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Transcript of 250925637 Projec on Bluedart IM 2015ASIF
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INTRODUCTION
What is LOGISTICS?
Logistics is about moving materials, information and funds from one business to
another or from a business to the consumer. It is a vital part of the business economic
system and is a major global economic activity. In fact 10-15 per cent of product costs are
logistics related. Worldide, logistics constitutes about !" trillion a year. #or any country,
the logistics cost is estimated beteen $ and "0 per cent of its %&'.
(very company dreams of achieving the seven )*s - delivering the right product in
the right +uantity and the right condition, at the right place, at the right time, for the right
customer at the right cost. (ffective logistics management alone can mae this possible.
Logistics is one of the oldest and also the neest activities of business management. It
involves combining diverse functions and service providers ho may be culturally and
objectively different.
In the past, +uality of products and services as the ey differentiating factor for
companies operating in the same maret. In due course, +uality and lo cost became the
inning combination.
oday, responsiveness to the customers* needs is the determining factor. n enterprise
that caters instantly to the needs of the customer is the inner. Integrated logistics can
serve as a potent tool for success in today*s competitive business environment.
Logistics is an organi/ed process of managing the flo of merchandise from the source
of supply - the vendor, holesaler or distributor - through internal processing functions
lie arehousing and transportation, until the merchandise is sold and delivered to the
end customer.
Logistics management aims to reduce inventory-holding costs and improve profits, hile
enhancing customer satisfaction.
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nything can be ordered online, but receiving a tangible product is impossible. he
difference beteen e-business success and failure lies in a company*s ability to manage
the logistics.
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History of Logistics
he %rees defined logistics as the science of correct reasoning by means of
mathematics. he first modern use of the term as in the military to identify the process
of planning and coordinating the movement of army and eapon support systems. %ood
logistics brings out the ability to move faster and accurately to the battlefront. If one
applies the same to the business organisation, it is one*s ability to reach the product to the
consumer at the right time, right place, right +uantity and at the loest cost.2 3n similar
lines, supply chain management ill mean the netor of organisations involved in the
process by hich goods are moved from producer to consumer and the counter flo of
information, to manage the supply chain as a single entity.
prominent application of logistics as in World War II here eapon movements ere
coordinated to ensure success. recent instance of massive logistics initiatives is in the
%ulf ar. With increasing competition in the maret place, managements started focusing
on customer services in the early 1$50s in developed marets such as (urope and the
4.. In late 1$60s some of the logistics concepts ere tested. #olloing the oil crisis ofthe 1$70s and the concept of just in time in manufacturing customer-servicing standards
ere given more importance and ne integrated logistics models and solutions ere
born. he emergence of organi/ed distribution system by department stores and super fast
courier service organisations gave a boost to logistics concepts and strategies. oday all
businesses are looing for seamless transaction systems to co-ordinate their information
and material re+uirements along the value chain.
t the micro level any manufacturing and mareting company spends 5 - 85 per cent of
sales on logistics. he major cost components are transportation, arehousing and
inventory carrying cost. Improvements in logistics get reflected in a reduction in
inventory levels, shorter delivery schedules, and improved servicing standards ith
significant savings in total costs.
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Logistics Management Process
9ichael 'orter in his famous boo :ompetitive dvantage** has spoen of the value
chain approach and emphasi/ed logistics as one of the most important tools for
competitive advantage.
he various processes and elements that are part of logistics as a discipline are;
Ino!n" #ogistics; 'urchasing, Inbound transportation, Inventory 9anagement.
Man!fact!ring; 'roduction planning systems, 9achine scheduling system.
O!to!n" #ogistics; 3rder booing process, &istribution management, outboundtransportation, and Warehouse management systems.
s customers started demanding improved servicing standards, fast cycle time has
become the ey factor for business success, hether it is custom made tailoring service in
efore delving deep into logistics, a loo at the current business scene ill be great help.
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Scenario of Logistics in In"ia
t present, companies specialising in logistics operations in India use traditional
technologies and cater to stand alone services lie transportation, arehousing, clearing
and forarding. here is tremendous scope to upgrade the technology, integrate the entire
supply chain, improve productivity levels and bring don operating costs. ny
technology that can improve productivity in transportation operations ill be a great
boom to the economy both directly and indirectly ith opportunities for 10-1" per cent
reduction in costs. >esides the savings on donstream users of transport ill be much
higher and the cost multiplier effect on the economy ill be reduced to that e?tent.
