13225, 13227, 13229, 13232, 13233, 13244

Introduction

Established in 2007 & headquartered in Bangalore, Karnataka.

9000+ employeesThe company is registered in Singapore.Among top 10 most visited websites in India.WS retail, Digiflip , E-kart are also organizations

controlled by Flipkart.Sales of over 1 bn INR in 2013, and projected

sales of 50 bn INR by 2015.

Introduction

Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of the [Indian Institute of Technology Delhi].

They had been working for Amazon.com previously. The business was formally incorporated as a company in

October 2008 as Flipkart Online Services Pvt. Ltd. During its initial years, Flipkart focused only on books, and

soon as it expanded, it started offering other products. The first product sold by them was the book Leaving

Microsoft To Change The World, bought by VVK Chandra from Andhra Pradesh.

Flipkart’s sales chart

2009 2010 2011 2012 2013 2014 2015

40 200 750 2000 500010000

50000

Sales in million Rs

Website screenshot

Flipkart’s Approach

Awards

Sachin Bansal, got Entrepreneur of the Year Award 2012-2013 from Economic Times.

Flipkart.com was awarded Young Turk of the Year at CNBC TV 18's 'India Business Leader Awards 2012.

Flipkart.com- got nominated for IndiaMART Leaders of Tomorrow Awards 2011.

Flipkart.com, secured second position in the List of Cheapest Mobile Store 2013, compiled by Indian e-commerce observer Zoutons.com.

Funding

4 Lac INR by its founders. Accel India $1 mn in 2009. Tiger Global $10 mn in 2010 & $20 mn in 2011 MIH(part of Naspers Group) & ICONIQ Capital $150 mn 2012 The company raised around $200 mn in 2013 from its existing

investors. The company claims to have raised $1 bn in 2014 from Tiger

Global Management LLC, Accel Partners, and Morgan Stanley Investment Management and a new investor Singapore sovereign-wealth fund GIC.

Acquisitions

2010 WeRead – a social book discovery tool

2011 Mime360 & Chakpak.com – Both the

websites are digital content platforms.

2012 Letsbuy – Indian e-retailer in electronics.

2014 Myntra – Indian e-retailer in Apparels.

Challenges

To build trust in the customers.

Handling customer complaints.

To build effective Payment system.

Seasonal fluctuations in demand.

Competition from established players.

Efficient logistics.

Porter five forces model

Competition(High)

Amazon, Ebay, Snapdeal

Threat of new entrants

(Moderate)

Threat of substitutes

(Low)

Bargaining power of

buyers (High)

Bargaining power

suppliers (Low)

Large supplier base and increased popularity of Flipkart

Lot of online and offline retailers, hence customer has lots of options.

Only resource heavy or tech intensive organizations can compete

Substitutes cannot match the price, delivery speed & other delights.

SWOT AnalysisSTRENGTHS 1. Self owned logistics i.e E-kart.2. Strong brand value.3. Self owned online payment

gateway i.e Payzippy.4. Exclusive tie-ups.5. Customer service.

WEAKNESSES1. Investor driven organization.2. Capital & technology intensive.3. Less reach compared to

physical stores.4. No global reach.5. Shipping cost for small value

order

OPPORTUNITIES1. Global markets.2. Growing demand for e-tailers.3. Increasing access to internet.4. Rapid adoption of mobile

platforms.

THREATS1. Economic downturns.2. Competition from giants.3. Price wars.4. Insecure online transactions

due increased cases of hacking.

Why Flipkart?

Easy to search for products.

Convenient payment options.

Consumer satisfaction guarantee.

Quick door step delivery.

Low price as compared to offline stores.

Competition Analysis

Flpikart’s success mantra

Great shopping experience.

Easy to use website.

Excellent customer service.

Secure and hassle free payment system.

Strong brand value & brand recall.

Flipkart Mobile App

The mobile app uses a separate server in order to manage the web traffic.

Flipkart First

Delivery options

Flipkart EMI payment option

Minimum order amount should be Rs 4000. Cart should contain items from a single seller. No processing fees. Tie-ups with AMEX, CITI, HDFC, ICICI & SBI banks. Below table shows EMI plans for a Rs 20,000 purchase on

Flipkart.

Tenure (months) EMI Total effective amount

3 Rs 6,800.44 Rs 20,401.33

6 Rs 3,450.97 Rs 20,705.80

9 Rs 2,344.32 Rs 21,098.89

12 Rs 1,786.35 Rs 21,436.15

E-kart

E-kart

Return & Exchange policies. Friendly return policy

Flipkart replacement guarantee.• If you have received a product in a damaged or defective

condition or it is not as described, you can return it to get a replacement within 30 days of delivery from seller WS Retail, or within 10 days of delivery from other Sellers.

Flipkart buyer protection• seeks to help Buyers who have an issue with a product as

the Seller is unable to provide resolution and the Buyer is unconvinced

After sales services

1. 30-DAY Money back guaranteeUnsatisfied Calls/Connects Product Customer with flipkart returned Replacement customer service by logistics or money is partners returned in the account2. E-WALLET Feature ( flipkart adds new dimensions to its operating cycle)Loyal Deposit Use it for furtherCustomer more money purchases

3. Reporting & Analytics On the basis of your past Schemes/ Discount/ Offers/ Behavioral purchase Recommendations are generated4. Reviews

First to review Certified Buyer

Customer behavior modeling

Browse history.

Compare history.

Purchase history.

Wish list items.

Product ratings.

SegmentationPeople who have internet access.People who live at accessible locations.

TargetingPeople who do online shopping.People who have not tried online shopping.People who want convenient shopping experience.

PositioningNo kidding, no worries.Online megastore.One stop solution.We sell only genuine and new items.

Marketing Strategy

SEO(Search Engine Optimization)

SEO & Google Click Ads

Social Media Marketing

Print Ads

Order Lifecycle

Confirm payment & order

Provide convenient payment options

Provide details about the product/Product comparisons

Provide search tools

Attract users to the website

Order Lifecycle

Manage returns/replacements if needed

Generate tracking ID & communicate to customer

Pack & Ship the item

Check the item to be as per description

Get the item from the supplier

What went right for Flipkart

Technology advancement and its adoption by people.

Flipkart started with books i.e Low investment and fast turn around time.

Well thought website. Efficient distribution network. Tie-ups with lot of suppliers & known

brands .

Future road map

Increase the customer base.

Sales projection of Rs 50 bn by 2015.

Increase no of warehouses and warhousing

capacity.

Expand product portfolio except grocery &

automobile.