250925637 Projec on Bluedart IM 2015ASIF

7/21/2019 250925637 Projec on Bluedart IM 2015ASIF

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INTRODUCTION

What is LOGISTICS?

Logistics is about moving materials, information and funds from one business to

another or from a business to the consumer. It is a vital part of the business economic

system and is a major global economic activity. In fact 10-15 per cent of product costs are

logistics related. Worldide, logistics constitutes about !" trillion a year. #or any country,

the logistics cost is estimated beteen $ and "0 per cent of its %&'.

(very company dreams of achieving the seven )*s - delivering the right product in

the right +uantity and the right condition, at the right place, at the right time, for the right

customer at the right cost. (ffective logistics management alone can mae this possible.

Logistics is one of the oldest and also the neest activities of business management. It

involves combining diverse functions and service providers ho may be culturally and

objectively different.

In the past, +uality of products and services as the ey differentiating factor for

companies operating in the same maret. In due course, +uality and lo cost became the

inning combination.

oday, responsiveness to the customers* needs is the determining factor. n enterprise

that caters instantly to the needs of the customer is the inner. Integrated logistics can

serve as a potent tool for success in today*s competitive business environment.

Logistics is an organi/ed process of managing the flo of merchandise from the source

of supply - the vendor, holesaler or distributor - through internal processing functions

lie arehousing and transportation, until the merchandise is sold and delivered to the

end customer.

Logistics management aims to reduce inventory-holding costs and improve profits, hile

enhancing customer satisfaction.

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nything can be ordered online, but receiving a tangible product is impossible. he

difference beteen e-business success and failure lies in a company*s ability to manage

the logistics.

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History of Logistics

he %rees defined logistics as the science of correct reasoning by means of

mathematics. he first modern use of the term as in the military to identify the process

of planning and coordinating the movement of army and eapon support systems. %ood

logistics brings out the ability to move faster and accurately to the battlefront. If one

applies the same to the business organisation, it is one*s ability to reach the product to the

consumer at the right time, right place, right +uantity and at the loest cost.2 3n similar

lines, supply chain management ill mean the netor of organisations involved in the

process by hich goods are moved from producer to consumer and the counter flo of

information, to manage the supply chain as a single entity.

prominent application of logistics as in World War II here eapon movements ere

coordinated to ensure success. recent instance of massive logistics initiatives is in the

%ulf ar. With increasing competition in the maret place, managements started focusing

on customer services in the early 1$50s in developed marets such as (urope and the

4.. In late 1$60s some of the logistics concepts ere tested. #olloing the oil crisis ofthe 1$70s and the concept of just in time in manufacturing customer-servicing standards

ere given more importance and ne integrated logistics models and solutions ere

born. he emergence of organi/ed distribution system by department stores and super fast

courier service organisations gave a boost to logistics concepts and strategies. oday all

businesses are looing for seamless transaction systems to co-ordinate their information

and material re+uirements along the value chain.

t the micro level any manufacturing and mareting company spends 5 - 85 per cent of

sales on logistics. he major cost components are transportation, arehousing and

inventory carrying cost. Improvements in logistics get reflected in a reduction in

inventory levels, shorter delivery schedules, and improved servicing standards ith

significant savings in total costs.

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Logistics Management Process

9ichael 'orter in his famous boo :ompetitive dvantage** has spoen of the value

chain approach and emphasi/ed logistics as one of the most important tools for

competitive advantage.

he various processes and elements that are part of logistics as a discipline are;

Ino!n" #ogistics; 'urchasing, Inbound transportation, Inventory 9anagement.

Man!fact!ring; 'roduction planning systems, 9achine scheduling system.

O!to!n" #ogistics; 3rder booing process, &istribution management, outboundtransportation, and Warehouse management systems.

s customers started demanding improved servicing standards, fast cycle time has

become the ey factor for business success, hether it is custom made tailoring service in

efore delving deep into logistics, a loo at the current business scene ill be great help.

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Scenario of Logistics in In"ia

t present, companies specialising in logistics operations in India use traditional

technologies and cater to stand alone services lie transportation, arehousing, clearing

and forarding. here is tremendous scope to upgrade the technology, integrate the entire

supply chain, improve productivity levels and bring don operating costs. ny

technology that can improve productivity in transportation operations ill be a great

boom to the economy both directly and indirectly ith opportunities for 10-1" per cent

reduction in costs. >esides the savings on donstream users of transport ill be much

higher and the cost multiplier effect on the economy ill be reduced to that e?tent.

