History Of A New Portable Charger Marketing Essay

2994 words (12 pages) Essay

1st Jan 1970 Marketing Reference this

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In the 21st century the major developments we can see is the developments of technologies in the electronics sector. The main developments we can see in the growth of mobile phones, laptops, music players, digital cameras etc. The main problem of these electronic items is charging of these items when we are travelling. Since now there is no such charger in India which can be used to charge the electronic items while charging. So this company is introducing a new charger which can be used to charge the devices while travelling. This charger can be charged using an AC voltage.

The company is mainly aiming the youngsters, business people, people who like adventurous tours etc. with this product. India is having a good growth rate in the electronic goods now.

A NEW PORTABLE CHARGER.

The users of electronic devices in the world are increasing day by day. The population of India is 110 Billion and out of this there are 752 million mobile phone users at the end of 2010. India stands second in the telecommunication network after China. So India is having a good electronic market. So I would like to start a new electronic company with a new product, a portable charger in the Indian market which can be used to charge electronic device when the battery charge of that device is over. This portable charger will be light weight and can be used for charging the electronic device when there is no power supply. Using this portable charger we can charge many electronic devices such as Mobile phones, laptops, iPod’s, and digital cameras. Using this charger we can charge 3 electronic devices at a time and it is compatible to most of the electronic devices.

The main features of this portable charge are:-

Light weight (approximately 120 grams).

It can be used to charge majority of the mobile phones such as Nokia, Sony Ericsson, LG, Samsung, Alcatel.

This charger is 100% safe because it is built with a micro-controlled processor inside the charger which supplies the power whenever it is needed.

Product specifications.

Output voltage

4.5V – 5.5V

Output maximum current

1.4A 

Charge time

0 to 60 minutes 

Weight

120 grams 

Dimension

110 x 60 x 60 mm

Expected lifetime

4 years

Price

2500 Indian Rupees.

When we buy an electronic product we will get a charger along which can be used to charge that specific product only, for example using an Apple charger we can charge only Apple products only. So with the new portable a customer can charge most of the electronic products and which will be very useful for the customers.

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The product has three ports for charging. One for charging the mobile phones such as Nokia, Sony Ericsson, LG etc. Another port is a USB charging port which can be used for charging the IPod, PDA etc. The third port is connector port which can be used for charging the MP3 players and digital cameras. Along with the product a travel pouch will be supplied which will be very useful while travelling.

The capacity of this charger is 12 times than that of normal mobile phones. Once the charge of this charger is finished it can be charged from a normal AC power supply and the charge will remain up to 600 hours. So once when we charge this portable charger we can use this up to 22-25 days. This is one of the attractive features of this product. Because of the light weight of this product it can be taken any where we go or we can keep this in hand bag while we are traveling in a flight. The time taken by this charger to charge an electronic item is much better when compared to the other chargers.

Product packaging:-

The product will be designed in a stylish way in order to attract the customers. The best colours that suit for this product will be blue, black, silver and purple. This product comes with these four colours in order to ensure that customers must not be bored and a variety of colours is given in choosing the product. The package of this product will be well designed in order to make the customer not to throw away the pack and it should be used as the permanent storage place for the product.

Unique Selling Proposition (USP):-

Make the product more beneficial to the customer is the main USP of this product. The company like to do the things in the right way because customers like that. More over the company is having the first mover’s advantage and try to set up a good market for this charger.

Providing Product to the customers:-

The company plans many methods to deliver the product to the customers. The main method of delivering the product is through online, because online shopping is growing fast in India at a rate of 22-25%. For delivering the products through online, first the company had to make agreements with the online sites. The main online shopping websites used by Indian customers are,

1. Ebay.in

2. India times shopping

3. Home shop 18

4. India varta.com

More over the company will be having their own website also and the customer will get the details of the product can purchase the product also. So the company will be putting the products in these websites with a clear description about the product and with a good picture of the product. The main advantage of online selling is that the company can reduce the price of product up to maximum because the company is directly selling the product.

The other method of delivering the product is with the help of collaborators. The company will look for a distributor who can distribute the product all over the country and must had have a good experience in distributing the electronic goods. So by this way the company can place their product in majority of the electronic shops. The company will be having at least 5-10 offices at the starting and the customers can call to the distribution wing in the offices and ordered the product directly and they can do their payment when the product is delivered. Product will be delivered within 3-5 working days.

