Professional Documents
Culture Documents
ON
[2021-2024]
Submitted By
PREETI
1
DECLARATION
I hereby declare that the project work entitled minor project report on
Customer expectation from online marketing with respect to Flipkart
submitted to the Guru Gobind Singh Indraprastha University is record of an
original work done by me under the guidance of Ms. Kulneet kaur , faculty
member, Sri Guru Tegh Bahadur Institute of Management & Information
Technology.
------------------------------
2
CERTIFICATE
This is to certify that PREETI student of Sri Guru Tegh Bahadur Institute of
Management & Information Technology of course BBA Batch {2021-2024},
Has completed her research work titled “minor project report on
CUSTOMER EXPECTATION FROM ONLINE MARKETING WITH
RESPECT TO FLIPKART Under my guidance and supervision. The work
submitted is genuine and authentic.
-----------------------------------
-----------------------------------
Signature of Guide
Date: ----------------------------------
Signature of Scholar
PREETI
3
ACKNOWLEDGEMENT
I am also greatly thankful to the faculty member of our institute who co-
operated with me and gave me their valuable time.
----------------------------
4
INDEX
S.NO. PARTICULARS PAGE NO.
1. CHAPTER 1: INTRODUCTION 6-14
TO INDUSRTY
2. CHAPTER 2: INTRODUCTION 15-19
TO COMPANY
3. CHAPTER 3: ABOUT THE 20-23
TOPIC AND LITERATURE
REVIEW
4. CHAPTER 4: RESEARCH 24-25
METHODOLOGY
5. CHAPTER 5: DATA ANALYSIS 26-44
AND INTERPRETATION
6. CHAPTER 6: FINDINGS AND 45-46
CONCLUSION
7. CHAPTER 7: 47
RECOMMENDATIONS AND
SUGGESTIONS
8. BIBLIOGRAPHY 48
9. ANNEXURE 49-52
5
CHAPTER -1
INTRODUCTION TO INDUSTRY
India has an internet user base of about 354 million as of June 2015. Despite
being third largest user base in world, the penetration of e-commerce is low
compared to markets like the United States, United Kingdom or France but is
growing much faster, adding around 6 million new entrants every month. The
industry consensus is that growth is at an inflection point. In India, cash on
delivery is the most preferred payment method, accumulating 75% of the e-
retail activities Demand for international consumer products (including long-tail
items) is growing much faster than in-country supply from authorized
distributors and e-commerce offerings. Flipkart is an e-commerce company
founded in 2007 by Sachin Bansal and Binny Bansal. It is a Singaporean
company which operates in India, where it is head quartered in Bangalore,
Karnataka. Flipkart has launched its own product range under the name
‘DigiFlip’ with products including tablets, USBs, and laptop bags. Flipkart
allows payment methods such as cash and delivery, credit or debit card
transactions, egift voucher and cards swipe on delivery. Initially, they 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
6 October 2014 Flipkart launched a promotion called 'Big Billion Day' with the
intention to increase the popularity of their website by targeting a billion sales
in 1 day. This, even though Flipkart achieved the target, led to public outcry and
widespread criticism among consumers, competitors and partners, heavily
damaging its reputation. Many users could not place orders because of high
server load and errors which led to frustration among customers. Many users
who placed orders received emails stating that their orders were cancelled. Most
6
of the products were sold for less than cost price, and Flipkart was accused of
killing competition. Major competitors filed complaints against Flipkart to the
commerce ministry, claiming that selling products lesser than cost prices is
against the commerce policy of the country. The Ministry said that they would
formulate new trade rules for electronic retail after this incident.
In September 2015, Sachin Bansal and Binny Bansal entered Forbes India Rich
List debuting at the 86th position with a net worth of $1.3 billion each
Flipkart.com was awarded Young Turk of the Year at CNBC TV 18's 'India
Business Leader Awards 2012' (IBLA).
7
SIGNIFICANCE OF THE STUDY
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 segment was worth US$2.3 billion.
