MARKETING PLANS AND STRATEGIES FOR FLIPKART

Atulya Khobragade

Khushbu Kariwala

Pooja Pabahrekar

Rohit Reddy

Ronak Kapadia

Saavani Lad

INTRODUCTION

•Leading e-commerceCompany in India

•Founded in 2007 by

Sachin Bansal and Binny

Bansal

VALUED AT 9760 Cr.

WS RETAIL

FLIPKART PAYMENT GATEWAY SERVICES

E-KART

BOOKS CONSUMER GOODS LIFESTYLE

E-COMMERCE INDUSTRY IN INDIA

•Poised for rapid growth

• Fastest growing amongst Asia pacific region.

•Expanding into non-metropolitan India.

•Social media and mobile technologies are accelerating e-commerce adoption.

•Large retailers are looking forward to build an online presence.

2016$ 16BILLION

2012

$11.2 BILLION

WORTH

MARKET DEMOGRAPHICS

GEOGRAPHIC:

CATERS TO TIER 1, TIER 2 AND TIER 3 CITIES

USAGE RATE:

•Third largest internet user base of 124 million (10% internet penetration)

•India’s mobile user base is 87.1 million and is expected to double by March 2015

.Flipkart projects its sales to reach INR 10 billion by year 2014.

•On average, Flipkart sells nearly 20 products per minute and is aiming at generating a revenue

of INR 50 billion (US$1 billion) by 2015.

•Flipkart has 10 million registered users; about a million visit the site every day.

•The users of age 15-34 years are most susceptible to changes in purchase/consumption

behaviour.AGE GROUP: •Youngest online demographic globally .

•75% of online users between the age group of 15-34 years.

MARKET GROWTH AND TRENDSMARKET GROWTH:•Current size of e-commerce market in India $11.2 billion

•360 e-commerce portal offering services in India (tripled since 2010)

• Internet users in India is expected to grow to 376 million by 2015.

MARKET TRENDS:

51%40%

9%

CONTRIBUTION

TIER 1TIER 2+3RURAL

23%

29%

48%

SALE OF DIFFERENT PRODUCTS

ELECTRONIC GOODS

BOOKS

LIFESTYLE AND ALLIED PRODUCTS

.Industry condition: very high potential.Investor’s trust .Services and warehousing.Payment options.Established brand

.Entry of international on-line competitors in Indian market.Customers are not comfortable with online payment.Not profitable operationally.Time to build confidence among the customers.Middle management retention issues.

STRENGTHS

WEAKNESS

.High competition from major international online retailers.Capture of alternative market by competitors e.g.Infibeam

.Development of m-commerce in the e-market .Increasing internet penetration .Target social medias to reach young population.High interest among VC/PE.

THREATS

OPPORTUNITIES

O

T

MAJOR COMPETITORS• Amazon.com/ Amazon.in

• Junglee.com.

• EBay

• SnapDeal

• Jabong.com

• Homeshop18

• Yebhi.com

KEY SUCCESS FACTORS

Key success factors:

•First mover advantage

•Experience of E-commerce industry

•Investments

•Cash on delivery

•Customer orientation

LOGISTICS

CURRENT ADDITIONS

•Voice based search (July 2013)

•Online payment solution

•Flipkart e-books (July 2013)

•Men's wear (October 2013)

Shutdown of flyte (the digital music store, june 2013 )

ACQUISITIONS

2010:  We read

2011: Mime360

2011: Chakpak.

com

2012: Letsbuy.co

m

STRATEGIES•Membership cards and premium facilities.

•Extended range of academic books.

•Providing Sponsorships.

•Vernacular language option on websites.

•Better featured user interface.

•Cost cutting on packaging.

•Flipifts

•Liquor

FLIPIFT’S COMPETITORS

Archies Indiangiftsportal.c

omRed

momentsiFEEL Cafepress.

com

FLIPIFT’S:-

•All consumer goods, generic gift products, customized goods.

•A different section for generic and customized products under flipift

•Presto, customized gift manufacturer and retailer-sole provider of

customized goods

•Will also be supported by IP tracking systems to enhance

repeatability.

