E-Business

December 2023 Examination

Q.1) Suppose you’ve been hired as a digital marketing consultant for a promising startup
in the online gaming industry. After conducting an initial survey, you discovered that the
company relies on traditional tools and methods for its online operations. To boost their
business productivity, you plan to meet with the management and present various online
marketing strategies and tools commonly employed by successful e-businesses. What
types of online marketing tools and strategies would you recommend for promoting the
company’s operations in India? (10 marks)

Ans 1.

Introduction

India, with its diverse populace and rapidly growing internet penetration, offers an enormous
potential for online gaming startups. Yet, tapping into this vast market demands more than just
an innovative product; it requires an effective online marketing strategy. Traditional tools and
methods might have served businesses well in the past, but in this digital age, especially in a
tech-forward sector like online gaming, they might not suffice.

Concept & Application

Suppose you’ve been hired as a digital marketing consultant for a promising startup
in the online gaming industry. After conducting an initial survey, you discovered that
the company relies on traditional tools and methods for its online operations. To
boost their business productivity, you plan to meet with the management and
present various online marketing strategies and tools commonly employed by
successful e-businesses. What types of online marketing tools and strategies would
you recommend for promoting the company’s operations in India:
For a startup in the online gaming industry looking to boost its business productivity
and promote its operations in India, there are several online marketing strategies and
tools that can be highly effective. Here are some recommendations:

1. Search Engine Optimization (SEO):

• Optimize the company's website for search engines to improve organic visibility.

• Use relevant keywords and phrases related to online gaming in India.

• Create high-quality, original content that appeals to Indian gamers and

addresses their interests.

2. Content Marketing: Content marketing is a primary form of online marketing that

companies often incorporate into nearly every other type of digital marketing. It
involves using content on the internet to increase brand awareness, provide valuable
information to potential and current customers, generate leads, and increase traffic.
The primary objective of content marketing is typically to create and distribute
relevant and valuable content that attracts a certain demographic and increases the
likelihood of turning these viewers into customers.

3. Social Media Marketing: Social media marketing includes using various social
media channels to connect with your target audience and increase your company’s or
brand’s overall online presence. You can also use this form of marketing to drive
traffic to your website and increase sales.

• Establish a strong presence on popular social media platforms in India, such as

Facebook, Instagram, and Twitter.

• Share regular updates about new game releases, promotions, and engage with
the gaming community.
• Consider influencer partnerships with Indian gaming influencers to expand reach.

4. Email Marketing: Email marketing is a popular online marketing tool that

companies use for a variety of reasons. Many companies rely on email marketing to
inform potential and existing customers of sales, events, discounts, and new products.
They may also use email marketing to help generate more website traffic by including
links to the company’s website in the email.

• Build an email list of subscribers interested in online gaming.

• Send regular newsletters with updates, promotions, and exclusive offers.

• Personalize emails to cater to different gaming preferences.

5. Online Advertising:

• Utilize paid advertising channels like Google Ads and social media ads to reach a
broader Indian gaming audience.

• Implement geotargeting to focus advertising efforts on specific regions in India.

• A/B test ad creatives and landing pages for optimization.

6. App Store Optimization (ASO):

• If the company has gaming apps, focus on optimizing them for Indian app
stores.

• Use relevant keywords, create compelling app descriptions, and encourage user
reviews and ratings.
7. Affiliate Marketing: Affiliate marketing is when a company provides a marketer
with a commission for advertising its products or services.

• Partner with gaming-related websites or influencers to promote the company's

products in exchange for a commission.

• Affiliate marketing can help reach a niche audience in India effectively.

8. Online Gaming Communities:

• Engage with and participate in online gaming communities, forums, and social
groups in India.

• Share valuable insights, answer questions, and promote the company's products
subtly.

9. Analytics and Data Analysis:

• Use analytics tools to track and measure the performance of marketing

campaigns.

• Continuously analyze data to make data-driven decisions and optimize

strategies.

10. Mobile Marketing:

• Given the widespread use of smartphones in India, consider mobile-focused

marketing strategies.

• Develop mobile-friendly websites and mobile app marketing campaigns.

11. Local SEO:

• Optimize for local search to attract gamers in specific cities or regions within
India.

• Ensure the company's online gaming venues are listed in local directories and
maps.

12. Gamification and User Engagement:

• Implement gamification elements within the website or app to engage users and
keep them returning.

