A MAJOR PROJECT REPORT

ON
“COMPARATIVE STUDY BETWEEN FLIPKART AND
AMAZON INDIA”

Submitted in partial fulfilment of requirement of Bachelor of

Business Administration
(BANKING & INSURANCE)
B.B.A (B&I)

Batch 2017-2020

Submitted to: Submitted by:

MS. KOMAL AAKRITI GUPTA
(ASSISTANT PROFESSOR) Eno. 00112401817

DELHI INSTITUTE OF RURAL DEVELOPMENT

AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA
UNIVERSITY, DELHI
CERTIFICATE
This is to certify that the project titled is an academic work done by
Aakriti submitted in partial fulfilment of the requirement of bachelor
of business administration (BBA) Delhi Institute of Rural
Development Affiliated to: Guru Gobind Singh Indraprastha
University, Delhi, under my guidance and direction. To the best of my
knowledge and belief the data and information presented by her in the
project has not been submitted earlier.

MS. KOMAL
(ASSISTANT PROFESSOR)
 STUDENT’S DECLARATION

This is to certify that I have completed the project title

“COMPARATIVE STUDY BETWEEN FLIPKART AND
AMAZON INDIA” under the guidance of MS. KOMAL in the partial
fulfilment of the requirement for the award of the degree of Bachelor
in Business Administration (Banking and Insurance)” from “Delhi
Institute of Rural Development, New Delhi.”

This is an original work and I have not submitted it earlier elsewhere.

AAKRITI GUPTA
ENROLLMENT NO. – 00112401817
BBA (BANKING & INSURANCE)
VIth SEMESTER
 ACKNOWLEDGEMENT

This project consumed huge amount of work, research and dedication.

Implementation would not have been possible if I don’t have support
of our teacher MS. KOMAL. Therefore, I would like to extend my
sincere gratitude to her.

First of all, I am thankful to DIRD, NANGLI POONA for their

logistical support and for providing necessary guidance concerning
projects implementation.

I am also thankful to MS. KOMAL for provision of expertise and

technical support of my friends in implementation without whose
superior knowledge and experience, project would like in quality of
outcomes and thus their support has been essential.

AAKRITI GUPTA
ENROLLMENT NO. – 00112401817
BBA (BANKING & INSURANCE)
VIth SEMESTER
 TABLE OF CONTENT

S. No Particulars Page No.

1.
Chapter I
 Introduction
 Objectives of the study
 Review of Literature
 Research Methodology
 Limitations of the study

2.
Chapter II
 Profile of the Organization
 Flipkart
 Amazon

3.
Chapter III
 Analysis and interpretation of data

4.
Chapter IV
 Conclusion and Recommendation and F9ndings

5.
Bibliography

6.
Annexure
 CHAPTER I
INTRODUCTION
 INTRODUCTION

Ever since internet has been introduced to world, it has made a huge impact on people;
business is one of such examples where internet has made the difference. In July 1995
Amazon.com started selling books online and the response they received was unexpected as
in short time span books sold online in all 50 states of USA and 45 countries. Amazon
presently offers music, movies, toys, electronics and home equipment. There are seven
different international websites of Amazon with distributed customer service centres in seven
countries and over 17,000 people work in Amazon worldwide. Today there are over 100
popular e-commerce websites are providing online services worldwide. An e-commerce
opens the global market to the customer, it helps the customer by providing huge options
while buying a product or a service, the online searching and comparing facilities enables
customer to select right product or service, another major advantage of e-commerce is that it
is 24x7 available to the customer. The customer can shop almost anything within his/her
comfort zone by siting at home, office during travel or almost from any place at any time.

E-commerce is trading of services and products with the help of internet. E-commerce
introduced in the end of 70s and became popular during the 90s in western countries like
USA and UK. E-commerce introduced new possibilities in trading and attracted attention of
many traders.

Search
Catalogue Add
Order Products
Confirmation to Cart

Order Checkout
Shipping

Process
Order Online
Notification Pyment
Checkout

Figure showing the different phases in the online shopping process

E-commerce offers product and services through websites, a customer simply has to visit an
e-commerce website and browse various offering through browser catalogue, a customer can
select multiple offerings and can add them to the shopping cart, once the shopping is done the
customer can checkout and proceed to payment section where various online payment options
are available like internet banking, credit card, debit card etc. Once payment is done the
customer is notified bout the order and order is shipped on the postal address provided by the
customer.
 OBJECTIVES OF THE STUDY

 To understand and estimate the consumer perception and factors affecting their
behavior for choosing e-commerce sites.
 To understand tactics and methods that are used by e-commerce players to grab the
customers in India.
 To know how consumers are evaluating e-commerce sites for their purchases.
 To understand the work flow of Amazon and Flipkart which are leading in India.
 To study complexities and barriers those are there in between e-commerce sites and
customers.
 To find out new opportunities and to succeed in those procedures.
 REVIEW OF LITERATURE

Sharma and Mittal (2009) in their study “prospects of e-commerce in India”, mentions
that India is showing tremendous growth in the e-commerce. Undoubtedly, with the middle
class of 288 million people, online shopping shows unlimited potential in India. The real
estate costs are touching the sky. Today e-commerce has become an integral part of our daily
life. There are websites providing any number of goods and services. The e-commerce portals
provide goods and services in a variety of categories. To name a few: apparel and accessories
for men and women, health and beauty products, books and magazines, computers and
peripherals, vehicles, software, consumer electronics, household appliances, jewellery, audio,
video, entertainment, goods, gift articles, real estate and services. Ashish Gupta, senior
managing director of Helion venture partners and one of the first backers of Flipkart as an
angel investor: “Flipkart has been absorbing companies that have some potential
(letsbuy,myntra). In that process, some of the bets will go wrong, for sure. But that is par for
the course. The company (Flipkart) is consciously taking bets that allow it to either grow or
eliminate competition that reduces marketing spend and improves economics”.
Miyazaki and Fernandez (2001) substantiated that the prior experience was found to affect
the intention and behaviour significantly and in a variety of ways. The results of this study
imply that the technology acceptance model should be applied to electronic commerce
research with caution. In order to develop a successful and profitable web shop,
understanding customers’ needs is essential. It has to be ensured that products are as cheap in
a web shop as purchased from traditional channels.
Samad and Ali (2010) compared the perceived risk level between internet and store
shopping and revisit the relationships among past positive experience, perceived risk level,
and future purchase intention within the internet shopping environment.
Abhijit Mitra (2013) “e-commerce in India a review”, international journal of marketing
financial services & management research. Concluded that the e-commerce has broken the
geographical limitations and it is a revolution – commerce will improve tremendously in next
five years in India.
D.K. Gangeshwar (2013),” e-commerce or internet marketing a business review from
Indian context”, international journal of u – and e – service, science and technology.
Concluded that the e – commerce has a very bright future in India although security, privacy
and dependency on technology are some of the drawbacks of e – commerce but still there is a
bright future to e – commerce.
Dr. Sudhu S (2015) Innovation brings with itself a new set of challenges. The E – Retailing
form of market was fairly something unheard of to the Indian consumer in 2007. Flipkart
which has carved a niche for itself in terms of market share, goodwill and popularity in the
online market to the extent that retailers are coming under threat because of its discounts and
smooth operations. The ascent of Flipkart to capture the online market in India in just four
years, the strategies implemented by it to create online business, its ability to stand out among
numerous E – Retail sites. This case study aims to understand the marketing strategy, brand
awareness, SWOT analysis, functioning of Flipkart. It aims to predict the future roadmap and
also aims to find significant threats to Flipkart in the near future.
Pooja Gupta (2015) The study tries to recognize that, how consumer measure channels for
their purchasing. Specifically, it progresses a conceptual model that addresses consumer
value perception for using the internet shopping versus the traditional shopping. Earlier study
showed that perceptions of price, product quality, service quality and threat strongly impact
perceived value and purchase intents in the offline and online network. Observations of
offline and online buyers can be evaluated to see how value is constructed in both channels. It
is hitherto to recognize what factors influence online and offline shopping choice
progression. The objective of this study is to provide an impression of online shopping
decision process by comparing the offline and online decision making and identifying the
factors that motivate customers to decide whether to do online shopping or go for the offline
shopping. Consumer’s shop when and where they want, where they are comfortable with the
products and the choice of shopping. The study finds that female is more into online shopping
than male.
K Francis Sudhakar (2016) Internet became more powerful and basic tool for every
person’s need and the way people work. By integrating various online information
management tools using Internet, various innovative companies have set up systems for
taking customer orders, facilitate making of payments, customer service, collection of
marketing data, and online feedback respectively. These activities have collectively known as
e – commerce or Internet commerce. Online shopping made so easy for everyone with their
product variations and simple way to buy things. An attempt has been made to critically
examine various corporate and business level strategies of two big e – tailers and those are
Flipkart and Amazon. Comparison have been done considering e – commerce challenges,
their business model, funding revenue generation, growth, survival strategies. Shoppers’
online shopping experience, value added differentiation and product offerings.
 RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. One can also define research
as a scientific and systematic search for pertinent information on a specific topic.

