ORGANIZATIONAL COMMUNICATION

GROUP 18

A Case Study On

By : Arpit Singhal 12MF3IM03Sumit Kumar 12MF3IM15Vishal Trivedi 12MA20050Sourav Kumar 12MA20043Govind Singh Dhakar 12MT10014

Overview• Flipkart – One 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• Offer multiple payment online• Path breaking services• Among the top 20 Indian website in term of traffic• Regarding as the Amazon of India

Journey So Far• Sachin Bansal & Binny Bansal graduated from IIT-Delhi with a degree in Computer Engineering was

working for Amazon.com before quitting and launching their own company Flipkart.com• Flipkart was launched in 2007 with the objective of making books available to everyone who had

internet access• The company sold its first book on flipkart.com-John Wood • In 2010 branched out to selling CDs, DVDs, mobile phones and accessories, cameras, computers,

computer accessories and peripherals, and in 2011, pens & stationery, other electronic items such as home appliances, kitchen appliances, personal care gadgets, health care products etc

• Further in 2012, Flipkart added A.C, air coolers, school supplies, office supplies, art supplies & life style products to its product portfolio

• Flipkart broke even in March 2010 and claims to have had at least 100% growth every quarter since its founding

Evolution of LOGO

TAGLINE- “ The Online Megastore “

Core Purpose

To make shopping delightful for everyone

By offering the widest choice of products, at disruptive prices, backed by unparalleled service to customers.

Flipkart’s Value For Success

Customers First

Independence of Thought

Pursuit of Excellence

Opportunity based on Merit

2020 Vision

To be a $20 billion company by the year 2020.

To change the way people shop and therefore the way people live◦ One in four Indian families will have experienced the delight of shopping with Flipkart

Our brand of customer obsession coupled with our ability to do ‘more with less’, will have become the ‘way to go’ for an entire generation of entrepreneurs. They will be inspired by our use of technology and automation to create efficient business processes and solutions.”

INTERNAL COMMUNICATION

• They have a horizontal Communication model• They have made separate departments and decisions are taken independently on their respective goals and

objectives as shown in the organizational structure• Every Department also caters to the needs of other department

Engineering Department

Marketing DepartmentHorizontal

Communication

COMMUNICATION MODEL

Structural

Sachin Bansal

Binny Bansal

Karandeep Singh

Flipkart CFO

Ravi Vora

VP

(marketing)

MekinMaheshwari

President (engineering)

Ankit Nagori

VP (categories)

Sameer Nigam

VP (digital business)

ManeeshMittal

VP (operations)

Sujeet Kumar

President (operations)

ORGANIZATIONAL STRUCTURE

Decision making process

Evaluation of Alternatives

Customer perceived value

Wider range across all categories

Purchase Decision

Faster turn around time

Cash/Card on Delivery

Easy Return Procedure in case DOA

Post- Purchase behavior

Feedback on Flipkart website and other blogs

Word of Mouth

Affiliate

EXTERNAL COMMUNICATION

INTER ORGANIZATIONAL COMMUNICATION

Amazon, Snapdeal, E-bay, Etc.

• More than 600 Sellers• Strong Administrative

position• Manipulate them

Offline Shops and Showrooms

• New Upcoming Enterpreneurs• Helps them in their growth

• Marketing Strategies• Caters to the need of customers

PEST Analysis of External Communication

Government support for increasing penetration in India, Tax benefits to corporates, Increase in stock

holding % for foreign investors in companies (2012) Resistance against foreign retailers

Booming Indian Economy, Increasing spending power, Sky rocketing fuel prices, Base of internet

users multiplied by 10 times in 6 years

Better comfort level and trust in online shopping, High priority on time and convenience , Improving

usage of broadband and high computer literacy.

Advent of mobile shopping, Increasing penetration rate of broadband and wireless internet, Better managed E-Commerce site for ease, privacy and

advancements in net banking

Political Economical

Social Technological

Customer Relationship Management

A Customer Centric Approach To Management

Flipkart can be said to be the pioneer in initiating the sceptical Indian shopper into online retailer

The customer is informed at every step through e-mail/text when the order has been confirmed⇾ order summary & shipment details + tracker ⇾ informing customer if order has been delayed

Customer complaints are quickly addressed and there are transparent return and exchange policies

Customer Relationship Management

Strategic CRMThe company philosophy echoes in their tagline “making better our service promise”. The founders believe that huge discounts alone cannot sustain a successful business, customer satisfaction and preferences need to be addressed to keep the flame going.

Providing good customer service enables Flipkart to enjoy high levels of customer satisfaction, generate repeat business and ensure positive word-of-mouth

The CloudCloud-based software and services are everywhere these days and the cloud has both benefits when applied to CRM

Cloud-based solutions typically feature low initial entry costs and simpler set-up and maintenance

CORPORATE STRATEGY-ACQUISITIONS2010: 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

2014 : Myntra.com is India’s largest fashion brands e-retailer for an estimated Rs. 2000 Crore

PRODUCTS & SERVICES

Electronics & Clothing

Books & Media

Sports & Fitness

COMPETITORS

COMPETITORS (Books Market)

MARKETING STRATEGIES

Flipkart has done extensive work in creating their USP in the ecommerce

segment. Selling of books over internet in India was the 1st USP of Flipkart as this

medium wasn’t available at the launch of Flipkart. It is known for opening up the Indian e-commerce market and in a big

way.

