A Case Study

On

ORGANIZATIONAL
GROUP 18

By : Arpit Singhal
Kumar
COMMUNICATION Sumit
Vishal Trivedi
Sourav Kumar
Govind Singh Dhakar

12MF3IM03
12MF3IM15
12MA20050
12MA20043
12MT10014

Overview
Flipkart One of the leading Indian ecommerce companies headquartered in
Bangalore, Karnataka
Founded by Sachin Bansal and Binny Bansal in
2007 with 4 lakhs funding
Raised two rounds of funding from Accel India
and Tiger Global Management
Early focus on online sales of books and later
expansion of product line
Offer multiple payment online
Path breaking services
Among the top 20 Indian website in term of
traffic
Regarding as the Amazon of India

Journey So Far
Sachin Bansal & Binny Bansal graduated from IIT-Delhi with a degree in Computer
Engineering was working for Amazon.com before quitting and launching their own
company Flipkart.com
Flipkart was launched in 2007 with the objective of making books available to
everyone who had internet access
The company sold its first book on flipkart.com-John Wood
In 2010 branched out to selling CDs, DVDs, mobile phones and accessories,
cameras, computers, computer accessories and peripherals, and in 2011, pens &
stationery, other electronic items such as home appliances, kitchen appliances,
personal care gadgets, health care products etc
Further in 2012, Flipkart added A.C, air coolers, school supplies, office supplies, art
supplies & life style products to its product portfolio
Flipkart broke even in March 2010 and claims to have had at least 100% growth
every quarter since its founding

Evolution of

LOGO

The Online
Megastore
TAGLINE-

Core Purpose
To make shopping delightful for everyone
By offering the widest choice of products, at disruptive prices,
backed by unparalleled service to customers.

Flipkarts Value For Success

Customers First
Independence of Thought
Pursuit of Excellence
Opportunity based on Merit

2020 Vision
To be a $20 billion company by the year 2020.
To change the way people shop and therefore the way people live
One in four Indian families will have experienced the delight of shopping with
Flipkart

Our brand of customer obsession coupled with our ability to do more with
less, will have become the way to go for an entire generation of
entrepreneurs. They will be inspired by our use of technology and automation
to create efficient business processes and solutions.

INTERNAL
COMMUNICATION

COMMUNICATION MODEL
They have a horizontal Communication model
They have made separate departments and decisions are taken independently on their
respective goals and objectives as shown in the organizational structure
Every Department also caters to the needs of other department

Engineering
Department

Horizontal
Communicatio
n

Marketing
Department

Structural

ORGANIZATIONAL STRUCTURE

Sachin Bansal
Binny Bansal

Karandeep
Singh
Flipkart
CFO

Ravi Vora
VP
(marketing)

Mekin
Maheshwar
i

President
(engineerin
g)

Ankit
Nagori
VP
(categories
)

Sameer Ni
gam
VP (digital
business)

Maneesh
Mittal
VP
(operations
)

Sujeet
Kumar
President
(operations
)

Decision making process

Evaluation of
Alternatives

Purchase Decision

Post- Purchase
behavior

Customer perceived
value

Faster turn around time

Feedback on Flipkart
website and other blogs

Wider range across all

categories

Cash/Card on Delivery
Easy Return Procedure
in case DOA

Word of Mouth
Affiliate

EXTERNAL
COMMUNICATION

INTER ORGANIZATIONAL COMMUNICATION

Marketing Strategies
Caters to the need of
customers

More than 600 Sellers

Strong Administrative
position
Manipulate them

New Upcoming
Enterpreneurs
Helps them in their growth

Offline Shops and

Showrooms
Amazon, Snapdeal, E-bay,
Etc.

PEST Analysis of External Communication

Government support for increasing
penetration in India, Tax benefits to
corporates, Increase in stock holding %
for foreign investors in companies (2012)
Resistance against foreign retailers
Political

Political
Social

Better comfort level and trust in online

shopping, High priority on time and
convenience , Improving usage of
broadband and high computer literacy.

Booming Indian Economy, Increasing

spending power, Sky rocketing fuel
prices, Base of internet users multiplied
by 10 times in 6 years

Economical

Technologic
Advent of mobile shopping, Increasing
al
penetration
rate of broadband and
wireless internet, Better managed ECommerce site for ease, privacy and
advancements in net banking

Customer Relationship Management

A Customer Centric Approach To Management
Flipkart can be said to be the pioneer in initiating the sceptical Indian shopper into
online retailer
The customer is informed at every step through e-mail/text when the order has
been confirmed order summary & shipment details + tracker informing
customer if order has been delayed
Customer complaints are quickly addressed and there are transparent return and
exchange policies

Customer Relationship Management

Strategic CRM
Thecompany philosophy echoes in theirtagline making better our service promise.
Thefounders believe that huge discounts alone cannot sustain a successful business,
customer satisfaction and preferences need tobe addressed to keep theflame going.
Providing good customer service enables Flipkart to enjoy high levels ofcustomer
satisfaction, generate repeat business and ensurepositive word-of-mouth
The Cloud
Cloud-based softwareand services are everywhere these days and the cloud has
both benefits when applied to CRM
Cloud-based solutions typically feature low initial entry costs and simpler set-up and
maintenance

CORPORATE STRATEGY-ACQUISITIONS
2010: WeRead, a social book discovery tool
2011: Mime360, a digital content platform company
2011: Chakpak.com is a Bollywood news site that offers updates, news,
photos and videos
2012: Letsbuy.com is India's second largest e-retailer in electronics for an
estimated US$ 25 million
2014 : Myntra.com is Indias largest fashion brands e-retailer for an
estimated
Rs. 2000 Crore

PRODUCTS &
SERVICES

Electronics & Clothing

Books & Media

Sports & Fitness

COMPETITORS

COMPETITORS (Books Market)

MARKETING
STRATEGIES

Flipkart has done extensive work

in creating their USP in the
ecommerce segment. Selling of
books over internet in India was
the 1st USP of Flipkart as this
medium wasnt available at the
launch of Flipkart. It is known for
opening up the Indian ecommerce market and in a big
way.

