CHAPTER 1: COMPANY INTRODUCTION:

INTRODUCTION OF FLIPKART.

Flipkart Pvt Ltd. is an e-commerce company based in Bengaluru, India. Founded

by Sachin Bansal and Binny Bansal in 2007, the company initially focused on
book sales, before expanding into other product categories such as consumer
electronics, fashion, and lifestyle products. The service competes primarily with
Amazon's Indian subsidiary, and the domestic rival Snapdeal. as of March 2017,
Flipkart held a 39.5% market share of India's ecommerce industry.Flipkart is
significantly dominant in the sale of apparel (a position that was bolstered by its
acquisitions of Myntra and
Jabong.com), and was described as being "neck and neck" with Amazon in the sale
of electronics and mobile phones. Flipkart also owns PhonePe, a mobile payments
server Interface (UPI).

In August 2018, U.S.-based retail chain Walmart acquired a 77% controlling stake
in Flipkart for US$16 billion, valuing it at $22 billion.

Sachin bansal and Binny bansal.

Flipkart received mass criticism on the subject of Net Neutrality after their
partnership with Airtel to use Airtel Zero platform which would had made the
Flipkart app free for Airtel Users.On 14 April 2015 Flipkart pulled back its
decision to use Airtel Zero platform On 6 October 2014 Flipkart launched Big
Billion Day with intention to increase the popularity by targeting billion sales in 1
day. This even though helped Flipkart achieve the target led to public outcry and
wide spread criticism across consumers, competitors and partners heavily
damaging its reputation.

Many users could not place the order because the servers were not capable enough
to take load and was giving random errors to users which led to frustration among
the customers.

Binny Bansal is originally from Chandigarh, the capital city of Punjab and
Haryana. His business partner, Sachin Bansal, is also from Chandigarh. Although
they share the same last name, they are not related.

They both coincidentally, were students of computer science engineering at Indian

Institute of Technology, Delhi. Bansal currently resides in Bangalore. His father is
a retired chief manager at a bank and his mother is in the government sector.
He has no siblings and is married to a homemaker.Before co-founding Flipkart,
Bansal was employed by Amazon for nine months, and before that he had been
rejected by Google twice. Bansal and his business partner Sachin Bansal initially
thought of starting a comparison search engine, but realized that the market for E-
commerce in India was very small. Hence, after leaving Amazon in 2007, they
founded Flipkart as an e-commerce company. Before joining Amazon, Binny had
worked with Sarnoff Corporation for a year and a half, where he developed a lane
sensor device for cars which would warn you and beep automatically if you
changed lanes without giving a signal.
In 2016, Bansal became the CEO of Flipkart, where he worked on strategic
development, direction and business management. in 2017, he assumed the role of
CEO of Flipkart Group and his previous position was handed to Kalyan Krishna
Murthy.

In 2018. Walmart acquired a 77% stake in Flipkart group. After the acquisition,
Bansal assumed the role of chairman and continued as Group CEO. His 5.5% stake
in Flipkart was valued at $1 billion after the acquisition. He resigned from Flipkart
in November.

Flipkart:- Vision, Mission and Values.

Vision
“To become Amazon of India”.

Mission
“Providing a delightful and memorable customer experience”.

Objective
“Completely hassle free shopping experience with best prices in India”.

“Making books easily available to anyone who has internet access”.

Core Values of Flipkart:

1. Customer Obsession

2.Ownership

3.Impact

4. Honesty

5. Selflessness

6. Communication

7. Innovation

By seeing the mission and values of the organization, we can infer that they are in
sync with each other. For example, its mission statement reads out that it wants to
provide customers with online memorable experience and one of its values is
customer obsession. So, until and unless you are concerned about your customers
or obsessed with your customers, you can’t provide delightful experience.
Product and Services:
Myntra acquisitions:

Marking the biggest consolidation in the e-commerce space in India, homegrown

e-retailer Flipkart has acquired online fashion retailer Myntra in an estimated Rs
2,000 crore deal.

While the companies did not disclose the deal size, sources suggest the deal could
be worth about Rs 2,000 crore.
"It is a 100% acquisition and going forward, we have big plans in this segment.
Flipkart and Myntra are getting together to create one of the largest e-commerce
stories and together we will dominate the market," Flipkart co-founder and CEO
Sachin Bansal told reporters here.
Flipkart, which started in 2007 as an online bookstore, sells products across
categories, including fashion and electronics. It also sells white goods and
furniture. The move is expected to help Flipkart strengthen its apparel portfolio and
compete more aggressively with peers like Amazon and Snapdeal. Myntra will
continue to operate as a separate entity with its co-founder and CEO Mukesh
Bansal joining Flipkart board and heading the fashion business. "It was very
essential to keep Myntra a separate entity and preserve its culture. I'm here for the
long haul and e will continue to grow in the market," Mukesh Bansal said. lndia's
e-commerce market has seen huge growth in the past few years as more people log
on to the Internet to shop. While apparel and electronics are bestsellers for most e-
commerce firms, categories such as home decor and household items are also
popular. The industry, estimated to be worth about $3 billion currently, has firms
such as Snapdeal, eBay and
Amazon which follow the marketplace model. Led by increasing Internet
penetration and youngsters shopping online, Flipkart's annualised sales crossed $1
billion (over Rs 6,100 crore) a year ahead of target. It had estimated to reach the
billion dollar mark for gross merchandise value by 2015. Flipkart, which also
operates under the marketplace model allowing retailers to offer products on its
platform, has since its inception raised over $500 million from investors. The
Bangalore-based firm, founded by Sachin and binny bansal
Last year, Flipkart raised $360 million from private equity firms, one of the largest
funding deals in the Indian e-commerce space. Myntra sells products from over
650 brands like Nike, HRX by Hrithik Roshan, Biba and Steve Madden and
clocked revenue of about Rs 1,000 crore in the previous financial year. It aims to
double its revenue in this financial year as it expands its seller base and add
products. Myntra has about 100 sellers on board and plan to increase this no. to
1000 by fiscal end.

Flyte Digital Music Store.

