SUMMER TRAINING PROJECT REPORT

ON

“NET MARKETING UNDER HEMA MARKETING AT

MEERUT”

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

THE MASTER’S DEGREE IN INTERNATIONAL BUSINESS

OF

H.N.B. GARHWAL UNIVERSITY, SRINAGAR

SUBMITTED TO:

INTERNAL GUIDE EXTERNAL GUIDE

ASHULEKHA SHARMA BHANU PRATAP
LECTURER HEAD I.B.
IMS HEMA MARKETING,
Dehradun MEERUT

SUBMITTED BY:
SUNNY CHAUDHARY
(MIB-0940)

INSTITUTE OF MANAGEMENT STUDIES-DEHRADUN

BATCH 2009-2011
 ACKNOWLEDGEMENT

This project is based on “NET MARKETING” has been prepared under the benign of Mrs

Ashulekha Sharma (lecturer). It is my pleasure to express my deep gratitude to Institute of

Management Studies who provided me with all his expertise to effectively accomplish the

objective of my Project Report.

Finally I would like to express my deep regards to Mr Bhanu Pratap (HEAD IB)and others

members of Hema Marketing, who have inculcated right potency in me to accomplish my

goals in most efficient and effective manner.

Help of all above has made this project a reality.

SUNNY CHAUDHARY

2
 PREFACE

This project on “Net Marketing” has been undertaken in order to develop a deep insight of the

need of dotcom companies to facilitate Export/Import needed for sales promotion by HEMA

MARKETING. in Indian Industry. The report intends to provide detailed information that could

not only help Indian exporter/importer to easily handle the overseas trade but also to established

themselves strongly in this field and make India as a hub of manufacture.

The project shows how the companies use to promote their sales and how they can better take use

of online promotion companies to have global reach and impact.

Lot of painstaking work has been undertaking to collect the information that could effectively used

for accomplishing the objective of the project.

I sincerely believe with all my honesty that this project will able to serve the purpose for which it

has been prepared.

3
 CERTIFICATE

I have the pleasure in certifying that Mr. SUNNY CHAUDHARY is a bonafide student of IInd

Semester of the Master’s Degree in International Business (Batch 2009-2011), of Institute of

Management Studies, Dehradun under H.N.B GHARWAL University I.D NO.0940.

He/She has completed his/her project work entitled HEMA MARKETING at MEERUT under

my guidance.

I certify that this is his/her original effort & has not been copied from any other source. This

project has also not been submitted in any other Institute / University for the purpose of award of

any Degree.

This project fulfils the requirement of the curriculum prescribed by this Institute for the said

course. I recommend this project work for evaluation & consideration for the award of Degree to

the student.

Signature : ……………………………………

Name of the Guide :

Designation :.

Date : ……………………………………

4
5
 Executive Summary

The key area of my project is that to analyses the whole procedure of Net Marketing i.e. how it

takes place and what all documents are required for the Net marketing of a particular product.

While doing project I got a practical knowledge of Net Market dealing.

The main aim of this project is to get familiar with all the government formalities to be followed

and the stage where a company has to pay taxes and duties and where it can get rebate etc. what

are the difficult modes of payments on Internet. There is Electronic Data Interchange also take

place.

This provided me an excellent opportunity to study and analyses the whole Net Marketing and

documentation on internet. Here I defined it as it is possible.

"Internet Marketing" is a term that is increasingly being seen not only in the educational and

industry press, but the popular press. It is now becoming a cocktail discussion topic. However, care

must be taken to differentiate Internet Marketing from the more established marketing practices.

Marketers are still learning about the technical capabilities of the medium and much remains to be

discovered in how to fully utilize such a new resource.

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 CONTENTS

CHAPTER PAGE NO.

1. OBJECTIVE OF THE STUDY 9

2. INTRODUCTION 11

3. COMPANY PROFILE 58

4. METHODOLOGY 68

5. FINDINGS 72

6. ANALYSIS OF FINDINGS 76

7. CONCLUSION & RECOMMENDATION 81

BIBLIOGRAPHY 85

ANNEXURES 87

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 LIST OF FIGURE

FIGURES PAGE NO.

1. Awareness of Internet Marketing 77

2. Uses of Internet Marketing 78

3. Frequency of uses of Internet Marketing 79

4. Satisfaction level regarding Internet Marketing 80

8
 CHAPTER-1

OBJECTIVE OF STUDY

9
 Objective of the study

Study includes the awareness of dotcom companies and their way to penetrate the market. As

compared with the traditional way of marketing through print media. The study also includes the

wide concept of brand. The concept of brand analysis also covers various concepts like

positioning, image, Identity, equity which is also helpful by providing knowledge to the researcher

and as well as respondents. The study covers the burst of dotcom companies in Indian industry.

1) To study tools used for Online Marketing.

2) To gain knowledge about brand promotion of Hema Marketing.

3) Penetration of Internet marketing in Hema Marketing.

4) Comparative analysis of Dotcom companies.

10
 CHAPTER-2

INTRODUCTION

11
 INTRODUCTION

Internet Marketing

"Internet Marketing" is a term that is increasingly being seen no only in the educational and

industry press, but the popular press. It is now becoming a cocktail discussion topic. However, care

must be taken to differentiate Internet Marketing from the more established marketing practices.

Marketers are still learning about the technical capabilities of the medium and much remains to be

discovered in how to fully utilize such a new resource.

Forty years ago when TV advertising was first being produced the material was basically copy

from print and/or radio being applied to a new medium. It took some time to fully recognize the

capabilities of TV as a new medium of communication. The same learning process is now

occurring in the area of using the Internet for marketing communications. And in this learning

process probably one of the bigger mistakes being made is to treat the Internet too much like TV

and other forms of mass communication. While there are millions in the audience, the Internet

communication process is not a shotgun, but a rifle approach. Each individual Internet contact is

just that: an individual contact with a very specific reason why the person linked to that particular

page. Internet marketing is therefore better thought of as "direct marketing" or "relationship

12
marketing." The strength of the relationship with the distributor, the retailer, and the consumer

determines market success. This shift from mass marketing to relationship marketing is at the heart

of what is being called "Integrated Marketing Communication.”

In today's marketplace, a basic level of product features with minimum quality is required for

market entry, but is not sufficient for any significant market penetration. More than "product"

alone is needed. Price variance between the high and low end of the market is being squeezed.

Increased emphasis is being placed on manufacturing and distribution efficiencies toward the point

of parity in this area also. Competitive pressures continue to

push all these product comparison aspects toward equality. Eventually, only in marketing

communication can you differentiate yourself from the competition. The current mass media will

continue to serve as a cornerstone of any marketing plan for building the market position

foundation. On this foundation bed of marketing communication will be built the customer

relations that will ensure success. Due to the size of the task of establishing personal contacts there

will be the increasing need for tools to aid in structuring these marketing relationships. This is the

role of the Internet in relationship marketing.

Marketing Applications on the Internet

An Internet presence is expected of a market leader support for a branded marketing program

requires some base level of advertising. Without this advertising presence customers do not

perceive you to be a valid brand entity. To some extent the same attitude is being directed toward

an Internet presence. Eventually, most companies will be on the Internet as prices continue to drop

and local web access companies expand their local marketing efforts.

13
Support of advertising campaigns

An integrated approach to marketing requires that the customer receives a consistent message from

all possible contacts with the company. The Internet allows one more such contact. The critical

difference is that on the Internet the customer is the one to initiate the contact and is therefore more

receptive to the company's message than would be normal for any random customer being exposed

to a mass broadcast message. Additional media support can be gained by making video and audio

clips available for downloading.

Customer Service

There is a general trend away from paper based communication to electronic communication. All

aspects of society are moving to quicker response times. Customers with a problem want a

response NOW and irritation grows the longer they must wait. However, they sometimes do not

clearly state their problem up-front. In the area of customer service, Internet E-mail combines the

best features of the telephone and regular written mail. The ability to quickly respond t

o customers electronically is not available currently without use of the telephone which requires

matching the availability of both parties for successful communication. In addition to customer

satisfaction from quick response there is the added benefit of being able to quickly iterate back and

forth to clarify issues or resolve the difficult problems. In this case customer service is able to

properly research the issues between contacts. Using the Internet E-mail method of communication

combines the immediacy of the telephone with the work load scheduling aspects of standard

letters. The standard response letters can also be expanded to include additional marketing material

that can be attached to the E-mail response. One last benefit worth mentioning is the ability to keep

on top of major public issues.

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Contact Lists

Getting in contact with the correct person is an extension of the above customer service. The desire

is to have the first contact capable of handling the caller's questions. However, it is unrealistic to

expect all employees to know everything about all aspects of the company's marketing programs.

By having a classified contact list, it is much more likely that the first contact will be fully capable

of addressing the customer issue. Many questions may even be handled directly by FAQ's.

