MD ATHUAL 25-05-2023 NEW.pdf

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Research Project Report
On
MARKETING STRATEGIES OF FLIPKART
Submitted for the partial fulfillment of the Award
Of
Master of Business Administration
DEGREE
(Session :2022- 2023)
SUBMITTED BY
MOHAMMAD ATAUL HAQUE
2102720700086
UNDER THE GUIDANCE OF
Dr PRAMOD KUMAR SRIVASTAVA
Department of Master of Business Administration
GNIOT-MBA Institute, Greater Noida
AFFILIATED TO
DR. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY (FORMERLY
UTTARPRADESH TECHNICAL UNIVERSITY), LUCKNOW

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STUDENT DECLARATION
I “MOHAMMAD ATAUL HAQUE” hereby declare that the work which is being
presented in this report entitled “MARKETING STRATEGIES OF FLIPKART” is
an authentic record of my own work carried out underthe supervision of Dr PRAMOD
KUMAR SRIVASTAVA The matter embodied in this report has not been submitted
by me for the award of any otherdegree/ Diploma/ Certificate.
Department of MBA Name of Student: - MD ATAUL HAQUE
Date:- 25-05-2023

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CERTIFICATE
This is to certify that the work which is being presented in this report entitled
“MARKETING STRATEGIES OF FLIPKART” is an authentic record of the
student carried out under my supervision. The statements made by the candidate are
correct to the best of my knowledge.
Dr.Raj Kamal Upadhyaya Name of Supervisor: PROMOD SIR
Head, Department of MBA Designation: PROFESSOR
Date:-25-05-2023

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ACKNOWLEDGEMENT
It is my pleasure to be indebted to various people, who directly or indirectly
contributed in the development of this work and who influenced my thinking ,
behavior, and acts during the course of study.
I am thankful to Dr PRAMOD KUMAR SRIVASTAVA for his support,
cooperation, and motivation provided to me during the training for constant
inspiration, presence and blessings.
I also extend my sincere appreciation to Dr PRAMOD KUMAR
SRIVASTAVA.who provided his valuable suggestions and precious time in
accomplishing my project report.
Lastly, I would like to thank the almighty, parents, Director and HOD of the institute
for their moral support and my friends with whom I shared my day- to-day experience
and received lots of suggestions that improved my quality of work.
.
MOHAMMAD ATAUL HAQUE

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CONTENTS
Sr. No. Topic Page no.
1 ABSTRACT 6
2 PREFACE 7
3 INTRODUCTION OF THE TOPIC 9-25
4 INTRODUCTION OF THE COMPANY 26-47
5 LITERATURE REVIEW 48-50
6 RESEARCH OBJECTIVE 51-52
7 RESEARCH METHODOLOGY 53-56
8 DATA ANALYSIS AND INTERPRETATION 57-81
9 FINDINGS 82-83
10 CONCLUSION 84-85
11 RECOMMENDATIONS, SUGGESTIONS 86-88
12 LIMITATIONS 89-91
13 BIBLIOGRAPHY 92-94
14 ANNEXURE 95-97

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INTRODUCTION
What is marketing strategy?
“Consumers do not buy what you sell. They buy what has value to them.” Marketing strategy has
the fundamental goal of increasing sales and achieving a sustainable competitive advantage. Marketing strategy
includes all basic, short-term, and long-term activities in the field of marketing that deal with the analysis of the
strategic initial situation of a company and the formulation, evaluation and selection of market-
oriented strategies and therefore contributes to the goals of the company and its marketing objectives.
Strategic marketing is a philosophy that leads to the process by which organizations, groups and individuals
obtain what they need and want by identifying value, providing for it, communicating it and delivering it to
others. The basic concept of marketing is customer’s needs, wants and values; products, exchange,
communication and relationship. Marketing is strategically concerned with the direction and scope of long-term
activities performed by the organization to obtain a competitive advantage. The organization applies its
resources within a changing environment to satisfy customer needs while meeting stakeholder expectation.
Definition
1. “Marketing strategy is consistently located and coordinated set of marketing actions, aimed at meeting
the long term marketing goal.” – PRANULIS (2008)
2. “A marketing strategy is a process or model to allow a company or organization to focus limited
resources on the best opportunities to increase sales and thereby achieve a sustainable competitive
advantage.”

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Why does marketing strategy matter?
“Marketing strategy allows you to use pathways and footholds that apply your limited marketing budget more
effectively.”
In marketing, there is strategy and there are tactics. A lot of marketing, in practice, is preoccupied with what I
call tactical experimentation. This is the act of throwing all kinds of things out at the world or at broad
demographic targets to see what works. As you do this you are spending money, potentially lots of it. The idea
in this method is to do this until you find some marketing actions that work, and when you find them you can
then do more of those.
This process often results in the classic Wanamaker dilemma—”Half the money I spend on advertising is
wasted; the trouble is I don’t know which half.” He was speaking of advertising, but the principle applies.
Marketing strategy allows you to use pathways and footholds that apply your limited marketing budget more
effectively (everyone’s marketing budget is limited). Marketing strategy facilitates your ability to apply
marketing money to the correct half of the Wanamaker equation—the half you are not wasting on audiences
who do not value your message.
To illustrate this principal with one of our own rather straightforward examples, when we looked at the South
Bronx as a marketplace for the Bronx Museum, the situation we saw was reflected by the first competitive
advantage diagram below; here, there is nothing in their offer, as understood by the consumer, that is of any
perceived value. The strategy, therefore, could not be to simply support the institutional desire to communicate
about all the great art that was on exhibit

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Marketing strategy vs. marketing managements
The distinction between “strategic” and “managerial” marketing is commonly used to distinguish "two phases
having different goals and based on different conceptual tools. Strategic marketing concerns the choice of
policies aiming at improving the competitive position of the firm, taking account of challenges and
opportunities proposed by the competitive environment. On the other hand, managerial marketing is focused on
the implementation of specific targets."
Importance of Marketing Strategy
 Marketing strategy provides an organization an edge over its competitors.
 Strategy helps in developing goods and services with best profit making potential.
 Marketing strategy helps in discovering the areas affected by organizational growth and thereby helps in
creating an organizational plan to cater to the customer needs.
 It helps in fixing the right price for organization’s goods and services based on information collected by
market research.
 Strategy ensures effective departmental co-ordination.
 It helps an organization to make optimum utilization of its resources so as to provide a sales message to
its target market.
 A marketing strategy helps to fix the advertising budget in advance, and it also develops a method which
determines the scope of the plan, i.e., it determines the revenue generated by the advertising plan.

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A marketing strategy is designed by:
1. Choosing the target market: By target market we mean to whom the organization wants to sell its
products. Not all the market segments are fruitful to an organization. There are certain market segments
which guarantee quick profits, there are certain segments which may be having great potential but there
may be high barriers to entry. A careful choice has to be made by the organization. An in-depth
marketing research has to be done of the traits of the buyers and the particular needs of the buyers in the
target market.
2. Gathering the marketing mix: By marketing mix we mean how the organization proposes to sell its
products. The organization has to gather the four P’s of marketing in appropriate combination. Gathering
the marketing mix is a crucial part of marketing task. Various decisions have to be made such as -
 What is the most appropriate mix of the four P’s in a given situation
 What distribution channels are available and which one should be used
 What developmental strategy should be used in the target market
 How should the price structure be designed
Developing a marketing strategy
Strategic planning typically begins with a scan of the business environment, both internal and external, which
includes understanding strategic constraints. It is generally necessary to try to grasp many aspects of the
external environment, including technological, economic, cultural, political and legal aspects. Goals are chosen,
then a marketing strategy or marketing plan. This is an explanation of what specific actions will be taken over
time to achieve the objectives. Plans can be extended to cover many years, with sub-plans for each year.
Although, as the speed of change in the merchandising environment quickens, time horizons are becoming
shorter. Ideally, strategies are both dynamic and interactive, partially planned and partially unplanned, to enable
a firm to react to unforeseen developments while trying to keep focused on a specific pathway; generally, a
longer time frame is preferred. There are simulations such as customer lifetime value models which can help
marketers conduct "what-if" analyses to forecast what might happen based on possible actions, and gauge how
specific actions might affect such variables as the revenue-per-customer and the churn rate. Strategies often
specify how to adjust the marketing mix; firms can use tools such as Marketing Mix Modelling to help them
decide how to allocate scarce resources for different media, as well as how to allocate funds across a portfolio
of brands. In addition, firms can conduct analyses of performance, customer analysis, competitor analysis,

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and target market analysis. A key aspect of marketing strategy is often to keep marketing consistent with a
company's overarching mission statement.
Marketing strategy should not be confused with a marketing objective or mission. For example, a goal may be
to become the market leader, perhaps in a specific niche; a mission may be something along the lines of "to
serve customers with honour and dignity"; in contrast, a marketing strategy describes how a firm will achieve
the stated goal in a way which is consistent with the mission, perhaps by detailed plans for how it might build a
referral network, for example. Strategy varies by type of market. A well-established firm in a mature market
will likely have a different strategy than a start-up. Plans usually involve monitoring, to assess progress, and
prepare for contingencies if problems arise. You should also write a marketing strategy when starting your own
business.

