Marketing strategy for internet start-ups to small and medium enterprises

Abstract

India is the third largest Internet market in the world with an estimated 213 million internet users in 2013. As per the Internet and Mobile Association of India, this figure is expected to reach 254 million in 2014 . A number of startup companies are building their business by leveraging on this increasing internet penetration. On the other hand, small and medium enterprises (SMEs) in India are increasingly adopting technology and modern methods to become more efficient. With approximately 30 million SMEs in India , companies are realizing that there is large untapped market available. Startups are creating internet based solutions to cater specifically to the needs of such SMEs. In such a B2B model, it is imperative for startup companies to acquire customers (SMEs in this case) in the initial stages to gain traction. Since startups have limited access to capital or might follow a ‘lean’ model, an effective marketing strategy needs to be developed and implemented. 2 RATIONALE Many internet based start-ups have flourished in India in the recent past. Some of these companies focus on B2B mode of business and target small and medium enterprises (SMEs) as their customers. Few examples of these types of companies are Power2SME, SMEsauda, NPASource, HR Stop, MangoSpring, Kloudo, OfficeYes, eSupplier and Printland which are targeting SMEs to get their business. Their aim is to offer internet based solutions and services to SMEs.