StartupTalky

Tag: 🔍Insights

  • How does Gmail makes Money?

    Every business generates services in order to get some sort of revenue. From a small business to a large industry, they all work for a single goal and that is Revenue. Likewise, Gmail also generates its revenue via rendering some services to the uses.

    Gmail plays as a business tool in the collection of data as it aids advertisers to ameliorate their ads in an ingenious way to bring quality out of it. Factually, more data engender more income to Gmail. The second way to earn, Gmail campaign personalized ads like contextual inbox ads within Gmail.

    Besides, Gmail also makes money out of generating GSuite subscription for businessmen, that helps to allow custom domain emails. People may wonder, how does data represent income to Gmail? When you sign up for Google email services by accrued on all Google’s terms and conditions. Ultimately your data has been stored in the Google Dashboard and those data are required to keep their business running.

    How does Gmail makes Money?
    Pros and Cons of Gmail
    FAQ

    How does Gmail makes Money?

    Gmail, a Google offered service mainly generates revenue by using its platform for personalized advertising for companies through advertising agencies and it shares user data to provide relevant ads according to the search and likes of the users.

    Advertisement contributes to the revenue of the company predominantly. Gmail also earns through GSuite Subscription. It is used by businesses and professional bodies and institutions to create custom domain emails.

    Businesses per se seek Gmail as their revenue source, where they pitch their products or brands to audiences. Gmail earns every penny by running personalized ads that emphasize highly user’s interest and track their activity across the web; Therefore, Gmail establishes pertinent advertisements according to the users.

    Furthermore, Gmail makes literally 120 million dollars per day from these three activities-

    • Displaying personalized ads
    • Share data to deliver relevant ads
    • Drive businesses to subscribe to GSuite for custom domain

    Gmail displays personalized ads

    Gmail Advertising
    Gmail Advertising

    Ever searched for a product that you wanna buy and your Google and Gmail is filled with advertisements related to the product. And Google earns by displaying those targeted ads.

    Have you heard of Google Adsense? Google Adsense is a program released by Google in June 2003. It provides publishers with a way to earn money through their online content by matching ads to the site based on the content and visitors. The ads are created and paid for by advertisers who wish to promote their products.

    While users sign up in Gmail, they permit Google to use their data. Google uses this data to show targeted ads to its users using Google Adsense. Gmail sends customized ads to the users’ inboxes based on the types of newsletters and emails subscribed by them.

    Gmail earns when a user clicks the ad that is being marketed. Advertisement revenue is high due to the large number of users on the platform.

    Business Model of Paytm – Every way that Paytm makes money
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    Share data to deliver relevant ads

    How many of you have clicked the “Agree to terms and conditions” box without reading them while creating your Gmail account? Definitely everyone. What we are essentially allowing is Gmail and by large Google is sharing our data with them. Personal data is the emails you send, the regular emails that you receive from your contacts and includes the people in your contact list too.

    By accessing your data, Google can know your preferences and dislikes, send ads accordingly, and gain higher revenue. But Google also gives its users the option to opt-out of such ads and sharing of personal data for targeted ads can be discontinued.

    GSuite Subscription

    GSuite tools
    GSuite tools

    Gmail earns through GSuite Subscription. GSuite subscription is a subscription plan for companies and professional institutions. Using GSuite Subscription, the company can use larger storage space and have customized email logins. They have access to all office applications. GSuite can be subscribed by making a monthly payment for every user. The standard price is USD 6 per user per month.

    WhatsApp Interesting Facts and Secret Features
    WhatsApp, the most widely used messaging app has some secret facts to know about. Here are some interesting facts & features of WhatsApp.
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    Pros and Cons of Gmail

    Pros:

    • Gmail account is mainly created to use any Google services like for installing a game or signing up for YouTube with a Gmail account.
    • Businesses have been gained much in the field of Gmail, by running personalized ads. Moreover, businesses can track down customer’s interests and work on it, to capture as much as customers to their business by rendering services which is favourable to them.
    • Low-cost services, as Gmail offers valuable email management features to the users. Business finds Gmail as their source of revenue, as Gmail runs personalized ads to track users.
    • Gmail is highly integrated within the Google ecosystem, and there will be no delude activity

    Cons:

    • While Gmail underscores highly on data collection, repercussion concerns on data monopoly and data privacy. Hackers may penetrate crucial data as leads to leakage of data privacy.
    • Zoho mail has offered multiply features such as bestowing lower-cost custom domains to businesses and competing with Gmail.

    Conclusion

    In the present world, everything runs on technology: virtual education, work from home, etc. making Gmail an integral part of our lives. Basically, all forms for all purposes ask for a Gmail address which shows the extensive use of Gmail and its large number of users.

    With the Covid pandemic, Gmail saw an increase in users and increasing use of Gmail by people that in 2020 Gmail had two major blackouts globally. Many Companies, Corporations and educational institutions had purchased GSuite to continue the work and education remotely during the pandemic making Google earn a large revenue. Thus making Gmail an essential part of the lives of people.

    FAQ

    What is Gmail?

    Gmail is a free email service provided by Google that generates revenue by displaying personalized ads to its users.

    How does Gmail generate revenue?

    The two major ways Gmail generates revenue is by displaying personalized ads to its users and through GSuite Subscription.

    Is Gmail profitable?

    Yes, Gmail is the number one email service provider and has over a billion users across the globe. It has become one of the profitable businesses for Google.

  • Apple’s Unusual Social media strategy | Why Apple does not post on social media

    Ever wondered why Apple isn’t active on social media platforms? Obviously, it’s surprising and at the same time, a little strange that an enormous tech company like Apple does not have a huge social media presence. Apple has always been pretty strategic and surprising with its marketing strategies. And especially when it comes to social media,  Apple follows entirely different social media marketing strategies to reach its customers.

    In the era where every brand is competing on this digital platform and opting for various strategies, Apple functions entirely differently.

    Other prominent brands work on creating engaging content to reach out the most customers and following the trends to achieve an effective social media presence and let the customers know about their latest along with upcoming products.

    When we combine Facebook and Twitter, Apple has around 12,921,598 followers, who have never seen Apple posting anything. In this article, we will be discussing WHY? That is why a brand like Apple does not have any social media presence. Let’s begin.

    Apple does not require any extra exposure
    Apple’s Strategic Planning
    Reasons Why Apple doesn’t Promote on social media
    Apple’s social media agency
    FAQ

    Apple does not require any extra exposure

    When it comes to exposure of a company into the global marketplace, Apple has a well-established position. Apple provides its own application for listening to music on AppleMusic, any help of guidelines on AppleSuppprt.

    Generally, brands use social media to enhance their company’s exposure and awareness on a global scale. But as we know, Apple doesn’t need that. The company is well established and widely famous around the globe. Every individual across the globe knows the image and standard of Apple. And that’s what this brand believes in.

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    Apple’s Strategic Planning

    Apple goes with a very solid strategic planning with the social media platforms. The biggest flex for it not using social media is, no hate comments and trolls from any users. And if a user did tweet something related to Apple, only their followers will be able to see it.

    Apple doesn’t work on anyone’s suggestion like it’s the latest update of restrictions on batteries inside the iPhone; if Apple had published this on any of its social media you can’t even imagine how much hate would have come to the company.

    When any such thing happens to other brands, people know they’d get a response on its improvement. But since it’s Apple, people were already prepared that they ain’t getting any response.

    However, in the past, Apple has posted a few things on its social media like Twitter and Facebook which you must have seen. This is for general promotion of their products.

