Segmentation, Targeting,

Positioning And Product

Strategies Used In

Group 10
Rajat Gupta
Gagan Jindal
Snehal Naik
Devalla Phani

G026
G031
G044
G050
G051

WHAT IS E-COMMERCE ?

E-commerce is the purchasing, selling and exchanging

goods and services over electronic systems such as
internet through which transactions are performed.

FOUNDERS

FLIPKART
(Market
Leader)

Sachin Bansal,
Binny Bansal

YEAR

2007

HEADQUARTERS

Bangalore

CURRENT VALUATION

$15.5 Billion

SLOGAN

Ab Har Wish Hogi Poori

BRAND AMBASSADOR

None

EMPLOYEE STRENGTH

33,000

PAYMENT METHODS

COD, Debit Card, Credit Card

Net Banking

INVESTORS

Tiger Global, Accel Partners,

Morgan Stanley wealth
management

SEGMENTATION
Demographic

AGE
More than 80% of the
online users are
between
age 15-35 years

GENDER
Males:
Sportswear,
wallets, Shirts etc.
Females: Jewelry,
Cosmetics,
kitchenware

OCCUPATION
Students: Books,
Music/Games CDs,
Stationeries etc.
Working: Suits, Office Bags,
laptop etc.
Travelers: Cameras, Books,
Bag packs etc.
Housewives: kitchenware,
home appliances etc.

Age group (15-25)

6.23 3.82

Age group (26-35)

17.9

Age group (36-45)

72.05

Age group (46-65)

SEGMENTATION(CONTD 1..)
Geographic

Tier 1 and Tier 2

cities
Bulkier SKUs in
Urban markets
High spending power
of people in metros

Semi-Urban and
Rural Market
People prefer to buy
goods from local stores
Recently Started
targeting rural markets

International Regions
In future would look for
new avenues
Schemes like Global
Selling programs will be
thought of in future

Behavioral
Occasions and

Festivals
Gifts and special
schemes.
Offers on mobiles
(1 plus 1)

Benefits and
Convenience
COD, Free home
delivery,
Discounts, GOSF,
Price.

Loyalty to brand
and frequency of
buyers
Potential Users,
First time, second
time users.

SEGMENTATION(CONTD 2..)
Psychographic

Lifestyle
Different clothing
habits(Price based division)
Urban/rural lifestyle
School, College, Office going

Personality Traits
High/low Buying power
Brand Personality- Brand target
customers based on
personalities.
Brand Demarcation

TARGETING
Students

Discounts on products like laptop, smart phones.

Yearlong discounts on items like electronics, bags,
apparel and accessories and get access to the
companys fee-based membership service.

Current Buyers
(Shopaholic)

Regular emails about Whats New, New Offers to

existing Flipkart account holders.
Promotional offers and regular feedbacks from
current buyers to go for betterment.

New Customers
(Not shopped yet)

No kidding, No worries campaign to target new

users.
COD, 30 day replacement and guarantee of
original product- Key areas.

Youth Generation

Household
Maker(Using F
Qck)

Fashion Freaks

POSITIONING
FLIPKART ADS HAVE FALLEN INTO 2 BROAD
CATEGORIES:
1) EXCLUSIVE LAUNCH(MEGA SALE)

FULL PAGE PRINT ADS

GEARED TO POSITION ITSELF AS A LEADING SHOPPING

DESTINATION IN OVERALL RETAIL-NOT JUST ONLINE.
2) FASHION APPAREL

TV ADS

AIMED AT PUSHING ITSELF AS CATEGORY LEADER IN LARGEST ETAILING SEGMENT WITH HUGE HEADROOM FOR GROWTH.

TARGETING THE SLIGHTLY HIGHER END AND YOUNG

CONSUMERS.
OTHER PARAMETERS:

30 DAY REPLACEMENT POLICY

COD AND EMI OPTION

MARKETING CAMPAIGNS LIKE NO KIDDING, NO WORRYING

FOUNDERS

SNAPDEAL
(Market
Challenger)

Kunal Bahl,

Rohit Bansal
YEAR

2010

HEADQUARTERS

New Delhi

CURRENT VALUATION

$4.7 Billion

SLOGAN

Dil Ki Deal

BRAND AMBASSADOR

Amir Khan

EMPLOYEE STRENGTH

9,000

PAYMENT METHODS

COD, Debit Card, Credit

Card,

Net Banking
INVESTORS

Alibaba, Foxconn, Softbank,

eBay, Kalaari Capital, Ratan

SEGMENTATION
Demographic

Psychographic

Geographic

Behavioral

THE MARKET SEGMENTATION OF SNAPDEAL IS ALMOST SIMILAR

AS THAT OF FLIPKART. POINTS OF DIFFERENTIATION:
TECH AND ELECTRONIC SAVVY PEOPLE
(BIGGEST ONLINE ELECTRONICS SALE)
9

TARGETING
Youth Generation

Discounts on products like laptop, smart phones

and other electronic items.
Launch of Piaggio, Targeting Vespa customers.
Targeting digitally active younger generation who
prefer easy access and smooth transaction

