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CHAPTER-I

INTRODUCTION

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1.1 INTRODUCTION TO THE PROJECT

Digital marketing is the component of marketing that utilizes internet and


online based digital technologies such as desktop computers, mobile
phones and other digital media and platforms to promote products and
services.

Advantages of Digital Marketing

1. Ease of access
A key objective is engaging digital marketing customers and allowing

them to interact with the brand through servicing and delivery of digital

media. Information is easy to access at a fast rate through the use of

digital communications. Users with access to the Internet can use many

digital mediums, such as Facebook, YouTube, Forums, and Email etc.

2. Competitive advantage

By using Internet platforms, businesses can create competitive advantage

through various means. To reach the maximum potential of digital

marketing, firms use social media as its main tool to create a channel of

information. Through this a business can create a system in which they

are able to pinpoint behavioral patterns of clients and feedback on their

needs.

3. 24/7 Availability: Digital Marketing Services available on 24/7.

4. Impulsive Buying Behaviour


Digital marketing has successfully augmented the impulse buying
phenomena. An impulse buying decision is essentially made directly

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before making the actual purchase. In other words, impulsive buying is a

spontaneous decision that is made in a spur of the moment, when

generally, customers usually pre-plan their purchases and pre-choose the


products that they wish to buy.

5. Personalised Shopping Experience


Digital marketing has also accustomed consumers to a personalised

shopping experience. Today, they don‟t want to spend a great amount of


time researching and purchasing their desired products.

Brands have realised this change in consumer behaviour, and they have

geared their online marketing and branding strategies towards providing a

personalised experience to all consumers by curating personalised

content.

6. Ability to Research and Experiment


Modern-day consumers have become exceptionally good researchers

when it comes to making a purchasing decision. They are gaining more

insight and awareness as technology empowers them with a critical


approach to making decisions online.

7. Accessible Word-of-Mouth
Word-of-mouth is not something new. It is used both by brands and

consumers to make business happen. Word-of-mouth is definitely the


biggest factor that affects consumers behaviour.

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In simplistic terms, digital marketing is the promotion of products

or brands via one or more forms of electronic media. Digital marketing

differs from traditional marketing in that it involves the use of channels


and methods that enable an organization to analyze marketing campaigns

and understand what is working and what isn‟t – typically in real time.

Digital marketers monitor things like what is being viewed, how

often and for how long, sales conversions, what content works and
doesn‟t work, etc.

India has an Internet users base of about 550 million as of July

2022, 40% of the population. Despite being the second-largest userbase in

world, only behind China (650 million, 48% of population), the

penetration of e-commerce is low compared to markets like the United

States (266 million, 84%), or France (54 Million, 81%), but is growing at

an unprecedented rate, 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 is growing much faster than in-country supply from

authorized distributors and e-commerce offerings.

In 2023, the largest e-commerce companies in India were Flipkart,


Snapdeal, Amazon India, and Paytm.

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Market Size and growth
India‟s e-commerce market was about $3.9 billion in 2009, it went

up to $12.6 billion in 2020. 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 and to cross 100 million mark by end of year 2022. CAGR

vis-à-vis a global growth rate of 8-10%. Electronics and Apparel are the
biggest categories in terms of sales.

According to study done by Indian Institute of eCommerce, by

2022 India is expected to generate $100 billion online retail revenue out

of which $35 billion will be through fashion e-commerce. Online apparel

sales are set grow four times in coming years.

India‟s retail market is at $470 billion in 2011 and $850 billion by

2020, - estimated CAGR of 10%. 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 2017-22.


Digital marketing is an umbrella term for the marketing of products

or services using digital technologies, mainly on the Internet, but also

including mobile phones, display advertising, and any other digital

medium.
The way in which digital marketing has developed since the 1990s

and 2000s has changed the way brands and businesses utilize technology

and digital marketing for their marketing. Digital marketing campaigns

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are becoming more prevalent as well as efficient, as digital platforms are

increasingly incorporated into marketing plans and everyday life, and as

people use digital devices instead of going to physical shops.


The term digital marketing was first used in the 1990s, but digital

marketing has roots in the mid-1980s when the SoftAd Group,

now ChannelNet, developed advertising campaigns for automobile

companies, wherein people would send in reader reply cards found in


magazines and receive in return floppy disks that contained multimedia

content promoting various cars and offering free test drives. Digital

marketing became more sophisticated in the 2000s and the 2010's,; the

proliferation of devices' capability access digital media at almost any

given time has led to great growth of digital advertising; statistics

produced in 2012 and 2013 showed that digital marketing was still a

growing field.

Digital media growth is estimated at 4.5 trillion online ads served

annually with digital media spend at 48% growth in 2010. An increasing


portion of advertising stems from businesses employing Online

Behavioural Advertising (OBA) to tailor advertising for internet users,

but OBA raises concern of consumer privacy and data protection.

Manage Customer Relationships Across All Channels


Digital marketing and its associated channels are important – but

not to the exclusion of all else. It‟s not enough to just know your

customers; you must know them better than anybody else so you can

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communicate with them where, when and how they are most receptive to

your message. To do that, you need a consolidated view of customer

preferences and expectations across all channels – Web, social media,


mobile, direct mail, point of sale, etc. Marketers can use this information

to create and anticipate consistent, coordinated customer experiences that

will move customers along in the buying cycle. The deeper your insight

into customer behavior and preferences, the more likely you are to engage
them in lucrative interactions.

Challenges Facing Digital Marketers


 Proliferation of digital channels. Consumers use multiple digital

channels and a variety of devices that use different protocols,

specifications and interfaces – and they interact with those devices

in different ways and for different purposes.

 Intensifying competition. Digital channels are relatively cheap,

compared with traditional media, making them within reach of

practically every business of every size. As a result, it‟s becoming


a lot harder to capture consumers‟ attention.

 Exploding data volumes. Consumers leave behind a huge trail of

data in digital channels. It‟s extremely difficult to get a handle on

all that data, as well as find the right data within exploding data
volumes that can help you make the right decisions.

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Use in the digital era
There are a number of ways brands can use digital marketing to

benefit their marketing efforts. The use of digital marketing in the digital
era not only allows for brands to market their products and services but

also allows for online customer support through 24/7 services to make

customer feel supported and valued. The use of social media interaction

allows brands to receive both positive and negative feedback from their
customers as well as determining what media platforms work well for

them and has become an increased advantage for brands and businesses.