    Apple posts things occasionally, on festivals or holidays only. They encourage people to give Apple products to their beloved on holidays as a gift and push them out in various forms. Recently, the tech company is pushing more towards such promotions and marketing.

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    Reasons Why Apple doesn’t Promote on social media

    In today’s era, when everything is done through social media platforms, Apple doesn’t go with this. Here are few reasons why:

    Holds the best customer loyalty engagement index

    Brands across the globe use social media for enhancing their marketing presence, customer engagements, and building community. Moreover, through some media, they offer great customer service for clients and sales.

    But when it comes to Apple, the tech brand already has the highest customer loyalty engagement index with its computers, smartphones, tablets, and Laptops. That’s why Apple doesn’t need to have a more social media presence.

    Social media buzz

    Apple works on increasing the social media buzz among its fans for the latest and upcoming Apple products on various social media platforms. Its marketing strategy is based on organizing conferences and events to promote the release of its new products and the PR team manages the rest.

    And that’s why the company creates social media buzz through its fans, influencers on social media platforms as well as public relations.

    Most Valuable tech brand

    Apple is stated as the most valuable tech brand in 2015 by Millward Brown, who estimated its value as worth $246,992 billion. With such immense popularity and success, does Apple require to find customers through social media? No, with its popularity, customers get attracted to themselves.

    Apple has put great effort and planning into creating its social media strategy. It works precisely with the right strategy. And that’s how the company remains on top even without active social media.

    Great Customers Service

    For any company, formulating a good product isn’t enough. Along with the quality, customers should also get the best services in hand. And Apple knows this very clearly. Apple provides the best customer service with its great quality products.

    Social media marketing is partly based on improving the customer’s services and as Apple already offers them through great customer engagement, it doesn’t require a social media presence.

    Apple’s social media agency

    With such immense success, does Apple have any social media agency? Maybe, maybe not! The answer is uncertain but, when we look at the estimated data and Apple’s success, we can conclude that the company has an almost non-existential social media presence.

    Apple may have someone from their company for managing social media, but they sure don’t trust outsiders with confidential and sensitive information regarding the company or any of its products.

    However, the subsidiaries of Apple may hire social media agencies for managing their social media presence and promoting their accounts.

    Conclusion

    Managing social media the way Apple does, requires absolute boldness and global domination. Social media has taken over every other brand across the globe, but Apple doesn’t give it the power to increase its global presence.

    For a long time now, Apple has been working towards establishing a strong market position. Apple is moving with a very strong strategic marketing planning. And their plans are worth considering! Its distinct form of social media helps the brand to safeguard itself from various social media pitfalls. And who knows, in the upcoming years these strategies grow even more differently.

    FAQ

    How does Apple promotes its brands?

    Apple promotes its products through commercials and print ads.

    What is Apple’s Social media strategy?

    Apple follows different social media strategy than other brands, it avoids promoting its products on social media.

  • Cannibalization- Why Do Brands Cannibalize Their Existing Products (With Examples)

    Every Business has faced this situation, where there’s depletion in the company’s sales turnover as a new product has been introduced, repercussions affecting the sale of old products in the similar product line.

    In other simple words, generally, Cannibalization refers to eating one species, where the devourer belongs to the same species. Just like that, in the business field, the instigation of modern products is coupling the demand and supply of former products.

    Obviously, people purchase the new launch and totally overlook the old product considering it a banal version of a similar product line, moreover this is prevalent in business.

    For instance, Apple constantly releases a series of iOS to its customers, when the company introduced iPhone 12 Pro, people were enthralled to acquire it and ultimately shut one’s eyes to its previous version-iPhone 12. Thus; Cannibalization engenders no vicissitudes in the company’s sales turnover regarding existing products but gradually accelerates sales growth for the new product.

    What is Cannibalization?
    Effects of Cannibalization
    Why is there a need for Cannibalization in Brands? How they overcome Cannibalization?
    Five examples to state that Cannibalization works for existing products:
    FAQ

    What is Cannibalization?

    Numerous corporations practice Cannibalism in Brands, by discounting existing products to compete with their recent products in the market. As a result, this will bring an augment profit on both existing and new products of the company. Besides, Cannibalization is nothing but a competition between exciting and fresh products of the same brand within the company.

    Effects of Cannibalization

    Just like Newton’s third law: for every action, there is always an equal and opposite reaction. So, when the incorporation did anything, then it would definitely influence the incorporation in terms of sales or production.

    If the company inaugurates a fresh product, say McDonald’s comes up with BTS meals, no wonder the BTS armies are everywhere and BTS meal is hyping up in recent times, albeit the existing food products like Big Mac or McMuffin are receiving derivative fond as customers prefer BTS meal to any other foods in McDonald.

    Therefore; no one holds any reprehensible for the loss of the company’s market share, but itself the company by inaugurating new products as one of the newest versions of its old products.

    Why is there a need for Cannibalization in Brands? How they overcome Cannibalization?

    Cannibalization plays a crucial part in brands; where existing products are overlooked because of the newest product introduction. This will accelerate the demand for new products and decrease the sales of former products of its similar product line.

    Businesses cannibalise their existing or outdated products by employing two ways to meet the same demand of their new product:

    Discount

    Company plans to touts existing products due to cannibalization, by providing discounts on such products in order to compete with the same demand for fresh products.

    For instance; Samsung has launched its new version Samsung Galaxy F22 in July 2021, which overruled its preceding product Samsung Galaxy F12 which came to the market in April 2021.

    What is the company planning to do, provided the former Samsung Galaxy F12 sales slump due to the demand for Samsung Galaxy F22 inflates?.

    Factually, it is apparently evident that people would buy stuff when it is provided at a discount rate. So, the company vents former products at a discount price, where people fall for Samsung Galaxy F12 rather than paying a higher price for its newer version.

    E-commerce

    This pandemic became a beneficiary to e-commerce, where everything is supplied through Amazon, Flipkart or Myntra etc. E-commerce is the best way to captivate customers by generating many offers such as festival offers, Today’s Deals or deal of the day etc. For instance, Amazon recently applied for 26th-27th July Amazon prime Day India by selling products at low prices.

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    Five examples to state that Cannibalization works for existing products

    Cannibalization for existing products can be seen in every company when a new product is launched ranging from low-cost products like school supplies to high-end products like vehicles. The cannibalization of existing products can be proved through these examples.

    iPhones

    Apple introduced iPhones which cannibalized iPods
    Apple introduced iPhones which cannibalized iPods

    Steve Jobs, the founder of Apple in his biography has quoted saying that ”If you don’t cannibalize yourself, someone else will”. And likewise, Apple itself cannibalizes its products.

    The iPhone first model was launched in June 2007. During this period Apple was coveted for its iPods and sales were at a high rate but Apple came out with iPhones that practically had the music feature along with phone services with internet connectivity and media support.

    This led to consumers straying towards iPhones as they were a better substitute for iPods. This product like in the case of iPhones is an example of Self Cannibalization.

    Coke-Zero

    Coke Zero Cannibalized Coke
    Coke Zero Cannibalized Coke

    Coca-Cola, famous for its product Coke and Diet Coke, chipped away at its sales by introducing Coke-Zero targeting the male population that worried about their sugar intake in 2006 in the UK while compensating their total revenue.

    Coca-Cola has also cannibalized itself by introducing Minute Maid, Fanta, etc. and removing coke and its variants as the essential face of the company.

