a coparative study of brick vs clicks with special referance t purcasing a laptop

8/6/2019 A Coparative Study of Brick vs Clicks With Special Referance t Purcasing a Laptop

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MEDI-CAPS INSTITUTE OFTECHNOLOGY & MANAGEMENT

ASSIGNMENT ON

Brick & Mortars Vs Clicks & Mortars

Sub Purchase a laptop

SUBMITTED TO: SUBMITTED BY:

MR. AMIT OM PANDEY Manoj Kumar Singh

Komal Thombre

Kanchi Sankule

Ekta Verma

Kratika Bhadoria

MBA 1 St SEC. A


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INDEX

I. INTRODUCTION

A. TOPIC

B. POINTS TO DO

II. PRIMARY REQUIREMENTS

III. BRICKS & MORTAR APPROACH

A. INTRODUCTION

B. MARKET RESEARCH

IV. CLICKS APPROACH

A. INTRODUCTION

B. MARKET RESEARCH

V. COMPARISONVI. PROS & CONS / DOS & DONTS

VII. CONCLUSION

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INTRODUCTION

A.TOPIC : - PURCHASE A LAPTOPThe topic is Purchase A Laptop

To bring the awareness among us so that we can purchase afunctionally, economically, & presentable Laptop.

Distinguish between different companies of laptops.

To give the idea of clicks & bricks approach in purchasing a laptop.

B. POINTS TO DO :-

To evaluate the product in Bricks Vs Clicks

To evaluate the customers demand & sellers quality

Comparison of TIME-COST-SCOPE-QUALITY

The criteria of cost effectiveness at each channel.

Competition & Competitive Strength (BCG & 5 FORCE MODELS)

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BRICKS & MORTAR APPROACH

A. INTRODUCTION

Brick and mortar (B&M) refers to a company that possesses abuilding or store for operations ]. The name is a metonym derived from thetraditional building materials associated with physical buildings bricks andmortar in contrast with online stores, which have no physical presence.

In the jargon of ecommerce , brick and mortar businesses arecompanies that have a physical presence a physical store and offer face-to-face consumer experiences. This term is usually used to contrastwith a transitory business or an internet-only presence, such as an online shop . An example would be the movie-rental shop Blockbuster Video , whichhas physical stores and is in competition with the newer online rentalservices offered by Netflix .

Definition :-

Bricks and mortar refers to businesses that have physical (rather thanvirtual or online) presences - in other words, stores (built of physical materialsuch as bricks and mortar) that you can drive to and enter physically to see,touch, and purchase merchandise. This term is used as the basis for the

term clicks and mortar, a business that sells products and services on theWeb as well as from physical locations.

In an ongoing trend, large businesses that existed before the inventionof the Web (and were therefore bricks and mortar businesses) are becomingclicks and mortar businesses. Companies like Amazon.com and others thathave never owned a bricks and mortar storefront are generally known asdotcom companies.

B. MARKET RESEARCH

Pre-purchasing

There are a number of activities that are required to be done prior tothe purchasing. First of all specify our basic requirements:

Basic requirements

BUDGET 40,000/-

Processor Intel Core 2 Duo

Memory - 3GB - 4GB (DDR2)4
http://en.wikipedia.org/wiki/Brick_and_mortar_business#cite_note-0http://en.wikipedia.org/wiki/Metonymhttp://en.wikipedia.org/wiki/ECommercehttp://en.wikipedia.org/wiki/Online_shophttp://en.wikipedia.org/wiki/Online_shophttp://en.wikipedia.org/wiki/Blockbuster_Videohttp://en.wikipedia.org/wiki/Netflixhttp://searchsoa.techtarget.com/sDefinition/0,,sid26_gci214392,00.htmlhttp://en.wikipedia.org/wiki/Metonymhttp://en.wikipedia.org/wiki/ECommercehttp://en.wikipedia.org/wiki/Online_shophttp://en.wikipedia.org/wiki/Online_shophttp://en.wikipedia.org/wiki/Blockbuster_Videohttp://en.wikipedia.org/wiki/Netflixhttp://searchsoa.techtarget.com/sDefinition/0,,sid26_gci214392,00.htmlhttp://en.wikipedia.org/wiki/Brick_and_mortar_business#cite_note-0


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Hard Drive- 320 GB SATA

Display- 14-15 INCH

Battery Backup- 150 (min.)