%iven the emerging business and technological trends there are possibilities for adoption
of innovative logistics solutions specifically designed for India. In addition, there is a
re+uirement for an integrated strategy toards developing logistics and its related I
infrastructure and also enhancing its industry base.
In recognition of the groing need for technology-enabled solutions in logistics in India
and abroad, many companies such as eLogistics are taing shape. In fact, there are a
do/en multinational logistics companies such as (?el, >a? %lobal and 9enlo hich havestarted operations in India during the last fe years.
oday logistics management in India has become comple? ith about ten million related
outlets to cater to the needs of 1000 million people.
he logistics maret in India is estimated to be )s. "60,000 crores and constitutes 18 per
cent of the %&'. It is much higher than for the 4.. but loer hen compared to
countries lie :hina and =orea.
reduction in logistics costs by one percentage point ill mean a saving of [email protected] billion
or )s. "1,600 crores annually.
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>esides significant benefits can be reaped through the multiplier effect of better logistics
on all economic sectors.
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Cor$orate
Profi#e %&OUT &LU' D%RT
>L4( &) is outh sia*s leading integrated air e?press carrier and premium logistics-
services provider. It has the most e?tensive domestic netor covering over 18,AA0
locations, and service more than ""0 countries and territories orldide through its ales
alliance ith &L4(&)B vision is to establish continuing e?cellence in delivery capabilities
focused on the individual customer. In pursuit of sustainable leadership in +uality
services, they have evolved an infrastructure uni+ue in the country today.
tate-of-the-art echnology, indigenously developed, for rac and race, 9I, ()',
:ustomer ervice, pace :ontrol and )eservations.
>lue &art viation, dedicated capacity to support their time-definite morning deliveries
through night freighter flight operations.
Warehouses at 1@ locations across the country as ell as bonded arehouses at the 6
major metros of >angalore, :hennai, &elhi, 9umbai, =olata and
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It(s Com$etiti)e %")antage #ies in*
!e "art(s )ast an" !n$ara##e#e" Domestic Net+or,
Lined by some of the most advanced communications systems and positioned to offer a
consistent, premium, standardi/ed +uality of service.
% s$ectr!m of ser)ices to $ro)i"e c!stomi-e" so#!tions.
>lue dart is the only e?press carrier in the country today hich offers an entire range of
services that e?tend from a document to a charter-load of shipments. Its services are
relentlessly monitored to deliver a net service level of $$.$6D Eas on #ebruary, "005F.
It(s C!stoms an" Reg!#atory e/$ertise
:ompany had a dedicated team of specialists ho provide the e?pertise for customs as
ell as regulatory clearances at all tates ithin the country, to support seamless service
to the customer.
It(s Techno#ogy
&esigned to enhance the reliability of our operations and process efficiency, and add
value to the customer through time and cost savings.
It(s %ir Net+or,
he only one of its ind in the country today, that is focused on carriage of pacages as
its prime business, rather than as a by-product of a passenger airline. dedicated aviation
system to support >lue &art*s services is self-sustaining, ith its on bonded
arehouses, ground handling and maintenance capability.
Its financia# cre"ii#ity
#itch )atings India 'vt. Ltd. has assigned the highest #1G EIndF H# one plus EIndF
rating for their short term debt programme of )s. 80 crores. #urther, I:) Ltd. has also
assigned the highest 1G Epronounced one plusF )ating for their :ommercial 'aper
'rogramme of )s. "5 crores.
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Its Peo$#e force
:ommitted, diverse and over @,000 strong are companyBs most valued asset. ll
companyBs achievements have been possible because they have a team ho believes in
themselves and their company, a team ith a inning attitude. >lue dart is a learning
organi/ation, valuing self-development, and most of companyBs managers are
homegron.
MIL'STON'S
0123*
=hushroo &ubash, :lyde :ooper, and ushar Jani establish >lue &art :ourier ervices
ith a capital base of )s; 80,000. hey forge ties ith %elco (?press International 4.=.,
and introduce India*s first international air pacage e?press service.
