1.

FLIPKART

1.1. INTRODUCTION

Flipkart an e-Commerce company founded in the year 2007, by Mr. Sachin Bansal
and Binny Bansalboth alumni of the Indian Institute of Technology, Delhi. They had been
working for Amazon.com previously. It operates exclusively in India, where it is
headquartered in Bangalore, Karnataka. It is registered in Singapore, and owned by a
Singapore based holding company. Started with an initial capital of four lakhs it now aims for
annual turnover of around Rs.4500 crores. Flipkart has launched its own product range under
the name “DigiFlip”, Flipkart also recently launched its own range of personal healthcare and
home appliances under the brand “Citron”. During its initial years, Flipkart focused only on
books, and soon as it expanded, it started offering other products like electronic goods, air
conditioners, air coolers, stationery supplies and life style products and e-books.

1.2 HISTORY AND GROWTH OF FLIPKART

Flipkart is not an Indian company since it is registered in Singapore and majority of

its shareholders are foreigners. Because foreign companies are not allowed to do multi-brand
e-retailing in India, Flipkart sells goods in India through a company called WS Retail. Other
third-party sellers or companies can also sell goods through the Flipkart platform. Flipkart
now employs more than 15000 people. Flipkart allows payment methods such as cash on
delivery, credit or debit card transactions, net banking, e-gift voucher and card swipe on
delivery.

Flipkart is presently one of the largest online retailers in India, present across more than
14 product categories & with a reach in around 150 cities. Flipkart is currently a 10,000
member strong team, with 3000 sellers on its platform and delivering 5 million shipments per
month. Flipkart’s ‘Big Billion Day’ sale helped the company to achieve record single day
sales of Rs. 600 Crores on Monday It made its presence felt in online retailing by offering
path breaking services like Cash on Delivery (COD), 30 Day replacement Guarantee, EMI
options, Flipkart mobile app , etc.
1.3 OBJECTIVES

 The main objective is not just those who shop online .They want to highlight the
convenience of e- commerce to traditional offline shoppers and thus help grow the
market.
 Their main aim is diversity products portfolio into home appliances, electronics, etc
 The main target is stronger supply chain and aggressive acquisitions.
 The main target in 2020 is entering global market.

1.4 MARKETING STRATEGY

Flipkart as been mostly marketed by word of mouth. Customer satisfaction has been
their best market medium. Flipkart very wisely used SEO (Search Engine Optimization) &
Google Ad-words as the marketing tools to have a far reach in the online world. All in all to
create a great customer experience. Kids were used to create the adverts to send out the
message if a kid can do it, we can also do it.

1.5 BRAND AWARENESS

 Brand Awareness are key success factor in the market.

 Flipkart is the industry leading with 80% market share having a very high Brand
Awareness and lowest price.

1.6 BRAND LOYALTY

Excellent user experience on the e-commerce website in term of usability speed

clarity will enhance the loyalty of existing customer and move a step ahead of brand
awareness towards customer retention.

1.7 SWOT

1.7.1 STRENGTHS

 Brand
 Supply Chain Management
 Quick Turn around Time
  Advertisements and Promotion
 Strategic Acquisitions
 Huge Product Portfolio
 Network

1.7.2 WEAKNESS

 Delivery
 Internet Penetrations
 Payment gateways
 Higher costs
 High level of competitions

1.7.3 OPPORTUNITIES

 Rural market
 Growth in E-book culture
 Broad band Penetrations
 Mobile apps

1.7.4 THREATS

 Growth of International players

 Customer loyalty
 E-bay

1.8 FLIPKART’S SUCCESS MANTRA

 Flipkart users are most satisfied than that of their competitors great customer service
has been its hallmark. The user interface is sleek and easy to use.
 Cash on delivery creates trust in the mind of Indian customers who are always have
feared of making payments online. Flip kart focuses on providing the relevant
information possible into every single page.

1.9 FUTURE ROAD MAP

 Everything except for groceries and automobiles will be available on flip kart in
future. They will look at bigger investments in their supply chain. To enter into various new
categories and expand the categories also.

1.10 CONCLUSION

Every time they require to update their Internal Structure Systems and Innovative
Management System with sound database to provide end-to-end connectivity across all the
different processes to reach out its suppliers, partners and customers effectively.

