also one of the most valuable brands in
the world with approximately 400 million customers with active accounts
globally. Amazon also offers its services through mobile App and digital
products like music and videos. It currently has over 370,000 employees
worldwide. Amazon is the topmost competitor due to its increasing market
share.

Flipkart is a newer ecommerce company compared to some of the other

competitors on our list. This Indian-based ecommerce platform was founded in
2007 and quickly became the largest online retailer in India. In 2018, Walmart
acquired 77% of Flipkart’s shares, valuing the company at $22 billion. With
Walmart controlling the majority stake of Flipkart, there’s no telling where the
company can go from here. More than 100 million users are registered on
Flipkart. The platform’s user-friendly design, mobile app, and customer service
make it one of the up-and-coming Amazon competitors. With such a wide range
of products offered through Flipkart, the company is poised for continued
success in the coming years.

Snap deal has been able to acquire some businesses such as Grabbon.com,
esportsbuy.com, and Doozton.com, which has made it possible to expand and
become a solid competitor in the e-retailing sector, especially in India. Recently,
Snapdeal has dropped much in its brand equity and its online sales has dropped
drastically. However, due to its legacy, it is still one of the top Competitor in E-
commerce industry.
 Popularity Rank
Company Name in India
Flipkart.com 6
Amazon.in 8
Snapdeal.com 13
Quikr.com 17
Amazon.com 18
jabong.com 21
Ebay.in 28
Paytm.com 30
Olx.in 37
Naukri.com 43
Alibaba.com 46
Shopclues.com 50
Myntra.com 52

5. Future growth and prospects

Over the last two decades, rising internet and mobile phone penetration has
changed the way we communicate and do business. E-commerce is relatively a
novel concept. It is, at present, heavily leaning on the internet and mobile phone
revolution to fundamentally alter the way businesses reach their customers.
While in countries such as the US and China, e-commerce has taken significant
strides to achieve sales of over 150 billion USD in revenue, the industry in India
is, still at its infancy. However, over the past few years, the sector has grown by
almost 35% CAGR from 3.8 billion USD in 2009 to an estimated 12.6 billion
USD in 20131. Industry studies by IAMA2 I indicate that online travel
dominates the e-commerce industry with an estimated 70%of the market share.
However, e-retail in both its forms; online retail and market place, has become
the fastest-growing segment, increasing its share from 10% in 2009 to an
estimated 18% in 20133. Calculations based on industry benchmarks estimate
that the number of parcel check-outs in e-commerce portals exceeded 100
million in 2013. However, this share represents a miniscule proportion (less
than 1%) of India’s total retail market, but is poised for continued growth in the
coming years. If this robust growth continues over the next few years, the size
of the e-retail industry is poised to be 10 to 20 billion USD by 2017-2020. This
growth is expected to be led by increased consumer-led purchases in durables
and electronics, apparels and accessories, besides traditional products such as
books and audio-visuals.
 Chapter 2
1. McKinsey’s 7S framework

The McKinsey 7S model is a useful framework for reviewing an organisation’s

marketing capabilities from different viewpoints. The power of the McKinsey
7S model is that it covers the key organisation capabilities needed to implement
strategy successfully, whether you're reviewing a business, marketing or digital
strategy.

1. Strategy

The contribution of digital business in influencing and supporting organisations’

strategy. The key issues are:

• Gaining appropriate budgets and demonstrating, delivering value and

ROI from budgets.
• Annual planning approach.

• Techniques for using digital business to impact organization strategy.

• Techniques for aligning digital business strategy with organisational and

marketing strategy.

2. Structure

The modification of organisational structure to support digital business. The key

issues are:

• Integration of digital marketing or e-commerce teams with other

management, marketing (corporate communications, brand marketing, direct
marketing) and IT staff.

• Use of cross-functional teams and steering groups.

• Insourcing vs outsourcing.

3. Systems

The development of specific processes, procedures or information systems to

support digital business. The key issues are:

• Campaign planning approach-integration.

• Managing or sharing customer information.

• Managing customer experience, service and content quality.

• Unified reporting of digital marketing effectiveness and

• In-house vs external best-of-breed vs external integrated technology

solutions.

4. Staff
The breakdown of staff in terms of their background, age and sex and
characteristics such as IT vs marketing, use of contractors/ consultants. The key
issues are:

• Insourcing vs outsourcing.

