FLIPKART

GROUP -4
VIJAYETA BARMAN
RAVI SHANKAR
SAKET SRIVASTAVA
ANURAG PURI

Overview
0 Flipkart is an e-commerce company founded in 2007, by Sachin
and Binny Bansal
0 It operates exclusively in India, where it is headquartered in
Bangalore, Karnataka.
0 According to Alexa Internet, Flipkart's website is one of the 10
most visited websites in India.
0 Flipkart has launched its own product range under the name
"DigiFlip", offering camera bags, pen-drives, headphones,
computer accessories, etc.
0 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.
0 Other third-party sellers or companies can also sell goods
through the Flipkart platform.
Contd...
0 Flipkart aims to become the largest retailer of India.
Flipkart wants to be present across all categories, except in
groceries and automobiles, the CEO said. Our target is not
just those who shop online. We want to highlight the
convenience of e-commerce to traditional offline shoppers
and, thus, help grow the market.

0 2012 - US $ 100 million, Diversify product revenues
0 2015 - US $ 1 billion India, Aggressive markets, Stronger
Supply chains
0 2020 Largest Retailer in India, Enter Global Markets

0 Vision - To become Amazon
of India

0 Mission To provide a
delightful customer
experience

VISION & MISSION
SWOT Analysis
Strengths


Convenience

Effective inventory management : Own Logistics Arm e-kart

Large and loyal customer base

Existing distribution and sales networks

Strong Brand value and brand awareness

Own online payment gateway solution

Excellent customer service
Weaknesses

Investor driven organization or lack of Independent board.

Less reach as compared to physical book stores.

Higher prices as compared to other websites.

Excessive focus on expanding customer base rather than pulling profits.
Opportunities
Growing demand.

Online fashion and apparel business.

Providing logistics services to its competitors.

Growth in online retail sector in India

Tie ups with educational institutes for providing bulk orders to students/schools.

Tie ups with authors to acquire rights.

Improve reach and enter new untapped cities.
Threats
Technology upgradation by copettitors

Lack of Custumor stickiness owing to variety seeking behavior

Amazon has launched 22 categories in 10 months

Adapting to the model for the Indian Market :

Cash on Delivery was an output of the credit
/ debit card penetration in the country as
against the number of consumers willing to
shop online.
In India, the consumer had to be home for a
delivery and leaving the parcel outside
wasnt an option
They tackled the distribution barrier as a
technology problem and developed strong
in-house systems
The currently have a network comprising
19,000 pincodes including far-flung locations

Differentiated Value Added Services :

Flipkart Student offers
For the brand, the student
category makes a perfect fit as
they are presumably online
savvy and the brand gets to tap
on their consumption pattern
at the very beginning of their
purchasing cycle.

Flipkart First
Capturing the existing gap in
the market by providing same
day delivery services
Strategies used :
BUSINESS LEVEL STRATEGY
0 In 2007, Flipkart started with selling books. The first book sold at
flipkart.com was John Woods' Leaving Microsoft to Change the World
Today
0 In 2010, they added to their catalogue, media (including music, movies
and games) and mobile phones and accessories
0 In 2011, product launches included cameras, computers, pens & office
supplies, computer accessories, home and kitchen appliances, personal
care, health care, gaming consoles, audio players and televisions.
0 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, will offer DRM-free MP3
downloads.
0 In 2012, product launches includes health & beauty products, Life style
products which includes watches, belts, bags & luggage.
0 In July 2012 Flipkart announced the launch of its in-house brand
Digiflip. Digiflip is a brand of digital accessories with products like
laptop bags, laptop sleeves and camera bags among others
Strategic Evaluation
0 Flipkart's reported sales were
0 40 million in FY 20082009
0 200 million in FY 20092010
0 750 million for FY 20102011
0 5 billion (US$100 million) for 2011-2012
0 Flipkart.com, the country's first billion-dollar-valued
Internet Company, is surely in a state of perpetual
excitement.

BUSINESS LEVEL STRATEGY
Cost
Heavy discounts on books Free
shipping for purchases above Rs. 300
Consumer
Consumer

Availability of products across 14
categories Books can be ordered before
they are launched Pan India presence
Communication
Advertisements via Search Engine
Optimization Transparent Communication
Once the customer places an order, progress
can be tracked
Convenience

Ease of finding the product and related
information Purchase at the click of a button
Cash/ Card on Delivery
Brand concept map
Flipkart vs Amazon








Flipkart is a market
place model while
Amazon is an inventory
and marketplace model.
Flipkart has 1706 SKUs
in stock and 4172 offers
while Amazon has 1535
SKUs in stock and 2244
offers.

Mobile category is quite price sensitive
and fight is very intense between
flipkart and amazon.
In cameras category amazon offers
better prices than flipkart.
In Laptops category flipkart has great
advantge and they are way ahead of
amazon.
Amazon has 1.5 Crore products listed
on its website while flipkart has
millions of products across 21
categories.
The daily shipment of flipkart is around
80,000 a day on average while it is
40,000 a day for amazon.
Amazon in its initial phase is acting like
a trendsetter and flipkart is following
their concept.









Flipkart
Follows hybrid model, similar to Amazon
Ekart Logistics
Payment through PayZippy
Flipkart
Lead categories, targets every individual who shops
online
Offers everything, except groceries and
automobiles
Focus on mobile device which generates 20% of
sales
Snapdeal
Follows pure-play marketplace
Does not handle logistics on its own
Payment through Klickpay
Snapdeal
Target Non-metros, focuses on middle
income market
Focuses on getting unique unbranded
products.
Hand held devices generates 30% of sales
Current Strategy
Flipkart vs Snapdeal
Customer Strategy