Professional Documents
Culture Documents
ON
BCOM(H) VI Semester
Batch 2017-2020
Submitted to: Submitted by:
Ms. Dikshita Kathuria Kuldeep Verma
Assistant Professor 01324588817
I hereby certify that Kuldeep Verma has completed the project under my
guidance on the title “The New Trends Of E-Marketing by online firms”.
(Assistant professor)
ACKNOWLEDGEMENT
It is my proud privilege to express my profound gratitude the entire management
of JAGNNATH INTERNATIONAL MANAGEMENT SCHOOL and
teachers of the institute. I am grateful to Ms. Dikshita Kathuria for their astute
guidance for her encouragement and sincere support for this project work.
Sincere thanks to all my family members, friends for their support throughout the
project work.
Kuldeep Verma
01324588817
CONTENTS
Executive Summary
Introduction to topic
Company Profile
Objectives
Literature review
Research Methodology
Appendices
Bibliography
EXECUTIVE SUMMARY
The term "Webshop" also refers to a place of business where web development,
web hosting and other types of web related activities take place (Web refers to
the World Wide Web and "shop" has a colloquial meaning used to describe the
place). Buying online introduced new ways of reducing costs by reducing the
number of staff needed. It is a more effective way of getting products to people
and spreading into different demographics.
The idea of online shopping predates the World Wide Web, for there are earlier
experiments involving real-time transaction processing from a domestic
television. The technology, based on Videotext, was first demonstrated in 1979
by Michael Aldrich, who designed and installed systems in the UK, including the
first Tesco pilot system in 1984. The first B2B was Thomson Holidays in 1981.
In 1990 Tim Berners-Lee created the first World Wide Web server and browser.
In 1992 Charles Stack created the first online book store, Book Stacks Unlimited
(aka Books.com), two years before Jeff Bezos started Amazon. In 1994 other
advances took place, such as online banking and the opening of an online pizza
shop by Pizza Hut. During that same year, Netscape introduced SSL encryption
of data transferred online, which has become essential for secure online
shopping. In 1995 Amazon expanded its online shopping, and in 1996 eBay
appeared.
In general, shopping has always catered to middle class and upper class women.
Shopping is fragmented and pyramid-shaped. At the pinnacle are elegant
boutiques for the affluent, a huge belt of inelegant but ruthlessly efficient
“discounters” flog plenty at the pyramid’s precarious middle. According to the
anaylsis of Susan D. Davis, at its base are the world’s workers and poor, on
whose cheapened labor the rest of the pyramid depends for its incredible
abundance. Shopping has evolved from single stores to large malls containing
many stores that most often offer attentive service, store credit, delivery, and
acceptance of returns. These new additions to shopping have encouraged and
targeted middle class women.
In recent years, online shopping has become popular; however, it still caters to
the middle and upper class. In order to shop online, one must be able to have
access to a computer, a bank account and a debit card. Shopping has evolved
with the growth of technology. According to research found in the Journal of
Electronic Commerce, if we focus on the demographic characteristics of the in-
home shopper, in general, the higher the level of education, income, and
occupation of the head of the household, the more favourable the perception of
non-store shopping. An influential factor in consumer attitude towards non-store
shopping is exposure to technology, since it has been demonstrated that
increased exposure to technology increases the probability of developing
favourable attitudes towards new shopping channels.
Online shopping widened the target audience to men and women of the middle
class. At first, main users of online shopping were young men with a high level of
income and a university education. This profile is changing. For example, in USA
in the early years of Internet there were very few women users, but by 2001
women were 52.8% of the online population. Sociocultural pressure has made
men generally more independent in their purchase decisions, while women place
greater value on personal contact and social relations.
Trends
One third of people that shop online use a search engine to find what they are
looking for and about one fourth find websites by word of mouth. Word of mouth
has become a leading way by which people find shopping websites. When an
online shopper has a good first experience with a certain website, sixty percent of
the time they will return to that website to buy more.
Books are one of the things bought most online. However, clothes, shoes, and
accessories are all very popular things bought online. Cosmetics, nutrition
products, and groceries are increasingly being purchased online. About one
fourth of travelers buy their plane tickets online because it is a quick and easy
way to compare airline travel and make a purchase. Online shopping provides
more freedom and control than shopping in a store. From a sociological
perspective, online shopping is arguably the most predictable way to shop. One
knows exactly what website to go to, how much the product will cost, and how
long it will take for the product to reach them. Online shopping has become
extremely routine and predictable, which is one of its great appeals to the
consumer.
Logistics
Consumers find a product of interest by visiting the website of the retailer directly,
or do a search across many different vendors using a shopping search engine.