About 70% of India's e-commerce market is travel related. According to Google
India, there were 35 million online shoppers in India in 2014 Q1 and is expected
to cross 100 million mark by end of year 2016. CAGR vis-à-vis a global growth
rate of 8–10%. Electronics and Apparel are the biggest categories in terms of
sales. The latest risers among the e-commerce sectors are E-Grocery & E-
Dining, with players like Bigbasket (2011), Grofers (2013), Zopnow (2011) etc.
already securing multiple rounds of investment and expanding their coverage to
many other cities other than their point of origin, E-Grocery is set to grow
rapidly whether they follow the hyper local model or inventory based model.
Bigbasket reached a valuation of US $ 1 Billion in their latest round of funding
in August 2015. In case of E-dining, Zomato has already gone international and
is strengthening its core proposition of facilitating and enhancing consumers'
dining experience to newer levels.
One of the most popular activities on the Web is shopping. It has much allure
in it one can shop at your leisure anytime. Literally anyone can have their pages
built to display their specific goods and services.
History of ecommerce dates back to the invention of the very old notion of "sell
and buy", electricity, cables, computers, modems, and the Internet. Ecommerce
became possible in 1991 when the Internet was opened to commercial use.
Since that date thousands of businesses have taken up residence at web sites
Although the Internet began to advance in popularity among the general public
in 1994, it took approximately four years to develop the security protocols (for
example, HTTP) and DSL which allowed rapid access and a persistent
connection to the Internet. In 2000 a great number of business companies in the
United States and Western Europe represented their services in the World Wide
Web. At this time the meaning of the word ecommerce was changed. People
began to define the term ecommerce as the process of purchasing of available
goods and services over the Internet using secure connections and electronic
payment services. Although the dot-com collapse in 2000 led to unfortunate
results and many of ecommerce companies disappeared, the "brick and mortar"
retailers recognized the advantages of electronic commerce and began to add
such capabilities to their web sites (e.g., after the online grocery store Webvan
9
came to ruin, two supermarket chains, Albertsons and Safeway, began to use
ecommerce to enable their customers to buy groceries online). By the end of
2001, the largest form of ecommerce, Business-to-Business (B2B) model, had
around $700 billion in transactions.
Ecommerce has a great deal of advantages over "brick and mortar" stores and
mail order catalogs. Consumers can easily search through a large database of
products and services. They can see actual prices, build an order over several
days and email it as a "wish list" hoping that someone will pay for their selected
goods. Customers can compare prices with a click of the mouse and buy the
selected product at best prices. Online vendors, in their turn, also get distinct
advantages. The web and its search engines provide a way to be found by
customers without expensive advertising campaign. Even small online shops
can reach global markets. Web technology also allows to track customer
preferences and to deliver individually-tailored marketing.
COMPONENTS OF E-COMMERCE
10
3. GUEST SIGN UPS Laborious registration forms can increase the likelihood
of customers abandoning a purchase at checkout so give customers the option to
checkout as a guest rather than register an account. Online shoppers are keen to
make their purchases quickly and can easily be distracted, so help them achieve
their goal by giving them a quicker option to check out as a guest.
5. HAVE A CLEAR RETURNS POLICY The first part of a good returns policy
is to try to prevent the return. People return their products when they’re
disappointed so write clear and accurate product descriptions.
11
PRESENT STATUS OF E-COMMERCE
India has joined the bandwagon and the numbers themselves do all the talking.
The latest statistics reveal that India has been reported to have 70 million active
Internet users, the count rising exponentially by the minute. However, markets
involve intricate interactions involving a variety of business/organizational
factors, general economic and social trends. And the actual scope of growth in
e-commerce can’t be evaluated without taking into consideration the
aforementioned factors. For such doubts to be remedied, one may take notice of
the recent industry reports. One such report, shared by ASSOCHAM, estimated
the online retail industry to touch Rs 7,000 crore by 2015 (rising from the
current Rs 2000 crore), with an annual growth rate of 35 per cent. Adding on to
this, IAMI has facilitated data to indicate a zoom in India’s e-commerce sector,
with transactions rising 50 per cent annually. Online retailing or e-tailing, which
accounts for about 6 per cent of Rs 46,000 crore industry, has taken the
forefront of this rapid growth.
