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“Measuring of customers’ satisfaction and

availability of several stuffs at the web


portal of Flipkart”

Submitted By: Internal Guide:


Satya Prakash Tripathi Prof. Rishi Taparia
PGDM (2013-2015) Dean Student
Affairs,
Roll No.28 INMANTEC, Ghaziabad

Integrated Academy of Management and


Technology Ghaziabad
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“Measuring of customers’ satisfaction and
availability of several stuffs at the web
portal of Flipkart”

Industry Oriented project submitted

In

Partial Fulfilment of the Requirements for the Award of Post


Graduate Diploma in Management (Recognized by AICTE, Ministry of
HRD, Govt. of India)

By

Satya Prakash Tripathi

PGDM (2013-2015)

Roll No.28

Integrated Academy of Management and


Technology Ghaziabad
TABLE OF CONTENTS

1. Abstract….......................................................................1
2. Company Introduction….............................................2-3
3. Industry overview of E- Commerce Company…..........4-6
4. Literature Review…....................................................7-10
5. Research Methodology….........................................11-15
 Purpose of the Study…................................................11
 Research Objectives…..................................................11
 Research Design…........................................................12
 Sampling & Sample Size….......................................13-14
 Data Requirements…....................................................14
 Research Tools…..........................................................14
 Hypothesis….................................................................15
6. Data Analysis and Interpretation….............................16-31
7. Limitations of the Study....................................................32
8. SWOT analysis of Flipkart….........................................33-34
9. Findings of the study...................................................35-36
10. Recommendations….....................................................37
11. Conclusion….................................................................38
12. Summary…...............................................................39-48
13. References..........................................49-50
14. Questionnaire......................................….51-55
DECLARATION

I hereby declare that the dissertation entitled “Measuring of


customers’ satisfaction and availability of several stuffs at the web
portal of Flipkart” is being submitted by me in partial fulfilment of
the requirements for the award of the Post Graduate Diploma in
Management (Marketing) to INMANTEC Business School, Ghaziabad is
a bonafied work carried out by me.

Date: Satya Prakash Tripathi


Place: PGDM (2013-2015)
Roll No.28
ACKNOWLEDGEMENT

While conducting the Industry Oriented project, innumerable people have


given me various suggestions and opinions while conducting the Industry
Oriented project. I have tried to incorporate all those suggestions which are
really relevant in preparing my final report. I think it is essential to thank all
those who have contributed and helped me throughout the duration of the
project.

I pay my immense gratitude to Prof. Rishi Taparia, Faculty of INMANTEC


Business School, Ghaziabad for his continuous and deliberate discussion on the
topic and indeterminable burden taken by him in helping me throughout
conducting the project.

I would also like to thank my friends who rendered their wholehearted co-
operation in the successful completion of the project work.

Finally, I am thankful to all the people who willingly responded to the


questionnaire and their contribution has been invaluable. This project would
not have been completed without their participation.

I am pleased to state that the whole report is just the presentation of the facts
that have been found during the project through different sources and its each
sentence is an exact representation of the information obtained and the
analysis thereof. I hope that I have manifested my sincere attempts to
represent all the information and other things to the best of my ability.

Satya Prakash
Tripathi PGDM
(2013-2015)
Roll No. 28
ABSTRACT
The present study is undertaken to understand the market potential and
customer’s satisfaction for an e-commerce company’s services with special
reference to Flipkart in Delhi region. I also found out the various attributes of
an e-commerce company and especially for Flipkart’s services on the basis of
which consumer chooses an e-commerce company for shopping. I also tested
the consumer’s satisfaction level towards Flipkart and also the availability of
the Products at the Web Portal. Now a day’s people go for a brand, not for a
product and therefore, this is the reason that the companies are looking for
brand building. From the customer point of view, there are some benefits of
using a brand. The study is conducted to find out the customer’s satisfaction
level in services of Flipkart in the market and to know the availability of the
products at the web Portal.
COMPANY
INTRODUCTION
Flipkart is India’s largest electronic commerce company, founded in 2007 by
Sachin Bansal and Binny Bansal. It operates exclusively in India, where it is
headquarter in Bangalore, Karnataka, though Flipkart is actually registered and
based in Singapore. Flipkart has launched its own product range under the
name “DigiFlip” with products such as tablets, USBs, and Laptop’s bags. Flipkart
has also launched its own range of personal healthcare and home appliances
under the brand “Citron”.

Legally, Flipkart is not an Indian company, since it is based in Singapore, and


majority of its shareholders and investors are foreigners. In May 2014, Flipkart
received $210 million from DST Global and in July it raised $1 billion led by
existing investors Tiger Global and South Africa's media group Naspers.

Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni
of the Indian Institute of Technology of Delhi. They had been working
for Amazon previously. The business was formally incorporated as a company
in October 2008 as Flipkart Online Services Pvt. Ltd. During its initial years,
Flipkart focused only on books, and soon as it expanded, it started offering
other products like electronic goods, air conditioners, air coolers, stationery
supplies and life style products and e-books.

The first product sold by them was the book Leaving Microsoft to Change the
World, bought by VVK Chandra from Andhra Pradesh. Flipkart now employs
more than 15000 people. Flipkart allows payment methods such as cash on
delivery, credit or debit card transactions, net banking, e-gift voucher and card
swipe on delivery.
Acquisitions
2010: We Read, a social book discovery tool.

2011: Mime360, a digital content platform company.

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.
Flipkart has categorically said that it will not be involved with the original site
and will not use the brand name.

2012: 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 have been diverted to Flipkart.

2014: Acquired Myntra.com in an estimated INR 2,000 crore deal.

Finance
Initially, the founders had spent 400,000 only for making website to set up the
business. Flipkart has later raised funding from venture capital funds Accel
India (US$1 million in 2009) and Tiger Global (US$10 million in 2010 and US$20
million in June 2011). On 24 August 2012, Flipkart announced the completion
of its 4th round of $150 million funding from MIH (part of Naspers Group) and
ICONIQ Capital. The company announced, on 10 July 2013, that it has raised an
additional $200 million from existing investors including Tiger Global,
Naspers, Accel Partners and Iconiq Capital.
Flipkart's reported sales were 40 million in FY 2008–2009, 200 million
in FY 2009–2010 and 750 million for FY 2010–2011. In FY 2011–2012, Flipkart
is set to cross the 5 billion (US$100 million) mark as Internet usage in the
country increases and people get accustomed to making purchases
online. Flipkart projects its sales to reach 10 billion by year 2014. On average,
Flipkart sells nearly 10 products per minute and is aiming at generating a
revenue of 50 billion (US$0.81 billion) by 2015.

On November 2012, Flipkart became one of the companies being probed for
alleged violations of FDI regulations of the Foreign Exchange Management Act,
1999.

In July 2013, Flipkart raised USD 160 million from private equity investors. In
October 2013, it was reported that Flipkart had raised an additional $160
million from new investors Dragoneer Investment Group, Morgan Stanley
Wealth Management, Sofina SA and Vulcan Inc. with participation from existing
investor Tiger Global. On 26 May 2014, Flipkart announced that it has raised
$210 million from Yuri Milner’s DST Global and its existing investors Tiger
Global, Naspers and Iconiq Capital. In early July 2014, it was also highly
speculated that Flipkart was in negotiations to raise at least $500 million, for a
likely listing in the US for 2016. On 29 July 2014, Flipkart announced that it
raised $1 billion from Tiger Global Management LLC, Accel Partners, and
Morgan Stanley Investment Management and a new investor Singapore
sovereign-wealth fund GIC.

On 6 October 2014, Flipkart sold products worth INR 650Crore in 10 hours in a


special one-day event - "The Big Billion Day", claiming they had created e-
commerce history, but their hard-won reputation for good customer service
suffered because of technical problems, and angry reactions on social media
from buyers disappointed with the pricing and availability of products. It
claimed to sell
a whopping 5 lakh mobile handsets, five-lakh clothes and shoes and 25,000
television sets within hours of opening its discounted sale at 8 AM. In
December 2014, after it received $700 million from another funding, Flipkart
had a market cap of $11 billion or Rs.66000 crore.

