flipkart marketing strategies

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a complete study of flipkart and its future scope throough amazing set of ideas and services it could offer to its customers

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flipkart marketing strategies

  1. 1. •Leading e-commerce Company in India BOOKS •Founded in 2007 by LIFESTYLE FLIPKART PAYMENT GATEWAY SERVICES Sachin Bansal and Binny Bansal CONSUMER GOODS E-KART WS RETAIL VALUED AT 9760 Cr.
  2. 2. •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.
  3. 3. 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.
  4. 4. 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: SALE OF DIFFERENT PRODUCTS CONTRIBUTION 9% 23% TIER 1 40% 51% TIER 2+3 RURAL 48% ELECTRONIC GOODS BOOKS 29% LIFESTYLE AND ALLIED PRODUCTS
  5. 5. S T R E N G T H S .Industry condition: very high potential .Investor’s trust .Services and warehousing .Payment options .Established brand W E A K N E S S .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.
  6. 6. .Development of m-commerce in the e-market OPPORTUNITIES O .Increasing internet penetration .Target social medias to reach young population .High interest among VC/PE. .High competition from major international online retailers .Capture of alternative market by competitors e.g.Infibeam THREATS T
  7. 7. • Amazon.com/ Amazon.in • Junglee.com. • EBay • SnapDeal • Jabong.com • Homeshop18 • Yebhi.com
  8. 8. Key success factors: •First mover advantage •Experience of E-commerce industry •Investments •Cash on delivery •Customer orientation
  9. 9. 2010: •Voice based search (July 2013) We read •Online payment solution 2012: •Flipkart e-books (July 2013) •Men's wear (October 2013) Letsbuy.c 2011: ACQUISITIONS Mime360 om 2011: Chakpak. com Shutdown of flyte (the digital music store, june 2013 )
  10. 10. •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. 11. 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. Archies Indiangi ftsportal .com Red moments iFEEL Cafepress. com
  12. 12. •Initially in Mumbai and NCR •Mandatory registration •Uploading Identification proof mandatory •Minimum order of $16 RETAILER CONFIRMS THE AVAILABILITY OF STOCK ORDERS PLACED WITH FLIPKART FLIPKART RETAILERS CUSTOMER RETAILER DELIVERS ALLOCATION OF ORDERS WITH RETAILERS SATISFIED CUSTOMER
  13. 13. • • • • •
  14. 14. Internet users by age 6% 3% 16% 35% 40% Internet users by age (source: survey) 15-24 25-34 35-44 45-54 55+ Youth population (million) 500 400 430 464 353 300 youth population (million) 200 100 0 2001 2011 2021
  15. 15. •Flipkart targets mainly the youth of the country, •Web friendly people. •Target markets should include oPeople who do not relate well with English language, oAcademic institutions and people associated with it oCurrent buyers
  16. 16. 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.
  17. 17. “Bookstore at your door” “The store at your door” “Jo dikhta hai wo bikta hai” “No kidding, no worries” “Shopping ka naya address”
  18. 18. • • • • • • • Product Price Promotion Place Process People Physical evidence
  19. 19. •Aims most segments except automobiles and groceries. FICTION ACADEMIC LITERATURE CHILDREN ELECTRONIC GOODS HOUSEHOLD ELECT. MOBILE TECHNOLOGIES PERIPHERALS,WELLNESS APPARELS ACCESSORIES Suggested: Flipifts, bottoms up, extended range of academic books
  20. 20. 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.
  21. 21. PLACE: •Inventory at 4 major centersMumbai, Delhi, Bangalore, Kolkata PROCESS: •Cash on delivery •Delivery services through e-kart and postal services •Delivery time •Covers all tier-1 cities and major tier-2 and tier-3 cities •Debit and Credit card transactions •Payzippy safe payments •Suggested: Vernacular language
  22. 22. 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
  23. 23. 5000 Revenue In INR Cr. 2000 1000 500 4 2008-09 20 2009-10 75 2010-11 2011-2012 2012-2013 2013-14 2015
  24. 24. • 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
  25. 25. INVESTMENTS 400 350 360 300 250 200 150 $million 150 100 50 1 0 2009 10 2010 20 2011 2012 2013
  26. 26.  LIQUOR : • Liquor Iicense-20-30 lacs (INR) • Pricing: approximately 20% highly priced than MRP. (INR) FLIPIFTS : •Wrapping Expense • Advertising • Earnings per 15% of cost of the gift

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