Final IEM Nirmal

8/3/2019 Final IEM Nirmal

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ASIA PACIFIC INSTITUTE OF INFORMATION TECHNOLOGY

IN COLLABORATION WITH

STAFFORDSHIRE UNIVERSITY UK

BA (Hons) in Business Administration

(Level 3)

Nirmal Kalubowila - CB003199 - GF10B1BA

Title:

INTERACTIVE AND E-MARKETING

BLB10070-3

Supervised by:

Miss. Zeenath Hidaya

Submitted on:

24th June 2011

Word count: 3292

http://apiit.edu.my/



Interactive & E-marketing

Executive summery

According the Economic times (2011) “Online shopping is the next big thing”. Out of all

the sales done in South Asia 3% to 4% sales are done by online. Sri Lanka been one of

the developing country is South Asia which as approximately having 1,163,494

individual internet connections (TRC, 2010) can be identified as a good potential market

for “Online shopping” to grow.

In the year 2006 Dialog Telekom introduces www.ibuy.lk with a partnership of another

company call Four Corners Pvt. Ltd. With the designer expertise of Four Corners Pvt.Ltd ibuy.lk was introduced to the market, with partnership with many well reputed

suppliers such as Soft logic, ODEL, Cake Factory Etc. and with collaboration with well

renounce bankers such as Nations Trust, HSBC and NDB. All the delivery is handle by

International Xpress which is a subsidiary of the Aitken Spence Group.

All the business that are been done under the ibuy will have to through its website, so

it’s a must to maintain the site in the best possible way that will always satisfied the

consumers. According to the survey done under ibuy.lk this report contains all the E-

marketing techniques and recommendations that ibuy can adopted in order to gain

competitive advantage over the competitors. Also the current segments have been

analyzed and new segments have been introduced in order to gain the maximum market

share. Finally E-CRM recommendations have been suggested to maintain a good

relationship with the customers.

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http://www.ibuy.lk/

http://www.ibuy.lk/




Acknowledgement

First and for most I would like to thank my lecture Miss. Zeenath Hidaya for her

interesting and interactive lectures inside the class room and for her untiring individual

guidance towards completing this assignment effectively.

And I also like to thank my parents and sister who have supported me in numerous

ways in completing this report. If not for their effort and sacrifice I would have not be

able complete a successful report like this.

Last but not the least I would like to thanks my dear friends in my batch and theadministrative and academic staff of Asia Pacific Institute of Information Technology.

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Table of Content

Executive summery............................................................................................................ii

Acknowledgement............................................................................................................iii

Table of Content................................................................................................................iv

List of Tables......................................................................................................................v

List of Figures...................................................................................................................vi

1.0 Introduction..................................................................................................................7

1.1Industry Analysis.......................................................................................................8

1.2 Competitor Analysis.................................................................................................9

1.2.1 Porters Analysis...............................................................................................11

1.2.2 Site Analysis....................................................................................................12

1.2.3 Revenue Opportunities....................................................................................16

1.2.4 Internet Business Model..................................................................................17

1.2.5 Good and Bad E-Marketing Practices.............................................................19

2.0 SEGMENTATION AND TARGETING...................................................................20

2.1 Market Trends........................................................................................................20

2.2 Segmentation..........................................................................................................20

2.2.1 Geographic......................................................................................................21

2.2.2 Demographic...................................................................................................22

2.2.3 Psychographic.................................................................................................24

2.2.4 Behavioral.......................................................................................................25

2.3 TARGETING.........................................................................................................26

3.0 POSITIONING...........................................................................................................28

3.1 Value proposition...................................................................................................28

3.2 Strategic Approach.................................................................................................28

3.2.1 Comparison of the unique value proposition with the competitors................293.2.2 Conceptual Map..............................................................................................30

3.3 Positioning Strategy...............................................................................................31

4.0 E-MARKETING STRATEGY..................................................................................33

4.1 Objectives Of ibuy.lk.............................................................................................33

4.2 E-Marketing Strategies...........................................................................................34

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4.3 E-CRM Recommendation......................................................................................35

5.0 DESIGN AND EVALUATION.................................................................................36

5.1 Criteria to measure the website effectiveness........................................................36

5.2 Strengths and Weaknesses of the web site.............................................................38

5.3 Creative suggestions...............................................................................................39

Conclusion........................................................................................................................40

Referencing......................................................................................................................41

Appendix..........................................................................................................................43

Appendix 1...................................................................................................................43

Appendix 2...................................................................................................................44

Appendix 2

List of TablesTable 1 Market size and Growth........................................................................................8

Table 2 Competitor Analysis............................................................................................10

Table 3 Porters Analysis..................................................................................................12

Table 4 Site Analysis........................................................................................................12

Table 5 Current Revenue..................................................................................................16

Table 6 Future Revenue...................................................................................................17

Table 7 Good & Bad Practices.........................................................................................19

Table 8 Market Trends.....................................................................................................20

Table 9 Geographic..........................................................................................................21Table 10 Geographic Evaluation......................................................................................21

Table 11 Demographic.....................................................................................................23

Table 12 Demographic Evaluation...................................................................................23

Table 13 Psychographic...................................................................................................24

Table 14 Psychographic Evaluation.................................................................................24

Table 15 Behavioral.........................................................................................................25

Table 16 Behavioral Evaluation.......................................................................................25

Table 17 New Target Segment.........................................................................................27

Table 18 Strategic Approach............................................................................................29

Table 19 Comparison Value Proposition.........................................................................29Table 20 Differentiation strategy.....................................................................................32

Table 21 SMART Objectives...........................................................................................33

