Professional Documents
Culture Documents
ON
BY
G.THULASI
(155014024)
MR.SANDEEPM.B.A
Lecturer in Management Studies
AFFILIATED TO RAYALASEEMAUNIVERSITY
KURNOOL
2015-2018
1
A STUDY
ON
A COMPARITIVE STUDY BETWEEN AMAZON AND
FLIPKART
Submitted in partial fulfillment of the
BY
G.THULASI
(155014024)
MR.SANDEEP M.B.A
Lecturer in Management Studies
KURNOOL
2015-2018
2
Vasavi Mahila Kalasala
Kurnool
Department of Management studies
CERTIFICATE
3
PROJECT GUIDE CERTIFICATE
Ms. G.Thulasi, pursuing BBA of final year from Vasavi Mahila Kalasala, Kurnool
in partial fulfillment for the award of the degree has been done her project
under my guidance has furnished the details true to the possible extent of my
knowledge.
Place:
Date:
Sandeep
Lecturer in Department
Of Management Studies
4
DECLARATION
Date:
5
ACKNOWLEDGEMENT
I, the researcher would like to express my thanks to all those who helped
Principal Smt. Dr. N. Parvathi Madam and the college management for
I also thank Mr. Sandeep Sir, Vasavi Mahila Kalasala, Kurnool for his constant
, B.P. Aikya Mam and K.Vinod Kumar Sir who showed infinite interest and
helped me at all times with valuable suggestions and kind co-operation without
G.THULASI
6
Contents
1. Introduction 8
2. Industry Profile 11
3. Company Profile 17
5. Research methodology
6. concepts 34
7.Data analysis
8. Findings 49
9.Conclusion 53
10.annexure 54
Questionnaire
Bibliography
7
CHAPTER-1
INTRODUCTION
8
INTRODUCTION:
E-TAILNG:
E-Retailing stores sell online promotion only for goods that can be sold easily online, e.g.,
Amazon did for Books & CDs, etc. The online retailing require lots of displays and
specification of products to make the viewers have a personal feel of the product and its
quality as he gets while physically present in a shop.
E-Retailing refers to retailing over the internet. Thus an e-Retailing is a B2C (Business to
customer) business model that executes a transaction between businessman and the final
consumer. E-Retailers can be pure play businesses like amazon.com or businesses that
have evolved from a legacy business such as tesco.com. The e-retailing is a subset of e-
commerce. Thus, e-commerce is the master domain defining the e-retailing operation.
9
Essentials of E-Retailing
Electronic retailing or e-tailing, as it is generally being called now, is the direct sale of
products, information and service through virtual stores on the web, usually designed
around an electronic catalogue format and auction sites. Penetration of computers and
proliferation of the Internet has given rise to many new forms of businesses, such as
business process outsourcing, call centre based customer relationship management,
medical transcription, remotely managed educational and medical services and of course,
electronic retailing.
10
E-Catalog It is a database of products with prices and available stock.
Shopping Cart The customers select their goodies and fill shopping cart. Finally, as in a
real store, at the time of checkout, the system calculates the price to be paid for the
products.A payment gateway Customer makes payments through his/her credit card or e-
cash. The payment mechanism must be fully secure.
The electronic retail business requires support services, as a prerequisite for successful
operations. These services are required to support the business, online or offline,
throughout the complete transaction-processing phases. The following are the essential
support services:
Communication backbone
Payment mechanism
Order fulfillment
Logistics
DEFINITION
“The Electronic Retailing also called as e-tailing or internet retailing, is the process of
selling the goods and services through electronic media, particularly the internet. Simply,
the sale of retail goods and services online is called as electronic retailing.”
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CHAPTER-2
INDUSTRY PROFILE
12
E-COMMERCE IN INDIA:
Ever since internet has been introduced to the world, it has made a huge impact
on people; business is one of such example where internet has made the
difference. In July 1995 Amazon.com startedselling books online and the response
they received was unexpected as in short time span books sold online in all 50
states of USA and 45 countries. Amazon presently offers music, movies, toys;
electronics and home equipment, there are seven different international
websites of Amazon with distributed customer service centers in seven
countries and over 17,000 people workin Amazon worldwide. Today there are over
100populare- commerce websites are providing online services worldwide.An e-
commerce opens the global market to the customer, it helps the customer by
providing huge options while buying a product or a service,the online searching
and comparing facilities enables customer to select right product or service,
another major advantage of e-commerce is thatitis24x7availabletothe customer the
customer can shop almost anything within his/hers comfort zone just by sitting
at home, office, during travel or almost from any place at anytime.E-commerce is
trading of services and products with the help ofinternet. E-commerce introduced in
the end of 70s and became popular during the90s in western countries like USAand
UK. E-commerce introduced new possibilities in trading and attracted attention
ofmany traders.