Once a particular product has been found on the web site of the seller, most
online retailers use shopping cart software to allow the consumer to accumulate
multiple items and to adjust quantities, by analogy with filling a physical shopping
cart or basket in a conventional store. A "checkout" process follows (continuing
the physical-store analogy) in which payment and delivery information is
collected, if necessary. Some stores allow consumers to sign up for a permanent
online account so that some or all of this information only needs to be entered
once. The consumer often receives an e-mail confirmation once the transaction
is complete. Less sophisticated stores may rely on consumers to phone or e-mail
their orders (though credit card numbers are not accepted by e-mail, for security
reasons).
Payment
Online shoppers commonly use credit card to make payments, however some
systems enable users to create accounts and pay by alternative means, such as:
* Debit card
* Various types of electronic money
* Cash on delivery (C.O.D., offered by very few online stores)
* Cheque
* Wire transfer/delivery on payment
* Postal money order
* PayPal
* Google Checkout
* Amazon Payments
* Bill Me Later
* Money bookers
* Reverse SMS billing to mobile phones
* Gift cards
* Direct debit in some countries
Some sites will not allow international credit cards and billing address and
shipping address have to be in the same country in which site does its business.
Other sites allow customers from anywhere to send gifts anywhere. The financial
part of a transaction might be processed in real time (for example, letting the
consumer know their credit card was declined before they log off), or might be
done later as part of the fulfillment process.
Product delivery
Once a payment has been accepted the goods or services can be delivered in
the following ways.
Download: This is the method often used for digital media products such as
software, music, movies, or images.
Shipping: The product is shipped to the customer's address.
Drop shipping: The order is passed to the manufacturer or third-party
distributor, who ships the item directly to the consumer, bypassing the
retailer's physical location to save time, money, and space.
In-store pickup: The customer orders online, finds a local store using
locator software and picks the product up at the closest store. This is the
method often used in the bricks and clicks business model.
In the case of buying an admission ticket one may get a code, or a ticket
that can be printed out. At the premises it is made sure that the same right
of admission is not used twice.
Design
Why does electronic shopping exist? For customers it is not only because of the
high level of convenience, but also because of the broader selection; competitive
pricing and greater access to information. For organizations it increases their
customer value and the building of sustainable capabilities, next to the increased
profits.
Information load
Designers of online shops should consider the effects of information load.
Mehrabian and Russel (1974) introduced the concept of information rate (load)
as the complex spatial and temporal arrangements of stimuli within a setting. The
notion of information load is directly related to concerns about whether
consumers can be given too much information in virtual shopping environments.
Compared with conventional retail shopping, computer shopping enriches the
information environment of virtual shopping by providing additional product
information, such as comparative products and services, as well as various
alternatives and attributes of each alternative, etc.
Two major sub-dimensions have been identified for information load: complexity
and novelty. Complexity refers to the number of different elements or features of
a site, which can be the result of increased information diversity. Novelty involves
the unexpected, suppressing, new, or unfamiliar aspects of the site. A research
by Huang (2000) showed that the novelty dimension kept consumers exploring
the shopping sites, whereas the complexity dimension has the potential to induce
impulse purchases.
Consumer expectations
The main idea of online shopping is not in having a good looking website that
could be listed in a lot of search engines and it is not about the art behind the
site. It also is not only just about disseminating information, because it is all about
building relationships and making money. Mostly, organizations try to adopt
techniques of online shopping without understanding these techniques and/or
without a sound business model.
User interface
It is important to take the country and customers into account. For example, in
Japan privacy is very important and emotional involvement is more important on
a pension’s site than on a shopping site. Next to that, there is a difference in
experience: experienced users focus more on the variables that directly influence
the task, while novice users are focusing more on understanding the information.
Market share
E-commerce product sales totaled $146.4 billion in the United States in 2006,
representing about 6% of retail product sales in the country. The $18.3 billion
worth of clothes sold online represented about 10% of the domestic market.
ADVANTAGES
1. Convenience
Online stores are usually available 24 hours a day, and many consumers have
Internet access both at work and at home. A visit to a conventional retail store
requires travel and must take place during business hours.
Searching or browsing an online catalog can be faster than browsing the aisles of
a physical store. Consumers with dial-up Internet connections rather than
broadband have much longer load times for content-rich web sites and have a
considerably slower online shopping experience.
Some consumers prefer interacting with people rather than computers (and vice
versa), sometimes because they find computers hard to use. Not all online
retailers have succeeded in making their sites easy to use or reliable.
In most cases, merchandise must be shipped to the consumer, introducing a
significant delay and potentially uncertainty about whether or not the item was
actually in stock at the time of purchase. Bricks and clicks stores offer the ability
to buy online but pick up in a nearby store. Many stores give the consumer the
delivery company's tracking number for their package when shipped, so they can
check its status online and know exactly when it will arrive. For efficiency
reasons, online stores generally do not ship products immediately upon receiving
an order. In the event of a problem with the item - it is not what the consumer
ordered, or it is not what they expected - consumers are concerned with the ease
with which they can return an item for the correct one or for a refund. Consumers
may need to contact the retailer, visit the post office and pay return shipping, and
then wait for a replacement or refund. Some online companies have more
generous return policies to compensate for the traditional advantage of physical
stores. For example, the online shoe retailer Zappos.com includes labels for free
return shipping, and does not charge a restocking fee, even for returns which are
not the result of merchant error. (Note: In the United Kingdom, Online shops are
prohibited from charging a restocking fee if the consumer cancels their order in
accordance with the Consumer Protection (Distance Selling) Act 2000.
