Final
Final
(COIMBATORE CITY)”
DEPARTMENT OF COMMERCE
DEPARTMENT OF B.COM, ACCA & M.COM (FCA)
MAY 2021
CERTIFICATE
CERTIFICATE
STATION: COIMBATORE
DATE:
DATE :
ACKNOWLEDGEMENT
ACKNOWLEDGEMENT
INTRODUCTION 01
DEFINITION OF MARKETING 04
RESEARCH METHODOLOGY 06
SAMPLING DESIGN 07
CHAPTER SCHEME 08
REVIEW OF LITERATURE 09
REFERENCES 11
HISTORY 12
COMPANY PROFILE 13
ACQUISITIONS 14
FUNDING 18
MOBILE RETAILING 19
ACQUISITIONS BY WAL-MART 20
MARKETING STRATEGIES OF FLIPKART 22
COMPETITORS OF FLIPKART 24
SWOT ANALYSIS 26
FLIPKART CAMPAIGN 29
SIMPLE PERCENTAGE 32
SUGGESTIONS 58
CONCLUSION 59
BIBLIOGRAPHY 60
ANNEXURE 61
LIST OF TABLES
LIST OF CHARTS
CHAPTER – 1
Few years back technology brought the shopping information on to the laptops; today it
brings the products right to the doorstep. In the twenty-first century it becomes increasingly
difficult to run a business without internet. The internet has become an essential tool for
many business activities including marketing. The usage of e-commerce has increased rapidly
across the developing countries like India. Though detractors to this technological
advancement thought that this would take the joy off shopping, it has only added a whole
new perspective to shopping. Electronic retailing (e-tailing), E-Retailing is a buzzword for
any business to-consumer (B2C) transactions that take place over the Internet. Simply put, e-
retailing is the process of selling retail goods using the internet.
The idea of e-commerce is downloading at a fairly rapid pace in the psyche of the Indian
consumer. In the metros, scarcity of time is a big driver for online shopping. On the other
hand, accessibility to a assortment of products makes audiences from smaller towns and cities
opt for the online route. Major retailers face challenges in outrageous their stores sufficiently.
Often, customers are unable to purchase items of their optimal, thus motivation them to resort
to e-retailers.
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Online marketing is becoming a hot topic in every business sector, and gradually plays a truly
important role in any company’s multi-channel marketing strategy. Companies like Flipkart,
Amazon and Dell created the online retail industry by putting the entire customer experience
- from browsing products to placing orders to paying for purchases - on the Internet. The
success of these and other companies encouraged more traditional retailers to create an online
presence to augment their brick-and-mortar outlets. The penetration rate is quite low in
comparison to other countries worldwide; however the number of users is significantly high.
The Indian e-tailing sector has matured enough to deal with the rapid transformations from
the era of offline to online platform to be used by the consumers and addresses the challenges
faced in this process. The paper examines the growth and opportunities in the Indian e-tailing
sector by focusing on the current and future wave of the big giant in India, Flipkart.
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ELOBRATIVE INFORMATION ON TOPIC:
An inclusive plan that combines all of an organization's strategy and its marketing objectives.
A good marketing strategy to attain the determined benefit of the business and the right
product mix in order to sustain market research and concentration on the measures taken on
them. Marketing policy is the basic work of a promotional plan. Being a Developer in the
market than can be the case, depending on the market benefits for entrepreneurs and / or
attracts investors. If there is assistance possible and the ability to have a steady marketplace
share, many trades will start to shadow these innovators. This is often mentioned to the close
followers. Innovators in these market entrants will also provide the market can be seen as
participants to the followers of late. After the early followers of the entrants are more likely
to invest 11 extra in product study and expansion, due to the quantity. By doing this, thus
causing the aforementioned product growth and extension, businesses will allow you to find
the defects in the finished product. Therefore, it is essential to marketing achievement,
customer preference, can lead to. By having a varied technique, which market their unique
selling point compared to those Innovators who perhaps target different audiences allows you
to make followers. Following the opening of the market in general as "a risk or a precise
sector of the supporting assets" that has created business product can be encouraged.
MARKETING
Marketing refers to any actions a company takes to attract an audience to the company's
product or services through high-quality messaging. Marketing aims to deliver standalone
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value for prospects and consumers through content, with the long-term goal of demonstrating
product value, strengthening brand loyalty, and ultimately increasing sales.
DEFINITION OF MARKETING
Dr. Philip Kotler defines marketing as “the science and art of exploring, creating, and
delivering value to satisfy the needs of a target market at a profit. Marketing identifies
unfulfilled needs and desires. It defines measures and quantifies the size of the identified
market and the profit potential. It pinpoints which segments the company is capable of
serving best and it designs and promotes the appropriate products and services.”
MARKETING RESEARCH
Market research is the process of determining the viability of a new service or product
through research conducted directly with potential customers. Market research allows a
company to discover the target market and get opinions and other feedback from consumers
about their interest in the product or service.
“Marketing research is the inclusive term which embraces all research activities carried on
for the management of marketing work, the gathering, recording and analysing of all facts
about problems relating to the transfer and sale of goods and services from producer to
consumer.” —Harry Hapner.
MARKETING STRATEGY
A marketing strategy refers to a business's overall game plan for reaching prospective
consumers and turning them into customers of their products or services. A marketing
strategy contains the company's value proposition, key brand messaging, data on target
customer demographics, and other high-level elements.
Choosing suitable marketing strategies for the company will bring great advantages such as:
• Increased sales
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• Creating sustainable growth for the company
• Understanding what your customers want
• You will meet the needs and exceed the expectations of the customers
• You will strengthen the relationship with the target market
• You will build the brand in the consumer’s mind
Today’s business world is highly competitive. Every firm is in the race to win more and more
customers. It seems like every business organisation is in like a virtual war with one another
where one organisation attacks another with their strategies and the other defends itself. This
war is also evident in the e-commerce industry as well, which is the fastest growing industry
across the globe. E-commerce is that sphere where almost every other organisation is trying
to blend itself up to in order to meet the competitive scenario. This study is thereby an
attempt to study the competitive marketing strategy of Flipkart in order to retain their
respective market positions and thereby attain more customer base.