Flipkart has adopted almost all and even more propositions, created compelling reasons for people to buy items from them. Be it:• Lowest price seller• Only one selling• Addictive engaging by its user interface• Delivering goods at lightning speedAnd many more

But placing the above marketing strategies has its own challenges like:• How would people visitFlipkart.com?• How would visitor be converted to consumer?• How to effectively communicate with customers

and prospects?

They have worked upon all the possible solutions viz:

1. SEO (Search engine optimization)

2. Pay-per-click advertising

3. Offline display advertising

4. Affiliate marketing programs

5. Social media campaigns

6. Public relations

7. Email campaigns

8. Contests

9. Giveaways

Few of the practical approaches that Flipkart has taken for marketing and making its brand position as a part of Marketing strategy are

1. Free Home Delivery

2. Cash on Delivery

3. Fast, safe and free delivery

4. Discount shopping

5. User friendly and attractive interface

6. Authentic and more variety productsReplace policy in case of defects

7. Variety of payment options

8. A robust customer service in terms of information and product available

9. Emotional connect

10.Social media presence

11.24*7 customer service

12.Consignment model

13.Robust logistics

14.Well oiled warehousing and delivery system

Ad Campaigns

It uses cute kids playing the roles of an adult with real adult voices

The idea of using kids stemmed from the fact that no one trusts you like children

It stresses on highlighting vital benefits of shopping on Flipkart.com viz, cash on delivery, 30 day replacement policy, and guarantee of original products

The ads also display the entire gamut of new product categories such as cameras, mobile phones, and tablets that are now available on the site

PRINT ADs

SHOWS ORGANIZED BY FLIPKART

MOBILE APPS

Television Commercials

The message is very clear to make people more comfortable with Flipkart, to generate a great customer relationship and loyalty on the basis of great product prices and excellent customer service. All in all to create a great customer experience

ANALYSIS

PRIMARY ANALYSIS

05

10

15

20

25

30

20 2225

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

PRIMARY ANALYSIS

62%

29%

9%

USP of Flipkart

Cash/Card onDelivery

Easy to Order

Easy to replace

0

50

100 77

4 102 7

Competition

STRENGTHS

ONLINE BRAND FOR GLOBAL ONLINE AUCTION SUPPLY CHAIN MANAGEMENT ADVERTISEMENT AND PROMOTION STRATEGIC AQUISITION HUGE REACH FORMAT OF WEBSITE

WEAKNESSES

DELIVERY INTERNET PENETRATION PAYMENT GATEWAYS HIGHER COST SYSTEM BREAKDOWN EFFECTS TRADING ACTIVITIES

OPPORTUNITIES

GROWTH IN E-TAIL GROWTH IN E-BOOKS CULTURE MOBILES APPS BROADBAND PENETRATION TO CAPTURE INDIA’S FASTEST GROWING DIGITAL MARKET IN THE

WORLD

THREATS

BIG PLAYERS SUCH AS AMAZON, SNAPDEAL COMPETITION FROM LOCAL SHOPKEEPERS AND VENDORS FDI INVESTMENT POLICIES

SWOT Analysis

CRISIS FACED

BIG BILLION DAYGOALS:

Date:6-10-2014

Target for Sale US$ 100 million

Time set for 100 million sale.

Promised discounts on the

Big Billion Day -Flat 90%.

BIG BILLION DAYACHIEVEMENTS:

Achieved Sale in 10 hours - US$! 100M

No. of hits in 10 hours -1 Billion

No. of orders in first 6 hours- 300,000

Lowest Price of an item - 1 Rupee

BIG BILLION DAYPROBLEMS FACED:

Price change of several products.

Out-of stock issue for many products within a minute or even seconds.

Cancellations of orders as it was over-booked

Website issue

STRATEGIC ATTACK OF COMPETITORS

BIG BILLION DAY

Apology by the Co-founders (CRISIS COMMUNICATION)

Everything that we have achieved at Flipkart is purely on the basis of our customer’s trust and faith. This is why we come to work each day and continue to remain extremely passionate about building the best possible customer experience for Indian consumers. We failed to live up to this promise yesterday and would like to apologise once again to every single customer for our failure.

SUGGESTIONS FROM OUR SIDEFlipkart should have tried a trial run before the actual launch of the Big Billion Day

They should have done a market analysis and plan their event strategically

Flipkart should focus on more servers for the customers catering to the heavily increasing customers hits on their website

Flipkart should have put a backup plan, informing customers the unavailability of products as soon as they went OUT-OF-STOCK

They should have addressed their customers on every social networking sites

REFERENCES:www.flipkart.com

www.google.co.in

www.Wikipedia.com

www.socialsamosa.com

www.slideshare.net

www.theviewspaper.net