flipkart marketing strategy
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FLIPKART – 360o MARKETING STRATEGYINTERNATIONAL MARKETING MANAGEMENT PROJECT 2015
INDIAN INSTITUTE OF FOREIGN TRADE, NEW DELHI
Overview
Group 8 International Marketing Management (2015-17)
Overview (1/9)
Flipkart’s Story
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
18
• Flipkart is an online shopping destination for India founded in 2007 by Sachin Bansal and Binny Bansal.
• Flipkart offers over 20 million products across 70+ categories.• Flipkart, started by a team of 2 is currently 20000 people strong and has
26 million registered users clocking over 8 million daily visits. • Flipkart's technology has enabled them to deliver 5 million shipments per
month.
Overview (2/9)
E-Commerce as a Platform
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Major Stakeholders
• Indian ecommerce market was pegged $13.6 billion last year, and by the time 2015 ends, it will cross $16 billion mark.
• Ecommerce transactions grew by 53% last year, and 61% of all transactions.
• Most of the e-retail companies are operating in huge losses currently to gain market share mainly due to huge discounts and flash sales.
• Angel investors are pumping huge sums of money into this industry but the investments are mostly into few companies only.
• In India, Cash on delivery is the most preferred payment method, accumulating 75% of the e-retail activities
Overview of the Industry
Overview (3/9)
E-Commerce as a Platform
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Retail e-commerce sales in India from 2012 to 2018 (in billion U.S. dollars)
18
201614121086420 2012 2013 2014 2015 2016 2017 2018
Over the last two decades, rising internet and mobile phone penetration has changed the way we communicate and do business. e-Commerce at present, heavily leaning on the internet and mobile phone revolution to fundamentally alter the way businesses reach their customers
E-commerce logistics : Shift from regular logisticsThe strong emergence of e-commerce has placed an enormous pressure on the supporting logistics functions. The proposition of e-commerce to the customer in offering has provided an almost infinite variety of choices spread over enormous geographical area.
Overview (4/9)
E-Commerce as a Platform
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
18
• Content Localisation• Expansion beyond Metros• Mobile Commerce• Logistics and Warehouse Focus• Growth in Debit Card Usage
Growth Drivers
• Building a loyal customer base• Last Mile Delivery• Managing Warehouse Location• Brands pulling out of E-Commerce• Security Issues
Key Challenges
Overview (5/9)
Customer Management Systems
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
18
Flipkart’s CMS: A/B Testing
A standard A/B testing framework has three components -
1. The object of experiments. This can be different user experiences, different pricing or different shipping methods.
2. The method of experiments. How the A or B buckets are assigned is up to the framework. It might be based on randomization, or based on some data gathered before the experiment.
3. The data collector. Gathers the data which will be used for concluding the experiment. In a typical e-Commerce you will want to look at data such as visits, product views, click through rates and order conversions.
“At Flipkart we use our own A/B testing framework wherein we can run different versions of the website for different users. The method is generally randomization. For data gathering, we have dashboards which show logs and metrics collected by our frameworks as well as an external tool
called Omniture.”
Overview (6/9)
Outsourcing Strategy
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
18
When a company has too many people on its payroll, it gets difficult to handle from the compliance perspective. For example, PF, insurance, gratuity, etc., takes a lot of effort from the HR perspective. Businesswise, too, such shifting out of personnel offers several advantages. Once employees are on an outsourced payroll, they don't appear in the books of the company and, in turn, the revenue-per-employee is much higher, which is an important metric for companies.
"Flipkart's decision to outsource few roles is a strategic move which will help us scale faster and also grow the partner ecosystem around us," a company spokesman had said.
The company has made several strategic hires in recent months including from Silicon Valley, to build new capabilities and establish its dominance in a sector fast overcrowding: Former Google product head Punit Soni to head the products division under its commerce platform; former McKinsey director Saikiran Krishnamurthy as the chief operating officer of its commerce division; former head of engineering at Google, Peeyush Ranjan, as senior vice president.
Outsourcing and Hiring
Overview (7/9)
Flipkart’s White Label Strategy and its Analysis
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
18
Reasons for Failure
DigiFlip
• Flipkart has forayed into the tablet market with the launch of its own DigiFlip Pro XT712 tablet which was launched in 2012. The Digiflip Pro XT712 was an entry-level Android tablet with 7 inch screen, quad-core processor, dual SIM card slots and a price tag of Rs 9,999.
• Flipkart then launched various computer accessories under the same label.
