FlipkartThe online Megastore

Submitted By

Piyush Kapoor 2K14G065

Shreya 2K14G091

Bragadesh 2K14G025

Shalvika 2K14G087

Jobin 2K14G045

Submitted to:

Dr. Surabhi Goyal

Content Introduction

Overview of the companyAbout the company History Current status of the company

Environmental analysisInternal environment Macro Micro

Current and marketing strategySTP Analysis 4 P’s of Flipkart PLC of Flipkart

Conclusion

Introduction• Flipkart- Worlds top 10 most visited E-commerce website in

India with regards to traffic.

• Multiple payment methods available for customers to make payment more easy.

• Also know as the Indian Amazon

• Fastest growing e-commerce website in India

• It sells nearly 30 products per minute.

Overview of the company

Founded in 2007 by Binny Bansal & Sachin Bansal.

Started with selling of Books,

Operation exclusive to India, with HQ at Bangalore, Karnataka

First book sold- “Leaving Microsoft to change the world” by john Wood

Later expanded business in other products like • Electronic goods

• Apparels

• Home and kitchen appliances etc.

History

AcquisitionsWe Read

2007-A Social Book discovery Tool

2010

Mime 360A digital content platform company

2010

Champak.com A Bollywood news site which offers updates, pictures videos etc.

2012

Letsbuy.com An e-retailer in electronics

Myntra AcquisitionThe Great Bansal Wedding (2014)

• 22nd May2014• Flipkart acquired Myntra for 2000 crore. • Future investment of 600 crore in the fashion

industry by Flipkart

Myntra Acquisition

Plan Behind it!!!

The vision Working

• To become the global leader in the fashion industry

• To eradicate the competition because to the other competitor in the market like Snapdeal Amazon etc.

• Myntra will operates as other entity of Flipkart under the umbrella brand

• The CEO of Myntra Mukesh Bansal will join the Flipkart board and head the fashion division of Flipkart

Current Status of the company • Started with a funding of INR 4,00,000 by the owners

and now a billion dollar company.

In 2013:

• Flipkart Raised USD 160 Million from private equity investor

• Flipkart is operating online since the beginning of the company

In 2014….. The big innings • First offline store opened in Bangalore named fliptomania

• Company is going ahead with more offline store in Metro cities like Delhi, Kolkata, etc.

Environmental Analysis

• Internal Environment • Micro analysis • Macro analysis

Internal environment- Core Competency

• On time product delivery by its own logistic company

• Attractive payment modes

• Attractive & Hourly discount Coupons

• Advance search engine optimization

• Customer database management

Mobile app availability for mobility customer

Internal Environment

Capabilities Company policy

• Founders had a prior working experience with Amazon.

• Used their work experience in their own company

• With a better strategy

• A broader vision

• A need to become CEO’s

• EMI Option availability

• 24*7 customer support

• Customer satisfaction

• Major focus on packaging

• Customer reviews

Micro Analysis

Company Name

Industry type Started Employees Alexa rank

Slogan

Flipkart Online market place(Private)

2007 10000 110;7 India

The online megastore

Snapdeal Online market place(Private)

2010 2000+ 291;15: India

Bachate raho!

Amazon Online market place (Public)

1995 132600 (July 2014)

10 We sell stuff

Myntra Online (Private)

2007 201-500 258 India’s largest online fashion store

Shopclues Online Market place(Private)

July 2011 500-1000 730 India: 57

India’s first and largest managed market place

Micro Analysis- Suppliers & Intermediaries

Supplier or merchants What merchant gets!!!

Open platform for everyone to become merchant

Required a product portfolio to get registered as a merchant on Flipkart

Product is placed depending on the category of the product.

Product undergoes a Quality check by the company itself before getting live

• Brand name visibility

• Quick and easy access by the customers

• Increase in the sales by reaching out customers.

• Also brand presence on social networking sites.

A WIN-WIN situation for both the parties

Micro Analysis- Stakeholders

Flipkart Stakeholders

MIH & ICONIQ Capital

Tiger Global

Accel India

Initial by

owners

INR. 400000

US $1 Million

US $10 Million US $ 20 Million

US $ 150 Million

100

300

500

700

900

1100

Investment

Fu

nd

ing

in

US

D M

illion

Flipkart- Stake holders

Macro AnalysisPEST

Political Economical

• More focus by the government in increasing computer literacy.

• Penetration of government official in the digital world for their promotional activities.

• Increase in income level and standard of living

• Busy life schedule result in increase in online purchase

• Better internet excess through mobiles

• Less taxes in online purchase.

Social & Culture Technological

• Word of mouth promotion. • Better use of social media platform

for promotion of other product• Increase in computer literacy• Better customer feedback. • Increase in the security levels for

making online purchase.

• Best search engine optimization • Proper placement of advertisement

of products• Increase in the use of internet • Mobile App for different platform • Integration of various payment

gateways like PayPal, bill desk etc.

