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Project/Slides/Presentation Transcript Business Statistics (49)
Company Law (14)
Computer Applications (9)
Topic: Flipkart – 7P`s of Services 
Consumer Behaviour (22)
SLIDE 1 – Flipkart 7p in services Cost Accounting (3)
E-commerce (8)
Flipkart.Com Entrepreneurship (11)
Financial Accounting (2)
  Financial Management (29)
Financial Services (19)
Human Resource Management (18)
ABOUT FLIPKART.COM
Income Tax (2)
Flipkart.com, India‟s largest e-commerce brand for physical goods, started with International Business (13)
books in 2007, and entered the consumer electronics category with the launch of Investment Analysis & Portfolio
mobile phones, in September 2010. Management (11)
The co-founders of flipkart are SachinBansal and BinnyBansal. IT & Technical Skills (5)
Since then it has grown rapidly, today the portfolio is spread across 14 categories Macro-Economics (9)
– from books to music, mobiles, computers, cameras, home & kitchen appliances, Management Accounting (18)
TV & home theatre systems etc. Management Information System (4)
Managerial Economics (2)
 
Marketing & Advertising (7)
Marketing Management (18)
FACTSHEET Marketing of Services (6)
Micro-Economics (2)
Ranks in the top 20 websites in India. Operations Management (2)
Book titles available– 11.5 million. Organizational Behaviour (7)
 Registered users – 3 million Personal Finance (2)
Current manpower – Approx. 4800 Principles of Management (9)
Items shipped per day – 30000 Project Management (11)
Own delivery network – 37 cities Projects and Presentations (34)
Public Finance (11)
 
Research Methodology (9)
Rural Marketing (1)
SLIDE 4
Strategic Management (14)

7 Ps
RECENT POSTS
Product – Today, they present various categories of products such as: movies,
music, games, mobiles, cameras, computers, healthcare and personal products, Internal Sources of Finance

home appliances and electronics, stationery, perfumes, toys – and still counting! October 17, 2020

Price – The products are offered various prices catering to all the classes of
buyers. Flipkart also offers discounts and special deals on books and other Deferred Shares and No Par Shares
products. September 10, 2020
Place – This is where flipkart saves money as it does not need to incur cost on
setting up stores as it is online based. – Flipkart operates these cities: Bangalore,
Mutual Fund – Meaning, Types,
Chennai, Delhi, Kolkata, Mumbai, Noida Advantages, Mutual Funds in India
Physical Evidence – Website – Delivery September 9, 2020
People – Reviewers – Customers
Merchant Banking – Meaning,
  Significance, Functions
June 28, 2020

PROMOTION
Retail Banking and Retail Lending
 Flipkart has been mostly markets by word of mouth advertising. Customer June 27, 2020

satisfaction has been their best marketing medium

Flipkart also uses SEO and Google Ad-words as marketing tools to have a far
reach on the online world. Bank Mandate, Power of Attorney,
Flipkart recently launched a series of 3 ads with the tag line – “No Kidding No Banker`s Lien, Right to Set-off,
Garnishee Order and Attachment
worries”. Kids were used to create the adverts to send out the message – if a kid
order
can do it, you can also do it. June 27, 2020
The message is very clear to make people more comfortable with Flipkart, to
generate a great customer relationship and loyalty on the basis of great product Banking Instruments & Banking
Transactions
prices and excellent customer service. All in all to create a great customer
June 27, 2020
experience.

  Corporate Banking – Services,

Clientele, Products & Pricing
June 22, 2020
SLIDE 8

Classification of Loans
Service Blueprint June 22, 2020

 
KYC – Know Your Customer –
Meaning, Objectives, Norms
SLIDE9 June 21, 2020

SUPPORT PROCES S CONTACT PERSON

 
SLIDE 10

RATER Model

SLIDE 16

Analyzing Rater Model

Particulars Expectation of Flipkart

Perception  of customers

Need to improve Reliability 7 5.5 1.5

Assurance 7 5 2

Tangibility 7 6.33 .67

Empathy 7 4.85 2.15

Responsiveness 7 4 3

 
SLIDE 17

Fishbone diagram: A cause-andeffect diagram to identify potential causes of

problems

Delayed delivery

SLIDE 19

Gaps Model

SLIDE 20

Customer Expectations

Company Perceptions of Customer Expectations

Gap 1

1. Flipkart was among the few E-commerce sites and people expected it to be
selling the E-books and PDF of books too.
2. Indian consumers expected the payment mode to be Debit/Credit cards and not
Cash on Delivery.
3. Initially Flipkart did not have a 30Days Guarantee which customers expected in
case of Electronics.
4. Lack of communication between Courier Delivery company (Employees) and
Flipkart managers.

