INTERNET MARKETING AND E-TAILING

GROUP PROJECT PART-1

Submitted to: Prof. Nimit Gupta

Submitted by:
Abhishek Pramanik (PGFA1103) Aamukta (PGFA1101) Jyoti Anand (PGFA1121) Reema Srivastav (PGFB1137) Sameer Vivian Joseph (PGFB1139)

........................................................................................................................................ 13 2 .................................................................. 7 Marketing Strategies:.......................................................................................... 7 Poters 5 forces ................................................4                Funding ................ 5 Business Results .............................................................. 9 7 P’s of marketing ................................................................................................. 7 Customers ............................................................................................................................................................................................................................................................................................................................................................................................................. 6 USP ................................................ 8 SWOT : ...................................................................................................................................................................................................................................................................................................................................................................... 7 Positioning: .................................................................................................................................................................... 6 3 pillars ................................................................................................................................................................................................................................................... 9 Market Share ............................................................................................................................................................................................. 4 Acquisitions .................................................................................................................................Table of contents Introduction ..................................................... 7 STP................................................................................................................ 6 Locations ......................................... 6 COD Target ........................................................................................................... 6 Cash on delivery ...........................3 About ............... 11 Competitors Analysis ........................................................................................................

Flipkart has catapulted to one of India’s most popular e-commerce sites and undoubtedly as the most popular online destination for books within a short span of three years. It’s being touted as India’s answer to Amazon. 3 .Introduction Flipkart is an Indian e-commerce company headquartered in Bangalore. Karnataka. Founded by Sachin Bansal and Binny Bansal (not related to each other) in Oct 2007.

eyeing a $50 million run rate With close to 11. The store started with selling books and in 2010 branched out to selling CDs. DVDs. mobile phones & accessories. Flipkart has now made it possible for anyone across the country with internet access to shop online. kitchen appliances.About Flipkart was established in 2007 by Sachin Bansal and Binny Bansal. both alumni of the Indian Institute of Technology Delhi.com . computer accessories and peripherals. Interesting Statistics about the company      As of today. Flipkart is among the top 30 Indian web sites and has been credited with being India's largest online bookseller with over 11 million titles on offer. Today. Flipkart broke even in March 2010 and claims to have had at least 100% growth every quarter since its founding. Flipkart employs over 4500 people It experiences 2 million unit sales and 4 million unique visitors per month with sales growing at 25% per month. 30 Day replacement policy and EMI options. as per Alexa traffic rankings. computers. pens & office supplies. distribution centers. Flipkart is the largest online book retailer in India with 80 per cent market share It has a registered user base of two million customers and ships out as many as 30. 4 .5 crore Flipkart is rapidly expanding its network of warehouses. Funding The company was initially self-funded. They later raised two rounds of funding from Accel Partners and Tiger Global Management to the tune of $31 million. clocking daily sales of Rs 2. with the first round being around $10 million and the second round being $20 million. They worked for Amazon.000 items a day.5 million titles.000 ($9056) to setup the business. procurement operations and 24/7 customer support teams. The Flipkart experience is characterized by the intuitive user .John Woods' Leaving Microsoft to Change the World. cameras. Initially they used word of mouth marketing to popularize their company.com before quitting and finding their own company. the company sold its first book on flipkart. other electronic items such as home appliances. health care products etc. The company even has its own delivery network in 27 cities and is set to expand this even further by next year What sets it apart? With path-breaking features like Cash/Card on Delivery. with co-founders Sachin and Binny Bansal spending Rs 400. personal care gadgets. A few months later.

com is India’s second largest E-retailer in electronics. photos and videos.000 filmographies.000 ratings. The stated goal was to give Flipkart a social recommendation platform for buyers to make informed decisions based on recommendations from people within their social network. news. a digital content platform company. 2011 Mime360.000 movies and close to 50. Flipkart has categorically said that it will not be involved with the original site and will not use the brand name. Flipkart acquired the rights to Chakpak’s digital catalogue which includes 40. 10. Flipkart bought the company for an estimated US$ 25 million. 2012 Letbuy. 2011 Chakpak. a social book discovery tool.Acquisitions 2010 WeRead. 5 .com is a Bollywood news site that offers updates.

