A

MAJOR PROJECT REPORT

ON
CUSTOMERS ATTITUDE TOWARDS:

“Flipkart Online Service Pvt. Ltd.”

Submitted in partial fulfilment of degree of
BACHELOR’S OF BUSINESS ADMINISTRATION
(2017-2020)
UNDER THE GUIDANCE OF
Ms. POOJA SHARMA
ASSISTANT PROFFESOR

SUBMITTED BY:
MAYANK
ENROLLMENT NO.- 35551401717
BBA VI semester

FAIRFIELD INSTITUTE OF MANAGEMENT AND TECHNOLOGY

Kapashera, New Delhi -110037
Affiliated To Guru Gobind Singh Indraprastha University, Delhi

1
 STUDENT DECLARATION

I hereby declare that this Major Project Report titled “CUSTOMERS ATTITUDE TOWARDS: Flipkart
Online Service Pvt. Ltd” submitted by me to Fairfield Institute of Management and Technology,
Kapashera is a bonafide work undertaken during the 6thsemester by me and has not been submitted to any
other university or institution for the award of any degree diploma / certificate or published any time
before.

Date:

Name: Mayank

Enrolment No.: 35551401717

Course: BBA (VI-Semester)

(Signature of the Student)

2
 CERTIFICATE

This is to certify that Mr. Mayank, Enrolment number- 35551401717 “has proceeded under my
supervision” his research Project Report on “CUSTOMERS ATTITUDE TOWARDS:
Flipkart Online Service Pvt. Ltd”.

The work embodied in this report is original and is of the standard expected of an BBA student
and has not been submitted in part or full to this or any other university for the award of any
degree or diploma. He has completed all requirements of guidelines for the Research project
report and the work is fit for evaluation.

Signature of the Guide

Name: Ms. Pooja Sharma

Designation: Asst. Professor
Organization: FIMT

3
 ACKNOWLEDGEMENT

In the preparation of this report many persons have extended their valuable time and co-
operation to me, therefore I acknowledge all those who remain anonymous. First of all I am
highly obliged to my guide Ms. Pooja Sharma (Faculty, FIMT, Delhi) whose co-operation
attitude and precious suggestion has been a great sense of inspiration for me. I acknowledge my
all lecturers for their support also express my deep sense of gratitude to other teachers & staff
members who extended their guidance & support from time to time.

Mayank
Enrollment no. : 35551401717

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 TABLE OF CONTENTS

S. No. CONTENTS Page No.

1 STUDENT DECLARATION

2 CERTIFICATE

3 AKNOWLEDGEMENT

Chapter 1 INTRODUCTION TO THE STUDY 8-24

1.1 Brief overview of study 09

1.2 Objectives of the study 10

1.3 Scope & significance of the study 11

1.4 Industry overview 12

1.41 Past, present and future trends 12

1.42 Major Players and their respective market share 14

Chapter 2 REVIEW OF LITERATURE 25-27

Chapter 3 RESEARCH METHODOLOGY 28-32

3.1 Universe 29

3.2 Simple size and sampling technique 30

3.3 Data collection 31

3.4 Tools of presentation 32

Chapter 4 COMPANY PROFILE 33-43

4.1 History 34

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4.2 Vision mission and objectives of the company 35

4.3 Organizational structure 36

4.4 Product and services offered 37

4.5 Marketing strategies for customer satisfaction 41

4.6 Future plans 43

Chapter 5 DATA REDUCTION,PRESENTATION&ANALYSIS 44-57

5.1 General finding 45

5.2 Finding based on questionnaire responses 47

Chapter 6 CONCLUSION AND RECOMMENDATION 58-60

6.1 Conclusion 59

6.2 Suggestions 60

LIMITATION OF THE STUDY 61

BIBLIOGRAPHY 62

ANNEXURE 63

SAMPLE QUESTIONNAIRE 64-65

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 LIST OF CHARTS AND TABLES

S. No Title Page No
1 Charts and Tables Regarding using [Link] 47

2 Charts and Tables Regarding consideration while 48

shopping on [Link]

3 Charts and Tables Regarding the customer satisfaction 49

4 Charts and Tables Regarding comparison with other 50

online shopping platforms

5 Charts and Tables Regarding conditions of purchasing 51

on [Link]

6 Charts and Tables Regarding recommending 52

[Link] to others

7 Charts and Tables Regarding services of [Link] 53

8 Charts and Tables Regarding satisfaction with quality 54

that [Link] serves

9 Charts and Tables Regarding prices at [Link] 55

10 Charts and Tables Regarding advertisement of Flipkart 56

11 Charts and Tables Regarding marketing strategy of 57

[Link]

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CHAPTER –1

INTRODUCTION TO THE STUDY

8
1.1 BRIEF OVERVIEW OF STUDY

Flipkart (Company) was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of
the Indian Institute of Technology Delhi. They worked [Link], and left to create their
new company incorporated in October 2007 as Flipkart Online Services Pvt. Ltd. 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, Kolkata 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%. 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.

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1.2 OBJECTIVES OF THE STUDY

The main objectives of the present project work are as following

 To know the level of customer satisfaction towards Flipkart.

 To know the various factors affecting the choice of Flipkart.
 To study about the various factors influencing the customers
.
However the main focus was to bridge the gap between the theoretical and practical knowledge
of mine.

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1.3 SCOPE AND SIGNIFICANCE OF THE STUDY

Scope of the Study

Scope of the Study is limited to South Delhi only and the type of the research which has been
used to formulate this project was exploratory Research and the concept of convenience
sampling has been used to select 100 samples from the assigned market. The time frame of the
study was from 1st September to 20th September and the prime samples were the customers of
[Link]. In order to get response a well drafted questionnaire was formulated and personal
interview was also conducted.

