ONLINE MARKETING

Zomato.com
&
snapdeal.com

EXECUTIVE SUMMARY
The Internet has become an essential part of our daily life, and companies realise that the
Internet can be a shopping channel to reach existing and potential consumers. With this
consensus Online Shopping as a whole has rapidly grown. The biggest surprise is that
clothing is one of the top categories purchased online. This is not surprising at all because,
clothing sales has always been a top category in the catalogue channel, so naturally the
Internet channel should be no exceptions. This project is a part of study, and focuses on
factors which online Indian buyers keep in mind while shopping online. This research
found that information, perceived usefulness, ease of use; perceived enjoyment and
security/privacy are the five dominant factors which influence consumer perceptions of
Online purchasing.
The online purchasing behavior of online shoppers and factor influencing online shopping
behavior and its future perspective. Internet is changing the way consumers shop and buy
goods and services, and has rapidly evolved into a global phenomenon. Many companies
have started using the Internet with the aim of cutting marketing costs, thereby reducing the
price of their product and service in order to stay ahead in highly competitive markets.
The study aimed of the study is to analyze the comparative strategies of snapdeal.com and
zomato.com. Zomato.com&Snapdeal.com is an Indian e-commerce company.
Indias always been a nation of foodies. In fact, it wouldnt be unreasonable to calling
eating out our national pastime. And thats where the problem of where to eat arises.
Solving that problem elegantly is what Zomato, one ofIndias leading restaurant directory

portals, has been doing since July 2008. Today, Zomato lists restaurants in ten cities
acrossIndia and has more than 750,000 users. YourStory caught up with entrepreneur
Deepinder Goyal, the co-founder of Zomato, to know more about the business idea behind
the venture, their plans for expansion and the massive market that theyre addressing.
Snapdeal features products across categories like Mobiles, Electronics, Fashion
accessories, Apparel and Footwear, Kids, Home and Kitchen, Sports, Books, Restaurants,
Entertainment and Spas amongst others.
Companies also use the Internet to convey, communicate and disseminate information to
sell the product, to take feedback and also to conduct satisfaction surveys with
customers. Customers use the Internet not only to buy the product online, but also to
compare prices, product features and after sale service facilities they will receive if the
purchase the product from a particular store. Many experts are optimistic about the
prospect of online business.

INTRODUCTION
With popular trends and demands the concept of the Internet as the way forward to increase
profit margins, companies new and old are creating websites here and there. The
significance for retailers to having a web site is that a web site is informational and
transactional in nature. As the web site can be used for advertising and direct marketing;
sales; customer support and public relations.
Significantly according to a study by McKinsey & Company and Salomon Smith Barney,
E-tailers who sell to their customers through catalogues; stores, and online significantly
emerge victorious amid the e-tail shake out (Pastore, 2000). With seasonal events and
holidays, the Internet has become a tool for a quick and stress free method of shopping.
Allowing retailers to cash in the profit from another useful shopping channel.
Internet is changing the way consumers shop and buy goods and services, and has rapidly
evolved into a global phenomenon. Many companies have started using the Internet with
the aim of cutting marketing costs, thereby reducing the price of their products and services
in order to stay ahead in highly competitive markets. Companies also use the Internet to
convey communicates and disseminate information, to sell the product, to take feedback
and also to conduct satisfaction surveys with customers. Customers use the Internet not
only to buy the product online, but also to compare prices, product features and after sale
service facilities the will receive if they purchase the product from a particular store. Many
experts are optimistic about the prospect of online business.
In addition to the tremendous potential of the E-commerce market, the Internet provides a

unique opportunity for companies to more efficiently reach existing and potential
customers. Although most of the revenue of online transactions comes from business-tobusiness commerce, the practitioners of business-to-consumer commerce should not lose
confidence .It has been more than a decade since business-to-consumer E-commerce first
evolved. Scholars and practitioners of electronic commerce constantly strive to gain an
improved insight into consumer behavior in cyberspace. Along with the development of Eretailing, researchers continue to explain E-consumers behavior from different
perspectives. Many of their studies have posited new emergent factors or assumptions
which are based on the traditional models of consumer behavior, and then examine their
validity in the Internet context.

THEORETICAL REVIEW
E-commerce
In its simplest form ecommerce is the buying and selling of products and services by
businesses and consumers over the Internet. People use the term "ecommerce" to describe
encrypted payments on the Internet.
Sometimes these transactions include the real-time transfer of funds from buyer to seller
and sometimes this is handled manually through an eft-pos terminal once a secure order is
received by the merchant.
Internet sales are increasing rapidly as consumers take advantage of lower prices offer by
wholesalers retailing their products. This trend is set to strengthen as web sites address
consumer security and privacy concerns.
Benefits of E-Commerce
E-commerce can provide the following benefits over non-electronic commerce:
Reduced costs by reducing labour, reduced paper work, reduced errors in keying in data,
reduce post costs Reduced time. Shorter lead times for payment and return on investment in
advertising, faster delivery of product Flexibility with efficiency. The ability to handle
complex situations, product ranges and customer profiles without the situation becoming
unmanageable.
Improve relationships with trading partners. Improved communication between trading

