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CHAPTER I:
INTRODUCTION
INTRODUCTION
India has an internet user base of about 354 million as of June 2015. Despite
being third largest user base in world, the penetration of e-commerce is low compared to
markets like the United States, United Kingdom or France but is growing much faster,
adding around 6 million new entrants every month. The industry consensus is that
growth is at an inflection point. In India, cash on delivery is the most preferred payment
method, accumulating 75% of the e-retail activities Demand for international consumer
products (including long-tail items) is growing much faster than in-country supply from
authorized distributors and e-commerce offerings.
On 6 October 2014 Flipkart launched a promotion called 'Big Billion Day' with
the intention to increase the popularity of their website by targeting a billion sales in 1
day. This, even though Flipkart achieved the target, led to public outcry and widespread
criticism among consumers, competitors and partners, heavily damaging its reputation.
Many users could not place orders because of high server load and errors which led to
frustration among customers. Many users who placed orders received emails stating that
their orders were cancelled. Most of the products were sold for less than cost price, and
Flipkart was accused of killing competition. Major competitors filed complaints against
Flipkart to the commerce ministry, claiming that selling products lesser than cost prices
is against the commerce policy of the country. The Ministry said that they would
formulate new trade rules for electronic retail after this incident.
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.
India's e-commerce market was worth about $3.8 billion in 2009, it went up to
$12.6 billion in 2013. In 2013, the e-retail segment was worth US$2.3 billion. About
70% of India's e-commerce market is travel related. According to Google India, there
were 35 million online shoppers in India in 2014 Q1 and is expected to cross 100 million
mark by end of year 2016. CAGR vis-à-vis a global growth rate of 8–10%. Electronics
and Apparel are the biggest categories in terms of sales.
The latest risers among the e-commerce sectors are E-Grocery & E-Dining, with
players like Bigbasket (2011), Grofers (2013), Zopnow (2011) etc. already securing
multiple rounds of investment and expanding their coverage to many other cities other
than their point of origin, E-Grocery is set to grow rapidly whether they follow the hyper
local model or inventory based model. Bigbasket reached a valuation of US $ 1 Billion
in their latest round of funding in August 2015. In case of E-dining, Zomato has already
gone international and is strengthening its core proposition of facilitating and enhancing
consumers' dining experience to newer levels.
STUDY OBJECTIVES
SCOPE OF STUDY
The study is conducted in Angamaly. The study attempts to analyze e-commence market
in India with special reference to flipkart.
SAMPLING METHOD
It can be defined as the process of selection of individuals from total population for the
purpose of studying the research problem.
The collected data are analyzed using tables, graphs and pie charts.
CHAPTERISATION
1. Introduction.
2. Review of literature (theoretical framework).
3. Analysis and interpretation.
4. Findings, suggestions and conclusion.
LIMITATIONS OF STUDY
The shortage of time and money will limit the number of samples into minimum.
The consumers of the services provided by flipkart are spread all over world, but
this study is conducted only among the consumers of Angamaly.
Lack of availability of data.
The time available for study is less.
REFERENCE
www.wikipedia.com
www.google.com
CHAPTER II:
REVIEW OF
LITERATURE
Sohn and Ahn (1999) showed that consumers’ knowledge affects their
adoption of e-commerce. Liang and Huang (1998) Found that customer’s experience an
important factor in online purchasing. Kim and Kwon (1999) contended that a consumer
whose lifestyle is more progressive and assertive in leisure activities use the internet
more frequently and searches information through the internet more often. Limayem,
Khalifa (2003) added personal innovativeness as another personal characteristic in order
to online shopping. Yang and Cho (1999) examined the impact of consumers need for
cognition, and search objectives on consumer information search through the internet.
Investing in consumer satisfaction from the online experience and creating brand or site
loyalty are critically important for companies that want to have a long run presence on
the Web. There are two approaches taken to induce loyalty into consumers in an online
context. One approach is to focus on concrete factors. For example, creating a
convenient and well-designed online store and offering secure transactions are the
keystones of satisfying e-consumers (Szymanski and Hise, 2000). However, all satisfied
consumers do not become loyal. Personalization attempts and increasing the social value
of online experiences are very important to make consumers build strong brand
relationships in the cyber world. Although Nunes and Kambil (2001) argue the opposite,
some studies find that personalized Web sites and customer communities are highly
influential on the consumer brand relationship especially for experienced Internet
consumers (Thorbjornsen, 2002). Besides, businesses that can create trust and increase
the perceived value of online shopping can turn their satisfied consumers into loyal ones
in the e-marketing environment, too (Anderson and Srinivasan,(2003). The online
environment accommodates so many opportunities for creating loyalty that even offline
offerings can be effectively facilitated with supporting after sale services provided
through the Web (van Riel et al., 2004).