• Achieving senior management buy-in/involvement with digital

marketing.

• Staff recruitment and retention, and virtual working.

• Staff development and training.

5. Style

Includes both the way in which key managers behave in achieving the
organisation’s goals and the cultural style of the organisation as a whole. The
key issues are:

• Defining a long-term vision for transformation.

• Relates to role of the digital marketing or e-commerce teams in

influencing strategy – is it dynamic and influential or a service which is
conservative and looking for a voice.

6. Skills

Distinctive capabilities of key staff, but can be interpreted as specific skill-sets

of team members. The key issues are: staff skills in specific areas such as
supplier selection, project management, content management and specific e-
marketing media channels.

7. Shared values

The guiding concepts of the digital business or e-commerce organization which

are also part of shared values and culture. The key issues are: improving the
perception of the importance and effectiveness of digital business amongst
senior managers and staff it works with (marketing generalists and IT).

2. SWOT Analysis

STRENGTHS:

• Boundary less (global location): E-commerce can be dealt globally as no

specific boundary is required. It enables all the companies to expand them to
global level.

• Time saving: It saves time and transportation. Because there is no need to go

anywhere physically.

• No time constraints: It can be used anywhere any time as there is no time

constraints.
• Price/Product comparison: Helps consumers to compare price and product
effectively and efficiently.

• Cost effective: Reduces logistical problems and puts a small business on a par
with giants.

• Direct communication with consumer: Social networking sites, online

advertising networks can be mediums to buzz about online store.

• Improved customer interaction: Quick feedback and comment forms are main
features to interact with customers.

• Flexible target market segmentation: Target market segment here in e

commerce is flexible can be modified any time.

• Simple and easier exchange of information: Improves information sharing

among merchants and customers and enables prompt quick just in time
deliveries.

• Lowers transaction cost: Things can be automated in a well implemented

online store. If online download facility is available then distribution cost can be
cut off.

• Easy arrangement of products: Products can be arranged in the shelves within

minutes. With online store it is quite easy.

• Faster buying procedure: Ecommerce means better and quick customer

services. Online customer services make customer happier. Due to absence of
intermediaries for buying products. So, buying procedure will be fast and quick.

• No physical company set up: Doing e business is cost effective because no

physical set up is required for that.

• Easy transactions: Financial transactions through electronic fund transfer are

very fast and can be done from any part of the world.
• Niche Products: Almost everything can be sold on internet. Even if products
targeted to smaller markets the buyer will be somewhere on net. Low operating
cost: It can be started and continued with very low investment. Staff cost is very
low.

WEAKNESSES:

• Security: Security matter confuses customers especially about the integrity of

the payment process.

• Fake websites: Fake websites can not only disgrace e commerce but bring bad
name to e commerce also.

• Fraud: Concerns about misuse of financial and personal data is a great

weakness in e commerce.

• Fewer discounts and bargaining: Hardly online businesses offer discounts and
bargaining cannot be possible.

• Long delivery timing: Delivery time can be in days or weeks which one cannot
wait for.

• No idea about quality and physical condition of the product: Online products
cannot be touched, wear or sit on the products.

• Limitation of products: Limited number of products can be available.

• Lack of personal services: Physical products can be available but lack in

personal services which are intangible.

• More shipping cost: Shipping cost increases if we order online.

OPPORTUNITIES:
• Changing trends: Ecommerce is fast and effective even financial transactions
can be made from any part of the world. People of tomorrow will feel more
comfortable to buy products through internet only.

• New technologies: Daily number of internet users is increasing. People feel

more comfortable to shop online.

• Global expansion: Ecommerce can be operated any where any time without
any interruption. • High availability (24 hour and seven days a week): Along
with each and every click of the mouse business is in operation.

• Wide business growth: E-business has wide scope and broader vision to grow.

• Cut down on local competition: Online customer services is a competitive

advantage for the company.

• Advertising: Advertising is cost effective as compare to conventional offline

system.

THREATS:

• Competitors: Competition is increasing day by day big companies have

already entered in this field. They are making people habitual at the cost of their
companies.

• Changes in environment, law and regulations: Change in trends, fashion and

fad can distress E Commerce side by side change in law and regulations can
also affect it.