partners leads to enhanced long-term relationships. Lock in Customers. The closer you are
to your customer and the more you work with them to change from normal business
practices to best practice e-commerce the harder it is for a competitor to upset your
customer relationship.
New Markets
The Internet has the potential to expand your business into wider geographical locations.
The Internet has developed an into a new distribution channel and online transaction are
rapidly increasing. This has created a need to under how the consumers perceive online
purchasing.
Price, Trust and Convenience were identified as important factors. Price was considered as
to be a most important factor for a majority of the students. The internet has created a
paradigm shift of the traditional way people shop. A consumer is no longer bound to
opening a times or specific location. So he can become active at virtually any time any
place and purchase the products or services.
The internet is relatively a new medium for communication and the information exchange
that has present in everyday life. The number of internet user is constantly increasing which
is also signifies that online purchasing is increasing. The rapid increasing is explained by
the consumer behavior. The internet is considered a mass medium that provides the
consumers with purchase characteristics as no other medium. Certain characteristics are
making it more convenient for the consumer compared to the traditional way of shopping,
such as the ability to any time view and purchase products visualize the needs with

products and discuss products with other consumers. Online shopping is the process of
consumer go through the when they decide the shop on the internet.
The internet has developed into a new distribution channel and the evaluation of
this channel. E-commerce has now identified. Using the internet to shop online has
become one of the primary reasons to use the internet combined with searching for
products and finding the information about them. Therefore internet develop the companies
also use the internet to convey, communicate and disseminate information, to sell the
product, to take feedback and also to conduct satisfaction surveys with customers.
Customers use the Internet not only to buy the product online, but also to compare prices,
product features and after sale service facilities they will receive if they purchase the
product from a particular store.
Many experts are optimistic about the prospect of online business. Due to the rapid
development of the technologies surrounding the Internet, a company that is interested in
selling products from its web site will constantly has to search for an edge in the fierce
competition. Since there are so many potential consumers, it is of the out most importance
to be able to understand what the consumer wants and needs.
Online Shopping In India
It is a fact that a great online shopping revolution is expected in India in the coming years.
There is a huge purchasing power of a youth population aged 18-40 in the urban area.

Rising Connectivity
If observe the growth of Internet Subscribers from the above graph, it is getting
doubled year by year. The usage of internet in India is only 4% of the total
population. This is also getting increased day by day as the costs of computers are
decreasing and net penetration is increasing. The cost of internet usage is also getting
lower, with good competition among the providers. Wi-Fi & Wimax system has also
started in India. This will increase the usage as it goes more on wireless internet. Indians
are proving every time that they can beat the world when it comes to figures of online
shopping. More and more Indians are going to online shopping and the frequency of Indias
online buying is crossing the overall global averages.
Few Factors That Boost Online Shopping in India
Rapid growth of cybercafs across India
Access to Information
The increase in number of computer users
Reach to net services through broadband
Middle-class population with spending power is growing.

There are about 200 million of middle-class population good spending powers. These
people have very little time to spend for shopping. Many of them have started to depend on
internet to satisfy their shopping desires.

Few Facts about Online Shopping

The figures from IAMAI show that the internet users in India will grow to 200 million by
2011. Around 25% of regular shoppers in India are in the 18-25 age groups, and 46% are in
the 26-35 year range.
Indian online matrimonial sector is worth around $230 million
Worldwide E-commerce is only growing at the rate of 28%, since India being a
younger market, the growth of e-commerce is expected at 51% in the coming years.
In line with global trends finally India has also started shopping online these days. As
per the study by IAMAI online shopping in India has rose from $11million in 19992000 to $522 million in 2007 and it is expected to rise above $700 million by end
March 2010.
Changing Attitude towards Online Shopping:
Awareness, Future Demand Focus for Emerging Markets & Current Issues Malls
springing up everywhere and yet people are E-shopping! And not in small numbers either.
Consumers are more rational nowadays and have ability to get the choices from the market.
Awareness among the consumers is spread through internet. The number of internet users is
increasing day by day which attracts people who have an option to buy online. It was never
thought that Indians would go in for e-shopping in such a big way. Ticketing, travel
bookings and even books and movies seem fine to buy online. Knowing that in India sizes

vary from brand to brand and quality is inconsistent, even of some electronic items, how is
it that there are people buying these items online? In India there are some segments of
people who have not yet tried purchasing over internet.

CASE STUDY ANALYSIS

Zomato.com

Zomato is an online food guide, restaurant directory and menu-pages website for anyone
who is looking to either dine out or order food. Currently operational in 10 cities in India
- Delhi NCR, Mumbai, Kolkata, Pune, Bangalore, Hyderabad, Chennai, Ahmadabad,

i . exe