FLIPIFTS TARGET MARKET

LIQUOR

BOTTOMS UP.COM

FLIPKART RETAILERS CUSTOMER

ORDERS PLACED WITH FLIPKART

ALLOCATION OF ORDERS WITH RETAILERS

RETAILER CONFIRMS THE AVAILABILITY OF STOCK

RETAILER DELIVERS

SATISFIED CUSTOMER

•Initially in Mumbai and NCR

•Mandatory registration

•Uploading Identification proof mandatory

•Minimum order of $16

SEGMENTATION

Mass marketing

Segmentation

Mass customization

Flipkart , Flipifts.

Flipifts

•Extension of academic books•Vernacular language•liquor•Membership cards•sponsorship

TARGETING

2001 2011 20210

100

200

300

400

500

353430

464

Youth population (million)

youth popu-lation (mil-lion)

35%

40%

16%

6% 3%

Internet users by age

15-2425-3435-4445-5455+

Internet users by age (source: survey)

•Flipkart targets mainly the youth of the country,

•Web friendly people.

•Target markets should include

oPeople who do not relate well with English language,

oAcademic institutions and people associated with it

oCurrent buyers

Points of parity:• Easy locating of products• Competitive prices. • No hassles of going to shops personally and shop for products• Availability of various products on one platform• Discount on purchases.• Home delivery• Gifting services• Cash on delivery• Availability of liquor• Flipifts• Academic related books

Points of Difference:•Flipkart membership cards for premium customers•E-wallet•Vernacular language•Better user interface-one drag approach.

POSITIONING

“Bookstore at your door”

“The store at your door”

“Jo dikhta hai wo bikta

hai”

“No kidding, no worries”

“Shopping ka naya

address”

TAGLINES USED TILL DATE

MARKETING MIX

• Product• Price• Promotion• Place• Process• People• Physical evidence

PRODUCTS

FICTIONACADEMICLITERATURECHILDREN

ELECTRONIC GOODSHOUSEHOLD ELECT.MOBILE TECHNOLOGIESPERIPHERALS,WELLNESS

APPARELSACCESSORIES

.

.

.

.

.

Suggested: Flipifts, bottoms up, extended range of academic books

•Aims most segments except automobiles and groceries.

PRICE AND PROMOTION

PRICE:•Offers discount •E-wallet•E-gift vouchersSuggested:• membership cards with points facility

PROMOTION:•Advertising•Online marketing•Media•Word of mouthSuggested: •sponsorships• e-wallet promotion• themes of advertisements concentrating on different services provided.

PLACE AND PROCESS

PLACE:•Inventory at 4 major centers-Mumbai, Delhi, Bangalore, Kolkata

•Delivery services through e-kart and postal services

•Covers all tier-1 cities and major tier-2 and tier-3 cities

PROCESS:•Cash on delivery

•Debit and Credit card transactions

•Delivery time

•Payzippy safe payments

•Suggested: Vernacular language

PEOPLE AND PHYSICAL EVIDENCE

PEOPLE:•Customer services

•Investors

•Employees

PHYSICAL EVIDENCE:• The packaging and quality of product

•Prompt delivery

•30 day return policy

Suggested- Better user interface, IP tracking for Flipifts

FINANCES

2008-09 2009-10 2010-11 2011-2012 2012-2013 2013-14 20154 20 75

500

1000

2000

5000

Revenue In INR Cr.

• 2009: $1 million from Accel Partners

• 2010: $10 million from Tiger Global

• 2011: $20 million from Tiger Global

• 2012: $150 million from Naspers, Tiger Global and Accel Partners

• 2013: $360 million in two phases:

• 2013, July: $200 million from Naspers, Accel Partners, Tiger Global and

Iconiq Capital

• 2013, October:$160 Million from Dragoneer Investment, Morgan

Stanley, Sofina, Vulcan Capital, Tiger Global

INVESTMENTS

20092010

20112012

2013

0

50

100

150

200

250

300

350

400

1 10 20

150

360

INVESTMENTS

$million

ESTIMATES

LIQUOR : • Liquor Iicense-20-30 lacs

(INR)

• Pricing: approximately 20% highly priced than MRP. (INR)

FLIPIFTS :

•Wrapping Expense

• Advertising

• Earnings per 15% of cost of the gift

THANK YOU