Flyte Digital Music Store


In October and November 2011, Flipkart acquired the websites Mime360.com
and Chakpak.com. Later, in February 2012, the company revealed its new Flyte
Digital Music Store. Flyte, a legal music download service in the vein
of iTunes and Amazon.com, offered DRM-free MP3 downloads. But it was shut
down on 17 June 2013 as paid song downloads did not get popular in India due
to the advent of free music streaming sites.

Exclusive Product Launches


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. This triggered an overwhelming response from online
shoppers and more than 20,000 units were sold within hours of launch on
Flipkart. After the Moto G successful debut launch, Flipkart was looking for a
long term tie up with Motorola Mobility. The Moto G success story, led to an
another exclusive tie up between Flipkart & Motorola Mobility,
who launched their flagship Android smartphone, the Moto X on 19 March
2014. After Moto G and Moto X, Flipkart invited the Moto E, the newest
member of Moto family which is even cheaper than Moto G on 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. The first batch
was sold out within 39 minutes on 22 July 2014, the second in 5 seconds on 29
July 2014. The sale was proceeded
on pre-registration mode where more than 150000 buyers booked for the 5
August 2014 sale. This got sold off in less than 2 seconds. Following
this Xiaomi Tech decided to sell 20,000 pieces in the next sale scheduled for 12
August 2014. On September 2, 2014 Flipkart held a flash sale of the budget
Android smartphone the Xiaomi Redmi 1S which was launched in India in July
2014. 40, 000 units priced at Rs 5999 each were sold within seconds. In the
second round of Xiaomi Redmi 1S sale held on Sept 9, 2014, 40,000 units were
sold within a span of 4.5 seconds, slightly longer than the first sale, which
lasted just 4.3 seconds. Third round of Redmi 1S sale held on Sept 16, 2014
with again 40,000 units sold in fastest of all 3.4 seconds. In the 4th round of
sale of Redmi 1S held on Sept 23, 2014, Flipkart put more units this time,
60,000 units go out of stock in 5.2 seconds. In the latest Flash sale held on Sept
30, 2014, once again 60,000 units go out of stock in 13.9 seconds. Redmi Note
in India exclusively through Flipkart. The first flash sale of 50,000 Redmi Note
devices held on December 2, 2014 and all the devices sold out in mere 6
seconds, just like all the earlier flash sales of Xiaomi held at Flipkart.

In- House Products


 In July 2014 Flipkart launched its own set of tablet, mobile phones
& Phablet. The first among these series of tablet phones was Digiflip Pro
XT 712 Tablet.
 In July 2014 Flipkart launched its first networking router, under its own
brand name named DigiFlip WR001 300 Mbit/s Wireless N Router.
 In September 2014 Flipkart launched its in-house home appliances and
personal healthcare brand Citron. The label includes a wide range of
cooking utilities and grooming products.
Awards and Recognition
 Co-Founder of Flipkart Sachin Bansal, 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 CNBC TV 18's 'India
Business Leader Awards 2012' (IBLA).
 Flipkart.com- got nominated for India MART Leaders of Tomorrow
Awards 2011.
 Flipkart.com, secured second position in the List of Cheapest Mobile
Store 2013, compiled by Indian e-commerce observer Zoutons.com.
INDUSTRY OVERVIEW
OF E-COMMERCE
COMPANY
India has an internet user base of about 250.2 million as of June
2014. The penetration of e-commerce is low compared to markets like the
United States and the United Kingdom but is growing at a much faster rate
with a large number of new entrants. The industry consensus is that growth is
at an inflection point.

Unique to India (and potentially to other developing countries), cash on


delivery is a preferred payment method. India has a vibrant cash economy as a
result of which 80% of Indian e-commerce tends to be Cash on Delivery.
However, COD may harm e-commerce business in India in the long run and
there is a need to make a shift towards online payment mechanisms. Similarly,
direct imports constitute a large component of online sales. Demand for
international consumer products (including long-tail items) is growing much
faster than in- country supply from authorised distributors and e-commerce
offerings.

Market Size and Growth


India's e-commerce market was worth about $3.8 billion in 2009, it went up to
$12.6 billion in 2013. In 2013, the e-retail market was worth US$ 2.3 billion.
About 70% of India's e-commerce market is travel related. India has close to 10
million online shoppers and is growing at an estimated 30% CAGR vis-à-vis a
global growth rate of 8–10%. Electronics and Apparel are the biggest
categories in terms of sales.

Key drivers in Indian e-commerce are:

 Increasing broadband Internet (growing at 20% MoM) and 3G penetration.


 Rising standards of living and a burgeoning, upwardly mobile middle
class with high disposable incomes
 Availability of much wider product range (including long tail and Direct
Imports) compared to what is available at brick and mortar retailers
 Busy lifestyles, urban traffic congestion and lack of time for offline
shopping
 Lower prices compared to brick and mortar retail driven
by disintermediation and reduced inventory and real estate costs
 Increased usage of online classified sites, with more consumer buying
and selling second-hand goods
 Evolution of the online marketplace model with sites
like Jabong.com, Flipkart, Snapdeal and Infibeam.

India's retail market is estimated at $470 billion in 2011 and is expected to


grow to $675 Bn by 2016 and $850 Bn by 2020, – estimated CAGR of 7%.
According to Forrester, the e-commerce market in India is set to grow the
fastest within the Asia-Pacific Region at a CAGR of over 57% “between” 2012–
16.

As per "India Goes Digital", a report by Avendus Capital, a leading Indian


Investment Bank specializing in digital media and technology sector, the Indian
e- commerce market is estimated at Rs 28,500 Crore ($6.3 billion) for the year
2011. Online travel constitutes a sizable portion (87%) of this market today.
Online travel market in India is expected to grow at a rate of 22% over the next
4 years and reach Rs 54,800 Crore ($12.2 billion) in size by 2015. Indian e-
tailing industry is estimated at Rs 3,600 crore (US$800 mn) in 2011 and
estimated to grow to Rs 53,000 Crore ($11.8 billion) in 2015.

On 7 March 2014 e-tailer Flipkart claimed it has hit $1 billion in sales, a feat it
has managed to achieve before its own target (2015).

Overall e-commerce market is expected to reach Rs 1, 07,800 crores (US$24


billion) by the year 2015 with both online travel and e-tailing contributing
equally.
Another big segment in e-commerce is mobile/DTH recharge with nearly 1 million
transactions daily by operator websites.

Closures
Though the sector has witnessed tremendous growth and is expected to grow,
a lot of e-commerce ventures have faced tremendous pressure to ensure cash
flows. But it has not worked out for all the e-commerce websites. Many of
them like Dhingana, Rock.in, and Seventy MM amongst others had to close
down.

Infrastructure
There are many hosting companies working in India but most of them are not
suitable for e-Commerce hosting purpose, because they are providing much
less secure and threat protected shared hosting. E-Commerce demand highly
secure, stable and protected hosting. Cyber security issues of e-commerce
business in India would be required to be managed by Indian e-commerce
stakeholders in the near future. In fact, Indian government is planning to
introduce cyber security breach disclosure norms in India very soon. Recently
Target Corporation suffered a cyber-attack that has put it under litigation
threat in multiple jurisdictions. Trends are changing with some of e-
Commerce companies starting to offer SaaS for hosting web stores with
minimal onetime costs.

There could be various methods of ecommerce marketing such as blog,


forums, search engines and some online advertising sites like Google
adwords and Adroll.

India has got its own version Cyber Monday known as Great Online Shopping
Festival in December 2012, when Google India partnered with e-commerce
companies including Flipkart, HomeShop18, Snapdeal, Indiatimes
shopping and Makemytrip. "Cyber Monday" is a term coined in the USA for the
Monday coming after Black Friday, which is the Friday after Thanksgiving Day.