warehouses and customer service centres across India.         Bangalore. Uttar Pradesh Pune. Maharashtra Kochi.Business Results Flipkart's reported sales were 4 Crore in FY 2008-2009. Locations The company's headquarters is located in Bangalore's Koramangala neighbourhood. West Bengal Mumbai. often near airports. 20 Crore in FY 2009-2010 and 75 Crore for FY 2010-2011. On average. Karnataka Chennai. Kerala Cash on delivery    The COD should be more than 50K EMI – min 4K period is 3 or 6 months If in 72 hours the rate decreases then the extra money will be paid back COD Target   Students / people with no debit and credit cards Geographically small town people 3 pillars    Website to get queries and orders Suppliers – book distributor Logistics – courier service tie ups 6 . Maharashtra Noida. Flipkart sells nearly 20 products per minute and is aiming at generating a revenue of 5000 Crore (US$ 1 billion) by 2015. Tamil Nadu Delhi Kolkata. Flipkart has offices. Warehouses are located in the following cities. Flipkart is set to cross the 500 Crore (US$ 100 million) mark as Internet usage in the country increases and people get accustomed to making purchases online. In FY 2011-2012.

replacement of faulty products) No kidding no worries Online megastore One stop solution Marketing Strategies:    Word of mouth (initial marketing even now they want to satisfy customer so they come back for more) Good use of SEO “We DONOT sell old books or used books. All the books listed at Flipkart.com are new books. The books listed at Flipkart. STP Segmentation:  Target:   Flipkart concentrates on more Psychographic. free shipping. Good use of SEM Ads at proper places and use pay per click to pay for ads    7 .USP   Usability Support Model is partnership with local book vendors Customers   Price sensitive Experimental shoppers Trust is the most need full thus their first product was books cheap and easy to delivery. which helps in deciding where to display ads online They target online shoppers and people who don’t online shop (thus TVC to encourage them) All internet users and shoppers Positioning:     Customer delight (low price.com are NOT available for free download in ebook or PDF format” Thus when you search free ebooks or pdf books old or used books flipkart will be displayed.

with mobile internet penetration there is chances of capturing rural market (60% revenue by COD)  EMI – two types of installments (3 / 6 months) there by targeting price sensitive customers  Wallet – customer can recharge money online and purchase then and when needed those entering details always is rectified. target heavy purchase and luxury customer Customer conversion rate is so high more than 70% Personalization of the user page Product recommendation with your previous purchases Poters 5 forces Bargain power of suppliers (low)   The readers are reducing thus suppliers are in weak position Inventory turnover is lower. thus more inventory again flipkart is at the upper hand Bargain of buyers (high)      Not many buyers Best deals online Cash on delivery One stop solution Faster delivery with free shipping cost Threat of New entries (high)   Market potential for this industry is high Low entry barriers.. but sustaining is tough Threat of substitutes (Low)   Diminishing brick and mortar model Increasing customer ease and customer satisfaction Industry rivals (Medium)   Many small players (snapdeal.     Very easy web interface Payment convenience  Cash/card on delivery – there by encouraging students and people with no credit/debit card to purchase in flipkart. naaptol .) Entry of international players like Amazon into India 8 .

SWOT : Strength     Top Indian ecommerce portal Diversified into electronic goods Two VC investment to build its own delivery system thereby reduce delivery time Cash on delivery which is making 60% of its income Weakness    Coordination with suppliers and courier was tough Price biasing to maintain the margins ( eg. 9 . bank charges 7 P’s of marketing Product :       Appearance – the ease in the website interface even for the first visitor Quality – checking of the product before packing (visual test) Packing – different packing(eg. thus even mid night is to delivered within 24 hours Opportunities    Already working towards customer delight will obtain customer loyalty gradually Supplier database interface with flipkart website for JIT procurement Mobile internet usage is increasing there by chances of increase in sales through mobile shopping. Bubble pack for electronic items) Brands – all brands integrated in one website Warranty – one year warranty from the manufacturer’s side Service & support – guarantee delivery of undamaged product or else replacement in 30 days. Low price for the best seller book and more price for the least wanted) 24/7 customer care. Threats:    Small players and emerging competitor Major players like Amazon In capabilities to manage certain costs like delivery cost.

