1. 1
Study of Marketing and Communication Strategy used by Digital
Marketing Portals to Allay Fears of Indian Consumers: A Case
Study of Flipkart and Snapdeal
Shubham Singh
ADPR , IIMC – 2011-2012
Advertising and Public Relations

2. 2
Certificate of Completion
To Whomsoever It May Concern
This is to certify that Mr.Shubham Singh has successfully completed an individual term project
on “Study of Marketing and Communication Strategy used by Digital Marketing Portals to Allay
Fears of Indian Consumers: A Case Study of Flipkart and Snapdeal” under my tutelage, direct
supervision and guidance in lieu of the same being a mandatory academic requirement as part of
the PGDADPR course (2010-11) of the Indian Institute of Mass Communication, New Delhi.
The study addresses the research objectives in totality, presenting an in-depth, holistic and
interesting market assessment of the category/brand in question as well as boldly attempts to
make a telling comment on the suggested way forward in terms of the communication strategy.
I wish Mr.Shubham Singh the very best for a wonderful future and a successful career in the
media and communications industry in times to come.
Sincerely
Saurabh Parmar

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Acknowledgement
I take immense pleasure in thanking Mr Saurabh Parmar, my mentor and subject lecturer of
digital media who gave me the opportunity to carry out this research project under his guidance.
His constant support, mentoring and suggestions have been most valuable in the completion of
this work.
I wish to express deep gratitude to Dr. J.Jethwaney for giving me the opportunity to work under
such a mentor with immense expertise and knowledge in this field.
I am extremely grateful to Mr Parveen Ahluvalia for teaching us Advertising Research, which I
found extremely useful in carrying out this project. My heartfelt gratitude to Mr Alok Bhute who
helped me in every possible manner during the completion of my research and provided full
cooperation to ensure the best in my work.
Finally, I extend my gratitude to my friends and colleagues who supported me during this
research and without their help this would not have been possible.

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Table of Contents
Chapter 1......................................................................................................................................... 6
Introduction..................................................................................................................................... 6
1.1 The Concept of On-line Marketing ....................................................................................... 6
1.2 The Indian Scenario .............................................................................................................. 6
1.3 Research Objectives .............................................................................................................. 7
Chapter 2......................................................................................................................................... 8
Literature Review............................................................................................................................ 8
Chapter 3 ................................................................................................................................... 10
Flipkart ...................................................................................................................................... 10
3.1 Overview............................................................................................................................. 10
3.2 Business Model ................................................................................................................... 10
3.3 Marketing and Communications Strategy........................................................................... 12
Chapter 4....................................................................................................................................... 14
Snapdeal........................................................................................................................................ 14
4.1 Overview........................................................................................................................ 14
4.2 Business Model ................................................................................................................... 17
4.3 Marketing and Communication Strategy ............................................................................ 18
Chapter 5....................................................................................................................................... 20
Research Methodology ................................................................................................................. 20
Chapter 6....................................................................................................................................... 21
Data Analysis and Interpretation .................................................................................................. 21
Chapter 7....................................................................................................................................... 31
Conclusion .................................................................................................................................... 31
Recommendations and Suggestions.......................................................................................... 32
References..................................................................................................................................... 33
Annexure................................................................................................................................... 35

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Abstract
This research paper is concerned with the study and analysis of marketing and communications
strategies adopted by digital marketing portals to allay the fears of Indian consumers from
purchasing products online. The focus was on two major companies in particular, Flipkart and
Snapdeal. The marketing and communications strategies were analyzed in terms of both online
and offline media. Two surveys were carried out, a qualitative one, to gain insight into the main
deterrents that keep Indians away from online shopping and also to see the effect of the
companies’ marketing and communications strategy. The quantitative survey was done online to
supplement and reinforce assumptions regarding the effects of marketing and communication
strategy adopted by these companies.
Several marketing innovations like cash on delivery and month long return policies along with
major above the line campaigns had been launched in 2010 and 2011, especially by Flipkart and
Snapdeal. These have made a significant impact on consumer attitudes towards shopping online.
Their marketing and communication strategy has been effective, to some degree, in allaying
fears concerning security of online transactions and receiving defective products. Consumers are
still apprehensive about purchasing products like consumer durables online. As they are more
expensive and they prefer experiencing the product first before buying it. Also concerns
regarding spamming, ease of using a website, along with brand image were major issues
regarding a consumer’s preference for shopping from a particular website or purchasing a
particular type of product. Good customer service experience was the most important factor, as it
generated good word of mouth publicity and was a major deciding factor for a person to shop
online or from a particular website.