Such strong current indications to massive changes, occurring across the entire
business spectrum, have already wiped out doubts about the scope of e-
commerce in India. The expense of the tremendous ambit for the growth of
Internet marketing in India being clear now, it can conveniently be stated that
marketing through the Internet can be an extremely potent ball game.
The basic explanation to such a boom lies in the fact that e-tail has surfaced as
a boon to both the sellers and the consumers. It has garnered significant
12
attention from consumers due to the convenience of shopping. The need to
physically visit stores has, in some cases, been eliminated. Instead, you can just
sit at home and order, easily browse through a host of products, conveniently
compare prices and avail the best deal. It’s all about saving on precious time,
energy, money and get what you desire. On the flip side, it has succeeded in
pleasing the sellers by providing a faster buying/selling procedure, resulting in
saving a lot of time. Now, products can be made available for purchase and sold
around the clock. This also provides a wider reach, defying all theoretical
geographic limitations in reaching out to customers. Sellers have shown
remarkable enthusiasm for this system as their need to continuously augment
and keep abreast of customer expectations and desires is aptly catered to.
Not long ago, when the concept was newly induced in the Indian markets (first
put to practice by companies like Dell), the average Indian was sceptical. While
the west comfortably transacted and shopped through Amazon.com and e-bay,
the Indian markets still went after the touch-and-feel of physical products,
opulent showrooms, salespersons with good etiquette and liquid transactions.
But over the time, with a number of payment gateways coming into the picture
and making e-transactions effortless and trouble-free and curbing security
threats, people have grown comfortable with e-shopping. This to the extent that
today, four out of five Internet users shop or do their pre-shopping research
online, thus recording 13.5 million customers of consumer products and
outnumbering 8.5 million customers of travel products. Customers today are
hooked to online shopping and are not even fighting shy of deal sizes that cross
Rs 20,000-Rs 25,000 while earlier, they hardly went up till Rs 2,000. Industry
figures suggest that the soaring numbers in the e-commerce space are driven by
the young blood and these are expected to grow tenfold, being pushed by the
Generation. The most sought after categories for these buyers currently are:
13
mobile & accessories, computer hardware & consumer electronics and travel
products like train and air tickets.
14
CHAPTER -2
1.History
15
4. Present status of the company
4.1 Nature of the Organization India's leading ecommerce
business portal and Online Megastore
Name Title
16
later diversifying to sell DVDs, Blue-rays, CDs, video
downloads/streaming, MP3 downloads/streaming, audio book
downloads/streaming, software, video games, electronics, apparel,
furniture, food, toys and jewellery.
Snapdeal: Snapdeal is an online marketplace, New Delhi, India. The
company was started by Kunal Bahl, a Wharton graduate as part of the
dual degree M&T Engineering and Business program at Penn, and Rohit
Bansal, an alumnus of IIT Delhi in February 2010.
EBay: EBay Inc. (stylized as "e-bay" since late 2012) is an American
multinational corporation and e-commerce company, providing
consumer-to-consumer and business-to-consumer sales services via the
internet. It is headquartered in San Jose, California. Ebay was founded by
Pierre Omidyar in 1995, and became a notable success story of the dot-
com bubble. Today it is a multibillion-dollar business with operations
localized in over 30 countries.
5. Future Prospects and Growth
E-commerce giant Flipkart has said that it has sold 150 million products
till date this calendar year, registering a whopping 150% growth over last
year. Fashion, lifestyle, home and consumer electronics were among top
selling categories, while Bangalore, New Delhi, Chennai, Pune,
Coimbatore and Ahmadabad were top cities in terms of traffic.
The eight-year-old e-commerce player offers about 30 million products
across 70 categories, including books, media, consumer electronics and
lifestyle to its 45 million registered users. Besides catering to buyers, with
10 million visits (hits) daily, the company also provides an e-platform for
sellers to reach a wider customer base. With 30,000 sellers, the customers
have access to a wide range of products across categories and
geographies.