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The customized target strategy
The requirements of individual customer markets are unique, and their purchases sufficient to make viable the
design of a new marketing mix for each customer. If a company adopts this type of market strategy, they design
a separate marketing mix for each customer.
The differentiated strategy
Specific marketing mixes can be developed to appeal to all/some of the segments when market segmentation
reveals several potential targets.
Diversity of marketing strategy
Marketing strategies may differ depending on the unique situation of the individual business. However, there
are a number of ways of categorizing some generic strategies. A brief description of the most common
categorizing schemes is presented below:
Strategies based on market dominance
In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are
four types of market dominance strategies:[9]
 Leader
 Challenger
 Follower
 Nicher
Entrant strategies
According to Lieberman and Montgomery, every entrant into a market – whether it is new or not – is classified
under a Market Pioneer, Close Follower or a late follower.

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Pioneers
Market Pioneers are known to often open a new market to consumers based off a major innovation. They
emphasize these product developments, and in a significant amount of cases, studies have shown that early
entrants – or pioneers – into a market have serious market-share advantages above all those who enter
later. Pioneers have the first-mover advantage, and in order to have this advantage, businesses must ensure they
have at least one or more of three primary sources: Technological Leadership, Preemption of Assets or Buyer
Switching Costs. Technological Leadership means gaining an advantage through either Research or
Development or the “learning curve”. This lets a business use the research and development stage as a key point
of selling due to primary research of a new or developed product. Preemption of Assets can help gain an
advantage through acquiring scarce assets within a certain market, allowing the first-mover to be able to have
control of existing assets rather than those that are created through new technology. Thus allowing pre-existing
information to be used and a lower risk when first entering a new market. By being a first entrant, it is easy to
avoid higher switching costs compared to later entrants. For example, those who enter later would have to
invest more expenditure in order to encourage customers away from early entrants). However, while Market
Pioneers may have the “highest probability of engaging in product development” and lower switching costs, to
have the first-mover advantage, it can be more expensive due to product innovation being more costly than
product imitation. It has been found that while Pioneers in both consumer goods and industrial markets have
gained “significant sales advantages”, they incur larger disadvantages cost-wise.
Close followers
Being a Market Pioneer can more often than not, attract entrepreneurs and/or investors depending on the
benefits of the market. If there is an upside potential and the ability to have a stable market share, many
businesses would start to follow in the footsteps of these pioneers. These are more commonly known as Close
Followers. These entrants into the market can also be seen as challengers to the Market Pioneers and the Late
Followers. This is because early followers are more than likely to invest a significant amount in Product
Research and Development than later entrants. By doing this, it allows businesses to find weaknesses in the
products produced before, thus leading to improvements and expansion on the aforementioned product.
Therefore, it could also lead to customer preference, which is essential in market success. Due to the nature of
early followers and the research time being later than Market Pioneers, different development strategies are
used as opposed to those who entered the market in the beginning, and the same is applied to those who are Late
Followers in the market. By having a different strategy, it allows the followers to create their own unique selling

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point and perhaps target a different audience in comparison to that of the Market Pioneers. Early following into
a market can often be encouraged by an established business’ product that is “threatened or has industry-
specific supporting assets”.
Late followers
Those who follow after the Close Followers are known as the Late Entrants. While being a Late Entrant can
seem very daunting, there are some perks to being a latecomer. For example, Late Entrants have the ability to
learn from those who are already in the market or have previously entered. Late Followers have the advantage
of learning from their early competitors and improving the benefits or reducing the total costs. This allows them
to create a strategy that could essentially mean gaining market share and most importantly, staying in the
market. In addition to this, markets evolve, leading to consumers wanting improvements and advancements on
products. Late Followers have the advantage of catching the shifts in customer needs and wants towards the
products. When bearing in mind customer preference, customer value has a significant influence. Customer
value means taking into account the investment of customers as well as the brand or product. It is created
through the “perceptions of benefits” and the “total cost of ownership”. On the other hand, if the needs and
wants of consumers have only slightly altered, Late Followers could have a cost advantage over early entrants
due to the use of product imitation. However, if a business is switching markets, this could take the cost
advantage away due to the expense of changing markets for the business. Late Entry into a market does not
necessarily mean there is a disadvantage when it comes to market share; it depends on how the marketing mix is
adopted and the performance of the business. If the marketing mix is not used correctly – despite the entrant
time – the business will gain little to no advantages, potentially missing out on a significant opportunity.
Growth strategy
Growth of a business is critical for business success, so using strategies such as horizontal integration, vertical
integration, diversification and intensification will all benefit a business’s growth, be it long term or short term.
Refer to Ansoff's Matrix for a simpler explanation of the various growth strategies if those mentioned below are
difficult to understand.
Horizontal integration: Horizontal integration is the degree at which employees are specialized and integrated
in. There are low horizontal levels which show that employees are specialized in their work and high horizontal
levels which show that employees are integrated in their work. A business's horizontal boundaries can
determine the quantities and changes of products that are produced by two or more businesses that have been

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merged producing the same product as one business. Some benefits of the horizontal integration strategy is that
it is good for fast changing work environments as well as providing a broad knowledge base for the business
and employees. A high level of horizontal integration leads to high levels of communication within the
business. Another benefit of using this strategy is that it leads to a larger market for merged businesses, and it is
easier to build good reputations for a business when using this strategy. A disadvantage of using the horizontal
integration strategy is that this limits and restricts the field of interest that the business is expanding the new
products into. Horizontal integration can affect a business's reputation, especially after a merge has happened
between two or more businesses. There are three main benefits to a business's reputation after a merge. A larger
business helps the reputation and increases the severity of the punishment. As well as the merge of information
after a merge has happened, this increases the knowledge of the business and marketing area they are focused
on. The last benefit is more opportunities for deviation to occur in merged businesses rather than independent
businesses.
Vertical integration: Vertical integration is when business is expanded through the vertical production line on
one business. An example of a vertically integrated business could be Apple. Apple owns all their own
software, hardware, designs and operating systems instead of relying on other businesses to supply these. By
having a highly vertically integrated business this creates different economies therefore creating a positive
performance for the business. Vertical integration is seen as a business controlling the inputs of supplies and
outputs of products as well as the distribution of the final product. Some benefits of using a Vertical integration
strategy is that costs may be reduced because of the reducing transaction costs which include finding, selling,
monitoring, contracting and negotiating with other firms. Also by decreasing outside businesses input it will
increase the efficient use of inputs into the business. Another benefit of vertical integration is that it improves
the exchange if information through the different stages of the production line. Some competitive advantages
could include; avoiding foreclosures, improving the business marketing intelligence, and opens up opportunities
to create different products for the market. Some disadvantages of using a Vertical Integration Strategy include
the internal costs for the business and the need for overhead costs. Also if the business is not well organized and
fully equipped and prepared the business will struggle using this strategy. There are also competitive
disadvantages as well, which include; creates barriers for the business, and loses access to information from
suppliers and distributors.
Diversification: Diversification is an area included in the Ansoff Matrix strategy, where the most risk for a
business is situated. This is due to the use of a new product being introduced to a new market, so there are no

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already existing target markets or competition. There are two types of diversification, vertical and horizontal.
Horizontal diversification is when a new product is introduced but doesn’t contribute to the already existing
product line. Meaning horizontal diversification focuses more on product that the business has knowledge
about, whereas vertical diversification focuses more on the introduction of new product onto new markets,
where the business could have less knowledge of the new market. A benefit of horizontal diversification is that
it is an open platform for a business to expand and build away from the already existing market. A disadvantage
of using a Diversification strategy is that the benefits could take a while to start showing, which could lead the
business to believing that the strategy doesn’t work. Another disadvantage or risk is, it has been shown that
using the horizontal diversification method has become harmful for stock value, but using the vertical
diversification had the best effects.
Marketing strategy process

