Internet Space in India

E-Commerce and M-Commerce

Internet in India
Internet in India was established as ERNET.

A joint undertaking of the Department of Electronics (DOE) of

the Government of India, and the United Nations Development
Program (UNDP), which provides technical assistance to
developing nations.

ERNET is one of the most successful operations that UNDP has

funded.

On August 15th 1995, Videsh Sanchar Nigam Limited (VSNL) --

launched the Gateway Internet Access Service (GIAS).
6 nodes were established at Mumbai, Delhi, Madras,
Calcutta, Bangalore and Pune.
Was meant for only the educational and research
communities.

In the mid 2000 government monopoly was largely over.

Many small to large ISP have set up shop triggering at price

war and improvement of service.

The governments, both State and Central started pushing

for growth in the Internet sector especially in small towns.
Internet becomes the new buzzword
The many small tutorial colleges pushed computer software
courses of variable quality using Net related content.  

The Internet represented the new wealth frontier for the

middle classes –
a good salary and a clean job,
and for a few,
the chance to go abroad.
Internet in Business Scenario
 B2B – People were indifferent. But it showed a favourable increase.

 Email and web sites became available 24 hours a day.  

 For the large and growing software industry, the Internet offers the ability
to reach a client, respond to problems on a real time basis, and transfer
products instantly with the click of a mouse.  

 India exports billions of dollars of software annually, and the industry is

growing rapidly.  

 The Internet represents so much potential for India, and the demand for
efficient Internet infrastructure is growing rapidly.  
World Bank Report
Internet Usage and Population Statistics:
 Year Users Population %Pen.

 1998 1,400,000 1,094,870,677 0.1%

 1999 2,800,000 1,094,870,677 0.3%
 2000 5,500,000 1,094,870,677 0.5%
 2001 7,000,000 1,094,870,677 0.7%
 2002 16,500,000 1,094,870,677 1.6%
 2003 22,500,000 1,094,870,677 2.1%
 2004 39,200.000 1,094,870,677 3.6%
 2005 50,600,000 1,112,225,812 4.5%
 2006 40,000,000 1,112,225,812 3.6%
 2007 42,000,000 1,129,667,528 3.7%
 2009 81,000,000 1,156,897,766 7.0%
 2010 100,000,000 1,173,108,018 8.5%
What is Internet Marketing?
Internet marketing is using the Internet to do
one or more of the following:

Communicate a company's message about itself, its

products, or its services.

Conduct research as to the nature (demographics,

preferences, and needs) of existing and potential customers.

Sell goods, services, or advertising space over the Internet.

Internet Marketing
E-mail marketing
Pay per click advertising
Banner Ads
Search Engine Markerting
Blog Marketing
Article Marketing
Viral Marketing
Deal Sites
Delhi
Pay Rs 1800 for Rs 3000 Worth Package of 2
Days and 1 Night Stay at Elephant Brooks Resort
Started by Dealer January 28

Chennai
Rs 199 for 400 Worth of Food at Cool Nature Veg
Restaurant
Started by DealerFebruary 3Chennai
Top deal sites
Vertical Segments
All Industries can seek benefit from SMS.
and enhance daily communications and
operational needs.
Some of them are as follows :-
Benefits of SMS Marketing for Real Estate Industry:-

Through the use of SMS marketing and mobile advertising, the real estate agents can
increase their marketing effectiveness and reduce their efforts at the same time. With the
help of mobile short codes and keywords, real estate agents can use this technology to
deliver comprehensive data about their properties directly to the clients.
 This system of advertising works always for the business regardless of the time.
 The system can deliver a link to the full multi listing services.
 It is far more cost effective than print advertisement.
 Instant changes can be made to the response message.
 Collects the cell phone number of every customer so that they can reply to them in
person.
 Information about the property is available 24/7.
 It collects house seekers of all kinds.
 It is inexpensive, effective information delivery system.
 Update of information like price changes can be done immediately instead of reprinting
brochures and saves money on copying brochures.
Example:-

Available 2 BHK flat for sale on Ground Floor, area 800

sq feet at Rs 22.5 Lacs in Shakti Khand -3.

