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Flipkart success story

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Page 1: Flipkart success story
Page 2: Flipkart success story
Page 3: Flipkart success story

► Leading Indian E Commerce company

headquartered in Bangalore.

► Started by two IIT graduates BINNY AND SACHIN BANSAL

in year 2007, who were also ex-amazon employees.

► India’s largest online bookseller with over 11.5 million titles

in offer.

►Flipkart projects its sales to reach 10 billion by year 2014.

►Sells nearly 10 products per minute.

► First company to introduce Cash On Delivery payment

system, a 30-day replacement policy, EMI options, free

shipping - and of course the great prices.

Page 4: Flipkart success story
Page 5: Flipkart success story

CEOSachin Bansal

ENGINEERINGMekin

Maheshwari

OPERATIONS

Sujeet Kumar

COOBinny Bansal

Page 6: Flipkart success story

“To become Amazon of India”.

Providing a delightful and memorable customer

experience

“Completely hassle free shopping experience with

best prices in India”.

VISION

MISSION

OBJEVTIVES

Page 7: Flipkart success story
Page 8: Flipkart success story

FLIPKART

Normal people (for gifts, etc.)

Students/Academicians and

Corporate/executives

Book lovers

Page 9: Flipkart success story

► Flipkart aims to become the largest retailer of

India.

► Flipkart wants to be present across all

categories, except in groceries and automobiles,

the CEO said “Our target is not just those who

shop online. We want to highlight the

convenience of e-commerce to traditional

offline shoppers and, thus, help grow the

market.”

STRATEGIC OBJECTIVES:

Page 10: Flipkart success story

• US $ 100 million revenue.

• Diversify product portfolio into home appliances, electronics, etc.

2012

• US $ 1 billion revenues.

• Aggressive acquisitions.

• Stronger supply chain.

2015

• Largest retailer in India.

• Enter global markets.

2020

FINANCIAL OBJECTIVES:

Page 11: Flipkart success story

4 20 75

500

1000

2000

5000

Revenue

In INR Cr.

Page 12: Flipkart success story
Page 13: Flipkart success story

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

Page 14: Flipkart success story

►Attract users to the site

►Provide selection

►Provide details to evaluate a

product

► Price well

►Provide convenient payment options

►Confirm payment

ORDER LIFECYCLE:

Page 15: Flipkart success story

►Get the item

►Clean & Check for sanity

►Pack the item

►Select courier & hand-over

►Get tracking id & communicate to

customer

►Take care of returns(faulty product/users

change their mind)

Page 16: Flipkart success story
Page 17: Flipkart success story

• GIFTSOCCASIONS

• DISCOUNTS, FREE HOME DELIVERY

• PRICE COMPARISONBENEFITS

• POTENTIAL USER

• FIRST TIME OR SECOND TIME USERUSER STATUS

BEHAVIOURAL SEGMENTATION:

Page 18: Flipkart success story
Page 19: Flipkart success story

►Government support for increasing

Internet penetration in India.

► Tax benefits to corporate.

► 2012 Increase in stock holding % for

foreign investors in companies.

► Resistance against foreign retailers

POLITICAL:

Page 20: Flipkart success story

►Booming Indian economy.

►Increasing spending power.

►Skyrocketing fuel prices.

►Base of internet users multiplied by 10 to

11 times in last 6 years.

ECONOMICAL:

Page 21: Flipkart success story

►Better comfort level and trust in online

shopping.

►High priority on time and convenience.

►Improving usage of Broadband and high

computer literacy.

SOCIAL:

Page 22: Flipkart success story

► 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.

TECHNOLOGICAL:

Page 23: Flipkart success story
Page 24: Flipkart success story

2010: WeRead, a social book discovery tool.

2011: Mime360, a digital content platform company.

2011: Chakpak.com, a Bollywood news site that offers

updates, news, photos and videos.

2012: Letsbuy.com, an Indian e-retailer in electronics.