• Hardware & Software Not Exciting Enough• Lack of compelling services and offers from
Flipkart• Mismatch of price and features
Overview (8/9)
Flipkart’s Strategy
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
18
Flipkart’s Acquisitions
Flipkart’s Investments
Overview (9/9)
Scope of E-commerce Industry
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
18
Next.Big.What. Will hyperlocal businesses disrupt traditional ecommerce• Everyday need goods• Delivered at specified time• speedy delivered• location/time• Convenient: Doorstep• Convenient: Choice• Delivery of bulky products• Express Delivery,• Economic Pricing• Connects to neighborhood• Express Delivery grocery stores • Additional discounts • Discounts on home • Easy to browse options• Delivery of pain point• Curated lists shopping
Sales Promotion and Outreach
Group 8 International Marketing Management (2015-17)
Overview
Flipkart: ‘Kart'apulting into the future
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and Outreach (1/8)
Brand and
service
Shipping and
delivery
Cash on Delivery
30-day return policy
Warranty and
Insurance
Circle of FocusRight from it’s inception in 2007, Flipkart has focused immensely on the concept of “customer delight”. To achieve the same, they came up with a 5-point mantra and in the initial phase, recklessly improved upon them.
Utilization of numerous festive opportunities
Heavy discounts and offer coupons
Excellent collection of books, DVDs, movies etc.
Three-pronged approach for pushing numbers
While the focus areas remained constant, the initial phase also placed heavy emphasis on pushing numbers and getting their name all across the boards in a sector which was yet to see the light of day in the Indian market.
Overview
Advertising Campaigns
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and Outreach (2/8)
The TVCs feature kids in adult situations (and with adult voiceovers), like a beauty parlour, a cafe, and an office, where they discuss the benefits of buying products on Flipkart.com.
Over the years, the foundation has remained the same and the adverts have been widely accepted and successful….No kidding.
Overview
“Ab sirf shopping nahi, Flipkart karo”
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and Outreach (3/8)
An attempt to position Flipkart as a synonym for convenience led online shopping.
The campaign not only aimed at inspiring people to shop via Flipkart, but also promoted online shopping as a whole by talking of- why do online shopping.
Overview
Experimentation with the logo over the years
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and Outreach (4/8)
The first logo of Flipkart was designed with curved letters and two colors with an aim to appear friendly as well as to propagate the idea of ‘flipping’ through a ‘cart’.
As the company grew bigger, an increased emphasis on brand imagery was laid upon. With the common mass now fairly acquainted wth the idea of flipkart, a single colored word was introduced alongwith a cart apparently in motion to signify speed.
The latest in the row is a minimalistic, sophisticated logo with just the alphabet “f” written on top of a shopping bag. Also, a smiley can be noticed on top. The entire idea is to give an image of playfulness, speed and friendliness.
Overview
Big Billion Day 2014: An Aspiration
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and Outreach (5/8)
• Before the sale even began, controversy gathered as people noticed that the prices of some of the products were being raised back to the MRP instead of the actual selling price - to better pad the size of the deal on offer.
• At approx. 2pm, next day, seller accounts of third party vendors on Flipkart have been put as pending i.e no more orders will be taken for the day and products will now show the status as 'out of stock'.
• Example: On an average, a Transcend 64GB pen drive can be purchased for Rs 2,500 w/o discounts but Flipkart offered it at 2500 after a 95% discount on Rs. 49,999
• Verdict: A BIG FAILURE
Overview
Big Billion Days 2015(1/2): Innovative Campaign for Promotion
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and Outreach (6/8)
#AchhaKiya campaign
Learning from the failure of 2014, the company left no stone unturned to make Big Billion Days 2015 a success.
Flipkart released a series of advertisements to promote its upcoming Big Billion Days sale, adding that “good things come to those who wait”.
Meanwhile….Few of the competitors took this opportunity to troll the campaign itself by posting sarcastic and cheeky responses online as well as up on the roadside billboards.
Overview
Big Billion Days 2015(2/2): Fair Success
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and Outreach (7/8)
• “Abhi Nahin toh Kabhi Nahi” : The sale gained back its foothold.
• "India shops the most during this time of the year. With 75 percent of traffic coming via mobile, we expect this 'app only' sale to be the biggest shopping event of the year” : Flipkart’s Bansal stated/forecasted.
• Flipkart opened new fulfilment centres across the country to guarantee efficient delivery. They also ramped our technology and supply chain support to meet the huge customer demand.
• Saw a business turnover of over $300 million in GMV, which was 3X times last year with the participation of 40,000 sellers and millions of visitors.
• Verdict: Fair Success
Overview
Flipkart Advantage: The latest step towards increasing the outreach
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and Outreach (8/8)
Buy from third-party sellers with confidence
Understanding the advantage
30-Day Replacement Policy
Quality packing, faster delivery
Track your shipment
Flipkart Advantage is our e-commerce fulfilment service for Sellers, where products are sourced from Sellers and we do the rest. That includes checking for quality, stocking, packing and shipment. As a Buyer, you are assured product quality, faster delivery and hassle-free returns. All this is backed by 24x7 customer service.