E-commerce offers products and services through websites, a customer simply
has to visit an e- commerce website and browse various offering through browser
catalog, a customer can select multiple offerings and can add them to the
shopping cart, once the shopping is done the customer can checkout and
proceed to payment section where various online payment options are
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available like internet banking, credit card, debit card etc. Once payment is done
the customer is notified about the order and order is shipped on the postal
address provided by thecustomer.
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CHAPTER-3
COMPANY PROFILE
15
FLIPKART
Flip kart has launched its own product range under the name “dig flip”, Flip kart
also recently launched its own range of personal healthcare and home appliances
under the brand “citron Legally, Flip kart is not an Indian company since it is
registered in Singapore and majority of its shareholders are foreigners. Because
foreign companies are not allowed to do multi-brand e-retailing in India, Flip kart
sells goods in India through a company called was retail. Flip kart is presently one
of the largest online retailers in India, present across more than 14 product
categories & with a reach in around 150 cities and delivering 5 million shipments
permonth.
EXCLUSIVE PRODUCTS:
Motorola mobility, previously owned by Google but then sold to Lenovo, in an
exclusive tie up with Flipkart launched its budget Smartphone Moto g in India on 5
February 2014 more than 20,000 units were sold within hours of launch on Flip
kart after this Flipkart was looking for a long term tie up with motorola mobility.
They also launched their android smartphone, the motox, on 19 march 2014.
Flipkart later sold the moto e, cheaper than moto g, from 13 may 2014. The sale of
high-end smartphone xiaomi mi3 produced by xiaomi tech was launched in India
on an exclusive tie-up with Flipkart.
ACHIEVEMENTS IN E-COMMERCE:
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In september 2015, sachinbansal and binnybansal entered forbes India rich list
debuting at the 86th position with a net worth of $1.3 billion each. Co-founder of
Flipkart, sachinbansal, got entrepreneur of the year award 2012-2013 from economic
times, leading Indian economic daily. Flipkart.com was awarded young turk of the
year at cnbctv 18's 'India business leader awards 2012' (ibla). Flipkart.com- got
nominated for Indiamart leaders of tomorrow awards 2011.
2011: chakpak.com, a Bollywood news site that offers updates, news, photos and
videos. Flipkart acquired the rights to chakpak's digital catalogue which includes
40,000 filmographies, 10,000 movies and close to 50,000 ratings.
letsbuy.com, an Indian e-retailer in electronics. Flipkart has bought the
company for an estimated us$25 million. Letsbuy.com was closed down and
all traffic to letsbuy has been diverted to Flipkart.
2014: acquired myntra.com in an estimated ₹ 20 billion (2,000 crore, about
us$319 million)deal.
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2015: Flipkart acquired a mobile marketing start-up appiterate as to
strengthen its mobile platform.
AMAZON
Amazon is the largest internet based company in the united states. Amazon.com
started as an online bookstore, but soon diversified, selling dvds, vhss, cds, video
and mp3downloads/streaming, software, video games, electronics, apparel,
furniture, food, toys, and jewellery. The company also produces consumer
electronics notably, kindle, fire tablets. Amazon also offers international shipping
to certain other countries for some of its products. In the year 2011, it had
professed an intention to launch its websites in poland, and sweden. In early june
2013, Amazon.com had launched their Amazon India marketplace without any
marketing campaigns. In july, 2013, Amazon had announced to invest $2 billion
(rs 12,000 crores) in India to expand business, after its largest Indian rival Flipkart
too had announced to invest$1 billion.
ACHIEVEMENTS IN E-COMMERCE:
On the mobile app side, Amazon had the fastest growing app download rate in
2015. In october alone, downloads increased 200 per cent. Amazon web traffic was
the highest in october as per comscore data, at 30 million visitors. The awards were
conferred at etailing India's flagship conference and exhibition 2014, an event that
brought together major stakeholders in the retail and e-commerce business in the
country. The "path-breaking debut of the year" award went to Amazon.in.
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FAILURE:
Amazon starts using India post and screws up its delivery system in India. At the time
when the competition among online shopping portals in India is at its highest level
possible and each player is pooling in millions from funding’s and trying to beat each
other with never-before discounts and amazing services, Amazon has taken the worst
step ever possible. Amazon India has chosen India post as its primary delivery partner
and all “Amazon fulfilled” orders are now being shipped through India post. Anyone
who lives in India or has some experience with the postal system in India needs no
introduction about Indiapost.