PRIMARY DATA
Primary data are first – hand information. This information is collected directly from the
source by means of field studies. Primary data are original and are like raw materials. It is the
crudest form of information. The investigator himself collects primary data or supervises its
collection. It may be collected on a sample or census basis or from case studies.
Some Advantages of using Primary Data
1. The investigator collects data specific to the problem under study
2. There is no doubt about the quality of the data collected (for the investigator)
3. If required, it may be possible to obtain additional data during the study period
Some Disadvantages of using Primary Data
1. The investigator has to contend with all the hassles of data collection –
 Deciding why, what, how, when to collect
 Getting the data collected (personally or through others)
 Getting funding and dealing with funding agencies
 Ethical consideration (consent, permissions, etc.)
2. Ensuring the data collected is of a high standard –
 All desired data is obtained accurately, and in the format, it is required
in
 There is no fake/ cooked up data
 Unnecessary/ useless data has not been included
3. Cost of obtaining the data is often the major expense in studies

SECONDARY DATA
Secondary data are second – hand information. The data which have already been collected
and processed by some agency or persons and are not used for the first time are termed as
secondary data. According to M.M. Blair, “secondary data are those already in existence and
which have been collected from some other purpose.” Secondary data may be abstracted from
existing records, published sources or unpublished sources.
Some Advantages of using Secondary Data
1. The data is already there – no hassles of data collection
2. It is less expensive
3. The investigator is not personally responsible for the quality of data (“I didn’t
do it”)
Some Disadvantages of using Secondary Data
1. The investigator cannot decide what is collected (if specific data about
something is required, for instance)
2. One can only hope that the data is of good quality
3. Obtaining additional data (or even clarification) about something is not
possible (most often)

Sample Design
In most of the research design it becomes almost impossible to examine the entire universe.
So, the only alternative is to report to sampling. This is true for the present study as well.
Basic principles to be followed in sampling are that the sample chosen must be representative
of entire universe to be studied.
Universe and Survey Population: Universe is the set of objectives to be studied. It can be
finite and infinite. And survey population is a part of universe that represents the whole
universe.
In this present study universe is 120 and survey population is 50 peoples.
Sample Size
In this present study we have taken the sample size of 50 peoples to get their views regarding
online shopping.
Sampling Method
In the present study, convenience sampling method has been used.

Data Collection Method

In dealing with any real-life problem it is often found that data at hand are inadequate, and
hence, it becomes necessary to collect data that are appropriate. There are several ways of
collecting data which differ considerably in context of a survey, data can be other resources at
the disposal of the researcher.
Primary Data can be collected through various methods like:
 Questionnaire method
 Observation method
 Through schedules
 Interview method

In the present study Primary data is collected through:

 Questionnaire

Secondary Data can be collected through various methods like:

  Magazines
 Newspaper
 Websites
 Books

In the present study Secondary Data is collected through:

 Different websites
 Company journals
 Books
 LIMITATIONS

 There was so much confidential data of companies that are not exposed.
 Survey was restricted to particular age group.
 Analysis was done based upon personal opinion of respondents individually, not from
any focus groups or experts.
 CHAPTER II
PROFILE OF THE ORGANIZATION
 Profile of the Organization
2.1 Flipkart
2.1.1 History and Growth
It is an e-commerce company founded in the year 2007, by Mr. Sachin Bansal and Binny
Bansal both alumni of the Indian Institute of Technology, Delhi. They had been working for
Amzon.com previously. It operates exclusively in India, where it is headquartered in
Bangalore, Karnataka. It is registered in Singapore, and owned by a Singapore based holding
company. Flipkart has launched its own product range under the name “DigiFlip”, Flipkart
also recently launched its own range of personal healthcare and home appliances under the
brand “Citron”. 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. Legally, Flipkart is not an Indian
company since it is registered in Singapore and majority of its shareholders are foreigners.
Because foreign companies are not allowed to do multi-brand e-retailing in India, Flipkart
sells goods in India through a company called WS Retail. Other third-party sellers or
companies can also sell goods through the Flipkart platform. Flipkart now employs more then
15000 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. Flipkart is presently one
of the largest online retailers in India, present across more than 14 product categories and
with a reach in around 150 cities. Flipkart is currently a 10,000-member strong team, with
3000 sellers on its platform and delivering 5 million shipments per month. It made its
presence felt it online retailing by offering path breaking services like cash on delivery
(COD), 30 Day replacement Guarantee, EMI options, Flipkart mobile app, etc.
2.1.2 Exclusive Products
Motorola mobility, previously owned by google but then sold to Lenovo, in an exclusive tie
up with Flipkart launched its budget smart phone moto g in India 5 February 2014 more than
20,000 units were sold within hours of launch on Flipkart after this Flipkart was looking for
along term tie up with Motorola mobility. They also launched their android smartphone, the
moto x, on 19 March 2014. Flipkart later sold the moto e, cheaper than moto g, from 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 second on 29 July 2014. The sale was produced 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 sold 20,000 units in the next
sale on 12 August 2014.
On 2 September 2014 Flipkart held a flash sale of the xiaomi redmi 1s budget android
smartphone which was launched in India in July 2014. 40,000 units priced at Rs 5999 each
were sold within seconds. A further 40.000 units were sold within 4.5 seconds on 9
September, 2014. The third redmi 1s sale on September 16, 2014 sold 40,000 units in 3.4
seconds; in the 4th round of sale of redmi 1s 60,000 units sold in 5.2 seconds on September
23, 2014. On 30 September 2014 60,000 units sold in 13.9 seconds. Redmi note in India
exclusively through Flipkart; 50,000 units sold in 6 seconds on 2 December 2014. In July
2014 Flipkart launched its own set of tablets, mobile phones. 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 digiflip wr001 300mbit/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.
2.1.3 Achievements in E-commerce
In September 2015, Sachin Bansal and Binny Bansal entered forbes India rich list debuting at
the 86th position with a net worth of $1.3 billion each. 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 India mart learders of
tomorrow awards 2011.
2.1.4 Failure in Music Industry
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
got popular in India due to the advent of free music steaming sites.
2.1.5 Acquisitions
 2010: weread, a social book discovery tool.
 2011: mime360, a digital content platform company.
 2012: letsbuy.com, an Indian e-retailer in electronics. Flipkart has bought the
company for an estimated us$25million. Letsbuy.com was closed down and all traffic
to letsbuy has been diverted to Flipkart.
 2014: acquired myntra.com in an estimated Rs 20 billion (2,000 crores about us$319
million) deal.
 2015: Flipkart acquired a mobile marketing startup palpitate as to strength its mobile
platform.