%iven the emerging business and technological trends there are possibilities for adoption

of innovative logistics solutions specifically designed for India. In addition, there is a

re+uirement for an integrated strategy toards developing logistics and its related I

infrastructure and also enhancing its industry base.

In recognition of the groing need for technology-enabled solutions in logistics in India

and abroad, many companies such as eLogistics are taing shape. In fact, there are a

do/en multinational logistics companies such as (?el, >a? %lobal and 9enlo hich havestarted operations in India during the last fe years.

oday logistics management in India has become comple? ith about ten million related

outlets to cater to the needs of 1000 million people.

he logistics maret in India is estimated to be )s. "60,000 crores and constitutes 18 per

cent of the %&'. It is much higher than for the 4.. but loer hen compared to

countries lie :hina and =orea.

reduction in logistics costs by one percentage point ill mean a saving of [email protected] billion

or )s. "1,600 crores annually.

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>esides significant benefits can be reaped through the multiplier effect of better logistics

on all economic sectors.

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Cor$orate

Profi#e %&OUT &LU' D%RT

>L4( &) is outh sia*s leading integrated air e?press carrier and premium logistics-

services provider. It has the most e?tensive domestic netor covering over 18,AA0

locations, and service more than ""0 countries and territories orldide through its ales

alliance ith &L4(&)B vision is to establish continuing e?cellence in delivery capabilities

focused on the individual customer. In pursuit of sustainable leadership in +uality

services, they have evolved an infrastructure uni+ue in the country today.

tate-of-the-art echnology, indigenously developed, for rac and race, 9I, ()',

:ustomer ervice, pace :ontrol and )eservations.

>lue &art viation, dedicated capacity to support their time-definite morning deliveries

through night freighter flight operations.

Warehouses at 1@ locations across the country as ell as bonded arehouses at the 6

major metros of >angalore, :hennai, &elhi, 9umbai, =olata and


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It(s Com$etiti)e %")antage #ies in*

!e "art(s )ast an" !n$ara##e#e" Domestic Net+or,

Lined by some of the most advanced communications systems and positioned to offer a

consistent, premium, standardi/ed +uality of service.

% s$ectr!m of ser)ices to $ro)i"e c!stomi-e" so#!tions.

>lue dart is the only e?press carrier in the country today hich offers an entire range of

services that e?tend from a document to a charter-load of shipments. Its services are

relentlessly monitored to deliver a net service level of $$.$6D Eas on #ebruary, "005F.

It(s C!stoms an" Reg!#atory e/$ertise

:ompany had a dedicated team of specialists ho provide the e?pertise for customs as

ell as regulatory clearances at all tates ithin the country, to support seamless service

to the customer.

It(s Techno#ogy

&esigned to enhance the reliability of our operations and process efficiency, and add

value to the customer through time and cost savings.

It(s %ir Net+or,

he only one of its ind in the country today, that is focused on carriage of pacages as

its prime business, rather than as a by-product of a passenger airline. dedicated aviation

system to support >lue &art*s services is self-sustaining, ith its on bonded

arehouses, ground handling and maintenance capability.

Its financia# cre"ii#ity

#itch )atings India 'vt. Ltd. has assigned the highest #1G EIndF H# one plus EIndF

rating for their short term debt programme of )s. 80 crores. #urther, I:) Ltd. has also

assigned the highest 1G Epronounced one plusF )ating for their :ommercial 'aper

'rogramme of )s. "5 crores.

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Its Peo$#e force

:ommitted, diverse and over @,000 strong are companyBs most valued asset. ll

companyBs achievements have been possible because they have a team ho believes in

themselves and their company, a team ith a inning attitude. >lue dart is a learning

organi/ation, valuing self-development, and most of companyBs managers are

homegron.

MIL'STON'S

0123*

=hushroo &ubash, :lyde :ooper, and ushar Jani establish >lue &art :ourier ervices

ith a capital base of )s; 80,000. hey forge ties ith %elco (?press International 4.=.,

and introduce India*s first international air pacage e?press service.