CUTOMERS:-

The out of charge situation of an electronic device is a very difficult situation for a customer when he/she is on travelling and this is the main powerful motivation point behind in buying a portable charger. The company target the customers who are at the age of 15-45 and they must be middle and high income groups. The company also targets the customers on the basis of lifestyle such as working people, youngsters, business people, people who travel a lot and the people who like adventurous journeys.

The people between the age 15-45 can be divided into two groups such as 15-25 & 25-45. The group with age 15-25 is the youngsters group and these people are very crazy about the new models of electronic goods such as mobile phones and laptops. So the company can the target this people with this new product in a stylish look with ease. The people comes under the age group 25-45 are working people and business people. Some of these people like the adventures also, so the company has to target these people also.

The price of product will come around 2500 Indian rupees, as because of this the company will be looking for the medium and high income customers rather than the low income people who can easily afford this price and they can easily use this product for variety of electronic goods. The fact is that mobile and laptop penetration is high among the medium and high income people.

According to The Indian Times there are 746.76 million mobile subscribers in India. Telecom Regulatory Authority of India says that the growth of mobile subscribers is growing at a rate of 3.24% per year. These reports reveal that 64.34% of the Indian population are using the mobile phones. This is a good time to launch a product like portable charger in India now.

The main customers of this product will be the heavy users of electronic goods. Likewise the mobile users the rates of users of laptops are also increasing, the main users of laptops are the business people and the students. The business people will be having a good benefit on this product because those people are travelling a lot for their business purposes.

India is one of the best tourist places in the world. There are a lot of beautiful places in India and a lot of tourists are visiting these places also in a year. Almost 75-85% tourists will be having a digital camera with them. So the company can target this type of customers also.

Usually a customer loves to makes his mobile devices mobile. So the company will be mainly targeting the customers who are using the electronic goods a lot. But one thing the company had to think in mind is that the repeat purchase of the product can’t expect for 2-3 years after buying this product.

Market Available:-

The market available is the heavy growing Indian electronics market. The boom of the electronic market is due to many important factors such as boom in retail sale, high availability of salary and easy availability of financial schemes.

This is a new product in India, so there are no direct competitors for this product. There are only indirect competitors for this product. The indirect competitors for this product are the main electronics company which means when we buy a product we will get a charger along with that but it can be used for that product only. Recently Motorola launched a product similar to this and they try to lead the market with their strong brand name. But the disadvantage of that product is that it can be used for only Motorola products only.

Before entering the market, the company will make a survey on how the customers respond to a new product and how they choose their brand product with the help of a questionnaire.

Market analysis : Porter’s five force framework.

Supplier Power

Low since the materials used for assembling the product (mother board, electronic chips etc.) are easily available in the Indian market.

Buyer Power

Low as there is no direct competitor for this product in India now as the product is differentiated from other types of chargers.

Threat of new entry

Medium as there is big risk in investing in Technology and R&D. But the other important factor is that the potential growth for this product in the market is very high.

Threat of substitution

High as any big electronics company can come up with the same product very easily with their huge brand name. For example Nokia, Sony Ericsson, Apple, HP, can come to the market with the similar product.

Threat of competition

Medium as the expected growth rate for the electronic products in India very high for the coming years.

From the above analysis it is clear that the overall market attractiveness for this product is high.

The indirect competitor’s for this product will be from the major producers of mobile phones, laptops, digital cameras. The major mobile phone manufactures in India are

Nokia

Sony Ericsson

LG

Alcatel

Reliance

Samsung

The major laptop providers in India are

Apple

Sony Vaio

HP

DELL

Compaq

Onida

IBM

Toshiba

Samsung

The digital camera companies in India are

Sony

Canon

Kodak

Nikon

Samsung

Panasonic

So the company had to fight with the above indirect competitors in the market, as there is no direct competitor the product has a great chance to conquer the market.

Opportunities and Threats:-

Major opportunities are

Since there is no direct competitor for this product, there is a great chance to get a good initial movement for this product in the market.

A great opportunity is there to venture this to the neighbouring countries such as Sri Lanka, Pakistan, Bangladesh, Nepal etc.

The growth rate of electronic goods in India in increasing every year.

