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Tag: Business Models

  • Business Model of Visa | How does Visa Inc. Make Money?

    The biggest digital payment brand, dominating the whole digital transactions companies around the globe, is Visa. Visa Inc. is widely famous across the globe and serves over 200 countries and numerous territories. Visa facilitates dozens of services at a broad level to the individual consumers, financial institutions, governments, and merchants. It offers authorization, settlements, and clearing services in the smoothest manner.

    Visa Inc. does not issue debit or credit cards although it does authorize the service of debit, credit, and prepaid cards to the enterprises as well as consumers. Visa gains its most profitable deals by selling services to various financial businesses and merchants, acting as the middleman. Visa’s biggest business strategy comes from expanding its presence to various digital payments, E-Commerce, and others. The biggest rival to Visa is Mastercard Inc. and PayPal Holdings Inc. in the market. In this article, we will discuss the business model of Visa and how it makes money! Let’s get started.

    About Visa
    Where does Visa Operate?
    Key Products and Services of Visa
    Target Audience of Visa
    Business Model of Visa
    What is unique about the Business Model of Visa?
    How does Visa make money?
    Conclusion
    FAQs

    How Visa Inc. Makes Money?

    About Visa

    Visa Inc. is a prominent global digital payment company that acts as the middleman in facilitating consumers, financial institutions, government, and other businesses. Visa’s services are available in more than 200 countries and territories across the globe.

    The American multinational corporation, Visa works as a financial services provider headquartered in Foster City, California, United States. Visa was founded by Dee Hock in 1958 as the BankAmericard.

    Visa is known as the second-largest debit and credit card payment corporation, after China’s UnionPay. This data is based on the number of card payments made and the number of card issues of the company, annually. Apart from this, Visa is the leading banking card company in the whole world, dominating around 50% market share of the entire card payments.

    Where does Visa Operate?

    Visa is a global payment company that serves more than 200 countries and territories, worldwide. It’s four secured data centers operated in Highlands Ranch, Colorado; Singapore; Ashburn, Virginia, and London, England.

    Key Products and Services of Visa

    Visa Inc. offers tons of services to its consumers such as clearing, authorization, and settlement services. Its major services and products are:

    • Services: Clearing, Authorization, and Settlement services. Moreover, mobile payments, top-up services, and money transfers.
    • Products: Visa provides its allotted credit cards, commercial cards, debit cards, prepaid cards, and other mobile and money transaction-based products.

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    Target Audience of Visa

    Visa majorly targets the people with a good income to spend and those who need credit points. The company targets its consumers through various channels such as banks or other financial institutions.

    The digital payment company believes in providing consumers with the utmost convenience of its stakeholders.

    Business Model of Visa

    Visa logo
    Visa logo

    Visa functions on a pretty different business model as compared to the conventional models. Who doesn’t have a Visa card nowadays? But it’s pretty amazing how its business model functions. The digital payment company, Visa is a publicly-traded company that comes in the listing of the New York Stock Exchange.

    Visa follows the Multiple sided platform- business model. It functions by spreading its card services everywhere. And the maximum the customer through a Visa card makes will be accepted by the merchants and vice versa.

    Visa mainly focuses its marketing campaigns on the customers holding Visa’s card and are the subsidy side of the company. Visa provides the best facilities for payment to consumers, businesses, and government organizations. In a further manner, Visa uses a proprietary transaction processing network of technology.

    What is unique about the Business Model of Visa?

    Visa’s mode of generating revenue is entirely different from any other organization. It functions with an open-loop system and follows a transaction-centric business model.

    Visa’s business model is based on connecting the consumers to the business owners as the middleman. Visa’s revenue generation isn’t based on the money made by the discount offers of merchants or consumer’s membership fees for issuing the card.

    Visa functions as a transaction-centric business model where it earns its revenue through the payments as well as transaction volume done from its personalized cards.

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    How does Visa make money?

    Visa charges little transaction fees from the merchants. Let’s suppose there is a certain amount the consumer transacted to the merchants. So around 2-4% of the total will be merchant fees. That 2-4% will be split between the consumers and the organization, based on the interchange fees. There is always a high risk of default payment by the consumer but the person with a Visa card keeps more generated money from the merchants.

    Visa generates its revenue from transactional processing, payment volumes, and value-added assistance including dispute management, issue processing, value-added information services, loyalty services, and many more.

    The revenue is distributed in four streams as Service revenue, International transitional revenues, data processing revenue, and other sources of generating more revenue.

    Conclusion

    Visa is an excellent digital payment company when it comes to serving customers promptly. Although it does make it the second-largest digital payment company after UnionPay of China. But apart from that, Visa is the first choice of everyone across the globe. It offers tons of amazing services to merchants, financial institutions, and others. Through this article, we got the knowledge on how the company makes its money as well as its business model. Stay tuned for more updates!

    FAQs

    When was Visa founded?

    Visa was founded in September 1958 by Dee Hock.

    What is the revenue of Visa?

    The revenue of Visa was 2,185 crores USD in 2020.

    Who is the CEO of Visa?

    The current CEO of Visa is Alfred F Kelly Jr.

    Who are Visa Inc competitors?

    Visa top competitors include:

    • Stripe
    • Mastercard
    • Capital One
    • PayPal
    • American Express

  • ShareChat Business Model | How does ShareChat Make Money

    Technology brought us the Internet and smartphones. Thanks to these two, we have another medium that is not less of a miracle. Social Media is a part of our daily life. It is almost impossible to imagine, not having a social media account at this age.

    Social media gives us an opportunity to connect with people. It doesn’t matter where they live; one could stay connected with each other through social media. Apart from staying connected with people around the world, one can share their thought, insights basically their life on social media. We also get to have different careerists opportunities as well.

    Some of the well-known and most used social networks are Facebook, Instagram, WhatsApp, Twitter, and others. They are the mains that have people flocking over them. Apart from that, there are various other social media platforms that are taking the world by storm. Among all of them, one such platform is ShareChat. In this article, we will talk about this app and take a look at its business model and how it makes money. So let’s get right into the business.

    “The great thing about social media was how it gave a voice to voiceless people.”

    -Jon Ronson

    What Is ShareChat?
    About ShareChat
    Features of ShareChat
    Target Audience of ShareChat
    Business Model of ShareChat
    How Does ShareChat Make Money?
    Revenue Of ShareChat
    FAQ

    What Is ShareChat?

    ShareChat is an Indian social networking platform that gives users an option to connect with people and also share videos, pictures, and status in their own language. The features like direct messaging and tagging are also included in this app. The app has over 160 million active users monthly. Ankush Sachdeva is the current CEO of ShareChat.

    About ShareChat

    ShareChat first started its journey in the year 2015 and was founded by Ankush Sachdeva, Pratap Singh, and Farid Ahsan, all of them graduated from IIT Kanpur. The social networking site is under Mohalla Tech Pvt Ltd. The headquarters is situated in Bengaluru, India. The company has over 400 employees working for it now.

