case study on flipkart

1. ORGANIZATIONAL COMMUNICATION
GROUP 18
A Case Study On
By : Arpit Singhal 12MF3IM03
Sumit Kumar 12MF3IM15
Vishal Trivedi 12MA20050
Sourav Kumar 12MA20043
Govind Singh Dhakar 12MT10014

2. Overview
• Flipkart – One of the leading Indian e-commerce companies
headquartered in Bangalore, Karnataka
• Founded by Sachin Bansal and Binny Bansal in 2007 with 4
lakhs funding
• Raised two rounds of funding from Accel India and Tiger
Global Management
• Early focus on online sales of books and later expansion of
product line
• Offer multiple payment online
• Path breaking services
• Among the top 20 Indian website in term of traffic
• Regarding as the Amazon of India

3. Journey So Far
• Sachin Bansal & Binny Bansal graduated from IIT-Delhi with a degree in Computer Engineering was
working for Amazon.com before quitting and launching their own company Flipkart.com
• Flipkart was launched in 2007 with the objective of making books available to everyone who had
internet access
• The company sold its first book on flipkart.com-John Wood
• In 2010 branched out to selling CDs, DVDs, mobile phones and accessories, cameras, computers,
computer accessories and peripherals, and in 2011, pens & stationery, other electronic items such as
home appliances, kitchen appliances, personal care gadgets, health care products etc
• Further in 2012, Flipkart added A.C, air coolers, school supplies, office supplies, art supplies & life style
products to its product portfolio
• Flipkart broke even in March 2010 and claims to have had at least 100% growth every quarter since its
founding

4. Evolution of LOGO
TAGLINE- “ The Online Megastore “

5. Core Purpose
To make shopping delightful for everyone
By offering the widest choice of products, at disruptive prices, backed by
unparalleled service to customers.

6. Flipkart’s Value For Success
Customers First
Independence of Thought
Pursuit of Excellence
Opportunity based on Merit

7. 2020 Vision
To be a $20 billion company by the year 2020.
To change the way people shop and therefore the way people live
◦ One in four Indian families will have experienced the delight of shopping with Flipkart
Our brand of customer obsession coupled with our ability to do ‘more with less’, will have
become the ‘way to go’ for an entire generation of entrepreneurs. They will be inspired by our
use of technology and automation to create efficient business processes and solutions.”

8. INTERNAL
COMMUNICATION

9. COMMUNICATION MODEL
• They have a horizontal Communication model
• They have made separate departments and decisions are taken independently on their respective goals and
objectives as shown in the organizational structure
• Every Department also caters to the needs of other department
Engineering
Department
Marketing
Horizontal Department
Communication

10. Sachin Bansal
Binny Bansal
Karandeep
Singh
Flipkart CFO
Ravi Vora
VP
(marketing)
Mekin
Maheshwari
President
(engineering)
Ankit Nagori
VP
(categories)
Sameer Nigam
VP (digital
business)
Maneesh
Mittal
VP
(operations)
Sujeet Kumar
President
(operations)
ORGANIZATIONAL STRUCTURE

11. Decision making process
Evaluation of
Alternatives
Customer perceived value
Wider range across all
categories
Purchase Decision
Faster turn around time
Cash/Card on Delivery
Easy Return Procedure in
case DOA
Post- Purchase behavior
Feedback on Flipkart website
and other blogs
Word of Mouth
Affiliate

12. EXTERNAL
COMMUNICATION

13. INTER ORGANIZATIONAL COMMUNICATION
Amazon, Snapdeal, E-bay, Etc.
• More than 600 Sellers
• Strong Administrative
position
• Manipulate them
• New Upcoming Enterpreneurs
• Helps them in their growth
Offline Shops and Showrooms
• Marketing Strategies
• Caters to the need of customers

14. PEST Analysis of External Communication
Government support for increasing penetration in
India, Tax benefits to corporates, Increase in stock
holding % for foreign investors in companies (2012)
Resistance against foreign retailers
Booming Indian Economy, Increasing spending
power, Sky rocketing fuel prices, Base of internet
users multiplied by 10 times in 6 years
Political Economical
Social Technological
Better comfort level and trust in online shopping,
High priority on time and convenience , Improving
usage of broadband and high computer literacy.
Advent of mobile shopping, Increasing penetration
rate of broadband and wireless internet, Better
managed E-Commerce site for ease, privacy and
advancements in net banking

15. Customer Relationship Management
A Customer Centric Approach To Management
Flipkart can be said to be the pioneer in initiating the sceptical Indian shopper into online
retailer
The customer is informed at every step through e-mail/text when the order has been
confirmed⇾ order summary & shipment details + tracker ⇾ informing customer if order has
been delayed
Customer complaints are quickly addressed and there are transparent return and exchange
policies

16. Customer Relationship Management
Strategic CRM
The company philosophy echoes in their tagline “making better our service promise”. The founders
believe that huge discounts alone cannot sustain a successful business, customer satisfaction and
preferences need to be addressed to keep the flame going.
Providing good customer service enables Flipkart to enjoy high levels of customer satisfaction, generate
repeat business and ensure positive word-of-mouth
The Cloud
Cloud-based software and services are everywhere these days and the cloud has both benefits when
applied to CRM
Cloud-based solutions typically feature low initial entry costs and simpler set-up and maintenance

17. CORPORATE STRATEGY-ACQUISITIONS
2010: WeRead, a social book discovery tool
2011: Mime360, a digital content platform company
2011: Chakpak.com is a Bollywood news site that offers updates, news, photos
and videos
2012: Letsbuy.com is India's second largest e-retailer in electronics for an
estimated US$ 25 million
2014 : Myntra.com is India’s largest fashion brands e-retailer for an estimated
Rs. 2000 Crore

18. PRODUCTS & SERVICES

19. Electronics & Clothing

20. Books & Media

21. Sports & Fitness

22. COMPETITORS

23. COMPETITORS (Books Market)

24. MARKETING STRATEGIES

25. Flipkart has done extensive work in
creating their USP in the ecommerce
segment. Selling of books over internet in
India was the 1st USP of Flipkart as this
medium wasn’t available at the launch of
Flipkart. It is known for opening up the
Indian e-commerce market and in a big
way.