0124*
>lue &art :ourier ervices becomes a %lobal ervice 'articipant of #ed(? ith the
ac+uisition of %elco (?press International by #ed(?. >lue &art :ourier ervices is the
first carrier in India to provide domestic and international on-board couriers, a hub-and-
spoe system and a 10.80 a.m. delivery service.
0122*
>lue &art :ourier ervices establishes real-time, on-line tracing for all international
shipments through :393, the #ed(? trac and trace system.
0110*
>lue &art (?press is registered as a private limited company, and introduces its
economical logistics service option, &art urfaceline. It indigenously develops its
domestic tracing system, :39-I9.
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0115*
>lue &art (?press 'vt. Ltd. connects its in-house domestic (-mail netor, and sets up
its employee satisfaction programme - urvey #eedbac ction E#F.
0114*
>lue &art (?press Ltd. goes public ith an e+uity offer of ".55 million shares, at a
premium of 1@ times, orth )s; 8A".5 million. >lue &art (?press Ltd. launches &art
pe? E&omestic ir 'acage (?pressF, a multi-modal, premium pacage delivery
service, and :39-II9, an advanced system hich includes trac and trace. >lue
&art viation is registered as a public limited company and becomes the first private
company to receive government permission for operation of cargo aircraft in India.
0116*
>lue &art viation ac+uires " >oeing 787-"00 freighters and receives 3 permission.
>lue &art (?press Ltd. develops its 9) Epace 9anagement llocation
)eservations and racingF system for its aircraft, the first cargo management system in
the country. >lue &art (?press Ltd. is aarded the %lobal ervice 'articipant ales
ard by #ed(? for outstanding sales performance.
>lue &art, :alcutta is proud to have the office inaugurated by 9other heresa of the
9issionaries of :harity, and Kobel 'eace 'ri/e Laureate.
0117*
>lue &art viation launches India*s first jet e?press airline. >lue &art (?press Ltd*s
turnover crosses the )s; 1 billion mar, as it e?pands its domestic netor by entering
into strategic alliances in Korth, outh and West India. >lue &art (?press Ltd. is the first
e?press company in India to receive an I3 $001 certification, and post its ebsite on the
internet. >lue &art (?press Ltd., #ed(? and the
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0118*
>lue &art (?press Ltd. signs agreements ith leading international airlines for
distribution of bonded cargo ithin its netor. >lue &art viation launches its domestic
charter operations.
0112*
>lue &art viation develops India*s first Load and rim softare for its >787# flights.
>lue &art (?press Ltd. launches 9)>3, its economical, pacaged door-to-door
product, and e?tends its delivery to over 1000 locations.
0111*
>lue &art (?press Ltd. moves to its state-of-the-art dministrative, echnology and
3perations uper hub, the >lue &art :entre, at 9umbai. t close pro?imity to both the
international and domestic airports, encircled by four five-star hotels, and e+uipped ith
the latest technology, the uper hub has improved efficiency and increased load-handling
capacity multifold. >lue &art (?press Ltd. Launches 'oer &art "000G, a softare that
provides customers free connectivity to its database, enabling customers to trac and
retrieve all information related to their shipments.
5999*
>lue &art viation ac+uires its 8rd aircraft on lease. he aircraft is scheduled for
operations on the >angalore-&elhi->angalore sector. >lue &art (?press Ltd. also
revamps its ebsite replacing it ith an interactive ebsite to support e-trade and
commerce and facilitate customer interface on the net.
5990*
>lue &art launches its 8rd aircraft operations on the >angalore-&elhi->angalore sector.
he :ivil viation 9inistry re+uisitions >lue &art aircrafts for relief operations into
earth+uae-battered >huj in %ujarat. echnology tools and customer softare -
9obile&art, 3n-Line 'ic 4p and hip&art - are developed in-house and launched. >lue
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&art declares 1;1 bonus shares. >lue &art, =olata moves into heritage building, =ana,
its ne premises inaugurated by r. Kirmala of the 9issionaries of :harity.
5995*
>lue &art is re-certified as one of a handful of Indian companies to the ne global I3
$001 - "000 standards for &esign, management and operations of countryide e?press
transportation and distribution service ithin the Indian ubcontinent and to international
destinations serviced through multinational e?press companies. >lue &art ends its
contract ith #ederal (?press and signs a path-breaing ales lliance ith the World*s
Ko. 1 international air e?press company, DHL Wor#"+i"e '/$ress. >lue &art crosses
100,000 shipments per day.