Marketing Customer Relations

There is a school of thought that says that the difference between advertising and public relations

is how you pay to get the message to the customer. In normal advertising the expense is directly

related to the purchase of media time or space. In contrast, in public relations the media time and

space is free and the cost is related to the manpower and materials required to establish media

relationships and prepare a message that is attractive to the mass media. The Internet removes the

middleman in the communication process and provides the ability to tailor the message to the

specific audience segment and link directly to web areas of interest to that audience segment. This

is not

15
to say that we should give up on the idea of expanding marketing public relations in the mass

media. Both communication methods are complementary.

Order Processing

Some companies are already taking orders through their Internet web site. This is an ideal place to

explain the product and sales terms. In all cases the turn-a-round time is reduced from the paper

orders. And the accuracy of data input is higher than both the paper based order and telemarketing

since the buyer is enter and verifying the order. There is the ability to check on account detail and

order status by the customer. This ability would not be limited to normal working hours.

Locations Listings

Location directories could be made available on the Internet. With little additional work all

locations can be mapped with detail travel routes. This can be accomplished through the mapping

capabilities of companies such as MapQuest. If you have a large number of location you can

partner with them, adding your location data to their database. Or you can simply create

personalized maps for each site at no cost and link to the personalized map site as needed.

Theoretical Concept of E-Commerce

E-COMMERCE: THE INDIAN SCENARIO

The global market for e-business, according to the leading global market research firm IDC, will

16
reach $2.5 trillion by 2004. The market, IDC says, will be spurred by widespread purchasing on

the Internet and by the Net's potential to improve business performance.

India is currently in the throes of a dot com wave. India has twin assets; the software industry and

the rapidly restructuring industry sector. Over the past two years India has witnessed a barrage of

coverage on the Net. Both print and digital media have gone all out to generate awareness and talk

about the benefits of the Internet way of life.

GROWTH OF E-COMMERCE IN INDIA

As per the Nasscom study, e-commerce transactions accounted for revenues of Rs. 450 crore (1

crore =10 million) during fiscal 1999-2000. While Rs. 400 crore (80%) was generated by B2B

transactions, around Rs. 50 crore (20%) was contributed by B2C transactions.

Prediction for the years ahead is even more exciting. In 2001-02, e-commerce transactions will

amount to revenues of Rs. 7500 crore. Of this amount, approximately Rs. 6000 crore (80%) will

come from B2B activity, the remainder, Rs. 1500 crore (20%) will result from B2C e-commerce

transactions.

E-COMMERCE: WHAT IS NEEDED

Before e-commerce can flourish in India, some of the key initiatives that India will have to take

are:

a) Setting up a Robust Telecommunication Infrastructure.

17
A robust, reliable, scalable and flexible telecom infrastructure is a pre-requisite for increasing

Internet penetration and to provide cheap and reliable net access.

b) Bandwidth Status.

Currently, only 325 Mbps of international Internet bandwidth is available to India. The demand

however (with about one million Internet connections) has already touched 5 Gbps and is expected

to swell to 10 Gbps by end of 2001. The National Association of Software & Services Companies

(NASSCOM) has estimated that India’s international and national bandwidth requirements will

touch a minimum of 390 Gbps and possibly as much as 2 Tbps by 2007.

c) Strong Delivery System.

The country needs a strong e-delivery system and e-logistics infrastructure to cater for

the problems of delayed deliveries. Taking care of this problem will not be an easy task.

Even so, transport, courier, railway and aviation organizations are drawing up plans to support e-

commerce in India.

d) Establishing a Vibrant Domestic Market.

A domestic market will ensure content development and sites in India. The Internet will drive

growth in e-business. As this market grows, business-to-business (B2B) will constitute 80% of the

market and business-to-consumer (B2C) will comprise 20% of the mark

18
et and consist of transactions on Internet, shopping malls, advertising and subscriptions to portals

and information sites.

RECENT MEASURES TAKEN BY THE GOVERNMENT OF

INDIA

They have allowed private lSPs to set up their own landing stations anywhere in India in

collaboration with international satellite and undersea bandwidth carriers.

VSNL (the Government’s and India’s first ISP) has been asked to make necessary changes in the

exclusive arrangement with its partner (FLAG) so that the existing bandwidth available to India is

fully utilized.

Cyber Laws: A significant step in this direction has been taken by enacting the IT Act in 2000 to

enable proliferation of e-commerce through acceptance of digital signatures, setting up a

regulatory authority to overlook the digital authentication/ certification agencies etc.

The Government of India has given its go ahead for connection to the internet through cable TV.

This is going to provide a significant impetus to Internet proliferation in the country.

Allowed 100 percent Foreign Development Investment (FDI) in B2B e-commerce. The B2C sector

is fighting for the same.

"Zero tax" on e-commerce transactions for one year. (NASSCOM meanwhile is pushing the

Government for a three to five year suspension).

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1. Internet Access:

· While the capital cities account for 77% of Internet connections the rate of growth of Internet

connections is however substantial in all cities/ towns.

·There will be about 1.6 million Internet subscribers (or 5 million users) by March 2001.

This figure is expected to increase to 4 million Internet subscribers (10 million users) by March

2002 and 8 million Internet subscribers (18 million users) by March 2003.

· More than 81% of stand alone PCs sold during financial year 1999-2000 were driven by the need

to access the Internet.

· It is estimated that by December 2001 more than 80 private ISPs will be fully operational.

Further, at least 12 private international gateways for the Internet are expected to be set up.

(‘MantraOnline' launched its independent gateway in July 2000. As of August 2001 29 ISPs were

reported to be operational).

· More than 86% of the top 100 corporate respondents endorsed electronic commerce and the

Internet as an integral part of their corporate strategy framework for the next year.

· 91% of India's Corporate Web sites are located overseas and not in India.

· A majority of the respondents expect the real growth of the Internet in India to take place through

the cable TV rather than through PCs. India has 37 million cable connections but only 4.3 million

PCs.

· The Times of India (10 August2001) reporting the findings of the survey by Gartner Asia-Pacific

released in July 2001 has pointed to the huge success of cyber cafes and kiosks that provide low

cost public internet access that is especially popular with the core Internet user group i.e. students.

20
· The Internet and e-commerce industry employs approximately 82,000 people. These include web

developers, web designers, system analysts, ISP infrastructure providers, marketing staff, e-

software professionals etc. It is projected that by March 2003, the Internet and e-commerce

industry will employ over 500,000 people.

2. Population On-Line

With a total population of one billion, India's on-line population is only 3.7 million which is

0.37%, whereas about 36% of the total world population accesses the Internet.

3. Mobile Phone Usage

There are 2.3 million mobile phone users in India (March 2000). The use of WAP, cheaper access

and the decrease in cost of handsets is driving the growth of the mobile phone industry.

4. Growth of Domain Names

There are currently about 17.8 million domain names registered worldwide. According to a report

done in February by Network Solutions, India ranked amongst the Top 20 countries in terms of

domain name registrations.

5. Security of Internet Transactions

The survey revealed that Indian Web sites have not spent much money directly on esecurity.

In Indian companies, only 0.8% of web expenditure was accounted for by esecurity.

The international average is 5.4%.

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6. On-Line Internet Advertising

According to market analysts close to $12 billion has already been pumped into the print medium

on account of dot com ad. The advertising spending by dot coms was estimated to be about Rs.

140 crore (US$ 3.2 million) in print, TV and other options during 1999-2000.

Only 8% of this money was spent on advertising on the Web in Indian and overseas sites.

7. Penetration of On-Line Services

E-commerce in India will witness a significant jump over the next three years. In the case of B2B

transactions, the Indian industry will reach on-line penetration of 5% by 2003. India's active

Internet population would spend close to 3.2 percent of its total regular household spending

through Internet purchases by 2003.

Revenue streams would increasingly be aligned with the emerging global model. The majority of

the revenue would come from transactions while a smaller amount would be realized from

advertising. It is expected that by 2003, more than 75 percent of the revenue from B2C Businesses

will come from transactions. The advertisement revenue will amount to about 8% percent of total

ad spend by the companies.

Analysts also believe that one of every four NRIs would make some form of purchase from India

based Web sites by 2003.

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8. IT Companies

Some of the emerging hot areas of e-commerce services are: legacy application integration;

Internet application integration; CRM, SCM, ERP, EDI, migration to web based models; new IT

frameworks and integration with business strategy (strategic IT consulting); e-commerce training

services; business web site development and maintenance.

(The survey by Gartner Asia-Pacific released in July, 2001 has predicted that the Indian IT

industry will continue to grow 25% annually despite the US recession. It also states that US

companies are still interested in investing in India.)

9. The User Side

Among user organizations, more than 90 percent expressed a keen interest in the increasing

adoption of e-commerce and its potential benefits. More than 55 percent of corporate respondents

said that e-commerce transactions were integral to their corporate plans.

About 23 percent of top 500 companies in India already have started some form of ecommerce in

place.

The most commonly found business practice is to establish extranets or EDI (B2B) infrastructure

for an initial or learning period. This is subsequently upgraded to Internet based access

mechanisms.

