I am Binny Bansal
COO & Co-founder
I am Sachin Bansal
CEO & Co-founder
• Online Retail Industry
• It is one of the leading e-commerce players in the country
• 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 (2014).
• Revenue is of Rs 1180 Crore (US$190 million) (FY 2013-14).
• 4600+ employees till December 2013.
Birth of flipkart.com
They were IIT-Delhi graduates
Big believers and passionate about E-commerce
They worked for Amazon.com before quitting and founding their own company.
Sniffed the trend of increasing internet penetration in India.
Had better knowledge of technology, distribution and logistics.
they used word of mouth marketing to popularize their company
give better experience to consumer in terms of
user friendliness and
safe and secure net-payment options.
Leaving Microsoft to Change the World bought by VVK.Chandra from Andhra Pradesh
Reason for the growth in India
• 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
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)
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
• 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.
• Flipkart has been mostly marketed by word of mouth advertising.
• Customer satisfaction has been their best marketing medium.
• Marketing tools to have a far reach in the online world are
• used SEO (Search Engine Optimization) and
• Google Ad-words
• 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.
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
• 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.
Threats to its Crown
• Maintain and enhance the same.
• Entry of Amazon.com 2012S
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
• 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
Website is great, easy to use, easy to browse
Quality level of the products is absolutely fine
Products are well packed
Product line on Flipkart.com have warranties
30-day replacement guarantee for faulty
• Words of mouth has been key driver for their
• When an order is placed they either serve the
order from their inventory or procure the book
on demand from various supplier and then
deliver the customer.
• which helps in quick and efficient service.
• We deliver orders in 1 day in Tier-I cities and 2-3
days in Tier IIcities and 3-5 days Tier III cities
• Shipping and Courier would act as intermediaries
in this process.
• Warehouses are located in the following cities, often
Price of the product taking account of various expenses such asSupplier expenses,
Transportation expenses, Packagingexpenses, Shipping expenses,Courrier
expenses, inventorymaintenance expense, office and stationery expenses, sales
andadvertisement expenses, taxes, depreciation, discountallowances and many
Roughly about 5-7% profit per book orders which indicates thatgeneration of
revenue is on volume basis.
Differentiated themselves by giving best selections, best servicesat lowest best
possible prices. (Video
for the same)
Discounts upto 35% across all categories.
Upper edge in competitive pricing.
• Employees of divisions like Website, Business Planning andAnalytics, ERP,
Business Development, Product Managementand Marketing, Supply-Chain
Management and CustomerSupport are generating revenue for it.
• Selection Criteria at Flipkart:-While years of experience arealways
beneficial for a candidate, Flipkart's focus is to hire thosewho are able
to consistently raise the bar and introduce a varietyof innovations to move
this organization forward. As Flipkartgrows, we feel it is absolutely
necessary that our employees arealso able to grow professionally with the
• Adequate Training as per their roles and responsibilities is givento them
accordingly and incentives.
• Telephone Sales force is only 2% of the total employeesfocussing to
reduce the unsold/goods not much in demand.
• Majority of Flipkart are employed in Customer support division.
• It is the only customer support division in India having
24x7customer support functioning for issues such as regardingchoice
of the product to purchase,shipping,courier,how to orderon website,
mode of payment, gift voucher, order status &cancellation and returns.
• Having even tie up with Skype for the same on the website foruser delight.
• Unique tool of Sales Promotion is Affliate on their website.
• Publicity is by words of mouth publicity generating trust andaccountability
to users. (Video
• for the same)
As internet/web strategy used Google Ad-words, blogs,socialnetworking sites
such as twitter,facebook,used Google ad-words,e-mail campaigns.
Advertising focused on first
Words of mouth from 2007-10 as the advertisment cost wasnot affordable
Focused on Print and TVC from 2011 onwards.
Launched their first campaign in tvc on 05/05/2011 with theconcept of Granny,
Mouse, Magic Presenting The Concept ofGetting Books Delivered at Doorsteps at
just one click of TheMouse through a Fairy-Tale.
Launced their second campaingn
”No kidding. Noworries” that we are serious about our promises we
make and experience shopping safely, delightfullyand with ease.