Presented by:MBA (General)o(44)

Presented
by:MBA (General)

BIRTH OF FLIPKART.COM
Sachin Bansal (CEO and Co-founder) & Binny Bansal

(COO and Co-founder) started Indias Own

Amazon.com named as Flipkart.com in October 2007
selling currently a book a minute emerging as largest
online book store in India with a intial investment of 4
lakh rupees
Flipkart.com ventured into E-commerce in 2007 by
their founders as
They were IIT-Delhi graduates
Big believers and passionate about E-commerce
Sniffed the trend of increasing internet penetration
in India.
Had better knowledge of technology, distribution
and logistics.
Would give better experience to consumer in terms
of user friendliness and safe and secure netpayment options.

Vision
To become Amazon of India.

Mission
Providing a delightful and memorable customer experience.

Objective
Completely hassle free shopping experience with best prices in
India.

Prepared By:- Isabat Rizvi

 Leading Indian E Commerce company headquartered in Bangalore.

Started by two IIT graduates (earlier employed with Amazon) in year 2007.
Indias largest online bookseller with over 11.5 million titles in offer.
Added other products like media, electronics, personal and health care.
Boasts 100% growth every quarter since founded.
Funded by owners Bansals, VCs Accel India and Tiger global.
Projected sales for year end 2011-12 stands at US $ 100 million.
Sells nearly 20 products per minute.
First company to introduce Cash On Delivery payment system.
First Mover in the Indian online retail Industry.
Registered User base of two million customers.
4

Prepared By:- Isabat Rizvi

Top 30 Websites in India.

11.5 million titles available.

8 million visits every month.

4500 current team strength in 27 cities.

30000+ items shipped per day.

Projected to be Indias first Billion dollar Internet

company by 2015.
Prepared By:- Isabat Rizvi

WHY BOOKS AS THEIR FIRST CHOICE?

Books is the core selling product of Flipkart.com right from

the start.
Book was chosen because
Lower transaction size.i.e, Books approximately starts
with Rs.100, so it becomes easy for the consumer to
trust the new Flipkart.com for 1st transaction rather than
mobile phones/cameras.
Better shelf life.
Shipping and handling of books is easy.
To emerge as a pioneer in book retailing rather than
venturing comparison shopping engine.

GROWING STORY OF FLIPKART.COM

Started from 2 employees,2 suppliers

and now has around 4500 employees

and >500 suppliers now.
Started with books first then mobiles
and accessories as shown besides.
Flipkart had a revenue of 4 crore in FY
2008 - 2009, 20 crore in FY 2009 2010, 75 crore in FY 2010 - 2011, and
the revenue for FY 2011 - 2012 which
ends on 31 Mar 2012 is expected to be
500 crore.The company targets
revenues of 5000 crore by 2015.

MARKETING MIX OF FLIPKART.COM

PRODUCT
Website is easy to use,make convenient payments using

different methods and better Search Engine Optimization.

Quality level of the products is Excellent
Product line is extensive one as discussed earlier. Derives

around 50% of its revenue from selling books online.

Recently Flipkart has derived the exclusive rights to sell Motorola
Phones, ex Moto X and Moto E.

PRODUCT
Some unique product features of

Flipkart.com such as
Wishlist
E-gift voucher

PRODUCT
Flipkart launched a new Electronic Wallet feature that allows

shoppers to purchase credit to their Flipkart account using credit

or debit cards, and can subsequently be utilized to make
purchases on the site, as and when required.

PLACE
Warehouses are located in the following cities, often near

airports.
Bangalore
Chennai
Delhi
Hyderabad
Mumbai
Noida
Pune
Kolkata

PRICE
Price of the product taking account of various expenses such as

Supplier expenses, Transportation expenses, Packaging

expenses, Shipping expenses,Courrier expenses, inventory
maintenance expense, office and stationery expenses, sales and
advertisement expenses, taxes, depreciation, discount
allowances and many more expenses.
Roughly about 5-7% profit per book orders which indicates that

generation of revenue is on volume basis.

Differentiated themselves by giving best selections, best services

at lowest best possible prices.

Discounts upto 35% across all categories.
Upper edge in competitive pricing.

PRICE
Competetive Pricing

PROMOTION
Employees of divisions like Website, Business Planning and

Analytics, ERP, Business Development, Product Management

and Marketing, Supply-Chain Management and Customer
Support are generating revenue for it.
Selection Criteria at Flipkart:-While years of experience are

always beneficial for a candidate, Flipkart's focus is to hire those

who are able to consistently raise the bar and introduce a variety
of innovations to move this organization forward. As Flipkart
grows, we feel it is absolutely necessary that our employees are
also able to grow professionally with the organization.
Adequate Training as per their roles and responsibilities is given

to them accordingly and incentives.

Telephone Sales force is only 2% of the total employees
focussing to reduce the unsold/goods not much in demand.

PROMOTION
Majority of Flipkart are employed in Customer support division.