In October and November 2011, Flipkart acquired the websites Mime360.com and
Chakpak.com. Later, In February 2012, the company revealed Its new Flyte Digital
Music Store. Flyte, a legal music download service In the vein of iTunes and
Amazon.com, offered DRM-free MP3 downloads But It was shut down on 17 June
2013 as paid song downloads did not get popular in India due to the advent of free
music streaming sites.

Exclusive Product Launches.

Motorola Mobility, previously owned by Google but then sold to Lenovo, In an

exclusive tie up With Flipkart launched its budget smartphone Moto G in India on
5 February 2014. This triggered an overwhelming response from online shoppers
and more than 20000 units were sold Within hours of launch on Flipkart. After the
Moto G successful debut launch, Flipkart was looking for a long term tie up With
Motorola Mobility. The Moto G success story, led to an another exclusive tie up
between Flipkart & Motorola Mobility, who launched their flagship Android
smartphone, the Moto X on 19 March 2014.
After Moto G and Moto X, that Invited the Moto E, the newest member of Moto
family which is even cheaper than Moto G on 13 May 2014. The sale of Hugh-end
smartphone Xiaomi MI3 produced by Xiaomi Tech was launched in India on an
exclusive tie-up with Flipkart.
The first batch was sold out within 39 minutes on 22 July 2014, the second in 5
seconds on 29July 2014. The sale was proceeded on pre-registration mode where
more than 150000 buyers booked for the 5 August 2014 sale. This got sold off In
less than 2 seconds Following this Xiaomi Tech decided to sell 20,000 pieces In
the next sale scheduled for 12 August 2014.
On September 2, 2014. Flipkart held a flash sale of the budget Android smartphone
the Xiaomi Redmi1S Which was launched In India in July 2014. 40,000 units
priced at Rs 5999 each were sold within seconds. In the second round of Xiaomi
Redmi1S 15 sale held on Sept 9, 2014, 40,000 units were sold Within a span of4.5
seconds, slightly longer than the first sale, which lasted just 4.3 seconds.
Third round of Redmi 1S sale held on Sept 16, 2014 with again 40,000 units sold
in fastest of all 3.4 seconds. In the 4th round of sale of Redmi 1S held on Sept 23,
2014, Flipkart put more units this time, 60,000 units so out of stock in 5.2 seconds.
In the latest Flash sale held on Sept 30, 2014, once again 60,000 units 30 out of
stock in 13.9 seconds. Redmi Note In India exclusively through Flipkart.
The first flash sale of 50,000 Redmi Note devices held on December 2, 2014 and
all the devices sold out in mere 6 seconds, just like all the earlier flash sales of
Xiaomi held at Flipkart.

InHouse Products.

In July 2014 Flipkart launched Its own set of tablet, Mobile phones & Tablets, The
first among these series of tablet phones was Digi flip Pro XT 712 Tablet.

In July 2014 Flipkart launched its first networking router, under Its own brand
name named DigiFlip WR00I 300 Mbit/s Wireless N Router.

In September 2014 Flipkart launched its in-house home appliances and personal
healthcare brand Citron. The label includes a wide range of cooking utilities and
grooming products.
CHAPTER 2: INDUSTRY OVERVIEW OF E-COMMERCE
COMPANY.

India has an internet user base of about 250.2 million as of June 2014. The
penetration of e-commerce is low compared to markets like the United States and
the United Kingdom but is growing at a much faster rate with a large number of
new entrants. The Industry consensus is that growth is at an inflection point
Unique to India (and potentially to other developing countries), cash on delivery is
a preferred payment method. India has a vibrant cash economy as a result of which
80% of Indian e-commerce tends to be Cash on Delivery. However. COD may
harm e-commerce business in India in the long run and there Is a need to make a
shift towards online payment mechanisms. Similarly, direct Imports constitute a
large component of online sales. Demand for international consumer products
(including long-tail items) Is growing much faster than in country supply from
authorised distributors and e-commerce offerings.

Market Size and Growth.

India's e-commerce market was worth about $3.8 Billions in 2009, and went up to
$12.6 billion in 2013. In 2013,the e-retail market was worth USS
$ 2.3 Billions. About 70% of India's e-commerce market is travel related. India has
close to 10 million online shoppers and is growing at an estimated 30% CAGR
Vis-a-VIS a global growth rate of 8-10% Electronics and Apparel are the biggest
categories In terms of sales. Key drivers in Indian e-commerce are:
Increasing broadband Internet (growing at 20% MOM) and 36 penetration. Rising
standards of Living and a burgeoning, upwardly mobile middle class with high
disposable incomes.

Availability of much wider product range (Including long tail and Direct Imports)
compared to what is available at brick and mortar retailers.

Busy lifestyles, urban traffic congestion and lack of time for offline shopping.

Lower prices compared to brick and mortar retail driven by disIntermediation and
reduced inventory and real estate costs.

Increased usage of online classified

Sites, With more consumer buying and selling secondhand goods.

Evolution of the online marketplace model with Sites like Jabong.com, Flipkart,
Snapdeal.

India's retail market is estimated at $470 billion in 2011 and is expected to grow to
$675 billion by 2016 and 850 billion by 2020, estimated CAGR of 7%. According
to Forrester, the E-commerce market In India is set to grow the fastest Within all of
over the Country.

Closures.
Though the sector has Witnessed tremendous growth and is expected to grow, a lot
of e-commerce ventures have faced tremendous pressure to ensure cash flows. But
it has not worked out for all the e-commerce websites. Many of them like
Dhingana, Rock.in, and Seventy MM amongst others had to close down.

Infrastructure.

There are many hosting companies working in India but most of them are not
suitable for E-commerce hosting purpose, because they are providing much less
secure and threat protected shared hosting. E-Commerce demand highly secure,
stable and protected hosting. Cyber security issues of e-commerce business in lndia
would be required to be managed by Indian e-commerce stakeholders In the near
future. In fact. Indian government is planning to Introduce cyber security breach
disclosure norms In India very soon. Recently Target Corporation suffered a cyber-
attack that has put it under litigation threat In multiple Jurisdiction.

There could be various methods of e-commerce marketing such as blog, forums,

search engines and some online advertising sites like Google AdWords and Adroll.