It is now common for consumers to post feedback online through social

media sources, blogs and websites feedback on their experience with a

product or brand. It has become increasingly popular for businesses to

utilise and encourage these conversations through their social media

channels to have direct contact with the customers and manage the

feedback they receive appropriately.

Word of mouth communications and peer-to-peer dialogue often


have a greater effect on customers, since they are not sent directly from

the company and are therefore not planned. Customers are more likely to

trust other customers‟ experiences. It is increasingly advantageous for

companies to utilise social media platforms to connect with their


customers and create these dialogues and discussions. The potential reach

of social media is indicated by the fact that in 2015, each month the

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Facebook app had more than 126 million average unique users and

YouTube had over 97 million average unique users.

To summarize, Pull digital marketing is characterized by


consumers actively seeking marketing content while Push digital

marketing occurs when marketers send messages without that content

being actively sought by the recipients.

1. Online behavioural advertising is the practice of collecting


information about a user‟s online activity over time, “on a

particular device and across different, unrelated websites, in order

to deliver advertisements tailored to that user‟s interests and

preferences.

2. Collaborative Environment: A collaborative environment can be

set up between the organization, the technology service provider,

and the digital agencies to optimize effort, resource sharing,

reusability and communications. Additionally, organizations are

inviting their customers to help them better understand how to


service them. This source of data is called User Generated Content.

Much of this is acquired via company websites where the

organization invites people to share ideas that are then evaluated by

other users of the site. The most popular ideas are evaluated and
implemented in some form. Using this method of acquiring data

and developing new products can foster the organizations

relationship with their customer as well as spawn ideas that would

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otherwise be overlooked. UGC is low-cost advertising as it is

directly from the consumers and can save advertising costs for the

organisation.

Growth of Digital Marketing in India

The Indian digital marketing market reached a value of nearly USD 4.5

billion in 2023. The industry is rising at a CAGR of 32.1% to reach a

value of more than USD 24.1 billion by 2028. The market‟s primary
driver is the growing global population‟s increasing affinity towards the

digital channels of media.

Digital marketing refers to the advertising of digital media services and

products, mainly through online platforms, especially mobile phones,

advertising displays, or any other medium. Digital marketing approaches

such as search engine optimization (SEO), search engine marketing

(SEM), content marketing, content management, campaign marketing,

social media marketing, social media optimization, display advertising-

books, data-driven marketing, e-commerce marketing, e-mail direct


marketing, and optical disks and games have become extremely popular

in their development. Moreover, digital marketing is now also applicable

to non-internet platforms that provide digital media, such as mobile

phones (SMS and MMS), call-backs, and on-site mobile ring tones.

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1.2 COMPANY PROFILE (FLIPKART)
Flipkart Private Limited is an Indian e-commerce company,

headquartered in Bangalore, and incorporated in Singapore as a private


limited company. The company initially focused on online book sales

before expanding into other product categories such as consumer

electronics, fashion, home essentials, groceries, and lifestyle products.

The service competes primarily with Amazon India and domestic


rival Snapdeal. As of March 2023, Flipkart held a 39.5% market share in

the Indian e-commerce industry. Flipkart has a dominant position in the

apparel segment, bolstered by its acquisition of Myntra, and was

described as being "neck and neck" with Amazon in the sale of

electronics and mobile phones.

Industry E-commerce

Founded 2007 (16 years ago)

Founder Sachin Bansal, Binny Bansal

Headquarters Bangalore, Karnataka, India (operational HQ)


Key people Kalyan Krishnamurthi (CEO)

Services Online shopping

Flipkart was founded in October 2007 in Mumbai by Sachin

Bansal and Binny Bansal, alumni of the IIT, Delhi and


former Amazon employees. The company initially focused on online

book sales with country-wide shipping. Flipkart slowly grew in

prominence and was receiving 100 orders per day by 2008. The e-

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commerce also started a virtual storefront that is dedicated to the

academic needs of students named „Flipkart Student‟s Club‟.

History
2007 - 2010 Start-up phase
The company was started from a two-bedroom apartment in Kormangala,

Bengaluru. The initial investment was provided by their families, which

was INR 2 Lakh from each family. The website was kicked off in
October 2007 and the company was only limited to selling books at that

time. The company initially focused on online book sales with country-

wide shipping. Flipkart slowly grew in prominence and was receiving

100 orders per day by 2008. In 2010, Flipkart acquired the Bangalore-

based social book discovery service We Read from Lulu.com.

2011 - 2014 Growth, mergers and acquisitions


In 2011, Flipkart acquired the digital distribution business

Mime360.com and the digital content library of the Bollywood portal

Chakpak. Following the acquisition, Flipkart launched its DRM-


free online music store Flyte in 2012. Due to competition from free

streaming sites, Flyte was unsuccessful and shut down in June 2013.

Mime360 was a content distributor that used HTTP-based encryption

technology that allows for fast and secure data delivery. It distributed
music, media and games using it's distribution platform.

With its eyes on India's retail market, Flipkart acquired Letsbuy, an

online electronics retailer, in 2012, and Myntra, an online fashion retailer,

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for US$280 million in May 2014. Myntra continues to operate alongside

Flipkart as a standalone subsidiary focusing on separate market segments.

In October 2014, Flipkart reprised the Big Billion Days event as a multi-
day event exclusive to the Flipkart app. Flipkart bolstered its supply chain

and introduced more fulfillment centers to meet customer

demand. Flipkart achieved a gross merchandise volume of US$300

million during the event, with the largest volumes coming from fashion
sales and the largest value coming from mobiles.

2015-2024
In April 2015, Flipkart acquired Appiterate, a Delhi-based mobile

marketing automation firm. Flipkart stated that it would use Appiterate's

technology to enhance its mobile services. In December 2015, Flipkart

purchased a minority stake in the digital mapping

provider MapmyIndia and the UPI mobile payments startup PhonePe. In

2022, when PhonePe moved its entire base to India, Flipkart separated the

ownership of PhonePe and shareholders in India and Singapore and the


respective shareholders purchased shares of PhonePe's India entity

directly. It was announced that a cash payout of approximately $700

million was to be made to the former and current employees who were

holding PhonePe's shares.