• Privacy concerns: Fears that information can be misused lead to spam e mail
or identity fraud.

• No direct interaction: In e commerce there is no direct interaction of customer

and the seller. That’s why bargaining does not exist. People prefer to buy
physically a compare to online.
• Fraud: Persons using unfair means to operate e commerce can damage the
confidence and faith of common people.

• Risk: Nature of fraud and risk is different because when a customer relies on
unseen set up, he trusts and makes transactions. In such a way he is ready to
face risk.

Chapter-3
1. Title
“Social media strategies implication on consumer buying behaviour
with reference to e-commerce industry”
2. Introduction
Social media is the online communications medium dedicated to community-
based input, interaction, and content-sharing. Websites and applications
dedicated to forums, social networking, social bookmarking etc. are among
the different types of social media. Facebook, Google plus, Twitter, LinkedIn,
Wikipedia, Pinterest etc. are some of the examples of social media. Social
media is becoming an integral part of life online as social websites and
applications proliferate. Most traditional online media include social
components, such as comment fields for users. In business, social media is
used to market products, promote brands, and connect to current customers
and foster new business. Social media marketing takes advantage of social
networking to help a company increase brand exposure and broaden customer
reach. The goal is to find out the impact of social media on consumer
behavior in urban areas. Consumers and businesses around the globe have
been more connected than ever before with the presence of Internet.

Social media needs to be a part of a company’s marketing budget because it

gives a powerful way to create a connection with the targeted audience. From
Instagram to LinkedIn, there are virtually limitless ways to interact and share
information as well as market the products. Social networks enable to connect
with new customers and stay in touch with the existence customers. Social
media enhances customer service by creating accessibility to customers who
have a tendency to seek immediate feedback. It responds in a timely manner
to their concerns and inquiries. Consumers rely on social sites to find out
about products and services. Optimized profiles and useful information will
create a positive first impression for online business.

Ecommerce is a shortened version of the phrase “electronic commerce” which

essentially describes any type of exchange of currency for goods or services
online. Ecommerce is an umbrella term that covers everything there is to do
with buying or selling online. Since the definition of ecommerce is so open-
ended (it literally includes any type of buying or selling of goods or services
online) there are so many different types of ecommerce businesses that exist.
Some of the E-commerce companies taken for the study in this project are

1. Amazon
2. Flipkart
3. Snapdeal

Amazon was founded by Jeff Bezos in Bellevue, Washington, in July 1994.

The company initially started as an online marketplace for books but later
expanded to sell electronics, software, video games, apparel, furniture, food,
toys, and jewelry. In 2015, Amazon surpassed Walmart as the most valuable
retailer in the United States by market capitalization. In 2017, Amazon
acquired Whole Foods Market for US$13.4 billion, which vastly increased
Amazon's presence as a brick-and-mortar retailer. In 2018, Bezos announced
that its two-day delivery service, Amazon Prime, had surpassed 100 million
subscribers worldwide.
Flipkart is an Indian e-commerce company based in Bengaluru, India. It was
founded by Sachin Bansal and Binny Bansal in 2007. The company initially
focused on book sales, before expanding into other product categories such as
consumer electronics, fashion, home essentials & groceries, and lifestyle
products.

Snapdeal was founded on 4 February 2010 as a daily deal’s platform, but

expanded in September 2011 to become an online marketplace. Snapdeal has
grown to become one of the largest online market place in India. In March
2015, Snapdeal brought actor Aamir Khan for the promotion of its website in
India.

