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Marketing management refers to the process of accessing and improvising the current marketing strategies that a company uses in order to achieve higher success through their efforts. This report is about an electronic commerce company named as 'Flipkart', headquarters in Bangluru, India. It sales number of products online which includes consumer electronic, books, lifestyle, baby care and many more. This assignment talks about the background of e-commerce and market positioning as well as USP used by Flipkart (Baker,2016). Further it includes description of market audit conducted using SWOT & PESTLE analytical tool. Apart from this it explains about marketing mix of company and methods to improve it.
Marketing refers to the set of activities that are used for communicating the information as well as importance of a commodity in order to influence customers to purchase product or services. Marketing management is defined as the process of analysing, planning, applying and controlling the program designed for approaching the target market and for achieving the desired outcome. Flipkart is an online retailer of India, which sell its product or services using its own website throughout the world.
E-commerce refers to the buying and selling of good or services online with the help of World Wide Web. E-commerce market is consider to be one of the most powerful and fastest growing sector of the world. With the emergence of information technology, E-commerce market has also gained popularity in India and this revolution has changed the whole scenario of doing business in country. Now, Indian E-commerce market is now expected to grow up-to US$ 200 billion by 2026. Introduction of smartphones, 4G networks and increasing customer wealth are consider to be main reason behind the popularity of e-commerce market in India. With the e-commerce revolution, number of retail companies also started selling their product or services online to achieving higher revenue and sale (Fernandez, Le Roy and Gnyawali, 2014). Retail companies like Flipkart, Snapdeal, Amazon etc. are the greatest promoter of e-commerce business in India. According to present scenario, online retail sale in India is expected to increase by 31% in upcoming year.
Apart from this government of India also promoted the use of e-commerce by providing various opportunities to businessmen by initiating several schemes Digital India, Make in India, Start-up India and innovation fund. In these schemes government provider loans to small business so that they can expand their business over an e-commerce platform. The timely implementation of these programs support the growth and existence of E-commerce in India.
Flipkart Pvt. Ltd is one of the largest Indian E-commerce company, headquartered in Bengaluru. It was founded by Sachin Bansal and Binny Bansal in year 2007 when they use to sell books online. It was the most riskier decision taken by them to sell product online as that time e-commerce was not much exists. After gaining popularity company expanded its business in other product categories such as mobile phones, music, movies, etc. With the momentum gained by e-commerce in India, Flipkart started offering different range of products and now it offers more than 80 million products categories which includes computer and accessories, laptops, books, lifestyle products, home appliances, electronic goods, baby care, toys, jewellery and many more (E-commerce Industry in India, 2018).
Flipkart positioned itself as a customer friendly and trust worthy e-commerce brand by launching its 'cash on delivery' services. This option help in developing confidence as well as trust among online buyer. As they hesitate to pay online or disclose their financial information on web page. Cash on delivery option influence target market up to a large extent for purchasing products online. Further company also put more effort toward improving the supply chain system for delivering product or services on timely manner. These positioning helped Flipkart in maximizing their customer share in market and now company has more than 100 million registers customers.
Apart from this company's unique selling preposition also support company to achieve such heights in e-commerce industry. Flipkart targeted customer support services as their USP, where more than 2500 staff work 24/7 for offering better services to their customers (Flipkart – Company Profile, 2016). It also manage its own supply chain which includes warehouses and distribution centres across 13 cities of India. Other USP of Flipkart are quality and original product, genuine Feedback & rating etc. These all unique selling preposition assists Flipkart in achieving popularity and building trust among target customers.
Market audit of Flipkart
Market audit refers to the process of thoroughly reviewing the firm's marketing approach, activities and aims to determine the potentiality and viability of current market strategies. It includes evaluation of business environment both internally as well as externally which further help company in identifying the area of improvement. These finding help in formulating the plan which support in enhancing the performance of the company. This analyses can be better performing using two analytical tools such as SWOT or PESTEL which help in accessing the current market condition and strategies to be formulate for further growth of the company.
