MARKETING PLANS AND

STRATEGIES FOR FLIPKART

Atulya Khobragade
Khushbu Kariwala
Pooja Pabahrekar
Rohit Reddy
Ronak Kapadia
Saavani Lad

INTRODUCTION
Leading e-commerce
Company in India

BOOKS

Founded in 2007 by

LIFESTYLE

FLIPKART
PAYMENT
GATEWAY
SERVICES

Sachin Bansal and Binny

Bansal

CONSUMER
GOODS

E-KART

WS RETAIL

VALUED
AT 9760
Cr.

E-COMMERCE INDUSTRY IN INDIA

Poised for rapid growth
Fastest growing
amongst Asia pacific region.

Expanding into non-metropolitan India.

WORTH

Social media and mobile technologies are accelerating

e-commerce adoption.
Large retailers are looking forward to build an online
presence.

MARKET DEMOGRAPHICS
GEOGRAPHIC:
CATERS TO TIER 1, TIER 2 AND TIER 3 CITIES
USAGE RATE:
Third largest internet user base of 124 million (10% internet penetration)
Indias mobile user base is 87.1 million and is expected to double by March 2015
.Flipkart projects its sales to reach INR 10 billion by year 2014.
On average, Flipkart sells nearly 20 products per minute and is aiming at generating a revenue
of INR 50 billion (US$1 billion) by 2015.
Flipkart has 10 million registered users; about a million visit the site every day.
The users of age 15-34 years are most susceptible to changes in purchase/consumption
behaviour.

AGE GROUP:
Youngest online demographic globally .
75% of online users between the age group of 15-34 years.

MARKET GROWTH AND TRENDS

MARKET GROWTH:
Current size of e-commerce market in India $11.2
billion
360 e-commerce portal offering services in India
(tripled since 2010)
Internet users in India is expected to grow to 376
million by 2015.
MARKET TRENDS:

SALE OF DIFFERENT PRODUCTS

CONTRIBUTION

9%
23%

TIER 1
40%

51%

TIER 2+3
RURAL

48%

ELECTRONIC
GOODS
BOOKS

29%
LIFESTYLE AND
ALLIED
PRODUCTS

S
T
R
E
N
G
T
H
S

.Industry condition: very high

potential

.Investors trust
.Services and warehousing
.Payment options
.Established brand
W
E
A
K
N
E
S
S

.Entry of international on-line

competitors in Indian market
.Customers are not comfortable with
online payment
.Not profitable operationally
.Time to build confidence among the
customers

.Middle management retention issues.

.Development of m-commerce
in the e-market
OPPORTUNITIES

.Increasing internet
penetration

.Target social medias to reach

young population
.High interest among VC/PE.

.High competition from

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

THREATS

MAJOR COMPETITORS
Amazon.com/ Amazon.in

Junglee.com.
EBay
SnapDeal
Jabong.com
Homeshop18
Yebhi.com

KEY SUCCESS FACTORS

Key success factors:

First mover advantage

Experience of E-commerce industry

Investments
Cash on delivery

Customer orientation

LOGISTICS

CURRENT ADDITIONS
Voice based search (July 2013)

2010:

We read

Online payment solution

Flipkart e-books (July 2013)
Men's wear (October 2013)

2012:
Letsbuy.c
om

2011:

ACQUISITIONS

Mime360

2011:
Chakpak.
com

Shutdown of flyte (the digital music store, june 2013

STRATEGIES
Membership cards and premium facilities.
Extended range of academic books.

Providing Sponsorships.
Vernacular language option on websites.
Better featured user interface.
Cost cutting on packaging.
Flipifts
Liquor

FLIPIFTS:-

All consumer goods, generic gift products, customized goods.

A different section for generic and customized products under flipift
Presto, customized gift manufacturer and retailer-sole provider of
customized goods
Will also be supported by IP tracking systems to enhance
repeatability.

FLIPIFTS COMPETITORS

Archies

Indiangi
ftsportal
.com

Red
moments

iFEEL

Cafepress.
com

FLIPIFTS TARGET MARKET

LIQUOR

BOTTOMS UP.COM
Initially in Mumbai and NCR
Mandatory registration
Uploading Identification proof mandatory
Minimum order of $16
RETAILER
CONFIRMS THE
AVAILABILITY OF
STOCK

ORDERS
PLACED WITH
FLIPKART

FLIPKART

RETAILERS

CUSTOMER

RETAILER
DELIVERS
ALLOCATION OF ORDERS WITH
RETAILERS

SATISFIED
CUSTOMER

SEGMENTATION
Flipkart , Flipifts.

Extension of
academic books
Vernacular language
liquor
Membership cards
sponsorship

Flipifts

TARGETING
Internet users by age
6%

3%

16%

35%

40%

Internet users by age

(source: survey)

15-24
25-34
35-44
45-54
55+

Youth population (million)

500
400

430

464

353
youth
population
(million)

300
200
100
0
2001 2011 2021

Flipkart targets mainly the youth of the country,

Web friendly people.
Target markets should include
oPeople who do not relate well with English language,

oAcademic institutions and people associated with it

oCurrent buyers

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

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

TAGLINES USED TILL DATE

Bookstore at your door

The store at your door

Jo dikhta hai wo bikta hai
No kidding, no worries
Shopping ka naya address

MARKETING MIX

Product
Price
Promotion
Place
Process
People
Physical evidence

PRODUCTS
Aims most segments except automobiles and groceries.
FICTION
ACADEMIC

LITERATURE
CHILDREN
ELECTRONIC GOODS
HOUSEHOLD ELECT.
MOBILE TECHNOLOGIES
PERIPHERALS,WELLNESS

APPARELS

ACCESSORIES

Suggested: Flipifts, bottoms up, extended range of

academic books

PRICE AND PROMOTION

PRICE:
Offers discount
E-wallet
E-gift vouchers
Suggested:
membership cards with
points facility

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

PLACE AND PROCESS

PLACE:
Inventory at 4 major
centers-Mumbai, Delhi,
Bangalore, Kolkata
Delivery services through
e-kart and postal services
Covers all tier-1 cities and
major tier-2 and tier-3
cities

PROCESS:
Cash on delivery
Debit and Credit card
transactions
Delivery time
Payzippy safe payments
Suggested: Vernacular language

PEOPLE AND PHYSICAL

EVIDENCE
PEOPLE:
Customer services
Investors

Employees

PHYSICAL EVIDENCE:
The packaging and quality of
product
Prompt delivery
30 day return policy

Suggested- Better user interface,

IP tracking for Flipifts

FINANCES
5000

Revenue In INR Cr.

2000

1000
500

4
2008-09

20
2009-10

75
2010-11

2011-2012

2012-2013

2013-14

2015

INVESTMENTS
2009: $1 million from Accel Partners
2010: $10 million from Tiger Global
2011: $20 million from Tiger Global
2012: $150 million from Naspers, Tiger Global and Accel Partners

2013: $360 million in two phases:

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

Iconiq Capital
2013, October:$160 Million from Dragoneer Investment, Morgan
Stanley, Sofina, Vulcan Capital, Tiger Global

INVESTMENTS
400
350

360

300
250
200

$million

150

150

100

50

0
2009

10
2010

20

2011

2012

2013

ESTIMATES
LIQUOR :

Liquor Iicense-20-30 lacs

(INR)

Pricing: approximately 20%

highly priced than MRP. (INR)

FLIPIFTS :
Wrapping Expense

Advertising
Earnings per 15% of cost of
the gift

THANK YOU