The strategies that marketers are using have not adequately addressed the
changing demands of the consumer to ensure customer satisfaction (Day & Landon,
1977). The marketing function limits the scope of marketing strategies in operating
successfully online. New electronic communication marketing variables have exploded
the alternatives available to customers globally. These changes have redefined many of
the old views of marketing, trade and power. Furthermore, many researchers recognize
De Paul Institute of Science And Technology Page 7
Consumer preferences on online marketing with reference to flipkart
values, culture, preferences and fashions of the consumers? The major challenges are
technology component, internet infrastructure and payment related issues. The answer to
the challenges posed by the Indian market essentially lies in cyber retail networks
(networks of retail outlets on the net) connected through the very small aperture
terminals (VSATs). The three big advantages of e-commerce-vast choice, economy in
transactions and a wealth of information tend to set the mind of consumer to move into
electronic market and so the excitement of e-commerce will be building up away from
the metros moving towards rural India.
CHAPTER III:
INDUSTRY PROFILE
HISTORY OF E-COMMERCE
One of the most popular activities on the Web is shopping. It has much allure in it
one can shop at your leisure anytime. Literally anyone can have their pages built to
display their specific goods and services.
History of ecommerce dates back to the invention of the very old notion of "sell and
buy", electricity, cables, computers, modems, and the Internet. Ecommerce became
possible in 1991 when the Internet was opened to commercial use. Since that date
thousands of businesses have taken up residence at web sites.
Although the Internet began to advance in popularity among the general public in
1994, it took approximately four years to develop the security protocols (for example,
HTTP) and DSL which allowed rapid access and a persistent connection to the Internet.
In 2000 a great number of business companies in the United States and Western Europe
represented their services in the World Wide Web. At this time the meaning of the word
ecommerce was changed. People began to define the term ecommerce as the process of
purchasing of available goods and services over the Internet using secure connections
and electronic payment services. Although the dot-com collapse in 2000 led to
unfortunate results and many of ecommerce companies disappeared, the "brick and
mortar" retailers recognized the advantages of electronic commerce and began to add
such capabilities to their web sites (e.g., after the online grocery store Webvan came to
ruin, two supermarket chains, Albertsons and Safeway, began to use ecommerce to
enable their customers to buy groceries online). By the end of 2001, the largest form of
ecommerce, Business-to-Business (B2B) model, had around $700 billion in transactions.
Ecommerce has a great deal of advantages over "brick and mortar" stores and mail
order catalogs. Consumers can easily search through a large database of products and
De Paul Institute of Science And Technology Page 11
Consumer preferences on online marketing with reference to flipkart
services. They can see actual prices, build an order over several days and email it as a
"wish list" hoping that someone will pay for their selected goods. Customers can
compare prices with a click of the mouse and buy the selected product at best prices.
Online vendors, in their turn, also get distinct advantages. The web and its
search engines provide a way to be found by customers without expensive advertising
campaign. Even small online shops can reach global markets. Web technology also
allows to track customer preferences and to deliver individually-tailored marketing.
COMPONENTS OF E-COMMERCE
In 2013, 55% of people purchased from mobile devices rather than from PCs and
laptops, so ensuring that your ecommerce website is mobile friendly is a must. Mobile’s
increasing market share means that online shop should have a mobile first strategy to
ensure getting conversions no matter what device.
The biggest conversion killer for online store is potentially checkout process. One could
easily be losing up to 67% of customers if checkout is poorly planned or designed.
Striking a balance between good functionality, usability and building trust are key to
offering a good checkout experience.
Product photography could be the single most important aspect of ecommerce site. This
is what helps user get ‘buy in’ and is often the first experience of product.
The first part of a good returns policy is to try to prevent the return. People return their
products when they’re disappointed so write clear and accurate product descriptions.
Clear and accurate descriptions about products are important to help buyers make the
decision to purchase. Descriptions act like store’s sales staff so it needs to be informative
and the right tone for target. Include an FAQ’s section too to help alleviate any doubts
about products.
Get clear about shop categories and how online store is structured. Poorly structured sites
don’t perform well and struggle to convert. The goal is to make it easy for customers to
find what they’re looking for.
India has joined the bandwagon and the numbers themselves do all the talking.
