MEDI-CAPS INSTITUTE OF TECHNOLOGY & MANAGEMENT

ASSIGNMENT ON

Brick & Mortars Vs Clicks & Mortars

Sub Purchase a laptop

SUBMITTED TO:

SUBMITTED BY: Manoj Kumar Singh Komal Thombre Kanchi Sankule Ekta Verma Kratika Bhadoria

MR. AMIT OM PANDEY

MBA 1St SEC. A

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. VI.

COMPARISON PROS & CONS / DOS & DONTS

VII. CONCLUSION

INTRODUCTION

A.TOPIC : - PURCHASE A LAPTOP The topic is Purchase A Laptop To bring the awareness among us so that we can purchase a functionally, 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)

BRICKS & MORTAR APPROACH

A. INTRODUCTION Brick and mortar (B&M) refers to a company that possesses a building or store for operations]. The name is a metonym derived from the traditional building materials associated with physical buildings bricks and mortar in contrast with online stores, which have no physical presence. In the jargon of ecommerce, brick and mortar businesses are companies that have a physical presence a physical store and offer face-to-face consumer experiences. This term is usually used to contrast with a transitory business or an internet-only presence, such as an online shop. An example would be the movie-rental shop Blockbuster Video, which has physical stores and is in competition with the newer online rental services offered by Netflix. Definition:Bricks and mortar refers to businesses that have physical (rather than virtual or online) presences - in other words, stores (built of physical material such 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 the Web as well as from physical locations. In an ongoing trend, large businesses that existed before the invention of the Web (and were therefore bricks and mortar businesses) are becoming clicks and mortar businesses. Companies like Amazon.com and others that have never owned a bricks and mortar storefront are generally known as dotcom companies. B. MARKET RESEARCH Pre-purchasing There are a number of activities that are required to be done prior to the purchasing. First of all specify our basic requirements: Basic requirements

BUDGET 40,000/-

Processor Intel Core 2 Duo Memory - 3GB - 4GB (DDR2)

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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-one card reader,

Warranty- one year (at least). 1. Number of Vendors: Whenever one enters into a market for purchasing the primary thing that 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 includes that how many vendors for that product are present in the market? we then gather the prerequisite information about them. The Main Vendors we have visited:1. 2. 3. 4. 5. 6. 7. E-Zone, Vijay Nagar Delta Comp. ,RNT Marg Dee Pee Network solutions,Saket Nagar Raj Comp., Bhawar Kuoan Maheshwari Comp. , Geeta Bhawan E-Zone, Vijay Nagar Lotus, Sapna Sangeeta 2. Pre-requisites to 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 that for how much time he has sustained in the market, after which we come to the value being provided by him to the customers. This takes a lot of time and expenses that include visiting each vendor available and taking the information regarding the product. It must satisfy our desired configuration of the product.

3. Vendor Terms Related To Quality And Quantity: The second thing that comes regarding the selection of our desired product is the quality that is provided by the vendor. When it comes to spending such a lot of time and money to buy laptop what one requires is the product quality. We need to check that the product is genuine along with all the features of it including the RAM, processor, operating system and other primary requirements.

4. Retailing V/S Bulk Purchasing: The next aspect to be kept in mind is the type of purchase we have to do. Whether we have to buy it in retail or in bulk, in both the cases what privilege 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

6. Product Evaluation Criteria: Product reliability, Price of the product, People (Dell users reviews) etc.

Market share of different laptops in India

13% 33%

27%

Dell HP/Compaq Acer Toshiba Lenevo Other

9% 5% 13%

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 services but also the post-purchase services provided by them. Comparative Study of Vendors :Name of Vendors Name of Products E-zone TI Mall Compaq Dell Lenevo Computer Glry RNT Marg Louts Sapna sangita Compaq Acre HP Compaq Dell Raj Computer Bhawar Kuan Acre Compaq Initial Price given 42000 41500 36200 40800 31400 47000 41000 40800 31000 41000 41000 Price after Bargain 42000 41500 36200 40000 30000 47000 41000 40800 29800 40200 39900 Mouse, head phone, pendrive Wireless headphone (worth 1500/-) Mouse, head phone, pendrive 2 GB pendrive One Year warranty One Year warranty & tech support Pre-purchase services post-purchase services

Digital photoframe One Year worth 5000 warranty

One Year warranty,Tech assistance One Year warranty 8

Maheshwari Cmptr Compaq

Geeta Bhawan

Dell

41300

40500

8. Transport convenient: One of the criteria for selecting the vendor or the type of product we buy is that how that product will reach to us after purchasing. There are certain instances where we get the product delivered to us after a few days of purchasing as it requires some time for shipment. Also we can get hand to hand delivery of the product. In this case as we go for the traditional bricks and mortars we more often come across the other type of delivery i.e. hand to hand. We give the payment and the product is in our hands. It is often convenient because we are quite sure about the quality and the condition of the product while taking it home. We can beforehand check for the details regarding the product and its specifications. There are also very less chances of damages probable to happen at the time of shipment and delivery and if in case there are some issues it would be more tiresome to get 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.

