Course Paper for Bachelor

Students
Course Type
Course Name
Course Code
Instructor

Subject Elective
Electronic Commerce
60030025
HE, Mingxin

Case Study on Snap Cart

School

Name
Student ID
College

Victoria
13246825493
International

Major
CGA
Email
viica09@yahoo.com
Submit Date June 27, 2016
Fast-moving consumer goods (FMCG) brands have long been dependent on in-store
marketing and offline advertising with high costly to increase their sales. New media such as
Facebook and Instagram are typically used to increase brand awareness or drive sales online
but not for FMCG brand because the lack of real time data offered in shopping deals.
Snapcart provide a platform for the brand to build a stronger relationship with the consumer
buyer with a better understanding of their shopping behavior. Do they buy diapers and carrots
in the same day? This indicates that buyers do their shopping purposes on certain days of the
week, the information that can help traditional retail channels determines their campaigns,
and finally able to drive and automate purchase in the future. Trends private retail provides an
in store experience tailored to each visitor and have been found to boost profit margins and
customer loyalty. According to the RightNow Customer Impact Report, 86 percent of
consumers would pay up to 25 percent more for a better customer experience. More
importantly, it allows the buyer to repurchase, in ways previously not possible through
traditional retail channels, through a targeted campaign.
In the dynamic FMCG market, producers traditionally do not have visibility of activities of
consumers and their shopping habits beyond survey-based data and estimates from research

firms. When they carry out certain activities, whether it is consumer promotions, offline or
online campaign, the overall sales rise but it is difficult to determine this up to the level of the
individual consumer. Yet, the precious information is contained within a small piece of paper
that shoppers typically throw away with little regard: the receipt. But now, Snapcart give buyer
behavior in real-time to track down to the level of the individual and their physical location. It
also offers opportunity to maintain, retargeting and activating these buyers through private
deals and campaigns. In addition, the insights drawn from the data Snapcart can also be
applied to strengthen the offline and trade marketing of our program.

Snapcart is the first mobile application in Indonesia with the concept that allows buyers to
obtain cash back for every receipt uploaded into the application. In Indonesia, most of daily
products are bought offline and by using this online application the users can get special cash
back which usually requires several visits to different supermarket to compare a product and
find such promotion. By changing the images uploaded by users to text using Optical
Character Recognition (OCR) to recognize the quality of the paper and the type of printer
used by the franchise as well as technical issues such as the type of phone used by the user.
This offline to online concept application allows brands to interact more deeply with
consumers through activities from smartphone such as surveys, video advertising, and selfcapture features. Snapcart is e-commerce private company and located at D-Lab Riau Street
No.1 Menteng, Jakarta. The website is www.snapcart.co.id and the application is free to
download from google play store and apple app store. Until now, the application has
downloaded for more than 150.000 times with more than 85.000 active users monthly and
become the top ten applications for shopping category in google play store without marketing
efforts. Snapcart also cooperated with more than 35 big brands including Nestle, Unilever,
LOreal, Garnier, and so on with more than 700 chains in Indonesia. Until now, food and
beverage products is in the category for most frequently purchased and redeem by the user,
while the cosmetics in the product cycle took more time. Furthermore, additional prizes are
available through the brand interactions available in the applications such as filling out a
survey or upload selfie products and product review. These activities allow Snapcart to collect
a lot of data on individual level which then gives the brand an opportunity to provide relevant
and personalized.

As a new premise technology startup to turn turn oft-discarded receipts into data gold mines
in Indonesia, Snapcart was first launched on 2 September 2015 in Jakarta by the founder and
CEO Reynazran Loyono, Laith Abu Rakty and Mayeth Condicion work as the co-founders and
now appointed as CTO and CDO of the company. Reynazran has formerly worked in P&G
and Boston Consulting and then come up with the idea when reflecting on his experience as a
consultant at e-commerce firm called OLX.co.id which is one of the online shop website in
Indonesia. Reynazran learned the importance of focusing on consumers when he work at the
P&G but he realize the company lack of in-depth data and real-time knowledge of the
consumers and it proved to be a challenge in marketing. After working with a major
telecommunication as a consultant and gaining hands-on experience leading the online
classifieds site and learned how to leverage big data to impact shopper behavior in a positive
way from the company he previously work. He decides to start to make some research and
he realizes a wasted opportunity in every receipt the buyers throw away after the shopping
session. On the other hand, Mayeth is a co-worker of Reyazran as former marketing research
director in P&G while Laith has more than 7 years of experience in building website, mobile
and computer program and applications with progressive experience at architecting,
developing and operating e-commerce with large, scalable, reliable and secure enterprise
solutions. They all have extensive combined experience in the fast-moving consumer goods,
consulting, market research, and tech spaces. Snapcart team currently has 12 members in
total with focus in expending the service across multiple emerging markets in Southeast Asia.
The founder ambitiously aims to exit the company via initial public offering in the future.