The latest statistics reveal that India has been reported to have 70 million active Internet
users, the count rising exponentially by the minute. However, markets involve intricate
interactions involving a variety of business/organizational factors, general economic and
social trends. And the actual scope of growth in e-commerce can’t be evaluated without
taking into consideration the aforementioned factors. For such doubts to be remedied,
one may take notice of the recent industry reports. One such report, shared by
ASSOCHAM, estimated the online retail industry to touch Rs 7,000 crore by 2015
(rising from the current Rs 2000 crore), with an annual growth rate of 35 per cent.
Adding on to this, IAMI has facilitated data to indicate a zoom in India’s e-commerce
sector, with transactions rising 50 per cent annually. Online retailing or e-tailing, which
accounts for about 6 per cent of Rs 46,000 crore industry, has taken the forefront of this
rapid growth.
Such strong current indications to massive changes, occurring across the entire
business spectrum, have already wiped out doubts about the scope of e-commerce in
India. The expense of the tremendous ambit for the growth of Internet marketing in India
being clear now, it can conveniently be stated that marketing through the Internet can be
an extremely potent ball game.
The basic explanation to such a boom lies in the fact that e-tail has surfaced as a
boon to both the sellers and the consumers. It has garnered significant attention from
consumers due to the convenience of shopping. The need to physically visit stores has, in
some cases, been eliminated. Instead, you can just sit at home and order, easily browse
through a host of products, conveniently compare prices and avail the best deal. It’s all
about saving on precious time, energy, money and get what you desire. On the flip side,
it has succeeded in pleasing the sellers by providing a faster buying/selling procedure,
resulting in saving a lot of time. Now, products can be made available for purchase and
sold around the clock. This also provides a wider reach, defying all theoretical
geographic limitations in reaching out to customers. Sellers have shown remarkable
enthusiasm for this system as their need to continuously augment and keep abreast of
customer expectations and desires is aptly catered to.
Not long ago, when the concept was newly induced in the Indian markets
(first put to practice by companies like Dell), the average Indian was sceptical. While the
west comfortably transacted and shopped through Amazon.com and e-bay, the Indian
markets still went after the touch-and-feel of physical products, opulent showrooms,
salespersons with good etiquette and liquid transactions. But over the time, with a
number of payment gateways coming into the picture and making e-transactions
effortless and trouble-free and curbing security threats, people have grown comfortable
with e-shopping. This to the extent that today, four out of five Internet users shop or do
their pre-shopping research online, thus recording 13.5 million customers of consumer
products and outnumbering 8.5 million customers of travel products. Customers today
are hooked to online shopping and are not even fighting shy of deal sizes that cross Rs
20,000-Rs 25,000 while earlier, they hardly went up till Rs 2,000.
Industry figures suggest that the soaring numbers in the e-commerce space
are driven by the young blood and these are expected to grow tenfold, being pushed by
the Generation. The most sought after categories for these buyers currently are: mobile &
accessories, computer hardware & consumer electronics and travel products like train
and air tickets.
CHAPTERS IV:
COMPANY PROFILE
1. History
Flipkart (Company) was founded in 2007 by Sachin Bansal and Binny Bansal, both
alumni of the Indian Institute of Technology Delhi. They worked for Amazon, and left to
create their new company incorporated in October 2007 as Flipkart Online Services Pvt.
Ltd. The first product they sold was the book Leaving Microsoft to Change The World to
a customer from Hyderabad. Flipkart now employs more than 33,000 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. After failure of its 2014 Big Billion
Sale, Flipkart recently completed the second edition of Big Billion Sale held between
October 13 and 17. Where it is reported that they saw a business turnover of 300 million
in gross merchandise volume.
Flipkart is going big on kids. India's largest ecommerce company has marked children as
a "high focus" category in the fashion segment for the coming year and has announced
the launch of 'Flipkart Li'l Stars'— a store dedicated to children on its platform.
Sales volumes of children's clothing and accessories grew more than three times in the
past year, contributing more than 10 per cent to Flipkart's overall fashion business.
They're expected to increase five-fold in the year ahead.
VISION
MISSION
Name Title
Flipkart Online Services Pvt. Ltd. owns and operates an online shopping Website in
India. It provides books, movies, music, games, consoles, gaming accessories, mobiles,
mobile accessories, cameras, camera accessories, computers, computer accessories,
network components, software, peripherals, home and kitchen appliances, TV and video
products, and personal and health care products.