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Three phases of strategic marketing process
1. Planning Phase
The planning phase is the most important as it analyzes internal strengths and weaknesses, external competition,
changes in technology; industry culture shifts and provides an overall picture of the state of the organization.
This phase has four key components that will provide a clear diagram of where your company is and what it is
doing.
 SWOT Analysis – Defines the strengths, weaknesses, opportunities and threats of your business and
reveal your company’s position in respect to the market. To maximizes strengths and minimize weaknesses an
organization must perform the following:
o Analyze competitors
o Research company’s current and prospective customers
o Assess company
o Identifying trends in the company’s industry
Once this analysis is complete the results should be used as a basis for developing the company’s marketing
plan, which should be measurable and attainable.
 Marketing program – Once the needs of the customers have been determined, and the decisions have
been made about which products will satisfy those needs, a marketing program or mix must be developed. This
marketing program is the how aspect of the planning phases, which focuses on the 4Ps and the budget needed
for each element of the mix.
Set marketing and product goals
o Once the customer needs are understood, goals can be set to meet them, thus increasing the
chances of success with new products.

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o Find points of difference: like your company’s unique selling point, each product should also
have a certain set of traits or characteristics that makes it superior to the competitive substitute. For example,
your product could be longer lasting, more accessible, more reliable or very user-friendly so the buyers will
choose it over the competition each time.
 Position the product: market so that in people’s minds your product is the “go to” for their problem.
Through emotional and mental marketing customers will associate your brand with their solution and
eliminate choice. For example, many mothers use “Pampers,” when referring to diapers, as this brand
has been positioned as the go to in baby diapering needs.
o Select target markets: based on the research and their commonalities, that way needs and goals
are both met.
 Market-Product focus and Goal Setting – Once the questions of where the company stands and what
it wants to achieve are answered, the next step in the planning process is determining where the resources will
be allocated, and how to turn plans into focused action. To do this, customers should be divided into segments
to determine what specific marketing technique will reach each targeted group and what each group needs. Next
measurable goals should be set to get the needed products to the various groups, thus fulfilling the marketing
objectives.
o Price strategy: focuses on the list price, price allowances (reductions), discounts, payment
periods, and credit contracts.
o Place (Distribution) Strategy: the final ‘P’ in the marketing mix should focus on distribution
channels, outlets and transportation to get the product to the customer when they need it.
o Promotion Strategy: this element of the program should focus on direct marketing, advertising,
public relations and sales promotions that create brand awareness.
o Product Strategy: this element focuses on the features, packaging, branding and warranty of the
product.
2. Implementation Phase
The implementation phase is the action portion of the process. If the firm cannot carry out the plan that was
determined in the early stages, then the hours spent planning were wasted. However, if the planning was

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adequately and competently structured, then the program can be put into effect through a sales forecast and a
budget, using the following four components.
 Obtaining Resources – sums of cash to develop and market new products.
 Designing marketing organization – there should be put in place a marketing hierarchy to properly see
the plans to fruition.
 Developing planning schedules – time needs to be allocated to specific tasks so they can be
accomplished.
 Executing the marketing plan – effectively executing the marketing plan will take attention to detail,
and focus on the strategy and tactics defined in your marketing plan.
3. Evaluation or Control Phase
The evaluation phase is the checking phase. This process involves ensuring that the results of the program are in
line with the goals set. The marketing team, especially the manager will need to observe any deviations in the
plan and quickly correct negative deviations to get back on course; for example fluctuations of the dollar creates
a lesser need for the product than in the past, then the production of said product should be repurposed for a new
more desired item. And they should exploit the positive divergences as well, for example if sales are better than
predicted for certain products then there could be more resources allocated to greater production or distribution
of the same item.
A few ways to evaluate the effectiveness of your marketing strategy include paying attention to:
 Strategy versus tactic – strategy defines goals and tactic defines actions to achieve goals.
 Measurable versus vague – have milestones that define when you’ve achieved your goals.
 Actionable versus Contingent – According to Inc.com: “A strategic goal should be achievable through
the tactics that support it, rather than dependent upon uncontrollable outside forces.”
 Marketing strategy should be backed by a business plan with tactical moves to accomplish goals, or it
is useless.

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INTRODUCTION OF THE
COMPANY

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Company Profile
Flipkart is an electronic commerce company headquartered in Bangalore, Karnataka. It was founded in 2007
by Sachin Bansal and Binny Bansal (no relation). The company is registered in Singapore. Flipkart has
launched its own product range under the name "DigiFlip" with products including tablets, USBs, and laptop
bags. As of April 2017, the company was valued at $11.6 billion. Flipkart is a private company founded by
Binny Bansal and Sachin Bansal. Established in the year 2007, it deals with e-commerce. The company website
is one of the most popular websites in India and has an employee count of more than ten thousand. Its slogan,
‘The Online Megastore’ is very apt and popular. As Indian’s are being accustomed to online purchases, they
have contributed towards the success of this online website. Flipkart is no longer just a shopping website; it has
become the heart and soul of the shopaholics.
People have started feeling that this online portal is giving more choices in products than others. In a recent
development, the Indian Textile Ministry has signed with Flipkart a memorandum of understanding. Under this
MOU, the handloom weavers will get an easy to use platform through Flipkart to display their products and
conduct sales. Flipkart will also provide infrastructural support to the weavers. However, this move has been
made for the growth of handloom industry but it will also benefit the website. To associate with any
government project is in itself a testimony to their reputation.
History of the company
Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of
Technology Delhi. They worked for Amazon.com, and left to create their new company incorporated in October

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2007 as Flipkart Online Services Pvt. Ltd. The first product they sold was the book Leaving Microsoft to
Change the World to a customer from Hyderabad. Flipkart now employs more than 33,000 people.
In October and November 2011, Flipkart acquired the websites Mime360.com and Chakpak.com. Later, in
February 2012, the company revealed its new Flyte Digital Music Store. Flyte, a legal music download service
in the vein of iTunes and Amazon.com, offered DRM-free MP3 downloads. But it was shut down on 17 June
2013 as paid song downloads did not get popular in India due to the advent of free music streaming sites.
After the success of its 2014 Big Billion Sale, Flipkart carried out a second Big Billion Sale. Where it is
reported that they saw a Business turnover of $300 Million in gross merchandise volume.
In 2015, Flipkart bought a minority stake in navigation and route optimization startup MapmyIndia to help
improve its delivery using Map my India assets.
As E-tailer Flipkart became one of the largest e-commerce companies in the nation, Sachin Bansal emerged as a
face of the company, while a silent stakeholder in the billion dollar start-up largely stayed in the background
Until now.
With Binny Bansal taking over as the CEO of Flipkart and Sachin Bansal moving up to the position of
executive chairman, the ex-COO and co-founder of the company is suddenly in the media spotlight.
Here are some lesser known facts about Binny Bansal.
 Just like Sachin, Binny Bansal is also from Chandigarh and both went to the same school, but they are
not related in any way except for being an integral part of the Flipkart family.
 Although the two became close friends at IIT-Delhi, Sachin and Binny were not good friends as children
despite being in the same school.
 Before joining Amazon just a year after Sachin Bansal, Binny was rejected twice by Google. However,
he worked at Sarnoff Corporation, where he created a sensor for cars to warn if it changed lanes without
giving a signal.

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Representational
image | Source: PTI
 Apart from being an avid reader and a Salman Rushdie fan, Binny is also a sports enthusiast.
He captained the basketball team in school and college. He is also said to have a keen interest in adventure
sports.
 Binny has been seen as the force behind building Flipkart's supply and logistics business by
spearheading the establishment of its largest warehouse in Telangana.

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Binny Bansal
in a file image | Source: Reuters
 Highlighting his simplicity, Abhishek Goyal, who knows him from Flipkart's early days said, "He hardly
comes across as a billionaire. His wife would bring a tiffin for him on some of the Sundays that he was in
office."
 The first ever book ordered on Flipkart was 'Leaving Microsoft to Change the World by John Wood',
and Binny went on to borrow money from a friend to pick the book and deliver it.