Online retail industry in India pegged to reach $1.5 billion 2015 so suggest that e-
commerce is just hotting up in India. We may soon see many more internet companies
achieving similar success.

REFERENCES

 http://www.flipkart.com/help.php?topic=about

 http://gaikwad.in/flipkart-com-case-study/
 2. VODAFONE

2.1. INTRODUCTION

Vodafone is the world is leading international mobile communications company.

It presently has operations in 25 countries across 5 continents and 40 partner networks with
over 200 million customers worldwide. Vodafone has partnered with the Essar Group as its
principal joint venture partner for the Indian market. The Essar Group is a diversified
business corporation with interests spanning the manufacturing and service sectors like
Steel, Energy, Power, Communications, Shipping & Logistics and Construction. The Group
has an asset base of over Rs.400 billion and employs over 20,000 people.

Vodafone Essar was launched in India on 21st September 2007. Vodafone was
welcomed in India with the Hutch is now Vodafone´ campaign. The popular and endearing
brand Hutch was transitioned to Vodafone across India. This marked a significant chapter in
the evolution of Vodafone as a dynamic and ever-growing brand. This brand unveiled
nationally through a high profile campaign covering all important media.

MISSION

To be the communications leader in an increasingly connected world.

MARKETING STRATEGIES: HUTCH TO VODAFONE

Vodafone’s new advertising campaign in India carried on with the same popular pug that has
become a brand ambassador for Hutch. ‘Where ever you go, our network follows,’ was the previous
slogan with the pug following the child wherever he goes. Now, with Hutchison Essar becoming part
of the Vodafone Group, the new campaign had started with Vodafone Essar earmarking Rs. 2.5
billion on the transition from Hutch to Vodafone. The main message of the brand transition exercise:
The new Vodafone is the same old Hutch. In the advertisement, the pug sees a new home when it
returns after an outing and feels the change is better. The new catch phrase will be ‘Make the most of
now.’

Vodafone had tied up with Star India to run a complete roadblock of its fresh campaign on the
entire network by unveiling the 24-hour nationwide rebranding campaign. Vodafone used all of the
commercial airtime across all 13 channels in five languages (Hindi, Tamil, Bengali, Marathi and
English) from 9 pm on 20 September to 9 pm on September 21. This exercise included TV
commercials, transition bumpers and contest spots to promote the Vodafone Essar brand. Commercial
spots had also been purchased on Sony.

Conventionally awareness for a new brand takes some time to build. However, Vodafone
wanted to achieve this task at the shortest possible time. Hence, Maxus and Star Network worked
closely to address this challenge and came up with the idea wherein during the day of the launch a
complete roadblock on the Star Network channels was conceptualized. Considering that the Star
Network is the lead network in India, this was the most apt platform for Vodafone launch. This
strategy helped not only in achieving build rapid brand awareness but also breaks the clutter during
such an important launch in the most happening category – telecom. This is a first of its kind mega
media initiative in India by any brand. While the campaign was heavy on television, it also included
all other media vehicles. The print campaign kicked off on 21 September, a day after the television
splash.

While the brand campaign had been addressing the transformation, the Company, on the other
hand was swiftly preparing for a price war in the Indian telecom space. Indeed, it was preparing to
provide mobile handsets to new subscribers at ultra-cheap prices, ranging from about $19 to $25.

Vodafone Essar launched low priced cell phones in India under the Vodafone brand, and also
co-branded handsets sourced from major global vendors. By bringing in millions of low-cost handsets
from across the globe into India, Vodafone Essar distributed bundled handsets through its existing
400,000 distribution outlets. By flooding the market with its low-cost handsets, Vodafone also
became a mass mobile phone brand like Nokia, Samsung, Motorola, and Sony Ericsson in addition to
continuing as telecom services provider.

Previously, similar handset-driven expansion strategies to grow subscriber bases were

adopted by CDMA players, like RCOM and Tata Teleservices. Vodafone is the first GSM operator to
follow suit.

The Vodafone mission is to be the communications leader in an increasingly connected world

– enriching customers’ lives, helping individuals, businesses and communities be more connected by
delivering their total communication needs. Vodafone’s logo is a representation of that belief – The
start of a new conversation, a trigger, a catalyst, a mark of true pioneering.