Optical Drive : DVD-RW

OS- Windows 7

Others - Bluetooth, 3 USB ports, WiFi, integrated Web cam, 8-in-onecard reader,

Warranty- one year (at least).

1. Number of Vendors:

Whenever one enters into a market for purchasing the primary thingthat comes to us is the vendor which we have to deal with in order to get our desired product. First of all it requires some market analysis which includesthat how many vendors for that product are present in the market? we thengather the prerequisite information about them. The Main Vendors we havevisited:-

2. Pre-requisitesto Start Marketing:

When we go for marketing in our traditional way it requires a lot of time. First we have to check the experience of the vendor in the market thatfor how much time he has sustained in the market, after which we come tothe value being provided by him to the customers. This takes a lot of timeand expenses that include visiting each vendor available and taking theinformation regarding the product. It must satisfy our desired configuration of

the product.

1. E-Zone, Vijay Nagar

2. Delta Comp. ,RNT Marg

3. Dee Pee Network solutions,Saket Nagar

4. Raj Comp., Bhawar Kuoan

5. Maheshwari Comp. , Geeta Bhawan

6. E-Zone, Vijay Nagar

7. Lotus, Sapna Sangeeta

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3. Vendor Terms Related To Quality And Quantity:

The second thing that comes regarding the selection of our desiredproduct is the quality that is provided by the vendor. When it comes tospending such a lot of time and money to buy laptop what one requires isthe product quality. We need to check that the product is genuine along with

all the features of it including the RAM, processor, operating system andother primary requirements.

4. Retailing V/S Bulk Purchasing:

The next aspect to be kept in mind is the type of purchase we have todo. Whether we have to buy it in retail or in bulk, in both the cases whatprivilege is the vendor providing. Is he giving any sort of discount or some

extra accessories along with the product?Here our requirement is to get a single laptop so we check out what

extra facilities are given by the vendor i.e. the accessories like mouse,headphones, pen drive etc.

5. Product Specification:

When the vendor gives us product specification it should match with that

of ours. There are numbers of brands available in market:-

HP/Compaq

Dell

Acer

Lenovo

Sony

HCL

LG

Toshiba

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6. Product Evaluation Criteria:

Product reliability, Price of the product, People (Dell users reviews) etc.

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Market share of different laptops in India

13%

27%

13%5%

9%

33% DellHP/Compaq

Acer ToshibaLenevoOther

6. Total Time Spent:

The total time we spent in finding our requirement is about 4 -5 hr.

7. Vendors Evaluation Criteria:

We evaluate the vendor according to not only their reliability(authorized center of company), licensed and pre-purchase servicesbut also the post-purchase services provided by them.

Comparative Study of Vendors :-

Name of Vendors Name of Products

InitialPricegiven

Price after Bargain

Pre-purchase

services

post-purchase

services

E-zone

TI Mall

Compaq

Dell

Lenevo

42000

41500

36200

42000

41500

36200

Digital photoframeworth 5000

One Year warranty

Computer Glry

RNT Marg

Compaq

Acre

40800

31400

40000

30000

Mouse, headphone, pendrive

One Year warranty

Louts

Sapna sangita

HP

Compaq

Dell

47000

41000

40800

47000

41000

40800

Wirelessheadphone

(worth 1500/-)

One Year warranty & techsupport

Raj Computer

Bhawar Kuan

Acre

Compaq

31000

41000

29800

40200

Mouse, headphone, pendrive

One Year warranty,Techassistance

Maheshwari Cmptr Compaq 41000 39900 2 GB pendrive One Year warranty

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Geeta Bhawan Dell 41300 40500

8. Transport convenient:

One of the criteria for selecting the vendor or the type of product webuy is that how that product will reach to us after purchasing. There arecertain instances where we get the product delivered to us after a few daysof purchasing as it requires some time for shipment. Also we can get hand tohand delivery of the product. In this case as we go for the traditional bricksand mortars we more often come across the other type of delivery i.e. handto hand. We give the payment and the product is in our hands. It is oftenconvenient because we are quite sure about the quality and the condition of the product while taking it home. We can beforehand check for the detailsregarding the product and its specifications. There are also very less

chances of damages probable to happen at the time of shipment anddelivery and if in case there are some issues it would be more tiresome toget it replaced.