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Representat
ional image | Source: Reuters
A former employee at Flipkart Xitij Kothi told The Economic Times that, "unlike a lot of the big names,
(Binny) is extremely approachable. You expect to be intimidated, but that just disappears almost immediately."
Although he is described as a reserved person, his ability to think on his feet is expected to benefit Flipkart as it
takes on rivals like Amazon and Snapdeal.
Acquisitions of Flipkart
 2010: WeRead, a social book discovery tool.

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 2011: Mime360, a digital content platform company.
 2011: Chakpak.com, a Bollywood news site that offers updates, news, photos and videos. Flipkart
acquired the rights to Chakpak's digital catalogue which includes 40,000 filmographies, 10,000 movies and
close to 50,000 ratings. Flipkart has categorically said that it will not be involved with the original site and
will not use the brand name.
 2012: Letsbuy.com, an Indian e-retailer in electronics. Flipkart has bought the company for an
estimated US$25 million. Letsbuy.com was closed down and all traffic to Letsbuy has been diverted to
Flipkart.
 2014: Acquired Myntra.com in an estimated ₹20 billion (US$300 million) deal. 2015: Flipkart acquired
a mobile marketing start-up Appiterate as to strengthen its mobile platform.
 2016: Flipkart’ s Myntra acquires rival fashion shopping site Jabong for $70 million.
 2016: In April, Flipkart acquired payment start-up PhonePe.
 2017: In January, Flipkart funded Parenting Network Tinystep With $2 Million. In April, in exchange
for an equity stake in Flipkart, eBay agreed to make a $500 million cash investment in and sell its eBay.in
business to Flipkart; however, according to a company statement eBay.in would continue to operate as a
separate entity from Flipkart.
Some of the company’s key competitors are:
 Amazon
 Snap Deal
 e-bay
 shopclus
 Naaptol
 HomeShop18
 Jabong

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 Yebhi
 Indiaplaza
 Infibeam
 Letsbuy
Product in the marketing mix of Flipkart
Flipkart is an online retailing industry and started its operations with the sale of books. For two years, it sold
only books through its website as the management and shipment of books was much easier. After its expansion,
it started dealing with products like air coolers, Washing machines, air conditioner, life style products,
stationary supplies, cell phones, computers, calculators, microwave ovens, water purifiers, laptops, cameras,
audio players, products relating to health care, dishwashers and e-books. Products sold on Flipkart have the
same warranties of the brand if sold outside in a showroom.
It has recently launched its personal product range called “DigiFlip”. Under this brand, it offers products like
computer accessories, camera bags, headphones and pen drives.
In July, Flipkart introduced its own tablet phones and networking router under its personal range “DigiFlip”.
On February 5, 2014 in a special tie up with Motorola Mobility, Flipkart has provided a platform for the launch
of ‘Moto G’. Online shoppers went crazy with the unveiling of this smart phone. This awe-inspiring response
resulted in the sales of nearly 20,000 mobiles in a few hours. Continuing their association, ‘Moto X’, an
Android Smartphone, was introduced on March 19. On May 13, ‘Moto-E was launched at the same site
triggering the same response. Continuing this success story Flipkart in a tie up with Xiaomi Techintroduced
‘Xiaomi Mi3’ on its platform. In the first phase on22nd
July all the phones were sold in just 39 minutes and in
the 2nd
phase on 29th
July the sold out was complete in only 5 seconds. On 5th
August the sale was completed in
just 2 seconds. This amazing response and hyper mania has helped in giving Flipkart an immense lift up.
Place in the Marketing mix of Flipkart
Flipkart functions entirely in India and it has its headquarters in the Garden City of Bangalore in Karnataka. It is
owned by a Singapore based company and is registered over there. According to India’s foreign policy, a
foreign company is not allowed e- retailing over here. Therefore, in India, Flipkart sells the merchandises

29
through an Indian company WS Retail. Flipkart also provides its own platform to other companies who are
interested in selling their goods. The website is very easy and hassle free. Browsing, keeping track of products,
getting reviews, ordering goods and payment methods are very convenient for the individuals. At first Flipkart
started its operations on the consignment model in which they personally bought the book and couriered it.
Later they opened many warehouses where the goods were stored safely. The first warehouse was opened in
Bangalore and later in Delhi, Mumbai, Chennai, Hyderabad, Pune, Noida and Kolkata. As of today, more than
five hundred suppliers are working for Flipkart. At least 80% of the orders placed are handled and controlled
via warehouses. Shipping companies and courier companies are the real mediators in this setup. The quick and
well-organized service is the reason why the company has been able to put its mark on the Indian market. Their
delivery network is spread over thirty-seven cities with delivery being possible in any nook and corner.
Price in the Marketing mix of Flipkart
Though Flipkart started its venture with an investment of just INR 400,000, today its net worth is nearly 1billion
dollars as its sales are increasing day by day. It still earns revenue of 50% from selling books online. Electronic
commerce has become a huge hit because of Flipkart. Its price policy is very flexible because of online
transactions. Amount to be charged is determined after looking at the innumerable expenses like transport
expenses, supplier expenses, packaging costs, courier charges, shipping cost, office expenses, maintenance
expenses, discount allowances, depreciation, taxes, advertisement expenses and many other expenses.
Discounts up to 35% are allowed periodically to boost up the sales and maintain competitive prices. For
payments, Flipkart allows credit card transactions, cash payment after delivery, transaction through debit card,
by swiping card on delivery, vouchers available as e-gift and net banking.
Promotions in the Marketing mix of Flipkart
Flipkart has changed the concept of multi brand retailing of products through internet in India. Its huge success
has proved to be an inspiration for other companies. It operates mostly through mouth advertising. The satisfied
customers have been their best promoters. To have a firm grip on the online world Flipkart has used the services
of Google Ad-words and SEO. These marketing tools have made them household names. Downloading the
exclusive app of Flipkart helps in getting alerts about the current offers, order status, price drops, recent
launches and various gift coupons.
Flipkart has also taken the help of creative and interesting advertisements so that an awareness and trust is
generated for their website amongst the people. Their first campaign was shown on TVC with the concept that
books can be delivered with just a single click. Recently an ad has been launched to increase the social visibility

30
where the tag line is “No Kidding No Worries”. Trained individuals are hired to fulfill their responsibilities
adequately. The systematic planning and level of effort undertaken to reach such heights is commendable.
Journey of Flipkart
Flipkart product Line
Baby care
Books/ eBook media
Cloths
Games and toys
Mobiles cameras
Large appliances ACs, TVs
Home and kitchen
Sports and fitness
Laptops
Jewellery
Footwear

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Top investors of Flipkart
There are top five shareholders of the Flipkart, the list is as follows:-
1. Tiger Global – Holds 29.5% Stake
2. Accel partners – Holds 11.5% Stake
3. Binny Bansal – Holds 8.7% Stake
4. Sachin Bansal – Holds 8.7% Stake
5. Intervision Services Holdings – Holds 18.4% Stake
6. Others – Holds 23.2% Stake
Mission and vision of Flipkart

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There are three subsidiaries under Flipkart Pvt Ltd. They are:
1. Flipkart Marketplace Pvt Ltd
2. Flipkart Logistics Pvt Ltd
3. Flipkart Payments Pvt Ltd
Under the above three companies, there are five other companies which have been incorporated in India. They
are:
1. Flipkart Payment Gateway Services Pvt Ltd (Which provides the payment gateway services with the
product called payzippy)
2. Flipkart India Pvt Ltd (Wholesale cash and carry entity)
3. Flipkart Internet Pvt Ltd (Flipkart.com is owned by this company and all the technology related issues is
seen by this company)
4. Digital Media Pvt Ltd (It is a dormant company which doesn’t files its return)
5. Digital Management Services Pvt Ltd (It is an enterprise which runs letsbuy.com).

