Post on 02-Jun-2018
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Flipkart
:
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FlipkartOne of the leading Indian e-commerce
companies headquartered in Bangalore, Karnataka Founded by Sachin Bansal and Binny Bansal in 2007 with
4 lakhs funding
Raised two rounds of funding from Accel India and Tiger
global management Early focus on online sales of books and later expansion
of product line
Offers multiple payment methods
Path Breaking Services Among the top 20 Indian Web sites in terms of traffic
Regarded as the Amazon of India
INTRODUCTION
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ACQUISITIONS
2010: WeRead, a social book discovery tool
2011: Mime360, a digital content platform company
2011: Chakpak.com is a Bollywood news site that
offers updates, news, photos and videos
2012: Letsbuy.com is India's second largest e-retailer
in electronics for an estimated US$ 25 million
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Initial Challenges (2/2)
Skeptical about security of online transactions
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Flipkart building Trust
COD
24*7 Customer Service
Never Promise something that you dont have it built its own inventory
Deliveryits own courier company
No-Questions-Return policy and 30 days replacement policy - A recent study has
found that 89% of online buyers say return policies influence their decision to shop
with an e-tailer
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Right Timing helps!
Indian railwayswww.irctc.co.in played a big role to
its success.
Internet boom in India and growing internetbase/users in India.
Not much competitions in the market.
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Growth Story
0
100
200
300
400
500
600
2008-09 2009-10 2010-11 2011-12
Revenue ( in crore )
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Growth Story
Started with books and went on toadd new products
2 employees, 2 suppliers to 4800
employees and more than 600suppliers
Have their own internal courier
services called flipkart logistics
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Flipkart 2011-12
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Why Books were the first choice?
Lower transaction size
Better Shelf size
Shipping and handling of books is easy
To emerge as a pioneer in book retailing rather thanventuring comparison shopping engine
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Competitors in book market
5 sites cheaper than flipkart to buy books
Uread.com
Simplybooks.in
Bookadda.com
Landmarkonthenet.com
Infibeam.com
- offering better discounts, consumers choices aresplit and they seem less inclined to buy books only
from Flipkart.
N Of hi h b i
http://aryaninfo.com/5-sites-cheaper-than-flipkart-to-buy-books/http://aryaninfo.com/5-sites-cheaper-than-flipkart-to-buy-books/http://aryaninfo.com/5-sites-cheaper-than-flipkart-to-buy-books/http://aryaninfo.com/5-sites-cheaper-than-flipkart-to-buy-books/http://aryaninfo.com/5-sites-cheaper-than-flipkart-to-buy-books/8/10/2019 Flip Kart Final
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No. Of hits on the websites
Sep 2011- Aug
2012
Colour Codes Average Scores with respect to Flipkart
Flipkart.com 1
Ebay.in 0.82
Myntra.com 0.5
Jabong.com 0.3
Snapdeal.com 0.42
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Performance measurement
Profit gauge
- Repeated transactions
- 70% of customers come back
Reducing COD customers.
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Flipkart Strengths
Price reductions
24 hour a day shopping
Complete freedom and time to choose
Satisfied customerspurchase frequently andspending will increase
S t Sh i I t t E i D hi
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Segments Shopping
Orientations
Internet
Exposure
Experience as
EShopper
Demographics
Convenience oriented New
Shoppers
Opening hours
and time savings
Medium-low Men 25-44 Medium
High Class
Big Towns
Convenience oriented
experience shoppers
Opening hours
and time saving
High Men 25-34
High Class
Big Towns
Involved shoppers Only medium
available
High Men 14-24 Medium
High ClassBig Towns
Dual shoppers Only medium
available
Medium- low Men 14-24 Medium
High Class
Middle Towns
Price oriented shoppers Price reductions - - Men 25-34 Medium/
MediumHigh Class
Big Towns
Informational recreational
surfers
Low information
search costs andeasily
- - Men 25-34 Medium
High ClassBig Towns
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123 GiftsOccasions
Discounts , free home delivery Price comparison
Benefits
Potential user
First time or second time user
UserStatus
Behavioral Segmentation
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Demographic Segmentation
AgeKids Baby care, Toys
TeenPlaystation, Xbox, movies, music
Gender
MaleComputers, Mobiles and accessories, WatchesWomenBeauty and Health care ,Home and Kitchen
Occupation
StudentBooks, Music, Movies, Stationaries
TravelerCamera, Luggage, Books
WorkingMobiles, Computers, Watches
Segmentation Variables
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Survey Findings
If a product is priced equal both online and at the
Retail store,63 % prefer buying from the Retail outlet
2/3 rd of them said that Electronic Goods arecheaper to buy online than at the brick and mortarstores
69% of the respondents said that Online shoppingshall replace the Book Stores
28% of the users said that they had to return an
online purchased item when it was delivered 17 % felt it was not convenient to shop online
20% reported more varieties online as compared tothe 80% who preferred the stores
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0
10
20
3020 22
25
8
0
26
Sales
15%
15%
12%
15%6%
37%
No. of events of online
purchases in the last 12
months
1 2 3 4 5 >=6
62%
29%
9%
USP of FlipkartCash/Card on
Delivery
Easy to Order
Easy toreplace
0
100 774 10
2 7
Competition
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Myths- Hogwash
Yes
89%
No
11%
Do you feel it is safe tomake payments online?
