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Summer Internship Project

Oyecity.com
City Ka Brand

UNDERSTANDING THE VENDORS DECISION MAKING PROCESS WHILE SELECTING THE


ADVERTISING METHODS ON BASIS OF VARIOUS PARAMETERS
BY
ANUJ KUMAR SINGH

Introduction
Company profile
Competitive Mapping
Objectives
Tasks completed during Internship
Results of collected data with pie chart
SWOT Analysis
Feedback of vendors from the Survey
Suggestions for Company

Company Profile
Indias first online marketplace for the
brands of city.

Oyecity.com

Provide products and best deals from all


local shops.
A wide range of catalogue gives best
products right from sweets, clothing,
jewelry, books, tools, electronics, cakes etc.

Local Shop
(vendor)

Company believes that people from across


the city should be able to get the product
from their favorite shops.
It aimed to revolutionize the shopping
process as it is providing virtual shops of
city at one click.
Company is committed to provide the
fastest delivery to fulfil customers dreams

Customer

Competitive Mapping

Objectives
To identify and understand all possible problem that a vendor (or retailer)
face while working hand in hand with any e-commerce company.
To identify and study critical factors which is why vendors are choosing the
competitors in the same field.
To study and analyze the factors that help retaining the vendors (or retailers)
who once subscribed in oyecity.com.

Tasks completed during


internship :
Visiting vendors randomly and data collection
a. Visited almost 500+ vendors out of which 106 surveys are done in 22 days and out of these
106, I made 16 agreements with vendors to come on board with the company.
b. Area covered for survey are Baner, Aundh, Karveynagar, Kothrud, Sadashivpeth,
Shukravaarpeth, Kasbapeth, etc.
c. Target vendors for survey:- Nursery/Garden Shoppe, Ayurveda, Footwear, Garments,
Automobile Spare Parts, Hardware, Art and Crafts, Bags, Furniture, Home Dcor, Spices and
Squashes, Toys, and Books.
Visiting registered vendors and taking feedback (Visited 38 registered vendors at different locations
for feedback)
Lead generation (Contacted 12 vendors who sell their self made products and searched and found
400+ contact list of SHGs(potential vendors for company) in Pune).

Questionnaire and
Data Analysis

1. 21% have their monthly


sales of around Rs2
lakhs.
2. 16% and 12% vendors
have monthly sales of
Rs1lakhs and Rs50000
respectively.
3. Thus half of the target
vendors have an average
of monthly sales of
around 1lakhs.
4. Therefore company can
convince them to come
on board and help them
in increasing their sales
from its services.

Key Facts

Q1. Average monthly Sales (in INR)

5000
10000
3%

12%

50000
1 Lakh

36%
16%

2 Lakh
5 Lakh

8%
5%

21%

More than 5
Lakhs
NA

2. In marketing word of
mouth travels faster
than Usain Bolt on
steroid, but negative
word of mouth travels
even more faster.

Key Facts

3. For creating brand


image social media is
also used by many
retailers and it is best
for positive marketing
with zero expense.
4. Advertising in TV/Paper
and Radio are less used
because it is costly but if
afforded thencreate
great impact on
customers mind.

Q2. Marketing methods used for selling product

12%

2%

Word of Mouth
Social Media
Adver. In
paper/tv/radio
86%

Paphlets/Billboards
Sponsership for
events
Exhibitions

Key Facts
1. Most of retailers are
using word of mouth
and social media
hence most of them
spend nothing on
advertisement and
marketing.
2. 16%(very less)
retailers spend in
advertisement.

Q3. Annual spending on adver. and marketing

6%
10%

Nothing
Less than 10000
approx. 1 Lakh
84%

approx. 10
Lakhs
approx 1 Crore

Q4. Efforts for customer retention

Key Facts
1. Mostly vendors dont
prefer doing special
efforts for customer
retention
2. They give offers to
customers and
strongly believe in
building good
relationship with
customers for
customer retention.

1%

49%

Building
relationship
50%

Offers
No special
efforts
Loyalty
programs
Other

Key Facts

Q5. Range of cost of one unit product?

1. It can be seen that


average cost of one unit
product mostly ranges
from 1000-5000 which is
better from companys
perspective.
2. Higher the cost of unit
product sold more will
be the commission
amount in companys
account.

7%

5%

6%

less than 100


23%

average 500
31%

average 1000
29%

average 10005000
5000-10000
above 10000

Key Facts

Q6. Do you have your own website?

1. Max vendors dont


have website which
is plus point for us by
giving local vendors
an online platform.
2. It is seen during the
survey that those
who have their
website are reluctant
to come onboard.

10%

Yes No

90%

Key
1. Out ofFacts
10% who

Q7. How you manage your website?

have their own


website 6% manage
their website by
themselves and rest
4% have hired some
third party for
website
management.

2. Vendors are aware


that spending
money on an extra
employee just for
website
management is bad
business.