    In the year 2016, ShareChat enabled its users to create user-generated content that is, they got the option to share photos and videos of their own. In the year 2018, it launched some spectacular features for the users of this app, which made it quite a fan favourite.

    Features of ShareChat

    Some of the highlighted features of this app that makes it popular amongst social media users are down below:

    • The best part of this social media is that it allows people to handle their accounts in their own language. 15 different Indian languages are available in this app namely, Bengali, Marathi, Punjabi, Hindi, Urdu, Malayalam, Gujarati, Odia, Kannada, Assamese, Haryanvi, Telugu, Tamil, Rajasthani, and Bhojpuri.
    • Apart from sharing your content on the platform, you get to have a private messaging option, where you can send messages to other users of the app and stay connected with them by having one-to-one communication.
    • Another popular feature is tagging, where you can create a tag and can post whatever you may like under them.
    • You can also follow another user in this app and can see their regular updates here whatever they are sharing.
    • It also has a feature to share any content that exists on the social media platform on WhatsApp.

    Target Audience of ShareChat

    ShareChat target audience is not limited to any certain groups but it mostly targets people who want to use social networking platforms in their mother tongue or any regional language. Plus it is also a safe place for the people who are using the internet and indulging in social media for the very first time.

    Business Model of ShareChat

    There are two ways in how content marketing is done on the internet. The first form is one the content is created by the creators of the platform and is only owned by them and the other form is where the users of the platform generate their own contents. This social media platform falls under the second category. All the contents are user-generated here.

    Those contents are shared with the other users. It includes pictures, videos, posts, GIFs, audio, and others. Apart from that you can connect with several people here and can make friends with whom you can share your daily updates and of course can interact with each other. The feature that makes it unique is that all of these can be done in any 15 regional languages that ShareChat provides to its users.

    How Does ShareChat Make Money?

    ShareChat mostly makes money through advertising. It mainly collects the data of the user’s analyses them and of course, stores them. These data are then given to the advertisers so that they can identify their target audience and advertise their products to them.

    Apart from advertising, it also generates revenue through payment transactions and sponsored campaigns. They also tie up with local brands that sell products and services amongst the regional language-focused audiences.

    In 2020 following the tension between India and China, when India banned Chinese apps. TikTok was also banned. ShareChat launched a short video platform named Moj as its parent company, which has the same features as TikTok on 29 June 2020. This app reportedly has 160 million active users monthly and has beaten its several competitors like MX TakaTak and Josh and is considered India’s top short video creation app.

    Revenue Of ShareChat

    The company faced a big loss in the year 2020, approximately ₹676 crores. The year 2021 bought quite good news for the Indian social media as it enters into the Unicorn club after raising a fund of $502 million and its valuation jumps to $2.1 billion. The funding was received from venture firm Lightspeed Ventures, Tiger Global, Twitter, and Snap Inc.

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    Conclusion

    With so many different social media apps launching every day, there will be few that are going to be successful and will be able to entice people to use them. Some new and exclusive features have to be added to capture the attention of the users, ShareChat, the new member of the Unicorn club has been able to do that.

    FAQ

    Is ShareChat a Startup?

    ShareChat is an Indian social media startup.

    Who is the CEO of ShareChat?

    Ankush Sachdeva is the CEO of ShareChat since 2017.

    Is ShareChat Made In India?

    ShareChat is a social media platform that is particularly made in India.

  • Shoppers Stop Business Model | How does Shoppers Stop Make Money

    Shoppers Stop was a forerunner in India’s retail boom. They have developed from a sole 372sq.m retail in 1991 to 86 locations in 40 Indian cities now. Through constant advancement, the company is primed to have great potential.

    Well with the assistance of renowned and key allies, it’ll always strive to develop with its users by offering trendy and modern items that are up to world standards while being economical.

    To sustain long-term client happiness, they’ve assured that the brand and shopping experience throughout all of their brands is not only appealing but also provides complete delight. It’ll be reflected not just in their practices, but also in how they interact with their staff, partners, allies, and customers. So, Lets look at the business model of Shoppers Stop and how it makes money.

    About Shoppers Stop
    History of Shoppers Stop
    Business model of Shoppers Stop
    Top brands of Shoppers Stop
    Other Initiatives by Shoppers Stop
    Revenue Model of Shoppers Stop
    Strategies of Shoppers Stop
    Competitors of Shoppers Stop
    Future Plans of Shoppers Stop
    FAQ

    About Shoppers Stop

    Shoppers Stop is rich in the diversity of major global and regional brands for fashion, scents, home décor, etc. that serve the wants of the family. K. Raheja Corp. owns it, and it has 86 outlets in India’s top 40 cities.

    It seeks, sustains, and distributes new global apparel across the globe through its shop labels. It is traded on both the BSE and the NSE. Their drive on introducing international practices into retail and offering people a retail buying experience has propelled them to the top of its game. They are among India’s leading departmental stores.

    History of Shoppers Stop

    The K. Raheja Corp. consortium built the basis for Shoppers Stops on October 27, 1991. With its lifestyle business, it’s one of India’s largest hospitality and realty firms, has achieved yet another feat.

    It has evolved from a storefront to an apparel outlet for the entire family since its beginning. Shoppers Stop is now a trusted brand, renowned for its best quality merchandise and for delivering a comprehensive buying experience.

    It has established itself as the finest ideal for the Indian retail chain, owing to its vast experience and repute. Its future growth strategy seeks to assist the firm tackle the issues of the retail sector even better than now.

    Business model of Shoppers Stop

    It operates departmental storefronts selling a variety of home and buyer goods. They operate on a franchise-based model. Its value proposition is to consistently enhance people’s lives via style and a great buying experience. Family, children, the aged, and professionals are their key client segments. Its franchisees, such as Bobbi Brown, M.A.C., Mothercare, Hypercity, among others, are its key partners.

    Its main tasks include promoting and driving sales ranging from designer fashion to décor. Staff and outlets on a-locations are vital assets for the organization. The client interaction occurs either online, on the user’s chosen medium, or in stores.

    Salaries, site development expenditures, raw material ordering costs, and advertising costs make up the cost pyramid. It makes money through its outlets and those of its franchisees. Users can take advantage of the First Citizen Loyalty Program.

    Top brands of Shoppers Stop

    HomeStop.

    HomeStop. by Shoppers Stop
    HomeStop. by Shoppers Stop

    It started to meet the needs for a premium interior décor and lifestyle store. It equips you with a holistic home experience by offering the finest furniture, furnishings, and homewares. The product offering is updated regularly to add more styles.

