Consumer expection from online marketing with respect to flipkart in

Bangalore city

CHAPTER 1

INTRODUCTION

Online marketing is the practice of leveraging web-based channels to spread a

message about a company’s brand, products, or services to its potential customers. The
methods and techniques used for online marketing include email, social media, display
advertising, search engine optimization, Google AdWords and more. The objective of
marketing is to reach potential customers through the channels where they spend their time
reading, searching, shopping, and socializing online.

Widespread adoption of the internet for business and personal use has generated new
channels for advertising and marketing engagement, including those mentioned above. There
are also many benefits and challenges inherent to online marketing, which uses primarily
digital mediums to attract, engage, and convert virtual visitors to customers.

Online marketing differs from traditional marketing, which has historically included
mediums like print, billboard, television and radio advertisements.

Before online marketing channels emerged, the cost to market products or services
was often prohibitively expensive, and traditionally difficult to measure. Think of national
TV ad campaigns, which are measured through consumer focus groups to determine levels of
brand awareness. These methods are traditionally lso not well-suited to controlled
experimentation. Today, anyone with an online business (as well as most offline businesses)
can participate in online marketing by creating a website and building customer acquisition
campaigns at little to no cost. Those marketing products and services also have the ability to
experiment with optimization to fine-tune their campaigns’ efficiency and ROI.

Benefits Of Online Marketing

A key benefit of using online channels for marketing a business or product is the
ability to measure the impact of any given channel, as well as how visitors acquired through
different channels interact with a website or landing page experience. Of the visitors that
convert into paying customers, further analysis can be done to determine which channels are
most effective at acquiring valuable customers.

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Analytics for web or mobile app experiences can help determine the following:

 Which online marketing channels are the most cost-effective at acquiring customers,
based on the conversion rate of visitors to customers, and the cost of those visitors.

 Which channels are effective at acquiring and driving higher lifetime value for

customers — such as email marketing, which drives repeat purchases to prior
customers.

 Which cohorts of customers exhibit strong engagement behavior and high potential
for upsells — such as software or mobile apps, which expect to sell more products to
customers with high engagement.

Online Marketing Tools

There are a number of tools that can be used to build and maintain a robust online
marketing program:

 Email Marketing

 Social Media Marketing

 Search Engine Optimization (SEO)

 Display Advertising

 Search Engine Marketing (SEM)

 Events & Webinars

 A/B Testing & Website Optimization

 Content Marketing

 Video Marketing

 Marketing Analytics

 Marketing Automation
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 Customer Relationship Management (CRM)

 Content Management System (CMS)

 Pay-per-click (PPC) Advertising

 LinkedIn Ads

 Affiliate Marketing

Examples Of Online Marketing

Some examples of online marketing campaigns include:

 Canon advertises for search keywords related to "photography" on Google, Yahoo,

and Bing search engines to market their cameras to a relevant audience to drive traffic
to a specific webpage.

 Whole Foods collects email addresses on their website to create email lists that can be
used to advertise new products, sales, and events in their stores.

 Dove creates video advertisements and shares them with their audience on Facebook,
Twitter, and other social media platforms to promote favorable conversation about
their brand and products.

 Bite Beauty partners with influencers to promote a new lipstick to their target
audience of high-quality, beauty enthusiasts.

Although online marketing creates many opportunities for businesses to grow their
presence via the internet and build their audiences, there are also inherent challenges with
these methods of marketing. First, the marketing can become impersonal, due to the virtual
nature of message and content delivery to a desired audience. Marketers must inform their
strategy for online marketing with a strong understanding of their customer’s needs and
preferences. Techniques like surveys, user testing, and in-person conversations can be used to
understand the overall user experience.

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Online marketing can also be crowded and competitive. Although the opportunities to
provide goods and services in both local and far-reaching markets is empowering, the
competition can be significant. Companies investing in online marketing may find visitors’
attention is difficult to capture due to the number of business also marketing their products
and services online. Marketers must develop a balance of building a unique value
proposition (UVP) and brand voice as they test and build marketing campaigns on various
channels.

How to Get Started

The first step to getting started with online marketing is to evaluate your goals and
make sure they are measurable. Are you hoping to sign up 100 new customers? Generate
1,000 leads to fuel your B2B sales process? Build an email subscriber base of 10,000 people?

After that, you need to make a choice about how to construct an online presence that
helps you achieve that goal and create corresponding a marketing strategy for these channels.
Maybe you need to set up an e-commerce site. If you’re interested in blogging to drive
awareness and subscribers, look into setting up a blog and strategize on how to create great
content that would encourage sharing on social media channels.

Partnering with a customer that is willing to evangelize your business by creating a

case study or infographic can be powerful social proof as customers are evaluating your
company. A simple website or landing page with a lead capture form can help you start
developing your brand and generating traffic. A basic analytics platform (like Google
Analytics, which is free) can help you start to measure how you are tracking your marketing
efforts towards your initial goal.

Disambiguation

Online marketing is also known as internet marketing, web marketing, digital

marketing and search engine marketing (SEM). Online advertising and internet advertising
are techniques involved with online marketing, but are not synonymous with online
marketing.

Social media marketing

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Social media marketing is all marketing which goes on within social networks such as

Facebook, Twitter, LinkedIn, MySpace, and many more. For example Facebook has quite a
complex social media advertising program, which allows the advertiser to focus on over 1
billion people, based on their location, age and other attributes. There are other sections on
marketing teacher with more detail on Facebook advertising programs.

Opt-in e-mail marketing

Opt-in e-mail marketing is exactly what it says on the tin. Visitors or clients are encouraged
to opt in, or in other words sign up for an e-mail newsletter. It is that simple! The idea is that
participants opt-in with permission, rather than simply being added to a database without
their knowledge. This is also known as permission marketing. Again Marketing Teacher has
plenty of information to help you learn about e-mail marketing.

Display advertising

Display advertising is often the first type of advertising that springs to mind when thinking
about the Internet; display advertising is simply the adverts that you see when you visit any
website. Examples could include banner adverts which run across the top of Page, or far more
rich and complex adverts such as video adverts; many of the banner adverts and display
adverts that you see are part of large programs such as Google AdWords, or similar.

Online PR or Digital PR

Online public relations, or Digital Public Relations (DPR), tend to be digital marketing
communications which encourage a positive perception or profile of your business or
organisation. There are lessons on public relations on Marketing Teacher if you need a
refresher! However the business will be aiming to generate positive blogs, re-tweets,
Facebook shares, and similar online PR. Be aware that PR whether online or off-line does
have a cost, and public relations is not free. In order to generate favourable content written on
your behalf, there is a large investment in terms of effort and cash. Your online public
relations might be a mention on a news channel, either in text or video, you might also
receive positive commentary on podcasts, although these are becoming less popular. Viral
campaigns whereby an interesting or entertaining fact or video is circulated by e-mail or

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social networks is probably a better example of a contemporary public relations approach.

There are examples of viral marketing on Marketing Teacher.

