ITM BUSINESS SCHOOL,

NAVI MUMBAI

“To Explore Business opportunities for Volume Based Model of MyDeals247,

especially Schools / Colleges category in Bangalore and its nearby area.”

Faculty Guide: Prepared by:

Dr. Ganesh Raja Kapil Garg

Company Guide: (App id: 2329)

Mr. Shashikant Kabra ITM Business School

INDEX

SL NO. Section: Page No.

1 Title Page 1

2 Certification 3

3 Acknowledgement 4

4 Executive Summary 5

5 Overview 6

6 E-Commerce Sites – Comparison Sheet 8

7 Organizational Chart 9

8 Service portfolio 10

9 Micro and macro Environment 13

10 Project Proposals 16

11 Research Design & Methodology 18

12 Responsibilities Undertaken 20

13 Swot anlysis 23

14 Objectives 26

15 Tasks, strategies & Process 27

16 Conclusion 30

17 Recommendations 31

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CERTIFICATION

This is to certify that the Industry Internship project report titled To Explore

Business opportunities for Volume Based Model of MyDeals247, especially

Schools / Colleges category in Bangalore and its nearby area is a bona fide work

carried out by Kapil Garg, a student of PGDM program 2012-14 batch of the

Institute for Technology & Management, Kharghar, Navi Mumbai under my

guidance and direction.

Signature of Guide:

Mr. Shashikant Kabra

VP

Business Development

+91 80500 84444

MyDeals247 eCommerce Pvt. Ltd.

Date:

Place: Bangalore

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ACKNOWLEDGEMENT

I am extremely grateful to Institute for Technology & Management, Navi

Mumbai for having given me the opportunity to undergo a longer duration of

Summer Internship than the regular.

Dr. Ganesh Raja played an extremely important role in making my project

easier by guiding me whenever required and following me up with necessary

inputs every now and then.

Mr. Shashikant Kabra, VP, MyDeals247 eCommerce Pvt. Ltd. Bangalore,

being my chief mentor taught me a whole lot of things that I had never even

thought about before entering the Corporate. His assignments and tasks were of

utmost importance to me in gathering quality knowledge and experience.

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EXECUTIVE SUMMARY

As E-Commerce has become an important tool for Day to Day trading. Many

organizations are now shifting to this trend so as to attract more customers. But

due to hackers, cyber crime and others had put an question mark on its

reliability. So it was a big challenge for new entrants to win the confidence of

customer in their business model and their working. MyDeals247 recognized

this gap and to promote and at the same time gain profit started the offline

business for volume based deals.

Now when I joined the company as intern their was an untouched category as

Schools and Colleges where they need to focused but due to some uncontrollable

circumstances unable to do in the recent past. So I took the responsibility for the

same.

I was required to decide the target market in Bangalore and nearby areas for our

products, cold calling, set the meetings with the Purchase managers and owners

of schools or colleges and meet them regardingg our company and our

products.My project consists of an initial analysis by making some calls and see

the response as it was an hit n trail method of getting the leads.

I was given a complete details of some of our products, their pricing which they

had traded for in past and thought that their might some requirement occcur for

the same in schools and colleges too. I visited many Schools across

the Bangalore to interact with the concern persons.

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AN OVERVIEW OF THE COMPANY

Brief About Company:-

MyDeals247.com is the world’s first PERSONALIZED ecommerce

platform

Totally personalized to the customer needs in the local cities and across

the nationwide

One stop solution for the customer needs – buy / sell products/services,

volume based discounts, and creates word-of-mouth marketing through

personalized Ads

Promotes the products or services very effectively

Attracts new customers in no time

About Mydeals247

Today's most E-commerce sites routinely experience transaction closure rates in

the range of 3 to 5 percent of the total visitors - the primary reason for the

failure is most of the sites are too generic - no personalization whatsoever.

Most shoppers spend a significant amount of time by going through multiple

websites and related comparison websites and still they cannot make a quick

decision - average time to make a decision to buy any product online is between

2 hours to a week - also, they confine to a couple of choices.

