PRESENTATION OFSUPPLY CHAIN MANAGEMENT

ONFlipkart

Submitted To: Submitted By:

Dr. Piyush Kendurkar Aditya GangradeMBA(MM- ‘A’)- II Sem

Roll no. : 55303

Institute of Management Studies

DAVV, Indore

INTRODUCTION

•Leading e-commerceCompany in India.•Founded in 2007 by Sachin Bansal and Binny Bansal•Started with initial capital of INR 4 lakh.•4600+ employees.•Subsidiaries are “We Read” “Mime 360” “Lets Buy”

VALUED AT 9900 Cr.

WS RETAIL

FLIPKART PAYMENT GATEWAY SERVICES

E-KART

BOOKS

CONSUMER GOODS

LIFESTYLE

Management Team

Sachin BansalCEO and Co-

founder

Binny BansalCOO and Co-

founder

Sachin spent his early years in Chandigarh. He graduated from IIT-Delhi with a degree in Computer Engineering. In 2006 he joined Amazon.com in India which he

later left to set-up Flipkart.

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

which include the finance and legal departments.

An avid gaming enthusiast, Sachin likes to spend most of his free time with his family.

Born and raised in Chandigarh, Binny went on to get a degree in Computer Engineering from IIT Delhi. He had a brief stint at Amazon before taking the

entrepreneurial plunge with Flipkart.

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

divisions like warehousing, logistics and customer support.

Binny is also passionate about soccer and NBA. An active sportsman, he used to captain his school basketball and soccer teams.

Acquisitions2010: WEREAD, a social book discovery tool.The stated goal was to give Flipkart a social recommendation platform for buyers to make informed decisions based on recommendations from people within their social network.

2011: Mime360, a digital content platform company.

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

2012: Letsbuy.com is India's second largest e-retailer in electronics. Flipkart has bought the company for an estimated US$ 25 million.

Marketing Strategy• Flipkart has been mostly marketed by word of mouth advertising.

• Customer satisfaction has been their best marketing medium. 

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

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

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

• All in all to create a great customer experience.

E-COMMERCE INDUSTRY IN INDIA

•Poised for rapid growth

• Fastest growing amongst Asia pacific region.

•Expanding into non-metropolitan India.

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

•Large retailers are looking forward to build an online presence.

2016$ 16 BILLION

2013

$12.2 BILLION

WORTH

MARKET DEMOGRAPHICSGEOGRAPHIC:

CATERS TO TIER 1, TIER 2 AND TIER 3 CITIES

USAGE RATE:

•Third largest internet user base of 124 million (10% internet penetration)

•India’s mobile user base is 87.1 million and is expected to double by

March 2015

•Flipkart projects its sales to reach  INR 10 billion by year 2014.

•On average, Flipkart sells nearly 20 products per minute and is aiming at

generating a revenue of  INR 50 billion (US$1 billion) by 2015.

•Flipkart has 10 million registered users; about a million visit the site

every day.

•The users of age 15-34 years are most susceptible to changes in

purchase/consumption behaviour.AGE GROUP: •Youngest online demographic globally .•75% of online users between the age group of 15-34 years.

51%40%

9%

CONTRIBUTION

TIER 1TIER 2+3RURAL

MARKET GROWTH AND TRENDSMARKET GROWTH:•Current size of e-commerce market in India $12.2 billion

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

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

 

MARKET TRENDS:

23%

29%

48%

SALE OF DIFFERENT PRODUCTS

ELECTRONIC GOODS

BOOKS

LIFESTYLE AND ALLIED PRODUCTS

• Investor’s trust

• Services and warehousing

• Payment options

• Established brand

• Industry condition: very high potential

STHENGTH

• Entry of international on-line competitors in Indian market

• Customers are not comfortable with online payment

• Not profitable operationally

• Time to build confidence among the customers

• Middle management retention issues.

WEAKNESS

Amazon.com/ Amazon.in

Junglee.com.

EBay

SnapDeal

Jabong.com

Homeshop18

Yebhi.com

Yepme.com

Shopclues.com

MAJOR COMPETITORS

Great customer service

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

Easy to use website, hassle free payment system

The user interface is sleek and easy to use.

Cash on delivery/Card on delivery mode of payment

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

Focused on user experience

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

KEY SUCCESS FACTORS

Advertisements By Flipkart

LOGISTICS

SUPPLY CHAIN

FLIPKART

RETAILERS

CUSTOMER

ORDERS PLACED WITH FLIPKART

ALLOCATION OF ORDERS WITH RETAILERS

RETAILER CONFIRMS THE AVAILABILITY OF STOCK

RETAILER DELIVERS

SATISFIED CUSTOMER

SEGMENTATIONMass

marketing

Segmentation

Mass customizat

ion

Flipkart , Flipifts.

Flipifts

•Extension of academic books•Vernacular language•liquor•Membership cards•sponsorship

TARGETING

2001201120210

100

200

300

400

500353

430 464

Youth population (million)

youth population (million)

35%

40%

16%

6%3%

Internet users by age

15-2425-3435-44

Internet users by age (source: survey)

• Flipkart targets mainly the youth of the

country,

• Web friendly people.

• Target markets should include

• People who do not relate well with English

language

• Academic institutions and people

associated with it

• Current buyers

Screenshot

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

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

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

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

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

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

Future Road Map

Thank you