Knowledge Gap

Customer-Driven Service Designs and Standards

Management Perceptions of Customer Expectations

1. Flipkart has developed Flyte – Music Store , this service has been a very Vague
and out of line Development from it.
2. The Service Standards were not upto the need of the Customers when it came to
quality of Original Books and also Electronics like Laptops,etc.
3. Flipkart was inadequate in updating its Inventories and dealing its products
returned with Defects by customers.
4. There was a lack of Tangiblity because of its Online presence in its Electronic
products which Customers needed.

Standards Gap
 

Gap 2

Service Delivery

Customer-Driven Service Designs and Standards

1. Flipkart being a start up initially Human resource policies were deficient as most
of employees left in a year or two of their recruitment
2. There was a problem of Customer not fulfilling their roles i.e. many customers
made orders and upon Delivezzzry returned them or denied the purchase.
3. Flipkart had Problems with its service intermediaries which was the Courier
Delivery Company because of logistical problems.
4. Flipkart had overreliance on price which was giving too much discounts to
smooth demand which led to low margins. Delivery Gap

Gap 3

Service Delivery

1. Flipkart had absence of strong internal marketing program which led to High
Employee Turnover and many Employee lacking complete knowledge of product
.
2. Flipkart could not effectively manage the expectations of its Electronics segment
Customers and could not keep up with kow prices and latest products in its
Inventory.
3. There was little overpromising in its Books store segment which initially boasted
as being the biggest online Book Store but it lacked many good Foreign
Publishers Books with whom it did not have tie – ups.
4. Flipkart faced many Operational problems and there was a lack of
Communication between Sales and Operations Departments because the
Operations business was not streamlined.

External Communications to Customers

Communication Gap

Gap 4

Perceptions gap

Gap 5

Gap 6
 The Customers expected that Flipkart should give 30 days Refund Guarantee for
all of its product while what could be perceived was that only 30 days
replacement guarantee was being offered.
The Customers expect that all the products are delivered in 3 to 4 days but the
Employees perceive that the Customers would expect in 3 to 4 Business days
which many a times is point of conflict for Flipkart Employees

SLIDE 26.

CUSTOMER RELATIONSHIP MANAGEMEMT

ONLINE CUSTOMERS

Number of online users has increased 100 times in the past 12 years
The number of e-commerce companies has also gone up tremendously.
It is said that by 2014 at least 8 out of 10 Indians would have made an online
purchase

WHY IS CUSTOMER RETENTION IMPORTANT TO FLIPKART

 Easy to Search
Very few switching barriers
High Competition
Quick Comparison
Even a slightly bad experience can lead to permanent customer loss
Joe Girard said that one customer is a gateway to more than 200 other
customers.

CRM IN E-COMMERCE IN INDIA

The E-Commerce industry has not taken CRM too seriously.

They have been playing the “ We have cheaper prices game”
Flipkart had the responsibility to create awareness about ECommerce.
Currently companies are spending on converting offline customers to online
customers than retaining.

CORE SERVICE PROVISION

1st step in the Relationship building process.

Flipkart has been successful in fulfilling the criteria in this department.
The perceived quality is quite high because of their new ads
 The actual customer experience have fallen because: – Financial Distress –
Technical Glitches – Critical feedback from users and experts • Eg: Forbes

SWITCHING BARRIERS

Customer Inertia: – If a customer wants to leave you, he would. – Customers have

accounts with multiple websites. – There is no loyalty whatsoever in the E-
Commerce Industry.
Switching Barriers: – Psychological cost and time cost are two switching barriers –
Very few switching barriers. – Takes hardly 2 minutes to create a new account. –
Customer is spoilt for choice.
Hence, it can be a positive as well as negative factor for Flipkart.

SLIDE 32

Financial Bonds

Volume and Frequency Rewards

Stable Pricing
Bundling and cross selling

Social     Bonds • Continuous Relationships

 Personal relationship
Social Bonds among Customers

Customization Bonds • Customer Intimacy

Mass Customization
Innovation

Structural Bonds • Integrated Information System

Joint Investments
Shared Processes and Equipment

WHAT FLIPKART DOES?

Notifies if a product of your choice is „now available‟.

Customizes mails according to selected likes.
Provides an online customer service.
Special website for complaint registration.
Lets you keep a check on past purchases and current orders.
Sends mails on dispatching items.
Feedback forms after every purchase.
 Simple and easy to use website.
Prepaid wallet service.