Online stores must describe products for sale with text, photos, and multimedia
files, whereas in a physical retail store, the actual product and the manufacturer's
packaging will be available for direct inspection (which might involve a test drive,
fitting, or other experimentation).
Some online stores provide or link to supplemental product information, such as
instructions, safety procedures, demonstrations, or manufacturer specifications.
Some provide background information, advice, or how-to guides designed to help
consumers decide which product to buy.
Some stores even allow customers to comment or rate their items. There are
also dedicated review sites that host user reviews for different products.
In a conventional retail store, clerks are generally available to answer questions.
Some online stores have real-time chat features, but most rely on e-mail or
phone calls to handle customer questions.
One advantage of shopping online is being able to quickly seek out deals for
items or services with many different vendors (though some local search engines
do exist to help consumers locate products for sale in nearby stores). Search
engines and online price comparison services can be used to look up sellers of a
particular product or service.
Shoppers find a greater selection online in certain market segments (for
example, computers and consumer electronics) and in some cases lower prices.
This is due to a relaxation of certain constraints, such as the size of a "brick-and-
mortar" store, lower stocking costs (or none, if drop shipping is used), and lower
staffing overhead.
Shipping costs (if applicable) reduce the price advantage of online merchandise,
though depending on the jurisdiction, a lack of sales tax may compensate for
this.
Shipping a small number of items, especially from another country, is much more
expensive than making the larger shipments bricks-and-mortar retailers order.
Some retailers (especially those selling small, high-value items like electronics)
offer free shipping on sufficiently large orders.
CONCERNS
Given the lack of ability to inspect merchandise before purchase, consumers are
at higher risk of fraud on the part of the merchant than in a physical store.
Merchants also risk fraudulent purchases using stolen credit cards or fraudulent
repudiation of the online purchase. With a warehouse instead of a retail
storefront, merchants face less risk from physical theft.
Secure Sockets Layer (SSL) encryption has generally solved the problem of
credit card numbers being intercepted in transit between the consumer and the
merchant. Identity theft is still a concern for consumers when hackers break into
a merchant's web site and steal names, addresses and credit card numbers. A
number of high-profile break-ins in the 2000s has prompted some U.S. states to
require disclosure to consumers when this happens. Computer security has thus
become a major concern for merchants and e-commerce service providers, who
deploy countermeasures such as firewalls and anti-virus software to protect their
networks.
Phishing is another danger, where consumers are fooled into thinking they are
dealing with a reputable retailer, when they have actually been manipulated into
feeding private information to a system operated by a malicious party. Denial of
service attacks are a minor risk for merchants, as are server and network
outages.
Quality seals can be placed on the Shop web page if it has undergone an
independent assessment and meets all requirements of the company issuing the
seal. The purpose of these seals is to increase the confidence of the online
shoppers; the existence of many different seals, or seals unfamiliar to
consumers, may foil this effort to a certain extent.
A number of resources offer advice on how consumers can protect themselves
when using online retailer services. These include:
Sticking with known stores, or attempting to find independent consumer
reviews of their experiences; also ensuring that there is comprehensive
contact information on the website before using the service, and noting if
the retailer has enrolled in industry oversight programs such as trust mark
or trust seal.
Ensuring that the retailer has an acceptable privacy policy posted. For
example note if the retailer does not explicitly state that it will not share
private information with others without consent.
Ensuring that the vendor address is protected with SSL (see above) when
entering credit card information. If it does the address on the credit card
information entry screen will start with "HTTPS".
Although the benefits of online shopping are considerable, when the process
goes poorly it can create a thorny situation. A few problems that shoppers
potentially face include identity theft, faulty products, and the accumulation of spy
ware. Most large online corporations are inventing new ways to make fraud more
difficult, however, the criminals are constantly responding to these developments
with new ways to manipulate the system. Even though these efforts are making it
easier to protect yourself online, it is a constant fight to maintain the lead. It is
advisable to be aware of the most current technology and scams out there to fully
protect yourself and your finances.[23].
2. Privacy
E-transformation
If we talk about only a website, there could many a times of websites that a
company can create to infuse customer interaction model for their business such
as Basic Website, Interactive Website, E-commerce Website etc. First the
organization goes through transformation phase at an individual stage, then
transformation at a group level, and then finally it changes or transforms the
enterprise as a whole, its perspective and acceptability in the market.
A basic website refers to a static and information only website for any company.