3 BHK flat with area 968 sq feet on First Floor at Gaur

Green city.
The benefits of the SMS marketing for the FMCG industry are as follows:

 Increase of sales and generate repeated sales.

 Highly personalized messages can be sent directly to the target customers.
 In FMCG industry SMS marketing is used to send important information to
key customers or suppliers of the raw materials.
 Mobile messaging helps FMCG industry in providing value added services at a
marginal cost.
 Automatic relay of critical information is possible through mobile marketing.
 With the help of the mobile marketing and advertising business people can
communicate to almost everybody and segment consumer groups better.
 The Bulk SMS Services allows corporate clients to submit bulk SMS from any
web server.
Cont…

With the SMS marketing a Company can inform the distributors

about
 the launch of new products,
 changes in the pricing and specifications,
 Information about the shipping of materials.
And the company can maintain CRM by sending wishes on
birthdays, anniversaries and on special days.
It can be used to inform consumers about special discounts and
offers, and also send SMS invitations to customer about the
product launches and events organized by the company.
SMS solutions for retail stores and supermarkets :- ( A two way communication )

On part of retailer:-
Send promotions and announcements in SMS
Reward customer loyalty with SMS vouchers
Send specific offers for targeted consumers in SMS
coupans.
Send delivery notifications about the status of the
ordered product
Send discounts vouchers
send reminders
Launch quizzes and SMS games
Cont…

Customers can send you SMS messages to a specified

phone number for:

SMS Order
Stock Enquiry
Reserve goods
Delivery enquiry
Product enquiry
Tata Nano will be available at Big Bazaar :-

This innovative strategy is adopted by TATA Motors, but the

success depends on awareness.

TATA can use sms promotion to bring about this awareness. As

we know that the product focuses on the lower-middle and
middle level income group, the population involved is huge in
number.

Therefore, using sms promotional technique would surely bring a

hype in sales.
 Textile Sector:-
Surat is a Textile City. More than 50 per cent of its population is
connected directly or indirectly with this industry. There are 7 to 8
lacks power looms, 15000 grey brokers, 400 dyeing and printing units,
3000 to 4000 texturising machines, thousands of embroidery related
units. There are ample scope for the products and services to get better
informed.

Though Surat is blessed with strong national market, there has been a
need of a good marketing platform to club all the information which
can be processed and used nationally and internationally.
 Cont…
 A service is an integration of On line and Off line [SMS] application is
required. The user will get connected 24x7 with this integrated
solution. A solution needs to be developed wherein, the manufacturer
( Texturiser, Weaver and Trader ) can place the rate of their products on
line as well as through SMS. The buyers in the same way can access the
rates of manufacturers. 

 Anybody and Everybody in the world can share the information.

 Every registered weaver can be searched in this field. The search

criteria are Name, Area and Quality. Every weaver will get a complete
exposure with its quality specification. Every weaver can place or
modify their rate at any time online or through SMS.
Stock Market :-
Today we see that the number of Investors in stock
market are increasing day by day.
The problem is that people do not have much time
enquiring about the prices of shares either through the
brokers or through internet.
Therefore, updates on hourly basis can be provided to
them through SMS related to rise/fall in Sensex, Nifty.
It can be more personalised if the updates are
available for the portfolio the investor has invested in.
 Using IVR solution in Stock Market :-
 Inbound IVR :-
Inbound IVR, where caller will make a call to the IVR number, can be used to provide the
following updated and real-time information :-

 Portfolio Status:-
A quick information about the current portfolio status is what everyone wants to know
at the end of the day or week to plan about buying or selling shares or doing other stock
trading.

 Quick Stock updates:-

A caller can also hear latest stock exchange index, top performing companies, top loss
making shares etc.

 Call transfer to human agents:-

IVR can provide option to transfer the call to human agent so that it may persuade them
to do any transaction.
 Cont….

Outbound IVR:-
The outbound call can be done when some important announcement or alert has
to be sent to the client. It may be :-

Some sudden fluctuation of share price owned by the client, then IVR can immediately
transfer the call to human agent for further assistance.

In SMS alert or email alert, the client may not open the SMS or email in time which
may cause him to miss the important update.

Outbound IVR is also useful to provide clients with timely stock tips which are very
urgent in nature.