Search engine marketing

Search Engine Marketing, or Search Engine Optimisation SEO, employ marketing tools
which attempt to gain the best position possible for your business in search engines such as
Google or Bing. Once you have attracted a new visitor, the positioning of text or Calls-To-
Action (CTA) will keep a visitor on your site for longer, and will start to move them along
your marketing tunnel.

Other online relationships

There are a number of other online relationships which come under the heading of digital
marketing, or digital media channels. These will include an array of other approaches. Here
are some popular examples:

• Price comparison sites where the cost of holidays, insurance and other consumables are
compared. Obviously some comparison sites are more open and honest in terms of the results
that they deliver, whilst others are less so.
• Affiliate marketing sites are also quite interesting to study and do tend to generate some
niche income from many small sites. Amazon has a very successful affiliate program
whereby small site owners can place code upon their site to advertise books which Amazon
sources and delivers. So you might have a website which focuses upon market gardening, and
you might advertise books which explain how to grow tomatoes.
• Link building is also often considered a way of developing online relationships; however be
very cautious with this. Google especially considers strong or informed links to your website
as a benefit when deciding upon your position within search results. Obviously many
Webmasters have caught on to this and tried different linking strategies to falsely claw their
way to the top of the search engine results. All links need to be natural.

With the emergence of new communication channels via the Internet, we have seen an
emergence of new ways that marketing promotions can be launched and new ways that
marketing attacks can be initiated. As a U.S. presidential candidate, Barack Obama began
using “viral marketing” techniques early in his campaign for the 2008 elections through

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extensive use of Internet social networking (Tumulty, 2007). Obama’s Democratic party
opponent, Hilary Clinton, was the victim of a damaging chain email campaign, in which she
is falsely identified as having an involvement with the defense of Black Panther members
accused of tortuous murders (Snopes, 2005). There is little scholarly literature or guidance on
this topic in part because it is so new. Our current concepts and models in the marketing
discipline were formulated around promotional media, modes of service delivery, ethical
considerations, and such that were common before the Internet existed. Our thoughts on
integrated marketing communications (IMC) and corporate reputation management are based
on tactics such as traditional press releases to paper news media, whether that be to promote a
new product or to react to a negative event such as an oil spill. Traditional marketing models
aren't especially helpful in formulating corporate communication strategies in an era when a
competitor or a single disgruntled customer can post negative comments on websites that
become indexed on search engines, or when a competing politician reaches a younger
demographic of campaign donors via non-traditional online media. Of interest in this article
is the observation of emerging issues in marketing communications, in light of an integrative
model of diffusion. Our hope is that this model can help us in the future to better understand
how emerging communication channels are enabled and manipulated. Scholarly inquiry into
new online marketing tactics has perhaps been inhibited because diffusion models in
marketing are concerned with how consumers adopt new kinds of physical products, and
these models don’t lend themselves very well to understanding how people adopt new
methods of communication and how marketers can adapt to those new methods of
communication.

Diffusion Through Communication Channels

The adoption of new methods of communication – MySpace, Facebook, YouTube, Epinions,

personal blogs and websites, online message boards, and such – have enabled marketers to
reach new markets in ways that are very different from traditional advertising channels.
These sorts of communication channels have also enabled competitors and detractors to
launch attacks that simply aren’t possible through traditional marketing channels. For
example, political candidates can start blogs or websites to express positive personal opinions
of themselves or negative opinions of others, and these positive and negative statements now
become part of the indexing on search engines. The ability to quickly reach deeply into a

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target audience wasn't possible before these Web based applications; the ability to reach a
target audience at any speed without the substantial cost of advertising or without the media
gatekeepers who could pass or block publicity attempts has only been possible since these
Web based applications have been available.

Interest in this article is in suggesting the components that enable newer forms of online
communication. In order to do this, we need to look at the concept of diffusion of
innovations. Everett Rogers, perhaps the most well-known person associated with this
concept, defines the diffusion process as an innovation which is communicated through
certain channels over time among members of a social system (Rogers, 1976). Rogers was
originally looking at issues such as how rumors spread in rural settings, and this most
certainly seems to be a reasonable approach to understanding the spread of information or
misinformation via newer technologies such as chain email, blogs, or social networking
websites.

The present authors propose, however, that we have to expand a bit on Rogers' diffusion idea
by adding additional infrastructures to the more singular notion of a social communication
channel. To understand how marketing communications happen on the Internet, we have to
expand on the idea of a social communication network by looking at factors that enable that
social network to exist in the first place. In adapting Rogers' idea to the diffusion of new
products, Gatignon and Robertson (1985) proposed that in addition to Rogers’ basic elements
of communication channels, time, and a social system, we need to also consider the role of
marketing and competitive actions.

That is, in order for spaces such as Facebook, Epinions, or personal blogs to exist, there has
to be some sort of commercial role for these. Without some sort of financial incentive,
nobody would offer hosting services for personal websites at prices that individual hobbyists
are willing to bear. Without some sort of commercial and/or competitive incentive, nobody
would have enough motivation to run an extensive social networking system of the sort that
is required to maintain applications such as Facebook or MySpace.

Additionally, there absolutely must be the technological infrastructure on which such new
social systems ride. Before the Internet, servers, networking protocols, Web browsers,
userfriendly blogging applications, and such, the communication channels that are discussed

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herein were not available. Gaining greater exposure to online communication channels can
require little more than acquiring physical resources. One common way to thwart a marketing
competitor’s ability to communicate is to block or damage those physical resources, as in a
denial of service attack

The remainder of the article focuses on the infrastructures that would appear to enable the
diffusion of online communication channels. The hope is that we can gain a better
understanding of how to manage an organization's integrated marketing communications
(IMC) by understanding what can be enabled by these basic infrastructures rather than by
sorting through every month's new online marketing tactic or by thumbing through a
marketing management textbook that is based on traditional media and traditional ways of
thinking.

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CHAPTER 2

RESEARCH DESIGN

2.1 TITLE OF THE PROJECT

“A study on customer expectation from online marketing with respect to Flipkart in

Bangalore city”

2.2 OBJECTIVES OF THE STUDY

The following objectives were drawn for the study

1. To study and analyse the different online marketing techniques available

2. To study and understand the online marketing strategies of Flipkart
3. To study and understand what the customers expect from the online marketing
4. To study and suggest good online marketing techniques to the company

2.3 STATEMENT OF THE PROBLEM :

With the changing market scenario and economical growth, the demand for online
shopping has increased. Explosion of e-commerce has changed the buying patterns and
preferences of customers. The important brands are also moving towards e-commerce
technology for increased sale of their products.

There is no doubt about it that e-commerce has made the transactions smoother,
quicker, faster and easier. Both the sellers and the buyers get benefited by this technology. As
we all are aware that Commerce and Business are the backbones of a country’s development,
if they were supported by the electronic technology and tools like e-commerce, it will make
wonders in the economical growth of the country. An important part of e –commerce
is online shopping. It helps in many ways both parties, the buyer as well as the seller. The e –
commerce technology and the usage of online shopping has increased in tremendous ways in
India. Today almost every big company has adopted these technologies to increases sales, to
make branding all over the globe.