This forms a preliminary external development phase that enterprises could use
the Internet as the media for disseminating marketing and advertising campaigns
and products information. Internet is employed as the same way as they have
been using in the conventional promotion mediums such as magazines,
newspapers, and product catalogues and so on at this stage. Primarily in this
phase it is important to ensure the corporate web presence with the appropriate
contents incorporated. In an interactive website, companies construct their
websites towards more advanced functions. Such websites are seen as an
interactive website which provides the website visitor (e.g. clients, vendors,
employees etc) with dynamic and up to date information. Primary concept of the
dynamic contents emphasises on the connection and interface between the front-
end website and the back-end database systems. The task of an interactive
website is to identify the dynamic contents availability on the Internet. But the
ultimate e-transformation comes from e-commerce website where the objective is
to construct an e-commerce or online payment enabled website. Through this the
customers are able to place sales orders, organise accounts payables; vendors
or suppliers are able to remit invoices and receive payments; and the enterprise
could arrange payrolls and any other expenses. An important job in this phase is
to focus on the development of secure environment that provides all business
parties confidently trading through the Internet.
E-COMMERCE ADVANTAGES
E-COMMERCE DISADVANTAGES
DIGITAL MARKETING
Meaning:
Directory submission
One of the most influential and efficient way of improving your website visibility
on the web is Directory submission. As its name suggests, Directory
Submission is very similar to the practice of getting your website registered
in yellow pages. The directory has a compilation of links broken down into
different categories. Under these, a user can spot relevant information. The
directory is more or less a collection of bookmarks that are open for the use of
public. As per the SEO industry experts, the technique helps largely in increasing
visibility and rankings.
Normally, these directories are very specific about the website links posted or
submitted. They house only relevant, quality websites that are genuine and are
placed in the category relevant to their business.
Directory Submission provides high quality backlinks We can use a desired
keyword , which will be hyperlinked to the site providing you an anchor text
backlink. Directory submission provides link building process. The most important
step is to study the website for which we are going to start process. The next
step is to have your titles and description ready. The next important step is to
select the category in which you are going to submit your site. Before Starting
Directory Submission Process just make sure that all details are collected and
saved.
There are lots of sites where you can find free Directory List.
Social bookmarking:
Essentially, a social bookmark is a link that people post to social websites for
others to see because they find it interesting, valuable or cool. In a way, social
bookmarks are just like the bookmarks you already have on your private
computer. The difference between the two is that social bookmarks are saved to
the web where they can be easily shared while private bookmarks are saved to
your own browser. The idea behind social bookmarking is simple: post links on
popular social bookmarking websites to increase your own traffic and gain an
ongoing stream of new readers and customers. Content that are openly shared
with other Internet users literally have unlimited growth potential.
SEM/PAID
There are four categories of methods and metrics used to optimize websites
through search engine marketing.
3. Back end tools, including Web analytic tools and HTML validators, provide
data on a website and its visitors and allow the success of a website to be
measured. These tools can deliver conversion-related information. There are
three major tools used by EBSCO: (a) log file analyzing tool: Web Trends by
NetIQ; (b) tag-based analytic tool: WebSideStory's Hitbox; and (c) transaction-
based tool: Tealeaf RealiTea. Validators check the invisible parts of websites,
highlighting potential problems and many usability issues and ensuring websites
meet W3C code standards. Try to use more than one HTML validator or spider
simulator because each one tests, highlights, and reports on slightly different
aspects of your website.
There are two primary models for determining pay-per-click: flat-rate and bid-
based. In both cases, the advertiser must consider the potential value of a click
from a given source. This value is based on the type of individual the advertiser
is expecting to receive as a visitor to his or her website, and what the advertiser
can gain from that visit, usually revenue, both in the short term as well as in the
long term.
Flat-rate PPC
In the flat-rate model, the advertiser and publisher agree upon a fixed amount
that will be paid for each click. In many cases the publisher has a rate card that
lists the pay-per-click (PPC) within different areas of their website or network.
These various amounts are often related to the content on pages, with content
that generally attracts more valuable visitors having a higher PPC than content
that attracts less valuable visitors. However, in many cases advertisers can
negotiate lower rates, especially when committing to a long-term or high-value
contract. The flat-rate model is particularly common to comparison shopping
engines, which typically publish rate cards. However, these rates are sometimes
minimal, and advertisers can pay more for greater visibility. These sites are
usually neatly compartmentalized into product or service categories, allowing a
high degree of targeting by advertisers. In many cases, the entire core content of
these sites is paid ads.
Bid-Based PPC:
With the bid-based PPC model, the advertiser is allowed to bid, to compete
against similar advertisers in a private auction. Each of the bidding advertisers
lets the publisher know the maximum amount they are willing to pay for a given
ad spot or keyword. The winning advertisers then pay for each click on their
advertisement, based on the amount they bid. The common practice amongst
bid-based PPC websites such as Google Ad Words, is to charge a small amount
more than the next highest bidder.As you can see, Pay per Click can be a
massively effective means of directing targeted traffic to your website, and is
relatively inexpensive.