Digital Initiatives
Group 8 International Marketing Management (2015-17)
Overview
Digital Initiatives (1/9)
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart has a strong digital footprint and this is mainly due to its customer-focused approach
Courtesy – Flipkart page on LinkedIn
Overview
Social Media (1/2)
Digital Initiatives (2/9)
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Facebook1• Offers and
discounts, special sales promotions etc.
• Launch of new products, especially exclusive ones
• App/website improvements at the user’s end.
Blog7• Posts by various
contributing authors regarding the basic motives behind purchase of products (in-vogue, beauty tips etc.)
• Celebrity exclusives on fashion trends
Flipkart Stories5• Stories about
how Flipkart has impacted lives of individual customers (primarily testimonials of heavy buyers and loyal customers)
• Stories about unique sellers
LinkedIn4• Business
decisions, participation in conferences, new initiatives
• Career opportunities (‘Why work with Flipkart’ videos), employee benefits and testimonials
Twitter2• Informal platform
with individual customer testimonials, Dubsmash videos and contests
On the Flip side – Tech Blog6• Information about the
features and working of Flipkart’s tech features like ‘Ping’
• Upcoming search adaptability features etc.
360O Social Media
Strategy
YouTube3• Product reviews,
advertisements of offer days
• Short video series giving gifting ideas for every occasion
Overview
Social Media (2/2)
Digital Initiatives (3/9)
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
5 Social Media Lessons to learn from Flipkart
Social ListeningOn Flipkart, whenever they receive complaints on their online properties, they are prompt on replying. This re-instates the belief that once the product is sold it isn’t forgotten.
Connect via social mediaOn Flipkart’s website, there are options to connect on Twitter, Facebook or Google+ thus making people aware of their presence, increasing awareness, exposure, interaction.
HumorAds stand out with 12 year olds enacting like grownups and addressing the real concerns around ecommerce, it seems Flipkart is creating awareness about the industry as well.
Re-marketingExample: You viewed a certain product/category on Flipkart and left the website. The same product or category will be seen on the right sidebar/news feed of Facebook.
Know your platformFlipkart is fully aware of how each social media platform works and succeeds. As already seen, they have very different approaches to managing content on each of them.
Overview
Web (1/2)
Digital Initiatives (4/9)
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
The Flipkart Affiliate Program
Affiliate Tools Reports Testimonials
Simple banners & widgets, APIs for
listing Flipkart deals / products on your
own site / app
Extensive data about links, activity and overall website performance
Collection of affiliate testimonials for
publicity of Flipkart
• Affiliates are typically sites that sell coupons or lure consumers with cash-back offers. • They receive commission on every transaction they bring to e-commerce companies in the
form of commissions. • Affiliates are estimated to account for about 8 per cent of e-commerce sales in India.• Approximately 8-10% of the online marketing budget of e-tailers is spent on affiliate
engagement.
Overview
Web (2/2)
Digital Initiatives (5/9)
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Search Engine Optimization
Flipkart shows up in the top 5 results of Google search for generic search strings like “buy online”, “purchase online”, “online shopping”, “e-commerce” and many more, clearly indicating a strong SEO strategy to drive traffic to its website
Long tail keywords effectively to cater to more focused search strings.
Good quality content on affiliate sites helps to grow organic links
SEO strategy focused on ROI from purchase activity rather than traffic
A strong presence on Google+ helps get better search result visibility
Statistics on Flipkart’s spread of website marketing strategies
Traffic from search26.95%
Traffic from referrals19.85%
Traffic from social2.27%
Direct traffic 46.5%
Closest competitorAmazon
Top referring siteMySmartPrice
Global Rank196
Country Rank7
Category Rank9
Overview
Online advertising
Digital Initiatives (6/9)
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart uses a multi-channel approach to online advertising with a highly aggressive stance when it comes to increasing online visibility.
Added advantage of
conducive search results
on GoogleAdvertising
through pop-ups
maximizes online
presence
Display ads of recently viewed
products that were not bought
Mobile comparison
websites, digi-blogs
drive trafficVideo ads on social media
websites regarding
offers/discounts
AdWords
Cookies
Re-marketing
Affiliates
Social Media
Most innovative ad: “Training father for Big Billion Day” in association with TVFLink: http://madovermarketing.com/2015/10/10/flipkart-teams-up-with-tvf-to-deliver-the-
most-innovative-hilarious-sale-ad/
Overview
Flipkart on mobiles (1/2)
Digital Initiatives (7/9)
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
With growing number of smartphone users, Flipkart is moving to an app-focused strategy. Multiple initiatives and campaigns are being carried out to support this and drive traffic to apps.