SWOT analysis of Flipkart:-
Swot is a analytical and strategical tool which help in accessing the business environment to formulate growth strategies and eliminates various threats that may affect the functioning of business. It is abbreviated as Strength, Weakness, Threat and Opportunities. This analysis will help Flipkart in identifying the actions to be taken for improving their weaknesses and eliminating threats that may affect its operations (SWOT analysis of Flipkart, 2018). Further it also support in grabbing the opportunities that are present in market which take it new heights. Following table describes about the SWOT of Flipkart:
· Greatest strength of Flipkart is that it offer more than 80 million product categories which ranging from lifestyle product to electronics and kitchen appliances.
· It invest more over improving the supply chain system to ensure timely delivery of product or services through its own e-kart platform. Flipkart has more than 4100 couriers in the world.
· Company has tie ups with various big brands like Apple, Xiaomi and Motorola which help them in getting regular supply of product (Guesalaga, 2016).
· Company has logistic support from ekart which ensures delivery of product on time.
· Due to huge competition present in market, lead company to invest more promotional activities for acquiring the attention of customers toward its products.
· Distribution channels of Flipkart is limited as compare to other competitors such as Amazon, eBay.
· It offers discount over their products during billion sales day which is too high for the company that they hardly make revenue as expected.
· Less knowledge about internet as well as negative perception about online selling in small cities leads to decrease in sale of product or services.
· Flipkart can expand its product ranges by adding other categories for example furniture.
· Improving the online payment system by adding more authentication process help in building up more trust in the mind of customers. This help in increasing the number of customers as well as volume of sale (Hakansson, 2015).
· Expand its global accessibilities also help company in growing faster in terms of number of customers as well as revenue generation.
· Promotion using social media sites leads company to approach youth that help in maximizing the market share of Flipkart.
· Increasing competition from international players such as Amazon, eBay etc. is consider to be the main threat for Flipkart. As these players are trying to grab each others market share.
· Switching cost is very low due to number of options available in front of customer. As same product is available and displayed by several other online retailers which may be at cheaper rate.
· Government regulation is also affecting the operations of Flipkart. As according to new GST bill the cost of selling goods online is increased in India. This may decrease the number of transaction which further can affects the revenue of company.
It is an analytical tool which is used by companies to identify various factors present in external environment which have an direct impact over the operations of firm. By using this analysis company can formulate strategies which help them in dealing with threats that are present in external environment and may hinder the functions of company. This tool consists of six macro environmental factors such as political, legal, social, technological, legal and environmental (Iacobucci, 2014). By using this analysis tool Flipkart can identify various threats that are present in external environment and need to be consider while performing business activities. Further it also help in identifying various opportunities present in external environment which support Flipkart in expanding their business and in achieving higher growth. Following points shows the Pestle analysis of Flipkart:
Apart from this Flipkart is also take a step toward improving the work life of their employees by contributing toward day care expenses for their parents, maternity leaves also revisited. In addition to this, average age of employees working in Flipkart is 29 years which provide better solution as well as trending practices that help in delivering better services.
Further with the growth of e-commerce industry it also increase various types of government law and regulations implemented over companies like Flipkart which affected the operations of company. It includes new changes in GST tax of India leads to increase in the rate of selling online products. This leads to decrease in the revenue of the company.
From this above market analysis it can be determine that there are various threats present in environment which may affect the operation as well as profitability of the company. This includes, changing government regulation & taxation policies, increasing number of competitors, lower switching rate of customers etc. But apart from this there are number of opportunities which are present in environment that help company to achieve higher growth (McColl-Kennedy and et. al., 2015). It includes increasing living standard & income level of population, governmental support toward digitalization and increasing use of smartphones. These all factors provide numerous growth opportunities to Flipkart in Indian e-commerce market.
Marketing mix actions
Marketing mix refers to the set of strategic activities or actions taken by company that help in promoting the product or brand in the marketplace. These strategies help company in achieving the higher market share which in turn will increase the volume of sale. Further it also help company in managing their strategies with current market trends. Marketing mix consists of seven elements which are as follows:
From the above report it can be summarized that it is very essential for a company to manage it marketing activities which help them in achieving higher success. It also help in determining various factors that are required to be improve ion order to improve their current marketing strategy. In order to analyse the internal and external environment, SWOT as well as PESTLE consider to be the best analytical tool. These tools assess the various opportunities that help in further growth of a company.
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