The Marketing mix of Flipkart analyses the 7Ps of Flipkart, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Flipkart. Flipkart is a private company founded by Binny Bansal and Sachin Bansal. Established in 2007, it deals with e-commerce. The company website is one of the most popular websites in India and has an employee count of more than ten thousand. Its slogan, ‘The Online Megastore,’ is apt and famous. As Indians are accustomed to online purchases, they have contributed to the success of this online website. Flipkart is no longer just a shopping website; it has become the heart and soul of shopaholics.
People have started feeling that this online portal gives prod product cut choices. In a recent development, the Indian Textile Ministry signed a memorandum of understanding with Flipkart. Under this MOU, the handloom weavers will get an easy-to-use platform through Flipkart to display their products online and conduct sales. Flipkart will also provide infrastructural support to the weavers. This move has been made for the growth of the handloom industry, but it will also benefit the website. Associating with any government project is in itself a testimony to its reputation.
Some of the company’s key competitors are:
- Type: E-commerce company
- Industry: Retail
- Founded: October 4, 2007
- Founders: Sachin Bansal and Binny Bansal
- Headquarters: Bengaluru, Karnataka, India
- Area served: India
- Current CEO: Kalyan Krishnamurthy
- Number of employees: 33,000+
- Major products: Electronics, fashion, home & kitchen, books, groceries, and more
Table of Contents
Flipkart Product Strategy
Flipkart is an online retailing industry and started its operations with the sale of books. For two years, it sold only books through its website as the distribution system for the management and shipment of books was much more accessible. After its expansion, it started dealing with products like air coolers, Washing machines, air conditioners, lifestyle products, stationery supplies, cell phones, computers, calculators, microwave ovens, water purifiers, laptops, cameras, audio players, products relating to health care, dishwashers, and e-books. Products sold on Flipkart have the same warranties of the brand if sold outside in a showroom.
It has recently launched its personal product range called “DigiFlip.” Under this brand, it offers products like computer accessories, camera bags, headphones, and pen drives. In July, Flipkart introduced its tablet phones and networking routers under its consumer electronics range “DigiFlip.”
On February 5, 2014, Flipkart provided a platform to launch ‘Moto G’ in a special tie-up with Motorola Mobility. Online shoppers went crazy with the unveiling of this smartphone. This awe-inspiring response resulted in the sales of nearly 20,000 mobiles in a few hours. Continuing their association, ‘Moto X,’ an Android smartphone, was introduced on March 19.
On May 13, ‘Moto E’ was launched at the same site, triggering the same response. Continuing this success story, Flipkart, in a tie-up with Xiaomi, introduced’ Xiaomi Mi3′ on its platform. In the first phase, on July 22, all the phones were sold in just 39 minutes, and in the 2nd phase, on July 29, the sold-out was complete in only 5 seconds. On August 5, the sale was completed in just 2 seconds. This fantastic response and hypermania have helped give Flipkart an immense lift up.
- Electronics and Appliances: This category includes smartphones, laptops, cameras, home appliances, audio equipment, and other electronic devices.
- Fashion and Apparel: Flipkart offers a broad range of clothing, footwear, and accessories for men, women, and children. This includes both branded and non-branded products.
- Home and Furniture: Customers can purchase furniture, home decor items, kitchen appliances, and bedding through Flipkart’s platform.
- Beauty and Personal Care: Flipkart provides a selection of cosmetics, skincare products, haircare items, and grooming essentials.
- Books and Stationery: Customers can buy books in various formats, including physical books and e-books, as well as stationery and office supplies.
- Toys and Games: Flipkart offers a diverse collection of toys, games, and baby care products for children of all ages.
- Groceries: Flipkart has entered the online grocery market, allowing customers to order fresh produce, groceries, and household essentials.
- Automotive and Sports: This category includes automotive accessories, sports equipment, and fitness gear.
- Jewelry and Watches: Customers can explore a range of jewelry, watches, and accessories on Flipkart.
- Health and Wellness: Flipkart provides health and wellness products, including dietary supplements, fitness equipment, and medical devices.
- Travel and Luggage: Travel enthusiasts can find travel accessories, luggage, and travel-related products.
- Entertainment: Flipkart offers a variety of entertainment products, including CDs, DVDs, gaming consoles, and gaming titles.