Flipkart on Google Play Store®
Flipkart on App Store®
• Wide app portfolio• Free• Good ratings and sponsored reviews• Regular updates• SEO on Play Store for online shopping• Good categorization of items on sale• Flipkart Nearby is growing in popularity
App Highlights
Overview
Flipkart on mobiles (2/2)
Digital Initiatives (8/9)
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
App-only discounts
QR Code Scanning Flipkart drives traffic from its site to its app
This is in line with Flipkart’s push
towards smartphones, a
first in the e-commerce
business in India
Flipkart Lite (November 2015)
What?• Mobile site re-launched after discontinuation in March, 2015• The new Flipkart Lite site will make use of the new notifications feature in Chrome• Potential users can also add the Flipkart Lite page to the homescreen on Chrome in
order to access it directly without typing in the name each timeWhy?• Re-think of the app-only strategy as, with increasing width of apps on app stores,
Flipkart also competes with other apps (from IM to self-drive cars) for space on smartphones
• Online payment on apps can get messy if the internet fails at the time of the ‘Two-factor authentication’ process as per RBI’s guidelines (while entering OTP)
70-75% of sales is app-driven and hence its digital initiatives in this space are crucial
Overview
Digital Initiatives – RoundUp
Digital Initiatives (9/9)
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
OutreachSocial Media
Facebook, LinkedIn, Google+, YouTube, Tech
Blog, Blog, Flipkart Stories
WebSearch Engine
Optimization, Flipkart Affiliate Program
Online AdvertisingAdWords, pop-ups, re-marketing, affiliates, innovative video ads
Flipkart on mobilesApp-only discounts, QR
code scanning, app-updates, Flipkart Lite
Strategy
Group 8 International Marketing Management (2015-17)
Overview
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Study of various E- Commerce Ventures around the world - Alibaba
Strategy of genuineity over customer centricity• Facilitate communication and safety in the transactions• Tie up with manufacturers to identify counterfeiting products• Alipay to develop trust between merchants and consumers, eBay
didn't port Paypal to China a major reason for their failure their.
Order of operations , smart and dynamic STP– • Alibaba wisely started their internet business in China by not going
after the consumer market. Most people didn't have computers or internet in the late 90s/early 2000s.
• Also they realised that the fragmented territory and economic disparity needed some time to level the same
Short-term pain for eventual long-term gain:• The free site convinced Chinese merchants to use it, the design
convinced merchants and consumers, and eventually Taobao hit a tipping point in what is essentially a winner-take-all-business. eBay refused to cut pricing to zero claiming that a business requires a profit. It turned out a guerrilla move to offset eBay's bigger advertising budget.
Overview
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Study of various E- Commerce Ventures around the world - Alibaba
Developed the culture of Window Shopping:display of Taobao excites the public, Browsing the home page of Taobao is more like window shopping.
Jack Ma had strong Chinese government support All internet companies(eBay, Google, Facebook etc.) tried to enter in china and none succeeded
Strong Employee base and HR policies:Alibaba employees posted thousands of messages on internet bulletin boards directing users to Taobao.
IPO at a time it can compete with the big players:The IPO also gives Alibaba new cash that it can use to expand into areas , including possibly the U.S
Overview
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Study of various E- Commerce Ventures around the world - Rakuten
Strategy of personalised servicePrinciple of ‘Omotenashi’- high quality and personalised service. He says that hospitality has always been a part of Japan’s heritage and built his company to reflect the same.
Rakuten focuses on being diverse and offers its customers a unique shopping experience, in contrast to Amazon, they can get anything on Rakuten, from used $70,000 four ton-trucks, Gucci handbags, digital content (Amazon Japan doesn’t offer downloads), down to apples and oranges directly offered by regional farmers.
Instead of emphasizing efficiency and convenience, Rakuten tries to create a personalized, bazaar like shopping experience. Rakuten has many PhDs who work with big data and analytics, and have a state-of-the-art research lab. But believe that a shopkeeper’s recommendation is fundamental.
the company is “aggressively” working to integrate Viber into Rakuten. messaging and calling app Viber. Very similar to Ping in Flipkart.
Overview
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Study of various E- Commerce Ventures around the world - Rakuten
Seller SupportThe site offers its merchants a number of services to make their lives easier (real-world seminars, a monthly merchant-only magazine, phone support etc.). In return, Rakuten pockets fixed “virtual real estate” fees from the 28,000+ merchants currently registered on the site, in addition to commission payments (2.6% of each retailer’s sales revenue).
Going InternationalRakuten has been talking about going international for years now, and they’re already testing waters in a handful of countries. About a fourth of all items available for Japanese customers can be ordered from selected countries through a service called Rakuten International Shipping Services.
