Emerging Online Retail Trends

Smartphones, Tablets and Internet...all of them are changing the consumer’s shopping experience for ever. As gadgets find more takers, shopping through devices is hitting new highs. While 17% of the U.S. tablet users check out products through their devices on a daily basis, close to 13% of the U.K.’s smartphone users have started doing a real-time price comparison on their handsets. And 36% of smartphone users in the U.S. buy products through their phones while present at stores.

Phone shopping on the rise

A survey conducted on UK-based consumers, who use smartphones, found that the most common use is to find out a store location, while taking a picture of the product remained the second most popular retail-related activity performed on smartphones. A look at the top 10 activities indicates that users are increasingly using their smartphones to gather information and key details of products before purchasing products and services. This is evident from the fact that activities like contacting friends and family via text, comparing prices and finding best buying deals via smartphones are on the rise.

Using tablets for shopping

Nearly half of the tablet owners in the U.S. made a purchase on their tablet indicating the growing importance of this media channel to the e-commerce market. For that matter, tablet users exhibited considerable use of their devices through out the purchasing process. While 56% looked up for product and price information for a specific store, close to 54% read consumer reviews and ratings before they purchased. Considering the increasing use of tablets, for retail brands, the platform may soon become a very critical part of their comprehensive digital marketing strategy.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2012
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School
Arindam Chaudhuri
Rajita Chaudhuri
Planman Consulting
IIPM in the league of best management institutes of India.....IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
Planman Technologies
IIPM Contact Info
IIPM History
IIPM Think Tank
IIPM Infrastructure
IIPM Info
IIPM: Selection Process
IIPM: Research and Publications
IIPM MBA Institute India

How Customers Influence the Evolution of New Products

Innovation is happening all around. But companies that are careful in understanding how consumers use a particular product are the ones which succeed in the long run.

How customers use a technology generates important information about its performance, design, and operational characteristics. As customers began to use the automobile in hilly and wet terrains, for example, they learned about issues with waterproofing and engine power. What customers learn plays an important role in the technological development of the product.

However, customers may use the technology in different ways. Previous research observed that urban customers used the car primarily for transportation, but some farmers used it as a stationary source of power on the farm. Often, these various applications converge to a dominant use of the technology – transportation still is the primary use of automobiles. Nevertheless, variation and dominance in use influence what is learned and expected of the technology, influencing subsequent technological changes.

Prevailing theories on innovation and industry change explain technological development as an evolutionary process in which certain technological designs get selected and retained. Early on in the automobile industry there were several different engine designs, but the combustible engine emerged as the dominant design within the industry. The selection and retention of certain technological designs significantly impacts competition within the industry and influences which companies thrive or fail. However, these theories focus on the technological development within an industry without paying much attention to the learning processes associated with customers applying the technology.

In my research titled “Dominant Use, Technology, and Industry Evolution,” I consider the role customer learning plays in this evolutionary process, in particular, the effects of variation or dominance in use. Establishing a dominant use during the early introduction of a technology helps establish its agenda and stimulates industry growth. If the dominant use persists, it further reinforces the technological standard. However, extended use of a technology can facilitate customers learning new uses that change how they evaluate it, leading to new market opportunities. Finally, the competitive impact of a radical new technology depends in part on how customers actually use it. If customers use the new technology as they did the old, then established firms have an advantage even if they have difficulties developing the new technology.

To illustrate his point, I extensively analyse the history of how the manufacturing industry used manufacturing planning software – applications that help these firms plan and manage the production of their products. Records of meetings of industry professionals and contemporary surveys, as well as data from industry analysts, software firms, and consultants, makes a case for why competition within industries like software is best explained by looking more broadly at how customers actually use the products.

Dominant Use and Software Industry Growth

The manufacturing industry’s use of planning software can be divided into three evolutionary periods: 1954 to the 1970s, when software was first introduced and culminated with Material Requirements Planning (MRP) becoming the dominant use; the 1980s, when manufacturers expanded their use; and the early 1990s, when a radical technological change occurred and Enterprise Resource Planning (ERP) emerged as a dominant new use.

