Flipkart is a private company founded by Binny Bansal and Sachin Bansal. Established in the year 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 very apt and popular. As Indian’s are being accustomed to online purchases, they have contributed towards the success of this online website. Flipkart is no longer just a shopping website; it has become the heart and soul of the shopaholics.
People have started feeling that this online portal is giving more choices in products than others. In a recent development, the Indian Textile Ministry has signed with Flipkart a memorandum of understanding. Under this MOU, the handloom weavers will get an easy to use platform through Flipkart to display their products and conduct sales. Flipkart will also provide infrastructural support to the weavers. However, this move has been made for the growth of handloom industry but it will also benefit the website. To associate with any government project is in itself a testimony to their reputation.
Some of the company’s key competitors are:
- Snap Deal
- e bay
Product in the marketing mix of Flipkart
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 management and shipment of books was much easier. After its expansion, it started dealing with products like air coolers, Washing machines, air conditioner, life style products, stationary 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 own tablet phones and networking router under its personal range “DigiFlip”.
On February 5, 2014 in a special tie up with Motorola Mobility, Flipkart has provided a platform for the launch of ‘Moto G’. Online shoppers went crazy with the unveiling of this smart phone. 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 Techintroduced ‘Xiaomi Mi3’ on its platform. In the first phase on22nd July all the phones were sold in just 39 minutes and in the 2nd phase on 29th July the sold out was complete in only 5 seconds. On 5th August the sale was completed in just 2 seconds. This amazing response and hyper mania has helped in giving Flipkart an immense lift up.
Place in the Marketing mix of Flipkart
Flipkart functions entirely in India and it has its headquarters in the Garden City of Bangalore in Karnataka. It is owned by a Singapore based company and is registered over there. According to India’s foreign policy, a foreign company is not allowed e- retailing over here. Therefore, in India, Flipkart sells the merchandises through an Indian company WS Retail. Flipkart also provides its own platform to other companies who are interested in selling their goods. The website is very easy and hassle free. Browsing, keeping track of products, getting reviews, ordering goods and payment methods are very convenient for the individuals.
At first Flipkart started its operations on the consignment model in which they personally bought the book and couriered it. 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 real mediators in this setup. The quick and well-organized service is the reason why the company has been able to put its mark on the Indian market. Their delivery network is spread over thirty-seven cities with delivery being possible in any nook and corner.
Price in the Marketing mix of Flipkart
Though Flipkart started its venture with an investment of just INR 400,000, today its net worth is nearly 1billion dollars as its sales are increasing day by day. It still earns revenue of 50% from selling books online.Electronic commerce has become a huge hit because of Flipkart. Its price policy is very flexible because of online transactions. Amount to be charged is determined after looking at the innumerable expenses like transport expenses, supplier expenses, packaging costs, courier charges, shipping cost, office expenses, maintenance expenses, discount allowances, depreciation, taxes, advertisement expenses and many other expenses.
Discounts up to 35% are allowed periodically to boost up the sales and maintain competitive prices. For payments, Flipkart allows credit card transactions, cash payment after delivery, transaction through debit card, by swiping card on delivery, vouchers available as e-gift and net banking.
Promotions in the Marketing mix of Flipkart
Flipkart has changed the concept of multi brand retailing of products through internet in India. Its huge success has proved to be an inspiration for other companies. It operates mostly 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 Ad-words and SEO. These marketing tools have made them household names. Downloading the exclusive app of Flipkart helps in getting alerts about the current offers, order status, price drops, recent launches and various gift coupons.
Flipkart has also taken the help of creative and interesting advertisements so that an awareness and trust is generatedfor their 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 the social visibility where the tag line is “No Kidding No Worries”. Trained individuals are hired to fulfill their responsibilities adequately.The systematic planning and level of effort undertaken to reach such heights is commendable.