Internet users want some of these aspects today: personalized dashboards based

on their current needs (what they want, when they want, where they want)

pretty much real-time. MyDeals247.com offers a revolutionary idea in the e-

commerce industry which identifies individual's preferences, interests and then

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delivers on-the-fly adjustments that make each customer feel the site was built

just for him or her. It's pretty much like having your own e-commerce or online

store to fulfill your own needs on daily basis. MyDeals247 brings the lowest

offers from the sellers based on buyer’s request in the local markets - all the

bids from sellers takes place on real time basis and are very much alive. Also,

MyDeals247.com provides the current need analytics (on daily basis) to the

sellers in the local markets.

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E - Commerce Sites - Comparison   Sheet

Business Model Real-Time Offers?

eBay

Auction-Based Deals

Fixed Price

C2C; B2C; B2B;

NO

AmazonFixed Price

C2C; B2C; B2B(small %)NO

GroupON

Voucher Model

Fixed Price

Daily Deals (City Based)

Selling Products (recently)

B2C

NO

Google

Offers

Daily Deals (Very few cities)

Fixed Price

B2C

NO

Alibaba B2B NO

MyDeals247

Real-Time eCommerce Platform offers dynamic prices by

creating competition among the sellers - only top5 best

offers shown to the consumer.

Volume-Based Deals (Buy more, save BIG) - true

alternative for gift card sharing.

Totally personalized experience to the consumer

No Listing Fee or hidden charges (Charges only the

success fee from seller)

Online and Off-line (rural markets first time ever)

C2C; B2C; B2B

Promote (through personalized Ads) and sell

YES

Totally dynamic price offers

based

on the consumer request at

that particular point of time.

A huge opportunity for the

consumer to get the

best offers when compared

to the traditional fixed price

model.

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Organizational Chart

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Venu G. Somineni(CEO)

Marketing & Sales

Ravi Kuman s.(Director)

Sujana B.(Sr. Manager)

(Rural & online

marketing)

Shashikant Kabra(Vice President)

Aneesh Sharma

(Sr. BDM)(Volume

Sales)

Interns

Sandeep Raju(Sr. BDM)Paid Ads

Interns

Technical Department

Gautam Nath(Ex. Manager)

(Digital Marketing)

Interns

Ram(IT Head)

(PHP Developer & IT)

Finance

G. Valentine(Accounts

Dept. Head)

Interns

SERVICE PORTFOLIO

Like e-commerce companies, Mydeals247 have different kind of revenue

models. So basically it has 3 Business model:-

a) A Real-Time Marketplace (Buy / Sell Model)

It is an online buying and selling model and that why it is called as e-

Commerce Company which is completely real time market place as it is

totally dependent on providing value to customer in terms of price range

with their specific product.

Company work on the policy of “Zero inventories and zero operating

cost”.

Simply customer posts their requirements and their after a waiting time

allotted to customer and meanwhile the requirement is being processed at

back end office and the best 5 choices are provided to customer with

deadline time and if demand is fulfilled by website the goods are

delivered to consumer destination by the seller directly.

Cost Structure: – Here company work on approximately 10-20% margin

depending upon who will get the shipping cost.

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b) Volume Based Discounts

This model is an offline business model which is also a profitable one.

Strategy adopted by company – “Buy more, save more”.

Deals with only 5 star rated retailers.

Categories involve - general house-hold items, entertainment, education,

local events, amusement parks, professional training, and services

companies.

Here company have different category like Real Estate, Schools/Colleges,

Boutiques/Spa/Hair Saloon, Hotels etc. So company garbs the

requirements from here having bulk quantity and then delivers the same

with competitive prices in the market.

Cost Structure: - For this category company work on the margin of

approximately 10-15% but the order should be in bulk.

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c) personalized Ad display and ‘Pay Per Lead’ model

Mydeals247 came out with different strategy and innovation in the field

of advertisement as they know that in present scenario Merchants are

worried about their marketing part and want to promote in best way to

attract customers. Though Google adwords have provided them the

opportunities but there are some question marks on their reliability.

There is a large gap between the paid ads/ non-organic results and organic

results. Today also people are following the organic results. That’s why

MyDeals247 came out with personalized Ad format where they showcase

the power of particular organization with their USP directly on their

website.