2.2 Amazon
2.2.1 History and Growth
Amazon is the largest internet-based company in the united states. Amazon.com started as an
online bookstore, but soon diversified, selling DVDs, vhss, CDs, video and
mp3downloads/streaming, software, video games, electronics, apparel, furniture, food, toys,
and jewellery. The company also produces consumer electronics notably, kindle, fire tablets,
fire tv and phone and is a major provider of cloud computing services.
Amazon has separate retail websites for United States, United Kingdom & Ireland, France,
Canada, Germany, The Netherlands, Italy, Spain, Australia, Brazil, Japan, China, India and
Mexico, with sites for Sri Lanka and South East Asian Countries coming soon. Amazon also
offers international shipping to certain other countries for some of its products. In the year
2011, it had professed an intention to launch its websites in Poland, and Sweden. In early
June 2013, Amazon had announced to invest $2 billion (Rs 12,000 crores) in India to expand
business, after its largest Indian rival Flipkart too had announced to invest $1 billion.

2.2.2 Exclusive Products

The Amazon kindle is a series of e-readers designed and marketed by Amazon.com. Amazon
kindle devices enable users to browse, buy, download and read e-books, newspaper,
magazines and other digital media via wireless networking to the kindle store. The hardware
platform, developed by Amazon subsidiary lab126, began as a single device and now
comprises a range of devices, including e-readers with e-ink electronic paper displays, and
android based tablets with color LCD screens. All kindle devices integrate with the kindle
store to acquire content and as of February 2016, the store has over 4.3 million e-books
available. The oneplus one launched as an Amazon exclusive in India last year, but now the
device is available for purchase on rival e-commerce store Flipkart. Moto g (gen 4) and moto
g plus (gen 4) will be available exclusively on Amazon.
2.2.3 Achievements in E – commerce
On the mobile app side, Amazon had the fastest growing app download rate in 2015. In order
alone, downloads increased 200 per cent. Amazon web traffic was the highest in October as
per comScore data, at 30 million visitors. Amazon active customers have gone up 230 per
cent year on year. The awards were conferred at entailing India’s flagship conference and
exhibition 2014, an event that brought together major stakeholders in the retail and e-
commerce business in the country. The “path-breaking debut of the year” award went to
Amazon.in.
2.2.4 Failure
Amazon starts using India post and screws up its delivery system in India. At the time when
the competition among online shopping portals in India is at its highest level possible and
each player is pooling in millions from funding’s and trying to beat each other with never-
before discounts and amazing services, Amazon has taken the worst step ever possible.
Amazon India has chosen India post as its primary delivery partner and all “Amazon
fulfilled” orders are now being shipped through India post. Anyone who lives in India or has
some experience with the postal system in India needs no introduction about India post.
2.2.5 Acquisitions
It’s no secret that e-commerce giant Amazon has been betting on India as one of its next big
markets outside the US. The company is not only investing capital in the region, but also
acquiring start-ups to help expand its presence in the country. On Tuesday, Amazon
announced it had acquired Indian payments company emvantage payments pvt. Ltd. Amazon
did not disclose the acquisition amount. Similar to stripe or paypal, emvantage allows online
merchants to accept credit and debit cards. The company also allowed merchants to set up
their own branded pre-paid debit cards and mobile payments. In order to differentiate itself,
company acquired many it & e- commerce start-ups like pets.com, audible.com, junglee.com,
imbd.com, zappos.com, woot etc.
 Marketing Strategy
FLIPKART
Flipkart's business model is much deeper and much expansive that could possibly elaborate
here. However, a few key points -
 Rationalized supply chain - inbound logistics
 Strategic warehousing and distribution capability - operations
 Well aligned fulfillment process - outbound logistics

All the three processes are extremely well integrated - first by a sound strategy, around which
the organizational structure is built. So, they have a strategy, and a complementing structure
to support their strategy. The third critical success factor for Flipkart is the technology as an
enabler. A strong information system is at the core of the organization, which drives visibility
and end-to-end integration across their supply chain processes (inbound - operations -
outbound) resulting in a well lubricated efficient machine.
Flipkart, must be seen as a logistics company rather than a retail business. Although it sells
products to consumers, and hence is academically classified as a b2c business, the core of the
business lies in its efficient logistics, which allows it to sell products at attractive prices.
However, its competitive advantage is not in its retailing capabilities. Infact that aspect of the
e- commerce business is easily imitable and hence not sustainable. The sustainable
competitive advantage of Flipkart, lies in its logistics and operations infrastructure - which
has a very high barrier to entry: owing to its extensive capital investment and difficult to
replicate strategy- structure-culture mix.

Cons: potential threat of the original replacing the imitated.