So, if one is in share trading business and if they are not using IVR, then most
probably they are going to lose out to their competitor who is using IVR.
Schools & Educational Institutes
PT Meetings schedule SMS to the parents
Attendance report over the SMS
Exam Schedule
Bus delay
Fee reminder
New Session admission alerts
Competition examination dates alerts
Library management
Time table alerts
Information about guest lectures
Under Graduate students seeking for part time jobs.
BPOs
Pick Up / Cab Driver notification.
Extra curricular activities.
HR activities.
Intranet on SMS.
Banking, Credit Card & Insurance
Companies
New Loan Scheme notification.
Checkbook / statement request.
Balance enquiry.
Priority banking.
Insurance (Life, car, house hold etc.) Premium due
date notifications.
Credit card statement dispatch confirmation along
with the payment reminder.
Confirmation on payment received against credit card.
Travel, tourism & ticketing Industry
Ticket booking / cancellation Confirmation
Fare enquiry
Flight/train delay notifications
Hotel availability/reservation confirmation
Vacations offers
Promotional offers / Package tours.
Visa Information
Hotels, Restaurants, Shopping malls &
Cinema halls
Discount offers
Happy hour promotions
Room/table occupancy status
Pizza Delivery on SMS
Event based promotions
New movies releases
Ticket query and e-tickets reservations (Cinema halls)
Courier Services :-
Packet delivery confirmation
SMS Packet status
Using SMS to know the nearest pickup center
Internal communication between various delivery
centres.
Hospitals and nursing homes :-
Medical Lab reports over the SMS
Blood bank database
Emergency doctors call
Repair & Workshop
Estimate information & Approvals over the SMS
Reminders for service due
Car ready for delivery information
Services issues
 Some
applied cases
and
Success Stories
BII (Bioinformatics Institute of India) :-

 SIPL (Sharvani Info Solutions Pvt. Ltd.) has successfully implemented

Enterprise SMS services at BII.

 BII which is a leader of Pharmaceutical domain distance learning and

e-learning programs is harnessing the power of Enterprise SMS to
remain connected with its learners which are located across 45
countries.

 BII utilizes Trigger messaging services for receipt of fee, making of

dispatch, notices for examinations, birthday wishes etc.

 It also utilizes Push SMS for making admission announcement and

other marketing activities.
Resonance :-

Resonance An All India Leader in the IIT JEE test

preparation is utilizing SIPL SMS services . SMS
module of AADYA-EDUTM ERP+CRM allows
Resonance to send event driven confirmation
messages for payment of fee, enquiry etc.
The Hilton Hotel :-

The Hilton Hotel group has successfully used SMS messaging to

increase guest numbers to its hotels and build customer loyalty.
The hotel sent out important marketing messages such as
specials and promotions directly to its members’ mobile
handsets.

SMS allowed the hotel to get the messages out instantly and at
the most appropriate time of day.
The use of SMS as a direct marketing tool resulted in a 10-25%
uptake of offers sent out by the hotel and proved to be an
integral part its direct marketing and loyalty strategy.
Mc Donalds :-

 Marketing products to mobile phones using SMS messages has

been proven to increase sales, according to a test study carried out
in Sweden.

 Named e-street, the project signed up 2,500 mobile phone-users in

the town of Lulea to receive SMS messages of special offers from 150
local organisations.

 After the volunteers were sent an SMS for a McDonalds burger offer,
25 per cent of the targeted users took up the offer. The McDonalds
in question broke its turnover records during the test period and it
jumped to the top of the McDonalds league table in Sweden.
Trouble TV :-

Trouble TV, a UK teen channel is using an SMS-based

relationship marketing campaign. The campaign
encourages viewers of Trouble TV and visitors to its
web site (www.trouble.co.uk) to send in by text
message, a promotional code that appears on screen
every hour between 12pm and 5pm for a two-week
period. Participants are entered into a daily draw, with
prizes including mobile phones.
AEGON Religare Life Insurance :-

 Lead Management System:

This is the most important system where the company interacts

with prospects. To have better control, prompt action and
outstanding service to the customer, a special logic is introduced
in the Lead Management System, which will automatically
allocate the nearest agent for each Lead. An allocation SMS alert
is dispatched to the agent along with the client details. The leads
can be generated by Web, internal portal, e-mail, SMS, phone or
direct walk-in.
Dunkin Donuts :-
 A two month mobile ad campaign in Italy has resulted in 9% increase in
sales for Dunkin Donuts.
 As a result of SMS based marketing campaign customers were able to get coupons
for Dunkin Donuts by using their mobile handsets to respond to advertisements
displayed on store notice boards, billboards and on radio. By sending a short
message to the published numbers, users receive an immediate reply featuring a
free gift coupon or special offer which was exchanged at local outlets.