MyDeals247 worked on improving ROI for the merchants while

displaying the relevant Ads to the consumers based on their interest at

any given point in time.

Process – The merchant, who signs for advertisement, will provide a

video which is posted on Mydeals247 website and some questions are

asked from the customers about the same video.

MyDeals247 ensures that merchant gets the complete database of the

leads that had showed interest in their advertisement and also making

consumers happy by paying them which is entirely different model then

Google adwords.

Cost Structure: - Depending upon the no of questions to be asked by the

merchant the amount is quoted to them.

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Micro and Macro Environment

In order to correctly identify opportunities and monitor threats, the company

must begin with a thorough understanding of the marketing environment in

which the firm operates. The marketing environment consists of all the actors

and forces outside marketing that affect the marketing management’s ability to

develop and maintain successful relationships with its target customers. Though

these factors and forces may vary depending on the specific company and

industrial group, they can generally be divided into broad micro environmental

and macro environmental components.

Micro Environmental Factors:-

MyDeals247 eCommerce Pvt. Ltd. is a small private firm solely owned by Mr.

Venu G. Somneni who function as a CEO of the company, having very small

organization structure, some of micro environmental factors which affects

MyDeals247 are-

1. Organization’s Internal Environment :-

Having a small firm top decision is taken by CEO itself whether it is

financial decision, HR decision or marketing decision, marketing and

sales executive work closely with the MD of the company, so the

decision time is very short and didn’t follow any hierarchy.

All the employees working in this organization only think “consumer” to

become it successful, the goal is to provide superior customer value and

satisfaction.

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2. Suppliers :-

One of the key successes for this company is its suppliers all around India

which provides resource needed by the company to produce goods and

services; they are the important link in the company’s overall customer

“value delivery” system. E.g. suppliers of steel from Jindal steels etc.

3. Marketing Channels :-

Company has a good team for Marketing & Sales Representative headed

by VP of the company Mr. Shashikant Kabra who promotes and sell the

products depending upon the requirements received.

4. Customer Markets :-

Company has a large customer market which will help them to grow

rapidly like they have-

Consumer markets (individuals and households that buy goods

and services for personal consumption) through website.

Business markets (Various Industries and firm) through Volume

based deals.

Reseller markets (One who requires service and maintenance).

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Macro Environmental Factors:-

E-Commerce Company affects by various macro environmental factors some

are as follow-

1. Demographic:-

Company have a good presence in different state in India which help

them to cover a large consumer market, they have presence in almost

every state through online business.

Also they are targeting international market.

2. Cultural Environment:-

Today society is more knowledgeable and aware about eCommerce

Company and their benefits.

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PROJECT PROPOSAL

Project Title:-

“To Explore Business opportunities for Volume Based Model of MyDeals247,

especially Schools / Colleges category in Bangalore and its nearby area.”

Statement of the Problem:-

Today e-Commerce is the need for every consumer. And in current scenario

many terminologies had been added to this service like of extended hours,

digital marketing etc. But many companies adding and shutting down to this era

frequently has put some question mark on its reliability. And it is a great

challenge for the new entrants to prove their reliability and at the same time also

attract more customers to their website.

But the main problem is that knowledge about these companies and their

working in India is not up to mark, and even there are many prospect buyers

available in India who want to purchase but due to the lack of awareness among

people the company is unable to approach them.

For the same reason MyDeals247 e-Commerce Pvt. Ltd. started a new model

for volume sales or offline business to increase the awareness among the

people.

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Objective of the Project:-

As the project was to explore business opportunities for volume based model

especially schools/colleges category in Bangalore and nearby area. Along with

it I was also having the responsibility to see how market react for this business

model and where the acceptance of model is more, which area of market will

help them to improve target sales. This will give me ample opportunity to

understand how to find new and target market for certain type of products,

buying pattern / behavior of the customers.

Why this Project?

There exists a high demand from Schools & Colleges for shoes, stationery,

uniforms, Laptops, Projectors etc. So it is the best selling period for any

company that provides the above mentioned items. So this will help me in

enhancing my skills on every aspect of sales - Lead Generation, Quotation

Making, Vendor Management etc.

