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Nowadays, the Internet is being widely used in daily life. The existence of the Internet brought
many advantages to individuals daily lives. With the help of the medium, people can
communicate, learn, entertain, buy products and get services. Of course the disadvantages of it
have long been discussed as the virus threat, the risk of personal information theft, spamming
etc. Since the beginning of the Internet, individuals have shown interest to the Internet.
According to Internet World Stats' statistics (2012) today more than two billion people linked to
the Internet. This number shows that 30 percent of the world population uses the Internet.
Pakistan, although a late entrant to the world of e-commerce, has recently recorded a massive
rise in online shopping trends and other e-commerce businesses. Over past few years more than
$30 million was spent on online purchases, and the size of e-commerce market is expected to
reach over $600 million by 2017, according to several analysts and media reports.
Quick Facts about Pakistan
o Population: 196,174,380.00
Pakistani Facebook users have crossed the landmark of over 25 million Facebook users at the
end of the year 2016. The popular social networking website has seen a rapid growth in the last
few years.
According to the Facebook audience insights tool, Pakistani Facebook users include 15 million
men and around 8.5 million of its members are women. Two third majority of the Pakistani users
of Facebook are under the age of 25 which indicates how much popular it is among the youth.
Let us dig into more key statistics of Pakistani users.
The Internet Penetration & Key Pakistani Facebook Statistics:
With over 124 million mobile subscribers in the country, 33% of Mobile users of Pakistan
access Facebook via smart phones.
70% of Pakistan population is under 24-30 while on Facebook 2/3rd majority of Pakistani
audience are below 24 years of age.
71 % are male and only 29 % are female users in Pakistan which are mostly from the
urban parts of the country.
Nearly half of the Pakistani Facebook users log on between 6 PM till Midnight.
http://www.internetlivestats.com/internet-users/pakistan/
https://www.techjuice.pk/pakistan
To sum up e-commerce can be defined as the buying, selling and exchanging of goods and
services through an electronic medium (the Internet) by businesses, consumers and other parties
without any physical contact and exchange. The rise of these new information and
communication technologies and of Internet users, has introduced a new marketing reality, this
new presence changes the relations between the players. Furthermore businesses have realized
and seen the importance of the Internet and it has become that e-commerce in the business
context, for most companies, can be seen as a complete. In today world businesses uses
electronic commerce channels to communicate with customers and to increase competitive
advantage.
Market Research:
Marketing research is the most important part of business. With the result of marketing research,
we start our business. It tells us the actual situation of the market from which we can search out
the target areas as well as the customer needs.
Before starting online business, we conduct research from the city Gujranwala about our online
business. We used survey method in which structured questionnaire was used to collect the data
from the customers and asked different people to suggest. In this survey we asked many
questions so that we can be able to analyze and understand the need pattern of population. The
results obtain from the survey is that people encourage our idea of business and response of
people of Gujranwala was very positive, which motivate us to put our idea into action.
Research methodology:
This part illustrates the way of the research has been conducted by presenting the methodologies
and theories used. The technical details of the research are described and detailed. Important
issues Such as, philosophy of the research, preparation of the research, the method and procedure
of data Collection, components of questionnaire, sampling decision is covered. The first process
is topic selection. The knowledge, observations and interest on a topic help to Finalized the topic.
After that, theories and literatures have been searched to support the research. Next, the problem
and the research question have been developed and research method has been selected. The next
step is to collect data with using the methods planned. After the data is collected, we analyzed
the data with selected theories. At last, the conclusion is draw. This research started with
exploratory study however developed into an explanatory study since the first aim was gaining
knowledge about consumer behavior and following with being able to gain Information toward
online consumer behavior.
Data collection:
Data Collection in order to accomplish the research objectives and to address the research
question this dissertation draws on both Qualitative and quantitative data collection methods
Qualitative method:
We conducted four focus groups to get the deep insights of consumers; a focus group is a form
of a qualitative method in which we asked a group of people are asked about their perceptions,
opinions, beliefs, and attitudes of online behavior. Questions were asked in an interactive group
setting where participants are free to talk with other group members. During this process, we
take notes and record the vital points we getting from the group.