Why we have chosen Dell?

Positive feedback by dell users (friends & relative).

Good feedback from tech persons and vendors.

Online data backup facility (Dell datasafe online).

Onsite service facilities.

Online technical support center.

19.9% market share in Indian market.

34% per year growth rate.

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CLICKS APPROACH

A. INTRODUCTION

Bricks-and-clicks is a business model by which a company integratesboth offline ( bricks ) and online ( clicks ) presences. It is also known as click-and-mortar or clicks-and-bricks , as well as bricks, clicks and flips , flipsreferring to catalogs. One of the most major examples of this is Wal-Mart' sSite-to-Store centers.

For example, an electronics store may allow the user to order online, butpick up their order immediately at a local store, which the user finds usinglocator software . Conversely, a furniture store may have displays at a localstore from which a customer can order an item electronically for delivery.

The bricks and clicks model has typically been used by traditionalretailers who have extensive logistics and supply chains. Part of the reasonfor its success is that it is far easier for a traditional retailer to establish anonline presence than it is for a start-up company to employ a successfulpure "dot com" strategy, or for an online retailer to establish a traditionalpresence (including a strong brand).

The success of the model in many sectors has destroyed the credibility of analysts who argued that the Internet would render traditional retailersobsolete through disintermediation .

In Clicks Approach , we purchase from the website itself, payment isdone online and transport or shipment is provided by the vendors of thatwebsite only and there is not all bricks exist.

B. MARKET RESEARCH

STEPS - I : Getting information about online purchasing of laptop with

the help of website google.com as a search engine-

2. Search for the appropriate site for buying the laptop

Here we found so many website but seleceted following and find there

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http://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/On-line_and_off-linehttp://en.wikipedia.org/wiki/On-line_and_off-linehttp://en.wikipedia.org/wiki/On-line_and_off-linehttp://en.wikipedia.org/wiki/On-line_and_off-linehttp://en.wikipedia.org/wiki/On-line_and_off-linehttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/wiki/Locator_softwarehttp://en.wikipedia.org/wiki/Disintermediationhttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/On-line_and_off-linehttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/wiki/Locator_softwarehttp://en.wikipedia.org/wiki/Disintermediation


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authenticity and usefulness by the help of www.websiteoutlook.com:-

3. Choosing best product and best website

We have choosen dell INSPIRON 1440 and www.dell.com because:-

Best Customer Reviews (positive feedback by dell users). Good feedback from tech persons Best website traffic Ranking. Online data backup facility (Dell datasafe online). Facility to Customise our own PC. Onsite service facilities. Online technical support center. 19.9% market share in Indian market. 34% per year growth rate.

4. Online order Submission

Website Daily pagepreview

Traficranking

Daily revenuein ($)

shopping.rediff.com 1111 1162195 35

dell.in.com 7142857 154 21431

ebay.in 891410 1234 2676

buylaptop.info 228 4811172 21

naaptol.com 143229 7680 431.92

futurebazaar.com 76 14664512 12.6

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http://www.dell.com/http://www.dell.com/


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Here we are getting online orderingfacility and we have choosen DellsINSPIRON 1440 model according toour required cofiguration because dellis also providing facility of

customisation.

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5. e-payment Here we can use any payment option as per our account.

6. Final submission of order-

After completing payment process we have provided a IRN numberby the use which we can check our order/delivery staus.

9. Delevery of goods

Dell India is providing the ordered goods by blue Dart corrier servise with in 72 hrs in main cities of India and with in 7 days atany part of the country. The shipment charges for any place inIndia will be Rs. 900/-.

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COMPARISON of Brick Vs Clicks

I. TIM E ANALYSIS

II.COST ANALYSIS

14

7

3

01

2

3

4

5

6

7

8

910

Time(in Hrs) spent on market researchBricks Clicks

3

72

010

20

30

40

50

60

70

80

Time (in Hrs) for dileveryBricks Clicks


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To t a l P r i c e o f La

3 0 0 0 0

3 2 0 0 0

3 4 0 0 0

3 6 0 0 0

3 8 0 0 0

4 0 0 0 0

4 2 0 0 0

B ricks C licks

A p p r o a c

Final Cost of laptop provided in clicks is reasonable than bricks as thereis no vendor in between and in clicks we directly buy the laptop from thecompany.