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Research Design & Methodology

Research Design Used to Study Market potential:-

1. Secondary research

Secondary research such as data available on website about schools and

colleges, the strength of the students helped me to target new customer. We

also used Snow Ball Sampling.

We also use secondary data to make new clients.

2. Primary Research

We used primary research such as finding requirements for schools and

colleges by making appointments and making meetings with the Purchase

Manager or Owner or Principal in Bangalore.

Methodology used to get prospect Buyers:-

1. Sales Funnel

With the idea of the Sales Funnel, I use the metaphor of a funnel (wide at the

top, narrow at the bottom) to monitor the sales process.

At the top of the funnel I have "unqualified prospects" – the prospects who I

think might need my product or service, but to whom I never spoken. At the

bottom of the funnel, I have people who had provided me the requirements

and quotations for the same had been provided to them and now waiting for

their approval so as to deliver the products.

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Analysis of the information:-

From the data collected till now I understand that it is little bit difficult to

penetrate in existing market, because consumer is very price sensitive.

Acceptance of your proposal will only occur if we quote them the best

competitive prices in the market. There are a lot of negotiations going between

the seller and the consumers.

Target Market:-

From the information analyses we got to know to whom we have to target and

so we made different category or segments of schools as –

1. Kinder garden

2. Montessori

3. International Schools

4. Trusts

5. School Chains such as Vibgyor High School

And for colleges as:-

1. MBA colleges

2. Engineering colleges

3. Universities

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Responsibilties Undertaken

a) Creating awareness among the people about mydeals247 and its offerings

To increase the traffic on our website, we will be creating awareness among the

users through social media marketing. Facebook has been our major tool, as

most of the people who surf internet have their account in Facebook. We will be

conducting online contest, sharing eye catchy posts etc on Facebook to create

awareness about Mydeals247.

b) Looking for potential clients or generating leads for mydeals247

Mydeals247 maintains a database of its customers who can become its

consumers. For Volume based model we will be targeting all schools including

Montessori, Day care, kinder garden etc. and colleges include MBA, BBA and

Engineering etc.

c) Meeting clients, understanding their requirements

Here we also have to meet the client to understand their requirement, deadline

to deliver the order and also look after the most important part i.e. mode of

payment. Because in Schools/ Colleges category maximum transactions are

made on credit basis so likewise we have to process further.

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d) Searching vendors for the requirements, negotiating and finding best price

in market

After getting the requirements, next task will be to find vendor that too the

person giving lowest price, because company work on motto of

“Providing Best Price in Market”, “Zero Inventory, Zero Operating Cost”

So, for single requirements we have to search many vendors and then finding

the least price also keeping in mind what mode of payment is there with the

client.

e) Preparing quotations for clients and at same time also preparing Purchase

Order

After getting the price from vendor, difficult task will be to include companies

margin and that too such as after including companies profit it should not

exceed market price. The prepared quotations are sent to clients.

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Findings:-

More schools/colleges are bent towards our model due to competitive

prices and more over we were one point solution provider.

Kinder garden and Montessori were more inclined towards these models

as they wanted to reduce costs.

In colleges category MBA colleges were more inclined as they have more

needs of Laptops/ Tabs.

Difficulties Faced:-

Though the response was good from the clients but if the

Schools/Colleges category was started form Jan then we would have got

many more clients.

Many a time credit issue was there with the clients as in schools and

colleges many a times business is done on credit basis.

Findings vendors was a difficult task and then negotiations were bit

hectic.

Language issue was also there during traveling to the client’s destination

and many schools which we approached out of Bangalore.

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SWOT Analysis

Strength:-

Strong Business Model with ample experience of CEO in international

market.

One time solution providers for every category in Offline business.

Cost effective with hundreds of vendors of any category in the market.

Direct communication with the consumers and sellers.

Excellent database of users with thousands of them making login every

day.

Easily availability of products from the market with transport facility.

No inventory so no operating cost.

Global location with their server in Singapore and USA.

24 x 7 Hours service with maximum purchase in extended hours.

Lower transaction costs.

Faster buying procedure with direct negotiations with the suppliers.

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Weakness:-

Long Delivery Time to far away distances.