Table 22 E-Marketing Strategies......................................................................................35

Table 23 E-CRM Technique............................................................................................36

Table 24 Criteria measure website...................................................................................37

Table 25 Strengths and Weaknesses of the web site........................................................38

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Table 26 Creative suggestions..........................................................................................39

Table 27 Creative suggestions

List of FiguresFigure 1 Competitor Analysis............................................................................................9

Figure 2 Market Share........................................................................................................9

Figure 3 ibuy Demography..............................................................................................13

Figure 4 Daily status........................................................................................................14

Figure 5 Overall Analysis................................................................................................15

Figure 6 Traffic by country..............................................................................................21

Figure 7 Value Proposition..............................................................................................28

Figure 8 Conceptual Map.................................................................................................30

Figure 9 Porter's Three Generic.......................................................................................31Figure 9 Porter's Three Generic

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1.0 Introduction

With its entry in 1995 as a mobile service provider, Dialog Axiata PLC is now SriLanka’s largest and fastest growing mobile telecommunication network which is

followed by Mobitel which is now a local mobile service provider. Dialog is a subsidiary

that operates under the parent company AXIATA (previously known as TMI) which is

one of the largest Asian telecommunication companies that are highly focused in high

growth low penetration emerging markets.

Vision: To be the undisputed leader in the provision of multi-sensory connectivity

resulting always, in the empowerment and enrichment of Sri Lankan lives and

enterprises.

Mission: To lead in the provision of technology enabled connectivity touching multiplehuman sensors and faculties, through committed adherence to customer-driven,

responsive and flexible business processes, and through the delivery of quality service

and leading edge technology unparalleled by any other.

As of 2010 according to the annual report the number of Dialog subscribers was

6,716,000 from amongst a total of 15,875,000 which indicated that 42.3% of the market

share was captured by Dialog. According to the Corporate Website (2011) Dialog Axiata

PLC is valued at Rs. 116.05 billion and the revenue Rs. 36,168.83 million.

The site www.ibuy.lk was launched with the objective of providing local and global

customers a one stop online shopping experience where products can be both bought andsold; currently it includes more than 180 products that has a price range between Rs. 30

– Rs. 142,500. The vision of this e-commerce site can be said to ‘provide convenience to

customers in order to be the most sought e-business site in Sri Lanka and around the

world’. (Ibuy, 2011) According to Alexa, (2011) the site is ranked as at 372,575 with

respect to global traffic and 531 with respect to local traffic and according to Cubestat,

(2011) the site is valued to be worth $5,150.88.

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http://www.ibuy.lk/

http://www.ibuy.lk/




1.1Industry Analysis

Internet usage around the world is said to be 1.5 billion from amongst the total

population of which 20.1% are Asian internet users. (Internet World Stats, 2011) The e-

commerce industry is maturing as many companies and entities realize the enormous benefits of conducting business online the most important of which is the lack of

physical space. The e-commerce industry is highly proactive in the Asian region due to

the developing economies, e-commerce infrastructural investments and demand for

economical and qualitative products from the European regions (Ecommerce, 2010).

The retail industry in Sri Lanka alone are worth at least Rs. 250 billion annually, but

only 15% of this total is transacted online (IBR, 2011) but it can be said that the e-

retailing industry in Sri Lanka is booming with the rising number of internet users and

high government investment into information technology. According to research it is

seen that one out of every ten households uses a computer; the computer awareness hasincreased from 37% to 44% from 2006 to 2009. (DSC, 2009)

According to the World Bank, (2011) the number of internet users in Sri Lanka is

1,163,494 as at 2008 which is an increase from 13% in 2006 and parallel to the increase

in internet users the number of websites that deal with e-commerce has increased to 17

e-commerce websites in Sri Lanka. The number of credit card users in Sri Lanka is

892,291 but amongst those number only a few are comfortable using credit cards to

purchase online due to fear of fraud and lack of trust.

Market Size

The retail industry in Sri Lanka alone are worth at least Rs. 250

billion annually, but only 15% of this total is transacted online(IBR, 2011)

Market Growth

Market growth is high as from 2008 to now number of e-

commerce sites have increased from a negligible figure to 17 sites

in 2010

Future Potential

Future potential is extremely strong and it can be seen from the

rising internet usage as well as the computer awareness & e-

commerce sites

Market Leader Kapruka is the market leader in this industry with a market shareof 72% amongst the E-Retailers in Sri Lanka (Cubestat, 2011)

Table 1 Market size and Growth

Source: Authors work

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1.2 Competitor Analysis

The E-retailing industry is an extremely large industry around the world both in terms of

online and offline retailing but since Ibuy conducts online retailing the competitor

analysis will be based on other e-commerce sites thus based on relevant similarities,functions and product ranges, Ibuy has identified its direct and indirect competitors:

Figure 1 Competitor Analysis


In order to understand the competition that Ibuy faces an analysis is conducted only on

the direct competitors to Ibuy as mentioned above therefore the following are the direct

competitors of Ibuy and their market share

Figure 2 Market Share


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Ibuy

Lankaeshop.com

Lankanest.com

Lankafoods.com

Kapruka.com

Direct Competitors

Gift2Lanka.com

Odel.lk

Indirect Competitors



Source: Authors Work


The above analysis indicates that the site Kapruka.com has the highest online market share amongst its competitors indicating it to be

the dominant leader in the e-retailing industry; these has been achieved by Kapruka.com due to the high quality products and secure

transactions it conducts along with its extensive marketing which has effectively increased its customer base.

