Online Promotion Strategy

To enhance consumer satisfaction and purchase intentions, online stores should start improving the reliability dimensions, such as capability of delivering products as promised, providing up-to date and accurate information, and strengthening the security of online transactions. (Lee & Lin, 2004). Online retail players have a scope to focus on new product delivery models and payment mechanisms, since customers are facing problems with the options available Ernst & Young (2012). Moreover, e-tailers should continue to offer customer with wide range of products rather than selling one or two items. Consumers expect varieties and alternatives including promotions, vouchers and discounts which may intrigue them to purchase online (Vegiayan, et al,

According to Hoffman et al (2005), marketing communication model is driven by hypermedia computer aided environment promotes e-marketing on a large scale. Email marketing, blogs, Pay per Click, affiliate marketing, banner advertisements are different forms of Internet marketing. India is witnessing a massive digital revolution. Broadband subscription rates of 3G and 4G services increased penetration of mobile internet which has led to an ever-increasing number of “netizens” and consequently broadened the country’s internet horizons. Internet has become an integral part of this growing population segment in order to connect with friends through various social networking sites, accessing emails, buying air, rail, movie tickets or ordering food. The changing lifestyles of the country’s urban population have also to an increase in online shopping. India is on the verge of an Internet boom with a projected user base of 330 million to 370 million by 2015, which will be the second largest in the world, and the largest in terms of incremental growth (McKinsey & Company

According to a report by NCAER on the ‘Indian Youth’, the population between 13-35 years was 459 million in 2009 and is projected to reach 574 million by 2020. This young population uses technology the most and is one of biggest consuming age group (Manyika and Cabral et al, 2013). Social media has given a boost to this trend. Despite country’s diverse population, disposable income has increased in India and is expected to increase at the rate of 8.5% per annum till 2015. The number of workingwomen and the size of working middle class are also increasing. Indian Consumers have larger disposable incomes, greater purchasing power and less time to spend on daily shopping. This will lead people to buy daily goods online rather than waste time and fuel to shop from a supermarket.

Brick and mortar retailers are identifying the opportunities offered by e-commerce in India and have started to open online stores. Big Bazaar through Futurebazaar.com, Shoppers Stop through Shopperstop.com, Wills Lifestyle through Shopwillslifestyle.com and TATA’s Croma through Cromaretail.com have been trying to take advantage of the online shopping wave. A Bain report states that going online has become a must for physical retailers also, especially to win new and retail critical customers. Such an integrated omni-channel strategy is also expected to enhance the offline