Complete description about Flip-cart

1. UNIT- 5
Dr. Kumar Ratnesh

2. 1. INTRODUCTION
2. VISION, MISSION AND VALUES
3. FOUNDERS
4. COMPANY HISTORY
5. FLIPKART WAREHOUSES
6. FOLLOWERS OF FLIPKART
7. FUNDINGS
8. ACQUISITIONS
9. CHALLENGES FACED BY FLIPKART
10. WHAT WENT RIGHT FOR FLIPKART?
11. USER INTERFACE
12. MARKETING STRATEGIES
13. MARKETING MIX
14. REVENUES AND INVESTMENTS
15. LONG TERM OBJECTIVES

3. • 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.

4. •Founded by Sachin bansal & Binny bansal in
Bangalore, Karnataka in 2007.
•Started with initial capital of INR 4 lakh.
•7 warehouses initially, offices and 60 delivery
centers (2015).

5. •Current valuation is $11 billion (Feb 2016).
• 4600+ employees.
•Subsidiaries are “We Read”, “Mime 360” and
“Lets Buy”.

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

7. SACHIN BANSAL
BINNY BANSAL

8. Sachin Bansal
➢CEO and Co-founder
➢Sachin spent his early years in
Chandigarh.
➢He graduated from IIT-Delhi with a
degree in Computer Engineering.
Sachin Bansal
CEO and Co-founder

9. ➢In 2006 he joined Amazon.com in India which
he later left to set-up Flipkart.
➢As CEO, Sachin oversees all the customer
facing activities of the company ranging from
technology to marketing.

10. ➢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.

11. Binny Bansal
COO and Co-founder
Binny Bansal
❖COO and Co-founder
❖Born and raised in Chandigarh,
Binny went on to get a degree in
Computer Engineering from IIT
Delhi.

12. ❖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.

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 and NBA.
❖An active sportsman, he
used to captain his
school basketball and
soccer teams.

14. ✓ 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.

15. ✓ 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.

16. ✓ Flipkart broke even in March 2010 and claims to have 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.

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’s Naspers.

23. We Read
2010
2010
2012

24. ➢ 22nd May2014
➢ Flipkart acquired Myntra for
2000 crore.
➢ Future investment of 600
crore in the fashion industry
by Flipkart

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, no worries”
“Shopping ka naya address”

27. THE JOURNEY TILL 2015

28. ❖ 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.

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.
❖ In India, it’s amazing Logistics that prove to be the game-
changer and that’s exactly what the folks at Flipkart have
done.

30. o Initially when they started out, it
wasn’t easy for them to earn the
trust of the customer.
o Handling customer complaints,
without having a ‘face’ to their
customer service proves to be bit
of a challenge at times.

31. o Not having the ‘display’ advantage, the ‘browsing’ feature and
not being able to carry out promotional activities are some
other obvious challenges.
o 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.

32. o The fact that highest number of orders and sales get
registered during weekends proves to be tough at times for
logistics and customer service.
o The fact that they 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!)

37. Supplier or merchants
➢Open platform for everyone to become merchant
➢Required a product portfolio to get registered as a
merchant on Flipkart
➢Product is placed depending on the category of the
product.
➢Product undergoes a Quality check by the company
itself before getting live

38. What merchant gets!!!
•Brand name visibility
•Quick and easy access by the customers
•Increase in the sales by reaching out customers.
•Also brand presence on social networking sites.

41. TARGETING
POSITIONING

42. Youth Generation Current buyer
Educational
institutes
Internet friendly
people
Socially
connected people
Shopaholic

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

44. ❑More focus in metro cities near to airports.
❑Much focus on tier-1 cities
❑Only focus in India
❑Maximum contribution of sales from tier -1 cities.
❑Less contribution by rural area due to lack of
internet knowledge

45. 55%
21%
16%
8%
Sales
Tier 1
Tier2
Tier 3
Rural

46. Cash on delivery
EMI option
30- Days replacement
policy
E wallet and e Vouchers
User friendly interface

47. Marketing campaign like no kidding no
worrying
Using Google Ad Choices
Promo coupons
One hour sale

49. PRODUCT
PLACE
PROMOTIO
N
PRICE

50. Wide range of products categories:
➢Electronic good
➢Apparels
➢Home and kitchen appliances
➢Men’s and women’s accessories
➢Computer peripherals
>Software's
>Hardware's

51. ➢Books and media
➢Sports store
➢Baby and kids section
a.Wear outs differentiated on the basis of
age.
>Girls
>Boys
b.Foot wares
>Girls
>Boys
c.Baby care

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

53. ✓Much less price then other e-commerce websites
✓Availability of E wallets and E-Gifts
✓EMI option for specific products
✓Discounted coupons
✓Free shipping facility
✓Special discount and promotional codes for the loyal
customers.

54. ✓ Above the line promotion:
• TV Advertisement
• Radio jingles
• Print ads
✓ Below the line promotion:
• Word of mouth
• Bulk mailing
• In app push notification
✓ Through the line promotion:
• 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, the CEO said. “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 the market.”

58. • US $ 100 million
revenue.
• Diversify product
portfolio into
home appliances,
electronics, etc.
2012
• US $ 1 billion
revenues.
• Aggressive
acquisitions.
• Stronger supply
chain.
2015
• Largest retailer in
India.
• Enter global
markets.
2020

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

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

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

64. 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.

67. • 24*7 Customer support service .
• Price reduction or discounted price.
• Better Search Engine Optimization
• Advance advertising and promotion.
• Multiple payment method.
• EMI option availability
• E voucher and e-gifts

68. • Less internet knowledge in the
small cities
• Less penetration in the small
cities
• No delivery to remote areas.
• Negative perception about
online transaction.

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

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

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