Snapdeal Peer2Peer Vacation Rental Market Expansion ...
Snapdeal Peer2Peer Vacation Rental Market Expansion (Segmentation, Targeting & Positioning)
Market Analysis & Segmentation – Who is/are the market?
MARKET SEGMENTS The Peer-to-Peer Vacation Rental Program is aimed a current users of and/or those familiar with Snapdeal and its wide spectrum of products.The platform fits perfectly with Snap Deal’s no inventory, merchant based supply chain model. Snap Deal only needs to connect the Guest and the Host. Snap Deal already has a solid web marketing infrastructure built out and huge brand recognition in India. This should allow it to grab the lion’s share of market space before AirBnB and similar competitors can get a foothold in the Indian market.
Demographic Segment
Primarily, domestic Indian travelers aged 18-45 Tech savvy, web-connected Indians Adventurous travelers Current Snapdeal shoppers
Geographic Segment
Any location with adequate internet coverage on the subcontinent of India
Psychographics Segment
Travelers looking for a more authentic, local and adventurous travel experience Price conscious travelers
Behavioral Segments
Travelers seeking a singular, customizable vacation experience Travelers not afraid to take a chance on accommodations
Market Analysis & Segmentation –
What does the Market buy? ◦ ◦
When does the Market Buy? ◦ ◦
The consumer will buy when they are planning on travelling to a specific locale throughout India. The renter will offer their property whenever they are in need of extra income or might simply be out of town themselves.
Where does the market buy? ◦ ◦
The consumer will purchase a stay in a private home for a period of time agreed to by both parties– the traveler and the renter. On the other end, the renter will offer up there home or property for an earning opportunity.
The market will consist of anywhere within the Indian borders– a range The purchase/exchange will occur on the internet
Why does the market buy? ◦
The consumer chooses a peer-to-peer vacation rental through SnapDeal for the following reasons: 1. The amenities and locales vary widely and can be customized to the traveler’s interests and desires 2. Quite importantly, locations are the homes of local residences which will allow for a more organic , authentic type of vacation experience as opposed to the more sterile, tourist feel of hotels and resorts. According to Thomas Cook (India) President and Chief Operating Officer (Outbound, MICE, Domestic and Sports Tourism) Rajeev D Kale, “Arguably the most significant, systemic trend in worldwide tourism today is the demand for experiential travel — typically meant to convey the idea of more immersive, local, authentic, adventurous and active travel. The evolving young Indian traveler is showing strong demand for adrenalin-infused adventure, to meet new people, learn new things, and experience a new life.” 3. The range of prices will vary widely, allowing a traveler an opportunity to better customize and control their vacation expenditures. 4. The area coverage– due to the high number of participants– will allow for travel into areas that in some cases might not be well served (or served at all) by hotels or resorts.
Market Targeting – Who is/are the target audience(s)?
The initial test market will consist of domestic Indian Travelers. ◦ This market is absolutely massive. Certainly sufficient in its size and annual growth to provide for a considerable revenue stream. ◦ According to Indian government figures, in 2011 there were 850,856,040 domestic travelers and their was an average year over year (1991-2011) increase in domestic travelers of 11.82% The Largest Demographic Sector for peer-to-peer vacation rentals is Millennial (those aged 18-34) ◦ This is largely due to their comfort with technology in general and peer to peer applications in particular The Second Largest Demographic Sector will be those aged 34-45 According to the CIA World Fact Book, there are roughly 734 Million Indian’s in the age range of 15-45. Following successful test marketing, the program will be extended to incoming international travelers– travelers from the US, UK and Australia, for instance.
Market Positioning – Proposed brand positioning
POSITIONING The Snapdeal brand is already positioned prominently in the Indian Market. The expansion into peer-topeer vacation rental is a natural progression. The service offers Indian domestic travelers the comfort and familiarity of the Snapdeal brand while expanding into a relatively underserved market space. Snapdeal’s coveted and well-earned position in the average Indian consumer’s mind will translate into an immediate competitive position with international peer-to-peer vacation rental leader AirBnB within the Indian market space. The focus on catering solely to the Indian market space (a market with over 1 billion people), will allow for a singular marketing vision and an outreach effort from a position of incredible strength. The expansion into the vacation rental space could also offer up cross-promotional opportunities with other Snapdeal merchants and provide sales multipliers– e.g. planning on going to the beach for your vacation? Check out these beach umbrella and towel offers on Snapdeal!
Market Positioning – Communication objectives
GOALS AND OBJECTIVES OF COMMUNICATIONS. Translate Current Familiarity and Trust with Snapdeal Users Into the Travel Sector The cheapest and most targeted approach will be an initial reaching out to satisfied Snapdeal users with promotional opportunities to entice them into the peer-to-peer vacation rental space now being offered. These conversion rates will be the highest.
Snapdeal Brand Expansion The outreach to gain new customers will consist of efforts in multiple channels– both traditional and otherwise– to target the desired18-45 demographic. Social media efforts, sponsorship of travel related events and advertisements in travel publications and travel websites and blogs.
Word of Mouth / Cultural Acceptance / Belongingness The most difficult, but undoubtedly the marketing effort with the best chance of long term market effectiveness is to make the renting of vacation properties so widely used and accepted as to be a phenomenon in itself. (Think of Millennial acceptance of Uber as the preferred method of paid transport to the extent that people “Uber” to their destination). This could best be achieved with a paid effort to Indian celebrities and other “taste-makers”. These culturally significant Indian’s can make Snapdeal’s vacation rental offer seem not only reasonable but the standard with their fan bases.
