JABONG: BALANCING

THE DEMANDS OF
CUSTOMERS AND
SUPPLIERS

Presented by,
•Pradeepkumar R(2113071)
•Hari Balaji SG(2113031)
•Varnamalya G(2113108)
Time line

2012-2013 2013-2014 2014-2015

Foundation of High profit Puma guidelines affecting
JABONG gained the JABONG sales
1.What should JABONG’s top priority be: sales, profits, customer base, or investors? Justify

1. The JABONG should be majorly contrate on customer base. Due to

the increase in no of transactions, the profit was increased from loss
of $5.6 to the profit of $26.16 million.
2. As there is increase in the new customer and no of order from
existing customer at each quarter lead to the profit.
3. The next priority on sales volume by decrease the margin of product
which may increase profit by the increase in volume sold and leads
to customer satisfaction.
2. Analyse the interdependency of Puma and JABONG. HOW SHOULD JABONG INTERPRET PUMA’S
NEW DISCOUNT POLICY?

1. In spite of Down fall of reebok, the puma and adidas used this
opportunity to increase their market share.
2. puma increased it market share by using e-retailer channels like
Myntra and JABONG.
3. JABONG used the inventory model for high turnover products to
optimize their product portfolio.
4. Puma offered a high margin to their e- retailers.
5. Puma gained a higher contribution from offline stored when
compared to their e-retailers.
 3. What would be the long-term implications of Puma’s decision on the footwear channel in India?

1. An omni channel focus would have less number of channels and these channels would be
synced up, so customers can seamlessly move from one to another when compared to
multichannel focus.
2. With Omni channel, Jabong can create a consistent customer experience for people who are
already aware of and engaging with the firm.
3. In omni channel, a customer can chose from whichever channel available to them and know that
the quality of support they receive will be the same.
4. What is JABONG’S VALUE PROPOSITION TO ITS CUSTOMERS AND SUPPLIERS? IS THERE AN
INHERENT CONTRADICTION? HOW DOES (OR HOW CAN) JABONG RESOLVE THAT?

1. Value proposition for customers:

2. Delivery on time
3. A wider range of products and a greater diversity of products
4. An improved after-sales service (i.e. problem handling)
5. Affordable prices
6. The main problem that JABONG has is that it can't meet both the customer and
supplier's value propositions at the same time. the client wants to acquire
exclusive products at a discount, but the supplier wants to keep the premium
rates. This can be avoided if JABONG keeps its premium products available
only in its website.
5. Analyse the commercial implications of all four options for Jabong and suggest the best course of action.

1. We suggest he puma altogether Should be moved to marketplace model

or puma division should be moved towards Omni channel where the
product will be ordered by customer, received and Purchased from
Conventional retailers where retailers can fixed their own price and
discounts.
2. Or we can move the core articles to market place model and SMU to
inventory model.
3. We should sell SMU at less margin (compare to the other E-retailer)and
high volume (more sales and more profit) instead of selling SMU at
high margin (less sales and less profit)