Myntra strategy

prepared by Ajith.c Marthoma College of Management and Technology, Ernakulam

1. STRATEGY ANALYSIS GROUP I

2. Myntra was established by Mukesh Bansal , Ashutosh Lawania and Vineet Saxena in February 2007. Myntra’s headquarter is in Bangalore, with regional offices in New Delhi, Mumbai and Chennai . It began its operations in the B2B (business to business) segment with the personalization of gifts, which included :- T-shirts , mugs and caps In 2010, the company shifted its strategy to becoming a B2C (business to customer) oriented firm, expanding its catalogue to fashion and lifestyle products . Myntra.com is ranked among the top 10 e-commerce companies in India . In the last 3 years, Myntra has become the most popular destination for personalized products in the country . About

3. Started: February 2007 Milestone 1: In October 2007 Myntra received a seed funding from Accel Partners (formerly Erasmic Venture Fund), Sasha Mirchandani from Mumbai Angels and another angel investor. Milestone 2: In 2008 they touched 1000 daily visitors mark . Milestone 3: In 2009 they touched 4000 daily visitors mark and were awarded “Pride of India 2009 2010” award for exceptional business growth by IDG Ventures. Milestone 4: In 2010 Myntra was the Red Herring Global 100 winner . Milestone 5: By 2012 February Myntra was shipping 10,000 products every day. Vision : To become India’s largest online lifestyle products retailer. The Journey of

4. Myntra has tied up with top fashion and lifestyle brands in India, such as Nike, Reebok, Puma, Adidas, Asics, Lee, Lotto, Decathlon, FIFA, John Miller, Indigo Nation etc. t o offer a wide range of current season merchandise from these brands. Myntra currently offers products from more than 200 Indian and international brands. These include shoes for running, tennis, football, basketball and fitness, along with casual footwear from world-renowned industry leaders like There are also casual and dressy footwear for women from Catwalk, Carlton London and Red Tape to name a few. PRODUCTS

5.   Myntra undoubtedly enjoyed the first mover advantage in the online retailing business. But Myntra’s success has been replicated by other companies that have now become competitors for Myntra . Some of them are Jabong HomeShop 18 Snapdeal Amazon COPMPETITORS

6. Threat of New Competition: In the Online Retailing industry Myntra has already established thelargest market share. But since the barriers to entry/exit and setup capital and working capital arelow in this industry, threat of a new entrant becomes high. Threat of substitute services: Online retailing can be considered to be a substitute to the usual shop retailing . Myntra cannot provide the customer with a real retailing experience but at the same time gives the convenience of shopping from home/office. Currently there does not appear any other substitute service. Thus this threat is low. Porter’s Five Forces Model

7. Bargaining Power of Customers: The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes. Customers can very easily switch to some other online retailer; this puts pressure on the company to continuously improvise on their service so as to keep their users satisfied. Therefore bargaining power of customers is high. Bargaining Power of Suppliers: The suppliers in this case are the various brands whose products are being sold by the company. They can demand an increase in their profit margin and put pressure on the company. The supplier may choose a competitor of the firm to do business since the supplier switching costs are low. Therefore the bargaining power of suppliers is high and Myntra needs to have good supplier relations . Intensity of competitive rivalry: For most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry. In this particular case the current rivalry, rather competition is not very high, but in future it will be

8. Awarded 'Fashion eRetailer of the Year 2013' by Franchise India – Indian eRetail Awards Awarded 'Best E-commerce Website for 2012' by IAMAI – India Digital Awards Awarded 'Images Most Admired Retailer of the Year: Non–Store Retail' for 2012 by Images Group Awarded 'Best E-commerce Partner of the year 2011-12' by Puma India Recognitions

9. It has launched a new marketing campaign and highlighting the product offerings like cash on delivery, free home delivery and a 30 day return policy. It has been pursuing aggressive strategies to sustain and expand its customer base in a competitive environment, right from altering its core product portfolio to launching innovative marketing campaigns It has also launched a new tech application called the virtual trial room. Through this application, customers can view themselves in their desired apparel via an interactive web cam Company’s Marketing Strategy

10. It also has planned tie ups with celebrities through with movies and events as they represent fashion sense and it is a marketing strategy that they will employ more often in the future Myntra has successfully used social networking websites Facebook and Twitter to expand its customer base. Myntra positions itself as a fashionable new age brand. It launches major marketing campaigns every year. In February 2012, Myntra rolled out an OOH (out of home) campaign across 2 cities to build brand awareness and promote online shopping . Myntra has used mostly viral marketing and internet  for its popularity coupled with occasional discounts and referral discounts. It can be given a rating of 3/5.

11. Supply Chain

12. Competitive advantage in any e-commerce business can be due to a cost leadership or product differentiation or both . In the case of Myntra the competitive advantage is mostly due to cost leadership In special cases it also enjoys competitive advantage due to product differentiation. In case of IPL t- shirts the buyer can get his/her name imprinted on it. Also Myntra’s business model up till 2009 was of customized T-Shirts  and mugs etc which allowed it to have product differentiation Competitive Advantage

13. Strengths Merger with FLIPKART  has increased its strength and capacity Retention of its independence even after merger. Offering of  more than 1.5 lakhs products with over 1000 brands Efficient supply chain and delivery capability helps it to cater to 90,000+ locations. ”End of season sale” –a huge success, Rs.90 crore worth of goods sold Good advertising and marketing campaigns on TV, internet and print SWOT Analysis

14. Weaknesses Future profitability Competitive market Small business units Intense competition means limited market share growth

15. Opportunities Selling private labels can increase their margin Partnership with celebrity designers, bollywood movies can increase its fashion appeal. Bridal collection to tap the big wedding market in India Expansion into global markets can boost business growing economy venture capital

16. Threats Global competitors like Amazon slowly making its foray Fashion segment is becoming popular leading to increased competition Economic fluctuations and unfavorable govt policies Adding to its niche proposition is its app only business decision and closing website might prevent it from capturing the growing online space. R ising cost of raw materials Increasing rates of interest and tax changes

17. THANK YOU………