Unit-5- Flipkart.pdf

Complete description about Flip-cart

1. UNIT-5
Dr. Kumar Ratnesh

2. 1.INTRODUCTION
2.VISION, MISSION ANDVALUES
3.FOUNDERS
4.COMPANYHISTORY
5.FLIPKARTWAREHOUSES
6.FOLLOWERS OF FLIPKART
7.FUNDINGS
8.ACQUISITIONS
9.CHALLENGES FACED BYFLIPKART
10.WHAT WENT RIGHT FORFLIPKART?
11.USERINTERFACE
12.MARKETINGSTRATEGIES
13.MARKETINGMIX
14.REVENUES AND INVESTMENTS
15.LONG TERMOBJECTIVES

3. •Online RetailIndustry
•It is one of the leading e-commerceplayers
in thecountry
•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 bansalin
Bangalore, Karnataka in2007.
•Started with initial capital of INR 4lakh.
•7 warehouses initially, offices and 60delivery
centers(2015).

5. •Current valuation is $11 billion (Feb2016).
•4600+employees.
•Subsidiariesare“WeRead”,“Mime 360”and
“LetsBuy”.

6. Vision
“To become Amazon ofIndia”.
Mission
“Providing a delightful and memorable customer
experience”.
Objective
“Completely hassle free shopping experience with
best prices inIndia”.

7. SACHINBANSAL
BINNYBANSAL

8. SachinBansal
➢CEO andCo-founder
➢Sachin spent his early yearsin
Chandigarh.
➢He graduated from IIT-Delhi witha
degree in ComputerEngineering.
SachinBansal
CEO andCo-founder

9. ➢In 2006 he joined Amazon.com in Indiawhich
he later left to set-upFlipkart.
➢As CEO, Sachin oversees all the customer
facing activities of the company ranging from
technology tomarketing.

10. ➢He is also in charge of Flipkart'scorporate
divisions which include the finance and
legaldepartments.
➢An avid gaming enthusiast, Sachin likesto
spend most of his free time with hisfamily.

11. BinnyBansal
COO andCo-founder
BinnyBansal
❖COO andCo-founder
❖Born and raised in Chandigarh,
Binny went on to get a degreein
Computer Engineering from IIT
Delhi.

12. ❖He had a brief stint at Amazon beforetaking
the entrepreneurial plunge withFlipkart.
❖At Flipkart, Binny oversees all operational
activities that come into play from the timethe
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 andNBA.
❖An active sportsman,he
used to captain his
school basketballand
soccerteams.

14. ✓Flipkart was established in 2007 by Sachin Bansal
and Binny Bansal, both alumni of the Indian
Institute of TechnologyDelhi.
✓They worked for Amazon.com before quittingand
founding their owncompany.
✓Initially they used word of mouth marketing to
popularize theircompany.

15. ✓Afewmonthslater,thecompanysolditsfirstbook
onflipkart.com-JohnWoods'LeavingMicrosoftto
ChangetheWorld.
✓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 onoffer.

16. ✓Flipkart broke even in March 2010 and claims to have at
least 100% growth every quarter since itsfounding.
✓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 productsetc.

19. ❖Bengaluru(headquarters)
❖Chennai
❖Delhi
❖Hyderabad
❖Mumbai
❖Noida
❖Pune
❖Kolkata

22. ❑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’sNaspers.

23. WeRead
2010
2010
2012

24. ➢22
nd
May2014
➢Flipkart acquired Myntrafor
2000crore.
➢Future investment of 600
crore in the fashionindustry
byFlipkart

25. Amazon.in
Junglee.com
Snapdeal
EBay
Homeshop18
Shopclues
Jabong.com
Yebhi.com

26. “Bookstore at your door”
“The store at your door”
“Jo dikhta hai wo bikta hai”
“No kidding, noworries”
“Shopping ka nayaaddress”

27. THE JOURNEY TILL2015

28. ❖The first and foremost was that we Indians were discarding
our stone-age ways and beginning to shoponline.
❖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-aroundtime.

29. ❖But the best thing they did was that they understood that to
be successful in India, you need to be the God of
Distribution.
❖InIndia,it’samazingLogisticsthatprovetobethegame-
changerandthat’sexactlywhatthefolksatFlipkarthave
done.

30. oInitiallywhentheystartedout,it
wasn’teasyforthemtoearnthe
trustofthecustomer.
oHandling customer complaints,
without having a ‘face’ to their
customer service proves to be bit
of a challenge attimes.

31. oNothavingthe‘display’advantage,the‘browsing’featureand
notbeingabletocarryoutpromotionalactivitiesaresome
otherobviouschallenges.
oThediscomfortofpayingbycards,onaccountofsecurity
fearsisanotherchallenge.Theyhavenowtriedtoaddress
thatbyintroducingthe‘cash-on-delivery’option.

