MEESHO CASE STUDY-5 GENIUS MARKETING STRATEGY OF MEESHO
By Vinayak | Date : 11-November-2022
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Nowadays, anyone can start their own business online from home without spending a lot of funds.
The online shopping market has grown substantially over the last decade, and eCommerce businesses today generate millions of dollars every month in sales worldwide.
People are turning to online buying platforms more than ever since the pandemic outbreak, and many are taking advantage of this chance to create an online business empire of their own. The online reselling market is not different in this aspect.
It’s very cost-effective to start an online reselling business. The cost of creating an item, managing inventory, and paying for all the personnel, tools and other equipment could easily be avoided by using this method since you are merely acting as a bridge between the seller and buyer.
If you’re considering setting up a reselling business, Meesho is one of the best platforms.
Meesho offers an online resale site that allows anyone to start the company without investing any money. At the forefront of reselling in India, Meesho takes pride in reselling in the true sense!
Meesho is an online platform for social commerce which handles retail distribution that allows small retailers to market their merchandise effectively through platforms on social media.
Meesho is a marketplace for online resellers Meesho may not require an introduction. Meesho has created its niche and gained a lot of traction with retailers and customers because it makes online shopping and reselling easy and cost-effective.
Meesho offers secure and fast transactions, along with cost-effective returns and shipping. Over 2.6 million retailers in India have a relationship with Meesho.
The startup from Bangalore aims to create an environment in which any person can set up an enterprise with no cost of capital.
In addition to having more than two million resellers, Meesho has more than 20,000 Meesho sellers from over 500 towns.
Meesho is based on a commission of approximately 10-15 per cent, and sellers may earn money from Meeshoby by adding gross margins to each transaction.
Meesho, the largest resale in India platform, was established in 2015.
The Meesho app is a way to connect manufacturers with resellers. Manufacturers can list their products on Meesho.
Meesho shopping application permits merchants to choose all of their items and sell them to buyers through social media platforms like WhatsApp, Facebook, and Instagram.
Furniture, clothing, accessories, kitchen utensils and cosmetics manufacturers are among the companies that sell their products on Meesho.
WHAT MAKES MEESHO UNIQUE
However, unlike other platforms for e-commerce, Meesho is a social commerce business; this means that it doesn’t offer products directly to consumers. It’s more of an opportunity for resellers to interact with suppliers and manufacturers and to sell their products on their channels on social media.
Meesho is an original and exciting method to earn. It is possible to earn money by starting your reselling company with Meesho. On top of that, Meesho offers a unique bonus plan that allows you to receive a weekly bonus according to your weekly sales.
Its “Refer and Earn” scheme of Meesho is amazing, where you will earn a commission on each sale made by your friend for two years; this is not all.
Membership in the VIP plan that comes with Meesho is also amazing in that you will get discounts on all products, and luckily, you do not have to purchase or pay for an account with VIP status.
All you need to do is need to finish your purchases. There are more exclusive advantages of Meesho.
Meesho apps that are suitable for everybody, such as free shipping catalogues discounts available all year round, Meesho credits, Spin wheel, and more. Explore the app and get the most out of it.
MEESHO CASE STUDY
Meesho Case Study and Story of Success Every startup have its failures and successes. However, despite all difficulties, they can rise above and set a precedent for the next generation of brand owners and entrepreneurs.
A great example of such an organization is Meesho!
In this blog, we’ll examine the successful story of Meesho by way of an investigation that will consider a variety of aspects like the history of its founding team, revenues generated, the marketing strategies, funding strategies, business model, and the possibility of its expansion in the coming years.
The idea behind the business model of meesho
1.What is the process behind Meesho’s function
Meesho is one of the top reselling apps, making reselling products very easy.
Earn money with Meesho by selling fashion-related products and lifestyle through Whatsapp, Facebook and Instagram.
When you launch the Meesho app, you’ll discover a vast selection of high-quality products from the best companies. Please choose a product you believe your friends will enjoy so that they are likely to make a purchase.
Sharing these products with your Whatsapp contacts or groups and Facebook friends is possible. Instagram followers, etc.
You can include your margin to the cost of the product plus shipping and then give the final cost.
Let’s begin by analyzing the strengths of Meesho by analyzing the SWOT of Meesho to your client.
After they have confirmed the purchase, you can place the order through the application. If you make an order via COD and the payment is debited from your account after ten business days.
2.How was Meesho Started
Meesho is the idea of two IIT graduates, Vidit Aatrey and Sanjeev Barnwal. They were classmates between 2008 and 2012.
The idea of launching the social commerce platform began to emerge when they worked as employees at InMobi.
Then, they started working on their plan with two objectives: helping empower women and helping Micro, Small and Medium Enterprises (MSMEs).
Before Meesho became popular in 2015, the social commerce sector was struggling.