The type of competition in this market would be an oligopolistic type as there are few sellers in the market who are very sensitive to

each other’s pricing and in this type of a market it is difficult for new sellers to enter thus everything depends on the strategic moves of the sellers to stay ahead in the market. The following table consists of a direct competitor analysis

Table 2 Competitor Analysis

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Ibuy Lankaeshop Lankanest Lankafood Kapruka

Name of Site www.ibuy.lk www.lankaeshop.com www.lankanest.com www.lankafood.com www.kapruka.com

Products All of them have similar products ranging from gifts and electronic items to other food items (refer appendix)

Average Price

Target Segment [Put The Target Segment]

Presence Online Presence Only (Click and Mortar Businesses)

Market Share 11% 7% 4% 6% 72%

Geographic

Presence No Geographic Presence since it’s an Online Store but they are Sri Lankan Sites

Type of

CompetitionDirect Competitors

Traffic Rank 425,308 637,258 1,525,918 753,824 65,589

Page Views 2,352 1,570 656 1,327 15,247

Website Worth $ 5,150 $ 3,438 $ 1,436 $ 2,906 $ 33,390

http://www.ibuy.lk/

http://www.lankaeshop.com/

http://www.lankanest.com/

http://www.lankafood.com/

http://www.kapruka.com/

http://www.ibuy.lk/

http://www.lankaeshop.com/

http://www.lankanest.com/

http://www.lankafood.com/

http://www.kapruka.com/




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Critical Evaluation: According to the direct competitor analysis conducted it can be seen that

Kapruka can be seen to be the market leader even though it offers similar products at similar

prices the difference is the quality of its services which attracts more customers as can be seen by

the market share. The traffic rank indicates that more people visit the Kapruka site and the

website value can be seen to be higher than the other sites. The next inline in this industry would

be Ibuy which also has a reasonable amount of market share after Kapruka and it also has quite astrong image due to its parent company, Dialog.

1.2.1 Porters Analysis

Rivalry within Industry Many competitors from diverse backgrounds that offer online

products for purchasing.

The vendors themselves can provide competition since they

themselves have their own delivery system and sites.

Switching costs are low thus customers can easily change

their suppliers leading to a higher risk of rivalry.

High

Threat of New Entrants Setting up an e-retailer or an e-commerce website is not

difficult at all due to the availability of necessary technology.

Capital requirement in terms of office space and other start up

requirements are not needed.

Even though there is no barrier to online retailing customers

are not yet comfortable due to the security aspect but the

Dialog brand is perceived as secure and is trusted.

Moderate

Threat of Substitute Switching cost for customers is low and the availability of

substitutes is high in the market.

High number of alternative products available in the market

both online as well as offline.

The traditional stores will have a better chance than online

retailing due the lack of trust and security in the customer’s

minds.

High

Customer Bargaining

Power

Switching cost for the customer is really low since any

website is simply a click away.

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The products offered online in this industry are not products

that are very important for the customers thus can be

purchased offline.

The availability of substitute products are extremely high both

in the online and offline sense.

High

Supplier Bargaining

Power

There are many suppliers in this industry when considering

the particular products.

Switching cost is low for Ibuy plus there is no need to keep

stock or a supple for the customers demand indicating low

supplier power.

Low

Table 3 Porters Analysis


1.2.2 Site Analysis

Criteria Description

Hosted in Sri Lanka

IP Address 125.214.169.111

Domain Suffix Sri Lanka

Sri Lanka Traffic Rank

604World Traffic Rank 378,750

Website worth $5,150.88

Daily Pageviews 2,352

Sites linked 19

Audience 90.4% is from Sri Lanka while 9.6% is from abroad

Table 4 Site Analysis

Source: Alexa (2011)

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Figure 3 ibuy Demography


Most users are in the age range of 18-24 and 25-34 since they are the crowd that is highly

compliant with new technology thus more prone to purchase online, most are males which is due

to the purchasing power being with the males. As indicated above due to the younger age range

most of the users do not have children but they all have completed graduate school and it can be

seen that the browsing location is usually from work which is due to the fact that they are

employees.

The following is a detailed site analysis which would help determine if the site is successful or

not in achieving its set objectives:

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Daily Status Analysis




Figure 4 Daily status


The daily traffic trend indicates that the site has an extremely low traffic trend except during the

initial months of the year 2010 which can be contributed to the fact that most employees would

have received their bonus pay check for the last year thus increasing the discretionary income of

the users enabling them to purchase more products online.

The daily reach of the site shows that it has increased from the year 2009 and has been constant

over the years till present but shows an increase in the initial years of 2010 which is as explained

above and also there are increases in certain months which is due to the seasonal offers and

promotions conducted by ibuy.

The daily pageviews of the site show that only during the midyear of 2010 onwards till the year

2011 has shown an increase in the number of pages viewed which can be due to the increase in

the product range or additional options in order to check out causing more pages to be visited

than normal.

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Overall Analysis




Figure 5 Overall Analysis


The bounce rate of the site seems to be extremely high in the year 2010 and during the end of the

year it seems to have reduced which can be due to the promotional offers that were provided but

again it has increased in 2011; overall it can be seen that the bounce rate is unstable indicating

that the site is not very relevant or helpful to the users.

Search visits indicate that in the end of the year 2009 the visits were extremely high but reduced

later on to increase in 2011 which can be contributed to the fact that SEO was conducted quite

well increasing the chances of customers ending in the site more often.

The time on site indicates that the user stays in the site for an average of around 10 min with

many instances that have exceeded as well as gone below the average. This indicates that the site

is not improving and that it is not very stable in satisfying the users desires and wants.

