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1. Flipkart.com
Group Members :
•Manoj Kumar Patle (35)
•Gyanendra Kushwaha (24)
•Durgalal Ahir (19)
•Surendra Patle (57)

2.  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
andTiger global management
 Early focus on online sales of books and later expansion of
product line.
 Offers multiple payment methods
 Among the top 20 Indian Web sites in terms of traffic
regarded as the Amazon of India.
INTRODUCTION

3. ACQUISITIONS
• 2010: 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

4. Flipkart building Trust
• COD
• 24*7 Customer Service
• Never Promise something that you don’t have – it built its own inventory
• Delivery – its own courier company
• No-Questions-Return policy and 30 days replacement policy - A recent study has
found that 89% of online buyers say return policies influence their decision to shop
with an e-tailer

5. Growth Story…
Started with books and went on to
add new products
2 employees, 2 suppliers to 4800
employees and more than 600
suppliers
Have their own internal courier
services called flipkart logistics

6. Why Books were the first choice?
• 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

7. Competitors in book market
5 sites cheaper than flipkart to buy books
• Uread.com
• Simplybooks.in
• Bookadda.com
• Landmarkonthenet.com
• Infibeam.com
- offering better discounts, consumers’ choices are
split and they seem less inclined to buy books only
from Flipkart.

8. No. Of hits on the websites
Sep 2011- Aug
2012
Colour Codes Average Scores with respect to Flipkart
Flipkart.com 1
Ebay.in 0.82
Myntra.com 0.5
Jabong.com 0.3
Snapdeal.com 0.42

9. Performance measurement
• Profit gauge
- Repeated transactions
- 70% of customers come back
• Reducing COD customers.

10. Flipkart Strengths
• Price reductions
• 24 hour a day shopping
• Complete freedom and time to choose
• Satisfied customers – purchase frequently and
spending will increase

11. Segments Shopping
Orientations
Internet
Exposure
Experience as
E – Shopper
Demographics
Convenience – oriented New
Shoppers
Opening hours
and time savings
Medium-low Men 25-44 Medium –
High Class
Big Towns
Convenience – oriented
experience shoppers
Opening hours
and time saving
High Men 25-34
High Class
Big Towns
Involved shoppers Only medium
available
High Men 14-24 Medium –
High Class
Big Towns
Dual shoppers Only medium
available
Medium- low Men 14-24 Medium –
High Class
Middle Towns
Price oriented shoppers Price reductions - - Men 25-34 Medium/
Medium –High Class
Big Towns
Informational recreational
surfers
Low information
search costs and
easily
- - Men 25-34 Medium –
High Class
Big Towns

12. Metros Vs Small Towns
• In small towns –
- consumers value personal communication highly
- they are less stressed
- have fewer traffic problems
So they are less willing to buy online
• Metros –
- encourages new channels such as internet
- nuclear families
- traffic problems and more stressed

13. 123
• GiftsOccasions
• Discounts , free home delivery
• Price comparison
Benefits
• Potential user
• First time or second time user
User
Status
Behavioral Segmentation

14. Demographic Segmentation
Age
Kids – Baby care, Toys
Teen – Playstation, Xbox, movies, music
Gender
Male – Computers, Mobiles and accessories, Watches
Women – Beauty and Health care ,Home and Kitchen
Occupation
Student – Books, Music, Movies, Stationaries
Traveler – Camera, Luggage, Books
Working – Mobiles, Computers, Watches
Segmentation Variables

15. PRIMARY ANALYSIS

16. 0
10
20
30
20 22 25
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
62%
29%
9%
USP of Flipkart
Cash/Card on
Delivery
Easy to Order
Easy to
replace
0
100 77
4 10 2 7
Competition

17. Consumer oriented model
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

18. 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

19. Dot -Com
Generation
Target group
PURCHASE
Time Poor
Customers
Cost
Effective
Non Tier 1
Cities
looking for
wider range

20. Understanding the category
India is one of the fastest growing
digital markets in the world
ASSOCHAM says the online retail
market in India may grow to Rs 70
billion by 2015 from Rs 27.5
billion, today as internet access
improves
Online retail accounts for less
than 1% of the total online
market in India thus provide a
huge growth potential of the
market for both domestic and
international players
Reasons
for Online
Shopping
Busy Life Style
Unavailability of
a particular
brand in a
particular region
Cash/Card on
Delivery
Discounts and
Offers

21. PORTER’S ANALYSIS

22. RIVALRY
• High Level of Promotion
NEW
ENTRANTS
• Low Entry and Exit Barriers
• Accessibility
SUBSTITUTE • Price Wars
CUSTOMERS
• Low Switching Cost
SUPPLIERS
• Loyalty
• New products
PORTER’S
FIVE
FORCES

23. INTERNALFACTORSEXTERNALFACTORS
STRENGTHS
•BRAND
•SUPPLY CHAIN MANAGEMENT
•QUICK TURNAROUND TIME
•ADVERTISEMENT AND PROMOTION
•STRATEGIC ACQUISITIONS
•HUGE REACH
WEAKNESSES
•DELIVERY
•INTERNET PENETRATION
•PAYMENT GATEWAYS
•HIGHER COSTS
•GROWTH IN e-TAIL
•GROWTH IN e-BOOK CULTURE
•BROADBAND PENETRATION
•MOBILE APPS
OPPORTUNITIES
•NEW PLAYERS SUCH AS AMAZON
THREATS
SW
HARMFUL
To achieving the objectives
HELPFUL
To achieving the objectives
OT

24. New Strategy
•None of the people who took the survey said they buy music online
•Songs are priced very high , Rs 6 - 15 per song
•5000 downloads a day