Flipkart has adopted almost all and even

more propositions, created compelling
reasons for people to buy items from
them. Be it:
Lowest price seller
Only one selling
Addictive engaging by its user interface
Delivering goods at lightning speed
And many more
But placing the above marketing
strategies has its own challenges like:
How would people visitFlipkart.com?
How would visitor be converted to
consumer?
How to effectively communicate with
customers and prospects?

They have worked upon all the possible solutions viz:

1. SEO (Search engine optimization)
2. Pay-per-click advertising
3. Offline display advertising
4. Affiliate marketing programs
5. Social media campaigns
6. Public relations
7. Email campaigns
8. Contests
9. Giveaways

Few of the practical approaches that Flipkart has taken for marketing and making its
brand position as a part of Marketing strategy are

1. Free Home Delivery

2. Cash on Delivery
3. Fast, safe and free delivery
4. Discount shopping
5. User friendly and attractive interface
6. Authentic and more variety productsReplace policy in case of defects
7. Variety of payment options
8. A robust customer service in terms of information and product available
9. Emotional connect
10.Social media presence
11.24*7 customer service
12.Consignment model
13.Robust logistics
14.Well oiled warehousing and delivery system

Ad Campaigns
It uses cute kids playing the roles of an adult with real adult voices
The idea of using kids stemmed from the fact that no one trusts you like
children
It stresses on highlighting vital benefits of shopping on Flipkart.com viz, cash
on delivery, 30 day replacement policy, and guarantee of original products
The ads also display the entire gamut of new product categories such as
cameras, mobile phones, and tablets that are now available on the site

PRINT ADs

SHOWS
ORGANIZE
D BY
FLIPKART

MOBILE APPS

Television Commercials

The message is very clear to make people

more comfortable with Flipkart, to generate
a great customer relationship and loyalty on
the basis of great product prices and
excellent customer service. All in all to
create a great customer experience

ANALYSIS

PRIMARY ANALYSIS
30
25
20
15
10
5
0

20

22

25

26

No. of events of online purchases in the last 12 months

1 2 3
4 5 >=6

8
15%
37%

15%

0
6%
Sales

12%
16%

PRIMARY ANALYSIS
Competition

USP of Flipkart
Cash/Card on
Delivery

9%

Easy to
Order

29%
62%

Easy to
replace

80
60
40
20
0

77

10

SWOT Analysis
STRENGTHS

ONLINE BRAND FOR GLOBAL ONLINE AUCTION

SUPPLY CHAIN MANAGEMENT
ADVERTISEMENT AND PROMOTION
STRATEGIC AQUISITION
HUGE REACH
FORMAT OF WEBSITE

OPPORTUNITIES

GROWTH IN E-TAIL
GROWTH IN E-BOOKS CULTURE
MOBILES APPS
BROADBAND PENETRATION
TO CAPTURE INDIAS FASTEST GROWING DIGITAL
MARKET IN THE WORLD

WEAKNESSES

DELIVERY
INTERNET PENETRATION
PAYMENT GATEWAYS
HIGHER COST
SYSTEM BREAKDOWN EFFECTS TRADING ACTIVITIES

THREATS
BIG PLAYERS SUCH AS AMAZON, SNAPDEAL
COMPETITION FROM LOCAL SHOPKEEPERS AND
VENDORS
FDI INVESTMENT POLICIES

CRISIS FACED

BIG BILLION DAY

GOALS:
Date:6-10-2014
Target for Sale US$ 100 million
Time set for 100 million sale.
Promised discounts on the
Big Billion Day -Flat 90%.

BIG BILLION DAY

ACHIEVEMENTS:
Achieved Sale in 10 hours - US$! 100M
No. of hits in 10 hours -1 Billion
No. of orders in first 6 hours- 300,000
Lowest Price of an item - 1 Rupee

BIG BILLION DAY

PROBLEMS FACED:
Price change of several products.
Out-of stock issue for many products
within a minute or even seconds.
Cancellations of orders as it was overbooked
Website issue

STRATEGIC ATTACK OF COMPETITORS

BIG BILLION DAY

Apology by the Co-founders (CRISIS COMMUNICATION)
EverythingthatwehaveachievedatFlipkartispurelyonthebasisofour
customerstrustandfaith.Thisiswhywecometoworkeachdayand
continuetoremainextremelypassionateaboutbuildingthebestpossible
customerexperienceforIndianconsumers.Wefailedtoliveuptothis
promiseyesterdayandwouldliketoapologiseonceagaintoeverysingle
customerforourfailure.

SUGGESTIONS FROM OUR SIDE

Flipkart should have tried a trial run before the actual launch of the Big
Billion Day
They should have done a market analysis and plan their event strategically
Flipkart should focus on more servers for the customers catering to the
heavily increasing customers hits on their website
Flipkart should have put a backup plan, informing customers the
unavailability of products as soon as they went OUT-OF-STOCK
They should have addressed their customers on every social networking
sites

www.flipkart.com
www.google.co.in
www.Wikipedia.com
www.socialsamosa.com
www.slideshare.net
www.theviewspaper.net

REFERENCES: