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DESCRIPTION
FlipkartTRANSCRIPT
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FLIPKART
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CONTENT
COMPANY OVERVIEW
FUNDING
ACQUISITIONS
VISION , MISSION & OBJECTIVE
PRODUCTS PORTFOLIO
ORGANIZATION STRUCTURE
MARKET SEGMENTATION
LOGISTICS
AMAZON VS. FLIPKART
MARKETING STRATEGIES
PROMOTIONAL SCHEMES
MARGIN & FINANCE
RECOMMENDATIONS
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COMPANY OVERVIEW• FLIPKART IS AN E-COMMERCE COMPANY FOUNDED IN 2007, BY SACHIN AND BINNY BANSAL.
• INITIAL INVESTMENT WAS RS.4 LACS ($9000)
• IT OPERATES EXCLUSIVELY IN INDIA, WHERE IT IS HEADQUARTERED IN BANGALORE, KARNATAKA.
• ACCORDING TO ALEXA INTERNET, FLIPKART'S WEBSITE IS ONE OF THE 10 MOST VISITED WEBSITES IN
INDIA.
• FLIPKART HAS LAUNCHED ITS OWN PRODUCT RANGE UNDER THE NAME "DIGIFLIP", OFFERING CAMERA
BAGS, PEN-DRIVES, HEADPHONES, COMPUTER ACCESSORIES, ETC.
• FLIPKART SELLS GOODS IN INDIA THROUGH A COMPANY CALLED WS RETAIL.
• OTHER THIRD-PARTY SELLERS OR COMPANIES CAN ALSO SELL GOODS THROUGH THE FLIPKART PLATFORM.
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FUNDING
Initially funded by the Bansals themselves with 4 Lakh(INR).
Flipkart has since then raised two rounds of funding from venture capital funds Accel India (in 2009) and Tiger Global Management (up to the tune of US$10 million) (in 2010).
The current worth of Flipkart is $7 billion.
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ACQUISITIONS
2010: “We Read”, a social book discovery tool.The stated goal was to give Flipkart a social recommendation platform for buyers to make informed decisions based on recommendations from people within their social network.
2011: Mime360, a digital content platform company.
2011: Acquired the rights to Chakpak’s digital catalogue which includes 40,000 filmographies, 10,000 movies and close to 50,000 ratings. Chakpak.com is a Bollywood news site that offers updates, news, photos and videos.
2014: Flipkart acquired the largest online shopping store Myntra for Rs.2000 Crores
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VISION , MISSION & OBJECTIVE
Vision
“To become Amazon of India”.
MissionProviding a delightful and memorable customer experience.
Objective “Completely hassle free shopping experience with best prices in India”.
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PRODUCT PORTFOLIO• BOOKS
• MOVIES
• MUSIC
• GAMES
• MOBILES
• CAMERAS
• COMPUTERS
• HEALTHCARE AND PERSONAL PRODUCTS
• HOME APPLIANCES AND ELECTRONICS
• STATIONARY
• PERFUMES
• TOYS AND MANY MORE…
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ORGANISATION STRUCTURE
Product and technology Business Development Operations
Website Management
ERP System
Vendor Management
Sales Management
Pricing Strategies
Procurement
Warehouse
Logistics
Customer Support
.
• Flipkart has more than 10,000 employees, All of them are allocated in one of the below given departments.
• Sachin Bansal and Binny Bansal are the founder of flipkart.
• The entire organizational structure of Flipkart is organized in three broad teams as depicted below
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PRODUCT AND TECHNOLOGY
The product and technology team is the core strength of the company.
The team is responsible for the management of the website as well as the ERP system.
Website is a backbone of any online retail shop and Flipkart’s website is also managed by this team only.
The team manage the entire process right from listing of item to search engine optimization.
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BUSINESS DEVELOPMENT
Business development team is responsible for all the activities related to sales including vendor management to pricing and discount strategy.
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OPERATIONS
Operations team deals with all the supply chain aspects of the company right from procurement and warehouse management till customer support.
The team support the customers both online via telephone as well as offline via email
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MARKET SEGMENTATION
GEOGRAPHIC:
CATERS TO TIER 1, TIER 2 AND TIER 3 CITIES
AGE KIDS – BABY CARE, TOYSTEEN – PLAYSTATION, XBOX, MOVIES, MUSIC GENDERMALE – COMPUTERS, MOBILES AND ACCESSORIES, WATCHESWOMEN – BEAUTY AND HEALTH CARE ,HOME AND KITCHEN
OCCUPATION STUDENT – BOOKS, MUSIC, MOVIES, STATIONARIES TRAVELER – CAMERA, LUGGAGE, BOOKSWORKING – MOBILES, COMPUTERS, WATCHES
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LOGISTICS & PRODUCT FLOW25 WAREHOUSES -7 PREVIOUSLY, OTHER CONVERTED FROM DELIVERY CENTRE
60 DELIVERY CENTERS - 35 PREVIOUSLY, OTHERS NEWLY FORMED (AIM TO REDUCE THE TIME OF DELIVERY)
Customer
order
Checked in delivery centre
inventory
Delivery Time 1-2 Days
SUCCESS!!!Sent to logistics body
Checked in the nearest warehouse inventory
Automatic inventory check via Inventory management system
Ordered to the company
YES
Delivery time 2-5 Days
YES
Delivery time 6-15 Days
NO
YES
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LOGISTICS
Location of the productIs Identified
Logistic body is assignedCustomer product delivery location (Delivery cost-Free If ordered > 300 Rs. Else Rs. 30 Extra)
Automated Software Sends Information about the product Delivery to these logistics body
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AMAZON VS. FLIPKART
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MARKETING STRATEGIES • Flipkart has been mostly marketed by word of mouth advertising.
• Customer satisfaction has been their best marketing medium.
• Flipkart very wisely used SEO (Search Engine Optimization) and Google Ad-words as the marketing tools to have a far reach in the online world.
• Flipkart.com official Face book page has close to 9 lac 'likes'. Flipkart recently launched a series of 3 ads with the tag line - "No Kidding No worries"
• Kids were used to create the adverts to send out the message - if a kid can do it, you can also do it.
• All in all to create a great customer experience.
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PROMOTIONAL SCHEMES
• Rebate
• Discounts
• Refunds
• Quantity deals/gifts
• Usable benefits
• Full finance @ 0%
• Combo offers
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How are their products less expensive than in retail shops?
Retail store (organized) Online store
Need a shop floor or chain of shop floor.
Managed by centralized warehouses .
Need skilled sales and management staff
Need customer service associates.
Need branding and displays No need for branding and displays of the product
Need to pay overheads such as electricity bill, telephone bill, stationeries etc at every store.
Comparatively less Expensive as overhead are born only for the dispatch centers
Need furniture and equipments which need maintenance at every store
Need few furniture and equipments which requires less maintenance cost
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MARGIN AND FINANCE 8-35% On sale price of product
Parameter= Brand, Category margin, Premium margin, Volume, Cost of Delivery, Operating cost margin
High Margin Category
Toys, Watches, Beauty& Healthcare, luggage
Mid Margin Category
Books, TV, Home & Kitchen, Gaming, Belts,Bags
Low margin categoryMobiles & Cameras,Computer accessories
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RECOMMENDATIONS
• Enter new international markets which is either un-served or untapped.
• Educate Indian conventional customer by marketing efforts.
• Increase bulk selling and reach to student customers by ties with educational institutes for academic curriculum supplies.
• Reducing delivery time which will in turn increase sales.
• Customer friendly Return Policy