CLICKS APPROACH
A. INTRODUCTION

Bricks-and-clicks is a business model by which a company integrates both offline (bricks) and online (clicks) presences. It is also known as clickand-mortar or clicks-and-bricks, as well as bricks, clicks and flips, flips referring to catalogs. One of the most major examples of this is Wal-Mart's Site-to-Store centers. For example, an electronics store may allow the user to order online, but pick up their order immediately at a local store, which the user finds using locator software. Conversely, a furniture store may have displays at a local store from which a customer can order an item electronically for delivery. The bricks and clicks model has typically been used by traditional retailers who have extensive logistics and supply chains. Part of the reason for its success is that it is far easier for a traditional retailer to establish an online presence than it is for a start-up company to employ a successful pure "dot com" strategy, or for an online retailer to establish a traditional presence (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 retailers obsolete through disintermediation. In Clicks Approach, we purchase from the website itself, payment is done online and transport or shipment is provided by the vendors of that website 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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authenticity and usefulness by the help of www.websiteoutlook.com:-

Website

Daily page preview 1111

Trafic ranking
1162195

Daily revenue in ($) 35

shopping.rediff.com

dell.in.com
ebay.in buylaptop.info naaptol.com futurebazaar.com

7142857
891410 228 143229 76

154
1234 4811172 7680 14664512

21431
2676 21 431.92 12.6

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.
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4. Online order Submission

Here we are getting online ordering facility and we have choosen Dells INSPIRON 1440 model according to our required cofiguration because dell is 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 number by 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 at any part of the country. The shipment charges for any place in India will be Rs. 900/-.

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COMPARISON of Brick Vs Clicks

I.
10 9 8 7 6 5 4 3 2 1 0 Tim e(in Hrs) spent on m arket research Bricks Clicks 3 7

TIME ANALYSIS
80 70 60 50 40 30 20 10 0 3 Time (in Hrs) for dilevery Bricks Clicks

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II.COST ANALYSIS

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Expenditure in Market Research 80 70 60 Expenditure in (Rs.) 50 40 30 20 10 0 Bricks Clicks Approach of Marketting

T o ta l Pr ic e o f L a p to p
42000 40000 38000 36000 34000 32000 30000 B ricks A p p ro ac h C licks

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

III. Services
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Basically in both case services/technical assistance is directly provided by the dell company (onsite services), no need to go to the vendors shop, but in case of bricks approach vendors are offering some gift items/accessories and some application software without any cost. IV. QUALITY As in both case company is providing sealed packet therefore the in both case are same.

Compare Between Bricks & Clicks

10 9 8 7 6 5 4 3 2 1 0

Pros & Cons of Clicks

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Bricks

C licks

PROS & CONS

Pros 1. The convenience of shopping whenever you want. Online stores dont close. 2. No traveling required. You dont have to drive or take public transportation, park, deal with mall traffic, bad weather, etc.

3. You dont have to deal with one on one contact. All correspondence can be made through e-mails and phone calls. So, if you are not a people person, this may be the place for you. Also, if you get e-mails, you have proof of what you were told in writing, and you have the name of the person who 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 and whatever is required on their online form (usually address, perhaps phone number and/or e-mail address). 6. Traditionally, an online store has very low overhead. Since there is no need to pay for retail display space, storage costs are negligible or nonexistent 7. What could be handier than shopping from the comfort of your own home? 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 have to 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 only need 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 been an 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 hide out on you if you have questions. Sometimes it is difficult to get a hold of the Customer service reps online. You may end up waiting on the phone for a long time. Sometimes they even hang up on you by mistake and then you have 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 credit card over the internet, and as well they should. Not all companies have a secure 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 good buys to be had. It seems to me that if you shop around, you can still find some amazing prices. 2. Brick & mortar stores have been around for a while. They have their feet solidly on the ground and often know what type of prices to offer. This can be a good or bad thing depending upon the company. Some have always been 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 you can pay in cash (a more anonymous wayif you like that sort of thing). Also, you arent submitting your address, so you probably wont receive unsolicited mail, e-mail or phone calls. CONs: 1. Many times they dont. Sometimes (ok, many times) you will find that the item you want is out of stock. Some online companies handle this process better 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 done online.

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CONCLUSION

There definitely are pros and cons to both types of shopping, and although a more detailed examination could certainly be done, in general it seems that there is a place in this world for both types of stores. As consumers, 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 the product directly from the company with comparably lower cost than in bricks with more reliability & authenticity. But for the users who are not much aware of internet and friendly with online purchasing they can go for bricks.

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