0124*

>lue &art :ourier ervices becomes a %lobal ervice 'articipant of #ed(? ith the

ac+uisition of %elco (?press International by #ed(?. >lue &art :ourier ervices is the

first carrier in India to provide domestic and international on-board couriers, a hub-and-

spoe system and a 10.80 a.m. delivery service.

0122*

>lue &art :ourier ervices establishes real-time, on-line tracing for all international

shipments through :393, the #ed(? trac and trace system.

0110*

>lue &art (?press is registered as a private limited company, and introduces its

economical logistics service option, &art urfaceline. It indigenously develops its

domestic tracing system, :39-I9.

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0115*

>lue &art (?press 'vt. Ltd. connects its in-house domestic (-mail netor, and sets up

its employee satisfaction programme - urvey #eedbac ction E#F.

0114*

>lue &art (?press Ltd. goes public ith an e+uity offer of ".55 million shares, at a

premium of 1@ times, orth )s; 8A".5 million. >lue &art (?press Ltd. launches &art

pe? E&omestic ir 'acage (?pressF, a multi-modal, premium pacage delivery

service, and :39-II9, an advanced system hich includes trac and trace. >lue

&art viation is registered as a public limited company and becomes the first private

company to receive government permission for operation of cargo aircraft in India.

0116*

>lue &art viation ac+uires " >oeing 787-"00 freighters and receives 3 permission.

>lue &art (?press Ltd. develops its 9) Epace 9anagement llocation

)eservations and racingF system for its aircraft, the first cargo management system in

the country. >lue &art (?press Ltd. is aarded the %lobal ervice 'articipant ales

ard by #ed(? for outstanding sales performance.

>lue &art, :alcutta is proud to have the office inaugurated by 9other heresa of the

9issionaries of :harity, and Kobel 'eace 'ri/e Laureate.

0117*

>lue &art viation launches India*s first jet e?press airline. >lue &art (?press Ltd*s

turnover crosses the )s; 1 billion mar, as it e?pands its domestic netor by entering

into strategic alliances in Korth, outh and West India. >lue &art (?press Ltd. is the first

e?press company in India to receive an I3 $001 certification, and post its ebsite on the

internet. >lue &art (?press Ltd., #ed(? and the


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0118*

>lue &art (?press Ltd. signs agreements ith leading international airlines for

distribution of bonded cargo ithin its netor. >lue &art viation launches its domestic

charter operations.

0112*

>lue &art viation develops India*s first Load and rim softare for its >787# flights.

>lue &art (?press Ltd. launches 9)>3, its economical, pacaged door-to-door

product, and e?tends its delivery to over 1000 locations.

0111*

>lue &art (?press Ltd. moves to its state-of-the-art dministrative, echnology and

3perations uper hub, the >lue &art :entre, at 9umbai. t close pro?imity to both the

international and domestic airports, encircled by four five-star hotels, and e+uipped ith

the latest technology, the uper hub has improved efficiency and increased load-handling

capacity multifold. >lue &art (?press Ltd. Launches 'oer &art "000G, a softare that

provides customers free connectivity to its database, enabling customers to trac and

retrieve all information related to their shipments.

5999*

>lue &art viation ac+uires its 8rd aircraft on lease. he aircraft is scheduled for

operations on the >angalore-&elhi->angalore sector. >lue &art (?press Ltd. also

revamps its ebsite replacing it ith an interactive ebsite to support e-trade and

commerce and facilitate customer interface on the net.

5990*

>lue &art launches its 8rd aircraft operations on the >angalore-&elhi->angalore sector.

he :ivil viation 9inistry re+uisitions >lue &art aircrafts for relief operations into

earth+uae-battered >huj in %ujarat. echnology tools and customer softare -

9obile&art, 3n-Line 'ic 4p and hip&art - are developed in-house and launched. >lue

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&art declares 1;1 bonus shares. >lue &art, =olata moves into heritage building, =ana,

its ne premises inaugurated by r. Kirmala of the 9issionaries of :harity.

5995*

>lue &art is re-certified as one of a handful of Indian companies to the ne global I3

$001 - "000 standards for &esign, management and operations of countryide e?press

transportation and distribution service ithin the Indian ubcontinent and to international

destinations serviced through multinational e?press companies. >lue &art ends its

contract ith #ederal (?press and signs a path-breaing ales lliance ith the World*s

Ko. 1 international air e?press company, DHL Wor#"+i"e '/$ress. >lue &art crosses

100,000 shipments per day.