In 2016, Flipkart acquired the online fashion

retailer Jabong.com from Rocket Internet for US$70 million and in

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January 2017, Flipkart made a US$2 million investment in TinyStep, a

parenting information startup.

In April 2017, eBay announced that it would sell its Indian subsidiary,
eBay.in, to Flipkart and invest US$500 million in the company. While

eBay suggested that the partnership would allow Flipkart to access eBay's

network of international vendors, these plans never came to fruition. In

July 2017, Flipkart made an offer to acquire its main domestic


competitor, Snapdeal, for US$700 to 800 million. It was rejected by

Snapdeal, which was seeking at least US$1 billion.

In August 2018, American retail chain Walmart acquired a 77%

controlling stake in Flipkart for US$16 billion, valuing Flipkart at around

US$20 billion. Flipkart is valued at $37.6 billion as of 2022. It is planning

to go public through a listing in the United States of America in 2023.

Flipkart invested US$4 million in the customer engagement and rewards

platform EasyRewardz on 19 November 2019.

In 2020, Flipkart Wholesale launched a digital platform


for kiranas and MSMEs. In July 2020, Flipkart acquired a 27% stake

in Arvind Fashions Limited's newly formed subsidiary Arvind Youth

Brands for US$35 million. Arvind Youth Brands owns the Flying

Machine brand. Flipkart also announced it will roll out Flipkart Quick, a
hyperlocal 90-minute delivery service for product categories such as

groceries, home accessories, mobile phones, stationery, and more.

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In October 2020, Flipkart acquired a 7.8% stake in Aditya Birla Fashion

and Retail for US$204 million. The following month, Flipkart acquired

the intellectual property of gaming startup Mech Mocha for an


undisclosed amount. The acquisition formed part of Flipkart's plans to

gain and retain users by offering casual games. In November 2020,

Flipkart acquired augmented reality company Scapic, which provides a

suite of tools to create and publish augmented reality, virtual reality, and
3D content quickly and without coding.

As of 2021, the Flipkart app was available in 8 local Indian languages,

Gujarati, Bengali, Odia, Hindi, Telugu, Kannada, Marathi and Tamil.

In April 2021, Flipkart announced the acquisition of the travel booking

portal Cleartrip. Flipkart also entered the hotel industry for the Indian and

global markets. The Flipkart Hotels uses Cleartrip API. Flipkart acquired

Cleartrip's business in Middle East by signing an agreement with Wego -

an online market place for travel that operates in middle east and North

Africa. This included the sale of the website Flyin.com.


In April 2022, Flipkart launched its first grocery fulfilment center

in Northeast India, based in Guwahati. The centre was reportedly women-

run to support the career progression of Flipkart's female employees. The

same month, the company established the Flipkart Foundation to support


entrepreneurship and skill development within the underserved

communities in India.

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In 2022, Flipkart entered the Non-Fungible Tokens

(NFTs) and Web3 segment by letting the Indian purchasers of Nothing

Phone (1) to get Nothing's NFT through the app called Nothing
Community Dots. These NFTs use the Polygon blockchain to host it. The

NFT drop happened at FireDrops - which was done on Flipkart's NFT

marketplace, supported by GuardianLink. In October 2022, Flipkart also

created a shopping platform that was metaverse-based, called Flipverse.


The platform allows people to explore products and shop in a more

interactive way. The Flipverse has been created through a partnership

with a Polygon-incubated firm called eDAO, and Flipverse hopes to

provide a similar experience to the actual mall-like shopping where

people would be able to create their Avatars.

The e-commerce also started a virtual storefront that is dedicated to the

academic needs of students named 'Flipkart Student's Club'. The 'Flipkart

Green' venture was created in 2023 for customers who want to have a

sustainable lifestyle by providing certified sustainable products.


Binny Bansal resigned from the executive team on January 28, 2024, and

over the past few months, he has completely divested his stake. In the last

year, Binny, along with Excel and Tiger Global Management, sold their

entire stake to Walmart, resulting in Binny earning around 1.5 billion


dollars. Walmart had acquired a 77% stake in Flipkart for 16 billion

dollars in May 2018.

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Big Billion Days
In 2017, Flipkart sold 1.3 million phones in 20 hours on 21 September

during its Big Billion Days promotion, doubling the number sold on the
first day of the same event in 2016. Flipkart held a 51% share of all

Indian smartphone shipments in 2017, overtaking Amazon India (33%).

Walmart investment
On 4 May 2018, it was reported that Walmart had won a bidding war
with Amazon to acquire a majority stake in Flipkart for US$15

billion. On 9 May 2018, Walmart officially announced its intent to

acquire a 77% controlling stake in Flipkart for US$16 billion. Following

the purchase, Flipkart co-founder Sachin Bansal left the company. The

remaining management team reported to Marc Lore, CEO of Walmart

eCommerce US. Walmart president Doug McMillon cited plans to help

Flipkart with its sourcing and supply chain while tapping on its expertise

to expand Walmart globally. Indian traders protested against the deal,

considering it a threat to domestic business.


In a filing with the U.S. Securities and Exchange Commission on 11 May

2018, Walmart stated that a condition of the deal prescribed the

possibility that Flipkart's current minority shareholders "may require

Flipkart to effect an initial public offering following the fourth


anniversary of the closing of the transactions at a valuation no less than

that paid by Walmart".

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Following the announcement of Walmart's deal, eBay announced that it

would sell its stake in Flipkart back to the company for approximately

US$1.1 billion and relaunch its Indian operations. The company stated
that "there is a huge growth potential for e-commerce in India and

significant opportunity for multiple players to succeed in India's diverse,

domestic market." Softbank Group also sold its entire 20% stake to

Walmart without disclosing the terms of the sale. Walmart's acquisition


of a 77% stake in Flipkart was completed on 18 August 2018. Walmart

also provided US$2 billion in equity funding to the company.

On 13 November 2018, Flipkart CEO Binny Bansal resigned after facing

an allegation of "serious personal misconduct". Walmart stated that

"while the investigation did not find evidence to corroborate the

complainant's assertions against Binny, it did reveal other lapses in

judgment, particularly a lack of transparency, related to how Binny

responded to the situation."

On 22 December 2023, Flipkart Confirmed that US$600 Million will be


raised from Walmart out of its total fundraising plan of US$1 Billion. The

expected valuation of the deal will range from US$34 Billion to US$37

Billion. In 2022 after PhonePe's separation, Flipkart was last valued at

around US$33 Billion.