ACQUISITIONS:
It’s no secret that e-commerce giant Amazon has been betting on India as one of its
next big markets outside the u.s. The company is not only investing capital in the
region, but also acquiring startups to help expand its presence in the country. On
tuesday, Amazon announced it had acquired Indian payments company emvantage
payments pvt. Ltd. Amazon did not disclose the acquisition amount. Similar to stripe
or paypal, emvantage allows online merchants to accept credit and debit cards
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CHAPTER-4
NEED FOR STUDY
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OBJECTIVES
To understand the work flow of Amazon and Flipkart which are leading in India.
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CHAPTER-5
RESEARCH
METHODOLOGY
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Research Methodology
Primary data
Field Survey
Secondary data
Internet
Company database
Research Area
Kurnool
Questionnaires :
They are “sampling plan” after deciding on the research approach and the instruments
.The marketing researcher must design a sampling plan. This plan comprise of 3 parts
1.sample size
2.sample unit
3.sample procedure
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Sampling unit: The sampling units for the study consisted of respondents from all walks
of life, either sex, different age groups, different income groups and so on, but all
residents of KURNOOL CITY.
Sampling procedure:
Sample random sample method has been adopted for study. In random sampling we
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LIMITATIONS
There was so much confidential data for companies that are not exposed.
Survey was restricted to particular age group because respondents willing to fill are
college students.
Analysis was done based upon personal opinion of individually, not from any focus
group or experts.
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CHAPTER-6
CONCEPTS
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Logistics:-
FLIPKART
PROCEDURE
Flipkart team will map their supply chain end to end and know exactly how
many hours and minutes would it take for the item to reach from one step to next
In logistics, they needed to know the exact transport connection timings with their
transport time and reliability In fact, there were some airline partners which were
piloting their express delivery capabilities along with their pilot for in-a- day.
Airlines were even helping our partners grow. In the last mile logistics, they had to
ensure that the delivery is attempted within the promised time without fail and had
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dedicated field executives to guarantee thedelivery.
TECHNOLOGYUSED
To promise in-a-day guarantee to the customers, Flipkart developed a new
product called promise engine. This engine knew all about our fulfillment capabilities
and thus exactly where the item would be shipped from (depending on seller's
inventory location). Hence, it could calculate an accurate promise date for the
customer. This engine also needed to be able to provide multiple delivery speed
options to customers to choose from. Ekart spokesperson said: “the accurate address
data for both sellers and buyers will allow us to better schedule deliveries and
pickups.”
AMAZON
Amazon India, the company received 65 per cent orders from tier ii and iii
cities in 2015. To establish rural distribution centers in rural India, Amazon has been
training teams in packaging, checking shipments, tracking deliveries through a mobile
app, route planning to make deliveries on time etc. Many of these centers have
witnessed a five-fold increase in the number of deliveries. Amazon has a ‘service
partner’ programme too for last-mile delivery in remote areas. “budding entrepreneurs
in these areas act as Amazon.in’s local distribution network providers and create the
last-mile delivery footprint. This programme now covers more than 100 satellite
towns and tier ii and iii towns andvillages.
PROCEDURE
Amazon has set up a logistics company in India to deliver products directly to
consumers, opening a new front in the battle for top honours in the country's fast-
growing online retail industry.. More than 60% of our customers are eligible for next-
28
day shipping on products fulfilled by Amazon. While Amazon in developed markets
may not want to tweak its model for best selling goods, analysts said, it could
consider the made-in- India seller solution to cut down on warehousing and delivery
costs for thousands of “non-core” products which are offered, but infrequently
bought. “Amazon is becoming a lot more flexible about how it services its customers.
TECHNOLOGYUSED
Amazon.com inc said it has acquired Indian payments processor emvantage
payments pvt ltd for an undisclosed sum. Emvantage's employees will join Amazon's
India unit that will use the company's technology on its e-commerce website, Amazon
said in a statement. Online retailer Amazon.com inc.. Apart from irritating customers,
the features also caused the app to become very heavy in terms of taking up space on
smartphones. This was particularly problematic as a majority of Amazon’s current
and future customers will own low-end smartphones that offer limited storage space.
Clunky apps also don’t tend to work best on cheapsmartphones.
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Marketing strategy
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. Bubble pack for electronic items)
Brands – all brands integrated in one website
Warranty – one year warranty from the manufacturer’s side
Price
Special discount
As shipping is within India the shipping cost reduces
Seasonal discounts
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Free shipping
For expensive products transit cost is borne by company
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
Promotion
People
Packaging
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Physical evidence
Customers feel Flipkart is cheap, on time delivery, replacement; the online myth is
gradually eradicated
Competitors see Flipkart as the market leader, with the acquisition of letsbuy.com
General public want to try it once for its creative TVC is making people curious to
experience flipkart.