In early June 2013, Amazon.com launched their Amazon India marketplace


without any marketing campaigns.In July, Amazon had said it will invest $2
billion (Rs 12,000 crore) in India to expand business, after its largest Indian rival
Flipkart announced $1 billion in funding.

Funding
As of 2012, most of the e-commerce companies are yet to start making money.
However, due to their growth prospects, many venture capital firms such as
Accel Partners have invested considerably. In one of the biggest fund
raising, Flipkart.com, in August 2012, raised about ₹822 crores. Entertainment
ticketing website BookMyShow.com raised ₹100 crores investment by Accel
Partners.

On 10 July 2013, Flipkart announced it had received $200 million from existing
investors Tiger Global, Naspers, Accel Partners, and ICONIQ Capital. New
investors making up the additional $160 million include Dragoneer Investment
Group, Morgan Stanley Wealth Management, Sofina, Vulcan Inc. and more
from Tiger Global.

Snapdeal - USD 50 million in 13 April. In February 2014, online fashion


retailer Myntra.com raised $50 million from a group of investors led by Premji
Invest, the investment company floated by Azim Premji, Chairman of Wipro.
May 2014 also witnessed an acquisition of Myntra by Flipkart reportedly for
₹2,000 crores. However, cyber law and e-commerce due diligence are still
being ignored by investors and financial institutions while investing in India.
In October 2014, KartRocket, an Indian e-commerce platform, announced
granting of a Series A round led by technology investor Nirvana Venture
Advisors and and 500 Startups, together with Tokyo-based Beenos, previously
known as Netprice.com.

Regulatory Violations and Unfair Practices


Legal issues of e-commerce in India are generally ignored by e-commerce
websites. This may change in the near future as foreign companies and e-
commerce portals would be required to register in India and comply with
Indian laws. E-Commerce websites dealing with nutraceuticals, Bitcoin,
Ayurvedic products, online pharmacies, online payment, online poker, etc are
violating laws of India.

Enforcement directorate (ED) of India has already initiated legal actions against
companies dealing with Bitcoins in India. Tax liability of foreign companies like
Google, Facebook, etc is also under consideration in India.

Similarly, illegal online sales of prescribed drugs by illegal online pharmacies of


India are also under scrutiny of regulatory authorities of India.
Myntra, Flipkart and many more e-commerce websites are under regulatory
scanner of ED of India for violating Indian laws and policies. US-based transport
application provider Uber Inc has also been questioned by the service tax
department of India.

The Federation of Publishers’ and Booksellers’ Associations in India (FPBAI) has


also questioned the predatory pricing tactics adopted by various e-commerce
websites in India. The Confederation of All India Traders (CAIT) has also
decided to approach the Competition Commission of India to oppose the
predatory pricing tactics of Indian e-commerce websites.
Demands for introducing suitable provisions to regulate taxation, anti-
competitive practices and predatory pricing of Indian and foreign e-commerce
websites have also been raised.
LITERATURE REVIEW
Review of related studies is essential for a well-designed research study. A
summary of writings of recognized authorities and of previous research
abstracts provide evidence that the researcher is familiar with what is already
known and what is still unknown and untested. The survey of related studies
implies reading and analysing the researches already done and reported in
dissertations, thesis, journals, abstracts, encyclopaedia, yearbooks and hand
books or in any other published form. Hence, we can say that review of related
studies provides direction to the researcher in putting a fence around the
research problem. For this research work, the researcher has reviewed the
researches done in the field of environment both in India and foreign
countries.

Importance of literature review:

 It indicates weather the evidence already available solves the problem


adequately without requiring further investigation. It avoids the
replication.
 It provides the sources for hypothesis. The researchers can formulate
research hypothesis on the basis of available studies.
 It suggests method, procedure sources of data and statistical techniques
appropriate to the solution of the problem.
 It helps in developing expertise and general scholarship of the
investigator in the area of investigated.
 It contributes towards the accurate knowledge of the evidence or
literature in one’s area of activity is Good Avenue towards making
oneself. Whether one is employed in an institute of higher learning or a
research organization, this knowledge is an asset.
 It provides some insight regarding strong points and limitations of the
previous studies.
 It enables the researcher to improve his own investigation.

The purpose of this review of studies is to explore past research conducted on


the impact of co-curricular activities on student performance and
achievements.

A customer is 'a person or organizational unit that plays a role in the


consummation of a transaction with the marketer or an entity'. (Sheath et al.,
1999). From this definition, customers of mobile phone companies could be
individuals, households and organizations. Even as these companies pay more
attention to meeting the needs of their individual customers, they need also to
make sure that the needs of their corporate customers are met as well.

Customer Satisfaction
Customers' needs desires and expectations'. Kotler (2003) also defines
satisfaction as 'a person's feeling of pleasure or disappointment resulting from
comparing a product's perceived performance (or outcome) in relation to his
or her expectations'. Satisfaction is an overall customer attitude towards a
service provider, or an emotional reaction to the difference between what the
customer anticipate and what they actually receive, as far as the fulfilment of
some need, goal and desire is concerned. (Hans mark and Albinsson 2004).

These definitions all point to the fact that every customer has in one way or
the other something he/she expects from his/her service providers. These
expectations have come into play because of a need that has to be satisfied.
These expectations are not the same as there are many customers. Kotler et al
(2002), posit that the customer gets dissatisfied if performance is below
expectation and vice versa. If performance goes beyond the expectation of the
customer, the customer is highly satisfied and delighted.
Motley, (2003), corroborates the idea of matching service performance with
customers' expectations. He notes that the mission of a business is the
creation of satisfied clients who tend to favour the organization through time
by patronizing the services being delivered by the business. He goes further to
mentions that, businesses can achieve this aim by understanding what satisfies
and dissatisfies their customers or clients.
Christopher, Payne, and Ballantyne (1993) have defined service quality as the
ability of the organization to meet or exceed customer expectations. Service
quality is believed to depend on the gap between expected and perceived
performance (Anderson, Fornell, & Lehmann, 1994).Gitlow, Oppenheim, and
Oppenheim (1989) also stated that service quality is the extent to which the
customer or users believe the service surpasses their needs and expectations.

Customer Satisfaction and Loyalty: The Relationship

The question which needs to be answered is whether there is any correlation


and/or relationship between customer satisfaction and customer loyalty.
Kotler (2003) put forward that there is no direct relationship between
customer satisfaction and customer loyalty. In other words, the relationship is
not proportional. The idea of customer satisfaction not directly linked with
customer loyalty is supported by Oechsli and Matt (2000). They hold the view
that; the fact that a customer is satisfied with the services of a business does
not guarantee his or her loyalty. They therefore see a sharp distinction
between customer satisfaction and loyalty. In their own words, 'satisfaction is a
fleeting emotional response to the quality of the client's last business
transaction'. 'Being satisfied at the moment is no guarantee of an ongoing
relationship'. Hokanson (1995) mentions the fact that a very satisfied customer
does not necessarily mean a loyal customer.
Winstanley and Martha (1997), have a different view about the relationship
between customer satisfaction and loyalty. They perceive a direct relationship
between satisfaction and loyalty. They claim that when customers are satisfied,
they concentrate their business with one business or service provider. Also
customers who are highly satisfied are much more likely to view their service
providers as their main relationship business.

Thus, Clarke (2001), has put forward the argument that, 'a business that
focuses exclusively on customer’s satisfaction runs the risk of becoming an
undifferentiated brand whose customers believe only that it meets the
minimum performance criteria.
RESEARCH
METHODOLOGY
Purpose of the Study
The main purpose of the study is to check customers’ satisfaction in the
services of Flipkart and also the product availability at the Web Portal of

Flipkart and making new customers for the company.

