CHAPTER – 1

INTRODUCTION

1.1 FLIPKART

Flipkart is an Indian e-commerce company, headquartered in Bangalore, Karnataka, India, and

incorporated in Singapore as a private limited company. The company initially focused on online
book sales before expanding into other product categories such as consumer electronics, fashion,
home essentials, groceries, and lifestyle products.

The service competes primarily with Amazon's Indian subsidiary and domestic rival Snapdeal. As
of March 2017, Flipkart held a 39.5% market share of India's e-commerce industry. Flipkart has a
dominant position in the apparel segment, bolstered by its acquisition of Myntra, and was described
as being "neck and neck" with Amazon in the sale of electronics and mobile phones. Flipkart also
owns PhonePe, a mobile payments service based on the Unified Payments Interface.

In August 2018, U.S.-based retail chain Walmart acquired a 77% controlling stake in Flipkart for
US$16 billion, valuing Flipkart at around $20 billion.

History

Flipkart was founded in October 2007 by Sachin Bansal and Binny Bansal, alumni of the Indian
Institute of Technology Delhi and former Amazon employees. The company initially focused on
online book sales with country-wide shipping. Flipkart slowly grew in prominence and was
receiving 100 orders per day by 2008. In 2010, Flipkart acquired the Bangalore-based social book
discovery service.

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Acquisitions

In 2011, Flipkart acquired the digital distribution business Mime360.com and the digital content
library of the Bollywood portal Chakpak. Following this acquisition, Flipkart launched their
DRMfree online music store Flyte in 2012. Because of competition from free streaming sites, the
site was unsuccessful and shut down in June 2013.

With its eyes on India's retail market, Flipkart acquired Letsbuy, an online electronics retailer, in
2012, and Myntra, an online fashion retailer, for $280 million in May 2014. Myntra continues to
operate alongside Flipkart as a standalone subsidiary focusing on separate market segments. In
April 2015, Flipkart acquired Appiterate, a Delhi-based mobile marketing automation firm.
Flipkart stated that it would use Appiterate's technology to enhance its mobile services. In
December 2015, Flipkart purchased a minority stake in the digital mapping provider MapMyIndia.
In 2016, Flipkart acquired the online fashion retailer Jabong.com from Rocket Internet for $70
million and the UPI mobile payments start-up PhonePe. In January 2017, Flipkart made a $2
million investment in TinyStep, a parenting information start up. Flipkart invested $35 million in
Arvind Fashions Limited's newly formed subsidiary Arvind Youth Brands for a 27% stake in the
company. Arvind Youth Brands owns Flying Machine.

Flipkart Wholesale recently launched a digital platform for kiranas and MSMEs. In October 2020,
Flipkart acquired a 7.8% stake in Aditya Birla Fashion and Retail for $204 million.

Partnerships
In April 2017, eBay announced that it would sell its Indian subsidiary, eBay.in, to Flipkart and
invest $500 million in the company. While eBay suggested that the partnership would eventually
allow Flipkart to access eBay's network of international vendors, these plans never actually came
to fruition. In July 2017, Flipkart made an offer to acquire its main domestic competitor, Snapdeal,
for $700–800 million. It was rejected by Snapdeal, which was seeking at least $1 billion.
In August 2019, Flipkart entered into a partnership with Authentic Brands to license and distribute
Nautica in India.
Flipkart invested $4 million in the customer engagement and rewards platform EasyRewardz on
19 November 2019.

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Mobile retailing
In February 2014, Flipkart partnered with Motorola Mobility to be the exclusive Indian retailer of
its Moto G smartphone. Motorola also partnered with Flipkart on the Moto E, a phone targeted
primarily towards emerging markets such as India. High demand for the phone following its
midnight launch on 14 May caused the Flipkart website to crash. Flipkart subsequently held
exclusive Indian launches for other smartphones, including the Xiaomi Mi 3 in July 2014 (whose
initial release of 10,000 devices sold out in around 5 seconds), the Redmi 1S and Redmi Note in
late 2014, and Micromax's Yu Yunique 2 in 2017. Flipkart held a 51% share of all Indian
smartphone shipments in 2017, overtaking Amazon India (33%).

On 6 October 2014, in honor of the company's anniversary and the Diwali season, Flipkart held a
major sale that it promoted as "Big Billion Day". The event generated a surge of traffic, selling
$100 million worth of goods in 10 hours. The event received criticism via social media over
technical issues the site experienced during the event and stock shortages.
In October 2015, Flipkart reprised the Big Billion Day event as a multi-day event exclusive to the
Flipkart app. Flipkart bolstered its supply chain and introduced more fulfilment centres to meet
customer demand. Flipkart achieved a gross merchandise volume of $300 million during the event,
with the largest volumes coming from fashion sales and the largest value coming from mobiles. In
2017, Flipkart sold 1.3 million phones in 20 hours on 21 September in its Big Billion Days
promotion, doubling the number sold on the first day of the same event in 2016.
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In March 2015, Flipkart blocked access to its website on mobile devices and began requiring that
users download the site's mobile app instead. The following month, Myntra went further and
discontinued its website on all platforms, operating exclusively through its app. The "app-only"
model, however, proved to be unsuccessful for Myntra, reducing its sales by 10%, and its main
website was reinstated in February 2016. The experiment with Myntra led to rumour’s that Flipkart
itself would perform a similar move, but the company did not follow suit. In November 2015,
Flipkart launched a new mobile website branded as "Flipkart Lite" that provides an experience
inspired by Flipkart's app and runs in smartphone web browsers.

Acquisition by Walmart

On 4 May 2018, it was reported that the US retail chain Walmart had won a bidding war with
Amazon to acquire a majority stake in Flipkart for $15 billion. On 9 May 2018, Walmart officially
announced its intent to acquire a 77% controlling stake in Flipkart for $16 billion. Following the
purchase, Flipkart co-founder Sachin Bansal left the company. The remaining management team
now reports to Marc Lore, CEO of Walmart e-commerce US. Walmart president Doug
McMillon cited the "attractiveness" of the market, explaining that their purchase "is an opportunity
to partner with the company that is leading transformation of e-commerce in the market". Indian
traders protested against the deal, considering the deal a threat to domestic business.
In a filing with the U.S. Securities and Exchange Commission on 11 May 2018, Walmart stated
that a condition of the deal prescribed the possibility that Flipkart's current minority shareholders

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"may require Flipkart to effect an initial public offering following the fourth anniversary of the
closing of the transactions at a valuation no less than that paid by Walmart".

Following the announcement of Walmart's deal, eBay announced that it would sell its stake in
Flipkart back to the company for approximately $1.1 billion and re-launch its own Indian
operations. The company stated that "there is the huge growth potential for e-commerce in India
and significant opportunity for multiple players to succeed in India's diverse, domestic market."
Softbank Group also sold its entire 20% stake to Walmart without disclosing terms of the sale.
The acquisition was completed on 18 August 2018. Walmart also provided $2 billion in equity
funding to the company.
On 13 November 2018, Flipkart CEO Binny Bansal resigned after facing an allegation of "serious
personal misconduct". Walmart stated that "while the investigation did not find evidence to
corroborate the complainant's assertions against Binny, it did reveal other lapses in judgment,
particularly a lack of transparency, related to how Binny responded to the situation."

1.2 Flipkart USP

The USP of Flipkart is to provide the consumers with the best online shopping experience. The
company aims to provide its customers with good value and wants to be regarded as one of the
friendliest service providers in the domain.

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It is also looking to become the biggest e-commerce organization of India while retaining its focus
on serving the customers to the best of their abilities. It will also look to innovate in this domain
and try to expand its offerings so that customers have more to choose from.

1.3 House brands

Flipkart operates several house brands, including Citron (home appliances) and Digi flip (formerly
for electronics and accessories). In 2017, Flipkart launched additional house brands, including
Billion (smartphones), Smart buy (electronics accessories, effectively replacing Digi flip), and
MarQ (for large appliances, although its launch was complicated by a trademark dispute with an
existing company, Marc Enterprises).

In 2019, Flipkart began selling Nokia-brand televisions. A 55-inch, Android TV-based 4K Smart

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TV was the first product released under that licensing agreement. A 43-inch TV was unveiled on
4 June 2020.

1.4 The internet retail industry in India

The internet retailing industry grew by 34% in 2011 to $ 10 billion with investments of about $
900 million over last year. It is expected to grow at a compounded rate of 39% over the next 5
years. Online retail account for less than 1% of the total retail market in India (compared to about
5% in the US), and thus, presents a huge growth potential for international retailers. Internet
retailing in India mainly focuses on non-grocery products such as consumer electronics, media
products, sports equipment, consumer appliances and books; products that do not require extensive
touch and feel. Books and gifts, however are the largest contributors. Several Internet retailing
players are providing much cheaper prices compared with store-based retailers, which is attracting
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consumers in India. High discounts are primarily driving adoption while gaining the trust of
consumers through fraud proof options such as cash-on-delivery. Investments in logistics and
infrastructure and support by third party companies have led to ever expanding reach. It is evident
that Internet prices are projected to be more competitive than any other retailers in India.

Most Internet retailers offer services, such as flexible payment methods, warranties for electronic
goods and free home delivery. The prices from several players are very competitive with all e-
retailing players offering good deals on a variety of products in order to attract customers. Players
with a wide variety of products have managed to gain the most value sales. Internet retailing in
India is segmented under different formats, including vertical shopping, whereby the manufacturer
is also the retailer, multi-product Internet retailers, such as Future bazaar, Shoppers Stop and
comparison shopping. International companies were not allowed in India up to 2010 as the
government put a ban on FDI in multi-brand retailing. However, in 2011 the ban was liberalized
and over the forecast period some of the major players, including Amazon.com, are expected to
enter the Indian e-retailing environment.
The industry, however, faces many challenges. The foremost being high customer acquisition cost
(~Rs 1,500) and small basket size. Repeat purchases are essential to recover acquisition spending.
Companies tend to hold extensive inventory of up to 3 months in-order to get discounts from their
suppliers, this requires substantial investment. In-house logistics require further investment and
third parties are operationally expensive - delivery costs 5-10% of the product value. Internet
retailers are 'burning cash to fuel growth', offering discounts deeper than their pockets and
spending heavily on advertising and marketing.
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 About Flipkart.com

Founded in 2007 by two IIT Delhi graduates, Flipkart.com is today India’s largest online shopping
website. The etymology of the website lies in the fact that the founders, Sachin and Binny Bansal
envisioned it to be an online store for books – hence the „flip’ suggests the flipping of the pages
of a book while the kart’ is derived from the shopping cart’.
It has been cited as a success story in the domain of online retail – a sphere generally dubbed as
impossible to succeed in India. Started with an investment of Rs. 4 lakhs by the founders
themselves. Flipkart has grown exponentially in the last 5 years. This year they are expected to
reach Rs 2500 crore in annual revenues at a y-o-y growth rate of 400%.