- Gifts and Personalized Items: Customers can purchase personalized gifts and gift cards for special occasions.
- Services: Through its platform, Flipkart has expanded into offering various services such as flight and hotel bookings, mobile recharges, and more.
Flipkart Pricing Strategy
Though Flipkart started its venture with an investment of just INR 400,000, today, its net worth is nearly 1 billion dollars as its electronic commerce sales are increasing daily. It still earns revenue of 50% from selling books online. Electronic commerce has become a massive hit because of Flipkart. Its price policy is very flexible because of online transactions.
The amount to be charged is determined after looking at the innumerable expenses like transport expenses, supplier expenses, marketing mix, packaging costs, courier charges, shipping costs, office expenses, maintenance expenses, discount allowances, depreciation, taxes, advertisement expenses, and other expenses.
Discounts of up to 35% are allowed periodically on the Flipkart app to boost sales and maintain competitive prices. For payments, Flipkart enables credit card transactions, cash payment after delivery, debit card transactions, swiping the card on delivery, and vouchers available as e-gift and net banking.
Flipkart’s pricing strategy is designed to offer customers a combination of competitive pricing, value-added services, and strategic promotions across product categories, ensuring a compelling value proposition:
- Competitive Pricing: Flipkart remains highly competitive online by frequently benchmarking its product prices against competitors. They aim to provide customers with cost-effective options while maintaining a perception of affordability.
- Value-Added Services: To differentiate itself, Flipkart offers value-added services such as Flipkart Plus, which provides free and faster shipping, early access to sales, and rewards. These services enhance the overall customer experience and incentivize loyalty.
- Discounts and Promotions: Flipkart frequently runs discounts, flash sales, and seasonal promotions, creating a sense of urgency and encouraging purchases. These promotions and their loyalty programs contribute to higher customer engagement and retention.
- Seller Collaboration: Flipkart collaborates closely with its network of sellers to ensure competitive pricing, quality products, and attractive deals. This collaboration enhances the overall value proposition for customers.
- Dynamic Pricing: Flipkart employs dynamic pricing algorithms that consider various factors, such as demand, supply, and customer behavior, to optimize prices in real time. This helps maximize revenue while offering competitive deals to shoppers.
Flipkart Place Strategy
Flipkart functions entirely in India, and its headquarters is in the Garden City of Bangalore in Karnataka. It is owned by a Singapore-based company and is registered there. According to India’s foreign policy, a foreign company cannot retail here. Therefore, Flipkart sells merchandise in India through an Indian company, WS Retail. Flipkart also provides its platform to other companies interested in selling their goods. The website is straightforward, and the business processes are hassle-free. Browsing, keeping track of products, getting reviews, ordering goods, and payment methods are very convenient for individuals.
At first, Flipkart started its operations on the consignment model in which they bought and couriered the book. Later, they opened many warehouses where the goods were stored safely. The first warehouse was opened in Bangalore and later in Delhi, Mumbai, Chennai, Hyderabad, Pune, Noida and Kolkata. As of today, more than five hundred suppliers are working for Flipkart. At least 80% of the orders placed are handled and controlled via warehouses. Shipping companies and courier companies are the actual mediators in this setup.
The quick and well-organized delivery service is why the company has been able to put its mark on the Indian market. Their delivery network is spread over thirty-seven cities, making delivery possible in any nook and corner.
Flipkart’s place strategy focuses on establishing a robust e-commerce business presence and expanding its reach to serve customers effectively:
- E-commerce Dominance: Flipkart primarily operates as an online marketplace, offering various products accessible to consumers across India. Its user-friendly website and mobile app ensure easy access to a broad customer base.
- Last-Mile Delivery: Flipkart invests in efficient last-mile delivery logistics, including partnerships with courier services and its delivery network, to ensure timely and reliable product delivery to customers’ doorsteps.
- Warehousing and Fulfillment Centers: Flipkart strategically places warehousing and fulfillment centers nationwide, allowing for streamlined inventory management, quicker order processing, and reduced delivery times.
- Seller Ecosystem: Flipkart fosters a robust seller ecosystem, enabling small and large businesses to reach customers through their platform. This strategy expands its product catalog and geographic coverage.
- Omni-Channel Presence: Flipkart may explore collaborations with physical retail stores or offer pickup points where customers can collect their online purchases in person, blending e-commerce with traditional retail for added convenience.