VODAFONE ADVERTISING STRATEGIES: HUTCH TO VODAFONE

Advertising is probably one of the most frequently used vehicles for Rebranding, as it is fairly
easy, flexible and quick to change. It is a powerful way of reaching a broad or targeted audience
quickly and is effective at signaling a change in positioning, however real or broad that may be. There
are many examples of where advertising has either repositioned or strengthened brands, other good
examples of where advertising has built a new position for a brand or built a strong emotional link
with the public are where companies have created a sort of soap opera out of their advertising.

The Advertising agency of Hutch and now Vodafone, Ogilvy & Mather (O&M), had a two-
fold task to achieve: announce the entry of Vodafone into India and highlight the metamorphosis of
Hutch into Vodafone. O&M realized that they had a fantastic property in the Hutch pug, which they
had been using for about five years. Therefore, to show the transition from Hutch to Vodafone, O&M
launched a rather direct, thematic ad showing the trademark pug in a garden, moving out of a pink
colored kennel which symbolized Hutch making his way into a red one that is the Vodafone color. A
more energetic, chirpier version of the ‘You and I’ tune associated with Hutch was played towards the
end, and it concludes with ‘Change is good. Hutch is now Vodafone’.

O&M has also rolled out four Commercials featuring Hutch’s animated boy and girl,
‘introducing’ the new brand’s logo to consumers. The four creative’s which were of five seconds each
included the duo peeping over a wall to see the logo; parasailing with the logo flying high behind
them; releasing a rocket bomb wherein the explosion reveals the logo; and lastly, drawing curtains
aside to show the logo.

Four other ads with the pug did the rounds of telly screens. These five and 10 second spots
cast the dog in situations where he, literally, saw red, using the color as a visual mnemonic to
remember the brand by. The pug was shown in a red basket, popping up from a red cart, drying
himself on a red mat, and hiding in a red blanket. Each of these made use of the ‘Hutch is now
Vodafone’ tagline.

The print ads, in all major languages in several leading dailies, were kept unbelievably
simple: a still shot of the pug inside a red kennel. The same creative was used in outdoor hoardings as
well, in all the 16 circles in which Vodafone now operates.

It wasn’t easy integrating Vodafone with Hutch; the latter, as is known, is a subtle,
understated brand, while globally, Vodafone represents high energy, dynamism and young vitality –
all represented by its bright red speech mark logo. And so they put in elements such as a more
energetic tune and feel to the ads.

A FEW ADVERTISEMENT S INCLUDED

Hutch is now Vodafone: If you watch any of the star channels or tuned into 20-20 world cup,
you would have seen this ad On 11 February 2007, Vodafone agreed to acquire the controlling
interest of 67% held by Cheung Kong Holdings in Hutch-Essar for US$11.1 billion and now had to
rebrand itself so it has decided to run a new ad series which piggy banked on Hutch’s dog mascot and
the theme “Change is Good”. This required nearly 250 crores of spending by Vodafone but they have
successfully painted the town red. An interesting part of this campaign was on the opening day
roadblock where they made a deal with Star India so that besides them no other commercials were
aired (apart from in-channel promos) on the Star India’s channels for 24 hours.

Vodafone Valentine Day Special Ads: Vodafone had released a simple and sweet ad for
musical greetings targeted at couples during the valentine week the feature of this campaign is its
simplicity and believability and is quite well received. It uses the positioning “Make the most of now”
enjoy the video

Vodafone Chota Credit Ink Ad: This new ad had come as refreshing change and more so that
this ad takes a very refreshing look at school and at fountain pens. This ad creates a wonderfully
subtle message which really puts the point of chota (small) credit across.
 3. BMW
3.1. INTRODUCTION

The Bayerische Motoren Werke (BMW) Group is a prominent European maker of

prestige automobiles headquartered in Munich, Germany. It was established during the
First World War to manufacture engines; in 1945, the company was still Germany’s
leading manufacturer of aero-engines. Subsequently it diversified into what in 2000 were
its main products, automobiles and motorcycles. By then BMW was one of Germany’s
largest and most successful companies. But BMW’s road to sustained success was a
troubled one and in 2000 the horizon was not all rosy. The group’s activities were
concentrated almost exclusively on two product ranges: high performance saloon
automobiles and motorcycles. The focus of this case is on automobiles.