Other ventures
In July 2021, Flipkart launched its social commerce marketplace called

Shopsy, which allowed individuals and small businesses to direct sell and

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resell products to customers via social media channels. In December

2021, Shopsy entered the grocery delivery segment in 700 cities across

India. Shopsy surpasses 200 million app downloads on its 2nd


anniversary in the month of July in 2023 with more than 60% of users

hailing from tier-3 markets and other cities.

Business structure
According to a report in November 2014, Flipkart operated with a
complex business structure that included nine firms, some registered in

Singapore and some in India. In 2012, Flipkart co-founders sold WS

Retail to a consortium of investors led by Rajeev Kuchhal. Flipkart's

Indian entities are owned by Flipkart Pvt. Ltd., which is registered in

Singapore. The Singapore-registered entity owns eight Indian companies,

including Flipkart Internet Pvt. Ltd, the company that runs the e-

commerce marketplace Flipkart.com, Flipkart India Pvt. Ltd, the

wholesale business, and Flipkart Logistics Pvt. Ltd, which runs Ekart (the

internal logistics arm that can be used by other e-commerce


players). Flipkart also started Flipkart Health+ (through an app) in 2021

which deals with providing medicines and health services through

technology. This was started with the help of getting the majority share in

Sastasundar Marketplace Limited - an existing company that already was


providing online pharmacy services.

Notable companies in which Flipkart Group owns a controlling stake

include:

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Name Type Since Current stake

Myntra Fashion 2014 100%

Ekart Logistics 2015

Flipkart Wholesale B2B e-commerce 2020 100%

Cleartrip Travel booking 2021 80%

SastaSundar Healthcare 2021 75.1%

Flipkart has made 22 acquisitions and 27 investments, spending over

US$415M for the acquisitions. Flipkart has invested in multiple sectors

such as e-commerce, consumer electronics, local services and more. In


2022, it also revised its policies for sellers in an attempt to make it more

seller-friendly. This included simplifying the rate card and reducing fee

for return costs. In 2022, Flipkart reportedly hosted 1.1 Million sellers.

Funding and Revenue


The initial development budget of Flipkart was ₹400,000 (US$5,000). It

later raised funding from venture capital firms Accel India (receiving

US$1 million in funding 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 funding, netting a total of

US$150 million from MIH (part of the Naspers Group) and ICONIQ

Capital. The company announced on 10 July 2013 that it had raised an

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additional US$200 million from existing investors, including Tiger

Global, Naspers, Accel Partners and Iconiq Capital.

Flipkart's reported sales were ₹40 million (US$500,000) in the FY2008–


09, ₹200 million (US$2.5 million) in the FY2009–10 and ₹750

million (US$9.4 million) in the FY2010–11.

Flipkart reported a loss of ₹2.81 billion (US$35 million) for the FY2012–

13. In July 2013, Flipkart raised US$160 million from private equity
investors.

In October 2013, it was reported that Flipkart had raised an additional

US$160 million from new investors Dragoneer Investment

Group, Morgan Stanley Wealth Management, Sofina SA, and Vulcan

Inc., with a share of the funding coming from existing investor Tiger

Global.

On 26 May 2014, Flipkart announced that it had raised US$210 million

from Yuri Milner's DST Global and its existing investors Tiger Global,

Naspers, and Iconiq Capital.


On 29 July 2014, Flipkart announced that it raised US$1 billion from

Tiger Global, Accel Partners, Morgan Stanley Investment Management,

and a new investor, Singaporean sovereign wealth fund GIC.

In December 2014, after it received US$700 million from another round


of funding, Flipkart had a market cap of US$11 billion.

On 20 December 2014, Flipkart announced its filing application with

Singapore-based company regulator ACRA to become a public company.

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This announcement came after the company received US$700 million in

long-term strategic investments from more than 50 Indian investors. The

US$700 million in funding raised by Flipkart added new investors to the


company's board, including Baillie Gifford, Greenoaks Capital,

Steadview Capital, T. Rowe Price Associates, and Qatar Investment

Authority. Its existing investors DST Global, GIC, ICONIQ Capital and

Tiger Global also participated in this financing round. As of May 2015,


Flipkart had raised US$550 million in additional funding from its existing

investors in a deal that raised its total valuation to US$15 billion.

By August 2015, after raising another US$700 million, Flipkart had

raised a total of US$3 billion over 12 rounds of funding from 16 major

investors. In April 2017, Flipkart underwent another round of funding,

receiving US$1.4 billion in funding from investors

including eBay, Microsoft, and Tencent. On 10 August 2017, SoftBank

Vision Fund invested another US$2.5 billion in Flipkart.

On 19 September 2018, Flipkart Marketplace Singapore injected ₹3,463


crore into Flipkart Internet. The transaction was done in two tranches,

according to regulatory filings.

In March 2021, it was reported that Flipkart was considering the

possibility of going public through a merger with a special-purpose


acquisition company (SPAC) to speed up its listing process in the United

States.

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In 2022, the organization started Flipkart Ventures and created a venture

fund of $100 Million to be invested in other 6 start-ups selected for

Flipkart Leap Ahead, an accelerator program. Each start up will be given


an equity investment of up to $500,000.

The total revenue in 2022 was that of ₹43,357 crore was reported for the

past fiscal year of 2020–2021. This was 25% more than its revenue in the

fiscal year of 2020. The losses were reported to have reduced by 23% to
₹2,445 Crore with total expenses of ₹45,801.

House brands
Flipkart operates several house brands, including Citron (home

appliances) and Digiflip (formerly for electronics and accessories). In

2017, Flipkart launched additional house brands, including Billion

(smartphones), Smartbuy (electronics accessories, effectively replacing

Digiflip), and MarQ (for large appliances, although its launch was

complicated by a trademark dispute with an existing company, Marc

Enterprises).
In 2019, Flipkart began selling Nokia-brand televisions. A 55-

inch, Android TV-based 4K Smart TV was the first product released

under that licensing agreement. A 43-inch TV was unveiled on 4 June

2020.

Flipkart Video
Flipkart launched an in-app streaming service called Flipkart Video in

August 2019, so as to compete with industry rivals like Amazon who

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were also offering premium video options. The initial line up of content

was curated from the service providers like Viu, Voot and TVF.