Current Buyers
(Shopaholic)

Regular emails about Whats New, New Offers to

existing SnapDeal account holders.
Promotional offers and regular feedbacks from
current buyers to go for betterment.

Farmers

Launched The Agri Store, offering products like

seeds, fertilizers and irrigation tools.
Store also accessible through mobile phone.

Middle Class

Philosophy: If a person is rich, he will not shop

online, quoted by Kunal Bahl.
Target the middle-class that forms 80% of online
shoppers in India

Tech and
Electronic Freaks

Students

10

POSITIONING

SNAPDEAL IS POSITIONED AS BEST ADVERTISING AND

DISCOUNT PLATFORM IN THE ONLINE INDIAN MARKET.
LOW PRICE ONLINE MARKET.
GREATER FOCUS ON QUALITY. PRODUCTS SHOWCASED
ARE GENUINE AND QUALITY CHECKS WERE DONE BEFORE
DELIVERY.
SUPPORT TO AN ARRAY OF SOCIAL INITIATIVES, MANAGED
TO POSITION BRAND THAT IS CONCERNED WITH
BOOSTING & APPLAUDING AUDIENCES TO DO GOOD IN
GENERAL.
WITH DIL KI DEAL CAMPAIGN,
BRAND AIMS TO POSITION ITSELF TO
BUILD AN EMOTIONAL CONNECT WITH CUSTOMERS.
11

FOUNDERS

SHOPCLUES
(Market
Nichers)

Sandeep Aggarwal,
Sanjay Sethi,

Radhika Aggarwal
YEAR

2011

HEADQUARTERS

Gurgaon

CURRENT VALUATION

$350 Million

SLOGAN

Ting se leke tong, ding se leke

BRAND AMBASSADOR

Vijay Raaz

EMPLOYEE STRENGTH

550

PAYMENT METHODS

COD, Debit Card, Credit

dong

Card,

Net Banking

12

SEGMENTATION
Demographic

Psychographic

Geographic

Behavioral

1.
2.

THE MARKET SEGMENTATION OF SHOPCLUES IS ALMOST

SIMILAR AS THAT OF FLIPKART/SNAPDEAL. POINTS OF
DIFFERENTIATION:
GEOGRAPHIC SEGMENTATION
TIER 2 AND TIER 3 CITIES
URBAN AND TIER 1 CITIES NOT A TARGET SINCE THEY ARE
ALREADY TAPPED

13

SEGMENTATION(CONTD..)

BEHAVIORAL SEGMENTATION

1.

PRICE SENSITIVE BEHAVIOR.

2.

LOOKING FOR BENEFITS AND HEAVY DISCOUNTS.

PSYCHOGRAPHIC SEGMENTATION

1.

PLAIN LIFESTYLE.

2.

LESS BRAND CONSCIOUS.

14

TARGETING
Tier 2 and Tier 3
towns
Middle and Lower
Middle Class

Office Crowd

65% of Shopclues user base comes from the next

tier towns.
Products at cheap prices are offered to thrifty the
small town buyers.
People with modest salaries who look to save
money and avoid middle man.
Low buying Power, niche audience.
Brand not a concern.
Ghar Wapsi from 6 to 9 in the evening.
Commute commerce.

Frequent Buyers

One stop solution

Lookers

15

POSITIONING
SHOPCLUES WITH ADS CAME UP WITH FOLLOWING TV
CAMPAIGNS:
1) WHOLE SALE KA RATE

POSITIONED ITSELF AS A ONE STOP SHOP FOR ONLINE BUYERS.

GOOD QUALITY AT CHEAPER AND AFFORDABLE PRICES.

2) BLACK HOLI

POSITIONED ITSELF AS A CSR ORIENTED BRAND

THEREBY CONNECTING WITH THE EMOTIONS OF BUYERS.

PART OF PURCHASE WOULD GO TO VISUALLY

CHALLENGED CHILDREN.
OTHER PARAMETERS:

SELLS ANYTHING AND EVERYTHING.

INDIAS 1ST AND LARGEST MANAGED MARKETPLACE

16

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