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Acquisition of Myntra.com
This was the most talked topic in the field of e-commerce platform market where Flipkart acquired myntra.com
for around 2200 crores. Myntra.com shareholders accepted the proposal for the acquisition by the Flipkart but
the directors or the owners of myntra.com named Mukesh Bansal and Ashutosh Lawania have not accepted the
share transfer but asked for the cash payment of the same. Others got the stock in the Flipkart parent company
in Singapore. According to the external sources, myntra.com owners got an average consideration of 427 crores
in exchange of the ownership of their share holding the myntra.com
According to the external sources, Mukesh Bansal has again acquired some shares of myntra.com and now he is
eligible for coming in the board meetings and guide the shareholders for the future prospects of the company.
He was also elected the Marketing chief in the Flipkart. It is to be noticed that both the companies Flipkart and
Myntra are working separately and there is nothing common for the operating of the same as Flipkart sells a
huge variety of products while the former ones is only associated with the apparels department.
The biggest investor of Flipkart.com – Tiger Global has invested around 700 Million Dollars in the company
which is a huge amount which shows a great sign of trust in the company by the angel investors and which is
much higher as compared to the investment done by Tiger Global in Facebook and Google.
About online marketing
E-commerce is a transaction of buying or selling online. Electronic commerce draws on technologies such
as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management systems, and automated data
collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the
transaction's life cycle although it may also use other technologies such as e-mail.
E-commerce businesses may employ some or all of the following:
 Online shopping web sites for retail sales direct to consumers
 Providing or participating in online marketplaces, which process third-party business-to-consumer or
consumer-to-consumer sales
 Business-to-business buying and selling

34
 Gathering and using demographic data through web contacts and social media
 Business-to-business (B2B) electronic data interchange
 Marketing to prospective and established customers by e-mail or fax (for example, with newsletters)
 Engaging in pretail for launching new products and services
 Online financial exchanges for currency exchanges or trading purposes
A timeline for the development of e-commerce:
 1971 or 1972: The ARPANET is used to arrange a cannabis sale between students at the Stanford
Artificial Intelligence Laboratory and the Massachusetts Institute of Technology, later described as "the
seminal act of e-commerce" in John Markoff’s book What the Dormouse Said.
 1979: Michael Aldrich demonstrates the first online shopping system.
 1981: Thomson Holidays UK is the first business-to-business online shopping system to be installed.
 1982: Minitel was introduced nationwide in France by France Telecom and used for online ordering.
 1983: California State Assembly holds first hearing on "electronic commerce" in Volcano,
California. Testifying are CPUC, MCI Mail, Prodigy, CompuServe, Volcano Telephone, and Pacific
Telesis. (Not permitted to testify is Quantum Technology, later to become AOL.)
 1984: Gateshead SIS/Tesco is first B2C online shopping system[5]
and Mrs Snowball, 72, is the first
online home shopper
 1984: In April 1984, CompuServe launches the Electronic Mall in the USA and Canada. It is the first
comprehensive electronic commerce service.
 1989: In May 1989, Sequoia Data Corp. Introduced Comp market The first internet based system for e-
commerce. Sellers and buyers could post items for sale and buyers could search the database and make
purchases with a credit card.
 1990: Tim Berners-Lee writes the first web browser, WorldWideWeb, using a NeXT computer.
 1992: Book Stacks Unlimited in Cleveland opens a commercial sales website (www.books.com) selling
books online with credit card processing.
 1993: Paget Press releases edition No. 3 of the first app store, The Electronic AppWrapper
 1994: Netscape releases the Navigator browser in October under the code name Mozilla. Netscape 1.0 is
introduced in late 1994 with SSL encryption that made transactions secure.
 1994: Ipswitch IMail Server becomes the first software available online for sale and immediate
download via a partnership between Ipswitch, Inc. and Open Market.
 1994: "Ten Summoner's Tales" by Sting becomes the first secure online purchase through Net Market.

35
 1995: The US National Science Foundation lifts its former strict prohibition of commercial enterprise on
the Internet.
 1995: Thursday 27 April 1995, the purchase of a book by Paul Stanfield, Product Manager
for CompuServe UK, from W H Smith's shop within CompuServe's UK Shopping Centre is the UK's first
national online shopping service secure transaction. The shopping service at launch featured W H
Smith, Tesco, Virgin Megastores/Our Price, Great Universal Stores (GUS), Interflora, Dixons Retail, Past
Times, PC World (retailer) and Innovations.
 1995: Jeff Bezos launches Amazon.com and the first commercial-free 24-hour, internet-only radio
stations, Radio HK and NetRadio start broadcasting. eBay is founded by computer programmer Pierre
Omidyar as AuctionWeb.
 1996: IndiaMART B2B marketplace established in India.
 1996: ECPlaza B2B marketplace established in Korea.
 1996: The use of Excalibur BBS with replicated "Storefronts" was an early implementation of electronic
commerce started by a group of SysOps in Australia and replicated to global partner sites.
 1998: Electronic postal stamps can be purchased and downloaded for printing from the Web.
 1999: Alibaba Group is established in China. Business.com sold for US $7.5 million to eCompanies,
which was purchased in 1997 for US $149,000. The peer-to-peer filesharing
software Napster launches. ATG Stores launches to sell decorative items for the home online.
 2000: Complete Idiot's Guide to E-commerce released on Amazon
 2000: The dot-com bust.
 2001: Alibaba.com achieved profitability in December 2001.
 2002: eBay acquires PayPal for $1.5 billion. Niche retail companies Wayfair and NetShops are founded
with the concept of selling products through several targeted domains, rather than a central portal.
 2003: Amazon.com posts first yearly profit.
 2003: Bossgo B2B marketplace established in China.
 2004: DHgate.com, China's first online b2b transaction platform, is established, forcing other b2b sites
to move away from the "yellow pages" model.
 2007: Business.com acquired by R.H. Donnelley for $345 million.
 2009: Zappos.com acquired by Amazon.com for $928 million. Retail Convergence, operator of private
sale website RueLaLa.com, acquired by GSI Commerce for $180 million, plus up to $170 million in earn-
out payments based on performance through 2012.

36
 2010: Groupon reportedly rejects a $6 billion offer from Google. Instead, the group buying websites
went ahead with an IPO on 4 November 2011. It was the largest IPO since Google.
 2012: Zalora Group was founded and started operations around Asia.
 2014: Overstock.com processes over $1 million in Bitcoin sales. India's e-commerce industry is
estimated to have grown more than 30% from 2012 to $12.6 billion in 2013. US ecommerce and Online
Retail sales projected to reach $294 billion, an increase of 12 percent over 2013 and 9% of all retail
sales. Alibaba Group has the largest Initial public offering ever, worth $25 billion.
 2015: Amazon.com accounts for more than half of all ecommerce growth, selling almost 500 Million
SKU's in the US.

37
SWOT ANALYSIS OF FLIPKART
Strength:
 Top Indian ecommerce portal
 Diversified into electronic goods
 Two VC investment to build its own delivery system thereby reduce delivery time
 Cash on delivery which is making 60% of its income
 Industry condition: very high potential
 Investor‘s trust
 Services and warehousing
 Payment options
 Established brand
Weakness:
 Coordination with suppliers and courier was tough
 Price biasing to maintain the margins ( e.g. Low price for the best seller book and more
price for the least wanted)
 24/7 customer care, thus even mid night is to delivered within 24 hours
 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.
Opportunities:
 Already working towards customer delight will obtain customer loyalty gradually
 Supplier database interface with flipkart website for JIT procurement
 Mobile internet usage is increasing there by chances of increase in sales through mobile shopping.
 Development of m-commerce in the e-market
 Increasing internet penetration
 Target social medias to reach young population
 High interest among VC/PE.
Threats:
 Small players and emerging competitor

38
 In capabilities to manage certain costs like delivery cost, bank charges
 High competition from major international online retailers
 Capture of alternative market by competitors
 Major players like Amazon
MARKET SEGMENTATION
The process of defining and subdividing a large homogenous market into clearly identifiable segments having
similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely
matches the expectations of customers in the targeted segment. Few companies are big enough to supply the
needs of an entire market; most must breakdown the total demand into segments and choose those that the
company is best equipped to handle. The four basic market segmentations are:
GEOGRAPHY SEGMENTATION:
CATERS TO TIER 1, TIER 2 AND TIER 3 CITIES
DEMOGRAPHIC SEGMENTATION -
 75% of online users between the age group of 15-34 years.
 Flipkart targets mainly the youth of the country,
BEHAVIOURAL SEGMENTATION –
 Web friendly people
.
PSYCHOGRAPHIC SEGMENTATION –
 Flipkart concentrates on more Psychographic, which helps in deciding where to display ads online.
 They target online shoppers and people who don‘t online shop (thus TVC to encourage them).
MARKETING STRATEGIES
 Word of mouth (initial marketing even now they want to satisfy customer so they come back for more)
 Good use of SEO
 ―We DO NOT sell old books or used books. All the books listed at Flipkart.com are new books. The books