    P&G’s Tide Detergent

    Tide Detergent was introduced to cannibalize P&G's Ivory Soap
    Tide Detergent was introduced to cannibalize P&G’s Ivory Soap

    Procter & Gamble was mainly known as a manufacturer of soap and was known for its Ivory Soap which had drawbacks of its own like dirt wasn’t removed when used with hard water.

    So even with risking cannibalization of their Ivory Soap, the company went ahead and introduced Tide Detergent in 1946 which was the first synthetic detergent that could deep-clean clothing as P&G didn’t want to be cannibalized out of the soap producer industry.

    Maruti Suzuki Alto

    Maruti launched Alto which cannibalized Maruti 800
    Maruti launched Alto which cannibalized Maruti 800

    Maruti Suzuki Alto manufactured by Maruti Suzuki was introduced in 2000. It was the Indian built version of the fifth-generation Suzuki Alto. In 2006, it was India’s largest selling car and by 2008 it had crossed 1 million in terms of production. But this increase in sales was only achieved by eating away the sales of the famous Maruti Suzuki 800. This was done with the help of price cuts and an ad campaign that lured many.

    WeChat

    WeChat was introduced to cannibalize QQ
    WeChat was introduced to cannibalize QQ

    China’s Tencent famously known as the world’s largest gaming company and the most-used internet portal used QQ an online instant message service during the period when desktop computers were the hype.

    QQ failed to meet the standards with the development of smartphones and electronic devices. Therefore Tencent ordered a group of engineers to develop a messaging platform that would cannibalize QQ. Thus, WeChat was developed and released in January 2011.

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    Conclusion

    When human beings, in general, see something better, they essentially want it and feel inadequate with the thing they already possess and an urge to be updated with the upgraded version begins to fester. This is exactly what leads to the cannibalization of products.

    The overlooking of existing products for a new one. If this phenomenon doesn’t work, there wouldn’t be customers for a newly launched product be it smartphones or vehicles.

    Also known as corporate cannibalization of market cannibalization, this phenomenon is also the doom for a company as this nips away the sale of the previously introduced product. Thus proving this phenomenon to be double-edged.

    FAQ

    What is the example of brand cannibalization?

    Coke Zero was introduced by Coca-Cola which chipped away the sales of Coke is one of the famous example of brand cannibalization.

    What is Cannibalization?

    Cannibalization is nothing but a competition between exciting and fresh products of the same brand within the company.

    Why do brands cannibalize their existing products?

    Brands usually cannibalize their existing products to accelerate the demand for new products and decrease the sales of former products of its similar product line.

  • All You Need Know About India Aviation Industry and Their Developments

    Everyone affinities to travel in the airline once in their lifetime and two-thirds of people in India have experienced their dreams. We all know, India is renowned for the Civil and Military aviation industry according to the International Air Transport Association.

    Starting its Voyage on 18th February 1911 by covering 9.7 kilometers from Jumna River to Nainin and ultimately becoming the burgeon aviation market in the world. Epiphany, India Aviation industry became the blue ribbon and prognosticate to rank third largest aviation market in the world by 2024.

    In the remote times, those people who are rich could afford the airline ticket, besides there is not much development made from the side of Indian Aviation industry.

    As time ticks away, we are here eventually becoming the fastest-growing aviation market and owning 128 operational airports as of now.

    The history of the Indian Aviation industry incipient back in 1911, where the plane was set as a tool to carry out mail across the Yamuna river to Naina. When it comes, domination of aviation- IndiGo stands top of the list, along with Spicejet, Vistara, AirAsia India and Air India.

    Furthermore, these six aviation networks connect nearly 80 cities across India and play a vital part in the development of the Indian Aviation Industry. On the other hand, Indian Military Aviation would never let us down in bestowing a major role.

    The three crucial constituents of military aviation in India are the IAF, Wings of the Army and the Navy where the Indian Air Force is the world’s 4th largest air force. As well as, it is stated that the military aviation industry is plotting aerospace research to study the aviation model related hardware and software.

    Market Size of Indian Aviation industry
    Government Initiatives & Developments in the Indian Aviation industry
    Major players in the Indian Aviation Industry
    Condition of Indian Aviation Industry In the COVID Pandemic
    FAQ

    Market Size of Indian Aviation industry

    Day by day, the number of travellers in India board gradually accelerated, which is reported as the industry quadrupled in size and expected passengers to be tripled around 560 million by 2037.

    Notably, the Indian aviation industry is the third-largest aviation industry in the world and stands 5th largest market regarding aircraft passengers in both domestic and international.

    Indian Aviation industry represents oligopoly characteristics and also sees a great impact in 2010- 2019 where a CAGR of 13.4% augment in the domestic passenger traffic, whereas the international grew at a CAGR of 9.3%.

    As is the case, the ongoing pandemic lucidly tumours the Indian aviation industry which incurred 2.9 billion in 2020 and 4.1 billion in the current fiscal year 2021-22, where the industry faced a decline in India’s passenger traffic.

    Government Initiatives & Developments in the Indian Aviation industry

    A Scheme for India’s unserved and under-served airports

    According to the National Civil Aviation Policy 2016, a scheme has been framed in order to enlighten the connectivity to India’s unserved and under-served airports. Additionally, the scheme also focuses on the price of a one-hour journey to be estimated at around 2500 INR.

    Indian Aviation industry may look into Investment upto USD 5 billion

    In the next four years, the Indian Aviation industry may look into USD 5 billion worth of investment and anticipate nearly 25 Billion foreign investment to enter the airport sector by 2027.

    The report by the government of India permitted 100% FDI on the Indian Aviation industry in order to consolidate the connectivity overseas. We could witness, UK group invest 950 Crore in Turbo Aviation New airline Trustar.

    Indian aviation industry set to build water aerodromes

    In 2021, the Indian aviation industry is set to build two water aerodromes in Assam and Andaman & Nicobar island to entice tourism as well as GDP. Besides, the government is planning to launch 14 more water aerodromes across India.

    Indira Gandhi International Airport

    The Indira Gandhi International Airport in Delhi is set to dilate in order to augment passengers, which subsumes new instalments such as Terminal point, additional runway and other advanced facilities.

    On the Government side, they are working diligently to maintain the sustainability of the Indian Aviation industry by providing financial services to many airports across the country under the UDAN scheme for advancement and development.

    Zurich Airport International to corroborate in development of Jewar Airport

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    Runways at seven airports across the country

    Prior to March 2022, the Airports Authority of India concurred to establish runways at seven airports across the country.

    Krishi Udaan scheme

    Krishi Udaan scheme is introduced under Union Budget 2021-22, to reduce air pollution by letting 50% for agri-perishable and ameliorate air cargo transportation in North-east states of India.

    Market share of Major Airlines in India
    Market share of Major Airlines in India

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    Major players in the Indian Aviation Industry

    In 2015, 22 airlines were operating in India. The Indian aviation industry has grown so much since then and the top players in the Indian Aviation Industry as of 2020 are:

    Interglobe Aviation (IndiGo)

    IndiGo is an Indian airline based in Gurgaon, Haryana that offers low-cost travel. The company was founded in 2006 by Rahul Bhatia of InterGlobe Enterprises and Rakesh Gangwal. The airline is the largest in terms of passengers carried and fleet size with having a domestic market share of 59.24% as of August 2020.

    SpiceJet

    SpiceJet is another low-cost airline based in Gurgaon, Haryana. The company is the second-largest airline in India by the number of passengers carried and it holds a market share of 13.6% as of March 2019.