Engagement
In the context of the social web, engagement means that customers and
stakeholders are participants rather than viewers. Social media in business
allows anyone and everyone to express and share an opinion or an idea
somewhere along the business’s path to market. Each participating customer
becomes part of the marketing department, as other customers read their
comments or reviews. The engagement process is then fundamental to
successful social media marketing.
Facebook Marketing
Facebook is the world's most popular social network for both businesses and
individuals. With over one billion users, your friends and fans are likely already
using the platform and you should be too. In fact, people are 51% more likely to
make a purchase after "liking" a brand on Facebook. Face book marketing
requires a good intellects and unique thinking to make the campaign effective.
In face book marketing in fact in visual /web marketing your content speaks a
loud that is why make sure your content should be relevant to your audience and
business.
Pros:
Your Facebook page is a place where you can publicise your business name,
address and contact details, and briefly describe your products and services.
You can also talk about your staff, history, or any other aspect of your
business that is likely to attract other Facebook users and create interest in
what you do.
As well as allowing you to post text, Facebook lets you upload pictures and
videos from your business. This can be a powerful way to communicate with
customers and potential customers, allowing them to see your product or
service without having to visit your premises.
COMPANY PROFILE
Flipkart Pvt Ltd. is an e-commerce company based in Bengaluru, India. Founded
by Sachin Bansal and Binny Bansal in 2007, the company initially focused on
book sales, before expanding into other product categories such as consumer
electronics, fashion, and lifestyle products. The service competes primarily with
Amazon's Indian subsidiary, and the domestic rival Snapdeal. as of March 2017,
Flipkart held a 39.5% market share of India's e-commerce industry. Flipkart is
significantly dominant in the sale of apparel (a position that was bolstered by its
acquisitions of Myntra and Jabong.com), and was described as being "neck and
neck" with Amazon in the sale of electronics and mobile phones. Flipkart also
owns PhonePe, a mobile payments service based on the Unified Payments
Interface(UPI). In August 2018, U.S.-based retail chain Walmart acquired a 77%
controlling stake in Flipkart for US$16 billion, valuing it at $22 billion. Flipkart logo
used from 2007 to 2015 Flipkart was founded in October 2007 by Sachin Bansal
and Binny Bansal, who were both alumni of the Indian Institute of Technology
Delhi and formerly worked for Amazon. The company initially focused on online
book sales with country-wide shipping. Following its launch, Flipkart slowly grew
in prominence; by 2008, it was receiving 100 orders per day. In 2010, Flipkart
acquired the Bangalore-based social book discovery service weRead from
Lulu.com. [13] In late 2011, Flipkart made several acquisitions relating to digital
distribution, including Mime360.com and the digital content library of Bollywood
portal Chakpak. In February 2012, the company unveiled its DRM-free online
music store Flyte. However, the service was unsuccessful due to competition
from free streaming sites, and shut down in June 2013.[16][17][18][19] 23 In May
2012, Flipkart acquired Letsbuy, an online electronics retailer. In May 2014,
Flipkart acquired Myntra, an online fashion retailer, for ₹20 billion (US$280
million). Myntra continues to operate alongside Flipkart as a standalone
subsidiary; the site focuses on an upscale, "fashion-conscious" market, while
Flipkart itself focuses on the mainstream market and major international brands.
In February 2014, Flipkart partnered with Motorola Mobility to be the exclusive
Indian retailer of its Moto G smartphone. Motorola also partnered with Flipkart on
the Moto E—a phone targeted primarily towards emerging markets such as India.
High demand for the phone caused the Flipkart website to crash following its
midnight launch on 14 May. Flipkart subsequently held exclusive Indian launches
for other smartphones, including the Xiaomi Mi3in July 2014 (whose initial
release of 10,000 devices sold out in around 5 seconds), the Redmi 1S and
Redmi Note in late-2014 (which saw similarly accelerated sellouts), and
Micromax's Yu Yunique 2 in 2017. On 6 October 2014, in honour of the
company's anniversary and the Diwali season, Flipkart held a major sale across
the service that it promoted as "Big Billion Day". The event generated a surge of
traffic, selling US$100 million worth of goods in 10 hours. The event received
criticism via social media over technical issues the site experienced during the
event, as well as stock shortages. In March 2015, Flipkart blocked access to its
website on mobile devices, and began requiring that users download the site's
mobile app instead. The following month, Myntra went further and discontinued
its website on all platforms, in favour of operating exclusively through its app. The
"app-only" model, however, proved to be unsuccessful for Myntra (reducing sales
by 10%), and its main website was reinstated in February 2016. The experiment
with Myntra led to suggestions that Flipkart itself would perform a similar move,
but this did not occur. In November 2015, Flipkart launched a new mobile
website branded as "Flipkart Lite", which provides an experience inspired by
Flipkart's app that runs within smartphone web browsers. In April 2015, Flipkart
acquired Appiterate, a Delhi-based mobile marketing automation firm. Flipkart
stated that it would use its technology to enhance its mobile services.[41] In
October 2015, Flipkart reprised its Big Billion Day event, except as a multi-day
event that would be exclusive to the Flipkart app. Flipkart also stated that it had
bolstered its supply chain and introduced more fulfilment centres in order to meet
customer demand. Flipkart 24 achieved a gross merchandise volume of US$300
million during the event, with the largest volumes coming from fashion sales, and
the largest value coming from mobiles. In December 2015, Flipkart purchased a
minority stake in the digital mapping provider MapmyIndia. The company stated
that it would licence its data to help improve delivery logistics. In 2016, Flipkart
acquired the online fashion retailer Jabong.com from Rocket Internet for US$70
million, as well as the UPI mobile payments startup PhonePe. In January 2017,
Flipkart made a US$2 million investment in Tinystep, a parenting information
startup. In April 2017, eBay announced that it would sell its Indian subsidiary
eBay.in to Flipkart and make a US$500 million cash investment in the company.