In the last economic budget of India tax duties for electronic goods are reduced by the government, so the materials needed for the assembly of this product will be cheaper and hence the company can try to reduce the price to the minimum extent.

Major Threats are

Up to some extent the product price is large when compared to other chargers, but not the same type of charger. So the customers must be very much convinced by the company for buying this product.

A strong electronic company can come with the same product with their huge brand name because growth potential is very high.

Industry Analysis.

The industry in which the product is going to operate is the heavy Indian electronics industry. This product is mainly useful for the mobile phones, laptops and digital cameras. So when we look the laptop industry in India it is growing in a faster rate. In India laptop industry starts growing from 2005 onwards and it declined the sales of personal computers. The main reason behind this growth is the change of lifestyle of the people and the ease to use the laptops. Low price also increased the growth of laptops.

PEST Analysis:-

Political factors:-

The government reduces the import duties for the electronic goods which results in the growth of electronic market. The government is focusing on the ecological impact and they made some regulations on the electronics industry like control of hazardous substances and electrical wastes.

Economic factors:-

Global economy has a vital role in the growth of the Indian electronic industry. As the global economy decreases big companies decrease their spending on capital investment and it will affect the market of this new charger also. One important factor is that the economies of developing countries have a good growth rate when compared to the developed countries.

Social factors:-

The social factors such as income, education etc. also affects the industry. The culture is different in different parts of India, so the company had to operate according to that. As the income of a family increase the number of electronic goods like mobile, laptops, camera also increases.

Technological factors:-

As the technology increases the market of electronic goods also increases, for example now days the power consumption of laptops are much lower than the past. This made the people to go for laptops more.

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Financial implications:-

The initial investment is estimated to come around 5 Croce Indian rupees, which is used for setting up the factory and marketing (advertisement). The factory set up includes the building, machineries for assembling the product, office rooms, furniture’s and for the product development also. The company had to focus mainly on the advertisement side because this is a new product in the market, so people must be well aware about this product features. The company will be mainly aiming to give the advertisements on the main Indian magazine which is regularly used by the customers. The approximate amount for giving advertisement in magazines are given below,

Publication

Frequency

Issues

Rate

Cost

Travel & Leisure

Monthly

10

1,30,000

1300000

Outlook traveller

Monthly

10

1,20,000

1200000

Smart photography

Monthly

10

55,000

550000

ET 500

Half yearly

4

4,25,000

1700000

Business Today

Fort nightly

20

1,70,000

3400000

Total Cost

Rs 81,50,000

The company is expecting a sale of 75,000 units in the first year, so the turnover of the company in the first year will be Rs.18, 75, 00,000 (75000 x 2500). Nearly 4.3% of that amount will be spent for the advertisement (4.3% of 18,75,00,000 is 81,50,000). This 4.3 % spending on advertisement is much higher but the company had to do this because the company and product is new in the market.

The company had to spend much on the product development also because any new company can come with the similar product.

Exit strategy:-

If the product fails in the market the company will be looking for an acquisition with major electronics companies like Apple, Nokia, Sony, Canon etc., as an exit strategy.

References:-

Articlesbase (2011). Booming consumer electronics market in India. [Online] Available at http://www.articlesbase.com/business-articles/booming-consumer-electronics-market-in-india-649815.html [Accessed on 05 March 2011]

Global common class (2009). Why the Indian sub-continent should not be underestimated. [Online] Available at http://globalcc.wordpress.com/2009/07/05/why-the-indian-sub-continent-should-not-be-underestimated/ [Accessed on 07 March 2011]

Global laptop industry (2010). [Online] Available at http://srl.gatech.edu/Members/ashah/laptop_industry_analysis_aditya_abhinav.pdf [Accessed on 07 March 2011]

Naukrihub (2011). Laptop overview. [Online] Available at http://www.naukrihub.com/india/fmcg/overview/laptop/ [Accessed on 07 March 2011]

THE ECNOMIC TIMES (2011). India’s mobile phone users grow to 729.57 million. [Online] Available at http://articles.economictimes.indiatimes.com/2011-01-25/news/28433753_1_subscriber-base-wireline-market-user-base [Accessed on 04 March 2011]

THE FINANCIAL EXPRESS (2011). Online retailing logs 50% growth. [Online] Available at http://www.financialexpress.com/news/online-retailing-logs-50-growth/750664/0 [Accessed on 02 March 2011]

In the 21st century the major developments we can see is the developments of technologies in the electronics sector. The main developments we can see in the growth of mobile phones, laptops, music players, digital cameras etc. The main problem of these electronic items is charging of these items when we are travelling. Since now there is no such charger in India which can be used to charge the electronic items while charging. So this company is introducing a new charger which can be used to charge the devices while travelling. This charger can be charged using an AC voltage.