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Hence there is a need for research studies which can suggest an improvement to the e-
commerce technologies in India

2.4 RESEARCH METHODOLOGY

Both qualitative to better define our research problem and get a deeper insight into it
and quantitative methods to produce data that can be statistically analyzed and whose results
can be expressed numerically were used.

2.5 TYPE OF RESEARCH

Exploratory research is a type of research design that has its primary objective the
provision of insight and understanding of problem setting. The nature of research is
exploratory based on sample that provides insight understanding and problem setting. It
involves approaches such as informal discussion with Flipkart officials in the initial stage.

The research was also descriptive research i.e. to identify the cause of something that
is happening or something happened because of that cause. The research will be a
quantitative analytical research which will be descriptive in nature.

2.6 SAMPLING TECHNIQUE :

The sampling technique used here is a non random sampling technique called quota
sampling i.e. the population is divided into subclasses and then picking up the data non-
randomly. In the present case, we have selected Competitors as well as Business Sectors
based on their revenue among the groups. The company showing the highest revenue in their
respective field is taken.

2.7 DATA COLLECTION STRATEGY

Both primary and secondary data was collected. In Primary data, order booking,
interview of Flipkart official are evaluated. The secondary data was gathered through books,
journals, articles, web-sites and various companies website of different business sectors.

2.8 DATA ANALYSIS STRATEGY :

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The analysis of the available data will be based on the tools and techniques used in
financial management and statistics. Mainly MS Office Excel Package would to use to carry
out the hypothesis testing and descriptive statistics.

2.9 LIMITATIONS OF THE STUDY

 The study was purely based on the information given by the respondents and there are
chances for gave wrong data.
 The time period was not sufficient for the study
 The sample size is 100, so the respondent’s opinion may not reflect the exact scenario.

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CHAPTER 3

COMPANY PROFILE

Flipkart, is an E-Commerce company established in 2007 by Sachin

Bansal and Binny Bansal. It operates exclusively in India, with headquarters
at Bangalore, Karnataka. Flipkart has launched its own product range under the name
"DigiFlip" with products including tablets, USBs, and laptop bags. Flipkart also has its own
range of personal healthcare and home appliances under the brand "Citron" and apparels
under the brand "Flippd".

In May 2014, Flipkart received $210 million from DST Global and in July it raised $1
billion led by existing investors Tiger Global and South Africa's media group Naspers.
Flipkart's last fundraising round in December had pegged its valuation at $12 billion

History

Flipkart (Company) was founded in 2007 by Sachin Bansal and Binny Bansal, both

alumni of the Indian Institute of Technology Delhi. They had been working
for Amazon.com previously. The business was formally incorporated as a company in
October 2008 as Flipkart Online Services Pvt. Ltd.

 During its initial years, Flipkart focused only on books, and soon as it expanded, it
started offering other products like electronic goods, air conditioners, air coolers, stationery
supplies and life style products and e-books. The first product sold by them was the
book Leaving Microsoft To Change The World, bought by VVK Chandra from Andhra
Pradesh.

Flipkart now employs more than 16000 people. Flipkart allows payment methods
such as cash on delivery, credit or debit card transactions, net banking, e-gift voucher and
card swipe on delivery.

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Acquisitions

 2010: WeRead, a social book discovery tool.

 2011: Mime360, a digital content platform company.
 2011: Chakpak.com, 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, an Indian e-retailer in electronics. Flipkart has bought the
company for an estimated US$25 million. Letsbuy.com was closed down and all
traffic to Letsbuy has been diverted to Flipkart.
 2014: Acquired Myntra.com in an estimated   20 billion (2,000 crore, about US$319
million) deal.

Finance

Initially, the founders had spent   400,000 only for making website to set up the
business.  Flipkart has later raised funding from venture capital funds Accel India (US$1
million in 2009) and Tiger Global (US$10 million in 2010 and US$20 million in June
2011). On 24 August 2012, Flipkart announced the completion of its 4th round of $150
million funding from MIH (part of Naspers Group) and ICONIQ Capital. The company
announced, on 10 July 2013, that it has raised an additional $200 million from existing
investors including Tiger Global, Naspers, Accel Partners and Iconiq Capital.

Flipkart's reported sales were   40 million in FY 2008–2009,   200 million

in FY 2009–2010 and   750 million for FY 2010–2011. In FY 2011–2012, Flipkart is set to
cross the   5 billion (US$100 million) mark as Internet usage in the country increases and
people get accustomed to making purchases online. Flipkart projects its sales to reach   10
billion by year 2014. On average, Flipkart sells nearly 10 products per minute and is aiming
at generating a revenue of   50 billion (US$0.81 billion) by 2015.

On November 2012, Flipkart became one of the companies being probed for alleged
violations of FDI regulations of the Foreign Exchange Management Act, 1999

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Flipkart reported a loss of   281 crore for the FY 2012-13. In July 2013, Flipkart
raised USD 160 million from private equity investors.

In October 2013, it was reported that Flipkart had raised an additional $160 million
from new investors Dragoneer Investment Group, Morgan Stanley Wealth
Management,Sofina SA and Vulcan Inc. with participation from existing investor Tiger
Global.

On 26 May 2014, Flipkart announced that it has raised $210 million from Yuri
Milner’s DST Global and its existing investors Tiger Global, Naspers and Iconiq Capital.

In early July 2014, it was also highly speculated that Flipkart was in negotiations to
raise at least $500 million, for a likely listing in the US for 2016.

On 29 July 2014, Flipkart announced that it raised $1 billion from Tiger Global

Management LLC, Accel Partners, and Morgan Stanley Investment Management and a new
investor Singapore sovereign-wealth fund GIC.

On 6 October 2014, Flipkart sold products worth INR 650Crore in 10 hours in a

special one-day event - "The Big Billion Day", claiming they had created e-commerce
history, but their hard-won reputation for good customer service suffered because of technical
problems, and angry reactions on social media from buyers disappointed with the pricing and
availability of products.

 It claimed to sell a whopping 5 lakh mobile handsets, five-lakh clothes and shoes and
25,000 television sets within hours of opening its discounted sale at 8 AM. In December
2014, After it received $700 million from another funding, Flipkart had a market cap of $11
billion or Rs.66000 crore.

On 20 December 2014, Flipkart announced filing application with Singapore based

companies' regulator ACRA to become a public company after raising USD 700 million for
long term strategic investments in India following which its number of investors exceeded 50.
The USD 700 million fund raised by Flipkart added new investors - Baillie Gifford,
Greenoaks Capital, Steadview Capital, T. Rowe Price Associates and Qatar Investment
Authority - on company's board.Its existing investors DST Global, GIC, ICONIQ Capital and
Tiger Global also participated in this latest financing round.