Overview
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Study of various E- Commerce Ventures around the world - Amazon
Put the customer firstfeatures like shopping carts, one-click buying so users did not have to type in all their credit card information each time, email confirmations, and post-shipping follow up. Amazon invested billions of dollars in warehouses and systems to boost the quality and efficiency of its order fulfilment process.passed most of the cost savings on to consumers – taking a very slim margin.
Latest in Technologysometimes other people can do a better job than you at inventing the ground-breaking technologies. Amazon acquired Kiva for $775 million and uses it to help make AmazonFresh a success.when you put your mind to solving the problem facing your customer, you should do a series of frugal experiments. AmazonFresh in 2007 in the Medina and Mercer Island neighbourhoods of SeattleEfficient use of big data
Overview
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Current E- Commerce Industry in India - Features
Cash on delivery (COD):COD permitted buyers to purchase without disclosing their credit/debit card detailsCOD was also instrumental in reaching out to customers in non-metropolitan areas (tier-II and tier III cities) where most of the customers did not have credit/debit cards
Innovative and customized services for attracting customers:Free home delivery, hassle free return policies within 7–30 days, referral discount, wish list, Try and Buy, tracking the consignment
Investment in distribution channel:Improving the average turnaround time for delivering products from 4-5 days to 1–2 days, Guaranteed one day delivery, POS devices with every field executive
Absence of human touch:Replacement of human to human interaction with human to machine interaction. The Rakuten philosophy missing.
Overview
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Current E- Commerce Industry in India - Features
Delay in remittance of cash by logistics provider:from an e-retailer’s perspective, this mechanism is not a great payment mechanism for the retailers, add to it the possibility of theft , ponzi scams run by the delivery boys
Time lag between order placed and order delivered:the customers have to pre-plan her purchase process, in order to accommodate the delivery process. In certain categories, for example, grocery, customers prefer the delivery within couple of hours of placing the order.
Short attention span of customers during online shopping: One of the major difference between online and offline mode of shopping is that customers often show short attention span and lack ofpatience in online shopping. Customers easily navigate to the next site if they don’t find the product they were looking for. This problem gets further compounded by slow internet speed in many cities in India.
Expectation of lower prices in online shopping
Overview
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Current E- Commerce Industry in India –Study of Cartlene.com strategy
Acquisition and retention of customer:For example, in India, traditionally customers have trusted their family jeweller for purchasing jewellery made of gold and diamonds as these are high ticket transactions. To bridge the gap of trust and creditability, one of the largest online jewellers, caratlane.com has opened a solitaire ‘experience’ lounge. It is a ‘hybrid’ experience for the customer where she can come to a physical store and still buy it online. In another initiative, caratlane.com asks the customers to select any 5 products from try@home catalogue which they can try at their home. This gives the company an opportunity to build trust, increase volume and also helps the company to up-sell and cross-sell its products.
However, in order to build trust, online retailers often end up spending significant amount per customer. It was reported that majority of Indian online retailing websites spend between Rs.800-1,500 to acquire a customer.
This becomes even more challenging and expensive as repeat purchase tends to be less often the norm. Also, with growth of online retailing, there are multiple players, often with undifferentiated offerings, who are competing for the same set of customers. The resultant stickiness and inability to retain customer loyalty
Overview
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart Vision & Mission
The mission of Flipkart is to “provide their customers a memorable online shopping experience”.By offering the widest range of products at disruptive prices, backed by unparalleled services to customers
The Vision of Flipkart is to become “Amazon of India”.This follows the winner takes all that happened in US with Amazon
The brand space that they have chosen for themselves, which gets manifested in the new brand logo and film, that is the space where they want to fuel and fulfil the wishes of our customers. Life feels great when wishes come true and that is the core thought that has driven our current brand choice.
Overview
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart’s New Brand Identity
• Conceptualized and designed by Flipkart’s design team and Umbrella Design, the new brand identity represents Flipkart’s vision of e-commerce in India by reinstating its focus on the mobile platform
• The 3D design and contrasting colour palettes in the new logo help break the clutter and stand out on the mobile platform.
• The core brief was to create a product that brings alive the new brand space of fuelling and fulfilling wishes; a creative that talks to consumers across age, gender, geographies, pop-strata and social class. Our story is not just about a series of products; it doesn’t talk about the gardening tool, it talks about why does a particular person wish for a particular gardening tool?
• "Flipkart wants to be perceived as a familiar and friendly brand. This rebranding exercise is a part of the brand's vision in achieving that. The company has chosen to retain its signature yellow colour, as it represents qualities that Flipkart represents, like imaginative, lively, friendly and inclusive. The font used in the logo is Riona, which is contemporary but appealing to everybody. The shopping bag represents the freedom to choose products that a consumer likes," explains Kalpita Bose, CEO, Umbrella Design.
