rahul flipkart mktg strategies
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MARKETING PLANS AND STRATEGIES FOR FLIPKART
Rahul kumar1st MBA 2015-2017
INTRODUCTION
•Leading e-commerceCompany in India
•Founded in 2007 by
Sachin Bansal and Binny
BansalVALUED 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
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
om
Red moments
iFEELCafepress.co
m
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.
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)
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
MARKETING MIX
• Product• Price• Promotion• Place• Process• People• Physical evidence
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 PROCESSPLACE:•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
THANK YOU