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MARKETING PLANS AND
STRATEGIES FOR FLIPKART
Rahul kumar
1st MBA
2015-2017
INTRODUCTION
•Leading e-commerce
Company in India
•Founded in 2007 by
Sachin Bansal and Binny
Bansal
VALUED
AT 9760
Cr.
WS RETAIL
FLIPKART
PAYMENT
GATEWAY
SERVICES
E-KART
BOOKS
CONSUMER
GOODS
LIFESTYLE
E-COMMERCE INDUSTRY IN INDIA
•Poised for rapid growth
• Fastest growing
amongst Asia pacific region.
•Expanding into non-metropolitan India.
•Social media and mobile technologies are accelerating
e-commerce adoption.
•Large retailers are looking forward to build an online
presence.
WORTH
MARKET DEMOGRAPHICS
GEOGRAPHIC:
CATERS TO TIER 1, TIER 2 AND TIER 3 CITIES
USAGE RATE:
•Third largest internet user base of 124 million (10% internet penetration)
•India’s mobile user base is 87.1 million and is expected to double by March 2015
.Flipkart projects its sales to reach INR 10 billion by year 2014.
•On average, Flipkart sells nearly 20 products per minute and is aiming at generating a revenue
of INR 50 billion (US$1 billion) by 2015.
•Flipkart has 10 million registered users; about a million visit the site every day.
•The users of age 15-34 years are most susceptible to changes in purchase/consumption
behaviour.
AGE GROUP:
•Youngest online demographic globally .
•75% of online users between the age group of 15-34 years.
MARKET GROWTH AND TRENDS
MARKET GROWTH:
•Current size of e-commerce market in India $11.2
billion
•360 e-commerce portal offering services in India
(tripled since 2010)
• Internet users in India is expected to grow to 376
million by 2015.
MARKET TRENDS:
51%40%
9%
CONTRIBUTION
TIER 1
TIER 2+3
RURAL
23%
29%
48%
SALE OF DIFFERENT PRODUCTS
ELECTRONIC
GOODS
BOOKS
LIFESTYLE AND
ALLIED
PRODUCTS
.Industry condition: very high
potential
.Investor’s trust
.Services and warehousing
.Payment options
.Established brand
.Entry of international on-line
competitors in Indian market
.Customers are not comfortable with
online payment
.Not profitable operationally
.Time to build confidence among the
customers
.Middle management retention issues.
S
T
R
E
N
G
T
H
S
W
E
A
K
N
E
S
S
.High competition from
major international online
retailers
.Capture of alternative
market by competitors
e.g.Infibeam
.Development of m-commerce
in the e-market
.Increasing internet
penetration
.Target social medias to reach
young population
.High interest among VC/PE.
THREATS
OPPORTUNITIES
O
T
MAJOR COMPETITORS
• Amazon.com/ Amazon.in
• Junglee.com.
• EBay
• SnapDeal
• Jabong.com
• Homeshop18
• Yebhi.com
KEY SUCCESS FACTORS
Key success factors:
•First mover advantage
•Experience of E-commerce industry
•Investments
•Cash on delivery
•Customer orientation
STRATEGIES
•Membership cards and premium facilities.
•Extended range of academic books.
•Providing Sponsorships.
•Vernacular language option on websites.
•Better featured user interface.
•Cost cutting on packaging.
•Flipifts
•Liquor
FLIPIFT’S COMPETITORS
Archies
Indiang
iftsport
al.com
Red
moments iFEEL Cafepres
s.com
FLIPIFT’S:-
•All consumer goods, generic gift products, customized goods.
•A different section for generic and customized products under flipift
•Presto, customized gift manufacturer and retailer-sole provider of
customized goods
•Will also be supported by IP tracking systems to enhance
repeatability.
TARGETING
0
100
200
300
400
500
2001 2011 2021
353
430
464
Youth population (million)
youth
population
(million)
35%
40%
16%
6%
3%
Internet users by age
15-24
25-34
35-44
45-54
55+
Internet users by age
(source: survey)
Points of parity:
• Easy locating of products
• Competitive prices.
• No hassles of going to shops
personally and shop for products
• Availability of various products on one
platform
• Discount on purchases.
