MINOR PROJECT SUBMITTED TOWARDS THE

PARTIAL FULFILLMENT OF
DEGREE OF BACHELOR’S IN BUSINESS
ADMINISTRATION

Project- “Comparative analysis of amazon vs Flipkart”

Submitted to- Ms. Priyanka Srivastava
Submitted by- Janith Nikhanj
Enrolment No.-A30106421055
Batch-2021-2024
Section-B
Declaration

I Janith Nikhanj, a student of BBA hereby declare that the presented report titled ‘Comparative
analysis of amazon vs Flipkart is uniquely prepared by me, and is submitted to the department of
AMITY GLOBAL BUSINESS SCHOOL, AMITY UNIVERSITY, NOIDA, UTTAR
PRADESH.

It is likewise to give affirmation that this report is solely prepared for scholarly necessity only
and not for any other purpose nor it will be submitted elsewhere.

JANITH NIKHANJ

A30106421055

Batch: 2021-2024

Program: BBA

AMITY GLOBAL BUSINESS SCHOOL

Acknowledgment

I convey my true appreciation to my faculty guide Prof. Priyanka Srivastava Ma'am, for her
guidance, directions, and her supervision, and cooperation throughout my project, without which
I wouldn't be able to complete my project successfully and effectively in the given time frame.
For the successful completion of my project, I want to dedicate my gratitude to her. At last, I
appreciatively acknowledge the consolation, patience, and support of my family and friends, who
have been there constantly as a source of strength always giving me constant support and
encouragement to achieve my goals in life.

THANK YOU
 Table of content
S. No. Topics Page No.

1. Introduction 5-6

2. E-commerce in India 7

3. Product and service alliances 8-11

4. Marketing 12

5. Data Collection 13

6. Marketing management 14-16

7. Marketing strategy 17-25

8. SWOT Analysis 26-29

9. Data Analysis and Interpretation 30-39

10. Conclusion 40

11. References 41
 1. Introduction

1.1 OBJECTIVES

 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
customers in India.
 To know how consumers are evaluating e-commerce sites for their purchases.
 To understand the workflow of Amazon and Flipkart which are leading in India.
 To study complexities and barriers that are there between e-commerce sites and
customers. To find out new opportunities and to succeed in those procedures.

1.2 PROBLEM DEFINITION

E-commerce is viewed as a giant in India, offering enormous promise and success. Both
large and small firms are prevalent in the market. Are they truly going to be in the market
for a very long time? How successful are they? What do customers anticipate from them,
and are they prepared to meet those needs? The goal of the study is to comprehend the
needs and practices of both parties.

1.3 RESEARCH APPROACH

1.3.1 EXPLORATORY RESEARCH

An exploratory study was carried out to address an issue that is not yet well-defined.
The optimum research design, data-gathering technique, and subject choice are all determined by
exploratory research. 
Only after exercising utmost caution should it make firm conclusions. 
Exploratory research frequently uses secondary research techniques, such as reviewing the literat
ure and/or data that is already available, or qualitative methods, such as informally speaking with 
customers, staff, management, or rival companies, as well as more formal techniques like focus g
roups, in-depth interviews, and projective techniques.
1.3.2 DESCRIPTIVE RESEARCH

The objective of descriptive research is to describe the characteristics of various aspects, such as
the market potential for a product/company or the demographics and attitudes of consumers who
buy the product with the help of primary data collected.

1.4 DATA COLLECTION

The goal for all data collection is to capture quality evidence that then translates to rich
data analysis and allows the building of a convincing and credible answer to questions
that have been posted.

1.4.1 PRIMARY DATA - Primary data was collected from various people and
their opinion and information for the specific purposes of the study helped
to run the analysis. In essence, the questions asked were tailored to elicit
the data that will help the study. The data was collected through a
questionnaire to understand their experience and preference towards their
loyal company.

1.4.2 SECONDARY DATA - To make primary data collection more specific,

secondary data will help to make it more useful. It helps to improve the
understanding of the problem. Secondary data was collected from various
sources such as different business websites and published papers.

