Flipkart Vs Amazon:a case study in e-retailing

By:Sumit Lokhande

SIEMENS Nashik Works1

E-Commerce in IndiaIT Act, 2000Explosive GrowthAccess to Internet: 11% IndiansGrowth: > 50% AnnuallySales by 2016: $8.3 billion*Contribution to India’s GDP by 2020: 4%**

Source:*Crisil (Credit Rating Information Services of India Limited )**KPMG

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Challenges in E-Commerce Industry:High return ratio → Reverse Logistics High Failure Rate for most Payment GatewaysLow Internet penetrationLow Smartphone penetrationNo Touch and feel experience.Logistics

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Amazon: An IntroductionAmerican International Headquartered at SeattleStarted as online bookstoreSoon diversified selling CDs, DVDs, software, electronics,

furniture, toys, etcMission: To be world’s largest Customer Centric

Company

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Amazon Business:Platforms for Merchants & Associates Many acquisition from 1998 till date

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Amazon.in Home Page

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Flipkart: An IntroductionIndian e-commerce company headquartered

in Bangalore, Karnataka. Founded by Sachin Bansal and Binny Bansal in 2007. Initial focus on online sales of books, but later it

expanded to electronic goods etcMultiple Payment Methods

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InnovationDelivery within 2 Days30 Days return policyCard Swipe on

deliveryComparison of

products made easyBrowsing made easyExclusive Launch at

aggressive prices. (Eg., Moto E)

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Flipkart: Home Page

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Sales Promotion: FlipkartApart from Television Commercial, Flipkart relies more

on word of mouth publicity.

Other Promotional Techniques include:Rebate & DiscountsRefundsQuantity Deals/ GiftsFull Finance @ 0%

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The Road Ahead For Flipkart:Glowing ReviewsNiche Product: DigiFlipValue Added Differentiation: Focus on customer &

Providing Customization of Products.Aggressive marketing for the Mobile App

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SWOT Analysis: Flipkart

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Business Level Strategies: FlipkartWord of mouth advertisingCustomer satisfactionWise Use of Search Engine

Optimization (SEO) and Ad WordsSocial MediaEkart

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Strategic Evaluation: Flipkart

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Flipkart Journey• First Mover Benefit• Pioneering innovation: Sales of Motorola, Xiaomi • Excellent Service and Product Quality• Ease of use• Market leader despite offering relatively high prices• Discounts and free shipping• Successful WOM marketing

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Flipkart’s Big Billion Day Sale:

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Marketing Tactic:• Special Mailers• Target Sales: Rs. 1 Billion •Achieved Sales:Rs. 6.14 Billion

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Market Place Model Inventory & Market Place Model

1706 SKUs4172 Offers

1535 SKUs2244 Offers

Camera Prices costlier Camera Prices cheaper

Laptop Prices Cheaper Laptop Prices costlier

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Business Model/ Marketing Mix

Flipkart is a Marketplace modelSub Brand ‘DigiFlip’Ekart Logistics for competitorsHand to Hand Exchange via Myntra Logistics

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Marketing InnovationFlipKARDs for Brand Loyal

Reward coupons for Product Reviews

Expert Advice from Tech Bloggers

Modeled Clothes as per Size Chart

FlipkardLoyalty Programme

Discounts. Coupons. Sale.

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Retaining Leadership PositionCustomized Products

Develop IT Infrastructure

Complement Product Purchase

Renovate & Expand BusinessIncrease No. of SellersMore features on Mobile App

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OPEN FOR QUESTIONS

THANK YOU

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