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Shubham

Flipkart is an Indian e-commerce company founded in 2007 that has become one of the largest online retailers in India through strategic acquisitions and marketing. It focuses on expanding its product categories and supply chain to compete against other players like Amazon. While it has strengths like market share and brand recognition, it also faces threats of intense competition and regulatory challenges. Going forward, Flipkart aims to make most product categories available on its platform except for groceries and automobiles.

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Utkarsh Rai
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84 views4 pages

Shubham

Flipkart is an Indian e-commerce company founded in 2007 that has become one of the largest online retailers in India through strategic acquisitions and marketing. It focuses on expanding its product categories and supply chain to compete against other players like Amazon. While it has strengths like market share and brand recognition, it also faces threats of intense competition and regulatory challenges. Going forward, Flipkart aims to make most product categories available on its platform except for groceries and automobiles.

Uploaded by

Utkarsh Rai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CASE STUDY ON FLIPKART ABSTRACT

Innovation
brings with itself a new set of challenges. The E-Retailing form of market was
fairly
something unheard of to the Indian consumer in 2007. Flipkart which has carved a
niche for itself in terms of
market share, goodwill and popularity in the online market to the extent that
retailers are coming under threat
because of its discounts and smooth operations. The ascent of Flipkart to
capture the online market in India in
just four years,the strategies implemented by it to create online business ,its
ability to stand out among
numerous E-Retail sites. This case study aims to understand the marketing
strategy ,brand awareness, SWOT
analysis ,functioning of Flipkart. It aims to predict the future roadmap and
also aims to find significant threats to Flipkart in the near future.
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
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.
INTERNATIONAL JOURNAL OF TRANSFORMATIONS IN BUSINESS MANAGEMENT
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.
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.
2. Their main aim is diversity products portfolio into home appliances,
electronics, etc 3. The main target is stronger supply chain and aggressive
acquisitions.
4. The main target in 2020 is entering global market.
RESEARCH METHODOLOGY
Secondary data which have already been collected and analyzed by researchers. In
this Case study information are taken from various sources like journals,
newspapers, internet, books, etc.
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.
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.
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 a head of
brand awareness towards customer retention.
Strength Weakness Opportunity Threat (SWOT) Analysis
S Stands For Strengths ( Internal Factor )

India’s Largest E-Com Retailer: Flipkart is India’s largest e-commerce company


and has achieved a GMV (gross sales value) of $1 billion so far.
Promoters: Flipkart’s founders, Sachin & Binny Bansal, are ex-Amazon employees.
Their experience in the e-commerce industry has helped the founders work
strategically and differentiate their company in a highly competitive market.
Acquisitions: with a series of acquisitions like Letsbuy.co, chakpak.com,
weread.com, Mine360 and the recent acquisition of Myntra, the company has been
able to expand into e-commerce space and leverage the capabilities and existing
resources of the acquired companies.
High brand recall: Flipkart has established itself as a renowned e-commerce
company in India through TV advertisements, online branding and its social media
presence. Brand activities like ‘Big Billion Day’ have significantly increased
the brand recall of the company.
Own payment gateway and logistics arm: The company’s logistics arm E-kart and
payment service provider Payzippy have helped the company control its expenses.
As a result, the benefits are passed on to the end customers.
Exclusive & wide product range: Exclusive rights to launch some products like
Google Pixels, Google Buds, and other personal designer segments in the apparel
category have helped the company to differentiate and localize its offering.
Market Share & Financials: Flipkart has a market share of 39.5% & Flipkart has
an annual revenue of US $6.1 billion.
Strong Promoter: Flipkart holds a 77% stake in Wal-Mart, a global retail giant.
Its previous experience in the e-commerce industry helped the founders
strategize and differentiate their company in a highly competitive market.
W Stands For Weaknesses ( Internal Factor )
Limited Distribution: Flipkart has limited channel reach, though the logistics
department has kept costs low. This is a weakness of the company as it has
limited reach. Global giants like Amazon and eBay can deliver their products to
any part of the country thanks to outsourcing. Flipkart, on the other hand, is
still struggling in this area.
Cost of Acquisition: Since Flipkart acquires a large number of customers through
online advertising, the cost of acquisition is high due to stiff competition in
the market and low customer retention. According to Flipkart, the company spends
an average of Rs. 400 to acquire a new customer.
Buyers have the power: Since there are a large number of players in this
industry, buyers have a large number of options to choose from. Shoppers save
money on switching costs as they can easily switch from one online retailer to
another. The same products are offered on multiple online retail websites. There
is virtually no product differentiation, so the battle is solely on price.
O Stands For Opportunities ( External Factor )
Business Expansion: by focusing on other emerging markets, a company can
increase revenue while benefiting from economies of scale.
Increase In Category: This increases the customer base while decreasing the cost
of customer acquisition and switching.
Change in Interest: As more and more customers are getting comfortable with
online shopping and the number of internet users in India is increasing, there
are huge opportunities in this industry.
Supply Chain System: by optimising their supply chain, they can compete with the
other players and manage the loss of sales due to the product not being
available due to supply shortages.
Global Markets: Similar to Amazon, Flipkart can gradually start expanding its
business outside India and do business in other countries as well, which will
help in growing its revenue.
T Stands For Threats ( External Factor )
Intense competition: There is fierce competition between global players like
Amazon and eBay and local players like Snapdeal, Tolexo and Shopclues who are
constantly trying to take market share from each other.
Government regulations: Government regulations on issues such as foreign direct
investment (FDI) in multi-brand retail have significantly hampered the growth of
the e-commerce industry in India.
FLIPKART’S SUCCESS MANTRA
1. 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.
2. 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.
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
Flipkart Affiliate Marketing Commission
Below we are mentioning a few product categories and their commission
percentages:
Books and e-learning (10%)
Gold and silver coins (0.1%)
School supplies and toys (10%)
Baby care products (10%)
Fragrances and Beauty products (10%)
Household supplies (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.

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