Presented by:Ravindra Lattoo(44) Presented by:Ravindra Lattoo(44)

CONTENTS
BIRTH OF FLIPKART.COM

WHY BOOKS AS THEIR FIRST CHOICE?

GROWING STORY OF FLIPKART.COM MARKETING MIX OF FLIPKART.COM RECOMMENDATIONS

BIRTH OF FLIPKART.COM
Sachin Bansal (CEO and Co-founder) & Binny Bansal

(COO and Co-founder) started Indias Own Amazon.com named as Flipkart.com in October 2007 selling currently a book a minute emerging as largest online book store in India with a intial investment of 4 lakh rupees Flipkart.com ventured into E-commerce in 2007 by their founders as They were IIT-Delhi graduates Big believers and passionate about E-commerce Sniffed the trend of increasing internet penetration in India. Had better knowledge of technology, distribution and logistics. Would give better experience to consumer in terms of user friendliness and safe and secure netpayment options.

WHY BOOKS AS THEIR FIRST CHOICE?

Books is the core selling product of Flipkart.com right from

the start. Book was chosen because Lower transaction size.i.e, Books approximately starts with Rs.100, so it becomes easy for the consumer to trust the new Flipkart.com for 1st transaction rather than mobile phones/cameras. Better shelf life. Shipping and handling of books is easy. To emerge as a pioneer in book retailing rather than venturing comparison shopping engine.

GROWING STORY OF FLIPKART.COM

Started from 2 employees,2 suppliers

and now has around 4500 employees and >500 suppliers now. Started with books first then mobiles and accessories as shown besides. Flipkart had a revenue of 4 crore in FY 2008 - 2009, 20 crore in FY 2009 2010, 75 crore in FY 2010 - 2011, and the revenue for FY 2011 - 2012 which ends on 31 Mar 2012 is expected to be 500 crore.The company targets revenues of 5000 crore by 2015.

MARKETING MIX OF FLIPKART.COM

PRODUCT
Website is great, easy to use, easy to browse through the

products, add products to wishlist or to a cart, get product reviews and opinions, pre-order products, make convenient payments using different methods and better Search Engine Optimization.
Quality level of the products is absolutely fine E.g., If we take the

quality of books available in Crossword and Landmark is same as the quality of books ordered by Flipkart.com.
Products are packed in such a way that they are Tamper proof,

weather proof and breakage proof.

Product line on Flipkart.com have warranties as promised by the

brand of the product if applicable. E.g., Bajaj MX 2 1200 Watts Iron with 2 Years Bajaj India Warranty and extra paid warranty for the particular brand is available if applicable.

PRODUCT
30-day replacement guarantee for faulty products. (Video for the

same).
Product line is extensive one as discussed earlier. Derives

around 50% of its revenue from selling books online.

Flipkart as a brand has already differentiated itself as a pioneer

in book retailer, trustworthy in terms of swift services and secure payments, quality-oriented products with lower price offerings than retail market), innovative product line,customer delightful service which has helped them to form its own distinctive image better than few unheard competitors such as Tradus.in and Indiaplaza.com.

PRODUCT
Some unique product features of

Flipkart.com such as Wishlist E-gift voucher

PRODUCT
Flipkart launched a new Electronic Wallet feature that allows

shoppers to purchase credit to their Flipkart account using credit or debit cards, and can subsequently be utilized to make purchases on the site, as and when required.

PRODUCT
Affiliate

PLACE
Channel type: Words of mouth (if we can say that) which has

been key driver for their growth.

When an order is placed they either serve the order from their

inventory or procure the book on demand from various suppliers and then deliver the customer.
As on date more than 80% orders of Flipkart are handled via

warehouses which helps in quick and efficient service.

We deliver orders in 1 day in Tier-I cities and 2-3 days in Tier II

cities and 3-5 days Tier III cities

Shipping and Courier would act as intermediaries in this process.

PLACE
Warehouses are located in the following cities, often near

airports. Bangalore Chennai Delhi Hyderabad Mumbai Noida Pune Kolkata

PRICE
Price of the product taking account of various expenses such as

Supplier expenses, Transportation expenses, Packaging expenses, Shipping expenses,Courrier expenses, inventory maintenance expense, office and stationery expenses, sales and advertisement expenses, taxes, depreciation, discount allowances and many more expenses.
Roughly about 5-7% profit per book orders which indicates that

generation of revenue is on volume basis.

Differentiated themselves by giving best selections, best services

at lowest best possible prices. (Video for the same)

Discounts upto 35% across all categories. Upper edge in competitive pricing.

PRICE
Competetive Pricing

PROMOTION
Employees of divisions like Website, Business Planning and

Analytics, ERP, Business Development, Product Management and Marketing, Supply-Chain Management and Customer Support are generating revenue for it.
Selection Criteria at Flipkart:-While years of experience are

always beneficial for a candidate, Flipkart's focus is to hire those who are able to consistently raise the bar and introduce a variety of innovations to move this organization forward. As Flipkart grows, we feel it is absolutely necessary that our employees are also able to grow professionally with the organization.
Adequate Training as per their roles and responsibilities is given

to them accordingly and incentives. Telephone Sales force is only 2% of the total employees focussing to reduce the unsold/goods not much in demand.

PROMOTION
Majority of Flipkart are employed in Customer support division. It is the only customer support division in India having 24x7

customer support functioning for issues such as regarding choice of the product to purchase,shipping,courier,how to order on website, mode of payment, gift voucher, order status & cancellation and returns. Having even tie up with Skype for the same on the website for user delight. Unique tool of Sales Promotion is Affliate on their website. Publicity is by words of mouth publicity generating trust and accountability to users. (Video for the same).

PROMOTION
As internet/web strategy used Google Ad-words, blogs,social

networking sites such as twitter,facebook,used Google ad-words, e-mail campaigns. Advertising focused on first Words of mouth from 2007-10 as the advertisment cost was not affordable Focused on Print and TVC from 2011 onwards. Launched their first campaign in tvc on 05/05/2011 with the concept of Granny, Mouse, Magic Presenting The Concept of Getting Books Delivered at Doorsteps at just one click of The Mouse through a Fairy-Tale. Launced their second campaingn No kidding. No

worries that we are serious about our promises we make and experience shopping safely, delightfully and with ease.

RECOMMENDATIONS
Should start its own courier service to save expenses.

Make relationships with every possible supplier of Tier I cities as major

revenue comes from them.

Tie up with international suppliers. Advertise more in TierII and Tier III cities by hoarding and print media

and Transit advertising.

If affordabe use movieplex advertising. Have localization of content and website if extending business to foreing

nations.

RECOMMENDATIONS
Sell textbooks as a band and magazine

subscriptions or fortnightly magazines at Flipkart.com in books category. Sell Musical instruments in Music category. Add a new category of Clothing,Shoes and jwellery in your product line. Sell Toys and Games(not video). Add a new category of Sports and Outdoor Category in your product line.