Solution to Assignment #1 Case Study # 2: Snapdeal

• Shortcomings of SMS based subscription service

The major shortcoming is in current distribution channels — direct sale requires large staff so quite expensive. Also, SMS based service is not convenient & costly.

Second shortcoming is in cataloguing process — it is a recurring process, need to add new coupon, remove expired coupons frequently. It also requires large on-ground staff to prepare catalogue which is expensive and difficult to scale.

Possible Solutions

Digital cataloguing looks the best option. Have a website form where customer can search and see coupons. Also, it is convenient to update coupons online.

• Shortcomings of Current Revenue Stream

There is limited coupon market, not many merchants provide coupons and conversion is also very low, limited people are ready to pay for such services.

This is low margin business and due to limited market size does not look sustainable.

Possible Solutions

SD should digitalize coupons and use advertisement on the coupon site as alternate revenue stream.

SD can partner with organizations who can buy coupons for their employees

Should use promotions/events to make awareness in customers about the services

SD should identify new market segment such as special classified coupons for wedding (get discount on wedding cloths, honeymoon package, etc.), travels (discount coupons on hotels, transportation).