5993*
"008 - >lue &art ac+uires its fourth >oeing 787 freighter. With a thrust on strengthening
infrastructure, >lue &art establishes telve of its on offices in the outh, delivering to
an additional 1$A locations, e?pands its hub at >hiandi and sets up a bonded arehouse
in 9umbai. he company is selected a uper brand from over 700 brands across $A
categories by a jury of eminent mareting and advertising professionals. he company
celebrates its "0 years of service to the nation on 1$th Kovember "008
5994*
>lue &art inducts its @th aircraft into operation on 17th 9ay "00@, connecting lue &art (?press Limited. >lue &art continues to operate as an independent
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brand and provides a complete spectrum of domestic and international e?press services
through synergies ith &lue &art ould also leverage its vast customer base for global
distribution through its alliance ith &
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LOGISTICS IN &LU' D%RT
he Information echnology industry is, perhaps, typical of the changing and escalating
logistic demands of various industries today, irrespective of their category as *old* or *ne*
economy. In the I industry, the difference beteen success and failure is closely lined
to the supplyMvalue chain integration, of hich there are to distinct processes;
1. he delivery of goods to the customer in the most reliable transit period Eand
preferably the shortestF possible. *)eliable* alludes to a certain guaranteed transit time for
pacages to reach customers or the response that organisations need in the event of any
e?ceptions.
". he reverse flo of acnoledged signed delivery records ithout hich, in many
cases, recovery of bills are virtually impossible. (specially so in the case of companies
placing multi-location orders that could cover hundreds of cities. he tas for the supplier
is staggering - plan logistics for deliveries to all these locations, and hope for 100D of the
delivery records to be returned before bills can be submitted to the customer. In most I
companies, the role of *logistics* or *fulfillment* is ey.
With organisations moving toards close to perfect standards lie i? igma, interaction
ith logistics suppliers has taen on a critical role moving up sometimes to the level of
the :(3 of the organi/ation.
>lue &art (?press Limited applied and found solutions to these critical demands much
before other players could even recogni/e their need. hrough its e?ceptional people
processes, superior technology, and stress on +uality systems over the last, almost to
decades no, >lue &art as +uic to fulfill these needs;
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he country*s most reliable air and surface netor offer a pre-determined delivery
schedule ith close to 100D accuracy. he I industry could plan its production ith
precision and avoid e?pensive inventory build-up.
>lue &art offers the country*s most comprehensive communications technology. 9uch
before the internet as prevalentN >lue &art customers could dial into the netor
through 'oer &art "000 and trac their pacages. s an added option, #a? dart could
fa? a copy of the delivery record the minute the >lue &art system as updated.
he country*s only e?press airline ith a fleet of three >oeing 787s ensured that pacages
ere flon to their destinations overnight. nother tremendous advantage as that the
individual si/e of pacages that could be carried multiplied manifold.
)etrieval of signed delivery records posed the industry*s most intriguing problem. >lue
&art as +uic to understand this re+uirement and put in place a 100D retrieval system.
>lue &art not only handles large volumes and oversi/e pacages overnight - it also
provides the industry ith status of their shipments and retrieves such records as are
necessary for billing. he entire cycle has been considerably shortened, enabling the
industry to achieve healthy bottom-line.
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S'R:IC'S O; &LU' D%RT
R'GION%L S'R:IC'S IN S%%RC %R'%
&et+een In"ia< &ang#a"esh< &h!tan an" Ne$a#.
>lue &art offers the fastest, most reliable, door-to-door e?press
deliveries for your documents and pacages to countries in the ):
region through )egional 'riority. he service offers access to over
18,700 locations in India, and over A00 locations in >angladesh,
>hutan and Kepal, providing the idest coverage in the region through a +uality netor,
an integrated air and ground infrastructure dedicated to e?press transportation and
innovative technology support.
Regiona# Priority* Doc!ments =RPD>
he most dependable and secure delivery for non-dutiable, critical and important
shipments such as legal documents and tenders. he >lue &art (nvelope provides secure
and attractive pacaging for your documents, brochures and reports up to 500gms.