Managers are always curious about the position of their company making
position in the market which largely depends upon the company’s goodwill. In
order to maximize the sales and profit, company must have outstanding
satisfaction to the retailers, wholesaler, and customers as well. So market
survey of customer satisfaction and availability of products at the Web Portal
will provide better insight to the company’s market position of company as
well as compared to the competitors. It helps the organization to find out the
brand being sold most by the distributors along with their stocking and also
consumer satisfaction.

Research Objectives
 To determine and measure the satisfaction level in the services provided
by Flipkart among the customers.
 To measure the availability of several stuffs at the web portal of Flipkart.
 To aware the customers about the services and offers provided by
Flipkart with the special reference to Flipkart.
 To improve the availability of several stuffs at the web portal and
influence the customers to access Flipkart for shopping.
Research Design
The research was conducted to know the various factors of services offers by
Flipkart which affected the satisfaction level of customers and to measure the
availability of Products at the Web Portal of Flipkart.

Descriptive Research Design


Descriptive research is also called Statistical Research. The main goal of this
type of research is to describe the data and characteristics about what is being
studied. The idea behind this type of research is to study frequencies,
averages, and other statistical calculations. Although this research is highly
accurate, it does not gather the causes behind a situation. Descriptive research
is mainly done when a researcher wants to gain a better understanding of a
topic for example, a frozen ready meals company learns that there is a growing
demand for fresh ready meals but does not know much about the area of fresh
food and so has to carry out research in order to gain a better understanding. It
is quantitative and uses surveys and panels and also the use of probability
sampling. Descriptive research is the exploration of the existing certain
phenomena. The details of the facts won’t be known. The existing phenomena
facts are not known to the persons.

Primary Data
Method of data collection was done by the way of survey. Primary data was
collected through field survey with the help of structured questionnaire. The
questionnaire was filled by the consumers to know the satisfaction level of
Flipkart and attained by using also took the personal interview of the Delivery
Boys of Flipkart in Delhi region.
Secondary Data
Secondary data is the data which has already been collected by someone else
for the same, similar or for different purpose. The secondary data was also
collected through various researches and websites. The secondary data was
used for the purpose of preparing questionnaires, industry & company profiles.

Sampling and Sample Size


Sample Size & Sample Unit:
The sample size consists of 100 respondents from Delhi regions for knowing
the satisfaction level of customers. The sample of 100 respondents was taken
to know the satisfaction level towards Services offers by Flipkart.

Sample Selection Procedure:


Multistage sample selection technique is used. At first stage, I have used
random sampling technique to the places from where I have to select Delivery
Boys in Delhi region because it was not possible to select every delivery boys at
a time because of broad area of Delhi,
At second stage, we used convenience sampling technique to take responses
from the respondent because respondents are not easily available at the time
of meeting.

Target Respondents:
The target respondents were the users of Flipkart and Delivery Boys of Flipkart.
Data Requirements and Collection
Primary Source:
Data was collected by using questionnaire and by interviewing variety of
Delivery Boys of Flipkart directly.

Secondary Source:
Secondary source of data includes: published articles, research papers,
published books, different research work done previously,
Relevant papers or journals, magazine etc. and also used other reports from
Internet, as well as from the websites of Flipkart.

Research Tools
The data was processed and analysed by using computer aided tools such as
MS- Excel and SPSS software.
Hypothesis of the Study
Hypothesis is a proposition about the nature of the world that makes
predictions about the results of an experiment. For a hypothesis to be well
formed there must be some experiment whose outcome could prove it to be
false.
In this research report we are finding some of the outcomes on the basis of
prediction and assumptions. For this purpose we formed some hypothesis:

H1: There is no significant difference between the gender of the respondents


and the length of Flipkart being used.

H2: There is no significant difference between in overall satisfaction level of


Flipkart consumers on the basis of the behaviour of delivery boys of Flipkart.

H3: There is no significant difference between Flipkart’s price strategies on the


basis of gender.

H4: There is no significant difference between in overall satisfaction level of


Flipkart consumers on the basis of Flipkart’s after sales service.
DATA ANALYSIS AND
INTERPRETATION
Result of Hypothesis Testing
H1: There is no significant difference between the gender of the respondents
and the length of Flipkart being used.
ANOVA

Gender of the respondents

Sum of Squares Df Mean Square F Sig.

Between Groups .530 3 .177 . .557


695
Within Groups 24.380 96 .254
Total 24.910 99

INTERPETATION: From the above table, it is seen that the significance value is
0.557 which is higher than p value i.e. 0.05. Therefore, the hypothesis is
rejected which means that there is no significant difference between the
gender and the length of Flipkart being used.

H2: There is no significant difference between in overall satisfaction level of


Flipkart consumers on the basis of the behaviour of delivery boys of Flipkart.

ANOVA

How is the behaviour of delivery boys

Sum of Squares Df Mean Square F Sig.

Between Groups 1.343 4 .336 2.01 .098


6
Within Groups 15.817 95 .166
Total 17.160 99

INTERPETATION: From the above table, it is seen that the significance value is
.098 which is higher than p value i.e. 0.05. Therefore, the hypothesis is rejected
which means that there is no significant difference between an overall
satisfaction level of Flipkart consumers on the basis of the behaviour of
delivery boys of Flipkart.
H3: There is no significant difference between Flipkart’s price strategies on the
basis of gender.

ANOVA

Price strategy of Flipkart

Sum of Squares Df Mean Square F Sig.

Between Groups .071 1 .071 . .599


279
Within Groups 24.839 98 .253
Total 24.910 99

INTERPETATION: From the above table, it is seen that the significance value is
.599 which is higher than p value i.e. 0.05. Therefore, the hypothesis is rejected
which means that there is no significant difference between in Flipkart’s price
strategy on the basis gender.

H4: There is no significant difference between in overall satisfaction level of


Flipkart consumers on the basis of Flipkart’s after sales service.

ANOVA

How do they rate after sales service of flipkart

Sum of Squares Df Mean Square F Sig.

Between Groups .754 4 .188 . .555


758
Within Groups 23.606 95 .248
Total 24.360 99

INTERPETATION: From the above table, it is seen that the significance value is
0.555 which is higher than p value i.e. 0.05. Therefore, the hypothesis is
rejected which means that there is no significant difference between in overall
satisfaction level of Flipkart consumers on the basis of after sales service of
Flipkart.
Data Analysis and Interpretation

On the basis of Gender

Gender of the respondents

Cumulative
Frequency Percent Valid Percent Percent

Valid Male 47 47.0 47.0 47.0

Female 53 53.0 53.0 100.0

Total 100 100.0 100.0

INTERPETATION: Among all 100 respondents, there were 47.00% males and
53.00% females.
Does the respondent access any website for Online Shopping?

Do they access any website for online shopping

Cumulative
Frequency Percent Valid Percent Percent

Valid Yes 100 100. 100. 100.0


0 0

INTERPETATION: Among all 100 respondents, there were 100.00% respondents


accessing websites for online shopping.
On the basis which website does the respondent access?

which company do they access for online shopping

Cumulative
Frequency Percent Valid Percent Percent

Valid Flipkart 100 100. 100. 100.0


0 0

INTERPETATION: Among all 100 respondents, there were 100.00% respondents


accessing Flipkart for online shopping.
How the respondents did came to know about Flipkart?

how did they come to know about Flipkart

Cumulative
Frequency Percent Valid Percent Percent

Valid TV Ads 20 20.0 20.0 20.0

News Paper Ads 42 42.0 42.0 62.0

Hoardings 26 26.0 26.0 88.0

Internet Ads 12 12.0 12.0 100.0

Total 100 100.0 100.0

INTERPETATION: Among all 100 respondents there were 12.00% knew threw
Internet Ads, 20.00% respondents knew threw TV Ads, 26.00% knew threw
hoardings and 42.00% respondents knew threw News Paper Ads.
How long the respondent accessing Flipkart?

