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STUDY ON CUSTOMER EXPECTATION FROM ON-LINE MARKETING WITH

RESPECT TO FLIPKART.COM

A PROJECT REPORT ON

“A STUDY ON CUSTOMER EXPECTATION


FROM ON-LINE MARKETING WITH
RESPECT TO FLIPKART.COM”
SUBMITTED TO
ALL INDIA MANAGEMENT ASSOCIATION

CENTRE FOR MANAGEMENT EDUCATION


MANAGEMENT HOUSE, 14 INSTITUTIONAL AREA,
LODHI ROAD, NEW DELHI-110003
JUNE 2014
By

RAJAT BARANWAL
REGISTRATION NO . B11220389

Guided By

Prof. Niharika Mishra


Asst. Professor
M S Ramaiah Management Institute

For the partial fulfillment of

Post Graduate Diploma in Management

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ACKNOWLEDGEMENT

This project work has undertaken by me as a part of the


curriculum and towards partial fulfillment of the
requirement of my Post Graduate Diploma in
Management.

First and foremost, I would like to show my gratitude


towards M.S.Ramaiah Management Institute for
providing me the opportunity to undertake the
dissertation.

I wish to express a deep sense of gratitude to my project


guide Prof. Niharika Mishra, who has provided me
constant support and guidance during the entire
project. Her inspiration and motivation has helped me
immensely in the completion of this project.

I also take this opportunity to express special thanks to


AIMA – CME for providing the platform to get the correct
exposure to learn from the practical work.

RajatBaranwal
AIMA (M.S.Ramaiah Management Institute)
Bangalore

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APPROVAL SHEET

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Chapter no. Particular Page No.


Execute Summary 6
1 Industry Analysis

1.1-Over View about E-Commerce 8-10


1.2-Timeline of E-Commerce 11-13

1.3-E-commerce Industry (Indian) 14

1.4-Top 10 Indian E-Commerce Player’s 15


1.5-E-commerce Industry (Global) 16-24

1.6-P’s Of E-Commerce 25

2 Company Analysis
2.1-Profile of Flipkart.com 27-30

2.2-History & Acquisition 31-32

2.3-Location of Flipkart.com 33
2.4-Product offered by Flipkart.com 34-37

2.5-Flipkart.com Big Billion Day 38-42

2.5-Payment model of Flipkart.com 43-50


2.6-Marketing Strategy 51

2.7-Organizational Structure 52

2.8-SWOT Analysis 53
3 Discussion on Training

3.1-Objective of my Job 55
3.2-Role & Responsibility 56
3.3-Description of Live Experience 56

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Chapter no. Particular Page No.


4 Analysis of Task
4.1- Introduction 58
4.2- Statement of the Problem 58
4.3- Scope of the Study 58
4.4- Methodology 58
4.5- Objective of the Problem 59
4.6- Sample Designed 59
4.7- Source of Data
4.7.1-Primary Data 59
4.7.2-Secondary Data 60
4.8- Plan of Analysis 60
4.9-Limitation of Study 60
Data Analysis 61-79
Finding 80
Suggestion 81
Conclusion 81

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EXECUTIVE SUMMARY

The project was done at Flipkart, Bangalore with the special focus on “Customer
expectation”. This project is about the Customer Expectation from On-Line marketing.
This study is about the analysis of thecustomer expectation which they want from on-
line marketing. The company’s strategy including its competitors and Internet marketing
will be analysed. The focus throughout the study is on understanding the market from
various perspectives. Various dimensions have been mentioned in this project regarding
effectiveness of internet marketing.

Flipkart is an ideal company for analysis because of its unique and innovative approach to
business. The business model of the company is indeed one of itskind in the Internet market
segment and this study analyses the market. As Flipkart various products and sellers, it’s a
huge task to set different strategies for different products for different sellers during
different time periods. The study is divided into separate parts with the first introduction
about industry and company and the rest of the part is concerned with the study on
effectiveness of marketing techniques followed by the online shopping mart and concluded
that the use of these marketing techniques by Flipkart.com has made the online shopping
process very simple and has attracted many new customers.

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CHAPTER-1

INDUSTRY-ANALYSIS

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OVER VIEW ABOUT E-COMMERCE

Full form of E-commerce is electronic commerce. In its simplest form, electronic


commerce means that business transactions are being handled electronically.

In a more elaborate definition of concept there is a game of one upmanship to see who can
create the quickest, highest quality and the most exiting venture of conduction business. In
fact major growth in electronic commerce is and will be in business to business electronic
process.

There are many E-commerce sites which are the medium of communication to perform the
business. These websites are called custom developed software. These sites of software are
dived into three parts-storefront, the manager, and logistics. The storefront what is a visitor
to the sites gets to see. Logistics deals with consolidating the individual orders, tracking
delivery and so on. The manager mangers the whole package including MIS.

Orders placed during the day get consolidated at one place-the logistics module of the
software. This is currently processed two to three times a day. Orders get consolidated
according to vendor or distributor from whom the material is picked up. Logistic
operator, who picks up the ordered items in bulk form the respective vendor's godowns,
also receives the order statement along with the packing list for individual orders. He then
breaks the lot up and makes packages according to each individual order.Blue dart picks up
the packages each day at 8 p.m. for delivery.

There are four functions of E-commerce. They are:

 Communication

 Process Management

 Service Management

 Transaction Capabilities

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The communication function is basically the delivery of information and or documents to


facilitate business transaction. Email is an example. The process managementincludes
process improvement functions, which covers the automation and improvement of
business processes networking two computers together so that they could share and
transfer data rather than have a person to take data from one machine to another.
service management is the application of technology to improve the quality of service
federal express website is an example of service management. It permits customers to
track shipments and schedule pick-ups 24 hours a day world-wide without having to talk to
a customer service representative.

There are three types of E-commerce. They are inter-organizational intra-organizational and
retail. Inter-organization electronics commerce is between different business entities. It
could be on the Ethernet or an extranet which just lets a selected few participate intra-
organizational electronic commerce occurs within a business entity. The goal is to link the
constituents together and increase the flow of information within the organization. Retail
electronic commerce as the name implies, is directed at the consumer. It can be used for any
business to consumer interaction.

Electronic commerce, commonly known as ecommerce, is a type of industry where buying


and selling of product or service is conducted over electronic systems such as the Internet
and other computer networks. Electronic commerce draws on technologies such as mobile
commerce, electronic funds transfer, supply chain management, Internet marketing, online
transaction processing, electronic data interchange (EDI), inventory management systems,
and automated data collectionsystems. Modern electronic commerce typically uses
the World Wide Web at least at one point in the transaction's life-cycle, although it may
encompass a wider range of technologies such as e-mail, mobile devices social media, and
telephones as well.

Electronic commerce is generally considered to be the sales aspect of e-business. It also


consists of the exchange of data to facilitate the financing and payment aspects of business
transactions.

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E-commerce can be divided into:

 E-tailing or "virtual storefronts" on websites with online catalogs, sometimes gathered


into a "virtual mall"
 The gathering and use of demographic data through Web contacts and social media
 Electronic Data Interchange (EDI), the business-to-business exchange of data
 E-mail and fax and their use as media for reaching prospective and established
customers (for example, with newsletters)
 Business-to-business buying and selling
 The security of business transactions

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A TIMELINE FOR THE DEVELOPMENT OF E-COMMERCE

 1979: Michael Aldrich invented online shopping


 1982: Minitel was introduced nationwide in France by France Telecom and used for
online ordering.
 1983: California State Assembly holds first hearing on "electronic commerce" in
Volcano, California. Testifying are CPUC, MCI Mail, Prodigy, CompuServe, Volcano
Telephone, and Pacific Telesis. (Not permitted to testify is Quantum Technology, later
to become AOL.)
 1984: Gateshead SIS/Tesco is first B2C online shopping and Mrs Snowball, 72, is the
first online home shopper
 1984: In April 1984, CompuServe launches the Electronic Mall in the USA and
Canada. It is the first comprehensive electronic commerce service.
 1984: California becomes first state to enact an Electronic Commerce Act defining
basic consumer rights online.
 1990: Tim Berners-Lee writes the first web browser, WorldWideWeb, using
a NeXT computer.
 1992: St. Martin's Press publishes J.H. Snider and Terra Ziporyn's Future Shop: How
New Technologies Will Change the Way We Shop and What We Buy.
 1992: Terry Brownell launches first fully graphical, iconic navigated Bulletin board
system online shopping using RoboBOARD/FX.
 1994: Netscape releases the Navigator browser in October under the code
name Mozilla. Pizza Hut offers online ordering on its Web page. The first online
bank opens. Attempts to offer flower delivery and magazine subscriptions
online. Adult materials also become commercially available, as do cars and
bikes. Netscape 1.0 is introduced in late 1994 SSL encryption that made transactions
secure.
 1995: Thursday 27 April 1995, the purchase of a book by Paul Stanfield, Product
Manager for CompuServe UK, from W H Smith's shop within CompuServe's UK
Shopping Centre is the UK's first national online shopping service secure transaction.