Flipkart Video Originals


To strengthen its content offering on Flipkart Video, Flipkart forayed into

original content production, known as Flipkart Video Originals. The first

show was launched on 19 October 2019. Named Back Benchers, it was

a Bollywood celebrity quiz show hosted by Farah Khan.

Awards and recognition


 Sachin Bansal was awarded Entrepreneur of the Year, 2012–13

from The Economic Times, a leading Indian economic daily

newspaper.

 In September 2015, the two founders entered Forbes India's richest

Indian by year, debuting in the 86th position with a net worth of

US$1.3 billion each.

 In April 2016, Sachin and Binny Bansal were named

to Time magazine's annual list of the 100 Most Influential People in


the World.

 Flipkart was reported to be at the top in the annual fairwork India

Ratings 2021 - which is a 10-point system that creates a score

based on fair pay, conditions, contracts, management, and


representation. A total of 11 platforms were evaluated by a

consortium of the Centre for IT and Public Policy (CITAPP),

International IIIT Bangalore and the global Fairwork network .The

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methodology included qualitative interviews with 19-20 workers in

Delhi and Bangalore.

Interesting mail titles differentiate one advertisement from the other.


This separates advertisements from the clutter. Differentiation is one

factor that can make an advertisement successful in digital marketing

because consumers are drawn to it and are more likely to view the

advertisement
Establishment of customer exclusivity: A list of customers and

customer‟s details should be kept on a database for follow up and selected

customers can be sent selected offers and promotions of deals related to

the customer‟s previous buyer behaviour. This is effective in digital

marketing as it allows organisations to build up loyalty over email.

Low Technical Requirements: In order to get the full use out of digital

marketing it is useful to make you advertising campaigns have low

technical requirements. This prevents some consumers not being able to

understand or view the advertising campaign.


Rewards: The lucrative offers would always help in making your digital

campaign a success. Give some reward in the end of the campaign. This

would definitely invite more engagement and word of mouth publicity

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PRODUCTS & SERVICES

Grocery
 All types of Grocery available here

Electronics
Mobiles
 Mi
 Realme
 Samsung
 Infinix
 OPPO
 Apple
 Vivo
 Honor
 Asus
 Poco X2
 realme Narzo 10
 Infinix Hot 9
 IQOO 3
 iPhone SE
 Motorola razr
 realme Narzo 10A

Mobile Accessories
 Mobile Cases
 Headphones & Headsets
 Power Banks

26
 Screenguards
 Memory Cards
 Smart Headphones
 Mobile Cables
 Mobile Chargers
 Mobile Holders

Smart Wearable Tech


 Smart Watches
 Smart Glasses (VR)
 Smart Bands

Health Care Appliances


 Bp Monitors
 Weighing Scale

Laptops
Computer Accessories
 External Hard Disks
 Pendrives
 Laptop Skins & Decals
 Laptop Bags
 Mouse
 Computer Peripherals
 Printers & Ink Cartridges
 Monitors
 Tablets
 Apple iPads

27
Televisions
Speakers
 Home Audio Speakers
 Home Theatres
 Soundbars
 Bluetooth Speakers
 DTH Set Top Box
 Smart Home Automation
 Google Nest

Camera
 DSLR & Mirrorless
 Compact & Bridge Cameras
 Sports & Action

Camera Accessories
 Lens
 Tripods
 Network Components
 Routers

TVs & Appliances


Men
Women
Baby & Kids
Home & Furniture

28
SWOT Analysis

Strengths in the SWOT Analysis of Flipkart:

1. Innovative advertisements of Flipkart featuring kids who portray the


role of adults. This increases brand awareness and also expands the
customer base of online shoppers.

2. Flipkart is backed by global investors like Tiger Global, DST Global,


and Naspers

3. Impressive list of acquisitions like Myntra, LetsBuy, Chakpak,


AdiQuity etc

4. Exclusive tie-ups with brands like Motorola Mobility, Xiaomi led to


very successful product launches

5. Venturing into product manufacturing For eg- Digiflip tablets, Citron


home appliances and health care devices

6. Flipkart has a strong logistic support of eKart

7. Flipkart is the first billion dollar ecommerce company in India.

8. Millions of people are registered users with the brand

Weaknesses

The weaknesses of a brand are certain aspects of its business which are it
can improve to increase its position further. Certain weaknesses can be
defined as attributes which the company is lacking or in which the

29
competitors are better. Here are the weaknesses in the Flipkart SWOT
Analysis:

1. Huge investment leading to losses over the years hurts the brand image
of Flipkart

2. Acquisition of loss making firms can add to its burden

Opportunities

1. Business expansion to other countries can be big boost for Flipkart

2. Foray into furniture and fresh product business to increase its breadth
of product categories

3. Better online secure payments can instill more confidence in people to


shop online

Threats

The threats in the SWOT Analysis of Flipkart are as mentioned:

1. Global competitors like Amazon making its foray in Indian online


retail market can reduce Flipkart's market share

2. Investigations by authorities to check its FDI regulations compliance

3. Flipkart's business can be affected by fluctuating economy and


unfavorable market conditions & govt. policies

30
CHAPTER-II
REVIEW OF LITERATURE

31
REVIEW OF LITERATURE

Khosla and Kumar (2017) in their analytical report mentioned that some
of the trends expected to come in near future in e-commerce can be
growth in omni channels, niche businesses, mergers and acquisitions,
tapping more rural markets, rise in internet marketing, focus on services,
rise in digital payment modes, better infrastructure and supply chain
management.
Sharma M. and Mahlawal Seema (2018); In her article discovers that
India's childhood are driven, innovation arranged and certain. By 2018,
Indians under 20 will make up 55% of the populace and employ
proportionately higher spending power. In the west, the young fragment
has quite often been set in opposition to their seniors. Defiance was the
key beginning stage.
Nizar N.A. and Janathan C. (2018) has published article in Indian
Journal of Marketing. Title of article is “Impact of digital marketing on
consumer purchase behaviour”. Marketing is one of the business function
most dramatically affected by emerging information technologies.
Kumar, N., (2022) in his report mentions tremendous growth in e-
commerce is expected to rise 4 times by year 2021 in comparison to
2015. Major contributors to this growth are going to be smartphones and
internet users, rise in awareness among general public, better internet
services, digitalization of most of the initiatives with the support of
government, entry of foreign investors and business players, advanced
payment options available to consumers but Government need to take

32
steps to provide proper legal framework and minimize obstacles in
growth.
Shahjee, R., (2022) states that e-commerce has given a platform to
companies to display their varied products and to make it easy for
consumers to quicky find out products of their interest, which was
comparatively difficult by marketing traditionally. But on the contrary, e
commerce is facing lot of difficulties related to infrastructural capabilities
and computer and internet lack of knowledge among consumers, specially
rural consumers.