17
6. Milestones
Flipkart has announced rising of $1 billion (Rs. 6,000 crore at 1 dollar =
60 rupees) in fresh funding - the biggest ever by an Indian internet
company all around. With this funding India’s biggest e-commerce player
is now expected to value at $5 billion as per estimates. Per estimates.
Flipkart, India's biggest e-commerce player today was set up by IITians
Binny Bansal and Sachin Bansal in 2007 with an investment of Rs 4
lakhs.
2010: WeChat, 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 Lets buy has been diverted to Flipkart.
Before May, Flipkart had raised between $540 million and $560
million, according to industry estimates, which valued the company at
about $1.6 billion at the end of 2013.
In October 2013, the website announced the closure of a round of
funding commenced in July 2013. The total funds raised in this round
stood at $360 million. IN February, Flipkart and Motorola Mobility in an
exclusive partnership announced the launch of Smartphone Moto G in
India. There was tremendous response from online shoppers to the launch
with the 16GB version being sold out in first 15 minutes.
18
2014: Acquired myntra.com in an estimated ₹ 20 billion (2,000 crore,
about US$319 million) deal.
The company has seen a turbo-charged growth, hitting an annualized
sales mark of $1 billion (Rs. 6,000 crore) in 2014 - a year ahead of its
target. In May 2014, Flipkart acquired fashion portal Myntra and said it
would invest $100 million (nearly Rs. 600 crore) in the fashion business.
2015: Flipkart acquired a mobile marketing start-up Appiterate as to
strengthen its mobile platform.
19
CHAPTER -3
Sohn and Ahn (1999) showed that consumers’ knowledge affects their adoption
of e-commerce. Liang and Huang (1998) Found that customer’s experience an
important factor in online purchasing. Kim and Kwon (1999) contended that a
consumer whose lifestyle is more progressive and assertive in leisure activities
use the internet more frequently and searches information through the internet
more often. Limayem, Khalifa (2003) added personal innovativeness as another
personal characteristic in order to online shopping. Yang and Cho (1999)
examined the impact of consumers need for cognition, and search objectives on
consumer information search through the internet. Investing in consumer
satisfaction from the online experience and creating brand or site loyalty are
critically important for companies that want to have a long run presence on the
Web. There are two approaches taken to induce loyalty into consumers in an
online context. One approach is to focus on concrete factors. For example,
creating a convenient and well-designed online store and offering secure
transactions are the keystones of satisfying e-consumers (Szymanski and Hise,
2000). However, all satisfied consumers do not become loyal. Personalization
attempts and increasing the social value of online experiences are very
important to make consumers build strong brand relationships in the cyber
world. Although Nunes and Kambil (2001) argue the opposite, some studies
find that personalized Web sites and customer communities are highly
influential on the consumer brand relationship especially for experienced
Internet consumers (Thorbjornsen, 2002). Besides, businesses that can create
trust and increase the perceived value of online shopping can turn their satisfied
consumers into loyal ones in the e-marketing environment, too (Anderson and
Srinivasan,(2003). The online environment accommodates so many
20
opportunities for creating loyalty that even offline offerings can be effectively
facilitated with supporting after sale services provided through the Web (van
Riel et al., 2004).
The strategies that marketers are using have not adequately addressed the
changing demands of the consumer to ensure customer satisfaction (Day
& Landon, 1977). The marketing function limits the scope of marketing
strategies in operating successfully online. New electronic
communication marketing variables have exploded the alternatives
available to customers globally. These changes have redefined many of
the old views of marketing, trade and power. Furthermore, many
researchers recognize and accept that customer satisfaction is a logical
measurement of success in market exchanges (Dubrovski, 2001). Adrita
Goswami (2013). Studied “Customer Satisfaction towards Online
Shopping with Special Reference to Teenage Group of Jorhat Town”
study concludes that online customers are Satisfied. This research
explicitly indicates that online marketer should give more importance on
price factor and after sale factor. In this competition era all the online
marketers should have to concentrate on the customer’s satisfaction to
retain the existing customers and have to offer new scheme day by day to
attract the new customers. Alam and Yasim (2010) reported that that
website design, reliability, product variety and delivery performances are
the four key factors influencing consumers’ satisfaction of online
shopping. Ahn (2004); Lee and Joshi (2007); found that delivery
performance has significant influence on customer satisfaction. Vyas and
Srinivas (2002), in their paper stated that majority of the internet users
were having positive attitude towards online buying of products/services.