It is important to reflect upon the fact that its founder members (the Bansal’s) have had an
early stint with Amazon and have successfully modeled Flipkart's business on Amazon
strategy. So, it would be fair to say that Flipkart imitated Amazon's model to an extent.
However, owing to governmental regulation and international trade barriers (read retail fdi
restrictions), Amazon has not yet been able to compete with Flipkart on an even keel.
(Amazon operates as a marketplace rather than a retailer). Amazon has all the infrastructure,
culture, and technology enablers in place that Flipkart has - and on a much larger scale. One
other thing that they have is huge financial muscle power - much larger than what Flipkart
has. And the moment when these restriction on fdi in retail are lifted, Amazon will be a major
threat to Flipkart. And all these acquisitions that Flipkart has been making, is to bulk up and
brace up for the competition it faces.
MARKETING MIX OF FLIPKART
Product in the marketing mix of Flipkart - Flipkart is an online retailing industry and
started its operations with the sale of books. For two years, it sold only books through its
website as the management and shipment of books was much easier. After its expansion, it
started dealing with products like air coolers, washing machines, air conditioner, life style
products, stationary supplies, cell phones, computers, calculators, microwave ovens, water
purifiers, laptops, cameras, audio players, products relating to health care, dishwashers and e-
books. Products sold on Flipkart have the same warranties of the brand if sold outside in a
showroom. It has recently launched its personal product range called “digiflip”. Under this
brand, it offers products like computer accessories, camera bags, headphones and pen drives.
In July, Flipkart introduced its own tablet phones and networking router under its personal
range “digiflip”. On February 5, 2014 in a special tie up with Motorola mobility, Flipkart has
provided a platform for the launch of ‘moto g’. Online shoppers went crazy with the
unveiling of this smart phone. This awe-inspiring response resulted in the sales of nearly
20,000 mobiles in a few hours. Continuing their association, ‘moto x’, an android
smartphone, was introduced on march 19. On May 13, ‘moto e’ was launched at the same site
triggering the same response. Continuing this success story Flipkart in a tie up with xiaomi
tech introduced ‘xiaomi mi3’ on its platform. In the first phase on 22nd July all the phones
were sold in just 39 minutes and in the 2nd phase on 29th July the sold out was complete in
only 5 seconds. On 5th august the sale was completed in just 2 seconds. This amazing
response and hyper mania have helped in giving Flipkart an immense lift up.
Place in the marketing mix of Flipkart - Flipkart functions entirely in India and it has it
headquarters in the garden city of Bangalore in Karnataka. It is owned by a Singapore based
company and is registered over there. According to India’s foreign policy, a foreign company
is not allowed e- retailing over here. Therefore, in India, Flipkart sells the merchandises
through an Indian company was retail. Flipkart also provides its own platform to other
companies who are interested in selling their goods. The website is very easy and hassle free.
Browsing, keeping track of products, getting reviews, ordering goods and payment methods
are very convenient for the individuals. At first Flipkart started its operations on the
consignment model in which they personally bought the book and couriered it. Later they
opened many warehouses where the goods were stored safely. The first warehouse was
opened in Bangalore and later in Delhi, Mumbai, Chennai, Hyderabad, Pune, Noida and
Kolkata. As of today, more than five hundred suppliers are working for Flipkart. At least 80%
of the orders placed are handled and controlled via warehouses. Shipping companies and
courier companies are the real mediators in this setup. The quick and well-organized service
is the reason why the company has been able to put its mark on the Indian market. Their
delivery network is spread over thirty-seven cities with delivery being possible in any nook
and corner.
Price in the marketing mix of Flipkart - though Flipkart started its venture with an
investment of just inr 400,000, today its net worth is nearly 1billion dollars as its sales are
increasing day by day. It still earns revenue of 50% from selling books online. Electronic
commerce has become a huge hit because of Flipkart. Its price policy is very flexible because
of online transactions. Amount to be charged is determined after looking at the innumerable
expenses like transport expenses, supplier expenses, packaging costs, courier charges,
shipping cost, office expenses, maintenance expenses, discount allowances, depreciation,
taxes, advertisement expenses and many other expenses. Discounts up to 35% are allowed
periodically to boost up the sales and maintain competitive prices. For payments, Flipkart
allows credit card transactions, cash payment after delivery, transaction through debit card,
by swiping card on delivery, vouchers available as e-gift and net banking.
Promotions in the marketing mix of Flipkart - Flipkart has changed the concept of multi
brand retailing of products through internet in India. Its huge success has proved to be an
inspiration for other companies. It operates mostly through mouth advertising. The satisfied
customers have been their best promoters. To have a firm grip on the online world Flipkart
has used the services of google ad-words and seo. These marketing tools have made them
household names. Downloading the exclusive app of Flipkart helps in getting alerts about the
current offers, order status, price drops, recent launches and various gift coupons. Flipkart has
also taken the help of creative and interesting advertisements so that an awareness and trust is
generated for their website amongst the people. Their first campaign was shown on TVs with
the concept that books can be delivered with just a single click. Recently an ad has been
launched to increase the social visibility where the tag line is “no kidding no worries”.
Trained individuals are hired to fulfill their responsibilities adequately. The systematic
planning and level of effort undertaken to reach such heights is commendable.

AMAZON
In order to differentiate itself, company acquired many it & e-commerce start-ups like
pets.com, audible.com, junglee.com, imbd.com, zappos.com, woot etc. Which helped them in
providing high value to their customers using existing technology of the acquired partners at
low cost? Amazon has also achieved economies of scale through extensive product offerings
which include electronics, toys and games, apparels, diy and many more. These offerings
help Amazon to keep its prices low thereon passing on the benefits to the consumers.
Amazon’s robust customer centric approach to analyse the customer buying behavior based
upon preferences has helped them to have competitive edge over their competitors. More than
50% of the consumers are the repeat buyers at Amazon.com. Furthermore, Amazon is one of
the longest players to be present in the online sector and has a solid hold in European
countries and us. This bottom line is helping the company to expand in new markets.
Brand equity in the marketing strategy of Amazon – from being merely an e-book
provider to emerging as the 2ndlargest e-commerce company in the world, Amazon.com has
steadily increased its spending on advertising and promotion to make its brand stronger and
have a higher brand equity. By April 2015, the brand of Amazon.com was worth us$ 176
billion. “a brand for a company is like a reputation for a person. You earn reputation by
trying to do hard things. With more than 55% repeat buyers, the numbers tell everything
about the brand. It is among 13 world’s most valuable brand” (Forbes list).
Competitive analysis in the marketing strategy of Amazon –short listing the competitors
of Amazon depends on what business sector of Amazon is being considered. Apple would be
the largest competitor when considering book or content related delivery such as books,
movies, magazines, and audiobooks. The iTunes store will always be a threat to the Amazon
store because of apples devices like the iPad, iPhone, and MacBook. When considering web
services google would emerge as the largest competitor.
Walmart is the biggest threat to Amazon in us as reports roll in of various attempts to
compete with the large online retailer. Reports of Walmart testing a locker system for
consumers where shoppers can order and pay online and pickup at their convenience are
surfacing. Walmart is also still testing same-day delivery in four cities and remains the fourth
largest online retailer. Walmart rakes in about $9 billion in internet sales, which Amazon
more than doubles in a quarter. However, Amazon does not have the physical structure base
that Walmart has to start with.
In developing countries as well as in developed, there are many local portals which give
tough competition to Amazon. For example – Snapdeal, Flipkart are some of the competitors
of Amazon. Similarly, groupon, first cry are specialized e-commerce portals which take away
traffic from Amazon. Thus, these local competitors of each country also react strongly to
Amazon’s presence. Market analysis in the marketing strategy of Amazon- the global e-
commerce market is still in the evolving phase. With the adaptation of technology in the
developing economies customers are now becoming more comfortable with online shopping.
Fierce competition from biggies like Alibaba, eBay, start-ups & local ecommerce players like
Flipkart, Snapdeal is more of resulting into overall growth of the industry which is good for
the industry.
Customer analysis in the marketing strategy of Amazon- Amazon customers consist of
upper- & middle-class social groups who have inclination towards using e-commerce portals
and are comfortable with online shopping. Majority of the customers are professionals or
businessmen who are busy with their business/job & find it convenient to purchase anything
online rather than visiting the physical outlet in order to save time & money. Furthermore, the
customers might also be the ones who are searching for deals. Due to this, the portal is known
to have specific days where they give massive discounts to their buyers.
MARKETING MIX
Product in the marketing mix of Amazon – Amazon is an international ecommerce
company, using connections to the internet from various gadgets such as phones and tablets,
to allow its customers to browse and purchase products immediately. These products are then
delivered to the customer, using delivery service companies. Amazon has built up a huge
product base, and sells almost everything, including: kindle, books, DVDs, mobile
phones/tablets, gaming consoles and games, clothes for men/women and children, jewellery,
gardening equipment. Amazon initially started only with books and it is till date known as the
highest book seller in the world. This is why, Amazon also introduced kindle. Kindly is an
eBook reader from Amazon and it is the reason that the publishing market is having such a
big revolution of converting hard paper to digital eBooks because ease of reading by kindle.
Due to success of kindle, Amazon also introduced kindly fire – its own tablet pc. Type in a
search entry into a search engine for a specific product, and the chances are that Amazon will
stock what you need, and will be on the search list. As they continue to grow, more and more
products are added to their inventory. Once established into books, Amazon quickly
expanded to other products to maintain its presence in the market. Where eBay is known for
techie products, Amazon is known for knowledgeable products. Amazon continues to expand
its product base, and in July 2014 it entered the smart phone market, releasing its very own
fire phone. The phone followed the release a month earlier of Amazon’s very own set top box
system – Amazon fire tv – which allows streaming from various channels, as well as
supporting speech commands when searching.
Place in the marketing mix of Amazon – In the recent past, sites such as India plaza and
also cool stuff were forced to close due to the lack of trust when buying goods online.
However, the brand image of Amazon enables it to have a far and wide presence and the
bottom line of the company is enough to enable massive r&d efforts to secure the website.
Amazon has customer service bases in many of the countries where it has an online presence,
with most bases being located in the different states of the USA. Amazon employees are
friendly and relaxed.
Promotion in the marketing mix of Amazon – While Amazon has broadcast television
commercials, these are mostly in the American market. Amazon uses mainly web based
advertising, and they make some use of billboard and smaller methods of advertising.
Amazon also uses advertising networks online so that whenever you check something on
Amazon, you will see an ad for the same thing somewhere else on some other website.
Search engine marketing and getting the company’s name high up the search engine’s results
is also a smart promotional strategy by Amazon. The founder of Amazon had this in mind
when creating the company, deciding that it should start with an ‘a’.
In India, Amazon can be seen to rely on the best source of promotion there is – word of
mouth. People telling others about the site, or mentioning it in a positive way is a sure way to
have a new future customer. However, there are several print media ads to make their
presence felt to the people. However, much more is needed in the promotions department
from Amazon in India because the traffic of Amazon is being taken over fast by Flipkart.
Price in the marketing mix of Amazon – Amazon is competitive with its prices, and has little
ways of staying ahead of its market contemporaries. For example, if you are looking to buy a book,
Amazon offers you a new copy, or a used copy as well, complete with pricing and condition. Another
initiative is to pay to have a premium account, ensuring faster deliveries. Amazon can also keep their
prices competitive due to their use of staff. Minimum numbers – but well trained – ensure that
consumers benefit from the lack of overheads, and the result is shown in the prices online.