    The company was established as an air taxi provider and was acquired by Ajay Singh and renamed SpiceJet in 2004 and took off its first flight in May 2005.

    Jet Airways

    Jet Airways is a Mumbai based Indian International airline founded by Naresh Goyal that started as an air taxi operator in 1993 and became a full-fledged airline in 1995 and started its International flights in 2005.

    It was one of the largest Indian airlines with a market share of 21.2% in February 2016. But due to competition and price war, the company underwent a downfall leaving it Bankrupt and forcing the company to cease its operations in April 2019. The company is due to come back at the end of 2021.

    Air India

    Air India is previously known as Tata Airlines and was founded by J. R. D. Tata in 1932. After 1945, the airline was made into a public limited company and was named Air India.

    Air India is headquartered in New Delhi and is owned by the Government-owned Enterprise, Air India Limited. It is the Largest International carrier out of India and holds a market share of 18.6%.

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    Condition of Indian Aviation Industry In the COVID Pandemic

    Indian Aviation Industry consists of both military aviation like Indian Air Force(IAF) and civil airlines like IndiGo. While Government controlled Airlines like Air India, Alliance Air and IAF have been a saviour by carrying medical cargo during these COVID times, the civil airlines have seen a tremendous loss that is estimated to be INR 210 billion in FY 2020-21.

    To compensate for the loss, the Centre allowed for a hike in fares of airlines by 30% which only worsened the situation. During April-October 2020, domestic flights had been declining over 70% while International flights have declined at 77%. IndiGo and SpiceJet reported having lost INR 31 crore per day during the first half of 2020.

    Conclusion

    The COVID pandemic has not only made us cancel our planned trips with friends and family but also has many industries on the brink of a complete shutdown and has made the economies of top countries crumble.

    The Indian Aviation Industry was one of the main industries that took a downfall due to the COVID situation around the globe with many countries still not lifting their ban on International travel. And this loss would tremendously affect the GDP of the country as the aviation industry contributes $72 billion to the GDP of India.

    It is predicted that the Indian Aviation Industry will bounce back to its pre-pandemic level by 2022 or 2023.

    FAQ

    What is the Indian Aviation Industry?

    Aviation Industry is the business sector in which all types of aircraft are manufactured and operated. According to International Air transportation Association(IATA), Indian Aviation Industry is the fastest-growing aviation industry in the world and is set to be the third-largest aviation market in the world by 2024.

    What is the revenue of the Indian Aviation Industry?

    The aviation industry in India has seen a loss for the FY2020-21 due to the COVID-19 pandemic. The estimated net loss by ICRA for the fiscal year 2020-2021 was INR 210 billion.

    How many branches does the Indian Aviation Industry hold?

    The Indian aviation industry is classified into two branches: Civil aviation and Military aviation. India’s aviation manufacturing hub is situated in Bangalore and holds a 65% share of this economic sector.

  • Bing Marketing Strategy: All about Bing Ads

    Bing is a search engine which is owned and operated by Microsoft. It provides a space for people to search pictures, videos, websites, locations and many more.

    About Bing
    Bing Ads
    Conclusion
    FAQs

    About Bing

    Bing is an internet based search engine which was unveiled as a one stop platform of Microsoft after it compiled all its search engines into one namely MSN search, Windows live search, and Live search.

    market share of search engines worldwide
    market share of search engines worldwide

    ‌It can be inferred from the graph above that Bing is the second most used search engine worldwide. However, the share of the same is substantially low. Microsoft is working gradually and rigorously to capture the most part of the market.

    Bing Search Engine
    Bing Search Engine

    ‌‌‌‌With the monopoly of Google in the market, it becomes tougher for any new brand to attract the consumer base. And doing this would definitely have been a task for Bing. Bing’s marketing journey is a story to know. Let us see how Bing grew to earn billions of dollars working in a highly competitive space.

    ‌‌‌‌‌‌A decision engine: Microsoft Bing when launched was titled as a decision engine because of its efficiency and relevant search results for the query typed. It provided search results for the original query. It enabled the consumers to rather bing than google in the initial phase. Hence it definitely brought the users for Bing.

    ‌‌No Captcha: Many times we come across Google verifying if we are a robot which can be an advantage for Bing if a user is a compulsive search engine user. Bing allows users to search as many times as he/she want.

    ‌‌Related searches bar: It was Microsoft Bing that came up with the idea of displaying related searches when a user enters any query. It made tasks a lot easier for a user to surf through a list of search results and click on the most relevant one.

    ‌‌Microsoft-Yahoo tie up: In July 2009, Microsoft Bing came into an agreement with Yahoo where it allowed Bing to power search on Yahoo portal which was for 10 years. With the two giants tieing up to fight the monopoly of Google, it resulted in the favour for Microsoft as well as Yahoo.

    ‌‌Microsoft-Facebook collaboration: In the year 2012, Microsoft thought of partnering with Facebook which was the most used social networking site after Google with around 400 million user base to show Bing search results over world wide web (www) portal. It helped Microsoft Bing to acquire a decent percent of the market during that time. Google still remained the top player in search engines.

    ‌‌Microsoft-Apple partnership: In the next year, Microsoft Bing partnered with Apple and Apple decided to make Bing their search engine in apple products by nudging google out. It announced siri would leverage bing and not google in the year 2013.

    ‌‌Integrated windows search engine: Microsoft after launching its windows store to download apps, it integrated Bing as its search engine which again is a marketing strategy.

    ‌‌Option to personalize: Microsoft understands that people prefer to make their digital space personalised to get rich experiences and relatability. Bing allows a user to change the display, privacy, and suggestion settings to make them as his/her preference.

    ‌‌Bing ads service: Like Google, Microsoft Bing also provides the ad services on its search engine for people to market their products and services over the internet.

    Bing Ads

    ‌‌Similar to Google ads, Bing ads give businesses a platform to run their ad campaigns to attract traffic and generate sales. Bing ads are one of the many tools of digital marketing. When we compare the market share of Bing search engine, we tend to ignore the importance of advertising there. But Bing gets over a billion unique users every month. So it is a mistake to ignore the power of Bing. With Microsoft Bing providing its independent ad services to businesses is another pros for Bing as it is relatively cheaper than google ads. It apparently has higher conversion rates, lower cost per click, cheaper conversions, lesser competition and many more than that of Google. The ad services again makes it attractive for people who are earning through digital marketing, affiliate marketing etc. And digital marketing as we all know is a growing sector.

    ‌‌‌‌‌‌Good user interface/experience: Microsoft Bing has a better user interface than Google with more colorful wallpapers, vibrant visuals, quality display, and easy accessibility to those features. It provides good user experiences as

    • It has integrated other Microsoft applications like PowerPoint, MS office, MS excel, MS edge etc. within the search engine.
    • It has better images displayed with horizontal layout so that users do not have to visit the host website unnecessarily like in Google when he/she just wants to preview the image.
    • it has advanced video search options as it will not direct you to YouTube to watch a video. Instead, it will let you watch it then and there.
    • It has an option of ‘My saves’ which provides users with a dedicated tab of their favorite searches and results.

    However, Bing lags in the areas where Google is way ahead of the league like quick loading, bug detecting,data loading etc. which directly hampers the user experience. Some digital marketers may get annoyed because it may lead them to lose their potential conversions.