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Chapter 1
Introduction
1.1 The Concept of On-line Marketing
On-line marketing may be defined as a system for marketing products and services to target
audiences who use the internet and/or commercial on-line services by utilizing on-line tools and
services in a strategic manner, consistent with the organizations overall marketing programme.
(Janal, 2005, pp. 14-17)
With the advent of Web 2.01
the traditional way of marketing has been revolutionized owing to
the shift in communication platform. Marketers are focusing on-line consumer communities
rather than just targeting them individually. Platforms such as social networking sites, blogs,
video uploading sites, podcasts, bookmarking sites as well as mobile applications and websites
are being used for marketing in new and innovative ways. They are stressing on engaging the
consumer in marketing their products rather than just treating them as passive audience. This has
led to the emergence of new marketing and advertising strategies.
1.2 The Indian Scenario
According to an ASSOCHAM survey report of a random survey conducted by ASSOCHAM
Social Development Foundation (ASDF) during January to June 2011 in ten cities in which
5,000 shoppers were interviewed. The online retail industry in India is likely to be worth Rs
7,000 crore by 2015 due to easy availability of broadband services and increasing internet
penetration across the country. According to the report the Indian online retailing market
currently stands at Rs.2000 crore and is growing at an annual rate of 35%
The report highlights a change in trend among the consumers. Earlier consumers used to use the
online media for gathering information about products and purchase them at traditional retail
outlets. With the advent of facilities like free shipping, time bound deliveries and cash payments
1
The phrase “Web 2.0” is usually attributed to Tim O’Reilly of O’Reilly Media, who popularized it at the first
Web 2.0 conference in 2004

7. 7
on delivery, the purchasing decisions of consumers are being influenced towards shopping
online.
Major hindrances cited by consumers were, high delivery costs, fear of financial information
theft, lack of trust in product delivery and quality and lack of credit or debit card. (ASSOCHAM,
2011)
1.3 Research Objectives
 Analyze marketing and communication strategy of Flipkart and Snapdeal.
 Consumer reaction regarding the marketing and communication initiatives.
 Recognize consumer apprehensions about online shopping, that have been allayed and
those that still persist.
 Find any shifts in consumers’ online shopping behavior linked to new marketing
initiatives of Flipkart and Snapdeal.

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Chapter 2
Literature Review
Some studies regarding acceptance of online shopping in the Indian context have been conducted
in the recent past. These have mainly been concerned with internet penetration and spread of e-
commerce. These studies take into consumer behavior, knowledge/awareness and security
concerns regarding online shopping among Indians.
A study conducted on customer acceptance of internet shopping in India used modeling
techniques to find relations between customer orientations and shopping behavior. The study did
not give any conclusions but discussed the efficacy of using such a model construct for
developing online shopping marketing strategies2
. (Parikh, 2011)
A study conducted by Dr. Richa Dahiya identified the variables influencing behaviour
of consumers towards on-line shopping in India. The factors are: Demographic factors,
Psychographics factors, Online shopping feature and policies, Technological factors and Security
factors. The research was conducted in Metros and among internet users possessing credit cards
only, in 2010. (Dahiya, 2010)
Regarding consumer perception of online advertising and attitudes towards online shopping in
India an empirical study was conducted by Neelotpaul Banerjee, which highlighted intrusiveness
and privacy issues as key hindrances. It stressed on services instead of products as a key
preference by online consumers3
. (Banerjee, 2011)
A similar study conducted by Abdul Azeem and Zia ul Haq, focused on the relevance of
demographics like age, profession and location. The research brought to light relations between
credibility and relevance of online advertisements and consumers’ profession. It found out that
younger and more entrepreneurial consumers were more trusting towards online advertising.
2
http://ir.inflibnet.ac.in:8080/handle/10603/2695
33
http://www.baasana.org/proceedings/08588929297832950628-2011-BAASANA-OFFICIAL-Proceedings_PART-
1.pdf#page=64

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Also the entertainment value of online advertisements was given a lower priority than the
relevance of information it conveyed. (Haq, 2012)
On the potential of internet retailing in India and factors associated with it, a paper by Pallavi
Sharda Garg, recommended that enhanced design of websites and complete shopping experience
will play a key role in attracting consumers to online shopping. (Garg, 2011)