• Offer loyalty programs, challenges, and leader boards.

13. Pay Per Click (PPC):

Pay-per-click advertisements are ads on websites and search engines that direct
people to a company’s website or online store. As you can probably determine from
the name, these advertisements then charge your company every time someone
clicks on them.

For example, you may create an ad for your website using Google Ads. Google then
displays this ad on search results for a specific keyword of your choosing. In return,
you pay Google Ads 50 cents each time someone clicks on the ad and visits your
website. Other common PPC channels include Facebook ads, Instagram promotional
campaigns, and Twitter ad campaigns.

Conclusion
It's crucial to customize these strategies and tools to fit the company's unique target
audience, goals, and budget. Regularly monitor and adapt the marketing efforts
based on performance and evolving market trends. Additionally, consider conducting
market research to gain deeper insights into Indian gamers' preferences and
behavior, which can inform the strategies further.

Q.2) As the proprietor of a popular cloud kitchen brand, you are currently exploring
various revenue models to diversify and boost your streams of income. Explain the
different types of revenue models applicable to e-businesses. Additionally, identify which
revenue models are most suitable for the popular cloud kitchen brand. Address the
potential challenges associated with each revenue model and how they may influence the
success of the cloud kitchen. Furthermore, analyze the influence of technology on these
revenue models and discuss how technology can be utilized to optimize the revenue of the
cloud kitchen. (10 marks)

Ans 2.

Introduction

The cloud kitchens are centralized commercially registered food production facilities that rent
space for one to two to dozens of restaurants for optimized food delivery. There are several
brands or virtual restaurants in a cloud kitchen, all operated under one roof, or the kitchen can
be run by different suppliers like an incubator. Picture a large warehouse containing many steel
stations, hood vents, stoves, ovens, and sinks, with their own orders coming directly from
clients. Picture the large station with its own mini-restaurants.

Cloud menu items are optimized to make food quality easy to manufacture and reliable upon
delivery. Cloud cuisines can often be situated physically outside of town in industrial
complexes, offering driver parking, driver’s waiting areas (often with order times monitoring
screens) and seamless pick-up check-in stations. All designed to deliver food as soon as
possible to the door and in the customer’s hands.
Cloud cuisines are tech-friendly. You are using your smartphone for food applications, such as
UberEats, Grubhub, and Doordash, that are now omnipresent. They use large quantities of data
to determine what kinds of foods to produce and when demand is most likely to be high. Hot
wings, for example, are very popular between 11pm-2am in the vicinity of schools. These data
drive rapid, almost in real-time, adjustment and optimization.

Concept & Application

Diversifying revenue streams is a smart move for a cloud kitchen brand looking to boost
income. There are several revenue models applicable to e-businesses, and choosing the right
ones depends on the specific characteristics and goals of your cloud kitchen. Here are some
common revenue models for e-businesses and an analysis of their suitability for a cloud kitchen
brand:

1. Subscription Model:

• In this model, customers pay a recurring fee for exclusive benefits or access to premium
services. For a cloud kitchen, this could involve offering a subscription-based meal plan with
regular deliveries.

• Challenges: Ensuring that customers continue to find value in the subscription and
maintaining a low churn rate can be challenging.

2. On-Demand Model:

• Customers pay for individual orders placed through your cloud kitchen's website or app.
This is the most straightforward revenue model for a cloud kitchen.

• Challenges: Intense competition in the on-demand food delivery industry can make it
challenging to stand out.
3. Marketplace Model:

• You can act as a marketplace for other cloud kitchens or food vendors, charging them a
fee or commission for using your platform to reach a larger customer base.

• Challenges: Ensuring quality control and maintaining a strong brand reputation when
offering a variety of food options from different vendors can be a challenge.

4. Advertising and Sponsorship Model:

• You can generate revenue by displaying ads from other businesses or partnering with
sponsors in the food and beverage industry.

• Challenges: Balancing ad placements without harming the user experience or detracting

from your brand image is crucial.

5. Data Monetization Model:

• You can collect and analyze customer data to offer insights to other businesses or third
parties. This can be especially useful if you have access to a large customer base.

• Challenges: Striking a balance between data collection and customer privacy can be a
significant challenge.

6. Franchise or Licensing Model:

• You can franchise your cloud kitchen brand or license your brand to other kitchen
operators, earning fees or royalties.