eBay promoted that the partnership would eventually allow Flipkart to access
eBay's network of international vendors, and vice versa, but these plans never
actually came to fruition. In July 2017, Flipkart made an offer to acquire its main
domestic competitor, Snapdeal, for around US$700–800 million. It was rejected
by the company, which was seeking at least US$1 billion.] Flipkart held a 51%
share of all Indian smartphone shipments in 2017, overtaking Amazon India
(33%).[51] Flipkart sold 1.3 million phones in 20 hours on 21 September alone for
its Big Billion Days promotion, doubling the number sold on the first day of the
event in 2016 (where it sold a total of 2.5 million phones in five days). Acquisition
by Walmart On 4 May 2018, it was reported that the US retail chain Walmart had
won a bidding war with Amazon to acquire a majority stake in Flipkart for US$15
billion. On 9 May 2018, Walmart officially announced its intent to acquire a 77%
controlling stake in Flipkart for US$16 billion, subject to regulatory approval.
Following the proposed purchase, Flipkart cofounder Sachin Bansal left the
company, while the remaining management now report to Marc Lore, CEO of
Walmart eCommerce US. Walmart president Doug McMillon cited the
"attractiveness" of the market, explaining that their purchase "is an opportunity to
partner with the company that is leading transformation of eCommerce in the
market". Indian traders protested against the deal, considering the deal a threat
to domestic business. In a filing with the U.S. Securities and Exchange
Commission on 11 May 2018, Walmart stated that a condition of the deal
prescribed the possibility that Flipkart's current minority shareholders "may
require Flipkart to effect an initial public offering following the fourth anniversary
of closing of the Transactions at a valuation no less than that paid by Walmart".
25 Following the announcement of Walmart's deal, eBay announced that it would
sell its stake in Flipkart back to the company for approximately US$1.1 billion,
and re-launch its own Indian operations. The company stated that "there is huge
growth potential for e-commerce in India and significant opportunity for multiple
players to succeed in India's diverse, domestic market." Softbank Group also
sold its entire 20% stake to Walmart, without disclosing terms of the sale. The
acquisition was completed on 18 August 2018. Walmart also provided US$2
billion in equity funding to the company. On 13 November 2018, Flipkart CEO
Binny Bansal resigned, after facing an allegation of "serious personal
misconduct". Walmart stated that "while the investigation did not find evidence to
corroborate the complainant's assertions against Binny, it did reveal other lapses
in judgment, particularly a lack of transparency, related to how Binny responded
to the situation."
OBJECTIVE
OBJECTIVE
To study how Flipkart creates a system that is easily accessible by
customers from the comfort of their homes, offices etc.
To determine the satisfaction level in the services provided by Flipkart
among the system.
LITRATURE REVIEW
1. Neelika Arora has published research article entitled “Trends in
Online Advertising” in advertising Express, Dec2017.
The global online advertising revenues are expected to touch US $10bn
by 2015. In India, the revenues at present are estimated to be Rs.80 cr.
and are expected to increase six times more within the next five years. In
India, Internet as a medium is accepted by a wider industrial segment that
includes automobiles, telecom, education, banking, insurance, credit
cards, FMCG (Fast Moving Consumer Goods), apparel/clothing, durables,
media, business services and tourism. Out of these, it is estimated that the
banking, FMCG and insurance sectors together account for 45% of the
total advertising spend. In comparison to this, automotive, travel and retail
spend 37% of the total advertising revenue and financial service
companies spend 12% only. Some of the top spenders in India are
automobiles, followed by brands like Pepsodent, Kelloggs, Cadbury,
HDFC (Housing Development Finance Corporation Ltd.) loans and
Sunsilk. In addition to these the early adopters in the field of finance and
IT are also increasing their spending. Globally, the trend is that almost
60% of the revenue goes to five firms- Goggle, Yahoo, Microsoft,
AOL(America Online Launchers), and Overture. Approximately, 90% of
the Goggle revenues come from advertising. In India, portals like
indiatimes.com, exchange4media.com, rediffmail.com, agencyfaqs.com
etc are attracting major online spender.