The company is mainly aiming the youngsters, business people, people who like adventurous tours etc. with this product. India is having a good growth rate in the electronic goods now.

A NEW PORTABLE CHARGER.

The users of electronic devices in the world are increasing day by day. The population of India is 110 Billion and out of this there are 752 million mobile phone users at the end of 2010. India stands second in the telecommunication network after China. So India is having a good electronic market. So I would like to start a new electronic company with a new product, a portable charger in the Indian market which can be used to charge electronic device when the battery charge of that device is over. This portable charger will be light weight and can be used for charging the electronic device when there is no power supply. Using this portable charger we can charge many electronic devices such as Mobile phones, laptops, iPod’s, and digital cameras. Using this charger we can charge 3 electronic devices at a time and it is compatible to most of the electronic devices.

The main features of this portable charge are:-

Light weight (approximately 120 grams).

It can be used to charge majority of the mobile phones such as Nokia, Sony Ericsson, LG, Samsung, Alcatel.

This charger is 100% safe because it is built with a micro-controlled processor inside the charger which supplies the power whenever it is needed.

Product specifications.

Output voltage

4.5V – 5.5V

Output maximum current

1.4A 

Charge time

0 to 60 minutes 

Weight

120 grams 

Dimension

110 x 60 x 60 mm

Expected lifetime

4 years

Price

2500 Indian Rupees.

When we buy an electronic product we will get a charger along which can be used to charge that specific product only, for example using an Apple charger we can charge only Apple products only. So with the new portable a customer can charge most of the electronic products and which will be very useful for the customers.

The product has three ports for charging. One for charging the mobile phones such as Nokia, Sony Ericsson, LG etc. Another port is a USB charging port which can be used for charging the IPod, PDA etc. The third port is connector port which can be used for charging the MP3 players and digital cameras. Along with the product a travel pouch will be supplied which will be very useful while travelling.

The capacity of this charger is 12 times than that of normal mobile phones. Once the charge of this charger is finished it can be charged from a normal AC power supply and the charge will remain up to 600 hours. So once when we charge this portable charger we can use this up to 22-25 days. This is one of the attractive features of this product. Because of the light weight of this product it can be taken any where we go or we can keep this in hand bag while we are traveling in a flight. The time taken by this charger to charge an electronic item is much better when compared to the other chargers.

Product packaging:-

The product will be designed in a stylish way in order to attract the customers. The best colours that suit for this product will be blue, black, silver and purple. This product comes with these four colours in order to ensure that customers must not be bored and a variety of colours is given in choosing the product. The package of this product will be well designed in order to make the customer not to throw away the pack and it should be used as the permanent storage place for the product.

Unique Selling Proposition (USP):-

Make the product more beneficial to the customer is the main USP of this product. The company like to do the things in the right way because customers like that. More over the company is having the first mover’s advantage and try to set up a good market for this charger.

Providing Product to the customers:-

The company plans many methods to deliver the product to the customers. The main method of delivering the product is through online, because online shopping is growing fast in India at a rate of 22-25%. For delivering the products through online, first the company had to make agreements with the online sites. The main online shopping websites used by Indian customers are,

1. Ebay.in

2. India times shopping

3. Home shop 18

4. India varta.com

More over the company will be having their own website also and the customer will get the details of the product can purchase the product also. So the company will be putting the products in these websites with a clear description about the product and with a good picture of the product. The main advantage of online selling is that the company can reduce the price of product up to maximum because the company is directly selling the product.

The other method of delivering the product is with the help of collaborators. The company will look for a distributor who can distribute the product all over the country and must had have a good experience in distributing the electronic goods. So by this way the company can place their product in majority of the electronic shops. The company will be having at least 5-10 offices at the starting and the customers can call to the distribution wing in the offices and ordered the product directly and they can do their payment when the product is delivered. Product will be delivered within 3-5 working days.

