1. Flipkart.com
Group 9 :
•Ritesh Kamal (B032)
•B Kushal Kumar (B036)
•Richansh Kumar (B038)
•Sushant Kumar (B039)
•Ganesh Padhi (B047)
•Mayank Shukla (B055)

2. INTRODUCTION
• 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 and Tiger
global management
• Early focus on online sales of books and later expansion
of product line
• Offers multiple payment methods
• Path Breaking Services
• Among the top 20 Indian Web sites in terms of traffic
• Regarded as the Amazon of India

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

5. Initial Challenges (1/2)
• Bad Experience of Indians with online shopping in
the past–
1. poor experience with the product
2. late shipping
3. poor customer service
• Not an easy segment to break into, people were very
particular in paying money for something which they
had not seen and received.

6. Initial Challenges (2/2)
• Skeptical about security of online transactions

7. 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

8. Right Timing helps!
• Indian railways – www.irctc.co.in played a big role to
its success.
• Internet boom in India and growing internet
base/users in India.
• Not much competitions in the market.

9. Growth Story
600
500
Revenue ( in crore )
400
300
200
100
0
2008-09 2009-10 2010-11 2011-12

10. 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

11. Flipkart 2011-12

12. 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

13. 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.

14. Understanding the competition

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

16. Analysts and venture capitalists say Flipkart making
considerable losses on book transactions

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

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

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

20. 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

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

22. Segmentation Variables
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

23. PRIMARY ANALYSIS

24. Survey Findings
• If a product is priced equal both online and at the
Retail store,63 % prefer buying from the Retail outlet
• 2/3 rd of them said that Electronic Goods are
cheaper to buy online than at the brick and mortar
stores
• 69% of the respondents said that Online shopping
shall replace the Book Stores
• 28% of the users said that they had to return an
online purchased item when it was delivered
• 17 % felt it was not convenient to shop online
• 20% reported more varieties online as compared to
the 80% who preferred the stores

25. 30 25 26
20 22 No. of events of online
20
purchases in the last 12
10 8
months
0 0
1 2 3 4 5 >=6
15%
37% 15%
Sales
12%
6% 15%
USP of Flipkart
Cash/Card on Competition
9% Delivery
77
100
4 10
0 2 7
Easy to Order
29%
62%
Easy to
replace

26. Myths- Hogwash
Do you feel it is safe to Which product did you buy from Flipkart
make payments online?
No
11% Books Mobile Phone
Computer and Accessories Apparels
Yes
10% 9%
89%
23% 58%

27. Consumer oriented model
Cost Consumer
Availability of products across 14
Heavy discounts on books
categories
Free shipping for purchases above
Books can be ordered before they
Rs. 300
are launched
Marketing Pan India presence
Mix
Communication
Convenience
Advertisements via Search Engine
Optimization Ease of finding the product and
related information
Transparent Communication
Purchase at the click of a button
Once the customer places an
order, progress can be tracked Cash/ Card on Delivery

28. Decision making process
Evaluation of Post- Purchase
Purchase Decision
Alternatives behavior
Feedback on Flipkart
Customer perceived Faster turn around website and other
value time blogs
Cash/Card on Delivery
Word of Mouth
Wider range across all
Easy Return Procedure Affiliate
categories
in case DOA

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

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

31. PORTER’S ANALYSIS

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

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

34. 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

35. Flipkart in NEWS
• $150m in latest funding round by Nasper
• Iconiq Capital - another new investor
• Tiger Global and Accel Partners make follow-on
investments
• MIH India pumping a little over $90 million

36. Primary
Research
Suggestions
Secondary
Research

37. Suggestions
• Monthly foreign magazine e.g. Man U magazine
• Loyalty program, combo offers
• Music instruments
• Outdoor kits, posters, sporting event DVDs
• Greeting Cards
• Sponsor an Inter School Literary Competition to
encourage students to read
• Along with book ordered, send some more books (
popular and related ) with the courier guy to show to
customers
• Flyte, digital music sales channel of Flipkart can have
a relook at the prices

38. References
• www.flipkart.com
• http://thenextweb.com/in/2012/08/13/digital-music-takes-indias-flipkart-
flyte-soars-past-600000-downloads-6-months/
• http://timesofindia.indiatimes.com/tech/news/internet/Flipkart-raises-
150m-in-latest-funding-round/articleshow/15674360.cms
• http://www.quora.com/Is-Flipkart-making-a-profit
• http://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-
launches-its-operations-in-India
• http://blog.flipkart.com/2-new-features-cash-on-delivery-online
• http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-
door-step-card-payment-cod/
• http://www.hindustantimes.com/technology/IndustryTrends/How-
Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspx
• http://businesstoday.intoday.in/story/flipkart-online-shopping-e-
commerce-order-books-online/1/20797.html