Snapdeal: Snapdeal is an online marketplace, New Delhi, India. The company was
started by Kunal Bahl, a Wharton graduate as part of the dual degree M&T Engineering
and Business program at Penn, and Rohit Bansal, an alumnus of IIT Delhi in February
2010.
EBay: EBay Inc. (stylized as "e-bay" since late 2012) is an American multinational
corporation and e-commerce company, providing consumer-to-consumer and business-
De Paul Institute of Science And Technology Page 18
Consumer preferences on online marketing with reference to flipkart
to-consumer sales services via the internet. It is headquartered in San Jose, California. E-
bay was founded by Pierre Omidyar in 1995, and became a notable success story of the
dot-com bubble. Today it is a multibillion-dollar business with operations localized in
over 30 countries.
E-commerce giant Flipkart has said that it has sold 150 million products till date this
calendar year, registering a whopping 150% growth over last year. Fashion, lifestyle,
home and consumer electronics were among top selling categories, while Bangalore,
New Delhi, Chennai, Pune, Coimbatore and Ahmadabad were top cities in terms of
traffic.
The eight-year-old e-commerce player offers about 30 million products across 70
categories, including books, media, consumer electronics and lifestyle to its 45 million
registered users. Besides catering to buyers, with 10 million visits (hits) daily, the
company also provides an e-platform for sellers to reach a wider customer base. With
30,000 sellers, the customers have access to a wide range of products across categories
and geographies.
6. Milestones
CHAPTER V:
DATA ANALYSIS
The purpose of every research study is to draw conclusion. Hence after the data
has been collected it must be processed and analysed to draw conclusions. The editing,
coding and tabulating is must when the interviewer has a huge amount of data
concerning the research project at hand. The process of evaluating data using analytical
and logical reasoning to examine each component of the data provided. This form of
analysis is just one of many steps that must be completed when conducting a research
experiment. Data from various sources is gathered, reviewed and analysed to form some
sort of findings and conclusions. It is through systematic analysis that the underlying
features of the data are revealed and valid generalisation is arrived at.
Table 5.1
Male 35 70
Female 15 30
Total 50 100
Figure 5.1
Gender
Male Female
Interpretation:
In this survey 70% of the respondents are male and the balance 30% are female which
indicates that men prefer online marketing than women.
Table 5.2
Child 4 8
Youngster 27 54
30-60 16 32
Above 60 3 6
Total 50 100
Figure 5.2
Column1
6 8
32
54
Interpretation:
This analysis showcases the participation of people in the online marketing which
include 54% youngsters, 32% of middle age and only 8% and 6% of children and senior
citizen respectively. This indicates that youngsters are more active in online shopping
than any other category of age group
De Paul Institute of Science And Technology Page 24
Consumer preferences on online marketing with reference to flipkart
Table 5.3
Figure 5.3
Chart Title
0 5 10 15 20 25 30 35 40 45 50
no yes
Interpretation:
This table shows that out of 50 people only 86% prefer online marketing while 14% does
not.
Table 5.4
Once in a week 6 14
Once in a month 25 58
Once in a 6 months 6 14
Once in a year 6 14
Total 43 100
Figure 5.4
Chart Title
30
25
20
15
10
0
frequency of online
shopping
Interpretation:
This analyses that 58% of the respondents shop once in a month and the others prefer
shopping once in a week, once in 6 months and once in a year in the same ratio of 14%.
Table 5.5
Figure 5.5
reasons
Interpretation:
According to this analysis 42% of the respondents shop online for the verity of options
available to them, 30% according to their convenience, 14%for discount available and
remaining 14% for other reasons.
Table 5.6
Figure 5.6
Interpretation:
This chart shows that 42% prefer flipkart, 30% prefer Amazon and only 16% and 12%
prefer e-bay and snapdeal respectively. This shows that participants prefer flipkart and
Amazon sites for online shopping than others
Table 5.7
Figure 5.7
Column1
Interpretation:
This analysis shows that 30%came to know about flipkart through internet, word-of-
mouth and print media contributed equal awareness but only 14% contributed television.
Table5.8
Figure5.8
products
apparels
electronics
Interpretation:
According to this data, electronics (42%) and apparels (26%) are mostly purchased from
online websites compared to books (16%) and fancy items (16%).
Table 5.9
Figure 5.9
factors
Interpretation:
According to this data, factors such as safe delivery (44%), cash on delivery (28%)
attracts more customers than factors such as user friendly websites (12%) and EMI
facilities (16%) does.