How long they accessing Flipkart

Cumulative
Frequency Percent Valid Percent Percent

Valid <1 Months 7 7.0 7.0 7.0

2-6 Months 12 12.0 12.0 19.0

7-12 Months 47 47.0 47.0 66.0

>12 Months 34 34.0 34.0 100.0

Total 100 100.0 100.0

INTERPETATION: Among all 100 respondents there were 7.00% using from
less than 1 months, 12.00% respondents using from 2 to 6 months, 47.00%
using from 7 to 12 months and 34.00% respondents using from more than a
year.
Did the respondent get any offer from Flipkart?

Did they get any offer from Flipkart

Cumulative
Frequency Percent Valid Percent Percent

Valid Yes 63 63.0 63.0 63.0

No 37 37.0 37.0 100.0

Total 100 100.0 100.0

INTERPETATION: Among all 100 respondents there were 35.00% respondents


got some offer from Pureit and 65.00% respondents did not get any offer from
Purerit.
Do you agree on Flipkart’s claim that it sells 100% genuine product?

Do you agree on Flipkart's claim of Ganuinity

Cumulative
Frequency Percent Valid Percent Percent

Valid Yes 80 80.0 80.0 80.0

No 20 20.0 20.0 100.0

Total 100 100.0 100.0

INTERPETATION: Among all 100 respondents there were 80.00% respondents


said that “YES”, 20.00% respondents said “NO” that Flipkart’s all products are
100% genuine.
What are the views of respondents towards the service of Flipkart?

Respondents’ view on the Services

Cumulative
Frequency Percent Valid Percent Percent

Valid Good 74 74.0 74.0 74.0

Poor 26 26.0 26.0 100.0

Total 100 100.0 100.0

INTERPETATION: Among all 100 respondents there were 74.00% respondents


said that “GOOD” and 26.00% respondents said “BAD”.
What are the views of respondents towards offers provided by
Flipkart?

Respondent's view on the Offers

Cumulative
Frequency Percent Valid Percent Percent

Valid Satisfied 79 79.0 79.0 79.0

Not Satisfied 21 21.0 21.0 100.0

Total 100 100.0 100.0

INTERPETATION: Among all 100 respondents there were 79.00% respondents


said that they are Satisfied and 21.00% respondents said that they are not
Satisfied in the respect of test, order and clarity of water which they get from
Pureit water purifier.
Do the respondents believe that at Flipkart’s web portal all several
stuffs are always available?

Do the respondent believe that at Flipkart’s web portal all several stuffs are
always available

Cumulative
Frequency Percent Valid Percent Percent

Valid Yes 33 33.0 33.0 33.0

No 19 19.0 19.0 52.0

Can't Say 48 48.0 48.0 100.0

Total 100 100.0 100.0

INTERPETATION: Among all 100 respondents there were 33.00% respondents


said that “YES”, 19.00% respondents said “NO” and only 48.00% respondents
said “CAN’T SAY”.
Are the respondents satisfied with the behaviour of delivery boys?

How is the behavior of delivery boys

Cumulative
Frequency Percent Valid Percent Percent

Valid Satisfied 78 78.0 78.0 78.0

Not Satisfied 22 22.0 22.0 100.0

Total 100 100.0 100.0

INTERPETATION: Among all 100 respondents there were 78.00% respondents


said that they were “Satisfied” and 22.00% respondents were “Not Satisfied” in
the respect of the behavior of delivery boys.
Are you satisfied with the after sales service of Flipkart?

How do they rate after sales service of flipkart

Cumulative
Frequency Percent Valid Percent Percent

Valid Satisfied 42 42.0 42.0 42.0

Not Satisfied 58 58.0 58.0 100.0

Total 100 100.0 100.0

INTERPETATION: Among all 100 respondents there were 42.00% respondents


said that they were “Satisfied” and 58.00% respondents were “Not Satisfied” in
the respect of the after sales services.
Are you satisfied with the pricing Strategy of Flipkart?

What is the price strategy Flipkart follows

Cumulative
Frequency Percent Valid Percent Percent

Valid Satisfied 44 44.0 44.0 44.0

Not Satisfied 56 56.0 56.0 100.0

Total 100 100.0 100.0

INTERPETATION: Among all 100 respondents there were 44.00% respondents


said that they were “Satisfied” and 56.00% respondents were “Not Satisfied” in
the respect of price strategy of Flipkart.
The overall Satisfaction of the respondents towards Flipkart?

The overall satisfaction level of the respondent towards Flipkart

Cumulative
Frequency Percent Valid Percent Percent

Valid Highly Satisfied 48 48.0 48.0 48.0

Satisfied 23 23.0 23.0 71.0

Neither Satisfied
16 16.0 16.0 87.0
nor Dissatisfied

Dissatisfied 10 10.0 10.0 97.0

Highly Dissatisfied 3 3.0 3.0 100.0

Total 100 100.0 100.0

INTERPETATION: Among all 100 respondents there were 48.00% respondents


were Highly Satisfied, 23.00% respondents were Satisfied, 16.00% were Neither
Satisfied nor Dissatisfied, 10.00% Dissatisfied and 3.00% respondents were
Highly Dissatisfied in respect of overall Satisfaction towards Flipkart.
LIMITATIONS OF THE
STUDY
Almost attention was taken to eliminate any kind of biasness &
misinterpretation in the study to get optimum result, even though the
following limitations could have certain degree of impact on the findings.

 The study was confined to Delhi region only which may not represent
the real picture of the entire Delhi.

 Many Delivery Boys were not interested to participate in this


research study.

 Data collected about satisfaction & awareness level may not


represent the real picture.

 My Study is confined only 100 respondents.

 Lack of the research experience.

 The major problem is to find out the consumers of Flipkart as my study


is to find out the satisfaction level of the services provides by Flipkart to
its’ consumers.

 Many consumers were also not get ready to participate in the


research study.
SWOT ANALYSIS OF FLIPKART
STRENGTH
 Strong Brand Value.
 Own Logistic arm.
 Own online payment gateway solution.
 Own market place model.
 Inventory management.

 Customer Service.

 Supplier network/relation.

WEAKNESS
 Investors driven Organization or lack of Independent board.
 Secretive and Political culture.
 Excessive focus on expanding customer base rather than pulling profits.
 Global reach.

OPPORTUNITY
 Online fashion and apparel business.
 Opportunity is always there because of a strong brand name.
 Providing logistics services to its competitors.
 Growth in online retail sector in India.
 Enter new untapped global markets.

THREAT
 From competitors like Amazon, Snapdeal, Infibeam, Indiaplaza,
Homeshop18 etc.
 Less usage/preference of online buying.
 Low Internet penetration.
FINDINGS OF THE STUDY
 Most of the respondent were not satisfied with the after sales services
of Flipkart.
 74% consumers were satisfied with the service and 24% were not
satisfied with the service of Flipkart.
 33% consumers believed that all several stuffs always available at
Flipkart’s web portal 19% were not belived and 48% could not say
anything about the same.
 78% of the respondents were satisfied with the behaviour of delivery
boys 22% were not about the same.
 20% consumers came to know about Flipkart from TV ads, 42% from
Newspaper Ads, 26% from hoardings, and 12% from Internet ads.
 Sales of premium products at Flipkart is not better.
 Some of the delivery boy does not wear the Flipkart T-Shirts which does
not give the feeling of belongingness and even do not wear their identity
card which shows the sign off.
 Most of the consumers think that prices of the products at Flipkart is
higher than the other shopping portals.
 79% respondents were satisfied with the offers provided by Flipkart
remains not satisfied about the same.
RECOMMENDATIONS
 Company should always check the availability of the various products at
its web portal.
 Company should change their sales strategy as the sales of premium
products is not that good.
 From the website the company should remove the information of the
product which they have discontinued selling as it gives the wrong
information to their customers.
 Delivery boys should try to more satisfy the customers because they are
only the person who face the customers on the behalf of the company.
 Delivery boys should always wear companies T-Shirt as well as identity
card during working time.
 Company should improve their after sales services which can boost the
sales of the company.
 Company should use more online media to promote their website.
 The company should use some better mode of technology which can
provide more better service to the customers.
CONCLUSION
I have learned a lot of things while doing this survey like consumer psychology-
how they behave, what they want, what they need, how they think while
collecting the information about Flipkart and also observe the behaviour of
Delivery Boys, how they handle the customers, how they communicate with
the customers, etc.