Regiona# Priority* Non@Doc!ments =RPDT#ast reliable and safe door deliveries for samples and non-commerical shipments.
:urrently available beteen India and Kepal only.
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Let see different type of regional services; -
DOM'STIC PRIORITA
he fastest, most reliable, door-to-door delivery
service ithin India and to >angladesh, Kepal
and >hutan for documents and small shipments
under 8"gs per pacage. he special benefits of this service are;
&elivery to over 18,700 locations in India
#ree pic-up from your location
)eal-time racing
)egulatory :learances
#ree :omputeri/ed 'roof of &elivery
D%RT %P'>
&art pe? is a door-to-door delivery service ithin India for
shipments eighing 10gs. nd above. It is the fastest, most
efficient delivery solution for commercial shipments that are
time-bound and are re+uired to undergo regulatory clearances,
or re+uire special handling.
&art pe? offers you an economical option of an irport-to-&oor service from the major
airports of :hennai, >angalore, 9umbai, &elhi, =olata and
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pe? locations serviced. customer may boo space for their shipments through
companyBs :ustomer ervice and deliver customer shipments to >lue &art viation
3ffice at the related airport.
&art pe? also offers a further economical option of a &oor-to-irport service.
customer may boo their shipments at any of companyBs locations serviced for this
product to any of the major airports. :onsignee ould be re+uired to collect the shipment
from the >lue &art viation office at the concerned airport.
Dart %$e/ offers the fo##o+ing enefits*
Wide 9aret )each
ingle-indo :learance
)eal-time Information
ime-&efinite &elivery
#ree 'roof of &elivery on &emand
peed
#le?ibility
(conomical
D%RT SUR;%C'LIN'
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&art urfaceline is an economical, door-to-door, ground distribution service ithin India
for shipments eighing 10 gs and above. It offers a cost-effective logistics option for
your less time-sensitive shipments, ith the folloing value-added benefits;
ime-bound &elivery
rac your hipment
)egulatory :learances
'ic-up :onvenience
ecure hipments
(conomical ariff
SM%RT &O>
mart >o? is a convenient, economic, pacaging unit
priced to include a door-to-door delivery service ithin
India. he units come in " si/es, 10gs and "5 gs, and are
designed to accommodate a variety of products. he special
benefits of using mart >o? are;
ide maret reach
peedy &elivery
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#ree pic-up
)eal-time racing
)egulatory :learances
'roof of &elivery
rouble #ree ervice
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INT'RN%TION%L S'R:IC'
International services of
>lue dart are taen over &
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6F 'acaging.
Different ty$es of internationa# ser)ices* @
%IRPORT TO %IRPORT
he airport-to-airport service is an air freight
service available on the flights operated by >lue
&art viation beteen the airports of =olata,
&elhi, 9umbai, >angalore, :hennai and
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>lue &art viation operates the only >oeing 787 freighters in India. he freighters have
an A-pallet configuration, and operations are supported by an in-house ground-handling
and maintenance capability, as ell as bonded arehouses at all the on-line stations, and
company-oned cargo handling assets. With +ualified, professionally-trained personnel,
>lue &art viation is positioned to offer the most superior +uality of service in the
country today.
:harters are operated on an ad-hoc basis. Kormally, charters have been used here
timely delivery of sensitive e+uipment or large loads is re+uired. In the past, >lue &art
viation has operated charters for carriage of P (+uipment for the 9iss World :ontest,
high-value P and >roadcasting e+uipment for :ricet 9atches around the country,
perishable +uaculture, :omputer peripherals and (lectronics, (mergency (+uipment
and large inventory for JI plants.
INT'RLIN'
>lue &art viation operates the only >oeing 787
freighters in India. he freighters have an A-pallet
configuration, and operations are supported by an in-house
ground-handling and maintenance capability, as ell as
bonded arehouses at all the on-line stations, and company-oned cargo handling assets.
With +ualified, professionally-trained personnel, >lue &art viation is positioned to offer
the most superior +uality of service in the country today.
he bonded arehouses ith customs personnel facilitate efficient transhipment of cargo
ithin India. his facility has enabled distribution of imports ithin the country and has
provided e?ports access to and from the gateays of international airlines. his provides
international airlines ith a cost-effective option to restrict their on-line stations ithin
India, and enhance their mareting possibilities at off-line locations by utili/ing the
distribution capabilities of >lue &art viation.