India has got its own version Cyber Monday known as Great Online Shopping
Festival in December 2012, when Google India partnered with E-commerce
companies Including Flipkart, HomeShopl8, Snapdeal, India times.

Regulatory Violations and Unfair Practices.

Legal Issues of e-commerce In India are generally Ignored by e-commerce
websites. This may change In the near Future as foreign companies and E-
commerce portals would be required to register in India and comply With lndian
laws. E-Commerce websites dealing with nutraceuticals, Sitcom, Ayurvedic
products,online pharmacies, online payment, online poker, etc are violating laws of
lndia.

Enforcement directorate (ED) of lndia has already initiated legal actions against
companies dealing with Bitcoins in India. Tax liability of foreign companies like
Google. Facebook, etc is also under considerations in India.

Similarly, Illegal online sales of prescribed drugs by illegal online pharmacies of

lndia are also under scrutiny of regulatory authorities of India. Myntra, Flipkart
and many more E-commerce websites are under regulatory scanner of ED of India
for violating Indian laws and policies. US based transport application provider
Uber Inc has also been questioned by the service tax department of India.

The Federation of Publisher's and Booksellers' Associations In India (FPBAI) has

also questioned the Predatory pricing tactics adopted by Various e-commerce
websites in India. The Confederation of All India Traders (CAIT) has also decided
to approach the Competition Commission of India to oppose the predatory pricing
tactics of Indian e-commerce websites.
CHAPTER 3: RESEARCH AND METHODOLOGY.

The main purpose of the study is to check customers' satisfaction in the services of
Flipkart and also the product availability at the Web Portal of Flipkart and making
new Customers for the company.

Managers are always Curious about the position of their company making position
in the market which largely depends upon the company's goodwill. in order to
maximize the sales and profit, company must have Outstanding satisfaction to the
retailers, wholesaler, and customers as well. So market survey of customer
satisfaction and availability of products at the Web Portal will provide better
insight to the company's market position of company as well as compared to the
competitors. It helps the organisation to hand out the brand being sold most by the
distributors along With them shocking and also consumer satisfaction.
RESEARCH OBJECTIVES.

To determine and measure the satisfaction level in the services provided by

Flipkart among the customers.

To measure the availability of several stuffs at the web portal of Flipkart.

To aware the customers about the services and offers provided by Flipkart with
the special reference to Flipkart.

To Improve the availability of several stuffs at the web portal and Influence the
customers to access Flipkart for shopping.

Research Design.
The research was conducted to know the various factors of services offers by
Flipkart which affected the satisfaction level of customers and to measure the
availability of Products at the Web Portal of Flipkart.
Descriptive Research Design.

Descriptive research is also called Statistical Research. The main goal of this type
of research is to describe the data and characteristics about what is being studied,
The idea behind this type of research is to study frequently, averages, and other
statistical calculations Although this research is highly accurate, It does not gather
the causes behind a Situation. Descriptive research is mainly done when a
researcher wants to gain a better understanding of a topic for example, a frozen
ready meals company learns that there is a growing demand for fresh ready meals
but does not know much about the area of fresh food and so has to carry out
research in order to gain a better understanding. It is quantitative and uses surveys
and panels and also the use of probability sampling. Descriptive research is the
exploration of the existing certain phenomena. The details of the facts won't be
known. The existing phenomena facts are not known to the Persons.

PRIMARY DATA ANALYSIS.

Method of data collect on was done by the way of survey. Primary data was
collected through field survey with the help of structured questionnaire. The
questionnaire was filled by the consumers to know the satisfaction level of Flipkart
and attained by using also took the personal interview of the Delivery Boys of
Flipkart in Mumbai city.

SECONDARY DATA .
Secondary data is the data which has already been collected by someone else for
the same, Similar or for different purpose. The secondary data was also collected
through various researches and websites. The secondary data was used for the
purpose of preparing questionnaires, Industry & company profiles.

Sampling and Sample Size.

Sample Size & Sample Unit:

The sample size consists of 100 respondents from Mumbai regions for knowing the
satisfaction level of customers. The sample of 100 respondents was taken to know
the satisfaction level towards Services offers by Flipkart.

Sample Selection Procedure: Multistage sample selection technique is used.

At first stage, I have used random sampling technique to the places from where l
have to select Delivery Boys in Mumbai region because it was not possible to
select every delivery boys at a time
because of broad area of Mumbai,

At second stage, we used convenience sampling technique to take responses

from the respondent because respondents are not easily available at the time of
meeting.

Target Respondents:

The target respondents were the users of Flipkart and Delivery Boys of Flipkart.
Data Requirement and Collection.

Primary Source:
Data was collected by using questionnaires and by Interviewing variety of Delivery
Boys of Flipkart directly.

Secondary Source:

Secondary source of data Includes published articles, research papers, published

books, different research work done previously, Relevant papers or Journals,
magazine etc. and also used other reports from Internet, as well as from the
websites of Flipkart.

Research Tools

The data was processed and analysed by using computer aided tools such as
MSExcel and SPSS software.

Hypothesis of the Study.

Hypothesis is a proposition about the nature of the world that makes predictions
about the results of an experiment. For a hypothesis to be well formed there must
be some experiment whose outcome could prove it to be false. In this research
report we are finding some of the outcomes on the basis of prediction and
assumptions. For this purpose we formed some hypothesis:

H1: There is no Significant difference between the gender of the respondents and
the length of Flipkart being used.

H2: There is no significant difference between in overall satisfaction level of

Flipkart consumers on the basis of the behaviour of delivery boys of Flipkart.

H3: There is no Significant difference between Flipkart’s price strategies on the

basis of gender.
H4: There is no Significant difference between in overall satisfaction level of
Flipkart consumers on the basis of Flipkart’s after sales service.
CHAPTER 4:HISTORY OF FLIPKART.

Flipkart has had a long road over the years, full of ups and downs. What started as
an online bookstore from a two-bedroom apartment in Koramangala, Bengaluru in
2007 has today grown into one of the biggest companies in India, and an incredible
example of the success potential for Indian startups. Founders Sachin Bansal and
Binny Bansal (not related) have become celebrities in their own right, setting
examples for other aspiring entrepreneurs to aim for.