1.5 LIMITATIONS

 There was so much confidential data of companies that are not exposed.
 The survey was restricted to a particular age group because respondents willing to
fill are college students.
 Analysis was done based on personal opinions of respondents individually, not
from any focus groups or experts.
 2. E-COMMERCE IN INDIA

In India, there were approximately 354 million internet users as of June 2015, and 500 million
users are anticipated in 2016. E-commerce penetration is low compared to markets like the
United States (266 million, 84%) or France (54 m, 81%), despite having the second-largest user
base in the world, only behind china (650 million, 48% of the population), but is growing at an
unprecedented rate, adding about 6 million new entrants every month. According to industry
agreement, growth is about to turn. 75% of all e-retail transactions in India are made using the
most popular payment option, cash on delivery. Demand for foreign consumer goods (including
long-tail products) is increasing far more quickly than local supply from reputable distributors
and online stores. The largest e-commerce companies in India are Flipkart, Snapdeal, Amazon
India, and Paytm.

Market size

The value of the Indian e-commerce market increased from $3.9 billion in 2009 to $12.6 billion
in 2013. The value of the e-retail market in 2013 was $2.3 billion. The travel sector makes up
over 70% of India's online retail business. Google India reports that there were 35 million online
shoppers in India in the first quarter of 2014, and the number is predicted to reach 100 million by
the end of 2016. The largest sales categories are clothes and electronics. India is predicted to
produce $100 billion in online retail sales by 2020, of which $35 billion would come from the e-
commerce of fashion. In the upcoming years, online garment sales are expected to increase
fourfold.

Key drivers in Indian e-commerce are:

 A large percentage of the population subscribed to broadband internet, burgeoning 4g

internet users, and a recent introduction of 5g across the country.
 The explosive growth of smartphone users is soon to be the world's second-largest
smartphone user base.
 Rising standards of living as a result of a fast decline in the poverty rate.
 Availability of a much wider product range (including long tail and direct imports)
compared to what is available at brick-and-mortar retailers.
 Competitive prices compared to brick-and-mortar retail driven by disintermediation and
reduced inventory and real estate costs.
 Increased usage of online classified sites, with more consumers buying and selling
second-hand goods.
3. PRODUCT OR SERVICE ALLIANCES

3.1 FLIPKART

Flipkart has established its own product range under the name "digiflip", Flipkart also
just released its range of personal healthcare and home appliances under the brand
"citron". In the beginning, Flipkart just sold books, but as it grew, it also began selling
electronic devices, air conditioners, air coolers, stationery supplies, lifestyle goods, and e-
books. Although Flipkart is registered in Singapore and has a large foreign shareholder
base, it is not legally an Indian corporation. Because multi-brand e-retailing by foreign
corporations is prohibited in India, Flipkart sells goods there via ws retail. The Flipkart
platform also allows for the sale of goods by other independent vendors or businesses. At
this time, Flipkart employs over 15000 workers. Cash on delivery, credit or debit card
purchases, net banking, e-gift cards, and card swipe on delivery are just a few of the
payment methods accepted by Flipkart. One of the biggest online retailers in India right
now, Flipkart offers products in over 14 different categories, has a presence in about 150
cities, and sends out 5 million shipments every month.

3.1.1 ACHIEVEMENTS IN E-COMMERCE

With a combined net worth of $1.3 billion, Sachin and Binny Bansal debuted on the
Forbes India Rich List in September 2015. Sachin Bansal, a co-founder of Flipkart,
received the 2012–2013 Entrepreneur of the Year Award from Economic Times, a
prominent Indian business publication. Flipkart.com received the young Turk of the Year
award at the 2012 India Business Leader Awards(IBLA) on CNBC channel 18. For the
2011 Indiamart Leaders of Tomorrow Awards, Flipkart.com received a nomination.

3.1.2 FAILURE IN THE MUSIC INDUSTRY

The websites mime360.com and chakpak.com were purchased by Flipkart in October and
November of that year. The business then unveiled its brand-new flyte digital music store
in February 2012. Flyte, a legitimate music download site akin to Amazon.com and
iTunes, provided drm-free mp3 downloads. However, it was shut down on June 17, 2013,
because free music streaming websites had made paid song downloads unpopular in
India.
3.1.3 ACQUISITIONS

 2010: We read, a social book discovery tool.