3.2 BACKGROUND

One of the ten largest car manufacturers in the world, Bayerische Motoren Werke
(BMW) has a long history of excellence. Founded in 1916, headquartered at Munich
Germany, BMW started its United Kingdom (UK) operations in 1980
(www.bmweducation.co.uk). The BMW Group also provides financial and information
technology services such as customer relationship and supply chain management. Through
sturdy company customs, thorough engineering, and pioneering innovations BMW Group has
been able to establish itself as manufacturers of one of the most elite vehicles on roads today.
UK is the third largest market in terms of sales and the second biggest in terms of production
base (www.bmw.co.uk). “The BMW Group has invested over £800 million in its UK
operations since 2000.”

3.3 COMPETITION

As per the case provided by Lencioni, the industry was faced with a 30 per cent
excess capacity and too many companies were chasing fewer customers. A number of
environmental circumstances affected the industry in the first few years of the 21st century.
The global economy experienced a sharp downturn in 2001 and this lasted well into 2003.
Equity prices had fallen and this combined with concerns of oil supplies had created an
atmosphere of uncertainty. Sales of automobiles had declined in almost all the markets.
BMW was listed 6th in the largest manufactures list and had sold 1.12 million vehicles in
2003 with sales of 41.52 billion Euros, while General Motors which stood first had sold 8.5
million vehicles and had sales of 157.19 billion Euros. The other competitors which were
above BMW were Ford, Daimler Chrysler, Toyota and Volkswagen.

3.4 POSITION STRATEGY OF BMW

BMW automobiles have been positioned differently and priced differently in the
various national markets. Being close to the buyers had allowed them to segment the market
effectively. The BMW brand acquired a distinctive identity as a symbol for young, affluent
European professionals. Most drivers perceived high performance saloon automobiles as
synonymous with BMW. They had been able to structure their production around an easy to
summarise theme “The ultimate driving machine”. BMW conveyed the image of the
“ultimate driving machine”, even to those customers who bought models with small engines
and automatic transmission, say a 3-series. The reason for this was that every model raised a
set of general perceptions and emotional connections generated by the mother brand, as well
as some specifically related to the model in question. The common theme of the brand
conferred even to the least representative model a certain aura.

The main markets for BMW automobiles have been Western Europe, the USA, Japan
and the Pacific region, with the markets of Germany and the US accounting for almost half
the total car sales. Important markets have also been the fast-growing UK, and the Italian,
French and Japanese markets.

3.5 SWOT

3.5.1 STRENGTHS

 BMW is independently owned.

 Brand identity conveyed through ‘Ultimate Driving Machine’.
 Highly qualified labor force as source of competitive advantage.
 BMW is independently owned.
 Brand identity conveyed through ‘Ultimate Driving Machine’.Highly qualified labor
force as source of competitive advantage

3.5.2 WEAKNESS

 Fails to appeal wider range due to affordability of car.

 It’s associated with highly expensive products and is perceived to be affordable only
by those in the upper level of the society.
  In the early 2000s the range of the models continued to be the concern.
 Acquisition with Rover was not properly planned and the venture did not work and
came to a sorry end.
 Labor cost was comparatively expensive in European countries compared to China.

3.5.3 OPPORTUNITIES

 Global expansion, entering into new markets.

 Huge demand for smaller cars in the market.
 Asia is the key market for BMW.
 There is a market for luxury/performance cars.
 Leverage brand image.
 Entry into Sports car segment.
 Dealer expansion.
 Joint ventures with other automobile companies to increase market share

3.5.4 THREATS

 Brand dilution.
 Cannibalization - Any model positioned in the proximity of a more expensive model
could cannibalise it.
 Reduction of profit margins.
 Saturated markets.