    Conclusion

    ‌‌Microsoft Bing still has a task to do to compete with giants like Google. But because it is continuously working to make it more efficient in terms of user experience, advanced features, and ads services so that it can attract a good number of users in its basket, it has a bright future. It definitely has a decent share of the US market but it has a long way to travel to acquire decent global market share to become comparable with Google search engine. The innovative step of Microsoft Bing is being friends with the enemy’s enemy. It kept on partnering with the giants which were already in competition with Google which helped it to get the little exposure it currently has.

    FAQs

    What is Microsoft Bing used for?

    Microsoft Bing is a search engine used widely to search over network. It ranks second most widely user search engine.

    How effective is Bing advertising?

    Bing Ads reach more than 60 million searchers that aren’t reached with Google AdWords.

    What is Bing best used for?

    Bing has a significantly better video search.

  • Business Model of Walmart: Success Strategy of Multinational Retail Giant

    Walmart is a US-based multinational retail firm that owns and operates a network of superstores, grocers, and discount stores. It is the world’s largest company by revenue and has revenue of $559,200 and 2,300,000 employees all over the world. It is a family-owned and operated publicly traded company. The business is owned by the Walton family. In 2019, it was the biggest grocery store in the United States. ‌‌’Cost leadership’ is at the foundation of Walmart’s business model. When a corporation represents itself as the cheapest maker or provider of a certain goods or services in a competition, it is referred to as cost leadership. The approach is tough to implement since administration must continuously strive to reduce costs at all levels in order to stay in business.

    Walmart – Cost Leadership Strategy
    Walmart – Key Services
    Walmart – Success Strategy
    How Walmart makes money?
    Conclusion
    FAQs

    Walmart Business Model

    Walmart – Cost Leadership Strategy

    Walmart uses cost leadership strategy for its business. Let us know about cost leadership.

    What is Cost Leadership?

    A cost leadership strategy entails positioning a business’s products as the most affordable. This system has the ability to be quite successful. Nevertheless, it is extremely difficult to implement because it necessitates cutting expenses and transferring the benefits to consumers. One of the most prominent instances of an effective cost leadership strategy is Walmart.

    It’s a strategy for lowering expenses and producing the cheapest items in a marketplace or sector to obtain profit margins. Buyers are aware of the services accessible to them in today’s commercial world, which is quite complicated and complicated. Competitive pricing is one way for businesses to set themselves apart. Businesses with the lowest manufacturing costs can show the same level of quality of the product for a considerably lower price than their competitors.

    Walmart Cost Leadership Strategy

    Walmart is by far the most well-known cost leader, having employed a cost-leadership approach to becoming the world’s largest corporation. Walmart’s promotional taglines, such as “Always Low Prices” and “Save Money. Live Better,” signal to targeted users the company’s focus on cheaper products. Additionally, Walmart takes full advantage of its massive sales volumes to sell the products with razor-thin profitability. Walmart’s cost-cutting plan is bolstered by its value-chain strategy. One of the biggest distribution network achievements in business is Walmart’s inbound and outbound logistics.

    Walmart’s inbound logistics are guided by three core themes: use the lowest product line connections by operating directly with manufacturers; form strategic relations with suppliers for the longer run and focus on high bulk purchasing; while using cross docking to efficiently manage, which entails unpacking products from an inbound truck directly into the outbound truck without storing in between the process.

    Walmart Business Empire

    Walmart – Key Services

    Walmart is generally known as an all-in-one store. Walmart sells things in a wide range of categories. Walmart is known for selling groceries and clothing items. Electronics are available for purchase as well. Walmart sells music downloads, movies, books, and jewelry, among other things. The store sells infant products, and sports equipment in addition to daily furniture.

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    Walmart – Success Strategy

    Walmart has formed a powerful and dedicated client base by living up to its objective and continually striving to deliver everyday low costs to its shoppers over the course of its 50-plus-year period. Buyers know they can expect inexpensive costs when they come into a Walmart. Following are some strategies that are used by Walmart to stay at the top:

    Management of the Supply Chain‌‌
    Walmart’s supply chain management approach has been improved, and the company is working to reduce expenses and operating costs even more. Walmart was one of the first corporations to interact directly with suppliers, thereby handing resource management over to the sellers. Variations in inventory flow can be balanced out by using “vendor managed inventory” (VMI), eliminating overabundance and overstocks.

    Walmart was among the first companies to indulge in inventory management technologies using a software system. Data like in-store point-of-sale, storage inventories, and real-time transactions were channeled into cloud computing under this system. Suppliers were given more information so they could know when to deliver extra products. Walmart can lower costs even more by constantly inventing and synchronizing each level of its distribution network.

    Increasing Negotiation and Reduced Costs‌‌
    Walmart’s massive size and economic output allow it to influence vendor engagement, lowering prices. Walmart accounts for up to 70% of revenue for several general merchandise companies. Such companies would not have been able to function without Walmart as a sponsor. It offers Walmart complete control over its pricing and practice guide.‌‌

    Walmart can potentially cut expenses by operating its own truck network and improving its transit system. Cross-docking is a warehousing method that Walmart has used. This system transfers goods from an incoming truck to an outgoing truck in real time. This allows things to be relocated swiftly without any need for costly warehousing. Walmart could transfer on profits to customers in the form of cheaper prices as a result of reduced product expenses and a more effective inventory control operation.

    Modern Business Strategy
    Walmart has maintained the same business model of “everyday cheap pricing” for about 50 years . Walmart is the largest retailer by volume and has locations all throughout the country. Walmart can appeal to a diverse range of consumers thanks to its four major types of outlets: bargain stores, superstores, Sam’s Clubs, and neighborhood markets.

    It has approximately 11,500 retail locations, and 90 percent of Americans are expected to reside around 15 min of a Walmart. Walmart’s client base is enormous; over 260 million people visit its retail shops and e-commerce platforms each week. With such a large consumer base, Walmart was able to generate $559 billion in sales in 2020.

    How Walmart makes money?

    Walmart makes money through supplying products and services straight to customers and businesses. Walmart makes money from the products it sells, like groceries, health and wellness products, electronics, clothing items and many other products. It also generates revenue from the services provided like VUDU streaming services, financial services, clinical services and health insurance services.

    Conclusion

    Walmart is a business giant and has always taken the right steps towards the company’s growth. With millions of employees and thousands of stores all over the globe, Walmart is becoming more and more accessible to customers. With the right strategies and buying the stock in bulk, it ensures cheap prices for the buyers and maintains its mantra of ‘Everyday Low Prices’.

    FAQs

    How does Walmart makes money?

    Walmart sells various products and services to the buyers at cheaper prices, thus creating a loyal customer base.

    Does Walmart own Dollar Tree?

    No, Walmart does not own Dollar Tree.

    Is Walmart available in India?

    Yes, there are 29 Best Price Wholesale stores in India which are owned and operated by Walmart.

    How many Walmart’s stores are there in the world?

    There are around 10,500 Walmart stores that operates under 48 banners in 24 countries and eCommerce websites.

    ‌‌

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    ‌‌

  • Business Model of Zara: The Fast Fashion Retail Leader

    Zara is a Spanish fashion retailer with headquarters in Arteixo, Galicia. Apparel, jewelry, footwear, swimsuits, grooming, and fragrances are among the company’s products, which include fast fashion. It is the biggest business in the Inditex group, which is the largest garment retailer on the planet. Zara is one of the most popular retail clothing brands in the world, if not the most popular. It strives to foster a sustainable enthusiasm for fashion across a broad range of customers, distributed across many regions and different ages, with its stunning debut of the notion of “quick fashion” shopping since its founding in 1975 in Spain.

