It was a

mistake, and
a lesson

BY
YRCS VARMA (14BM60096)
BIBEK BHATTACHARYA(14BM60097)
YOGESH SUTHAR(14BM60098)
SARANSH BHATIA(14BM60099)
NISHITA AGARWAL(14BM60100)
UNNAT BHAVSAR(14BM60101)
GREESHMA DESAI(14BM60102)
SAHIT VISTARAKULA(14BM60104)
SHASHANK SONI(14BM60105)
CHETAN KALE(14BM60106)

ADMART CASE STUDY

Jimmy Lai Chee-ying

ABOUT ADMART
Established in Jun 1999 by Jimmy Lai Chee-Ying with HK$936mn investment
and 1500 employees
Undertook 12000 deliveries in a month intially with first year sales of
HK$546mn
Excellent innovative marketing strategy by promotions in sister concern APPLE
DAILY
Direct marketing company that sold groceries and electronic products through
internet telephone and fax.
Offered free Home delivery service

SWOT ANALYSIS

STRENGTHS
First

online grocery retailer in Hong Kong

Minimum investment in infrastructure
Convenient ordering system for customer via
internet , on the telephone and fax
Competitive pricing strategy with low price
Excellent marketing strategy by advertising in
apple daily
Widespread reach with 95% area coverage
Free home delivery increased the customer base
High flexibility in product portfolio

WEAKNESS
Variety

of goods were limited below 9000 SKU.

lower product quality due to supplier constraints
Costly and complex distribution system
Frequent product shortage and inability to
deliver on time
Lack of coherent public relation
Customer couldnt touch and feel the product
Inefficient use of labour
Not able to reach BEP with small order size

OPPORTUNITIES
Internet

penetration increasing .
Growing interest in online selling.
Busy lifestyle allowing less time for physical
shopping.
Demand for diverse and extensive product
offerings
Customers looking for cheaper prices which can
be catered by online sellers.
Technology friendly customer base increasing.

THREATS
Economic

slowdown
Established competitors posing
challenges.
Other retailers adopting same business
model.
Lack of trust in internet as a selling
medium.
Competitors having more resources.

LESSONS LEARNT
Segment

by segment penetration should

be the plan.
Product quality should meet standards.
Customer relations should be maintained
well.
More research and analysis of the market
and customers required.
Network of suppliers and distributors
should be well established.

AMAZON VS ADMART
Amazon

has a wide range of products while

AdMart has limited products to choose from.
Amazon supports third party selling unlike
AdMart.
Amazon charged for delivery while AdMart
provided free shipping.
Unlike AdMart, Amazon had strong network of
suppliers .
Amazon catering to a huge market globally
while AdMart only restricted locally.

THANKS