Tuesday, 29 July 2014

Marketing Strategy Analysis of Giftxoxo- A Niche Ecommerce Venture

Be it somebody’s birthday or wedding or anniversary or a festival, any occasion is incomplete without gifts. Hence, the presence of so many retail businesses with fancy and attractive gifting options for people to pick up gifts from. The Indian gifting market comprises of various players- from popular companies like Archies and Hallmark, to niche and expensive brands such as Swarovski, to a large number of locally-produced and Chinese gifts that can be bought from most local gift and stationery shops in all nooks and corners of the country. It’s no surprise that the Indian consumer is spoilt for choice when it comes to purchasing gifts.

Gifting has always been a very personal activity for people. Nobody would have thought of purchasing gifts online; it was supposed to be like a ritual- to find the right and best gifts for people who matter to us. But Manoj Agarwal and Sameer Khandelwal, founders of Giftxoxo, an ecommerce start-up which encourages and celebrates gifting, think differently. They believe that in today’s day and age, when most urban Indians are shopping for all kinds of things via e-commerce companies, the time has come when they can confidently and conveniently buy gifts online too.



So the question that begs an answer is: how is Giftxoxo different from the multitude of ecommerce companies in India? Unlike other ecommerce websites which stock a large variety of products that consumers usually buy for themselves, Giftxoxo stocks products and services that a consumer would buy as a gift for someone else. The company retails a large variety of products ranging from gadgets to jewellery, artefacts to fashion accessories, books to home decor. They also come up with festival-inspired collections. In February this year, they had come up with a Valentine’s Day collection, thereby cashing in on the popular love season. They have also created a new category of high-end, niche gifting options called experience gifting on their website.   

So far, so good. But how does this new e-commerce venture differentiate itself from the various other existing companies, in an industry where rivals compete on the basis of lowest prices? How does it take into account the bargaining power of consumers, who can easily compare prices of identical goods on other websites and purchase the one which is cheaper? Finally, what are the marketing strategies adopted by Giftxoxo which will enable it to reach out to its target customers and persuade them to choose it for all their gifting purposes? In order to answer these questions, I did a thorough analysis of the marketing strategies adopted by Giftxoxo to identify what’s working for them.
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      One thing which Giftxoxo is very keen on doing is sponsorships for college events. The start-up has so far sponsored dozens of college events, including the cultural and management fests of top colleges BITS Pilani, Narsee Monjee Bangalore, IIT Kharagpur, IIT Bhubhaneshwar, among many others. This clearly indicates that they don’t want to touch their target audience just virtually; they want to meet them, interact with them and build an association with them, which a mere Facebook photo or tweet cannot do. In order to understand what kind of sponsorships Giftxoxo usually do, I decided to dig deeper and spoke to a couple of organisers of these fests. In majority of these cases, Giftxoxo offered sponsorships in kind- in terms of gift vouchers of their own ecommerce website, which induces the recipients of those vouchers to make purchases from the website in order to utilize their prizes. This also becomes a talking point for them and it helps the company receive word-of-mouth publicity.

·         Almost all e-commerce start-ups have Facebook and Twitter pages. Most of them run contests from time-to-time to invite more visibility, likes, shares and comments from their potential consumers. The prizes awarded are usually specific products like a concert ticket or a book. But in the case of Giftxoxo, they give away shopping vouchers of their own shopping website as prizes. This corroborates that they strategically offer gift vouchers with the intention of getting more sales of their products.

·         Another interesting marketing strategy which Giftxoxo seems to have adopted is co-branding. They regularly partner with other brands and come up with initiatives that benefit both the brands. For instance, Giftxoxo recently organised a writing competition in association with Let Me Know, a popular opportunities website for students as well as job-seekers. They have organised similar events with Cricket Magazine, among others. They also support and participate in events that encourage entrepreneurship. Last year, they sponsored and participated in a start-up event- Demo Day 2013- organised by Startup Club India.