CUTOMERS:-

The out of charge situation of an electronic device is a very difficult situation for a customer when he/she is on travelling and this is the main powerful motivation point behind in buying a portable charger. The company target the customers who are at the age of 15-45 and they must be middle and high income groups. The company also targets the customers on the basis of lifestyle such as working people, youngsters, business people, people who travel a lot and the people who like adventurous journeys.

The people between the age 15-45 can be divided into two groups such as 15-25 & 25-45. The group with age 15-25 is the youngsters group and these people are very crazy about the new models of electronic goods such as mobile phones and laptops. So the company can the target this people with this new product in a stylish look with ease. The people comes under the age group 25-45 are working people and business people. Some of these people like the adventures also, so the company has to target these people also.

The price of product will come around 2500 Indian rupees, as because of this the company will be looking for the medium and high income customers rather than the low income people who can easily afford this price and they can easily use this product for variety of electronic goods. The fact is that mobile and laptop penetration is high among the medium and high income people.

According to The Indian Times there are 746.76 million mobile subscribers in India. Telecom Regulatory Authority of India says that the growth of mobile subscribers is growing at a rate of 3.24% per year. These reports reveal that 64.34% of the Indian population are using the mobile phones. This is a good time to launch a product like portable charger in India now.

The main customers of this product will be the heavy users of electronic goods. Likewise the mobile users the rates of users of laptops are also increasing, the main users of laptops are the business people and the students. The business people will be having a good benefit on this product because those people are travelling a lot for their business purposes.

India is one of the best tourist places in the world. There are a lot of beautiful places in India and a lot of tourists are visiting these places also in a year. Almost 75-85% tourists will be having a digital camera with them. So the company can target this type of customers also.

Usually a customer loves to makes his mobile devices mobile. So the company will be mainly targeting the customers who are using the electronic goods a lot. But one thing the company had to think in mind is that the repeat purchase of the product can’t expect for 2-3 years after buying this product.

Market Available:-

The market available is the heavy growing Indian electronics market. The boom of the electronic market is due to many important factors such as boom in retail sale, high availability of salary and easy availability of financial schemes.

This is a new product in India, so there are no direct competitors for this product. There are only indirect competitors for this product. The indirect competitors for this product are the main electronics company which means when we buy a product we will get a charger along with that but it can be used for that product only. Recently Motorola launched a product similar to this and they try to lead the market with their strong brand name. But the disadvantage of that product is that it can be used for only Motorola products only.

Before entering the market, the company will make a survey on how the customers respond to a new product and how they choose their brand product with the help of a questionnaire.

Market analysis : Porter’s five force framework.

Supplier Power

Low since the materials used for assembling the product (mother board, electronic chips etc.) are easily available in the Indian market.

Buyer Power

Low as there is no direct competitor for this product in India now as the product is differentiated from other types of chargers.

Threat of new entry

Medium as there is big risk in investing in Technology and R&D. But the other important factor is that the potential growth for this product in the market is very high.

Threat of substitution

High as any big electronics company can come up with the same product very easily with their huge brand name. For example Nokia, Sony Ericsson, Apple, HP, can come to the market with the similar product.

Threat of competition

Medium as the expected growth rate for the electronic products in India very high for the coming years.

From the above analysis it is clear that the overall market attractiveness for this product is high.

The indirect competitor’s for this product will be from the major producers of mobile phones, laptops, digital cameras. The major mobile phone manufactures in India are

Nokia

Sony Ericsson

LG

Alcatel

Reliance

Samsung

The major laptop providers in India are

Apple

Sony Vaio

HP

DELL

Compaq

Onida

IBM

Toshiba

Samsung

The digital camera companies in India are

Sony

Canon

Kodak

Nikon

Samsung

Panasonic

So the company had to fight with the above indirect competitors in the market, as there is no direct competitor the product has a great chance to conquer the market.

Opportunities and Threats:-

Major opportunities are

Since there is no direct competitor for this product, there is a great chance to get a good initial movement for this product in the market.

A great opportunity is there to venture this to the neighbouring countries such as Sri Lanka, Pakistan, Bangladesh, Nepal etc.

The growth rate of electronic goods in India in increasing every year.

In the last economic budget of India tax duties for electronic goods are reduced by the government, so the materials needed for the assembly of this product will be cheaper and hence the company can try to reduce the price to the minimum extent.