As Indian e-commerce’s biggest success story celebrates the crowning moment of

its journey so far a $16 billion acquisition by Walmart, the world’s largest retailer,
in the biggest M&A deal ever in the Indian startup ecosystem we take a look back
at the biggest milestones in Flipkart’s 10year journey thus far Flipkart explodes
onto the e-commerce scene, with word-of-mouth publicity driving the platform’s
popularity sharply upwards. The company opens its first office in Bengaluru’s
Koramangala, pin code 560034. With rapidly growing interest in Flipkart, Sachin
and Binny launch 24x7 customer service to deal with the platform’s growing
consumer base.

Flipkart closes the year with over 3,400 shipments successfully delivered.Flipkart’s
steady growth continues, with shopping categories expanding to include Cameras,
Computers, Laptops, Large Appliances, Health, Personal Care, and Stationery. The
platform launches its own digital wallet, as well as a 30-day replacement policy,
and acquires Bollywood content portal chakpak digital catalogue and Mumbai-
based music streaming and digital content platform Mime360. By the end of the
year, Flipkart’s network has expanded to deliveries in over 600 cities across
india.Flipkart goes mobile in a big way, with the launch of its own. native mobile
shopping app. The platform also receives PCI DSS Certification, allowing it to
store card details for consumers securely on the platform, and giving users the
‘Saved Cards’ feature when checking out. Flipkart’s expansion continues at a
steady pace with the acquisition of online electronics retailer Let's Buy, the launch
of Fashion, Perfumes, Watches, Menswear, Toys, Posters, and Baby Care
categories, and the debut of two new services DigiFlip, a private label for
electronics, and Flyte MP3, a service for online music sales.

Flipkart decides to expand its service offerings, adopting a market-place model to

bring third-party sellers onto the platform. The decision sees an immediate positive
response from the market, and sales rapidly climb Flipkart manages to sell 100,000
books in a single day. To allay consumer concerns, the platform introduces Next
Day Shipping Guarantee and also launched PayZippy, an online payments solution
for merchants and customers. In a bid to go global, Flipkart begins accepting
international cards for transactions. A new Woman’s Lifestyle category is
introduced, and the company raises .$360 million across two separate funding
rounds.
2014: Big Billion Day is here! 2014 was a big year financially for Flipkart, with
the acquisition of online fashion retailer Myntra and majority stakes in after-sales
service

provider Jeeves and payments platform Ngpay. The company raises 1.9$ billion
across three separate rounds and ends the year with a valuation of $11 billion, also
becoming the first indian Internet retail firm to register Gross Merchandise Value
(GMV) of $1.9 billion. There is a slew of fresh service launches across the year,
including Flipkart First, In-a-Day Guarantee, Scheduled Delivery, and Same Day
Delivery Guarantee. The platform’s first exclusive associations come into play
with Motorola and Xiaomi and the company launches a huge online sale in
October the Big Billion Day . The Big Billion Day would go on to become one of
Flipkart’s most popular offerings.
2015: brand refresh

2015 is mostly business as usual for Flipkart, with several new launches,
acquisitions, and fundraising rounds. Over the course of the year, the platform
launches Home and Maternity product categories, the Ad Platform and Strategic
Brands Group in a corporate image, and the data-light mobile website Flipkart
Lite. Acquisitions over the year include mobile advertising company mobile
marketing firm Applterate, and payment services startup FX Mart, as well as an
investment in delivery locker service startup Qikpod. Midway through the year.

Flipkart launches a brand refresh with a new logo and improved Progressive
policies for employees, including maternity, paternity and adoption leave policies.
The year starts with Binny Bansal taking over as CEO of Flipkart from Sachin
Bansal, who becomes the firm’s Executive Chairman. A few months later, TIME
magazine names the two Co-founders among their 100 most influential people in
the world. Flipkart celebrates two big milestones the first Indian mobile app to
cross 50 million users and crossing 100 million registered customers. No Cost EMI
and Flipkart Assured, two key new services, make their debut, and the platform
also acquires and relaunches phonepe, India’s first UPI (Unified Payments
Interface) based app which was started by three former Flipkart employees.

Flipkart breaks tradition by appointing its first-ever non-founding CEO, Kalyan

Krishnamurthy while Binny Bansal takes over as Group CEO. PhonePe, launched
the previous year, sees rapid adoption thanks to the demonetisation movement, and
crosses 10 million downloads on the Google Play Store. Flipkart raises $1.4 billion
from Tencent, eBay, and Microsoft, and acquires eBay India in exchange for
equity eBay continues to function as an independent entity. in August 2017,
SoftBank’s Vision Fund invests $1.5 billion in Flipkart to become one of its largest
shareholders.
Since the start of 2018, Flipkart has already seen several milestones a new campus
at Embassy Tech Village, the successful onboarding of over 130,000 third-party
sellers, and expanding its product catalogue to house over 80 million products
culminating in the Walmart acquisition. Where the company goes from here is
anybody’s guess, but if the last 10 years are. indication, Flipkart surely has big
things in it’s Future.

Chapter 5: SWOT analysis of Flipkart:

If there was a list of top Indian online companies then Flipkart will surely be on the
top. There are very few Indian companies worth more then 2 billion dollars and
Flipkart as on date worth more then 11 billion dollars. The company was started in
2007 by brothers Sachin and binny bansal who look It to staggering height's.
This Article presents the Swot analysis of Flipkart.

Strengths in the swot analysis of Flipkart: India’s largest E-commerce

company & had old GMV (grossmerchandising value) of $1 billion till now.

Experienced founders: The Founders of Flipkart Sachin & Binny bansal are
example of amazon employees. Having prior experience in the E-commerce
industry helped the founders to Work strategically and differentiate their business
in a highly competitive market.

Acquisition: With its series of acquisitions like Letsbuy.com., Chakpak.com,

weread.com, Mine360& the recent one Myntra in 2014 has helped the company to
expand in the E-commerce space & used the capabilities and existing resources of
acquired companies.

High Brand recall: Flipkart has established itself as a renowned E-commerce

company in India through TV ads. online branding and through its presence on
social media. Brand activities like the "Big billion day" have really increased the
brand recall of the company.