58%23%
10% 9%
Which product did you buy from Flipkart
Books Mobile Phone
Computer and Accessories Apparels
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Consumer oriented model
Cost
Heavy discounts on books
Free shipping for purchases above
Rs. 300
Consumer
Availability of products across 14categories
Books can be ordered before they
are launched
Pan India presence
Communication
Advertisements via Search EngineOptimization
Transparent Communication
Once the customer places anorder, progress can be tracked
ConvenienceEase of finding the product and
related information
Purchase at the click of a button
Cash/ Card on Delivery
MarketingMix
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Decision making process
Evaluation ofAlternatives
Customer perceivedvalue
Wider range across allcategories
Purchase Decision
Faster turn aroundtime
Cash/Card on Delivery
Easy Return Procedurein case DOA
Post- Purchasebehavior
Feedback on Flipkartwebsite and other
blogs
Word of Mouth
Affiliate
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Dot -Com
Generation
Target group
PURCHASE
Time PoorCustomers
CostEffective
Non Tier 1Cities
looking forwider range
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PORTERS ANALYSIS
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INTERNALFACTORS
EXTERNAL
FACTORS
STRENGTHS
BRAND
SUPPLY CHAIN MANAGEMENT
QUICK TURNAROUND TIME
ADVERTISEMENT AND PROMOTION
STRATEGIC ACQUISITIONS
HUGE REACH
WEAKNESSES
DELIVERY
INTERNET PENETRATION
PAYMENT GATEWAYS
HIGHER COSTS
GROWTH IN e-TAIL
GROWTH IN e-BOOK CULTURE
BROADBAND PENETRATION
MOBILE APPS
OPPORTUNITIES
NEW PLAYERS SUCH AS AMAZON
THREATS
SWHARMFULTo achieving the objectivesHELPFULTo achieving the objectives
OT
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New Strategy
None of the people who took the survey said they buy music online
Songs are priced very high , Rs 6 - 15 per song
5000 downloads a day
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Flipkart in NEWS
$150m in latest funding round by Nasper
Iconiq Capital - another new investor
Tiger Global and Accel Partners make follow-on
investments
MIH India pumping a little over $90 million
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Suggestions
Monthly foreign magazine e.g. Man U magazine Loyalty program, combo offers
Music instruments
Outdoor kits, posters, sporting event DVDs
Greeting Cards
Sponsor an Inter School Literary Competition toencourage students to read
Along with book ordered, send some more books (popular and related ) with the courier guy to show tocustomers
Flyte, digital music sales channel of Flipkart can havea relook at the prices
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References
www.flipkart.com http://thenextweb.com/in/2012/08/13/digital-music-takes-indias-flipkart-
flyte-soars-past-600000-downloads-6-months/
http://timesofindia.indiatimes.com/tech/news/internet/Flipkart-raises-150m-in-latest-funding-round/articleshow/15674360.cms
http://www.quora.com/Is-Flipkart-making-a-profit http://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-
launches-its-operations-in-India
http://blog.flipkart.com/2-new-features-cash-on-delivery-online
http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/
http://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspx
http://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.html
http://www.flipkart.com/http://thenextweb.com/in/2012/08/13/digital-music-takes-indias-flipkart-flyte-soars-past-600000-downloads-6-months/http://thenextweb.com/in/2012/08/13/digital-music-takes-indias-flipkart-flyte-soars-past-600000-downloads-6-months/http://timesofindia.indiatimes.com/tech/news/internet/Flipkart-raises-150m-in-latest-funding-round/articleshow/15674360.cmshttp://timesofindia.indiatimes.com/tech/news/internet/Flipkart-raises-150m-in-latest-funding-round/articleshow/15674360.cmshttp://www.quora.com/Is-Flipkart-making-a-profithttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://blog.flipkart.com/2-new-features-cash-on-delivery-onlinehttp://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.htmlhttp://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.htmlhttp://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.htmlhttp://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.htmlhttp://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.htmlhttp://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.htmlhttp://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.htmlhttp://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.htmlhttp://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.htmlhttp://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.htmlhttp://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.htmlhttp://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.htmlhttp://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.htmlhttp://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.htmlhttp://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.htmlhttp://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.htmlhttp://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-books-online/1/20797.htmlhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspxhttp://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-payment-cod/http://blog.flipkart.com/2-new-features-cash-on-delivery-onlinehttp://blog.flipkart.com/2-new-features-cash-on-delivery-onlinehttp://blog.flipkart.com/2-new-features-cash-on-delivery-onlinehttp://blog.flipkart.com/2-new-features-cash-on-delivery-onlinehttp://blog.flipkart.com/2-new-features-cash-on-delivery-onlinehttp://blog.flipkart.com/2-new-features-cash-on-delivery-onlinehttp://blog.flipkart.com/2-new-features-cash-on-delivery-onlinehttp://blog.flipkart.com/2-new-features-cash-on-delivery-onlinehttp://blog.flipkart.com/2-new-features-cash-on-delivery-onlinehttp://blog.flipkart.com/2-new-features-cash-on-delivery-onlinehttp://blog.flipkart.com/2-new-features-cash-on-delivery-onlinehttp://blog.flipkart.com/2-new-features-cash-on-delivery-onlinehttp://blog.flipkart.com/2-new-features-cash-on-delivery-onlinehttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-Indiahttp://www.quora.com/Is-Flipkart-making-a-profithttp://www.quora.com/Is-Flipkart-making-a-profithttp://www.quora.com/Is-Flipkart-making-a-profithttp://www.quora.com/Is-Flipkart-ma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