    Zara – History
    Zara – Products
    Zara – Business Model
    Conclusion
    FAQs

    About Zara Business Model

    Zara – History

    Amancio Ortega | Zara Founder
    Amancio Ortega | Zara Founder

    Amancio Ortega and Rosalia Mera launched Zara, the world’s most famous fashion retail firm, in 1975 in Spain with a capital of 30 Euros. They intended to call their store Zorba after the movie Zorba, but there was also a pub with that name on the same street. As a result, they chose Zara because having two Zobra within the same neighborhood would only create confusion. Zara used to sell low-cost knockoffs of famous, high-end apparel and style in the beginning.

    Rosalia Mera | Zara Founder
    Rosalia Mera | Zara Founder

    Zara’s strategy for fashion and operating model gained popularity with Spanish customers during the next eight years. As a result, nine additional outlets have opened in Spain’s major cities.

    Inditex was founded in 1985 as a trading corporation, laying the groundwork for a supply system responding fast to changing market trends. Ortega coined the term “instant fashion” to describe a revolutionary design, manufacturing, and distribution approach that could shorten lead times and respond to new styles more quickly. This was fueled by significant expenditures on computer technology and the use of organizations rather than solo artists for the essential “design” component.

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    Zara – Products

    • Men’s Clothing
    • Women’s Clothing
    • Children’s Clothing (Zara Kids)
    • Accessories

    Zara – Business Model

    Zara Logo
    Zara Logo

    Zara’s business strategy is precisely designed, effectively incorporating all of the aspects that leads to the improvement of this global undertaking. There really is no single commercial operation that is directly liable for this company’s success. Joint venture, growth strategy, efficient supply chain management, and other unconventional actions and ideas all contribute to the growth of this kind.

    The firm is known for its expertise in promptly providing fresh merchandise to stores. Zara uses a tight program in order to accomplish this. Supervisors buy goods twice per week at specified times, and fresh clothes come twice a week on schedule. Zara’s success is built on this ethic.

    Fast Fashion is one of Zara’s main concepts. The concept of a fast manner is comparable to that of FMCG (Fast-moving Consumer Goods). Fast fashion is typically employed to appeal to a younger and middle-aged demographic. This type of clothing does not go out of trend; rather, it runs out of stock. The quick fashion cycle is basic to comprehend. A young individual purchases a simple set of clothes that can be used 6-8 times before the material begins to fray. It causes the person to buy new clothes, which leads them back to that place, and the cycle repeats. The foregoing are some of the primary strategies of Zara:-

    1. Vertical Integration is the key
    Vertical integration is a value or supply chain control method in which a corporation owns or manages its manufacturers, resellers, or store outlets. Industry profits from vertical integration because it allows them to regulate operations, cut costs, and enhance efficiencies. Vertical integration, on the other hand, has drawbacks, such as the considerable financial expenditure necessary.

    Zara’s vertically integrated supply chain allows it to maintain direct oversight while also providing speed and flexibility to their clients. Zara employs cutting-edge techniques to ensure that they can quickly bring new concepts to market that are exactly what clients want, whenever they want it.

    2. Centralization
    Zara has a profound, consistent, and swift pace that revolves around quick shop delivery. Every Zara store places two orders per week on particular days. Carriers depart at precise times, and supplies reach at particular times in shops. When clothes arrive at their destination, they are already labelled and priced, making them ready to sell right away.

    Because of this well-established pattern, every employee in the production process – from design through sourcing, manufacturing, transportation, and retail – is aware of the timing and how their actions affect other departments. This applies perfectly to Zara buyers, who exactly know when to go shopping for brand new clothes.

    Zara’s dependence on centralized order fulfilment allows businesses to run extremely efficient operations, from early strategy to execution to shops. Further illustration as to why continuous improvement and supply chain management are crucial to revenue and scalability is the business’s strategy.

    3. Inventory management
    Zara can supply more frequently and in limited volumes during the season because of the fast turnover from manufacturing plants adjacent to its marketing headquarters in Spain. If Zara’s swiftly created style in an effort to follow the current fashion fails to sell successfully, there is little harm done. Because the amount is low, there aren’t a lot of unsold copies to get rid of. And, since this failed experiment was short-lived, there may still be time to attempt another style, and then another.

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    Conclusion

    Zara prides itself on remaining on top of the latest trends and radiating an upscale vibe, but its production process is the real show-stealer. These industry-leading procedures elevate it from a mere clothing store to a market leader in fast fashion executed well. Zara excels at guaranteeing that everything goes as planned, as it has more control over its production and business network than most of its competitors. Zara’s main strategy is to diversify through various vertical integrations in order to develop.

    FAQs

    Where does Zara get their clothes made?

    Zara manufactures its most fashionable items in Spain, Portugal and Turkey.

    Where is the biggest Zara store in the world?

    The biggest Zara store is in Madrid, Spain.

    What is Zara most famous for?

    It is most famous for its Fast Fashion.

    Who are the founders of Zara?

    Amancio Ortega and Rosalia Mera are the founders of Zara.

  • Innovative Marketing Strategies of Rolex

    When it comes to the luxurious watch brand, Rolex is the first to cross our minds. The very prominent watchmaker brand, established in Switzerland and founded by Hans Wilsdorf in 1905.

    Rolex got its shine when the company came up with the first-ever waterproof watch, in the year 1926. Rolex has always been very innovative and prosperous with its designs and features. The brand has always been up for competition and is quite front in the matches of luxurious watches.

    With its luxury and styling, Rolex may seem like an extremely expensive watch brand, right? Well, suiting its fame and image, you’ll probably guess right on it. The most expensive watch that Rolex ever sold in the history of its establishment was Paul Newman’s Rolex Daytona with a cost price of $17.8 million. Pretty expensive, right?

    Rolex functions on the funds raised by the Hans Wilsdorf Foundation trust. The profits and revenue generated by the brand go to the company and its people. Rolex does not disclose any of its profit results and neither pays the corporate tax.

    Nonetheless, the company has a very strong market position and with this, we will be discussing the marketing strategies of Rolex in this article. Let’s get started!

    Product Marketing Strategy of Rolex
    Pricing Strategy of Rolex
    Campaigning Strategy of Rolex
    Promotional Marketing Strategies of Rolex
    FAQ

    Product Marketing Strategy of Rolex

    Rolex categorizes its products collections into distinct parts – Oyster collection and Cellini collection. All these categories offer different styles and elegance. With oysters, you will find a watch of prestige with around 20 different models. These products are created with the best raw materials and gathered with great scrupulous compassion on their details.

    Rolex puts great effort and attention towards the quality of its products and manufacturing. The brand is widely known for its premium quality watches.

    Rolex watches are designed in a way to add shining touchup to your look. The brand is extraordinary with its innovative design and waterproof feature. Its wrist watch comes with features where date and time change automatically. Rolex manufacturers are extremely accurate and innovative and that’s what keeps it in a strong position in the market.

    Pricing Strategy of Rolex

    With its luxurious and expensive image, its prices are also alike. Rolex offers its products in a wide pricing range, starting from 5,000 dollars to beyond millions. The pricing of Rolex watches is entirely based on the materials and model they used in the product.

    Rolex’s watches are very crafty as well as elegant, made by professional skilled workers. Its watch collection is exclusive and made for people of high society.

    Although Rolex does not offer any kind of discount or sales to its customers, its marketing strategy is based on the manufacturing of the product. Rolex sells its products based on its mechanism of perfection and usage of distinct stones and metals.