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Chapter 3
Flipkart
3.1 Overview
Launched in 2007 by two IIT Delhi alumni . Flipkart is headed by Sachin Bansal, CEO and
Binny Bansal, COO. Both formerly worked at Amazon.com. Flipkart competes in the Indian on-
line retailing market, which stands at Rs. 2,000 crore and is growing at an annual rate of 35%
(ASSOCHAM, 2011). Flipkart positions itself primarily as an on-line retailer of books but has
expanded to other product categories like music, video, games, computers, electronics, mobile
phones, healthcare and personal products.
It is the largest on-line book seller in India with over 11.5 million available book titles. They ship
more than 30 thousand items per day all over India and employ more than 4.5 thousand
employees. Flipkart is ranked among the top 30 most visited sites in India (Alexa, Statistics
Summary for flipkart.com, 2012) and own delivery networks in 27 cities (Flipkart, About Us,
2012)
3.2 Business Model
Flipkart follows a simple operating model focused on strong back-end services like warehousing
and delivery. It has tie-ups with vendors and publishers and uses advanced algorithms to keep
track of high demand books and products which get stocked immediately. Here is how it works;
when a customer places an order online, if in stock at the local hub it is delivered within 3 days.
If not then an order is placed with the publisher and Flipkart gives a timeline of 7 to 14 days for
delivery. The delivery is handled by Flipkart’s own delivery network where available, otherwise
courier services or speed post is employed. Flipkart offers free delivery on orders worth Rs.200
or more, otherwise Rs. 30 is charged for delivery.
Several payment methods are used, like cash on delivery, card on delivery, on-line credit and
debit card transactions as well as 6 to 7 months EMI on payments by credit cards, for orders

11. 11
worth Rs.4000 or more. The discounts and competitive prices offered by Flipkart are attributed
to high margins it offers to publishers, rumored to be 40% to 60%. Publishers even provide 45 to
65 day credit windows to Flipkart. (Outlook, 2011)
An interesting point to note is that Indian laws allow books to be imported and cross state lines
without taxes or octroi. Flipkart uses a hub and warehouse model, where, the entire inventory is
stocked at warehouses and only assembly and distribution is carried out by hubs distributed
throughout cities. Such dedicated delivery mechanisms can function round the clock and helps
by saving airfare and other delivery costs.

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3.3 Marketing and Communications Strategy
Flipkart has positioned itself as the Indian version of Amazon.com, an online retailer with books
as its core products along with various other products, available at cheap prices and coupled with
good consumer service.
Since its inception in 2007 Flipkart’s marketing strategy has been focused on generating good
word of mouth advertising through satisfied consumers. Their main aim has been to remove
consumers’ hesitation of buying products online. The three main problems they have addressed
are:
1. Fear of getting a defective or wrong product.
2. Fear of divulging credit/debit card details online
3. Fear of not getting product delivered or delayed delivery.
Flipkart started by delivering only books, a low cost low risk product which is easy to deliver
without risk of damaging. This allowed them to woo consumers initially and build a loyal
consumer base. Subsequently they expanded horizontally by offering other product categories
like mobile phones and CDs/DVDs. Presently they sell office supplies, computer accessories,
home and kitchen appliances, personal care, health care, gaming consoles, audio players and
televisions.
They have effectively used the digital medium for their marketing by making good use of search
engine optimization, to successfully gain top ranks in search engine results of book titles and
other products. As the Indian consumer shops online on basis of need rather than on whim. They
have also used digital advertising tools like Google Ad-words to increase their reach.
Flipkart also uses an affiliate program (Flipkart.com, 2012) which allows website owners,
bloggers and others to include Flipkart advertisement banners and product links on their website
and within their content. Flipkart pays them a certain percentage as commission for the leads
they generate.
Flipkart has capitalized upon word of mouth in the digital space also. They have a dedicated

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Facebook page4
as well as a Twitter handle5
and use social media for effective customer
relationship management. Flipkart also maintains a blog, which features as a journal for both
internal as well as external publics. (Flipkart, Flipkart blog, 2012)
Their main digital marketing tool is the website. It features a clear, concise and easy to navigate
layout, as well as detailed information on products available. Another feature of the website is
the suggestions for products a customer might be interested in. These suggestions are based on
their previously bought products, or products they accessed detailed information about. The
website also provides all relevant links for customer support. The site allows customers to write
reviews as well as rate products.
Direct e-mail as well as text messages are used to confirm placement of order as well as tracking
of shipment. Regular messages are sent to registered users regarding latest products on offer.
In 2011 Flipkart started using traditional media for advertising, buy launching the “Over 10
Million Titles Available online” commercial, aimed at establishing brand image as the largest
online book store. Later on in August they launched their “No kidding” campaign, consisting of
a series of TVCs as well as OOH, Print and Radio campaigns on the same creative route.
The campaign addressed the major consumer concerns regarding online shopping as well as
highlighted the range of products on offer besides just books. The television campaign6
addressed these issues and highlighted the following benefits:
1. Cash on delivery.
2. 30-day replacement guarantee.
3. Original products with original warranty.
The campaign featured children acting as adult, a tongue in cheek approach which highlighted
the ease of using the service as well as differentiated the campaign from advertising clutter. The
campaign is reported to have generated encouraging response from consumers. (Prasanna, 2011)
4
https://www.facebook.com/flipkart
5
https://twitter.com/#!/flipkart
6
http://www.youtube.com/user/MrFlipkart