    HyperCity

    HyperCity by Shoppers Stop
    HyperCity by Shoppers Stop

    It began its initial tour in Malad, Mumbai, on an area of 11,000 square meters, and received over a million visitors in its first 90 days. It’s a spacious, stylish, and dynamic layout that functions as a true megastore, with a vast selection of high-quality goods at low cost in a range of subjects such as grocery items, furnishings, sports toys, and so on. It also provides various value-added services in one place, such as financing, ATM, and telecom services, to make the experience more diverse, efficient, and holistic.

    Crossword

    Crossword by Shoppers Stop
    Crossword by Shoppers Stop

    It was created in 1992 and bought out by Shoppers Stop in the year 2000. It is the largest edutainment store and a renowned name in its sector, offering the Indian client an unparalleled combination of books, songs, & films all under one roof. Its current success is the fruit of a mutual enthusiasm for and loyalty to its clients, firm, and allies.

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    Other Initiatives by Shoppers Stop

    The Shoppers Stop group has also formed alliances and joint ventures with the Switzerland-based nuance group for airline shopping, the UK-based home retail group for catalog shopping under the brand Argos, and the Australia-based LAI group for Timezone entertainment zones.

    Total Revenue of Shoppers Stop
    Total Revenue of Shoppers Stop

    Revenue Model of Shoppers Stop

    Royalty fees

    Continuous royalties are their primary business. They set a fixed flat fee or % of the gross revenue of such units as a facet of the contract. Their successful franchisee partnership has led to increasing royalties.

    Advertising Fees

    Local, county and global marketing initiatives help them. The franchisee donates to a fund set up by the franchisor to cover ad spend, lowering their total cost, however, both sides gain from drawing loyal users to the franchise unit. Store exhibits and sponsors generate income-driven on how long the goods or sponsors’ ads are marketed.

    Employee Training

    When an entrepreneur joins a franchise, they adopt the franchise’s specific business model. The staff of the new company unit requires adequate training to conform with the way these things must be handled, and this earns income for Shoppers Stop via training fees, from which they gain.

    Strategies of Shoppers Stop

    Digitization

    They rebuilt their website, built an e-commerce portal, and teamed with prominent software firms like Google. They advertised their stuff online through them. They then went on to the current shopping site and formed a partnership with big Indian e-retailers. It optimized its backend arrangement to deliver a consistent and cohesive service throughout its multiple channels.

    They also developed in-store technology such as the Magic Mirror, which lets shoppers virtually try new things. It’s one of their most notable creations.

    Shoppers Stop Magic Mirror
    Shoppers Stop Magic Mirror

    Multi-channel

    Customer care was the core of the apps that were developed. They have apps for managing inventory that tracks every step along the way from the producer to the customer.

    Omnichannel

    It combines several shopping channels, such as television, apps, sites, and phones. If you don’t have cash or a credit card on hand, you can buy the same item online using their website or app, that was made to better the digital client experience.

    Pricing strategy

    It uses premium pricing, which sells different high-quality goods at a high cost.

    Advertisements and promotion

    With creativity as a driving force, they’ve rolled out a new philosophy of starting fresh to provide retail a fresh perspective. They strive to start fresh in terms of results, items, clients and thrive as a result of the many offers made available to users. A terrific addition to the company’s name was an endorser or celebrity appeal to the business.

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    Competitors of Shoppers Stop

    Pantaloons:

    It is a big rival of Shoppers Stop. It was created in 1997 and is headquartered in Mumbai, Maharashtra. Pantaloons, like Shoppers Stop, play in the apparel, and accessory market. It accounts for 296 percent of Shoppers Stop’s sales.

    Fbb

    One of Shoppers Stop’s main rivals is Fbb Online. It is a firm based in Mumbai, Maharashtra. It was started in 2001. Fbb Online, like Shoppers Stop, is in the logistics, Wholesaler, and Retail Distributor industries. Compared to Shoppers Stop, it has 4,782 fewer employees.

    Max Fashion

    It is regarded as one of Shoppers Stop’s most formidable competitors. It is based in Bengaluru, Karnataka, and was formed in 2004. Max Fashion, like Shoppers Stop, participates in the logistics, Wholesaler, and Retail Distributor industry. It earns $350.2 million more than Shoppers Stop.

    Future Plans of Shoppers Stop

    Its goal is to become the leading player in India. The firm plans to deliver to India the greatest retail technologies, retail processes, and sales worldwide. As part of their growth strategy, they are currently adding 4 to 5 more outlets to their portfolio annually.

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    Conclusion

    Shoppers Stop is the nation’s first department store, and it serves to set the standard for all department stores nationwide. With new models and alliances, the firm is ready to reshape the Indian retail environment. However, their dedication to delivering only the best to its users will ensure that success does not come at the price of quality.

    Due to its drive to analyze and serve the needs of all of its partners, as well as generate ideal retail models for Indian clients, it has developed to what it is today. The firm is in a big race to develop long-term models that will not only support development but also add value to shareholders.

    FAQ

    Who is the owner of Shoppers Stop?

    K Raheja Corp. laid the foundation of Shoppers Stop on October 27, 1991.

    Is Shoppers Stop an Indian company?

    Yes Shoppers Stop is an Indian department store chain owned by K Raheja Corp.

    What is the revenue of Shoppers Stop?

    The revenue of Shoppers Stop is 1725.09 crores.

  • HubSpot Business Model: How does HubSpot Make Money

    The internet has brought an immense change in the world, its invention is the game-changer in the technology industry, and is actually the root of every modern tech. In fact, the entire world is literally in our hands because of it.

    Thanks to technological advancement, now we can store and manage data on the internet itself and can also provide IT services through it with the help of Cloud computing systems. In this computing system, we don’t need computer hardware to run the program and store the data.

    The growth of a company hugely depends on its marketing, sales, and its customer service; a business has to do a lot of things for its survival. Online marketing is a new way, and a business must indulge itself in it. The software is used for all of these so that a company can grow to its full extent. One of the most popular platforms that offer all the above facilities is HubSpot. In this article, we will talk about HubSpot, its business model, how it makes money and what exactly it does. So let’s begin with it.

    “Every kid coming out of school now thinks he can be the next Mark Zuckerberg, and with these new technologies like cloud computing, he actually has a shot.”

    – Marc Andreessen

    What is HubSpot?
    Business Model of HubSpot
    How does HubSpot Make Money?
    FAQ

    What is HubSpot?

    HubSpot was founded in the year 2006 by Brian Halligan and Dharmesh Shah, both of them are MIT graduates. HubSpot is mainly about developing cloud-based marketing software, for businesses to market themselves online.

    HubSpot is a huge platform that deals with everything that is needed in the process of digital marketing of a business, like Inbound marketing, social media publishing, blogging, SEO, web content marketing, email marketing, and reporting and analytics. Its headquarters is in Cambridge, United States of America. Basically, it is a software platform that helps business sell their products and services more.