·         Giftxoxo gets covered by the media quite frequently. They have been written and talked about in popular newspapers and websites including Indian Express, FirstBullet.in, myshaadi.in, ZDnet.in, streetarticles.com, among many others. Such media coverage definitely helps a brand in getting itself registered in the minds of consumers.


·         Another very interesting and unique strategy adopted by the company is to position itself as a unique place to work for. They highlight images and videos of their staff members on their social media pages to build an emotional rapport with their consumers. They also hire a lot of students as interns or part-time employees and highlight their experiences on their blog. The core team of the start-up is participating in an international event- Mongol Rally 2014- which will be held in June. They have already started promoting it via social media networks. This kind of employer branding has spill-over benefits- potential employees are also potential consumers. It also gives away the perception of a credible and trust-worthy company.

·         As already mentioned above, Giftxoxo constantly leverages on the festival season by introducing special limited edition collections during those periods. During Christmas time, they sponsored a Christmas carnival and engaged with a live audience comprising of customers across age groups.
These are just some of the many things Giftxoxo is doing to market itself effectively. What remains to be seen is how much of it helps in their business and whether they give the new start-up an edge over rival firms in the highly competitive industry of E-commerce retail.


---> Article by Pranav Sukhija 
                          NMIMS, Bengaluru

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Monday, 30 June 2014

Using Digital Signage to enhance in store experience

Digital signage is the practice of using digital technology like screens and displays to enhance in store experience for the customer. Digital signage has evolved from simple LCD screens to 3D screens and holographic displays. It is the next logical step towards building a better relationship with consumers. Retailers are looking for new ways of making the shopping experience more engaging and interactive. Digital Signage can be that edge which retailers are looking for to make their brand stand out.
Can you recall the most recent ways in which Digital Signage is being used? Is it big TV screens displaying the features of a product, or is it big posters of celebrities donning flagship products, or is it a sales promotion display which catches your eye? All these strategies, however widely used, are up for a major rethink as new technological advancements are allowing retailers to come up with innovative techniques of grabbing customer attention and differentiating their brands from a sea of competitors.

Figure 1- Swivel Platform




Imagine, a screen on which you can try out different clothes without actually having to go to a trial room. This has actually been adapted by Bloomingdale. The platform known as Swivel, uses Microsoft’s Kinect to track customer movements and let them try out clothes and accessories according to the right fit. The customer  This removes the need for waiting in long queues outside trial rooms, providing an easy and fun way for customer engagement. It makes shopping an even more interesting experience by making the process more interactive and appealing. It’s a great way to attract more footfall and turn onlookers into buyers. The store may not have all the items in stock, but it Swivel can display them digitally, thereby reducing customer churn. It is also a great way to track metrics on consumer preferences, as all the choices made by a customer would be saved in the database.
Figure 2- Intel 3D Screen






Intel’s new multi-touch holographic screen heralds a paradigm shift in digital signage technology. This 7 foot 6 inch screen lets users access the touchscreen display to browse through all the products and promotions on them. It seamlessly integrates social media by allowing customers to share what they like with their friends. Moreover, it acts as a navigator, by showing the store layout.
But the most interesting functionality of this screen is video analytics. A built in camera, allows the system to identify the demographics of the customer and accordingly shows an advertisement. This is a powerful tool in the hands of advertisers who can make targeted advertisements. Details about the customer are sent back to the database so that retailers can analyze consumer preferences. Not only is this concept a great way to attract customer attention, but also a very useful tool through which retailers can analyze tons of data.