The research work is carried out to find the market level, financial growth and to know the
buying knowledge of the customers towards online spending and shopping of Flipkart. This
will be helpful to understand the leading brand of e-commerce industry, customer preference
and its marketing strategy, since e-commerce is one of the pillars of the country’s growth and
does wonders for the country’s economic progress.
The new business plan will assist in conveying about the study of marketing strategy. This
study supports to improve promotion to get more buyers. This study will be related with
Filpkart and geographic location that are covered in Coimbatore.
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OBJECTIVES OF THE STUDY
RESEARCH METHODOLOGY
SOURCES OF DATA
This part of study defines all the process of data collection. When it comes to data collection,
there are two methods in general used by researcher to collect data.
1. PRIMARY DATA
The primary data is that data which is collected fresh or first hand, and for first time which is
original in nature. Primary data can collect through personal interview, questionnaire etc. to
support the secondary data.
2. SECONDARY DATA
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The secondary data’s are those which have already collected and stored. Secondary data
easily get those secondary data from records, journals, annual reports of the company etc. It
will save the time, money and efforts to collect the data Secondary data also made available
through trade magazines, balance sheets, books etc..
The present study is based on combination of both qualitative and quantitative data. The
qualitative data is collected through the sampling from the consumer. Random consumer is
selected for the sampling purpose. The sample individual is selected from different age
group, different sex and from different location. The different group of people including
student, employee and unemployed, housewives, etc is considered as sample for the study.
The exploratory study was done by circulating the questionnaire within the educational
campuses, in some work place and to some online users. Quantitative research in the form of
a structured questionnaire was carried out. Sampling was done through non probability
convenient sampling. Questionnaires were circulated in Google forms. The researcher
collected data by using a convenience-sampling method by providing 100 samples all around
the survey area.
SAMPLING DESIGN:
✓ The examining unit will be the customers who buy on the web.
✓ Data collected through survey method.
✓ 100 respondents from different places in Coimbatore.
✓ Tools used for this study is Percentage Analysis
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This study describes the characteristics not provides answers.
All population is not covered, simple random sampling used.
Sampling size is less when compared to customers of online shopping.
There will be no eye to eye contact.
CHAPTER SCHEME:
The first chapter deals with introduction. It describes the necessity for such a study
and explains the details of the present study. It provides the statement of the problem, the
need of the study, the scope of the study, objectives of the study, methodology, limitation of
the study and chapter scheme.
This chapter presents the review of various studies and articles conducted, relating to
the core aspects of the study.
This chapter deals with the analysis of data with the help of percentage analysis.
This chapter presents the findings, suggestions and conclusion of the study.
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CHAPTER – 2
REVIEW OF LITERATURE
A Literature review is a scholarly paper that presents the body of text that aims to review the
critical points of current knowledge including substantive findings as well as theoretical and
methodological contributions to a particular topic. Literature reviews are secondary
sources and do not report new or original experimental work.
Ernst and Young (2000), “Concerning the factors that influence or hinder online shopping”
Reported that Internet users purchased online because of good product selection,
competitive prices, and ease of us but were concerned about shipping costs, lack of
opportunity to prior examining the products, as well as the confidentiality of credit card and
personal information.
Wessel, Kirk D (2004), “A study on consumer loyalty” author defines irrespective of the
civil argument about whether consumer loyalty progresses business benefits, because of
encounters in information gathering, small research has discovered the direct effect of
customer loyalty on consumer commitment. With special approval from a bank, this review
inspected 375 legitimate bank customer tests of individual client benefit fulfilment and their
related promises to the bank.
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Petrovic Dejan (2006), in his study on “Analysis of consumer behaviour through online mode”
explained that the most relevant behavioural characteristics of online consumers and examine
the ways they find, compare and evaluate product information.
Shun & Yunjie (2007), in their study on “Marketing of Flipkart products” showed that there
are product types, which are more likely to be sold online such as software, books, electronics
and music. Reason for this is that when purchasing these types of products, one does not
require personal inspection and most, if not all features, can be outlined in the product
description and images.
Bretheon P R Pett & Cambell C (2008), there are a few target dissimilarities that for the
most part exist between looking for primary goods in a store over an Internet supplier. While
these target dissimilarities between the two shopping conditions exist, the customers may not
really see or be impacted by these distinctions. For example, time spent to buy basic supply
things from a store by and large takes longer than purchasing similar things on the web.
Ajzen II (2012): It is the most part recognized that making a journey to the market is seen as
an essential need of day to day life. Late perceptions find that the purchasers search for
primary goods twice every week (FMI, 2000). While this may be the current condition,
altering purchaser’s ways of life and increasing marketable centre, substitutes may adjust this
normal practice later on.
Agwu E (2013), “Study of the buyers conduct” is the examination of how public relaxes on
choices to spend their nearby belongings (Time, Money and Efforts) on use related
possessions. It contains the review what they buy, why they got it, when they get that, where
they get it, how frequently they get it and how often they utilize it.
Khandelwal Utkal Yadav Seemantkumar (2014): while looking for essential goods may
fulfil more than one of the seven requirements, it in all possibility fulfils a buyer's
physiological needs. This appears differently in relative to other buying situations, for
example, those for fashion where they should be fulfilled are possibly going to be weighted
more on superior need levels (eg. Regard).
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Prashant Singh (2014), in his article “Consumer’s Buying Behaviour towards Online Shopping A
case study of Flipkart.Com user’s in Luck now City” published in Abhinav stated that future of e-
retailers in India looking very bright. E-retailers give consumers the best way to save money and time
through purchasing online within the range of budget. Flipkart.com offering some of the best prices
and completely hassle-free shopping experience. The whole concept of online shopping has altered
in terms of consumer’s purchasing or buying behaviour and the success of Retailers in India is
depending upon its popularity, its branding image, and its unique policies.