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Fig 1 – Comparison of percentage of shoppers (globally) visiting Flipkart visit’s competitor sites
– Infibeam.com, homeshop18.com, indiaplaza.com and myntra.com.
But managing expansion at such break-neck speed is not an easy task. There are several questions
raised about Flipkart’s profitability figures and core competence of „delighting’ customers. In fact,
Flipkart’s philosophy is so closely tied to ensuring customer delight that profitability often takes a
back-seat. It is a strategy that has enabled them to gain lion’s share of the online retail market –
but their operations need to be studied in greater detail to understand if the company really has a
sustainable future.
While there have been multiple questions raised about creative accounting techniques and other
apparent financial irregularities on Flipkart’s books, in this report I will concentrate primarily on
the operations side of Flipkart’s business.
From an operations point of view, one of the fascinating things about Flipkart’s growth has been
the increase in number of SKUs and different categories that they now handle. While there are
several specialized online retailers like myntra.com or letsbuy.com (recently acquired by Flipkart)
who specialized in apparel or consumer electronics respectively, Flipkart handles more than 14
categories of products. Increased number of categories complicates the entire supply chain design
and this is something that has been studied in the latter half of this report.

1.5 Company Structure

The entire organizational structure of Flipkart is organized in three broad teams as depicted below.

Product and technology Business development Operations

• Website management • Vendor management • Procurement
• ERP system • Sales management • Warehouse
• Pricing strategies • Logistics
• Customer support

Product and Technology Team

The product and technology team are the core strength of the company. The team is responsible
for the management of the website as well as the ERP system. It has developed a state of art system
in-house using open-source software. Website is a backbone of any online retail shop and

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Flipkart’s website is also managed by this team only. The team manage the entire process right
from listing of item to search engine optimization.
Business Development Team
Business development team is responsible for all the activities related to sales including vendor
management to pricing and discount strategy.
Operations Team
Operations team deals with all the supply chain aspects of the company right from procurement
and warehouse management till customer support. The team support the customers both online via
telephone as well as offline via email.

Customer Support team

Flipkart has a strong focus on customer service with customer delight as the top most priority. And
to fulfil it the company guarantees a 24/7 full customer support and to cater this facility it has a
dedicated customer support team which offers both inbound and outbound support. There are two
prime responsibilities of support team:
o Website Guidance: The team basically provide guidance to new users of the website on
how to navigate through it. It also handles order processing functions like order verification calls,
payment related queries etc.
o Resolution of Issues: This includes intimation to customer about issues such as any delay
in delivery as well as resolution of complaints both pre-purchase and post purchase.

Logistics
Logistics is one of the most important facets of any successful ecommerce venture. Flipkart ships
more than 30000 items a day which makes management of the logistics a cumbersome task for the
company. Furthermore, the cost of the delivery is born by the company itself making logistics a
financially complex issue also. Hence in order to successfully manage logistics Flipkart uses its
in-house logistics (FKL) as well as third party logistics (3PL) services. While more than 90% of
the Cash on delivery (COD0 shipments and about 60-70% of the overall shipments are delivered
by the FKL the rest of shipments are catered by 3PL service providers. Moreover, if there are more
than 100 deliveries for a particular destination the company uses FKL. In case of FKL, the
shipment is first transported to Mother hub and then to delivery hub and subsequently from
delivery hub the last mile delivery is done using suitable mode of transport such as two-wheelers,
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bicycles, or on foot. The company has tie-ups with more than 15 courier companies like Blue Dart,
First Flight etc. to deliver their products and Indian post for areas where courier do not reach and
to manage the 3PL providers efficiently the company allocates time slots to different logistics
partners and they can pick up deliveries on specified time slots only.
For delivering the items the logistics service among the three is decided based on the area where
the item needs to be delivered as well as product type and payment method. FKL is presently
available in major tier 1 cities including metros only. The company uses India Post only in case if
the shipment location is not serviced by any of the 3PL as well as FKL primarily because of the
higher delivery time. Moreover, India Post orders are of prepaid nature only. The delivery time
varies between 3 days to 3 weeks depending on the location and availability of the product. For
example, imported products take about 3 weeks’ time to get delivered to the customers whereas if
product is available in local warehouse, it gets deliver within 3 days. The mode of transportation
is also dependent on the location. For example, the inter-city, trans-zone deliveries are made using
air cargo whereas satellite cities and others in close proximity; products are transported overnight
by train or truck. For the local parts of the cities where the warehouses of the company exist
products are delivered using two-wheelers, bicycles, or on foot depending upon the proximity of
the place.

1.6 Reverse logistics / returns processing

The returns for Flipkart are 2.6%. If follows a 30 days return policy. This policy which is primarily
aimed to build trust with the consumers, has led to many customers duping Flipkart. For example,
there have been several incidents when a customer buys a book only to read it and then return it
within 30 days. Similar incidents have been observed with mobile phones as well. Flipkart, through
its data management systems, has tried to identify such frauds.
Return of a product to Flipkart can happen if the 3rd party cannot deliver to the address or the
customer does not accept the product. Some orders are cancelled while the delivery is being
processes by the courier company. Such order is not recalled but delivered to the address and then
cancelled. Customers can call the customer support and courier back the product to Flipkart. The
delivery cost is borne by Flipkart.
When a customer requests return of a product, there are 3 paths this request can take:

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1. Replacement: Flipkart returns the product to the supplier and obtains a replacement that is
delivered to the customer.
2. Store credit: If the customer is not satisfied with the product, he or she is given store credit
of the same amount.

3. Actual cash-back: Given out as cash for cash-on-delivery payment or refunded for online
payment.

Procurement
When Flipkart started its operations, they had employed the consignment model of procurement.
In this model, the retailer (in this case Flipkart) holds the inventory owned by the supplier, and
buys it from the supplier only when it is sold to the end consumer. Since the channel was new and
unproven, this was the most risk-free way to operate. However, they have now discontinued this
now and inventory now is purchased.

Procurement of items could be for:

(a) Inventory: These items are pre-ordered based on previous sales data to stock as inventory.
This category includes items with relatively low demand elasticity, fast selling items and items
with relatively long shelf life.
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(b) Just in-time: Items procured just-in-time are used to serve immediate outstanding orders.
Items with low or unpredictable demand are typically procured on an order-to-order basis. Just-in-
time procurement is also used for expensive items or products that have seen slow sales growth.

As of now, the number of orders served from the inventory is roughly 75%, with 25% orders being
served by procuring just-in-time. Procuring just-in-time is comparatively more expensive as the
volumes for such orders are low, and the supplier discount offered therefore is considerably lower.
However, when ordering for inventory, bulk purchase is made and hence a much better price is
realized. Therefore, the company would ideally like to move to a ratio of 9:1 ratio of orders served
through inventory to those procured just-in-time.
As a caveat however, there is an inherent trade-off between the company’s long-term objective of
reducing just-in-time procurement, and its motto of ‘Consumer Delight’. This is because in order
to maximize consumer delight, the company would have to strive to serve all types of consumer
orders and provide them with the maximum possible variety of products, which would require just-
in-time procurement since many products have limited demand and cannot be stored.

as inventory. However, operational efficiency demands rationalization of product line and

choosing one’s customers.
Sourcing at Flipkart is conducted at two levels:

(a) Regional: By Regional Procurement Teams

(b) Centre: By the Central Procurement Team

Each regional procurement team has a network of local suppliers for made-to-stock as well as on
on-demand (Just in-time) procurement. They also have visibility of the stock for different SKUs
with these suppliers, as last updated on the procurement team’s system by these suppliers. From
Flipkart’s perspective:
Stock out: Defined as when the product is unavailable in the inventory (held in warehouses) as
well as Flipkart’s suppliers (as last updated)
The central procurement team has visibility of all the regional procurement teams’ views, and
therefore can monitor the stock levels for their suppliers all over the country. The central team’s
focus is on bigger suppliers with a country-wide reach.

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1.7 Flipkart’s Warehouse Management System

Flipkart has 7 major warehouses spread across the country in Mumbai, Kolkata, Delhi, Noida,
Pune, Chennai and Bangalore. They have smaller regional distribution centres at over 500 locations
spread across Tier I and high-volume Tier II cities.
In Flipkart’s Warehouse Management System (WMS), there are three major segments namely,
Inward Processing, Storage Management and Outward Processing. Discussed below are the some
of the details regarding each of the sub-processes involved in the WMS.

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Inward Processing
1. Physical in-warding: This is the area where physical delivery of goods from suppliers to
the warehouse is taken.

2. Quality Check + Scan: As soon as the goods are received, they go through an initial quality
check at this stage. After this, they are scanned to make an electronic entry to record the input of
goods into the warehouse on the IT systems. This step of quality check is also undertaken at the
supplier’s premises depending on the contract that Flipkart has with them.

3. Pre-packing of products: At this stage, an initial packing of each of the products is done.
This pre-packing varies according to product. For instance, a book-mark and think transparent film
packing will be done for a book. Similarly, if there is a freebie attached to a product, then the two
products will be packed together.

Storage Management
1. Put-list generation: When the input of all products is done on the IT systems, a system
generated list of shelves corresponding to the products is generated to facilitate placement of
products on shelves. This is called Put-list generation, which marks the place where the respective
items need to be put.

2. Order pending check: As soon as the system gets the input of the incoming products,
system checks if any of the orders for the incoming products are pending or not. If orders are
pending, the respective product is sent directly to the Final Packaging Area for Outward
Processing.

3. Physical placement on shelves: Based on the Put-list, the products are placed on the
respective shelves. If the marked shelves are not empty, the product is put on an empty shelf, and
the respective shelf number is updated on the Put-list.
4. Closing Put-list: Once the product placement is done, Put-list is updated with the actual
placement information and the list is Closed.

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Outward Processing
1. Pick-list generation: Based on the orders to be delivered for the day, a Pick-list is generated
by the IT system.

2. Pick-up from shelves: The respective products from the Pick-list are picked up from the
shelves as per the IT system entries and gathered together to move towards Final Packaging Area.

3. Final packaging: The picked-up products are packed in Flipkart-branded boxes. At this
stage, packaging is done according to the Category of the product, e.g., electronic items are packed
differently from stationery.