7%

4%

self
employee
90%

third party or
outsourced
NA

case for those


vendors who are not
aware of the power
of social media.

Key Facts

2. On the other hand


this can be plus
point for the
company as 95%
vendors are not
aware that they can
advertise
themselves free of
cost but here we are
doing it for them
with some
commission.
3. This is business
where company
need to take
advantage of others
unawareness.

Q8. You have your own Social media Page for Shop/Company?

5%

Yes
No

95%

1. It is observed that in
most of the shops
(94%) there are
returning customers
hence their customers
trust the products
given by the vendors
under our survey
population.

Key Facts

2. This is the plus point


for the company as
customers trust can
be build easily if they
know their trusted
shops are also
present on our
website.

Q9. Maximum people Visiting your shop/Company are:

6%
41%

First time visitors


54%

Returning
Customers
Both

1. In most of the shops


count of customers
visit is quite less
which can be
increased if
customers will be
able to visit their
virtual shops also on
companys website.

Key Facts

2. Shops in which
already more
customers are
visiting those
vendors will not feel
importance of the
service provided by
the company and
this is actually
observed during the
survey.

Q10. How many people visit your shop everyday?

1%
5% 3%

10 to 15
20%

approx 50
approx 100
200-300
71%

300-500
more than
500

1. Most of the vendors


are not at all in
touch with any
ecommerce
websites thus they
dont feel any effect
of ecommerce on
their business.

Key Facts

2. Some vendors (13%)


who have
subscribed to any of
the ecommerce
website have
experienced positive
effect in their sales
figure.

Q11. How much your business got affected due to ecommerce website?

13%
Not affected

13%
51%

less than 5%
less than
10%

11%
11%

approx 10-25
more than
25%

Facts
Key
Interested
i. Aware of the power
of ecommerce.
ii. Free delivery scheme
iii.Have experience (of
other such websites)

Q12. Are you interested to sell your products online within the city?

Not Interested

i. Extra stock
management
ii. Not aware of
computer knowledge
iii.Earlier bad
experiences.

42%
58%

Yes
No

1. Since there is no
advertisement and
marketing done of
the company 0% of
the population
under consideration
knew about
Oyecity.com

Key Facts

2. As during the survey


I had explained the
vendors about the
company and its
services hence now
they know about the
companys name
and services
provided by it.

Q13. Have you heard about oyecity.com

Yes
No

100%

Problem Faced During Internship


1. Initially it was hard to find target vendors for the company as only local
brand sellers were required for survey. Branded shops were avoided during
the survey.
2. Due to lack of advertisement and marketing none of the vendor were
aware about the companys name and its website. It was hard to convince
them to come on board.
3. Other staff of the shops were reluctant to give any information as most of
the time the owners of the shop were not present during survey for data
collection.
4. Most of the owners used to tell to come later (after 1hour, in evening, next
day morning etc.) and when approached were not present in the shop.

SWOT ANALYSIS
STRENGTHS
1. Larger classification of products.
2. Faster and cheaper shipping than
competitors.
3. Zero operational cost for
registered vendors.
4. Higher level of consumer
communication (Further offers and
products can me mailed and
texted).
OPPORTUNITIES (SCOPE)

1. Technologies like Virtual Reality and


Augmented Reality are the beginning of
the online product experience
revolution.
2. With aninternet user base of over
300 million, India has third largest
internet population after US & China.
3. Card payment can be included for
better service.
4. Strong B2B networking

1.
2.
3.

4.

WEAKNESSES
Heavy, Bulky
and Perishable products
(LIMITATIONS)
are expensive to ship.
Vendors feedback are not taken time to
time.
High customer expectations due to
comparison from other giant
ecommerce companies like
amazon.com.
Companys name lies very low in
ranking of search engines like Google,
Yahoo, etc. THREATS

1. If competition increases then cost and


profit margin may decrease.
2. Future innovation if not adopted ASAP
then can affect adversely to the
company.
3. Low barriers to entry in ecommerce
sector is the biggest threat.

Feedback from the Research


Registered Vendors Feedback:
1. Most of the vendors didnt knew about the company name, website and
their subscription.
2. Those who knew that they were registered had not visited to the website
themselves even once.
3. Some vendors were active on the website initially but due to negligence
show towards them and their product which were supposed to be updated
at most weekly, they didnt turn up for their virtual shop management.
4. Almost every vendor wants the company to advertise, so that it will make
their customers aware that their products can be bought online also at
Oyecity.com.
5. Some of the vendors were so upset with the service that they wanted to
withdraw their registration.

Recommendations
Company should make their website more accessible and catchy.
Company should include online payment options also.
Company should start advertising at least on Facebook, Twitter, and
Instagram aggressively.
Products updated from a particular shops need variety if possible.(for
example: Hemant Traders have only Temple as its product in different sizes
and different prices.)

MITSOB Interns at Oyecity.com


In a startup company learning is much more higher than earning for an
intern.

Thank You!!!