Significance of the Study

 As of today, Flipkart employs over 4500 people.

 It experiences 2 million unit sales and 4 million unique visitors per month with sales
growing at 25% per month, eyeing a $50 million run rate.
 With close to 11.5 million titles, Flipkart is the largest online book retailer in India with
80 per cent market share.
 It has a registered user base of two million customers and ships out as many as 30,000
items a day, clocking daily sales of Rs 2.5 crore.
 Flipkart is rapidly expanding its network of warehouses, distribution centers,
procurement operations and 24/7 customer support teams. The company even has its
own delivery network in 27 cities and is set to expand this even further by next year.

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1.4 INDUSTRY OVERVIEW

1.41 PAST, PRESENT AND FUTURE TRENDS

India has an internet user base of about 250.2 million as of June 2014. The penetration of e-
commerce is low compared to markets like the United States and the United Kingdom but is
growing at a much faster rate with a large number of new entrants. The industry consensus is that
growth is at an inflection point. Unique to India (and potentially to other developing countries),
cash on delivery is a preferred payment method. India has a vibrant cash economy as a result of
which 80% of Indian e-commerce tends to be Cash on Delivery. However, COD may harm e-
commerce business in India in the long run and there is a need to make a shift towards online
payment mechanisms. Similarly, direct imports constitute a large component of online sales.
Demand for international consumer products (including long-tail items) is growing much faster
than in-country supply from authorized distributors and e-commerce offerings. India's e-
commerce market was worth about $2.5 billion in 2009, it went up to $6.3 billion in 2011 and to
$14 billion in 2012. About 75% of this is travel related (airline tickets, railway tickets, hotel
bookings, online mobile recharge etc.). Online Retailing comprises about 12.5% ($300 Million
as of 2009) India has close to 10 million online shoppers and is growing at an estimated 30%
CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are the biggest
categories in terms of sales. Key drivers in Indian e-commerce are:

 Increasing broadband Internet (growing at 20% MoM) and 3G penetration.

 Rising standards of living and a burgeoning, upwardly mobile middle class with high
disposable incomes
 Availability of much wider product range (including long tail and Direct Imports)
compared to what is available at brick and mortar retailers
 Busy lifestyles, urban traffic congestion and lack of time for offline shopping
 Lower prices compared to brick and mortar retail driven by disintermediation and
reduced inventory and real estate costs

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  Increased usage of online classified sites, with more consumer buying and selling
second-hand goods

India's retail market is estimated at $470 billion in 2011 and is expected to grow to $675 billion
by 2016 and $850 billion by 2020, – estimated CAGR of 7%. According to Forrester, the e-
commerce market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of
over 57% between 2012 –17. As per "India Goes Digital", a report by Avendus Capital, a leading
Indian Investment Bank specializing in digital media and technology sector, the Indian e-
commerce market is estimated at Rs 28,500 Crore ($6.3 billion) for the year 2011. Online travel
constitutes a sizable portion (87%) of this market today.

13
1.42 MAJORS PLAYERS AND THEIR RESPECTIVE MARKET SHARES

[Link] is an American international electronic commerce company with headquarters in

Seattle, Washington, United States. It is the world's largest internet company, based on revenue
and number of employees.

[Link] is an online marketplace, headquartered in New Delhi, India. The company was
started by Kunal Bahl and Rohit Bansal, in February 2010.

e-Bay Inc., is an American multinational corporation and e-commerce company, providing

consumer-to-consumer sales services via Internet. It is headquartered in San Jose, California,
United States.

HomeShop18 is an online and on-air retail and distribution venture of Network 18 Group, India.
HomeShop18 was launched on 9 April 2008 as India's first 24-hour Home Shopping TV channel.

14
This market research report identifies players like Alibaba Group, [Link], Apple, eBay,
Google, and PayPal to be the key vendors in the global e-commerce market. This research report
also presents a detailed segmentation of the market by appliances (home appliances, clothing and
footwear, books, cosmetics, baby goods, groceries, and others) and by geography (the Americas,
APAC, and EMEA).

Overview of the global e-commerce market

Technavio‟s market research analyst predicts the global e-commerce market to grow steadily and
post an impressive CAGR of more than 19% by 2020. One of the major factors contributing to
the growth of the e-commerce market is the diverse portfolio in several product segments such
as electronic gadgets, apparels, books, and cosmetics. These categories in the e-commerce
websites are regularly updated with latest offerings, which not only attract new customers but
also retains customer loyalty. Also, these shopping websites allow customers to make multiple
payment options through credit and debit cards, electronic wallets, net banking, cash on delivery
(COD), and cryptocurrency. To withstand the growing competition in the market and maintain
customer allegiance, several e-commerce companies are introducing incentives like free
shipping to customers. They are also offering hassle-free exchange and return policies to increase
their brand proposition. Social media advertising is one of the latest developments in the e-
commerce market, which not only allows advertisers to use display banner ads but also
sponsored content to attract customers.

Vendors in the market are switching from website platforms to app-only services owing to the
increase in online shopping transactions through mobile apps. Shifting to app-only can be a
risky situation for vendors as many developing countries, such as Africa, India, and South Korea
face grave issues of internet connectivity, which restricts the customers from making an online
purchase. The e-commerce vendors are coming up with a lighter version of the apps that work
even with slow internet connectivity. They are focusing to develop lighter versions of their
mobile sites that support browsing even at moderate internet connectivity like Google, Facebook,
and LinkedIn.