Flipkart Promotion Strategy
Flipkart has changed the concept of multi-brand retailing products through the internet in India. Its huge success has proved to be an inspiration for other companies. It operates primarily through mouth advertising. The satisfied customers have been their best promoters. To have a firm grip on the online world, Flipkart has used the services of Google AdWords and SEO. These two marketing strategies and tools have made them household names. Downloading the exclusive Flipkart app helps get alerts about current offers, order status, price drops, recent launches, and various gift coupons.
Flipkart has also used creative and exciting advertisements to generate rate awareness and website amongst the people. Their first campaign was shown on TVC with the concept that books can be delivered with just a single click. Recently, an ad has been launched to increase social visibility with the tagline “No Kidding, No Worries.” Trained individuals are hired to fulfill their responsibilities adequately. The systematic planning and effort undertaken to reach such heights of customer satisfaction is commendable.
Flipkart’s promotion strategy emphasizes the following vital elements of the marketing strategy:
- Seasonal Sales and Discounts: Flipkart regularly conducts high-profile sales events, such as “Big Billion Days” and “Festive Season Sales,” offering substantial discounts and exclusive deals to attract and engage customers during peak shopping.
- Targeted Digital Marketing: Flipkart leverages digital advertising and social media platforms to reach its target audience, employing personalized recommendations and retargeting to enhance customer engagement and conversion rates.
- Customer Loyalty Programs: Flipkart offers loyalty programs like “Flipkart Plus” to reward and retain customers, providing benefits such as free shipping, early access to sales, and exclusive rewards, fostering long-term customer relationships.
Some Recent Video ads and Print ads of Flipkart are:
Flipkart People Strategy
The “People” aspect of the Service Marketing Mix focuses on the employees, management, and every person who directly or indirectly influences the service experience. For a company like Flipkart, one of India’s leading e-commerce platforms, “People” is crucial in delivering exceptional service and maintaining customer satisfaction. Here are some key points about the “People” of Flipkart:
- Customer-Centric Workforce: Flipkart’s workforce is trained with a robust customer-centric approach, prioritizing customer satisfaction in all their operations, from product listing to after-sales service.
- Skilled Employees: The company invests in hiring skilled employees across various functions such as technology, customer service, supply chain management, and marketing to ensure efficient and innovative service delivery.
- Training and Development: Flipkart provides regular training and development programs to keep employees updated with the latest e-commerce trends, technologies, and customer service practices.
- Diverse and Inclusive Culture: Flipkart promotes a diverse and inclusive work culture, encouraging employees from different backgrounds and perspectives to contribute to the company’s success.
- Leadership Team: The leadership at Flipkart, including founders, senior management, and team leaders, plays a vital role in shaping the company’s strategy, culture, and customer focus. They are instrumental in driving innovation and operational excellence.
- Customer Support Team: Flipkart’s customer support team is crucial in handling inquiries, complaints, and feedback. They are trained to provide quick and practical solutions to enhance customer satisfaction and loyalty.
- Delivery and Logistics Personnel: The delivery and logistics personnel are the face of Flipkart for many customers. Their efficiency, friendliness, and professionalism significantly impact the customer’s shopping experience.
- Technology and IT Staff: Given the online nature of the business, Flipkart’s technology and IT staff are key to ensuring a smooth, secure, and user-friendly online shopping experience. They work on website development, maintenance, data security, and innovation.
- Vendor Relationship Managers: These individuals work closely with sellers on Flipkart’s platform, ensuring that the vendors meet the company’s quality standards and delivery commitments. They play a crucial role in maintaining a broad and diverse product catalog.
- Performance and Feedback Systems: Flipkart has established performance measurement and feedback systems to continuously monitor and improve the service quality delivered by its people. This includes customer feedback mechanisms, employee performance reviews, and vendor ratings.
Flipkart Process Strategy
The “Process” element of the Service Marketing Mix refers to the procedures, mechanisms, and flow of activities by which services are consumed. For Flipkart, an e-commerce giant in India, the process is integral to ensuring customer satisfaction and efficiency in service delivery. Here’s an overview of the key processes that define Flipkart’s service delivery:
- Website Navigation and User Interface: The process starts with a user-friendly website and mobile app interface, making it easy for customers to browse, search for products, and find detailed product information. The ease of navigation and the intuitive user interface are crucial for a positive shopping experience.
