Moonpig : India
Table of Contents_____________________________________
1.0 IntroductionPage 3
1.1 Greeting Card IndustryPage 3
2.0 BackgroundPage 4
2.1 Business EnvironmentPage 4
2.2 Demand AnalysisPage 6
2.3 Market PotentialPage 7
3.0 Market Entry StrategyPage 8
3.1 Potential PartnershipsPage 8
3.2 Location and Target MarketPage 9
3.3 Market Size and GrowthPage 9
3.4 Legalities and SubsidiesPage 10
3.5 DistributionPage 11
3.6 Pricing StrategyPage 12
3.7 Promotion and Communications StrategyPage 13
4.0 RecommendationsPage 15
5.0 ReferencesPage 16
With the original launch of online personalized greeting card retailer, Moonpig, in 2000 being cited as a failure to the dot.com collapse, when considering the entrance into a potential foreign market such as India, it must be closely examined, with a strong market entry strategy and marketing mix. A key understanding of the business environment is crucial to success and will aid in establishing India as a stronghold successor for the Moonpig brand in South Asia.
Initial insight into the greeting card industry and Moonpig as a brand, will also aid in the analysis of the potential market, as well as building the marketing plan.
1.1 Greeting Card Industry
Greeting cards have always been a way for people to reach out and send messages to those they care about, typically for holidays such as Christmas and significant events such as birthdays, anniversaries and weddings. Today, the UK holds the strongest and highest grossing greeting card industry in the world, with over £1.7 billion turned over in 2009 (GCA Market Report, 2009). Traditionally a paper product purchased through high-street retailers and hand-delivered, the greeting card has taken on various forms through the e-card, and Moonpig’s innovative, personalised, digitally printed greeting card.
The Guernsey based firm offers consumers a chance to connect with their loved ones through personalised cards. With their online store turning over £20.9 billion in 2009 (Sheahan, 2009), Moonpig’s successes have been linked to their connection with their customers, and understanding of their needs. Consumers want quality, personal cards, and Moonpig offers them just this, with little effort and little risk. Additionally, company founder, Nick Jenkins suggests that the advent of the digital camera and broadband Internet, saw Moonpig hit its first real success in 2005, and today, rises as the UK’s number one online greeting card company holding 90% of the UK online market.
2.1 Business Environment
With the Indian economy on a steady growth path, the market is attractive for potential investors. India currently sits as the 12th largest economy in the world. The introduction of Moonpig into the India market levy’s a large amount of potential for growth within the company. Centered in South Asia, India is in prime location for Asian expansion. With over 1.1billion people, the Indian economy is amongst the fastest growing in the world, and has seen an average annual GDP growth rate of 5.5% over the last two decades. With the economy strongly dependant on its internal market and external trade, the country has seen a vast increase in the growth rate of their trade, currently accounting for 1.5% of World trade as of 2007 (WTO, 2007)....