STRATEGIC PLANNING OF BMW

In 2003, BMW was planning to launch a new model every three months through to
2005, providing a range of premium automobiles that ranged from the Mini to the Rolls
Royce. The aim was to raise sales by 40 per cent a year for the next five years, and to achieve
sales of 1.4 million vehicles. Mercedes-Benz would then become number two producer of
premium cars, and BMW’s long term ambition of being number one would be realized. To
achieve the targets it had set itself, the company was pushing hard in the US and Asian
markets to find buyers for the high-end models. It also planned to expand its production
facilities to China where a well qualified labor force cost much less than in the West. It was
an ambitious plan that, if successful, as well as giving the group greater prominence and
profitability would also effectively cure the problem of vulnerability of acquisitions.
PROBLEMS IN IMPLEMENTING THE STRATEGY

The implementation of strategy could hamper the “ultimate driving machine” image of
BMW. They had been able to exploit this brand identity very profitably and globally, wherever their
niche could be found. But it’s not sure how far they can extend their product line. And there was also
the risk that any model positioned in the proximity of a more expensive model could cannibalise it.
Secondly, increasing the production of smaller cars could have the effect of reducing the historically
high margins enjoyed by BMW. The third concern was that of quality. With pressure on costs, the
risk of quality lapses was bound to increase. The consequences of quality defects in the premium
segments can be very heavy. Expanding production with increasing contracting out of manufacturing
process could make quality control more difficult than it had been when a handful of models made
BMW’s reputation worldwide.

RECOMMENDATION

 The recommendation strategies for BMW to become one of the most profitable manufacturers
in the world are as follows:
 To increase automobile market share by tapping new markets in developing countries like
Brazil, Russia, India etc.
 As there is a huge demand for smaller cars in the market, they can make a new, different
brand to manufacture small or mid segment cars which will not dilute the mother BMW
premium brand.
 For premium and luxurious car segment they can go for acquisition or joint ventures with
premium car making company and optimize line extension of Rolls Royce and Mini.
 They should concentrate on core competency i.e. delivering quality, luxury and performance.
And also try to manufacture innovative cars with high technology features, powerful engines
and modern design.


Reference: Exploring Corporate Strategy (7th Edition) - Garry Johnson, Kevan Scholes and Richard
Whittington
 4. WAL-MART’S

4.1INTRODUCTION
A supply chain is a network of facilities and distribution options that performs the functions
of procurement of materials, transformation of these materials into intermediate and finished
products, and the distribution of these finished products to customers. Supply chains exist in both
service and manufacturing organizations, although the complexity of the chain may vary greatly from
industry to industry and firm to firm. Keeping this in mind Sam Walton, the founder of Wal-Mart had
always focused on improving sales, constantly reducing costs, adopting efficient distribution and
logistics management systems and using innovative information technology (IT) tools.

By 1969, Walton had established 18 Wal-Mart stores. By late 1970s, the retail chain had
established a pharmacy and an auto service center. In 1980s, Wal-Mart continued to grow due to
huge customer demands in small towns. In 2002, Wal-Mart operated more than 3,500 discount
stores, Sam's Clubs and Supercenters in the US and more than 1,170 stores in all major countries
across the world. Wal-Mart was one of the largest private sector employers in the world, with
employee strength of approximately 1.28 million. The phenomenal growth of Wal-Mart is attributed
to its continued focus on customer needs and reducing cost through efficient supply chain
management practices.

4.2 INVENTORY MANAGEMENT

Wal-Mart invested heavily in IT and communication systems to effectively track sales and
merchandise inventories in stores across the country. With the rapid expansion, it was essential to
have a good communication system. Hence, Wal-Mart set up its own satellite communication system
in 1983. Wal-Mart was able to reduce unproductive inventory by allowing stores to manage their
own stocks, reducing pack sizes across many product categories, and timely price markdowns.
Instead of cutting the inventory across the board, Wal-Mart made full use of its IT capabilities to
make more inventories available in the case of items that customers wanted most, while reducing the
overall inventory levels. Employees at the stores had the “Magic Wand,” a hand-held computer
which was linked to in-store terminals through a radio frequency network.
4.3 VOICE-BASED ORDER FILLING (VOF)

In 1998, Wal-Mart installed a voice-based order filling (VOF) system in all its grocery distribution
centers. Each person responsible for order picking was provided with a microphone/speaker headset,
connected to the portable (VOF) system that could be worn on waist belt. They were guided by the
voice to item locations in the distribution centers.