    Rolex rose Gold Watch

    Campaigning Strategy of Rolex

    Rolex has always been pretty enthusiastic with its campaign for the products. The company manages social media pages on Facebook, Instagram, YouTube, and others to reach out to a large audience with potential.

    In fact, the company has designed its logo in such a manner that it conveys the message of Rolex royalty as well as exotic nature which are clearly seen in its watches.

    The brand functions with the tagline ‘A Crown for Every Achievement‘ which attracts great customers to the company. It sells with the vision of selling watches for people on their every achievement which needs to be cherished. Its watches are specially designed for successful people who know the value of its products.

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    Promotional Marketing Strategies of Rolex

    In order to enhance sales, promotion is more of a necessity. It conveys what features and uniqueness a product carries to its customers. Promotion strategies are very necessary to reach the customers and make them familiar with the company’s products. Rolex works on its promotion strategy by defining the class it belongs to. It is promoted as a lifestyle necessity rather than as a brand.

    Rolex’s promotional marketing strategies are:

    Print Advertisements in newspapers and magazines

    Rolex Print Advertisement
    Rolex Print Advertisement

    Television Advertisements

    Entrenched advertisements in various movies

    Rolex Promotion in James Bond movie
    Rolex Promotion in James Bond movie

    Through sponsoring game events

    Rolex Sponsorship in F1
    Rolex Sponsorship in F1

    Its promotion strategies are framed to reach out to the target audience efficiently. Rolex manages its company and customers and works according to their elegance and styling.

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    Conclusion

    Rolex is remarkable when it comes to the quality and styling of its products. It charms up the personality of people. Its watches work as a style statement for an individual.

    With its tremendous as well as luxurious marketing strategies, the company owns a huge loyal customer base, and almost every person with a style sense desires to wear a Rolex’s watch.

    The brand is pretty luxurious and expensive that’s why it is meant to please only a specific category of people who can actually afford a watch from the Rolex brand and be cool with it.

    The marketing strategies of Rolex are designed to reach the target audience and fulfill the market requirements. Its marketing strategies also include a brand endorsement from celebrities and sponsoring any game event. All these add up to the success of the extremely prominent watch brand, Rolex.

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    FAQ

    Who is the founder of Rolex?

    Hans Wilsdorf and Alfred Davis founded Rolex in 1905.

    Who is Rolex owned by?

    Rolex is owned by The Hans Wilsdorf Foundation, a private family trust.

    What is the revenue of Rolex?

    The revenue of Rolex was 520 crores USD as of 2019.

  • Business Model of IRCTC | How does IRCTC Make money

    Of course, being an Indian, you would definitely travel a lot by train even if the distance is literally from one city to another. But what if you have to itinerant from one state to another for instance- You can’t run for each train in each station from Chennai to Mumbai right? That’s Why the Indian Government established IRCTC – an effortless e-ticketing booking website & mobile app, scheduled train system, hospitality and catering services to travellers.

    Besides, IRCTC promulgates One-Stop Solutions such as Tour Packages, Packaged drinking water Lounges & restaurants according to the tourist’s budget and global reservation.

    IRCTC launched on 27th September 1999 and over 20 years the organisation has become an ultimate revenue source in the development of GDP in India. Currently, the corporation is worth 460 million USD and earning around 900 USD per day by generating services.

    Where does IRCTC operate?
    Main Products and Services of IRCTC
    Target Audience of IRCTC
    Business Model of IRCTC
    What is unique about the IRCTC business model
    FAQ

    Where does IRCTC operate?

    IRCTC operates around and across India, 14 Rail Neer plants at Nangloi, Danapur, Palur, Ambernath, Amethi, Parassala, Bilaspur, Hapur, Sanand, Mandideep, Jagiroad, Nagpur, Sankrail and Maneri;

    These centres have been established for low-cost packaged drinking water to tourists. Moreover; 11 Base Kitchen has catering services which are located in New Delhi, Patna, Mumbai, Central Mumbai, Ballarshah, Nagpur, Howrah, Balasore, Chennai, Kolkata, Kharagpur, Sealdah and Secunderabad.

    With the expectation of services, IRCTC bestows 5 zones offices at New Delhi, Mumbai, Chennai, Secunderabad and Kolkata.

    Ten regional offices at Lucknow, Chandigarh, Bhopal, Patna, Ernakulam, Bangalore, Bhubaneswar, Ahmadabad, Guwahati and Jaipur.

    Besides; IRCTC owns One e-ticketing and tourism office in New Delhi.

    Other than that, IRCTC offers foreign destinations to the USA,  Russia, Australia, Europe, Hong Kong, Nepal, Macau, China, Dubai, Thailand, Singapore, Malaysia and Sri lanka etc.

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    Main Products and Services of IRCTC

    IRCTC is an Indian Railway Catering and Tourism Corporation Ltd. with a main purpose to facilitate the development of rail tourists across the country. Apart from railway, IRCTC provides domestic and international tourism that subsumes flight or bus tickets, accommodations, tour packages inside and out- sightseeing and other travel needs.

    Furthermore, IRCTC eases foreign tour packages to Dubai, Thailand, Hong Kong, China, Nepal, USA, Singapore etc.

    Does it sound so fun, when you are travelling on IRCTC along with your friends, Damn, what else is needed? When IRCTC is ready to provide all facilities you are looking for from the beginning to end of your journey at an affordable price which depends on the booking class- AC first class, AC 2-Tier, AC 3-Tier, First class, AC Chair Car, Sleeper and second sitting. For instance, if you are in an AC F-class then the fare costs an arm and a leg.

    IRCTC provides Air Packages, Rail Based Tourism, Tourism accommodation, Air e-ticketing, Bus ticketing and sells packaged drinking water.

    Target Audience of IRCTC

    IRCTC focuses on the citizens who travel from one place to another. Additionally, as of 2019 more than 20 million users have been registered on the IRCTC portal.

    Business Model of IRCTC

    The IRCTC offers five major services to the Indian public. The services offered are E-Ticketing, Packaged Drinking water, Catering, Tourism and State Teertha.

    As of 2021, the IRCTC makes most of its profit from e-ticketing and catering services as it provides 63% and 22% of the total revenue respectively.

    Travel and tourism contribute to 7% of the revenue with packaged water about 8%.

    The Tatkal scheme by IRCTC is a scheme that is widely used by people in which people can book the tickets for travel one day prior to their travel on the Indian Railways Internet Portal.

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    What is unique about the business model of IRCTC

    What makes IRCTC stand out apart from the fact that it is a monopoly in India are the services offered by the company:

    E-Ticketing

    The Internet ticket sale by IRCTC was launched in 2002 and it is the only authorised application to sell railway tickets by the Indian Railways. The website is managed by TCS. IRCTC books nearly 8 lakh tickets daily through this feature.

    Catering

    IRCTC is the largest catering company operating in India. In 2020, catering accounted for 38% of the revenue. The catering services given by IRCTC are Static Catering, Mobile Catering Business, E-Catering and other services like executive lounges, budget hotels at major railway stations, etc.

    Tourism

    IRCTC offers budget and deluxe packaged tours for foreign and domestic tourists. The company also offers adventure tourism packages that include activities like water sports, wildlife treks, etc. It also offers services like Air tickets and corporate travel, Mass tourism, etc.

    Packaged Drinking Water

    IRCTC has a packaged drinking water service known as Rail Neer that offers pure and safe packaged water to customers. On average, it sells about 34 million water bottles per month.