Lack of Organizational Structure.

Limited man power.

Limited exposure.

Lesser reliability in market as new entrants.

Lower influence in outer regions of Karnataka.

Hit and trail method are adopted for finding the leads.

No credit term trading due to which lost many consumers.

Low Alaska and Google Page Ranking.

Many broken link.

Some categories are still missing for online purchase.

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Opportunities:-

Global Expansion with new server recently launched in Singapore.

High Availability ( 24 x 7 hours a week )

Cut down on local competition

Advertising model which is day today need for every merchant.

Can open chains/franchise in other metropolitan including Mumbai,

Kolkata.

Can start credit terms for volume based deals which attract many

consumers.

Threats:-

Models can be easily copied by competitors.

Fraud

Changes in environment, law and regulations

Privacy concerns.

Heavy traffic can shut down the website.

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OBJECTIVES

Executive training at MyDeals247 e-Commerce Pvt. Ltd. Is based on following principles:-

Creating awareness among the people about mydeals247 and its

offerings.

To work on the principles of segmentation , targeting and positioning in 

marketing.

Looking for potential clients or generating leads for mydeals247.

Meeting clients and understanding their requirements.

Searching vendors for the requirements, negotiating and finding best

price in market.

Preparing quotations for clients and at the same time preparing Purchase

Order as well.

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TASKS

Following tasks were assigned by the company guide:-

Basically field work and direct marketing was to be done, so that we get a 

glimpse of a real life practical knowledge.

A step wise approach is to be made on daily basis to approach the

customer and makinng him a prospect out of the suspect.

Cold canvassing, cold calling, fixing appointments with them, give

presentations, follow-ups, handling their objective and queries forms part

of this task process.

Moreover the lead generation process along with their references is being

crucially taken into consideration while forming our tasks lists for the

week.

After that,conforming their requirements, working on their quotations

from the vendors and most importantly a constant follow up with every

one of them makes our task a solid one.

As working in a team and being a team leader, keeping morals high for

yourself and others in a group.

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TARGETS

I was provided with the target of 3 lacs for 2.5 months and 10 lacs for the team.

STRATEGIES

For achieving this target of 2.5 lacs various strategies were made by me for eg:-

Actually our Company is a facility providers, whatever is the bulk

requirement is they provide that at best price in the market. So I

differentiated the schools and colleges as mentioned above.

As a team lead I distributed different category to different person with

different area so that no overlapping occurs.

After that we made small weekly targets of at least 2 meeting for each

person.

After getting the requirement, that person is eliminated from the queue of

arranging the meetings and then he only focuses on closure of the deals.

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PROCESS

For achieving the above said tasks I was constanly working on building new

strategies:-

I started with making cold calls and arranging meetings with the customer

and also tries to know that what they are looking for exactly.

After getting insight I agin do a pre sale preparation prior to meeting the

client i.e. gathering information about the school and keep an foresight

what requirements we can get from them.

On reaching customer ,  I usually greet them very politely with a smile for

giving their valuable time.

Then I proceed with giving brief overview of my company and our

business model.

After that to keep him /her engage in discussion I usaully give some live

example to explain our business model.

When they are in situation to understand our model, I ask them for their

requirements.

Then I get the deadline time also within which I have to send them the

quotations and also discuss about the payment terms such as RTGS.

Then after coming back to office I search for the local vendors and also

inform our another office situated in Nellore, Andra Pradesh.

After getting the vendors and understand their payment terms I usually

transfer the same to clients adding some profit of the company.

After getting approval about the quotations goods are delivered.

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Conclusion

As the above discussion shows there is a potential market for schools and

colleges category in Bangalore, which recognize the big improvement within

few years and expecting further developments with upcoming International

schools, the future looks very “Promising” or very “Bright” for the company.

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Recomendations

Approach the clients for schools and colleges in starting months of the

year like Jan- Feb.

Increase the reliability among the vendors so can get the credit and that

credit terms can be passed to clients.

Snowball sampling can help a lot in contacting the clients and making

relationship.

Vendor’s database should be managed properly.

Need to increase Alaska and Google page ranking to increase reliability

among the customers.

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