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Chapter 4
Snapdeal
4.1 Overview
Snapdeal was launched in February 2010 by two entrepreneurs, Kunal Bahl and Rohit Bansal,
One a graduate from Wharton Business School and the other an IIT Delhi alumnus. They are
owners of Jasper Infotech, a multi-channel direct marketing platform company under which
Snapdeal operates. Their initial vision was to introduce discount couponing in Indian markets,
offline, which was subsequently shifted to the online platform.
Snapdeal is a pioneer in the online discounting market in India. It holds the 25th
rank among top
traffic receiving sites in India. (Alexa, Snapdeal site statistics, 2012) It is the leader in online
couponing segment in India.

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According to comScore Media Metrix report, the couponing segment has registered a growth of
629% as of November 2011 compared to November 2010. (onlinemarketing-trends.com, 2012)
Presently the company claims to sell 4,000 to 5,000 products a day with 40% of its product
business coming from Tier 2 cities. The distribution is as follows (Sinha, 2011):

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Top 8 cities Next 12 Rest of India
54% 26% 20%
Delhi Chandigarh Agra
Mumbai Jaipur Ajmer
Bangalore Coimbatore Allahabad
Chennai Mysore Ambala
Hyderabad Lucknow Aurangabad
Pune Indore Bhopal
Kolkata Amritsar Bhubhaneswar
Ahmedabad Coimbatore Dehradun
Vizag Gandhinagar
Patna Goa
Kochi Guwahati
Nagpur Jallandhar
Vadodara
Varanasi
Vijayawada
Rest of India
Source: Snapdeal
The company currently employs 800 employees, it company recently raised USD 12 million
from two private equity players -- Nexus Venture Partners and IndoUS Venture Partners and
bought over Grabbon.com (Sinha, 2011)

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4.2 Business Model
Snapdeal follows a business to business to consumer model, where businesses can use the
platform free advertising and cut down customer acquisition costs, thereby allowing customers to
avail huge discounts. This allows businesses to utilize distress inventory and consumers to get
the best prices available. For every discount coupon sold, Snapdeal earns a certain percentage,
which can be paid up front, on the site; the rest can be paid to the dealer. Snapdeal itself does not
maintain an inventory, orders are placed when customers buy from the site, this saves them cost
of maintaining the inventory.
Snapdeal provides two types of services; one is discounted services, like meals at restaurants,
travel packages, spa and healthcare services, etc. The other includes selling products like
Apparels, accessories and luxury items, etc, at discounted rates. This foray into selling products
rather than just services has been done recently.
When a customer wishes to make a purchase, he/she must register at the site using an email
address and mobile number, a certain amount on the deal purchased is either paid online or on
delivery, the rest must be paid to the dealer. All terms and conditions as well as the location of
stores offering the deal is provided on the website. As soon as a deal is purchased, the customer
receives a confirmation via e mail and text message. The customer can either print out the
coupon or just show the text message at point of purchase to avail the offer.
Snapdeal currently operates in all metros and certain tier 1/2 cities. It does not own a delivery
network in all cities but relies on courier services. Cash/Card on delivery is also provided. To
encourage users in tier 1/2 cities it even offers cash on delivery for coupons.
Snapdeal focuses a lot on brand building and hence it conducts quality checks as well as trains
staff of businesses it hosts on its website, to ensure customers are delivered what is promised.