• Home delivery
• Gifting services
• Cash on delivery
• Availability of liquor
• Flipifts
• Academic related books
Points of Difference:
•Flipkart membership cards
for premium customers
•E-wallet
•Vernacular language
•Better user interface-one
drag approach.
POSITIONING
MARKETING MIX
• Product
• Price
• Promotion
• Place
• Process
• People
• Physical evidence
PRICE AND PROMOTION
PRICE:
•Offers discount
•E-wallet
•E-gift vouchers
Suggested:
• membership cards with
points facility
PROMOTION:
•Advertising
•Online marketing
•Media
•Word of mouth
Suggested:
•sponsorships
• e-wallet promotion
• themes of advertisements
concentrating on different services
provided.
PLACE AND PROCESS
PLACE:
•Inventory at 4 major
centers-Mumbai, Delhi,
Bangalore, Kolkata
•Delivery services through
e-kart and postal services
•Covers all tier-1 cities and
major tier-2 and tier-3
cities
PROCESS:
•Cash on delivery
•Debit and Credit card
transactions
•Delivery time
•Payzippy safe payments
•Suggested: Vernacular language
PEOPLE AND PHYSICAL
EVIDENCE
PEOPLE:
•Customer services
•Investors
•Employees
PHYSICAL EVIDENCE:
• The packaging and quality of
product
•Prompt delivery
•30 day return policy
Suggested- Better user interface,
IP tracking for Flipifts
FINANCES
4 20 75
500
1000
2000
5000
2008-09 2009-10 2010-11 2011-2012 2012-2013 2013-14 2015
Revenue In INR Cr.
• 2009: $1 million from Accel Partners
• 2010: $10 million from Tiger Global
• 2011: $20 million from Tiger Global
• 2012: $150 million from Naspers, Tiger Global and Accel Partners
• 2013: $360 million in two phases:
• 2013, July: $200 million from Naspers, Accel Partners, Tiger Global and
Iconiq Capital
• 2013, October:$160 Million from Dragoneer Investment, Morgan
Stanley, Sofina, Vulcan Capital, Tiger Global
INVESTMENTS
0
50
100
150
200
250
300
350
400
2009
2010
2011
2012
2013
1 10 20
150
360
INVESTMENTS
$million
THANK YOU

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Rahul flipkart mktg strategies.

  • 1. MARKETING PLANS AND STRATEGIES FOR FLIPKART Rahul kumar 1st MBA 2015-2017
  • 2. INTRODUCTION •Leading e-commerce Company in India •Founded in 2007 by Sachin Bansal and Binny Bansal VALUED AT 9760 Cr. WS RETAIL FLIPKART PAYMENT GATEWAY SERVICES E-KART BOOKS CONSUMER GOODS LIFESTYLE
  • 3. E-COMMERCE INDUSTRY IN INDIA •Poised for rapid growth • Fastest growing amongst Asia pacific region. •Expanding into non-metropolitan India. •Social media and mobile technologies are accelerating e-commerce adoption. •Large retailers are looking forward to build an online presence. WORTH
  • 4. MARKET DEMOGRAPHICS GEOGRAPHIC: CATERS TO TIER 1, TIER 2 AND TIER 3 CITIES USAGE RATE: •Third largest internet user base of 124 million (10% internet penetration) •India’s mobile user base is 87.1 million and is expected to double by March 2015 .Flipkart projects its sales to reach INR 10 billion by year 2014. •On average, Flipkart sells nearly 20 products per minute and is aiming at generating a revenue of INR 50 billion (US$1 billion) by 2015. •Flipkart has 10 million registered users; about a million visit the site every day. •The users of age 15-34 years are most susceptible to changes in purchase/consumption behaviour. AGE GROUP: •Youngest online demographic globally . •75% of online users between the age group of 15-34 years.
