Flip Kart Final

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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/
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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

    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pkart-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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