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1.2.3 Revenue Opportunities

The main revenue generating mechanism for www.ibuy.lk currently is the revenue that is

generated by product sales online and while selling a product there are other revenue that is also

generated and they are outlined in the following table:

Current Revenue Generation

Product SalesThe main source of revenue for the site which is for the listing

and commission on completed sales.

Payment TransactionsCommission is earned by the site from the credit card

companies for the online transactions that occur daily.

Delivery ChargesThe site generates income by collecting a commission on the

delivery of the received orders.

Commissions Ibuy.lk acts as an intermediary between the vendors andcustomers thus commissions are earned for each transaction

from the vendors.

AdvertisementsAccording to Cubestats, (2011) “ibuy.lk earns 8$ revenue

through daily Ads and 247.41$ through monthly ads”.

Table 5 Current Revenue


Though there is revenue being generated by the current mechanisms of the site it can be seen that

there are more revenue opportunities that can be exploited by the site in order to earn higher revenue in the future; as mentioned below:

Future Revenue Opportunities

Affiliate MarketingOffer banners that would direct a customer to other related

sites which will generate revenue for the ibuy site

Auction OpportunityThis is a possible revenue opportunity as there is very less

sites in Sri Lanka that provide an auction opportunity

Delivery Abroad

Currently ibuy does not provide delivery to other countries

thus this can be considered as a possible revenue generationtool

Payment Options

Introducing other methods of payments apart from using

credit cards can attract a larger crowd to purchase goods thus

increasing the revenue generation through a larger customer

base

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http://www.ibuy.lk/

http://www.ibuy.lk/

http://www.ibuy.lk/



Interactive & E-marketingTable 6 Future Revenue


1.2.4 Internet Business Model

The site www.ibuy.lk does not use a single internet business model rather uses multiple models

in order to effectively conduct business online therefore the four levels of commitment toward e-

business will be examined in order to understand the different business models used by ibuy; the

higher the firm travels up the pyramid the greater is the level of commitment toward e-business.

The four levels of commitment are:

Activity

Online Advertising :

The site is home to many different advertisements which

advertise different products and sites.

Order Processing :

The internet transactions of the customers are automatically

generated by the site according to which the order is created.

Online Sales Promotions :

The newest arrivals amongst the product range are displayed on

the right side of the site to promote it to the audience.

Pricing Strategies :

Prices are decided by the vendors and more often than not it is

similar or lesser to the store price especially during seasons and

promotions.

E-Mails :

Confirmation of membership or order is conducted through E-

mails through which additional costs are reduced.

Business Process

Customer Relationship Management

The site keeps records of the customer’s previous purchasing

records as well as the customers registered information, these

records are used to forecast potential needs and enhance

customer experience.

Supply Chain Management

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http://www.ibuy.lk/

http://www.ibuy.lk/




The Ibuy site involves a delivery partner in order to deliver the

products effectively and efficiently to the customer within the

given time-limits.

Affiliate Programs

Affiliate programs are available on the site which would direct

customers automatically to other sites for which a commission

is paid to the Ibuy site

Enterprise

E-Commerce

Dialog ibuy is a top e-commerce online shopping portal application in

Sri Lanka (ibuy 2010) which indicate that the site conducts e-

commerce

Social Networking

Social networking in itself is not available in the site rather it

has fan pages on other social networking sites such as Facebook

and twitter.

Pure Play

This is the top level of the commitment of a business towards E-

Commerce and is one of the models of the ibuy site since it is

completely based on the internet.

Table 7 Internet Business Model


Recommendation: The site www.ibuy.lk currently does have many models which it uses but for

long term effectiveness as well as to stay ahead of other e-retailers it is recommended that the

site uses a combination of its currently adopted models while at the same time use them more

efficiently by increasing the functionality of each business model in order to adapt to the current

market needs and wants.

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http://www.ibuy.lk/

http://www.ibuy.lk/





1.2.5 Good and Bad E-Marketing Practices

Good Practices Bad PracticesInterface:

The interface is very user-friendly and it

provides accurate relevant information.

Reach:

The site does not have a global reach rather only

local delivery which is also highly expensive.

Customization:

Provides a range of customization options

to the customer.

Technology:

The store is totally a pure play business thus a

failure in the site will affect the business

immensely.

Security:

The transactions are conducted through

secure portals and an e-mail is sent to the

customer.

Information:

The information provided regarding the products

available are not enough.

Notifications:

Newly arrived items are highlighted when

a user enters the site thus stimulating

interest.

Variety:

The products offered have very less brand variety

thus will be a de-motivating factor to certain

users.

E-Commerce:

The site provides a shopping cart facility

and is open to anyone with a credit card.

Payment:

The only payment facility provided is online

which prevents non-credit card holders from

buying online.

Table 8 Good & Bad Practices

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2.0 SEGMENTATION AND TARGETING

2.1 Market Trends

In analyzing the market which ibuy.com operates, there are some significant trends which are

identified locally and globally as see Table 2.1

Online retail marketing keeps on growing – Online market have taken over the market share

of other marketing channels. According to clickz (2011) Christmas shoppers in year 2011,

holiday purchasing will grow by 12.4% and estimate $166 billion.Integrated marketing comes out to play – According to Heidi, riverside marketing strategies

(2011) she pointed out that integrated marketing is a must. With social media marketing, mobile

and TV all this must perform together.Mobile dominates the industry – With the use of sophisticate mobile phones in the market

users tend to satisfy their needs and wants with the use of it. According to the U.S. Audiences &

Devices (2010) 30% of all the mobiles phones are smart phones or Black Berries.Marketing goes real time - According to David, clickz (2011) marketers must be conscious to

grab the advantage or the opportunity in the market.