When the computer was commercially introduced, large manufacturers were some of its earliest adopters. To make these machines useful, they developed many different software applications, including manufacturing-oriented applications. These early adopters were concerned about managers thinking that these programmes would replace them, so they purposely focused on automating existing routine tasks. General Electric’s well-publicised implementation at its Major Appliance plant in Louisville, Kentucky, in 1954 exemplified this perspective – it focused on “eliminating the drudgery of office work” and avoided automating managerial decision processes in fear that the manager would “throw his hands up in despair.”

Surveys during this time indicate that manufacturers implemented a wide variety of software applications, ranging from inventory control to machine planning to production planning systems. By the early 1970s, however, this variation started converging toward the dominant use of MRP, largely because of the efforts of the “MRP Crusade” by the American Production and Inventory Control Society. MRP represented a new methodology to manage inventory requirements, and the software systems integrated managerial decision-making with the routine tasks. By 1975, it was estimated that 700 manufacturing firms had implemented an MRP solution.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2012

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School
Arindam Chaudhuri
Rajita Chaudhuri
Planman Consulting
IIPM in the league of best management institutes of India.....IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
Planman Technologies
IIPM Contact Info
IIPM History
IIPM Think Tank
IIPM Infrastructure
IIPM Info
IIPM: Selection Process
IIPM: Research and Publications
IIPM MBA Institute India

Advertising - Hotspots and Rankings - They came, we saw and everybody reviewed!

An ad is a product of painstaking craftsmanship. Various elements, ranging from positioning of the product, clarity of the idea behind the product to visibility of the brand, its persona and the power of communication have to be intelligently weaved together. But while some ads manage to rewrite preset creative benchmarks, some go the wrong way, fall by the side and fail to excite viewers. In this section, we review three ads that came out tops, for the right and also for the wrong reasons.

Almost there

Advertiser: Indigo Airlines
Baseline: On time
Agency: Wieden+Kennedy

4Ps B&M Take: To be honest, we really didn’t want this ad to be on this side of the table. Having fawned over it for a week, not ranking it as one of the top three hurts us. But there is a reason behind this decision; we might like the creative, but then it has to also be ranked from the perspective of how well it was comprehended by the target audience. You see, for the whole first week we coincidentally saw this ad on muted TV sets (in our office), thus getting attracted by the visuals and visuals alone; with which we still don’t find any fault. In fact, the concept of a flight crew doing a charged up Broadway musical to explain the vision and mission of the airline along with its working procedure, advantages, expertise and a subtle brief on the services that it provides makes for a very interesting watch (but of course, copied from the Facebook ad). Wieden has adopted a very fresh approach to airline advertising; moving away from the industry standard of showcasing the aircraft fleet with the crew donning a very professional and boring run of the mill demeanor. Not only is it drawing everybody’s attention, but it has also managed to reach out to its target audience – the well bred frequent fliers – and convince them to at least give them a chance. It scores huge on brand recall; but some would argue that the commercial is a tad too long. And if you happen to be in front of the TV for more than an hour a day, chances are you would have seen this commercial several times and that is when it starts to lose its appeal – although the girls featured look as attractive the nth time as they did the first time (duh! but yes, we love them!). Add to it the fact that there’s practically no levity. Outstanding cinematography, super positioning, zero humour, and they missed the top 3!