More than 90 percent of the respondents cited perceived efficiency in Supply Chain Management

as a motive for B2B e-commerce and enhanced customer service (Customer Relationship

Management) for B2C transactions. The other cited benefits included moving towards Just-in-

Time management.

23
Some of the key industries that have high potential for early adoption of e-commerce are financial

(stock exchanges and banks), automobiles, retail, travel, IT and manufacturing.

B2B & B2C SCENARIO

The B2B business is fast flourishing in India. Global B2B solution providers such as Commerce

One, Ariba and i2 Technologies have already set up their operations in India.

Various Indian companies such as ‘Maruti Udyog’, ‘Hindustan Lever’, and ‘Bajaj’, among others

are becoming intensely active in the B2B arena. With the passage of the IT Act, the cyber laws

will provide a much required boost to B2B e-businesses. At the same time, banking in India is

becoming technology savvy with banks like ICICI, SBI and HDFC seriously implementing their e-

commerce strategies. These organizations are already taking initiatives in this regard and have

started net banking and payment gateways.

The B2C space is currently booming. In fact between 50 and 100 portals are launched every month

in India. Of these a significant number are B2C sites that include ‘rediff.com’, ‘indiatimes.com’,

‘jobstreet.com’, among others. Overall, the B2C segment is growing, though the revenue model is

emerging only in a few organizations.

(The survey by Gartner Asia-Pacific released in July 2001 has predicted that the amount of online

purchases will remain small because of security concerns, low credit card penetration and the habit

of physically evaluating goods before purchasing them).

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One of the earliest entrants into the B2C space was ‘rediff.com’, who has managed to list itself on

NASDAQ. Leading newspapers in India were also quick to jump on to the Internet bandwagon, in

fact most national dailies and magazines boast an aggressive web presence.

Regardless of whether it is the Times of India, the Hindustan Times, the Outlook or India Today

these companies are web enabled. The NRI community is also a significant booster of B2C activity

in India.

Indian search engines such as ‘Khoj.com’ and auction sites such ‘Baazee.com’ are also making

waves in the market. Sites such as ‘contest2win.com’ have found favor with the Indian cyber

community and cash registers are already ringing at the innovative portal. Very recently, ‘Yahoo!’

has set up its office in India and is providing India specific content on its site.

At the same time, Indian companies are positioning themselves as e-service companies.

They are providing these services to Corporates in India and overseas. In 1999-2000, ecommerce

software solutions worth US$500 million were exported. India has the potential to export e-

business solutions worth $5 billion by 2005 and around $10 billion by 2008.

25
 MAJOR PLAYERS OF ONLINE MARKETING

Alibaba.com

Alibaba Group is a global e-commerce leader and the largest e-commerce company in China.

Since it was founded in 1999, the Alibaba Group has grown to include six core member

companies:

Alibaba.com - Alibaba.com (1688.HK) is the Alibaba Group's flagship company and the leading

B2B e-commerce company in China, serving small and medium sized enterprises in China and

around the world

Taobao - A leading online shopping marketplace for consumers in China

Alipay - China's leading online payment service

Yahoo! China - A search engine and lifestyle portal, acquired from Yahoo! Inc. in October 2005

Alisoft - An Internet-based business management software company targeting S

MEs in China

Alimama - An online advertising exchange for web publishers and advertisers to trade online

advertising inventory in China

History & Milestones

26
1999 Alibaba Group officially established, led by Jack Ma and Alibaba's 18 founders working

out of a Hangzhou apartment

1999-2000 Alibaba raises US$25 million from Softbank, Goldman Sachs, Fidelity, and other

institutions

2003 May: Consumer e-commerce site Taobao is founded, again in Jack Ma's apartment

2004 Online payment system Alipay is launched

2005 October: Alibaba.com forms a strategic partnership with Yahoo! Inc. and takes over the

operation of Yahoo! China

2007 January: Business software services company Alisoft is launchedNovember 6: Alibaba.com

Limited lists on the Hong Kong Stock ExchangeNovember 20: Alibaba Group launches Alimama,

an online advertising exchange company

Alibaba.com (1688.HK) is the leading B2B e-commerce company in China. We provide an

efficient, trusted platform connecting small and medium-sized buyers and suppliers from China

and around the world. Our international marketplace (www.alibaba.com) focuses on global

importers and exporters and our China marketplace (www.alibaba.com.cn) focuses on suppliers

and buyers trading domestically in China. Together our marketplaces form a community of more

than 24 million members from over 200 countries and regions, as of June 30, 2007.

Founded in 1999, Alibaba.com is the flagship business of the Alibaba Group and one of the

world's premier e-commerce brands. Our operational head quarters is based in Hangzhou in eastern

China. We have field sales and marketing offices in more than 30 cities in China, Hong Kong,

Switzerland and the United States. The company had more than 4,400 full-time employees as of

June 30, 2007.

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Taobao operates an online shopping marketplace for consumers in China under the names

"Taobao" and "??" ("Taobao" in Chinese). With a registered user base of approximately 39.9

million as of June 30, 2007, Taobao facilitates transactions between individual consumers and a

wide range of sellers including individuals and retailers. Sellers may post new and used goods for

sale on the Taobao marketplace either through a fixed price or negotiated sale or by auction.

Consumers may search, shop and transact with sellers on the Taobao marketplace. Alibaba Group

founded Taobao, headquartered in Hangzhou, in 2003.

Alipay is an online payment services provider operating under the names "Alipay". Alipay's

service enables individuals and businesses to execute payments online in a safe and secure manner.

Alipay's users are primarily buyers and sellers engaging in e-commerce transactions. With a

registered user base of approximately 43.5 million as of June 30, 2007, Alipay is an accepted

online payment method for many online retail websites and other online goods and service

providers in China as well as the designated online payment service provider on our China

marketplace and on Taobao. Alipay partners with domestic PRC banks to provide an escrow

service for payments, which reduces the settlement risks faced by Alipay's customers in their e-

commerce transactions. Alibaba Group founded Alipay, headquartered in Hangzhou, in 2004.

Yahoo! China's website operates Chinese language portal services, such as email and the provision

of finance, sports, lifestyle and entertainment information, as well as a web search service that

crawls and indexes web pages generally available on the Internet targeted at individual Internet

users in China. Yahoo! China's paying customers primarily consist of advertisers that purchase

fixed price banner advertisements, text-links or auction-based pay-for-performance marketing

services on Yahoo! China's website. In October 2005, Alibaba Group acquired Yahoo! China in a

28
transaction whereby Yahoo! became a substantial shareholder of Alibaba Group. In connection

with this transaction, Yahoo! agreed to grant to Alibaba Group the exclusive rights to use in China

the "Yahoo!" name and certain technologies owned by Yahoo!, as well as the right to sub-license

these rights to other members of Alibaba Group. Yahoo! China is headquartered in Beijing.

Alisoft develops, markets and delivers Internet-based business management software targeting

SMEs in China. Alisoft's software provides its customers with various tools, including enterprise

management tools, such as email, customer inquiries and information management, and basic

financial management tools, such as invoicing and bookkeeping. Alisoft owns the copyright and

other proprietary software rights of the "????" ("Aliwangwang" in Chinese) instant messaging

communication tool, which is the designated instant messaging communication tool for Taobao

and which we offer to our users as TradeManager on our international marketplace and as ???

(TradeManager in Chinese) on our China marketplace. Alibaba Group founded Alisoft, with

operations in Hangzhou and Shanghai, in January 2007.

Alimama is China's leading online advertising exchange, which allows web publishers and

advertisers to trade online advertising inventory. A wholly owned subsidiary of Alibaba Group,

Alimama is designed to serve the more than one million small- and medium- sized websites in

China which generate an estimated 80% of China's website traffic. Alimama helps connects these

web publishers to advertisers, allowing them to monetize their website traffic while offering

advertisers an affordable way to reach highly targeted audience groups.

eBay.com

29
Founded in 1995, eBay Inc. connects hundreds of millions of people around the world every day,

empowering them to explore new opportunities and innovate together. eBay

Inc. does this by providing the Internet platforms of choice for global commerce, payments and

communications. Since its inception, eBay Inc. has expanded to include some of the strongest

brands in the world, including eBay, PayPal, Skype, Shopping.com, and others. eBay Inc. is

headquartered in San Jose, California.

Company Narrative

Despite differences in language, culture and economic status, people around the world are united

in their fundamental need to connect, discover and interact.

People seek fulfillment of these fundamental needs in their day-to-day activities. As we explore,

learn, shop, share and talk with each other, we are also aspiring toward a more emotionally

satisfying experience as human beings.

eBay's original vision was to create the world's first global economic democracy. We saw a

"people's market" in which anyone in the world could sell or buy just about anything for a fair

price. And today on the eBay marketplace, trust, honesty and efficiency are rewarded more than

size or status.

But over the past 10 years, the Internet has expanded, and so has humankind's relationship with it.

More and more of our day-to-day activities are conducted online. The Internet continually

enhances our ability to connect with the world around us.