Mukherjee & Wrintankar (2016), “Ecommerce giant Flipkart” is of the opinion that the
ecommerce giants have cut their commissions in order to get the business from big and
preferred sellers. The portals ensure that the savings are passed on to the customers hence the
customers would be on the gaining side.
Flipkart Blog (2018) said that ecommerce has witnessed a stupendous growth in online
commerce industry. Artificial intelligence and machine learning are here to stay and has been
implemented in problem solving capacity. Another important trend the company is
witnessing is Chabot’s and browser less shopping.
Financial Express online (2019) said that the new policies introduced in December 2018
mainly acts upon the complaints of vendors. New rules have been setback to the Ecommerce
Giants however the small-time vendors seemed to be on the gaining side.
REFRENCES:
Ernst and Young (2000), “Concerning the factors that influence or hinder online shopping”.
Wood W. Quin J. M. & Keshy D. A. (2002): “Focused New element advancement in
marketing”.
Wessel, Kirk D (2004), “A study on consumer loyalty”.
Petrovic Dejan (2006), “Analysis of consumer behaviour through online mode”.
Shun & Yunjie (2007), in their study on “Marketing of Flipkart products”.
Agwu E (2013), “Study of the buyers conduct”.
Mukherjee & Wrintankar (2016), “Ecommerce giant Flipkart”.
Prashant Singh (2014), “Consumer’s Buying Behaviour towards Online Shopping A case study of
Flipkart.Com user’s in Luck now City”.
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CHAPTER – 3
AN OVERVIEW OF FLIPKART
Flipkart is India’s answer to Amazon. And just like Amazon, the company has rapidly
become one of India’s original unicorns. Founded by two friends, Sachin and Binny
Bansal, as recently as 2007 in Bangalore, the company is now owned by Wal -Mart and is
one of India’s huge success stories.
HISTORY:
Let’s take a closer look at Flipkart’s journey over the years. Flipkart started
when both co-founders were working for global e-commerce giant, Amazon, in Bangalore.
Filpkart too, started off with selling only books on their website. After they secured funding
and showed significant growth, they moved to other categories. The Bansals struck gold
after their initial funding, with growth figures doubling every quarter, they raised many
rounds of funding both from American as well as Indian investors. Their revolutionary
“Cash on delivery” functionality paved the way for their growth among Indian consumers
who had just begun to discover online shopping. This helped consumers receive their
products before paying for them - as a sort of insurance against India’s many logistical
hurdles. Flipkart became India’s e-commerce giant. This was further strengthened by their
deal with Wal-Mart in 2018 when the Bansals sold a 77% stake in their company for a
whopping $16 billion, taking the company’s valuation to about $22 billion. In their initial
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existences, the only books on Flipkart, expanded it as soon as electric goods, mid-air
conditioners, air chillers, stationery provisions and lifestyle goods and other products have
ongoing to offer e-books. Leaving Microsoft to sell them the first product purchased in Andhra
Pradesh VVK Moon World. Flipkart is now having more than 30000 employees. Flipkart such
as delivery, conveyance, cash, credit or debit card, net banking, cash wallet transactions, e-
gift voucher and card swipe allows you to Reward devices.
Flipkart has enabled millions of consumers, sellers, merchants and small businesses to be a
part of India’s e-commerce revolution. With a registered customer base of around 160
million, offering over 150 million products across 80+ categories, Flipkart is known for
pioneering services such as Cash on Delivery, No Cost EMI and easy returns – customer-
centric innovations that have made online shopping more accessible and affordable for
millions of Indians. Together with Myntra and Jabong, which hold prominent positions in the
online fashion market, and PhonePe, India’s fastest growing digital payments platform, the
Flipkart Group is steering the transformation of commerce in India through technology.
COMPANY PROFILE:
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Area served India
• Walmart (81.3%),
Owner
• Tiger Global Management (4.70%),
• Microsoft (1.3%),
• Accel (1.1%)[2][3]
Subsidiaries • Myntra
• Jabong.com
• PhonePe
• Ekart
• Jeeves
• 2GUD
URL www.flipkart.com
Advertising No
Commercial Yes
Registration Required
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ACQUISITIONS:
In 2011, Flipkart acquired the digital distribution business Mime360.com and the
digital content library of the Bollywood portal Chakpak.
With its eyes on India's retail market, Flipkart acquired Letsbuy, an online electronics
retailer in 2012, and Myntra, an online fashion retailer, for $280 million in May
2014. Myntra continues to operate alongside Flipkart as a standalone subsidiary
focusing on separate market segments.
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In 2016, Flipkart acquired the online fashion retailer Jabong.com from Rocket
Internet for $70 million and the UPI mobile payments start-up PhonePe.
Flipkart Wholesale recently launched a digital platform for kiranas and MSMEs. In
October 2020, Flipkart acquired a 7.8% stake in Aditya Birla Fashion and Retail for
$204 million.
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VISION, MISSION AND GOALS:
Vision:
To become the Amazon of India.
Mission:
Providing a pleasant customer experience.
Goals:
Creation books easily obtainable to anyone who has admission to internet.
➢ Sachin Bansal was awarded Entrepreneur of the Year, 2012–2013 from The
Economic Times, a leading Indian economic daily newspaper.
➢ In September 2015, the two founders entered Forbes' India Rich List debuting in the
86th position with a net worth of $1.3 billion each.
➢ In April of 2016, Sachin and Binny Bansal were named to Time magazine's annual
list of The 100 Most Influential People in the World.
