Marketing Strategy of Flipkart – Flipkart strategy analysis: The leading e-commerce company in India, Flipkart has 75 million registered users that had contributed to the company’s achievement of 5 billion dollars GMV (Gross product value) of sales during FY15. GMV is the measure of the performance of the business by calculating the total value of the merchandise offered by the company over the period.
“Big billion days “Big billion days” is the most popular campaign to this point, which has assisted the company to increase its revenue during the holiday season.
Did You Know About Flipkart?
Company : Flipkart
CEO: Kalyan Krishnamurthy
Founder: Binny Bansal | Sachin Bansal
Year founded: October 2007
Annual Revenue: US$5.8 billion
Profit | Net income: $ 3.8 billion
Products & Services: The Company provides books, movies, music, games, consoles, televisions, mobiles, digital cameras, computers, network components, software, peripherals, apparel, shoes, and kitchen appliances. Online Shoping
Flipkart Fun Fact: The start of Flipkart as a small online bookstore wasn’t an accident It was a well-planned move by Sachin and Binny Bansal, who are both alumni of prestigious IIT Delhi, and then were co-workers at Amazon, which later turned out to be their biggest competitor. The year was 2007, and the place was Bengaluru.
Marketing Strategy of Flipkart – Segmentation, Targeting, Positioning
Behavioral and psychological are the two segments employed by Flipkart to divide its market to satisfy customers’ changing wants and desires. Due to the rising per capita income and changes in purchasing habits, consumers are getting more familiar with and more comfortable with purchasing courses.
Flipkart employs the same targeting method as customers from all different demographics purchase product courses that are accessible to anyone in the area where delivery is feasible. National & Multinational E-commerce companies are in a neck-to-neck battle with one another and their position is crucial. Flipkart has established itself as a reputable and user-friendly name.
Read Article: What Is Marketing Strategy? Definition
Flipkart Mission Statement
“Ab har wish hogi poori!!”
Flipkart Vision Statement
Flipkart’s current vision is ‘To become Amazon of India‘
“Flipkart Matlab bilkul pakka”
Marketing Strategy of Flipkart – Competitive Advantage
Multiple acquisitions made by Flipkart
In the highly competitive online market in India. Companies are having a difficult time making a distinction in their offerings from those of others.
Flipkart has gained several advantages competitive over its competitors:
- They have purchased companies like Myntra, Jabong, Appiterate, Letsbuy, Mine360, chakpak.com, we read, and the latest, which is a UPI-based payments company that is just starting up PhonePe. These companies assist to enhance their functional capabilities.
- The founders are Ex-employees of Amazon employees, which means they are familiar with the knowledge of E-commerce.
- Flipkart received $700 million in money last year. Following that, its valuation jumped to $15 billion.
- It is positioned well in the small appliances and mobile market.
Marketing Strategy of Flipkart – BCG Matrix
The merchandising department of Flipkart (including Myntra) as well as its electronics section is recognized as a star within the BCG matrix. The reason for this is that the market is expanding and more and more consumers are becoming comfortable with courses shopping for clothes and electronic items in India. However, since the market is vast it means that there is a percentage of the market is lower for every online retailer and they’re fighting to get it.
All other segments are a question mark because of the intense competition among the participants. The profitability is not great overall, so the future is not certain.
Marketing Strategy of Flipkart – Distribution Strategy
Owning its own distribution company (Ekart) and the payment gateway Payzippy has assisted the company with reducing its costs and passing on its savings to the customer.
The main advantage of Flipkart’s sales distribution channel is its accessibility contrasted to peer E-commerce businesses such as Amazon, Snapdeal eBay and so on that can deliver orders in remote areas.
Another problem with the Flipkart platform is that it doesn’t accept sellers who have a package size that exceeds 8 kilograms. It is necessary to utilize the Flipkart advantage to achieve the same.
Marketing Strategy of Flipkart – Brand equity
Flipkart has achieved the leading market position thanks to its unique marketing strategies. “The “big billion days”, ” No Kidding, No Worries”, “Fair-Tale”, “Shopping ka Naya Address”, and “Shop Anytime, Anywhere” are among the most effective campaigns that assisted the company to create an awareness that is top of mind. Flipkart’s brand’s valuation is 15 billion dollars by 2015.
Different media i.e. Twitter, Facebook commercials on TV, and the promotion of mobile apps have assisted Flipkart in becoming known as a household name in its consumer market.
Marketing Strategy of Flipkart – Competitive Analysis
In India, many firms are facing issues with regulations from the government. Only 26% FDI could be allowed before the increase to 100% in the recent budget for FY16-17. Flipkart has expanded its category which has helped it increase its customer base and gain new clients.
W.S retail is the sole supplier for 1/4th of the items that are sold on Flipkart This means that they have a smaller supplier and more grip on their pricing because they will be facing the head-on competition of small suppliers.
Externally there is a lot of competition because Amazon, Flipkart, and Snapdeal are always at odds. While Flipkart can offer smaller products, Snapdeal has the industrial advantage, and the reach of Snapdeal is extensive and vast. The competition is getting more intense because all of them are bringing in lots of cash.
Marketing Strategy of Flipkart – Market Analysis
The changing regulations of the government and the entry into the market of major players such as Alibaba, eBay, Snapdeal and other startups ups have accelerated growth in the sector. The Indian government has allowed 100% FDI to the market setting, which will aid firms to expand their operations and further expand into the marketplace.
Marketing Strategy of Flipkart – Customer Analysis
the Flipkart customers include middle-class social classes who are at ease with course shopping and appreciate the convenience. The majority of customers are professionals who are working on their work or job and prefer to shop courses rather than go to the store to save time and money.
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