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4.3 Marketing and Communication Strategy
The main aim of Snapdeal is to provide customers with the best deals possible on products and
services they might be interested in, on a daily basis. They follow a very consumer centric
approach and this end even uses analytical tools to record and analyze individual customer
purchases in order to push deals most relevant to them.
Snapdeal during its initial launch heavily focused on word of mouth by satisfied customers as
well as referrals and gifting of vouchers. To make good use of social media platforms, Snapdeal
introduced gifting of discount vouchers, and a referral reward system, where a registered user on
referring the site to a non-user could earn Snapdeal cash, which could be redeemed at the site.
Snapdeal also provides an e-wallet facility where a customer can deposit a certain amount of
cash and by pass the online transaction process on subsequent purchases.
Social media sites as well as other popular websites are targeted by Snapdeal digital
advertisements. These highlight lucrative deals on offer. In 2011 Snapdeal launched television,
print and out of home advertising campaign. It consisted of a series of advertisements
highlighting the services provided by Snapdeal these were mainly;
1. Deals within a customer’s immediate locality.
2. Door step delivery.
3. Cash payment on delivery.
4. The variety of products and services on offer.
The campaign made creative use of “Yumdude”7
, who is an avid user of Snapdeal.
The out of home campaign on similar creative rout covered bus branding, hoardings and mall
branding. A media innovation was used, where in-store (Croma) T.V. branding was done. The
televisions on display were made to play Snapdeal advertisements. Besides this mall activations
were also done.
7
http://www.youtube.com/user/snapdealTeam

19. 19
In order to provide consumers with information about various deals in their immediate vicinity,
Snapdeal launched a WAP site. Allowing one to look up deals available in a locality, on one’s
mobile phone.
Although Snapdeal had built a good following using social media and word of mouth, yet using
above the line media was mainly an exercise in brand building.
Snapdeal also takes customer relationship management initiatives, it promises to take care of all
customer complaints within 24 hours via it’s dedicated customer relationship cell. It has on
several instances acted upon negative consumer feedback. For example, when consumers voiced
their concerns over somewhat vulgar and cheap advertisements on social media platforms,
Snapdeal immediately entertained their concerns and even discontinued those advertisements.8
Snapdeal, even indulges in CSR activities. It adopted a village called Shiv Nagar in Uttar
Pradesh in 2011, and provided the villagers with clean drinking water. In gratitude the villagers
changed the name to Snapdeal.com Nagar.
8
http://www.soravjain.com/listening-on-social-media-snapdeal-com-case-study

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Chapter 5
Research Methodology
Two surveys were conducted, one qualitative and one quantitative in nature. Sample size for
qualitative survey was 20 respondents, comprising of individuals aged between 18 to 30, Indian
citizens residing in metros and tier1/2 cities.
The sampling method adopted was judgmental- snowballing and the instrument used was an
open ended questionnaire, consisting of 13 questions9
. Face to face and telephonic interviews
were conducted. The data was analyzed question wise.
The quantitative survey was conducted using 39 respondents sample size. Sampling method
adopted was judgmental- snowball sampling. The sample consisted of individuals aged between
18 to 30, Indian citizens from metros and tier1/2 cities. The instrument used was a digital
questionnaire consisting of 14 questions, both closed and open ended. The question was
circulated online and results tabulated.
9
See Annexure for sample questionnaire

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Chapter 6
Data Analysis and Interpretation
6.1.Qualitative Analysis
Respondent Profile
18 - 20 5
20 - 25 9
25 - 30 6
Age
Student: Graduate 3
Student: Post Graduate 8
Salaried 9
Profession
Metro 14
Tier 1/2 6
City
15 - 20 5
20 -50 5
50 + 10
Monthly Household Income ( in thousands Rupees)
Male 14
Female 6
Gender

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Questions regarding both Flipkart and Snapdeal
Q.1. Do you make online purchases? From which site/portal? Why? If not, why?
Respondents who were well acquainted to on-line shopping used fashionandyou.com, yebhi.com,
myntra.com, timesshopping.com, letsbuy.com, Infybeam.com and rediff.com besides
flipkart.com and snapdeal.com. Consumers which were particularly concerned with buying
books, were users of flipkart.com, others who buy apparels and accessories had a preference for
indiatimesshopping.com and others. Snapdeal.com users mainly used the site for discounts on
services rather than on products.
Respondents from tier 1/2 cities did not use snapdeal.com and those who did, did not buy any
deals on services simply because they were not available in their city. Unavailability of preferred
brands was also cited as a hindrance to purchasing from Snapdeal, “...the discounts are good but
the brands are unattractive….”10
Q.2. How did you come to know about these sites? If you can remember the first time you
found out about them? Which medium was it?
Majority of respondents, irrespective of the amount of time spent on-line, answered word of
mouth, either through friends or family. Those who were heavy internet users (more than 5 hours
per day) had seen digital ads on Facebook and other websites or a friend had sent them a referral.
Especially in the case of Snapdeal, they were informed mainly by friends or had been invited to a
deal bought by a friend.
Very few respondents had been exposed to television or print ads. And almost none could recall
any out of home advertisements or any CSR activities.
10
Male, 23, Varanasi

