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    JABONG CASE STUDY - Abhishek Reddy (2001033)

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    Sai Deekshith
    Jabong should focus on attracting premium global and Indian brands to expand its customer base and increase sales. Partnering with Puma allowed Jabong to utilize Puma's inventory model and premium brand to improve conversion rates and attract more customers. While Puma's online sales through Jabong are a small percentage compared to retail stores, exclusive discounts online through Jabong could continue attracting premium customers.

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    JABONG CASE STUDY - Abhishek Reddy (2001033)

    Uploaded by

    Sai Deekshith
    41 views2 pages
    Jabong should focus on attracting premium global and Indian brands to expand its customer base and increase sales. Partnering with Puma allowed Jabong to utilize Puma's inventory model and premium brand to improve conversion rates and attract more customers. While Puma's online sales through Jabong are a small percentage compared to retail stores, exclusive discounts online through Jabong could continue attracting premium customers.

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    JABONG CASE STUDY- Abhishek Reddy(2001033)

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    Jabong should focus on attracting premium global and Indian brands to expand its customer base and increase sales. Partnering with Puma allowed Jabong to utilize Puma's inventory model and premium brand to improve conversion rates and attract more customers. While Puma's online sales through Jabong are a small percentage compared to retail stores, exclusive discounts online through Jabong could continue attracting premium customers.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    41 views2 pages

    JABONG CASE STUDY - Abhishek Reddy (2001033)

    Uploaded by

    Sai Deekshith
    Jabong should focus on attracting premium global and Indian brands to expand its customer base and increase sales. Partnering with Puma allowed Jabong to utilize Puma's inventory model and premium brand to improve conversion rates and attract more customers. While Puma's online sales through Jabong are a small percentage compared to retail stores, exclusive discounts online through Jabong could continue attracting premium customers.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 2

    JABONG CASE STUDY

    1.) According to my point of view, Jabong should focus on the customer base primarily
    as focusing on customer base with eventually lead to sales and generate profits and
    attract investors. In order to attract its target audience Jabong should focus on
    premium global and Indian brands with exclusive lines and discounts. From exhibit 7,
    we can see that in the financial year 2013/14, the number of transactions was 8.7
    million. This increased the gross profit for Jabong by 31.42 $Million (from -5.26 to
    26.16). From exhibit 3, This help their customers an opportunity to acquire global
    brands at less price which helps in expanding jabong’s customer base significantly.

    2.) Puma gained its market share of 20% by 2013 by utilizing the opportunity of fall of
    reebok market share as Puma partnered with major E-commerce companies. Puma
    utilized the Jabong inventory model to deliver product portfolios and to sell their
    premium products along with providing higher margins to get a better visibility in
    their platform.
    In terms of jabong business, they utilised PUMA brand to get better conversion rate
    of visitors to customers.
    Puma’s new discount policy will help in attracting premium customers along with
    reach and target audience for jabong as jabong helped in delivering large sales
    compared to other e-commerce platforms.

    3.) Pumas’ decision on footwear channel in India in would definitely not have much
    impact in long term as given in Exhibit 5 the retail stores of PUMA account for 64% of
    sales whereas online e commerce platforms account for only about 16% which helps
    in understanding the Indian consumer behaviour and preferred channel to buy
    footwear.

    4.) Jabong’s value proposition to its customers were: 1) on time delivery 2) after sales
    service 3) competitive prices
    To its suppliers: 1) Premium prices to gain better margins 2) product visibility and
    brand marketing

    The contradiction of value proposition between its customer who wishes to buy
    exclusive products at discount prices in contrast with suppliers who wishes to stick
    with premium prices can resolved by maintain “exclusive sale” which wouldn’t be
    available in other e-commerce platforms.

    5.) If Jabong continues with the core articles from the product list then as there are no
    discounts customers will be showing less interest in the product thus resulting in
    generating less revenue through sales. By adding the SMUs to the list of the core
    articles it is good to have discounted products in availability but those products are
    not likely to be chosen by the customers unless they are offering very high discounts
    which every other store is offering. It is not the best option to be considered and
    hence not to choose this. Asking Puma an exclusive product only for Jabong so that
    the customers will be visiting its site for those products. But as they can’t give a
    maximum discount on those products it will be a loss. The final option he has
    thought of is to shift the inventory model to a marketing model so that they can cut
    the operational cost and also can make a profit margin of 15% as they are converting
    the customers. But as mentioned they will be shifting from one model to another
    model and they will have a disadvantage by losing the bargaining power with the
    other vendors. So, I think the best option will be the third one that is having an
    exclusive product range only for Jabong so that the customers will visit those stores
    for those. And having a maximum discount with Puma applying some promotional
    coupons from Jabong and giving the best deal to the customers which will be
    competitive to other e-commerce websites. This will put Jabong at an advantage.

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