5993*

"008 - >lue &art ac+uires its fourth >oeing 787 freighter. With a thrust on strengthening

infrastructure, >lue &art establishes telve of its on offices in the outh, delivering to

an additional 1$A locations, e?pands its hub at >hiandi and sets up a bonded arehouse

in 9umbai. he company is selected a uper brand from over 700 brands across $A

categories by a jury of eminent mareting and advertising professionals. he company

celebrates its "0 years of service to the nation on 1$th Kovember "008

5994*

>lue &art inducts its @th aircraft into operation on 17th 9ay "00@, connecting lue &art (?press Limited. >lue &art continues to operate as an independent

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brand and provides a complete spectrum of domestic and international e?press services

through synergies ith &lue &art ould also leverage its vast customer base for global

distribution through its alliance ith &


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LOGISTICS IN &LU' D%RT

he Information echnology industry is, perhaps, typical of the changing and escalating

logistic demands of various industries today, irrespective of their category as *old* or *ne*

economy. In the I industry, the difference beteen success and failure is closely lined

to the supplyMvalue chain integration, of hich there are to distinct processes;

1. he delivery of goods to the customer in the most reliable transit period Eand

preferably the shortestF possible. *)eliable* alludes to a certain guaranteed transit time for

pacages to reach customers or the response that organisations need in the event of any

e?ceptions.

". he reverse flo of acnoledged signed delivery records ithout hich, in many

cases, recovery of bills are virtually impossible. (specially so in the case of companies

placing multi-location orders that could cover hundreds of cities. he tas for the supplier

is staggering - plan logistics for deliveries to all these locations, and hope for 100D of the

delivery records to be returned before bills can be submitted to the customer. In most I

companies, the role of *logistics* or *fulfillment* is ey.

With organisations moving toards close to perfect standards lie i? igma, interaction

ith logistics suppliers has taen on a critical role moving up sometimes to the level of

the :(3 of the organi/ation.

>lue &art (?press Limited applied and found solutions to these critical demands much

before other players could even recogni/e their need. hrough its e?ceptional people

processes, superior technology, and stress on +uality systems over the last, almost to

decades no, >lue &art as +uic to fulfill these needs;

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he country*s most reliable air and surface netor offer a pre-determined delivery

schedule ith close to 100D accuracy. he I industry could plan its production ith

precision and avoid e?pensive inventory build-up.

>lue &art offers the country*s most comprehensive communications technology. 9uch

before the internet as prevalentN >lue &art customers could dial into the netor

through 'oer &art "000 and trac their pacages. s an added option, #a? dart could

fa? a copy of the delivery record the minute the >lue &art system as updated.

he country*s only e?press airline ith a fleet of three >oeing 787s ensured that pacages

ere flon to their destinations overnight. nother tremendous advantage as that the

individual si/e of pacages that could be carried multiplied manifold.

)etrieval of signed delivery records posed the industry*s most intriguing problem. >lue

&art as +uic to understand this re+uirement and put in place a 100D retrieval system.

>lue &art not only handles large volumes and oversi/e pacages overnight - it also

provides the industry ith status of their shipments and retrieves such records as are

necessary for billing. he entire cycle has been considerably shortened, enabling the

industry to achieve healthy bottom-line.

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S'R:IC'S O; &LU' D%RT

R'GION%L S'R:IC'S IN S%%RC %R'%

&et+een In"ia< &ang#a"esh< &h!tan an" Ne$a#.

>lue &art offers the fastest, most reliable, door-to-door e?press

deliveries for your documents and pacages to countries in the ):

region through )egional 'riority. he service offers access to over

18,700 locations in India, and over A00 locations in >angladesh,

>hutan and Kepal, providing the idest coverage in the region through a +uality netor,

an integrated air and ground infrastructure dedicated to e?press transportation and

innovative technology support.

Regiona# Priority* Doc!ments =RPD>

he most dependable and secure delivery for non-dutiable, critical and important

shipments such as legal documents and tenders. he >lue &art (nvelope provides secure

and attractive pacaging for your documents, brochures and reports up to 500gms.