Swamynathan. C (2022); In their examination titled “A study on the


lifestyle of youth and its impact on online shopping". Purchaser conduct
contrasts with regards to the items, value, highlights, quality, bundling,
way of life, status, age, age of the client and so on.

Singh (2022), has published article on “Consumer behaviour in online


shopping”. Internet is a really good thing. The Internet gives people a
greater amount of information as we need. It is the best way to get a
comparison of the products that we need.

33
CHAPTER-III
RESEARCH METHODOLOGY

34
3.1 STATEMENT OF THE PROBLEM
STUDY ON DIGITAL MARKETING: A CASE STUDY OF
FLIPKART IN PATNA

3.2 OBJECTIVES OF THE STUDY

The objectives of the study are as below;

1. To find out the scope of Digital Marketing in India.

2. To find out customer opinion about Flipkart & its services in Patna.

3. Role and importance of Social Media in Marketing.

4. To study the awareness of digital marketing.

5. To Study the impact of digital marketing on consumer buying

behavior.

6. To study the growth of Digital Marketing in India.

3.3 RATIONALE

In simplistic terms, digital marketing is the promotion of products or

brands via one or more forms of electronic media. Digital marketing

differs from traditional marketing in that it involves the use of channels

and methods that enable an organization to analyze marketing campaigns

and understand what is working and what isn‟t – typically in real time.

Digital marketers monitor things like what is being viewed, how often

and for how long, sales conversions, what content works and doesn‟t
work, etc.

35
There are a number of ways brands can use digital marketing to benefit

their marketing efforts. The use of digital marketing in the digital era not

only allows for brands to market their products and services but also
allows for online customer support through 24/7 services to make

customer feel supported and valued. The use of social media interaction

allows brands to receive both positive and negative feedback from their

customers as well as determining what media platforms work well for


them and has become an increased advantage for brands and businesses.

Digital marketing activities are search engine optimization (SEO), search

engine marketing (SEM), content marketing, influencer marketing.

The digital marketing sector is booming and expecting to grow at 27% in

2020 to cross the 17,000 crores mark. In 2020, India has around 700

million internet users, and the numbers are expected to grow to over 970

million users by 2025.

3.4 SCOPE OF THE STUDY


The study will help the organization
 Visibility of Flipkart is less in the rural area as compared to
competitors. So it needs to be more visible in that area.

 Digital Marketing Services available on 24/7.

 Digital media is so pervasive that consumers have access to

information any time and any place they want it.

36
3.5 RESEARCH DESIGN

This study has been used descriptive research design.

3.6 SOURCES OF DATA COLLECTION

Information has been gathered through primary and secondary sources.


a) Primary Source: As the name implies, this is original, first-hand data
collected by the data researchers. Such as:
1. Interview Schedule: An interview schedule is basically a list
containing a set of structured questions that have been prepared, to serve
as a guide for interviewers, researchers and investigators in collecting
information or data about a specific topic or issue.
2. Questionnaire: A questionnaire is a list of questions or items used to
gather data from respondents about their attitudes, experiences or
opinions.
3. Opinion Survey: An Opinion survey is a conversation between people
made possible by a relationship of trust between them.
Secondary sources: Information has been collected from secondary

sources such as Internet, newspapers, magazines, company brochure etc.

3.7 SAMPLING TECHNIQUES

Here the „non probability‟ convenience sampling technique to be


selected.

Sample Size: 100

Sample Area: Patna

3.8 STATISTICAL TOOLS AND TECHNIQUES

Mean, Percentage Method has been used for data analysis.

37
CHAPTER-IV
RESULTS & DISCUSSION

38
4.1 DATA ANALYSIS & INTERPRETATION
1. Distribution of Respondents According To Gender?

Gender RESPONDENTS PERCENTAGE

Male 70 70%

Female 30 30%

TOTAL 100 100%

Interpretation:

It is observed that 70% of respondents were male and 30% of respondents were

female.

39
2. Distribution of Respondents According To Qualification
QUALIFICATION RESPONDENTS PERCENTAGE
MATRICULATE 8 8%
INTER 12 12%
GRADUATE 64 64%
POST GRADUATE 16 16%
TOTAL 100 100%

Interpretation: Out of 100 respondents, 8% were matriculate, 12% were


intermediate, 64% were graduate and 16% were post graduate.

40
3. Distribution of Respondents According To Age Group?

Age Group RESPONDENTS PERCENTAGE

Below 15 yrs 4 4%

15-19 yrs 12 12%

20-24 yrs 34 34%

25-29 yrs 34 34%

30 yrs and above 16 16%

TOTAL 100 100%

Interpretations:

Out of 100 respondents, 4% were below 15 yrs, 12% were 15-19 yrs, 34% were

20-24 yrs, 34% were 25-29 yrs and 16% were 30 yrs and above.

41
4. Preference of the different Online shopping sites?
NO. OF RESPONDENTS PERCENTAGE
Flipkart 40 40%
Snapdeal 24 24%
Amazon 16 16%
Myntra 10 10%
Jabong 4 4%
Others 6 6%
TOTAL 100 100%

It reveals that 40% of respondents said Flipkart is one of the most important
online shopping sites.

42
5. Preference of the respondent for the shopping medium?
NO. OF RESPONDENTS PERCENTAGE
Online shopping 72 72%
Offline shopping 28 28%
TOTAL 100 100%

From the above graph it is clear that out of 100 respondent 72% respondent
want to go for online shopping as they find it more convenient and easier for
them but 28% customer want to go through the offline shopping because they
are more comfortable in traditional market.