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:urrently, >lue &art has interline agreements signed ith "8 international airlines - ir
:anada, ir #rance, ir India, ir 9auritius, litalia, siana, >ritish irays, :argolu?,
:athay 'acific, :hina irlines, :ross ir, &as ir, (l l Israel irlines, (mirates y
:argo, =L9 )oyal &utch irlines, =uait irays, 'olar ir, audi rabian irlines,
ingapore irlines, ri Lanan irlines, iss ir, outh frican irays, and Catar
irays.
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'>'CUTI:' SUMM%RA ON '@COMM'RC'
he concept of e-commerce is donloading at a fairly rapid pace in the psyche of the
Indian consumer. In the metros, shortage of time is a big driver for online shopping. 3n
the other hand, accessibility to a variety of products maes audiences from smaller tonsand cities opt for the online route. 9ajor retailers face challenges in stocing their stores
ade+uately. 3ften, customers are unable to purchase items of their choice, thus prompting
them to resort to e-retailers.
#lipart has accorded a lot of importance in trust building e?ercise that is hy it has a
strong :ustomer upport eam hich helps the customers ith the ebsite guidance and
resolving issues.
#lipart uses its in-house logistics E#=LF as ell as third party logistics E8'LF services as
the logistics is one of the most important for a success of any ecommerce venture. long
ith the logistics, reverse logistics of #lipart is also ell developed ith a 80 day return
policy and flipart bearing courier charges for returned products.
#lipart hen it started employed the consignment model of procurement as it as the
most ris free ay to operate but then they changed to Inventory model to ensure
superior delivery times. >ut ith foreign direct investment E#&IF favoring the
maretplace model in pril"018, #lipart changed its business model to maretplace
model.
W )etail a pet project of #lipart no handles the inventory and arehouse
management. #lipart has continued to fare very ell in terms of the delivery time
because of their developed supply chain management and dedicated customer support
team to ensure customer delight. his causes them to build a lot of slac into their
e?isting systems causing higher costs at several points in the supply chain.
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M%R'T O:'R:I'W
India has an internet user base of about
"50." million as of June "01@. he
penetration of e-commerce is lo
compared to marets lie the 4nited
tates and the 4nited =ingdom but is
groing at a much faster rate ith a large
number of ne entrants. he industry
consensus is that groth is at an
inflection point.
4ni+ue to India Eand potentially to other developing countriesF, cash on delivery is a
preferred payment method. India has a vibrant cash economy as a result of hich A0D of
Indian e-commerce tends to be :ash on &elivery.
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)ising standards of living and a burgeoning, upardly mobile middle class ith
high disposable incomes
vailability of much ider product range Eincluding long tail and &irect ImportsF
compared to hat is available at bric and mortar retailers
>usy lifestyles, urban traffic congestion and lac of time for offline shopping
Loer prices compared to bric and mortar retail driven by disintermediation and
reduced inventory and real estate costs
Increased usage of online classified sites, ith more consumer buying and selling
second-hand goods
India*s retail marketis estimated at !@70 billion in "011 and is e?pected to gro to !675
billion by "016 and !A50 billion by "0"0, R estimated :%) of 7D. ccording to
#orrester, the e-commerce maret in India is set to gro the fastest ithin the sia-
'acific )egion at a :%) of over 57D beteen "01"R16.
s per India %oes &igital, a report by vendus :apital, a leading Indian Investment
>an speciali/ing in digital media and technology sector, the Indian e-commerce maret
is estimated at )s "A,500 :rore E!6.8 billionF for the year "011. 3nline travel constitutes
a si/able portion EA7DF of this maret today. 3nline travel maret in India is e?pected to
gro at a rate of ""D over the ne?t @ years and reach )s 5@,A00 :rore E!1"." billionF in
si/e by "015. Indian e-tailing industry is estimated at )s 8,600 crore E4!A00 mnF in
"011 and estimated to gro to )s 58,000 :rore E!11.A billionF in "015.
3verall e-commerce maret is e?pected to reach )s 1, 07,A00 crores E4!"@ billionF by
the year "015 ith both online travel and e-tailing contributing e+ually. nother big
segment in e-commerce is mobileM&< recharge ith nearly 1 million transactions daily
by operator ebsites.
