FLIPKART

CONTENT

COMPANY OVERVIEW

FUNDING

ACQUISITIONS

VISION , MISSION & OBJECTIVE

PRODUCTS PORTFOLIO

ORGANIZATION STRUCTURE

MARKET SEGMENTATION

LOGISTICS

AMAZON VS. FLIPKART

MARKETING STRATEGIES

PROMOTIONAL SCHEMES

MARGIN & FINANCE

RECOMMENDATIONS

COMPANY OVERVIEW• FLIPKART IS AN E-COMMERCE COMPANY FOUNDED IN 2007, BY SACHIN AND BINNY BANSAL.

• INITIAL INVESTMENT WAS RS.4 LACS ($9000)

•  IT OPERATES EXCLUSIVELY IN INDIA, WHERE IT IS HEADQUARTERED IN BANGALORE, KARNATAKA.

• ACCORDING TO ALEXA INTERNET, FLIPKART'S WEBSITE IS ONE OF THE 10 MOST VISITED WEBSITES IN

INDIA.

• FLIPKART HAS LAUNCHED ITS OWN PRODUCT RANGE UNDER THE NAME "DIGIFLIP", OFFERING CAMERA

BAGS, PEN-DRIVES, HEADPHONES, COMPUTER ACCESSORIES, ETC.

• FLIPKART SELLS GOODS IN INDIA THROUGH A COMPANY CALLED WS RETAIL.

• OTHER THIRD-PARTY SELLERS OR COMPANIES CAN ALSO SELL GOODS THROUGH THE FLIPKART PLATFORM.

FUNDING

Initially funded by the Bansals themselves with 4 Lakh(INR).

Flipkart has since then raised two rounds of funding from venture capital funds Accel India (in 2009) and Tiger Global Management (up to the tune of US$10 million) (in 2010).

The current worth of Flipkart is $7 billion.

ACQUISITIONS

2010: “We Read”, a social book discovery tool.The stated goal was to give Flipkart a social recommendation platform for buyers to make informed decisions based on recommendations from people within their social network.

2011: Mime360, a digital content platform company.

2011: Acquired the rights to Chakpak’s digital catalogue which includes 40,000 filmographies, 10,000 movies and close to 50,000 ratings. Chakpak.com is a Bollywood news site that offers updates, news, photos and videos.

2014: Flipkart acquired the largest online shopping store Myntra for Rs.2000 Crores

VISION , MISSION & OBJECTIVE

Vision

“To become Amazon of India”.

MissionProviding a delightful and memorable customer experience.

Objective “Completely hassle free shopping experience with best prices in India”.

PRODUCT PORTFOLIO• BOOKS

• MOVIES

• MUSIC

• GAMES

• MOBILES

• CAMERAS

• COMPUTERS

• HEALTHCARE AND PERSONAL PRODUCTS

• HOME APPLIANCES AND ELECTRONICS

• STATIONARY

• PERFUMES

• TOYS AND MANY MORE…

ORGANISATION STRUCTURE

Product and technology Business Development Operations

Website Management

ERP System

Vendor Management

Sales Management

Pricing Strategies

Procurement

Warehouse

Logistics

Customer Support

.

• Flipkart has more than 10,000 employees, All of them are allocated in one of the below given departments.

• Sachin Bansal and Binny Bansal are the founder of flipkart.

• The entire organizational structure of Flipkart is organized in three broad teams as depicted below

PRODUCT AND TECHNOLOGY

The product and technology team is the core strength of the company.

The team is responsible for the management of the website as well as the ERP system.

Website is a backbone of any online retail shop and Flipkart’s website is also managed by this team only.

The team manage the entire process right from listing of item to search engine optimization.

BUSINESS DEVELOPMENT

Business development team is responsible for all the activities related to sales including vendor management to pricing and discount strategy.

OPERATIONS

Operations team deals with all the supply chain aspects of the company right from procurement and warehouse management till customer support.

The team support the customers both online via telephone as well as offline via email

MARKET SEGMENTATION

GEOGRAPHIC:

CATERS TO TIER 1, TIER 2 AND TIER 3 CITIES

AGE KIDS – BABY CARE, TOYSTEEN – PLAYSTATION, XBOX, MOVIES, MUSIC GENDERMALE – COMPUTERS, MOBILES AND ACCESSORIES, WATCHESWOMEN – BEAUTY AND HEALTH CARE ,HOME AND KITCHEN

OCCUPATION STUDENT – BOOKS, MUSIC, MOVIES, STATIONARIES TRAVELER – CAMERA, LUGGAGE, BOOKSWORKING – MOBILES, COMPUTERS, WATCHES

LOGISTICS & PRODUCT FLOW25 WAREHOUSES -7 PREVIOUSLY, OTHER CONVERTED FROM DELIVERY CENTRE

60 DELIVERY CENTERS - 35 PREVIOUSLY, OTHERS NEWLY FORMED (AIM TO REDUCE THE TIME OF DELIVERY)

Customer

order

Checked in delivery centre

inventory

Delivery Time 1-2 Days

SUCCESS!!!Sent to logistics body

Checked in the nearest warehouse inventory

Automatic inventory check via Inventory management system

Ordered to the company

YES

Delivery time 2-5 Days

YES

Delivery time 6-15 Days

NO

YES

LOGISTICS

Location of the productIs Identified

Logistic body is assignedCustomer product delivery location (Delivery cost-Free If ordered > 300 Rs. Else Rs. 30 Extra)

Automated Software Sends Information about the product Delivery to these logistics body

AMAZON VS. FLIPKART

MARKETING STRATEGIES • Flipkart has been mostly marketed by word of mouth advertising.

• Customer satisfaction has been their best marketing medium. 

• Flipkart very wisely used SEO (Search Engine Optimization) and Google Ad-words as the marketing tools to have a far reach in the online world.

• Flipkart.com official Face book page has close to 9 lac 'likes'. Flipkart recently launched a series of 3 ads with the tag line - "No Kidding No worries"

• Kids were used to create the adverts to send out the message - if a kid can do it, you can also do it.

• All in all to create a great customer experience.

PROMOTIONAL SCHEMES

• Rebate

• Discounts

• Refunds

• Quantity deals/gifts

• Usable benefits

• Full finance @ 0%

• Combo offers

How are their products less expensive than in retail shops?

Retail store (organized) Online store

Need a shop floor or chain of shop floor.

Managed by centralized warehouses .

Need skilled sales and management staff

Need customer service associates.

Need branding and displays No need for branding and displays of the product

Need to pay overheads such as electricity bill, telephone bill, stationeries etc at every store.

Comparatively less Expensive as overhead are born only for the dispatch centers

Need furniture and equipments which need maintenance at every store

Need few furniture and equipments which requires less maintenance cost

MARGIN AND FINANCE 8-35% On sale price of product

Parameter= Brand, Category margin, Premium margin, Volume, Cost of Delivery, Operating cost margin

High Margin Category

Toys, Watches, Beauty& Healthcare, luggage

Mid Margin Category

Books, TV, Home & Kitchen, Gaming, Belts,Bags

Low margin categoryMobiles & Cameras,Computer accessories

RECOMMENDATIONS

• Enter new international markets which is either un-served or untapped.

• Educate Indian conventional customer by marketing efforts.

• Increase bulk selling and reach to student customers by ties with educational institutes for academic curriculum supplies.

• Reducing delivery time which will in turn increase sales.

• Customer friendly Return Policy