And eBay Inc. now plays an even larger role in our lives, as well. It's no longer just about fairness.

It's about fostering that human connection through "Social Commerce," which we define as "a

powerful combination of commerce, communication and community that enhances traditional

buying and selling."

30
eBay Inc. will make Social Commerce a global reality. We will continue to expand economic

opportunity by fostering an emotionally satisfying experience for people around the world to

explore, learn, shop, share and talk with each other. We will do this by managing and growing

some of the strongest brands in the world, including eBay, PayPal, Skype, Shopping.com, and

others.

We will continue to innovate and integrate the technologies and policies that make these day-to-

day activities even more trusted, fair and efficient than they are today.

Hundreds of millions of people who use eBay today are already experiencing this new way to

connect. eBay Inc. will make it so easy and rewarding to engage in Social Commerce that we

believe hundreds of millions of more will participate. And this next generation will bring with

them new products, ideas and opportunities for everyone.

Ultimately, eBay Inc. will raise the expectations—and aspirations—of people around the world as

they seek to connect, discover and interact with each other.

Indiamart.com

IIL started its operations in 1996 and has stood its ground even in the toughest times. We had a

profitable business even when other companies in this domain found it hard to sustain. Today, we

operate from a 18,000 sq. ft. office in Noida (near Delhi), and have 24 branch offices spread all

over the country. Our team includes over 850 professionals from diverse backgrounds, bound

together to serve over 12,000 customers.

IIL's first B2B marketplace - IndiaMART.com, marked the beginning of online presence of Indian

businesses for a global exposure. We today serve our customers through a network of over 100

31
industry / product marketplaces, making us the largest network of integrated B2B marketplaces

from India.

We have always seen Internet as a business facilitator rather than a technology phenomenon. Our

usage of internet technology has therefore been directed towards business promotion of our

customers. Today, we cater to over 10,000 customers and make internet technology work for their

business.

We endeavor to maximize value for our customers by offering them efficient and cost-effective

solutions for business promotion, process support and transaction accomplishment.

Our customers have always found an integrated business promotion solution more valuable than a

simple web presence. Driven by this preference of our customers, we have built ourselves on the

key pillars of smart people & smart solutions for business promotion. We have developed an

integrated solution delivery framework which incorporates B2B marketplaces, internet technology

and industry knowledge.

The diversities of businesses make it imperative for us to custom-deliver our solutions. This

presents a great challenge of accumulating & using industry knowledge to deliver high quality

solutions. IIL has developed and established standards for solution delivery and is India's first

organization of its kind to receive an ISO certification.

32
 Tools Used for Online Marketing

B2B Product Catalogs

Manufacturers, exporters, suppliers and service providers from the SME segment need domestic &

international exposure to enhance their sales. A static b2b product catalog is an ideal first step for

them for global presence. Our b2b product catalogs are fully managed, including designing,

content editing, hosting, strategic web promotion and its annual maintenance.

It is a cost effective tool that reduces time and costs involved in reaching out to a prospective

buyer. An online b2b product catalog is not just a showcase of the company and its products, but

also a great marketing tool to enhance revenue generation as it caters to the scattered domestic

market as well as the international market.

Our main objective is to bring tangible and intangible benefits to our customers through

professionally developed and well-marketed b2b product catalogs.

Mini Dynamic Catalog

Mini dynamic catalog is a value-for-money solution from India MART that allows its customers to

publish their online business homepage, with total command over the product details, company

information, navigation and almost everything related to it. It allows them to:

Add / Edit / Delete text and images related to company profile, infrastructure, quality, clients,

certifications

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Add / Edit / Delete a product, its images and details and categorize as per wish

Add / Edit / Delete blow-ups for products

Attach product related document for enhanced / sophisticated details

Customize enquiry form

Advantages Over Traditional Webpage

Multi-page Catalog - Unlike conventional webpage, it offers 4 pages in one catalog. Homepage,

Profile Page, Product Page an Enquiry/Contact Page - all of them having the facility for

information add, edit & delete. Customers, therefore, have more space to convey every important

detail required to market their product and company globally.

Short Development Period - Under test situations, our researchers have found that the time

required for webpage development can be shorten

ed by over 70%. If it took 10 days to develop a webpage, it takes just 3 days to develop a mini

dynamic catalog. Save time spent on corrections and approvals.

Customized Industry-wise Layouts - Enjoy the convenience of industry-specific layouts that are

well-researched and follow international guidelines that affect the marketability of online catalog.

Update as Per Convenience - No more "Monday - Friday, 9 - 5" service... Change to 'anytime

anywhere' lifestyle... With the catalog under control, one can update it whenever and from

wherever they want.

Multi-pronged Product Marketing - The Mini Dynamic Catalog allows display of products on

multiple marketplaces of India MART network to offer advantages of multi-pronged product

marketing, free of cost.

34
E-commerce Solution

An online buying process, B2B or retail, would never be complete without e-commerce

deployment. Though the most common form of online shopping is reflected in retailing of goods

and services, our e-commerce solution is suitable for the B2B segment (for negotiated prices, bulk

deals, sample exchange) also.

For an e-commerce setup, businesses usually approach different service providers to consolidate

all components required. We make it easier for our customers by offering fully-managed,

consolidated e-commerce solutions.

Any e-commerce deployment requires three basic things; an online catalogue, a shopping cart and

a payment gateway. We offer all three under one roof. We have our own payment gateway

"ABCpayments.com" to provide single point solution to our customers.

Dynamic Product Catalogs

Working with customers from different industries helped us develop a multi-feature dynamic

product catalog that makes online product management extremely easy.

Some companies change their product catalogs frequently as their product designs change fast or

they have new products to offer. The cost of updating & sending the updated static/printed catalogs

in such cases is very high. A dynamic product catalog, is a cost-effective innovative solution that

allows a

company to develop/update its online product catalog with full control over its product navigation

and product information.

Our dynamic product catalog offers following features :

35
Display management system that allows personalized design and presentation of the catalog. This

involves development of a homepage, profile page, enquiry form, static information pages and

product presentation layout, based on which the product catalog is displayed.

Product management system that allows clients to update and display products and details. It

allows adding or editing product and product details, and upload the changes.

Enquiry basket that allows visitors to select multiple products & add to the virtual cart to send a

consolidated order / enquiry and request a quote for the same.

It is a system that replicates the physical catalog and at the same time offers the flexibility of

updating it as per the customer's convenience of time and location.

Multimedia CD Presentation

Interactive presentation about an organization or its products is amongst the best ways to garner

attention of prospective buyers and customers. With increasing competition, suppliers recognize

the value of positioning themselves ahead of their competitors. Multimedia CD presentations are

an ideal way to achieve the same. Our team’s expertise in delivering business enhancement

solutions gives us an edge while we develop multimedia CD presentations for our customers. We

assist our customers through planning, designing and content management to create a

nd impressive and engaging presentation. Our customers would commonly use these CD

presentations for trade shows and exhibitions, buyer presentations, product catalog or as give away

reference material.

Multimedia CD presentations are not just convenient means of presentations, they are handy, have

a longer shelf life and can easily relate to the company's brand image. We undertake these projects

on turnkey basis, including cover design, printing, CD writing and packaging.

36
Customized Solutions

Some of our customers have specific requirements that cannot be served with our standard

solutions. Their requirements are highly specific to their business and are unique in nature. Such

requirements need special inputs and custom solution development. For such instances we

customize our solutions or even create new ones, if need be.

We have been able to use our expertise in business enhancement combined with expertise in areas

like IT, content editing, designing and online marketing to successfully implement customized

solutions for our customers.

Mailing and communication

We offer "fully managed" mailing solutions that encompass management of mailing system, online

virus blocking & spam protection and streamlining of business communication process.

Enterprise Mailing Solution

It is an established fact that almost 80% of the virus attacks are through e-mails and over 60% of

the mails are spam. Imagine what havoc a virus attack can cause to an enterprise where each

individual is handling crucial data. Add to it the work hinderance due to heavy spam and server

downtime. With our experience and technical skills, we have developed an enterprise mailing

37
solution that skillfully tackles these issues. This system can work with your existing mailing

system as well, with advanced features.

Apart from ensuring 99% uptime for the mail servers, we also power our managed enterprise

mailing solution with online virus scanner & spam controller that enables users to work more

efficiently. We offer managed mail servers for companies with large setup and heavy mail traffic,

that are secure, maintain privacy & confidentiality and are able to handle as many users as an

enterprise may have.

Our managed mail server solution also allows all internal users to communicate over LAN with

other cost-effective features like Auto Dialing, Address Mappings, Auto Reply, Forwarding,

Mailing lists etc. Our solution also lets our customers retain control over certain functions, e.g.

creating a new user or maintaining mailing lists etc., giving sufficient independence to them.

POP A/c's with Webmail

POP accounts with webmail are a perfect solution for people constantly on move. Our pop a/c's

with webmail service allows the users to check mail from anywhere, using e-mail programs such

as Eudora or Outlook. All you need is a computer and access to the internet.