As more and more people can access broadband connections in India and get online, the
competition for the likes of Amazon.com will toughen. Amazon’s quiet entry into India has
seen some growth so far due to its brand image, and it will be looking to keep its prices as
low as possible to capture a slice of the growing market place. It faces tough competition
from the likes of eBay, Flipkart and Snapdeal.
 SWOT ANALYSIS

FLIPKART
Strengths:
1. India’s largest e-commerce retailer: Flipkart is the India’s largest e-commerce
company & had sold gmv (gross merchandising value) of $1 billion till now.
2. Experienced founders: the founders of Flipkart, Sachin & Binny Bansal are ex-
Amazon employees. Having prior experience in the e-commerce industry helped
the founders to work strategically and differentiate their business in a highly
competitive market.
3. Acquisition: with its series of acquisitions like letsbuy.co, chakpak.com,
weread.com, mine360 & the recent one Myntra in 2014 has helped the company
to expand in the e- commerce space & used the capabilities and existing resources
of acquired companies.
4. High brand recall: Flipkart has established itself as a renowned e-commerce
company in India through tv ads, online branding and through its presence on
social media. Brand activities like the “big billion day” have really increased the
brand recall of the company.
5. Own payment gateway & logistic arm: having its own logistics arm e-kart &
payment gateway pay zippy has helped the company to control its expenses.
Thereby passing the benefits to the end customers.
6. Exclusive & broad range of products: from having exclusive rights to launch
some products like moto g moto x, xiaomi mi3 as well as personal designers’
segments in garments category, has helped the company to differentiate and
localize its offerings.
Weaknesses:
1. Limited distribution channel reach: although its logistics arm has kept cost’s low,
the reach has been affected which is a weakness for Flipkart. Due to use of
outsourcing, global giants like Amazon & eBay can deliver the product anywhere in
the country. However, Flipkart is still struggling in this field.
2. Cost of acquisition: due to stiff competition in the market & low customer retention,
the cost of acquisition is high because Flipkart acquires a lot of customers through
online advertising. As per Flipkart data, the company spends Rs 400/- on acquiring a
new customer on an average.
3. Power in the hand of buyers: since this industry is flooded with many players,
buyers have a lot of options to choose. Switching costs are also less for customers
since they can easily switch a service from one online retail company to another.
Same products will be displayed in several online retail websites. Product
differentiation is almost absent and the fight then begins on the basis of price only.

Opportunities:
1. Expansion of business: by targeting other emerging markets company can increase
their revenues as well as it can have economies of scale.
2. Expanding their product categories: this will increase their customer base & at the
same time will reduce the cost of acquisition and customer switch.
3. Changing mentality of Indian customers: with increasing numbers of customers
getting comfortable with online shopping & increase in numbers of internet users in
India, there is huge potential in this industry.
4. Supply chain: by optimizing their supply chain they can compete with the other
players & can manage the loosing sales on account of not making the product
available due to delivery constraints.
5. Establishing in other developing economies: like Amazon, Flipkart can slowly start
expanding out of India and establish operations in other countries as well which will
help improve revenues.

Threats:
1. Competition: stiff competition from the global players like Amazon, eBay as well as
local player like Snapdeal, Tolexo and Shopclues who are continuously trying to eat
each other’s market share.
2. Government regulations on the issues related to fdi in multi branding retail has been
a big hurdle in the success of the e-commerce industry in India.

AMAZON
Strengths:
1. Strong background and deep pockets – built on its early successes with books,
Amazon now has product categories that include electronics, toys, games, home and
kitchen, white goods, brown goods and much more. Amazon has evolved as a global
e- commerce giant in the last 2 decades.
 2. Customer centric: company’s robust crm has created customer centric processes in
order to carefully record data on customer’s buying behavior. This enables them to
offer individual items, related items or bundle them as an offer, based upon
preferences demonstrated through purchases or items visited. Also, the company
claims that 55% of their customers are repeat buyers resulting in low cost of
acquisition of new buyers.
3. Cost leadership: in order to differentiate itself, company has created several strategic
alliances with other companies to offer superior customer service. The most important
strategic tie ups are with logistics provides who control costs. Because of playing on
economies of scale, Amazon is able to lower the inventory replenishment time.
4. Efficient delivery network: with its strategic partners & due to its Amazon
fulfilment centers, Amazon has created a deep & structured network in order to make
the product available even at remote locations. It also has free of cost delivery charges
in certain geographies.
5. Global strategy: by using the strategy of “go global & act local”, Amazon is able to
fight with domestic e-commerce companies through absorbing & by forming /
partnering with supply chain companies. The branding too is done as per local taste.
For example- in India, Amazon is currently using the “aur dikhao” campaign to
encourage users to browse more of their products.
6. Acquisitions: acquiring companies like zappos.com, junglee.com, imbd.com,
woot.com etc. Has proven to be a successful and revenue generating step for the e
commerce giant.