The VOF system also verified quantities picked, and could respond to a variety of requests such as
providing product detail (type, price, barcode number, etc.) By installing the VOF system, Wal-Mart
eliminated mispicks and product labeling costs since the system did not require paper lists and labels
to be affixed on the goods.

4.4 RETAIL LINK SYSTEM

In 1991, Wal-Mart had invested approximately $4 billion to build a retail link system. More than
10,000 Wal-Mart retail suppliers used the retail link system to monitor the sales of their goods at
stores and replenish inventories. Details of daily transactions ($10 million per day) were processed
through this system. Retail Link connected Wal-Mart’s EDI network with an extranet, accessible to
Wal-Mart’s thousands of suppliers.

4.5 COLLABORATIVE PLANNING, FORECASTING AND REPLENISHMENT (CPFR)

By the mid 1990s, Retail Link had emerged into an Internet-enabled SCM system whose
functions were not confined to inventory management alone, but also covered collaborative planning,
forecasting and replenishment (CPFR). In CPFR, Wal-Mart worked together with its key suppliers on
a real-time basis by using the Internet to jointly determine product-wise demand forecast. CPFR is
defined as a business practice for business partners to share forecasts and results data through the
Internet, in order to reduce inventory costs while at the same time, enhancing product availability
across the supply chain. Though CPFR was a promising supply chain initiative aimed at a mutually
beneficial collaboration between Wal-Mart and its suppliers, its actual implementation required huge
investments in time and money. A few suppliers with whom Wal-Mart tried to implement CPFR
complained that a significant amount of time had to be spent on developing forecasts and analyzing
sales data.
4.6 RFID TECHNOLOGY (RADIO FREQUENCY IDENTIFICATION)

In efforts to implement new technologies to reduce costs and increase the efficiency, in July
2003, Wal-Mart asked its top 100 suppliers to be RFID compliant by January, 2005. Wal-Mart
planned to replace bar-code technology with RFID technology. The company believed that this
replacement would reduce its supply chain management costs and enhance efficiency. Because of the
implementation of RFID, employees were no longer required to physically scan the bar codes of
goods entering the stores and distribution centers, saving labor cost and time.

Wal-Mart expected that RFID would reduce the instances of stock-outs at the stores. Although Wal-
Mart was optimistic about the benefits of RFID, analysts felt that it would impose a heavy burden on
its suppliers. To make themselves RFID compliant, the suppliers needed to incur an estimated $20
Million. Of this, an estimated 50% would be spent on integrating the system and making
modifications in the supply chain software.

4.7 MANAGEING THE SUPPLY CHAIN PROCUREMENT AND DISTRIBUTION

Wal-Mart always emphasized the need to reduce its purchasing costs and offer the best price
to its customers. The company procured goods directly from manufacturers, bypassing all
intermediaries. Wal-Mart was a tough negotiator on prices and finalized a purchase deal only when it
was fully confident that the products being bought were not available elsewhere at a lower price.

SWOT

4.8.1 STRENGTHS

 Mass production
 Diversity of products
 Global activities
 Cost leadership strategy

4.8.2 WEAKNESS

 Scandals of bribery
 Bad reputation
 High employee turnover
  Small competitor differentiation

4.8.3 OPPORTUNITIES

 Emerging markets growth

 Healthy eating movement
 E-commerce growth

4.8.4 THREATS

 Online and Physical competitors

 Online and Physical competitors
 Scepticism from local

4.9 CONCLUSIONS

Wal-Mart is the number one retailer in the United States and is at the top of the Fortune 500
listing. Wal-Mart operates in many countries world-wide and is moving into new countries every
year. Wal-Mart is also expanding as a retailer. They have expanded into many other sectors of the
marketplace, including groceries, gas stations, electronics, and auto maintenance. Each year, Wal-
Mart finds new ways to grow and offer more services to their customers. As a result of Wal-Mart's
ever growing size and variety of services they offer, their public affairs department is going to
become more and more important. As Wal-Mart attectors of the marketplace, there is going to be
more regulation against them and their public affairs department is going to have to work harder to
make it possible for Wal-Mart to continue to grow

REFERENCE

Sivakumar.A, “Retail Marketing”, Excel Books Publication, 1st Edition, 2007