Market Analysis & Segmentation – Who is/are the market?
MARKET SEGMENTS The Peer-to-Peer Vacation Rental Program is aimed a current users of and/or those familiar with Snapdeal and its wide spectrum of products.The platform fits perfectly with Snap Deal’s no inventory, merchant based supply chain model. Snap Deal only needs to connect the Guest and the Host. Snap Deal already has a solid web marketing infrastructure built out and huge brand recognition in India. This should allow it to grab the lion’s share of market space before AirBnB and similar competitors can get a foothold in the Indian market.
Demographic Segment
Primarily, domestic Indian travelers aged 18-45 Tech savvy, web-connected Indians Adventurous travelers Current Snapdeal shoppers
Geographic Segment
Any location with adequate internet coverage on the subcontinent of India
Psychographics Segment
Travelers looking for a more authentic, local and adventurous travel experience Price conscious travelers
Behavioral Segments
Travelers seeking a singular, customizable vacation experience Travelers not afraid to take a chance on accommodations
Market Analysis & Segmentation –
What does the Market buy? ◦ ◦
When does the Market Buy? ◦ ◦
The consumer will buy when they are planning on travelling to a specific locale throughout India. The renter will offer their property whenever they are in need of extra income or might simply be out of town themselves.
Where does the market buy? ◦ ◦
The consumer will purchase a stay in a private home for a period of time agreed to by both parties– the traveler and the renter. On the other end, the renter will offer up there home or property for an earning opportunity.
The market will consist of anywhere within the Indian borders– a range The purchase/exchange will occur on the internet
Why does the market buy? ◦
The consumer chooses a peer-to-peer vacation rental through SnapDeal for the following reasons: 1. The amenities and locales vary widely and can be customized to the traveler’s interests and desires 2. Quite importantly, locations are the homes of local residences which will allow for a more organic , authentic type of vacation experience as opposed to the more sterile, tourist feel of hotels and resorts. According to Thomas Cook (India) President and Chief Operating Officer (Outbound, MICE, Domestic and Sports Tourism) Rajeev D Kale, “Arguably the most significant, systemic trend in worldwide tourism today is the demand for experiential travel — typically meant to convey the idea of more immersive, local, authentic, adventurous and active travel. The evolving young Indian traveler is showing strong demand for adrenalin-infused adventure, to meet new people, learn new things, and experience a new life.” 3. The range of prices will vary widely, allowing a traveler an opportunity to better customize and control their vacation expenditures. 4. The area coverage– due to the high number of participants– will allow for travel into areas that in some cases might not be well served (or served at all) by hotels or resorts.
Market Targeting – Who is/are the target audience(s)?
The initial test market will consist of domestic Indian Travelers. ◦ This market is absolutely massive. Certainly sufficient in its size and annual growth to provide for a considerable revenue stream. ◦ According to Indian government figures, in 2011 there were 850,856,040 domestic travelers and their was an average year over year (1991-2011) increase in domestic travelers of 11.82% The Largest Demographic Sector for peer-to-peer vacation rentals is Millennial (those aged 18-34) ◦ This is largely due to their comfort with technology in general and peer to peer applications in particular The Second Largest Demographic Sector will be those aged 34-45 According to the CIA World Fact Book, there are roughly 734 Million Indian’s in the age range of 15-45. Following successful test marketing, the program will be extended to incoming international travelers– travelers from the US, UK and Australia, for instance.
Market Positioning – Proposed brand positioning
POSITIONING The Snapdeal brand is already positioned prominently in the Indian Market. The expansion into peer-topeer vacation rental is a natural progression. The service offers Indian domestic travelers the comfort and familiarity of the Snapdeal brand while expanding into a relatively underserved market space. Snapdeal’s coveted and well-earned position in the average Indian consumer’s mind will translate into an immediate competitive position with international peer-to-peer vacation rental leader AirBnB within the Indian market space. The focus on catering solely to the Indian market space (a market with over 1 billion people), will allow for a singular marketing vision and an outreach effort from a position of incredible strength. The expansion into the vacation rental space could also offer up cross-promotional opportunities with other Snapdeal merchants and provide sales multipliers– e.g. planning on going to the beach for your vacation? Check out these beach umbrella and towel offers on Snapdeal!
Market Positioning – Communication objectives
GOALS AND OBJECTIVES OF COMMUNICATIONS. Translate Current Familiarity and Trust with Snapdeal Users Into the Travel Sector The cheapest and most targeted approach will be an initial reaching out to satisfied Snapdeal users with promotional opportunities to entice them into the peer-to-peer vacation rental space now being offered. These conversion rates will be the highest.
Snapdeal Brand Expansion The outreach to gain new customers will consist of efforts in multiple channels– both traditional and otherwise– to target the desired18-45 demographic. Social media efforts, sponsorship of travel related events and advertisements in travel publications and travel websites and blogs.
Word of Mouth / Cultural Acceptance / Belongingness The most difficult, but undoubtedly the marketing effort with the best chance of long term market effectiveness is to make the renting of vacation properties so widely used and accepted as to be a phenomenon in itself. (Think of Millennial acceptance of Uber as the preferred method of paid transport to the extent that people “Uber” to their destination). This could best be achieved with a paid effort to Indian celebrities and other “taste-makers”. These culturally significant Indian’s can make Snapdeal’s vacation rental offer seem not only reasonable but the standard with their fan bases.