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FUNDING:
The initial development budget of Flipkart was INR ₹400,000 (US$5,600). It later raised
funding from venture capital firms Accel India (receiving US$1 million in funding in
2009) and Tiger Global (US$10 million in 2010 and US$20 million in June 2011). On 24
August 2012, Flipkart announced the completion of its 4th round of funding, netting a total of
US$150 million from MIH (part of the Naspers Group) and ICONIQ Capital. The company
announced on 10 July 2013 that it had raised an additional US$200 million from existing
investors, including Tiger Global, Naspers, Accel Partners and Iconiq Capital.[86]
Flipkart's reported sales were ₹40 million (US$560,000) in the FY 2008–2009, ₹200
million (US$2.8 million) in the FY 2009–2010 and ₹750 million (US$11 million) in the FY
2010–2011. Flipkart reported a loss of ₹2.81 billion (US$39 million) for the FY 2012–13. In
July 2013, Flipkart raised $160 million from private equity investors. In October 2013, it was
reported that Flipkart had raised an additional US$160 million from new investors Dragoneer
Investment Group, Morgan Stanley Wealth Management, Sofina SA, and Vulcan Inc., with a
share of the funding coming from existing investor Tiger Global. On 26 May 2014, Flipkart
announced that it had raised US$210 million from Yuri Milner's DST Global and its existing
investors Tiger Global, Naspers, and Iconiq Capital. On 29 July 2014, Flipkart announced
that it raised US$1 billion from Tiger Global, Accel Partners, Morgan Stanley Investment
Management, and a new investor, Singaporean sovereign-wealth fund GIC. In December of
2014, after it received $700 million from another round of funding, Flipkart had a market cap
of $11 billion.
By August 2015, after raising another US$700 million, Flipkart had raised a total of
$3 billion over 12 rounds of funding from 16 major investors.[102] In April 2017, Flipkart
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underwent another round of funding, receiving $1.4 billion in funding from investors
including eBay, Microsoft, and Tencent. On 10 August 2017, Softbank Vision Fund invested
another US$2.5 billion in Flipkart. On 19 September 2018, Flipkart Marketplace Singapore
infused INR 3,463 crore into Flipkart Internet. The transaction was done in two tranches,
according to regulatory filings.
MOBILE RETAILING:
In February 2014, Flipkart partnered with Motorola Mobility to be the exclusive Indian
retailer of its Moto G smart phone. Motorola also partnered with Flipkart on the Moto E, a
phone targeted primarily towards emerging markets such as India. High demand for the
phone following its midnight launch on 14 May caused the Flipkart website to crash. Flipkart
subsequently held exclusive Indian launches for other smart phones, including the Xiaomi Mi
3 in July 2014 (whose initial release of 10,000 devices sold out in around 5
seconds), the Redmi1S and Redmi Note in late 2014, and Micromax's Yu Yunique 2 in 2017.
Flipkart held a 51% share of all Indian Smartphone shipments in 2017, overtaking Amazon
India (33%).
On 6 October 2014, in honour of the company's anniversary and the Diwali season, Flipkart
held a major sale that it promoted as "Big Billion Day". The event generated a surge of
traffic, selling $100 million worth of goods in 10 hours. The event received criticism
via social media over technical issues the site experienced during the event and stock
shortages.
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In October 2015, Flipkart reprised the Big Billion Day event as a multi-day event exclusive to
the Flipkart app. Flipkart bolstered its supply chain and introduced more fulfilment centres to
meet customer demand. Flipkart achieved a gross merchandise volume of $300 million
during the event, with the largest volumes coming from fashion sales and the largest value
coming from mobiles. In 2017, Flipkart sold 1.3 million phones in 20 hours on 21 September
in its Big Billion Days promotion, doubling the number sold on the first day of the same
event in 2016.
In March 2015, Flipkart blocked access to its website on mobile devices and began requiring
that users download the site's mobile app instead. The following month, Myntra went further
and discontinued its website on all platforms, operating exclusively through its app. The
"app-only" model, however, proved to be unsuccessful for Myntra, reducing its sales by 10%,
and its main website was reinstated in February 2016. The experiment with Myntra led to
rumours that Flipkart itself would perform a similar move, but the company did not follow
suit. In November 2015, Flipkart launched a new mobile website branded as "Flipkart Lite"
that provides an experience inspired by Flipkart's app and runs in Smartphone web browsers.
ACQUSITION BY WAL-MART:
On 4 May 2018, it was reported that the US retail chain Wal-Mart had won a bidding war
with Amazon to acquire a majority stake in Flipkart for $15 billion. On 9 May 2018, Wal-
Mart officially announced its intent to acquire a 77% controlling stake in Flipkart for
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$16 billion. Following the purchase, Flipkart co-founder Sachin Bansal left the company. The
remaining management team now reports to Marc Lore, CEO of Wal-Mart ecommerce
US. Wal-Mart president Doug McMillan cited the "attractiveness" of the market, explaining
that their purchase "is an opportunity to partner with the company that is leading
transformation of ecommerce in the market". Indian traders protested against the deal,
considering the deal a threat to domestic business.
In a filing with the U.S. Securities and Exchange Commission on 11 May 2018, Wal-Mart
stated that a condition of the deal prescribed the possibility that Flipkart's current minority
shareholders "may require Flipkart to effect an initial public offering following the fourth
anniversary of the closing of the transactions at a valuation no less than that paid by Wal-
Mart".
Following the announcement of Wal-Mart’s deal, eBay announced that it would sell its stake
in Flipkart back to the company for approximately $1.1 billion and re-launch its own Indian
operations. The company stated that "there is the huge growth potential for e-commerce in
India and significant opportunity for multiple players to succeed in India's diverse, domestic
market." Softbank Group also sold its entire 20% stake to Wal-Mart without disclosing terms
of the sale.
The acquisition was completed on 18 August 2018. Wal-Mart also provided $2 billion in
equity funding to the company. On 13 November 2018, Flipkart CEO Binny Bansal resigned
after facing an allegation of "serious personal misconduct". Wal-Mart stated that "while the
investigation did not find evidence to corroborate the complainant's assertions against Binny,
it did reveal other lapses in judgment, particularly a lack of transparency, related to how
Binny responded to the situation."