Major Threats are

Up to some extent the product price is large when compared to other chargers, but not the same type of charger. So the customers must be very much convinced by the company for buying this product.

A strong electronic company can come with the same product with their huge brand name because growth potential is very high.

Industry Analysis.

The industry in which the product is going to operate is the heavy Indian electronics industry. This product is mainly useful for the mobile phones, laptops and digital cameras. So when we look the laptop industry in India it is growing in a faster rate. In India laptop industry starts growing from 2005 onwards and it declined the sales of personal computers. The main reason behind this growth is the change of lifestyle of the people and the ease to use the laptops. Low price also increased the growth of laptops.

PEST Analysis:-

Political factors:-

The government reduces the import duties for the electronic goods which results in the growth of electronic market. The government is focusing on the ecological impact and they made some regulations on the electronics industry like control of hazardous substances and electrical wastes.

Economic factors:-

Global economy has a vital role in the growth of the Indian electronic industry. As the global economy decreases big companies decrease their spending on capital investment and it will affect the market of this new charger also. One important factor is that the economies of developing countries have a good growth rate when compared to the developed countries.

Social factors:-

The social factors such as income, education etc. also affects the industry. The culture is different in different parts of India, so the company had to operate according to that. As the income of a family increase the number of electronic goods like mobile, laptops, camera also increases.

Technological factors:-

As the technology increases the market of electronic goods also increases, for example now days the power consumption of laptops are much lower than the past. This made the people to go for laptops more.

Financial implications:-

The initial investment is estimated to come around 5 Croce Indian rupees, which is used for setting up the factory and marketing (advertisement). The factory set up includes the building, machineries for assembling the product, office rooms, furniture’s and for the product development also. The company had to focus mainly on the advertisement side because this is a new product in the market, so people must be well aware about this product features. The company will be mainly aiming to give the advertisements on the main Indian magazine which is regularly used by the customers. The approximate amount for giving advertisement in magazines are given below,

Publication

Frequency

Issues

Rate

Cost

Travel & Leisure

Monthly

10

1,30,000

1300000

Outlook traveller

Monthly

10

1,20,000

1200000

Smart photography

Monthly

10

55,000

550000

ET 500

Half yearly

4

4,25,000

1700000

Business Today

Fort nightly

20

1,70,000

3400000

Total Cost

Rs 81,50,000

The company is expecting a sale of 75,000 units in the first year, so the turnover of the company in the first year will be Rs.18, 75, 00,000 (75000 x 2500). Nearly 4.3% of that amount will be spent for the advertisement (4.3% of 18,75,00,000 is 81,50,000). This 4.3 % spending on advertisement is much higher but the company had to do this because the company and product is new in the market.

The company had to spend much on the product development also because any new company can come with the similar product.

Exit strategy:-

If the product fails in the market the company will be looking for an acquisition with major electronics companies like Apple, Nokia, Sony, Canon etc., as an exit strategy.

References:-

Articlesbase (2011). Booming consumer electronics market in India. [Online] Available at http://www.articlesbase.com/business-articles/booming-consumer-electronics-market-in-india-649815.html [Accessed on 05 March 2011]

Global common class (2009). Why the Indian sub-continent should not be underestimated. [Online] Available at http://globalcc.wordpress.com/2009/07/05/why-the-indian-sub-continent-should-not-be-underestimated/ [Accessed on 07 March 2011]

Global laptop industry (2010). [Online] Available at http://srl.gatech.edu/Members/ashah/laptop_industry_analysis_aditya_abhinav.pdf [Accessed on 07 March 2011]

Naukrihub (2011). Laptop overview. [Online] Available at http://www.naukrihub.com/india/fmcg/overview/laptop/ [Accessed on 07 March 2011]

THE ECNOMIC TIMES (2011). India’s mobile phone users grow to 729.57 million. [Online] Available at http://articles.economictimes.indiatimes.com/2011-01-25/news/28433753_1_subscriber-base-wireline-market-user-base [Accessed on 04 March 2011]

THE FINANCIAL EXPRESS (2011). Online retailing logs 50% growth. [Online] Available at http://www.financialexpress.com/news/online-retailing-logs-50-growth/750664/0 [Accessed on 02 March 2011]

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