AMAZON :
SEGMENTATION
MARKETINGSTRATEGY
In order to differentiate itself, company acquired many it & e-commerce start-
ups like pets.com, audible.com, junglee.com, imbd.com, zappos.com, woot etc.
Which helped them in providing high value to their customers using existing
technology of the acquired partners at low cost? Amazon has also achieved
economies of scale through extensive product offerings which includeelectronics,
toys and games, apparels, diy and many more. More than 50% of the consumers are
the repeat buyers at Amazon.com.
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Brand equity in the marketing strategy of Amazon:
From being merely an e-book provider to emerging as the 2ndlargest e-
commerce company in the world, Amazon.com has steadily increased its spending
on advertising and promotion to make its brand stronger and have a higher brand
equity. By april 2015, the brand of Amazon.com was worth us$ 176 billion. “a
brand for a company is like a reputation for a person. You earn reputation by trying
to do hard things. With more than 55% repeat buyers, the numbers tells everything
about the brand. It is among 13 world’s most valuable brand” (forbes list).
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buyers.
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FLIPKART ADVERTISINGAGENCY:
Happy creative services, which has been the brand's creative agency since
2010. Myntra, the fashion e-commerce major which Flipkart had acquired in may
2014, will be handled by lowelintas, which had already been the brand's creative
agency since march 2014. Flipkart and myntra continue to operate as separate
entities and myntra founder mukeshbansal is the head the fashion business for
Flipkart and join the Flipkart board. Flipkart's first tv commercial for the e-retailer,
'fairytale', was an elaborate 100-second effort. The rest of the ads including 'no
kidding', 'shopping kanaya address' and the most recent one, 'Flipkart it', have been
etched in tv viewers' minds owing to the unique approach of using child actors to
communicate the ease of shopping on Flipkart. In 2013, the e-commerce portal
announced its entry into the realm of fashion and lifestyle with a new tvc campaign
titled 'fashion has a new address' - an extension of its previous punchline, 'shopping
has
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FLIPKART:
SWOT ANALYSIS:-
Strengths:
Weakness:
Late entry into mobile space after entry of Amazon
Fewer innovations compared to competitors
Future profitability since focus is more on expanding consumer base
Opportunities:
Global markets through Mergers and Acquisitions
Growing online shopping
Growing smart phones and mobile shopping
Threats:
Amazon, Amazon and Amazon
Other competitors like Homeshop18
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Amazon:
SWOT Analysis:
Strengths:
Global leader
Strong brand value
Experience for almost a decade
Input of cash from profits from other parts of worlds
Weakness:
Takes time to understand local markets
Operates at low margins
Depends on local distributors
Opportunities:
Innovations like In-a-day delivery
Setting up physical stores
Threats:
Strong local competition
Relaxation of FDI allows more competition
Government policies
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CHAPTER-7
DATA ANALYSIS
38
1. Have you ever done online shopping ?
Online Shopping
No
28%
Yes
72%
Interpretation:
From the above table we can state that 72 (72%) of respondents have done online
shopping and 28 (28%) of respondents have not done online shopping.
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2. How often do you shop online ?
More Often 6 6%
More frequesntly
24% Once in a month
48%
Interpretation :
According to the survey the above table indicate that 48% of respondents shop
online once in a month, 22 % shop online once in two months, 24 % of respondents shop
online more frequently and 6 % of respondents shop online more often .
40
2. Which online site will you prefer ?
Paytm
10%
Flipkart
Snapdeal 35%
20%
Amazon
35%
Interpretation :
41
From the above table we can conclude that 35% of respondents prefer Flipkart ,
35% of respondents prefer Amazon, 20%of respondents prefer Snapdeal and 10% of
respondents prefer Paytm.
Credit card
40%
42
Interpretation :
Above table indicate that 30% of respondents payments through Debit card,40% of
respondents pay through Credit card, 20% of respondents pay through Cash on deliver
and The remaining 10% pay through Third Party.
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5.Which online service is more satisfied in terms of products, customer care and
delivery service ?
50%
40%
30%
20% 20%
20%
10%
0%
reffered by friends advertisements online reviews
Interpretation:
Above table we can conclude that 40% respondents are satisfied with
flipkart,40% respondents are satisfied with amazon and 20% are satisfied with snapdeal.
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6. How do you choose online shopping site?