23. 23
Q.3. From where do you get information about the latest deals and offers?
Respondents were divided on this question, either they subscribed to direct e-mailers/text
messages and regularly checked them or they ignored them altogether.
A common reply was “I just google what I want to buy”11
. Those who were loyal towards
Flipkart answered, “Whenever I’m online, I checkout Flipkart at least once, everyday”12
. Those
who were regular Snapdeal users checked out text messages on a daily basis.
Q.4. Which service/feature prompted you to buy from these sites?
Regarding Flipkart a common reply was the cash on delivery and free and prompt delivery.
Younger respondents cited lack of debit/credit cards as a deterrent for not using on-line
transactions. Respondents had more faith in COD than Online transactions, “I don’t trust online
transactions,the only reason why I prefer Flipkart.”13
The availability of a wide variety of books
was also commonly cited. Booklovers cited availability of out of stock and rare books as a major
reason. Those from tier 1/2 cities cited unavailability of books in local bookstores as a major
reason. The website design and ease of use was cited a major incentive by all Flipkart users.
Respondents using Snapdeal, cited the discounts on otherwise expensive services a major
attraction.
Q.5. Do you make purchases for other? Parents, friends, spouse, etc. (Someone who isn’t
technology savvy)?
Majority of respondents answered in the affirmative. Heavy users revealed that they inform their
friends about any good offers they come across. The younger respondents had often helped their
parents buy from these sites. Gifting was also a common trend. Snapdeal user’s were not very
open to referring deals, even though Snapdeal offers credit to members for each referral they get.
11
23, male, Varanasi
12
22, female, Bhopal
13
22, male, Ghaziabad

24. 24
Q.6. Does unavailability of a brand/product of-line prompt you to seek it on-line? Do you
compare of-line prices with on-line ones?
Younger respondents, especially the females responded that they used to search for brands and
compare prices earlier, but now they just go on-line. But this was true only for books and
electronic accessories. They preferred buying expensive things like consumer durables of-line.
Male respondents were more open to comparing prices between on-line and of-line,
A respondent replied regarding Flipkart, “…I don’t go to bookstores anymore.”14
Q.7. Have you ever been dissatisfied with a product/service? Did you complain about it?
How was it addressed?
Except for two respondents none had so far been disappointed with either of the sites. One
respondent had this to say about Snapdeal, “I bought this deal on a spa, it seemed very luxurious
on the site, but when I went there, it was very average, I felt misguided and I don’t use Snapdeal
anymore.”15
Other respondents had not been dissatisfied with Snapdeal till now.
A respondent replied, “In October two of my orders on Flipkart got delayed and despite
complaining, nothing happened, in the end I had to go to the local courier service provider’s
office and pick up the package myself.” Yet she still uses Flipkart for lack of a better option. No
other respondent had been dissatisfied with Flipkart.
Flipkart specific questions
Q.8. What do you usually buy from Flipkart? Is it just books, or do you buy anything else?
Here majority of the respondents irrespective of age, gender or location, favoured buying books
and cheap electronic accessories like pen-drives or earphones. Male respondents had bought
more expensive things like Hard-disk drives, but even they were averse to buying the more
expensive consumer durables. The possibility and hassle of couriering such heavy items in case
of a defect was cited as a common concern.
14
23, female, Jamshedpur
15
21, female, New Delhi

25. 25
Q.9. Why do you prefer Flipkart over others? (Could be any reason, emotional or
intangible)
Majority of the respondents did not cite any other reason than competitive discounts and good
service. But one respondent replied “…I like the blue colour theme, it’s very nice and
soothing.”16
Another respondent replied “…I like the fact that it’s an Indian start-up and I support it.”17
Q.10. Have you seen any Flipkart ads? Can you remember any? What would you like to
say about the ads?
Only a minority of respondents said they could remember the ads, the rest had seen them but
could not recall what the message was. None of the correspondents had anything negative to say
about the ads, one of them replied, “I like the kids wala ad, it’s very cute and funny.”18
Q.11. How many times have you purchased from Flipkart?
Almost all respondents had purchased more than three times from Flipkart, although one
respondent19
, a booklover had purchased 67 times from Flipkart, over a course of two years.
Snapdeal specific questions
Q.12. Snapdeal has a lot of neat discounts on services like spas and restaurants besides
discounts on products like clothing, which do you prefer to buy? Is there a particular
reason?
Young female respondents preferred buying deals related to services as well as products like
clothing accessories, those with lower MHI mainly stuck to services based deals. Those with
higher MHI preferred service based deals, but were not satisfied with the range of products on
offer. One respondent replied, “I like to buy deals on spas and salons, they interest me the most
16
25, male, New Delhi
17
22, male, Ghaziabad
18
29, female, New Delhi
19
22, female, Bhopal