Apart from the standard features, our pop accounts are powered with online virus and spam

protection software that enables the user to work more efficiently. Some of the other features of

pop accounts

are:

Multi featured webmail interface, accessible worldwide.

Regular technical support

99.9% uptime.

38
Lead Management System

Since our inception, we have been offering business enhancement solutions for generating high

quality business enquiries. To ensure that suppliers have higher conversion rates, we have

developed an effective lead management system (LMS).

The LMS automatically organizes all incoming mails and maintains a threaded history of the entire

communication. The users have the facility to set the schedule for follow-up. They can compose

mails with pre-defined content and use it for regular responses. The users can also feed offline

leads received from any other source like phone etc. and maintain a complete history of

communication.

LMS also generates useful MIS reports that assist individual users to measure the effectiveness of

their responses and gives the administrator a complete overview of what is happening at the lead

management front in the organization.

B2B market place:

We have the privilege of launching India's largest B2B marketplace - IndiaMART.com and more

than 50 other industry specific marketplaces. These attract focussed business visitors and generate

business enquiries for their members.

Banner Advertising

A banner is the most conventional and popular mode of reaching out to the target audience on the

Internet. It works both as a brand building and traffic generation tool for the advertiser.

With our 50-plus industry oriented B2B marketplaces, which garner highly targeted

39
viewership from global buyers and Indian sellers, we are best positioned to serve the business

generation & brand building needs of large and small businesses.

Our industry experts work with the advertisers to identify strategic locations for banner placement

and ensure highest click-throughs. We firmly believe that a meticulously planned advertising

campaign is the only way to deliver better value for our advertiser's money.We have well defined

positions on almost every page of our network, usually in the first screen itself. We serve animated

and real media banners in the standard sizes of 468 x 60 pixels and 120 x 90 pixels and are

equipped to handle custom sizes for specific campaigns.

Premium Listings

The premium listings are an important element that draw high quality traffic to a supplier's website

/ product catalog, thereby generating effective business enquiries for the supplier. It is one of the

best ways to reach out to potential global buyers and get them to view products and services

offered by

the supplier. Packed full of features, it offers top positions to a company's listing in business

directory, catalogs and trade leads. Studies have proven that top ranked listings get a higher click

rate than the rest. According to our internal assessment, these top ranked listings receive 3-5 times

as many clicks as the normal business listings, thus creating an opportunity to garner better quality

and quantity of business enquiries.

We offer two versions of premium listings - Featured and Normal. The first three listings in a

category are reserved for Featured Premium Listings and the next three for Normal Premium

Listings. Every listing contains the company name, brief profile, contact information, direct link to

catalog and a link to online enquiry form.

40
Portal Sponsorships

Portal sponsorship is a specially designed online promotion program that assists buyers in reaping

maximum benefits from a product / industry focused marketplace with least time & cost.

As global buyers prefer to visit focused and comprehensive portals for their product sourcing

needs, hence these portals garner a niche target audience, most relevant for a supplier. By offering

the complete advertising rights of the portal to the sponsor, we make sure that no buyer misses out

the sponsor.

Along with the sponsorship, we also develop a customized product catalog section for the sponsor

within the portal, which can be referenced by the buyers for sending enquiries. This leads to high

quality enquiries being generated for the sponsor.

Online Tenders

Thousands of tenders are floated in India by different organizations and through different media.

To keep a track of them is a monumental task for any individual. To facilitate access to all tenders

floated by the government and private organizations all over India, we started online tenders

service.

We collect tenders from multiple sources and categorize them to feed it in our classified database.

We provide access to over 20,000 current government, corporate tenders and procurement notices

from India.

The subscribers can view a tender on http://tenders.indiamart.com using a username and password

or can get the notifications e-mailed to their mailbox.

41
Trust Seal

Success in business is all about making right & informed decisions. Availability of relevant,

verified information is therefore a key requirement. With greater uncertainties associated with

international trade, the importance of this information is further enhanced. In order to offer end-to-

end solutions to global buyers and sellers, buyers need relevant, unbiased information about the

business status of the sellers. And here steps in Trust Seal.

Trust Seal is an indication of trustworthiness of a business based upon its verified record of

certified documents pertaining to proof of existence, legal status, statutory approvals, affiliations

and quality certification. It aims at serving the dual purpose of:

Offering international buyers the desired business information about the suppliers so that they can

make a more informed decision.

Assisting the sellers market themselves better to the global buyers.

Trust Seal is not an evaluation service but is a symbol of authenticity to the information provided

by the supplier. It denotes that information provided by the client has been authenticated and

verified by a third party with document proof. This information is available to the buyer on

request.

A Trust Seal can be offered only to those companies, which qualify the minimum defined

parameters of business evaluation.

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 ONLINE PAYMENT GATEWAY:

We offer end to end online payment solutions that are as feasible for B2B transactions as for retail.

We offer online payment solutions to our customers through ABCpayments.com. It is a fully

managed online payment solution that facilitates member companies transact with their customers.

It has been developed to serve the needs of B2B as well as retail transactions.

Member users can select from multiple payment acceptance options to suit their requirement. They

can integrate it with their shopping cart or can use options such as online invoicing, quick pay etc.

to receive payments from their buyers.

ABCpayments.com has a solution for almost every online payment requirement, including:

• Small value payment for samples or an advance

• Payments for custom made products

• Negotiated price payment

ABCpayments.com is one of the most secured platforms in the world which accepts payments

through major credit cards (MasterCard, Visa, Diners) and e-banking from almost all the major

Indian banks.

We adopt stringent security measures to ensure that critically sensitive information, such as your

customer’s personal information and their credit card/ debit cards/ net banking details are

protected.

Some of the main features of ABCpayments.com are:

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  Fraud detection tool

 No merchant account required

 Prompt payments, short payment cycles

 Compatible with third-party shopping carts

 Multiple transaction services

 Highly secure – 128 bit SSL encryption

integrated from raw material to finished product, including fiber production, spinning, knitting and

weaving, and apparel manufacture. Government of India through export promotion councils is

promoting the industry globally by holding fairs and exhibitions. Despite that, our study of the

industry brought forth another fact. Not all the companies can afford to be a part of such

promotional shows; not all the buyer organizations have a reach to them either. Further there are

industries as garment accessories

and technology, which some time back did not figure anywhere.

IIL tried to facilitate this buyer seller interaction through its marketplace. Apparel.indiamart.com

offered the world an insight into Indian apparel industry, trends and scope. It also presents the

latest government policies regarding export-import. The media we offered to them was consistent

and reliable. We offered our clients very cost-effective solutions to present their product and

interact with each other on a global scale. Through the websites/ catalogs the manufacturers could

present their latest and the best products and the buyers and the suppliers both could get the best

deal out of it.

Trade Processes

44
Ordering Mechanism:

For B2B sites, the most common ordering mechanism is through auctions/ reverse auctions with

direct negotiations between the buyers and sellers.

For B2C sites, Shopping Cart/Bag are very popular and are the de-facto standard for retailing.

Product specific company portals use order forms such as in the case of Amul dairy products and

Apeda for both B2B and B2C.

Some portals are experimenting with several innovative strategies such as offering of several

optional variants of auction mechanism (globethreads); concepts of ‘Group buying/ bargaining’

(Khuljasimsim) and ‘Comparison shopping’ (jaldi.com)

accepted terms Online Hotel Booking Software (OHRS). It was one of the first services of the kind

offering online hotel booking and confirmation, which our clients could integrate to their websites.

Today we have a travel section exclusively handling the travel clients including tour and travel

operators and agents and hotels promote themselves globally and attract maximum foreign tourists.

INDUSTRIES SERVED BY DOTCOM COMPANIES

Through our understanding and valuable insight in forces that drive various industries, we are

better equipped to offer effective solutions to our customers.

Apparel & Garments

45
Textile and apparel is a privileged exports sector in India contributing 30 % of total exports. And it

has valid reasons. A long history of fine textiles, easy availability of the finest raw material, natural

or manmade, classic weaving, manual or mechanized, labor availability and flexible production

capacity; India's textile industry is vertically

integrated from raw material to finished product, including fiber production, spinning, knitting and

weaving, and apparel manufacture. Government of India through export promotion councils is

promoting the industry globally by holding fairs and exhibitions. Despite that, our study of the

industry brought forth another fact. Not all the companies can afford to be a part of such

promotional shows; not all the buyer organizations have a reach to them either. Further there are

industries as garment accessories and technology, which some time back did not figure anywhere.

IIL tried to facilitate this buyer seller interaction through its marketplace. Apparel.indiamart.com

offered the world an insight into Indian apparel industry, trends and scope. It also presents the

latest government policies regarding export-import. The media we offered to them was consistent

and reliable. We offered our clients very cost-effective solutions to present their product and

interact with each other on a global scale. Through the websites/ catalogs the manufacturers could

present their latest and the best products and the buyers and the suppliers both could get the best

deal out of it.