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This was not an overnight success story. A lot of hard work was put into it. Today I’ll take
a look at the marketing strategy that made this company such a success!
Let’s talk about Flipkart’s broad marketing strategy. On the face of it, their main
principle seems to be focused on being present at every single touch point their
customers are present at. Today this means using the majority of their budget on
digital channels and marketing. Moreover, since India is a mobile-first country, this
is most definitely paying off.
Flipkart also invests heavily in star power and influencer marketing. India loves
Bollywood and Flipkart uses this to sell and raise awareness about their products.
Ranbir Kapoor, Alia Bhatt, Amitabh Bachchan and Shraddha Kapoor have all been
prominently featured in Flipkart TV ads and in their online campaigns. This shows
that Flipkart not only has deep pockets, but also has an eye on the pulse of the
market.
In recent years, Flipkart has increased its budget spend on digital marketing
considerably. Earlier, they were spending crores in multichannel marketing
campaigns that resulted in a large amount of cash burn. Since Kalyan
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Krishnamurthy took over Flipkart in 2017, there has been a large-scale revamp of its
marketing strategy - it’s become leaner and heavily based on digital, which has
worked out well for them.
A study published in live mint in 2017 outlines the very beginning of the
transformation wherein potential customers showed a greater awareness of
Flipkart’s Big Billion Day sale as compared to other retailers.
Flipkart uses psychographic and behavioural concerns to create strategies and to fulfil
the customers’ wants and needs. With a change in the pattern of shopping and rise in
per capita income, the customers are getting comfortable purchasing online and are
also becoming familiar with online shopping.
Flipkart has proved itself customer friendly and a trustworthy E-commerce brand.
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.
Of course, this investment in digital channels hasn’t stopped Flipkart from working
with celebrities and influencers extensively. Flipkart relies heavily on influencer
marketing and influencers to spread the word about their campaigns. The best part
about this is that the message can be utilized both online and offline - making way
for them to use it both for TV spots/billboards, as well as advertising online.
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FLIPKART’S PIVOT FROM ELECTRONICS TO FASHION:
Flipkart had a very successful run in India till 2015. There were some glitches after
this, when Amazon and other e-commerce giants got a taste of Flipkart’s market
share, but India’s original e-commerce giant quickly pivoted in response. Initially,
Flipkart was known to be an electronics hub. If you needed a new phone or kitchen
appliance, you went on Flipkart.com to check out the latest deals. Today, Flipkart
resonates with the Indian audience as a seller of everything from groceries to
fashion. This is largely due to their marketing efforts. Flipkart started a targeted
marketing campaign for the fashion segment called “India ka Fashion Capital”,
focused on videos featuring celebrities. These videos were used for TV spots as well
as YouTube in order to maximize reach. Within just ten days, they were able to
garner 100M views on YouTube.
Google was also able to measure the impact of digital vs. traditional media
strategies, which made it clear that the brand had made a good bet by going all out
on digital platforms. This was one of many campaigns aimed at raising awareness
of Flipkart’s fashion and apparel selection which has made a big impact. This
combined with the previous research done on the audience’s awareness of
Flipkart’s sales shows that it really does pay to be present at all the touch points -
especially on digital.
COMPETITORS OF FLIPKART:
✓ Amazon is arguably the world’s largest online shopping store. It offers a wide array
of services including online retail, consumer electronics, multimedia content and
computing services among others. It is ranked as the leading online retailer in the US
generating an estimated net sale of close to $140 billion in 2016.
✓ Snapdeal is another Indian based e-commerce company that offers online retail
services. It was founded in 2010 but has risen to become one of the biggest e-retailers
in India. It serves a significant number of sellers and consumers of different products
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from different location all over the country. It has a broader assortment of products
estimated to be over 35 million obtained from more than 125,000 retailers and brands,
both local and international.
✓ Alibaba is another giant company that offers online commerce services. It was
founded in 1999 as a simple B2B online shopping portal but later grew to become the
biggest e-commerce portal in Asia offering B2B, C2C, and B2C online services. The
total revenue that this company generated in 2017 financial is estimated to be around
158.3 bn RMB, an equivalent of over $24 billion.
✓ Myntra is a part of Flipkart but is a competitor of the online portal where fashion is
concerned. Myntra is an Indian-based online marketplace for a wide range of fashion
items. It was founded in 2007 with the primary aim of customizing different types of
gift items, especially that are related to fashion. Later on in about three years Myntra
chose to shift focus and started to sell branded apparels. Amazon entered the
Indian market in mid-2013, and it provided stiff competition to local online retailers.
✓ Jabong too was purchased by Flipkart and is an online competitor to the fashion
segment of Flipkart. Jabong is also an Indian-based company that provides e-retailing
services. It specializes in selling fashion items including footwear, trousers, shirts,
dresses and a many more. Jabong provides fashion products for children, men, and
women thus making it easy for shoppers to do family shopping all at once.
✓ Shopclues is an online platform that offers consumers with the opportunity to shop
and make payments for different types of products. It was founded in 2011, but it has
improved its services and brand visibility to become among the highly regarded
25
online marketplaces in India. It deals explicitly with home appliances, kitchen wares,
electronics and fashion products that are owned by local and regional brands.
✓ There are many stores which are focused on a single strategy called Focus online
stores which are direct Flipkart competitors. Some of them include the likes of
Industry buying (industrial material) or homeshop18 (home appliances). Such focused
online stores take away the market share of such products from the massive online
portals like Flipkart. Although they are small in size, the focused approach helps in
turnover for these portals.
SWOT analysis of Flipkart analyses the brand/company with its strengths, weaknesses,
opportunities & threats. In Flipkart SWOT Analysis, the strengths and weaknesses are the
internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Flipkart to
benchmark its business & performance as compared to the competitors and industry. Flipkart
is one of the leading brands in the IT & Technology sector. Flipkart has been one of the
leading e-commerce giants. The Swot Analysis - Using Strength to Overcome Weaknesses
and Using Opportunities to Overcome Threats.