Watch out for that rock

Advertiser: Big Rock
Baseline: Fashion, Budget Shaadi
Agency: Ideas@Work]

4Ps B&M Take: Our views on this advertisement are not a result of an urge to whine. The complaints are inspired solely by the advertisement. Starting with a bad concept followed by poor execution, the ad is further marred by a poor sense of humour/unappealing cast. No matter how hard you try, it becomes extremely difficult to justify the logic behind this commercial. Why would you be interested in watching someone styling the chest hair of his customers on TV, no matter how imaginative the designs might be? And just how does it connect to the brand to be promoted? For almost the entire campaign, you are left wondering about the purpose of the advertisement, if not to sell some new form of hair trimmers that style only your chest hair. The only way the ad connects with Big Rock is that the viewer is hit by a big rock when he learns of the true intent and purpose of the advertisement. Equally bad is it’s sister commercial themed on budget shaadi. In this one, you can’t even comprehend that there is a budget shaadi going on, let alone realise why such a wedding was depicted. The idea of showing weird businesses is really to convince viewers that any business can work with a website (like it did earlier). But chances are high that you will change the channel before the message can be driven home.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School
Arindam Chaudhuri
Rajita Chaudhuri
Planman Consulting
IIPM in the league of best management institutes of India.....
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
Planman Technologies
IIPM Contact Info
IIPM History
IIPM Think Tank
IIPM Infrastructure
IIPM Info
IIPM: Selection Process
IIPM: Research and Publications
IIPM MBA Institute India

MARUTI AND VW TWEEK SMS MARKETING WITH AN INTERACTIVE TINGE TO MAKE IT WORK BETTER

SMS Marketing is enjoying its time in the sun for indian firms. But the Dark ‘Spam’ Clouds on the Horizon Persist

There is an obscenely high probability that the last text message you received, which purported to market some product or service for your brilliant benefit, was summarily deleted from your mobile’s inbox within two seconds of your reading the initial lines. If the response rates are so low, how is it that companies – and leading ones for that – are still opting for sms marketing? Does sms marketing hold promise as a relevant marketing tool?

“Cost is one big factor which is attracting many companies to use SMS as a medium to connect with the consumer,” says Monik Mehra, founder of My SMS Mantra, a New Delhi based sms list broking company, which provides sms push engines for companies like Cantabil India. List brokers like My SMS Mantra have now mushroomed like nobody’s business as they have large verifiable databases of mobile subscribers. The better ones even have demographic data on such subscribers, making the SMS marketing engine more target effective.

Irrespective, with the increasing use of this medium by the real estate, retail and stock broking industries, SMS Marketing has taken in the tinge of spam marketing. “Often, the consumers simply delete the text even without reading,” shares Anuj Kumar, ED-South Asia at Affle, one of the leading mobile media and marketing solutions companies.

Industry watchers expect the spam trend to continue, more so as demographic filtering of the subscriber data is not of the highest quality. The realty sector has been one of the perpetrators of this spam issue. Accepts Ravi Saund, Head-Business Development, CHD Developers, “Out of the total texts we send, only 10% consumers revert and out of those, close to 10% convert into a final sales,” adding that people have clearly started getting irritated with the concept of SMS marketing. Saund laments the absence of demographic profiling, mentioning how globally, database selling is such a huge business proposition because of the simple fact that the data is available based on various parameters. “India too, will have such a scenario, but only in years to come,” says Saund.

Still, several players from the automobile industry, like Hyundai, Tata Motors, Volkswagen, Maruti Suzuki etc back SMS marketing to the hilt as even one conversion is a bonus for them. While Volkswagen used SMS marketing to increase awareness about the Polo on a huge scale, market leader Maruti Suzuki has also started marketing via texts recently. “The response of SMS marketing activities have been better than expected. In fact, it can be explained by the high cell phone penetration and its frequent usage for all kind of information and interaction,” says Lutz Kothe, CGM – Marketing, Volkswagen Group Sales India. Maruti Suzuki on its part launched an SMS contest for Eeco, which generated a record 2.4 lakh entries. “As it offers a decent cost-value relationship, we also use it for our after sales services,” mentions Shashank Srivastava, CGM – Marketing, Maruti Suzuki India.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2011.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School
Arindam Chaudhuri
Rajita Chaudhuri
Planman Consulting

IIPM in the league of best management institutes of India.....
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management