Flipkart has a wide category of Stuffs some are core products and some are the
premium products. Mostly customers know more about core products in
comparison to premium products and this may be due to lack of advertising or
marketing of the premium range of products.

The study was conducted in Delhi region. After the survey was done I came to
know that the consumers are not using online shopping only for the easiest
way to get the stuffs but also for cheapest in comparison to the retailers.

Consumers have very good experience with Flipkart 48% respondents were
highly satisfied, 23% respondents were satisfied which sound very good result.

It was found apart from the price and quality of the products offered by flipkart
is not the best online shopping website as it suffers at various other points in
the survey. Most of the respondents have rated it as just above and average.
The research always reflects the truth.

No doubt Flipkart has very good quality product and availability at the web
portal. Many consumer feels delightful with the Flipkart services and is
satisfied with Flipkart after sales service.
SUMMARY
Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni
of the Indian Institute of Technology of Delhi. They had been working for
Amazon previously. The business was formally incorporated as a company in
October 2008 as Flipkart Online Services Pvt. Ltd. During its initial years,
Flipkart focused only on books, and soon as it expanded, it started offering
other products like electronic goods, air conditioners, air coolers, stationery
supplies and life style products and e-books.

The first product sold by them was the book Leaving Microsoft to Change the
World, bought by VVK Chandra from Andhra Pradesh. Flipkart now employs
more than 15000 people. Flipkart allows payment methods such as cash on
delivery, credit or debit card transactions, net banking, e-gift voucher and card
swipe on delivery.

Legally, Flipkart is not an Indian company, since it is based in Singapore, and


majority of its shareholders and investors are foreigners. In May 2014, Flipkart
received $210 million from DST Global and in July it raised $1 billion led by
existing investors Tiger Global and South Africa's media group Naspers.

COMPANY INTRODUCTION
Flipkart is India’s largest electronic commerce company, founded in 2007 by
Sachin Bansal and Binny Bansal. It operates exclusively in India, where it is
headquarter in Bangalore, Karnataka, though Flipkart is actually registered and
based in Singapore. Flipkart has launched its own product range under the
name “DigiFlip” with products such as tablets, USBs, and Laptop’s bags. Flipkart
has also launched its own range of personal healthcare and home appliances
under the brand “Citron”.
Legally, Flipkart is not an Indian company, since it is based in Singapore, and
majority of its shareholders and investors are foreigners. In May 2014, Flipkart
received $210 million from DST Global and in July it raised $1 billion led by
existing investors Tiger Global and South Africa's media group Naspers.

Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni
of the Indian Institute of Technology of Delhi. They had been working
for Amazon previously. The business was formally incorporated as a company
in October 2008 as Flipkart Online Services Pvt. Ltd. During its initial years,
Flipkart focused only on books, and soon as it expanded, it started offering
other products like electronic goods, air conditioners, air coolers, stationery
supplies and life style products and e-books.

The first product sold by them was the book Leaving Microsoft to Change the
World, bought by VVK Chandra from Andhra Pradesh. Flipkart now employs
more than 15000 people. Flipkart allows payment methods such as cash on
delivery, credit or debit card transactions, net banking, e-gift voucher and card
swipe on delivery.

Acquisitions
2010: We Read, a social book discovery tool.

2011: Mime360, a digital content platform company.

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.
Flipkart has categorically said that it will not be involved with the original site
and will not use the brand name.
2012: 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 have been diverted to Flipkart.

2014: Acquired Myntra.com in an estimated INR 2,000 crore deal.

Finance
Initially, the founders had spent 400,000 only for making website to set up the
business. Flipkart has later raised funding from venture capital funds Accel
India (US$1 million in 2009) and Tiger Global (US$10 million in 2010 and US$20
million in June 2011). On 24 August 2012, Flipkart announced the completion
of its 4th round of $150 million funding from MIH (part of Naspers Group) and
ICONIQ Capital. The company announced, on 10 July 2013, that it has raised an
additional $200 million from existing investors including Tiger Global,
Naspers, Accel Partners and Iconiq Capital.

Flipkart's reported sales were 40 million in FY 2008–2009, 200 million


in FY 2009–2010 and 750 million for FY 2010–2011. In FY 2011–2012, Flipkart
is set to cross the 5 billion (US$100 million) mark as Internet usage in the
country increases and people get accustomed to making purchases
online. Flipkart projects its sales to reach 10 billion by year 2014. On average,
Flipkart sells nearly 10 products per minute and is aiming at generating a
revenue of 50 billion (US$0.81 billion) by 2015.

On November 2012, Flipkart became one of the companies being probed for
alleged violations of FDI regulations of the Foreign Exchange Management Act,
1999.

In July 2013, Flipkart raised USD 160 million from private equity investors. In
October 2013, it was reported that Flipkart had raised an additional $160
million
from new investors Dragoneer Investment Group, Morgan Stanley Wealth
Management, Sofina SA and Vulcan Inc. with participation from existing
investor Tiger Global. On 26 May 2014, Flipkart announced that it has raised
$210 million from Yuri Milner’s DST Global and its existing investors Tiger
Global, Naspers and Iconiq Capital. In early July 2014, it was also highly
speculated that Flipkart was in negotiations to raise at least $500 million, for a
likely listing in the US for 2016. On 29 July 2014, Flipkart announced that it
raised $1 billion from Tiger Global Management LLC, Accel Partners, and
Morgan Stanley Investment Management and a new investor Singapore
sovereign-wealth fund GIC.

On 6 October 2014, Flipkart sold products worth INR 650Crore in 10 hours in a


special one-day event - "The Big Billion Day", claiming they had created e-
commerce history, but their hard-won reputation for good customer service
suffered because of technical problems, and angry reactions on social media
from buyers disappointed with the pricing and availability of products. It
claimed to sell a whopping 5 lakh mobile handsets, five-lakh clothes and shoes
and 25,000 television sets within hours of opening its discounted sale at 8 AM.
In December 2014, after it received $700 million from another funding, Flipkart
had a market cap of $11 billion or Rs.66000 crore.

Flyte Digital Music Store


In October and November 2011, Flipkart acquired the websites Mime360.com
and Chakpak.com. Later, in February 2012, the company revealed its new Flyte
Digital Music Store. Flyte, a legal music download service in the vein
of iTunes and Amazon.com, offered DRM-free MP3 downloads. But it was shut
down on 17 June 2013 as paid song downloads did not get popular in India due
to the advent of free music streaming sites.
Exclusive Product Launches
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. This triggered an overwhelming response from online
shoppers and more than 20,000 units were sold within hours of launch on
Flipkart. After the Moto G successful debut launch, Flipkart was looking for a
long term tie up with Motorola Mobility. The Moto G success story, led to an
another exclusive tie up between Flipkart & Motorola Mobility,
who launched their flagship Android smartphone, the Moto X on 19 March
2014. After Moto G and Moto X, Flipkart invited the Moto E, the newest
member of Moto family which is even cheaper than Moto G on 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. The first batch
was sold out within 39 minutes on 22 July 2014, the second in 5 seconds on 29
July 2014. The sale was proceeded on pre-registration mode where more than
150000 buyers booked for the 5 August 2014 sale. This got sold off in less
than 2 seconds. Following this Xiaomi Tech decided to sell 20,000 pieces in
the next sale scheduled for 12 August 2014. On September 2, 2014 Flipkart
held a flash sale of the budget Android smartphone the Xiaomi Redmi 1S which
was launched in India in July 2014. 40, 000 units priced at Rs 5999 each were
sold within seconds. In the second round of Xiaomi Redmi 1S sale held on Sept
9, 2014, 40,000 units were sold within a span of 4.5 seconds, slightly longer
than the first sale, which lasted just 4.3 seconds. Third round of Redmi 1S sale
held on Sept 16, 2014 with again 40,000 units sold in fastest of all 3.4 seconds.
In the 4th round of sale of Redmi 1S held on Sept 23, 2014, Flipkart put more
units this time, 60,000 units go out of stock in 5.2 seconds. In the latest Flash
sale held on Sept 30, 2014, once again
60,000 units go out of stock in 13.9 seconds. Redmi Note in India exclusively
through Flipkart. The first flash sale of 50,000 Redmi Note devices held on
December 2, 2014 and all the devices sold out in mere 6 seconds, just like all
the earlier flash sales of Xiaomi held at Flipkart.