3. Need for the study

The purpose of this study can

see the magnitude of the
influence of social media on e-
commerce
business in online business.
Through descriptive methods
and data collection through
interviews,
observations and previous studies
related to social media and e-
commerce business. The results
obtained
by using the method are the
identification of the role of
social media in e-commerce
business in
developing the online business,
and the factors that encourage
consumers to buy products
through online
business. This research is done
because the previous studies are
still lacking in discussing what
factors
make consumers choose online
business and the contribution of
social media in online business
The purpose of this study can
see the magnitude of the
influence of social media on e-
commerce
business in online business.
Through descriptive methods
and data collection through
interviews,
observations and previous studies
related to social media and e-
commerce business. The results
obtained
by using the method are the
identification of the role of
social media in e-commerce
business in
developing the online business,
and the factors that encourage
consumers to buy products
through online
business. This research is done
because the previous studies are
still lacking in discussing what
factors
make consumers choose online
business and the contribution of
social media in online business
The purpose of this study can
see the magnitude of the
influence of social media on e-
commerce
business in online business.
Through descriptive methods
and data collection through
interviews,
observations and previous studies
related to social media and e-
commerce business. The results
obtained
by using the method are the
identification of the role of
social media in e-commerce
business in
developing the online business,
and the factors that encourage
consumers to buy products
through online
business. This research is done
because the previous studies are
still lacking in discussing what
factors
make consumers choose online
business and the contribution of
social media in online business
The purpose of this study can
see the magnitude of the
influence of social media on e-
commerce
business in online business.
Through descriptive methods
and data collection through
interviews,
observations and previous studies
related to social media and e-
commerce business. The results
obtained
by using the method are the
identification of the role of
social media in e-commerce
business in
developing the online business,
and the factors that encourage
consumers to buy products
through online
business. This research is done
because the previous studies are
still lacking in discussing what
factors
make consumers choose online
business and the contribution of
social media in online business
The purpose of this study can see the magnitude of the influence of social media
on e-commerce business in online business. Through descriptive methods and
data collection through interviews, observations and previous studies related to
social media and e-commerce business. The results obtained by using the
method are the identification of the role of social media in e-commerce business
in developing the online business, and the factors that encourage consumers to
buy products through online business.

4. Literature review
Hoffman and Novak have indicated that interactivity is the key distinguishing
feature between marketing communication on the Internet and traditional mass
media. Today online consumers have more control and bargaining power than
consumers of physical stores because the Internet offers more interactivities
between consumers and product/service providers as well as greater availability
of information about products and services.

According to Hakansson and Snehota, social media marketing is the act of

gaining attention through social media sites. Social media has improved
communication for organizations, fostered brand awareness and has improved
customer service relationship of firms So therefore, social media is considered a
relatively inexpensive means for organizations to implement marketing to build
and improve their brand value.

Geissler and Zinkhan claimed that the Internet shifted the balance of power in
favor of consumers as it became very easy for them to make shopping
comparisons and evaluate alternatives without being pressured by salespeople.
Online stores reduce transaction costs and have advantage for both consumers
and vendors. One issue remains disputable is whether purchase intention can
effectively predict consumer buying behavior.

According to Weber, the social web will become the primary center of activity
in our lives. To put it differently people, use the social web as the world wide
web is sometimes called, instead of the old media for most of the services
supplied. On top of that, social web has brought a lot of new opportunities to
exchange knowledge worldwide. According to the Internet World Statistic in
June 2010, there were more than 1.96 billion people online. Given this, it can be
concluded that social web has great impact on the people. For instance, people
now interact and communicate as a society and use the web to extend existing
relationships. In recent times, firms have adopted this knowledge to target and
reach customers as well.
Sharma, assessed the online buying behaviour of consumers in India, and found
that consumers are feared of unsecured transactions in online payment and
majority of online buyers are from 18-25 years.

5. Objectives of study
1. To find out the factors influencing the customer to purchase products
online.
2. To identify the demographic profile of customers who purchase products
online.
3. To find out the difference between marketing on social media and
through mass media.
4. To study the visual merchandise of different e-commerce companies on
the social media.
6. Scope of Study

This study covers understanding various social media strategies of different e-

commerce companies to understand the impact of social media on the E-
commerce industry.

7. Methodology Adopted
DATA COLLECTION

Data is collected through primary sources. A well-structured questionnaire

prepared to collect data from respondents related Socio and Economic and
attributes induce social media users. Data will be collected from 100
respondents.

PRIMARY DATA

The primary data are those which are collected a fresh and for the first time and
thus happen to be original in character. The primary data are collected through
survey. This study has collected primary data through questionnaire from
various respondents such as students, professors, private sector employees and
IT employees.

SECONDARY DATA

Secondary data is the data that have been already collected and readily available
from the other sources such as, various publications of Central, State and Local
Governments, various publications of foreign governments or International
bodies, Technical and trade journals, Books, magazines, and newspaper, reports
prepared by research scholars, university economists and so on.

8. Limitations of the study

 The respondents may give biased response.
 Analysis was done based upon personal opinion of respondents
individually, not from any focus groups or experts.