It is the only customer support division in India having 24x7

customer support functioning for issues such as regarding

choice of the product to purchase,shipping,courier,how to order
on website, mode of payment, gift voucher, order status &
cancellation and returns.
Having even tie up with Skype for the same on the website for
user delight.
Unique tool of Sales Promotion is Affliate on their website.
Publicity is by words of mouth publicity generating trust and
accountability to users. (Video for the same).

PROMOTION
As internet/web strategy used Google Ad-words, blogs,social

networking sites such as twitter,facebook,used Google ad-words,

e-mail campaigns.
Advertising focused on first
Words of mouth from 2007-10 as the advertisment cost was
not affordable
Focused on Print and TVC from 2011 onwards.
Launched their first campaign in tvc on 05/05/2011 with the
concept of Granny, Mouse, Magic Presenting The Concept of
Getting Books Delivered at Doorsteps at just one click of The
Mouse through a Fairy-Tale.
Launced their second campaingn No kidding. No worries

that we are serious about our promises we make and experience

shopping safely, delightfully and with ease.

External Analysis

Opportunity:
1. Untapped mobile users
2. Coverage of all parts of India
3. Tie ups with Book fairs/education
institutes.
4. Enter new untapped global
markets
5. Self e-publishing

Threat:
1. Low internet penetration
2. Less usage/preference of online
buying
3. Small value orders in remote
areas with high delivery costs
4. Amazon will enter soon

Strength:
1. Customer service
2. Online discoverability
3. Brand
4. Inventory management
5. Self owned delivery n/w
6. Supplier network/relation
7. Innovation and technology
competence.

Provide mobile platforms.

Mobile consumers
marketing to educate reliability to
customer

Weakness:

Tie up with educational institutes for

providing bulk orders to
students/schools.
reduce delivery costs with widespread
warehouses and promoting high
margin e-books.
Improve reach, enter new untapped
cities.

Internal Analysis

1.
2.
3.

No control over small value orders

Free shipping built costs
Less reach as compared to
physical book stores.
4. Global reach.
18

Increase the reach.

Target students and education sector.
Enter new attractive global markets.
E.g. Srilanka.
Tie up with authors to acquire rights.

Save costs and provide package deals

for higher value orders.
Enhance brand loyalty ,customer
service and build on delivery and
supplier n/w.
Minimize small value orders
Promote other mediums of buying like
mobile, telephone or may be small
retail outlets
expand to new untapped markets and
acquire small players.
Prepared By:- Isabat Rizvi

Recent Achievements :
Flipkart, Myntra merge in Rs 2,000 crore deal
Two of India's biggest e-commerce companies,

Flipkart and Myntra, have merged to create an

entity with annualized sales of $1.5 billion,
bringing them closer and in some cases
rivalling the much older offline retailers of
those like Future Group, Aditya Birla, and
Reliance.
Their combined might also places them in a
better position to take on the likes of Amazon,
which has become increasingly aggressive in
India's booming e-tailing market.
The deal was influenced by two large common
shareholders, Tiger Global and Accel Partners.

Flipkart First paid subscription service

goes live
Flipkart First, Flipkarts paid subscription service, goes live

today, becoming the the first e-commerce marketplace in India to

offer this service to customers.
For an annual membership fee of Rs 500, Flipkart customers can
avail of a bunch of exclusive benefits and priority service
features like free shipping for orders, free in-a-day guarantee
delivery, same-day-guarantee delivery at 50% discount (Rs 70) and
priority customer service.
A lot of other benefits and offers to be added soon, the ecommerce major said in a statement.
While 75,000 lucky customers have already received a three
months free subscription to Flipkart First, other customers can
now sign up for this service at its website.

Short Term:
Flipkart must develop mobile application/solution for huge cell-phone
customer base of India helping it to increase its reach.
Increasing margins while reducing losses by providing attractive bundled
deals to low value shoppers.
Provide small mobile outlets in cities with limited reach to internet and
increasing demand.

Long Term:
Enter new international markets which is either un-served or untapped.
Focus on high margin products like e-novels for a book store.
Diversify into all product categories (achieved) to achieve economies of scale.
Educate Indian conventional customer by marketing efforts.
Increase bulk selling and reach to student customers by ties with educational
institutes for academic curriculum supplies.
21

Prepared By:- Isabat Rizvi

RECOMMENDATIONS
Should start its own courier service to save expenses.
Make relationships with every possible supplier of Tier I cities as major

revenue comes from them.

Tie up with international suppliers.
Advertise more in TierII and Tier III cities by hoarding and print media

and Transit advertising.

If affordabe use movieplex advertising.
Have localization of content and website if extending business to foreing

nations.

RECOMMENDATIONS
Sell textbooks as a band and magazine subscriptions or

fortnightly magazines at Flipkart.com in books category.

Sell Musical instruments in Music category.
Add a new category of Clothing,Shoes and jwellery in your
product line.
Sell Toys and Games(not video).
Add a new category of Sports and Outdoor Category in your
product line.