15
Competitive landscape and key vendors
The global e-commerce market is highly competitive because of the presence of many large
established players. Intense competition prevails in this market where the vendors contend in
terms of product portfolio, pricing, delivery and payment options, return policies, and discounts
and offers. To increase their profit margins and extend their geographic presence, vendors are
making investments in planning, designing, and developing their services and acquiring new
players. The strong positions of the established vendors and long break-even periods will restrict
the entry of new players in the market over the predicted period.

Leading vendors in the market are -

 [Link]
 [Link]
 Apple
 eBay
 Google
 PayPal

Other prominent vendors in the e-commerce market include [Link], Barnes & Noble, Best
Buy, Costco, GameStop, Group on, J. C. Penney, Kohl's, Liberty Interactive, LL Bean, Lowe‟s,
Macy's, Newegg, MasterCard, Sears Holdings, Soft card, Staples, Target, The Home Depot,
Visa, and Wal-Mart.

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Segmentation by application and analysis of the e-commerce market

 Home appliances
 Clothing and footwear
 Books
 Cosmetics
 Baby goods
 Groceries

The home appliances segment is the largest revenue segment in the e-commerce market and
accounted for more than 32% of the total market share in 2015. The segment includes consumer
electronics, houseware, and other kitchen appliances. Much of the segment‟s growth can be
attributed to the increasing credibility of the of Brands Online and the frequent tendency of
consumers to upgrade their homes. Moreover, the growing trend towards recycling and the use of
smart energy in consumer electronics will be a major factor augmenting the growth prospects for
this segment in the coming years.

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Geographical segmentation and analysis of the e-commerce market

 Americas
 APAC
 EMEA

Among all geographies, APAC will be the fastest growing region in the e-commerce market
during the forecast period due to the increasing internet penetration and high purchasing power
of the middle class population. The local vendors dominate the region‟s market and restrict the
influence of foreign players, thereby maintaining the revenue growth. With the growing adoption
of smart devices and latest digital technologies, the region is anticipated to grow at a tremendous
CAGR of more than 25% over the next four years.

Although the terms e-commerce and e-business are often used interchangeably, there are
differences. E-commerce is the buying and selling of goods and services on the Internet or other
computer network. Any brick and mortar store can become an e-commerce business by adding a
virtual storefront with an online catalog. In most cases, e-business refers exclusively to Internet
businesses, but it may also refer to any business that uses Internet technology to improve
productivity and profitability.

Facts

Business transactions that involve the exchange of money are covered by the term e-commerce.
E-business includes all aspects of running a business that sells goods and services, including
marketing, earning and retaining customers, procurement, developing business partners and
customer education. In order to be successful, e-commerce and e-businesses must have quality
storefronts that are simple to navigate and peruse, with accurate and thorough catalog
information. E-business became an extension of e-commerce to encompass all aspects of
businesses that function online. E-business involves e-commerce, but e-commerce does not
cover all aspects of e-business.

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History

E-commerce, in its initial form of commercial transactions, came about in the late 1970s. At this
point, businesses began to send commercial documentation electronically to other businesses.
The general public was introduced to the Internet in 1994, but it took an additional four years to
create the security protocols necessary for a ready Internet connection. By 2000, businesses in
America and Western Europe were presenting their goods and services online. This is when e-
commerce became online buying and selling, and e-business was born. Amazon and eBay were
two of the first e-businesses to allow electronic transactions.

Advantages to Vendors

E-businesses have distinct advantages over brick and mortar stores. First, they can be found with
search engines without the use of pricey advertising campaigns. Beyond this, e-business allows
vendors to track purchases and preferences of customers, leading to marketing catered to each
individual. Advantages for e-commerce, which also extend to e-business, are great monetary
savings (because of fewer employees and low overhead) and the ability to reach consumers
across the globe.

Advantages to Consumers

Consumers can access e-commerce and e-businesses at any time of the day or night, from their
workplace or in their pyjamas. Consumers can search through countless products and services
using online databases. Prices are quickly compared online to find the business that offers the
best products at the best prices. Consumers are quickly exposed to e-business because it uses
more targeted marketing and offers more in-depth education compared to traditional businesses.

19
Features

E-commerce and e-businesses offer online storefronts, complete with virtual shopping carts and
wish lists that can be emailed to friends and family. Along with this, e-businesses often have an
electronic chat function that is used for technical and customer support. Virtual computer
systems allow businesses to remotely access their customers‟ computers to correct problems or
navigate software and hardware specifications. E-business extends from these features to work
with internal processes like product development, risk management, production and inventory
management, among other things.

The e-commerce market has changed the way business is transacted, whether in retail or
business-to-business, locally or globally. Prior to the Internet, success in retail was said to hinge
on location, location and location. Now, the Internet is a global marketplace, affording even the
smallest retailer a national -- if not a global -- presence. Brick-and-mortar locations now have
websites, and new companies now sell products that were unthinkable prior to the Internet and
the boom in related technology. The scope of the e-commerce marketplace is difficult to
measure. The e-commerce market has become such a vital part of the economy that is difficult to
pinpoint exactly where e-commerce begins and the old world economy ends.

Online Retail

One of the largest segments of e-commerce is the online retail sector, which is dominated by the
sale of consumer electronics, apparel and accessories. According to the U.S. Commerce
Department, U.S. online retail sales during 2011 totalled roughly $194 billion. By 2013 this
figure had increased to $262 billion, an increase of 13.4 percent over the prior year. Fifty
retailers account for 80 percent of this market, and pure-play online retailers generally hold the
advantage of speed and dynamics over brick-and-mortar brands that have expanded online.
Consumers have become more sophisticated and online retail has become more competitive.
Holiday sales account for a large portion of sales -- roughly $47 billion during 2013 -- and were
up 10 percent over 2012 sales.