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Flyte Digital Music Store

In October and November 2011, Flipkart acquired the websites Mime360.com and

Chakpak.com. Later, in February 2012, the company revealed its new Flyte Digital Music
Store. Flyte, a legal music download service in the vein of iTunes and Amazon.com,
offered DRM-free MP3 downloads. But it was shut down on 17 June 2013 as paid song
downloads did not get popular in India due to the advent of free music streaming sites.

Exclusive product launches

Motorola Mobility, previously owned by Google but then sold to Lenovo, in an

exclusive tie up with Flipkart launched its budget smartphone Moto G in India on 5 February
2014. This triggered an overwhelming response from online shoppers and more than 20,000
units were sold within hours of launch on Flipkart. After the Moto G successful debut launch,
Flipkart was looking for a long term tie up with Motorola Mobility.

 The Moto G success story, led to another exclusive tie up between Flipkart &
Motorola Mobility, who launched their flagship Android smartphone, the Moto X on 19
March 2014. After Moto G and Moto X, Flipkart invited the Moto E, the newest member of
Moto family which is even cheaper than Moto G on 13 May 2014. 

The sale of high-end smartphone Xiaomi Mi3 produced by Xiaomi Tech was

launched in India on an exclusive tie-up with Flipkart. The first batch was sold out within 39
minutes on 22 July 2014, the second in 5 seconds on 29 July 2014. The sale was proceeded
on pre-registration mode where more than 150 000 buyers booked for the 5 August 2014 sale.
This got sold off in less than 2 seconds.

Following this Xiaomi Tech decided to sell 20,000 pieces in the next sale scheduled
for 12 August 2014. On September 2, 2014 Flipkart held a flash sale of the budget Android
smartphone the Xiaomi Redmi 1S which was launched in India in July 2014. 40, 000 units
priced at Rs 5999 each were sold within seconds.

In the second round of Xiaomi Redmi 1S sale held on Sept 9, 2014, 40,000 units were
sold within a span of 4.5 seconds, slightly longer than the first sale, which lasted just 4.3
seconds. Third round of Redmi 1S sale held on Sept 16, 2014 with again 40,000 units sold in
fastest of all 3.4 seconds. In the 4th round of sale of Redmi 1S held on Sept 23, 2014, Flipkart

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put more units this time, 60,000 units go out of stock in 5.2 seconds. In the latest Flash sale
held on Sept 30, 2014, once again 60,000 units Go out of stock in 13.9 seconds.  Redmi
Note in India exclusively through Flipkart. The first flash sale of 50,000 Redmi Note devices
held on December 2, 2014 and all the devices sold out in mere 6 seconds, just like all the
earlier flash sales of Xiaomi held at Flipkart.

In-house products

 In July 2014 Flipkart launched its own set of tablet, mobile phones & Phablet. The
first among these series of tablet phones was Digiflip Pro XT 712 Tablet.
 In July 2014 Flipkart launched its first networking router, under its own brand name
named DigiFlip WR001 300 Mbit/s Wireless N Router.
 In September 2014 Flipkart launched its in-house home appliances and personal
healthcare brand Citron. The label includes a wide range of cooking utilities and
grooming products.

Criticism

Flipkart is a Singaporean company with multiple Indian shell companies to run an

India focused operation. The Indian shell companies is used to funnel funds to the parent
Singaporean company.

On 6 October 2014 Flipkart launched Big Billion Day with intention to increase the
popularity by targeting billion sales in 1 day. This even though helped Flipkart achieve the
target led to public outcry and widespread criticism across consumers, competitors and
partners heavily damaging its reputation.

Many users could not place the order because the servers were not capable enough to
take the load and was giving random errors to users which led to frustration among
customers. Many users who placed orders got email saying that the order got cancelled. Most
of the products were sold for price less than cost price and was accused of killing the
competition.

Major competitors filed complaints against Flipkart to commerce ministry claiming

that selling products for less than cost price is against the commerce policy of the
country. Ministry said that they will form new trade rules for e retail after this incident.
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On 13 September 2014 a Flipkart delivery boy molested a house maid in

Hyderabad. The house maid's employer has been fighting against Flipkart for justice on this
issue, and also for making offline delivery services safe.

Awards and recognition

 Co-Founder of Flipkart Sachin Bansal, got Entrepreneur of the Year Award 2012-
2013 from Economic Times, leading Indian Economic Daily
 Flipkart.com was awarded Young Turk of the Year at CNBC TV 18's 'India Business
Leader Awards 2012' (IBLA).
 Flipkart.com- got Nominated for IndiaMART Leaders of Tomorrow Awards 2011

FLIPKART.COM - THE SUCCESS SAGA

Things are easier said than Done! To realize our dreams and that also in such a grand
manner is really a tough task. The founders of Flipkart have probably conquered their dreams
with the amazing success of Flipkart. Flipkart is something which has really opened up the
Indian e-commerce market and that also in a big way.

Flipkart was co-founded by Sachin Bansal and Binny Bansal in Oct 2007. Both are
graduates from IIT-Delhi and have prior work experience in Amazon.com They both were
solid coders and wanted to open a portal that compared different e-commerce websites, but
there were hardly any such sites in India and they decided to give birth to their own e-
commerce venture - Flipkart.com

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Thus was born Flipkart in Oct 2007 with an initial investment of 4 lac (co-founders
savings). It was never going to be easy since India has had bad past experiences with e-
commerce trading. It was not an easy segment to break into, people were very particular in
paying money for something which they had not seen and received. The trust was missing in
the Indian customers. So what Flipkart had to do was to instill trust and faith in their
customers. And they did exactly the same, will discuss more on how they did so later in the
post.

Flipkart began with selling books, since books are easy to procure, target market
which reads books is in abundance, books provide more margin, are easy to pack and deliver,
do not get damaged in transit and most importantly books are not very expensive, so the
amount of money a customer has to spend to try out one's service for one time is very
minimal. Flipkart sold only books for the first two years. Flipkart started with the
consignment model (procurement based on demand) i.e. they had ties with 2 distributors in
Bangalore, whenever a customer ordered a book, they used to personally procure the book
from the dealer, pack the book in their office and then courier the same. In the initial months
the founder's personal cell numbers used to be the customer support numbers. So, in the start
they tried their best to provide good service, focus on the website - easy to browse and order
and hassle-free, and strove hard to resolve any customer issues. Since there were not any
established players in the market, this allowed them a lot of space to grow, and they did in
fact grew very rapidly.

Flipkart had a revenue of 4 crore in FY 2008 - 2009, 20 crore in FY 2009 - 2010, 75

crore in FY 2010 - 2011, and the revenue for FY 2011 - 2012 which ends on 31 Mar 2012 is
expected to be 500 crore. This is indeed a massive growth. The company targets revenues of
5000 crore by 2015.

The company started from 2 employees and now has around 4500 employees. Flipkart
started with consignment model as discussed above, since most of the customer issues like
delivery delays etc. result from procurement model, the company started opening its own
warehouses as it started getting more investments. The company opened its first warehouse in
Bangalore and later on opened warehouses in Delhi, Kolkatta and Mumbai. Today the
company works with more than 500 suppliers. As on date more than 80% orders of Flipkart
are handled via warehouses which helps in quick and efficient service.