4. Placement in respective delivery hubs’ bags: After the final packaging, a product is placed
in a specific bag which is dedicated for that destination area delivery hub. These bags are
dispatched to their respective delivery hubs on a fixed timing during the day.

Some issues identified at the Warehouse Management level:

1. All the scans while conducting inward processing for each of the products are done manually.
There is some scope of automation at this stage.

2. Due to packaging litter, there emerge chances of difficulty in mobility within the warehouse.
Disposal of packing material may be addressed for better streamlining and ease of mobility.

3. Currently, there are separate sections for separate categories in the storage area, e.g., in the
Bangalore warehouse, a whole floor is dedicated to books, while the other floor is dedicated to
other categories. With the increase in the number of SKUs that Flipkart is undertaking for sale,
the
Warehouse management system’s complexity will increase and its scalability in the current form
might come under question. Hence, pre-emptive efforts may be made to make sure that the systems
and processes are scalable based on increasing variety and quantity of SKUs handled.

Order Processing
Flipkart uses its own ERP systems to process orders and track the details of all the transactions that
need to be carried out. A typical order at Flipkart starts with the customer searching, selecting the
required item and placing the order. This on an overage takes around 8-10 clicks to get the order

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placed. The email Id is considered to be the unique identification of a customer and all the records
are maintained with reference to this Id.
The payment can be made by using debit card, debit card, Net banking or COD (Cash on Delivery).
The payment gateway used is powered by CC Avenue. Flipkart is working to have its own payment
gateway which has not been possible so far because hosting a payment gateway requires fulfilment
of Payment Card Industry Data Security Standards (PCI DSS).

Order Fulfilment
Customer orders are fulfilled either via Inventory or JIT procurement depending upon the
availability of the products.

1. As soon as the order is placed and approved, there is an inventory check done at the local
warehouse. If the item is not found at the local warehouse, then the order goes to the nearest and
then other warehouses. The product is then packaged and delivered to the customer.
2. If the item is not found in the inventory it is forwarded to the Regional Procurement Team
(RPT) for JIT procurement from local vendors. If yet not possible, the order goes to the central
procurement team (CPT)for the last option of procurement. After procuring from the vendor, the
product is packaged and delivered to the customer via the most convenient warehouse. They have
an understanding with their vendors for order tracking, reconciliation and MIS (Management
Information Systems).
As and when the item is found, it is packaged then and there and shipped to the customer via either
courier, Indian post or its own internal logistics arm depending upon the area where the item need
to be delivered. The customer is kept updated on the status of his shipment via message, email
and/or through website. An item is labelled out of stock only if it is not neither present in the
warehouses nor with the vendors.
Flipkart, with its focus on customer delight, ensures an excellent after-sales service to its customers
with regard to the delivery and/or addressing grievances related to any faulty or unsatisfactory
products. The return of such items is done in an effective manner without any disputes. This is
possible given the understanding with the vendors. For example, in case of electronics, warranty
and after-sales service is largely manufacturer’s responsibility. Whenever required, Flipkart
facilitates a smooth interaction between the customer and manufacturer/service centre.

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Flipkart has fared very well in terms of the delivery time. It varies between less than 24 hours and
3 weeks depending on the location and availability of the product. On an average the delivery time
is 3-4 days with a typical breakup as follows:
1 day for order processing

2 days for delivery

1 day as buffer

Inventory Management
The inventory stocks are replenished whenever it goes below Reorder point. In order to decide on
reorder point and demand forecasting of each SKU, the company employs Holt’s forecasting
method. Holt’s method is useful in cases where linear trends are present and requires separate

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smoothing constants for slope and intercept. The forecasted demand used at Flipkart using Holt’s
method is based on historic trend and seasonality in not accounted.
The company employs FIFO (First-In First Out) method for its inventory management, under
which for any shipment request to a particular warehouse the oldest inventory items are shipped
first. This makes a lot of sense especially for the electronics items since the technology becomes
obsolete very quickly.
With respect to determining what items to store in the warehouse and what items to be procured
from vendors, Flipkart uses Long Tail Concept, which is nothing but selling a large number of
unique items with relatively small quantities. Flipkart orders such items on ad-hoc basis and
usually don’t keep inventory of such items since the demand for such items is very less and thereby
minimizing overall distribution and inventory costs.

Supplier Management
Flipkart has always operated on the philosophy of starting out small and then scaling up as demand
grows. It has been the same with selection of suppliers. For a new category, they generally start of
by sourcing from local suppliers and distributors. Once there is enough demand generated, they
approach the larger wholesalers or manufacturers directly. This serves two main purposes:

1. It helps them to get better deals from the bigger manufacturers if they can order in larger
quantities frequently enough.

2. It avoids the channel conflict dilemma that large suppliers face when they agree to similar
terms with a smaller volume online player like Flipkart as compared to an established offline
distributor.

An example of this strategy mentioned by Pawan Raghuveer, Mgr. Flipkart Supply Chain
Excellence Division, is that given that Flipkart is now India’s largest online retailer of books and
they are larger than many offline stores as well – most of Flipkart’s books are sourced directly
from publishers.
Across product categories, Flipkart works with over 500 suppliers including several international
suppliers as well. Flipkart’s steady rate of growth has allowed them to get the best credit lines from

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their suppliers. They signed their first international supplier deal with Ingram Books in 2008 and
they prefer working with them due to high level of predictability.

In fact, considering that customer delight is Flipkart’s primary motto, any delay in supply can lead
to late deliveries to the end-customer. So, Flipkart follows a grading system of its suppliers based
on their fill-rate performance. Suppliers are grouped into A, B and C grades based on their past
performance.

There are several other secondary considerations while placing an order with a supplier:

1. Price considerations – As mentioned before – credit lines and discount terms play an
important part in selecting suppliers.

2. Quality Check contract – Depends on whether QC will be done at supplier’s place and then
product will be shipped to Flipkart’s warehouses or if the QC has to be done at Flipkart’s
warehouses.

3. Percentages of Returns Accepted – Higher the percentage of returns accepted by a supplier,

the better for Flipkart.

Customer Support
Customer Support function for an e-commerce website is one of the most important touch-points
for the business in terms of building trust, customer acquisition and maintaining customer loyalty.
Flipkart’s Customer Support team consists of call-centre agents who handle in-bound and
outbound calls and also a team that handles e-mail queries. The entire team is based out of
Bangalore and forms a core part of Flipkart’s 6,000-strong employee base. Given that Flipkart tries
to differentiate itself on superior shopping experience and customer service is an integral part of
that – Flipkart prefers to train its own support staff rather than outsourcing the function to a BPO
agency.
At present, a customer calls due to one of the below reasons:
1. Sales Assistance
2. General Enquiries

3. Product/Shipping related enquiry

22
One of the major reasons for these calls is Indian consumers poor familiarity with online shopping
protocols. It is important to note that Flipkart tries to ensure that any order is placed within 6 clicks
on the website.
There is also an outbound call-centre that performs the following tasks:
1. Pro-actively inform customers about any delay in deliveries.

2. Pro-actively check the status of refunds or returns.

3. Inform the user in case any delivery has not been successful due to the customer not being
present at his address.

Despite all the good intentions of Flipkart in providing high-quality customer service, there are
several internet blogs that suggest that their service quality has dipped in the last year or so.7 A
major reason for this could be the growth in number of customer service executives’ not keeping
pace with the increase in business volume. There could also be a problem of increased complexity
in query handling due to increase in number of SKUs and product categories that would demand
more rigorous training for the support staff.

INDUSTRY PROFILE:

In India, huge population using internet for shopping e-business in rapid developing areas of India's
Ordinal Economy. Creator in trade internet-based business. The Flipkart as of late reporting that it
touched $ 1 Billion in transactions initial previous year, this improvement has directed numerous
little online based business institutions cross-country to gather a bit of the online e-following
activity.

One of the innovators of the Indian IT Commerce, Mr. Narayan Murthy as of late reported that he
may would band together through Amazon India to communication a mutual dare in order to make
another e-commerce entity for the Indian Marketplace.

E-Commerce Market in India

E-commerce is the rapidly growing markets in China, India and Indonesia, Asia's economy is
gaining drive globally. The size of e-commerce in India estimated at Rs.57830cr and growing
FY13 44.1% (FY08-13) A CAGR.

23
internetworldstats.com - according to the number of users through the Internet on July 1, 2012, on
the 4th of the top 20 countries ranked after China and the USA. E-commerce industry, primarily
for industry and commerce for e-Retail's segment of transactions accounted for 69% of the traffic
is controlled by traffic stands at nearly 11.9%.

Despite the hearty growth, e-commerce industry is a significant undertaking ongoing as a new first-
time business persons are still in a emerging stage. E-commerce industry is very different in
developed and developing countries with little Internet penetration delays the reason, mainly
because of improper infrastructure (approximately 1.7% of total retail e-commerce valued for
6.1% of Vis in the US).

E-Commerce in India: Evolving Models

B2B (market share 90%) and B2C remaining 10% of the Indian e-commerce business consists of
2 main business prototypes. India and China, unlike the USA, the USA stock-based / autonomous,
follows the prototypical of 'market model' is unique. Marketplace 'type of functions related to their
goods and the entity gains well the marketing for manufacturers / sellers (especially MSMEs)
affords a platform to a huge number of sellers of goods and services of the Commission. B2B B2C
model, while all other players have goods trade, do not carry stock. FDI in India is currently
restricted to B2C model.

E-Retailing Key Drivers

Due to shortage of time, as well as the convenience of being attracted into more and who rushed
the use of plastic money in today's customer, particularly in the town and semi-urban India, all
done in a way that leads to more online shopping. Also, favourable demographic outline & mortar
model of limited geographical range of the penetration of smartphones have increased, Internet
Charges in the e-drop, declining to offer further growth in the market.

Indian Ecommerce: Growing restrictions

The major challenge is to get a direct connection to the customer's e-retailing with disabilities.
Moreover, apart from distribution, in many languages, and is being accomplished by the players
to build internal logistics enforcement issues are being balanced by a lower Internet penetration in
cash, less debit cards / credit cards, such as nearly of the tests faced by the companies. Though the

24
technology support for e-retailers to help, an attempt is made to fill this gap. In addition, other
challenges are emerging in current resource chain management. Forming the heart of the e-retailer
association management answer with improved safety schemes. The inflow of foreign wealth is to
build the infrastructure for next logical step in.