    Try HubSpot


    In 2021, HubSpot acquired The Hustle, which is a newsletter company that deals with small business owners and entrepreneurs. In the month of September of 2021, Yamini Rangan becomes the new CEO of HubSpot.

    What Is Inbound Marketing?

    Hubspot deals with CRM (customer relationship management) and offers inbound marketing. Inbound marketing is all about helping potential customers find the business by making it visible online. Inbound marketing includes SEO, social media marketing, content marketing, and email marketing.

    What Are The Advantages Of Inbound Marketing?

    Here, we will talk about the benefits that a business gets from inbound marketing. They are:

    • Gets the business its customers from different sources like YouTube, Blog, and social media instead of from a single source.
    • Trust can be ensured to the customers when the company shares the content about their products and services that shows their reality.
    • If inbound marketing is done properly, advertisement costs can be avoided and money can be saved.
    • Content is created in such a way that they can reach the audience whenever they search about something using specific terms.

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    Business Model of HubSpot

    HubSpot being a SaaS company indulges in the creation of software for inbound marketing and sales-related work. It mainly makes money through subscription plans and of course professional services that include providing tools to help in the process of digital marketing of a business.

    When HubSpot first started its journey, it used to focus on small and medium-sized businesses, but now with time, any kind of business that wants to strengthen its online presence is, willingly investing in HubSpot. In 2007, only they proved their mettle when it acquired their competitor GroupSharp.

    How does HubSpot Make Money?

    The software made by HubSpot is sold on a subscription basis. The CRM (Customer Relationship Management) tool is free for the customers to use, plus this helps HubSpot attract customers to use their subscription basis plan.

    The hub application of HubSpot is another form where the income comes from. It includes three hubs, which are marketing, sales, and service hub. Third-party apps, consultation, and events are additional ways how HubSpot makes money.

    Marketing Hub

    The marketing hub comes in three different plans and they are starter, professional, and enterprise. This also comes in a free package as well and helps in converting the users into customers that willing to pay.

    Sales Hub

    The Sales hub is used to boost the performance of the sales of the business. It has some great features that include live chatting with potential customers, sending quotes to the customers, and others.

    Service Hub

    The Service hubs include a different support system that the customers need, like giving out surveys and answering all the frequently asked questions to enlighten the customers more.

    Third-party apps like Outlook, Mailchimp, and Slack provide these hubs offering to the customers. Consultation service is offered by HubSpot like SEO-related tips for the customer’s website, content strategy, and others.

    Events are also conducted all over the world to advertise their tools and services and teach how to increase sales, all these come under a fee that the audience of the events had to pay.

    As of 2021, HubSpot has reached over $1 billion in annual recurring revenue. The 15-year-old company has over 100,000 customers that are paying for its services. In the year 2021, HubSpot reportedly has over 4981 employees and with so many employees and a brilliant business strategy, the revenue of the company is not at all surprising.






    Try HubSpot


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    Conclusion

    HubSpot as a CRM platform with its different tools works in making the business reach the heights of success through the help of inbound marketing.  We are in a position where we cannot ignore digital marketing for our business.  All the things that are necessary for the digital marketing of a business, HubSpot gives out those services through cloud computing.

    FAQ

    What is HubSpot used for?

    HubSpot is a CRM software designed to help customers in aligning the business sales and marketing teams.

    Is HubSpot good for Small Businesses?

    HubSpot is said to be the best for small and mid-sized businesses that are looking to attract customers online.

    Who is the CEO of HubSpot?

    Yamini Rangan is the current CEO of HubSpot in 2021.

  • Business model of MakeMyTrip | How does MakeMyTrip make money

    When it comes to tour and tourism, MakeMyTrip holds a leading position in the market. The very popular Indian travel company, MakeMyTrip, launched in the year 2000. Ever wondered how this company makes money? Or how its business model is designed? Well, in most simple words, the business model of MakeMyTrip entirely revolves around the online travel services it offers.

    MakeMyTrip provides the facility of booking tickets for holidays, flights, busses, cars and trains. This travel company has made booking tickets very convenient for Indians. Also, it has improvised the travel conditions and arrangements in India.

    In this article, we have discussed the business model of this amazing travel company- MakeMyTrip and how it makes money. So, let’s get started!

    About MakeMyTrip
    Key services of MakeMyTrip
    Target Audience
    Where does MakeMyTrip operate?
    Business Model of MakeMyTrip
    What is unique about the business model of MakeMyTrip
    How does MakeMyTrip make money?
    FAQ

    About MakeMyTrip

    MakeMyTrip is a very famous Indian travel company, established in 2000. The company provides some very amazing online travel services and offers. With MakeMyTrip, you can book tickets for flights, hotels, buses and many more.

    This famous travel company was founded by Deep Kalra. The company directly communicates with the customers through its verified online platform and deals with all customers’ concerns related to travelling. In other words, MakeMyTrip is the perfect guide for you to plan your vacation.

    MakeMyTrip owns around 30+ franchised stores along with 14 different stores across 28 cities. In the year 2012, the company developed and launched its mobile application for its customers that provides over 10 lakh routes all around India. MakeMyTrip has made travelling super cool and convenient for the Indians by helping them in all aspects of travel requirements.

    Key services of MakeMyTrip

    MakeMyTrip provides various beneficiary services for its customers. Some of them are booking tickets for any sort of travel media such as flights, trains, buses or many others. Besides this, booking tickets for hotels, hire cars, and holiday packages, etc.

    Apart from this, there are many third-party services also available such as travel insurance, Visa and many others, especially for travelling in any other country.

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    Target Audience of MakeMyTrip

    There isn’t any specific group that MakeMyTrip separately focuses on. The travel company focuses on different groups with different specifications and segments. It attracts all kinds of age groups and genders. Although the company does prefer customers who have a vivid connection with the internet.

    Where does MakeMyTrip operate?

    MakeMyTrip is an India-based travel company but the company has expanded itself into foreign countries as well such as America, UAE and many others. MakeMyTrip has well-functioning offices in New York, Bangkok, Dubai, Kaula, Singapore, Phuket and many others.

    Business Model of MakeMyTrip

    The business model of MakeMyTrip is very strategic and mainly based on customer service. MakeMyTrip provides the audience with great offerings and also, facility to book tickets.

    India, being the fastest-growing digital travel agency that basically benefits brands like MakeMyTrip in making them a strong contender in the global market. And for this, their business model entirely strategies the marketing, price, name, promotion and location. The company provides satisfaction to its customers through its amazing customer-centric services.

    Apart from this, MakeMyTrip provides its services at affordable pricing rates. MakeMyTrip provides an e-marketplace that is basically available for a huge range of audiences across the world.

    The company promotes its services and offerings through electronic banners on television commercials, websites and various other channels. Also, it promotes through offline retail stores.

    Today, MakeMyTrip has become an elite brand and has great strategic planning including various marketing schemes and campaigns.