26. Flipkart has adopted almost all and even more
propositions, created compelling reasons for people
to buy items from them. Be it:
• Lowest price seller
• Only one selling
• Addictive engaging by its user interface
• Delivering goods at lightning speed
And many more
But placing the above marketing strategies has its
own challenges like:
• How would people visitFlipkart.com?
• How would visitor be converted to consumer?
• How to effectively communicate with customers
and prospects?

27. They have worked upon all the possible solutions viz:
1. SEO (Search engine
optimization)
2. Pay-per-click advertising
3. Offline display advertising
4. Affiliate marketing programs
5. Social media campaigns
6. Public relations
7. Email campaigns
8. Contests
9. Giveaways

28. Few of the practical approaches that Flipkart has taken for marketing and making its brand position as a part of
Marketing strategy are
1. Free Home Delivery
2. Cash on Delivery
3. Fast, safe and free delivery
4. Discount shopping
5. User friendly and attractive interface
6. Authentic and more variety
productsReplace policy in case of defects
7. Variety of payment options
8. A robust customer service in terms of
information and product available
9. Emotional connect
10.Social media presence
11.24*7 customer service
12.Consignment model
13.Robust logistics
14.Well oiled warehousing and delivery
system

29. Ad Campaigns
It uses cute kids playing the roles of an adult with real adult voices
The idea of using kids stemmed from the fact that no one trusts you like children
It stresses on highlighting vital benefits of shopping on Flipkart.com viz, cash on delivery, 30 day
replacement policy, and guarantee of original products
The ads also display the entire gamut of new product categories such as cameras, mobile
phones, and tablets that are now available on the site

30. PRINT ADs

31. SHOWS
ORGANIZED
BY FLIPKART

32. MOBILE APPS

33. Television Commercials

34. The message is very clear to make people more
comfortable with Flipkart, to generate a great
customer relationship and loyalty on the basis of great
product prices and excellent customer service. All in all
to create a great customer experience

35. ANALYSIS

36. PRIMARY ANALYSIS
30
25
20
15
10
5
0
20 22
25
8
0
26
Sales
No. of events of online purchases
in the last 12 months
1 2 3 4 5 >=6
15%
15%
15% 12%
37%
6%

37. PRIMARY ANALYSIS
62%
USP of Flipkart
29%
9%
Cash/Card on
Delivery
Easy to Order
Easy to replace
100 77
50
0
4 10
2 7
Competition

38. STRENGTHS
 ONLINE BRAND FOR GLOBAL ONLINE AUCTION
 SUPPLY CHAIN MANAGEMENT
 ADVERTISEMENT AND PROMOTION
 STRATEGIC AQUISITION
 HUGE REACH
 FORMAT OF WEBSITE
SWOT Analysis
WEAKNESSES
 DELIVERY
 INTERNET PENETRATION
 PAYMENT GATEWAYS
 HIGHER COST
 SYSTEM BREAKDOWN EFFECTS TRADING ACTIVITIES
OPPORTUNITIES
 GROWTH IN E-TAIL
 GROWTH IN E-BOOKS CULTURE
 MOBILES APPS
 BROADBAND PENETRATION
 TO CAPTURE INDIA’S FASTEST GROWING DIGITAL MARKET IN THE
WORLD
THREATS
 BIG PLAYERS SUCH AS AMAZON, SNAPDEAL
 COMPETITION FROM LOCAL SHOPKEEPERS AND VENDORS
 FDI INVESTMENT POLICIES

39. CRISIS FACED

40. BIG BILLION DAY
GOALS:
 Date:6-10-2014
 Target for Sale US$ 100 million
 Time set for 100 million sale.
 Promised discounts on the
 Big Billion Day -Flat 90%.

41. BIG BILLION DAY
ACHIEVEMENTS:
 Achieved Sale in 10 hours - US$! 100M
 No. of hits in 10 hours -1 Billion
 No. of orders in first 6 hours- 300,000
 Lowest Price of an item - 1 Rupee

42. BIG BILLION DAY
PROBLEMS FACED:
 Price change of several products.
 Out-of stock issue for many products within a
minute or even seconds.
 Cancellations of orders as it was over-booked
Website issue
STRATEGIC ATTACK OF COMPETITORS

43. BIG BILLION DAY
Apology by the Co-founders (CRISIS COMMUNICATION)
Everything that we have achieved at Flipkart is purely on the basis of our customer’s trust and
faith. This is why we come to work each day and continue to remain extremely passionate about
building the best possible customer experience for Indian consumers. We failed to live up to this
promise yesterday and would like to apologise once again to every single customer for our failure.

44. SUGGESTIONS FROM OUR SIDE
Flipkart should have tried a trial run before the actual launch of the Big Billion Day
They should have done a market analysis and plan their event strategically
Flipkart should focus on more servers for the customers catering to the heavily increasing
customers hits on their website
Flipkart should have put a backup plan, informing customers the unavailability of products as
soon as they went OUT-OF-STOCK
They should have addressed their customers on every social networking sites

45. REFERENCES:
www.flipkart.com
www.google.co.in
www.Wikipedia.com
www.socialsamosa.com
www.slideshare.net
www.theviewspaper.net