43
6. Preference of online shopping when price lower than market price?
NO. OF RESPONDENTS PERCENTAGE
Yes 60 60%
No 12 12%
Always 4 4%
Sometime 24 24%
TOTAL 100 100%

It is clear from the study that 60% of people admit that they would prefer
online shopping if they would get price lower than the market price. 24% of
people say that they are not sure which option to choose and 12% say that they
would prefer shop over internet shopping. And 4% people said that they will
prefer online shopping instead of purchasing from offline shopping or
traditional market.

44
7. Mostly purchased goods from online sites (Flipkart)?
NO. OF RESPONDENTS PERCENTAGE
Clothes 52 52%
Electronic items 22 22%
Books 16 16%
Others 10 10%
TOTAL 100 100%

The consumers mostly purchase clothes online comprising of 52% of the


population, The increasing demand of clothes online is because of the variety
of options the consumers get to choose and that to at a reasonable price.
Moreover the quality provided is also superior. So, there is a demand for
clothes in online pages .Next comes the electronic items purchase with 22% of
the total demand. These sites provide these items at factory output price and
also provide a warranty over the items .So, consumers find it reasonable to buy
it online. The next demand comes of books comprising of 16% of the demand.
The other products purchased online covers for 10% of the total items
purchased online like –footwear, cosmetics, etc.

45
8. Is Flipkart website providing the sufficient information?
NO. OF RESPONDENTS PERCENTAGE
Yes 68 68%
Never 6 6%
Sometime 26 26%
TOTAL 100 100%

It reveals that 68% of respondents said yes Flipkart Website provides sufficient
information.

46
9. Delivery of the Product through Flipkart Website on Time?
NO. OF RESPONDENTS PERCENTAGE
Yes 76 76%
No 12 12%
Always in time 10 10%
Never in time 2 2%
TOTAL 100 100%

It reveals that 76% of respondents said that yes Delivery of the product through
Flipkart website on timely.

47
10. Accessing shopping websites Flipkart?
NO. OF RESPONDENTS PERCENTAGE
Fairly important 68 68%
Not important 18 18%
Extremely important 6 6%
Not at all important 8 8%
TOTAL 100 100%

It reveals that 68% of respondents said farily important accessing shopping


website Flipkart.

48
11. Are you aware of Digital Marketing?

RESPONDENTS PERCENTAGE

Yes 75 75%

No 20 20%

Don‟t Know 05 5%

TOTAL 100 100%

Interpretation:

According to the survey, 75% respondents are aware of Digital Marketing,

20% are not aware of Digital marketing and 5% have no idea about Digital

Marketing.

49
12. Would you like to promote your business through Digital Marketing

Strategies?

RESPONDENTS PERCENTAGE

No response 51 51%

Yes 3 3%

No 12 12%

May be 34 34%

TOTAL 100 100%

Interpretation:

According to the survey, 3% respondents would like to promote through

Digital Marketing strategies, 12% are not interested to promote and 34% would

think to promote

50
13. What is the role of Online Marketing in your business (Sales)?

RESPONDENTS PERCENTAGE

Important 28 28%

Neutral 33 33%

Not Important 39 39%

TOTAL 100 100%

Interpretation:

According to the survey, 28% respondents find Online Marketing for Sales

important for their Business, 33% find neutral and 39% find it not important for

their Business.

51
14. What is role of Digital Marketing in your business or Service

RESPONDENTS PERCENTAGE
Just Presence 51 51%
To boost Sales 28 28%
Omni Market 8 8%
To social surfers 13 13%
TOTAL 100 100%

Interpretation:

According to the survey, 51% of respondents find Digital Marketing as Just

presence in their Business, 28% find it to Boost Sales, 8% find it to get Omni

market and 13% find it for Social Surfers

52
4.2 FINDINGS
 It reveals that 40% of respondents said Flipkart is one of the most
important online shopping sites.

 It reveals that 68% of respondents said yes Flipkart Website


provides sufficient information.

 It reveals that 76% of respondents said that yes Delivery of the


product through Flipkart website on timely.

 It reveals that 68% of respondents said farily important accessing


shopping website Flipkart.

 According to the survey, 75% respondents are aware of Digital


Marketing, 20% are not aware of Digital marketing and 5% have
no idea about Digital Marketing.

 It is clear that out of 100 respondent 72% respondent want to go for


online shopping as they find it more convenient and easier for them
but 28% customer want to go through the offline shopping because
they are more comfortable in traditional market.

 It is clear from the study that 60% of people admit that they would
prefer online shopping if they would get price lower than the
market price. 24% of people say that they are not sure which
option to choose and 12% say that they would prefer shop over
internet shopping. And 4% people said that they will prefer online
shopping instead of purchasing from offline shopping or traditional
market.

53
CHAPTER-V
SUMMARY & CONCLUSION

54
SUMMARY & CONCLUSION
In conclusion, position of Flipkart in this market is already quite
advanced already. However, if Flipkart wants to adapt to the new trend,
they would need to ensure change management and also have to address
the customer relation well. They also need to adapt new strategies in
order to maintain their position as well as their role.

Flipkart.com has been following quality and efficiency of customer


service and distribution with decreased cost and agile work flow through
retailers and other supplier‟s network integrally. Flipkart.com is using its
inventory led model focusing on standardization of product delivery with
longrun retention of customers by winning their confidence in e-business
and commerce marketplace. One criticism leveled against Flipkart is that
it is using up funds too quick ly, especially as nobody else in the industry
has raised as much money as it has.

The Overall Brand Value of Flipkart is Good, but it is facing some tough
competitionfrom its global competitors like Ebay and Amazon. But if
talking about domesticmarket i.e India, it is the most superior E-business
portal which is aggressivelyexpanding & planting its roots deep into the
Indian market & at the same time shiftingthe mindset of the people i.e
from going & shopping from physical store to onlinestores, which is
magnificent!