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Digital Advertising

Advertisers are spending record amounts on digital advertising, including dominant brands that
have partnered with e-commerce sites and outside logistics companies to expand online sales, to
expand internationally, and to deliver products directly to consumers. As of the time of
publication, in the U.S. digital advertising spending roughly equals spending on television
advertising and is sure to overtake it. Internet ad revenues grew by 15.6 percent during the first
quarter of 2013. Total domestic digital advertising equalled $109.7 billion, but the mobile
market, which still accounts for only 3.7 percent of U.S. digital advertising, is growing at the
fastest rate. Mobile advertising spending was up 81 percent during 2012, and is dominated by
Google and Facebook along with their peer companies.

Business-to-Business

The business-to-business market in the U.S. is massive, recording sales of roughly $559 billion
during 2013. Big players in the B2B market include networking and infrastructure companies
such as Oracle Corporation, Cisco and Alcatel, as well as enterprise systems companies such as
SAP and IBM. Other B2B segments are growing quickly, including B2B social networks and
advertising, and cloud computing, a segment that includes industry heavyweights like Google
and Amazon. One of the fastest growing B2B segments is the software-as-a-service market, a
market pioneered by [Link], which is benefiting from corporate America‟s desire to
reduce tech spending along with the proliferation of cloud computing services.

Outlook

According to Forrester Research, online retail sales are projected to outpace brick-and-mortar
sales for at least several years. At the time of publication, online retails sales were expected to
reach $370 billion by 2017, boosted by expanding use of Smartphone‟s and tablets and also by
increased investment by traditional retailers in expanding online sales. By 2015, mobile add

21
spending was expected to increase to $33.1 billion while total digital advertising spending was
estimated to equal roughly $133 billion. Projections for mobile ad spending had it rising by 61
percent during 2014 and 53 percent during [Link] report titled 'Indian E-commerce Industry
Outlook 2017 - Far Reaching Opportunities in B2B Marketplaces' focuses on various segments
of the e-commerce industry in the India, including online B2B, B2C, travel, job, finance,
advertisements and online payment gateways. The report focuses on the various growth drivers
in the industry and in each of these specific online market. These online markets have been
further segmented on the basis of different online services offered. The industry has been
analyzed on the basis of various growth divers and macroeconomic indicators affecting the
market and thus a detailed future forecast of the industry has been inculcated in the report. The
report also includes detailed competitive analysis of each of the online market with
comprehensive company profiling and business strategies. The report also provides for a detailed
view of the Asia-Pacific E-commerce industry comprising of different countries namely Japan,
South Korea, Thailand, China and India.

The online B2B market of India is an emerging segment of the overall e-commerce industry with
large number of wholesale buyers and sellers interacting at different marketplace. The industry
growth has been forecasted to augment in the future given the rise in the application of internet
technologies in the country. The industry is fragmented among various online marketplace
portals with few dominating the industry. The market has been segmented on the basis of micro,
small and medium enterprises. [Link] is the leading player in the sector with the market
share of ~% in FY'2012. The company has pan India presence and operates in more than 60
cities with 2,800 employees.

The online B2C E-commerce market is the major component of the Indian e-commerce industry
and can be segmented on the basis of online travel and non-travel market. The non-travel market
has been further segmented on the basis of online retail, online financial services, online mobile
downloads and other online preferred services.

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The online travel market of India has inclined at a CAGR of 55.5% from 2007-2012. The market
showcased the highest growth of 68.9% in 2010 with travel portals offering a host of new
services as well as due to the increase in the domestic travel and tourism industry in India. In
2011, the online hotel booking market has witnessed high growth in terms of transactional scale
with a growth of 207.5%. The Indian online travel market is fragmented among various online
travel portals out of which the Indian Railways has the highest percentage reach of ~% among
the internet users followed by [Link] with ~%.

Online retailing or e-tailing accounts for about 5.1% share of the INR ~ crore industry leading
the forefront of the rapid growth. In the online retail market, personal items such as jewellery,
apparels and fashion accessories have the highest contribution of ~% in 2012, followed computer
accessories and peripherals. There are close to 400 non-travel independent online retailers that
are active in the Indian e-commerce industry

The online advertisement is a form of market products via communication on the internet to
persuade the internet users to purchase or take an action based on content displayed on a website.
The online advertisement market in India has showcased a CAGR growth of 32.7% from
FY'2007-FY'2012 with the highest growth of 40.3% in FY'2011 on account of display and search
advertisements.

India online payment gateways market has grown on account of the increase in the number of
online users and consumer confidence in making online payment because of the secure safety
measures offered by the online payment gateways and the augmented use of credit/ debit cards
and internet banking for making online payments. The market has been segmented on the basis
of payment in online travel and non-travel market of India. CC Avenues is the largest player in
the segment with around 100 million transactions processed in FY'2012.

