A dissertation

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ADVERTISING STRATEGIES OF FLIPKART AND

A dissertation submitted to Doon institute of management and research in partial fulfillment

By
Shivansh Nautiyal
 Declaration By The Candidate

I here by declare that the dissertation file entitled “Marketing Strategies Of Flipkart And
Their Effect On Consumers ” submitted by me to DOON INSTITUTE OF MANAGEMENT
AND RESEARCH; Shivansh Nautiyal in partial fulfillment of the requirements for the award
of the degree of BBA in MARKETING is a record of an original work done by me under the
guidance of MR. HARSH KUMAR. I further declare that the work reported in this
dissertation has not been submitted and will not be submitted, either in part of in full, for the
award of any other degree or diploma in this institute of any other institute of University

Shivansh Signature of the candidate

I would like to acknowledge and thank the following important people who have supported
me not only during the course of this dissertation, but throughout my bachelor’s degree.

Firstly, I would like to express my gratitude to my supervisor Mr. HARSH KUMAR for his
unwavering support, guidance and insight throughout this dissertation file.

I would also like to thank my HOD Mrs. ASHU CHANCHAL. Without access to her
network this research would not have been possible.

And finally, I would like to thank all my closet friends and family. You have all encouraged
and believed in me. You have all helped me to focus on what has been a hugely rewarding
and enriching process.
Introduction

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.

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 instil 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 help in quick and efficient service.
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%.

India has a tremendous internet growth and with the customers getting accustomed to e-
commerce, the future of e-commerce sector is definitely rosy.
Transacted online this year, the number is all set to increase with time.

OBI ECTIVES OF THE STUDY

• To know the advertising strategies used by flipkart.

Research Methodology

Research Objectives
• To study the advertising strategies used by Flipkart.
• To analyze the factors and their effect on the students in BHU.