Regiona# Priority* Non@Doc!ments =RPDT#ast reliable and safe door deliveries for samples and non-commerical shipments.

:urrently available beteen India and Kepal only.

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Let see different type of regional services; -

DOM'STIC PRIORITA

he fastest, most reliable, door-to-door delivery

service ithin India and to >angladesh, Kepal

and >hutan for documents and small shipments

under 8"gs per pacage. he special benefits of this service are;

&elivery to over 18,700 locations in India

#ree pic-up from your location

)eal-time racing

)egulatory :learances

#ree :omputeri/ed 'roof of &elivery

D%RT %P'>

&art pe? is a door-to-door delivery service ithin India for

shipments eighing 10gs. nd above. It is the fastest, most

efficient delivery solution for commercial shipments that are

time-bound and are re+uired to undergo regulatory clearances,

or re+uire special handling.

&art pe? offers you an economical option of an irport-to-&oor service from the major

airports of :hennai, >angalore, 9umbai, &elhi, =olata and


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pe? locations serviced. customer may boo space for their shipments through

companyBs :ustomer ervice and deliver customer shipments to >lue &art viation

3ffice at the related airport.

&art pe? also offers a further economical option of a &oor-to-irport service.

customer may boo their shipments at any of companyBs locations serviced for this

product to any of the major airports. :onsignee ould be re+uired to collect the shipment

from the >lue &art viation office at the concerned airport.

Dart %$e/ offers the fo##o+ing enefits*

Wide 9aret )each

ingle-indo :learance

)eal-time Information

ime-&efinite &elivery

#ree 'roof of &elivery on &emand

peed

#le?ibility

(conomical

D%RT SUR;%C'LIN'

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&art urfaceline is an economical, door-to-door, ground distribution service ithin India

for shipments eighing 10 gs and above. It offers a cost-effective logistics option for

your less time-sensitive shipments, ith the folloing value-added benefits;

ime-bound &elivery

rac your hipment


'ic-up :onvenience

ecure hipments

(conomical ariff

SM%RT &O>

mart >o? is a convenient, economic, pacaging unit

priced to include a door-to-door delivery service ithin

India. he units come in " si/es, 10gs and "5 gs, and are

designed to accommodate a variety of products. he special

benefits of using mart >o? are;

ide maret reach

peedy &elivery

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#ree pic-up

)eal-time racing


'roof of &elivery

rouble #ree ervice

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INT'RN%TION%L S'R:IC'

International services of

>lue dart are taen over &


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6F 'acaging.

Different ty$es of internationa# ser)ices* @

%IRPORT TO %IRPORT

he airport-to-airport service is an air freight

service available on the flights operated by >lue

&art viation beteen the airports of =olata,

&elhi, 9umbai, >angalore, :hennai and


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>lue &art viation operates the only >oeing 787 freighters in India. he freighters have

an A-pallet configuration, and operations are supported by an in-house ground-handling

and maintenance capability, as ell as bonded arehouses at all the on-line stations, and

company-oned cargo handling assets. With +ualified, professionally-trained personnel,

>lue &art viation is positioned to offer the most superior +uality of service in the

country today.

:harters are operated on an ad-hoc basis. Kormally, charters have been used here

timely delivery of sensitive e+uipment or large loads is re+uired. In the past, >lue &art

viation has operated charters for carriage of P (+uipment for the 9iss World :ontest,

high-value P and >roadcasting e+uipment for :ricet 9atches around the country,

perishable +uaculture, :omputer peripherals and (lectronics, (mergency (+uipment

and large inventory for JI plants.

INT'RLIN'

>lue &art viation operates the only >oeing 787

freighters in India. he freighters have an A-pallet

configuration, and operations are supported by an in-house

ground-handling and maintenance capability, as ell as

bonded arehouses at all the on-line stations, and company-oned cargo handling assets.

With +ualified, professionally-trained personnel, >lue &art viation is positioned to offer

the most superior +uality of service in the country today.

he bonded arehouses ith customs personnel facilitate efficient transhipment of cargo

ithin India. his facility has enabled distribution of imports ithin the country and has

provided e?ports access to and from the gateays of international airlines. his provides

international airlines ith a cost-effective option to restrict their on-line stations ithin

India, and enhance their mareting possibilities at off-line locations by utili/ing the

distribution capabilities of >lue &art viation.