1.8 COMPANY PROFILE

Flipkart, Schain Bansal and the Binney Bansal, an e-commerce business was established in 2007
whose headquarters are located, acts, especially in India. Flipkart tablets, USBs, including the
goods and laptop bags ‘DigiFlip’ released under the name of its own product range. Flipkart brand
‘Citron’ and Apparels brand ‘Flip’ under the personal care and home appliances under the scope
of its own.

On May 2015, Flipkart DST Global expected $ 310 million and $ 2 billion from current investors
Tiger Global in July and led the South African media group Naspers raised. Flipkart in December
last investment round of $ 12 billion in its assessment

History
Flipkart (the Company), Schain Bansal and Binney Bansal, Indian Institute of Technology was
established in 2007 by alumni of both. Amazon worked with in the past. Flipkart Online Services
Professional in October 2008 and formally combined as a business ltd.

In their initial existences, the only books on Flipkart, expanded it as soon as electric goods, mid-
air conditioners, air chillers, stationery provisions and lifestyle goods and other products have
ongoing to offer e-books. Leaving Microsoft to sell them the first product purchased in Andhra
Pradesh VVK Moon World.

Flipkart is now had more than 16000 employees. Flipkart such as delivery, conveyance, cash, credit
or debit card, net banking, cash wallet transactions, e-gift voucher and card swipe allows you to
Reward devices.

Acquisitions

• 2010: We Read, a social book revelation apparatus.

• 2011: Mime360, an electronic content stage group.

25
• 2011: Chakpak.com a Bollywood newscast site that proposals refreshes, photos and copies.
Flipkart found the rights to Champak’s advanced directory which joins 40,000 filmographies,
20,000 motion pictures and near 50,000 appraisals. Flipkart has totally said that it won't be
included with the first site and won't use the product name.

• 2012: Letsbuy.com, an Indian e-retailer in hardware. Flipkart has purchased the organization for
about US$25 million

• 2014: Attained Myntra.com in a predictable 20 billion bargain.

Finance

In beginning, the originators of the 500000 who had spent just a business to set up a website. After
Flipkart Ace India has raised funding from venture capital funds. On 23 September 2012, Flipkart
MIH (Naspers was part of a group) ICONIQ Principal for $ 170 million funding announced the
completion of the 5th round. The company Tiger Global, Naspers, Accel Partners and current
investors including Pacific Capital has raised an additional $ 330 million announced on 20 June
2013.

Flipkart for sales in Fiscal year 2010-2011 financial year 2009-2010 and Fiscal Year 2008-2009 to
850 million, 260 million, 50 million was reported. In FY 2011-2012, the country's growing internet
usage Flipkart 7 billion (US $ 200 million) aimed at the top is set and people are adapted to making
online purchases. Flipkart sells products in more than 10 minutes in 2015 to 50 billion (US $ 0.81
billion), is aimed at creating income, the public sale to spread 12 billion by the 2014, the normal
projected.

In November 2012, a foreign exchange management companies such as Flipkart Act, 1999, to
investigate the alleged breach in terms of FDI

291cr in FY 2012-13, recording a loss of Flipkart of $ 172million in private equity fund from
investors.

In the September 2013, it was the contribution of new investors Dragomir Flipkart current investors
Tiger Global Venture Group, Morgan Stanley Wealth Organization, Sofina SA and Vulcan Inc.
reported that it had raised an extra $ 172 million.

26
At the end of June 2014, which is expected at the 2016 US list of Flipkart, was expected to be in
talks to increase at least $ 600 million.

In 1 August 2014, Flipkart Tiger Global Management LLC, Accel Partners and Morgan Stanley
Investment Organization and the Singapore independent prosperity fund GIC has increased from
$ 1 billion announced.

‘Big Billion Day’ in e-commerce is history created by reproachful but loyal customer service to
their hard-win reputation grieved its sale of technical problems, and pricing and items availability,
disappointed customers of social media are placed angry Comments.

It is 7:55 am selling the discounted price of Rs 6 lakh mobile handsets with a big opening hour,
five lakhs and 27,000 sets of textiles and footwear selling them. In November 2014, the amount
earned $ 750 million, Flipkart had a marketplace cap of $ 12 or Rs.66000 crores.

In December 2014, India's below the long-term planned investments of investors of the number
beyond Flipkart raised up by 50 dollars to 700 million funds of 700 million dollars, raising a public
limited company to raise with Singapore-based companies, regulatory Acra with filing an
application, publicized new depositors involved - Baillie Gifford, Greenbacks Capital, Stead view
Capital T. Rowe ago Le Connections and the Qatar Investment Authority the company's board. Its
existing investors, DST Global, GIC, ICONIQ Capital and Tiger Global participated in this latest
backing overweight.

VISION, MISSION AND GOALS:

Vision:
To become the Amazon of India.
Mission:
Providing a pleasant customer experience.
Goals:
Creation books easily obtainable to anyone who has admission to internet.

1.9 PRODUCT AND SERVICES:

• • Flipkart introduced its own range of tablet, mobile phones and Phablet. DigiFlip Pro XT
712 Tablet.

27
• • In June 2014 Flipkart realized its first systems administration switch, under its own brand
name named DigiFlip WR0001 300 Mbit/s Wireless N Router.

• • In October 2014 Flipkart increased home devices and individual human services mark
Citron. The mark contains an extensive diversity of cooking utilities and prepping
materials.

1.10 AREAS OF OPERATION:

In October and November 2011, the company attained the places Mime360.com and
Chaakpak.com. Later, in February, the society uncovered its new Flite Numerical Music Store.
Flyte, a good music download benefit in the vein of iTunes and Amazon.com, offered without drm
MP3 downloads. Be that as it may, it was closed on 17 July 2013 as salaried melody copies were
not popular in India because of the approach of free music dropping destinations.

1.11 INFRASTRUCTURAL FACILITY

• Flipkart provides its own tablet for each worker till end of trip.

• Flipkart provides vehicle and fuel compensation for field working delegates.

COMPETITORS INFORMATION:
AMAZON:
Amazon, is an American Online trade and single computing group that was recognized on July 5,
1994, by Jeff Bezos and is located in Seattle, Washington. It is the main e-based shop on the world
by collective deals and market capitalization.

SNAPDEAL:
Snapdeal is an Indian online(e) business organization located in New Delhi, India the group was
begun by Kunal Bhal, a Wharton graduate as a main aspect of the double degree M&T Engineering
and Business package at Penn, and Rohit Bansal, a previous student of IIT Delhi in February 2010.

1.12 SWOT ANALYSIS OF THE COMPANY

Strength

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 • Largest E-commerce business of India.

• Acquisition of Letsbuy.co, chapak.com, weread.com, Mine 360 and Myntra on 2014.

• Flipkart has its own logistics.

• Planned securing.

• Assured quality, wide variety of choices of different categories.

Weakness
• Late conveyance

• Limited area access, many Sub urban and towns are not covered.

• IT foundation.

Opportunity:
• Growth in retail industry

• Great opportunity to expand its business.

• Indian customers are attracting towards online shopping.

• Development in digital volume.

• Cell phone application

Threats:

• Technology overhauled by contenders.

• More number of new entrants.

• Huge competition from its competitor.

29
FUTURE GROWTH PROSPECT:
The entry of Amazon in India, affected Flipkart to renovate and expand its business to face the
competition and to sustain its market size. Flipkart’s future prospect is to increase the size of its
business operations. It had planned to get 10- 12000 sellers under them in few years. By acquiring
Myntra, Flipkart owns 50% of market in lifestyle in India and it is planning to increase it to 70%.
Now it has more than 10000 sellers and its need to increase it to 10000- 15000 within a year and
to few lakhs in 4-5 years. 40% of online traffic of Flipkart’s coming from mobiles. Hence it is
planning to add some more specifications and feature for mobile shopping app to increase buyer’s
satisfaction and loyalty.
Flipkart is trying to improve its IT infrastructure as e-business is mainly depends on technology. It
is planning to customize its IT framework to perform 2 functionalities, one is ability to guide,
motivate, influence the customers what other product can be purchased complement a product that
already purchased form Flipkart and other one is to conduct live survey to find the customer buying
pattern and preferences.
Flipkart is also planning to have its own logistics to reduce its cost and dependability on others. It
launched its own digital accessories brand DigiFlip and its clothing brand Flipped and to analyse
how it performs in the market. Flipkart is planning to get access to more number sub urban, and
towns, cities for this it is increasing its warehouse and increased automation in its supply chain
management. Flipkart also want to increase its variety of categories of products in its domain and
fill the gap in existing category.

30
Chapter 2 THEORETICAL BACKGROUND OF THE STUDY
THEORETICAL BACKGROUND:
2.1 INTRODUCTION ABOUT MARKETING STRATEGY
The goals and objectives of its marketing contribution. On the extra pointer, administration
is concentrated on the application of the particular goals of marketing. ‘Marketing strategy
Marketing objective or mission should be clear. For example, if a goal is possibly a particular
niche market may become the leader; With a mission to ‘serve clients, honour and self-
respect’ might be something along the lines of; Strategy The market is in fluctuation. The
initial market is likely to be a developed organization will have a diverse strategy. Maps in
general, contains attention to measure growth and if problems arise, to prepare for
possibilities. One can also start his personal business marketing strategy to write.
Inventors are often the most prominent innovation of the market is called to open a new
market-based client. They focused on the progress of this product, as well as the greatest
number of cases, educations have shown that initial applicants - or innovators. All of the
above enters the market after serious market-share benefits. Innovators in the first-mover
benefit, and this gain, the business' They must precaution that at least one or more of the
three primary bases: Technological leadership, a change in the cost of the purchaser's assets
or means of getting advantage through technology leadership in both the research and
development of Anticipation, or ‘learning curve’. This is because of new business or introduce a
product to sell to the primary research lets us to use a significant feature of the research and
development stage. Pre-emption assets formed by the new technology first-mover rather than the
current assets to be able to have the chance to get an advantage by obtaining assets in a certain
market can help is shortage. He used the chance to existing information, and a decreased risk of
entering a new market in the first. The first player, then the competitors compared to the high cost
of transferring is easy to prevent. For example, purchasers can enter the distance from the initial
of the entrants will have to finance in order to promote a more cost-effective. However, the market
innovators ‘the most involved in product development,’ and to have a first-mover benefit can
reduce the cost of transferring, it's an expensive imitation of the goods due to product innovation
may include more cost. Innovators in the case of buyer goods and industrial markets, which both
received ‘important sales advantage,’ The great drawback are that it is good to incur the cost of the
Internet, which has recently become a significant ingredient in a fast and rapid lifestyle is also a

31
reason. Research is to be communicate with public or authorized purposes, 'Internet' for all centre
-spot. Resultantly, the development of the E-trade, CK Prahalad, Professor, Business School,
University of investigations of a number of companies on the edge of a reasonable price for such
a low that purchasers can purchase goods and to demand more on the Internet, has led to a host of
new developments mechanism.
Internet 'where there is a valid reason, or by being the first ‘if (markets) and big corporations'
traditional business because it means transfer, he said. The world will be observing the impact of
competitive markets, the markets are fully effective division of resources is that it produces. The
Internet really has been an effective agent in varying the basic ways of doing business. No entry
restrictions to any market - Net, the constant arrival of competition, driving amounts down
automatically One of them is costly. In such a case, in the long run all companies could gain an
expected profit.
Internet business (or e-commerce) covers all business directed through computer networks. In
recent years, the growth of telecommunications and computer skills has made computer networks
an important part of the fund a mental of the economy. More and more corporations are shortening
the dealings over the net. All owners of computer connected to the Web so there is a huge
competition for targeted scans.