32. oThefactthathighestnumberofordersandsalesget
registeredduringweekendsprovestobetoughattimesfor
logisticsandcustomerservice.
oThefactthattheyhavetowork24/7andthecustomer
perceptionsarounditalsobringsomedifficulty(Forexample,
thecustomerplacesanorderat12amandcountsthe
numberofhoursfordeliveryrightfromthen!)

37. Supplier ormerchants
➢Open platform for everyone to becomemerchant
➢Required a product portfolio to get registered as a
merchant onFlipkart
➢Product is placed depending on the category of the
product.
➢Product undergoes a Quality check by the company
itself before gettinglive

38. What merchantgets!!!
•Brand namevisibility
•Quick and easy access by thecustomers
•Increase in the sales by reaching outcustomers.
•Also brand presence on social networkingsites.

41. TARGETING
POSITIONING

42. YouthGeneration Currentbuyer
Educational
institutes
Internetfriendly
people
Socially
connectedpeople
Shopaholic

43. ❖Different section formen
❖Different section forwomen
❖Different section for kids wear depending upon
the age like
a.0-2 yrs.
b.2-4 yrs.
c.4-8 yrs.
d.8-12yrs.
e.12 and above

44. ❑More focus in metro cities near toairports.
❑Much focus on tier-1cities
❑Only focus inIndia
❑Maximum contribution of sales from tier -1cities.
❑Less contribution by rural area due to lack of
internetknowledge

45. 55%
21%
16%
8%
Sales
Tier1
Tier2
Tier3
Rural

46. Cash ondelivery
EMIoption
30-Daysreplacement
policy
E wallet and eVouchers
User friendlyinterface

47. Marketing campaign like no kiddingno
worrying
Using Google AdChoices
Promocoupons
One hoursale

49. PRODUCT
PLACE
PROMOTIO
N
PRICE

50. Wide range of productscategories:
➢Electronicgood
➢Apparels
➢Home and kitchenappliances
➢Men’s and women’saccessories
➢Computerperipherals
>Software's
>Hardware's

51. ➢Books andmedia
➢Sportsstore
➢Baby and kidssection
a.Wear outs differentiated on the basis of
age.
>Girls
>Boys
b.Footwares
>Girls
>Boys
c.Babycare

52. ➢All major inventory are located near to theairports.
➢Major warehousesarelocatedin
Bengaluru(headquarters), Chennai , Delhi,
Hyderabad, Mumbai, Noida, Pune,Kolkata
➢Biggest advantage-Nationwide reach to all sellers
of differentsizes
➢Covers all tier-1 tier-2 tier-3cities.

53. ✓Much less price then other e-commercewebsites
✓Availability of E wallets andE-Gifts
✓EMI option for specific products
✓Discountedcoupons
✓Free shippingfacility
✓Special discount and promotional codes for the loyal
customers.

54. ✓Above the linepromotion:
•TVAdvertisement
•Radiojingles
•Printads
✓Below the linepromotion:
•Word ofmouth
•Bulkmailing
•In app pushnotification
✓Through the linepromotion:
•Social media marketing/campaign

55. 4 20 75
2000
1000
500
5000
2008-09 2009-10 2010-11 2011-2012 2012-2013 2013-14 2015

56. 50
0
150
100
350
300
250
200
400
2009
2010
2011
2012
2013
1
10 20
150
360
$million

57. Strategic Objective: “Flipkart” aims to become
the largest retailer of India. Flipkart wants to be
present across all categories, except in groceries
and automobiles, theCEOsaid.“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 themarket.”

58. •US $ 100million
revenue.
•Diversify product
portfolio into
homeappliances,
electronics,etc.
2012
•US $ 1billion
revenues.
•Aggressive
acquisitions.
•Strongersupply
chain.
2015
•Largest retailerin
India.
•Enterglobal
markets.
2020

59. Popularity-0.538%of the total internet users of the world have
visitedFlipkart.com

61. Parameter: Brand, category margin,
premium margin, volume, cost of delivery,
operating costmargin.

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

64. FlipkarthasaddedaprepaidWallet
featuretoitse-commerceplatformthat
allowsshopperstostoremoneyonthe
siteanduseittopurchaseitems,without
havingtoreachfortheircreditcardfor
eachtransaction.

67. •24*7 Customer support service.
•Price reduction or discountedprice.
•Better Search EngineOptimization
•Advance advertising andpromotion.
•Multiple paymentmethod.
•EMI optionavailability
•E voucher and e-gifts

68. •Less internet knowledge in the
smallcities
•Lesspenetrationinthesmall
cities
•No delivery to remoteareas.
•Negativeperceptionabout
onlinetransaction.

69. •Global availability &accessibility.
•More lucrative discounts to attract
customers.
•Provide mobile application which can
run without or minimum usage of
internetconnection

70. ▪Penetration of new players in the
marketlike:
▪Amazon
▪Snapdeal
▪EBay
▪Shopclues

73. ➢www.flipkart.com
➢www.wikipedia.com
➢www.economicsonline.org
➢www.medianama.com
➢www.techcirlce.vcircle.com