STRENGTHS OF FLIPKART:
26
❖ 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 localize its offerings.
WEAKNESS 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 R.s 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 OF FLIPKART:
27
❖ 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 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.
28
FLIPKART CAPAIGN:
The entry of Amazon in India, affected Flipkart to renovate and expand its business to face
the competition and to sustain its market size. Flipkart’s future prospect is to increase the size
of its business operations. It had planned to get 10- 12000 sellers under them in few years. By
acquiring Myntra, Flipkart owns 50% of market in lifestyle in India and it is planning to
increase it to 70%. Now it has more than 10000 sellers and its need to increase it to 10000-
15000 within a year and too few lakhs in 4-5 years. 40% of online traffic of Flipkart’s coming
29
from mobiles. Hence it is planning to add some more specifications and feature for mobile
shopping app to increase buyer’s satisfaction and loyalty.
Flipkart is trying to improve its IT infrastructure as e-business is mainly depends on
technology. It is planning to customise its IT framework to perform 2 functionalities, one is
ability to guide, motivate, influence the customers what other product can be purchased
complement a product that already purchased from Flipkart and other one is to conduct live
survey to find the customer buying pattern and preferences.
Flipkart is also planning to have its own logistics to reduce its cost and dependability on
others. It launched its own digital accessories brand Dig flip and its clothing brand Flipped
and to analyse how it performs in the market. Flipkart is planning to get access to more
number sub urban, and towns, cities for this it is increasing its warehouse and increased
automation in its supply chain management. Flipkart also want to increase its variety of
categories of products in its domain and fill the gap in existing category.
The COVID crisis in India this year has resulted in many brands stepping up in the
country’s hour of need. Flipkart, being a giant was no exception to this, despite being
heavily restricted by law to keep their business from running during this time.
30
FOR FRONTLINE WORKERS AND CONSUMERS:
Together with parent company Wal-Mart, Flipkart announced that it would donate INR
46 Cr worth of medical supplies to support the fight against corona virus in India. This
includes the donation of protective equipment such as N95 masks and medical gowns, and
equipment to NGOs and those working in the frontlines. Additionally, Wal-Mart is
donating 7.7 Cr to NGOs - Goonj and Srijan in India, which will be used to collect food,
medicines and other equipment for distribution.
Additionally, Flipkart also partnered with Tata Consumer Products so as to ensure a greater
supply of essential food and grocery items for their customers.
Flipkart #Smart Buy also launched hand sanitizers and surgical masks in April, to fight the
shortage. Not only that, Flipkart also joined forces with Uber and Meru Cabs in India, to
deliver essential items to consumers in Delhi, Bangalore and Mumbai.
Flipkart has stepped up the medical cover they provide for those working in their supply
chain network - including local stores, as well as individuals. Their insurance provides
protection against lost income during the COVID crisis as well as medical insurance for
outpatient care, consultation and pharmacy requirements.
Flipkart made sure to take care of the ecosystem that drives their main business. This, of
course, is something that will help them win big in the long run, and bounce back once the
economy recovers from the crisis.
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CHAPTER 4
From the above table we can see that out of 100 respondents 56% were between 18-25 years
of age, around 30% were among 25-40 years; exactly 10% were among 40-50 years and
around 7% above 50 years. Therefore, we can interpret that the more number of respondents
for this survey were between 18-25 years and the Second highest number of respondents fall
between the ages 25-40 years.
AGE OF RESPONDENTS
56%
60%
50%
40%
27%
30%
PERCENTAGE
20%
10% 7%
10%
0%
18 - 25 25 - 40 40 - 50 Above 50
32
4.2 TABLE SHOWING THE GENDER OF RESPONDENTS:
Referring to the above table we can analyse that out of 100 respondents 62% of respondents
are Female and remaining 38% respondents are Male. So majority of the respondents are
Female.
GENDER OF RESPONDENTS
62%
70%
60%
50%
38%
40%
30% PERCENTAGE
20%
10%
0
0%
Male Female Others
33
4.3 TABLE SHOWING THE MARITAL STATUS OF RESPONDENTS:
From the given table, we can easily know that out of 100 respondents 56% of respondents are
unmarried and the remaining 44% are married. Therefore majority of the respondents are
Female.
MARITAL STATUS
44% Married
56% Unmarried
34
4.4 TABLE SHOWING THE PROFESSION OF RESPONDENTS:
From the given table, we can know that 56% said student, exactly 20% were salaried persons,
around 17% were self-employed (businessman, professionals) and about 7% were retired or who
stays at home. We can interpret that the majority of respondents are Students and the next is
salaried persons who are getting fixed salary with or without incentives.
PROFESSION OF RESPONDENTS
60%
50%
56%
40%
30%
20% PERCENTAGE
10%
20% 17%
7%
0%
Student Salaried Self - Retired or
Employed Staying in
home
35
4.5 TABLE SHOWING THE QUALIFICATION OF RESPONDENTS:
From the mentioned table we can see that out of 100 respondent’s majority of the respondents
have done their UG that is 48%, around 33% of respondents have completed their PG, exactly
10% has completed their schooling and around 9% has opted for others. We can interpret that
most of the respondents have qualified UG; therefore UG qualified persons play a majority role
in this research.
QUALIFICATION OF RESPONDENTS
9% 10%
33% School
48% UG
PG
Others
36
4.6 TABLE SHOWING THE MONTHLY INCOME OF
RESPONDENTS:
From the above given table, we can see that out of 100 respondent’s Most of respondents are
come under salary range 15000-30000 that is around 43%, and around 13% of respondents
are earning below 15000, around 24% of respondents are earning 30000-50000 salary, around
4% of respondents are earning above 25000 and around 16% of respondents do not earn
income. So, in this research more number of respondent’s earning is 15000-30000.