This article explains demographic profile of Indian users. It also gives the
comparison between global trend and Indian trend, which is useful for my
research work.
Traditionally, social networks have not been used as a tool to directly drive
e-commerce sales, but as Nielsen reported in its Global ecommerce report
in August 2014, an estimated 61% of people spend a considerable
amount of time researching products through online channels before
making a purchase. And interestingly, a significant 43% of consumers
revealed that they specifically browse through outlets such as Facebook,
Twitter, Pinterest, Instagram and Google+ to seek inspiration for the types
of products to buy. This last statistic reveals just how powerful social
media can be in terms of enticing shoppers to make a purchase, both
through its use of visual content and product descriptions. But while many
consumers still have reservations about purchasing items through social
channels directly, the social shopping phenomenon is clearly only going to
grow and it’s apparent that this growth will eventually have a positive
impact on a retailer’s bottom line. One retailer which enjoyed success by
promoting its products via social media is ASOS. At the start of 2014,
ASOS previewed their summer sale through a Facebook application,
allowing fans to play a series of games to accumulate points, getting them
to the front of the virtual shopping queue. The winners gained first access
to the sale, and through the support of sponsored ads ASOS was able to
generate 1 million views through the application, growing their fan base by
32%.
This example shows how much potential there is for brands to drum up
organic publicity for their products whilst engaging through fans across
social media channels. Furthermore, it proves that social media outlets
have evolved not only as a tool for driving community growth, but also as
a revenue driving commodity to boost business performance.
Supporting the concept that that social media engagement can facilitate
purchase orders, according to Nielsen, 77% of shoppers say ‘social
exposure’ and validation to a product is the most persuasive source of
information, and does indeed drive them to make more purchases. After
all, we mustn’t forget how powerful the trust of our peers can be, and this
has a direct impact of driving revenue.
Research refers to the systematic investigation into and study of materials and
sources in order to establish facts and reach new conclusions.
Research comprises "creative work undertaken on a systematic basis to increase
the stock of knowledge, including knowledge of humans, culture and society, and
the use of this stock of knowledge to devise new applications." It is used to
establish or confirm facts, reaffirm the results of previous work, solve new or
existing problems, support theorems, or develop new theories. In the broadest
sense of the word, the definition of research includes any gathering of data,
information, and facts for the advancement of knowledge. It is a process of steps
used to collect and analyze information to increase our understanding of a topic
or issue". It consists of three steps: pose a question, collect data to answer the
question, and present an answer to the question.
The process used to collect information and data for the purpose of making
business decisions is called as Research Methodology. The methodology may
include publication research, interviews, surveys and other research techniques,
and could include both present and historical information.
Research Design
A research design is the set of methods and procedures used in collecting and
analyzing measures of the variables specified in the research problem research.
The design of a study defines the study type (descriptive, co-relational, semi-
experimental, experimental, review, meta-analytic) and sub-type (e.g.,
descriptive-longitudinal case study), research problem, hypotheses, independent
and dependent variables, experimental design, and, if applicable, data collection
methods and a statistical analysis plan. Research design is the framework that
has been created to find answers to research questions. There are many ways to
classify research designs, but sometimes the distinction is artificial and other
times different designs are combined. Nonetheless, the list below offers a
number of useful distinctions between possible research designs. A research
design is an arrangement of conditions or collections.
Data Collection
Primary data
Primary Data is the data which is originally collected by an investigator or agency
for the first time for specific purpose. The source from which the primary data is
collected is called the primary source. Such data is original in character as it is
collected for the first time. It is first-hand information. Primary Data once collected
and published becomes Secondary Data. There are many methods to collect
primary data and the main methods include:
Questionnaires
Interviews
Focus group interviews
Observation
Secondary data
The data which is not directly collected but rather obtained from the published or
unpublished sources is known as Secondary Data. It is also known as Second
Hand Data. These are not original data since the enumerators or investigators
themselves do not collect these data. They simply make use of the data collected
by the others. Common sources of secondary data include:
Census
Large surveys
Internet
Journals
Books
News papers
Organizational records
Many constraints were involved in doing this study. Some of them are as follows:
The most significant limitation has been the individuals involved in this
study were very busy and did not spare much time in discussion.
The sample size selected for the survey was too small as compared to
large population.
The project was carried out only in the Delhi, so findings on data gathered
can be best true for Delhi only and not applicable to other parts of state
and country.
ANALYSIS AND INTERPRETATION
ANALYSIS AND INTERPRETATION
Particulars Frequency
Snapdeal 5
Flipkart 18
Amazon 15
Homeshop18 2
Frequency
3% 13%
Snapdeal
Flipkart
38% Amazon
Homeshop18
46%
Interpretation: -
The following graph shows that 46% of the people suggested that they preferred
Flipkart, 38% said that they preferred Amazon while 13% said that they preferred
Snapdeal and only 3% people preferred Homeshop18.