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A humble beginning from books, Flipkart now has a gamut of products ranging from:
Cell phones, laptops, computers, cameras, games, music, audio players, TV's, healthcare
products, washing machines etc. etc. Still, Flipkart derives around 50% of its revenue from
selling books online. Flipkart is the Indian market leader in selling books both offline and
online, it enjoys an online share of around 80%. The electronic items have a large number of
players like Naaptol, Letsbuy, Indiaplaza, Tradus, Infibeam, Yebhi etc. The electronic market
share is distributed among them in different unknown proportions.

India has around 13.5 crore internet users today where as the number of homes with
Cable and Satellite (C&S) television is 10.5 crore. The expected internet users will reach a
figure of 30 crore by 2014 and C&S homes are expected to be 14 crore by 2014. Thus India
has a tremendous internet growth and with the customers getting accustomed to e-commerce,
the future of e-commerce sector is definitely rosy. An approximated 25 lac people have
transacted online this year, the number is all set to increase with time.

Also to mention most of the Flipkart customers use internet from PC's/Laptops to
order goods. The use of mobile internet is very less at the moment, but with the advent of
smart phones the use of mobile internet for e-commerce transactions will soar with time.
India has 8 crore mobile net users at the moment, the number is expected to swell to 22.5
crore by 2014.

Lets discuss the factors that lead to the grand success of Flipkart:

1) They always strove to provide great customer service. Flipkart customers are more
happy than with some of their competitors like Tradus.in, Indiaplaza.com; i have
myself experienced this a couple of times.
2) Their website is great, easy to use, easy to browse through the products, add products
to wishlist or to a cart, get product reviews and opinions, pre-order products, make
payments using different methods, in short hassle- free and convenient.
3) A very important point is that they introduced the option of cash on delivery and card
on delivery. This way people demonstrated more confidence in buying products. An
interesting fact, today Flipkart sells 20 products/min and have a massive customer
base, still more than 60% of the Flipkart's customers use Cash on Delivery and card
on delivery methods. This is because of two reasons, one is many people do not know

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how to make payments online. And secondly people do not have immense trust in e-
commerce in India. Flipkart also provides a 30 day replacement guarantee on its
products and EMI options to its customers for making payments.
4) Flipkart's reason of success is that it has a great customer retention rate, it has around
15 lac individual customers and more than 70% customers are repeat customers i.e.
they shop various times each year. The company targets to have a customer base of 1
crore by 2015.

Flipkart 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 Facebook 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.

The message is very clear to make people more comfortable with Flipkart, to generate
a great customer relationship and loyalty on the basis of great product prices and excellent
customer service. All in all to create a great customer experience.

Future road map:

Going forward electronics will be given more focus. Flipkart has recently added a
string of electronic items like calculators, water purifiers, microwave ovens, washing
machines, dish washers, vacuum cleaners etc.

Flipkart has opened a music store which sells CD's and DVD's of movies' music
releases and music albums. Flipkart has also acquired Bollywood movie content from
Chakpak. Since digital media in going to rise in near future, Flipkart is geared up for the
same. Soon it will start offering digital content like movies and songs online, as in the
customers can pay and stream online digital content. Flipkart will also provide e-books very
soon.

Threats in future:

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There are no major foreseeable threats in the future.

The company has built a great brand name, they just have to maintain and enhance the
same. It needs to keep introducing more products, adapting to the changing needs of the
customer with time. The entry of Amazon.com in 2012 in the Indian e-commerce space has
been cited as a big challenge to Flipkart. Howeveri think that Flipkart is a respected Brand
name in India and should be able to compete with Amazon. Remember Amazon being a very
big company can bring in serious competition to Flipkart, since Amazon can bear more losses
in the beginning to gain customer base. But again Indian market is growing at a rapid pace as
access to internet increases and people become more aware of e-commerce sites and start
trusting the same; hence Indian market is sufficiently big at-least for these two giants to co-
exist beneficially.

Thus in the end i would like to congratulate Flipkart founders for the determination
and hard work they have put in to realize their dream. The rewards they are reaping are a
natural follow up. The company is currently valued at around 1 billion dollars i.e. 5000 crore.
More importantly Flipkart has ushered in the e-commerce era in India. This has generated
massive interest in e-commerce sector, people are opening websites to sell anything from
shoes to apparels to jewels to baby care products etc. This has helped in creating a lot of job
opportunities and thus helps the Indian Inc. growth story as well.

Flipkart CEO Sachin Bansal's mantras to all the budding entrepreneurs vying to build
a product company:

1) Be very focused on consumers.

2) Build amazing experiences for the customers.
3) Continuously innovate the product.

Flipkart SWOT Analysis

Strengths 1. Innovative advertisements of Flipkart featuring kids who

portray the role of adults. This increases brand awareness and
also expands the customer base of online shoppers.

2. Flipkart is backed by global investors like Tiger Global,

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DST Global, and Naspers 

3. Impressive list of acquisitions like Myntra, LetsBuy,
Chakpak, AdiQuityetc
4. Exclusive tie-ups with brands like Motorola Mobility,
Xiaomi led to very successful product launches

5. Venturing into product manufacturing Foreg- Digiflip

tablets, Citron home appliances and health care devices

6. Flipkart has a strong logistic support of eKart

7. Flipkart is the first billion dollar ecommerce company in

India.

8. Millions of people are registered users with the brand

9. Strong presence of Flipkart due to extensive advertising,

marketing etc

10. Good customer support like helpline, online feedbacks,

product replacements etc

Weaknesses 1. Huge investment leading to losses over the years hurts the
brand image of Flipkart

2. Acquisition of loss making firms can add to its burden

Opportunities 1. Business expansion to other countries can be big boost

for Flipkart
2. Foray into furniture and fresh product business to increase
its breadth of product categories

3. Ever expanding internet penetration in India can be tapped

by Flipkart

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4. Better online secure payments can instill more confidence in

people to shop online

Threats 1. Global competitors like Amazon making its foray in Indian

online retail market can reduce Flipkart's market share

2. Investigations by authorities to check its FDI regulations

compliance

3. Flipkart's business can be affected by fluctuating economy

and unfavorable market conditions & govt policies

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CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

4.1 TABLE SHOWING THE NATURE OF OCCUPATION OF RESPONDANTS

% of response

Business 21%

Government employee 17%

Self employed 32%

Others 30%

Analysis :

From the above table we can see that out of 100 respondents about 21% respondents
said business, about 17% said government employee, about 32% said self employed and
about 30% respondents said others

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4.1 CHART SHOWING THE NATURE OF OCCUPACTION OF RESPONDANTES

% of response
21%
30%

Business
Government employee
Self employed
Others

17%

32%

Interpretation :

From the above graph we can see that most of the survey respondents said that they
are self employed followed by business people and government employees

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4.2 TABLE SHOWING INCOME LEVEL PER ANNUM

% of response

Below 500000 45%

500000 – 1500000 23%

Above 1500000 32%

Analysis :

From the above table we can see that out of 100 respondents about 45% respondents
said below 500000, about 23% said 500000 – 1500000 and about 32% respondents said
above 1500000

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4.2 CHART SHOWING INCOME LEVEL PER ANNUM

% of response

32%

45%
Below 500000
500000 – 1500000
Above 1500000

23%

Interpretation :

From the above graph we can see that most of the survey respondents said that they
have an income of below 5lakh. However we spoke to respondents with higher income as
well

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4.3 TABLE SHOWING CUSTOMER PURCHASE OVER ONLINE

% of response

Yes 85%

No 15%

Analysis :

From the above table we can see that out of 100 respondents about 85% respondents
said yes and about 15% respondents said no

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4.3 CHART SHOWING CUSTOMER PURCHASE OVER ONLINE

% of response
15%

85%

Yes No

Interpretation :

From the above graph we can see that most of the survey respondents said that they
have shopped online atleast once. However there were some respondents who said that they
have never shopped online though they understood the concept of online shopping.