Figure 3- 3D hologram






Similar to the 3D screens, another upcoming trend is the use of holograms to showcase products. With evolving technology and falling costs, retailers can use holograms to further personalize and enhance the consumer’s shopping experience. One obvious and very advantageous way is to use these holographic displays on the store’s entrance to generate interest, and ultimately footfall. An apparel store in Paris, Empreinte, is using in store 3D holographic models to showcase its collection. A mobile store in Ireland , is using holographic displays built around the mobiles, kept on the shelves, which display the features of the mobile in a 3D hologram which revolves around the product. 3D Holograms of accessories can also let users try them on which was earlier not possible without buying and then opening the product.
Digital signage cannot be successful without complementing it with a way to measure the subsequent change in store performance. You should have the adequate hardware and software to make meaningful interpretations of the data which is pouring in, and to use that data to reinvent your retail strategy.
It might still take some time for these technologies to become cheaper and accessible, but they certainly offer a glimpse of the future. From using price, discounts and promotions as differentiators, digital signage will allow retailers to use the ‘experience’ as a competitive advantage.

Article contributed by -
Sakshi Agrawal
Hardrisht Chawla
IMI, Delhi

To read more on Retail Sector : Click here :-> Retail Sector issue

Wednesday, 11 June 2014

Innovative logistics in modern day coal mining

Logistics and Supply Chain Management

Driverless trucks


Coal, a black brittle rock is a vital source of energy in this world. An estimated of 41% of world’s electricity and about 30% of total primary energy requirement of the world was fulfilled by coal. In developing countries like India, coal extraction is a tedious task and takes a toll on both the environment and the personnel involved. The miners of coal have to work in a surrounding with high probability of physical injuries plus an additional exposure to diseases like carbon lungs due to prolonged working in a hostile environment. Developing countries like India tend to overlook such health hazards due to lack of technological and capital muscle however developed world countries have overcome this issue with optimal use of technology.
           
 Developed world countries like Australia, Canada and USA have overcome these issue by use of modern machinery in their logistics and coal extraction processes. Companies like Rio Tinto and Catepillar have developed an army of Robot trucks which go miles into the hazardous extraction sites without any human driver at their helm. In Canada the trucks go miles on thin and melting ice in over 200 days per year. Rio Tinto, in 2013, has used these trucks to carry about a 100 million tons of coal in Australia. Come 2020 these trucks will be used world over for transportation of hazardous materials from harsh environment.
A revolution in logistics

The trucks are a modern day wonder of an engineering field called mechatronics (Mechanical + Electronics). A programmable computer is at the heart of in place of the driver of human driver in these monstrous trucks which controls the breaking, 
acceleration and the speed at which these trucks move. The obstacle sensors detect the surrounding objects in the vicinity of the truck and steers the away from any possible collision. These trucks are connected to a satellite via a communication equipment on top of the truck which communicates with a control center which is miles away from the extraction site. The location of the trucks is visible on a screen where operates monitor the trucks performance for possible breakdowns or defects. The logistical process is depicted in the diagram besides. The truck starts from the loading side, where an automatic extractor fills it with coal, and moves through the hauling road to reach the dumping side where it is unloaded. The position of the truck is tracked at all times by GPS system installed on the truck.
            A sensors are located on the truck which tracks obstacles and slows down and changes its path and steers away. In case there is multiple obstacles, the vehicles just come to a complete halt and are then controlled trough the control panels in the control center. Companies like Catepillar are trying to develop an artificial intelligence super computer unit to control the movements of the movements of these units from a remote location. When implemented, this would become a 100% automated system. As a Rio Tinto spoken person has said “Autonomous trucks are said to be more efficient than the same vehicles driven by humans, as they are driven with fuel-saving efficiency, don't need as much downtime and operate 24x7 if required.


Future scope:

The technology has change the dynamics of coal extraction in the developed world and is potentially pegged to be a stepping stone towards future technologies like completely automated public transportation system. There will come a time when trains, buses or even airplane flights will be controlled by such autonomous systems. The technology would even control private vehicles and would make the concept of driving a car obsolete. Make way for robots, the future is here.

Contributed by:


  Pankaj Kute

    Rachit Gupta

  IIFT Kolkata.