26. 26
and you get to experience really expensive stuff for a cheap price.”20
Q.13. There are offers like 90% off on a meal for two worth Rs.1000 for 99. Would you buy
it? If not, why?
Respondents were open to buying such a deal but only if they had experienced the place before
hand. The heavy discount was cited as a reason for believing that the service might not be as
good as promised or they might receive second-hand treatment. Regular buyers also expressed
the same apprehension. One respondent, a regular user, replied, “I never go for such a deal. I
don’t think it’s credible enough!”21
Q.14. Have you seen any Snapdeal ads? Can you remember any? What would you like to
say about the ads?
Although all respondents had seen either TV, digital or OOH ads, only two could recall the
content. One respondent had this to say about the ads, “I remember the Yumdude, and found it
very funny but I cant remember what the ad was specifically about. I like the Flipkart ad
more…”22
Q.15. How many times have you purchased from Snapdeal?
Snapdeal users although a minority, were frequent purchasers. Majority had purchased 7 to 8
times. These were also the most disloyal, one dissatisfied respondent had this to say, “I used to
buy a lot of deals from Snapdeal, almost every month. But ever since the Spa fiasco I’ve stopped
going there.”23
20
30, female, New Delhi
21
30, female, New Delhi
22
23, male, Ahmadabad
23
23, female, New Delhi

27. 27
6.2. Quantitative Analysis
Respondent Profile
18 – 20 2
20 – 25 25
25 - 30 12
Age
Student: Graduate 6
Student: Post Graduate 23
Salaried 11
Profession
Metro 21
Tire 1/2 18
City
15 – 25 10
25 – 50 14
50 – 100 8
100 + 7
Monthly Household Income ( in thousands Rupees)
Male 23
Female 16
Gender

28. 28
1. Change in share of product categories that respondents purchased from, when they initially
started shopping from Flipkart, from what they purchase presently.
Books are still the largest selling product category, but respondents have started purchasing
products from electronic accessories category and the much recently added mobile phone
category. Therefore, to some extent consumer sentiment of ordering slightly more riskier product
categories has started coming up.
Books
68%
Electronic
Accessories
26%
Pens
3%
CD/DVD
3%
Initial share of product categories (percentages)
Books
56%
Electronic
Accessories
34%
Appliances
4%
CD/DVD
4%
Mobile Phone
2%
Present share of product categories (percentages)

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2. 48% of total respondents from the sample, had started online shopping and shopping from
Flipkart in the same year. Also, 41% of the sample had started buying online from Flipkart from
last year. This coincides with Flipkart taking part in traditional mass media advertising and also
introducing features like, cash on delivery, 30 day return warranty and delivery within 3 days.
3. Snapdeal users were all recent users, and had just started using Snapdeal for a year. Majority
had not made purchases more than 5 times till now. No marked trend was observed in shift in
product category shares sold from Snapdeal.
4. When it comes to preference for purchasing either product based deals, or service based deals
from Snapdeal. Respondents who preferred to purchase service based deals were a majority and
those who preferred products followed, very few preferred to buy both types of deals.
It shows that respondents consider services as less risky, when it comes to purchasing from
Snapdeal, when compared to products.
Products
27%
Services
64%
Both
9%
Preference of type of deals among Snapdeal users

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5. The different product/service categories’ share in purchases made from Snapdeal are:
It can be seen that services like discounts at restaurants and health and beauty are favored more
than product categories like, accessories and apparels. But given the wide array of products on
offer, respondents were open to purchasing electronic and luxury items, although their
percentage was only marginal.
Restaurant
discounts
35%
Health/Beauty
services
16%
Apparels
11%
Accessories
21%
Personal/Health
care products
3%
Elecronics
11%
Luxury items
3%
Share of purchases made by Snapdeal users