Own Payment gateway & Logistic arm: Having its own Logistics arm E-kart &
payment gateway PayZippy has helped the company to control its Expenses.
Thereby passing the benefits to the end customers.
Exclusive & broad range of products: From having Exclusive rights to launch
some products like MotoG ,MotoX, Xiaomi Mi3 as well as personal designers
segments in garments category, has helped the company to differentiate and
localise its offerings.

Weaknesses in the SWOT analysis of Flipkart:

Limited Distribution channel reach: Although its logistics arm has kept cost’s
low, the reach has been affected which is a weakness for Flipkart. Due to use of
outsourcing, Global giants like Amazon & eBay can deliver the product anywhere
in the country. However, Flipkart is still struggling in this field.
 Cost of Acquisition: Due to stiff competition in the market & low customer
retention, the cost of Acquisition is high because Flipkart acquires a lot of
customers through online advertising. As per Flipkart data, the company spends Rs
400/- on acquiring a new customer on an average.

Power in the hand of buyers: Since this industry is flooded with many players,
buyers have a lot of options to choose. Switching costs are also less for customers
since they can easily switch a service from one online retail company to another.
Same products will be displayed in several online retail websites. Product
differentiation is almost absent and the fight then begins on the basis of price only.

Opportunities in the SWOT analysis of Flipkart:

Expansion of business: By targeting other emerging markets company can

increase their revenues as well as it can have Economies of scale.

Expanding their Product categories: This will increase their customer base & at
the same time will reduce the cost of acquisition and customer switch.

Changing mentality of Indian customers:With increasing numbers of customers

getting comfortable with online shopping & increase in numbers of Internet users
in India, there is huge potential in this Industry.

Supply chain: By optimizing their supply chain they can compete with the other
players & can manage the loosing sales on account of not making the product
available due to delivery constraints.
Establishing in other developing economies: Like Amazon, Flipkart can slowly
start expanding out of India and establish operations in other countries as well
which will help improve revenues.

Threats in the SWOT analysis of Flipkart.

Competition: Stiff competition from the global players like Amazon, eBay as well
as local player like Snapdeal, Tolexo and Shopclues who are continuously trying to
eat each other’s market share. Government regulations on the issues related to FDI
in multi branding retail has been a big hurdle in the success of the E-commerce
industry in India.

CHAPTER 6: PESTEL ANALYSIS OF FLIPKART.

Political Factors.
Flipkart is under a lot of highlight by rules and regulation authority when it
announces billion soles day, other retail sellers registered dissatisfaction over this
action as they believed it would destroy the market for them. Then there was net
neutrality issue in which Flipkart dismissed the purchase of Airtel Zero saying that
it might go against the net neutrality as this telecom provider supports free internet
app access to all. Free internet access defies net neutrality because it will allow
ISPs to charge websites like YouTube because they use greater bandwidth
although this will allow to users to use apps freely but those apps would be limited
as not everybody will registered to this free app coup. Eventually websites will
transfer these charges to end users and ISPs can also control the internet speed
lanes for websites then all the websites cannot be accessed keeping the same time
frame and additional charges would be imposed if wished to do so. ( tech2 News
Staff , 2015).

Economic Factors .

Economically viable business of Flipkart runs into difficulties when they offered
big discounts on their Billion sale day. The sellers’ listings were removed from
website by the company because it was unable to company because it was unable
to fulfill their orders and also the company was unable to efficiently manage
logistics which is causing problem to both buyers and sellers. Last year the
company faced some other problems when amidst sale their website crashed and so
many products went out of stock even before the sale starts. They were also
blamed for artificially playing with prices by increasing the original price so that
the discount would look bigger. Flipkart has offered loans to its sellers in order to
hook them with the company, these loans are collateral free and charge very low
interest rates, and this is done through collaboration with banks.

Social Factors.

Government has plans to take E-commerce businesses like Flipkart and snapdeal to
rural areas in order to help these areas grow through entrepreneurship. Government
will also help in setting up logistics and necessary funding can come up to form a
common service centre which means shared costs and skills which will bring
economies of scale. Besides this Flipkart has also taken initiative to provide better
work-life balance to its employees by contributing its day care expenses of parents
working for them, maternity leaves have also been revisited.The average age of
Flipkart’s employees is 29 years which means most of them would be recently
married with new born children to take care of and with the company releasing
them of most important responsibility means higher employee loyalty.
Technological Factors .

India’s biggest ecommerce website Flipkart will go all mobile in future. Former
CEO and co founder Sachin Bansal says that in this new era of mobile revolution
the company cannot progress unless its employees also keep pace with the
changing trends. Flipkart’s new acquisition Myntra also moved to all app on
mobile for online sales. With the increasing number of smart phone sales and
decreasing number of laptop and desktop sales in India it is rational for Myntra to
think all mobile. App allows users to engage better with the help of customization
and easier payment methods as a result of which the company has reported
increase in number of visitors since it last made the Changes.

Environmental Factors .

The firm isn’t doing much environmental harm because it does not manufacture
anything on its own; it displays goods from different vendors. But It is encouraging
consumption through mega sale events that it hosts which means more goods being
produced and more Carbon dioxide emission. Other than this another potential
environment threat that they are posing is that of price war in which all the brands
have to roll up sleeves and dive in mud in order to survive. Price competition eats
up the profit margins, kicks out small players, only big players with deep pockets
can survive and they do so at the cost of profits. This hurts the industry in the long
run.
Law Factors.

There are many legal and moral issues that Flipkart faces each day when it comes
to handling sellers like checking for counterfeit products which put the reputation
of the company at risk also the buyers can sue the company for the fake products
they have bought thinking of them as original. Secondly some sellers buy their
own products in order to show the demand for their products and hence increase
the prices, some start charging unreasonably high prices. FLIPKART uses
algorithms to detect unusual activities. Then there are incidents of dishonesty from
cab drivers of services like Uber, the drivers were found to have two handsets so
that they can get orders from two different services in order to fulfill their daily
quota for incentives and these are really hard to control and curtail for if you
spot one taxi driver doing this he will ask his friends next time to book the service
for him.

CHAPTER 7: FLIPKART MARKETING MIX (4Ps) STRATEGY.