There exists a need for developing awareness about consumers’ rights
and cyber laws. They also emphasized on better distribution system for
21
online products. Crawford, (1997) in his paper said that traditional
consumer behaviour shopping has its own model, which the buying
process starts from the problem recognition, information search,
evaluation of alternatives, then purchase, and at last post purchase
behaviour. The lists of factors having a positive or negative impact on
consumers’ propensity to shop do not seem to be very different from the
considerations encountered in offline environments. However, the
sensitivities individuals display for each variable might be very different
in online marketplaces. Factors like price sensitivity, importance
attributed to brands or the choice sets considered in online and offline
environments can be significantly different from each other (Andrews
and Currim, 2004).Uncertainties about products and shopping processes,
trustworthiness of the online seller, or the convenience and economic
utility they wish to derive from electronic shopping determine the costs
versus the benefits of this environment for consumers. Further studies
aiming to complete the full set of factors influencing consumers’
repurchase intentions are still much awaited. Chary and Christopher
(2003) stated that e-commerce is today providing the infrastructure to
communicate and share information between the buyers and sellers. But
the main drawback in India is that most of the Indian consumers are from
the rural, backward areas and they are not aware of the electronic
transactions. Also in the urban areas most of the consumers are not aware
of this. So, in the light of these facts which constitute the emotional
factors, can we think that e-commerce in India is going to affect the
beliefs, values, culture, preferences and fashions of the consumers? The
major challenges are technology component, internet infrastructure and
payment related issues. The answer to the challenges posed by the Indian
market essentially lies in cyber retail networks (networks of retail outlets
on the net) connected through the very small aperture terminals (VSATs).
22
The three big advantages of e-commerce-vast choice, economy in
transactions and a wealth of information tend to set the mind of consumer
to move into electronic market and so the excitement of e-commerce will
be building up away from the metros moving towards rural India.
23
CHAPTER -4
RESEARCH METHODOLOGY
STUDY OBJECTIVES
SCOPE OF STUDY
The study is conducted in Angamaly. The study attempts to analyze e-
commence market in India with special reference to flipkart.
SAMPLING METHOD
It can be defined as the process of selection of individuals from total
population for the purpose of studying the research problem.
COLLECTION OF DATA
Primary data is used to study the customer expectation towards Flipkart.
24
LIMITATIONS OF STUDY
The shortage of time and money will limit the number of samples into
minimum.
The consumers of the services provided by flipkart are spread all over
world, but this study is conducted only among the consumers of
Angamaly. Lack of availability of data.
The time available for study is less.
REFERENCE
www.wikipedia.com
www.google.com
CHAPTER -5
25
DATA ANALYSIS AND INTERPRETATION
The purpose of every research study is to draw conclusion. Hence after the data
has been collected it must be processed and analysed to draw conclusions. The
editing, coding and tabulating is must when the interviewer has a huge amount
of data concerning the research project at hand. The process of evaluating data
using analytical and logical reasoning to examine each component of the data
provided. This form of analysis is just one of many steps that must be
completed when conducting a research experiment. Data from various sources
is gathered, reviewed and analysed to form some sort of findings and
conclusions. It is through systematic analysis that the underlying features of the
data are revealed and valid generalisation is arrived at.
Q1. Gender?
26
Table 5.1
Male 35 70
Female 15 30
Total 50 100
Interpretation:
In this survey 70% of the respondents are male and the balance 30% are
female which indicates that men prefer online marketing than women.
27
Table 5.2
Interpretation:
28
Table 5.3
14
86
yes no
Interpretation:
This table shows that out of 50 people only 86% prefer online marketing while
14% does not.