- Order Placement Process: Flipkart has streamlined the order placement process, allowing customers to add items to their cart quickly, choose from multiple payment options (credit/debit cards, net banking, cash on delivery, and UPI), and complete their purchase with minimal steps.
- Order Confirmation and Communication: Once an order is placed, customers receive immediate confirmation via email and SMS, including order details and an estimated delivery date. This process keeps the customer informed and sets expectations for delivery.
- Inventory Management: Behind the scenes, Flipkart uses sophisticated inventory management systems to ensure that products are in stock and ready for dispatch. This includes real-time inventory tracking and automated restocking processes.
- Order Fulfillment and Logistics: Flipkart’s advanced logistics network, including its supply chain arm, Ekart, ensures efficient picking, packing, and shipping processes. They use a combination of warehouses and fulfillment centers across India to minimize delivery times.
- Delivery Process: The delivery process is designed to be flexible, with options for scheduling delivery times and secure packaging to prevent damage. Delivery personnel are trained to handle products with care and provide a good customer experience at delivery.
- Customer Service and Support: Customer support processes include multiple channels for customer queries and complaints, such as email, phone support, and chatbots. These systems are designed to provide quick and effective resolutions to customer issues.
- Returns and Refunds Process: Flipkart has a customer-friendly returns policy, allowing customers to return products within a specified period if unsatisfied. The process for initiating returns is simple, with clear guidelines on returning products and receiving refunds or replacements.
- Feedback and Review Mechanism: Customers are encouraged to leave feedback and reviews for products and the service received after purchase and delivery. This process helps Flipkart to continuously monitor and improve the quality of its services and product offerings.
- Continuous Improvement: Flipkart regularly analyzes data from its various processes to identify areas for improvement. Whether optimizing the website interface, streamlining the logistics network, or enhancing customer support, continuous process improvement is integral to Flipkart’s strategy.
Flipkart Physical Evidence Strategy
Physical evidence in the service marketing mix refers to the environment in which the service is delivered and any tangible goods that help to communicate and provide the service. For Flipkart, an e-commerce platform, physical evidence plays a crucial role in shaping customer perceptions and experiences, even though it primarily operates in a digital space. Here are key points about the physical evidence of Flipkart:
- Website and Mobile App Design: Flipkart’s website and mobile app’s design, layout, and usability serve as the primary physical evidence for customers. A user-friendly interface, attractive design, and easy navigation enhance customer experience and satisfaction.
- Branding Elements: Flipkart’s logo, color scheme, and mascot (the kid with a shopping cart) are consistent across all platforms and marketing materials. These elements help in creating a solid brand identity and recall.
- Packaging: The quality and design of Flipkart’s packaging materials are a significant part of its physical evidence. Sturdy, branded packaging protects items during shipping and reinforces the brand’s image. The use of eco-friendly packaging materials also reflects the company’s commitment to sustainability.
- Delivery Vehicles: Flipkart’s delivery fleet, often branded with the company’s logo and colors, serves as mobile physical evidence. The visibility of these vehicles in cities and neighborhoods reinforces the brand’s presence and reliability.
- Order and Shipping Documentation: Printed invoices, shipping labels, and return forms with each order are tangible proof of the transaction and the company’s attention to detail.
- Customer Support and Communication: Email confirmations, SMS alerts, and support correspondence, although digital, serve as physical evidence by providing tangible proof of the company’s responsiveness and customer service quality.
- Warehouses and Fulfillment Centers: While not directly experienced by most customers, Flipkart’s investment in state-of-the-art warehouses and fulfillment centers is critical to its service delivery infrastructure. The efficiency and scale of these facilities indirectly contribute to customer satisfaction by ensuring fast and accurate order processing.
- Retail Outlets for Order Pickup: In some cases, Flipkart offers the option for customers to pick up their orders from designated retail outlets or kiosks. These physical locations provide tangible evidence of the brand and its service network.
- Product Quality and Authenticity: The quality of products customers receive and any authenticity certificates for specific items are physical evidence of Flipkart’s commitment to quality and trust.
- Customer Reviews and Feedback: Online customer reviews and ratings, while not physical in the traditional sense, are tangible evidence of other customers’ experiences and satisfaction levels with Flipkart’s service.
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