Source influences
Newspaper 11
Television 6
Website 18
Friends and Relatives advice 5
Source influences
Newspaper
27%
Television
Website 15%
46%
Interpretation: -
The following graph shows that 46% of the people suggested that website is the
most influence source of information of them, 27% of them are influenced by
newspapers, 15% from television and 12% from friends and relatives advice.
3. How frequently do you use E-Commerce websites?
Frequency
Everyday 32
Several times a week 7
About once a week 1
Several times a month 0
Frequency
3%
18%
Everyday
Several times a week
About once a week
80%
Interpretation: -
The following graph shows that 80% of the people use e-commerce websites
everyday, 17% of them uses it several times a week, only 3% of them uses it
about once a week.
4. Which of the following features do you like about E-Commerce?
Particulars Frequency
Ease of searching the products 15
Discount 17
Cash on delivery 5
Customer service 3
Frequency
8%
13% Ease of searching the products
Discount
38%
Cash on delivery
Customer service
43%
Interpretation: -
The following graph shows that 45% use e-commerce for discount, 45% of them
uses it for ease of searching the products, 13% use it for cash on delivery and
only 3% of them uses it for customer service.
5. What kind of purchases you do on E-Commerce?
Purchasin
Particulars g Online
High value products like watches ,computers etc 3
Flowers 17
Cd's/videos 10
Travel bookings 6
Other 4
Frequency
10% 8%
High value products
Flowers
15% Cd's/videos
Travel bookings
Other
43%
25%
Interpretations:
According to this survey we find that 10% of the people purchase high value
products, 43% of the people purchase flowers, 15% of the people prefer it for
travel bookings, 25% of the people prefer it for videos and 7% used it for other
purposes.
6. What value you would be comfortable for online purchases?
Online
Particulars Purchasing
0-500 7
501 to 5000 15
5001 to 50000 14
Above 50000 4
Frequency
10% 18%
0-500
501-5000
5001 to 50000
Above 50000
35%
38%
Interpretation:
According to this survey we find that 17% of the people budget for online
purchases is between 0 to 500, 38% between 501 to 5000, 35% between 5001 to
50000 and 10% above 50000.
Frequency
35% Yes
No
65%
Interpretation:
According to this survey we find that 65% of the people are willing to recommend
Flipkart while 35% are not willing to recommend Flipkart.
8. More number of internet marketing players would enter to cater to the growth
in the next 5 years.
Frequency
Strongly agree 15
Agree 12
Neither agree nor disagree 6
Disagree 5
Strongly disagree 2
Frequency
5%
Strongly agree
13%
Agree
38% Neither agree nor disagree
Disagree
15% Strongly disagree
30%
Interpretation:
According to this survey we find that 37% of the people say that they are strongly
agree about internet marketing players would enter to cater to the growth in the
next 5 years, 30% of the people are agree, 15% of the people are neither agree
nor disagree, 13% of the people are disagree and 5% of the people are strongly
disagree.
FINDINGS AND INFERENCES
CONCLUSION
E- Shopping is a hot topic especially in these days of instant results. The reason
why e- Shopping has become so popular is because they provide three major
benefits to potential buyers:
RECOMMENDATION
Mailing List – To receive more information, the visitor can add his/her email
address to a list to receive automated emails. Often, this is called a
newsletter.
Site tour – The visitor can follow a tour through the website.
Site Map – This is a hierarchical diagram of the pages on the website, also
called a site overview, site index, or site map.
Introduction for First-Time Users – Visitors, who enter the site for the first
time, can surf to an introduction page. This page contains information about
“How to use the site most efficiently”
Chat – A main advantage of the Internet is its self-generating advantage. By
allowing visitors to interact with each other and with the site, they create
content for the site. The chat features allows a visitor to enter a real-time
conferencing between two or more users on the website.
All this will help build a relationship with the customer and it will ultimately help
the marketer to achieve his objectives.
Finally I would like to end by saying that even though the internet has
opened up a new avenue for reaching the end consumer; it is still very much an
open field. This is true as there is no fixed way or strategy for E-Shopping on the
net. It is still very much an arena where ingenuity and creative thinking very much
rule the roost. Thus E- Shopping as usual has not changed, i.e. it is still the same
usual self.
APPENDICES
QUESTIONNAIRES
1. Which is your most preferred e-commerce website?
i. Snapdeal
ii. Flipkart
iii. Amazon
iv. Homeshop18
BOOKS:
Kothari, C.R. Research Methodology, 3rd edition, 1997, Vikas Publishing House
Pvt. Ltd., New Delhi.
Varshney & Gupta; Marketing Management, Sultan Chand & Sons, 2005.
WEBSITES
www.flipkart.com
www.economictimes.com
www.ecnomist.com
www.techopedia.com