Infibeam Case

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Executive Summary

Infibeam is an online retailer in India founded by former Amazon employees. India is only recently embracing internet retail shopping and Infibeam intends to increase market share and profitability by converting offline and current online shoppers to Infibeam users. Also, by expanding as first-mover in the western Indian state of Gujarat where Infibeam has just entered into an agreement with the government that will make it a first-mover there. Success is dependent on a marketing campaign that will meet all of these goals.

Infibeam grew rapidly during its first three years in business, but it did so only by word-of-mouth advertising. Infibeam has never undertaken a marketing campaign of the magnitude needed to
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Major Problem Statement

E-commerce is a relatively new market in India and Infibeam is poised to become one of its major players. In fact, Infibeam recently entered into an agreement with the western state of Gujarat that will make it a first provider there.

Only a small percentage of India’s vast population is currently online and few of those people are using the internet for retail purchases. To increase market share and profitability, Infibeam must convert offline shoppers into online, Infibeam customers.

However, Infibeam has historically relied solely on a website blog and word-of-mouth advertising to communicate with and attract new customers. These methods will not reach the offline community and Infibeam has no experience with the type of comprehensive marketing campaign that will.

Unless Infibeam can develop a strategic, comprehensive marketing plan that will reach the offline community and convince it to adopt online shopping behaviors, it will not be able to successfully take advantage of the growth opportunities, including those in the state of Gujarat.

Minor Problem Statements

Funding

Infibeam has entered into a Memorandum of Understanding with the government of Gujarat to provide funding in the amount of 2,000 crores to set up the IT platform, supply chain, delivery infrastructure, and inventory to employ 20,000 people in exchange for access to the state’s network of 18,000 e-Gram centers.

In
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