    State Teertha

    State Teertha is a scheme sponsored by the state governments for pilgrimage trains and due to the COVID pandemic, this scheme did not see much success.  

    Conclusion

    Gone are the days when long queues were the only way to book a railway ticket. With the IRCTC offering online ticket booking people from anywhere in India with a smartphone can book their tickets hassle-free.

    Despite the COVID pandemic and the profit drop of 26.6 percent suffered by the IRCTC, the company has bounced back. The expected growth in online ticketing with a CAGR of 17% in the upcoming years; the growing catering industry is also expected to have a growth rate of CAGR of 18% making the IRCTC a successful venture.

    FAQ

    What is IRCTC?

    Indian Railway Catering and Tourism Corporation(IRCTC) is a subsidiary completely owned by the Indian Railways. It provides services like ticketing, catering and tourism.

    Is IRCTC a private company?

    No, IRCTC is majority-owned by the government of India.

    What is the revenue of IRCTC?

    IRCTC’s total revenue for FY20 was INR 2353.53 crore with a net profit of INR 528.57 crore. As of 2020, the company’s net assets are valued at US $460 million with total equity being US $ 190 million.

  • Top 7 Interesting Facts about Cred you should know about

    The timeline of the credit users has been burgeoned in recent times with this ongoing evolving digital India, as people rely more on credit cards that play a beneficiary role towards them. Credit cards bestow much assistance to encounter the financial facilities or requirements of the holder such as rent, taxes or any other credit purchases.

    India has flourished in the field of credit facility that developed an India-based company CRED which authorizes users to pay off their expenses via an app. CRED is member-only credit management that allows the members who are eligible for credit accessing up to 750. CRED has been expanding its financial services in the past two years and becoming credible credit management in India.

    Therefore, CRED is an Indian FinTech startup that is fabricated to progress credit facilities by building a digital club of credit scores for its only-users.

    About CRED

    CRED was founded by Kunal Shah in 2018, a Bangalore-based financial market, which is designed to provide digital financial services to the people. Furthermore, the company has realised the need for digital demand, especially when the entire world is struggling during this ongoing pandemic.

    Consequently, Kunal Shah built a credit service to people through an app, which processes their remittance. The company has become a renowned financial service that partnered with over 38 brands and sponsored PL for three consecutive years.

    Let’s look at Top 7 unknown facts about CRED.

    CRED was Created by the former founder of FreeCharge
    CRED has Two prominent objectives
    CRED is a member-only Community
    CRED is one of its kind app in India
    CRED Struck a Three-year deal with IPL
    CRED offered Five Products
    CRED bolstered the people in the ongoing pandemic
    FAQ

    CRED was Created by the former founder of FreeCharge

    Kunal Shah is a serial entrepreneur who has formed CRED and is also the former founder of FreeCharge which was later sold to Snapdeal. The story of CRED commenced, when Kunal sold off his first venture in 2015, and began to spend that money like a dilettante and underscoring utilised some on the study of developing his new idea, and that is ‘Cred’.

    Prominently, people don’t situate their trust in financial institutions, so Kunal Shah created a frictional environment that engenders financial progress for the people which is considered to be reliable and trustworthy. In 2018, he inaugurated CRED along with key investors DST Global, Sequoia Capital, Ribbit Capital and Tiger Global.

    At the time of launching the CRED App over 1000 downloads were done with 4.6 ratings on the Google Play Store and App Store.

    CRED has Two prominent objectives

    CRED was formed with two primary objectives- to enhance life for creditworthy individuals and to actuate credit services to people to dilate the financial behaviour in the country.

    As of now,  CRED has boarded nearly 5.9 million users and functions around 20 per cent of credit payments in India. CRED is a community, where its member-only can avail themselves of the rewards for paying off their credit bills in full settlement.

    The company holds charges if the holder pays extra rupees on the full-settled credit payments. Up until now, CRED has raised funds overall around 227 million.

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    CRED is a member-only Community

    Every financial institution provides credit service, only if the holder goes with the eligibility criteria. The credit score should be more than 750, so you can be a member of the CRED community and redeem the rewards.

    CRED is one of its kind app in India

    This is the only app in India, which allows you to redeem for paying off your credit card bills. CRED has given various options to redeem your rewards- making a 1000 rupees transaction, you can ‘burn CRED coins’ to win Rupees worth 5 to 10 rupees that add to your credit card.

    On the other hand, ‘Kill the Bill’ you can just swipe the card to access offers from Swiggy, Yatra, BookMyShow, Freshmenu, Uber Eats and other fashion portals.

    CRED Struck a Three-year deal with IPL

    Every person watching an IPL match would understand the angst of having to go through the entire match watching multiple ads or having to watch the same ad multiple times. But the IPL seasons of 2020 and 2021 had some ads that caught the attention of the public.

    Yes, I am talking about the Indira Nagar Ka Gunda ad and the Madhuri Dixit and 90s stars ads from CRED.

    CRED Sponsor during a Ipl match
    CRED Sponsor during an Ipl match

    CRED has struck a three-year deal from 2020 – 2022 as a sponsor for the IPL. And the IPL Campaign has increased the daily sign-ups for CRED Membership by 6-7x in 2020. Payment of credit card bills during the powerplay offers a chance to win 100% cashback and was also well received.

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    CRED offered Five Products

    CRED offers five distinct products to its members. The services include:

    CRED RentPay

    A feature that allows tenants to pay the monthly rent to the landlord’s bank account directly using a credit card.

    CRED Cash

    A system that gives credit for interest that is one-third of the credit and it is fast and fully digitalised;

    CRED Pay

    A safe payment option and can be used as a single-click alternative in selected merchant platforms and offers discounts on brands like Bombay Shaving Co., Dine out etc.

    CRED Store

    The CRED app houses 1500+ brands in their in-app e-commerce and travel destinations domestic and international from which its members can purchase at a member-exclusive price.

    CRED Travel Store

    The travel store gives the members an option to buy now and travel later to exclusive places and CRED’s association with Mastercard provides premium packages at top hotels like The Taj.

    CRED bolstered the people in the ongoing pandemic

    During the second wave of the ongoing Corona pandemic, the need for oxygen supply was a major concern in India. CRED came out to help with the situation by partnering with NGOs like Milaap, Hemkunt Foundation and Give India.

    It gave its members an option to donate their CRED coins towards oxygen concentrators for COVID patients. In a later post, CRED revealed that more than 7.5 lakh members contributed their CRED coins and the donation to the cause was Rs. 10 Crore.

    Conclusion:

    CRED’s growth and popularity can be attributed to two facts. Firstly, the startup founder Kunal Shah who has seen success in his other startups and investors trust his ability in making a success of any venture he starts.

    Secondly, the astonishing fact that CRED’s revenue in FY20 was not more than INR 50 lakh but the estimated revenue projection for FY21 is INR 108 Crores which is 208 times the growth. Thus making another fact clear that CRED is another successful startup of Kunal Shah.

    FAQs

    What is CRED?

    CRED is a members-only credit card bill payment app founded by Kunal Shah in 2018 and is headquartered in Bangalore, Karnataka.

    How does CRED work?

    CRED allows its members to make payments using the app. The app’s focus is to make use of credit card payments easier, automated, and making payments early. Payments made using the CRED app allow the members to earn CRED coins.

    What is the eligibility to join the CRED community?

    CRED accepts only those credit card holders who maintain a credit score above 750. The credit score is checked using the number connected to the bank account and those who do not pass the criteria are shortlisted.