Flipkart

Presented by Bhawna Pandwar ( University School Of Management) Kurukshertra University, Haryana

1. FLIPKART MADE BY: BHAWNA PANDWAR MBA(SFS) Pr. ROLL.NO. 30

2. CONTENTS INTRODUCTION VISION, MISSION AND VALUES FOUNDERS COMPANY HISTORY FLIPKART WAREHOUSES FOLLOWERS OF FLIPKART FUNDINGS ACQUISITIONS CHALLENGES FACED BY FLIPKART WHAT WENT RIGHT FOR FLIPKART? USER INTERFACE MARKETING STRATEGIES MARKETING MIX REVENUES AND INVESTMENTS LONG TERM OBJECTIVES

3. INTRODUCTION Online Retail Industry It is one of the leading e-commerce players in the country With over 11.5 million book titles listed, 11 different categories, more than 2 million registered users and sale of 30000 items a day.

4. Founded by Sachin bansal & Binny bansal in Bangalore, Karnataka in 2007 . Started with initial capital of INR 4 lakh . 7 warehouses initially, offices and 60 delivery centers ( 2015). Contd…

5. Current valuation is $11 billion ( Feb 2016). 4600+ employees. Subsidiaries are “We Read”, “Mime 360” and “Lets Buy”. Contd…

6. flipkart- Vision, Mission and Values Vision “To become Amazon of India”. Mission “Providing a delightful and memorable customer experience”. Objective “Completely hassle free shopping experience with best prices in India”.

7. FOUNDERS SACHIN BANSAL BINNY BANSAL

8. ABOUT FOUNDERS Sachin Bansal CEO and Co-founder Sachin spent his early years in Chandigarh. He graduated from IIT-Delhi with a degree in Computer Engineering. Sachin Bansal CEO and Co-founder

9. In 2006 he joined Amazon.com in India which he later left to set-up Flipkart . As CEO, Sachin oversees all the customer facing activities of the company ranging from technology to marketing.

10. He is also in charge of Flipkart's corporate divisions which include the finance and legal departments. An avid gaming enthusiast, Sachin likes to spend most of his free time with his family.

11. ABOUT FOUNDERS Binny Bansal COO and Co-founder Binny Bansal COO and Co-founder Born and raised in Chandigarh, Binny went on to get a degree in Computer Engineering from IIT Delhi.

12. He had a brief stint at Amazon before taking the entrepreneurial plunge with Flipkart . At Flipkart, Binny oversees all operational activities that come into play from the time the customer places an order till the time of delivery.

13. This spans across divisions like warehousing, logistics and customer support. A big fan of Salman Rushdie as well as Stieg Larsson's 'Millennium' series, Binny is also passionate about soccer and NBA. An active sportsman, he used to captain his school basketball and soccer teams.

14. COMPANY HISTORY Flipkart was established in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of Technology Delhi . They worked for Amazon.com before quitting and founding their own company. Initially they used word of mouth marketing to popularize their company.

15. A few months later, the company sold its first book on flipkart.com - John Woods' Leaving Microsoft to Change the World. Today, as per Alexa traffic rankings, Flipkart is among the top 30 Indian web sites and has been credited with being India's largest online bookseller with over 11 million titles on offer. Contd..

16. Flipkart broke even in March 2010 and claims to have at least 100% growth every quarter since its founding. The store started with selling books and in 2010 branched out to selling CDs, DVDs, mobile phones & accessories, cameras, computers, computer accessories and peripherals, pens & office supplies, other electronic items such as home appliances, kitchen appliances, personal care gadgets, health care products etc. Contd..

17. Bangalore office

18. Flipkart’s Warehouse

19. Bengaluru(headquarters ) Chennai Delhi Hyderabad Mumbai Noida Pune Kolkata Location of Flipkart’s Warehouses

20. Followers of Flipkart

21. FUNDINGS Initially funded by the Bansals themselves with 4 Lakhs(INR). Flipkart has since then raised two rounds of funding from venture capital funds Accel India (in 2009) and Tiger Global Management (up to the tune of US$10 million) (in 2010) and from South Africa’s Naspers.