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:urrently, >lue &art has interline agreements signed ith "8 international airlines - ir

:anada, ir #rance, ir India, ir 9auritius, litalia, siana, >ritish irays, :argolu?,

:athay 'acific, :hina irlines, :ross ir, &as ir, (l l Israel irlines, (mirates y

:argo, =L9 )oyal &utch irlines, =uait irays, 'olar ir, audi rabian irlines,

ingapore irlines, ri Lanan irlines, iss ir, outh frican irays, and Catar

irays.

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'>'CUTI:' SUMM%RA ON '@COMM'RC'

he concept of e-commerce is donloading at a fairly rapid pace in the psyche of the

Indian consumer. In the metros, shortage of time is a big driver for online shopping. 3n

the other hand, accessibility to a variety of products maes audiences from smaller tonsand cities opt for the online route. 9ajor retailers face challenges in stocing their stores

ade+uately. 3ften, customers are unable to purchase items of their choice, thus prompting

them to resort to e-retailers.

#lipart has accorded a lot of importance in trust building e?ercise that is hy it has a

strong :ustomer upport eam hich helps the customers ith the ebsite guidance and

resolving issues.

#lipart uses its in-house logistics E#=LF as ell as third party logistics E8'LF services as

the logistics is one of the most important for a success of any ecommerce venture. long

ith the logistics, reverse logistics of #lipart is also ell developed ith a 80 day return

policy and flipart bearing courier charges for returned products.

#lipart hen it started employed the consignment model of procurement as it as the

most ris free ay to operate but then they changed to Inventory model to ensure

superior delivery times. >ut ith foreign direct investment E#&IF favoring the

maretplace model in pril"018, #lipart changed its business model to maretplace

model.

W )etail a pet project of #lipart no handles the inventory and arehouse

management. #lipart has continued to fare very ell in terms of the delivery time

because of their developed supply chain management and dedicated customer support

team to ensure customer delight. his causes them to build a lot of slac into their

e?isting systems causing higher costs at several points in the supply chain.


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M%R'T O:'R:I'W

India has an internet user base of about

"50." million as of June "01@. he

penetration of e-commerce is lo

compared to marets lie the 4nited

tates and the 4nited =ingdom but is

groing at a much faster rate ith a large

number of ne entrants. he industry

consensus is that groth is at an

inflection point.

4ni+ue to India Eand potentially to other developing countriesF, cash on delivery is a

preferred payment method. India has a vibrant cash economy as a result of hich A0D of

Indian e-commerce tends to be :ash on &elivery.


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)ising standards of living and a burgeoning, upardly mobile middle class ith

high disposable incomes

vailability of much ider product range Eincluding long tail and &irect ImportsF

compared to hat is available at bric and mortar retailers

>usy lifestyles, urban traffic congestion and lac of time for offline shopping

Loer prices compared to bric and mortar retail driven by disintermediation and

reduced inventory and real estate costs

Increased usage of online classified sites, ith more consumer buying and selling

second-hand goods

India*s retail marketis estimated at !@70 billion in "011 and is e?pected to gro to !675

billion by "016 and !A50 billion by "0"0, R estimated :%) of 7D. ccording to

#orrester, the e-commerce maret in India is set to gro the fastest ithin the sia-

'acific )egion at a :%) of over 57D beteen "01"R16.

s per India %oes &igital, a report by vendus :apital, a leading Indian Investment

>an speciali/ing in digital media and technology sector, the Indian e-commerce maret

is estimated at )s "A,500 :rore E!6.8 billionF for the year "011. 3nline travel constitutes

a si/able portion EA7DF of this maret today. 3nline travel maret in India is e?pected to

gro at a rate of ""D over the ne?t @ years and reach )s 5@,A00 :rore E!1"." billionF in

si/e by "015. Indian e-tailing industry is estimated at )s 8,600 crore E4!A00 mnF in

"011 and estimated to gro to )s 58,000 :rore E!11.A billionF in "015.

3verall e-commerce maret is e?pected to reach )s 1, 07,A00 crores E4!"@ billionF by

the year "015 ith both online travel and e-tailing contributing e+ually. nother big

segment in e-commerce is mobileM&< recharge ith nearly 1 million transactions daily

by operator ebsites.