• Challenges: Maintaining brand consistency and ensuring the quality of food across
different locations can be complex.
7. Meal Kit Subscription Model:

• Offer meal kit subscriptions, providing customers with pre-portioned ingredients and
recipes for them to cook at home.

• Challenges: Ensuring the freshness and quality of ingredients, as well as effective logistics
for meal kit delivery.

The most suitable revenue models for a cloud kitchen brand may depend on the brand's unique
selling points, customer base, and operational capabilities. For instance, if the cloud kitchen has
a strong customer loyalty base, a subscription or loyalty program might be effective. On the
other hand, if the brand wants to attract a wide range of customers, the on-demand or
marketplace model could be more appropriate.

Technology plays a vital role in optimizing revenue for a cloud kitchen:

1. Online Ordering Platforms: A user-friendly website and mobile app for ordering are
essential for a seamless customer experience.

2. Data Analytics: Utilize data analytics to understand customer preferences and behavior,
allowing for personalized marketing and menu recommendations.

3. Inventory and Supply Chain Management: Implement technology to streamline

inventory control, order management, and delivery logistics, reducing costs and improving
efficiency.

4. AI and Machine Learning: Use AI and machine learning for demand forecasting,
dynamic pricing, and menu optimization.

5. Digital Marketing: Leverage digital marketing tools and platforms to target the right
audience with personalized offers and promotions.
6. Customer Relationship Management (CRM): A CRM system can help build and
maintain customer relationships, leading to repeat business.

7. Feedback and Review Management: Use technology to collect and analyze customer
feedback, addressing issues promptly to maintain a positive reputation.

Conclusion

The successful application of technology can significantly impact the efficiency, customer
satisfaction, and overall revenue generation of a cloud kitchen brand. However, it's crucial to
adapt and evolve these strategies as technology and customer preferences continue to change in
the dynamic e-business landscape.

Q.3) The rapid growth of online shopping for gifts in India has led to the
increased significance of providing a seamless and user-friendly experience to
customers. A critical aspect of this experience lies in the shopping cart
capabilities offered by online gift apps. Provide an overview of the online gift
app market in India, highlighting key trends and growth factors by explaining
how the market has evolved over the years to meet customer demands and
preferences.
a) Discuss the significance of shopping cart by identifying at least three different types of
shopping cart capabilities that online gift apps in India can offer. For each capability,
provide a comprehensive explanation and illustrate how it benefits users during the
shopping process. (5 Marks)

Ans 3a.

Introduction

The online gift app market in India has witnessed a transformative evolution, buoyed by the
country’s vast digital adoption and cultural emphasis on gifting during numerous festivals and
occasions. As consumers progressively turn to online platforms to select the perfect gift, the
user experience offered by these platforms becomes paramount. Central to this experience is the
shopping cart, which, if optimized, can significantly enhance the shopping cart capabilities that
online gift apps in India can offer.

Concept & Application

Shopping carts play a vital role in the success of online gift apps in India and around the world.
They are a fundamental part of the e-commerce experience, facilitating the selection and
purchase of products. Here are the three major types of shopping cart capabilities offered
by online gift apps in India to users along with their benefits:

1. Product Management:

• Capability: Users can add, remove, and manage items in their shopping cart.

• Benefits: This capability allows users to easily select and organize the gifts they want to
purchase. This provides flexibility, allowing users to make changes to their cart before
proceeding to checkout. Users can add multiple items, compare products and make an informed
decision without the pressure of an immediate purchase. It also saves you the trouble of finding
items again if they move away from the app.

2. Value Calculation and Summary:

• Efficiency: Shopping cart calculates the total price of each item including applicable taxes,
shipping charges and discounts. Users can view a summary of their orders showing cost details.

• Advantages: This capability ensures transparency in the purchasing process. Users can easily
understand the total cost of their purchases, helping them budget effectively. It also allows
users to apply discount or promotional codes and see how they affect the final price. This
transparency builds trust and confidence in online gift apps, as users know they won't encounter
hidden costs at checkout.
3. Wish Lists and Saved Carts:

• Capability: Users can save items to a wish list or create multiple saved carts, allowing them to
plan and organize their gift selection for different occasions.