39
listed at Flipkart.com are NOT available for free download in eBook or PDF format.
 Thus when you search free eBooks or Pdf books old or used books Flipkart will be
displayed.
 Good use of SEM
 Ads at proper places and use pay per click to pay for ads
 Very easy web interface
 Payment convenience
 Cash/card on delivery – there by encouraging students and people with no credit/debit card to purchase in
Flipkart, with mobile internet penetration there is chances of capturing
rural market (60% revenue by COD)
 EMI –by targeting price sensitive customers
 Wallet – customer can recharge money online and purchase then and when needed those entering details
always is rectified, target heavy purchase and luxury customer
 Customer conversion rate is so high more than 70%
 Personalization of the user page
 Product recommendation with your previous purchases
Poters 5 forces –
Bargain power of suppliers (low)
 The readers are reducing thus suppliers are in weak position
 Inventory turnover is lower, thus more inventory again Flipkart is at the upper hand
Bargain of buyers (high)
 Not many buyers
 Best deals online
 Cash on delivery
 One stop solution
 Faster delivery with free shipping cost
Threat of New entries (high)

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 Market potential for this industry is high
 Low entry barriers, but sustaining is tough
Threat of substitutes (Low)
 Diminishing brick and mortar model
 Increasing customer ea se and customer satisfaction
Industry rivals (Medium)
 Many small players (Snapdeal, Naaptol ..)
 Entry of international players like Amazon into India
LITERATURE REVIEW

41
Review of literature
1. Mr. Vicky Singh “The concept of e-commerce is downloading at a fairly rapid pace in the psyche of the
Indian consumer. In the metros, shortage of time is a big driver for online shopping. On the other hand,
accessibility to a variety of products makes audiences from smaller towns and cities opt for the online
route. Major retailers face challenges in stocking their stores adequately. Often, customers are unable to
purchase items of their choice, thus prompting them to resort to e-retailers. Flipkart has accorded a lot of
importance in trust building exercise that is why it has a strong Customer Support Team which helps the
customers with the website guidance and resolving issues.”
2. “Written by the team at Moderandi Inc” “The concept of e-commerce is downloading at a fairly rapid
pace in the psyche of the Indian consumer. In the metros, shortage of time is a big driver for online
shopping. On the other hand, accessibility to a variety of products makes audiences from smaller towns and
cities opt for the online route. Major retailers face challenges in stocking their stores adequately. Often,
customers are unable to purchase items of their choice, thus prompting them to resort to e-retailers. Flipkart
has accorded a lot of importance in trust building exercise that is why it has a strong Customer Support
Team which helps the customers with the website guidance and resolving issues. The concept of e-
commerce is downloading at a fairly rapid pace in the psyche of the Indian consumer. In the metros,
shortage of time is a big driver for online shopping. On the other hand, accessibility to a variety of products
makes audiences from smaller towns and cities opt for theonline route. Major retailers face challenges in
stocking their stores adequately. Often, customers are unable to purchase items of their choice, thus
prompting them to resort to e-retailers. Flipkart has accorded a lot of importance in trust building exercise
that is why it has a strong
Customer Support Team which helps the customers with the website guidance and resolving issues.”

42
3. “ANVESHANA’s international journal of research in regional studies, law, social sciences” “Internet
became more powerful and basic tool for every person’s need and the way people work. By integrating
various online information management tools using Internet, various innovative companies have set up
systems for taking customer orders, facilitate making of payments, customer service, collection of
marketing data, and online feedback respectively. These activities have collectively known as e-commerce
or Internet commerce. Online shopping made so easy for everyone with their product variations and simple
way to buy things. An attempt has been made to critically examine various corporate and business level
strategies of two big e-tailers and those are Flipkart and Amazon. Comparison have been done considering
e-commerce
challenges, their business model, funding, revenue generation, growth, survival strategies, Shoppers’ online
shopping experience, value added differentiation, and product offerings. Both these big players made their
own mark in India, but who is going to be ultimate winner or be the top one is going to be. A comparative
study of Flipkart.com with one of the close competitor Amazon.com delivers the information about the
different strategies to succeed in e-commerce market and different opportunities available in India.”

43
OBJECTIVE OF THE STUDY
OBJECTIVES:
 To understand and estimate the consumer perception and factors affecting their behavior for choosing e-
commerce sites.
 To understand tactics and methods those are used by flipkart to grab the customers in India.
 To know how consumers are evaluating e-commerce sites for their purchases.
 To understand the work flow of Flipkart in India.

44
 To study complexities and barriers those are there in between e-commerce sites and customers.
 To find out new opportunities and to succeed in those procedures.
DATA COLLECTION
The goal for all data collection is to capture quality evidence that then translates to rich data analysis and allows
the building of a convincing and credible answer to questions that have been posed.
PRIMARY DATA
Primary data was collected from various people and their opinion and information for the specific purposes of
study helped to run the analysis. The data was collected through questionnaire to understand their experience
and preference towards their loyal company.
SECONDARY DATA:
Secondary data was collected from different sites, news papers etc.
Sample size: 100

45
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
1. PRIMARY RESEARCH:-
A Primary Research was conducted:
The questionnaire was prepared for the companies and following areas covered
2. SECONDARY RESEARCH:-
 Data was collected from websites and catalogues to understand the product of the different players.
 Sources used for secondary data collection are company web site, E-tailer web site etc.

46
ANALYSIS OF DATA:
Questionnaire has been attached in annexure -I
 DEMOGRAPHICS: age group
 HOW OFTEN RESPONDENT SHOP ONLINE?
 PREFERRED ONLINE SITE BY RESPONDENT?
 RESPONDENT PAYMENT METHO?
 RESPONDENT IS MOST IMPRESSED WITH WHICH E-COMMERCE SITE?
 RESPONDENT CHOOSING METHOD OF E-COMMERCE SITE?
 RESPONDENT IS MORE SATISFIED WITH WHICH SITE PRICING
 RESPONDENT WOULD LIKE TO SUGGEST TO OTHERS
 OCCASIONS PREFERRED BY RESPONDENT TO DO SHOPPING
 RESPONDENTS FACED PROBLEM WITH
 RESPONDENTS OPINION ON FLIPKART CUSTOMER CARE

47
Area covered
GAUTAM BUDHNAGAR
Greater Noida:
1. Alpha 1
2. Alpha 2
3. Beta 1
4. Beta 2
5. Knowledge park 2
Noida:
1. Sec 44
2. Sec 37

48
DATA ANALYSIS AND INTERPRETATION
DATA ANALYSIS AND INTERPRETATION
DEMOGRAPHICS:
Respondent age group and gender
TABLE: .1
VARIABL
ES
MEASURI
NG
GROUP
FREQUENCY PERCENTAGE

49
ANALYSIS:
The above chart provides the empirical findings gleaned from the collected data. It provides demographic
information of the respondents and the statistical analysis of the information collected from them. This is
followed by the interpretation and discussion about our findings. The above table shows that out of 70
respondents 50 % of people are in the age group of < 25 years,35.7% of people are in the age group of 25-35
and 14.3% of people are in the group of >35.
Another demographic factor we considered is gender. Female respondents are higher than the male respondents
that who prefer online shopping.
GRAPH: 1
Respondent age group and
gender who buys frequently
Age
Below 25
Between 25-
35
Above 35
35
25
10
50.0
35.7
14.3
100
Gender
Male
Female
Total
28
42
70
40
60
100

50
INTERPRETATION
We are having highest respondents who do online shopping are less than 25 years and almost all those belongs
to student category. At the same time 35.7% of age group 25-35 is utilizing online shopping well. All those
people are attracted to e-commerce sites which are offering wide range of products to everywhere and also with
their services. We can interpret that based upon their preferences that they are getting different and unavailable
international products online, which made easy and time efficient.
HOW OFTEN RESPONDENT SHOP ONLINE
TABLE: 2
Duration Purchase
Frequently 17
Once in two months 11
Once in one month 21

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Very rare 21
ANALYSIS:
From above table we can see that how often respondents are doing shopping online. It became habit of choosing
online shopping instead of brick and mortar shopping. Here 21 out of 70 respondents are so regular that they do
shop online at least once in month. Here also we can see that people who like frequently is less than people shop
once in a month and some people are those who shop only in rare case.
GRAPH: 2
HOW OFTEN RESPONDENT SHOP ONLINE

52
INTERPRETATION
From above table we can interpret that how often respondents are doing shopping online. It became habit of
choosing online shopping instead of brick and mortar shopping. Here 30% of respondents are so regular that
they do shop online at least once in month. That open more ways to e-commerce people to succeed in market.
PREFERRED ONLINE SITE BY RESPONDENT
Table: 3
COMPANY RESPONDENT

53
Flipkart 25
Amazon 27
Snapdeal 12
Shopclues 3
Others 2
ANALYSIS
From above table we can analyze that respondent like to shop more from Amazon than any other site. Out of 70
respondents 27 respondents like to use Amazon for shopping. We can see that the Flipkart is getting tough
competition from Amazon. Only and there is other sites after Amazon who stands in the line competition with
Flipkart. In the second place it’s Flipkart. Respondent like to use Flipkart after Amazon.
GRAPH: 3
PREFERRED ONLINE SITE BY RESPONDENT?