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4.4 TABLE SHOWING SHOPPED FROM FLIPKART

% of response

Yes 92%

No 8%

Analysis :

From the above table we can see that out of 100 respondents about 92% respondents
said yes and about 8% respondents said no

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4.4 CHART SHOWING SHOPPED FROM FLIPKART

% of response
8%

Yes
No

92%

Interpretation :

From the above graph we can see that most of the respondents we spoke in our survey
said that they know about flipkart and they have definitely shopped from flipkart website.
There were a very few respondents who said that they have never shopped from the website.

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4.5 TABLE SHOWING CATEGORY OF PRODUCTS PURCHASED ONLINE

Percentage of response

Books 15%

Electronic goods 22%

Clothing 31%

Fashion accessories 15%

Toys / Baby care products 12%

Others 5%

Analysis :

From the above table we can see that about 15% said books, about 22% said
electronic goods, about 31%said clothing, about 15% said fashion accessories, about 12%
said toys and babycare products and about 5% said others.

4.5 CHART SHOWING CATEGORY OF PRODUCTS PURCHASED ONLINE

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Percentage of response
35%
31%
30%

25%
22%
20%
15% 15%
15%
12%
10%
5%
5%

0%
Books Electronic Clothing Fashion Toys / Baby Others
goods accessories care products

Interpretation :

From the above graph we can see that most of the customers said they normally shop
for clothing closely followed by electronic goods. This might be because normally the
electronic goods have lesser price when compared to the stores available

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4.6 TABLE SHOWING HEARING ABOUT FLIPKART

% of response

Search engine 11%

Friends or business associate 27%

Advertisement 37%

Don’t know / don’t remember 10%

Others 15%

Analysis :

From the above table we can see that out of 100 respondents about 11% respondents
said search engine, about 27% said friends or business associate, about 37% said
advertisement, about 10% said don’t know / don’t remember and about 15% respondents said
others

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4.6 CHART SHOWING HEARING ABOUT FLIPKART

% of response

15% 11%

Search engine
10%
Friends or business associate
27% Advertisement
Don’t know / don’t remember
Others

37%

Interpretation :

From the above graph we can see that most of the respondents said that they came to
know about flipkart company through the advertisement of the company followed by friends
and relatives who have already bought product from flipkart

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4.7 TABLE SHOWING SPEND WORKING ON INTERNET

% of response

0–1 4%

1–2 15%

2–4 11%

4 – 10 51%

More than 10 19%

Analysis :

From the above table we can see that out of 100 respondents about 4% respondents
said 0 - 1, about 15% said 1 - 2, about 1% said 2 – 4, about 51% said 4 – 10 and about 19%
respondents said more than 10

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4.7 CHART SHOWING SPEND WORKING ON INTERNET

% of response
4%
19% 15%

0 –1
1 –2
11% 2 –4
4 – 10
More than 10

51%

Interpretation :

From the above graph we can see that most of the respondents said that in a typical
week they normally spend about 4 to about 10 hours working on the internet. However there
were a good number who said they spend more than 10 hours on the net

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4.8 TABLE SHOWING ADVERTISEMENT ABOUT FLIPKART

% of response

Never 24%

1 15%

2 17%

3 21%

4 18%

5+ 5%

Analysis :

From the above table we can see that out of 100 respondents about 24% respondents
said never, about 15% said 1, about 17% said 2, about 21% said 3, about 18% said 4 and
about 5% respondents said 5+

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4.8 CHART SHOWING ADVERTISEMENT ABOUT FLIPKART

% of response
5%
24%
18%
Never
1
2
3
4
5+

15%
21%

17%

Interpretation :

From the above graph we can see that most of the respondents said that they have
seen about 3 times to about 4 times the advertisement of the products of flipkart company

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4.9 TABLE SHOWING MOST USED SOCIAL NETWORKING WEBSITES

% of response

Facebook 28%

Google plus 11%

Twitter 17%

Youtube 14%

Linkedin 21%

Others 9%

Analysis :

From the above table we can see that out of 100 respondents about 28% respondents
said facebook, about 11% said google plus, about 17% said twitter, about 14% said youtube,
about 21% said linkedin and about 9% respondents said others

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4.9 CHART SHOWING MOST USED SOCIAL NETWORKING WEBSITES

% of response
9%

28%

21% Facebook
Google plus
Twitter
Youtube
Linkedin
Others

11%
14%

17%

Interpretation :

From the above graph we can see that most of the respondents said that they normally
go to facebook followed by linkedin and twitter on a daily basis

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4.10 TABLE SHOWING HOLDING ACCOUNT

% of response

Facebook 43%

Twitter 25%

Instagram 21%

Others 11%

Analysis :

From the above table we can see that out of 100 respondents about 43% respondents
said facebook, about 25% said twitter, about 21% said instagram and about 11% respondents
said others

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4.10 CHART SHOWING HOLDING ACCOUNT

% of response
11%

21% 43% Facebook

Twitter
Instagram
Others

25%

Interpretation :

From the above graph we can see that most of the respondents said that they have an
account in facebook. Several other respondents said that they have an account in twitter
followed by instagram and others.

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4.11 TABLE SHOWING SEEN ADVERTISEMENTS OF FLIPKART

% of response

Yes 78%

No 22%

Analysis :

From the above table we can see that out of 100 respondents about 78% respondents
said yes and about 22% respondents said no

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4.11 CHART SHOWING SEEN ADVERTISEMENTS OF FLIPKART

% of response
22%

Yes
No

78%

Interpretation :

From the above graph we can see that most of the respondents said that they have
seen the advertisement of flipkart company in the social networking sites they have an
account in. However there were a good number who said otherwise.