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Chapter 7
Conclusion
The marketing and communication strategy of Flipkart and Snapdeal have succeeded in allaying
consumers’ fear of online shopping, albeit to a certain degree.
The findings point to the fact that consumers are aware of the unique propositions that on-line
retailing sites offer. For example, those interested in books had a preference for Flipkart, yet the
same respondents used Letsbuy, Myntra and indiatimesshopping if they had to buy consumer
electronics and other products.
A majority of respondents pointed out that they usually just google what they wish to buy and
follow the search results, As more and more sites start offering free delivery and COD,
especially in Metros it might result in parity among on-line retailers. Particularly so, as price was
cited as a major factor for loyalty towards a certain site/portal.
The findings established that cash on delivery and free shipping are the major factors that
encourage new consumers to buy on-line. Flipkart in particular has benefited from it and has
played a major role in encouraging the trend of on-line retailing among Indians, yet consumers
are still vary of buying consumer durables, which are more expensive. Majority have still not
been informed about the warranty and EMI payment options that Flipkart offers.
Consumers have now formed the perception that on-line prices are cheaper and more competitive
than of-line ones, to the point that majority do not even compare of-line prices anymore, except
when they have to buy expensive consumer durables. They Consumers are also particularly
stringent about the service they are offered, if the service does not match up to their expectation
they quickly form a bad perception about the brand. This was clearly exemplified by a regular
female user of Snapdeal who stopped using it altogether just because of one unsatisfying
experience. Hence maintaining top notch quality of service is paramount for building brand
loyalty among online retailers.
In case of Snapdeal, heavy discounts were both helpful in attracting buyers as well as

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discouraging them, if offered in greater magnitude. Also a particular set of users used Snapdeal
like Yellow Pages, they just check out new places nearby that get featured on Snapdeal, rather
than buy any deals.
Consumers who were regular users seemed very perceptive towards direct e-mailers and texts,
but light users preferred checking out the site themselves rather than get spammed. Some
particularly didn’t use Snapdeal because of the fear of getting spammed after registration. A
notable trend surfaced, some heavy internet users had two or more e-mail accounts. They
reportedly used their old accounts just for registering at sites, and used another account for
official, day to day purposes. They don’t even check their old accounts. So text messaging might
be a better option of communicating latest information to consumers, as e-mails don’t really
reach them. And mandatory registration (or even a false notion of it being mandatory) can be
unfruitful and in some cases a major deterrent also.
Recommendations and Suggestions
Possible recommendations could be that online retail companies adopt best practices concerning
spamming, adhere to them and communicate this more effectively to the consumer. Services like
cash on delivery are a major enabler in introducing consumers to online shopping and should be
encouraged further.
Security features like insurance of goods during delivery are being provided but it is not being
communicated effectively, as consumers are largely unaware of such features. Controlling and
maintaining the standards of services and products on offer is very important, especially with the
high rate of expansion these companies are witnessing. Consumers have a lot of choice and are
not very loyal, even a single bad experience is enough to turn them away.
Maintaining a presence in traditional mass media in terms of brand building is very important,
judging by the effectiveness of such campaigns in introducing consumers to online shopping,
especially in the case of Flipkart. As competition increases, brand will act as a key differentiator.

33. 33
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35. 35
Annexure
Sample Questionnaires
Questionnaire Regarding Flipkart and Snapdeal
Name: Age: MHI/Stipend/Income:
City: Profession: Internet access points:
Average time spent online:
Do you make online purchases? From which site/portal? Why?
If not, why?
How did you come to know about these sites?
Indicate the first instance, the medium where you first found out about them.
From where do you get the info about latest deals and offers?
E mail, the site, ads, etc.
Which service/feature prompted you to buy from these sites?
Please indicate the particular service/feature regarding both Flipkart and Snapdeal, if possible.
Do you make purchases for others?
Parents, friends, spouse, etc. (For someone who is not computer savvy)

36. 36
Does unavailability of a brand/product offline prompt you to seek it on-line?
Or do you just compare off-line prices with on-line ones?
Have you ever been dissatisfied with a product/service? Did you complain about it? How was it
addressed?
(Please indicate whether it was Flipkart or Snapdeal)
Flipkart Specific Questions
What do you usually buy from Flipkart?
Is it just books? Why do you not buy anything else than just books?
Why do you prefer Flipkart over others?
(Could be anything, even emotional aspects and other intangible reasons)
Have you seen Flipkart ads? Can you remember any?
What would you like to say about the ads?
How many times have you purchased from Flipkart?
Snapdeal Specific Questions
Snapdeal has a lot of neat discounts on services like spas and restaurants besides discounts on
products like clothing, which do you prefer to buy? Is there a particular reason?
There are offers like 90% off on a meal for two worth 1000 for Rs.99. Would you buy it?
Yes/No why?

37. 37
Have you seen any Snapdeal ads? Can you remember any? What would you like to say about the
ads?
How many times have you purchased from Snapdeal? (Products and Services separately)

38. 38

39. 39

40. 40

41. 41
Quantitative survey data table:
http://dl.dropbox.com/u/51959681/Quantitative%20Questionnaire%20Regarding%20Flipkart%2
0and%20Snapdeal.xlsx