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 1995: Jeff Bezos launches Amazon.com and the first commercial-free 24 hour, internet-
only radio stations, Radio HK and NetRadio start broadcasting. Dell and Cisco begin to
aggressively use Internet for commercial transactions. eBay is founded by computer
programmer Pierre Omidyar as AuctionWeb.
 1996: IndiaMART B2B marketplace established in India.
 1998: Electronic postal stamps can be purchased and downloaded for printing from the
Web.
 1999: Alibaba Group is established in China. Business.com sold for US $7.5 million to
eCompanies, which was purchased in 1997 for US $149,000. The peer-to-peer
filesharing software Napster launches.ATG Stores launches to sell decorative items for
the home online.
 2000: The dot-com bust.
 2001: Alibaba.com achieved profitability in December 2001.
 2003: Amazon.com posts first yearly profit.
 2004: DHgate.com, China's first online b2b transaction platform, is established, forcing
other b2b sites to move away from the "yellow pages" model.
 2005: Yuval Tal founds Payoneer - a secure online payment distribution solution.
 2007: Business.com acquired by R.H. Donnelley for $345 million.
 2009: Zappos.com acquired by Amazon.com for $928 million. Retail Convergence,
operator of private sale website RueLaLa.com, acquired by GSI Commerce for $180
million, plus up to $170 million in earn-out payments based on performance through
2012.
 2010: Groupon reportedly rejects a $6 billion offer from Google. Instead, the group
buying websites went ahead with an IPO on November 4, 2011. It was the largest IPO
since Google.
 2011: Quidsi.com, parent company of Diapers.com, acquired by Amazon.com for $500
million in cash plus $45 million in debt and other obligations. GSI Commerce, a
company specializing in creating, developing and running online shopping sites
for brick and mortar businesses, acquired by eBay for $2.4 billion.
 2012: US eCommerce and Online Retail sales projected to reach $226 billion, an
increase of 12 percent over 2011.

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Some common applications related to electronic commerce are the


following:

 Document automation in supply chain and logistics


 Domestic and international payment systems
 Enterprise content management
 Group buying
 Automated online assistants
 Instant messaging
 Newsgroups
 Online shopping and order tracking
 Online banking
 Online office suites
 Shopping cart software
 Teleconferencing
 Electronic tickets
Components of E-Commerce Market-2013

Figure 1: Aranca Research, IBEF Report, 2013

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E-COMMERCE INDUSTRY-INDIAN SCENARIO

In the second half of 2013 when India’s 100 millionth internet user logged on and the
number of mobile phone users crossed 600 million, it became clear that the foundation for
an e-commerce revolution had been laid.

The internet has already charging the way connected Indians shop online. Not only opening
up a new world of lower prices and choices but it has also emerged as wealth-creating for
many online entrepreneurs. Many e-commerce companies which were started in the early of
evolution of e-commerce in India haven’t seen more profits, but as the internet user base
being increasing day by day they are seeing a double digit growth. Many ecommerce
portals mainly in retail domain are experiencing phenomenal growth with online
transactions growing by leaps and bounds every month.

Key drivers for this kind of growth are:

1. Increase in number of online sites and also with increase in number of online buyers
and sellers
2. Change in life Style and not finding time to shop offline
3. Availability of wide range of products when compared to brick and mortar Retailers
4. Increase in middle class groups and with high disposable incomes
5. Evolution of online market places with many ecommerce portals

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TOP 10 INDIAN E-COMMERCE PLAYERS

 Flipkart.com
 Snapdeal.com
 Fashionandyou.com
 Inkfruit.com
 Dealsandyou.com
 Homeshop18.com
 Indiangiftportal.com
 Yebhi.com
 Caratlane.com

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GLOBAL SCENARIO

When we consider the impact of ecommerce on the global economy it is said to be very
influential. E-commerce has been radical effect on the business that are located all over the
world. It is more powerful than the traditional resources that were adopted by businesses all
over the world. With the aid of ecommerce it is possible for people to shop online from
their comforts of their home irrespective of their geographical location. Ecommerce has
been able to remove the geographical barriers successfully and helped customers to come in
contact with vendors without hassles.

The impact of ecommerce is one that has bought in a drastic change in the traditional
market. It is one that has been welcomed with open arms as it has clicked immensely for
many businesses and now most of the businesses who are not present on ecommerce cannot
exist. Because of ecommerce many small businesses have been benefited as they no longer
require having physical offices to cater to the people of particular geographic location. The
target audiences are also getting benefitted as they can be reached without wasting time and
economic resources. Many companies are using effective internet marketing techniques so
as to reach the target market with less effort.

The impact of ecommerce on the global economy has influenced everything from the
production to the service levels that many companies are able to do business with. The
change is very significant. With ecommerce these businesses are faced with the main
challenge of having to stay ahead of their market competitors with the technological
transformation. Countries that are not economically sound were been effected by the advent
of e-commerce. Many companies have enhanced sales and increased their profits with
ecommerce.

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GLOBAL E-COMMERCE SALES

Figure 3:Source: Goldman Sachs, 2013

Global ecommerce sales are growing at more than 19% a year. Worldwide retail web sales
will reach nearly $1trillion by end of 2013 but they reached that mark a year before that is
by end of 2012 only it reached $1 trillion marks there by you can observe how ecommerce
industry in growing globally. E-commerce was initially driven by the convenience of global
shopping from your computer but now it is driven by convenience of global shopping from
any location and at any time (Goldman Sachs, 2013)

Most of the ecommerce companies are doing ecommerce business which is business to
consumer where they won’t be getting more margins so it is high time for all the e-
commerce companies to also to B2B sales so as to get profits which intern let the venture
capitalists to pour more money that can be used to expand operations and serve better.

CHALLENGES FACED BY E-COMMERCE INDUSTRY

The top 7 reasons for lost online purchases

 Price disparities and poor presentation


 Site functionality issues such as lack of time-saving features
 Poorly displayed product descriptions
 Presentation of additional charges
 Navigation issues such as poor sorting and filtering functionality
 Lack of discounts/sales
 Errors and bugs

In today's e-commerce sites routinely experience transaction closure rates in the range of 3
to 5 percent of the total visitors - the primary reason for the failure is most of the sites are
too generic - no personalization whatsoever.Most of the shoppers spend a significant

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amount of time by going through multiple websites and related comparison websites and
still they cannot make a quick decision - average time to make a decision to buy any
product online is between 2 hours to a week which are also confined to a couple of choices.

TRENDS IN E-COMMERCE INDUSTRY

Indian E-commerce has done very well in the year 2012 which capped off an incredible 5
years of exponential growth, from approximately $1.75 Billion in 2007 to over $14 Billion
by 2012.Regardless of how things develop in the coming days 2013 will see more trends
and innovations in Indian E-commerce.

Some of the trends for a maturing E-commerce space in India are

 The Rise of M-Commerce

According to the research done my Kleiner Perkins, one of the world’s largest VC firms
revealed some fascinating insights for the Indian ecommerce industry. The people who are
using desktop internet had overtaken by the people using mobile internet.Assuming this
continues India is going to be the first true-mobile-first market. Several Indian ecommerce
firms prepared to invest in creating world-class mobile platforms are best positioned to
capture more market share.

 Bridging Thee-Commerce Product Experience Gap

Customers must feel a certain degree of comfort of what they are buying will fit them look
good on them look right in their living room etc., and clearly many Indian shoppers still
have major concern over despite generous returns policies.In 2013, we might see some
interesting initiatives to bridge the information gap between what the consumer wants and
what the product is.

Example: Yepme.com has come up with try and Buy options to its customers.

 Social becoming more about Online Reputation Management (ORM) and less
about catching attention

Brand’s online reputation management must be characterized by the existence of one


seamless ‘voice’ across all channels: facebook, Twitter, Linked-in etc. Customers are going

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to more and more value brands that stand for something, or are differentiated in ways other
than low prices and wide product ranges.

 Product Videos: Engaging and Informative

Most e-commerce companies are very much aware of the importance of including high
quality product images on their product pages. Typically, products are photographed from
several angles, with the photos touched up to give a glamorous look. Photos tell part of the
story, but in 2013 it is believed thatvideo will start to be a significant differentiator in e-
commerce.One can create more impactful content via video. Product videos are not easy to
execute, but if done well they can have a significant impact on product page conversion
rates. It is expect to see this as a major trend in Indian e-commerce for 2013.

 ‘Shippable’ Images & Videos

Several large players like IKEA and GUCCI have experimented on this of each product
viewing in its natural setting rather than just browsing through an array of product. Videos
can be used in a similar way. With the typical high-production values of a fashion video, a
company can display this season’s must have products – the difference being that the
products in the video are clickable even as the video plays and when clicked, bring the
viewer to the product pages of the selected product.

 Emergence of B2B

It is believed that the B2B e-commerce wave could soon hit India because of the
educational role that B2C has been playing for the past 5 years. The advancement of B2B e-
commerce is very much supported by the prior establishment of a strong B2C market. The
Indian e-commerce story so far has been dominated by B2C e-commerce companies. Indian
B2C e-commerce is currently valued at $14 Bn. We can take live example of Wall-mart
managing electronically its inventory requirements with 60,000+ suppliers

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ONLINE MARKETING

Online marketing or internet marketing also known as e-marketing, is referred to as


the marketing (generally promotion) of products or services over the Internet. It is not a
very new concept, yet it is rapidly expanding and fundamentally important aspect of
strategic implementation. Indeed in many organizations, it may be regarded as a functional
aspect of marketing strategy and certainly of the business model. Internet marketing is
considered to be broad in scope because it not only refers to marketing on the Internet, but
also includes marketing done via e-mail and wireless media. Digital customer data and
electronic customer relationship management (ECRM) systems are also often grouped
together under internet marketing. Internet marketing ties together the creative and
technical aspects of the Internet, including design, development, advertising and sales.