None 16%
Above 50000 4%
37
4.7 TABLE SHOWING WHETHER THE RESPODENTS ARE AWARE
OF FLIPKART- AN ECOMMERCE WEBSITE:
From the above table, out of 100 respondents, majority of respondents that is 94% are aware
of Flipkart and 6% are not aware of Flipkart.
AWARENESS OF FLIPKART
100%
80% 94%
60%
40% PERCENTAGE
20%
0% 6%
Yes
No
38
4.8 TABLE SHOWING THE MODE OF SHOPPING:
From given table we can see that 66% of respondents prefer online shopping and 34%
respondents prefer physical purchase. So we can understand that majority of respondents
prefer online shopping.
MODE OF SHOPPING OF
RESPONDENTS
70%
66%
60%
50%
40%
34% PERCENTAGE
30%
20%
10%
0%
Online Purchases Physical Stores
39
4.9 TABLE SHOWING ALONG WITH WHOM RESPODENTS SHOP:
The above graph shows along with whom they purchase most, in that 32% of people
purchases alone, 46% of them purchases by discussing with friends, 12% of them purchases
with suggestions of their family and only 10% of them purchases others influence. So, most
of the respondents purchase with their friends.
RELATIONSHIPS
50%
45%
40%
35%
30%
25%
46% PERCENTAGE
20%
15% 32%
10%
12%
5% 10%
0%
Family Friends Alone Others
40
4.10 TABLE SHOWING HOW RESPONDENTS SHOPS ONLINE:
Above table shows that 35% of respondents visit once in 2 months, 19% visit once in 3 – 6
months, 23% of respondents visit once in 7 – 12 months and around 18% of respondents visit
more than once in a year. 5% of the respondents never visited Flipkart. We can interpret that
once in 2 months visitors are more when compared to that of several monthly visitors.
5%
19%
41
4.11 TABLE SHOWING THE FEATURES THAT RESPONDENTS
LIKE IN FLIPKART:
From the given table, out of 100 respondents 38% of them likes COD, around 23% of
respondents likes discounts, around 15% likes the delivery timing, 11% likes the customer
services provided by Flipkart, around 7% likes the Exchange Offer, 4% likes Packaging and 2%
opted for Nil. We can interpret that most of the respondents like COD feature that is Cash On
Delivery.
FEATURES IN FLPKART
Nil
Packaging
Exchange Offer
Cash On Delivery
PERCENTAGE
Delivery Time
Customer Service
Discounts
42
4.12 TABLE SHOWING THE FEATURES THAT RESPONDENTS
DISLIKE IN FLIPKART:
Above table shows the dislike thing in Flipkart majority of them dislikes the delivery
charges for the purchase under 300 that is 31%, around 22% of them are not having any
complaints, around 18% of respondents have opted for less discounts, around 6% dislikes
Flipkart because of delayed delivery and 12% have opted for other features.
43
4.13 TABLE SHOWING THE REASON FOR ONLINE SHOPPING:
From the above given table, out of 100 respondents 37% choose Flipkart for Convenience,
around 28% choose for Wide Collections, around 17% choose for discounts, exactly 15%
choose Flipkart for Unavailability of stores nearby and 3% do not Shop Online. We can
understand that majority of respondents choose Flipkart for Convenience.
3% Convenience
15%
37% Wide Collections
Discounts
17%
Unavailability of Stores
Nearby
44
4.14 TABLE SHOWING PREFERENCE OF ONLINE SHOPPING:
From the above table out of 100 respondents 31% prefer Flipkart, 11% prefer Snapdeal,
exactly 40% of respondents prefer Amazon, around 1% prefer Fashionandyou, 6% prefer
eBay, 9% prefer Shopclues and around 2% has opted for others. We can interpret that most
of the respondents prefer Amazon.
45
4.15 TABLE SHOWING RESPONDENTS EXPERIENCE ON THESE
SITES AS COMPARED TO FLIPKART:
From the given table out of 100 respondents, 20% has chosen better, around 15% has
chosen equal, around 28% has chosen poor and around 31% has opted for not applicable.
So majority has opted for not applicable.
25%
20% 21%
20%
15% PERCENTAGE
10%
5%
0%
Better Equal Poor Not
Applicable
46
4.16 TABLE SHOWING THE REASONS FOR SHOPPING IN
FLIPKART:
The given table shows that many people are attracted towards Flipkart because of its offers
(discounts) that is 22%, around 12% for home delivery, around 17% for Quality products
provided by Flipkart, around 19% for easy availability of instalment and around 10% for
wide range of products availability which helps the customers to choose the product, around
5% for assurance and 15% for returns or exchange facilities available in Flipkart.
15%
22% Offers
Home Delivery
5%
Quality of Products
10% Instalment
12%
Wide Choice of Products
Assurance
19% Returns or Exchanges
17%
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.4.17 TABLE SHOWING THE FREQUENCY OF VISIT TO FLIPKART:
Above table shows that 23% of respondents visit daily, 33% visit weekly, 21% of
respondents visit monthly,18% of respondents visit rarely and 5% of the respondents never
visit Flipkart. From this we can see that weekly visitors are more than daily so it should
concentrate on making them to visit daily.
Never 5%
Rarely 18%
Monthly 21%
Percentage
Weekly 33%
Daily 23%
48
4.18 TABLE SHOWING HOW RESPONDENTS ARE AWARE OF
FLIPKART:
Above table shows that about 38% of people are aware of Flipkart through various
advertisement shown in TV. About 32% of people know Flipkart through internet, exactly
10 % of people through magazine or newspaper and around 17% through other sources. Still
3% people are not aware of Flipkart. Most of the respondents are aware of Flipkart trough
Television.
AWARENESS OF FLIPKART
40% 38%
35% 32%
30%
25%
20% 17%
15% Percentage
10%
10%
5% 3%
0%
Television Internet Newspaper Other Unknown
or
Magazine
49
.4.19 TABLE SHOWING THE MODE OF PAYMENT USED TO
PURCHASE ON FLIPKART:
Above table shows that around 21% payments done through credit card, around 19% through
payment apps, 22% through debit card, but more number of payments that is 29% is done
through cash on delivery. Whereas payment through net banking is very less that is 9%.