    What is unique about the business model of MakeMyTrip

    MakeMyTrip is way beyond just creating the most amazing experience for customers. In the competitive marketplace, MakeMyTrip offers the facility of customer testimonials that give strong feedback on the company’s customer service managers. And the great customers’ experience is what favours the company most.

    In addition to this, MakeMyTrip works on various tactics and technologies to improvise its products and services. This brings out a great additional advantage to the company, especially over its audience. Along with this, MakeMyTrip provides an advanced place to its retail stores for showing the company’s products.

    Revenue of MakeMyTrip
    Revenue of MakeMyTrip

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    How does MakeMyTrip make money?

    MakeMyTrip has its major revenue source from the fee it charges over the online bookings. Although the company provides the most affordable flight tickets, that’s what attracts the customers more. They do this by purchasing the tickets from the private airlines by a huge number and they then reduce the charge and sell these tickets to the customers and earn a good extra commission fee.

    MakeMyTrip earns huge profit through the flight tickets but as there aren’t many options available with the trains that’s why they did not offer this service over train tickets. The company has over 5000 to 10,000 registered hotels and around 1000 registered busses.

    Apart from this, the major source of revenue is from marketing of various companies like Tata, Kingfisher, SpiceJet and many others. They also earn revenue by advertising holiday packages of various hotels on their website.

    Conclusion

    MakeMyTrip is known as the leader in the travel market in India. The company follows the Business-to-consumer digital business model. It is amazing with its services and products, both online and offline platforms. The travel market in India has grown at the rate of 40% and a huge market share is taken by MakeMyTrip.

    This clearly shows that the company has its marketing strategies very effective and efficient. MakeMyTrip earns a good amount of revenue and has a strong marketing position. Stay tuned for more content!

    FAQ

    Who is the founder of MakeMyTrip?

    MakeMyTrip was founded by Deep Kalra in 2000.

    What is the revenue of MakeMyTrip?

    The revenue of MakeMyTrip was 163 million U.S. dollars as of 2020.

    Who are the competitors of MakeMyTrip?

    MakeMyTrip’s top competitors include Flight Centre Travel Group, Treebo, TravelTriangle, Yatra and ClearTrip.

  • Business Model of Honey | How does Honey makes Money

    Honey is a software extension that helps you find suitable coupon codes for the product you have sold. Honey was started in 2012 in Los Angeles with the sole purpose of helping buyers find genuine codes. It started small but with time, it got a lot of success.

    Today, it works with more than 30,000 retailers. It has an extension for many browsers like Google Chrome, Mozilla Firefox, Microsoft Edge, Opera, and many other prominent browsers.

    Within its short journey, it has earned a lot of loyal customers over time. These customers use the services of Honey almost daily for their purchases. Honey gets mostly used when they want to order pizza. It works more efficiently in this field because this idea came to co-founder Ryan Hudson when he could not get any reliable coupons when he was buying Pizza. In this article, we will look at the business model of Honey in detail.

    About Honey
    Business Model of Honey
    How does Honey make money?
    What is unique about Honey’s Business Model?
    Honey PayPal Acquisition
    FAQ

    About Honey

    Honey was started in 2012 with the intention of providing reliable information of coupons. The idea came to the co-founder Ryan Hudson when he could not find any reliable coupon to buy pizza. Even after finding a reliable coupon, he found that it was a tedious task to find proper codes. He thought of automating the process completely. He started coding the extension for the Google Chrome browser.

    At first, Honey was not so successful. Both of the founders George Ruan and Ryan Hudson after developing their minimal viable product went to various investors who did not fund them at all. As a lot of investors were turning down their offer, the founders got frustrated. Soon they were out of funds and, Hudson started working in an ad tech company.

    Honey Founders
    Honey Founders

    Things turned around when somebody mentioned Honey on Reddit. Soon Reddit started flooding with praises of Honey as people many had installed the extension and were delighted by its usage. In 2016, they managed to get their first funding of $4 million.

    In 2017 alone, it had 5 million downloads. In 2020, the downloads reached to 10 million.

    Business Model of Honey

    Honey makes money from affiliate marketing. Honey does not have any deals with the stores directly. They work with various affiliate marketing platforms. Currently, Honey is working with about 20 affiliate marketing platforms. Their platform includes big companies like eBay, Rakuten, Groupon, Commission Junction, ShareASale, and many more.

    Apart from that, the company has set up some unique ways to grow themselves. Honey has set up clever cashback programs which will help them retain customers. This will lead to the long-term growth of the Honey platform as it is increasing its customer base.

    Honey has cleverly designed interfaces that would enhance compatibility with the user. It has a feature where it can compare different products of the same category and show their price comparison to the customer. Customers also receive a cashback under the Honey gold program. This increases the recall value of the customer. It also increases their market share.

    Honey Gold Program
    Honey Gold Program

    How does Honey make money?

    Basically, Honey earns money from affiliate marketing but it has many other features integrated to enhance its affiliate marketing business. Honey is a unique product and it has also positioned itself cleverly in order to capture the majority market share.

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    What is unique about Honey’s Business Model?

    Honey gold program

    Honey has a gold program where they give customers some cashback from the affiliate earnings. Thus it is a win-win situation. Through this, Honey retains more customers. Also, the customer is benefitting by saving more.

    Droplist

    Honey Droplist
    Honey Droplist

    In this droplist, you can check the cost drop for the selected item. It helps the consumers to make better decisions and, it also enhances consumer convenience.

    Price history feature

    Honey Price History
    Honey Price History 

    You can also see the price history of the product with the Honey extension. It helps the customer make better decisions. For example, if the product is showing a periodical dip then, the customer can delay his/her purchase and wait till the price drops again.

    Amazon’s best price

    With the extension, you can choose the best Amazon price. The honey extension shows the price of different products available for the selected item.

    Savings finder

    Honey Savings Finder
    Honey Savings Finder

    It automatically applies coupons from other prominent sites. This is the main feature why Honey is so attractive.

    Honey PayPal Acquisition

    Honey had slowly evolved from a small business to a billion-dollar evaluation company. They had specifically integrated such features which would enhance their customer adaptability.

    With time it positioned itself competitively and grew as a unique company. Things started turning and, Honey generated revenue. Their business model worked perfectly and, investors flocked towards the company.

    PayPal noticed the company and started negotiations with the founders. In 2020, January PayPal acquired Honey for 4 billion dollars. PayPal integrated Honey with its platform.

    PayPal acquired Honey because they don’t have much chance of collecting data from a user. Honey is an extension that plays a major role in the buying behaviour of the consumer and acquires those data. This data will help PayPal acquire more data regarding its users. This helps them understand the likes and dislikes of the people.

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    Conclusion

    Honey has slowly but steadily grown its business. Initially, they started small and then went on to implement some clever strategies to make itself more user-friendly. They acquired more customers and retained them with much-shrewed techniques. Their step-by-step proper implementation has made them a huge success.