Online marketing processes include not only e-marketing and sales, but supply chain and
channel management, manufacturing and inventory control, financial operations and
employee’s workflow procedures across an entire organization. Essentially e-business
technologies empower customers, employees, suppliers, distributors, vendors, and partners
by providing them with powerful tools for information management and communications.
Online marketing or e-marketing is always confused with e-commerce.

Any business marketing using online media is known as e-marketing, while on the other
spectrum, the financial transaction involved with the electronic process using internet
technologies, is called as e-commerce. Customer satisfaction is the most important aspect of
business development through e-marketing. There are certain online marketing tips that can
truly enhance the worth of business. The website needs to show complete contact
information, this will help customers to rely on the company that if something goes wrong,
someone will be there to listen to them. Impressive profile of products or services search
engines is great idea of marketing business through online sources. Data warehousing to
map customer needs that is FAQ`s, auto replies, built in call back facility and queries
recording is also essential in this regard. Customer relationship management CRM needs to
be focused separately. E-branding, that is, to make your site attractive through animations
and slide shows inclusion.

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INTERNET MARKETING OBJECTIVES

Essentially, Internet marketing is used to do one or more of the following which are stated
below:

 Communicate a company's message about itself, its products, or its services online.
 Conduct research as to the nature (demographics, preferences, and needs) of existing
and potential customers.
 Sell goods, services, or advertising space over the Internet.

Internet Marketing Component

The Components of Internet marketing (or online marketing) may include the following:

 Setting up a website , consisting of text, images and possibly audio and video
elements used to convey the company's message online, to inform existing and
potential customers of the features and benefits of the company's products and/or
services.
 Search Engine Marketing (SEM), which is marketing a website online via search
engines, either by improving the site's natural (organic) ranking through search
engine optimization (SEO), buying pay-per-click (PPC) ads or purchasing pay-for-
inclusion (PFI) listings in website directories, which are similar to offline yellow
page listings.
 Email marketing, which is a method of distributing information about a product or
service or for soliciting feedback from customers about a product or service through
Email. Email addresses of customers and prospective customers may be collected or
purchased. Various methods are used, such as the regular distribution of newsletters
or mass mailing of offers related to the company's product or services.
 Online press releases, which involve placing a newsworthy story about a company,
its website, its people, and/or its products/services with on online wire service.
 Marketing is the act of posting comments, expressing opinions or making
announcements in a discussion forum and can be accomplished either by hosting
one’s own blog or by posting comments.

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 Article marketing, which involves writing articles related to business and having
them published online on syndicated article sites. These articles then have a
tendency to spread around the Internet since the article services permit re-
publication provided that all of the links in the article are maintained.

Security concerns of Online Marketing: -

Information security is important both to companies and consumers that participate in


online business. Many consumers are hesitant to purchase items over the Internet because
they do not believe that their personal information will remain private. Some companies
that purchase customer information offer the option for individuals to have their
information removed from their promotional redistribution, also known as opting out.
However, many customers are unaware if and when their information is being shared, and
are unable to stop the transfer of their information between companies if such activity
occurs. Additionally, companies holding private information are vulnerable to data attacks
and leaks. Internet browsing privacy is a related consumer concern. Web sites routinely
capture browsing and search history which can be used to provide targeted advertising.
Privacy policies can provide transparency to these practices. Spyware prevention software
can also be used to shield the consumer.

Another consumer e-commerce concern is whether or not they will receive exactly what
they purchase. Online merchants have attempted to address this concern by investing in and
building strong consumer brands (e.g., Amazon.com, eBay, and Overstock.com), and by
leveraging merchant and feedback rating systems and e-commerce bonding solutions. All
these solutions attempt to assure consumers that their transactions will be free of problems
because the merchants can be trusted to provide reliable products and services.
Additionally, several major online payment mechanisms (credit cards, PayPal, Google
Checkout, etc.) have provided back-end buyer protection systems to address problems if
they occur.

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Internet Auctions
Internet auctions have become a multi-billion dollar business. Unique items that could only
previously be found at flea markets are now being sold on Internet auction websites such
as eBay. Specialized e-stores sell a vast amount of items like antiques, movie props,
clothing, gadgets, and so on. As the premier online reselling platform, eBay is often used as
a price-basis for specialized items. Buyers and sellers often look at prices on the website
before going to flea markets; the price shown on eBay often becomes the item's selling
price.

Advertising Industry
In addition to the major effect internet marketing has had on the technology industry, the
effect on the advertising industry itself has been profound. In just a few years, online
advertising has grown to be worth tens of billions of dollars annually. This has caused a
growing impact on the United States' electoral process. In 2008, candidates for President
heavily utilized Internet marketing strategies to reach constituents. During the 2007
primaries candidates added, on average, over 500 social network supporters per day to help
spread their message. Several industries have heavily invested in and benefited from
internet marketing and online advertising. Some of them were originally brick and
mortar businesses such as publishing, music, automotive or gambling, while others have
sprung up as purely online businesses, such as digital design and media, blogging, and
internet service hosting.

Internet Marketing and Home Business

Of all of the components of Internet marketing, prospective customers and clients expect a
business to have a website. In fact, not having one could raise a red flag to a prospect.
Online usage has become so pervasive today that many prospects might easily choose to do
business with a company that they can get up-to-date information on 24 hours per day,
seven days per week. A business that only has local customers, such as a single location
restaurant or shoe store can benefit from having a website and engaging in online marketing
and, those businesses whose customers are not restricted to a geographical area might have
a difficult time finding an alternate method of attracting customers that offers the
reasonably low expense and worldwide reach of a Web presence. Because of the virtual
nature of most home businesses, websites, if not an absolute necessity, can certainly
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provide benefits to a home business operator. Since most home-based businesses don't have
a physical location, a website provides an inexpensive means for prospects to get to know
what you do or what you sell and can even be a storefront for selling goods and services
directly.

Scope of Online Marketing in India


Although India is quite advanced in Computer Software, IT, Communication and Web
Designing fields it still lags behind in Online Marketing field. India usually is slow initially
in any field for that matter, but becomes enthusiastically emergent when competition hoots
up and the field becomes well known.
Due to lack of awareness in the field of Online marketing many IT and computer software
professionals have not participated in this rich rewarding field. Of late some Universities
have started ecommerce and web designing/web promotion courses as professional courses.
Online Marketing is fast catching the interest and fancy of Indian studying youth.
There are so many big business and industrial institutions in India without any
significant or no online presence. Now many business houses have started realizing the
importance of online marketing through websites or blogs. Even educational institutions
have started advertising by online means. Additionally professional institutions have started
to enhance their online presence without which they have to succumb to new young
entrepreneurs who will do their business through online resources.

The scope of Online Marketing in India is tremendous as there is a huge market for any
field or segment by the sheer magnitude of population in this country. In any field there is
no substitute to learning and Online Marketing is not an exception. There are very few
credible coaches in online marketing. India needs an Online Marketing University which
teaches Affiliate marketing with step by step tutorials. It must also give university level
Accreditation Courses in PPC (pay per click) and Article Marketing the two main tools of
Online Marketing. With the tools and resources review offered on the website link below,
Indian youth particularly IT and Computer professionals can possibly explore the
possibility of starting an online marketing business career. Also Indian professionals or
businessmen can learn Online Marketing techniques to increase the online presence of their
business/industry.

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P'S OF INTERNET MARKETING

The four P's - Product, Price, Place and Promotion have long been associated with
marketing, but things have changed on the Internet. So along with a change in the nature of
the four P’s there are three new P’s which are relevant to the internet marketer:
Presentation, Processes and Personalization.

1. Product: -
Product on the Internet usually changes form online, and the user experiences it
electronically, in the form of text, images and multimedia. Physical goods are usually
presented in the form of a detailed online catalogue that the customer can browse
through. Technology allows the user to virtually touch and feel the product on the
Internet - rotate it, zoom in or zoom out and even visualize the product in different
configurations and combination. Content and software are two avatars of digitized
products that can be even distributed over the Internet. On the Internet, E-marketing will
be based more on the product qualities rather than on the price. Every company will be
able to bring down the cost of its products and hence competition will not be on price. It
will rather be on the uniqueness of the product. To be able to attract the customers and
retain them, the company will have to provide nouvelle and distinct products that forces
the net users to purchase and come back for more.

2. Price: -
Price has been drastically changed over the Internet. It lets the buyer decides the price.
Also it gives the buyers information about multiple sellers selling the same product. It
leads to best possible deal for the buyers in terms of price. Pricing is dynamic over the
Internet.

3. Place: -
Place revolves around setting up of a marketing channel to reach the customer. Internet
serves as a direct marketing channel that allows the producer to reach the customer
directly. The elimination of the intermediate channel allows the producer to pass the
reduced distribution cost to the customer in the form of discounts.