MODE OF PAYMENT
35%
29%
30%
15% Percentage
9%
10%
5%
0%
Payment Credit Card Debit Card Net Cash On
Apps Banking Delivery
50
4.20 TABLE SHOWING THE DIFFICULTY LEVEL OF PURCHASE IN
FLIPKART:
From the above table shows that around 36% customers find it is easy to shop through
Flipkart, around 12% of them are found very easy. And about 9% of them are found very
difficult and 18% of them find difficult, exactly 25% of them found it moderate. Therefore
most of the respondents find it easy.
3 Difficulty Level
5 Percentage
2 4
3
1 2
1 36% 25% 18% 9%
12%
0
1 2 3 4 5
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4.21 TABLE SHOWING THE BUYING PREFERENCE IN FLIPKART:
Above table shows that out of 100 respondents, 25% that is majority of customers purchases
electronics items, about 22% of them purchased Fancy items, 10% of them purchases
stationery, 12% of them purchases Home appliances and Furniture, 5% of them purchases
beauty & health care, 6% of them purchases music, movies & posters, while 12% of them
purchases home appliances or furniture and around 4% of respondents have never shopped in
Flipkart.
Percentage
4%
Books
12% 16%
Electronics
Fancy Items
6%
Stationery
5%
25% Beauty & Health care
10% Music, Movies & Posters
Home Appliances or Furniture
22% I Have Never Shopped in Flipkart
52
4.22 TABLE SHOWING THE HIGHEST AMOUNT SPENT IN
FLIPKART:
The above table shows that out of 100 respondents 36% of customers purchases amount
ranging from 1000-5000, around 23% of them purchases amount ranging from 5000-10000,
exactly 25% of respondents purchase amount is below 1000 and 16% of respondents
purchasing amount is above 10000. We can interpret that most of the respondents spent 1000-
5000 in Flipkart.
40%
30%
20% 36%
25%
10% 23% Percentage
0% 16%
Below Percentage
1000 -
1000 5000 –
5000 Above
10000
10000
53
4.23 TABLE SHOWING SATISFACTION LEVEL OF FLIPKARTS
DELIVERY:
Above table shows that 15% of respondents are highly satisfied; around 45% of respondents
are satisfied with Flipkart’s delivery, 25% has chosen neither satisfied nor dissatisfied, 11%
has opted for dissatisfied and only 4% of the respondents are highly dissatisfied. Most of the
respondents feel Flipkart delivery as satisfied.
SATISFACTION LEVEL
Highly dissatisfied 4%
Dissatisfied 11%
Satisfied 45%
54
4.24 TABLE SHOWING THE REASONS WHICH DETER FROM
ONLINE SHOPPING:
From the above table, 32% feels insecure in payment, exactly 40% concerns regarding the
quality of product, around 20% of respondents love shopping outdoors and 8% have chosen I
do not shop online. Most of the respondents concern regarding the quality of product.
55
4.25 TABLE SHOWING THE SAFETY OF SHOPPING THROUGH
FLIPKART:
From the given table, about 68% that is majority of people feels that shopping in Flipkart is
safe where as 32% of them feels unsafe.
SAFETY OF SHOPPING
80%
70%
68%
60%
50%
40%
Percentage
30% 32%
20%
10%
0%
Yes No
56
CHAPTER – 5
FINDINGS:
57
SUGGESTIONS:
Company should concentrate more on the following factors to improve its sustainability and
market share.
Flipkart must concentrate on attracting customers towards Beauty & Health Care,
Movies, Music and posters.
Can include more coupon codes and gift vouchers for increasing the traffic of the
customers.
More number of respondents are aware of Flipkart by watching advertisements in TV,
so Flipkart should concentrate since advertisements through television is effective.
Flipkart should make simpler policies for exchange/return of the products.
Flipkart should provide some special discounts/offers for those who purchases
regularly.
Flipkart has successfully placed itself into the prospects mind making it the India’s
largest online store with huge range of products. But it still needs to work on their
core competence that is books and stationery items.
In Flipkart weekly visitors are more when compared to that of monthly and daily
visitors so, Fipkart should convert them into regular (daily) visitors.
Should frame strategies to overcome the competition from Amazon.
Logistics and supply chain can continuously aim to reduce the delivery time cycle.
Quick conveys ought to be made.
Flipkart should concentrate on minimising the delivery charges or look for the
alternative.
Flipkart should extend its products variety to attract more customers.
Should provide some extra offers and complimentary goods to attract people to do
online payment.
Flipkart needs to give bonus points for those who give the feedback of their purchase.
58
CONCLUSION:
Now people are getting knowledge about the online shopping as resulting to this E-commerce
growing rapidly. The organization focuses on stocking the items to its buyers required, and
also offering effective comparison between the products. Flipkart gives the suggestions and
guidelines for the right choice of the product. It has successfully figured out how to remain in
front of the opposition. It is performing well; the number of customers is increasing day by
day. Nevertheless, company has to take some steps to improve the quality of the Products and
Company should promote their brand through more advertisements for a better growth of the
company in India and to compete with big brands like Amazon. Our findings will give a clear
and wide picture to online retailers and will help them understand the specific factors that
influence consumers and the marketing strategy to shop online, so they can build up their
strategies to cater the need of online shoppers.
59
BIBILOGRAPHY:
60
QUESTIONIER ON FLIPKART
61
6) What is your monthly income?
Below 15000
15000-30000
30000-50000
Above 50000
None
63
16) What is the reason for shopping in Flipkart?
Offers
Home delivery
Quality of product
Instalment
Wide choice of products
Assurance
Returns or exchange
24) What are the reasons that deter you from online shopping?
Insecure about paying online
Concern regarding the quality of products
I love shopping outdoors
I do not shop online