Table 9 Market Trends

2.2 Segmentation

Ibuy.lk is an online market where anyone with an ability to pay with the use of a credit card or

other electronic payment method, can purchase a product from a range of well establish suppliers

who are tied up with Dialog. The Ibuy market can be segmented based on the market

segmentation characteristics. Ibuy based market segmentation can be divided based on the

following characteristics namely geographic, demographic, psychographic and behavioral.

Geographic segment is Sri Lanka and other countries.

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2.2.1 Geographic

Geographic/ Sub-

Segment

Justification

Country –Sri Lanka

-Other

In the common market place Sri Lanka is 95.7% and other countries are

4.3% of the ibuy sales. See figure ****Provinces –Colombo

-Other

Narrowing the SL segment Colombo leads with 81% and other

provinces are 19%. See figure ****

Table 10 Geographic

Figure 6 Traffic by country

Source: Websitetrafficspy (2011)

Evaluating the Geographic base Customer expectation

Ibuy.lk is an online shopping portal that provides services to

distributor to sell items online. Because Ibuy’s delivery is

limited to the Sri Lankan’s geographical area, 95.7% of Sri

Lankan us this service. People from other countries use this

to send gifts to their love ones.

– Expanding service to other

countries as well. Eg:

Australia, USA and UK

– Promote the site on other

parts of the island. E.g.Hambantota, Kandy

Table 11 Geographic Evaluation

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2.2.2 Demographic

Demographics /

Sub-Segment

Justification

Age - 15-19

-20-24- 25-29

- 30-34

- 35-39

- 40-44

- 45-49

- 50-54

- 55-59

Relative to the general internet population, 25-34 year olds are over represented at ibuy.lk According to the statistics Alexa, (2011); Ibuy has

selected 25-34 ages group as the target market.

Gender - Male

- Female

Ibuy is target segment of male and female are relatively equal in the market

place.

(Department of Census and Statistics, 2011)

Income Relative to the general internet population, people with income of LKR

30,000- LKR 60,000 per month are well present at ibuy.lk

(Income & Expenditure Survey, 2011)

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Total Population =

15-19 = 2,003,000

20-24 = 1,942,000

25-34 = 1,631,000

35-39 = 1,538,000

13,312,000

40-44 = 1,425,000

45-49 = 1,250,000

50-54 = 1,126,000

55-59 = 817,000

So as for the statistical data

ibuy.lk is most proffered

among the 25-34 age group

which holds about 1,631,000

individuals.

(Department of Census and

Statistics, 2011)

Male Population = 10,249,000

Male Literacy = 92.7%

Female Population = 10,404,000

Female Literacy = 89.1%

Urban: Rs. 47,783

Rural Rs. 35,225

Estate Rs. 24,162

Average Rs. 36,451






Occupation

-Students

-Professionals

-Technical

Associates

-Official

-Managers

-Proprietors of

Enterprises

(Department of Census andStatistics, 2011)

Education

-School

-O/L & A/L

-Professionals

-Degree holders

Relative to the general internet population, people who has gone to the

Graduate School are greatly over presented at ibuy.lk

Alexa, (2011)

Ethnicity Relative to the general internet

population, people of Asian ethnicity

are over presented at

Alexa, (2011)

Table 12 Demographic

Evaluating the Demographic base Customer expectation

Ibuy.lk provides its services to different kinds

of individuals in different sub-segments. Even

though depending on the segment each

individual spending patterns and the likely

hood will change.

Identifying the variations of the demographyvariables will help ibuy.lk to capture the

market and service them better.

– The about adjustable payment methods

– A guarantee about the payment they

pay

– Provide the customer with discounts

and offers

Table 13 Demographic Evaluation

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Total EmployedPopulation

Government Employees

Semi governmentEmployees

Private sector Employeesand Employers

Own account workersUnpaid

family workers

5,941,574

13.0 %

5.1 %

47.1 %

27.4 %

7.5 %

Out of which students (school and

university) and professionals are

tend to buy on ibuy.lk






2.2.3 Psychographic

Psychographic / Sub-Segment Justification

Life style –Modern Lifestyle

-Classical Lifestyle

Generally when we consider the customers who are in to

online shopping, most of them prefer to live in a Modern

lifestyle. But Dialog ibuy.lk gives a chance to the classicallifestyle consumer to satisfy their needs as well.

Social class -Upper class

-Upper middle class

-Middle class

Usually social class is measured by the consumers annual

income basis. According Alexa (2011) its clearly shown that

most of the middle and upper middle class people tend to use

ibuy.lk more than the other competitors. See image ****

Interests -Day-to-day buyer

-Gift seeker

Manly ibuy.lk caters to two different customer groups. Which

are, Day-to-day buyers who are using online shopping to

satisfy their daily needs and wants and Gift seekers who are

interested in sending gifts for their loved ones on special

occasions.Table 14 Psychographic

Evaluating the Psychographic base Customer expectation

With the modernization of lifestyle patterns,

the usage of interment has been an essential

requirement in keeping up with the trend. So

customers with modern lifestyle patterns tend

to do online shopping rather than physical

shopping. This requirement will change

depending on the income that the consumer

generates and their types of needs and want.

– Regardless of the social class a total

solution for the consumer.

– Emphasize on the classical buyers with

the localization of the service.

– Promote online shopping as a day-to-

day activity rather than a special and

occasional one.