22. AQUISITIONS

23. 22 nd May2014 Flipkart acquired Myntra for 2000 crore. Future investment of 600 crore in the fashion industry by Flipkart Myntra Acquisition

24. Major competitors Amazon.in Junglee.com Snapdeal EBay Homeshop18 Shopclues Jabong.com Yebhi.com

25. “Bookstore at your door” “The store at your door” “Jo dikhta hai wo bikta hai” “No kidding, no worries” “Shopping ka naya address” TAGLINES USED TILL DATE

26. THE JOURNEY TILL 2015

27. WHAT WENT RIGHT FOR FILPKART? The first and foremost was that we Indians were discarding our stone-age ways and beginning to shop online. Another thing the two entrepreneurs, Sachin and Binny Bansal , did right was that they started off with books – a low capital investment and a fast turn-around time.

28. But the best thing they did was that they understood that to be successful in India, you need to be the God of Distribution. In India, it’s amazing Logistics that prove to be the game-changer and that’s exactly what the folks at Flipkart have done. Contd..

29. CHALLENGES FACED BY FLIPKART Initially when they started out, it wasn’t easy for them to earn the trust of the customer. Handling customer complaints, without having a ‘face’ to their customer service proves to be bit of a challenge at times.

30. Not having the ‘display’ advantage, the ‘browsing’ feature and not being able to carry out promotional activities are some other obvious challenges . The discomfort of paying by cards, on account of security fears is another challenge. They have now tried to address that by introducing the ‘cash-on-delivery’ option.

31. The fact that highest number of orders and sales get registered during weekends proves to be tough at times for logistics and customer service. The fact that they have to work 24 / 7 and the customer perceptions around it also bring some difficulty (For example, the customer places an order at 12 am and counts the number of hours for delivery right from then!)

32. USER INTERFACE

33. LOGIN & SIGNUP

34. MOBILE APP

35. Cont..

36. Micro Analysis- Suppliers & Intermediatries Supplier or merchants 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

37. What merchant gets!!! 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.

38. A WIN-WIN situation for both the parties

39. MARKETING STRATEGIES OF FLIPKART

40. WHOM TO TARGET? Psychographics

41. HOW TO DIFFERENTIATE? Different section for men Different section for women Different section for kids wear depending upon the age like a.0-2 yrs. b.2-4 yrs. c.4-8 yrs. d.8-12 yrs. e.12 and above Demographics

42. 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 GEOGRAPHICS

43. CONTRIBUTION

44. POSITIONING VALUE ADDED SERVICES Cash on delivery EMI option 30- Days replacement policy E wallet and e Vouchers User friendly interface

45. ADVERTISING Marketing campaign like no kidding no worrying Using Google Ad Choices Promo coupons One hour sale

46. MARKETING MIX OF FLIPKART

47. 4 P’s PRODUCT PLACE PROMOTION PRICE

48. PRODUCT Wide range of products categories: Electronic good Apparels Home and kitchen appliances Men’s and women’s accessories Computer peripherals >Software's >Hardware's

49. Books and media Sports store Baby and kids section a.Wear outs differentiated on the basis of age. >Girls >Boys b.Foot wares >Girls >Boys c.Baby care

50. PLACE 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.

51. PRICE 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.

52. 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 PROMOTION

53. REVENUE(in crore)

54. INVESTMENTS

55. Flipkart’s Long term objectives Strategic Objective: “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.”

56. FINANCIAL OBJECTIVE

57. RANKING AND POPULARITY Popularity-0.538% of the total internet users of the world have visited Flipkart.com

58. PAYMENT OPTIONS

59. PRICING AND MARGINS 8% to 35% On sale price of product Parameter: Brand, category margin, premium margin, volume, cost of delivery, operating cost margin.

60. Toys, Watches, Beauty & Healthcare, luggage Books, TV, Home & Kitchen, Gaming , Belts, Bags Mobiles & Cameras, Computer accessories

61. LOGISTICS

62. PREPAID WALLET FEATURE Flipkart has added a prepaid Wallet feature to its e-commerce platform that allows shoppers to store money on the site and use it to purchase items, without having to reach for their credit card for each transaction.

63. SWOT ANALYSIS

64. 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

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

66. Global availability & accessibility. More lucrative discounts to attract customers. Provide mobile application which can run without or minimum usage of internet connection

67. Penetration of new players in the market like: Amazon Snapdeal EBay Shopclues

68. ADVERTISEMENTS BY FLIPKART

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