    FAQ

    Who is the founder of Honey?

    George Ruan and Ryan Hudson is the founder of Honey.

    How does Honey app make money?

    Honey makes money from the commission made on user transactions with partnering retailers.

    Did PayPal acquired Honey?

    PayPal acquired Honey for $4 billion in 2020.

  • WeWork Business Model | The Secret behind WeWork’s Success

    WeWork was once hailed as the fourth highest-valued startup in the world after giants like Uber. It took on to the startup world through its idea of co-working spaces, which became really popular in a very short span of time.

    As its name indicates, WeWork offers office spaces for various businesses and entrepreneurs to pursue their work at a cost that is far lesser than what they would have had to spend if they were preparing a workspace from scratch.

    WeWork was founded in 2010 and it was valued at $47 billion at its zenith. One of the major reasons why WeWork worked was because of the responsibilities that the business owners can leave out by renting workspaces from this start-up.

    However, since the announcement of its initial public offering in August 2019 the company has received a lot of criticism. Furthermore, it also became the victim of humongous losses due to the onslaught of the coronavirus pandemic, post which it was valued at $9 billion. Following that the company postponed the IPO indefinitely and two years later in March 2021, it announced that the company is going with the merger with BoX Acquisition Corp, which is still pending, as of October 2021’s reports.

    WeWork – Latest News

    October 21, 2021 –  WeWork will finally go public. The company is all set to list its shares in the New York Stock Exchange as soon as this week.

    October 6, 2021 – WeWork India appointed Megha Agarwal as the new Head of Marketing. Furthermore, it elevated Raghuvinder Singh Pathania to the Head of Community, India, who is also the Head of Operations at WeWork India. Besides, the new role of the Head – Digital Products is handed over to Dharam Mehta.

    October 1, 2021 – WeWork launches Growth Campus, which is deemed to work in line with WeWork Labs. With the help of this new initiative, WeWork plans to encourage the world of startup companies to get access to workspaces at subsidized rates.

    The Smart Pitching approach of WeWork
    Business Model of WeWork
    How WeWork is Making Money Through Renting
    FAQ

    The Smart Pitching approach of WeWork

    WeWork has successfully created an image wherein they posed themselves as a technology driven startup even though their basic level rests upon real estate. It is only in the development of a particular workspace that they deploy technology and not necessarily in the ways of doing business in itself.

    However, that is not how WeWork portrays itself to the world or to their investors. This is because of the fact that these days technological companies tend to receive funds rather than non-technical ones.

    The valuation of the WeWork has proved this correctly. Even though it does not make any profit or have a stable cash flow it is still valued way above its counterparts, whose valuations are not even half of that of the WeWork even though they have better profit and cash flow.

    Hence, the way it portrays itself has a significant role in helping the startup to gain value.

    Business Model of WeWork

    One of the major partners of WeWork is entrepreneurs and small business owners who want office spaces for various purposes related to their organisation at a very cheap rate. Some of these people may not even need the spaces for a long period of time.

    WeWork has suitable packages for all these kinds of people. The ones who rent out space from the work need not worry about any kind of bills or maintenance or connectivity. All these are handled by WeWork in itself.

    As far as business owners are concerned this in itself is a huge advantage for them. The fact that it will cost more than double of the rent that they have to pay for the work, had they had to set up a workspace like the ones offered by WeWork.

    On the other hand, as far as the people who lease these work spaces to WeWork are concerned, they prefer the ways of the organisation. It is because WeWork takes large work spaces for lease for at least 10 years and then they divide them into smaller work spaces and rent it out to other businesses.

    Here, the owner will always prefer entering into an agreement with one organisation for a long duration than with multiple small buyers for a short duration of time. This also means that they will be able to keep track of the transactions and focus on other businesses in a better manner. They need not worry about finding a tenant or dealing with too many agreements at the same time.

    The requirements of rework and the demands of the lender matches along with the needs of small businesses. In this way all the three partners do their business smoothly in all regards.

    WeWork has launched Growth Campus on October 1, 2021, with an aim to encourage the startup ecosystem. The company is starting this new initiative with an investment of around $3 million, as of the latest reports, and will extend its workspaces to budding companies and startups at highly subsidized rates.  

    Revenue of WeWork
    Revenue of WeWork

    How WeWork is Making Money Through Renting

    Although the nuances of WeWork look sophisticated at the end of the day it is an office space renting company. Majority of its revenue comes from renting of spaces to people.

    They take in real estate spaces from owners for lease and then convert them into smaller work spaces and common areas. They devise their packages in such a way that it suits all kinds of people.

    Sometimes these areas are as small as per room or maybe even a floor. It can also be as large as a whole building in a prime location. Independent freelancers and workers who require office spaces with better connectivity only for a small duration find the services offered by WeWork the most advantageous.

    From small businesses to big companies like OnePlus, have rented office spaces from WeWork. The rising of shared office culture was also a great advantage for WeWork and it has undoubtedly contributed to its success.

    Conclusion

    Over the years WeWork has been experiencing severe losses due to their carefree approach and improper planning. The only reason why WeWork continues to survive is because of its high valuation and funding that it received purely due to the way they portray themselves as a technological company.

    They have also tried to expand their niche beyond work spaces. They have a very attractive state of the art architecture in spaces in prime locations which significantly adds to their value and an elite image.

    WeWork can at the same time be an example for how a business should put themselves in front of others and also how not one should plan their initiatives. Their strategies and models have got a lot to learn from.

    FAQ

    How does WeWork make money?

    WeWork generates revenue by renting office spaces to businesses and companies.

    What is the valuation of WeWork?

    The valuation of WeWork is $9 billion, as of October 2021.

    Who is the founder of WeWork?

    WeWork was founded by Adam Neumann and Miguel McKelvey in 2010.

  • Cricbuzz Business Model | How does Cricbuzz makes money

    When the most awaited T20 World Cup match final is gonna start, as you are oblivious of it and attending a crucial meeting at the office or with family. You can skip neither meeting nor the match. Even though you have a phone and a ferret for the score on Google doesn’t give you more goosebumps than watching it live.

    Sometimes, Google itself takes time to update the current news of cricket, but here Cricbuzz is an app & sports website that engages in Indian cricket news. Cricbuzz covers news, articles, live commentary including the textual context in the video of live cricket, player stats and team rankings.

    Times of India invested a major share and became the owner of Cricbuzz. Three former Infosys employees- Pankaj Chhaparwal, Pravin Hedge and Piyush Agrawal jointly developed a mobile app for live cricket news & scores in 2004.

    Cricbuzz became the 7th most searched site in India as of 2014, and the app was hyped with more than 100 million downloads in 2019. According to the report, in 2015 the Cricbuzz website crossed over 2.6 billion page views, making it the most renowned mobile app for cricket news in India.