„Flipkart‟ initially followed “word of mouth marketing” to popularize


theircompany. A few months later, the first book company sold on

55
flipkart.com - JohnWoods “Leaving Microsoft to Change the World”.
Subsequent to its success onits book category, flipkart aggressively
marketed themselves on all over the net &specially banked in the social
networks like facebook, twitter so as to get connected tothe users & to all
the aspiring customers, Over the years Flipkart has managed tobuild a
strong community having millons of followers on its twitter & facebook
pagesgiving instant responses and interaction.
Flipkart has also managed to sync all its operations via the mobile apps
on all themajor platforms like android, apple, blackberry & a mobile
website facilitating theonline purchases & selling functions.
From such mobile apps & strong communities online, its is managing
leverage itmarketing & sales offers, promotions & customer database in
providing them thecustomized outlook & offerings & at the same time
keeping them updated about thenew products addition, promotions &
pricing & latest offerings.
Flipkart is continuously aiming to bring down the delivery time of regular
orders, indoing so its investing in its own delivery system & network, As
the time to delivery isone of the important aspects of selling products
online as users want a fast turn aroundtme, its An excellent marketing
strategy by flipkart marketing team to increase thesales revenues & to
optimize the user shopping experience & increasing loyalty byrepeat
purchases.The portals offers a good pricing offers & deals to its users by
the means of cashrewards, loyalty points, discounts, coupons, Frequent
buyer rewards points. it evenoffers goods relatively cheaper pricing
points than it is available in the physicalmarket which in total helps users
save money & at the same time get benefited by themeans of rewards
points.

56
CHAPTER-VI
RECOMMENDATIONS

57
RECOMMENDATIONS

1. Flipkart needs to work to build up its product delivery more strong


and reliable.

2. Visibility of Flipkart is less in the rural area as compared to


competitors. So it needs to be more visible in that area.

3. Flipkart needs to capitalize its strengths and opportunities and


economize and minimize its weaknesses and threats.
4. Flipkart lacks innovation.
5. Expanding into unpenetrated markets
6. Needs to Increase market share in already expanded markets
7. Built more Retail stores or Partnerships with local retail stores.
8. Develop a strategy to increase profitability at least by 30% to 40%.

58
CHAPTER-VII
IMPLICATIONS/LIMITATIONS

59
IMPLICATIONS OF THE STUDY

 Digital Marketing provides a platform to innovative advertising to


be effectively used for business growth of any industries.
 Digital Media creates a real Connection between companies and
customers; that connection creates a trend for purchase intensity.
 Digital Networking provide ample of opportunities for interacting
with any industries partners.
 The ability to interact with the customers of the company should be
viewed as a very positive aspect by any business. It offers very real
insight into how the company‟s are viewed.
 Measuring the affects that reviews, Wall-posting, Blog, Photo
Video, Pop-up, tweets and posts can directly have on bookings
could be quite difficult.
LIMITATIONS

 Shortage of time factors one of the major constraints.

 It is very difficult to check the accuracy of the information

provided.

 All the secondary data was not readily available.

 Limited Sample.

 It may be possible that some of the respondents may give the

incorrect information.

60
CHAPTER-VIII
DIRECTION FOR FURTHER RESEARCH

61
DIRECTION FOR FURTHER RESEARCH

1. A study on Digital Marketing in India

2. A Comparative study on Online Website of Flipkart and Amazon.

2. A Study on Digital Marketing and its impact on Traditional Marketing.

3. Social Media Marketing in Online Industry.

62
REFERENCES/BIBLIOGRAPHY

BOOKS:

 Bonchi, F., Castillo, C., Gionis, A., and Jaimes, A. 2011. “Social

Network Analysis and Mining for Business Applications,” ACM

Transactions on Intelligent Systems and Technology (TIST) (2:3),

Article 22.

 Bitner, M. J., Booms, B. H., and Tetreault, M. S. 1990. “The


Service Encounter: Diagnosing Favorable and Unfavorable

Incidents,” The Journal of Marketing (54:1), pp. 71-84.

 B. Rosenbloom, “Marketing Channels: A management view, “6 th


edition, The Dryden Press, New York, 1999.

 Chalam, G. (2014), e - Commerce and its structural Development


in India - An Analysis. The IUP Journal Of Information
Technology.

 Dahiya, D. B. (2013), Challenges in online shopping in India.


International journal of Scientific & Engineering Research.

 Dr. Venugopal and Swamynathan C (2016), TopicA study on the


life style of youth and its impact on online shopping. IJEMR-
December 2016, Vol-6

 Khansgiwala Vikasand Sainy Monika (2014), Topic- Factors


influencing consumer buying behaviour towards bikes among
Indian youth. Vol.4, No.1,

63
 Nizar N.A and Janathan. C (2018), Topic- Impact of digital
marketing on consumer purchase behaviour. APIIT Business, law
and Technology conference 2018,July 19th 2018, Colombo, Sri
lanka

 Tripathi, P. C. (2007), Research Methodology in Social Sciences,


6th Revised and Enlarged Edition, Sultan Chand & Sons

Website:

www.flipkart.com

www.flipkart.com/about-us

http://www.flipkart.com/s/press#

64
QUESTIONNAIRE

Name : …………………………………………………………………….

Age : ……………………………………………………………………..

Contact No. ……………………………………………………………..

Address : ………………………………………………………………..

…………………………………………………………..........................

1. Distribution of Respondents According To Gender?

a) Male b) Female

2. Distribution Of Respondents According To Qualification

a) MATRICULATE b) INTER

c) GRADUATE d) POST GRADUATE

3. Distribution Of Respondents According To Age Group?

a) Below 15 yrs b) 15-19 yrs

c) 20-24 yrs d) 25-29 yrs

e) 30 yrs and above

4. Preference of the different Online shopping sites?

a) Flipkart b) Snapdeal

c) Amazon d) Myntra

e) Jabong f) Others

65
5. Preference of the respondent for the shopping medium?
a) Online Shopping b) Offline Shopping

6. Preference of online shopping when price lower than market


price?
a) Yes b) No

c) Always d) Sometimes

7. Mostly purchased goods from online sites (Flipkart)?

a) Clothes b) Electronic items

c) Books d) Others

8. Is Flipkart website providing the sufficient information?

a) Yes b) Never

c) Sometime

9. Delivery of the Product through Flipkart Website on time?

a) Yes b) No

c) Always in time d) Never in time

10. Accessing shopping websites Flipkart?

a) Fairly important b) Not important

c) Extremely important d) Not at all important

11. Are you aware of Digital Marketing?

a) Yes b) No c) Don‟t Know

66
12. Would you like to promote your business through Digital

Marketing Strategies?

a) No Response b) Yes

c) No d) May be

13. What is the role of Online Marketing in your business (Sales)?

a) Important b) Neutral c) Not Important

14. What is role of Digital Marketing in your business or Service

a) Just Presence b) To boost sales

c) Omni Market d) To social surfers

67

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