ELOBRATIVE INFORMATION ON TOPIC:

An inclusive plan that combines all of an organization's strategy and its marketing objectives. A
good marketing strategy to attain the determined benefit of the business and the right product mix
in order to sustain market research and concentration on the measures taken on them. Marketing
policy is the basic work of promotional plan.
Being a Developer in the market than can be the case, depending on the market benefits for
entrepreneurs and / or attracts investors. If there is an assistance possible and the ability to have a
steady marketplace share, many trades will start to shadow these innovators. This is often
mentioned to the close followers. Innovators in this market entrants will also provide the market
can be seen as participants to the followers of late. After the early followers of the entrants are
more likely to invest extra in product study and expansion, due to the quantity. By doing this, thus
causing the aforementioned product growth and extension, businesses will allow you to find the
defects in the finished product. Therefore, it is essential to marketing achievement, customer
32
preference, can lead to. By having a varied technique, which market their unique selling point
compared to those Innovators who perhaps target different audiences allows you to make
followers. Following the opening of the market in general as ‘a risk or a precise sector of the
supporting assets’ that have a created business' product can be encouraged.
Being a Developer in the market than can be the case, depending on the market benefits for
entrepreneurs and / or attracts investors. If there is an assistance possible and the ability to have a
steady marketplace share, many trades will start to shadow these innovators. This is often
mentioned to the close followers. Innovators in this market entrants will also provide the market
can be seen as participants to the followers of late. After the early followers of the entrants are
more likely to invest extra in product study and expansion, due to the quantity. By doing this, thus
causing the aforementioned product growth and extension, businesses will allow you to find the
defects in the finished product. Therefore, it is essential to marketing achievement, customer
preference, can lead to. By having a varied technique, which market their unique selling point
compared to those Innovators who perhaps target different audiences allows you to make
followers. Following the opening of the market in general as ‘a risk or a precise sector of the
supporting assets’ that have a created business' product can be encouraged. in spite of the player
at the time - in business less any benefits, possibly missing out on a significant opportunity to gain.
E-commerce may be vast business Furthermore is getting greater consistent. Business-to consumer
(B2C) e-commerce deals overall to 2015 will methodology $ 3. 5 trillion done 2013, approximately
A 22% build for e-business report card of the Growth about e-commerce categories, yet fluctuation
is made equivalent. The most popular e-commerce categories are expected, the no consumable
durables and entertainment related goods. Other segments of the growing importance of online
shopping, e-books, event tickets to sporting goods and toys (to name a few) are comprised.
Payments intentions for each of the double-digit or near double-digit percentage point since 2011,
rates have risen.

2.2 Market Size and Growth:

India's e-commerce showcases on 2010 might have been more or less $ 4. 6 billion, for 2013 it
went dependent upon $ 13. 3 billion on 2013, e-retailers in the business sector cost from getting us
$ 3.2 billion. Travel related e-commerce showcases on India is something like 73%. India required

33
nearly 10 million on the web shoppers, furthermore an estimated 35% CAGR vis-vis developing
at a rate of 9-12% about worldwide growth. Hardware Also clothing deals of major classifications.

Key motorists in Indian e-commerce are:

• Broadband Internet and 4G diffusion (22% mom growth) increase.

• Living with high expensing incomes and a growing, upwardly mobile middle-class living
standard raising.

• The accessibility of a wide variety of products compared to what is accessible in element

and grout retailers (including long-tailed and direct import).

• A busy life, urban circulation crowding and a lack of time period to direct shopping.

• Brick-and-mortars stores, driven by lesser prices related to disintermediation decreeing

the cost of inventory and real estate.

• By using the online materials confidential sites, most of the consumer with the sale and
purchase of used goods

• Jabong.com, Flipkart and Infibeam sites like Snapdeal online businesses are started to
Evolution.

India's $ 540 billion retail market in 2011 and 2020 and $ 1150 Bn is expected to grow to $ 765 in
2016 - in projected CAGR of 7.2% According to Forrester, online marketplace in India to growing
at a rapid rate in the Asia-Pacific section more than 59% between 2012-16 more at CAGR.

2.3 Infrastructure
There are more holding businesses that operates in India, but greatest of them are less protected
and danger protection provides shared holding, e-commerce introducing is unsuitable for the
purpose. The demand for more security, stable and protected e-commerce hosting. India, the Indian
e-commerce business stakeholders in the future of cyber security issues that essential to be
managed. In fact, the Indian administration making preparation to soon introduce in the pretend
security break disclosure standards. Kullirisi the threat of hearing in many jurisdictions that aims

34
Corporation has recently suffered a cyber-attack. Trends SaaS hosting web shops are starting to
spend at least a one-time e-commerce companies are varying.
Such blogs, opportunities, search trains and online promotional with Google AdWords and Adroll
some of which may be several ways of advertising to ecommerce sites.

2.4 Funding
2012, e-commerce establishments begin settling on that's only the tip of the iceberg cash yet.
However, their progress prospects, for example, Accel assistants contributed Excitingly to a
amount about investment organizations. For a standout amongst those major fund-raising, Flipkart.
Com, until October 2014, need brought up USD 3.2 billion. Stimulation Ticketing Website
BookMyShow.Com Accel accomplices need raised Rs 110 crore investment.
With respect to 20 June 2013, Flipkart, which present moguls tiger Global, Naspers, Accel
Partners, and ICONIQ money Reported it required accepted $ 300 million. Dragoneer an extra $
220 million for new gurus’ investment Group, Morgan Stanley riches Management, Sofina, Vulcan
inc. Also, tiger worldwide.
Snapdeal - USD 50 million Previously, 13 April.
2012, e-commerce organizations with begin settling on additional cash yet. However, their
development prospects, for example, Accel accomplices contributed Impressively to a amount for
investment organizations. Over a standout amongst those biggest fund-raising, Flipkart. Com, until
November 2014, need brought up USD 2. 3 billion. Stimulation Ticketing Website
BookMyShow.Com Accel accomplices need raised Rs 100 crore venture.
Once 10 July 2013, Flipkart, which existing gurus tiger Global, Naspers, Accel Partners, what’s
more ICONIQ money Reported it required accepted $ 200 million. Dragoneer an extra $ 160
million for new guru’s venture Group, Morgan Stanley riches Management, Sofina, Vulcan inc.
Also, tiger worldwide.
Managerial violations and out of line controls. India's e-commerce legal issues are regularly
disregarded Eventually Tom's examining those e-commerce websites. E- trade gateways for India,
outside administrations might make needed to register What's more consent for those procedures
could change this later on. Nutraceuticals, Wikipedia Ayurveda products, web apothecaries,
internet payment, internet poker, and so forth throughout this way, seeing and stock arrangement

35
of all instrumentation may be enhanced. Would ignoring the law for managing those E- business
website.
Implementation directorate (ED) about India requirement generally initiated indorsed activities
against organizations managing Previously, coins. Google, Facebook, and so forth through this
way, seeing and stock preparation of all instrumentation may be enhanced. In the charge
responsibility for outside organizations would equally under attention.
Likewise, the suggestion around illegal on the web deal from appealing drugs starting with illegal
on the web pharmacies done India need aid under investigation Eventually Tom's perusing the
managerial powers.
Myntra, Flipkart What's more a lot of publics more e-commerce website done India for ignoring
Indian laws Also strategies put them under directorial scanner. Transport, requisition direction
supplier Uber inc. In the us expense segment about India need been suspected. A fine about Rs 64
crore from the state government about Kerala particular illegitimate business for Flipkart, Jabong
Also slammed the opposite two e-commerce trade relations. Flipkart (Rs 47. 25 CR) Jabong (Rs
3. 98 CR), Myntra (Rs 2. 32 CR) What's more Zovi (Rs 36 lakh), took after Toward fine The
greater part of the cash.
Those leagues of Editors’ Furthermore Booksellers cooperation’s about India (FPBAI), India
ruthless guessing methodologies embraced Eventually Tom's perusing Diverse e-commerce
website called under inquiry. Confederation About all India Dealers (CAID) of the Indian
ecommerce website pitiless estimating strategies should approach those rivalry demand about
India need chose should oppose.
The charge obtaining in the anti-competitive polishes set up to control What's more Indian Also
outside trade sites have Additionally been raised up requests to the acquaintance from appealing
ruthless estimating.

2.5 Government Regulations:

In the United States, some internet trade exercises need aid measured by the elected exchange
requisition (FTC) would measure. These movements are business e-mail, on the web promoting
Also buyer security. CAN-SPAM act of 2003 secures an immediate encouraging by means of email
at the national level. Those elected exchange requisition Act, marketing, manages all types of
marketing, also states that circulation must be truthful.

