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Flipkart success story


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indepth study, complete overview of FLIPKART, start-till date. mission, vision, acquisitions, policies, plans, organizational chart etc.

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Flipkart success story

  1. 1. ► Leading Indian E Commerce company headquartered in Bangalore. ► Started by two IIT graduates BINNY AND SACHIN BANSAL in year 2007, who were also ex-amazon employees. ► India’s largest online bookseller with over 11.5 million titles in offer. ►Flipkart projects its sales to reach 10 billion by year 2014. ►Sells nearly 10 products per minute. ► First company to introduce Cash On Delivery payment system, a 30-day replacement policy, EMI options, free shipping - and of course the great prices.
  2. 2. CEO Sachin Bansal ENGINEERING Mekin Maheshwari OPERATIONS Sujeet Kumar COO Binny Bansal
  3. 3. “To become Amazon of India”. Providing a delightful and memorable customer experience “Completely hassle free shopping experience with best prices in India”. VISION MISSION OBJEVTIVES
  4. 4. FLIPKART Normal people (for gifts, etc.) Students/Academicians and Corporate/executives Book lovers
  5. 5. ► 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.” STRATEGIC OBJECTIVES:
  6. 6. • 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 FINANCIAL OBJECTIVES:
  7. 7. 4 20 75 500 1000 2000 5000 Revenue In INR Cr.
  8. 8. Evaluation of Alternatives Customer perceived value Wider range across all categories Purchase Decision Faster turn around time Cash/Card on Delivery Easy Return Procedure in case DOA Post- Purchase behavior Feedback on Flipkart website and other blogs Word of Mouth Affiliate
  9. 9. ►Attract users to the site ►Provide selection ►Provide details to evaluate a product ► Price well ►Provide convenient payment options ►Confirm payment ORDER LIFECYCLE:
  10. 10. ►Get the item ►Clean & Check for sanity ►Pack the item ►Select courier & hand-over ►Get tracking id & communicate to customer ►Take care of returns(faulty product/users change their mind)
  12. 12. ►Government support for increasing Internet penetration in India. ► Tax benefits to corporate. ► 2012 Increase in stock holding % for foreign investors in companies. ► Resistance against foreign retailers POLITICAL:
  13. 13. ►Booming Indian economy. ►Increasing spending power. ►Skyrocketing fuel prices. ►Base of internet users multiplied by 10 to 11 times in last 6 years. ECONOMICAL:
  14. 14. ►Better comfort level and trust in online shopping. ►High priority on time and convenience. ►Improving usage of Broadband and high computer literacy. SOCIAL:
  15. 15. ► Advent of Mobile shopping. ► Increasing penetration rate of broadband and wireless internet. ► Better managed E commerce site for ease, privacy and advancements in net banking. TECHNOLOGICAL:
  16. 16. 2010: WeRead, a social book discovery tool. 2011: Mime360, a digital content platform company. 2011:, a Bollywood news site that offers updates, news, photos and videos. 2012:, an Indian e-retailer in electronics. Flipkart has bought the company for an estimated US$25 million. 2014: Acquired in an estimated INR 2,000 crore deal.
  17. 17. ►Lower transaction size ►Better Shelf size ►Shipping and handling of books is easy ►To emerge as a pioneer in book retailing rather than venturing comparison shopping engine WHY BOOKS AS FIRST CHOICE:
  18. 18. Online Book Sellers (20 % market)- Direct FLIPKART: Market leader with 80% share. INFIBEAM: 7% share. BOOKADDA: 5% share. Others (EBay, India Times): 8% share. Traditional Book Sellers (80% market share)- Indirect General Book Stores/ fragmented over whole country. Branded book chain (Crosswords, Om Book Depot, Landmark, etc.) in Tier 1 cities.
  19. 19. ►In July 2014 Flipkart launched its own set of tablet, mobile phones & Phablet. The first among these series of tablet phones was Digiflip Pro XT 712 Tablet. ►In July 2014 Flipkart launched it's first networking Router, under its own brand name named DigiFlip WR001 300 Mbit/s Wireless N Router. ►In September 2014 Flipkart launched its in- house home appliances and personal healthcare brand Citron. The label includes a wide range of cooking utilities and grooming products.
  21. 21. ► 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
  22. 22. Archies Indiangifts Red moments iFEEL Cafepres ► 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.
