PROJECT REPORT

COMPREHENSIVE ANALYSIS OF E- MARKETING STRATEGY OF FLIPKART

Executive Post Graduate Diploma in Industrial Marketing

SUBMITTED BY Group-1

1. Kishlay Dubey (Roll no 27) 2. Nandish Mohindroo (Roll no 35 ) 3. Sharad Kumar (Roll no 58)

INDIAN INSTITUTE OF FOREIGH TRADE NEW DELHI

TABLE OF CONTENTS
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1.0 INTRODUCTION.............................................................................................................03 2.0 INITIAL CHALLENGES FACED BY FLIPKART........................................................................04 3.0 STEPS TAKEN BY FLIPKART.............................................................................................05 4.0 GROWTH STORY OF FLIPKART .......................................................................................05 5.0 FLIPKART STRENGTHS ....................................................................................................06 6.0 SEGMENTATION VARIABLES...........................................................................................07 7.0 MARKETING MIX ...........................................................................................................08 8.0 DECISION MAKING PROCESS...........................................................................................08 9.0 FLIPKART CHANNEL STRATEGY .......................................................................................09 10. 0 REFERENCES.................................................................................................................10

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1.0 INTRODUCTION Flipkart is one of the leading Indian e-commerce companies headquartered in Bangalore, Karnataka. It was founded by Sachin Bansal and Binny Bansal in 2007 with 4 lakhs funding.It Raised two rounds of funding from Accel India and Tiger global management. Its early focus on online sales of books and later expanded into various product lines. It offers multiple payment methods and path breaking services . It is among the top 20 Indian Web sites in terms of traffic and is regarded as the Amazon of India Flipkart did the following acquisitions : 1. 2010: WeRead, a social book discovery tool 2. 2011: Mime360, a digital content platform company 3. 2011: Chakpak.com is a Bollywood news site that offers updates, news, photos and videos 4. 2012: Letsbuy.com is India's second largest e-retailer in electronics for an estimated US$ 25 million

2.0 INITIAL CHALLENGES FACED BY FLIPKART : Bad Experience of Indians with online shopping in the past in terms of 1. poor experience with the product 2. late shipping Page 3 of 10

3. poor customer service 4. Wasen't an easy segment to break into, people were very particular in paying money for something which they had not seen and received. 5. Skeptical about security of online transactions

CONCERNS OF INDIANS REGARDING ONLINE TRANSACTION :

Flipkart overcome the concern's of people and build the trust by doing/ offering the following : 1. COD( Cash on Delivery ) 2. 24*7 Customer Service 3. Never Promise something that you dont have it built its own inventory 4. Delivery its own courier company 5. No-Questions-Return policy and 30 days replacement policy - A recent study has found that 89% of online buyers say return policies influence their decision to shop with an e-tailer

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3.0 STEPS TAKEN BY FLIPKART The timing also helped it as the following things were also happening simultaneously : 1. Indian railways www.irctc.co.in played a big role to its success. 2. Internet boom in India and growing internet base/users in India. 3. Not much competitions in the market. 4.0 GROWTH STORY OF FLIPKART :

600 500 400 300 200

100
0 2008-09 2009-10
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2010-11

2011-12

Flipkart Growth Story has following salient points : 1. Started with books and went on to add new products 2. 2 employees, 2 suppliers to 4800 employees and more than 600 suppliers 3. Have their own internal courier services called flipkart logistics

Books were the first choice of FLIPKART because of the following reasons : 1. Lower transaction size 2. Better Shelf size 3. Shipping and handling of books is easy 4. To emerge as a pioneer in book retailing rather than venturing comparison shopping engine

FLIPKART 'S COMPETITORS IN BOOK MARKET WERE :

1. Uread.com 2. Simplybooks.in 3. Bookadda.com 4. Landmarkonthenet.com 5. Infibeam.com

5.0 FLIPKART STRENGTHS 1. Price reductions 2. 24 hour a day shopping 3. Complete freedom and time to choose 4. Satisfied customers purchase frequently and spending will increase

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6.0 SEGMENTATION VARIABLES

a. b. c. d. e. f. g. h. i. j. k.

Demographic Segmentation Age Kids Baby care, Toys Teen Playstation, Xbox, movies, music Gender Male Computers, Mobiles and accessories, Watches Women Beauty and Health care ,Home and Kitchen Occupation Student Books, Music, Movies, Stationaries Traveler Camera, Luggage, Books Working Mobiles, Computers, Watches

7.0 MARKETING MIX (CONSUMER ORIENTED MODEL) 1. COST a. Heavy discounts on books b. Free shipping for purchases above Rs. 500

2. CONSUMER a. Availability of products across 14 categories b. Books can be ordered before they are launched c. Pan India presence

3. COMMUNICATION a. Advertisements via Search Engine Optimization b. Transparent Communication

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c. Once the customer places an order, progress can be tracked

4. CONVENIENCE a. Ease of finding the product and related information b. Purchase at the click of a button c. Cash/ Card on Delivery

8.0 DECISION MAKING PROCESS : 1. Evaluation Of Alternatives : a. Customer perceived value b. Wider range across all categories 2. Purchase Decision : a. Faster turn around time b. Cash/Card on Delivery c. Easy Return Procedure in case DOA 3. Post Purchase behaviour : a. Feedback on Flipkart website and other blogs b. Word of Mouth c. Affiliate

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9.0 FLIPKART CHANNEL STRATEGY : Owned Channels:

1. Owned a Page on Twitter on which it did the following :

a. Announcement of new product offers, discounts etc. b. Conversations with customers c. Exclusive channel called Flipkart support with prompt response time d. Tweet about their technology through Tech at Flipkart engaging followers about the latest in technology and services

2. Owned a Page on Facebook on which it did the following : a. Q&A updates b. Product updates c. Exclusive Customer Tab for support d. Cover Photo in FB reflects any event or celebration like a festival, onset of a season etc

3. Blogs a. Official blog gives updates about the company b. Information about industry events, changes in technology etc c. Exclusive technology blog for all the tech followers 4. Google Plus a. Regular interaction with its 14,000 followers

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b. Product updates, Offers, and deals PAID :

1. FLIPKART AFFILIATE PROGRAM : Banner adds placed on sites like facebook, google to redirect users to the company site (Promotes brand recognition and recall)

EARNED : Flipkart does not have their own youtube channel. However, all advertising campaigns on youtube are very popular e.g. Flipkart: No Kidding No Worries campaign received 66,178 views

10. 0 REFERENCES:

1. www.flipkart.com 2. www.howsociable.com 3. www.klout.com

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