• Benefits: This capability enhances the user experience by enabling users to select and organize
their gift options. Users can create wish lists for future reference or save multiple carts for
different events or recipients. This simplifies the shopping process, as users can return to their
curated selection without having to search for products again. This feature is especially
valuable for gift apps, where users often plan purchases for special occasions.

Conclusion

These shopping cart capabilities collectively enhance the user experience and contribute to the
success of online gift apps in India. They streamline the shopping process, provide clarity on
pricing, and provide convenience by allowing users to plan and organize their gift purchases.
Additionally, the transparency and flexibility provided by these capabilities is essential to
building trust and retaining customers in the competitive e-commerce landscape.

b) Evaluate the advantages and disadvantages of each shopping cart capability discussed
in Part a. Analyze how these features impact customer satisfaction, app performance, and
revenue generation for gift apps by comparing the three shopping cart capabilities in
terms of their effectiveness in meeting customer needs and enhancing the overall
shopping experience. (5 Marks)

Ans 3b.

Introduction

The e-commerce landscape in India has witnessed a transformative rise, with the online gift app
segment standing out due to its unique demands and offerings. With occasions like festivals,
birthdays, anniversaries, and cultural celebrations being central to Indian ethos, the convenience
of online gifting has found a massive audience. Key to this transition has been the user
experience, with shopping cart capabilities playing a pivotal role.

Let's evaluate the advantages and disadvantages of each shopping cart capability discussed in
the previous response and analyze how these features impact customer satisfaction, app
performance, and revenue generation for gift apps:

1. Product Management:

• Advantages:

• Customer Satisfaction: This capability enhances customer satisfaction by allowing users to

easily add, remove, and manage items in their cart. It empowers users to personalize their
shopping experience and make informed decisions.

• App Performance: It contributes to app performance by reducing the frustration of users

who want to make changes to their cart. A smooth product management process keeps users
engaged and reduces cart abandonment rates.

• Revenue Generation: Effective product management can lead to higher sales because users
can efficiently browse, select, and modify items, increasing the likelihood of completing a
purchase.

• Disadvantages:

• There are relatively few disadvantages to this capability, as it is a fundamental feature of

any shopping cart system.

2. Price Calculation and Summary:

• Advantages:

• Customer Satisfaction: Providing a clear breakdown of costs and the ability to apply
discounts enhances customer satisfaction. Users appreciate transparency and clarity in their
transactions.

• App Performance: It improves app performance by reducing the chances of users

abandoning their carts due to unexpected or unclear costs. This results in higher conversion
rates and revenue.

• Revenue Generation: Transparent pricing and the ability to apply discounts can lead to
increased sales as users have a clear understanding of the final cost and any potential savings.

• Disadvantages:

• Complexity: Implementing accurate price calculation and displaying a comprehensive cost

breakdown can be technically challenging. Any pricing errors or discrepancies can negatively
impact the user experience.

3. Wish Lists and Saved Carts:

• Advantages:

• Customer Satisfaction: Offering wish lists and saved carts enhances customer satisfaction
by allowing users to plan, organize, and return to their selections. It caters to the need for long-
term planning and gift-giving occasions.

• App Performance: While saving and managing multiple lists can add complexity, it's a
valuable feature that can increase user engagement and app usage over time.
• Revenue Generation: This capability can lead to increased revenue by encouraging users to
return to the app for various occasions and by simplifying the process of selecting and
purchasing gifts for multiple recipients.

• Disadvantages:

• Complexity: Managing wish lists and multiple saved carts can be challenging, both in
terms of user interface and technical implementation. It requires careful design to ensure ease of
use.

In summary, each of the shopping cart capabilities has its unique advantages and, to some
extent, some complexities. In terms of effectiveness in meeting customer needs and enhancing
the overall shopping experience, all three capabilities are important:

• Product Management is fundamental for providing flexibility and convenience in the

shopping process.

• Price Calculation and Summary is critical for transparency and trust, which are central to
customer satisfaction and revenue generation.

• Wish Lists and Saved Carts cater to long-term planning, organization, and customer
loyalty, which can positively impact customer satisfaction and revenue.

Conclusion

Effectiveness depends on the specific context and target audience of the gift app. To maximize
customer satisfaction and revenue, a well-designed shopping cart should ideally incorporate all
three capabilities, offering a seamless and transparent experience for users. It's crucial to
prioritize user testing and continuous improvement to address any potential complexities or
challenges in their implementation.