36
Furthermore, non-deceptive. The FTC demonstration Prohibits out of line or beguiling polishes by
utilizing its power under segment 5 FTC 'consumer’s' specific data, including promises regarding
the security of the conditions brought with implement those guarantees over corporate safety
proclamations. Regarding illustration, A result, any corporate security strategy recognized with
ecommerce movement might a chance to be liable should condition Toward the etc.
Which went under power Earlier, 2008, those Ryan Haight on the web medicine store shopper
security act for 2008, changes those regulated Ingredients go about should location on the web
drugstores. Starting with showing up to Google look comes about should piece illegal internet
apothecaries may be a coordinated effort the middle of Google and the us national powers. FedEx
Core as of late pleaded not responsible of the charges against him something like managing illicit
web pharmacies.
Clash for laws on the internet world about e-commerce lawful assembly to management from
appealing magic obstacle. So as to provide for reliability of the theory from appealing e-commerce
in numerous nations around the reality UNCITRAL model law around electronic trade might have
been received (1996). Internationally, the government's shopper practical trade associations
organized over 1991 Concerning illustration a casual system of the international purchaser
insurance What's more implementation organize (ICPEN), no. This went consumer. Government,
a ICPEN action from April 2001 to remote organizations What's more related organizations web
for a portal to report card a declaration.
Asia-Pacific budgetary collaboration (APEC) area through free What's additional open trade and
investment, steadiness, security Also success might have been recognized clinched alongside 1989
for those dreams will be achieved. APEC electronic business guiding assembly and the APEC area
need with worth of effort once basic safety guidelines. In the United Kingdom, these money related
managements power (FSA), those EU's instalment directions directive (PSD included) to mossy
cup oak parts of the guiding authority, those financial behaviour authorities and the Sensible
regulation power 2014 denote those limits from appealing supplanting. PSR which went under
impact for 30 October 2009, the UK instalment administrations Furthermore Instalment Aids
Regulations influence organizations Formerly, giving work to their consumers for 2009 (PSRs),
PSD need passed through. PSRs prudential requisites about instalment organizations who are
subject should these organizations (PIS) called for another directorial creation made Eventually
Tom's scrutinizing banks, non-bank Master card issuers and dealer acquirers, e-money issuers, and

37
so on. PSD's combined done article 87 of the European requisition for November 3, 2012 need
support obliged should report card on the performance Also sway for PSD.
On India, data engineering goes about from appealing 2000 establishes the utilization for
ecommerce hotspot. It will be in interpretation of the UNCITRAL model to far reaching
presentation on manage India's e-commerce associated exercises. Moreover, India's trade
regulations Also regulations appropriate of the field from appealing e-commerce in India are
accompanied Eventually Tom's inspecting Different laws. Common of the data origination Act,
2000, in meanness of the fact that not every last one of grounds need aid some all necessities, for
example, medicine, commerce, health, travel, and so forth. Are managed by distinguishing laws.
About India (CCI) challenge the application fields for anti-competition Furthermore anti-trade
controls from appealing trade On India. A few shareholders through e-commerce website What's
more. A ruthless guessing declaration to document unreasoning exchange hones against
ecommerce sites bring determined with methodology the courts and CCI.

Forms
Present day internet business ‘meta’ managements to encourage Different sorts of electrical
commerce, quick internet consumption, on demanding traditional stock What's more
administrations ‘digital’ includes All that starting with requesting materials.
On the legalize level, more companies What's more monetary institutions, national Also global
businesses, settling on it less demanding for budgetary material return utilizing those webs.
Information integument What's more security would very high temp What's more persistent issues
to electronic business.
Aside from the accepted e- commerce, m-commerce What's more e-commerce networks in the
early t-general from appealing electronic trade on 2013, I might have been acknowledged will a
chance to be the poster Youths. Worldwide patterns. To 2010, At measured once and for every
capita amount of using of the biggest e-commerce showcase on the United Kingdom. Czech
Republic e-commerce enterprises' collective income, the place the biggest obligation of the
European nation. Very nearly a quarter (27%) of the country's categorical turnover is produced
through the web channel.
Around developing economies, China's e-commerce vicinity earnings to extend every year. 430
million web users, China's on the web shopping deals for $ 36. 9 billion over 2009, rose of the near

38
from appealing Growth in the top-secret word need been a standout amongst those resolutions
behind customers will enhance the trust level. Chinese retailers need been fit to aid customers feel
more delightful shopping. China's cross-border e-commerce is quickly developing.
Alternate BRIC nations would be seeing enhanced Growth for e-commerce. Brazil's e-commerce
finalized alongside 2014 will progress solid double-digit pace through 2016 will be relied upon
will retail e-commerce deals are evolving rapidly, e-Marketer retail e-commerce offers On Brazil,
anticipates that will arrive at $ 18. 4 billion. India's e-commerce progress, on the other hand, those
country's opportunity and its surging economy, the web penetration for English dialect expertise
and 1. 2 billion consumers with a broader market, the fast progress of the (seeing those robust
remains slower, maybe main 50 million have get of the Internet, however, pc Furthermore A
percentage e-commerce clients of the A large portion active gathering a assessed 2-3 Iligan).
Ecommerce movement 27. 1 million on 39. 3 million, up half from 2011 to 2012, as stated by A
report card liquidated Toward Com score grew. Yet a gaged 14 billion dollars more than 2012
ecommerce fashioned endeavour out destinations.
E-commerce will be not main to offer with clients, as well as to participate them, those mossy cup
oak imperious apparatus for little Furthermore significant organizations overall. To 2012, to the to
begin with juncture when in the history about e-commerce deals topper $ 1 trillion.
Versatile devices would be playing an expanding part in e-commerce of the blend. Exactly
estimations of the buys intensified looking into movable devices, the CISC Visual systems
Administration Index, by 2017 those showcase to 28% of the reality number for 2014. Those
number of adaptable apparatuses will dwarf the measure about establishes.

Effect with respect to businesses:

What's more retailers? Economists increase the dimensions for customers with gather majority of
the data around results Furthermore prices, intensifier Value rivalry ought with have discovered
the method on e-commerce. Research Toward economists toward those college about Chicago, the
advance of internet shopping, e-commerce, bookshops What's more go organizations to overall
influence the business structure Also discovered that the two regions. For general, extensive
organizations, utilizing economies about scale What's more the table more level costs. The seller
needs the littlest organization of the solitary exemption to this pattern, exposed in the shops the
middle of person should four employees, resisted those patterns.

39
Unique alternately business for procuring alternately offering in place with attain interoperability
of e-commerce, including Internet-based engineering association that doesn't depend once.
Ecommerce to swaps Furthermore transactions anytime Furthermore anyplace may be professed
for its capability to structure A business chance. If an individual may be in the us or overseas, those
businesses could make focused through the web. E-commerce drive altogether those earth prospect
clients and suppliers permits shoppers and organizations should vanish from those geophysical
obstacles. eBay’s e-commerce business is a great illustration for public and organizations will have
the size will offer their merchandise of the post Furthermore around the globe.
Appropriation channels. Organizations need acknowledged those developing fact that e-commerce
pure-click What's more brick-and-click network frameworks. We would immaculate click-and
brick-and-click channel framework embraced Toward organizations on identify.
• Click or immaculate-play establishments need off will coagulate a website without whatever past
presence.

• Bricks-and-clicks agency e-commerce on the web webpage will be involved of the present
organizations.

• Click-to-brick that point open the physical zones of them on the web debates at web retailers.

Examples for new E-commerce framework. ‘2017, 71. 8% for Britons utilize A smartphone’
EMarketer research company, said. (Quoted Previously, Williams, 2014). Bringing this present
authenticity of the web experience, create the economy Furthermore permit the connection the
middle of saves Furthermore clients.
To addition, there need aid progressive screens over the store, a couple style shows' portrayals and
presentation publicizing battles. (William, 2014) in this way, those parts on the web What's more
logged off shopping practice same time working together gets to be that's only the tip of the iceberg
vivid and gripping. In turn case is to analyse the costs of the purchaser contrary to Rivals Kiddicare
smartphone app, which could make anyplace. Moreover, the provision of the items the place
Furthermore they're pointed for things on offer stock or they would `real 'without setting off of the
store to check that certificates you to have a tune in internet. (William, 2014) in the United States,
your camwood weigh result availability Furthermore rates Walmart request for both on the web
and logged off. Moreover, the cleaning of the things over your shopping list, include their indirect
elements Also notice the information. Also reviews of purchasers' not just.
40
 2.6 REVIEW OF LITERATURE

ABEL S M (1998): The various strategies for data assembly are Interview technique, perception
strategy, overview strategy and wellspring of collecting secondary information are places,
Company Magazines and so on and the technique established by the analyst is meeting technique
and organization sites.
AGUILA OBRA An & PADILLA-MELENEZ A (2006): The diverse measurable tools to be
employed as a part of the inspection with a definite end goal to legitimize the evaluation and
assumption testing to be operated and what are the different parametric and non-parametric
examinations and test to be utilized by an expert is a non-parametric test CHI SQUARE test.
AGWU E (2013): Study of the buyer’s conduct is the examination of how public relax on choices
to spend their nearby belongings (Time, Money and Efforts) on use related possessions. It contains
the review what they buy, why they got it, when they get that, where the get it, how frequently
they get it and how often they utilize it.
AJZEN I (2002): with regards to internet-based shopping, components of sites helpfulness can be
examined by inspecting perusing, demanding, and data discovery abilities of a site and additionally
the speediness by which such movements and measures are capable.
AJZEN II (2012): It is the most part recognized that making a journey to the market is seen as an
essential need of day-to-day life. Late perceptions find that the purchasers search for primary goods
twice every week (FMI, 2000). While this may be the current condition, altering purchasers’ ways
of life and increasing marketable centre, substitutes may adjust this normal practice later on.
ARENIUS P SASI &V GABRIELSSON M (2006): Internet food dealers trust that they offer a
response for this need by giving a chance to customers to shop from home and have perishables
carried to the entryway. (Albertsons.com, 2001). While this shopping medium may appear to be
better than store shopping, observational confirmation propose that buyers change in their partiality
for shopping for food in the store.
BEHARELL B DENISONS T J (1995): Even though it initially created as a channel for
correspondence and data, the Internet has rapidly turned into a remarkable vehicle for trade. Also,
as a medium for trade, the Internet is the encapsulation of comfort. A common conversation
directed by means of the Internet allows a customer to peruse, demand, and pay for goods from a
PC. BEERRY V J & BROCK J K (2004): In this analysis, the term Internet shopping for food is

