flipkart

FLIPKART

GROUP -4VIJAYETA BARMAN

RAVI SHANKARSAKET SRIVASTAVA

ANURAG PURI

Overview0 Flipkart is an e-commerce company founded in 2007, by Sachin and

Binny Bansal0 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 revenues0 2015 - US $ 1 billion India, Aggressive markets, Stronger

Supply chains0 2020 – Largest Retailer in India, Enter Global Markets

0Vision - To become Amazon of India

0Mission – 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 wasn’t 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 offersFor 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 FirstCapturing the existing gap in the market by providing same day delivery services

Strategies used :

BUSINESS LEVEL STRATEGY0 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

0Flipkart's reported sales were040 million in FY 2008–20090200 million in FY 2009–20100750 million for FY 2010–201105 billion (US$100 million) for 2011-20120Flipkart.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 CommunicationOnce 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