 Sales were reportedly up 9% within the first three weeks of the campaign. The key
to success of Dunkin Donuts’ was that it ensured that the power of SMS medium is
put to good use in an ethical way and the one which doesn’t interfere users’ privacy.
 
 Dunkin Donuts’ Italian franchisee GianLuigi Contin says that the SMS marketing
solution has been a positive brand-building experience: “We are directly reaching
our targets with a message they can understand. Cellular coupons are not cute
promotions, rather they are serious marketing tools that not only extend the brand
but are also directed towards the people we want to reach.”
Girlfriend magazine :-

Girlfriend magazine advertised on the web and in their

magazine for girls to register with the Girlfriend VIP Club.
Once a member, they could send free SMS’s from the
website. Every month, a special offer is SMS’d to VIP
members, namely fashion label discounts or one for one
offers on cosmetics. The offer is to take the phone message
to the retailer to claim the discount. 40,000 girls have
provided their mobile numbers, giving an advertising
penetration of 40,000 willing respondents. This permission
to receive aspects provides good retention of the offer.
Plus One :-

Plus One is helping managers be kept informed of when

new marketing initiatives are commencing, on behalf of a
national financial institution.

Every message is unique and details the recipient’s name,

when new TV ads are starting, and detail channel, program
name and time.

This information varies depending on the state and region,

but merging info means unique information can be
delivered to each person.
Nestle :-

Nestle ran a “Grab. Gulp. Win!” promotion for

Nesquik. Entry details were placed on 40 million
bottles of ready-to-drink flavoured milk and
milkshakes in the US, offering text-in giveaways
ranging from a gaming house party to music
downloads.
Indian Railways :-

 Get Indian Railway info via SMS

 Send out an SMS saying TRAIN to the number 676747 or type

RAILWAY and send it to 7886 for information on * your ticket's
PNR status * accomodation available * time table * trains
between two stations * train running status * train delay update.
This SMS enquiry on 676747 is available on Airtel, IDEA, BPL
and the MTNL networks. SMS enquiry on 7886 is available on
Airtel, Hutch, BPL and BSNL networks.
Toyota (India and Japan):-

 Lakozy Toyota, a top automotive dealer based in Mumbai, has

implemented Colosa’s open source business process
management (BPM) software, ProcessMaker, to add visibility
and control over its core management and administrative
processes.

 To date, Lakozy Toyota has automated a number of key

departments and processes with ProcessMaker including: HR
(leave requests, timekeeping forms); admin (requisition); sales
(invoice cancellation and refunds); and accounts (petty cash,
advances and settlements).
 ProcessMaker has also been used to send SMS notifications to
sales and service managers for urgent processes requiring
approval. These are flagged and handled immediately, allowing
Lakozy Toyota to ensure it handles sales and customer requests
as they arise.

 Working with Bista Solutions, Lakozy Toyota now plans to

expand modeling and automation with ProcessMaker to include
all core processes.
 Amar Pawar, COO for Lakozy Toyota explained: “From working
with Toyota Japan, I have a good knowledge and understanding
of business process management. I knew that Lakozy Toyota
needed a solution that was easy-to use, painless to implement,
and would automate everyday processes, increase transparency
and reduce reliance on paper-based trails and processes. Bista
Solutions has been the perfect support and implementation
partner, working with us to deconstruct and understand the
processes behind our business and then to implement the first
phases of ProcessMaker and to ensure we have a roadmap for
how we can further its support of business processes across
departments and our business.”
E-commerce Vs. M-commerce
Electronic commerce (E-commerce) is related to
buying and selling of products and services through
electronic mode, such as Internet.