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SWOT %N%LASIS O; ;LIP%RT

Strength* op Indian ecommerce portal

&iversified into electronic goods

o P: investment to build its on delivery system thereby reduce delivery time

:ash on delivery hich is maing 60D of its income

Wea,ness*

:oordination ith suppliers and courier as tough

'rice biasing to maintain the margins E e.g. Lo price for the best seller boo and

more price for the least antedF "@M7 customer care, thus even mid night is to delivered ithin "@ hours

O$$ort!nities*

lready oring toards customer delight ill obtain customer loyalty gradually

upplier database interface ith flipart ebsite for JI procurement

9obile internet usage is increasing there by chances of increase in sales through

mobile shopping.

Threats* mall players and emerging competitor

9ajor players lie ma/on

In capabilities to manage certain costs lie delivery cost, ban charges

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M%OR COMP'TITIORS

%ma-on.com is an mericaninternational electronic commerce company ith head+uarters in eattle, Washington,

4nited tates. It is the orld*s largest internet

company, based on revenue and number of

employees.

Sna$"ea#.com is an online maretplace, head+uartered in Ke &elhi, India. he

company as started by =unal>ahl and )ohit>ansal, in #ebruary "010.

e&ay Inc.,is an merican multinational

corporation and e-commerce company, providing consumer-to-consumer sales services

via Internet. It is head+uartered in an Jose, :alifornia, 4nited tates.

HomeSho$02 is an online and on-air retail and

distribution venture of Ketor 1A %roup, India.


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M%R'T S'GM'NT%TION

he process of defining and subdividing a large homogenous maret into clearly

identifiable segments having similar needs, ants, or demand characteristics. Its

objective is to design a mareting mi? that precisely matches the e?pectations of

customers in the targeted segment.

#e companies are big enough to supply the needs of an entire maretN most must

breadon the total demand into segments and choose those that the company is best

e+uipped to handle.

he four basic maret segmentation-strategies are based on

GEOGRAPHIC SEGMENTATION -

:() 3 I() 1, I() " K& I() 8 :II(

DEMOGRAPHIC SEGMENTATION -

75D of online users beteen the age group of 15-8@ years.

#lipart targets mainly the youth of the country,

BEHAVIOURAL SEGMENTATION

Web friendly people.

PSYCHOGRAPHIC SEGMENTATION

#lipart concentrates on more 'sychographic, hich helps in deciding here to

display ads online hey target online shoppers and people ho donBt online shop Ethus P: to

encourage themF

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M%R'T POSITIONING

n effort to influence consumer perception of a brand or product relative to theperception of competing brands or products. Its objective is to occupy a clear, uni+ue, andadvantageous position in the consumer*s mind.

Points of $arity*

(asy locating of products

:ompetitive prices.

Ko hassles of going to shops personally and shop for products

vailability of various products on one platform

&iscount on purchases.

etter user interface-one drag approach

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M%R'TING STR%T'GI'S

Word of mouth Einitial mareting even no they ant to satisfy customer so they

come bac for moreF %ood use of (3

We &3K3 sell old boos or used boos. ll the boos listed at #lipart.com

are ne boos. he boos listed at #lipart.com are K3 available for free

donload in eboo or ' format2 hus hen you search free eboos or pdf boos old or used boos flipart ill be

displayed. %ood use of (9

ds at proper places and use pay per clic to pay for ads

Pery easy eb interface

'ayment convenience

:ashMcard on delivery R there by encouraging students and people ith nocreditMdebit card to purchase in flipart, ith mobile internet penetration there is

chances of capturing rural maret E60D revenue by :3&F (9I Rby targeting price sensitive customers

Wallet R customer can recharge money online and purchase then and hen needed

those entering details alays is rectified, target heavy purchase and lu?ury

customer :ustomer conversion rate is so high more than 70D

'ersonali/ation of the user page

'roduct recommendation ith your previous purchases

'rice of the product taing account of various e?penses such as upplier

e?penses, ransportation e?penses, 'acaging e?penses, hipping e?penses,

:ourier e?penses, inventory maintenance e?pense, office and stationery e?penses,

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sales and advertisement e?penses, ta?es, depreciation, discount alloances and

many more e?penses.