54
Interpretation: From above table we can interpret that both Amazon and Flipkart were chosen by 75% people.
And rest of the e-commerce players such as Snapdeal (18%) and shop clues (4%) are too low in the competition
to reach the target of both Amazon and Flipkart. Even though Paytm is offering huge discounts when compared
to its competitors.
TABLE: 4
WHAT IS RESPONDENTS PAYMENT METHOD?
PAYMENT METHOD PREFERRED

55
Debit card 19
Credit card 3
Internet banking 4
Cash on delivery 44
ANALYSIS:
We can see that most people are using cash on delivery and only few are using credit cards and net banking.
Second mostly preferred option is debit cards. In this we found that only few peoples are chose internet banking
and credit card because of lack of knowledge, fear to give information and most of the people don’t use credit
card in India.
GRAPH: 4
WHAT IS RESPONDENT PAYMENT METHOD?

56
INTERPRETATION:
E-commerce players have to gain confidence in terms of providing security to customer’s sensitive data. When
respondent is questioned with payment method they will use while doing online shopping, most of the
respondents choose cash on delivery method which is of 62.9%. We can analyze that cash on delivery is simple
and perfect way to customer to proceed. Even delivery boys are carrying swipe machines and made more
convenient.
TABLE: 5
RESPONDENT IS MOST IMPRESSED WITH WHICH E-COMMERCE SITE
Company Respondent

57
Flipkart 29
Amazon 32
Other 9
ANALYSIS:
We can see in the above table that Amazon is most impressed site for the respondent, and Flipkart is second
most preferred for respondent, and other sites are just few respondents. So, here we can see that Amazon is in
top and after that Flipkart. Only Amazon is giving a tough competition.
GRAPH: 5
RESPONDENT IS MOST IMPRESSED WITH WHICH E-COMMERCE SITE

58
Interpretation: E-commerce site that is most appreciated by customers is Amazon. Amazon is leading with
47.1% when compared to Flipkart, which is having 40% of respondent’s interest. And rest of e-commerce sites
are not even in the reach of Flipkart and Amazon. It clearly proves that Flipkart and Amazon are leading e-
commerce market in India.
TABLE: 6
RESPONDENT CHOOSING METHOD OF FLIPKART SITE
METHOD SELECTION

59
Referred by friend 20
Advertisement 26
Online review 24
ANALYSIS:
From the above table we can see that selection of the Flipkart according to advertisement is high, and then
according to online review and at last according to friend’s suggestion. People visit on Flipkart site due to
commercial ads on different web site. Out of 70 respondent 26 respondent visit site through advertisement.
GRAPH: 6
RESPONDENT CHOOSING METHOD OF FLIPKART SITE

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INTERPRETATION:
Which is the perfect way to reach the customers? Or by what basis client is choosing online site for shopping.
According to above table respondents are choosing as per online reviews and also equal percentage of
respondents are choosing e-commerce sites based upon their friend’s suggestions.
TABLE: 7
RESPONDENT IS MORE SATISFIED WITH WHICH SITE PRICING
SITES SATISFIED
Flipkart 24

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Amazon 25
Snapdeal 7
Paytm 12
Others 2
ANALYSIS:
From the above table we can see that people are mostly satisfied with amazon pricing, and Flipkart comes in
second position in terms of pricing, and then on 3rd
its paytm, and then snapdeal and others come. Pricing is one
of the strategies which can give more market share as well as growth of a company. We can also see that
respondent chose paytm and other sites are less because they don’t use such kinds of strategies.
GRAPH: 7
RESPONDENT IS MORE SATISFIED WITH WHICH SITE PRICING

62
INTERPRETATION: From product order to delivery of the product its company’s responsibility to fulfill
customer’s requirements. Customers expect what they paid for, if something happens they will hesitate to
purchase again. From above table most of the respondents (41.4%) are having problem with the product quality
and after that they are having problem with delay of product delivery.
TABLE: 8
Respondent preferred sites for
SITES PRICE SERVICES EASY RETURN

63
Flipkart 24 28 27
Amazon 28 23 26
Snapdeal 12 14 11
Shopclues 6 5 6
ANALYSIS:
From the above table we can see that according to what basis a customer choose a site that according to price
Amazon is the best, according to services Flipkart is best and according to easy return again Flipkart is best.
Here we also can see that Amazon is only the company which is giving tough competition.
GRAPH: 8
Respondent preferred sites for

64
INTERPRETATION:
From the above chart we interpret that people love to buy from Amazon more due to its pricing and then on the
basis of services and easy return they like Flipkart. Flipkart using easy return police which is more convenient
to the people. In this busy life people like to pay more but do not want anything’s to be delayed.
TABLE: 9
RESPONDENTS FACED PROBLEM WITH
PROBLEM RESPONDENT
Delay in delivery 15

65
Product damage 10
Cheap quality of product 29
Non delivery 7
Others 9
ANALYSIS
We can see that the people have faced more problem in not getting the quality product a and after that the delay
in delivery, even some time people get damaged product, and some time its non delivery of products and others
problem are also there like delivery boy is arrogant etc.
GRAPH: 9
RESPONDENTS FACED PROBLEM WITH

66
INTERPRETATION
From product order to delivery of the product its company’s responsibility to fulfill customer’s requirements.
Customers expect what they paid for, if something happens they will hesitate to purchase again. From above
table most of the respondents (41.4%) are having problem with the product quality and after that they are having
problem with delay of product delivery.
TABLE: 10
RESPONDENTS OPINION ON FLIPKART CUSTOMER CARE
SCALE LIKE BY THE RESPONDENT

67
Awesome 13
Good 34
Nor good nor bad 10
Bad 7
Worst 6
ANALYSIS:
From the above table we can see that the Flipkart customer care have a good response and satisfactory by most
of the customer and only few have bad experience with it. To avoid any kind of problem with customer care
Flipkart need to train their executive on regularly basis.
GRAPH: 10
RESPONDENTS OPINION ON FLIPKART CUSTOMER CARE

68
INTERPRETATION: Respondents will choose e-commerce sites when they are fully satisfied with their
complete services. After purchase also, company have to take responsible for customer’s requirement. Flipkart
made its mark in customer’s heart. Respondents (47.1%) of them are happy with the Flipkart customer support.
This is actually a better result to Flipkart, because people are positive towards it.
Table: 11
OCCASIONS PREFERRED BY RESPONDENT TO DO SHOPPING
OCCASION PURCHASE

69
Festivals 7
To gifts 6
Offers 38
Weeding 5
Others 14
ANALYSIS:
From the above table we can see that people to buy more from Flipkart when it give offers to its customer. So,
Flipkart need to take care of all its offers and that product which should be offer related. But Flipkart should
keep it in mind offers should decrease the quality of goods.
GRAPH: 11
OCCASIONS PREFERRED BY RESPONDENT TO DO SHOPPING

70
INTERPRETATION
E-commerce sites know when to and how to capture customers. The timing of offers in ecommerce sites is just
perfect. Even though people don’t need them they will purchase because of tempting deals in a row. More than
50% of people are doing online shopping, when those e-commerce sites are offering so many exciting deals and
offers. All the e-commerce sites are moving their pawns competitive to each other, which lead customers in
confusion.
TABLE: 12
RESPONDENT WOULD LIKE TO SUGGEST TO OTHERS
SITES LIKE TO SUGGEST (IN NO.)
Flipkart 22

71
Amazon 24
Snapdeal 10
Paytm 9
Others 5
ANALYSIS
We can see in the above table that most people like to suggest the Amazon because overall performance of
Amazon is very good. People are satisfied from its services. People suggestion is based on their satisfaction
level. People suggest to other if the satisfaction level is high and if satisfaction level will be low respondent
don’t like to suggest to their friends, family and groups.
GRAPH: 12
RESPONDENT WOULD LIKE TO SUGGEST TO OTHERS

72
INTERPRETATION
From one of our previous question we understood it that friend suggestion is so important while purchasing
online or while selecting an e-commerce site. From above table we got our view clear based upon the
respondent’s view which ecommerce site is leading in friends suggestions. 37.1% of respondents are ready to
suggest Amazon to their friends and family. And after Amazon, Flipkart is leading
in respondent’s suggestion box with 28.6%. And rests of them are having very minimum importance and
occupation in respondent’s opinion.