Marketing Mix of Flipkart analyses the brand/company which covers 4Ps (Product,
Price, Place, Promotion) and explains the Flipkart marketing strategy.

Let us start the Flipkart Marketing Mix:

Product:

The product strategy and mix in Flipkart marketing strategy can be explained as
follows:
Flipkart sells products in more than 80+ categories ranging from books, clothing to
electronics, mobiles and appliances. Flipkart can be considered as a service
platform which acts as an interface between sellers and buyers. Hence the product
offering in its marketing mix is divided broadly into two:

Product to the Seller.

Flipkart is a platform to showcase his product. It also provides analysis of the

products sold by the seller on its website like how many units are sold, how much
profit he is making, opportunity to Promote his product, the type of logistic
channel which will provide him better profits and which product is not selling and
several analyses for the same. Flipkart also provides the option of Flipkart assured
where the products of the seller are kept in warehouses owned by Flipkart. The
products are picked, packed and dispatched by Flipkart mostly through its logistic
partner E-kart.

Product to Buyer.
A platform where he can access products sold by several companies and vendors
and decide on the product to buy based on the price and other criteria like vendor
capability to deliver the promised item. Flipkart also provides a hassle-free
payment system- pay online through debit, credit, net banking and Cash on
delivery. A sub category service offered by Flipkart to its providers is Flipkart
assured where the product bought by the buyer undergoes 6 quality checks and fast
and free shipping. Flipkart provides the rating of the product and the seller which
helps the buyer make right decisions.
Price:

Below is the pricing strategy in Flipkart marketing strategy:

Flipkart has built its pricing model in such a way so that it competes with other
ecommerce players. By following the marketplace model Flipkart reduced the
price by forcing the sellers to compete among themselves to provide the cheaper
product. Flipkart does not charge for its delivery service if the order is more than
Rs 500 but charges a nominal charge for less than Rs 500 in the case of Flipkart
assured. If the product is directly shipped by the seller, then the seller charges of
shipping apply. Flipkart also offers one-day delivery where the product is delivered
within a day but in this case Flipkart charges extra service charge and installation
option for a price in certain locations. This gives an overview of the pricing
strategy in the Flipkart’s marketing mix.

Other facility for buyers include

• Availability of E- wallet and E-gifts facility.

• EMI facility for certain products

Flipkart charges monthly warehouse charges, referral charges and shipping charges
from the seller. These charges vary according to the option chosen by the seller.
Place:

Following is the distribution strategy of Flipkart:

Flipkart follows a hub and spoke model. It has 21 state of the art warehouses. Here
the products are initially sorted and packed. Goods move from these warehouses or
fulfilment centres to mother hubs. Mother hubs are located at the centre of a 200
kilometre radius zone that consists of 3 to 5 major cities that accounted for
majority of demand as well as numerous smaller cities. From the mother hubs, the
goods are transported to local hubs from where the delivery van or bike picks and
delivers the products.Flipkart deliver products to customers pan India through an
extensive deliver network .Flipkart functions entirely in India and it has its
headquarters in the Garden City of Bangalore in Karnataka. It is owned by a
Singapore based company and is registered over there. According to India’s
foreign policy, a foreign company is not allowed e- retailing over here. Therefore,
in India, Flipkart sells the merchandises through an Indian company WS Retail.
Flipkart also provides its own platform to other companies who are interested in
selling their goods. The website is very easy and hassle free. Browsing, keeping
track of products, getting reviews, ordering goods and payment methods are very
convenient for the individuals.

At first Flipkart started its operations on the consignment model in which they
personally bought the book and couriered it. Later they opened many warehouses
where the goods were stored safely. The first warehouse was opened in Bangalore
and later in Delhi, Mumbai, Chennai, Hyderabad, Pune, Noida and Kolkata. As of
today, more than five hundred suppliers are working for Flipkart. At least 80% of
the orders placed are handled and controlled via warehouses. Shipping companies
and courier companies are the real mediators in this setup. The quick and well-
organized service is the reason why the company has been able to put its mark on
the Indian market. Their delivery network is spread over thirty-seven cities with
delivery being possible in any nook and corner.
Promotion.:

The promotional and advertising strategy in the Flipkart marketing strategy is as

follows:

Flipkart started with their famous campaign in 2011 under the name “No kidding
no worries”. Here the campaign was about kids acting in adult roles. These ads
have made a comeback recently but now concentrating on “Get The Best Of
Everything On Flipkart #Perfect Buy! “. Flipkart has been aggressive in its
promotion and advertising strategies as a part of its marketing mix. Flipkart
promotes through print media sometimes through a full-page ad especially during
their Big Billion Day. Big Billion day is a promotion tool used by Flipkart where
throughout the day Flipkart sells products at a cheaper rate sometimes providing
huge discounts. Flipkart has other promotional tools like big freedom sale, deals of
the day, offer zone page on its website and app.
Major digital marketing done by Flipkart
Uses its app to send pop ups to its customers of the latest offers Makes use of data
mining and ad words to send dedicated ads to prospective customers. Flipkart has
changed the concept of multi brand retailing of products through internet in India.
Its huge success has proved to be an inspiration for other companies. It operates
mostly through mouth advertising. The satisfied customers have been their best
promoters. To have a firm grip on the online world Flipkart has used the services
of Google. Ad-words and SEO. These marketing tools have made them household
names. Downloading the exclusive app of Flipkart helps in getting alerts about
the current offers, order status, price drops, recent launches and various gift
coupons.
CHAPTER 8: FLIPKART'S MARKETING STRATEGY:-

Multinational and national e-commerce companies are giving competition to each

other for getting a good position. Flipkart has proved itself customer friendly and a
trustworthy E-commerce brand. It attained a paramount position in the small
appliances and mobile segment, and also tackled some major problems related to
online payment and product supplying chain system.

They introduced the card payment system on delivery, and cash on delivery to sort
the problem of online payment, and launched their own supply chain management
system to deliver orders on time.IT has been a long journey from a book e-retailer
to the largest e-commerce company of India that inspires many start-ups. It breaks
the norm and changes the e-commerce industry forever in India.
They are first who implanted a “cash on delivery” facility and it later became an
option in every online shopping site in India.As the company grew, it added more
fund to the company. It repaid the faith of investors by terrific performances every
year.