Table 5.10
Figure 5.10
Column1
Interpretation:
This chart shows that 40% of the respondents spent around rs500- rs2000, 30% spends
rs2000- rs5000, 19% spends less than rs500 and only 11% spends above 5000.
Table 5.11
Figure 5.11
Column1
Interpretation:
This survey shows that 44%shop occasionally, 28% during discount season, 19% during
festive season and only 9% shop regularly from online sites.
Table 5.12
Figure 5.12
Column1
Interpretation:
In this survey 47% respondents feel their experience in flipkart is equal to that of other
online sites, 28% feels its better and 23% considers it as poor.
Table 5.13
Table showing whether respondent would buy if flipkart offers a new product.
Figure 5.13
Figure showing whether respondent would buy if flipkart offers a new product.
Chart Title
30
25
20
15
10
Interpretation:
According to this data, if flipkart introduces a new product 58% of the respondents
would buy it depending upon the product, 16% wouldn’t agree to buy it and only 12%
would buy the product offered.
Table 5.14
Figure 5.14
Figure showing how respondents would rate their after sale services.
Column1
Interpretation:
This survey proves that 44% rated after sale services as good,30% rated it average, 14%
rated it poor but only 12% of respondents feel it as excellent.
Table 5.15
Figure 5.15
Payment methods
Interpretation:
According to this survey respondents prefer to pay cash on delivery (65%), through debit
card 16%, credit card 14% and via internet banking 5%.
Table 5.16
Table showing whether a respondent would prefer to buy a product if cash on delivery
was not available.
Figure 5.16
Figure showing whether a respondent would prefer to buy a product if cash on delivery
was not available.
Column1
yes no
Interpretation:
It is very clear that majority of the respondents would not buy the product if an option for
cash on delivery was not available.
Table 5.17
Figure 5.17
DIFFICULTIES
Interpretation:
This survey shows that 42% of the respondents faced difficulty in online shopping due
to late delivery, 28% due to lack of flexibility, 14% by wrong delivery and the rest 16%
due to damaged products.
Table 5.18
Figure 5.18
OVERALL EXPERIENCE
Interpretation:
58% of the respondents rated overall flipkart experience as good, 33% felt the experience
average, 14% had an excellent experience and balance 5% rated their experience poor.
CHAPTER VI:
FINDINGS, SUGGESTIONS
AND CONCLUSION
FINDINGS
1. Men prefer online marketing than women.
2. Mostly youngsters are more active shopping online than middle aged persons,
children are senior citizens.
3. Most people prefer online marketing than any other form of marketing.
4. Majority of the people shop online once in every month.
5. Internet plays a vital role in providing awareness about online marketing.
6. Electronic gadgets are the most widely purchased product online.
7. Safe delivery of products has attracted a majority of people to purchase product via
online.
8. Majority of the online customers prefer cash on delivery.
9. Online customers feel the shopping experience of flipkart is good compared to other
shopping sites.
10. The after sale services provided on flipkart sites have been proved good.
SUGGESTIONS
CONCLUSION
The study “consumer preference in online marketing with
reference to flipkart”, is satisfactory. This analysis helps the researcher to
understand the consumer preferences on online marketing with main reference to
flipkart and other competitors on the same field. The question of trust is more
important in internet shopping than in offline trade. This is because the
cultivation of trust is particularly important when uncertainty and risk are
inherent and contracts and warranties are often absent. This makes shopping on
the internet inherently risky from the view point of security, because of the
importance of trust in inherent shopping; initial trust in internet vendors is a
major factor influencing the growth of e-commerce.
The overall brand value of flipkart is good, but it is facing some
tough competitions from its global competitors like e-bay an Amazon. But if
talking about domestic market i.e. India; it is the most superior E- Business portal
which is aggressively expanding an planting its roots deep into the Indian market
amd at the same time shifting the mindset of the people i.e from going and
shopping from physical store to online stores, which is magnificent.
BIBLIOGRAPHY
Books:
Richard gay,Charlesworth & Rita Esen (2012)., Online Marketing And
Customer- Led Approach,
S. Jaisival (2012).Electronic Communication for business, :Galgotia
publications
Whitely (2014). E-Business: Tata McGraw hill Publication Co. Ltd.
Efrain Turban, David king (2012), Electronic commerce: Pearson
Publications.
Schneiders, Gary P(2012). E-Commerce Strategy, Technology And
Implementation. : Cengage Learning Publications.
Websites:
www.wikipedia.com
www.flipkart.com
www.Slideshare.com
www.yourstory.com
www.successstory.com
APPENDIX
QUESTINNAIRE ON