• Shekhar Badve, founder-director (marketing and strategy believes that the 'F' logo with those trail lines is the oldest way to say "we are fast." "But, it does convey the change that they are looking at making - providing a fast connecting experience, a fun way to buy and increasing the number of mobile customers. So, it's a good move," he says.
Overview
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart’s New Brand Identity
• Conceptualized and designed by Flipkart’s design team and Umbrella Design, the new brand identity represents Flipkart’s vision of e-commerce in India by reinstating its focus on the mobile platform
• The 3D design and contrasting colour palettes in the new logo help break the clutter and stand out on the mobile platform.
• The core brief was to create a product that brings alive the new brand space of fuelling and fulfilling wishes; a creative that talks to consumers across age, gender, geographies, pop-strata and social class. Our story is not just about a series of products; it doesn’t talk about the gardening tool, it talks about why does a particular person wish for a particular gardening tool?
• "Flipkart wants to be perceived as a familiar and friendly brand. This rebranding exercise is a part of the brand's vision in achieving that. The company has chosen to retain its signature yellow colour, as it represents qualities that Flipkart represents, like imaginative, lively, friendly and inclusive. The font used in the logo is Riona, which is contemporary but appealing to everybody. The shopping bag represents the freedom to choose products that a consumer likes," explains Kalpita Bose, CEO, Umbrella Design.
• Shekhar Badve, founder-director (marketing and strategy believes that the 'F' logo with those trail lines is the oldest way to say "we are fast." "But, it does convey the change that they are looking at making - providing a fast connecting experience, a fun way to buy and increasing the number of mobile customers. So, it's a good move," he says.
Overview
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart’s Mobile Only Strategy Analysis
The growth of Mobile: With mobile apps being developed by most e-commerce websites, smartphones are increasingly replacing PCs for online shopping. In 2013, only 10% of the mobile users used smartphones, and only 5% of the e-commerce transactions were made through a mobile device. This figure has more than doubled, and more than 13% of all e-commerce transactions today happen via mobile3. According to some industry players, over 50% of the orders are being placed through mobile apps, which is not only leading to substantial customer acquisition but also building customer loyalty for various brands. However, most mobile transactions so far are for entertainment, such as booking movie tickets and music downloads. This trend will change soon with more and more merchandise being ordered online.
Enhanced Shopping experience: The experience of shopping is being enhanced because of strong advertisement programs which have made the consumer believe that shopping for occasions such as weddings is also a very convenient and enriching for the customer. New concepts such sales on weekends, holidays and festivals are attracting a lot of new customers and building customer loyalty among existing customers. Television and social media, particularly Facebook, are playing a proactive role in promoting eTailing through aggressive advertisements.
Overview
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart’s Mobile Only Strategy Analysis
India is expected to record the highest growth in the Asia Pacific region during 2012–16.:In the coming decade, we expect the sector to be dominated by mobile platforms, as the growth and penetration of mobiles in rural India, coupled by data services becoming cheaper would mean a greater population exposed to e- commerce and hence transacting with the help of Mobile money, and having access to virtual trial rooms would take front. As foreign and domestic e-retail majors such as Amazon and Flipkart expand their businesses aggressively, hiring activities are expected to grow by over 30 per cent in the sector and may help create up to 50,000 jobs in the next 2-3 years. Push Notification in mobiles have evaluated 6 times greater response than promotion e- mails that enter the spam folder
POS devices as mobile where payments can be made on the spot as soon as the product is delivered for people who still have trust issues with their transactions
More business coming from smaller towns: Ecommerce is increasingly attracting buyers from tier-2 and tier-3 cities inspite of the limited access to brands but the sentiment of the consumer is aspirational.
Overview
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Opinions and Suggestions
Deal Aggregators:Groupon, who has been known for its deep discounted deals on everything from restaurant meals to shoes and watches, received an overwhelming response when it offered onions at Rs. 9 in India which was about 80-90 percent less than the market price. the customer could buy 1 kg of onion from Groupon website on ‘first-come-first-serve’ basis with sales limited to 3,000 kg per day
Flash Sales:Vente-Privee, a European e-retailer, started the trend of flash sales in online medium and it was later adopted in U.S.A by Gilt Group. Gilt, the most prominent flash sale site in US, was used to introduce Volkswagen’s all-new 2011 Jettas. Volkswagen was the first automotive brand to be sold through any flash sale site in the US. Volkswagen sold three of the $15,995 cars for $5,995 on Gilt. Fifty-five thousand people who missed out added their names to the wait list and Volkswagen sent them $500 coupons to buy or lease a Jetta. Volkswagen was able to sell 69 full-price cars as a result of the Gilt flash sale and created an e-mail list ofEBay.in offered Nokia Lumia 620 for only Rs 13,379 in its ‘One Day Flash Sale’ offer in March 2013. In another example, spicejet.com offered ‘The Big Sale’ for three days in which ‘10 lakh seats’ were made available for an all-inclusive fare of just Rs 2013 through its website. The offer was valid for bookings of domestic flights made during January 11 to January 13, 2013 while the customers could undertake their travel from 1st February to 30th April,2013. The company officials claimed that it sold 7,05,000 tickets in just three days (of the promotional fare) and the carrier managed revenue of Rs 165 crore (1 crore = 10,000,000).