Weakness:
1. Shrinking margins: due to extensive delivery network & price wars Amazons
margins are shrinking, which is resulting in even losses. In India, Amazon had a loss
of $359 crs in the year 2013-14.
2. Tax avoidance issue: Amazon has attracted negative publicity on account of tax
avoidance in countries like US & UK Most of its revenue is generated from these
well-established markets.
3. High debt: in many developing nations Amazon is still struggling to make the
business profitable thereby affecting the overall profitability of the group resulting
into high debt.
4. Product flops – Amazon launched the fire phone in the us which was a big flop. At
the same time, kindle fire did not pick up as strongly as kindle did. Thus, there were
several product flops which caused a dent in Amazon’s deep pockets.

Opportunities:
1. Backward integration: Amazon can come up with its in-house brands in different
product categories. They can also differentiate their offering. This will help them
make profits in highly competitive e-commerce market.
2. Global expansion: expansion mainly in Asian & developing economies will help
Amazon because those are the markets with low competition in e-commerce
industries & are not saturated like developed economies.
 3. Acquisitions: by acquiring e-commerce companies it can decrease the competition
level & also can use the specialized capacity of the other company.
4. Opening physical stores outside US: by doing this Amazon can help the customers
to engage with the brand, resulting in increase in repeat purchases & increase in loyal
customer base.

Threats:
1. Low entry barriers of the industry: low entry barriers affect the current player’s
business as more & more company means tough competition, price wars, shrinking
margins & losses resulting into questioning the sustainability of the players.
2. Government regulations: not having clarity on the issues related to FDI in multi
brand retail, has been a big hurdle in the success of the e-commerce players in many
developing nations.
3. Local competition – India has Snapdeal and Flipkart who are local e commerce
retailers and are taking away majority of the market. Similarly, there are many local
players who take bites from the market share thereby making it hard for a big player
like Amazon to make profits.
 PEST ANALYSIS

FLIPKART

 Political

According to Chaudhary (2016), GOI (The Government of India) is currently trying to

boost the economy of the rural areas by promoting online businesses in these regions.
GOI's plan may see new regulations in the e-commerce industry, which will influence
Flipkart's operations. However, given that India elects leaders every five years,
considerable uncertainty on Flipkart's interaction with the GOI exists because, as Bazzi &
Clemens (2013) note, some leaders may be unfriendly to investors, which will negatively
impact the company's operations. Furthermore, in 2012, the GOI opened up the retail
sector to the entry of multi-brand MNCs (Patibandla, 2014) to promote FDI (Financial-
Direct-Investment), among other logistics that could improve India's e-commerce supply
chain. However, allowing foreign retailers such as Amazon into the Indian markets has
resulted in intense competition for Flipkart. Finally, Mishra (2017) affirms that Flipkart
must abide by rules such as the new GST bill that limits Flipkart from getting pricing
benefits from sellers that are situated in countries with lower tax rates (Garg, 2014).
 Economic

Indians' rapidly growing economy assures investors such as Flipkart of continued

markets. Furthermore, the liberalisation of the Indian economy to allow international
investors in various industries including retail will contribute to economic growth.
Furthermore, the government requires that foreign companies in India should sell or use
specific percentage goods (for retailers) and resources (for manufacturers) respectively
that are locally sourced (Patibandla, 2014). Such a strategy is useful to ensure sustainable
economic growth. Furthermore, Kumar (2017) states that the number of online consumers
is rising daily and there are expectations that approximately hundred million people will
have gone digital by 2018; this will facilitate the growth of Flipkart.
 Socio-Cultural

According to Rath & Samal (2015), most of the Indian population is rural, which stands
at about sixty-nine percent and, while the urban population contributes to sixty percent of
the total GDP. Rath & Samal (2015) expect that within the next 15 years, the urban
population will contribute to almost seventy-five percent of the GDP. This trend
demonstrates the importance of the urban population to organisations. However, with the
current GOI interventions to develop rural areas, these rural populations will be important
to businesses such Flipkart in the future. Currently, Flipkart is struggling with its
logistics, which, understandably, are concentrated in the urban areas. Nonetheless, as the
importance of rural regions, which carry most of the India populations grow, Flipkart will
need to expand its logistics.

 Technological

According to Padhy & Sampath (2017), Flipkart has implemented data analytics systems
for efficient business performance. Information systems in the company integrate the
information about market opportunities and predict sales that the company is likely to
make. This strategy enables the company to take advantage of technological
advancements such as big data for competitive advantage. Furthermore, by 2019,
approximately eight hundred million people will be using smartphones, and a larger
percentage will be able to access e-payment platforms for an easier purchase of online
products (Kumar, 2017).

 Environmental

Despite the fact that Flipkart is an online retailer, its operations are subject to
environmental factors. Rising concerns by both governments and consumers about
sustainable business and low carbon emissions is a major issue (Marron & Toder, 2014).
Governments promote sustainable business practices through rules and regulations. Some
of the most popular rules pertain to carbon emissions and general environmental
regulations (Marron & Toder, 2014). In some cases, these rules introduce fines or taxes,
to organisations, which lower profitability margins for businesses.
 Legal

Chaudhary (2016) asserts that there are legal factors that affect operations of Flipkart. In
July 2015, Westland books accused Flipkart of selling "Scion of Ishvaku", yet Westlands
alone was given the rights to sell the book by Amazon. This conflict demonstrates the
need for Flipkart to be more aware of property rights such as licencing and trademarks.
Furthermore, the recent Zomato breach resulted in the theft of consumer data, which
raises concerns about the ability of online organisations to protect consumer data (Kumar,
2017). As online business continues to grow, governments and corporations alike develop
regulations. Some of these rules may complicate business practices or raise operation
costs, which can influence profitability margins.
AMAZON
 Political

Amazon's activities and development could be impacted by more or less aggressive

protectionist policies. The United States is not a symbol of trade openness, other
economic states follow suit and show their determination and claim their rank of great
economic countries. The meetings of Donald Trump (President of the USA) with Xi
Jinping (General Secretary of the Chinese Communist Party) and Vladimir Poutine
(President of the Russian Federation) as well as the concerns of NATO indicate that the
game of global alliances could change the balance through economic pressures and
influence the rights and duties of large international groups like Amazon. It is especially
true as substitutions to Amazon remain easily conceivable with finally few constraints (as
long as the hypermarkets and malls still exist). Sometimes politic community can
indirectly push towards e-commerce. For example, France has a specific government plan
named “plan très haut débit” in which the French government wants to accelerate the 4G
and optical fibre network deployment. This kind of political decision facilitates the access
to the Internet, so to all services based on the Internet (e-business included).
 Economical