So, Meesho has revolutionized this specific industry and has paved the way for other similar companies.
But “Meesho” wasn’t the initial name for the brand that the founders thought.
Fashnear launched the company under the name. If it were operating in the present, the company would have been comparable to how Zomato does for meals and what Grofers does for groceries.
The company’s founders wanted to launch an innovative method of shopping.
For example, a customer could select three items at once, and the delivery person will deliver to their residence.
When they receive the delivery, they may pick one or two of the three items and only pay for the items they choose.
3.The transition from Fashnear to Meesho
Looking at more viable strategies for business operations, they started creating a new plan, according to the idea that any shop owner could use their Facebook login to log in to Meesho. After this step was completed, Meesho transferred all their data, and a new page for their company was created in just a couple of steps. The platform assisted with automated inventory and stock management. Due to these features, they managed to get more than 10,000 shops on board within six months.
The majority of customers were women who were selling items from top clothing retailers and manufacturers.
4.Who are the customers of meesho
Meesho is run through a two-sided market structure that has two major customers:
- Consumers: Meesho mainly targets people new to the internet in rural and small-town areas that want high-quality and reliable products at a fair cost. They tend to be more price-conscious and are open to the internet due to the fear of being scammed. As per the firm, more than 70 per cent of its customers come from Tier 2 and Tier 3 cities such as Jhansi, Mathura, Dehradun and so on.
- Resellers:Resellers can be described as customers who serve as intermediaries to Meesho and the final users. They utilize Meesho’s platform to procure products and then sell them on their social networks with a markup. In 2022, Meesho will be home to more than 15 million dealers on its platform from across India. This is mostly women homemakers, college students or young people who utilize social media platforms such as WhatsApp, Facebook, and Instagram to connect with their networks for selling products.
5.Meesho’s Key Resources
The business must invest lots of resources, from employees to warehouses, to ensure it can provide a positive customer experience.
- Human resource: The company has over 6000 employees for various reasons, including customer support and technology, marketing, and so on.
- Financial sources: Meesho has raised over $1.1 billion in investment from investors such as Sequoia India, Shunwei Capital, RPS Ventures, Meta, etc.
- Resources for technology: The business has created a technology platform that assists in various processes such as logistics, payments and others.
- Resources for logistics: The company must ensure that the items sold through its platform get to its customers on time. To do this, it has tie-ups with different logistics companies.
MARKETING STRATEGY OF MEESHO
The primary strategy for marketing employed by Meesho is to run a targeted campaign for women.
Meesho has created a niche for its business. Its goal is to provide women with opportunities to work from home and enable them. They can begin their own company without putting in a lot of time or money. The public extremely loves Meesho’s feminist strategies.
2.Marketing on Social Media
Establishing a social presence is a crucial element of any marketing plan because it is the most effective way to engage with your audience.
Meesho uses social channels to build its brand by organizing campaigns, collaborating with other companies, and connecting with its fans through posts. Memes are an excellent and contemporary method of brand promotion. They also use social media marketing strategy for e-commerce website.
They uniquely appeal to people. To capitalize on this “meme wave,” Meesho has been advertising discounts and deals that incorporate memes. One of the most effective marketing methods is adapting popular dialogues to convey Meesho’s theme.
3.My Store My Story
While MEESHO promotes its brand on social media, the company’s TVC campaigns also have large audiences.
The commercial on TV #MyStoreMyStory has an empowerment plot that is appealing to an audience of the brand’s audience.
This campaign’s design successfully negotiated the obstacles of being a home wife and juggling multiple identities and gave women a sense of belonging.
4.Sabse Kam Commission
The aim of the campaign #SabseKamCommission was to increase awareness about the commission rate paid to suppliers concerning sales of their products.
Wunderman Thompson developed this concept. Thompson knew how MEESHO operates, intending to reduce commissions by less than one per cent.
5.Ads on YouTube and Facebook
The most effective method of marketing for any company is to use advertisements.
Meesho makes use of YouTube and Facebook advertisements that are in line with the latest trends in the world of digital marketing.
Meesho has a large visibility thanks to these ads. A huge demographic audience uses YouTube. Therefore, this technique helps Meesho in gaining more attention.
SWOT ANALYSIS OF MEESHO
The SWOT analysis conducted by Meesho will identify the strengths, weaknesses, threats and opportunities; consequently, it is of utmost importance to any business.
It is a tried and tested management method that permits companies to assess their company performance against their competition and business as a whole.
1.Strengths of Meesho
Let’s begin by analyzing the strengths of Meesho by analyzing the SWOT of Meesho.
Competitive advantages are the strengths of a business that enable a business to grow, create value, and improve efficiency.