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CHAPTER-2

COMPANY-ANALYSIS

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PROFILE OF THE COMPANY


Flipkart.com Introduction

Flipkart.com is among India’s largest online retailers. It is an e-commerce company


headquartered in Bangalore, Karnataka, India established in 5th September 2007 by
SachinBansal and BinnyBansal. Flipkart.com started as an online bookstore, but has since
diversified into media, consumer electronics, computers, healthcare and home
appliances. Flipkart.com went live in 2007 with the objective of making books easily
available to anyone who had internet access. With over 11.5 million book titles listed, 11
different categories, more than 2 million registered users and sale of 30000 items a day,
Flipkart.com is one of the leading e-commerce players in the country. It offers path-
breaking services like Cash on Delivery, a 30day replacement policy, EMI options, free
shipping, Electronic wallet and 24x7 customer services.

Flipkart.com has acquired social book discovery tool We Read from Lulu, a US-based on-
demand publishing firm in December 2010. Launched by Bangalore-based startup Ugenie,
We Read is a social book discovery engine that enables users to recommend and discover
books, search for authors, rate and review books as well as share and network with other
book lovers. Ugenie received $5 million in funding from Blue Run Ventures and Sierra
Ventures in 2006 and was acquired by Lulu in August 2008. We Read’s widget is available
on Facebook, Orkut, Yahoo, MySpace and Hi5. It has registered 3 million readers and has
60 million books listed and users can also read some books online via We Reader. The We
Read acquisition will give Flipkart.com a social recommendation platform for buyers to
make informed decisions based on recommendations from people within their social
network.

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Flipkart.com announced its acquisition of digital media distribution firm, MIME360


(Manoramic International Media Exchange) in October 2011. With this acquisition,
Flipkart.com will be able to utilize the advanced infrastructure of MIME360 for providing
access to a large selection of downloadable digital content which it will soon introduce.
MIME360 was incubated at the Wharton Business School’s Venture Initiation Program
(VIP) by Sameer Nigam in 2008. In early 2009 Rahul Chari and Burzin Engineer joined as
co-founders to incorporate MIME360. The unique distribution model brings together
content owners and publishers on a common platform, enabling them to expand their
market globally. The company works at addressing issues associated with scale, security
and transparency that limit global distribution of digital media & entertainment content. At
present, MIME360 has tie-ups with 50 content owners and 10 content publishers and
currently has operations in Mumbai, India and Delaware, USA. Post the acquisition, the
MIME360 distribution platform will stay totally independent and continue to service
publisher clientele like Gaana.com, Saregama.com and In.com.

Flipkart.com acquired Chakpak.com’s digital catalogue in November 2011. Chakpak is an


online community for Indian entertainment and Flipkart.com now has complete access to
this content. Nitin Rajput, one of the founders of Chakpak has joined the Flipkart.com team,
however, according to sources; Chakpak's other founder Gaurav Singh Kushwaha has left
the company to work on a new venture. Chakpak’s digital catalogue includes 40,000
filmographies, 10,000 movies and close to 50,000 ratings. Flipkart.com has acquired only
the digital catalogue and not the website of Chakpak.com.

Recently on February 2012, Flipkart.com Online Services Pvt. Ltd has also
acquired Letsbuy.com, the country’s second-largest online electronics retailer, for an
undisclosed amount, the third purchase by the five-year-old company in the past two years.
Letsbuy.com, which gets 5 million monthly visits, was started in 2009 by eTree Marketing
Pvt. Ltd and sells items such as mobile phones, cameras, laptops and home appliances. The
move reflects Flipkart.com’s strategy of growing through acquisitions as e-commerce
companies strive to become a one-stop shop for buyers and seek to boost their presence in a
market that’s expected to grow more than 10-fold in the next few years. The acquisition
also reiterates that e-commerce in India is likely to be dominated by cash-rich companies
that can leverage their financial strength for scaling up and strengthening their position,
analysts said. Flipkart.com and Letsbuy.com have common investors named Tiger Global
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and Accel Partners. According to the Internet and Mobile Association of India, Internet
users in the country have crossed the 100-million mark, of which 17 million are online
shoppers. It estimates that the number of Internet users in India will triple by 2015, as will
the number of online shoppers.

Flipkart.com is flying into the digital music download territory with its MP3 download
service called Flyte. The online music download store will not only have to compete with
music piracy websites and illegal Bit Torrent downloads but also with free Indian online
music streaming services. Flyte, Flipkart.com’s digital music store, provides DRM (Digital
Rights Management) free MP3 files at prices starting from Rs 6 a song and Rs. 25 for an
album. Users can listen to a 30second clip before making their purchase. Music purchase
from Flyte is currently restricted to users in India only. Digital music is often a lot cheaper
than physical CD purchases. For example, a music CD is priced at Rs. 160 on T-Series web
store, whereas the MP3 for the same album is available for Rs. 54 on Flyte. Users have the
option to either directly download their purchased files or use the Flyte Download Manager
to simplify the download process. Each music file purchased from Flyte can be downloaded
a maximum of four times.

The Flyte Download Manager is a 4.3 MB download for Windows and 6.3 MB for the Mac
version. The advantage of the download manager is that it downloads multiple files in one
click process. Flyte's collection includes music from 40 Indian and foreign languages and
dialects across 28 genres.

Flipkart.com have a mobile optimized site too, one of the very few in the Indian market.
Flipkart Lite allows one to search & order all product lines available on the desktop site, i.e.
books, mobiles, movies, music, games, cameras, & computers. However, the only payment
option available is cash-on-delivery (C-o-D). Given that they are in a business that doesn't
need immediate fulfillment, like flight tickets, it makes sense to avoid the payment
challenge on mobile. The transaction process is fairly straightforward, barring a minor
glitch here or there. The experience seems to be optimized for small-screen devices as it is
clear from how they are treating the search box & search results.

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Having started the company selling books, the intention for Flipkart.com has always been to
become a website where you can find anything and everything, at a competitive price,
easily delivered, brought together by a valuable, trustworthy customer experience. The
launches of Mobiles, Games (consoles), Computers and Cameras are part of Flipkart.com’s
ongoing process by which they strive to provide their customers with an entirely
wholesome shopping experience, where everything under the sun is available at their
customer’s fingertips. In terms of design, they bade farewell to their beloved orange and
welcome in a sharp, some say more professional, yellow and blue motif along with a spiffy
new logo - shopping kart, speedy delivery et al. They are now no longer just a book store,
but a store which contains everything (constant work in progress), that is why they also now
have a homepage, highlighting the big sellers in their various categories and the depth of
Flipkart.com’s online shopping experience. Feedback on the revamp is welcomed and will
be embraced for the future. Flipkart.com is expanding at a rapid pace and they have come a
long way. With this array of change, they would like to assure that their approach has not
changed and they will continue to strive for excellence in the e-commerce domain and will
stay constant over the years.

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HISTORY OF Flipkart.com

Flipkart.com was established in 2007 by SachinBansal and Binny Bansal.com, both alumni
of the Indian Institute of Technology Delhi. They worked forAmazon.com before quitting
and founding their own company. Initially they used word of mouth marketing to
popularize their company. A few months later, the company sold its first book on
Flipkart.Com - John Woods' Leaving Microsoft to Change the World. Today, as per Alexa
traffic rankings, Flipkart.com is among the top 30 Indian web sites and has been credited
with being India's largest online bookseller with over 11 million titles on offer.

Flipkart.com broke even in March 2010 and claims to have had at least 100% growth every
quarter since its founding. The store started with selling books and in 2010 branched out to
selling CDs, DVDs, mobile phones & accessories, cameras, computers, computer
accessories and peripherals, pens & office supplies, other electronic items such as home
appliances, kitchen appliances, personal care gadgets, health care products etc. As of today,
Flipkart.com employs over 4672 people.

About the founders of Flipkart.com

SachinBansal is the Chief Executive Officer (CEO) and BinnyBansalis the Chief Operating
Officer (COO). They are the co-founders of Flipkart.com.They graduated from IIT-Delhi
with a degree in Computer Engineering. They worked at Amazon.com in India before
taking the entrepreneurial plunge with Flipkart.com.

Funding

 It was initially funded by SachinBansal and BinnyBansal themselves with


400000/-
 Flipkart.com has since then raised two rounds of funding from venture capital
funds Accel India (in 2009) and Tiger Global Management (up to the tune of
US$10 million) (in 2010).
 Private equity firms Carlyle and General Atlantic are in talks to jointly invest about
$150 million to $200 million in Flipkart.com, according to sources.

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ACQUISITIONS OF Flipkart.com
The following are the acquisitions of Flipkart.com:

 December 2010
We Read, a social book discovery tool. The stated goal was to give Flipkart.com a
social recommendation platform for buyers to make informed decisions based on
recommendations from people within their social network.
 October 2011
Mime 360, a digital content platform company.
 November 2011

Chakpak.com is a Bollywood news site that offers updates, news, photos and videos.
Flipkart.com, acquired the rights to Chakpak’s digital catalogue which includes 40,000
filmographies, 10,000 movies and close to 50,000 ratings. Flipkart.com has categorically
said that it will not be involved with the original site and will not use the brand name.

 February 2012
Letsbuy.com, the second-largest online retailer of electronic goods in the country.