Managers. Warranty people. 10 . linkedin Hiring people with high sense of ownership. the online myth is gradually eradicated Competitors see Flipkart as the market leader. on time delivery. Accounting. with the acquisition of letsbuy.Price:      Place:     Tie ups with local vendors and courier firms (thereby avoiding octroi charges) Company owned warehouse in major cities near airport Trying to achieve minimum returns If the courier can’t delivery to the location the product is shipped through government post Special discount As shipping is within India the shipping cost reduces Seasonal discounts Free shipping For expensive products transit cost is borne by company Promotion:      SEO and SEM Word of mouth marketing TVC lately to encourage non-online shoppers More online marketing like FB.com General public want to try it once for its creative TVC is making people curious to experience flipkart. all work for the customer ease. Delivery drivers. replacement. Twitter. generalist with more attitude to learn Packaging:    Different packaging for different product to ensure safe delivery Flipkart the name goes with the online cart Design and packaging is common so customers can relate it to the company Positioning:    Customers feel Flipkart is cheap. People:  Service people. Complaints department. Sales Clerks. customer satisfaction and customer delight. Technical people.

com. The top retail sites shown above in India have each seen a growth of over 100% in the last 12 months. ImDB and Junglee. Jabong and Myntra have been competing closely in the lifestlye category with over 5. The growth has come across all retail categories and most of them show promising transactions and conversion rates along with growth in visitors. as research of retail online grows continue to dominate. Flipkart leads the way among the online retailers in India with 7. an overall growth of 43% annually.5 million unique visitors a month.4% online users i n I n d i a .growing at 431% annually. Most of the 11 .4 million unique visitors a month.com.9 million uniques. Snapdeal has been close second with 6. Amazon is the most visited retail site with most of the traffic slipt among Amazon. HomeShop18 has over 4 million uniques a month.Market Share Retail category penetration has increased to 60% reach and has grown to 37. Apparel has been the fastestgrowing subcategory in retail and reaches 13.3 million uniques each. Comparison shopping.

The average transaction sizes among some of the top retailers are as below: 12 . Travel category has shown this trend with high overlap among OTAs and this trend is expected among online retailers as well. apparel. Consumer goods. shoes and other lifestyle categories have also shown tremendous growth. Vertical e-Commerce categories including baby products. Consumer goods being a popular category among horizontal retailers is still way below global averages. sports/outdoor products and retail food sub categories have also shown early growth signs. Wider assortment and product availability have helped these retailers in growing business online.comparison shopping sites show a growth over 75% Y-o-Y and will continue to grow as more categories of retail come online. More retailers online have heavily depended on online marketing to scale. Flowers/gifts/greetings is the only subcategory which has shown de-growth of over 33% in the last 12 months. The online marketing spends across all content categories and effective marketing campaigns reaching out the right target audience have increased visitation and hence conversion among retailers.

Flipkart grew rapidly in 2011 traffic peaked from Oct 2011 till April 2012 [The Panda raid]. Myntra had some traffic back in 2010 and went flat for next 1.Jabong got all the traffic that flipkart took 6 months to build from TV in the last 2 months. Infibeam and Myntra aren’t growing enough compared to their competitors. If you looked at India only growth – Flipkart probably got significant India traffic only with TV ads & not before. The most gaping fact of the entire graph . Flipkart did its rocketing in Oct 2012 when they started advertising on TV and then on a good upward projectile.5 years.Competitors Analysis Ecommerce India and Google Trends (Graph from Google Trends: Interesting tit-bit – try region as India & watch for the tricks from Flipkart & Infibeam in 2009) Now watch carefully for the patterns. 13 .       Infibeam is flat.

What are the other Internet sites who advertise on TV? All the listing sites – so let us see where they stand – olx. Myntra hasn’t been able to get even a small bump in its traffic all these days with Crores poured into TV campaign.The TV ad is great. Sadly enough.pk and not even espncricinfo. don’t we? And that has probably got more likes and mental note than the creative & cheerful ads of flipkart (they were cute but still not there yet for India). Indians love drama.com with all the IPL heat! 14 . Either way. There are many others who have done that in India – fashionandyou. today. sulekha. As someone rightly commented on pluggd. Jabong leads in the market share of visitors in retail ecommerce. So was it the awesome TV ad? Of course not. quickr. Classified vs.3% So all the listing sites are quite ahead of Flipkart & Jabong in capturing visitors.in post – its probably the effect of aggressive email marketing (call it spam).. crazeal etc.in and even Flipkart. Want to know who the big guy is – it isn’t any of the travel portals or songs.com If you check the estimates from Google Ad Planner (which are actually very close to real numbers from what I know) – quickr has 9% penetration in India while Flipkart has 4.com has almost double the traffic as OLX. You will be in for a surprise. Ecommerce Traffic in India   Quikr.

It is a whopping 12% of India traffic as reported by Google. Any marketers in the readers would now connect why Babylon.com is the 2nd or 3rd popular source in their Organic Traffic in analytics Source: 15 . of course that’s shady.Babylon: The Real Slim Shady of India Internet? Babylon.com – the translation software! Now.

Sign up to vote on this title
UsefulNot useful