)oughly about 5-7D profit per boo orders hich indicates that generation of

revenue is on volume basis.

&ifferentiated themselves by giving best selections, best services at loest best

possible prices. EPideofor the sameF

&iscounts up to 85D across all categories.

4pper edge in competitive pricing.

P#ace E

:hannel type; Words of mouth Eif e can say thatF hich hasbeen ey driver for

their groth.

When an order is placed they either serve the order from theirinventory or procure

the boo on demand from various suppliersand then deliver the customer.

s on date more than A0D orders of #lipart are handled viaarehouses hich

help in +uic and efficient service.

We deliver orders in 1 day in ier-I cities and "-8 days in ier IIcities and 8-5

days ier III cities

hipping and :ourier ould act as intermediaries in this process.

&elivery services through e-art and postal services

ie ups ith local vendors and courier firms Ethereby avoiding octroi chargesF

:ompany oned arehouse in major cities near airport

rying to achieve minimum returns

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If the courier canBt delivery to the location the product is shipped through

government post

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Warehouses are located in the following cities, often near airports

Bangalore

Chennai

Delhi Hyderabad

Mumbai

Noida

Pune

Kolkata

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Promotions @

Employees of divisions like Website Business Planning and!naly"#s E$P

Business Development Produ#t Managementand Marke"ng %upply&Chain

Management and Customer%upport are genera"ng revenue for it'

%ele#"on Criteria at (lipkart)&While years of e*perien#e areal+ays bene,#ial for a

#andidate (lipkart-s fo#us is to hire those+ho are able to #onsistently raise the

bar and introdu#e a varietyof innova"on to move this organi.a"on for+ard' !s

(lipkart gro+s +e feel it is absolutely ne#essary that our employees arealso able

to gro+ professionally +ith the organi.a"on'

!de/uate 0raining as per their roles and responsibili"es is given to them

a##ordingly and in#en"ves'

0elephone %ales for#e is only 12 of the total employees fo#using to redu#e the

unsold3goods not mu#h in demand'

Ma4ority of (lipkart are employed in Customer support division' 5t is the only #ustomer support division in 5ndia having 16*7#ustomer support

fun#"oning for issues su#h as regarding #hoi#e of the produ#t to pur#hase

shipping #ourier ho+ to order on +ebsite mode of payment gi8 vou#her order

status 9#an#ella"on and returns'

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Having even "e up +ith %kype for the same on the +ebsite for user delight'

:ni/ue tool of %ales Promo"on is !;liate on their +ebsite'

Publi#ity is by +ords of mouth publi#ity genera"ng trust and a##ountability to

users'

!s internet3+eb strategy used 3>31>?? +ith the #on#ept of


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:ompetitors see #lipart as the maret leader, ith the ac+uisition of letsbuy.com

%eneral public ant to try it once for its creative P: is maing people curious to

e?perience flipart.

Peo$#e*

ervice people, ales :lers, &elivery drivers, 9anagers, :omplaints department,

ccounting, Warranty people, echnical people, all or for the customer ease,customer satisfaction and customer delight.

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CONCLUSION

&LU'D%RT

Palue added services on the rise. >lue &art has started providing value-added serviceslie logistics management, supply chain management and arehousing facilities to its

clients. %oing forard demand for such services from corporates is liely to gro at a

fast clip. his is because by outsourcing such services to third party service providers

they ould be able to cut don on costs and improve their efficiency levels. #or the

courier companies such services ould be part of the overall value proposition they

ould be offering their clients apart from the normal pic up and delivery. uch services

have the potential for enhancing the margins of courier companies lie >lue &art. We

believe that >lue &art is best e+uipped to capitali/e on the groing opportunities in the

emerging areas of arehousing and supply chain management.

(-COMM'RC'

credible rival can do onders to an enterprise and #lipart is no different. he entry of

ma/on in India has enabled #lipart develop a lot of in-house innovation and

organically developed best-practices - that have no become the industry standard.

#lipart began operations on the consignment modelN goods ere procured from

suppliers on demand, based on the orders received through the ebsite. Later, the boos-

to-electronics e-shop adopted the arehouse model. he company had its on

arehouses, and maintained its on inventory.


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&I&LIOGR%PHA

Book: International Marketing By Manan Prakashan

www.bluedart.com

www.flipkart.com

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