Myntra Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of Myntra through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
Myntra Product Strategy:
Myntra is an online retailer of branded apparel and products which sells online through its website and apps. What started off as a platform for personalisation of gift items, today has grown into an e-commerce fashion stop with more than 2000 international and domestic brands on its product catalogue. Myntra as a product offering in its marketing mix offers a platform for buyers and sellers. Myntra also provides various add-on online shopping services like free home delivery, easy exchange and returns and cash on delivery. Myntra has recently launched a new service wherein the user can try clothes before buying them. Apart from providing e-tailing services and selling products for other brands online, Myntra also has a varied line of in-house branded products. With brands like Roadster in jeans and casual wear, Anouk in women ethnic wear and Dressberry in women western wear segment, the company is making fashion accessible to youth at affordable prices and fulfilling its key service proposition of “Convenient shopping experience at an affordable price”. Myntra also collaborates with celebrities to come up with fashion labels inspired by them, for e.g. Deepika Padukone’s All About You in women ethnic and western wear and Hritik Roshan’s HRX in sportswear.
Image: company website
This concludes the product strategy in Myntra marketing mix & strategy.
Myntra Price/Pricing Strategy:
Below is the pricing strategy in Myntra marketing mix strategy:
Myntra is present in an extremely competitive environment and hence has focuses on competitive pricing. Although Myntra sells branded products, it follows a heavily discounted pricing model.
The discounting is done to attract more customers and create a loyal userbase. Myntra also organises shopping festivals named End of Reason Sales in which goods are sold at 60-80% discounted price. This discounted model has been augmented by tech-led pricing in recent years using Myntra’s in-house software and algorithms. This pricing model dynamically prices the products based on various data from the usage pattern and search history of customer and hence, is known as dynamic pricing model. The pricing of in-house labels is done competitively, still it costs the consumer around 20-25% cheaper. Moreover Myntra Original brands give a margin of 60% to the company, as compared to 35-40% offered by third party brands
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Myntra Place & Distribution Strategy:
Following is the distribution strategy in the Myntra marketing mix:
Myntra is an online marketplace, so the customers make buying decisions after interaction with the app or website. Every detail of each product is mentioned in a structured catalogue which is easily accessible to the user. Once the customer decides and pays online, an order is placed. The order processing starts and the nearest warehouse to the customer is located, after which the product is packed and dispatched to the customer via Myntra logistics. Customers can even opt to pay cash on delivery. Myntra has recently started using geo-tagging technology so that it can locate and access the inventories of 10 of its partner brands from their warehouses.
Myntra is planning to reduce both shipping cost and time by using this technology and dispatch products to customers from the nearest possible location.
Myntra Promotion & Advertising Strategy:
The promotional and advertising strategy in the Myntra marketing mix is as follows:
Myntra uses both traditional and digital medial to promote itself in its promotional activities in its marketing mix. From full page End of Reason Sale ads in newspapers to celebrities doing their Diwali shopping on Myntra in the TV commercials, it has leveraged the traditional channels in a creative and effective way. On digital front, the company is leaving no stone unturned and uses latest technologies like AdSense to give customised marketing to the consumer. Social media platforms like Facebook, Instagram, Pinterest and Twitter play a very vital role in Myntra’s promotion strategies. The importance of social media in Myntra’s marketing strategy is reflected by the fact that it joined Facebook in back in 2007 when it was founded and has more than millions of followers now. Apart from this, the company also keeps launching various promotional offers regularly on its website. Customers are sent promotional emails and notified through customised in-app notifications about the exclusive offers they can avail on Myntra.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Myntra.
People:
Myntra, being an ecommerce services company, has a strong people policy. Online shopping portal is a relatively low contact service but that does not diminish the importance of Myntra’s workforce at all. The employees are a big part of delivering its promise of excellent and on-time service to its customers. Myntra is a young company which is in growing phase, therefore talent retention and acquisition is a major challenge for it. Myntra clearly states its employment policies on website and looks for high achieving individuals with passion, energy and drive to learn and excel. It follows fun at work philosophy and tries to make the work environment exciting for employees. Myntra has also won Trendsetting Workplace Award for its high-end mall like workplace having live video ramps, gaming zones, comic con and much more. It also gives highly competitive pay package to its employees in order to decrease attrition rate and retain talent.
Physical Evidence:
Myntra’s service excellence is extremely well known and trusted across the nation. It is most famous among young females. Its happy and loyal customer base is the biggest physical evidence of its service. As of December 2016, Myntra had a monthly userbase of 13 million. Even the service design is such that customers can easily put their faith in the company. Free shipping, cash on delivery and 30-days return policy with no questions asked help foster good relations with the customer and prove that the services of Myntra are 100% trustworthy. The success of this strategy is reflected in the fact that the return rate of fashion products on Myntra is approximately 20%. This shows that the return procedures are so easy and trustworthy that even after returning, almost all the customers come back to shop on Myntra.
Process:
The process of Myntra is at the core of its success so far. From shopping, to payment, to delivery, everything is a well-defined and structured process which makes it easier to identify the fail points and be ready for remedial action if required. Once the order is placed, advanced technologies like geo-tagging are used to locate the nearest warehouse to the customer and then order is shipped through in-house Myntra logistics. Meanwhile, all of this process is made transparent and visible to the customer as he can access the tracking information of his shipment on his phone and know exactly when and where his package is. Operations is the heart of any e-commerce business and Myntra is a pioneer in merging technology into it to achieve new levels of excellence. Hence, this concludes the marketing mix of Myntra.
About Myntra:
Myntra is country's largest online fashion retailer. Myntra merged with its largest competitor Jabong in 2016 and the combined entity now holds 45% of market share in this segment of the e-commerce industry. It was founded in February 2007 by a group of IIT and IIM graduates and has headquarters in Bangalore. It was acquired by India’s largest e-tailer Flipkart in 2014. Myntra offers a wide variety of branded fashion products online with amazing discounts.
It has also launched many in-house Myntra Original brands which bring huge margins to company’s income statement. It is slated to be India’s first e-commerce startup to go profitable in the year 2017-18.
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