The two cases were presented by R Subramanian, managing director of Subhiksha Trading (a Chennai-based discount retail chain) and Alok Kejriwal, CEO of contests2win.com, a competition and brand promotion website.
Retail is one of the most scale-oriented businesses in the world. As you sell more, your margins go up. Once we had done our research, we found that for basic grocery and pharmaceutical retail, proximity was the primary concern of the consumer. We decided that we couldnt create fresh demand, but instead offer a value-addition by offering discounts on existing consumer demand, said Mr Subramanian.
He added, Creating a business model has to have a logic - has to be validated from research on the ground. The real work lies in implementing the business model that you create.
Alok Kejriwals business model was born from a service that consumers apparently found an irritation - brand promotions on television.
The latent consumer and entrepreneur court each other and an idea is born. This becomes a business model, he said. An irritated consumer can become an entrepreneur and an idea is born. Winning on my website binds my business model.
However, Mr Kejriwal said the challenges in such a business model lay in venture capitalists wanting to write their own chapter, brand owners wanting a slice of the original idea and the need to constantly reinvent ones image while preserving the essence of the original idea. Contests2win has now diversified its competition structure from internet promotions to competitions via SMS on mobile phones.