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SWOT %N%LASIS O; ;LIP%RT
Strength* op Indian ecommerce portal
&iversified into electronic goods
o P: investment to build its on delivery system thereby reduce delivery time
:ash on delivery hich is maing 60D of its income
Wea,ness*
:oordination ith suppliers and courier as tough
'rice biasing to maintain the margins E e.g. Lo price for the best seller boo and
more price for the least antedF "@M7 customer care, thus even mid night is to delivered ithin "@ hours
O$$ort!nities*
lready oring toards customer delight ill obtain customer loyalty gradually
upplier database interface ith flipart ebsite for JI procurement
9obile internet usage is increasing there by chances of increase in sales through
mobile shopping.
Threats* mall players and emerging competitor
9ajor players lie ma/on
In capabilities to manage certain costs lie delivery cost, ban charges
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M%OR COMP'TITIORS
%ma-on.com is an mericaninternational electronic commerce company ith head+uarters in eattle, Washington,
4nited tates. It is the orld*s largest internet
company, based on revenue and number of
employees.
Sna$"ea#.com is an online maretplace, head+uartered in Ke &elhi, India. he
company as started by =unal>ahl and )ohit>ansal, in #ebruary "010.
e&ay Inc.,is an merican multinational
corporation and e-commerce company, providing consumer-to-consumer sales services
via Internet. It is head+uartered in an Jose, :alifornia, 4nited tates.
HomeSho$02 is an online and on-air retail and
distribution venture of Ketor 1A %roup, India.
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M%R'T S'GM'NT%TION
he process of defining and subdividing a large homogenous maret into clearly
identifiable segments having similar needs, ants, or demand characteristics. Its
objective is to design a mareting mi? that precisely matches the e?pectations of
customers in the targeted segment.
#e companies are big enough to supply the needs of an entire maretN most must
breadon the total demand into segments and choose those that the company is best
e+uipped to handle.
he four basic maret segmentation-strategies are based on
GEOGRAPHIC SEGMENTATION -
:() 3 I() 1, I() " K& I() 8 :II(
DEMOGRAPHIC SEGMENTATION -
75D of online users beteen the age group of 15-8@ years.
#lipart targets mainly the youth of the country,
BEHAVIOURAL SEGMENTATION
Web friendly people.
PSYCHOGRAPHIC SEGMENTATION
#lipart concentrates on more 'sychographic, hich helps in deciding here to
display ads online hey target online shoppers and people ho donBt online shop Ethus P: to
encourage themF
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M%R'T POSITIONING
n effort to influence consumer perception of a brand or product relative to theperception of competing brands or products. Its objective is to occupy a clear, uni+ue, andadvantageous position in the consumer*s mind.
Points of $arity*
(asy locating of products
:ompetitive prices.
Ko hassles of going to shops personally and shop for products
vailability of various products on one platform
&iscount on purchases.
etter user interface-one drag approach
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M%R'TING STR%T'GI'S
Word of mouth Einitial mareting even no they ant to satisfy customer so they
come bac for moreF %ood use of (3
We &3K3 sell old boos or used boos. ll the boos listed at #lipart.com
are ne boos. he boos listed at #lipart.com are K3 available for free
donload in eboo or ' format2 hus hen you search free eboos or pdf boos old or used boos flipart ill be
displayed. %ood use of (9
ds at proper places and use pay per clic to pay for ads
Pery easy eb interface
'ayment convenience
:ashMcard on delivery R there by encouraging students and people ith nocreditMdebit card to purchase in flipart, ith mobile internet penetration there is
chances of capturing rural maret E60D revenue by :3&F (9I Rby targeting price sensitive customers
Wallet R customer can recharge money online and purchase then and hen needed
those entering details alays is rectified, target heavy purchase and lu?ury
customer :ustomer conversion rate is so high more than 70D
'ersonali/ation of the user page
'roduct recommendation ith your previous purchases
'rice of the product taing account of various e?penses such as upplier
e?penses, ransportation e?penses, 'acaging e?penses, hipping e?penses,
:ourier e?penses, inventory maintenance e?pense, office and stationery e?penses,
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sales and advertisement e?penses, ta?es, depreciation, discount alloances and
many more e?penses.