Advertisements 20 20%
50%
40%
30%
20% 20%
20%
10%
0%
reffered by friends advertisements online reviews
Interpretation:
From the above table we can conclude that 60% of the respondents are reffered by
friends,20% of respondents are influenced by advertisements and 20% of respondents are
online reviews.
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7.In terms of pricing, with which online shopping site you are satisfied?
Online shopping
8%
Interpretation:
From the above table we can analyse that 30% of respondents are satisfied
with flipkart , 30% of respondents are satisfied with amzon , 20% of respondents
are satisfied with snapdeal, 12% of respondents are satisfied with paytm and 8% of
respondents are satisfied with others.
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8. On which occasions do you make purchase?
Purchases on occasions
35%
30% 30% 30%
30%
25%
20%
15%
10%
10%
5%
0%
festivals Gifts Offers Weddings
Interpretation:
From the above table we can conclude that 30% of respondents are making
purchases on festivals, 10% of respondents are making purchases on gifts, 30% of
respondents are making purchases on offers and 30% of respondents are making
purchases on weddings.
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9. Does promotional activities impact your purchasing decision?
Promotional activities
70%
60%
60%
50%
40%
30%
20%
20%
10% 10%
10%
0%
Strongly agree Agree Disagree Strongly disagree
Interpretation:
From the above table we can analyzed that 60% of respondents are strongly agree
with purchasing decision, 20% of respondents are agree with purchasing decision , 10%
48
of respondents are disagree with purchasing decision and 10% of respondents are strongly
disagree.
10. What kind of problem did you faced while doing onlineshopping?
10%
30%
Delay in delivery
Product damage
40%
Cheap quality of product
20%
Non delivery
Interpretation:
From the above graph we can conclude that 30% of respondents are facing problem
in delay in delivery, 20% of respondents are facing problem on product damage, 40% of
49
respondents are facing problem on cheap quality of product and 10% of respondents are
facing problem on non devlivery.
40%
30%
20% 20%
20%
10%
10%
0%
Strongly agree Agree Neither agree nor Disagree
disagree
Interpretation:
50
From the above graph we can conclude that 30% of respondents are strongly agree to
purchase flipkart goods, 40% of respondents are agree to purchase flipkart goods, 20% of
respondents are neither agree nor disagree to purchase flipkart goods and 10% of
respondents are disagree to purchase flipkart goods.
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12.Customer assistance after purchase from Amazon is good?
40%
30%
20% 20%
20%
10%
10%
0%
Strongly agree Agree Neither agree nor Disagree
disagree
Intrerpretation:
From the above table we can analyzed that 20% of respondents are strongly agree
to purchase amazon goods, 50% of respondents are agree to purchase amazon goods,
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20% of respondents are neither agree nor disagree to purchase amazon goods and 10% of
respondents are disagree to purchase amazon goods.
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CHAPTER-8
FINDINGS
AND
SUGGESTIONS
54
FINDINGS
Flipkart is trying very hard to reach the top position but Amazon India is
giving very tough competition.
Amazon is leading in every aspect of survey such as price, preferred and
also suggesting to friends.
Paytm have to take care of its products and customer service because of its
cheap product quality and less variety of products making it loose
customers.
Every age group people are interested in offers, if they are in need or not
they want to purchase.
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SUGGESTIONS
56
CHAPTER-9
CONCLUSION
57
CONCLUSION
The study consisted with all the work flows of major e-commerce players in India,
Flipkart and Amazon. How they are performing and how they are running perfectly
in the competitive world has been explained. Even though it is an international
company it understood Indians very well and made its roots stronger in India.
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CHAPTER-10
ANNEXURE
59
Questionnaire
Name:
Gender:
Occupation:
a) Yes
b) No
a) Once in month
b) Once in two month
c) More frequently
d) More often
a) Flipkart
b) Amazon
c) Snapdeal
d) Paytm
a) Referred by friends
b) Advertisements
c) Online reviews
7. In terms of pricing, with which online shopping site you are satisfied
a) Flipkart
b) Amazon
c) Snapdeal
d) Paytm
e) Others
10. What kind of problem did you faced while doing online shopping
a) Delay in delivery c. Cheap quality of a product
b) Agree
d) Disagree
e) Strongly Disagree
b) Agree
d) Disagree
e) Strongly Disagree
suggestions……………………………………………………………………….
………………………………………………………………………………………………
…………………………………………………………………………
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Bibliography
BOOKS:
Marketing management by Philip kotler
Magazines
Business India
Websites
www.google.com
www.ril.com
www.wikipedia.com
www.facebook.com/mazon/flipkart.
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