41
considered as the way towards demanding foodstuffs through the Internet and having them carried
to the home. Inside this definition, there were no less than two plans of action that at first occurred.
The first is referred to as ‘immaculate play’. These Internet food merchants were organizations
that were not associated with a basic need of organization.
BERTEHON P R PETT & CAMBELL C (2008): There are a few target dissimilarities that for the
most part exist between looking for primary goods in a store over an Internet supplier. While these
target dissimilarities between the two shopping conditions exist, the customers may not really see
or be impacted by these distinctions. For example, time spent to buy a basic supply thing from a
store by and large takes longer than purchasing similar things on the web.
BERTHON P PETT &MAKE WATSON R T (1996): what is given: sacrifice = money +
convenience (time + effort consumers give up both cash and different assets, for example, time
and exertion, to acquire objects and managements. To a few buyers, financial relinquish is most
essential, while for others it might be time.
BIEL A (2011): achieved a particular gathering of customers. This recommends exploitation
decisions that are driven more by accommodation than by cost. In the interim, be that as I may cost
centred keep on ruling the showcasing systems of supermarkets with the forceful consumption of
relative publicizing, coupons and excellent arrangements. What is received: product = service +
goods.
CHAHAL HARDEEP & DANGWAL RAMESH AND RAINA & SWATHI (2003): this review
expects to spread the variety of information with respect to online trade. In particular, focus is put
on the drivers of substantial worth inside the setting of shopping for goods. Various educational
specialists have directed evaluations identified with internet clients and electronic shopping
conduct for a variety of items.
HARISON &ALBERTSONS.COM, (2001): describes a shopper as a person who buys or uses
(expends) goods or administrations. What's more, it is understood that this demo of purchasing or
expending is moved by a desire to fulfil the requirements. One basic method for gathering
customers' needs is as showed by Maslow’s chain of importance of necessities (Maslow, 1970).
Maslow (1970) partitions the categories of necessities into seven classes.
KHANDELWAL UTKAL YADAV SEEMANTKUMAR (2014): while looking for essential
goods may fulfil more than one of the seven requirements, it in all possibility fulfils a buyer's
physiological needs. This appears differently in relative to other buying situations, for example,

42
those for fashion where they should be fulfilled are possibly going to be weighted more on superior
need levels (e.g., Regard).
MALHOTRA.N.K.(2006): writer says in this review, dimension the moods of utilization are
consistent feeling, realistic feeling and intellectual feeling and consumer faithfulness are measured
in light of measurements, for example, quality, get to, application and manage ability. The
significances of this review presented the feelings of use for items are more.
PHILIP KOTLER &KEVIN LANE KELLER (2006): authors say the reason - earlier research has
highlighted the important part that business people play in buyer loyalty. In such a way, the relation
between business people's states of mind, attitudes, and qualities, and purchaser loyalty remains a
range of plotting.
TAUBER, E. (1972): his review explores the Innovators of buyer loyalty in an electronic customer
relationship management (e-CRM) system. We recommend that customer loyalty in e-CRM
structure creates from four indications: saw benefit quality, saw feeling of group, saw value
fairness, and saw client introduction.
THURSTONE, L. L. (1929): authors tell the connection between consumer loyalty and monetary
returns has become growth consideration in the consumer loyalty script. In any case, there has been
constrained work connecting consumer loyalty to buyer benefit. In particular, most particular
reviews lead far reaching or business-level tests, however less examine. if singular buyer
‘fulfilment with products or organizations drives their buying hopes and financial commitments to
the business.
WESSEL, KIRK D (2004): author defines irrespective of the civil argument about whether
consumer loyalty progresses business benefits, because of encounters in information gathering,
small research has discovered the direct effect of customer loyalty on consumer commitment. With
special approval from a bank, this review inspected 375 legitimate bank customer tests of
individual client benefit fulfilment and their related promises to the bank.
WILLIAMS ET BL. (1978): observed secluded switches Now that CEO James M. Hoge, Jr., has
returned in the previous obligated Anchor Bancorp Inc. To gainfulness and has added $3 billion to
capital, he is focusing on a reengineering activity. In a conference, Large established where and
how he wants to troupe Anchor and on statistics innovation's part in the application. Extensive
outlooks reengineering as a scheduled with process as contrasting to a venture with a starting,
centre, and end.

43
WOOD W. QUIN J. M. & KESHY D. A. (2002): Focused New element advancement is a point
that has practiced broad research in the course of recent years; be that as it may, it remains a good
research field. In shortening the minor scale level research on new element improvement, not less
than one stream of research discoveries that one of three remarkable streams were the internet.
This stream focuses on new item improvement execution therefore of data streams.
ZAICHKOWSKY, J.L. (1985): focused Quality Implementation A recent report emphatically
validates that the effect of customer quality follows may not be so vast as some think. Today's
business situation requests another understanding the value and another definition, one that
empower and firm administrators to ‘do quality ‘in a way that makes esteem and monetary worth
for the purchaser.

44
Chapter 3
RESEARCH DESIGN
TITLE OF THE STUDY
‘A Study on Marketing strategy with reference to Flipkart’

3.1 NEED FOR THE STUDY

Market levels and financial growth, increased buyer knowledge towards online spending. The
explosion of e-commerce, obtaining patterns and customer preferences have changed. The leading
brand of e-commerce technology is moving towards improved sales of their goods.
That's about it for e-commerce dealings, there is no doubt that the quicker and easier, flatter. While
this technology to the advantage of both vendors and purchasers. We have all the technology and
gears to support electronic business, such as the Chamber of Commerce and Business, aware that
one of the pillars of the country's growth, does wonders for the country's economic progress.

3.2 OBJECTIVE OF THE STUDY

Research objectives are as follows:
• To know the marketing strategy and changing buying behaviour.

• To understand the improvement of e-commerce and online spending of products.

• To recognize the actualities to decide the success of online shopping in the area.

• To focus on the growths to make the websites attractive for enhancing the large number of buyers.

• To study the development of retailing with respect to Flipkart

3.3 SCOPE OF STUDY

The new business plan will assist in conveying about the marketing strategy Study. This study supports
to improve promotion to get more buyers. This study will be related with Filpkart and geographic
location that are covered in Bangalore.

3.4 METHODOLOY OF STUDY

RESEARCH DESIGN:
Descriptive research refers to describe the characteristics of a population or phenomenon studied.
It will not provide the answers for the problems instead it provides the reasons where one variable
factor affected by another.

45
SAMPLING DESIGN
Population – Within the Bangalore.
Sampling Technique – Simple Random Sampling techniques is used in this research.
The examining unit will be the customers who buy on the web.
100 respondents from different places in Bangalore.

3.5 DATA AND SOURCES OF DATA

Primary Data: In this kind of source data collected directly from the customers who purchases
through online.

• Survey: Data collected through survey method.

• Instrument:
Structured Questionnaire: An inspectional tool covering for the improvement of investigations and
different stimuluses with the end goal of society matter statistics from respondents. In spite of the
statistic that they are generally intended for measurable inspection of the responses, this is not
frequently cases.

Secondary Data:
1. Books
2. Journal articles
3. Magazines.
4. Websites.

3.6 LIMITATIONS OF THE STUDY:

• Findings are restricted to Bangalore.

• Less security.

• This study describes the characteristics not provides answers.

• All population is not covered, simple random sampling used.

• 3Sampling size is less when compared to customers of online shopping.

• There will be no eye-to-eye contact.

46
CHAPTER 4

ANALYSIS AND INTERPRETATION

4.1 THE TABLE SHOWING THE AGE OF THE RESPONDENT

Analysis:
From the above table we can see that out 100 respondents 35% were between 20-25 years of age,
exactly 30% were among 26-30 years, around 22% were among 31-35 years and around 12%
above 36 years.

47
4.1 Graph showing the Age of the respondents:

Interpretation:

By seeing this chart, we can interpret that the greater number of respondents for this survey were
between 26-30years. Second highest number of respondents were fall between the age 20-25Years.

48
4.2 Table showing the professions of respondents:

Analysis:

From the given table, we can easily know that 23% said student, around 39% were salaried persons,
around 30% were self-employed (businessman, professionals), about 8% were retired or who stays
at home.

49
4.2 Graph showing the professions of respondents:

Interpretation:

By seeing the above paragraph, we can interpret that the maximum or more number of respondents
are salaried persons who are getting fixed salary with or without incentives. The next highest were
self-employed category.

50
4.3 Table showing gender of respondents:

Analysis:

Referring to the above table we can analyse that 56% of respondents were Male and remaining
44% were Female.

4.3 Graph showing gender of respondents:

Interpretation:
Refer to the above graph we can conclude that most of the respondents were males as now increase
in the electronic, fashion purchase.

51
4.4 Table showing the Monthly Salary of customers

Analysis:

From the above given table, we can see that out of 100 respondent’s majority of respondents are
come under salary range 15000-20000 that is around 37%, and around 25% of respondents are
earning below 15000, around 22% of respondents are earning 20000-25000 salary, around 16% of
respondents earning above 25000. So, in this research a greater number of respondents are earning
15000-20000.

52
4.4 Graph showing the Monthly Salary of customers:

Interpretation:

From the given above graph we can see that majority of respondents are falls under salary earning
15000-20000, that is 37%. For this study major contribution is from those earning 15000-20000.

53
4.5 Table showing the qualification of respondents:

Analysis:

From the above table we can see that majority of the respondents are done their PG
that is 37%, and around 12% are done 10th, around 29% are done 12th /PUC, around
22% are done UG.

54
4.5 Graph showing the qualification of respondent:

Interpretation
By seeing the above graph, we know that 37% of respondents are qualified PG. PG
qualified persons are the majority in the research.

55
4.6 Table showing respondents preference for shopping:

Analysis:

From given table we can see that 59% of respondents prefer online shopping and 41% respondents
prefer physical purchase.

4.6 Graph showing respondents preference for shopping:

Interpretation:
Above graph showing 59% of respondents prefer online shopping and 41% prefer physical
purchase. Where the majority prefer online shopping.

56
4.7 Table showing along with whom they shop:

Analysis:
Above graph shows along with whom they purchase most, 32% of people purchases alone, 46%
of them purchases by discussing with friends, 12% of them purchases with suggestions of their
family and only 10% of them purchases others influence.

57
4.7 Graph showing how often respondents shop online:

Interpretation:

Above graph shows that majority of respondents that is 46% of them purchases after discussing
with friend and next highest is 32% of them purchases alone.

58
4.8 Table showing dislike thing in Flipkart:

Analysis:
Above table shows the dislike thing in Flipkart majority of them dislikes the delivery charges for
the purchase under 499 that is 31% and 22% of them are not having any complaints.

59
4.8 Graph showing dislike thing in Flipkart:

Interpretation:
Above graph shows that 31% of them dislikes the Flipkart because of the delivery charges applied
for the purchases under 499, so it should concentrate on minimizing the deliver charges or look for
the alternative.

60
4.9 Table showing which online shopping respondents prefer:

Analysis:
Above graph shows that 35% of the respondents purchases through Flipkart, around 42% prefers
Amazon, around 12% buys through Snapdeal, around 5% buys through ShopClues and around 6%
buys through other shopping websites.