Table 15 Psychographic Evaluation

2.2.4 Behavioral

Behavioral / Sub-Segment Justification

Brand Loyalty -Strong According to the sites descriptor ibuy.lk (2011) “ibuy is the top

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-Medium

-None

online shopping portal application in Sri Lanka - Powered by

Dialog” so we can see a high brand loyalty in the service they

provide.Benefit -Speed

-Quality

-Convenience

As mentioned in the site ibuy.lk (2011) “Minimum Order

Preparation Time: 24 Hours” is required. And for the delivery

service also consumes a minimum of 24 Hours. So after placing a

order, hopefully the customers will receive the goods within 48

hours which in Sri Lankan contexts, it’s Really Fast. Quality is

maintained with the reputed suppliers’ base and customers can

enjoy a convenience as well with the user-friendly web site.Attitude -Positive

-Negative

-Neutral

Mohamed & Husnayati (2008) stated that “Sri Lanka is one of the

developing countries in Asia which has a recent growth in

telecommunication sector.” So we can hope that Sri Lanka’s

attitude towards online shopping will be a positive one.Table 16 Behavioral

Evaluating the Behavioral base Customer expectation

With the strong brand loyalty that captured by

ibuy.lk, Dialog is capable of providing a

speedy quality service with the support of the

registered reputed suppliers and delivery

provides which cab have a direct effect on the

end customer.

– One day delivery service

– Flexibility on the delivery time periods

– An online tracking system

Table 17 Behavioral Evaluation

2.3 TARGETING

In the segmentation process “Targeting” is the process whereby select a set of segments which

are attractive to the firm and Target all the resource and effort on the selected segments in order

to provide benefit to them (marketingteacher, 2011).

Therefore, based on the maker segments Ibuy.lk can categories the attractive opportunities under

three categories as see in Table **

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Target segment Characteristics Target segment value

per individualTeenagers

(Low income earners )

Local consumers

Income per monthly Rs.10,000-25,000

Age 15-25

Male and Female

Students, under graduates and post

graduates

Middle and middle upper class

Modern Lifestyle

Looking for speed and conveniencePositive about online shopping

10,000+20,000

2

15,000*47.5%

=7,125.00

Middle class

(Medium income earners)

Local consumers

Income per monthly Rs.25,000-50,000

Age 25-40

Male and Female

Professionals and officials

Middle and middle upper class

Modern LifestyleLooking for convenience

Positive about online shopping

25,000+50,000

2

37,500*47.5%

=17,812.50

Higher class

(High income earners )

Local consumers

Income per monthly Rs.50,000- upper

Age 25-60

Male and Female

Managers and proprietorsMiddle upper and upper class

Classical Lifestyle

Looking for convenience and quality

Neutral about online shopping

50,000+100,000

2

75,000*47.5%

=35,625.00

Table 18 New Target Segment

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Income & expenditure survey done in year 2011 by the Department of Census and Statistics,

have categories the income level under three main categories mainly Lower, Middle and Upper

income earners. From the survey we can get average house hold non-food income break down.

Based on this rough estimate of the income percentage that Sri Lankan consumers are willing tospend on ibuy can be estimated. For more info refer appendix 1

Clothing, Textiles & Foot wear 5.0

Health & Personal care 7.9

Cultural & entertainment 2.2

Non durable household goods 1.5

Durable household goods 4.3

Other non consumer expenditure 26.6

Total 47.5%

According to this statistics we can come to a conclusion of what the percentage of income will

be spent on ibuy.lk by a Sri Lankan which will be 47.5%

3.0 POSITIONING

3.1 Value proposition

Value proposition is “A business or marketing statement that summarizes why a consumer

should buy a product or use a service or should convince a potential consumer that one particular

product or service will add more value or better solve a problem than other similar offerings”

(Investopedia, 2011). When comparing Dialog ibuy.lk the unique characteristics that give them

the edge against the competitors is their value proposition. See Figure 2

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Speed

“Next Day Delivery”

Convenience

“All The GoodsUnder One Site”





9876

43211

1 2 34

6 7 8 910

High QualityLow QualityLess

Convenienc

e

High

Convenience



Lanka. delivery!”Cohesivenessand team work

Competence andadoptability

Trust andreliability

Innovation andcreativity

We Guarantee

100% Secure

Shopping

Experience.”

Main revenue

opportunities

• Brokerage

• Affiliations

• Advertising

space

• Brokerage

• Affiliations

• Advertising

space

• Brokerage

• Affiliations

• Advertising

space

• Brokerage

• Affiliations

• Advertising

space

Table 20 Comparison Value Proposition

3.2.2 Conceptual Map

Based on the primary marketing research

that was conducted among the leading

competitors the following positioning

map has been plotted.

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Ibuy (Expected)10




Figure 8 Conceptual Map


3.3 Positioning Strategy

Porter’s generic strategy have pointed out three types of strategies where a company can use as

Differentiation, Overall Cost Leadership and focus . (APMF, 2011) Since ibuy.lk is a well

establish online shopping portal it is advisable to use Differentiation strategy in positioning itself.

See Figure 4. There by ibuy.lk will be able to focus on differentiating the market with the

existing products and service and to capture the total market share.

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Lankaeshop

Lankanest

Ibuy (Current)

Lankafood

Differentiation Overall Cost

Leadership

Strategic Advantage

Low Cost PositionUniqueness

Broad

Business

Scope




Figure 9 Porter's Three Generic

Porter’s three generic strategies (APMF, 2011)


According to position strategy (2011) a web positioning plan is a combination of Search Engine

Positioning (SEO), Search Engine Marketing (SEM), Social Media Optimization (SMO), and

Visitor Experience Optimization (VEO). These strategies will help ibuy to grab a competitive

advantage over the competitors.