Quantitative Research:
Survey:
In order to collect data from viewpoint of consumers, the strategy of the research is the survey.
To investigate consumer behaviors and purchasing decisions, a quantitative approach is used to
analyze the results from the survey. Survey in the form of questionnaire is chosen for this
research. Surveys are a kind of research which is more rigid than interviews. They are usually
used to gather ideas from a large population. Each respondent is asked to respond to the same set
of questions, it provides an efficient way of collecting responses from a large sample prior to
quantitative analysis Structured questionnaire was used to collect the data from the customers.
Sample Size
We full fill the questionnaire from 180 respondents. All respondents belong to Gujranwala city.
Demographics majority are males & females, professionals and other people are including.
Quantitative research measures the data using descriptive statistics. The coding process is to
transform the raw data from the results of questionnaires into numerical data. It is then followed
by a calculation for each question by using an SPSS program. The data are presented in the form
of tables and following a detailed explanation of the figures is offered.
In this part analysis of the data collection and the findings of the study are discussed. The
descriptive information and statistical analyses produced by the collected survey data are shown.
Records are statistically analyzed with SPSS program.
Explanation:
In first question we ask people about have they do online shopping all of respondents of the
research said that they do online shopping, through this we are able to find that people now a
days prefer online shopping over traditional shopping.
Most of the participants of this research are use internet for Shopping purpose, 38.3%
respondents use internet for shopping purpose, and it is a good sign that people are interested in
online shopping.
3. How frequent do you shop online?
a) Twice a week or above
b) Weekly
c) Monthly
d) Occasionally
Most of the participants of this research do online shopping on monthly and weekly basis, 43%
respondents do online shopping on monthly basis and 37.8% respondents do online shopping on
weekly basis.
4. How much do you usually spend on online shopping per month?
a) 1000-3000
b) 3000-5000
c) 5000-7000
d) 7000 or above
Most of the participants of this research indicate that they purchase cloth. This is the good
indicator for our business that people tends to buy cloth. 60% of the respondents indicate that
they purchase cloths online.
Most of the participants of this research indicate that they reach shopping websites with the
recommendations of friends and with advertisement in the press and media. 50% respondents say
that they reach to shopping websites with the recommendation of friends.
7. Please specify how the following features of the website influence your attitude?
a) Functional design
b) Visual and auditory content
c) Clear and effective communication
d) Communication with other user
Explanation:
Visual and auditory content of the website is the most important factor that influences the
attitude of people; by using the result of this research we can make our website according to the
requirement of people.
Explanation:
Most of the participants of this research indicate that when they purchase online cloth quality of
the product and style of the product is the two important factors that people focus when they
purchase online clothing.
Explanation:
Most of the participants of this research says that when they purchase cloths they purchase from
website where there are special offers and some time they return to the same website from where
they shop last time.
Explanation:
As seen in the table, the effect of the circle of friends on the Internet buying decision has been
found higher than the effect of the family and the discussion forums. Most of the participants of
this research say that they shop online with the recommendation of friends The survey
demonstrated that individuals mostly taking their friends advice. It might be because of their
interest quite similar and therefore they are taking consider each others advice.
11. Shopping on internet saves time.
Explanation:
It is a great advantage to shop at any time of the day. Online shopping provides us the facility to
shop at any time of day without going any place we can purchase anything by just using internet.
39.4% people agree that shopping on internet saves times.
Explanation:
33% respondents agree with this point that online shopping saves time and by using this facility
we can shop at any time of the day. Online shopping saves our time
Explanation:
People have different opinion regarding this question. Some eople says that online shoping is
risky and some says that online shopping is save, but 28.9% people is disagree with this point
that online shopping is risky according to them online shopping is save.
14. A long time is required for the delivery of products and services.
A long time is required for the delivery of products and services.
Frequency Percent Valid Percent Cumulative Percent
Valid Strongly Disagree 23 12.7 12.8 12.8
Disagree 41 22.7 22.8 35.6
Neutral 33 18.2 18.3 53.9
Agree 42 23.2 23.3 77.2
Strongly Agree 41 22.7 22.8 100.0
Total 180 99.4 100.0
Explanation:
22.8% people are agreeing with this point that a long time period is required for the delivery of
products and wait it is difficult to wait for the product that you order.