Business Results of Flipkart.com


Flipkart.com’s reported sales were 4 crore in Financial Year 2008-2009, 20 crore
in Financial Year 2009-2010 and 75 crore for Financial Year 2010-2011. In this Financial
Year 2011-2012 Flipkart.com is set to cross the 5 billion ($100 million) mark, as Internet
usage in the country increases and people get accustomed to making purchases online. On
an average, Flipkart.com sells nearly 20 products per minute and is aiming at generating a
revenue of 50 billion ($1 billion) by 2015.

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LOCATIONS OF Flipkart.com

The company's headquarters is located in Bangalore's Koramangala neighborhood.


Flipkart.com has offices, warehouses and customer service centers across India.
Warehouses are located in the following cities, often near airports.

 Bangalore, Karnataka.
 Chennai, Tamil Nadu.
 Delhi.
 Kolkata, West Bengal.
 Mumbai, Maharashtra.
 Noida, Uttar Pradesh.
 Pune, Maharashtra.
 Kochi, Kerala.

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PRODUCTS OFFERED BY Flipkart.com: -


Flipkart.com started with selling books. In 2010 they added to their catalogue media
(including music, movies and games) and mobile phones & accessories.

In 2011, the product launches included cameras, computers, pens & office supplies,
computer accessories, home and kitchen appliances, personal care, health care,
gaming consoles, audio players and televisions.

Later, it also launched Flyte- the digital store, MP3 downloads and fragrances.

In November 2011, Flipkart.com also launched a new Electronic Wallet feature that allow
shoppers to purchase credit to their Flipkart.com account using credit or debit cards, and
can subsequently be utilized to make purchases on the site, as and when required.

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FLIPKART.COM (THE BIG BILLION DAY)


E-tailerFlipkart is launching a day long shopping event on 6-10-2014 this year called 'Big
Billion Day'. Flipkart is expecting to unite a billion people through what they promise is
going to be the greatest sale ever in India.

“Till date, India has seen shoppers across the country turn out in millions during festivals
like AkshayaTritiya and Dhanteras. With the 'Big Billion Day', Flipkart is set to replicate
this concept of a single day of shopping on a massive scale online,” said the company.

Flipkart will be offering discounts, deals, surprises across 70 categories including large
appliances, books, toys, mobiles, laptops, cameras, clothes, shoes, bags and watches. It also
vows to deliver products on time with its 10,000 field staff.

Flipkart is not missing out on a single platform to promote this day. From hoarding and TV
commercials to individual emails and messages, Flipkart has done it all to communicate
about the big day.

7 Things that BBDS Achieved in Flat Ten Hours

1. 1 billion: Hits received by the Flipkart website in 10 hours

2. 500,000 (5 Lakh): Number of units sold in each of the mobile and fashion categories

3. 15 minutes: Time taken for the ‘best deals’ to be wiped out

4. $100 million (GMV): contributed by 1.5 million shoppers in 10 hours

5. 3X: Hits received by Snapdeal and Amazon in 10 hours of their average hits during the
same duration most likely without any direct marketing money invested

6. Pledge to online: People who’d missed the BBDS benefits have pledged that they will
first try/buy online before making any buying decision small or big.

7. Digital opportunities or warfare: Bigbillionday.com had redirected traffic to Amazon and


now it is redirecting it to Starsports.com

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Dear Customer,

Yesterday was a big day for us. And we really wanted it to be a great day for you. But at the
end of the day, we know that your experience was less than pleasant. We did not live up to
the promises we made and for that we are really and truly sorry.

It took enormous effort from everyone at Flipkart, many months of preparation and pushing
our capabilities and systems to the limit to be able to create this day. We were looking at
fulfilling the dreams of millions of Indian consumers through deals and offers we had
painstakingly put together for months.

And though we saw unprecedented interest in our products and traffic like never before, we
also realized that we were not adequately prepared for the sheer scale of the event. We
didn’t source enough products and deals in advance to cater to your requirements. To add to
this, the load on our server led to intermittent outages, further impacting your shopping
experience on our site.

An unprecedented 1.5 million people shopped at Flipkart yesterday. While we stand


humbled by the sheer faith that such a large number of customers have shown in us, we are
unhappy that we were unable to live up to the expectations of millions more who wanted to
buy from us yesterday.

And this is not acceptable to us.

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Delighting you, and every single one of our customers, is absolutely the top most priority
for Flipkart and we have worked very hard over the last seven years to earn your trust.
Yesterday, we failed that trust. We have learnt some valuable lessons from this and have
started working doubly hard to address all the issues that cropped up during this sale.

Price Changes:- As we were preparing various deals and promotional pricing in the
lead up to the sale, the pricing of several products got changed to their non-discounted rates
for a few hours. We realise that this breaks the trust our customers have put in us. We are
truly sorry for this and will ensure that this never happens again.

Out-of-stock Issues : - We ran out of the stock for many products within a few minutes
(and in some cases, seconds) of the sale going live. For example, most of our special deals
were sold out as soon as they went live. We had ensured availability, anywhere from
hundreds to a few lakh units for various products, but it was nowhere near the actual
demand. We promise to plan much better for future promotions and ensure that we
minimize the out-of-stock issues.

Cancellations : - We had large number of people buying specific products


simultaneously. This led to some instances of an order getting over-booked for a product
that was sold out just a few seconds ago. We are working round-the-clock to ensure
availability of additional units for these products and will do our level best to ensure that we
minimize any cancellations.

Website Issues: - We realize that the shopping experience for many of you was
frustrating due to errors and unavailability of the website at times. We had deployed nearly
5000 servers and had prepared for 20 times the traffic growth – but the volume of traffic at
different times of the day was much higher than this. We are continuing to significantly
scale up all our back end systems so that we do a much, much better job next time.

Everything that we have achieved at Flipkart is purely on the basis of our customer’s trust
and faith. This is why we come to work each day and continue to remain extremely
passionate about building the best possible customer experience for Indian consumers. We
failed to live up to this promise yesterday and would like to apologies once again to every
single customer for our failure.

Thanks’

Sachin and Binny

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PAYMENTS MADE AT FLIPKART.COM :-


Flipkart.com offers multiple methods to make payments for order. They are as follows:

Credit Card & Debit Card (including American Express) Net Banking, E-Gift Voucher and
Cash on Delivery. All Credit/Debit card details remain confidential and private.
Flipkart.com uses SSL encryption technology to protect card information. There are
absolutely no hidden charges when purchasing is made at Flipkart.com.

Flipkart.com accepts Debit Cards issued by the following banks


 AXIS Bank Debit Card (VISA Electron only).
 Canara Bank Debit Card.
 Citibank Debit Card.
 Corporation Bank Debit Card (VISA Electron only).
 Deutsche Bank Debit Card (VISA Electron only).
 HDFC Bank Debit Card (VISA Electron only).
 ICICI Bank Debit Card.
 Indian Overseas Bank Debit Card (VISA Electron only).
 ING Vyasa Bank Debit Card (VISA Electron only).
 KarurVysya Bank Debit Card (VISA Electron only).
 Punjab National Bank Debit Card.
 State Bank of India Debit Card.

Flipkart.com accepts payment through Internet Banking from the following banks
 ABN AMRO Bank.
 AXIS Bank.
 Allahabad Bank.
 Andhra Bank.
 Bank of Bahrain and Kuwait.
 Bank of Baroda Corp Account.
 Bank of Baroda Retail Account.
 Bank of India.
 Bank of Maharashtra.
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 Bank of Rajasthan.
 Citibank.
 City Union Bank.
 Corporation Bank.
 Deutsche Bank.
 Dhanlaxmi Bank.
 Federal Bank.
 HDFC Bank.
 ICICI Bank.
 IDBI Bank.
 ING Vysya Bank.
 IOB Debit Card.
 Indian Overseas Bank.
 Indian Bank
 IndusInd Bank.
 Jammu & Kashmir Bank.
 Karnataka Bank.
 KarurVysya Net Bank.
 Kotak Mahindra Bank.
 Lakshmi Vilas Bank.
 Oriental Bank of Commerce.
 Punjab National Bank Corp Account.
 Punjab National Bank Retail Account.
 Royal Bank of Scotland.
 South Indian Bank.
 Standard Chartered Bank.
 State Bank of Hyderabad.
 State Bank of India.
 State Bank of Mysore.
 State Bank of Travancore.
 Syndicate Bank.
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 Tamilnad Mercantile Bank.


 Union Bank of India.
 Vijaya Bank.
 YES Bank.

SSL (Secure Sockets Layer)

It is the standard security technology which is used by Flipkart.com for establishing an


encrypted link between a web server and a browser. This link ensures that all data passed
between the web server and browsers remain private and integral. SSL is an industry
standard and is used by millions of websites in the protection of their online transactions
with their customers.SSL encryption is the ideal approach for protecting the web site, for
those who uses it from unauthorized access to private information. Entrust SSL encryption
software is the ideal choice for enabling this protection. With nearly all data security
applications, Entrust file encryption software works independently. It does not require user
intervention or remote assistance to effectively secure data transmission. Hence online
security risk is reduced with Entrust SSL security products, thereby providing organization
the reputable SSL encryption technology that automatically, and transparently, performs
data encryption for the sensitive data files and folders.