Since the economic crisis of the beginning of the 1980-90s (stock market crash of
October 1987), the world population consumes less and is back to an almost systematic
search for the best deal. People want more comfort, always for the lowest price. The
competition game pulls prices down (appearance of the "low cost" concept), and
unsurprisingly, after the decrease of computers and Internet accesses prices emerged
systems of optimized supply chain sales such as Amazon (overpressure of intermediaries,
removal of physical stores in the city). This movement is still ongoing (e.g., the recent
democratization of smartphones and 4G packages) and is maintained by the
disappearance of the middle class. Jeff Bezos is in some ways an "Edward Leclerc"
(founder of the first French cooperative society and hypermarket chain) at worldwide
network level. So, we can think that Amazon has in front of it a very favourable economy
to continue to grow up.
 Social

As previously pointed out, the Internet brings in more and more users because:
 Subscriptions are becoming more affordable
 People (assisted by governments and competition between Internet Service
Providers) have a better network coverage
 The development of the goods and people movements at a global level means that
we need global networks to monitor them all the time and everywhere. All the
countries around the world are opening up to the world, making large, formerly
emerging countries new economic powers whose population is eager for new
technologies, information and new services (e.g., China, India).
 Our modern societies (and our governments) tend to restore gender equality. With
an ever-increasing life cost, couples see that both people have to work. Therefore,
both man and woman are less and less at home. This society evolution means that
household chores such as errands become a waste of time that one would rather
spend on leisure if possible. The e-commerce and the "drive-in solutions" are a
response to this time optimization need. Beyond the search for "low cost", e-
business has changed our societies and is now becoming unavoidable and
inseparable from our modern consumption patterns. The consumer changes his
habits according to the constraints he experiences in his environment, meaning
that the consumer interest in e-commerce is not foolproof. The consumer
behavior will evolve further in the coming years depending on the opportunities
(e.g., technological developments, new services) that will minimize the impact of
his daily constraints. One can also imagine that if the concept of a universal
salary were to come into being (tests are ongoing in Finland) and became global
to the world, the constraints currently applied to the consumer would be turned
upside-down and that he could then get some time again to hang out in physical
stores and would turn away from e-commerce.

 Technology

“All modern societies are characterized by a shortage of time: the more modern a society
is, the less time it has. It is not the oil that we will miss one day, but rather the time” says
the German sociologist and philosopher Hartmut Rosa. The more we innovate to do the
things quicker (the more we save time), the less we have time per task (so the less we
enjoy life, so the less we live). According to Harmut ROSA, “acceleration is not the fault
of the technique. One can imagine a world where, thanks to technical progress, it would
be possible to release a surplus of time if the rate of growth were not so strong. Technical
progress broadens our horizon and our possibilities. It changes the perception of
opportunities and obstacles and also changes social expectations, both what we expect
from others than what they expect from us. Technology allows the acceleration of the life
beat, but does not impose it. It gives us the means to dispose of it freely”. But it has yet to
be implemented. Hundreds of innovations grew in the recent decades and even more will
in the upcoming years. Innovations fuel innovation and today the devices to browse the
Internet are diverse: computers, tablets, hybrid computers, mobile phones, watches, etc.
Channels are also more plentiful: ADSL, CPL, optical fibre, 3G, 4G, etc. Overall, all
these tools are more efficient and more effective. As a result, more data can be processed
and potentially more users can be attracted. In addition, artificial intelligence (e.g., Alexa)
and “AWS machine learning services” (making predictions more reliable) make it easier
and more commonplace to buy.
 Environmental

This technical innovation acceleration, accompanied by an ever more targeted marketing

favoring social competition, boosts the purchases. There is a real frenzy pushing to renew
faster and faster our favorite products. Product lifetimes are shorter (sometimes
voluntarily; see recent (in 2017) legal proceedings against Apple and Epson) and the
products are often no longer "economically repairable" (the repair cost is often higher
than the OEM production cost). This unbridled consumption draws on the resources of
our planet and weakens its balance. It generates, despite the efforts of the politicians, a lot
of pollution during the manufacture, the distribution and the waste treatment. This
pollution is at the origin of global warming that we know today and causes more and
more natural disasters. CSR initiatives are becoming more and more frequent because,
fortunately, more and more people and companies feel concerned and responsible for the
future of our children. Even if all countries (e.g., the USA during the G7) do not deploy
the same energy, globally, governments vote laws encouraging companies to reduce their
ecological impact. These measures have a high cost and non-compliance with these laws
potentially has a high power of nuisance on the corporate image of the offending
company. American and international groups like Amazon have every interest in
accelerating and anticipating their ecological expectations because their image is global
and then we can only be convinced that US laws are bound to strengthen on the subject
someday. The consumer also wants to participate in this mission. For example, brands of
plastic garments such as Patagonia are growing, despite higher prices than the
competition. Emails also sport more and more the "Please consider the environment
before printing" mention at their bottom. It is perhaps also for this reason that the
consumer is moving more and more towards digital solutions such as e-commerce,
considering that it is probably more environmentally friendly to use a carrier that will
deliver several products to several people rather than having everyone to take his own
vehicle to buy his object at the nearest mall.
 Legal

Laws evolve to try to preserve our planet in the long term but they are also evolve to deal
with globalization. Since the 19th century with the corporate tax ceiling put in place by
the state of New Jersey (USA), the major international groups are looking for the best
organization of their "holding" allowing the best possible tax optimization (this is called
aggressive optimization). Noting the millions (and sometimes the billions) of taxes that
elude governments, they adapt regularly through lawsuits and new laws of tax laws more
binding for companies. At a minimum, international groups must provision in the event
that they are the subject of legal proceedings. They cannot ignore that social protection
(even if it is not perfect) has made much progress (as for example in the USA) this last
century. Even without mentioning universal arrangements (in terms of wages and social
protection) as early as 2019, we can assume that states will have to be very imaginative to
finance its social strategy in the upcoming decades. The companies’ tax rates could then
be revised upwards with a decrease of the net income after tax.
 CHAPTER III
ANALYSIS & INTERPRETATION OF
DATA
Q1: Have you ever done online shopping?

OPTIONS RESPONDENTS %AGE

Yes 41 82%

No 9 18%

Total 50 100%

% AGE

18%

82%

YES NO

INTERPRETATION:
82% of peoples shows interest in online shopping, on the other hand, 18% of peoples does
not want to shop online.

Q2: How often do you shop online?

OPTIONS RESPONDENTS %AGE

Once in month 32 64%

Once In two months 5 10%

More frequently 3 6%

More often 10 20%

Total 50 100%
 % AGE

20%

6%

10% 64%

Once in month Once in two months

More frequently More often

INTERPRETATION:
64% of peoples shop online once in month, 10% of peoples once in two months, 6% of
peoples more frequently, and 20% of peoples shop online more often.

Q3: Which online site do you prefer most?

OPTIONS RESPONDENTS %AGE

Flipkart 29 58%
Amazon 6 12%
Snapdeal 5 10%
Paytm mall 7 14%
Others 3 6%
Total 50 100%
 % AGE

6%

14%

10%
58%

12%

Flipkart Amazon Snapdeal Paytm mall Others

INTERPRETATION:
58% of peoples prefer Flipkart online site while making shopping online, 12% people uses
Amazon, 10% of Snapdeal, 14% of peoples uses Paytm mall, and 6% of peoples using Others
websites.

Q4: How do you make payments when shopping online?