Explanation:
According to the results most of the population feels hesitation to give their credit card numbers.
Through the results we are able to find that 49% population people feel difficulty while they give
their credit card numbers so we have to focus on other method of payment.
Explanation:
According to the results we are able to find that 54.1% population is agree with the
point that cash on delivery is the reliable method of payment, and they prefer cash on
delivery method to credit card method.
17. Gender:
1. Male
2. Female
Gender
Valid Cumulative
Frequency Percent Percent Percent
Male 110 61.1 61.1 61.1
Female 70 38.9 38.9 100.0
Total 180 100.0 100.0
Explanation:
If we look at the overall e-commerce activity in terms of gender and compare the males vs
females ratio for e-commerce in Pakistan, we can observe that out of the total e-commerce
activities carried out, 61% comprised of males, with females involved in only 39% of the total.
18. Age:
1. Below 25
2. 25-30
3. Above 30
Age:
Valid Cumulative
Frequency Percent Percent Percent
Below 25 151 83.9 83.9 83.9
25-30 years 29 16.1 16.1 100.0
Total 180 100.0 100.0
Explanation:
Through the research conducted by us, it can be observed that the younger population
below 25 years is most actively involved in e-commerce trade, as compared to the rest of
population.
19. Education:
1. High School
2. Bachelors Degree
3. Master Degree
Education
Frequency Percent Valid Percent Cumulative Percent
Bachelor's Degree 103 57.2 57.2 57.2
Master's Degree 77 42.8 42.8 100.0
Total 180 100.0 100.0
Marketing Objectives
Objectives:
Non-financial objectives:
To drive awareness and build sales through mentions in both local print and the nation's
top fashion magazines
To gain the 100% customers loyalty by providing the high quality product.
Marketing strategy
Demographic Segmentation:
In demographic segmentation, the market is divided into groups on the basis of variables such as
age, gender, income, occupation etc; these demographic variables are so popular with marketers
so that they are often associated with the consumers needs and wants. Segmentation variables
are easily measurable. Here are the demographic variables have been used to segment markets.
DeFashion categorizes its target on the following criteria.
DeFashion is not bounded to any particular age we provide casual and party wear dresses to
every age group. In demographics, age limit not specific therefore, for our product the family of
any size whether they are single, married or children doesnt matter mostly people earning
30,000 or above monthly will buy our products. We are targeting upper middle class and high
class peoples.
Age:
15 to 50 years we mostly target young urban, working professional that have limited time and a
desire to buy good fashion cloths.
Gender:
Our brand is gender specific it is purely for women, we provided high quality party and casual
wear garments for ladies.
Income:
Mostly people earning 30,000 or above monthly will buy our products. We are targeting upper
middle class and high class who loves to shop online.
Occupation:
Students, working professionals, house womens.
Geographical Segmentation:
Geographic segmentation is done using the location to segment the market. In geographic
segmentation there are different schemes for the different geographical units such as states,
regions, cities. Markets are mainly divided into the rural and urban areas. Geographical
segmentation tries to divide market into different geographical units; these units include city,
population density and town size. Our products is not bounded by geographic barriers every
person having internet facility can buy our products, because we sell garment on internet and any
person having the internet facility can buy from our website.
Psychographic Segmentation:
Psychographic segmentation buyers are divided on following ways:
SEGMENTATION:
Demographics Age 15-50
Gender Female
Education Most likely students of high schools & universities
or those who have completed their academic
qualifications.
Non-Educated rich mothers/wives.
Income Income of 30,000 or Above.
Occupations Business Executive women, student of higher
education, working women or housewives.
Religion All religions (all those who prefer trendy or
modern cloths)
Geographic Segmentation
Country Major is Pakistan, than all around the world.
Psychographic Lifestyles Going to parties, clubs, launches, openings, etc.
Segmentation (Activities & They like being in latest trends
attitudes)
Personality Hardworking and busy scheduled, Internet surfing,
Social
Benefits Functional Cloth material, embroidery, color, stitching and
design, quality and uniqueness.
