Post on 13-Nov-2014
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Introduction
Established in 2007 & headquartered in Bangalore, Karnataka.
9000+ employeesThe company is registered in Singapore.Among top 10 most visited websites in India.WS retail, Digiflip , E-kart are also organizations
controlled by Flipkart.Sales of over 1 bn INR in 2013, and projected
sales of 50 bn INR by 2015.
Introduction
Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of the [Indian Institute of Technology Delhi].
They had been working for Amazon.com previously. The business was formally incorporated as a company in
October 2008 as Flipkart Online Services Pvt. Ltd. During its initial years, Flipkart focused only on books, and
soon as it expanded, it started offering other products. The first product sold by them was the book Leaving
Microsoft To Change The World, bought by VVK Chandra from Andhra Pradesh.
Flipkart’s sales chart
2009 2010 2011 2012 2013 2014 2015
40 200 750 2000 500010000
50000
Sales in million Rs
Website screenshot
Flipkart’s Approach
Awards
Sachin Bansal, got Entrepreneur of the Year Award 2012-2013 from Economic Times.
Flipkart.com was awarded Young Turk of the Year at CNBC TV 18's 'India Business Leader Awards 2012.
Flipkart.com- got nominated for IndiaMART Leaders of Tomorrow Awards 2011.
Flipkart.com, secured second position in the List of Cheapest Mobile Store 2013, compiled by Indian e-commerce observer Zoutons.com.
Funding
4 Lac INR by its founders. Accel India $1 mn in 2009. Tiger Global $10 mn in 2010 & $20 mn in 2011 MIH(part of Naspers Group) & ICONIQ Capital $150 mn 2012 The company raised around $200 mn in 2013 from its existing
investors. The company claims to have raised $1 bn in 2014 from Tiger
Global Management LLC, Accel Partners, and Morgan Stanley Investment Management and a new investor Singapore sovereign-wealth fund GIC.
Acquisitions
2010 WeRead – a social book discovery tool
2011 Mime360 & Chakpak.com – Both the
websites are digital content platforms.
2012 Letsbuy – Indian e-retailer in electronics.
2014 Myntra – Indian e-retailer in Apparels.
Challenges
To build trust in the customers.
Handling customer complaints.
To build effective Payment system.
Seasonal fluctuations in demand.
Competition from established players.
Efficient logistics.
Porter five forces model
Competition(High)
Amazon, Ebay, Snapdeal
Threat of new entrants
(Moderate)
Threat of substitutes
(Low)
Bargaining power of
buyers (High)
Bargaining power
suppliers (Low)
Large supplier base and increased popularity of Flipkart
Lot of online and offline retailers, hence customer has lots of options.
Only resource heavy or tech intensive organizations can compete
Substitutes cannot match the price, delivery speed & other delights.
SWOT AnalysisSTRENGTHS 1. Self owned logistics i.e E-kart.2. Strong brand value.3. Self owned online payment
gateway i.e Payzippy.4. Exclusive tie-ups.5. Customer service.
WEAKNESSES1. Investor driven organization.2. Capital & technology intensive.3. Less reach compared to
physical stores.4. No global reach.5. Shipping cost for small value
order
OPPORTUNITIES1. Global markets.2. Growing demand for e-tailers.3. Increasing access to internet.4. Rapid adoption of mobile
platforms.
THREATS1. Economic downturns.2. Competition from giants.3. Price wars.4. Insecure online transactions
due increased cases of hacking.
Why Flipkart?
Easy to search for products.
Convenient payment options.
Consumer satisfaction guarantee.
Quick door step delivery.
Low price as compared to offline stores.
Competition Analysis
Flpikart’s success mantra
Great shopping experience.
Easy to use website.
Excellent customer service.
Secure and hassle free payment system.
Strong brand value & brand recall.
Flipkart Mobile App
The mobile app uses a separate server in order to manage the web traffic.
Flipkart First
Delivery options
Flipkart EMI payment option
Minimum order amount should be Rs 4000. Cart should contain items from a single seller. No processing fees. Tie-ups with AMEX, CITI, HDFC, ICICI & SBI banks. Below table shows EMI plans for a Rs 20,000 purchase on
Flipkart.
Tenure (months) EMI Total effective amount
3 Rs 6,800.44 Rs 20,401.33
6 Rs 3,450.97 Rs 20,705.80
9 Rs 2,344.32 Rs 21,098.89
12 Rs 1,786.35 Rs 21,436.15
E-kart
E-kart
Return & Exchange policies. Friendly return policy
Flipkart replacement guarantee.• If you have received a product in a damaged or defective
condition or it is not as described, you can return it to get a replacement within 30 days of delivery from seller WS Retail, or within 10 days of delivery from other Sellers.
Flipkart buyer protection• seeks to help Buyers who have an issue with a product as
the Seller is unable to provide resolution and the Buyer is unconvinced
After sales services
1. 30-DAY Money back guaranteeUnsatisfied Calls/Connects Product Customer with flipkart returned Replacement customer service by logistics or money is partners returned in the account2. E-WALLET Feature ( flipkart adds new dimensions to its operating cycle)Loyal Deposit Use it for furtherCustomer more money purchases
3. Reporting & Analytics On the basis of your past Schemes/ Discount/ Offers/ Behavioral purchase Recommendations are generated4. Reviews
First to review Certified Buyer
Customer behavior modeling
Browse history.
Compare history.
Purchase history.
Wish list items.
Product ratings.
SegmentationPeople who have internet access.People who live at accessible locations.
TargetingPeople who do online shopping.People who have not tried online shopping.People who want convenient shopping experience.
PositioningNo kidding, no worries.Online megastore.One stop solution.We sell only genuine and new items.
Marketing Strategy
SEO(Search Engine Optimization)
SEO & Google Click Ads
Social Media Marketing
Print Ads
Order Lifecycle
Confirm payment & order
Provide convenient payment options
Provide details about the product/Product comparisons
Provide search tools
Attract users to the website
Order Lifecycle
Manage returns/replacements if needed
Generate tracking ID & communicate to customer
Pack & Ship the item
Check the item to be as per description
Get the item from the supplier
What went right for Flipkart
Technology advancement and its adoption by people.
Flipkart started with books i.e Low investment and fast turn around time.
Well thought website. Efficient distribution network. Tie-ups with lot of suppliers & known
brands .
Future road map
Increase the customer base.
Sales projection of Rs 50 bn by 2015.
Increase no of warehouses and warhousing
capacity.
Expand product portfolio except grocery &
automobile.