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KEY TOPICS COVERED IN THE REPORT

- Market size of Asia-Pacific e-commerce industry, the segmentation of the overall industry on
the basis of countries and type of business model

- Market size of India e-commerce industry on the basis of transaction scale, trends and
development and future forecast

- The market size on online B2B market of India on the basis of net revenue, market
segmentation on the basis of contribution by the type of enterprises, market share of major
players and future projections

- The report includes the market size of the online B2C market of India and has been segmented
on the basis of travel and non-travel

- The report further involves the market size and the segmentation of online non-travel market
and also includes a detailed analysis of the competition in the market

- The online advertisement market and its segments have been included in the report. The report
also includes future projections of the same

- The segmentation of online advertisement market has been done on the basis of online
classifieds, display, search and mobile advertisements. These type of advertisements have been
further sub-segmented on the basis of expenditure by different type of industries and the type of
technology platform used

- The online payment gateways market has been defined on the basis of net transaction fee
charges by the gateways. The market has been segmented on the basis of the payment made in
online travel and non-travel purchases

24
CHAPTER- 2

REVIEW OF LITERATURE

25
MEANING OF CUSTOMER SATISFACTION

Customer Support function for an e-commerce website is one of the most important touch-
points for the business in terms of building trust, customer acquisition and maintaining customer
loyalty. Flipkart„s Customer Support team consists of call-centre agents who handle in-bound
and out-bound calls and also a team that handles e-mail queries. The entire team is based out of
Bangalore and forms a core part of Flipkart„s 6,000-strong employee base. Given that Flipkart
tries to differentiate itself on superior shopping experience and customer service is an integral
part of that – Flipkart prefers to train its own support staff rather than outsourcing the function to
a BPO agency. At present, a customer calls due to one of the below reasons:

 Sales Assistance

 General Enquiries

 Product/Shipping related enquiry

One of the major reasons for these calls is Indian consumers poor familiarity with online
shopping protocols. It is important to note that Flipkart tries to ensure that any order is placed
within 6 clicks on the website. There is also an outbound call-centre that performs the following
tasks:

 Pro-actively inform customers about any delay in deliveries.

 Pro-actively check the status of refunds or returns.

 Inform the user in case any delivery has not been successful due to the customer not
being present at his address.

26
Despite all the good intentions of Flipkart in providing high-quality customer service, there are
several internet blogs that suggest that their service quality has dipped in the last year or so. A
major reason for this could be the growth in number of customer service executives „not keeping
pace with the increase in business volume. There could also be a problem of increased
complexity in query handling due to increase in number of SKUs and product categories that
would demand more rigorous training for the support staff.

27
CHAPTER-3

RESEARCH METHODOLOGY

28
3.1 UNIVERSE

The Research work is based on both primary and secondary data, primary data was collected
with the help of questionnaire. Secondary data has also been utilized in order to fabricate the
present research work. Different studies, surveys, reports and other research work have also been
referred to find out the customer satisfaction towards [Link]. With respect to the present
work all the consumers who use Flipkart were the part of the universe and their respective sum
represents the universe.

Research Design:-

The present research work is based upon the concepts of Exploratory Research as the prime
aim is to explore the customer satisfaction of the people who use [Link].

29
3.2 SAMPLE SIZE AND SAMPLING TECHNIQUE

Sampling:-
Researcher collect needed information from various persons who are associated with this subject.
When such associated persons are in new number research can get information from all of them
in such some people among associated persons are selected and collect information from them.
This selected person represents the whole universe and are called sample.

Sampling Units:-
Respondents of Delhi who use [Link].

Sample Size:-

The sample size of 100 respondents was taken for the current study.

Sampling Technique:-

The sampling technique used for the study was convenience sampling, wherein the population
elements are selected for inclusion in the sample based on the convenience of researchers.

30
3.3 DATA COLLECTION

For the present minor project work both primary and secondary data were extensively used.
These data were collected from primary and secondary sourced respectively

 Primary data
 Secondary data

Primary data for the present research work has been collected through
A. Observation method.
B. Interview method.
C. Questionnaires.

The secondary data required for the project has been collected from company website, Newspaper,
Magazines, Journals, published work of other researchers and little part has also been referred from books.

31
3.4 TOOLS OF PRESENTATION

For the current study, different presentation tools were used for presentation of the relevant
information. The following tools were used for analysis:

 Bar Chart
 Pie Chart
 Table Diagram

32
CHAPTER - 4

COMPANY PROFILE

33
4.1 HISTORY

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 [Link] 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 - [Link]

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 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 in still 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.

34
4.2 VISION MISSION AND OBJECTIVES OF THE COMPANY

Vision
The vision of FLIPKART is stated as below
 To become Amazon of India.

Mission
The mission of FLIPKART is stated as below
 Providing a delightful customer experience.

Objectives
The objectives of FLIPKART are
 To treats its employees and stakeholders with utmost respect and dignity.
 To observe and adhere to the highest standards of ethical corporate behavior.
 To produce the catalogue products to cater to the changing market requirements. Based
on the customer feedback, improvements are being made continuously in the existing
services

35
4.3 ORGANIZATIONAL STRUCTURE

 Following hierarchical pattern is followed at FLIPKART

 Management team of FLIPKART

 Flipkart CFO Karandeep Singh
 VP (marketing) Ravi Vora
 President (engineering) Mekin Maheshwari
 VP (categories) Ankint nagori
 VP (digital business) Sameer Nigam
 VP (operations) Manish Mittal
 President (operations) Sujeet Kumar

36
4.4 PRODUCT AND SERVICES OFFERED

• Aims most segments except automobiles and groceries.

Website is great, easy to use, easy to browse through the products, add products to wish list or to
a cart, get product reviews and opinions, pre-order products, make convenient payments using
different methods and better Search Engine Optimization. Quality level of the products is
absolutely fine E.g., If we take the quality of books available in Crossword and Landmark is
same as the quality of books ordered by [Link]. Products are packed in such a way that
they are Tamper proof, weather proof and breakage proof. Product line on [Link] has
warranties as promised by the brand of the product if applicable. E.g., Bajaj MX 2 1200 Watts
Iron with 2 Years Bajaj India Warranty and extra paid warranty for the particular brand is
available if applicable.30-day replacement guarantee for faulty products. (Video for the same),
Product line is extensive one as discussed earlier. Derives around 50% of its revenue from selling
books online. Flipkart as a brand has already differentiated itself as a pioneer in book retailer,
trustworthy in terms of swift services and secure payments, quality-oriented products with lower
price offerings than retail market), innovative product line, customer delightful service which has
helped them to form its own distinctive image better than few unheard competitors such as
[Link] and [Link].