Differentiation

strategies

Description

Site Environment• Positive Word-of-Mouth through strategies like “Tell a friend!” option

and reduce the uncertainty about the online purchasing.Making the

Intangible

Tangible

• Provide 3D imagers of products online

• Issuing a mouthy magazine with the ibuy hot offers in it

Building Trust • Make use of existing Dialog Customer Base. Promote ibuy with SMS

Alerts and Dialog DTV advertisements.

Efficiency &

Timely Order

Processing

• Update the customers with the New Arrivals and promotions available

on ibuy through Email and SMS alerts.

• Looking forward to introduce innovative payment system such as

Dialog eZ-pay system, since Dialog subscribers can easily interact with

the website.

• Promote the site on other parts of the island like Hambantota, Kandy

and Jaffna.

• Expanding to countries like Australia, USA and UK

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Focus

Differentiation

Focus Low Cost Narrow





Pricing • Provides discounts for Dialog users

• Giving the opportunity to redeem star points

CRM • Seeking customer convenience through Value added services

Table 21 Differentiation strategy

4.0 E-MARKETING STRATEGY

4.1 Objectives Of ibuy.lk

Ibuy.lk has taken into account the flowing objectives in developing the E-marketing strategy.

1. Increase customer awareness

2. Satisfying customers expectation

3. Retain improve the brand image4. Improve the quality of the service and the reliability

5. Gather customer information for current and future endeavors

Objectives Description

Objective 1 At present out of the selected competitors ibuy.lk stands as the number

one. Comparatively it comes around 42% market share. Through

promotion ibuy.lk hopes to increase the market share by another 10%

within the next 6 months.Objective 2 To improve customer satisfaction up to 80% with the use of a customer

feedback blog within the next 6 months.Objective 3 With the use of social media, improve the brand awareness by 10% within

the next 6 months.Objective 4 Having a customized web page, that will improve the customer reliability

by 40% within the next 6 months.Objective 5 Provide the customer loyalty points program and gatherer 70% customer

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New

Customers

ExistingCustomers




information within the next 6 months.Table 22 SMART Objectives

Source: Dialog annual report (2010)

4.2 E-Marketing Strategies

Strategies Recommendation

Search EnginePositioning(SEO)

• Search engines are ones of the primary ways in which people fine

sites, by SEO ibuy.lk can build up more traffic to the site.

• Use text “Keywords” as image tags and links

• Getting the search engine page rank upSearch EngineMarketing(SEM)

• To adopted “Pay-Per-Click” technique in most commonly used

“Keywords” (Reefer Appendix 2)

• Use Keyword advertising programs like Google Ad Word

• Use “Paid Listing” in search engine. Newsletter andE-mailMarketing

• Ones of the low cost marketing strategy

• The ability to send only for the target group of customers

• The capacity to provide a large amount of informationVisitor ExperienceOptimization(VEO)

• To provide 3D images of the product that they offer

• Giving the consumer the ability to customize the product online

• Provide customer review for productsMobileMarketing

• Dialog been the largest mobile provider in Sri Lanka, ibuy.lk has the

capability of going into a large customer base.

• Develop mobile applications that will help users to order good via

mobile phones

• Have SMS system that informs the consumer about the newest offers

that ibuy has to offer.Social MediaOptimization(SMO)

• Use of social media such as Facebook and Twitter to advertise and

inform the consumers.

• Conduct promotional activities with the use of social media, which is

very much cost effective

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• Use Facebook groups to gather information about the consumer OfflineMarketing

• Use of print media as such as banners, bill boards and news paper /

magazine advertisements.

• Sponsoring and hosting social events and sports activities.

• Conduct marketing campaigns where the target audience is frequently

gathered. E.g. ODEL, Majestic City and Food Court

Table 23 E-Marketing Strategies

4.3 E-CRM Recommendation

Integrated E-CRM in ibuy.lk would help to attract more customers, understand them better, help

to build up the relationship with the customer and increase the customer loyally. Also on the

other hand these E-CRM strategies will be useful in bringing down the time and cost. E-CRM

activities can be breaker down as Awareness, Exploration, Expansion, Commitment and

Dissolution where the below mentioned technique fall under. See Table **

Technique Recommendation

Personalized

web page

• Once a customer login to the site, depending on their purchasing power

and characteristics, if the home page can be customized that can be so

convenient for the users.24/7 Help desk • Either live chat or by a caller client, if ibuy can maintain a help desk

that will address consumers day-to-day queries and delivery issues.First time user

guiding page

• If ibuy.lk can dedicate a separate page that demonstrates how to carry

out a successful transaction in verbal format as well as in visual format,

it will reduce the new customer confusion and will increase revenue.Mobile CRM • Developing a mobile application that will help to place an order and

even to track the status of the order until it reaches the consumer and

finally allows the user to give a feedback on the service.Loyalty point

system

• Providing a loyalty point system which will help to influence the

consumers more to buy and at the same time it is a great opportunity

that can be used to gather useful information about the consumer.Maintaining a

Blog

• This will allow all the customers that how have used the ibuy serve and

who haven’t, to exchange ideas and shear comments among them.Online • With the current registrations of the users it would be great if they can

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community

building

create an individual profile for each customer and give them the ability

to interact with other profile and suggest products.Product

ranking ability

• It would be ideal if ibuy can provide a customer ranking index with the

product description, with similar characteristics products where the

consumers purchasing decision will be much easier.Table 24 E-CRM Technique

5.0 DESIGN AND EVALUATION

5.1 Criteria to measure the website effectiveness

In design and evaluation of the ibuy.lk the author has benchmark www.ibuy.lk with one of

renowned online retailer www.amazon.com. Based on the comparison, the author has given a

ranking for each criterion. (5= Very Good 4=Good 3=Ok 2=Bad 1=Very Bad)

Navigation Rank Explain the rank

Current location within the site isshown clearly (site map).