29
Table 5.4
shop online
Interpretation:
This analyses that 58% of the respondents shop once in a month and the others
prefer shopping once in a week, once in 6 months and once in a year in the same
ratio of 14%.
30
Table 5.5
Interpretation:
According to this analysis 42% of the respondents shop online for the verity of
options available to them, 30% according to their convenience, 14%for discount
available and remaining 14% for other reasons.
31
Table 6.6
Interpretation:
This chart shows that 42% prefer flipkart, 30% prefer Amazon and only 16%
and 12% prefer e-bay and snapdeal respectively. This shows that participants
prefer flipkart and Amazon sites for online shopping than others.
32
Table 5.7
Interpretation:
This analysis shows that 30%came to know about flipkart through internet,
word-of mouth and print media contributed equal awareness but only 14%
contributed television.
33
Table 5.8
Interpretation:
According to this data, electronics (42%) and apparels (26%) are mostly
purchased from online websites compared to books (16%) and fancy items
(16%).
attracting respondents
Interpretation:
According to this data, factors such as safe delivery (44%), cash on delivery
(28%) attracts more customers than factors such as user friendly websites (12%)
and EMI facilities (16%) does.
Table 5.10
35
Interpretation:
This chart shows that 40% of the respondents spent around rs500- rs2000, 30%
spends rs2000- rs5000, 19% spends less than rs500 and only 11% spends above
5000.
Table 5.11
36
Interpretation:
This survey shows that 44%shop occasionally, 28% during discount season,
19% during festive season and only 9% shop regularly from online sites.
Table 5.12
37
.
Interpretation:
In this survey 47% respondents feel their experience in flipkart is equal to that
of other online sites, 28% feels its better and 23% considers it as poor.
Table 5.13
38
Column1
Interpretation:
Table 5.14
39
Interpretation:
This survey proves that 44% rated after sale services as good,30% rated it
average, 14% rated it poor but only 12% of respondents feel it as excellent.
Table 5.15
40
Interpretation:
41
Table 5.16
Column1
yes no
Interpretation:
It is very clear that majority of the respondents would not buy the product if an
option for cash on delivery was not available.
Table 5.17
42
Interpretation:
This survey shows that 42% of the respondents faced difficulty in online
shopping due to late delivery, 28% due to lack of flexibility, 14% by wrong
delivery and the rest 16% due to damaged products.
Table 5.18
43
Interpretation:
58% of the respondents rated overall flipkart experience as good, 33% felt the
experience average, 14% had an excellent experience and balance 5% rated
their experience poor.
CHAPTER 6
2. Mostly youngsters are more active shopping online than middle aged persons,
3. Most people prefer online marketing than any other form of marketing.
online.
shopping sites.
10. The after sale services provided on flipkart sites have been proved good.
CONCLUSION
45
The study “consumer preference in online marketing with reference to flipkart”,
is satisfactory. This analysis helps the researcher to understand the consumer
preferences on online marketing with main reference to flipkart and other
competitors on the same field. The question of trust is more important in
internet shopping than in offline trade. This is because the cultivation of trust is
particularly important when uncertainty and risk are inherent and contracts and
warranties are often absent. This makes shopping on the internet inherently
risky from the view point of security, because of the importance of trust in
inherent shopping; initial trust in internet vendors is a major factor influencing
the growth of e-commerce.
The overall brand value of flipkart is good, but it is facing some tough
competitions from its global competitors like e-bay an Amazon. But if talking
about domestic market i.e. India; it is the most superior E- Business portal
which is aggressively expanding an planting its roots deep into the Indian
market amd at the same time shifting the mindset of the people i.e from going
and shopping from physical store to online stores, which is magnificent.
CHAPTER 7
CHAPTER 8
BIBLIOGRAPHY
47
Books:
Websites:
www.wikipedia.com
www.flipkart.com
www.Slideshare.com
www.yourstory.com
www.successstory.com
48
ANNEXURE
QUESTINNAIRE ON
49
50
51
52