Cash on Delivery (C-o-D) Scheme

Cash-on-Delivery (C-o-D) is an alternate method of purchasing from Flipkart.com, other


than Online (By Credit/Debit card and Net banking). In the C-o-D payment terms, payment
is done at the time of the actual delivery, rather than paying in advance. The maximum
order value for a C-o-D payment is Rs. 50,000. It is strictly a cash-only payment method. E-
Gift Vouchers or Store Credit cannot be used for C-o-D orders. Foreign currency as
payment against a C-o-D order is not accepted. C-o-D is supported in the following cities:

 Bangalore.
 Mumbai.
 New Delhi-NCR.
 Chennai.
 Kolkata.
 Ahmedabad.
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 Bhopal.
 Bhubaneswar.
 Chandigarh.
 Cochin.
 Coimbatore.
 Goa.
 Guwahati.
 Hyderabad.
 Indore.
 Kanpur.
 Nasik.
 Nagpur.
 Pondicherry.
 Pune.
 Rajkot.
 Surat.
 Taloja.
 Vadodara (Baroda).

Credit Card EMI Scheme

Flipkart.com Credit Card EMI scheme is a payment option available for all orders that have
a minimum value of Rs. 4000, where the required order amount can be paid in a specified
number of installments. Flipkart.com offer two schemes: 3 months and 6 months. Only
ICICI Bank, HDFC Bank and Citibank Credit Cards are eligible for the EMI payment
option. There is no additional charge on the 3-month EMI scheme. However, a flat EMI
processing fee of Rs. 500/- is charged for the 6-month scheme.
Shipping Process
All Electronics sold on Flipkart.com are sourced from Indian suppliers authorized by the
Manufacturer. They come with minimum 1 year Manufacturer's warranty & are serviceable
at the corresponding brand's Authorized Service Centers in India, unless specified
otherwise. For Mobile Accessories, the supplied accessories inside the box have 6 months
manufacturer warranty. All Electronics (Mobiles, Gaming Consoles, Cameras, Laptops, and
Personal& Health Care Products) are covered by free insurance coverage against theft and
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damage during transit. Flipkart.com provides free delivery on all items if the total order
amount is Rs. 200/- or more. Otherwise Rs. 30/- is charged as delivery charges. It processes
all deliveries through reputed couriers. If there is no courier service available in the
customer’s area, then the shipment of the non-electronic items (i.e. except Mobiles, Gaming
Consoles, Cameras, Laptops) is done via Government Registered Book post or Speed post.
All Electronic Items are Insured for theft & damages during transit. Flipkart.com does not
deliver items internationally. The customers are welcome to make their purchases on
Flipkart.com from anywhere in the world, but they have to ensure that the delivery address
is within India. The estimated time of delivery is mentioned on every page. It may differ
from one item to another. Some of them are stated as follows:
Mentioned as Three days Delivery Time

These items will also be mentioned as "In Stock". For all areas serviced by reputed couriers
the delivery time will be three business days. For other areas, orders will be sent by
Registered Post through the Indian Postal Service which may take one to two weeks
depending on the location. Business days exclude public holidays and Sundays.

Mentioned as more than Three days Delivery Time

The procurement and shipment of the items within the time is specified on the item details
page. Some items have to be imported from outside India. These items are mentioned
sometimes as "Imported" on the item details page and can take ten or more days to reach
the customers.

Preorder or Forthcoming

These items are soon to be released and the item is pre booked for the customers. The item
will be shipped to the customers on the day of its official release launch.

Replacement Guarantee
All products sold at Flipkart.com are covered under 30 Days Replacement Guarantee. The
customers have to notify the problems of damages or defects within 30 days from the date
of delivery and a brand new replacement will be issued to the customers at no extra cost.
The defective product or part will be recalled and a replacement will be shipped
immediately. In order to get a defective item replaced, one can either contact Customer
Care via the Contact Us Page or call up on 1800 102 3547, within 30 days from the date of
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delivery. Apart from the above condition, the following products shall not be eligible for
return or replacement under the 30 Day Replacement Guarantee, which are stated as
follows:
 Any product that exhibits physical damage to the box or to the product.
 Any product that is returned without all original packaging and accessories,
including the retail box, manuals, cables, and all other items originally included
with the product at the time of delivery.
 Any product without a valid, readable, unhampered serial number.
 Any product from which the UPC (Universal Product Code) has been removed
from its original packaging.

Cancellations & Returns


If the order is cancelled before the shipment of the product then the entire amount will be
refunded by Flipkart.com. If the cancellation is after the product is shipped, then one can do
the following:
 If the product is shipped but has not yet been delivered, then the customer can
contact Customer Support and inform them of the same.
 The product will be eligible for replacement only in cases of defective products or
items.
Wallet System
The Wallet System enables the customer’s to shop on Flipkart.com multiple times by
making a payment only once. A payment is made for a certain amount and it will be added
to the account as a prepaid credit under the customer’s Wallet. When an order is made, the
Wallet can be used by them as the mode of payment and the amount will just be deducted
from the balance in their Wallet. The Wallet will replace the existing Store Credit feature
onFlipkart.com, and the customer’s existing store credit balance will be transferred to the
Wallet.

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Order Status

Customers can review the status and other information of their orders, whether pending or
fulfilled, that is placed with Flipkart.com. To check the status of pending orders, “My
Account” link has to be clicked in the top right of any page on Flipkart.com store. This will
take to the My Account page, where the customers can click on the “My Orders” link to
view the status of all orders. To view the status of a specific order, the “Order Number” has
to be clicked. After the order is shipped out from warehouse, a mail will be send with the
shipping details to the respective customer. There are different order statuses which consist
of the following:

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 Payment Pending Authorization

Where the order has been logged and Flipkart.com is waiting for authorization from
the payment gateway.

 Payment Authorized, Order under Processing

Where the authorization from the payment gateway is received from the customers
and order processing is being done.

 Order Shipped

Where the customer’s order has been shipped out of the warehouse and is on its way
to the delivery location.

 Order Cancel

Here, the order of the customer is cancelled because of the non-availability of


stock.

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FLIPKART.COM-MARKETING STRATEGY

Flipkart.com has been mostly marketed by word of mouth advertising. Customer


satisfaction has been their best marketing medium. Flipkart.com very wisely used SEO
(Search Engine Optimization) and Google Ad-words as the marketing tools to have a far
reach in the online world. Flipkart.com official Facebook page has close to 9 lac
“likes”. Flipkart.com recently launched a series of 3 ads with the tag line, “No Kidding No
worries”.

Kids were used to create the advertisements to send out the message to other people.The
message is very clear to make people more comfortable with Flipkart.com, to generate a
great customer relationship and loyalty on the basis of great product prices and excellent
customer service. Thus, Flipkart.com the Internet Company from India is one of the leading
online stores in the nation. It is also called as the Indian Amazon. With Online Retail
Industry in India pegged to reach $1.5 billion (2015), sources suggest that e-commerce is
just rising up in India and very soon there may be many more Internet companies achieving
the similar success.

Competent Analysis

Different competitors for MYDEALS247 are

 Flip kart

 EBay

 Amazon

 Jabong

 Snap deal

 Yebhi

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ORGANIZATIONAL STRUCTURE

venu somineni
CEO

Marketing & Technical


Sales Department Finance

Ravi kumar Shashikant Kabra


(Director) (Vice President)

Sujana B. Gautam
Aneesh Sandeep Nath Ra m G.
(Sr. Sharma Raju (Ex. (IT Head) Valentine
Manager) (Sr. BDM) (Sr. BDM) Manager) (PHP (Accounts
(Rural & (Volume Developer &
Paid Ads (Digital Dept.
online Sales) IT) Head)
marketing) Marketing)

Interns Interns Interns Interns

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SWOT ANALYSIS

This SWOT analysis is only for volume sales business model of MyDeals247.com

STRENGTHS WEAKNESSES

-Cost effective -Organization structure

-No inventory -Low credit term trading


-Lower transaction costs -Not having any hold out
of karnataka
-One time solution
providers -Alexa ranking is low
-Innovative business -Some categories yet to be
model introduced (online)

OPPORTUNITIES THREATS

-Global expansion

-Can start operations in -Business models can be


other regions imitated by big
ecommerce sites
-Attract customers by
introducing credit terms -Heavy traffic can hamper
functioning of website

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CHAPTER-3

DISCUSSION ON
TRAINING

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OBJECTIVES OF MY JOB: -

 The paramount motive of this on job training is the application of all the theoretical
concepts learnt so far in courseware of PGDM.

 To acquire the corporate exposure and to learn the corporate culture

 To acquire the marketing knowledge.

 To develop my skill and familiar with organization

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ROLES & RESPONSIBILITES

In the during on training my responsibility are as follow.

 To Interact the customer:- Main things of my project is to interact the customer and
find out those customer is aware are not about Flipkart.com.
 To find out the customer problem which is faced by Flipkart.com that they are
using?
 To increase company Goodwill: - The most important things of any survey is to
increase the company goodwill in the particular market.
 To promote the Company Services: - My responsibility is to promote the
Flipkart.com services to the different customers.
 I was also responsible for the collecting data for the customer.

DESCRIPTION OF LIVE EXPERIENCE:

Doing a project for about 15 week was a great achievement for me. Every day came to me
with a new learning and experience. I realized that gaining knowledge from books
regarding marketing and handling the critical situations in the field is entirely different. One
has to implement his on skills along with the book knowledge as soon as he enters in the
market.