Snapcart works in four ways; browse, shop, snap, and cash back. In the first step, the users
can search for the latest promotion in the application to help them decide what should be
purchased. Then, users can go to a supermarket or minimarket to purchase the product they
want. Unlike coupons in other places, there is no limit of place the buyer can shop. Snapcart
provides more comfort for the buyer to receive extra discounts anywhere in Indonesia. After
pay, the users can ask for the print out receipt from the cashier, then take a photo and upload
it into the application. The money will go to the account after validated within two days. To
redeem the money, the user must satisfy the minimum amount to withdrawal which now is
around Rp. 25.000-. After the minimum amount is satisfied, the users can put the bank
account number and the money will be sent into bank account within seven days after the
withdrawal. Snapcart accepts all bank accounts in Indonesia. All the Snapcart transactions
are done via bank transfers and the firm believes there is not necessary to establish
partnerships with banks to operate. Although a week is a long time to wait but the firm
promise the service will get faster over time. Besides, there is no limit of how much cash
consumers can withdrawal. The users can also redeem millions of rupiah at once before
cashing out. The firm guarantees the safety of the user account information by never asking
for credit card information. However, Snapcart users may not redeem receipts that are older
than seven days after purchasing because it will be not valid and rejected automatically.
Furthermore, users can get points to exchange it with souvenirs from Snapcart by filling the
survey, watching video advertising of some products, and so on.

Offline shopping is still going to be the majority. However, it is very hard to track what's going
on with shoppers and the idea behind Snapcart is to bridge that gap by crowd sourcing data
through receipts, mining that data and sharing it with brands so they can use it to engage with
shopper. Snapcart build a solution to collects and analyzes raw data from shopping receipts
and turn it into actionable information. The data will be converted into insight for the brand in
real-time, whether it's 50 or 50,000 shopping receipt. It provides retailer the ability to
understand consumers and their behavior from the collective information, something that was
not previously possible before. Snapcart is a two-fold win-win business situation between
consumers and retailers. The traction from both brands and users bring great endorsement for
the pervasiveness and stickiness of the service for Indonesian consumers. This in turn brings
invaluable insight and benefits to offline brands and retailers leveraging mobile technology

From business perspective, information collected from receipts is funneled back into
Snapcarts data troves where it is compiled and used to provide clients consulting agencies
with reports and information about consumer spending and shopping habits. That is unique
because tracking offline commerce is no easy task. Door stepping people at home, in-store
surveys and other such strategies tend to fall someway short of the mark, particularly when
compared to actual sales receipt data.
Most of Indonesia populations are in the middle-class level and from consumers perspective,
they are happy because they can get their money back in their wallets. Most of people like to
use free application and even more is an easy way to get rewards and in exchange for
money.
Most brands have spent a lot of incentives to get fresh insight into their customers and
Snapcart help brands to get the data that they have imagined but never had a practical way to
actually collect them which can help them in direct access into consumer analysis in real-time
across the country. Through the receipts that it gathers from users, it analyses raw data and
turns it into real-time insights. They can use the artificial intelligence to generate consumer
insight for brands and advertisers. Then, they can use that information to target shoppers with
deals and campaigns that have been personalized and location-based offers and marketing
campaigns. In addition, Snapcart also gives the brand an opportunity to have more
relationship with their offline customers through surveys and selfie review. The number of
survey questions that have been answered in the application already exceeds 150,000
questions, with an average of 500 questions answered every day.

Snapcart received the first investment from Ardent Capital based in Bangkok, Thailand. After
Snapcart launched, the company has raised $1.7million investment from Singapore Press
Holdings, Sinar Mas Digital Ventures, and Wavemaker Partners. The company will use the
new money to expand the operations and develop new products focusing on engagement
video features and analytical dashboard tools. These features will accommodate brands with
the platform they need in order to see their consumer behaviors in a real-time as well as to
help brands in formulating their next marketing actions. Snapcart is targeting their new market
in other Southeast Asia country and starting to expand their service to Philippines this year.
Strength:
The emergence of e-commerce in Southeast Asia has produced several online cash back
choice in this region. However, Snapcart specifically intended for mobile accordance with
economy-first mobile and mobile-only possessed Southeast Asia. Today, Indonesia has more
than 300 million mobile phone subscribers with monthly active smart phone penetration is
expected to reach 100 million by 2018, making Indonesia became the 4th largest smart phone
user base in the world, following China, India, and the United States.
According to a recent study from Deloitte, sales at stores that are affected in the US mobile
will far exceed sales of mobile commerce and e-commerce, increased by $ 689 billion USD in
2016 (up from $ 158 billion in 2012). Deloitte report showed glimpses of the potential of
mobile retailing in Indonesia. From the same study, 61% of shoppers surveyed said they
would use their smartphone in store. This is where the brand can utilize the platform Snapcart
through traditional retail merchandising and shop fitting space to have a direct and personal
relationship with the shopper.
Weakness:
In Indonesia, there are many different formats for receipts, even within the same retail
franchise, which makes it harder to be automated. This is the hassle that the firm want to
tackle in the next stage and sometimes image recognition when photographing receipts is a
challenge, not because Snapcarts is inaccurate, but because often some branded items have
the same descriptions on receipts. This makes it difficult to know what exactly the customer is
redeeming.

Opportunity:
The first stage of development was focused on mass data collection and user acquisition,
activation, and engagement. Now, with over a thousand receipts received per day, the firm is
looking to perfecting the built-in automation system and upgrading the app. The involvement
of new investors referred as a strong strategic synergy to the firms. After received investment
from other company, the firms are starting to expand their service to other Southeast Asia
country starting from Philippines.
Threat:
Other competitors with the same service idea from Singapore called Shopback and
hometesterclub.com are expanding their service to Indonesia.
The firm goal is to reach 1 million downloads in less than a year. So far it have partnered with
FMCG companies, doing digital marketing through the existing channel which is a
combination of offline and online marketing activities. By combining technology, science data
and consumer understanding, Snapcart is expected to receive a big data base for the
company with better shopper insights. Snapcart is trusted as one of the most promising big
data business in Southeast Asia.