61
4.9 Graph showing which online shopping, respondents prefer:

Interpretation:
Above graph shows that around 35% of respondents buys through Flipkart where as 42% buys
through Amazon. Where the Amazon is the straight competition for the Flipkart.

62
4.10 Table showing satisfaction level of Flipkart’s delivery:

Analysis:
Above table shows 15% of respondents are highly satisfied, around 50% of respondents are
satisfied with Flipkart’s delivery that is exactly 45% of respondents. So that Flipkart’s delivery is
satisfiable. And only 4% of the respondents are Highly dissatisfied.

63
4.10 Graph showing satisfaction level of Flipkart’s delivery:

Interpretation:
Above graph represents that around 60% of respondents are satisfied with the delivery of Flipkart,
where the dis-satisfaction level is just around 15%.

64
4.11 Table showing how people are aware of Flipkart:

Analysis:
Above table shows that about 38% of people are aware of Flipkart through various advertisement
shown in TV. About 32% of people knows Flipkart through internet. Still 3% people are not aware
of Flipkart.

65
4.11 Graph showing how people are aware of Flipkart:

Interpretation:
Above graph shows about 70% of users are aware through Television and Internet. So, advertising
through Internet and TV will be very effective.

66
4.12 Table showing the reasons for shopping through Flipkart:

Analysis:
The above table shows that many peoples are attracted towards Flipkart because of its
offers(discounts) that is 36%, around 12% for home delivery, around 17% for Quality products
provided by Flipkart, around 20% for easy availability of instalment and around 15% for wide
range of products availability which helps the customers to choose the product.

67
4.12 Graph showing the reasons for shopping through Flipkart:

Interpretation:
Above graph shows that majority of people buy the product because of offers and discounts
provided by Flipkart and 20% of them purchase because of easy availability of instalments.

68
4.13 Table showing the factor influencing to purchase on Flipkart:

Analysis:
Above table shows that more people are influenced to purchase products through Flipkart because
of Assurance provided for products that is 36% and 25% of respondents purchases because of
availability of good quality products.

69
4.13 Graph showing the factor influencing to purchase on Flipkart:

Interpretation:
Above graph shows that around 61% of respondents purchases products through Flipkart because
of Quality (36%) and assurance (25%) provided. So, Flipkart should maintain the quality.

70
4.14 Table showing the frequency of visit to Flipkart:

Analysis:
Above table shows that 23% of respondents visit daily, 33% visit weekly, 21% of respondents visit
monthly. Where weekly visitors are more than daily so it should concentrate on making them to
visit daily. 5% of the respondents never visit the Flipkart.

71
4.14 Graph showing the frequency of visit to Flipkart:

Interpretation:
Above graph shows that weekly visitors are more when compared to that of monthly and daily
visitors. So, Flipkart should convert them into regular(daily) visitors.

72
4.15 Table showing the mode of payment used to purchase on Flipkart:

Analysis:

Above table shows that around 21% payments done through credit card, 22% through debit card
but a greater number of payments that is 29% id done through cash on delivery. Whereas payment
through net banking is very less that is 9%.

73
4.15 Graph showing the mode of payment used to purchase on Flipkart:

Interpretation:
Above graph shows that about29% people purchase more through cash on delivery rather than
other payment mode. Credit card and debit card purchase are about 43%.

74
4.16 Table showing customers satisfaction level:

Analysis:
Above table shows that about 37% of people are satisfied with shopping through Flipkart and 15%
of them are highly satisfied. So around 52% of customers are satisfied in shopping through
Flipkart. Only 6% of them are highly dissatisfied.

75
4.16 Graph showing customers satisfaction level:

Interpretation:
The above graph shows that about 50% of customers are satisfied and happy in shopping through
Flipkart. And 23% of them neither satisfied nor dissatisfied, where about 25% of them are
dissatisfied in shopping through Flipkart.

76
4.17 Table showing difficulty level of purchase in Flipkart:

Analysis:
Above table shows that around 36% customers find it is easy to shop through Flipkart, around 12%
of them are found very easy. And about 9% of them are found very difficult and 25% of them find
difficult.

77
4.17 Graph showing difficulty level of purchase in Flipkart:

Interpretation:
Above graph shows around 48% of customers finds easy to shop through Flipkart, around 25% of
them finds moderate to shop and 25% of them finds difficult to shop. Here we can see that nearly
half of them are finds easy.

78
4.18 Table showing most frequently bought product category:

Analysis:
Above table shows that 32% of customers purchases electronics items, about 25% of them
purchased Fashion, 12% of them purchases Accessories, 12% of them purchases Home appliances
and Furniture,15% of them purchases Other category products.

79
4.18 Graph showing most frequently bought product category:

Interpretation:
Above graph shows that a greater number of respondents purchase Electronics item that is 32%,
around 25% of them purchases Fashion items. Only 12% of them purchases Home appliances and
Furniture.

80
4.19 Table showing highest amount spent in single payment:

Analysis:

The above table shows that 32% of customers purchases amount ranging from 1000-5000 at single
payment, around 23% of them purchases amount ranging from 5000-15000. More number of
products sold whose price range is from 1000-15000.

81
4.19 Graph showing highest amount spent in single payment:

Interpretation:

Above graph shows that 32% of purchases are price range from 1000-5000. About 11%
of the purchases price range is of above 25000. So costliest products are not purchased
much.

82
4.20 Table showing safety of shopping through Flipkart:

Analysis:
Above table shows that about 68% of people feels shopping in Flipkart is safe where as
32% of them feels unsafe.

4.20 Graph showing safety of shopping through Flipkart:

Interpretation:
Above graph shows that majority of customers feels safety in shopping but still 32% of
the customers feels unsafe so need to make all of them to feel safe to do shopping in
Flipkart.

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CHAPTER 5

FINDINGS SUGGESTION AND CONCLUSION

5.1 FINDINGS:
• Most of respondents fall under the age 26-30years.
• The leading portion of respondents are those who are getting fixed salary.

• Male respondents are purchases more on Flipkart as they purchase more electronics items.
• The response from the salary factor is those who are earning Rs15000-20000 is the major players
of Flipkart shopping.

• The majority of customers purchases electronics items.

• Half of the respondents visit the Flipkart frequently.

• Greater number of respondents are satisfied with Flipkart’s delivery.

• Majority of the respondents purchase the products because of offers available.

• Most of the customers purchases products in cash on delivery.

• Most of the customers finds easy to shop through Flipkart.

• Major number of respondents are completed post graduate.

• More than half of the respondents prefers doing online shopping.

• Most of the respondents do shopping in online along with their friends.

• Delivery charges for the goods under Rs.499 is the most dislike thing towards Flipkart.

• Flipkart stands second in customer preference to do online shopping after the Amazon.

• People are aware of Flipkart because of advertisement in Television and Newspapers.

• Most number of customers purchases because of the offers provided by them.

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5.2 SUGGESTIONS:
Company should concentrate more on the following factors to improve its sustainability and
market share.

• Flipkart must concentrate on attracting customers towards the Home appliances and furniture.

• Flipkart should make simpler policies for exchange/return of the products

• Along with Phone Pe it should allow other online payment apps for purchase.

• It should provide some special discounts/offers for those who purchases regularly.

• Should frame strategies to overcome the competition from Amazon.

• Quick convey ought to be made.

• Flipkart should extend its products variety to attract more customers.

• Should provide some extra offers and complimentary goods to attract people to do online
payment.

• Flipkart needs to give bonus points for those who give the feedback of their purchase.

85
5.3 Issues and Recommendations

1. A lot of manual labour is utilised in warehouses for put-listing and pick-listing. This can
be addressed through high-end RFID usage – the way it is done for major logistic companies
like DHL.

2. Warehouse layout needs to be looked into so that increased SKU complexity can be
handled better.

3. Including seasonality in the forecasting process will help meet customer expectations
better during high-rush seasons and manage inventory costs better during lean periods.

4. Periodic review of categories should be undertaken and non-performing or highly

volatile categories should be dropped (or replaced with new categories).

5. Incentivize customers for using pre-payment (card or other forms of online payment)
methods over CoD payment. Offer EMI options, discounts and freebies for non-CoD customers.

6. Re-visit 30-day no-questions-asked replacement guarantee across product categories.

Nonfulfillment of this promise has led to a lot of bad press for Flipkart. Operationally, it also
keeps customer service teams busy and leads to additional complications in the reverse logistics
path. It also creates problems with supplier management as suppliers may not want to accept ad-
hoc returns based on Flipkart’s policies.

7. Introduce premium pricing options and pin-code based delivery-time schedules.

Currently Flipkart follows same delivery SLAs pan-India.

8. In-house Payment Gateway: Currently 3rd party Payment Gateways like CCAvenues
charge on a per transaction basis. As number of transactions grow and average amount per
transaction reduces, in-house capability development can help reduce costs. But this requires
compliance with PCI DSS standard which is an added operational complexity.

9. Market place: Market place online shopping is gaining prominence, competitors like
Infibeam and eBay have a lead in this domain.

86
 Conclusion

In conclusion, through several interviews with industry insiders, it was evident that Flipkart
is a learning organization. They do not spend a lot of time in addressing a problem till it
becomes a burning issue and affects profitability significantly.
The company is extremely CEO-driven and encourages entrepreneurial thoughts. This has
enabled a lot of in-house innovation and organically developed best-practices - that have now
become the industry standard.
New global competitors with better best-practices are arriving in India shortly. Amazon is the
biggest example of the same. Increased competition will put further pressure on margins and
will need better handling of supply chain issues.
Last but not the least; Flipkart has very clearly prioritized customer delight as its chief avenue
for customer acquisition and retention. This causes them to build a lot of slack into their
existing systems causing higher costs at several points in the supply chain. Will this strategy
ultimately succeed in the long run –is anybody’s guess.

From the above review, we can conclude that majority of the customers are Males as they
were purchasing more electronics items. The main customers for the Flipkart is those who are
earning between 15000-20000. It should provide good quality of products. Due to the
demonetization effect customers are using debit card and credit card for purchases where this
two combined contributes 43%. There is no doubt in that Flipkart is the great shopping site
for online purchases as 68% of the people feels safe to do shopping through Flipkart. Now
people are getting knowledge about the online shopping as resulting to this E-commerce
growing rapidly.
The organization focusses on stocking the items its buyers required, and also offering
effective comparison between the products. Flipkart gives the suggestions and guidelines for
the right choice of the product. It has successfully figured out how to remain in front of the
opposition.

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