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4.12 TABLE SHOWING ADVERTISEMENT OF FLIPKART APPEALING TO YOUR

EYE

% of response

Most appealing 21%

Appealing 27%

Neutral 46%

Less appealing 6%

Analysis :

From the above table we can see that out of 100 respondents about 21% respondents
said most appealing, about 27% said appealing, about 46% said neutral and about 6%
respondents said less appealing

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4.12 CHART SHOWING ADVERTISEMENT OF FLIPKART APPEALING TO YOUR

EYE

% of response
6%
21%

Most appealing
Appealing
Neutral
Less appealing

46%

27%

Interpretation :

From the above graph we can see that most of the respondents said that the
advertisement of flipkart company is only fair. They decided to remain neutral for this
particular question

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4.13 TABLE SHOWING ABOUT DIGITAL MARKETING DESIRED PRODUCTS

% of response

Strongly agree 17%

Agree 21%

Neutral 23%

Disagree 25%

Strongly disagree 14%

Analysis :

From the above table we can see that out of 100 respondents about 17% respondents
said strongly agree, about 21% said agree, about 23% said neutral, about 25% said disagree
and about 14% respondents said strongly disagree

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4.13 CHART SHOWING ABOUT DIGITAL MARKETING DESIRED PRODUCTS

% of response
14% 17%

25%

21%

23%

Strongly agree Agree Neutral Disagree Strongly disagree

Interpretation :

From the above graph we can see that most of the respondents said that the digital ad
of the Flipkart company does show the products of their desire. However a good number of
respondents chose to be neutral to this which means the company is not showing the most
popular products very well.

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4.14 TABLE SHOWING TALKING TO SOMEONE ABOUT ONLINE ADVERTISING

OF FLIPKART

% of response

Most likely 11%

Likely 26%

Neutral 41%

Less likely 22%

Analysis :

From the above table we can see that out of 100 respondents about 11% respondents
said most likely, about 26% said likely, about 41% said neutral and about 22% respondents
said less likely

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4.14 CHART SHOWING TALKING TO SOMEONE ABOUT ONLINE ADVERTISING

OF FLIPKART

% of response
11%
22%

Most likely
26% Likely
Neutral
Less likely

41%

Interpretation :

From the above graph we can see that most of the respondents remained neutral when
we asked about they speaking about the advertisement of the company that they saw on the
social networking sites. Only a very few said that they spoke about the ads

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4.15 TABLE SHOWING ABOUT POSITIVE REACTION TO ONLINE

ADVERTISEMENT

% of response

Very good 23%

Good 21%

Neutral 34%

Bad 22%

Analysis :

From the above table we can see that out of 100 respondents about 23% respondents
said very good, about 21% said good, about 34% said neutral and about 22% respondents
said bad

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4.15 CHART SHOWING ABOUT POSITIVE REACTION TO ONLINE

ADVERTISEMENT

% of response
22% 23%

Very good
Good
Neutral
Bad

21%

34%

Interpretation :

From the above graph we can see that most of the respondents didn’t feel anything
after seeing the ad of flipkart online. This means the advertisement is not very interesting
and needs a lot of improvement

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4.16 TABLE SHOWING SIMILAR ONLINE ADVERTISEMENT OF FLIPKART IN

FUTURE

% of response

Most likely 21%

Likely 26%

Neutral 42%

Less likely 11%

Analysis :

From the above table we can see that out of total respondents about 21% respondents
said most likely, about 26% said likely, about 42% said neutral and about 11% respondents
said less likely.

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4.16 CHART SHOWING SIMILAR ONLINE ADVERTISEMENT OF FLIPKART IN

FUTURE

% of response
11%
21%

Most likely
Likely
Neutral
Less likely

42%
26%

Interpretation :

From the above graph we can see that most of the respondents remained silent when
asked about if they would like to see that advertisement of the company very often in the
future. However there were respondents who answered positively.

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4.17 TABLE SHOWING PURCHASE OF PRODUCT OFFERED

% of response

Most likely 15%

Likely 32%

Neutral 39%

Less likely 14%

Analysis :

From the above table we can see that out of 100 respondents about 15% respondents
said most likely, about 32% said likely, about 39% said neutral and about 14% respondents
said less likely

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4.17 CHART SHOWING PURCHASE OF PRODUCT OFFERED

% of response
14% 15%

Most likely
Likely
Neutral
Less likely

32%
39%

Interpretation :

From the above graph we can see that most of the respondents said that they might or
might not make a purchase decision after viewing the advertisement of flipkart company.
This shows that the online ad campaign of flipkart is not very good and needs a lot of
improvement

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4.18 TABLE SHOWING ABOUT PROBLEMS FACED IN BUYING ONLINE FROM

FLIPKART

% of response

No difficulty 24%

Little difficulty 27%

Neutral 11%

Much difficulty 38%

Analysis :

From the above table we can see that out of 100 respondents about 24% respondents
said most likely, about 27% said likely, about 11% said neutral and about 38% respondents
said less likely

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4.18 CHART SHOWING ABOUT PROBLEMS FACED IN BUYING ONLINE FROM

FLIPKART

% of response

24%

38%
No difficulty
Little difficulty
Neutral
Much difficulty

27%

11%

Interpretation :

From the above graph we can see that most of the respondents said that buying a
product through the online sources of flipkart is a difficult affair. This might be also the
reason the sales figures are not very much positive for the company.

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4.19 TABLE SHOWING RATING THE EFFECTIVENESS OF DIGITAL MARKETING

STRATEGY OF FLIPKART

% of response

Highly effective 26%

Effective 32%

Neutral 35%

Less effective 7%

Analysis :

From the above table we can see that out of 100 respondents about 26% respondents
said highly effective, about 32% said effective, about 35% said neutral and about 7%
respondents said less effective

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4.19 CHART SHOWING RATING THE EFFECTIVENESS OF DIGITAL MARKETING

STRATEGY OF FLIPKART

% of response
7%
26%

Highly effective
35% Effective
Neutral
Less effective

32%

Interpretation :

From the above graph we can see that most of the respondents of our survey research
said that they feel that the digital marketing strategy of the Flipkart company is highly
effective. However some of the respondents felt that there can be an improvement.

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CHAPTER 5

FINDINGS AND CONCLUSION

FINDINGS

1. Most of the survey respondents said that they are self employed followed by business
people and government employees
2. Most of the survey respondents said that they have an income of below 5lakh.
However we spoke to respondents with higher income as well
3. Most of the survey respondents said that they have shopped online atleast once.
However there were some respondents who said that they have never shopped online
though they understood the concept of online shopping
4. Most of the respondents we spoke in our survey said that they know about flipkart and
they have definitely shopped from flipkart website. There were a very few
respondents who said that they have never shopped from the website
5. Most of the customers said they normally shop for clothing closely followed by
electronic goods. This might be because normally the electronic goods have lesser
price when compared to the stores available
6. Most of the respondents said that they came to know about flipkart company through
the advertisement of the company followed by friends and relatives who have already
bought product from flipkart
7. Most of the respondents said that in a typical week they normally spend about 4 to
about 10 hours working on the internet. However there were a good number who said
they spend more than 10 hours on the net
8. Most of the respondents said that they have seen about 3 times to about 4 times the
advertisement of the products of flipkart company
9. Most of the respondents said that they normally go to facebook followed by linkedin
and twitter on a daily basis
10. Most of the respondents said that they have an account in facebook. Several other
respondents said that they have an account in twitter followed by instagram and
others.