OPTIONS RESPONDENTS %AGE

Debit card 29 58%
Cash on delivery 10 20%
Credit card 5 10%
Third party (Paytm wallet, 6 12%
paypal etc.)
Total 50 100%
 % AGE

12%

10%

58%
20%

Debit card Cash on Delivery Credit card Third party

INTERPRETATION:
58% of peoples make payment through debit card, 20% of peoples choose the cash on
delivery, 10% of peoples using credit card services, 12% of peoples uses other payment
methods.

Q5: Which online service is more satisfied in terms of products, customer care and
delivery?

OPTIONS RESPONDENTS %AGE

Flipkart 20 40%

Amazon 25 50%

Snapdeal 3 6%

Others 2 4%

Total 50 100%
 % AGE

4%
6%

40%

50%

Flipkart Amazon Snapdeal Others

INTERPRETATION:
40% of peoples is more satisfied in terms of products, customer care & delivery services from
Flipkart, 50% of peoples with Amazon, 6% of peoples with Snapdeal, and 4% of peoples
with Others.

Q6: How do you choose online shopping site?

OPTIONS RESPONDENTS %AGE

Referred by friends 24 48%

Advertisements 15 30%

Online interviews 11 22%

Total 50 100%
 % AGE

22%

48%

30%

Referred by friends Advertisements Online interviews

INTERPRETATION:
48% of peoples choose online shopping site from referred by friends, 30% of peoples from
advertisements, 22% of peoples from online interviews.

Q7: Have you encountered any problems with online shopping site? If yes, by which one

OPTIONS RESPONDENTS %AGE

Flipkart 23 46%

Amazon 20 40%

Snapdeal 5 10%

Others 2 4%
Total 50 100%
 % AGE

4%
10%

46%

40%

Flipkart Amazon Snapdeal Others

INTERPRETATION:
46% of peoples have problems with flipkart, and 40% of peoples with amazon, 10% of
peoples with Snapdeal, and 4% with online shopping sites.

Q8: In terms of pricing, with which online shopping site you are satisfied?

OPTIONS RESPONDENTS %AGE

Flipkart 16 32%
Amazon 19 38%
Snapdeal 7 14%
Paytm 5 10%
Others 3 6%
Total 50 100%
 % AGE

6%
10%
32%

14%

38%

Flipkart Amazon Snapdeal Paytm Others

INTERPRETATION:
32% of peoples are satisfied with the pricing strategies of Flipkart, 38% of peoples with
Amazon, 14% with Snapdeal, 10% with Paytm, 6% of peoples are satisfied with pricing of
others.

Q9: Which online shopping site will you suggest to your family and friends?

OPTIONS RESPONDENTS %AGE

Flipkart 20 40%
Amazon 16 32%

Snapdeal 9 18%

Paytm 2 4%

Others 3 6%

Total 50 100%
 % AGE

6%
4%

18% 40%

32%

Flipkart Amazon Snapdeal Paytm Others

INTERPRETATION:
40% of peoples suggests Flipkart to their family and friends, 32% of peoples suggest
Amazon, 18% of peoples Snapdeal, 4% of peoples Paytm, and 6% of peoples suggest others.

Q10: On which occasions do you want to make purchase?

OPTIONS RESPONDENTS %AGE

Festivals 21 42%

Gifts 12 24%

Offers 8 16%

Weddings 5 10%

Others 4 8%

Total 50 100%
 % AGE

8%

10%

42%
16%

24%

Festivals Gifts Offers Weddings Others

INTERPRETATION:
42% of peoples wants to make purchase on festivals, 24% of peoples purchase for receiving
gifts, 16% of peoples for offers, 10% on weddings, 8% of peoples on others.
 CHAPTER IV
FINDINGS, SUGGESTIONS,
CONCLUSION
 FINDINGS

 Female respondents are showing more interest to do online shopping than male
respondents.
 Customers are preferring quality product from e-commerce sites, even it is bit
expensive.
 Flipkart is trying very hard to reach the top position but Amazon India is giving very
tough competition.
 Amazon is leading in every aspect of survey such as price, preferred and also
suggesting to friends.
 Paytm have to take care of its products and customer service because of its cheap
product quality and less variety of products making it loose customers.
 Undoubtedly Flipkart and Amazon made their impact on customers very strongly and
captured loyal customers. And they are ready suggesting their online shopping site to
rest of their friends.
 Both Flipkart and Amazon India advertisings were very innovative and attractive.
Both companies are expending so much money on advertising and promotions.
 Every age group people are interested in offers, if they are in need or not, they want to
purchase.
 SUGGESTIONS

Flipkart is performing ok but not good enough. There are so many cases where people felt
that packing might have been better than this. Either it may be big or small / expensive or not
product has to be treated with care. Some of the products mostly apparels are turning out with
original cover of supplier, which shows negligence of them. In this issue Amazon made a
mark among us, because whatever the product is their packing will obviously safe and secure.
 CONCLUSION

The study consisted with all the work flows of major e-commerce players in India, Flipkart
and Amazon. How they are performing and how they are running perfectly in the competitive
world has been explained. The innovative thinking of them to reach more and more
consumers is appreciable. They increased their network as much as possible with ultimate
aim of reaching more and more customers. They made consumers work easier and more
comfortable. In this competitive market one has to be lead and rest will follow. Based upon
consumer’s survey we got our clear winner and it is Amazon. Even though it is an
international company it understood Indians very well and made its roots stronger in India.
Flipkart is also giving very tough competition to Amazon even though it is new company
when compared to Amazon. Maybe it takes some time to overcome, but definitely they are
doing very well in Indian e-commerce market.
 BIBLIOGRAPHY

Websites:

www.google.com
www.scribd.com
www.slideshare.com
www.academiaedu.com
www.flipkart.in
www.amazonindia.com

Books:
Marketing management
Author: Phillip Kotler
Marketing management
Author: C.B Gupta
Publication: Sultan Chand & Sons - Tb

Magazines and Journals:

Newspapers and publishers
Company info. guides
Academics journals
ANNEXURE
 QUESTIONNAIRE

Personal Details:
Name
Mobile No
E-mail Id
Age

Ques 1. Have you ever done online shopping?

a) Yes
b) No

Ques 2. How often do you shop online?

a) Once in month
b) Once in two months
c) More frequently
d) More often

Ques 3. Which online site will you prefer most?

a) Flipkart
b) Amazon
c) Snapdeal
d) Paytm mall
e) Others

Ques 4. How do you make payments when shopping online?

a) Debit Card
b) Credit Card
c) Cash on Delivery
d) Third Party (Paytm wallet, Paypal etc.)
Ques 5. Which online service is more satisfied in terms of products, customer care and
delivery services?
a) Flipkart
b) Amazon
c) Snapdeal
d) Others
Ques 6. How do you choose online shopping site?
a) Referred by friends
b) Advertisements
c) Online reviews

Ques 7. Have you encountered any problems with online shopping site? If yes, by which one
a) Flipkart
b) Amazon
c) Snapdeal
d) Others
Ques 8. In terms of pricing, with which online shopping site you are satisfied?
a) Flipkart
b) Amazon
c) Snapdeal
d) Paytm
e) Others
Ques 9. Which online shopping site will you suggest to your family and friends?
a) Flipkart
b) Amazon
c) Snapdeal
d) Paytm
e) Others

Ques 10. On which occasions do you make purchase?

a) Festivals
b) Gifts
c) Offers
d) Weddings
e) Others