37
SOME UNIQUE PRODUCT FEATURES OF [Link] SUCH AS

Wishlist

E-gift voucher

38
Flipkart launched a new Electronic Wallet feature that allows shoppers to purchase credit to their
Flipkart account using creditor debit cards, and can subsequently be utilized to make purchases
on the site, as and when required.

Affiliate

Price

39
Price of the product taking account of various expenses such as Supplier expenses,
Transportation expenses, Packaging expenses, Shipping expenses, Courier expenses, inventory
maintenance expense, office and stationery expenses, sales and advertisement expenses, taxes,
depreciation, discount allowances and many more expenses. Roughly about 5-7% profit per book
orders which indicates that generation of revenue is on volume basis. Differentiated themselves
by giving best selections, best services at lowest best possible prices. Discounts up to 35% across
all categories. Upper edge in competitive pricing. Special discount for loyal customers and
regular buyers. As shipping is within India the shipping cost reduces, which indirectly reduces
the overall cost for the company and thus company offers less price as compared to other
players. Free shipping overall Indian boundaries after certain amount of purchase done from the
site and even without minimum purchase for the regular and loyal customers. For expensive
products transit cost is borne by company. Maximum discounts in the occasional time like
Diwali, Eid etc.

40
4.5 MARKETING STRATEGIES FOR CUSTOMER SATISFACTION

 Word of mouth (initial marketing even now they want to satisfy customer so they come
back for more).
 Good use of SEO.
 We DO NOT sell old books or used books. All the books listed at [Link] are new
books. The books listed at [Link] are NOT available for free download in e-book
or PDF format.
 Thus when you search free e-books or PDF books old or used books Flipkart will be
displayed.
 Good use of SEM.
 Ads at proper places and use pay per click to pay for ads.
 Very easy web interface.
 Payment convenience.
 Cash/card on delivery – there by encouraging students and people with no credit/debit
card to purchase in Flipkart, with mobile internet penetration there is chances of
capturing rural market (60% revenue by COD).
 EMI –by targeting price sensitive customers.
 Wallet – customer can recharge money online and purchase then and when needed those
entering details always is rectified, target heavy purchase and luxury customer.
 Customer conversion rate is so high more than 70%.
 Personalization of the user page.

41
Potters 5 forces - Bargain power of suppliers (low).
The readers are reducing thus suppliers are in weak position:

 Inventory turnover is lower, thus more inventory again Flipkart is at the upper hand

 Bargain of buyers (high)

 Not many buyers

 Best deals online

 Cash on delivery

 One stop solution

 Faster delivery with free shipping cost

 Threat of New entries (high)

 Market potential for this industry is high

 Low entry barriers, but sustaining is tough

 Threat of substitutes (Low)

 Diminishing brick and mortar model

 Increasing customer ease and customer satisfaction

 Industry rivals (Medium)

42
4.6 FUTURE PLANS

 They aim at 10 times growth and eyes at $ 1Billion sales by 2015.

 They will look at bigger investments in their supply chain and technology.

 Investment will be made in large warehouses and increased automation of their process,
so that the product is not delayed.

 They intend to enter in to various new categories and expand their current categories as
well.

 Everything except for groceries and automobiles will be available on Flipkart in future.

 To go further in the value chain, Flipkart is looking at associations with a larger number
of suppliers and partners, both nationally and internationally.

43
CHAPTER-5

DATA REDUCTION,
PRESENTATION &
ANALYSIS

44
5.1 GENERAL FINDINGS

Strength:

 Top Indian ecommerce portal

 Diversified into electronic goods
 Two VC investment to build its own delivery system thereby reduce delivery time
 Cash on delivery which is making 60% of its income
 Industry condition: very high potential
 Investor„s trust
 Services and warehousing
 Payment options
 Established brand

Weakness:

 Coordination with suppliers and courier was tough

 Price biasing to maintain the margins ( e.g. Low price for the best seller book and more
price for the least wanted)
 24/7 customer care, thus even mid night is to delivered within 24 hours
 Entry of international on-line competitors in Indian market
 Customers are not comfortable with online payment
 Not profitable operationally
 Time to build confidence among the customers
 Middle management retention issues.

45
Opportunities:

 Already working towards customer delight will obtain customer loyalty gradually
 Supplier database interface with flipkart website for JIT procurement
 Mobile internet usage is increasing there by chances of increase in sales through mobile
shopping.
 Development of m-commerce in the e-market
 Increasing internet penetration
 Target social medias to reach young population
 High interest among VC/PE.

Threats:

 Small players and emerging competitor

 In capabilities to manage certain costs like delivery cost, bank charges
 High competition from major international online retailers
 Capture of alternative market by competitors
 Major players like Amazon

46
5.2 FINDINGS BASED ON QUESTIONNAIRE

Q1. Do you use [Link]?

□ Yes □ No

TABLE – 1

Response No. of Respondent Percentage

Yes 100 100%

No 0 0%

Total 100 100%

CHART – 1

Purchase on [Link]

Yes =100%
No = 0%

Interpretation: All the response has been taken from the consumers who were the users or have
either used [Link]

47
Q2. Main consideration while shopping on [Link] are?
□ Price □ Brand
□ Quality □ Promotion activity

TABLE-2

Reason for purchase No. of respondents Percentage

Price 19 19%
Brand 22 22%
Quality 44 44%
Promotion activity 15 15%
Total 100 100%

CHART-2

Consideration while shopping on

[Link]
Price = 19%

Brand = 22%

Quality = 44%

Promotion activity = 15%

Interpretation: According to the response obtained, most of the respondents (44%) preferred
[Link] because of its quality, followed by 22% respondents who purchased it due to the
Brand Name, another 19% have preferred due the attractive price and Rest 15% respondents
were attracted towards [Link] due to the Advertisement.

