PRESENTATION OF

SUPPLY CHAIN MANAGEMENT

ON
Flipkart

Submitted To: Submitted By:
Dr. Piyush Kendurkar Aditya Gangrade
MBA(MM- A)- II Sem
Roll no. : 55303
INTRODUCTION
Leading e-commerce
Company in India.
Founded in 2007 by
Sachin Bansal and Binny Bansal
Started with initial capital of INR 4 lakh.
4600+ employees.
Subsidiaries are
We Read
Mime 360
Lets Buy


VALUED
AT 9900
Cr.
WS RETAIL
FLIPKART
PAYMENT
GATEWAY
SERVICES
E-KART
BOOKS
CONSUMER
GOODS
LIFESTYLE
Management Team
Sachin Bansal
CEO and Co-founder
Binny Bansal
COO and Co-founder
Sachin spent his early years in Chandigarh. He graduated from IIT-Delhi with a
degree in Computer Engineering. In 2006 he joined Amazon.com in India which
he later left to set-up Flipkart.

As CEO, Sachin oversees all the customer facing activities of the company
ranging from technology to marketing. He is also in charge of Flipkart's corporate
divisions which include the finance and legal departments.

An avid gaming enthusiast, Sachin likes to spend most of his free time with his
family.
Born and raised in Chandigarh, Binny went on to get a degree in Computer
Engineering from IIT Delhi. He had a brief stint at Amazon before taking the
entrepreneurial plunge with Flipkart.

At Flipkart, Binny oversees all operational activities that come into play from the
time the customer places an order till the time of delivery. This spans across
divisions like warehousing, logistics and customer support.

Binny is also passionate about soccer and NBA. An active sportsman, he used to
captain his school basketball and soccer teams.
Acquisitions
2010: WEREAD, a social book discovery tool.The stated goal was to give
Flipkart a social recommendation platform for buyers to make informed
decisions based on recommendations from people within their social
network.

2011: Mime360, a digital content platform company.

2011: Chakpak.com is a Bollywood news site that offers updates, news,
photos and videos. Flipkart acquired the rights to Chakpaks digital
catalogue which includes 40,000 filmographies, 10,000 movies and close to
50,000 ratings. Flipkart has categorically said that it will not be involved
with the original site and will not use the brand name.


2012: Letsbuy.com is India's second largest e-retailer in electronics.
Flipkart has bought the company for an estimated US$ 25 million.
Marketing Strategy
Flipkart has been mostly marketed by word of mouth advertising.

Customer satisfaction has been their best marketing medium.

Flipkart very wisely used SEO (Search Engine Optimization) and
Google Ad-words as the marketing tools to have a far reach in the online
world.

Flipkart.com official Face book page has close to 9 lac 'likes'. Flipkart
recently launched a series of 3 ads with the tag line - "No Kidding No
worries"

Kids were used to create the adverts to send out the message - if a kid
can do it, you can also do it.

All in all to create a great customer experience.



E-COMMERCE INDUSTRY IN INDIA
Poised for rapid growth

Fastest growing
amongst Asia pacific region.

Expanding into non-metropolitan India.

Social media and mobile technologies are accelerating
e-commerce adoption.

Large retailers are looking forward to build an online
presence.
WORTH
MARKET DEMOGRAPHICS
GEOGRAPHIC:
CATERS TO TIER 1, TIER 2 AND TIER 3 CITIES
USAGE RATE:
Third largest internet user base of 124 million (10% internet penetration)
Indias mobile user base is 87.1 million and is expected to double by March 2015
Flipkart projects its sales to reach INR 10 billion by year 2014.
On average, Flipkart sells nearly 20 products per minute and is aiming at generating
a revenue of INR 50 billion (US$1 billion) by 2015.
Flipkart has 10 million registered users; about a million visit the site every day.
The users of age 15-34 years are most susceptible to changes in
purchase/consumption behaviour.
AGE GROUP:
Youngest online demographic globally .
75% of online users between the age group of 15-34 years.


51%
40%
9%
CONTRIBUTION
TIER 1
TIER 2+3
RURAL
MARKET GROWTH AND TRENDS
MARKET GROWTH:
Current size of e-commerce market in India
$12.2 billion

360 e-commerce portal offering services in
India (tripled since 2010)

Internet users in India is expected to grow to
376 million by 2015.





MARKET
TRENDS:
23%
29%
48%
SALE OF DIFFERENT PRODUCTS
ELECTRONIC
GOODS
BOOKS
LIFESTYLE
AND ALLIED
PRODUCTS

Investors trust
Services and warehousing
Payment options
Established brand
Industry condition: very high potential


STHENGTH


Entry of international on-line competitors in Indian market
Customers are not comfortable with online payment
Not profitable operationally
Time to build confidence among the customers
Middle management retention issues.

WEAKNESS

Amazon.com/ Amazon.in
Junglee.com.
EBay
SnapDeal
Jabong.com
Homeshop18
Yebhi.com
Yepme.com
Shopclues.com


MAJOR COMPETITORS
Great customer service

Flipkart users are more satisfied than that of their competitors.
Great customer service has been its hallmark.

Easy to use website, hassle free payment system

The user interface is sleek and easy to use.

Cash on delivery/Card on delivery mode of payment

This has been a major instrument in Flipkarts success. Almost 60%
of its sales happen through this mode. Cash on delivery created
trust in the minds of Indian customers who were always weary of
making payments online.

Focused on user experience

Every other e-commerce site, tried to cram the maximum of
amount of information possible into every single page where as
Flipkart focused on providing only the relevant info.

KEY SUCCESS FACTORS
Advertisements By Flipkart
LOGISTICS
SUPPLY CHAIN
FLIPKART RETAILERS
CUSTOMER
ORDERS
PLACED WITH
FLIPKART
ALLOCATION OF ORDERS WITH
RETAILERS
RETAILER
CONFIRMS THE
AVAILABILITY
OF STOCK
RETAILER
DELIVERS
SATISFIED
CUSTOMER
SEGMENTATION
Flipkart , Flipifts.
Flipifts
Extension of
academic books
Vernacular language
liquor
Membership cards
sponsorship

TARGETING
0
100
200
300
400
500
2001 2011 2021
353
430
464
Youth population
(million)
youth
population
(million)
35%
40%
16%
6%
3%
Internet users by age
15-24
25-34
35-44
45-54
55+
Internet users by
age (source:
survey)

Flipkart targets mainly the youth of the country,
Web friendly people.
Target markets should include
People who do not relate well with English
language
Academic institutions and people associated
with it
Current buyers

Screenshot
They aim at 10 times growth, and eyes at $ 1Billion sales by 2015.

They will look at bigger investments in their supply chain and
technology.

Investment will be made in large warehouses and increased
automation of their process, so that the product is not delayed.

They intend to enter in to various new categories and expand
their current categories as well.

Everything except for groceries and automobiles will be available
on Flipkart in future.

To go further in the value chain, Flipkart is looking at associations
with a larger number of suppliers and partners, both nationally and
internationally.

Future Road Map