  24. 24. Cost Heavy discounts on books Free shipping for purchases above Rs. 300 Consumer Availability of products across 14 categories Books can be ordered before they are launched Pan India presence Communication Advertisements via Search Engine Optimization Transparent Communication Once the customer places an order, progress can be tracked Convenience Ease of finding the product and related information Purchase at the click of a button Cash/ Card on Delivery Marketing Mix
  25. 25. FICTION ACADEMIC LITERATURE CHILDREN ELECTRONIC GOODS HOUSEHOLD ELECT. MOBILE TECHNOLOGIES PERIPHERALS,WELLNESS APPARELS ACCESSORIES Eg: Flipifts, bottoms up, extended range of academic books •Aims most segments except automobiles ad groceries. PRODUCT:
  26. 26. ► Offers discount ► E-wallet ► E-gift vouchers ► Eg: membership cards with points facility ► Advertising ► Online marketing ► Media ► Word of mouth ► Suggested: ► sponsorships ► e-wallet promotion ► themes of advertisements concentrating on different services provided. PRICE: PROMOTION:
  27. 27. ►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 ► The packaging and quality of product ► Prompt delivery ► 30 day return policy ► Suggested- Better user interface, IP tracking for Flipifts PLACE: PHYSICAL DISTRIBUTION:
  28. 28. Key Success factors: • brand loyalty • User experience • Reliability • convenience • delivery reach • delivery time • mobile shopping • availability • product modes (printed/ e-books) • titles Threshold factors: Brand awareness, price. Competencies: • large self owned delivery channels • supplier network/ first to market • mobile shopping solution/ increased reach • innovation in services/payments/technolog y • excellent customer services • internet strategy (search engine optimization, platform advancement) • large loyal customer base. Value proposition: “Completely hassle free shopping experience with best services to everyone, everywhere and everytime in India”. 43Prepared By:- AKASH TYAGI
  29. 29. STRENGHTS: ► Industry condition: very high potential ► Investor’s trust ► Services and warehousing ► Payment options ► Established brand ► Customer service ► Online discoverability ► Inventory management ► Self owned delivery network ► Supplier network/relation ► Innovation and technology competence ► Brand ► Supply Chain Management ► Quick Turnaround Time ► Advertisement And Promotion ► Strategic Acquisitions ► Huge Reach ► Self owned logistics i.e. E-KART ► Strong Brand value ► Self owned online gateway i.e payzippy ► Exclusive tie ups
  30. 30. WEAKNESSES: ► 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. ► No control over small value orders ► Free shipping built costs ► Less reach as compared to physical book stores. ► Global reach. ► Investor driven organisation ► Capital and technology intensive ► Less reach compared to physical stores ► Shipping cost for small value orders
  31. 31. OPPORTUNITIES: •growth in e-tail ► growth in e-book culture ► broadband penetration ► mobile apps ► development of m-commerce in the e-market ► increasing internet penetration ► target social medias to reach young population ► high interest among vc/pe. ► untapped mobile users ► coverage of all parts of india ► tie ups with book fairs/education institutes. ► enter new untapped global markets ► Self e-publishing ► Global markets ► Growing demands of e-retailers ► Increassng access to internet ► Rapid adoption of mobile platforms
  32. 32. THREATS: ► High competition from major international online retailers ► Capture of alternative market by competitors ► e.g.Infibeam, ► Low internet penetration ► Less usage/preference of online buying ► Small value orders in remote areas with high delivery costs ► Amazon will enter soon ► Economic downturns ► Price wars ► Insecure online transactions due to increased cases of hacking
  33. 33. • Large supplier base. • Decreasing popularity of printed books. • Traditional book stores. • Advent of E book readers like I Pad and Kindle. • Presence of multiple players & traditional retail stores. • Cheap old/used book vendors. • Low capital investment. • High technological intensive players. Threat of new Entrants Bargaining Power of Buyers (High) Bargaining power of Supplier (Low) Threat Of Substitutes (Low) Rivalry Among Competitors (High) • Low entry barriers •Huge market.
  34. 34. PRESENTED BY: Ashwarya Chaudhary Mamta Gupta Shivani Singhal Shubhita Batra Sonvi Gupta Sudipta Sabharwal