FACTORS WORKING AGAINST FLIPKART

Accused of „Overpricing and then giving a higher discount‟

Strict Review Moderation system.
Trust deficit.
Financial constraints are stopping Flipkart from taking up CRM.

WHAT FLIPKART NEEDS TO DO?

Segregate Customers according to: – Volume Sales – Amount of Sales –

Frequency of Sales – Category in which sales have been made by a customer
Send specific e-mails to customers.
Start a point system.
Give special calls to chosen customers and give them special communication
officers

SLIDE 36.
Customer Service, Complaint Management and Service Recovery Strategy.

CUSTOMER SERVICE

Flipkart has a 24/7 customer service.

It has an online customer service.
It has a Customer Care helpline.
Considered to be the best in business.
It gives the customers an option to review the product but not the service.
It responds quickly to problems addressed to them on various social media
platforms.

COMPLAINTS AND COMPLAINANTS

Most of the complaints are not reported unless the price of the item is very high.
The complainants are also in extremes: – Some might complain and not follow up
(Passives) – Some take up the issue on a public platform • There are pages
dedicated to Flipkart on the Consumer Protection Web Forum

HOW FLIPKART TACKLES COMPLAINTS?

 It is easy to find information about the various media that can be used to
complain.
It is very easy to lodge a complaint.
They have made sure that the customer care staff : – Is not impolite – Understand
the customer‟s problem
They have been known to respond to open letters by the customers.
Mr. Sachin Bansal openly replied to the article given in Forbes India.
On the spot redressal is not possible as various aspects of the service delivery
process have to be checked.
The only drawback is that continuous improvement has not been achieved.

SERVICE RECOVERY

The following strategies have been used by Flipkart:

– Welcome and Encourage complaints.

– Act Quickly.

– Treat customers fairly.

It is difficult to actually understand if a customer is lost or not.

There is no pressure from the company to buy the product.
They post about their resolved complaints on their blogs.
 What they have not done is:

– Fail-safe the service

– Learn from lost customers

SLIDE 41

Matching Demand And Supply

RISING DEMAND

Customer base increasing by 25% per month

Daily Servicing orders increased from 24000 to 45000
Current Fiscal Sales amount to Rs.2000 Crore
Selling 20 products per minute
Demand pattern – Demand exceed the optimum capacity level

SLIDE 43

Shifting Demand to Match Capacity

Low Demand

Introduced Cash On Delivery Online assistance to place orders Bought Letsbuy.com

to increase range of electronics items TV Commercials
Products at discounted price

High Demand

Increased minimum COD from Rs.200 to Rs.300

ADJUSTING CAPACITY TO MATCH DEMAND

When Demand too high – Employee base increased from 2500 to 5000 delivery
men. – Introduced Flipkart Logistics. – Increasing Flipkart Logistics coverage from
13 to 25 cities.

GUARANTEES GIVEN BY FLIPKART

In stock : 3-4 business days

Non prime areas 1-2 Weeks

Imported goods : 10 days or more

Pre launch goods : Shipped on release date

30 DAY Replacement Guarantee

Delivery Time Period

 

SLIDE 46

SUGGESTIONS FOR FLIPKART

Up keeping the cost of 7 warehouses that it owns should be transferred to

Flipkart Logistics.
Cash on Delivery Option creating cash flow problems and so make it only online
payment so Cash flow problems are solved.
Flipkart should concentrate more on retaining the customers first rather than
expanding into new segments.
Maintain price differential from its new competitors like Junglee.com which is
owned by Amazon.com .

BY: BBAMANTRA / IN: MARKETING OF SERVICES, PROJECTS AND PRESENTATIONS / WITH: 6

COMMENTS

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6 COMMENTS   Oldest


Sachin 
4 years ago

Woo! That’s really great project. Very well researched.

0
Reply

Jay 
3 years ago

How can i download the PPT of flipkart.

0
Reply

bbamantra 
3 years ago


Reply to 
Jay
Author
Hi, To protect our content from misuse, we do not allow users
to copy or download our content, But you can always
bookmark (CTRL + D) any webpage for instant access or share
it with yourself or your friends via various social networks.

0
Reply
Ameet Athani 
3 years ago

This indeed a Great analysis, the true story of Indian E-commerce

Giants I am sure its prity much same for all the other websites,
Hats off to the guys involved in this research you guys have done
a fab job.

0
Reply

neha sharma 
3 years ago

Thanks for such a nice article…

Keep the great work going!

0
Reply

Honestricks 
3 years ago

Very Good Article

0
Reply
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