Overview
Digital Initiatives
Strategy
New Product Innovation
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Opinions and Suggestions
Reviving 3- hour delivery:For a short last year Flipkart has 3- hour delivery in select towns, this can provide a huge marketing push to show its supremacy over other players in the market
Following Rakuten’s Strategy of personalising transactions:Rakuten urges its sellers to have a write up about the sellers success story, how the product is produced and how their product differentiates from that of its competitors. Hence creating a personal attachment with the customers
Extend the services of Flipkart First for loyal customers:Flipkart First( a paid membership scheme which extends loyalty benefits) is a strategy to win the loyalty of customers in the extremely competitive e- commerce space but the strategy must be re- directed to make Flipkart First as a reward to frequent and loyal customers than asking them to pay for it.
Customer Review: According to Reevoo stats, 50 or more reviews per product can mean a 4.6% increase in conversion rates. 63% of customers are more likely to make a purchase from a site which has user reviews. (iPerceptions, 2011).Site visitors who interact with both reviews and customer questions and answers are 105% more likely to purchase while visiting, and spend 11% more than visitors who don’t interact with UGC. (Bazaarvoice, Conversation Index, Q2 2011).Consumer reviews are significantly more trusted (nearly 12 times more) than descriptions that come from manufacturers, according to a survey of US internet users by online video review site EXPO. (e-Marketer, February 2010).
New Product Innovation
Group 8 International Marketing Management (2015-17)
Overview
Digital Initiatives (1/9)
Strategy
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Growth of Flipkart over the years and its inception
New Product Innovations
(1/14)
Overview
Digital Initiatives (1/9)
Strategy
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart Evolution
New Product Innovations
(2/14)
Along with the items sold, flipkart has changed its
looks and logos over the years. Here is a lookback
at the various logos Flipkart has used and how
it has evolved itself to keep in touch with the
latest customer expectations and at the
same time keeping a coherent chain of thought
Throwback
Overview
Digital Initiatives (1/9)
Strategy
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Growth of Flipkart over the years and its inception
New Product Innovations
(3/14)
Online book store
Electronics and media
Healthcare
Fashion industry
Why Start with Books initially ??
To emerge as a pioneer in
book retailing rather than venturing
comparison shopping
engine
Lower transaction size means
easy to establish
infrastructure
Easier Logistics and
more visibility again allows
easy acquiring Shipping and handling of
books is easyBooks are still
something of a intellectual and leisure activity which helps in
elite brand building
Pioneer
Transaction
Better Shelf Size
Logistics
Brand Building
Overview
Digital Initiatives (1/9)
Strategy
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart - Cash On Delivery
New Product Innovations
(4/14)
WHY ??• India is primarily a cash driven economy. • Existing payments infrastructure in India is abysmal. • Security around existing payments infrastructure are non-existent• And most importantly - because customers wanted itHOW ??• Sell good products its amongst the largest reasons for returns in the rest of the Indian
e-commerce space (which incorrectly gets blamed on COD• Own delivery/collections network• Very strong reconciliation operations• Fast deliveries“The bottom-line is there is customer behavior that you can influence, and behavior that you cannot. We are not here to teach India to use plastic. We are here to help them shop in the easiest possible fashion” –Sachin Bansal
How Flipkart started and sustained the Cash-On-Delivery system !!
Overview
Digital Initiatives (1/9)
Strategy
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart – Delivery Scheme Innovations
New Product Innovations
(5/14)
On Flipkart, both the same-day and in-a-day delivery options come at an extra cost of Rs 140 and Rs 90 per item purchased.
In-a-day and same day guarantee scheme Competitor Analysis
Amazon has the same options as well, but the price points and delivery conditions vary. Amazon’s costs are reflected on a per order basis, as compared to Flipkart’s per item cost – which makes Flipkart’s guaranteed delivery proposition much more expensive.
