flipkart

1. By Group 3 :-
10PT19 - Mahesh Jain
10PT14 - Farhan Ahmed
10PT23 - Meenakshi Gupta
10PT30 - Pankaj Gupta

2. 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.
• Founded by Sachin bansal & Binny bansal in Bangalore, Karnataka in 2007.
• Started with initial capital of INR 4 lakh.
• 7 warehouses, offices and delivery centers (2011).
• Revenue is of 75 Crore (FY 2010-11).
• 4600+ employees till December 2011.
• Subsidiaries are “We Read”, “Mime 360” and “Lets Buy”.

3. Management Team
Sachin Bansal
CEO and Co-founder
Sachin spent his early years in Chandigarh. He graduated from IIT-Delhi with a
degree in Computer Engineering. In 2006 he joined Amazon.com in India which
Binny Bansal
COO and Co-founder
he later left to set-up Flipkart.
As CEO, Sachin oversees all the customer facing activities of the company
ranging from technology to marketing. 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.
Born and raised in Chandigarh, Binny went on to get a degree in Computer
Engineering from IIT Delhi. 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. This spans across
divisions like warehousing, logistics and customer support.
Binny is also passionate about soccer and NBA. An active sportsman, he used to
captain his school basketball and soccer teams.

4. Management Team
Mekin Maheswari
President, Technology
Mekin completed his B.E. from PESIT Bangalore in 2002. He started his career
with Yahoo! and then went on to join Ugenie where he created weRead, a
successful social network around books.
At Flipkart, Mekin is responsible for overseeing the company’s technological
operations. These include innovation and application of technology in areas
starting from supply chain to website management.
Mekin is an avid sports fan and was actively involved in badminton, table tennis
and cricket during his school and college days.
Sujeet Kumar
President, Operations
Sujeet completed his engineering from IIT Delhi. He worked in the KPO industry and
orchestrated several freelance projects before joining Flipkart in 2008.
At Flipkart he is responsible for overseeing supply-chain, warehousing and logistics. He is
also in charge of business development for all categories.
Sujeet loves playing bridge and poker.

5. 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.
•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.
•Flipkart broke even in March 2010 and claims to have had 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.
•As of today, Flipkart employs over 4672 people.

6. Funding
• 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).
• Private equity firms Carlyle and General Atlantic are in talks to jointly
invest about $150 million to $200 million in Flipkart, according to
sources.

7. Acquisitions
2010: WEREAD, a social book discovery tool.The stated goal was to give
Flipkart a social recommendation platform for buyers to make informed
decisions based on recommendations from people within their social
network.
2011: Mime360, a digital content platform company.
2011: Chakpak.com is a Bollywood news site that offers updates, news,
photos and videos. Flipkart acquired the rights to Chakpak’s digital
catalogue which includes 40,000 filmographies, 10,000 movies and close
to 50,000 ratings. Flipkart has categorically said that it will not be
involved with the original site and will not use the brand name.
2012: Letsbuy.com is India's second largest e-retailer in electronics.
Flipkart has bought the company for an estimated US$ 25 million.

8. Screenshot

9. Research Questions
• How did Flipkart get on to the top of India’s e-shopping market in just 4
years?
• What were the strategies implemented by Flipkart to create online
business in India?
• There are millions of retail websites and not many have achieved even a
fraction of the attention that Flipkart has. What is it that makes Flipkart
standout?
• What does Flipkart have that makes its model so Robust?
• What is there strategy behind acquisition of lets buy.
• What is there future road map?
• What are the major threats for Flipkart?

10. Order Lifecycle
• Attract users to the site
Family, Friends, SEO, SEM,WoM, Brand Building
• Provide selection
Make it easy to Find & Discover products
• Provide details to evaluate a product
Description, Specifications, UGC.
• Price well
Have to be competitive to the most obvious options
• Provide convenient payment options
Online, COD
• Confirm payment

11. Order Lifecycle (Cont…)
Get the item
 Procure from Supplier (Just-in-time) (Supplier selection)
Keep Inventory (Inventory Prediction, Planning)
Clean & Check for sanity
 Pages missing, MRP printed lesser than told to you
Pack the item
 Tamper proof, weather proof, breakage proof
Select courier & hand-over
 Courier performances vary across regions a LOT
Get tracking id & communicate to customer
 Follow-up for timely delivery
Take care of returns (faulty product/user changes their mind)
Minimize returns

12. Why they acquired lets buy
• They will be far ahead in the game, by the time Amazon make a full
fledge entry with their own brand retail products in India.
• It will make Flipkart stronger in the field of E-retailing.
• This acquisition fits in to their strategy of building dominant shares
in all the categories they operate in.
• The price they paid for this opportunity was very attractive.
• This will now, allow them to accelerate faster and to get to a share
similar to what they enjoy in online books category.
• This will strengthen the position of Flipkart in Indian market in light
of the quiet entry of Amazon in Indian e-commerce industry through
jungle.com.