In- House Products


 In July 2014 Flipkart launched its own set of tablet, mobile phones
& Phablet. The first among these series of tablet phones was Digiflip Pro
XT 712 Tablet.
 In July 2014 Flipkart launched its first networking router, under its own
brand name named DigiFlip WR001 300 Mbit/s Wireless N Router.
 In September 2014 Flipkart launched its in-house home appliances and
personal healthcare brand Citron. The label includes a wide range of
cooking utilities and grooming products.

Awards and Recognition


 Co-Founder of Flipkart Sachin Bansal, 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 CNBC TV 18's 'India
Business Leader Awards 2012' (IBLA).
 Flipkart.com- got nominated for India MART Leaders of Tomorrow
Awards 2011.
 Flipkart.com, secured second position in the List of Cheapest Mobile
Store 2013, compiled by Indian e-commerce observer Zoutons.com.
INDUSTRY OVERVIEW OF E-COMMERCE
COMPANY
India has an internet user base of about 250.2 million as of June
2014. The penetration of e-commerce is low compared to markets like the
United States and the United Kingdom but is growing at a much faster rate
with a large number of new entrants. The industry consensus is that growth is
at an inflection point.

Unique to India (and potentially to other developing countries), cash on


delivery is a preferred payment method. India has a vibrant cash economy as a
result of which 80% of Indian e-commerce tends to be Cash on Delivery.
However, COD may harm e-commerce business in India in the long run and
there is a need to make a shift towards online payment mechanisms. Similarly,
direct imports constitute a large component of online sales. Demand for
international consumer products (including long-tail items) is growing much
faster than in- country supply from authorised distributors and e-commerce
offerings.

Market Size and Growth


India's e-commerce market was worth about $3.8 billion in 2009, it went up to
$12.6 billion in 2013. In 2013, the e-retail market was worth US$ 2.3 billion.
About 70% of India's e-commerce market is travel related. India has close to 10
million online shoppers and is growing at an estimated 30% CAGR vis-à-vis a
global growth rate of 8–10%. Electronics and Apparel are the biggest
categories in terms of sales.

Key drivers in Indian e-commerce are:


 Increasing broadband Internet (growing at 20% MoM) and 3G penetration.
 Rising standards of living and a burgeoning, upwardly mobile middle
class with high disposable incomes
 Availability of much wider product range (including long tail and Direct
Imports) compared to what is available at brick and mortar retailers
 Busy lifestyles, urban traffic congestion and lack of time for offline
shopping
 Lower prices compared to brick and mortar retail driven
by disintermediation and reduced inventory and real estate costs
 Increased usage of online classified sites, with more consumer buying
and selling second-hand goods
 Evolution of the online marketplace model with sites
like Jabong.com, Flipkart, Snapdeal and Infibeam.

India's retail market is estimated at $470 billion in 2011 and is expected to


grow to $675 Bn by 2016 and $850 Bn by 2020, – estimated CAGR of 7%.
According to Forrester, the e-commerce market in India is set to grow the
fastest within the Asia-Pacific Region at a CAGR of over 57% “between” 2012–
16.

As per "India Goes Digital", a report by Avendus Capital, a leading Indian


Investment Bank specializing in digital media and technology sector, the Indian
e- commerce market is estimated at Rs 28,500 Crore ($6.3 billion) for the year
2011. Online travel constitutes a sizable portion (87%) of this market today.
Online travel market in India is expected to grow at a rate of 22% over the next
4 years and reach Rs 54,800 Crore ($12.2 billion) in size by 2015. Indian e-
tailing industry is estimated at Rs 3,600 crore (US$800 mn) in 2011 and
estimated to grow to Rs 53,000 Crore ($11.8 billion) in 2015.
On 7 March 2014 e-tailer Flipkart claimed it has hit $1 billion in sales, a feat it
has managed to achieve before its own target (2015).

Overall e-commerce market is expected to reach Rs 1, 07,800 crores (US$24


billion) by the year 2015 with both online travel and e-tailing contributing
equally. Another big segment in e-commerce is mobile/DTH recharge with
nearly 1 million transactions daily by operator websites.

Closures
Though the sector has witnessed tremendous growth and is expected to grow,
a lot of e-commerce ventures have faced tremendous pressure to ensure cash
flows. But it has not worked out for all the e-commerce websites. Many of
them like Dhingana, Rock.in, and Seventy MM amongst others had to close
down.

Infrastructure
There are many hosting companies working in India but most of them are not
suitable for e-Commerce hosting purpose, because they are providing much
less secure and threat protected shared hosting. E-Commerce demand highly
secure, stable and protected hosting. Cyber security issues of e-commerce
business in India would be required to be managed by Indian e-commerce
stakeholders in the near future. In fact, Indian government is planning to
introduce cyber security breach disclosure norms in India very soon. Recently
Target Corporation suffered a cyber-attack that has put it under litigation
threat in multiple jurisdictions. Trends are changing with some of e-
Commerce companies starting to offer SaaS for hosting web stores with
minimal onetime costs.
There could be various methods of ecommerce marketing such as blog,
forums, search engines and some online advertising sites like Google
adwords and Adroll.

India has got its own version Cyber Monday known as Great Online Shopping
Festival in December 2012, when Google India partnered with e-commerce
companies including Flipkart, HomeShop18, Snapdeal, Indiatimes
shopping and Makemytrip. "Cyber Monday" is a term coined in the USA for the
Monday coming after Black Friday, which is the Friday after Thanksgiving Day.

In early June 2013, Amazon.com launched their Amazon India marketplace


without any marketing campaigns.In July, Amazon had said it will invest $2
billion (Rs 12,000 crore) in India to expand business, after its largest Indian rival
Flipkart announced $1 billion in funding.

Funding
As of 2012, most of the e-commerce companies are yet to start making money.
However, due to their growth prospects, many venture capital firms such as
Accel Partners have invested considerably. In one of the biggest fund
raising, Flipkart.com, in August 2012, raised about ₹822 crores. Entertainment
ticketing website BookMyShow.com raised ₹100 crores investment by Accel
Partners.

On 10 July 2013, Flipkart announced it had received $200 million from existing
investors Tiger Global, Naspers, Accel Partners, and ICONIQ Capital. New
investors making up the additional $160 million include Dragoneer Investment
Group, Morgan Stanley Wealth Management, Sofina, Vulcan Inc. and more
from Tiger Global.
Snapdeal - USD 50 million in 13 April. In February 2014, online fashion
retailer Myntra.com raised $50 million from a group of investors led by Premji
Invest, the investment company floated by Azim Premji, Chairman of Wipro.
May 2014 also witnessed an acquisition of Myntra by Flipkart reportedly for
₹2,000 crores. However, cyber law and e-commerce due diligence are still
being ignored by investors and financial institutions while investing in India.