)oughly about 5-7D profit per boo orders hich indicates that generation of
revenue is on volume basis.
&ifferentiated themselves by giving best selections, best services at loest best
possible prices. EPideofor the sameF
&iscounts up to 85D across all categories.
4pper edge in competitive pricing.
P#ace E
:hannel type; Words of mouth Eif e can say thatF hich hasbeen ey driver for
their groth.
When an order is placed they either serve the order from theirinventory or procure
the boo on demand from various suppliersand then deliver the customer.
s on date more than A0D orders of #lipart are handled viaarehouses hich
help in +uic and efficient service.
We deliver orders in 1 day in ier-I cities and "-8 days in ier IIcities and 8-5
days ier III cities
hipping and :ourier ould act as intermediaries in this process.
&elivery services through e-art and postal services
ie ups ith local vendors and courier firms Ethereby avoiding octroi chargesF
:ompany oned arehouse in major cities near airport
rying to achieve minimum returns
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If the courier canBt delivery to the location the product is shipped through
government post
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Warehouses are located in the following cities, often near airports
Bangalore
Chennai
Delhi Hyderabad
Mumbai
Noida
Pune
Kolkata
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Promotions @
Employees of divisions like Website Business Planning and!naly"#s E$P
Business Development Produ#t Managementand Marke"ng %upply&Chain
Management and Customer%upport are genera"ng revenue for it'
%ele#"on Criteria at (lipkart)&While years of e*perien#e areal+ays bene,#ial for a
#andidate (lipkart-s fo#us is to hire those+ho are able to #onsistently raise the
bar and introdu#e a varietyof innova"on to move this organi.a"on for+ard' !s
(lipkart gro+s +e feel it is absolutely ne#essary that our employees arealso able
to gro+ professionally +ith the organi.a"on'
!de/uate 0raining as per their roles and responsibili"es is given to them
a##ordingly and in#en"ves'
0elephone %ales for#e is only 12 of the total employees fo#using to redu#e the
unsold3goods not mu#h in demand'
Ma4ority of (lipkart are employed in Customer support division' 5t is the only #ustomer support division in 5ndia having 16*7#ustomer support
fun#"oning for issues su#h as regarding #hoi#e of the produ#t to pur#hase
shipping #ourier ho+ to order on +ebsite mode of payment gi8 vou#her order
status 9#an#ella"on and returns'
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Having even "e up +ith %kype for the same on the +ebsite for user delight'
:ni/ue tool of %ales Promo"on is !;liate on their +ebsite'
Publi#ity is by +ords of mouth publi#ity genera"ng trust and a##ountability to
users'
!s internet3+eb strategy used 3>31>?? +ith the #on#ept of
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:ompetitors see #lipart as the maret leader, ith the ac+uisition of letsbuy.com
%eneral public ant to try it once for its creative P: is maing people curious to
e?perience flipart.
Peo$#e*
ervice people, ales :lers, &elivery drivers, 9anagers, :omplaints department,
ccounting, Warranty people, echnical people, all or for the customer ease,customer satisfaction and customer delight.
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CONCLUSION
&LU'D%RT
Palue added services on the rise. >lue &art has started providing value-added serviceslie logistics management, supply chain management and arehousing facilities to its
clients. %oing forard demand for such services from corporates is liely to gro at a
fast clip. his is because by outsourcing such services to third party service providers
they ould be able to cut don on costs and improve their efficiency levels. #or the
courier companies such services ould be part of the overall value proposition they
ould be offering their clients apart from the normal pic up and delivery. uch services
have the potential for enhancing the margins of courier companies lie >lue &art. We
believe that >lue &art is best e+uipped to capitali/e on the groing opportunities in the
emerging areas of arehousing and supply chain management.
(-COMM'RC'
credible rival can do onders to an enterprise and #lipart is no different. he entry of
ma/on in India has enabled #lipart develop a lot of in-house innovation and
organically developed best-practices - that have no become the industry standard.
#lipart began operations on the consignment modelN goods ere procured from
suppliers on demand, based on the orders received through the ebsite. Later, the boos-
to-electronics e-shop adopted the arehouse model. he company had its on
arehouses, and maintained its on inventory.
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&I&LIOGR%PHA
Book: International Marketing By Manan Prakashan
www.bluedart.com
www.flipkart.com