4 The user can easily find, in what category ishe/she in.

Link to the site's main page is clearlyidentified.

5 The home page link is present in two differentways. Log or home link.

Major/important parts of the site aredirectly accessible from the main page.

4 Profile, shopping cart, services and previousimpotent links are clearly shown.

Easy to use Search function is provided.

3 The search can improve, then the user istyping the keyword, no automatic suggestion

is given.User Control Rank Explain the rank

Site reflects user's workflow 5 The site keeps up with the process of theorder.

User can cancel any operation 5 Customer can terminate the buying process atany time.

User can go back on every page 2 When going back to the previous page in thecheck out. User faces difficulty in going back.

Per-page loads quickly with normalconnections.

3 With the animation and graphics, it takes alittle much more time to load.

Functionality Rank Explain the rank

Functions are clearly labelled 5 All the key functions are clearly labelledEssential functions are availablewithout leaving the site

4 Most of the essential functions are found inevery page.

Plug-ins are used only if they add value 2 No additional plug-ins are usedLanguage and Content Rank Explain the rank

Important information and tasks aregiven prominence

3 Important information is given but it canimprove.

Information of low relevance or rarely 4 Only the necessary information is provide.

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used information is not includedRelated information or tasks aregrouped

4 Simile information is categories under categories.

Language is simple, without jargon 3 Sometimes the user gets confuse inunderstanding information.

Help and user guides Rank Explain the rank Site is designed to require minimal helpand instructions

4 Very rear users are in needed with helpassistant.

Help and instructions, if needed, areeasily accessible

3 Only help through messages are available.

System and user feedback Rank Explain the rank

It is always clear what is happening onthe site

4 User has a good idea of what’s happening inthe site.

Users can receive email feedback if necessary

2 Bad email feedback system is present.

Users can give feedback via email or afeedback form

5 User help senate give user to contact theadministrations via email.

Confirmation screen is provided for all payments

5 User has to individually confirm, the purchaseorders.

All system feedback is timely 1 System feedback consumes lot of time.Web Accessibility Rank Explain the rank

Site follows current web standards 4 Ibuy.lk use the current CSS systemsImages and animations 5 Image and animations fit correctly in different

resolutionsImage maps 2 There is no such dedicated image map.Multimedia 3 Actually there is no such audio and video

multimedia used in the site.Consistency Rank Explain the rank

The same word or phrase is usedconsistently to describe an item

4 The user can experience consistence withinthe whole site.

Link reflects the title of the page towhich it refers

2 The address link does not give a clear ideaabout which page are you in.

Table 25 Criteria measure website

5.2 Strengths and Weaknesses of the web site

Strengths Weaknesses

Navigation

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• Link to the home page is effectively presented

• Have good accessibility for the key aspectsof the site.

• No automatic search suggestions are given.

User Control

• Has a gentle flow of the site • User faces difficulty in going back in somelocations of the site.

Functionality

• Easy to recognise labelling • Doesn’t have and use full plug-in involvedLanguage and Content

• Provides the necessary information • A detailed descriptor is lacking for some products

Help and user guides

• Does not require additional help form a 3rd party

System and user feedback

• User is not getting a good feedback on the process

Web Accessibility

• Works really well in all resolutions anddifferent browsers

Consistency

• Good consistency is mantling throughoutthe site

• Address bar does not give good idea aboutthe location

Table 26 Strengths and Weaknesses of the web site

5.3 Creative suggestions

Criteria Suggestion

Navigation Provide predictive search engine support, where depending on part of the

keyword which gives automatic suggestions.

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User Control To allocate a 24/7 live chat user help desk that will address all the problems

Functionality Provide 3D animations where the consumer can get a good idea about the

product

Language

and Content

For each and every product once they purchase and used it let them to make a

review or leave a comment about the product.

Help and

user guides

Provide audio and visual support for the product in order customer to get a good

idea about the product

System and

user

feedback

Link up with a mobile application that will help the user to find out the current

status of the delivery and to give feedback on the service.

Web

Accessibility

Adjust the sites capabilities to work with new OS like ANDRIOD and WM 7 in

tablets

Table 27 Creative suggestions

Conclusion

Ibuy.lk is an online shopping portal which introduced by Dialog Telekom. Today ibuy.lk is the

top player in the industry. Therefore a critical internal and external environmental analysis has

been carried out to analyze and evaluate the findings. Furthermore ibuy’s online web sites’

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Business model and Revenue model has also been evaluate in order to find out the current

position of the web site.

In aliened with the company objectives, current E-CRM strategies have been evaluated and new

strategies have been suggested in order to improve the effectiveness of the website. Also acomparison survey on the user friendliness and effectiveness of the site has been conducted

taking to account the online retail giant Amazon.com.

Finally recommendations have been suggest eliminating the weaknesses pointed in the survey.

Referencing

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[Accessed: 20 June 2011]

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http://www.alexa.com/siteinfo/ibuy.lk

http://www.apmf.org.sg/apmf.html

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2011]

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Appendix

Appendix 1

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Source: Income & Expenditure Survey (2011)

The statistical data of the income level and its break down structure in the year 2009 2010.

Appendix 2

Keywords analyzes

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Documents

Final IEM Nirmal