Mobile Commerce (M-commerce) is related to

transferring or accepting the goods and services by
using the mobile devices to computer networks or vice
versa.
Various industries are affected by E-commerce such as
automation in supply chain and logistics, payment system
in the domestic and international market,software
development companies, group buying, Instant messaging,
Newsgroups, Online banking, shopping order tracking and
Electronic tickets.

Whereas on the other hand, M-commerce includes

industry domains like banking, ticketing, purchase,
browsing, storefront and brokerage, marketing and
advertising, and auction.
Benefits of applying SMS in enterprise scenarios :-
Utilizing SMS as a reliable and wireless communication media provides
several benefits to enterprises with significant impact on business
performance:

 Shorter reaction time in cases of production disturbances, IT downtime, etc.

 Quicker disaster recovery.

 Instant notification of mobile service staff.

 Reduced manpower and smarter dispatching of maintenance personnel.

 Improved quality of service offerings.

 Simpler and interactive enterprise-to-employee and employee-to-employee

communication.
Cont…
 Less device maintenance cost when replacing paging systems 

 No setup costs. You just pay a small fee per SMS.

 No potential buyers remain unhidden.

 Allows high volume outgoing messages.

 Timely to market. (REAL-TIME)

 A platform for banks and cash card operators for securely authenticating
the account holder in interaction with him over mobile.

 Automated process.
 The applications :-

Today most of the mobile applications market is limited to retail

customers.

About 11–13 percent of the mobile revenue comes from value-added

services (VAS) or non-voice services. And of this share, almost 80
percent is peer-to-peer messaging. Rest 20 percent comes from
various third-party enterprise applications.

In revenue terms this would be less than Rs 400 crore. However, both
operators and application developers are betting on enterprise
applications and expect it to jump to 30–35 percent of the VAS
revenue.
 Cont…

To pull it or to push it?

Mobile applications can be divided into two types:
they would be either pushed to the users or be pulled
by them.
While SMS-based applications can be pulled or
pushed.
MMS are pull oriented. E.g., a video clip has to be
requested for. Operators don't push it to handsets.
 Use of Global Positioning System (GPS):-

 In a transport company today a person can track the exact location of

the packages through the internet and the information thereon will be
available to the mobile phone of the receiver.

 This system can also be implemented in schools where the parents can
get the location of the school bus on the way which ensures the safety
of their ward.
The whole world is going for automation.

The time has come for Indian enterprises to empower their sales force
with data on their mobiles which has been in a wide use in a country like
Japan (especially Toyota).

Imagine the power of a marketing sales force that can check inventory in
the Mumbai office while sitting in Delhi and simultaneously place order
for the delivery, all from a single mobile device.

Sales Force Automation can be of great use in pharmaceutical and

FMCG companies. Even automobile companies are adopting SFA
applications in some or the other form.
 In a business-to-consumer type of environment, most applications are
pulled from the enterprise servers and information is pushed only in
case of broadcast information. For example, result of lottery tickets.

 Recently, Bharti Tele-Ventures and Infosys broadcasted their quarterly

results through an IVR-based application. Users could hear the results
on their phone by sending an SMS. This application is particularly
beneficial to call center and banks, where users wants to access a
particular information while on the move. The only improvement that
has to be made is to reduce the monotony.
 Cont….

Though the term SFA focuses on sales and marketing, its

applications can arm all employees with relevant
information. This information could be an office e-mail,
appointments schedule, or financial data-anything that
can be accessed over office desktops.
In the B2B space it gives employees flexibility in business
execution and makes the whole process efficient and
reduces the overall time spent. Employees have
everything on the mobile and don't have to rush to the
office for data or consultations before closing deals. Such
application gives obvious competitive advantages.
Conclusion :-

M-Commerce is based on a technology that is

considered to be an extension of E-Commerce with a
major Difference that consumers can conduct their
business more effectively and efficiently at an
“anywhere and anytime basis”.
This enhances the possibility to achieve better sales
and marketing promotions.
Cont…

It is true that M-Commerce cannot replace E-

Commerce, but their MARRIAGE has proved a highly
significant factor in each and every businesses.

E-Commerce combined with M-Commerce has

become a major business phenomena across the globe.
India is in the midst of this revolution. There is very
huge growth prospect of this revolution in India.
Thank
You