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CHAPTER-4

ANALYSIS OF TASK

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INTRODUCTION

The purpose and goal of online marketing is similar to the traditional marketing strategies.
Both methods are meant to boost up the brand awareness and help in finding out a
number of customers for any particular company. But talking about carrying the online
marketing, it is very much different than doing the conventional way of marketing. These
ways and methods used to tread online marketing are very much different than the
traditional ones. If you are not well versed with these ideas then don’t worry, you can find
some of the best ways to implement the online marketing strategies in order to boost up
your online sales.

STATEMENT OF THE PROBLEM

The problem of the study is to find out whether Flipkart.com, has been successful in
satisfying their customers with their online marketing techniques .

SCOPE OF THE STUDY

This study examines the success of Flipkart.com in utilizing 7P’s of products and services
to satisfy its online customers. It also focuses on the techniques of Segmentation, Targeting
and Positioning (STP) by online marketers in India

METHODOLOGY

For this study descriptive and analytical methods will be used the data collected will be
analyze logical method of tabulation and graphic representation to draw valid inferences
and conclusionstherefrom.

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OBJECTIVES OF THE PROBLEM

 To know the performance of Flipkart.com in customer mind.

 To find outthe preferences of the consumer regardingthe attributes of online


shoppingwebsite through Flipkart.com

 To study the quality of both products and services offered by Flipkart.com.

 To study the overall level of satisfaction of the customers from their purchase
of products and services through Flipkart.com.

 To study the contribution of Flipkart.com in online marketing.

 To identifythe issuesfaced bytheuserwhile onlineshopping.

 To determinethe parameters for choosingthe particular shopping Centre for


purchase of different items.

SAMPLE DESIGN

The Sample design consists of 100 respondents from various places of Bangalore.

CONVENIENCE SAMPLING

Convenience sampling is a non-probability sampling technique where the subjects are


selected because of their convenient accessibility and proximity to the researcher.

SOURCES OF DATA

 PRIMARY DATA

The data that comes from primary source is called primary data. The data from the
respondents, that is from the IT Professionals are collected with the help of structured
questionnaire, telephone calls, communicating face to face and trough E-mails.

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 SECONDARY DATA

Secondary data is referred to the information of facts, which are already available. The
sources of secondary data mainly include websites, books, magazines and journals.

TOOLS AND TECHNIQUES FOR DATA COLLECTION

The primary data is collected through questionnaire, telephone calls, E-mails and face to
face communication.

The Secondary data is collected from the company website, books, magazinesand journals
for analytical purpose.

PLAN OF ANALYSIS

The data collected is segregated and tabulated in a proper manner. The collected data will
be analyzed by using Microsoft Excel and bar graphs, pie charts are the statistical tools
which will be used to represent the analyzed data.

LIMITATIONS OF THE STUDY

 This study is limited to only the professionals, students who are working at various
places in Bangalore.

 This study is limited for only those who purchase online products.

 This study does not include customers who prefer tangibility of product prior to
purchase.

 This study also does not hold good for the people, who are illiterate.

 The risk pertaining to online shopping is not covered in this study.

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Chart showing the number of respondents who uses internet for online
shopping in one month’s period.

60

50

40

Percentage (%)
30

20

10

0
Once 2 to 5 times 6 times and above

Analysis:

The above table shows that out of 100 respondents,

 35% respondents use internet only once.


 52% use internet two to five times and
 13% use internet six times and above six times for the purpose of online shopping in
one month’s period.

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Chart showing the sources through which the respondents came to know
about Flipkart.com.

60

50

40

30 Number of Respondents

20

10

0
Television Print Media Internet References Others
Browsing

Interpretation:

The above chart shows that majority of the respondents came to know about Flipkart.com by
means of Internet Browsing followed by Television, References, Print Media and finally other
sources. Flipkart.com hugely depends on Internet Browsing for promotion techniques.

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Chart showing the association of respondents with Flipkart.com.

16%

40% Purchaser
Visitor
Both Purchaser and Visitor

44%

Interpretation:

The above chart shows that majority of the respondents are associated with Flipkart.com both
as a purchaser and a visitor. There are no respondents who have not visited Flipkart.com.

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Chart showing the products purchased by the respondents from


Flipkart.com

25

20

15

10

Most of the times Sometimes Never

Interpretation:

The above chart shows that majority of the respondents purchase books from Flipkart.com
whereas the other majority of the respondents never purchase computers from Flipkart.com.
Flipkart.com offers a wide variety of products in the field of music, gaming, electronic goods,
health care etc., which are most of the times, sometimes and never purchased by the
respondents as shown above.

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Chart showing the view of the respondents regarding the offering of various
brands of products by Flipkart.com like other offline retail stores.

60

50

40

30
Percentage (%)

20

10

0
Strongly Agree Agree Neutral Disagree Strongly
Disagree

Interpretation:

The above chart shows that majority of the respondents agree that Flipkart.com offer various
product brands which are similar to that of the offline retail stores. So, it is clear from the
above chart that there is a wide variety of product brands offered by Flipkart.com.

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Chart showing the view of respondents regarding the Guarantee and


Warranty policies offered at Flipkart.com.

Poor
Number of Respondents

Fair
Warranty provided on products by
companies.
30 days Replacement Guarantee of
products.
Good

Excellent

0 10 20 30 40 50

Interpretation:

The above chart shows that majority of the respondents have rated the Guarantee policies
provided by Flipkart.com as good. Hence, it states that Flipkart.com provides better Guarantee
policies on the products to the customers.

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Chart showing the purpose of the respondents behind visiting Flipkart.com.

50

45

40

35

30

25
Number of Respondents

20

15

10

0
Price Variety of Discounts and Others
Brands Offers
provided

Interpretation:

From the above chart it is clear that majority of the respondents visit Flipkart.com because of
the discounts and offers provided on the products and services by Flipkart.com.

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Chart showing the respondents finding the display of price range for the
products showcased in Flipkart.com.

40

35

30

25

20 Number of Respondents

15

10

0
Most of times sometimes Rarely Never

Interpretation:

The above chart shows that majority of the respondents find the display of price range for the
products showcased in Flipkart.com which enables them to make a purchase quickly and
easily.

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Chart showing the prices of the products offered at Flipkart.com.

60

50

40

30
Number of Respondents

20

10

0
Reasonable Premium Price At a Discount

Interpretation:

In the above chart, majority of the respondents state that Flipkart.com offers reasonable prices
for the products, which in turn will make the customers to purchase or buy frequently
fromFlipkart.com.

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Chart showing reasonable discounts provided by Flipkart.com.

Yes No

5%

95%

Interpretation:

The above chart shows that majority of the respondents agree that Flipkart.com provides
reasonable discounts. It enables them to have a variety of alternatives while purchasing from
Flipkart.com.

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Chart showing the mode of payment preferred by the respondents to


purchase products from Flipkart.com

60

50

40

30
Number of Respondents

20

10

0
Payment by Wallet System Cash on EMI Scheme
Debit / credit Delivery
card

Interpretation:

The above chart shows that majority of the respondents prefer payment by debit / credit cardin
order to purchase products from Flipkart.com. In other words, the preference of payment by
debit / credit card is more when compared to the other payment modes offered by
Flipkart.com.

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Chart showing the view of respondents regarding the Delivery of Products


within the time period mentioned by Flipkart.com.

45

40

35

30

25

Percentage (%)
20

15

10

0
5- Highest 4 3 2 1-
Lowest

Interpretation:

The above chart shows that majority of the respondents have rated the delivery of products as
4. It means that the delivery of products is being done to the customers within the time period
as mentioned by Flipkart.com

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Chart showing the respondents view regarding their preference in


Flipkart.com.

60

50

40

30

20

10

Number of Respondents 5

Number of Respondents 4

Number of Respondents 3

Number of Respondents 2

Number of Respondents 1

Interpretation:

The above chart shows that majority of the respondents have rated the wishlist. Hence, it is
clear from the above chart that most of the respondents prefer wishlist at Flipkart.com. Apart
from wishlist, Flipkart.com also provides free home delivery of products, new releases, pre
order, and forthcoming information of products etc. to the customers.

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Chart showing the respondents view on the Customer Service provided by


Flipkart.com.

50

45

40

35
Website User Friendliness
30
Service on Delivery

25 Service on Follow up

24x7 Service
20

15

10

0
Excellent Good Fair Poor

Interpretation:

The above chart shows that majority of the respondents have rated the website user
friendliness as good. Flipkart.com provides a user friendly website which is easy to access by
the customers for placing an order.

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Chart showing the respondents view on follow up service offered by


Flipkart.com.

Poor

Fair
Mobile Message

Telephone Call

Good E-mail

Excellent

0 10 20 30 40 50

Interpretation:

The above chart shows that majority of the respondents have rated the follow up through E-
mail as good. Flipkart.com offers the follow up services to the customers for the purpose of
confirming the order placed before delivering and after delivering of the final product to the
customers. It should also leverage the follow up service through telephone call and mobile
message in order to meet up with the expectations of the customers.

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Chart showing the respondents view regarding safe and secure shopping
provided by Flipkart.com.

45

40

35

30

25

Percentage (%)
20

15

10

0
Strongly Agree Neutral Disagree Strongly
Agree Disagree

Interpretation:

The above chart shows that majority of the respondents agree with thesafe and secure
shopping provided by Flipkart.com. In other words, Flipkart.com provides a safe and secured
environment for the customers to shop online.

