Ecommerce Project on OLX
Group members:
Ayesha Noor Fatima
Mahnoor Nadeem
Noor Fatima
Muhammad Ali Vasandani
Pashmina Arbab
Syed Sohaib Ahmed Kazmi
Acknowledgement
We’d like to thank our honourable instructor and mentor Dr Fareesa Malik , for
providing us with such a wonderful opportunity to practically look and analyse
beyond generic business bounds, apply concepts and understand things in a
broader perspective from the lense of Ecommerce
Introduction
● OLX (Online Exchange) is a unique e-commerce platform for buying and selling
services and goods such as electronics, furniture, used cars & bikes, household items
etc.
● Since its launch, OLX has expanded drastically and is operating in now 40 countries
worldwide. The e-commerce platform has now grown and catering to 200 million
active users per month, generating 1.7 billion monthly visits and 35 billion monthly
page views.
● In Pakistan, OLX began operating in 2012, now receives nearly 30 million views every
month
OLX Business model
● Customer-to-Customer (C2C)
● Digital platform (website and app)
● Value Proposition
● Revenue Model
● Market Opportunity
● Competitive Environment
● Competitive Advantage
● Market Strategy
● Organisational Development
● Management Team
PROBLEM/NEED/
OPPORTUNITY ANALYSIS
SWOT for OLX
STRENGTHS WEAKNESSES
● Accessibility & convenience ● Non-internet users are missed
● User-friendly website and app ● Offline market selling cheaper products
● Pricing model as CA ● Doubts about quality of products online
● Regionally customized app ● Chances of fraudulent activity
● Strong brand image ● Delay in the responses of buyers etc.
● Robust advertising campaigns
● C2c market leader - no.1 in Pakistan
OPPORTUNITIES THREATS
● Product diversification ● Tough competitors (like Zameen.pk,
● Offline channel setup native focused apps like realestate pk)
● Job opportunities ● Brick-and-mortar stores in Pakistan
● Further expand in real estate more
professionally
Competitor Analysis
Direct Competitors (Pakistan and Indirect Competitors (Pakistan, and
international) international)
● Local competitors include Daraz, Khaadi, ● Brick and mortar stores like local brand
Yayvo.pk and Zameen.com stores, clothing vendors and
● International competitors include supermarkets
Amazon, Ebay, Quickr, Target, Flipkart
etc
● Key strategies:
Amazon & Ebay (Diversification)
Zameen (Focused Differentiation)
Daraaz, Home Shopping , Khaadi (Cost-
Leadership/Value-Based pricing)
Key strengths of Direct/key competitors Key strengths of Indirect Competitors
● Amazon and Ebay-globalized and wider ● Takes Advantage of wide local presence
customer base ● Greater buying attitude and acceptance
● Daraz- strong market penetration, brand from the customers
● Zameen- Highly focused service offerings
& brand identity
Competitor Analysis Contd..
Threat of New Entrants
● Increased Globalization-- E-commerce progressing at a fast pace
● After the COVID-19 Pandemic, a lot of businesses have established an
online presence to sell their good and services which has increased the
threat of new entrants.
● The customer confidence is now boosting for online purchases, and hence,
customers are willing to spend more money online.
Problem
Absence of Online identity verification (fraudulent activities)
Decreasing switching costs of online customer
Opportunity
Market Penetration (tap into small ,local order-to-deliver businesses in
urban centers)
Further Increasing assortment of products/services
Need
Continuous website and App interface upgrade (attractive buyer ads).
Deploy stronger quality assurance mechanisms (properly verify participants)
IMPLEMENTATION PLAN
OLX’s Traditional Marketing
● Search Advertising:
➢ Sponsored listings
➢ Organic/Paid keyword advertising (Google Adwords)
● Display Advertising (on web):
➢ Image ads with a necessary product description
➢ Video ads (Native Advertising Strategy: TVCs and pre-roll ads on Youtube,FB)
➢ Banner advertisements on the site
● Email Marketing
● Affiliate Marketing
● Viral Marketing
Affiliate Marketing
Display Advertising
Search Advertising
Viral Marketing
Viral Marketing
Viral Marketing
Viral Marketing
OLX’s Social Marketing
● 175M impressions and user engagement for almost 6 min on the site via
mobile category
● Social media presence - 0.73% of desktop traffic from Facebook,
Twitter, Whatsapp webapp, Instagram and Youtube
● Video marketing carried out through Youtube and Hamariweb
● Google display network promoting the ads
● OLX’s blog - detailed overview of the entire content, adding into brand
awareness
● Customized social marketing; capturing potential users for Eid ul
Adha in Pakistan via advertising
Social Marketing
Mobile Marketing
● What mobile marketing is?
● What OLX does for its Mobile marketing
● Deficiencies
● Use of Social-Mobile-Local Marketing to further
reach and visits
OLX REVENUE MODEL
OLX Operating Model
● An online C2C market platform; enabling people to buy and sell
commodities directly, without any intervention of a third party.
● Key Operations i.e. Facilitating the users; Encourages trade
through providing limited free ads, and various business packages.
● Introduction of “Naya OLX”.
● Golden online forum for the businesses for promotion and trading,
an average monthly online traffic of 6 million is generated by
OLX.
Operating model Contd..
Quality Assurance
● Provides detailed precautionary measures that should be practiced by the seller
and the buyers.(on the help page)
● Prioritising the safety, OLX allows to report the profiles of the users seemingly
to be a scam, and it automatically alerts the other users interacting with that
particular profile.
● Allows for a “report ad “ button top corner of every ad
● Provides a 24/7 email service to OLX representative
Conclusive remarks
● OLX should consider employing local, social, and mobile
marketing nexus in order to tap into online customers more
aggressively (shift from search advertising).
● Additional funds should be allocated for more attractive pre-roll
ads on various websites.
● OLX should also invest in bringing mom&pop stores or small
order-to-delivery based businesses.
● Adopt Customer reviews with star ratings at bottom of ad-pages
THE END
Floor is open to Questions