73
FINDINGS
FINDINGS
 Female respondents are showing more interest to do online shopping than male respondents.
 Customers are preferring quality product from e-commerce sites, even it is bit expensive.
 Flipkart is trying very hard to reach the top position but Amazon India is giving very tough competition.
 Amazon is leading in every aspect of survey such as price, preferred and also suggesting to friends.
 Undoubtedly Flipkart and Amazon made their impact on customers very strongly and captured loyal
customers. And they are ready suggesting their online shopping site to rest of their friends.
 Both Flipkart and Amazon India advertisings were very innovative and attractive. Both companies are
expending so much money on advertising and promotions.
 Every age group people are interested in offers, if they are in need or not they want to purchase.

75
CONCLUSION:-
The study consisted with all the work flows of and strategies of E-commerce player, Flipkart. How Flipkart is
performing and how they are running perfectly in the competitive world has been explained. The innovative
thinking of them to reach more and more consumers is appreciable. They increased their network as much as
possible with ultimate aim of reaching more and more customers. They made consumers work more easy and
comfortable. In this competitive market one has to be lead and rest will follow. Based upon consumer’s survey
we got our clear winner and it is Amazon. Even though it is an international company it understood Indians very
well and made its roots stronger in India. Flipkart is also giving very tough competition to Amazon even though
it is new company when compared to Amazon. May be it takes some time to overcome, but definitely they are
doing very well in Indian e-commerce market. Flipkart is using more offers like Flipkart big billion day etc.
Flipkart is also using Pay per click and so Amazon is doing. Flipkart is also acquiring more companies who can
add value to it. Recently Flipkart acquires E-bay India to give a tough competition to Amazon.

76
RECOMMENDATIONS
AND
SUGGESTIONS

77
RECOMMENDATION
• Attract customers by exchange offer, discount offer, cash back offer and face gift offer on the festival
occasions
• Establish a cordial relationship with local dealers and offer a good commission margins for promoting
our products.
• Keep a hawk eye on the competitors and act according to their sales and marketing strategy.
• Create an effective advertisement with an influential punch line.
• To provide better services in order to satisfy the customer needs.
• Improvement in customer care service.
• Improve delivery standards and train the delivery boys regularly.
• Improve the trust and eliminate those dealers who are responsible for creating bad image of company.
• Should always use a strategy of SEO as it an online player of E-commerce.
• Expand the area to tier 3 cities as more of the people leave in those areas.
SUGGESTION

78
 In this research I found that various people told that packaging can be improved. So it should be better if
they work on packaging because packaging itself a way of promotion. A good package creates a good
image of the product.
 Sometime the way of behaving of a delivery boy is not good, so Flipkart need to train them how to be
polite in front of customer.
 People get damaged product, so they need to work on primary packaging as well, so that it does not
damaged any product.
 It’s a service based industry so services can be improved like customer care services, delivery services,
return services etc.
 Eliminate those local dealer who doesn’t provides quality goods and responsible for damaging the
goodwill of the company.
 People are ready to pay more for if the service is good so always try to give best services.
 The customer care of Flipkart needs to work on complaint as fast as they can because people are ready
to pay more but today they don’t have time for wait.
 Keep a hawk eye on the competitors and act according to their sales and marketing strategy.

79
LIMITATIONS
LIMITATION
According to us there were so many limitations during project which were great hurdle in the competition of
report-
 Time allowed for the study was not sufficient.
 A sample survey was selected.
 The data provided by the respondent may not be correct or accurate.

80
 Some of the samples selected for the study did not respond properly to the questionnaire. However
proper care had taken to make the analysis and interpretations more meaningful.
 Questionnaires are impersonal, this means that it may be difficult to understand answers and thus to act
on them. Also, there is a chance that the question may be misinterpreted, rendering the answer useless.
 Questionnaires also invite people to lie and answer the questions very vaguely which they would not do
in an interview.
 Open questions can take a lot of time to collect and analyses.
 People are not always willing to fill questionnaires in so they may just throw them always.
 Sometimes questions used are too standardized (closed) so some peoples preferred answers may not be
included, and this also does not allow for much detail.
 Peer pressure of embarrassment may cause people to not want to answer certain questions, or they may
want to impress the researcher and fabricate the truth by filling in untrue answers, making questionnaires
unreliable and sometimes invalid.
 There was so much confidential data of companies that are not exposed.
 Survey was restricted to particular age group because respondents willing to fill are college students.
 Analysis was done based upon personal opinion of respondents individually, not from any focus
groups or experts.

82
BOOKS:
 Assael, Henry. (1984.) “Behavior and Market Action”. Boston, Massachusetts: Kent Publishing
Company,
 Belch, G.E., & Belch, M.A. (2001). Advertising and Promotion: An integrated Marketing
Communications Perspective (5th Ed.). Boston: Irwin/McGraw- Hill.
 Cooper, Donald R. and Schindler, Pamela S. (1999), Business Research Methods, 6 Tata McGraw-Hill
Publishing Company Limited, New Delhi, India.
 Creswell, J. W. (2003). “Research Design: Qualitative, Quantitative, and Mixed Methods Approaches”.
Thousand Oaks, CA, Sage.
 Easterby-Smith, M., Thorpe, R. & Lowe, A. (2002), Management Research 2nd edition, London: Sage.
 Remenyi, D., Williams, B., Money, A. and Swartz, E. (1998), “Doing Research in Business and
Management”, Sage Publications, London.
JOURNELS AND MAGAZINES:
 Arnold, E.J. and Wallendorf, M. “Market-oriented Ethnography: Interpretation Building and Marketing
Strategy Formulation,” Journal of Marketing Research, Vol. 31 (November 1994), pp. 484–504.
 ANALYSIS OF CONSUMER BEHAVIOUR ONLINE
Author: DejanPetrovic
 HOT BARGAINS: TIPS TO FIGURE OUT TRAPS FROM THE REAL VALUE DEALS
SUSHMITA CHOUDHURY AGARWAL, ET Bureau Apr 22, 2013 (The Economic Times)
WEBSITES:
 www.Flipkart.com
 www.commodityindia.com
 www.marketoperation.com
 www.nextbigwhat.com
 www.britannica.com
 en.kioskea.net
 www.ecommerce-land.com

83
 www.commodityindia.com
www.marketoperation.com

84
ANNEXURE
ANNEXURE:-
Questionnaire
Name
Place
Contact info
Age
Gender
1. HOW OFTEN RESPONDENT SHOP ONLINE?
a) Once in a month b) once in two months

85
c) More frequently d) vary rare
2. PREFERRED ONLINE SITE BY RESPONDENT?
a) Amazon b) Flipkart
c) Snapdeal d) shopclues
e) Other
3. RESPONDENT PAYMENT METHOD
a) Debit card b) credit card
c) Net banking d) cash on delivery
4. RESPONDENT IS MOST IMPRESSED WITH WHICH E- COMMERCE SITE
a) Amazon b) Flipkart
c) Snapdeal d) others
5. RESPONDENT CHOOSING METHOD OF E-COMMERCE SITE
a) Referred by friend b) Advertisement
c) Online review
6. RESPONDENT IS MORE SATISFIED WITH WHICH SITE
PRICING
a) Flipkart B) Amazon
c) Snapdeal d) Paytm
7. RESPONDENT WOULD LIKE TO SUGGEST TO OTHERS
a Flipkart b) Amazon
c) Snapdeal d) Paytm
8. OCCASIONS PREFERRED BY RESPONDENT TO DO SHOPPING
a) Festival b) to gift

86
c) Offers d) weeding e) others
9. RESPONDENTS FACED PROBLEM WITH
a) Delay in delivery b) product damage
c) Cheap quality of product d) non delivery
e) Other
10) RESPONDENTS OPINION ON FLIPKART CUSTOMER CARE
a) Awesome b) good
c) Nor good nor bad d) bad
e) Worst

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