Amazon offers same-day delivery for Rs. 149, and guaranteed one-day delivery for Rs. 99 per order. In addition to this, Amazon also has a two day delivery option for Rs 79 per order. It also automatically refunds shipping charges on products that are not delivered within the specified time frames.The move by Flipkart isn’t a first. Other players in the space like SnapDeal and Tradus had no guarantees
Overview
Digital Initiatives (1/9)
Strategy
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart – Payment Wallet
New Product Innovations
(6/14)
Wallet
The Wallet is a prepaid instrument that enables you to shop on Flipkart multiple times by making a one-time payment of a certain value. When you select the Wallet as the mode of payment for your order, the corresponding amount will be deducted from your Wallet balance. Wallet compartments: The Flipkart Wallet has two compartments - Flyte and WS Retail. Wallet Top-ups which can be used only for digital purchases go in the Flyte compartment, while store credit issued by seller WS Retail resides in the WS Retail compartment. Promotional credit could be issued to either compartments
Overview
Digital Initiatives (1/9)
Strategy
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart – First Customer Scheme
New Product Innovations
(7/14)
Flipkart First
Flipkart First - an annual subscription service for frequent shoppers
According to the e-commerce giant, the Flipkart First annual subscription
service will offer customers unlimited access to In-a-Day Guarantee delivery;
free standard delivery with no minimum purchase price; Same-day Guarantee delivery at a discounted price, and a
bonus 60-day replacement guarantee, instead of the usual 30-day period
Competitor Analysis
Notably, the Flipkart First service is similar to the Amazon Prime premium subscription service in the US. Amazon Prime service offers customers in the US a free two-day shipping on orders with no
minimum order size. It even gives access to unlimited instant streaming of movies and TV shows
with Prime Instant and also offers free books
Overview
Digital Initiatives (1/9)
Strategy
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart - PING
New Product Innovations
(8/14)
PING is a chat service inside flipkart’s mobile app that allows you to show pictures of the products you are buying on flipkart to your
friends. This allows you to get second opinions and bond better with your friends. This is a new product innovation by Flipkart.
PING
Overview
Digital Initiatives (1/9)
Strategy
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart – A typical receipt generation
New Product Innovations
(9/14)
Order Number
Logistics
Information Contained
Use Case
Consider the order number OD2016381693…..602As shown in the picture
This contains all the information like the Product Code, Date Of Purchase, Reference Number, Delivery Area Code and so on….
FLIPKART LOGISTICS AGENCY
Customer enters the order number and gets the real time update of the shipment status
Overview
Digital Initiatives (1/9)
Strategy
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart – A Procurement and Sourcing Cycle for Flipkart
New Product Innovations
(10/14)
Inventory Levels +Rare Ordered Product
Direct Procurement From Companies
Stocked in the warehouse and Delivery Centers
Credit period=14-30 daysCredit Limits= varies with products
Distributors of these companies delivers the product in respective flipkart’s Ware house (as per requirement)
1.Weekly2.Monthly3.One-time4.Urgent
Overview
Digital Initiatives (1/9)
Strategy
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart – Pricing for Flipkart
New Product Innovations
(11/14)
Pricing & Margins8-35%
On sale price of product
Parameter= Brand, Category margin, Premium margin, Volume, Cost of Delivery,
Operating cost marginHigh Margin Category
Toys, Watches, Beauty& Healthcare, luggage
Mid Margin Category
Books, TV, Home & Kitchen, Gaming, Belts,Bags
Low Margin Category
Mobiles & Cameras,Computer accessories
Overview
Digital Initiatives (1/9)
Strategy
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart – A Logistics Cycle for Flipkart
New Product Innovations
(12/14)
Delivery Centers
Ware house Stocking Levels
INVENTORY MANAGEMENT
SYSTEM Product’s Inventory
Frequency Of Order Of The Product
Location of the product
Is Identified
Logistic body is assignedCustomer product delivery location (Delivery cost-Free If ordered > 300 Rs. Else Rs. 30 Extra)
Parameter = city, locality, Type Of product,Cost definition, inter-city agreement etc.
Automated Software Sends Information about the product Delivery to these logistics body
Overview
Digital Initiatives (1/9)
Strategy
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart – A Logistic Problem Solved and Approach !!
New Product Innovations
(13/14)
Customer order
Checked in delivery centre inventory
YES
Delivery Time 1-2 Days
SUCCESS!!!Sent to logistics body
NO 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
Overview
Digital Initiatives (1/9)
Strategy
Group 8 International Marketing Management (2015-17)
Sales Promotion and
Outreach
Flipkart – A Small Summary
New Product Innovations
(14/14)
DISTRIBUTOR LOGISTICS PRICING BPOFlipkart distribution is getting designed in such way that , flipkart can become official distributor of several company’s product future in India. E.g. – Motorola/Google
Flipkart Logistics is getting designed in such way that, other e-commerce website can also outsource delivery to Flip-kart.
Flipkart Pricing getting designed in such way that, other e-commerce website can outsource delivery of several products through flipKart. (Motorola, Google, Casio)
Flipkart BPOgetting designed in such way that, other e-commerce website can outsource delivery of several products through flipchart
• Open loop for Value Added Service• Adding extra source of income
FLIPKART
Thank You
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