Non-Functional Personality/Ego boost, Pride. Uniqueness will
represent every customers individuality.
Competitions:
Defashion has stiff competition with the many wonderful boutiques and online shopping points
in Pakistan. Indirect competitors include those boutiques that carry casual and party wear cloths.
Direct competitors are those websites in Pakistan that sell casual and party wear dresses.
The following are the list of potential direct and indirect competitors present in the market
catering to the mentioned target audience.
Indirect Competitors:
Outlets and designer shops will be the indirect competitor of our brand since they cater to the
same target market. These shops mostly cater to casual and party wear garments.
Ego
Deepak Parwani
Aisha Varsey
Maria B
Rizwan Beig
Imran Qureshi
Stone Age
Funk Asia
Direct competitors:
Direct competitors are those websites in Pakistan that sell casual and party wear dresses.
Competition Analysis:
Indirect Competition
Brand
Company Name Price Range USP
Name
Captures all the
Casual 4,000-12,000 youth and has also
Maria B Maria B Party 5000-20,000 has a lawn
company with the
same brand name.
Ego Ego Casual They come up with
1550-2750 new clothing range
every week and
they dont repeat
previous designs
again.
He arranges various
fashion shows in
Deepak Casual foreign countries
Deepak Perwani
Perwani 3000-8000 and has a great
brand name for
upper upper class.
Is known for all
white range in
Aisha Casual 3,000-8000
Aisha Varsey clothing and she
Varsey Party 5000-10,000
herself wears white
all the time.
In-Direct Competition
Brand
Company Name Tag Line USP
Name
Replica Ab tou sab kay muunh pey Targets youth
Kaymu
Products hai Kaymu majorly
Known for selling
colorful replica
cloths of different
All famous famous brand
Daraz.pk brands captures youth as
replica well as other age
groups and deals
with casual and
party wear
All other websites Could be any and
that sell casual Could be also those who can
Could be any
and party wear any try copying other
ladies garments. idea and designs.
Target Market:
Demographics
Female.
Psychographics
Looks for something new, willing to spend money on quality, love online shopping.
Leisure Activities
Love online shopping
Internet surfing
Travel
She enjoys eating out as well as taking time for herself at the beauty salon.
Shops online.
Love to wear new cloths, Looks for classic, basic items each season
She cares about how she presents herself, enjoys fashion, and looks for quality over
quantity.
Positioning:
It is the point in which company create the brand image in the mind of the customers. We will try
to build the strong image in front of the people as the brand for everyone, a brand that keeps in
mind, the priorities and needs of the people while designing anything for them, a brand that
creates easiness for them in buying. Our main competitive advantage is the unique Style helping
women develop their personal style. We plan to position DeFashion in consumer mind and have
decided to create its own unique image and then strengthen the position in the customers minds.
Marketing Mix:
Product:
1
At the initial level we started our business to target only womens in women clothing category.
We are focusing on casual wear and party wear. Our main focus would be on latest trends. We
will try to give the best quality, colors, designs, fabric and so as the best environment that women
will find ease and would surly love to buy from our website again after first buying. Our clothes
will appeal image conscious, fashion aware, and choosy type of women. Women will feel high
among their social circle.
Advertising Activity
Newspaper advertisement will be done, banners, posters, brochures and cable TV ad will also be
used.
Online Activity
www.DeFashion.com is our website we will provide online purchase facility.
Events Activity
Exhibitions will be arranged, participations in fashion shows will be done. And seminars on
fashion awareness will also be arranged.
Brand Strategy
Our online brand DeFashion focus on latest trends and less time to reach them. Woman can get
what they want without any problem and with great ease. We are providing value; image,
elegance and style of what woman are hungry.
Brand name: DeFashion suggesting that what is in the fashion. Easy to pronounce and
easily accepted all over the Pakistan without any discrepancy. We can even extend our
product line to men under the same name this name has no limitations.
Logo:
Color:
Slogan:
Symbol: girl wearing contemporary dress. Focusing on latest designs and fashion. And it
also shows that boutique is of women. Women can generate associations with the symbol.