13. What Went Right for Flipkart!
• 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.
• But the best thing they did was that they understood that too 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.

14. Challenges Faced By Flipkart
• Initially when they started out, it wasn’t easy for us to earn the trust of the
customer.
• Handling customer complaints, without having a ‘face’ to our customer service
proves to be bit of a challenge at times.
• 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.
• 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 we 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!)

15. What makes it stand out?
• The procurement model is at the heart of Flipkart’s success, as
most delays or troubles occur in this part of business.
• Flipkart employed consignment model i.e. procurement based on
demand.
• It is the robust logistics at Flipkart that sets it apart from other
wannabe e-commerce sites.
• An amazingly well-oiled warehousing and delivery system..
• They offer a huge range of titles (more than 7 million) which really
sets them apart from the rest of the crowd.

16. Marketing Strategy
• Flipkart has been mostly marketed by word of mouth advertising.
• Customer satisfaction has been their best marketing medium.
• Flipkart very wisely used SEO (Search Engine Optimization) and
Google Ad-words as the marketing tools to have a far reach in the online
world.
• Flipkart.com official Face book page has close to 9 lac 'likes'. Flipkart
recently launched a series of 3 ads with the tag line - "No Kidding No
worries"
• Kids were used to create the adverts to send out the message - if a kid
can do it, you can also do it.
• All in all to create a great customer experience.

17. Flipkart’s Success mantra!
• Great customer service
Flipkart users are more satisfied than that of their competitors. Great
customer service has been its hallmark.
• Easy to use website, hassle free payment system
The user interface is sleek and easy to use.
• Cash on delivery/Card on delivery mode of payment
This has been a major instrument in Flipkart’s success. Almost 60% of its
sales happen through this mode. Cash on delivery created trust in the
minds of Indian customers who were always weary of making payments
online.
• Focused on user experience
Every other e-commerce site, tried to cram the maximum of amount of
information possible into every single page where as Flipkart focused on
providing only the relevant info.

18. Advertisements By Flipkart

19. 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.

20. Startups Hiring? Do it the Flipkart way!
Hiring or rather right hiring is one of the critical factors contributing to a
startup’s success, So some of the key criteria that the Flipkart team looks
at while hiring are :
• They typically don’t look at specialists to come on board rather they
look out for generalists with the attitude to learn and adapt to the
fast pace of growth .
• “Everyone in the team on a collective and individual level needs to have
a high sense of ownership. This is something which clearly
differentiates a high performing organization from the others.
• Your hiring process is the best brand campaign for you –
“Transparency in hiring is one of the best ways to attract the right kind of
talent

21. Threats to its Crown
• There are no major foreseeable threats in the future.
• The company has built a great brand name, they just have to
maintain and enhance the same.
• Need to keep introducing more products, adapting to the changing
needs of the customer with time.
• The entry of Amazon.com in 2012 in the Indian e-commerce space
has been cited as a big challenge to Flipkart.
• However i think that Flipkart is a respected Brand name in India and
should be able to compete with Amazon.
• Remember Amazon being a very big company can bring in serious
competition to Flipkart, since Amazon can bear more losses in the
beginning to gain customer base.

22. Threats to its Crown(Cont..)
• But again Indian market is growing at a rapid pace as access to
internet increases and people become more aware of e-commerce sites
and start trusting the same.
• Hence Indian market is sufficiently big at-least for these two giants to
co-exist beneficially.

23. Future Road Map
• They aim at 10 times growth, and eyes at $ 1Billion sales by 2015.
•They will look at bigger investments in their supply chain and
technology.
• Investment will be made in large warehouses and increased
automation of their process, so that the product is not delayed.
• They intend to enter in to various new categories and expand their
current categories as well.
• Everything except for groceries and automobiles will be available on
Flipkart in future.
• To go further in the value chain, Flipkart is looking at associations
with a larger number of suppliers and partners, both nationally and
internationally.

24. Conclusion
• Flipkart, the first billion dollar Internet company from India(going by 2015
estimates )is by far the leading online store in the nation.
• Now that Amazon is reportedly entering India in early 2012, this news
becomes even more significant, considering that Amazon has previously,
and unsuccessfully, tried acquiring the company, with Flipkart demanding a
very high buyout price.
• With online retail industry in India pegged to reach $1.5 billion (2015),
sources suggest that e-commerce is just hotting up in India and we may
soon seen many more Internet companies achieving similar success

25. Thank You