Automobile Spare Parts

Automotive spare parts and components is a lesser known industry yet a big one. In past few years

the industry has grown enormously, even more than the automotive industry itself not only in the

Indian but global scenario.

46
This vast industry includes automotive components, accessories, gadgets, spare parts and tools; the

consumers being the OEM segment and the replacement and aftermarket sector. Automotive spare

parts replacement and aftermarket have in themselves become a major industry.

In mid 1990’s the quality of Indian products increased a lot and the prices were considerably

lowered. This posed an interesting situation where the Indian replacement and aftermarket industry

had geared up to meet the international standards and awaited an ideal opportunity for global

exposure.

IIL started projecting its clients of this domain through its marketplace. It took time for the buyers

to judge the Indian potential in terms of quality but we could project our clients as prospective

business options. Industry vertical http://auto.indiamart.com gave a common platform to the

component manufacturers and the buyers alike.

Certain SME’s through their focused operations are now serving the global automotive giants

directly or through suppliers. Online catalogs and websites have added to the online presence of

our clients.

The results are quite apparent, Indian automotive parts industry makes original components of

major automotive giants like General Motors and Mercedes amongst others. They have, through

consolidated efforts been positioned as global players of the sector.

Ayurvedic / Herbal Products

It’s springtime for Ayurveda and Herbal remedies sector. These have been an integral part of

Indian culture but had been overshadowed by the chemical products for quite some time.

Rediscovering the long-forgotten herbal formulas and beauty secrets, this area has got a new

47
glamour and zing in past few years. Estimated at Rs 1800 crore, the industry is growing at 25 per

cent annually.

The bigger players in the sector controlled the domestic and international market. The ground level

companies though doing the maximum production were not reachable. This was a typical situation

where the buyers were not exactly looking for a brand but a supplier or raw product manufacturer

for cosmetics, pharmaceuticals or lab testing and research.

IIL had to provide a solution that gave these companies an identity and was cost effective. At the

same time we had to provide the right source to buyers. Clubbing the two basic requirements

through our business enhancement services and marketplace services we helped them interact on a

common platform. We also tried to rediscover the traditional and medicinal aspects of herbs for the

future generations through ayurveda-herbal-remedy.com. This portal is an attempt to revive the

traditional system of medicine and healthcare and at the same time project the manufacturers and

exporters in the global market with their full inventory.

Business Services

Indian Services Sector has been recognized as a specialized industry on a global level for quiet

some time now. Indian BPOs and the IT services sector are the key players in this segment.

But these are not the only ones. Indian business services is a vast and a very fast growing segment

that includes services like education, architecture and designing, transport and shipping research

and development, and a lot many of the kinds.

IIL in an effort to consolidate them on a common platform formed the services business directory

that actually affected them at the base level. Even the smaller or not so privileged services

industries have been able to carve a niche for themselves through this effort of ours.

48
Through the IIL marketplaces and web solutions they have been able to make a mark not just in

the domestic but in the global market scenario. A classic example has been the shipping services

that through their web presence have been able to attract global shipping contracts.

Chemical Indian chemical industry is one of the fastest growing and most promising Indian

industries. Certain studies estimate the potential of Indian chemical industry to be USD 100 billion

by the year 2010. The scenario was not the same always. In early 1990’s India was a net importer

of chemicals. Change in government policies has led to a steady growth of the sector.

The fact for the day is that this highly potential industry is largely in the small-scale sector, is

highly fragmented and diverse. Chemicals are sold directly to large customers or through

distribution channels consisting of stockiest and dealers addressing small segments and retail

market.

Another fact is that just as in early 90’s (and even now), all these resources need to be converged

to achieve the mentioned targets. IIL has put a step forward in the direction. We gave all big and

small enterprises a common platform to interact with each other and their global counterparts. It

was a platform that showcased them with all their potential.

Indianchemicalportal.com was created as a dedicated chemical industry vertical providing industry

overview and all relevant industry and business information.

Our multidimensional approach got better deals to the sellers as much to the buyers. With their

individual presence in a global medium and in the most cost effective way they make the role

models for growth and progress.

Construction industry boom can be seen in almost all the developing countries. The demand for

supplies is high; supply of raw material, builder hardware, paints, manpower and everything else

regarding construction. And India is rich in all the resources.

49
IIL identified that the demand was high in the global market, the supplies were ample in India. The

only thing left out was the right harness and projection of the resources and the right suppliers.

Our clients include not just the construction companies but other related industries as well like

builder hardware cement, paints. Brand building was just one part of our task. Due to our dedicated

marketplaces and client specific solutions, we have been able to project our clients on the larger

markets leading to better business response and creating a branded niche.

Electrical & Electronics

Past few years have been a little tough for the electrical and electronics industry; political

uncertainties, natural calamities and global slowdown. Yet India has been able to record a growth

of 6% percent on an average. Electricity Act 2003 and other economic reforms in place, the

industry has a great potential.

Globalization and fierce competition in the national market forced Indian manufacturers to explore

business opportunities in the International market. The point here arose, where to begin. The

advertising costs in the foreign media are enormous. Events and fairs were valid ways but with

their own limitations. Another major factor was that the products and services involved in this

sector were too wide.

With that information about the products and markets at hand,

IIL started projecting each organization with its USPs in the global scene using its marketplaces

and other business solutions. This ensured constant market presence, well managed and displayed

data and proper interaction tools at hand for the seller and the prospective buyer.

Handicrafts Indian handicrafts sector is scattered all over the country, mostly in the form of small

scale or cottage industry. Carpets, jute work, woodcraft bead crafts or carving and other stone and

50
metal crafts, leather crafts, embroidery, the list is never ending. The variety of material, the variety

of crafts and the art involved in each is varied and vivid.

Since it was a largely disintegrated and fragmented sector, with hardly any organizational set up

they were hard to reach even with a high demand of handcrafted products in the foreign markets.

Keeping in mind the diverse and scattered nature of the industry, we tried to compile most of the

information about the maximum number of crafts, materials and styles in handicraft.

Indiamart.com. This gave us as well as the buyers an insight into the industry, it’s requirements

and an idea about its market. We took up the task of giving them an organized promotion through

our handicraft marketplace. Taking view of the limitations faced by the scattered small

manufacturing setups, cost effective solutions were proposed that could be easily accepted by the

craftsmen. They could now get better deals right from where the requirement was. We hope to

continue our efforts in this direction.

Home Furnishings

Latest reports suggest almost 30% growth in exports of the textile products. It happens to be the

largest economic activity after agriculture. The maximum production of textile furnishing fabrics is

still in the SME sector.

51
India has easy access to the finest raw material, has the capability of manual or mechanized

weaving; labor availability and flexible production capacity are other typical Indian advantages.

The rich textile craft of India is as diverse as the country itself. To reach out to the individual

setups and present them to the world with all their uniqueness was a massive task.

IIL through its countrywide network and global presence has been able to it quite effectively. We

had the most economical offers for the SME segment of the industry. We used our services for

different economic groups and for fulfilling target requirements. The benefit was not just to the

manufacturer exporter but to the buyer as well.

Industrial & Engineering Products

Industrial products and engineering sector has emerged rather gradually in the Indian scenario.

Growth has been 6% to 25% in past few years in different sub sectors. And so has been the growth

in exports.

It is a wide sector that caters to multiple industries. In India, it is highly scattered and fragmented.

These products have a large domestic market and the demand in developing countries, especially

the ones with manufacturing based economy, is high. Indian engineering products have an added

advantage of being cost effective.

Looking at this perspective, we realized that an online presence of such companies is a must.

Through our marketplaces, company catalogs and websites, we started promoting our clients on

the Internet. It was a small step that we took to gain global exposure for our industrial and

engineering products clients and wish to further consolidate it through our continuous R&D and

marketplace development.

52
Leather Indian Leather Industry comes in the top 10 export sectors of India. Valued at about 2

billion US dollars. It contributes 10% of the world raw material and 2% of the world trade.

The other side of these glowing facts is that nearly 60-65% of the production is in the

Small/Cottage Sector. While leather shoes and uppers are concentrated in large scale units, the

sandals and chappals are produced in the household and cottage sector. The markets are located

mainly in Germany, the U.S.A., the U.K and Italy. The best is available within India that needs to

be duly projected and the markets are beyond these as well.

The major drawback IIL came across pertaining to this particular segment was lack of international

exposure, ignorance of the SSI units and lack of competitiveness. Government was doing its part

by offering the right policies and tools like exhibitions and fairs. We had the right tools for

international exposure at very convenient costs, our globally promoted online marketplaces and

effective business enhancement solution. We had a solution to offer to every participant of the

industry. Through these we opened the world of Indian leather to the world.

Indianleatherportal.com was a complete industry portal having the relevant directories, catalogs

and products and leads. It also indexes leather industry and leather craft related products.

Medical & Pharmaceutical

The Indian Pharmaceutical Industry is one of the largest in the developing world. It produces a

wide range of bulk drugs and is leader in the manufacture of some of the basic drugs. It is fast

emerging as the largest and the cheapest manufacturer of pharmaceuticals.