Flipkart has bought the company for an estimated US$25

million.

2014: Acquired Myntra.com in an estimated INR 2,000 crore

deal.

Page 25: Flipkart success story

►Lower transaction size

►Better Shelf size

►Shipping and handling of books is easy

►To emerge as a pioneer in book retailing rather

than venturing comparison shopping engine

WHY BOOKS AS FIRST CHOICE:

Page 26: Flipkart success story

Online Book Sellers (20 %

market)- Direct

FLIPKART: Market leader with 80% share.

INFIBEAM:

7% share.

BOOKADDA:

5% share.

Others (EBay, India Times):

8% share.

Traditional Book Sellers (80%

market share)-Indirect

General Book Stores/ fragmented over whole country.

Branded book chain (Crosswords, Om

Book Depot, Landmark, etc.) in

Tier 1 cities.

Page 27: Flipkart success story
Page 28: Flipkart success story

► In July 2014 Flipkart launched its own set of

tablet, mobile phones & Phablet. The first

among these series of tablet phones was

Digiflip Pro XT 712 Tablet.

► In July 2014 Flipkart launched it's first

networking Router, under its own brand name

named DigiFlip WR001 300 Mbit/s Wireless N

Router.

► In September 2014 Flipkart launched its in-

house home appliances and personal

healthcare brand Citron. The label includes a

wide range of cooking utilities and grooming

products.

Page 29: Flipkart success story

ADVERTISEMENTS BY FLIPKART

Page 30: Flipkart success story
Page 31: Flipkart success story

► Membership cards and premium facilities.

► Extended range of academic books.

► Providing Sponsorships.

► Vernacular language option on websites.

► Better featured user interface.

► Cost cutting on packaging.

► Flipifts

► Liquor

Page 32: Flipkart success story
Page 33: Flipkart success story

Archies Indiangiftsportal.com

Red moments iFEEL Cafepres

s.com

► All consumer goods, generic gift products, customized goods.

► A different section for generic and customized products under

flipift

► Presto, customized gift manufacturer and retailer-sole provider

of customized goods

► Will also be supported by IP tracking systems to enhance

repeatability.

Page 34: Flipkart success story
Page 35: Flipkart success story

•Initially in Mumbai and NCR

•Mandatory registration

•Uploading Identification proof mandatory

•Minimum order of $16

BOTTOMS UP.COM:

FLIPKART RETAILERS CUSTOMER

ORDERS

PLACED WITH

FLIPKART

ALLOCATION OF ORDERS WITH

RETAILERS

RETAILER

CONFIRMS THE

AVAILABILITY OF

STOCK

RETAILER

DELIVERS

SATISFIED

CUSTOMER

Page 36: Flipkart success story
Page 37: Flipkart success story

Cost

Heavy discounts on books

Free shipping for purchases above Rs. 300

Consumer

Availability of products across 14 categories

Books can be ordered before they are launched

Pan India presence

Communication

Advertisements via Search Engine Optimization

Transparent Communication

Once the customer places an order, progress can be tracked

Convenience

Ease of finding the product and related information

Purchase at the click of a button

Cash/ Card on Delivery

Marketing Mix

Page 38: Flipkart success story
Page 39: Flipkart success story

FICTION

ACADEMIC

LITERATURE

CHILDREN

ELECTRONIC GOODS

HOUSEHOLD ELECT.

MOBILE TECHNOLOGIES

PERIPHERALS,WELLNESS

APPARELS

ACCESSORIES

Eg: Flipifts, bottoms

up, extended

range of academic

books

•Aims most

segments except

automobiles ad

groceries.

PRODUCT:

Page 40: Flipkart success story

► Offers discount

► E-wallet

► E-gift vouchers

► Eg: membership

cards with points

facility

► Advertising

► Online marketing

► Media

► Word of mouth

► Suggested:

► sponsorships

► e-wallet promotion

► themes of advertisements

concentrating on different

services provided.