48
Q3. Are you satisfied with the services of [Link]?
□ Yes
□ No

TABLE – 3

Response No. of Respondent Percentage

Yes 82 82%

No 18 18%

Total 100 100%

CHART – 3

customer satisfaction

Yes = 82%
No = 18%

Interpretation: According to the response obtained, most of the respondents (82%) were
satisfied with the services of [Link] and the rest 18% respondents are not satisfied with its
services.

49
[Link] to other online shopping platforms that is available would you say that
[Link] is:
□ much better □ much worse
□somewhat better □ don‟t know

TABLE – 4

Scaling Much Much Somewhat Don‟t

better worse better know

Frequency 50 34 11 5

Percentage 50% 34% 11% 5%

CHART-4

Comparison of [Link] with

other online shopping platforms

Much better = 50%

Much worse = 34%
Somewhat better = 11%
Don't know = 5%

Interpretation: According to the response obtained, most of the respondents (50%) think that
[Link] is a much better platform compared to others in terms of its services and price.
(34%) of them think that is much worse than others while (11%) think that is somewhat better
and the remaining (5%) had no opinion.

50
[Link] on your experience with product, how likely will you buy [Link]?
□ Very Unlikely □ Unlikely
□ Extremely Likely □ Very Likely

TABLE – 5

Scaling Very Unlikely Extremely Very

Unlikely Likely Likely

Frequency 7 14 55 24

Percentage 7% 14% 55% 24%

CHART-5

Conditions for purchasing on

[Link]

Very Unlikely = 7%
Unlikely = 14%
Extremely Likely = 55%
Very Likely = 24%

Interpretation: According to the response obtained, most of the respondents (55%) will
extremely likely buy on [Link] because it is more affordable than others followed by 24%
respondents who will very likely buy the product while other 14% respondents will unlikely buy
the product and the remaining 7% will very unlikely buy the product.

51
[Link] you like to recommend shopping on [Link] to others?
□ definitely will recommend □ probably will not recommend
□ probably will recommend □ definitely will not recommend

TABLE – 6

Scaling definitely probably probably definitely

will will not will will not
recommend recommend recommend recommend

Frequency 59 18 16 7

Percentage 59% 18% 16% 7%

CHART-6

Recommendations of flipkart to
others
Definitely will recommend
= 59%
Probably will not
recommend = 18%
Probably will recommend
= 16%

Interpretation: According to the response obtained, most of the respondents (59%) will
definitely recommend [Link] in terms of its affordable price, quality and its advertising
followed by 18% respondents will probably not recommend the product, another 16% will
probably recommend the product and the remaining 7% will definitely not recommend the
product.

52
[Link] rank the services of [Link] on the following scale?

□ Outstanding □ Satisfactory

□ Somewhat Satisfactory □ Not Sure

TABLE – 7

Scaling Outstanding Satisfactory Somewhat Not Sure

Satisfactory

Frequency 50 25 15 10

Percentage 50% 25% 15% 10%

CHART-7

services of [Link]

Outstanding = 50%

Satisfactory = 25%

Somewhat Satisfactory =
15%
Not sure = 10%

Interpretation: According to the response obtained, most of the respondents (50%) have ranked
the services offered by [Link] impressed to be outstanding followed by 25% respondents
have ranked the services to be satisfactory, another 15% respondents have ranked the services to
be somewhat satisfactory and the rest 10% were not sure about their services.

53
[Link] you satisfied with the quality that [Link] serves?
□ Satisfied □ Very Satisfied
□ Dissatisfied □ Very Dissatisfied
□ Neutral

TABLE – 8

Scaling Satisfied Very Dissatisfied Very Neutral

Satisfied Dissatisfied

Frequency 44 28 13 10 5

Percentage 44% 28% 13% 10% 5%

CHART-8

50%
45%
40%
35%
30%
25%
20%
15% Column1
10%
5%
0%
Satisfied = Very Dissatisfied Very Neutral =
44% Satisfied = = 13% Dissatisfied 5%
28% = 10%

Interpretation: According to the response obtained, most of the respondents (44%) were
satisfied with the quality that [Link] offered in terms of its speed and maintenance
followed by 28% respondents who were very satisfied with their products, while other 13%
respondents were dissatisfied with the products, another 10% were very dissatisfied with the
products and the rest 5% respondents were neutral.

54
[Link] you find prices at [Link] reasonable?

□ Yes □ No

□ Can‟t Say

TABLE – 9

Scaling Yes No Can‟t Say

Frequency 55 34 11

Percentage 55% 34% 11%

CHART-9

60%
50%
40%
30%
20% Column1
10%
0%
Yes = 55% No = 34% Can't say =
11%

Interpretation: According to the response obtained, most of the respondents (55%) found the
price at [Link] reasonable while other 34% respondents do not find it reasonable and the
rest 11% respondents had no response about the price of the products.

55
[Link] you find the Advertisement of [Link] attractive & knowledgeable?
□ Yes □ No
□ can‟t say

TABLE – 10

Scaling Very Attractive Not Attractive Can‟t

Say

Frequency 75 20 5

Percentage 75% 20% 5%

CHART-10

80%
70%
60%
50%
40%
30% Column1
20%
10%
0%
Very Attractive = Not Attractive = Can't Say = 5%
75% 20%

Interpretation: According to the response obtained, most of the respondents (75%) found the
advertisement of [Link] attractive and knowledgeable while other 20% respondents do not
find it attractive and knowledgeable and the remaining 5% respondents had no response about
the advertisement.