53
The ground fact is that Indian Pharmaceutical sector is highly fragmented with more than 20,000

registered units. The leading 250 pharmaceutical companies control 70% of the market and the

market leader holding nearly 7% of the market share.

What Indian companies need to attain the right product-mix, developing the core competencies and

the right exposure to invite JVs and funds for research and development for sustained future

growth. IIL has used its expertise in global exposure through Internet, marketplace and through

other business enhancement tools. Our information rich portal on health care and pharmaceuticals

health.indiamart.com provides comprehensive information on pharmaceuticals manufacturers,

pharmaceutical equipment manufacturer’s catalogs and directories.

Plastic the plastic processing sector comprises of over 30,000 units involved in producing a variety

of items. The plastic industry here includes finished plastic products to raw materials and

processing equipment.

Demand for plastics was ever growing. Mid 1990s came with a need to organize the Indian plastics

sector as much as to consolidate the global markets. The Indian plastics industry faced intense

competition from companies that were globally consolidated. Indian plastic industry needed

technological advancements to compete the existing players in terms of product quality, cost and

quantity.

Joint ventures, foreign investments and easier access to technology from developed countries have

opened up new vistas to further facilitate the growth of this industry. Phenomenal developments in

the plastic machinery sector coupled with matching developments in the petrochemical sector,

have facilitated the plastic processors to build capacities to service both the domestic market and

the markets in the overseas.

54
We took this as an opportunity to present Indian Plastic Industry as an organized sector. We

created an industry vertical, Indianplasticportal.com, representing the industry. Individual

industries gradually came forward displaying their inventory to the world and giving their global

counterparts a tough competition. The small scale sector also got a platform to present themselves

through our customized solutions for them.

Sports Goods

The global market share of India in this segment is barely 1% but 60% of the sports goods

manufactured in India are exported. The reason for such less market share is that Indian sporting

goods industry is concentrated mainly in the cottage and small-scale sector.

Indian sports goods industry has high potential in terms of quality, quantity and focus. The only

thing that is missing is international orientation. The fact is that Indian manufacturers have never

compromised on quality and that is the reason that most of the produce is exported. Point to be

noticed is the maximum exported product is to the OEM suppliers.

Now with increased focus on modern, value added and technology-based items, this high-potential

industry promises to forge ahead in the international sports goods market. IIL is not far behind

promoting the industry.

We have an industry vertical sporting-goods-industry.com/ focusing on sports goods from India

and presenting manufacturers, exporters and importers of different sports products. Our prestigious

clients have been exporting to brands like Adidas, Asics, Dunlop, Decathlon, Fila, Gap,

Kookabura, Maxfli, Mitre, Nike, Puma, Rawlings, Reebok, Spalding.

StonesIndia has very extensive and rich deposits of a wide variety of natural stone like Granite

Marble, Sandstone, Slate and Quartzite. These are used for various applications in domestic and

55
industrial segments. Today natural stone products provide modern components for interior and

exterior decorations.

India happens to be the largest producer of natural stones in world accounting for abou1 27% of

the word's stone production and ranking 3rd in terms of tonnage, after Italy and China. Stone

industry here is well equipped with modern technology with wide spread use of latest mining and

processing machinery. Even with such encouraging figures,

India still has a long way to go in justifying its potential. Stone industry in India is mainly in small

scale sector, spread allover the country and least organized.

The demand for natural stone is high in the international market. The need here was to project

them as an organized sector, which IIL did effectively through its marketplace. Another

requirement was to project these SMEs to the world with all their potential. The web based

solutions we offered to our clients helped in global branding and quality realization of Indian stone

and stone products.

Travel Industry is a major foreign exchange puller for India. Year 2004, travel industry accounted

to almost 2% of GDP and this year it is expected to touch 5%. The reason being that very few

countries in the world have so many tourist destinations as India. Well, it's true but not the only

fact. Internet facilities like on-line travel bookings, delivery confirmations on one hand and airlines

working at establishing a direct relationship with their customers are the reasons playing as

important a role.

IIL realized this at the very beginning and was the first one to launch a full-fledged travel portal.

This portal gave detailed information on all tourist destinations and other aspects as to how to

reach, where to stay and the cultural aspects. We had the largest database of travel and tour

operators and hotels in India that could be contacted directly. This was the beginning of Indian

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travel industry going global through their online presence in the travel marketplace and through

their individual websites and catalogs.

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 CHAPTER-3

COMPANY PROFILE

Basic Information

Company Name: HEMA MARKETING

Business Type: Manufacturer
Product/Service
SOAPS AND DETERGENT
(We Sell):
Brands: SNOW
Number of Employees: 51 - 100 People

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Trade & Market

Main Markets:

Africa

Mid East

Main Customers:
Direct Importer, Big Retail Chain Store, Hyper Market etc huge number of cleintele list
Total Annual Sales Volume: US$1 Million - US$4 Million
Export Percentage: 91% - 100%

Factory Information

Factory Size (Sq.meters): 1,000-3,000 square meters

Factory Location: MEERUT, UP, India
Number of R&D Staff: 5 - 10 People
Number of QC Staff: 5 - 10 People
Contract Manufacturing: OEM Service Offered Design Service Offered Buyer Label Offered

HEMA MARKETING is a manufacturer of Soaps and Detergents. This Factory is located in the

heart of India, i.e. 80Kms away from Delhi.

It has state of the art infrastructure as to make finest collection of our products .

We have handcrafted beautiful soaps to sell since 1998 and over the years we have discovered
amazing things about the soaps we make and the people who use them...

All natural, organic vegetable oils blended with premium essential oils, natural aromatics and
botanicals create soft skin and happy people.

Factory is covering an area of around 15,000Sq.ft.

59
It has strictly prohibited workers with less than 18 years to work in factory as per it’s policy.

it facilitate it’s workers with free education to their children in order to make them free from

primary problems, as it cares so that they care it’s customers by making world best products.

Policies Of Company

» No Minimum Order quantity with the serious buyers.

» Punctuality and in time supply.

» Strict Quality Management.

» Free Samples to worthy buyers. (but buyer have to pay the shipping cost which is refundable)

MANUFACTURING UNITS

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PRODUCT

Curtain 01 – Gingam Curtain 02 - Scroll Paisely

Curtain 03 – Kate

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Rug 01 - Evangelene Rug 02 – Sebita

Rug 03 - Jute Blossom Rug04 - Matt Leaves

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Product Showcase

Bath mats

Bath mats

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CHAPTER-4

64
 RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

Definition of Research

Research is a common parlance refers to a search for knowledge. One can also define research as

a scientific and systematic search for pertinent information on a specific topic

Objectives of research

The purpose of research is to discover answer to questions through the application of scientific

procedures

 Motivation in research

65
  To get a research degree along with its consequential benefits

 Desire to face the challenges

 In solving the unsolved problems

 Desire to get intellectual joy of doing some creative work

 Desire to get respectability

Research methodology

It is a systematic way to solve the search problem. it may be understood as a science of studying

how research is done scientifically in it we study the various step that are generally adopted by

researcher in studying his problem along with the logic behind them.

Research design

A conclusive research using survey method with the help of structured questionnaire would be

used, as it best confirmed to the objective of study

Different research design

1. Research design in case of exploratory research

2. Research design in case of descriptive in nature.

Data collection method

A structured questionnaire is designed to administer the respondent personally, keeping in mind

various aspects intended to achieve objective of the project.

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Collection of data

Data can be collected in two ways

1. Primary data

2. Secondary data

Primary data is that type if data which is fresh in nature or in other words we can say that which

can be collected in first time

But in given research primary data is collected through questionnaire way

Secondary data is that data which is already available in market

But for given research secondary data is collected by the help of internet,

through books, web world.

LIMITATIONS OF THE PRESENT RESEARCH

The present study cannot claim to be completely comprehensive either in range or coverage.

The sample size is only 20, ideally it should have been at least 50 or 60. The selection of sites is

almost random though guided by the pre-specified criteria. It is possible that some more important

and representative sites have been omitted from the study. Some important parameters like

venture/capital investment and its Sources, business models/ strategies, website technology and its

implementation/ site maintenance issues, server locations etc. were not included in the survey

because of the obvious difficulties in obtaining this information in the limited time frame.

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Given the constraints of time and resources, the study at best can be given credit for being a

snapshot or a macro-view of the contemporary current representative status of the ecommerce

websites in the Indian scenario.

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 CHAPTER-5

FINDING

FINDINGS

General Observations

1. I predicted a very optimistic ‘bright’ future of e-Commerce in India.

2. Reported growing demand’ as the recent trend.

3. There is ’huge potential’ for growth.

4. There will be an annual growth of more than 50% at least.

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5. Expressed enthusiasm regarding plans for the growth of their websites.

While predicting the ‘bright’ future, I have made it conditional and subject to the alleviation of the

identified problems. Some of these problems include:

1. Reach / access to the internet (Infrastructure, penetration, cost of telephone/ internet

connectivity, need for critical mass, general awareness).