They have their own distribution firm named Ekart and also have own payment
gateway which assisted the company to control its expenses and give benefits to
the end user and customer.

Another issue related to delivering a product is that it doesn’t support a package

size of above 8 kg and if it is necessary for someone then he or she has to use the
Flipkart advantage for the same.

Another feather in the cap was when it received a funding of $700M last year and
after that, the company valuation raise up to $15M.

It is the first Indian app to cross 100 million registered customers and achieve more
than 50 million users.

One of the best places to work, Flipkart also stood out when it went ahead an extra
mile for its female employees. In 2015, they announced their maternity leave
policy with 6 months paid leave, 4 months flexible working and extended leave for
a year (without pay).

Flipkart Campaign
The successful campaigns of Flipkart are “Fair-Tale”, “Shop Anytime, Anywhere”,
“No Kidding No Worries”, “Shopping Ka Naya Address”, and “Big billion day”
that created a history in the sector of online shopping.

The medium that helps in campaigns are TV commercials, different social sites
like facebook, twitter and Instagram; and mobile app which are making Flipkart a
household name in the market.

Flipkart business structure includes nine firms. Some are based in India and some
in Singapore.Flipkart’s fashion campaign is about to make trendy affordable and
accessible fashion. They have ventured into kids fashion and the campaign “Be
trendy. Always” is has given outstanding business outcomes.
Flipkart offers the best way to look your best, which brings different fashion
shoppers in an interesting manner. On December 26, a campaign went live that
includes video series of Rohan Joshi (stand-up comedian) speaks about how men
specific looks, dress and style themselves.

Flipkart has also collaborated with some fashion magazines that display the trend
and style of your favourite celebrity by online shopping.The brand ambassadors
are Ranbir Kapoor and Alia Bhatt that serve the voice of this company, also
promote the brand and its services successfully. The campaign also includes
featuring games on YouTube, where celebrities are challenged to put certain looks
by shopping on Flipkart.
ARTICLES:
Flipkart beats Amazon to become the top retailer of Smartphones online in
December 2019.

Indian e-commerce giant Flipkart is leading in online sales of smartphones in

India. Amazon came in second while Xiaomi’s Mi.com platform came in third.
The sales were driven by brands like Xiaomi, Realme and Samsung which
continued to grow strong. Realme recorded a massive year-on year growth.

Flipkart leads the online smartphone market.

Flipkart accounted for 57% of the smartphones sold online in India in the third
quarter of 2019. It recorded a healthy lead of 24 percentage points over Amazon.
However, Amazon grew faster at 75% year-on-year, accounting for 33% of the
smartphones sold online.
Xiaomi’s Mi.com platform accounted for 9% of the smartphones sold online in the

same period.

Easy Rewards has raised series B round of funding led by Flipkart

E-commerce giant Flipkart invested in EasyRewardz, customer engagement and
rewards platform. This is Series B round of funding raised by the startup.
The amount and extent of Flipkart’s investment has not been disclosed.
EasyRewardz has multiple clients across sectors from RBL Bank, Kotak Mahindra
Bank to restaurants like Chilli’s, Mamagoto etc. Flipkart has its own customer
engagement and loyalty programme- Super coins.

Segmentation, Targeting, Positioning in the marketing strategy of Flipkart:

Behavioural & PsyChographic are the segmentation strategies used by Flipkart to

segment the market to cater to the customers changing m & wants. With the rise in
per capita income and change in buying patterns, customers are getting more
acquainted and are comfortable in buying online.

Flipkart uses undifferentiated targeting strategy, since people of all demography

purchase items online which is available to everyone where the delivery is
possible. National & Multinationals| E-commerce companies are giving neck to
neck competition to each other, due to which their positioning is very important.
Flipkart has positioned itself as a trust worthy and customer friendly E-Commerce
brand.
Competitive advantage in the marketing strategy of Flipkart:

In a highly competitive E-commerce market of India. companies are finding it hard

to differentiate their offering from others.

Flipkart have gained several competitive advantages over others:

1. They have acquired companies like Myntra, Jabong, Appiterate, Letsbuy,

Mine360, chakpak.com, we read and the latest one being UPI-based payments
start-up PhonePe. These companies are helping it in enhancing its functional
capabilities.

2. Founders are Ex-Amazon employee so they have the required know how of
ecommerce.
3. Flipkart had received $700M of funding last year after which its valuation gone
to $15 billion.

4. It has a fantastic positioning in the mobiles and small appliances segment.

BCG Matrix in the Marketing strategy of Flipkart :

Flipkart’s merchandising section (including Myntra) as well as its electronics

segment is a Star in the BCG matrix. The reason is that the segment is growing and
more & more customers are getting accustomed with online buying of clothes &
electronics items in India. But as the market is huge, the market share is less for
each E-commerce player and they are fighting hard for it.

All other segments are question mark due to intense competition between the
players. Profitability is low overall so the future is unknown.
Distribution strategy in the marketing strategy of Flipkart:

Having its own distribution firm (Ekart) and payment gateway payzippy has helped
the company in controlling its
expenses and passing the benefits to the end customer.

The very demerit of Flipkart’s distribution channel is its reach as compared to the
peer E-commerce companies like Amazon, Snapdeal eBay etc who can deliver the
customer’s order even to the remote locations. One more problem of Flipkart is
that it does not support sellers with package size of above 8 kgs. You have to use
flipkart advantage for the same.
Brand equity in the Marketing strategy of Flipkart:

Flipkart have garnered a market leader position through its innovative branding
strategies. The "big billion day”, ” No Kidding, No Worries”, ”FairTale”,
”Shopping ka Naya Address” , "Shop Anytime, Anywhere" are the successful
campaigns that helped the company in creating top of the mind awareness.
Flipkarts brand valuation is a whopping $15 billion by 2015.

Different mediums i.e. m, facebook, TV commercials and promotion of mobile app

shopping have helped Flipkart in becoming a household name in the target market.

Customer analysis in the marketing strategy of Flipkart

Flipkart customers consist of middle class social groups who are comfortable with
online shopping and find it convenient. Majority of the customers are the
professional who are busy with their business/Job & find it convenient to purchase
anything online rather than visiting the physical outlet in order to save time &
money.
CHAPTER 9:COMPARATIVE STUDY OF FLIPKART VS
AMAZON.

