Chumbak is an India based designing company based in Bangalore. The company was founded by Subhra Chadda and Vivek Prabhakar and sells designers t-shirts, tins, coffee mugs shot. The company was founded in 2010 and has a strong presence in both online and offline mode. The originators fulfilled that rich and created items with a touch of Indianness could just catch on with the young of India.
Subhra is the Co-founder and Head of Product and Design in Chumbak. She completed her Bachelor’s degree in Commerce from Mount Carmel College, Bangalore, and Masters in Public Relation and Advertising from Bhartiya Vidya Bhavan in 2002. After that, she worked for many Multi-national companies KPMG, Nirvana Films, NetApp and Nortel Networks. Her last job was with Nortel Networks as Marketing Communication Manager.
Idea of Chumbak
The Chadda’s loved to travel and each time they traveled, they would shop for souvenirs, especially fridge magnets. As they were usually on a small budget, they found that fridge magnet made appealing and affordable gifts to friends and family back home. While varieties of such products were available abroad, in India, We have very limited choices. Shubhra asked Vivek, and the duo started searching for India-made fridge magnets but they could not ﬁnd fun fridge magnets in India.
Vivek and Shubhra soon realized that affordable, well-designed and crafted products that could be used as accessories and gift items were in demand. And thus came the idea of Chumbak.
The unique designs of Chumbak have attracted favors from private equity investors and funds from venture capitalists. Till now the company has 5 rounds of fundings.
|Feb 17, 2013||Seed Round||2 Million Dollars||Gaja Capital|
|May 20, 2014||Series A||Unknown||Black Soil|
|Nov 1, 2016||Debt Financing||30 Million Rupees||Narayan Ramchandra|
|May 1, 2017||Series B||850 Million Rupees|
|Nov 28 2016||Series C||850 Million Rupees|
Chumbak Business Model
Chumbak does its business through the hybrid model, online through its website as well as ofﬂine by having more than 20 kiosks in the best malls all over India. Vivek says that 50 percent of Chumbak’s orders come through Facebook, organic searches on Google and in-store visibility. Spotting trends and developing new products along those lines is a continuous process for Chumbak. The marketing strategy ofChumbak believes in removing old products, for which demand dips as a new product is introduced. The entire planning, designing, and production processes are in-house.
Chumbak Marketing Strategies:
Chumbak is a rare breed of startup that launched with mere online presence via digital marketing platforms such as social media, search engines etc. Chumbak has been active in digital media and pro-social media since inception and this is evident from the manner in which it engages with its fans, followers, and consumers across social networks.
Facebook is the lead medium to reach customers. Chumbak was also an early adopter of search engine marketing (SEM) and search engine optimisation (SEO) and is a Google AdWords case study too. The brand has an active blog, and active on Instagram and Twitter and has a YouTube channel. Chumbak follows a ‘digital only’ marketing budget with the bulk of it spent on Facebook and the rest of Google AdWords, display and search ads apart from photos and videos for Instagram.
Twitter Searches For a Business ModelCase Study Questions:1.Based on your reading in this chapter, how would you characterize Twitter’s business model?Twitter provides a platform for users to express themselves by creating content and sharing it with their “followers”, who sign up to receive someone’s “tweets”. Twitter began as a web-based version of popular text messaging services provided by cell phone carriers. The basic idea was to marry short text messaging on cell phones with the web and its ability to create social groups. Twitter faces the problem of how to make money. Twitter has failed to generate earning as its management ponders how best to exploit the buzz and user base it has created. 2.If Twitter is to have a revenue model, which of the revenue models described in this chapter would work?Of the revenue models, if Twitter were to have a revenue model, the advertising revenue model and the subscription revenue model would work. In the advertising revenue model, a website generates revenue by attracting a large audience of visitors who can then be exposed to advertisements. Twittercould charge a commission on sales to companies who maintain customer service customer accounts,because it is acting like an e-commerce sales platform (similar to Amazon). In the subscription revenue model, a website offering content or service charges a subscription fee for access to some or all of its offerings on an ongoing basis. Freemium is where Twitter can ask users to pay a subscriptionfee for premium services such as videos and music downloads. Twitter could also charge service providers such as doctors, dentists, lawyers, and hair salons for providing their customers with unexpected appointment availabilities.3.What is the most important asset that Twitter has, and how could it monetize this asset?The most important asset that Twitter has is a powerful alternative media platform for the distribution of news, videos, and pictures. These assets can be monetized by advertising – promoted tweets, promoted trends, @earlybirds accounts, and temporal real-time search. Promoted tweets are when a user uses Twitter’s search engine, and in response, is shown related advertisements. “Trends”is a section of the Twitter homepage that lets users know what’s “hot” and what a lot of people are talking about. Promoted Trends are trends that companies would like to initiate. A company can placea Promoted Trends banner on the bottom of the page, and when users slick on it, they are taken to the follower page for that movie or product. @earlybirds accounts are where users can follow to receive special offers, like “buy one, get one free”. Another monetizing service is temporal real-time