Flipkart Case Study
History
With an initial investment of ₹2 lakh each and a monthly allowance of ₹10000 for 18 months, the duo, Sunny Bansal and Binny Bansal, launched an e-commerce website of retailing books in September 2007. Today, that e-commerce website, Flipkart, is valued at around ₹2000 crore.
Being India’s largest online retailer flipkart recently crossed 1 billion (approx ₹5920 crore) mark in sales in March this year and aims to be the first $100 billion internet company from India.
BBD-Introduction
Flipkart organized its biggest online sale on 6th October 2014, promising discounts up to 90%. Yes, we are talking about the Big Billion Day!
It was billed as the mother of all discounts which was organized to capture consumer’s imagination and wallets …show more content…
Was it just another marketing gimmick? Did the demand meet the supply? Such questions have made purchasers sceptical about Flipkart’s offerings on BBD!
Starting with revenues, in a matter of 10 hours Flipkart generated a whopping 600crores! The mass consumer hysteria created by Flipkart helped it to generate close to a billion hits in a matter of 10 hours which raised the eyebrows of players from within and outside the retail industry. It was a suicidal attempt by Flipkart to stretch the boundaries of online sales in just a single day. The result: Almost 2 million items were sold at an astounding rate of 60 goods per second which lead to the crashing of servers.
There was a lot of buzz created among the consumers regarding the pricing strategy during the sale. The downside of this daring experiment by Flipkart was that the overall customer experience was negative. The company paid little attention to the ground rules of brand marketing and suffered a major customer backlash, loss of goodwill and negative press running into uncountable …show more content…
The letter was beautifully designed with the intention to target the emotions of the customers by empathizing the issues the buyers faced during the sale. Few critics found this daring step a wise one. However, few complained that the letter failed to give a proper justification to various questions of the buyers which in return questioned the company’s integrity. What Flipkart failed to understand while adhering to this issue via an apology is that:
• Whether an apology email will make the buyers shop again at Flipkart, especially since it’s something that has likely been mail merged.
• Whether all the recipients received the email and if they would have read the whole letter.
Although this sounds ironic, something like a discount coupon which could have been redeemed later in the future would have pacified the
With an initial investment of ₹2 lakh each and a monthly allowance of ₹10000 for 18 months, the duo, Sunny Bansal and Binny Bansal, launched an e-commerce website of retailing books in September 2007. Today, that e-commerce website, Flipkart, is valued at around ₹2000 crore.
Being India’s largest online retailer flipkart recently crossed 1 billion (approx ₹5920 crore) mark in sales in March this year and aims to be the first $100 billion internet company from India.
BBD-Introduction
Flipkart organized its biggest online sale on 6th October 2014, promising discounts up to 90%. Yes, we are talking about the Big Billion Day!
It was billed as the mother of all discounts which was organized to capture consumer’s imagination and wallets …show more content…
Was it just another marketing gimmick? Did the demand meet the supply? Such questions have made purchasers sceptical about Flipkart’s offerings on BBD!
Starting with revenues, in a matter of 10 hours Flipkart generated a whopping 600crores! The mass consumer hysteria created by Flipkart helped it to generate close to a billion hits in a matter of 10 hours which raised the eyebrows of players from within and outside the retail industry. It was a suicidal attempt by Flipkart to stretch the boundaries of online sales in just a single day. The result: Almost 2 million items were sold at an astounding rate of 60 goods per second which lead to the crashing of servers.
There was a lot of buzz created among the consumers regarding the pricing strategy during the sale. The downside of this daring experiment by Flipkart was that the overall customer experience was negative. The company paid little attention to the ground rules of brand marketing and suffered a major customer backlash, loss of goodwill and negative press running into uncountable …show more content…
The letter was beautifully designed with the intention to target the emotions of the customers by empathizing the issues the buyers faced during the sale. Few critics found this daring step a wise one. However, few complained that the letter failed to give a proper justification to various questions of the buyers which in return questioned the company’s integrity. What Flipkart failed to understand while adhering to this issue via an apology is that:
• Whether an apology email will make the buyers shop again at Flipkart, especially since it’s something that has likely been mail merged.
• Whether all the recipients received the email and if they would have read the whole letter.
Although this sounds ironic, something like a discount coupon which could have been redeemed later in the future would have pacified the