This means it can capture more market share, drawing more customers and increasing profits. These are the advantages of Meesho:
- Ranking: Meesho is ranked 1st among India’s Top 10 Reselling Platforms.
- Emancipating Women EntrepreneursMeesho’s: main strength comes from the ability of Indian women to manage their home-based businesses and to create new brands and identities for them.
- Simple to be a supplier: To become a Meesho supplier, you must install the Meesho application or go online.Once your account is created, you can begin promoting your business and ship orders right away using Meesho.
- Start with No Investment: To join the hundreds of thousands of resellers earning money with Meesho, You don’t need to spend any cash. All you have to do is to open an account with a reseller company and start selling on Facebook, WhatsApp, and Instagram.
- Customers loyalty Program: Meesho introduced VIP Membership to help its resellers. With this membership, where any reseller can complete more than 15 orders within 30 days of purchase, they’ll receive an additional discount of 10% on their merchandise.
- Community Development: Meesho wants to develop as an online community. This is why they’ve created the Meesho Learning Hub platform. Meesho Learning Hub allows resellers to learn how to sell online and expand their business.
2.Weaknesses of Meesho
There are areas where an organization or brand requires improvement. Some of the biggest flaws of Meesho are listed below:
- Products of low quality: Most of Meesho’s suppliers are local and are not registered brands. That’s why the majority of the time, the quality of the final products could be much higher.
- No Website Free to Resellers: Most competitors, such as GlowRoad, Shop101, etc., offer free personal websites for their resellers; however, Meesho still needs to adopt them. This could create major issues for Meesho and its resellers shortly.
- Pickup Problem:The most common issue that resellers have to face with Meesho is the issue of pickup. Sometimes, no one is there to collect products from retailers, causing orders to be cancelled and, in turn, imposing a penalty on resellers.
- Reliant On One Nation: Meesho is extremely dependent upon India and is vulnerable to foreign competitors.
- Fraudulent resellers: Numerous fraudulent resellers are listed on Meesho. Despite Meesho’s best efforts to combat these resellers, they persist.
- Technical glitches: Technical problems occur in the majority of websites. However, because of certain technical problems, customers face difficulties, which causes frustration and impacts the customers’ purchasing and selling.
3.Opportunities for Meesho
Opportunities refer to positive external factors that give an organization an edge over its competitors. Meesho is among the biggest reseller platforms in India.
They could therefore have a lot of possibilities to meet them soon. These opportunities could include the following:
- Augmented Reality: The application of Augmented Reality allows customers to interact in real-time with their products while remaining within their surroundings. This will ultimately lead to higher conversion and lower return rates on Meesho’s products.
- Crypto as a payment option: Shortly, crypto can be a popular payment method for Meesho. This could result in a quick transfer of cash as well as a decrease in the number of fraudulent transactions made via digital.
- Establishing in other Countries: Meesho can slowly expand beyond India and help boost its revenues.
- High Accessibility: Customers can buy anything anytime via Meesho. Customers who work during the day and can’t buy anything alone can purchase anything at night.
- Growing Number of Users: Numbers of internet users increase every day. People are more secure purchasing on the internet. This is why it offers the potential to grow the number of customers soon.
4.Threats to Meesho
The threat of external threats could affect the ability of a business to meet its objectives. Below are a few dangers of Meesho:
- Scams and Frauds: Numerous online frauds are a cause that could be a concern to those who visit the website. If a website displays false representations and duplicate products and fails to secure the website, it will diminish its impact, and the customers won’t go to the site.
- Competition: Meesho faces competition from companies like DealShare, GlowRoad, Shop101 and many more. Meesho must ensure that its prices, as well as its quality and technology, are at the top of these businesses.
- Modifications to Demand: The demands of customers constantly change over time. Making sense of these many products may be challenging at times.
- Data Security: Apart from the obvious fraudulent nature, there’s the possibility that things can go wrong when you shop online shopping, especially regarding customer information. Online shopping requires you to provide sensitive information, such as your payment address and other data. If the information you provide falls into the incorrect hands, it could create devastating damage.
- There is no direct interaction: In Meesho, and it is impossible to interact between the customer and the reseller directly. There isn’t any room for negotiations. The majority of people prefer buying in person in comparison to buying online to get a personal experience.
Meesho is a company that has recently seen a surge in popularity. It has assisted many homeowners, small-scale business owners and people with disabilities earn money and become financially independent.
It began by focusing on local stores, but it now has the support of large retailers seeking to resell. Meesho has seen significant growth and has room for expansion due to its unique strategy and marketing techniques.
The main reason behind Meesho’s story of success lies in its online marketing strategy.
Based on the case study of Meesho, we’ve learned the significance of digital marketing in the present moment, and having a better understanding of it can lead to many job opportunities. If you want to know more about digital marketing course duration and fees and also learn about how to make passive income through digital marketing.