PRICE:

PROMOTION:

Page 41: Flipkart success story

►Inventory at 4 major

centers-Mumbai,

Delhi, Bangalore,

Kolkata

►Delivery services

through e-kart and

postal services

►Covers all tier-1 cities

and major tier-2 and

tier-3 cities

► The packaging and

quality of product

► Prompt delivery

► 30 day return policy

► Suggested- Better user

interface, IP tracking

for Flipifts

PLACE:PHYSICAL

DISTRIBUTION:

Page 42: Flipkart success story
Page 43: Flipkart success story

Key Success factors:• brand loyalty

• User experience

• Reliability

• convenience

• delivery reach

• delivery time• mobile shopping

• availability

• product modes

(printed/ e-books)• titles

Threshold factors: Brand

awareness, price.

Competencies:• large self owned delivery

channels

• supplier network/ first to

market

• mobile shopping solution/

increased reach

• innovation in

services/payments/technolog

y

• excellent customer services

• internet strategy (search

engine optimization, platform

advancement)

• large loyal customer base.

Value proposition:

“Completely hassle free shopping

experience with best services to

everyone, everywhere and everytime in

India”. 43Prepared By:- AKASH TYAGI

Page 44: Flipkart success story
Page 45: Flipkart success story

STRENGHTS:

► Industry condition: very high potential► Investor’s trust► Services and warehousing► Payment options► Established brand► Customer service► Online discoverability► Inventory management► Self owned delivery network► Supplier network/relation► Innovation and technology competence► Brand► Supply Chain Management► Quick Turnaround Time► Advertisement And Promotion► Strategic Acquisitions► Huge Reach► Self owned logistics i.e. E-KART► Strong Brand value► Self owned online gateway i.e payzippy► Exclusive tie ups

Page 46: Flipkart success story

WEAKNESSES:

► Entry of international on-line competitors in Indian market

► .Customers are not comfortable with online payment

► .Not profitable operationally

► .Time to build confidence among the customers

► .Middle management retention issues.

► No control over small value orders

► Free shipping built costs

► Less reach as compared to physical book stores.

► Global reach.

► Investor driven organisation

► Capital and technology intensive

► Less reach compared to physical stores

► Shipping cost for small value orders

Page 47: Flipkart success story

OPPORTUNITIES:•growth in e-tail

► growth in e-book culture

► broadband penetration

► mobile apps

► development of m-commerce in the e-market

► increasing internet penetration

► target social medias to reach young population

► high interest among vc/pe.

► untapped mobile users

► coverage of all parts of india

► tie ups with book fairs/education institutes.

► enter new untapped global markets

► Self e-publishing

► Global markets

► Growing demands of e-retailers

► Increassng access to internet

► Rapid adoption of mobile platforms

Page 48: Flipkart success story

THREATS:

► High competition from major international

online retailers

► Capture of alternative market by competitors

► e.g.Infibeam, amazon.in► Low internet penetration► Less usage/preference of online buying► Small value orders in remote areas with

high delivery costs► Amazon will enter soon► Economic downturns

► Price wars

► Insecure online transactions due to increased

cases of hacking

Page 49: Flipkart success story
Page 50: Flipkart success story

• Large supplier base.

• Decreasing popularity of printed books.

• Traditional book stores.

• Advent of E book readers like I Pad and Kindle.

• Presence of multiple players & traditional retail stores.

• Cheap old/used book vendors.

• Low capital investment.

• High technological intensive players.

Threat of new Entrants

Bargaining Power of

Buyers (High)

Bargaining power of Supplier

(Low)

Threat Of Substitutes

(Low)

Rivalry Among Competitors

(High)• Low entry

barriers •Huge market.

Page 51: Flipkart success story

PRESENTED BY:

Ashwarya Chaudhary

Mamta Gupta

Shivani Singhal

Shubhita Batra

Sonvi Gupta

Sudipta Sabharwal