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Chart showing the respondents using Flipkart lite for mobile shopping.

Yes
36%

No
64%

Interpretation:

The above chart shows that majority of the respondents do not use Flipkart lite for the purpose
of mobile shopping. Only a few respondents prefer Flipkart lite for the mobile shopping
purpose.

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Chart showing the respondents view regarding Flipkart lite for mobile
shopping.
18

16

14

12

10

Number of Respondents
8

0
Excellent Good Fair Poor

Interpretation:

The above chart shows that majority of the respondents have rated Flipkart lite as good. Most
of the respondents prefer Flipkart lite as it enables the customers to shop easily by using their
mobile phones.

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Chart showing the ratings given by the respondents based on the


information provided by Flipkart.com.

50

45

40

35

30 Summary of the products in the


site.
Details and specification of the
25 products in the site.
Installation details of the products
20 in the site.
Color and Layout of the site.
15

10

0
5 4 3 2 1
Number of Respondents

Interpretation:

The above chart shows that majority of the respondents have rated for the summary of the
products. In other words, Flipkart.com provides the customers with all the necessary
information i.e., starting from the summary till the installation details regarding the product
for the convenience of the customers. It should also leverage the other aspects like details and
specification of the products in the site, installation details of the products, color and layout of
the site in order to meet up with the expectations of the customers.

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FINDINGS
 Flipkart.com hugely depends on Internet Browsing for promotion techniques.
 Flipkart.com has more number of purchasers as well as visitors.
 Flipkart.com offers a wide variety of products in the field of books, music, gaming,
electronic goods, health care, etc.
 Flipkart.com offers various product brands which are similar to that of the offline retail
stores.
 Flipkart.com provides better Guarantee and Warranty services on the products.
 Flipkart.com enables the customers to make purchase quickly and easily.
 Flipkart.com offers reasonable price and discount on the products.
 The customershave more preference of payment by debit / credit card in
Flipkart.comwhen compared to other modes of payment like wallet system, cash on
delivery and EMI scheme.
 Flipkart.com delivers the products to the customers within the time period as
mentioned by them.
 Flipkart.com provides free home delivery of products for more than rupees two
hundred, wishlist, pre order and forthcoming information of products, new releases
etc., to the customers.
 Flipkart.com provides a user friendly website which is easy to access by the customers
for placing an order.
 Flipkart.com offers the follow up services to the customers for the purpose of
confirming the order placed before delivering and after delivering of the final product
to the customers.
 Flipkart.com provides a safe and secured environment for the customers to shop
online.
 Flipkart.com provides Flipkart lite for mobile shopping purpose which enables the
customers to shop easily by using their mobile phone.
 Flipkart.com provides the customers with all the necessary information i.e., starting
from the summary till the installation details regarding the product for the convenience
of the customers.

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SUGGESTIONS
Social media marketing requires more diversity.
Information displayed should be clear and just.
Image-Centric Content Will Rule.
Search engine should be located on the website.

CONCLUSION
Flipkart.com uses various effective and efficient marketing techniques. The use of these
marketing techniques by Flipkart.com has made the online shopping process very simple and
has attracted many new customers. The unique techniques used by Flipkart.com such as
payment by means of wallet system, EMI scheme and other features such as wishlist, thirty
days replacement guarantee etc., has made the customers to visit and also purchase from
Flipkart.com.

It is observed that the features like reasonable prices and discounts, free home delivery of
products, follow up services etc., provided by Flipkart.com have also made the customers to
purchase from Flipkart.com very often.

It is also observed that the wide variety of products, various brands ofproducts,detailed
information about the products, the user friendly website,Flipkart lite for mobile shopping etc.,
has made the customers to have multiple options of purchasing through Flipkart.com.

Apart from the above all aspects, Flipkart.com provides the customers with a safe and secured
environment for shopping online.

Thus, to sum up in a nutshell, Flipkart.com is known as the Indian Amazon and the marketing
techniques used by Flipkart.com leads to enhancing the satisfaction level of the customers.

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Bibliography

BOOK
1. Information Note to the Press (Press Release No. 33/2013)

2. Internet Marketing (Internet Marketing Acadamy), ISBN: 978-87-7681-815-9, 1st Edition.


3. Kotler Philip, Keller and Kevin Lane, Marketing Management (14th edition), (2000
)PearsonEducation, Inc.
4. Seth Jagadeesh N and AtulParvatiyar, Customer relationship Management, (2004), Saga
publication Inc.

INTERNET

1. http://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-books-
online/1/20797.html
2. http://pages.ebay.in/ebayexplained/sell.html
3. http://website.informer.com/amizon.com
4. http://www.businessindiagroup.com/bi-about.aspx
5. www.internetworldstats.com
6. http://en.wikipedia.org/wiki/Internet_marketing
7. https://www.facebook.com/flipkart
8. http://www.yebhi.com/index.aspx?365

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STUDY ON CUSTOMER EXPECTATION FROM ON-LINE MARKETING WITH
RESPECT TO FLIPKART.COM

QUESTIONNAIRE

Dear Sir/Madam,
I would like to introduce myself as a PGDM(AIMA) student of
M.S.Ramaiah Management Institute, Bangalore and doing my
project on the Topic“Study on Customer expectation from on-
line marketing with respect to Flipkart.com”
This project is to be submitted to AIMA for the award of PGDM. Hence, I
request you to kindly spend few minutes of your valuable time in answering
this.

Name
…………………………………………………………………..

Age:- 18-25__ , 26-35__, 36-45__, 46-60__, 60 +____

Gender - MALE FEMALE

Occupation
…………………………………………………………….

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STUDY ON CUSTOMER EXPECTATION FROM ON-LINE MARKETING WITH
RESPECT TO FLIPKART.COM

1. How many times you use internet for online shopping in one
month’s period?

 ONCE
 2 TO 5TIMES
 6 TIMES AND ABOVE

2. What sites you visit for online shopping ?

 ebay.in
 Flipkart.com
 Naaptol.com
 Homeshop18.com
 Others

3. How do you know about flipkart.com?

 Television
 Print Media
 Internet Browsing
 References
 Others

4. What is your association with flipkart.com?

 Purchaser
 Visitor
 Both Purchaser and Visitor

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STUDY ON CUSTOMER EXPECTATION FROM ON-LINE MARKETING WITH
RESPECT TO FLIPKART.COM

5. What are the products you purchased from flipkart.com?

 Attributes
 Books.
 Mobiles & Accessories.
 Computers.
 Cameras.
 Gaming.
 Movies & TV shows.
 Music CDS, DVD, & Vinyl.
 TV, Video & MP3 Players.
 Personal & Health Care.
 Home & Kitchen
 Mp3 Downloads
 Others

6. How do you feel the offering of various brands of products by


Flipkart.com like other offline retail stores?

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
 No Response

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STUDY ON CUSTOMER EXPECTATION FROM ON-LINE MARKETING WITH
RESPECT TO FLIPKART.COM

7. What do say about Guarantee and Warranty policies offered at


Flipkart.com?

 Excellent
 Good
 Fair
 Poor

8. What is the purpose behind visiting Flipkart.com?

 Price
 Variety of Brands
 Discounts and Offers provided
 Others

9. What you feel about the display of price range for the products
showcased in Flipkart.com?

 Most of times
 sometimes
 Rarely
 Never

10. How do rate prices of the products offered at Flipkart.com?

 Reasonable
 Premium Price
 At a Discount

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STUDY ON CUSTOMER EXPECTATION FROM ON-LINE MARKETING WITH
RESPECT TO FLIPKART.COM

11. Do you feel reasonable discounts provided by Flipkart.com

 Yes
 No

12. What type of mode of payment you prefer to purchase products


from Flipkart.com?

 Payment by Debit / credit card


 Wallet System
 Cash on Delivery
 EMI Scheme

13. How do you rate Delivery of Products within the time period
mentioned by Flipkart.com?

 5- Highest
 4
 3
 2
 1-Lowest

14. What is your view regarding their preference in Flipkart.com?

 Wishlist (Product which you wish to purchase).


 Promotion of Flipkart.com in Face book & Twitter.
 Advertisement of Flipkart.com in Television.
 FAQ (Frequently Asked Question).

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STUDY ON CUSTOMER EXPECTATION FROM ON-LINE MARKETING WITH
RESPECT TO FLIPKART.COM

 Ratings by different users of the products.


 Recently sold Products.
 New Releases, Pre order, forth coming, Best seller’s
information of the products.
 You Tube videos for demonstration of electronic goods
 Free Home Delivery of Products purchased for more than Rs
200.

15. What is your view on the Customer Service provided by


Flipkart.com?

Customer Service Excellent Good Fair Poor No-Response


Website User
Friendliness
Service on Delivery
Service on Follow up
24*7 Services

16. How do you rate follow up service offered by Flipkart.com?

Follow up through Excellent Good Fair Poor No-Response


E-Mail
Telephone
Mobile Message

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STUDY ON CUSTOMER EXPECTATION FROM ON-LINE MARKETING WITH
RESPECT TO FLIPKART.COM

17. What is your view regarding safe and secure shopping provided
by Flipkart.com?

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

18. Are you using Flipkart lite for mobile shopping?

 Yes
 No

19. How do rate Flipkart lite for mobile shopping?

 Excellent
 Good
 Fair
 Poor

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