Pest Analysis- Environment Healthy

Political Economical

• Strictness in rules by the government (earlier)

• RBI for making online payment more complex for security

• Better deals available with the competitors in less price.

Social & Culture Technological

• Negative feedback by the customers on the social media front

• Various type of same products effecting selection of product by customer.

• More promotion done by the competitors at the social & Digital front.

• Less internet knowledge in rural areas

• Security issues with the online payment methods

• Long payment methods for making online payments

Pest Analysis- Environment un-Healthy

Current Marketing Strategy

STP analysis and 4 P’s of Flipkart

STP analysis- Segmentation

2005 2006 2007 2009 2010 20120

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

Internet user growth rate

Internet user growth rate

Source: http://www.internetworldstats.com/asia/in.htm

Segmentation Flipkart segments market on the basis of

◦ Internet users ◦ Shoppers ◦ Young generation ◦ Educational institutes

34%

39%

18%

6%3%Internet user w.r.t age

15-2425-3435-4445-5455+

Targeting

Psychographic Demographic

Whom to target? Youth generation

Current buyer

Educational institutes

Socially connected people

Internet friendly people

Shopaholic (discount keen people)

How to differentiate? Different section for men

Different section for women

Different section for kids wear depending upon the age like◦ 0-2 yrs.◦ 2-4 yrs.◦ 4-8 yrs.◦ 8-12 yrs.◦ 12 and above

Targeting (Contd…)

Geographic Contribution

More focus in metro cities near to airports.

Much focus on tier-1 cities

Only focus in India

Maximum contribution of sales from tier -1 cities.

Less contribution by rural area due to lack of internet knowledge

55%21%

16%

8%

Sales

Tier 1Tier2Tier 3Rural

Positioning

Value added services Advertising

Cash on delivery

EMI option

30- Days replacement policy

E wallet and e Vouchers

User friendly interface

Marketing campaign like no kidding no worrying

Using Google Ad Choices

Promo coupons

SEO

One hour sale

Marketing mix 4 P’s of Flipkart

Product

Various products in all the categories have given a chance to all other brand to compete with each other for there brand and customer attraction

Wide range of products categories: Electronic good Apparels Home and kitchen

appliances Men’s and women’s

accessories Computer peripherals

◦ Software's ◦ Hardware's

Books and media Sports store Baby and kids section

◦ Wear outs differentiated on the basis of age. Girls Boys

◦ Foot wares Girls Boys

◦ Baby care

All major inventory are located near to the airports.

Major warehouses are located in Bengaluru(headquarters), Chennai , Delhi, Hyderabad, Mumbai, Noida, Pune, Kolkata

Biggest advantage- Nationwide reach to all sellers of different sizes

Covers all tier-1 tier-2 tier-3 cities.

Place

Promotion

In promotion Flipkart uses a new tool know as AFFILIATE MARKETING in which it earns revenue from different brand for placing their ads in the hot deal section for better presence.

Much less price then other e-commerce websites

Availability of E wallets and E-Gifts

EMI option for specific products

Discounted coupons Free shipping facility Special discount and

promotional codes for the loyal customers.

Above the line promotion:◦ TV Advertisement◦ Radio jingles ◦ Print ads

Below the line promotion:◦ Word of mouth ◦ Bulk mailing ◦ In app push notification

Through the line promotion:◦ Social media marketing/

campaign

Price

Product Life cycle Flipkart

500

1500

2500

3500

4500

5500

Revenue (in millions)

Axis Title

• Flipkart is currently in growth stage

• Sales revenue is increasing every year

• Sooner there will be a cut throat competition in the market after a huge success of Flipkart as certain foreign players are also coming into the market like amazon, Yebhi etc.

S.W.O.T analysis

Str

ength

s

Weakn

ess

Str

ength

s

Weakn

ess

• 24*7 Customer support service .• Price reduction or discounted price. • Better Search Engine Optimization • Advance advertising and promotion.• Multiple payment method. • EMI option availability • E voucher and e-gifts

• Less internet knowledge in the small cities • Less penetration in the small cities • No delivery to remote areas. • Negative perception about online

transaction.

Thre

ats

O

pp

ort

un

ity

• Global availability & accessibility.

• More lucrative discounts to attract customers.

• Provide mobile application which can run without or minimum usage of internet connection

Penetration of new players in the market like: Amazon

Snapdeal

EBay

Shopclues

Conclusion and Recommendation

Conclusion and Recommendations

Conclusion Recommendation

One of the leading E-commerce portals of India.

Customer satisfaction is the major concern

“God of distribution”

As e-commerce market is booming up rapidly we all are going to see some more companies like Flipkart in the near future

Provide more higher discounts on products than competitors

Enter into the global market and have global reach

Provide more brick and mortar outlets like FLIPTOMANIA

Increase reach in rural area

Educate people about online purchase & security

Increase umbrella selling of products

www.flipkart.com www.wikipedia.com www.economicsonline.org www.medianama.com www.techcirlce.vcircle.com

Bibliography

Thank You!!!