III. Services

15

Expenditure in M arket Rese arch

0

10

20

30

40

50

60

70

80

Bricks Clicks

Approach of Marketting

E x p e n

d i t u r e

i n ( R s . )


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Pros

1. The convenience of shopping whenever you want. Online stores dontclose.

2. No traveling required. You dont have to drive or take publictransportation, park, deal with mall traffic, bad weather, etc.

3. You dont have to deal with one on one contact. All correspondence canbe made through e-mails and phone calls. So, if you are not a peopleperson, this may be the place for you. Also, if you get e-mails, you haveproof of what you were told in writing, and you have the name of the personwho sent it.

4. Some time there are so many offer (discount) for online payments.

5. You dont have to have a ton of money on youjust a credit card andwhatever is required on their online form (usually address, perhaps phonenumber and/or e-mail address).

6. Traditionally, an online store has very low overhead. Since there is noneed to pay for retail display space, storage costs are negligible or non-existent

7. What could be handier than shopping from the comfort of your ownhome? You dont have to contend with crowds, dressing up to go out, or wasting fuel.

CONs:

1. Some times you wont get what you order right away. In other words,those Godiva chocolates wont be beamed over to your home, you will haveto wait for them. Most likely you will pay shipping fees, and often those fees

are steep, especially if you want the items delivered quickly. You not onlyneed to shop around to find a good price on a product.

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2. Websites can go down. Often you can fill out a page or pages of information and then you get that oh so lovely message that there has beenan error. Sometimes you can be unsure as to whether or not your order even went through.

3. There are sales clerks right at the store to help you out. They cant hideout on you if you have questions. Sometimes it is difficult to get a hold of theCustomer service reps online. You may end up waiting on the phone for along time. Sometimes they even hang up on you by mistake and then youhave to go through the whole waiting process again.

4. Your local paper does have coupons for discounts at local brick & mortar

stores. Sometimes once you add on the shipping costs, the brick & mortar store is still the better choice.

5. Security is a big issue. People still feel leery about paying via creditcard over the internet, and as well they should. Not all companies have asecure system down yet, and since the internet is still relatively new,security, or lack thereof, is still an issue.

Pros & Cons of Clicks

PROs:

1. Online stores are newer and seem to be really competitive right now.Perhaps they are still adjusting and are still trying to find a good, comfortable

ground to stand on. During this adjustment period, there are a lot of goodbuys to be had. It seems to me that if you shop around, you can still findsome amazing prices.

2. Brick & mortar stores have been around for a while. They have their feetsolidly on the ground and often know what type of prices to offer. This canbe a good or bad thing depending upon the company. Some have alwaysbeen good prices; some have not.

3. Many times the online store has more products/a bigger selection to

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offer.

4. At a brick & mortar store, you not only get the credit card option, but youcan pay in cash (a more anonymous wayif you like that sort of thing). Also,you arent submitting your address, so you probably wont receiveunsolicited mail, e-mail or phone calls.

CONs:

1. Many times they dont. Sometimes (ok, many times) you will find that theitem you want is out of stock. Some online companies handle this processbetter than other.

2. Pricing in Bricks generally higher due to various overheads (store,warehouse, outlets, electricity etc).

4 . Brick and mortar locations are much more dependent on local demand.If demand is weak locally, the item you want may not be carried at all. Other items are carried only seasonally, eliminating year round access to them.

5. Do you want to see it? Do you want to touch and handle it? Do you want

to feel the heft and better gauge the size? None of that may can be doneonline.

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C ONCLUSION

There definitely are pros and cons to both types of shopping, andalthough a more detailed examination could certainly be done, in general itseems that there is a place in this world for both types of stores. Asconsumers, we simply need to determine what will best meet our needs.

For Buying a laptop we think that clicks is a better option as we get theproduct directly from the company with comparably lower cost than in brickswith more reliability & authenticity.

But for the users who are not much aware of internet and friendly withonline purchasing they can go for bricks.

a coparative study of brick vs clicks with special referance t purcasing a laptop

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