Case Study 2: Snapdeal- Assignment-1
Snapdeal Coupon publishing and sms subscription model had some drawbacks, viz;
- Limited willingness by consumer to pay for such coupons, thus making it difficult to monetize the business model from the customers side
- High Cost involved in updating the catalog every 6 months and later in the form of SMS delivery
The probable solution for Snap deal could have been as following:
- Change the revenue source from customers to vendors; or through advertisement: Snapdeal can take a certain cut from the deals offered by the vendors to consumers for promoting their products. Alternatively, they can also charge vendors for featuring them more prominently or advertising their brand.
- A Membership card: Considering that the point in time in the case is around 2009, when the internet penetration was still low, snap deal could have issued a membership card like credit card which the customers could have carried in their wallets and showed at various partner stores to avail the offers, thereby giving touch and feel to them. Along, with the cards, weekly mailers could have been sent to the members giving details about the partner stores and the discount available. In this way, it would have been easier for snap deal, to update the offers without reprinting the booklets and incurring cost on sms.