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Flipkart Vs Amazon- A Case Study on e retailing.


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A case study on Flipkart Vs Amazon as presented in Mindscape- A case study competition which could manage to win the Runners up trophy is hereby shared for reference.

Published in: Retail, Business
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Flipkart Vs Amazon- A Case Study on e retailing.

  1. 1. Flipkart Vs Amazon: a case study in e-retailing By: Sumit Lokhande SIEMENS Nashik Works 1
  2. 2. E-Commerce in India IT Act, 2000 Explosive Growth Access to Internet: 11% Indians Growth: > 50% Annually Sales by 2016: $8.3 billion* Contribution to India’s GDP by 2020: 4%** Source: *Crisil (Credit Rating Information Services of India Limited ) **KPMG 2
  3. 3. Challenges in E-Commerce Industry: High return ratio → Reverse Logistics High Failure Rate for most Payment Gateways Low Internet penetration Low Smartphone penetration No Touch and feel experience. Logistics 3
  4. 4. Amazon: An Introduction American International Headquartered at Seattle Started as online bookstore Soon diversified selling CDs, DVDs, software, electronics, furniture, toys, etc Mission: To be world’s largest Customer Centric Company 4
  5. 5. Amazon Business: Platforms for Merchants & Associates Many acquisition from 1998 till date 5
  6. 6. Home Page 6
  7. 7. Flipkart: An Introduction Indian e-commerce company headquartered in Bangalore, Karnataka. Founded by Sachin Bansal and Binny Bansal in 2007. Initial focus on online sales of books, but later it expanded to electronic goods etc Multiple Payment Methods 7
  8. 8. Innovation Delivery within 2 Days 30 Days return policy Card Swipe on delivery Comparison of products made easy Browsing made easy Exclusive Launch at aggressive prices. (Eg., Moto E) 8
  9. 9. Flipkart: Home Page 9
  10. 10. Sales Promotion: Flipkart Apart from Television Commercial, Flipkart relies more on word of mouth publicity. Other Promotional Techniques include: Rebate & Discounts Refunds Quantity Deals/ Gifts Full Finance @ 0% 10
  11. 11. The Road Ahead For Flipkart: Glowing Reviews Niche Product: DigiFlip Value Added Differentiation: Focus on customer & Providing Customization of Products. Aggressive marketing for the Mobile App 11
  12. 12. SWOT Analysis: Flipkart 12
  13. 13. Business Level Strategies: Flipkart Word of mouth advertising Customer satisfaction Wise Use of Search Engine Optimization (SEO) and Ad Words Social Media Ekart 13
  14. 14. Strategic Evaluation: Flipkart 14
  15. 15. Flipkart Journey • First Mover Benefit • Pioneering innovation: Sales of Motorola, Xiaomi • Excellent Service and Product Quality • Ease of use • Market leader despite offering relatively high prices • Discounts and free shipping • Successful WOM marketing 15
  16. 16. Flipkart’s Big Billion Day Sale: 16
  17. 17. Marketin g Tactic: • Special Mailers • Target Sales: Rs. 1 Billion •Achieved Sales: Rs. 6.14 Billion 17
  18. 18. Market Place Model Inventory & Market Place Model 1706 SKUs 1535 SKUs 4172 Offers 2244 Offers Camera Prices costlier Camera Prices cheaper Laptop Prices Cheaper Laptop Prices costlier 18
  19. 19. Business Model/ Marketing Mix Flipkart is a Marketplace model Sub Brand ‘DigiFlip’ Ekart Logistics for competitors Hand to Hand Exchange via Myntra Logistics 19
  20. 20. Marketing Innovation FlipKARDs for Brand Loyal Reward coupons for Product Reviews Expert Advice from Tech Bloggers Modeled Clothes as per Size Chart Flipkard Loyalty Programme Discounts. Coupons. Sale. 20
  21. 21. Retaining Leadership Position Customized Products Develop IT Infrastructure Complement Product Purchase Renovate & Expand Business Increase No. of Sellers More features on Mobile App 21