    Where does Cricbuzz operate?
    Target Audience of Cricbuzz
    Business Model of Cricbuzz
    How does Cricbuzz make money?
    FAQ

    Where does Cricbuzz operate?

    Cricbuzz is an Indian cricket news website that functions all over India, gathering all cricket news & score live and updating it on the website.

    Target Audience of Cricbuzz

    When statistics are taken by Top end Sports on ‘which country has most cricket fans?’ whereby India ranked first in the list with 100 regional popularity. Usually, 70% of people in India are cricket fans, and without any dubious Cricbuzz underscore the population of Cricket die-hard fans.

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    Business Model of Cricbuzz

    Cricbuzz offers live coverage of cricket matches including videos, updated scores, and commentary. It provides its services to On-Mobile. On-Mobile has collaborated with different mobile operators that function its services worldwide over 1.68 billion mobile users across the globe. Cricbuzz derives its primary source of income via ON-Mobile.

    Apart from that, Cricbuzz generates revenue from displaying advertisements on its platform, where they have partnered with InMobi for generating mobile advertisements.

    Cricbuzz became the most reputed sports website in India, after defeating the top competitors– International Cricket Council, Cricket Exchange, ESPNcricinfo and OneCricket.

    How does Cricbuzz make money?

    The two main sources of revenue of Cricbuzz are advertisements and selling the latest cricket updates to the On-Mobile networks as they cast the gathered information of cricket from Cricbuzz on various sports networks all over the world. Also, the company sells cricket scores to the Telecom operators and, they present the scores on other sites and charge a small fee for them.

    Besides, the Hike messenger pays a huge sum to Cricbuzz in streaming live scores to its users. Cricbuzz sends messages to their users to keep informed of the latest news & scores of the live match. Notably, Cricbuzz net revenue is worth 7.8 million dollars with more than 100 million users.

    Cricbuzz also generates revenue from its recently launched subscription service – Cricbuzz Plus. The services offer users In-match clips for select India matches with no ads.

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    Conclusion

    Every game has a bunch of crazy buffs, but cricket lovers are the craziest among them. When a match begins they get into their own space. It’s only them and the game, the rest of the world turns out blank. They skip their food, family, friends and even work if they can, they refuse to book from the screen just to make sure they don’t miss any of those crazy fan moments or shots.

    Sometimes, there come unavoidable duties and we have no option left other than skipping the game. But that doesn’t mean we can’t keep track of the scores of the game.

    If you want to know the live scores and news at the actual time, then the Cricbuzz is one you are looking for. The scores are updated on the site, or you can also download the Cricbuzz app on your device.

    FAQs

    What is Cricbuzz?

    Cricbuzz, an Indian website where the live scores of the cricket matches are uploaded along with videos, Articles, and other stats. The website was Launched in November 2004. You can also get the updates through the Cricbuzz app.

    Who is the founder of Cricbuzz?

    Cricbuzz was created in 2004 for the cricket buffs to know the live scores and the current updates. Pankaj Chhaparwal, Piyush Agrawal, and Pravin Hegde are the originators of Cricbuzz, and still are the managers.

    What is the  revenue of Cricbuzz?

    As per the stats, the Revenue of the Cricbuzz is $7.8 million.

  • Craigslist Business Model | How does Craigslist make money?

    When you are related to advertising, you must have come across one of the most brilliant and successful advertising websites – Craigslist. Started as a “side-gig” the brand truly made a remarkable presence in the advertising businesses and made its strong position in the billion dollars company’s list. Sounds impressive, right? Well, yes! That’s some pretty amazing strategies behind it.

    Craigslist came out as a non-profit organization but soon the company took its level up and registered itself as a profit organization in the year 1999.

    However, in the very same year, Craigslist bought a verified domain for its company in order to protect its brand significance and name in the market. Also, it made the subscribers more dedicated towards the brand.

    But it can’t be ignored that the tactics and strategies Craigslist applied in its marketing are pretty strong and present an example among the other companies. Talking about strategies, let’s get a brief understanding of how Craigslist came out to be such a successful brand. So, Let’s look at its business model and how it makes money.

    What is Craigslist?
    Where does Craigslist operate?
    Target audience of Craigslist
    Business Model of Craigslist
    How does Craigslist operate?
    How does Craigslist make money?
    FAQ

    What is Craigslist?

    Craigslist Website
    Craigslist Website

    Before we get started with the business model of Craigslist, let’s understand what really is Craigslist?

    Craigslist is an online marketplace that provides services to people and companies for listing on its official website. They can post their listing of jobs, services, offerings, or sale items as per their requirements.

    Craigslist was founded by a prominent American internet entrepreneur, Craig Newmark who is also known as a famous philanthropist. The brand was established in 1995 and is headquartered in San Francisco, California.

    Today, Craigslist is known as one of the most visited websites across the world with a monthly visit of more than 500 million visitors.

    Where does Craigslist operate?

    Being one of the most successful advertising websites across the world, Craigslist operates in around 23 largest cities in the United States which are promptly listed on the homepage of the Craigslist website.

    Apart from this, the brand serves over 700 cities across 70 countries in the world. The users can easily see the ads available in their nearby locations based on their residence.

    Target audience of Craigslist

    Craigslist targets every community, age group, and gender. As it provides ads in various categories across the globe, it does not target its audience specifically. So, Anyone with an internet connection can easily benefit from the amazing service of Craigslist.

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    Business Model of Craigslist

    The most amazing tactic that Craigslist uses in its marketing plans is offering the service of posting any sort of ad from any category by anyone, on its official website. And that’s something that attracts more users towards it.

    In fact, Craigslist allows users free classified services for posting ads. This makes the brand extremely different from the usual advertising companies.

    However, when it comes to specific sections for advertising, Craigslist does charge some money that varies according to advertising plan and the geographical location.

    With Craigslist, users get a wide range of commercial categories where they can list out their ads. Then when visitors see their preferential advertisement, they can get directly in touch with the user through the given contact information.

    How does Craigslist operate?

    Craigslist functions as a host for displaying classified ads from different categories including job postings, sales items, housing, business, service (Beauty, legal or lesson), and personal.

    For classified advertising, Craigslist is absolutely free of cost and also for browsing and ad responding. It charges a definite amount of money in only some specific categories.

    How does Craigslist make money?

    The main source of revenue for Craigslist is charging the users for listing their ads in some selected categories. The rate varies as per the geographical location and the advertising plan the user opts for. Like for the listing, Craigslist charges around $3 to $75 based on the category and preferences.

    Apart from these specific charges, Craigslist is absolutely free for the users as well as the users and interested candidates.

    Initially, Craigslist came out with the freemium model that only attracts more customers and increases growth. The founders did their best in keeping Craigslist an affordable brand for the convenience of its users. Besides, the highest rate that Craigslist charges is $75 in the job postings section, that too in the United States; the brand did its best to provide the utmost choice and service for the users.

