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Showing posts from September, 2008

critical factors to be addressed for a online/tele-shopping model in India

- Payment mechanism (wire/cash on delivery contributes to less than 3% of total online transactions) while Cheque in India seems to be just a confirmation, not a guarantee. If a cheque bounces (more than 2% of the cheque bounces for government utilities where there is a service termination /legal process/ or penalty is well defined in the payment acceptance policy and the customer even faces de-activation of his services whichever he is subscribed to, in addition to imprisonment of 6 months and a penalty of Rs 100/- min on such situations. Despite of all these collection policy guidelines, there are discrepancies in payment receipts; this needs to be well defined. - Pricing: The pricing is a critical factor to any purchase which is done online/ on a tele-shopping model. Either the brand has got high brand value & recognition/ or if the brand is not available locally,then the customer prefers to buy the product through online mode. - Local partners: The models which you are planning...

Overview: Market for Powdered Health drinks in India:

Health Drink market: The Indian market for powdered nutritious drinks is untapped for non-health category (meaning except the drinks which goes with hot milk like Boost, Horlicks, Bournvita etc) the complete market is virgin and is at very nascent stage. If your product is served cold or with ICE, it needs to be flavored to fit to a hot drink category to target the 90% market. Below 10% market is for cold health drinks- which can be in fruit flavors or in packets which are instant to serve. Tea market: If I have to really analyze the market, there would be companies having or serving hot drinks have better share (take Barista, Cafe cofee day, Costa Cafe, or any other coffee marketer) is a success here. But the cold nutrition drink includes all biggies here without a substantial focus and market share on this product line. In the Tea market, we have all the big names of Tea business and dip tea is not commonly accepted brand in India. People out here prefer tea leaf to be boiled and f...

Business model for a SMS based VAS business

There are four major sources of revenue-generation for any business model based on SMS. The total market size is of over 300 million SMS per day in India which is projected to grow to over 1 billion SMS per day by 2012. If we have to classify the segments of focus, there would be 4 categories of target customers for this business. • Operator database & network • Individuals • Entertainment and media companies • Enterprises Operator database and network: The operator network is one of the largest untapped source to this business. Take subscriber location, subscriber status (out of coverage, switched off), usage pattern, etc.—each of these can be utilized for increasing revenues directly or indirectly. For instance, an operator can offer missed call alert services to all subscribers for free and generate revenues through call back. In today’s’ fast paced life style and environment services such as bill payments, map & navigation, M-commerce transactions in addition to many ot...

VAS in India

VAS services (including SMS & ring tones) contributes to approx 10% of the total revenue (range for each operator varies between 5%-12% depending upon operator to operator) of the mobile distribution market in India. Mobile distribution is estimated to be over Rs 80,000 crore market per year in India. VAS revenue is approx 350 crore and projected to grow to over 3500 crore by 2010. The average industry growth is 30-40% for VAS operators.The overall Telecom market is growing with approx 12% in net revenue. The roaming revenue is estimated at $700 millions for all operators of Indian market. There are many players in the segment and challenges to start a SMS based activity are growing for such organizations as the operators want to have a fresh stuff with economically viable propositions as the market demands for something which would help operators in involving & holding subscribers to slow down the churning. At the same time you have many players like Mauz, Nazara, Onmobile, Im...