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11. Most of the respondents said that they have seen the advertisement of flipkart
company in the social networking sites they have an account in. However there were
a good number who said otherwise
12. Most of the respondents said that the advertisement of flipkart company is only fair.
They decided to remain neutral for this particular question
13. Most of the respondents remained neutral when we asked about they speaking about
the advertisement of the company that they saw on the social networking sites. Only a
very few said that they spoke about the ads
14. Most of the respondents didn’t feel anything after seeing the ad of flipkart online.
This means the advertisement is not very interesting and needs a lot of improvement
15. Most of the respondents remained silent when asked about if they would like to see
that advertisement of the company very often in the future. However there were
respondents who answered positively.
16. Most of the respondents said that they might or might not make a purchase decision
after viewing the advertisement of flipkart company. This shows that the online ad
campaign of flipkart is not very good and needs a lot of improvement
17. Most of the respondents said that buying a product through the online sources of
flipkart is a difficult affair. This might be also the reason the sales figures are not
very much positive for the company
18. Even though a lot of respondents said that they know about the offers of the company
most of the respondents said that they are not very much aware of any kind of
promotional activities of the company

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SUGGESTIONS

1. The advertisement plays an important role in the customer awareness part. Hence the
company can formulate a good advertising strategy to market the company products
to the potential customers.
2. The company should repeat their advertisement given on the net depending the usage
of the internet by the customers. This will make the customers recall the company
name whenever there is a need for buying company products
3. The customers most often visit facebook and linkedin social networking websites
more. Hence the company should give more advertisements in these websites to
make the customers aware of the company products of the company.
4. The study showed that facebook is the most popular social networking site among the
respondents. Hence the company can do a tie up with facebook and advertise the
company products and keep repeating it.
5. The customers did not seem to feel good about the advertisement in the social
networking sites they use. The company has to take care of this part.
6. The customers seemed to like funny ads of the company. Hence the company should
make the advertisement of the company more funny.
7. The company should make the advertisement of the products more effective. Then
only the people will like it and talk about the advertisement to other people also. The
company should take care of this also.
8. The respondents showed a positive reaction to the company ads. Hence the company
should formulate a good digital marketing strategy to attract more customers.
9. The customers did not answer in positive when we asked about whether they would
like to see the advertisement of the company more often. This is a worrying factor
and the company should take care of this.
10. Overall the customers seemed to be happy with the digital marketing strategy
followed by the company.

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CONCLUSION

With the world continuously revolving on the axis of technological advancement man
has got many things to add to his comfort list. With the rising interest in the internet and its
beneficial usage the man has evolved many options to make his life simpler. Now, rather than
going to your local shop for groceries you opt for going online and buying all your errands
with a few simple clicks. You name it and the World Wide Web has it to deliver.

Considering the higher interest of customers in online buying and exploring, the
companies have now taken the route of e-marketing. Also known as digital marketing; it is
the most easy way to market your product to your target audience. As per the studies 89%of
the customers choose e-buying over physical buying. Various companies are encashing this
opportunity by making themselves available online. Digital marketing is playing a vital role
in business productivity here is the brief: 

The importance of digital marketing

While the older generation is still not much able to come out of the web of paper
based information stuff the younger generation has evolved themselves to be the most tech
savvy and based on e-marketing.

This is mainly because the digital marketing offers a lot of comfort, ease, versatility
and most importantly is faster than anything else. It’s not only a boon to the consumers, but a
very effective tool for the marketers to reach their target audience. Here are some key points
that explain its importance:

Affordable

The first to be considered point is that digital marketing is very cheaper when
compared to the other modes and means of marketing. Information going online regarding
your company or product may not cost the company more than a fractional cost of sending
the same information via newspaper or a digital advertisement.

Effective targeting of the audience

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When compared the digital marketing again stands out to the print marketing as there
is always the chance of people being attracted to the digital media more. As the technology
probe more and more into our daily life, it has made a significant effect on our sense that can
be convinced. Moreover, there are always higher chances of more people watching an online
ad than a print media advertisement.

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BIBLIOGRAPHY

1. Abel, S.M. (1998), ``Trademark issues in cyberspace: the brave new frontier'', [http://
www.fenwick.com/pub/trademark_issues_in_cyberspace.htm], Accessed 20 October
1998.
2. Arenius, P., Sasi, V., Gabrielsson, M., (2006), ―Rapid internationalization enabled
by the Internet: the case of a knowledge intensive company‖. Journal of International
Entrepreneurship 3, 279–290
3. Berry, M.M.J., Brock, J.K.-U., (2004), ―Marketspace and the internationalization
process of the small firm‖. Journal of International Entrepreneurship 2, 187–216.
Benjamin, R., &Wigand, R. (1995), ―Electronic markets and virtual val
4. Berthon, P., Pitt, L.F. and Watson, R.T. (1996), ―The World Wide Web as an
advertising medium: toward understanding of conversion efficiency‖, Journal of
Advertising Research, January/ February, pp. 43-54
5. Berthon P. R., Pitt L.F, &Campbell C., (2008), ―Ad Lib:When customers create an
ad‖, California Management Review, vol 50, nr. 4, pp 6 -30

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ANNEXURE

QUESTIONNAIRE

1.Name :

2. Gender :

3. Profession:

Business Govt-employee Self employee Any-other

4. Income level per annum :

below 500000 500000-1500000 above 1500000

5. Have you ever shopped online?

Yes No

6. If yes, Have you shopped from Flipkart?

Yes No

7. What category of products do you purchase online ?

Books

Electronic goods

Clothing

Fashion accessories

Toys / Baby care products

Others

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8. How did you first hear about flipkart?

Search engine

News paper/magazine article

Friend or business associate

Advertisement

Don’t know/don’t remember

Other

9. In a typical week, how many hours do you spend working on internet?

0 to 1

1to 2

2 to 4

4 to 10

More than 10

10. In past month how many times have you seen an advertisement about flipkart?

never

5+

11. In typical week, which of the following social networking websites you use most often ?

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Facebook

Google plus

Twitter

YouTube

Linked in

Other

12.Do you hold an account in any of the following?

Facebook

twitter

Instagram

Other

13. Have you seen any advertisements of flipkart in any of the above mentioned site?

Yes No

14. Was the online advertising of flipkart appealing to your eye ?

Most appealing Appealing Neutral Less Appealing

15. Did the digital marketing of flipkart show you your desired products ?

Strongly agree agree neutral disagree strongly disagree

16. Would you talk to someone else about this online advertising of flipkart?

Most likely LikelyNeuttral Less likely

17. Did you have a positive reaction to the online advertisement ?

Very good Good Neutral Bad

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18. Would you like to see similar online advertisement of flipkart in the future?

Most likely Llikely Neutral Least likely

19. Are more likely now to purchase the product offered?

Most likely likely Neutral least likely

20. Have you faced any difficulty online buying of flipkart?

No diffculty little difficulty Neutral much difficulty

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