  • 5. MARKET GROWTH AND TRENDS MARKET GROWTH: •Current size of e-commerce market in India $11.2 billion •360 e-commerce portal offering services in India (tripled since 2010) • Internet users in India is expected to grow to 376 million by 2015. MARKET TRENDS: 51%40% 9% CONTRIBUTION TIER 1 TIER 2+3 RURAL 23% 29% 48% SALE OF DIFFERENT PRODUCTS ELECTRONIC GOODS BOOKS LIFESTYLE AND ALLIED PRODUCTS
  • 6. .Industry condition: very high potential .Investor’s trust .Services and warehousing .Payment options .Established brand .Entry of international on-line competitors in Indian market .Customers are not comfortable with online payment .Not profitable operationally .Time to build confidence among the customers .Middle management retention issues. S T R E N G T H S W E A K N E S S
  • 7. .High competition from major international online retailers .Capture of alternative market by competitors e.g.Infibeam .Development of m-commerce in the e-market .Increasing internet penetration .Target social medias to reach young population .High interest among VC/PE. THREATS OPPORTUNITIES O T
  • 8. MAJOR COMPETITORS • Amazon.com/ Amazon.in • Junglee.com. • EBay • SnapDeal • Jabong.com • Homeshop18 • Yebhi.com
  • 9. KEY SUCCESS FACTORS Key success factors: •First mover advantage •Experience of E-commerce industry •Investments •Cash on delivery •Customer orientation
  • 10. STRATEGIES •Membership cards and premium facilities. •Extended range of academic books. •Providing Sponsorships. •Vernacular language option on websites. •Better featured user interface. •Cost cutting on packaging. •Flipifts •Liquor
  • 11.
  • 12. FLIPIFT’S COMPETITORS Archies Indiang iftsport al.com Red moments iFEEL Cafepres s.com FLIPIFT’S:- •All consumer goods, generic gift products, customized goods. •A different section for generic and customized products under flipift •Presto, customized gift manufacturer and retailer-sole provider of customized goods •Will also be supported by IP tracking systems to enhance repeatability.
  • 13. TARGETING 0 100 200 300 400 500 2001 2011 2021 353 430 464 Youth population (million) youth population (million) 35% 40% 16% 6% 3% Internet users by age 15-24 25-34 35-44 45-54 55+ Internet users by age (source: survey)
  • 14. Points of parity: • Easy locating of products • Competitive prices. • No hassles of going to shops personally and shop for products • Availability of various products on one platform • Discount on purchases. • Home delivery • Gifting services • Cash on delivery • Availability of liquor • Flipifts • Academic related books Points of Difference: •Flipkart membership cards for premium customers •E-wallet •Vernacular language •Better user interface-one drag approach. POSITIONING
  • 15. MARKETING MIX • Product • Price • Promotion • Place • Process • People • Physical evidence
  • 16. PRICE AND PROMOTION PRICE: •Offers discount •E-wallet •E-gift vouchers Suggested: • membership cards with points facility PROMOTION: •Advertising •Online marketing •Media •Word of mouth Suggested: •sponsorships • e-wallet promotion • themes of advertisements concentrating on different services provided.
  • 17. PLACE AND PROCESS PLACE: •Inventory at 4 major centers-Mumbai, Delhi, Bangalore, Kolkata •Delivery services through e-kart and postal services •Covers all tier-1 cities and major tier-2 and tier-3 cities PROCESS: •Cash on delivery •Debit and Credit card transactions •Delivery time •Payzippy safe payments •Suggested: Vernacular language
  • 18. PEOPLE AND PHYSICAL EVIDENCE PEOPLE: •Customer services •Investors •Employees PHYSICAL EVIDENCE: • The packaging and quality of product •Prompt delivery •30 day return policy Suggested- Better user interface, IP tracking for Flipifts
  • 19. FINANCES 4 20 75 500 1000 2000 5000 2008-09 2009-10 2010-11 2011-2012 2012-2013 2013-14 2015 Revenue In INR Cr.
  • 20. • 2009: $1 million from Accel Partners • 2010: $10 million from Tiger Global • 2011: $20 million from Tiger Global • 2012: $150 million from Naspers, Tiger Global and Accel Partners • 2013: $360 million in two phases: • 2013, July: $200 million from Naspers, Accel Partners, Tiger Global and Iconiq Capital • 2013, October:$160 Million from Dragoneer Investment, Morgan Stanley, Sofina, Vulcan Capital, Tiger Global INVESTMENTS