56
Q11. Are you satisfied with the Marketing Strategy [Link]?

□ Satisfied □ Very Satisfied

□ Dissatisfied □ Very Dissatisfied
□ Neutral

TABLE – 11

Scaling Satisfied Very Dissatisfied Very Neutral

Satisfied Dissatisfied

Frequency 52 20 13 10 5

Percentage 52% 20% 13% 10% 5%

CHART-11

Satisfaction level for Marketing

strategy of flipkart
Satisfied = 52%
Very Satisfied = 20%
Dissatisfied = 13%
Very Dissatisfied = 10%
Neutral = 5%

Interpretation: According to the response obtained, most of the respondents (52%) were
satisfied with the overall marketing strategy of [Link] because of its price, quality and
services followed by 20% respondents were very satisfied while other 13% were dissatisfied ,
another 10% respondents were very dissatisfied and the rest 5% were neutral.

57
CHAPTER - 6

CONCLUSIONS &
RECOMMENDATIONS

58
6.1 CONCLUSIONS

A credible rival can do wonders to an enterprise and Flipkart is no different. The entry of
Amazon in India has enabled Flipkart develop a lot of in-house innovation and organically
developed best-practices - that have now become the industry standard. Flipkart began
operations on the consignment model; goods were procured from suppliers on demand, based on
the orders received through the website. Later, the books-to-electronics e-shop adopted the
warehouse model. The company had its own warehouses, and maintained its own inventory.
However in July 2013, Flipkart launched its model of marketplace just one month after Amazon
launched its marketplace in India. It introduced payments brand PayZippy for online merchants
and customers seeking fast, hassle-free and safe payment options. Some 70 per cent of its
shipments are done by its own logistics company and about half of deliveries are on a cash-on-
delivery basis. Flipkart has recently introduced the next day guarantee delivery service and
shopping from its own mobile application. Given the critical mass of transactions Flipkart
controls - about 100,000 a day - the company is betting that it has the volumes to lay the
foundation of what will be a profitable business. Last but not the least; Flipkart has very clearly
prioritized customer delight as its chief avenue for customer acquisition and retention. This
causes them to build a lot of slack into their existing systems causing higher costs at several
points in the supply chain. How they address this challenge is what will determine their future
success.

59
6.2 SUGGESTIONS

Flipkart has successfully placed itself into the prospects mind making it the India„s largest online
store with huge range of products. But Flipkart still needs to work on their core competence that
is books and stationery items. With the entry of [Link] it will be a huge competitive
market for Flipkart and hence will have to position itself better, as we still see that huge
percentage of females are still unaware of Flipkart. Those female who purchase, has a very less
frequency which has remained unchanged. Therefore they need to get aggressive at providing
better services which can be fulfilled by reducing the delivery time, selling second hand products
which will increase consumers „affordability much more and enhance penetration into the
market. They can even have their retail stores which can give an access to consumers to feel and
analyse the products, which will help them win the consumers faith. Price will still be a factor as
Amazon being a huge company will use its economies of scale to remove their competitors from
the market; therefore they need to be more competitive on that aspect. Be very focused on
consumers and build amazing experiences for the customers.

60
 LIMITATIONS OF THE STUDY

Following are the important limitations faced during the research work; these limitations always
pose a challenge to the research

 The study was conducted in few areas of South Delhi and Central Delhi. Hence the study may
not be useful for projection of behavioural aspect of customers of other cities.

 Money virtually fall short of what ideal field work would cost and may require shortcuts for
the validity of findings.

 People lack the time so they did not take interest in filling questionnaires.

 Limited time of working and cost involved can be considered as one of the important
limitation.

61
 BIBLIOGRAPHY

 [Link]

 [Link]/features/magazine/the-flipkart.../[Link]

 [Link]
15/news/43068552_1_marketplaces-flipkart-online

 [Link]

 [Link]/interview-with-flipkart-founder-binny-bansal-776

 [Link]/flipkart

 [Link]/technology/industrytrend/how-flipkart-broke-indias-online-
shopping-inertia/[Link]

62
ANNEXURE

63
 SAMPLE QUESTIONNAIRE

Q1. Do you use [Link]?

□ Yes □ No

Q2. Main considerations while shopping on [Link] are?

□ Price □ Brand
□ Quality □ Promotion activity

Q3. Are you satisfied with the services of [Link]?

□ Yes
□ No

[Link] to other online shopping platforms that is available would you say that
[Link] is:
□ much better □ much worse
□somewhat better □ don‟t know

[Link] on your experience with product, how likely will you buy [Link]?
□ Very Unlikely □ Unlikely
□ Extremely Likely □ Very Likely

[Link] you like to recommend shopping on [Link] to others?

□ definitely will recommend □ probably will not recommend
□ probably will recommend □ definitely will not recommend
64
[Link] rank the services of [Link] on the following scale?

□ Outstanding □ Satisfactory

□ Somewhat Satisfactory □ Not Sure

\[Link] you satisfied with the quality that [Link] serves?

□ Satisfied □ Very Satisfied
□ Dissatisfied □ Very Dissatisfied
□ Neutral

[Link] you find prices at [Link] reasonable?

□ Yes □ No

□ Can‟t Say

\
[Link] you find the Advertisement of [Link] attractive & knowledgeable?
□ Yes □ No
□ can‟t say

Q11. Are you satisfied with the Marketing Strategy [Link]?

□ Satisfied □ Very Satisfied

□ Dissatisfied □ Very Dissatisfied
□ Neutral

65