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    Conclusion

    To conclude, with time, Craigslist came out as one of the biggest and most successful advertising websites across the globe. Although the founders keep the numbers hidden, it’s quite sure that they earned great profit through their website.

    In the upcoming years, Craigslist will be seen with advanced business developments in order to emerge more promptly in the marketplace. Also, it would be providing new channels to the advertising industries as an alternative opportunity.

    Even though the brand charges so little from the users and has such a simplified charging system, Craigslist still made a remarkable market presence.

    FAQ

    Who is the founder of Craigslist?

    Craigslist was founded by Craig Newmark in 1995.

    Is Craigslist available in India?

    Yes, Craigslist has an India specific section and is currently available in 16 states.

    Is Craigslist free?

    Craigslist lets users post listings for free but for some specific listings users have to pay a fee.

  • The Business Model of Britannia: The Untold Model of The Household Name

    It is almost impossible to not hear about Britannia while living in India. This household name has conquered the country with its spectacular food products, which have been tasted by almost everyone. From starting a ‘Good Day’ by being the partner of a cup of tea to patch up the broken hearts with ‘Little Hearts’. It has done everything, to be one of the leading food companies in India specializing in bakery and dairy products.

    Britannia, the name of the brand itself speaks its value. Since the 1990s, it has fallen under the Wadia group that has now been lead by Nusli Wadia. It has been a part of the country for over a hundred years and has been serving the taste buds of many generations.  From biscuits to cheese, to cakes, you name it, they have it.

    The success that this company tastes is a result of a structured business model. Let’s find out about the model that helps the business to climb the stairs, to reach the top position.

    Legacy of Britannia
    Where Does Britannia Operate?
    Products of Britannia
    Target Audience of Britannia
    Business Model of Britannia
    What is unique about Britannia’s Business Model?
    How Does Britannia Make Money through Its Business Model?
    FAQ

    Legacy of Britannia

    The history of Britannia is just like the taste of its products, rich and fascinating. In 1892, the Britannia industry was founded by some English businessmen and the investment was of just ₹295. It was started as a mere bakery at first.

    Later on 21st March of 1918, another businessman, named C.H. Holmes becomes a partner and the Britannia Biscuit Company Limited came into existence. Initially, Britannia was only manufacturing biscuits and was selling them. Although, in 1997, they started producing dairy products as well, since then it hasn’t looked back.

    Where Does Britannia Operate?

    Britannia has its footprints in more than 60 countries and has been serving them nonchalantly. Especially, it has conquered the hearts of the Middle Easterns, by locally manufacturing its products in UAE and Oman. International Bakery products serve as the subsidiary of Britannia. The main headquarters of the company is in Kolkata. Britannia products are distributed among over 5 million stores in the country.

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    Products of Britannia

    As mentioned before, Britannia manufactures and sells Bakery and dairy items.

    • Bread and Buns -Britannia bread, Atta Kulcha bread, Britannia Pav, Britannia sweet bun, Britannia fruit bun
    • Biscuits -Good Day, Britannia Crackers 50-50, JimJam, Milk Bikis, Tiger, Marie Gold, Little Hearts, Bourbon, Nutri Choice
    • Cakes– Britannia Gobbles, Britannia Muffins, Tiffin Fun
    • Dairy – Cheese, Milk, Butter, Ghee Yoghurt

    Target Audience of Britannia

    The target audience of Britannia is not limited to a certain age group or of an income group. It is truly for anyone and everyone. Products like Little Hearts, Tiffin cakes are used, to appeal the kids. Nutri Choice is for those who are a little bit health-conscious. Marie Gold caters to the need of the older generation as well.

    Business Model of Britannia

    Britannia is a brand that decided to serve the people with utmost care with deliciousness and nutrition. It basically focuses on two things, Bakery products, and Dairy products. Its main motive is to provide healthy and nutritious food items to the people. With that target, it has become the first food company that has zero Trans Fat in its food items.

    It mostly deals with the outdoor and traditional forms of advertisements for its marketing strategy. It placed its bets on Television and radio advertisements, thus attracting almost every group of consumers.

    Net profit of Britannia Industries Limited
    Net profit of Britannia Industries Limited

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    What is unique about Britannia’s Business Model?

    Britannia becomes one of the leading Indian bakery brands by following some unique strategies. It has 13 factories located all over the country and has 4 franchises.

    Some of the key points of Britannia’s business models that make it unique are:

    • Its main objective is to promote biscuits of the Britannia brand more than other products.
    • It concentrates on providing food items to its customers that will fulfill their daily need for nutrition.
    • It believes in quality food items that deal with fruits, nuts, seeds, pulses, dairy, and protein substances that are necessary for the healthy growth of a normal human being.
    • Focuses on producing better quality food and selling them economically in prices for every income group.
    • It has joined hands with the Government and different NGOs to fight against malnutrition and undernutrition prevailing in the country.
    • It has started the Britannia Cares program that offers fitness activities to ensure a healthy lifestyle amongst its employees.
    • To counter attack micronutrient deficiencies in India, it has taken steps to avoid all those products that are harmful according to the Food Safety and Standards Authority of India (FSSAI)
    • Britannia also decided to curb down the salt and sugar limit of its snacks to promote Eat Right Movement by FSSAI in 2018.

    How Does Britannia Make Money?

    There is a number of ways Britannia makes money although its main focus is to provide nutritional elements through their food items to everyone.

    • Britannia’s revenue depends on the sale of its bakery and dairy products.
    • 95% of sales depend on the products dealing with biscuits.
    • 5% of sales depends on dairy products.

    Britannia has signed a deal of joint venture with a Greek Company named Chipita S.A to produce and sell ready-to-eat croissants in India. It is also working on expanding its demand abroad, especially in Africa and South East Asia.

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    Did You Know?

    Some of the interesting facts of Britannia are:

    • In 1921, Britannia becomes the first company from the East of The Suez Canal to import and use gas ovens.
    • The trust Britannia has created from their initial days made it possible for them to supply biscuits to the British army during World War II.
    • It is one of the oldest biscuit companies in India and carrying its legacy since 1918.

    Conclusion

    ‘Britannia’, this name carries the trust of millions of people. From providing biscuits to the soldiers during World War II  to being responsible by taking steps to eradicate malnutrition and undernutrition from the country. It has come a long way to be one of the biggest Food and Beverage companies of India.

    FAQ

    What is the revenue of Britannia?

    The revenue of Britannia was ₹11,878.95 Crores (US$1.7billion) in 2020.

    Who is the CEO of Britannia?

    The current CEO of Britannia is Varun Berry.

    When was Britannia founded?

    Britannia is one of the oldest companies in India founded in 1892 and is headquartered in Kolkata.