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    Marketing, Admart

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    Ankur Thakur
    This document provides information about Admart, a virtual store established in Hong Kong in 1999. It sold groceries, household items, electronics, and other products through online, phone, and fax orders. Admart aimed to compete with Park'N Shop and Wellcome using direct marketing and free delivery. However, due to intense price competition and issues with product quality and delivery, Admart ceased operations in December 2000. A SWOT analysis identifies Admart's strengths as being the first online retailer in Hong Kong and free delivery, but weaknesses included quality concerns, limited product variety, and a complex distribution system. Lessons learned include the need for thorough market research, quality products, competitive analysis, and addressing customer feedback.

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    Marketing, Admart

    Uploaded by

    Ankur Thakur
    144 views10 pages
    This document provides information about Admart, a virtual store established in Hong Kong in 1999. It sold groceries, household items, electronics, and other products through online, phone, and fax orders. Admart aimed to compete with Park'N Shop and Wellcome using direct marketing and free delivery. However, due to intense price competition and issues with product quality and delivery, Admart ceased operations in December 2000. A SWOT analysis identifies Admart's strengths as being the first online retailer in Hong Kong and free delivery, but weaknesses included quality concerns, limited product variety, and a complex distribution system. Lessons learned include the need for thorough market research, quality products, competitive analysis, and addressing customer feedback.

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    aDmart analysis

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    Marketing,Admart

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    This document provides information about Admart, a virtual store established in Hong Kong in 1999. It sold groceries, household items, electronics, and other products through online, phone, and fax orders. Admart aimed to compete with Park'N Shop and Wellcome using direct marketing and free delivery. However, due to intense price competition and issues with product quality and delivery, Admart ceased operations in December 2000. A SWOT analysis identifies Admart's strengths as being the first online retailer in Hong Kong and free delivery, but weaknesses included quality concerns, limited product variety, and a complex distribution system. Lessons learned include the need for thorough market research, quality products, competitive analysis, and addressing customer feedback.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    144 views10 pages

    Marketing, Admart

    Uploaded by

    Ankur Thakur
    This document provides information about Admart, a virtual store established in Hong Kong in 1999. It sold groceries, household items, electronics, and other products through online, phone, and fax orders. Admart aimed to compete with Park'N Shop and Wellcome using direct marketing and free delivery. However, due to intense price competition and issues with product quality and delivery, Admart ceased operations in December 2000. A SWOT analysis identifies Admart's strengths as being the first online retailer in Hong Kong and free delivery, but weaknesses included quality concerns, limited product variety, and a complex distribution system. Lessons learned include the need for thorough market research, quality products, competitive analysis, and addressing customer feedback.

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    ADMART

    Sonal
    15BM60067
    Raj Ranjan
    15BM60077
    Aditya Soni
    15BM60081

    History of Admart

    A virtual store established by Mr. Jimmy Lai Chee-ying in year 1999

    Mainly sold Groceries and household items and also sold electronics
    product, office supplies, furniture and air tickets

    Talking order through internet, fax and phone in-order

    Use direct marketing and free home delivery strategies to compete


    with exiting market leaders ParkN Shop and Wellcome

    Price war started between these three rivals for becoming market
    leader.

    But due to intense competition and their faulty policies especially


    related to product quality and delivery system , Admart ceased
    trading on December 2000

    SWOT Analysis

    Strength

    First Company in Hong Kong to enter online


    shopping business.
    Advertising in other arms of business(Apple Daily).
    Owner is a well established businessman with
    ability to invest big.
    Low infrastructure cost and saving on overpriced
    realty.
    Free home delivery service.
    Items on sale could be easily changed.
    Extensive coverage.

    Weakness

    Quality concerns of foreign goods from unreliable


    sources.

    No agreement with local wholesalers.

    Variety of goods limited to 9000 SKUs

    Small order size which made the business


    unviable.

    Inefficient use of labour.

    Complex distribution system which was costly to


    administer.

    Issues with money refund.

    Opportunity

    Lack of time for the people of Hong Kong to go out


    and shop.

    Introduction of virtual credit card.

    Rising internet penetration.

    Demand for online sale from the tech-savvy


    customers.

    Threat

    Low internet penetration in Hong Kong.

    Stiff competition from established retail brick and


    mortar players.

    People in Hong Kong like to buy things by touching


    and feeling them.

    Price wars between the retailers.

    Retail price restriction by the suppliers and


    wholesalers.

    Public fear for online fraud.

    LESSONS

    A thorough market research should have been carried out. Before actually
    diversifying, it is paramount that the company understands the consumer behaviour
    as well as the market segment they are targeting for.

    For any new business style or a new innovation to make its place in the market, it is
    necessary that the product (service) that they offer is of good quality. Compromising
    that results into customer mistrust and decline in market share.

    Competition should have been analysed with respect to their strengths and
    weaknesses so that business strategy could incorporate those facts , making it
    easier to react to the barriers and changes.

    Contingency plans should have been framed beforehand so that the company could
    have fall-back options in case of setbacks.

    Not only customer feedback but complaint redressals also should have been given
    priority because in the end the customer relationship could mend or end a company.

    Why Is AMAZON Different ?


    Beginners Advantage : While Amazon started as the first online book retail. Admart was not
    new to its field and albeit not as active, competitors did have similar working online
    infrastructures.
    Customer Value : By giving better customer service, better pricing and adequate information to
    go with the products being offered , Amazon engendered value for its customers.
    Feedback System : The views of customers were given importance and the queries were
    promptly answered. The complaints were taken up and the necessary changes were brought in
    to address them.
    Customer Behaviour : The targeted customers were different in the case of Amazon as the
    people were familiar with online shopping and didnt have the habit of bargaining.
    Business philosophy : Amazon never compromised on quality. Although it broke even after
    several years , the plans implemented by it were directed towards long-term sustenance and
    not just short term gains.
    Supply Chain Advantage : Amazon forged good relationships with suppliers while Admart
    couldnt. Also Admarts inefficiency in maintaining its own complex delivery system dealt it
    major damage.

    THANK
    YOU

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