Flipkart and Amazon, both have had amazing neck and neck run in India since the
time they were launched. There have been amazing sales records, crazy discounts,
fury business tactics and like they call it in India “dhamaka” offers. But the recent
few months or I can say even almost a year now has been dry in the e-commerce
segment with only Flipkart and Amazon racing toe-to-toe pushing each other’s
revenue up and down every few months.
 With the small players like Myntra and Jabong being bought by Flipkart and
Snapdeal constantly stuck in a downward spiral, it can be safely concluded that the
top two spots have been conquered by Flipkart and Amazon.

There isn’t any other competitor insight who is capable of knocking these two off
the top. There are of course companies that take up the 3rd place but the distance
between the silver and bronze medal is miles apart. Now, from a business point of
view, it can be arguably stated that the competition in the e-commerce segment in
India is saturated.

Both these companies are now dealing the cards they have in hand to enter into
other business areas inside India. The next aim for Amazon and Flipkart seems to
be capturing the offline market. There is no doubt that the online sales of goods
were revolutionized by these two companies in India, but the offline shopping
experience seems to be an area untapped by big businesses.
Considering the fact that Flipkart is owned by Walmart, this will be their best bet
at expansion against heavyweights like Amazon and Reliance. Sure, you have Big
Bazaar and Reliance but when you look at a regional scale at a city or town level, it
is still dominated by local stores which have a chain of shops in and around that
city.

There is no dominant, undisputed player in the offline market for the sale of goods.
With the customer trust and customer base that Flipkart and Amazon earned
through their online platform, the idea of and strategy for establishing themselves
slowly in other business areas would have a positive outlook as people will have
the assurance of the brand’s value.
A majority stake of 77% in Flipkart was bought by retail giant Walmart for $16
billion in the biggest e-commerce deal in the world in 2018 valuing Flipkart at a
good solid $20 billion. The plan for foraying into the offline market was already in
the papers and the move by Flipkart to give majority stake to Walmart meant
giving control over to a company which is hands-down the best in the retail market
business.
The founders of Flipkart had built a zippy business but they sensed the saturation
in the e-commerce market. The need for expansion of Flipkart was met with the
uncertainty in raising money from various investors all over the world which
meant losing ownership of the company part by part. At the same time, Walmart
had been waiting impatiently for a long time to build itself up as a major player in
India.

The enormous brand value built by Flipkart in a short time gave Walmart the
perfect way to get good control over India to do what they do best all over the
world. Flipkart’s main issue, raising money, was also solved through this
acquisition as Walmart is capable of pumping in a ton of that with a blink of an eye
to rival its primary competitor Amazon in India

Amazon might be equal to Flipkart in India but outside India the enormity of
Amazon and the fact that it carries nearly unlimited resources propelled Flipkart to
think on its feet and impelled it to start exploring beyond the e-commerce area.

In order to maintain market dominance, Flipkart needed to take the route in which
Amazon is already traveling in- tech and offline sales.
TECHNOLOGY:

Other than spending money on opening offline stores, Flipkart is stepping into a
territory it isn’t familiar with. A territory in which Amazon has soaked itself quite
well. With the streaming wars taking place in the USA at a huge scale, Flipkart and
Walmart have noticed the need for it and have apprehended the growth it can offer
for them in India. Yes, Flipkart is launching its own streaming service just like
Hotstar, Netflix and Amazon Prime Video. The latest update for the Flipkart app
has a new video section. Currently, the video section is stocked with content from
local online media like Arre, Dice Media, TFV and Voot giving Flipkart access to
a few popular movies and TV shows. Flipkart will be launching a full version of
this video streaming service for its ‘Plus’ subscribers before Diwali.

Amazon Prime Video and Netflix currently don’t hold a good share of the market
compared to Hotstar in India.

The main obstacle Netflix and Amazon Prime Video face are producing regional
content. Flipkart seems to believe if it is able to provide and produce more regional
content it should be able to compete equally against all the existing players. But for
now, Flipkart doesn’t have any plans of developing original content. Instead, it’ll
stream content through licensing and by obtaining streaming rights from other
production companies. Amazon too is pumping money this year to develop content
specifically for India. Flipkart, providing a video streaming service with no extra
cost for its Plus members will help gain loyalty and good customer base. This same
method has proven to be successful for Amazon when it offered Amazon Prime,
Prime Video and Prime Music for a bundled packaged of just Rs.1000/year.
Recommendations:

Company should always check the availability of the various products at its web
portal. Company should change then sales strategy as the sales of premium
products is not that good.
From the website the company should remove the information of the product
which they have discontinued selling as It gives the wrong information to their
customers.
Delivery boys should try to more satisfy the customers because they are only the
person who face the customers on the behalf of the company. Delivery boys should
always wear companies T Shirt as well as Identity card during working time.
Company should improve their after sales services which can boost the sales of the
company. Company should use more online media to promote their website.
The company should use some better mode of technology which can provide more
better service to the customers.
CONCLUSION:

I have learned a lot of things while doing this survey like consumer psychology
how they behave. what they want, what they need, how they think while collecting
the information about Flipkart and also observe the behaviour of Delivery Boys,
how they handle the customers, how they communicate With the customers, etc.

Flipkart has a wide category of Stuffs some are core products and some are the
premium products. Mostly customers know more about core products in
comparison to premium products and Unis may be due to lack of advertising or
marketing of the premium range of products.

The study was conducted in Mumbai region. After the survey was done I came to
know that the consumers are not using online shopping only for the easiest way to
get the stuffs but also for cheapest in comparison to the retailers.
Consumers have very good experience with Flipkart 48% respondents were highly
satisfied, 23% respondents were satisfed which sound very good result,

It was found apart from the price and quality of the products offered by Flipkart is
not the best online shopping website as It suffers at various other paints In the
survey. Most of the respondents have rated IT as just above and average. The
research always reflects the truth.

No doubt Flipkart has very good quality product and availability at the web portal.
Many consumer feels delightful With the Flipkart services and is satisfied with
Flipkarts after sales service.