In October 2014, KartRocket, an Indian e-commerce platform, announced


granting of a Series A round led by technology investor Nirvana Venture
Advisors and and 500 Startups, together with Tokyo-based Beenos, previously
known as Netprice.com.

Regulatory Violations and Unfair Practices


Legal issues of e-commerce in India are generally ignored by e-commerce
websites. This may change in the near future as foreign companies and e-
commerce portals would be required to register in India and comply with
Indian laws. E-Commerce websites dealing with nutraceuticals, Bitcoin,
Ayurvedic products, online pharmacies, online payment, online poker, etc are
violating laws of India.

Enforcement directorate (ED) of India has already initiated legal actions against
companies dealing with Bitcoins in India. Tax liability of foreign companies like
Google, Facebook, etc is also under consideration in India.

Similarly, illegal online sales of prescribed drugs by illegal online pharmacies of


India are also under scrutiny of regulatory authorities of India.
Myntra, Flipkart and many more e-commerce websites are under regulatory
scanner of ED of India for violating Indian laws and policies. US-based transport
application provider Uber Inc has also been questioned by the service tax
department of India.

The Federation of Publishers’ and Booksellers’ Associations in India (FPBAI) has


also questioned the predatory pricing tactics adopted by various e-commerce
websites in India. The Confederation of All India Traders (CAIT) has also
decided to approach the Competition Commission of India to oppose the
predatory pricing tactics of Indian e-commerce websites.

Demands for introducing suitable provisions to regulate taxation, anti-


competitive practices and predatory pricing of Indian and foreign e-commerce
websites have also been raised.

RESEARCH METHODOLOGY
Purpose of the Study
The main purpose of the study is to check customers’ satisfaction in the
services of Flipkart and also the product availability at the Web Portal of

Flipkart and making new customers for the company.

Managers are always curious about the position of their company making
position in the market which largely depends upon the company’s goodwill. In
order to maximize the sales and profit, company must have outstanding
satisfaction to the retailers, wholesaler, and customers as well. So market
survey of customer satisfaction and availability of products at the Web Portal
will provide better insight to the company’s market position of company as
well as compared to the competitors. It helps the organization to find out
the brand
being sold most by the distributors along with their stocking and also consumer
satisfaction.

Research Objectives
 To determine and measure the satisfaction level in the services provided

by Flipkart among the customers.


 To measure the availability of several stuffs at the web portal of Flipkart.

 To aware the customers about the services and offers provided by

Flipkart with the special reference to Flipkart.


 To improve the availability of several stuffs at the web portal and

influence the customers to access Flipkart for shopping.

Research Design
The research was conducted to know the various factors of services offers by
Flipkart which affected the satisfaction level of customers and to measure the
availability of Products at the Web Portal of Flipkart.

Descriptive Research Design


Descriptive research is also called Statistical Research. The main goal of this
type of research is to describe the data and characteristics about what is being
studied. The idea behind this type of research is to study frequencies,
averages, and other statistical calculations. Although this research is highly
accurate, it does not gather the causes behind a situation. Descriptive research
is mainly done when a researcher wants to gain a better understanding of a
topic for example, a frozen ready meals company learns that there is a growing
demand for fresh ready meals but does not know much about the area of fresh
food and so has to
carry out research in order to gain a better understanding. It is quantitative
and uses surveys and panels and also the use of probability sampling.
Descriptive research is the exploration of the existing certain phenomena. The
details of the facts won’t be known. The existing phenomena facts are not
known to the persons.

Primary Data
Method of data collection was done by the way of survey. Primary data was
collected through field survey with the help of structured questionnaire. The
questionnaire was filled by the consumers to know the satisfaction level of
Flipkart and attained by using also took the personal interview to the Delivery
Boys of Flipkart in Delhi region.

Secondary Data
Secondary data is the data which has already been collected by someone else
for the same, similar or for different purpose. The secondary data was also
collected through various researches and websites. The secondary data was
used for the purpose of preparing questionnaires, industry & company profiles.

Sampling and Sample Size


Sample Size & Sample Unit:
The sample size consists of 100 respondents from Delhi regions for knowing
the satisfaction level of consumers. The sample of 100 respondents was taken
to know the satisfaction level towards Services offers by Flipkart.
Sample Selection Procedure:
Multistage sample selection technique is used. At first stage, I have used
random sampling technique to the places from where I have to select Delivery
Boys in Delhi region because it was not possible to select every delivery boys at
a time because of broad area of Delhi,
At second stage, we used convenience sampling technique to take responses
from the respondent because respondents are not easily available at the time
of meeting.

Target Respondents:
The target respondents were the users of Flipkart and Delivery Boys of Flipkart.

Data Requirements and Collection


Primary Source:
Data was collected by using questionnaire and by interviewing variety of
Delivery Boys of Flipkart directly.

Secondary Source:
Secondary source of data includes: published articles, research papers,
published books, different research work done previously,
Relevant papers or journals, magazine etc. and also used other reports from
Internet, as well as from the websites of Flipkart.

Research Tools
The data was processed and analysed by using computer aided tools such as
MS- Excel and SPSS software.
Hypothesis of the Study

H1: Consumers were satisfied with the services offers by Flipkart but mostly
products were sold out from the Web Portal of Flipkart.

H2: Consumers were not satisfied with the services offers by Flipkart
but mostly products were easily available at the Web Portal of Flipkart.

LIMITATIONS OF THE STUDY


At most attention was taken to eliminate any kind of biasness & mi-

interpretation in the study to get optimum result. Even though the following

limitations could have certain degree of impact on the findings.

 The study was confined to Delhi region only which may not represent

the real picture of the entire Delhi.

 Many Delivery Boys were not interested to participate in this research

study.

 Data collected about satisfaction & awareness level may not represent

the real picture.

 My Study is confined only 100 respondents.

 Lack of research experience.


 The major problem is to find out the consumers of Flipkart as my study is

to find out the satisfaction level of the services provides by Flipkart to

its’ consumers.

 Many consumers were also not get ready to participate in the research

study.
REFERENCES
WEBSITES
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d=25
QUESTIONNAIRE
QUESTIONNAIRE FOR MEASURING OF
CUSTOMERS’ SATISFACTION IN SERVICES
OF FLIPKART

Thank You for participating in this Survey. I am a student of PGDM course at


INMANTEC Business School. The information provided by you will be kept fully
confidential and will not be used for any other commercial purpose except
academic learning.
Q1) Gender?
Male Female
Q2) Do you access any website for online shopping?
Yes No
(TERMINATE THIS INTERVIEW IF ANSWER IS “NO”)
Q3) Which company website do you access for online shopping?
Snapdeal Amazon
Flipkart Junglee
Homeshop18 Any other
(TERMINATE THIS INTERVIEW IF ANSWER IS NOT “FLIPKART”)
Q4) From where did you come to know about Flipkart?
TV Ads News Paper Ads
Hoardings Internet Ads
Any others please Specify……………………………………………….
Q5) Since how long are you accessing Flipkart?
Less than 1 Month
2 to 6 Month
7 to 12 Month
More than a Year
Q6) Did you get any offer from Flipkart?
Yes No
Q7) Do you agree on Flipkart’s claim that it’s every products are 100%
Genuine?
Yes No
Q8) What is your view on services offered by Flipkart?
Good Poor
Q9) What is your view on offers provided by Flipkart?
Satisfied Not Satisfied
Q10) Do you believe that at Flipkart’s web portal all several stuffs are always
available?
Yes No
Can’t Say
Q11) Are you satisfied with the behaviour of Delivery boys?
Satisfied Not Satisfied
Q12) Are you satisfied with the after sales services of Flipkart?
Satisfied Not Satisfied
Q13) What is view on price strategy of Flipkart?
Satisfied Not Satisfied
Q14) After rating above questions your overall satisfaction toward Flipkart?
Highly satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Highly Dissatisfied

THANK YOU FOR YOUR PARTICIPATION!!

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