2. Inertia to change and mental attitudes (Habit of ‘touch and feel’).

3. Trust security and legal issues.

4. Lack of awareness of e-commerce opportunities.

5. Lack of adequate and cheap payment gateways; third party authentication certification, credit

rating and quality rating agencies

6. Logistic problems of supply chain management and real time MIS.

7. Government policies and barriers as regard inter-state trading within India.

Most of the selected sites are less than two years old and are either making a profit or are

optimistic of making profits soon. These seem to be the ones that have learnt lessons from the

earlier failures of others. The rest of the sites are survivors, and therefore, likely to be more sound

in their business models.

WAP technology is being adopted fast to overcome the problem of access to the internet in remote

areas. For example, ‘teauction’ has become the pioneer in making their site WAP-enabled to

provide access to the remote gardens for auction-bidding and real time garden-wise weather

forecasts. (This technology combined with the idea of cyber cafés and kiosks could be the solution

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for rural India to overcome and circumvent the present day impediments of copper-wire

technology for establishing communications.)

DETAILED FINDINGS

Types/Categories of Websites

The selected sites are a mix of representative horizontal portals, a vortal, e-retail

supermarts, a virtual trade fair and virtual marketplaces from both B2B and B2C segments.

Some of them are both B2B as well as B2C. (Examples: ‘Chemvalue’, ‘Amul’.)

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Most of the B2C sites are focused on sales and delivery in selected few major cities/towns within

India. Only a few like ‘rediff’ and ‘chennaibazaar’ cater for international orders, that are mostly

from Non-Resident Indians (NRIs).

There is an encouraging trend of convergence of sites for mutual synergy. For example, ‘123india’

has channel partnerships with ‘baazee’, ‘chennaibazaar’, ‘IBMWorld’ and several others.

Similarly, the Times Group is building an e-empire with its own mutually supporting channels like

‘shopping.indiatimes’, ‘tradingpundit’, ‘planetMon line’ and several other non-trading community

channels.

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 CHAPTER-6

ANALYSIS OF FINDING

DATA ANALYSIS AND INTERPRETATION

Figure1- Awareness of Internet Marketing

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Above analysis shows the analysis of awareness of Internet Marketing. As shown in figure that

only 30% of respondents are aware to Internet for Marketing to product. 70% respondents are not

aware of Internet for marketing the product.

Figure2- Uses of Internet for Marketing

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Above analysis shows the analysis of uses of Internet Marketing. As shown in figure that only 25%

of respondents use Internet for Marketing to product. 75% respondents do not use Internet for

marketing the product.

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Figure3- Frequency of Uses of Internet for marketing the Product

Above analysis shows the frequency of uses of Internet Marketing. As shown in figure that only

15% of respondents use Internet Marketing very frequently. 50% respondents use occasionally and

rest of 35% of respondents use Internet frequently for marketing the product.

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Figure4- Satisfaction Level regarding Internet Marketing

Above analysis shows the satisfaction level regarding Internet Marketing. As shown in figure that

only 30% of respondents are highly satisfied with Internet Marketing. 45% respondents are

average satisfied and 25% of respondents are dissatisfied with use of Internet for marketing the

product.

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 CHAPTER-7

CONCLUSION &

RECOMMENDATIONS

Conclusions and Recommendations

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The number of websites in India is enormous and is increasing each day. It is currently a

compulsive fashion to have web presence! Apart from adorning their letterheads or visiting cards;

the majority of businesses do not have a sound objective/strategy, they have low visibility and are

poorly maintained.

Amongst the sites studied, the successful or near successful sites had the following features in

common:

1. Clear business models with well-defined focus and strategies

2. Mostly on self-financing rather than capital from joint venture or venture capital

3. Tight budgetary control

4. Small advertising expenditure -mostly on reputation through the word of mouth

5. A few but efficient and technically sound operating staff

6. Good back-end technical support

There is no site that can truly claim to be exclusively B2B or B2C. This is not surprising and is

what should be expected. The obvious strategy for a country like India should be to adopt an

evolutionary process of transformation from the traditional trading activity processes to the e-

trading environment. The mix of traditional and cyber modernization has to harness the power of

the internet and modern technology. This must be done by making use of the strengths (primarily

cheap and fast means of communication and the global reach) and by deferring implementation of

the weak areas (issues of trust, legal problems, supply chain management etc.) until some

satisfactory solutions/ alternatives are found.

The stages of this transformation process are:

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1. Database driven sites (broadcasting information of buyers/ sellers along with product

catalogues) and trade information sites (Market Information -the ‘Blue

Pages’) for offline matchmaking.

2. Online communication facilities for direct negotiations between the parties and to finalize the

deals. Essentially, an online matchmaking process between buyers and sellers.

3. Online ordering, offline payment and delivery mechanisms

4. Online ordering and secure payment mechanism with offline delivery.

5. Online ordering, secure online payment mechanism and with online delivery of digital products

and offline delivery of ‘soft’ and ‘high touch’ products.

It is comforting to note that the selected sites conform to the above pattern of evolution.

The B2C sector in India is more aggressive in modernizing and adopting the necessary e-

commerce tools (e.g. secure payment gateways, third party authentication, online order tracking

and after-sales customer support etc.) in comparison to the more conservative B2B sector. This

confirms what was expected. For B2B to succeed and proliferate (where the stakes/risks are high),

it is essential that B2C succeeds first. This will generate mass awareness, confidence and

overcome the issues of trust and security at a relatively low risk level.

Although several initiatives are in place to establish secure payment gateways (ICICI Bank, HDFC

Bank, Citibank, Centurion Bank etc.), and to set up agencies that evaluate credit / quality ratings

and also to establish a third party authentication authority to certify digital signatures at the

national level many obstacles exist. For example there are too few initiatives that have limited

reach only to major metros and cities. Further they could be expensive and are little known as was

revealed in the responses received for this study. As things stand SMEs are at a disadvantage.

(Awareness and reach of these facilities!)

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Similarly, although the IT Act, 2000 has been in force for one year, its implications and the

safeguards provided therein are yet to percolate down to the concerned levels. The Cyber Laws

have to be made effective too.

Though online purchases are few, (most potential buyers are reported to browse through the sites,

select an item and then buy it from the shop next door), sending gifts and sending greeting cards

(physical) through internet orders is becoming highly fashionable among the teen and middle-aged

elite class in metros.

Several sites that claim to be B2B are actually not. It may be that they are B2C and aspire to be

B2B. Alternatively, their ulterior focus is on being an e-commerce solution provider and they set

up a B2B portal as a demonstration of their capabilities. This is particularly true for the Indian

scenario. There are a large number of sites of webenablers and solution providers that offer web-

hosting, domain name registration services etc.

Most of the sites have their servers based in the USA but the current trend is to locate servers in

India, particularly for the exclusive India-focused websites.

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BIBLIOGRAPHY

Bibliography

82
Reference to Book:-

Kothari, C.R., Research Methodology (Methods & Techniques) Wishva prakashan ,2nd edition

C.berry, Marketing Research: Published by Tata MacGraw hill ,4th edition

S.A.Chunnawalla: Product management:- Himalaya publishers,4th revised edition.

HYPERLINK "http://www.nasscom" Nasscom Handbook 2000.

Reference to web pages:-

www.google.co .in

www.indiamart.com

www.yahoo.com

www.alexa.com

www.surfindia.com

www.indianindustry.com

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ANNEXURE

Questionnaire

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1. Company’s Name : ________________________________________

2. Office Address : ________________________________________

3. City : ____________________ PIN ________________

4. Telephone No.: ___________________ Fax No. ______________

5. E-mail : ________________________________________

6. Website : ________________________________________

7. CEO : ________________________________________

8. Marketing Head : ________________________________________

9. Exports Head : ________________________________________

10. Factories / Branches : ________________________________________

11. Year of Estab. : ________________ No. of Employees _________

12. Annual Turnover : ________________________________________

13. Nature of Business : Exporter  Manufacturer 

Importer  Service Provider 

14. Products : ________________________________________

________________________________________

________________________________________

15. Services : ________________________________________

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16. Countries Exporting to : ________________________________________

17. Countries importing From : ________________________________________

18. Member/Affiliation : ________________________________________

19. Quality Certification : ________________________________________

(If Any)

20. Are you aware of Internet Marketing?

 Yes  No

21. Do you use the Internet for marketing of your products?  Yes  No

22. If yes, how frequently you use the Internet for marketing of your products?

 Very frequently  Frequently  Occasionally

23. Are you satisfied with Internet for Marketing of your Product?

 Highly Satisfied  Average satisfied  Dissatisfied

24. What other marketing tools you use for Sales Promotion?

________________________________________________________________

________________________________________________________________

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 __________________ __________________ __________________

Client Signature Client Name Company Seal / Stamp

------------------------------------------------------------------------------------------------

FOR OFFICE USE

Executive Name : ___________________ ASM ________________

Approved By : ________________________________________

Branch : ________________________________________

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