 2011: mime360, a digital content platform company.
 2011: chakpak.com, a bollywood news site that offers updates, news, photos and
videos. Flipkart acquired the rights to Chakpak's digital catalog which includes
40,000 filmographies, 10,000 movies, and close to 50,000 ratings. Flipkart has
categorically said that it will not be involved with the original site and will not use
the brand name.
 2012: letsbuy.com, an Indian e-retailer in electronics. Flipkart has bought the
company for an estimated us$25 million. Letsbuy.com was closed down and all
traffic to letsbuy has been diverted to Flipkart.
 2014: acquired myntra.com in an estimated ₹ 20 billion (2,000 crores, about
us$319 million) deal.
 2015: Flipkart acquired a mobile marketing start-up app iterate to strengthen its
mobile platform.
3.2 AMAZON

The biggest internet-based business in the US is Amazon.com. Initially an online

book retailer, Amazon.com soon expanded its offerings to include DVDs, VHS
tapes, CDs, video and mp3 downloads/streaming, software, video games,
electronics, clothing, furniture, food, toys, and jewelry. The corporation is a
prominent supplier of cloud computing services and also develops consumer
products, including the kindle, fire tablets, fire TV, and phone. With sites for Sri
Lanka and South East Asian nations expected to follow, Amazon has distinct
retail websites for the United States, United Kingdom & Ireland, France, Canada,
Germany, the Netherlands, Italy, Spain, Australia, Brazil, Japan, China, India, and
Mexico. For some of its products, Amazon also provides international shipping to
a few more nations. It declared its plan to open websites in Poland and Sweden in
2011. In early June 2013, Amazon.com started its Amazon India marketplace
without any marketing initiatives. After its biggest Indian rival Flipkart's
announcement to invest $1 billion, Amazon said in July 2013 that it would invest
$2 billion (RS 12,000 crores) in India to grow its business.

3.2.1 ACHIEVEMENTS IN E-COMMERCE

Amazon had the fastest-growing pace of app downloads for mobile devices in
2015. In October alone, downloads surged 200 percent. According to Comscore
data, with 30 million visitors in October, Amazon's website saw the most traffic.
The number of active Amazon customers has increased by 223% since last year.
At e-tailing India's flagship conference and expo 2014, which brought together
significant players in the retail and e-commerce industries in the nation, the
awards were presented. Amazon.in received the "path-breaking debut of the year"
award.

3.2.2 FAILURE

When Amazon starts utilizing India Post, it messes up the country's delivery
system. Amazon has made the worst move imaginable at a time when rivalry
among Indian online shopping sites is at its highest level possible, with each firm
pooling in millions from investors and seeking to beat the other with never-before
deals and amazing services. Amazon India has picked India post as its principal
delivery partner and all "Amazon fulfilled" orders are now being dispatched
through India post. Everyone who resides in India or has had contact with the
country's postal service does not require an introduction to India Post.

3.2.3 ACQUISITIONS

It is no secret that e-commerce behemoth Amazon has been placing bets on India
as one of its upcoming key international markets. In addition to investing money
in the area, the corporation is also buying companies to strengthen its position
there. Amazon announced on Tuesday that it has purchased the Indian payments
company Emvantage Payments Pvt. Ltd. Amazon withheld information about the
purchase price. Emvantage enables online retailers to accept credit and debit
cards, just like Stripe or PayPal does. Also, the business permitted retailers to set
up mobile payments and pre-paid debit cards under their own brands. The
corporation bought numerous IT and e-commerce start-ups to set itself apart,
including pets.com, audible.com, junglee.com, imbd.com, zappos.com, woot, etc.
4. Marketing

Marketing describes the actions a business does to encourage the purchase or sale
of a good, service, or product.
It is one of the fundamental elements of business administration and trade.
Marketers can target either customers directly or other businesses (B2B
marketing) (B2C marketing). Several aspects are relevant regardless of the target
audience, including the attitude the marketers will use. They establish how
marketers will approach the marketing planning phase and are known as market
orientations. The marketing mix, which describes the specifics of the product and
how it will be sold, is affected by the environment surrounding the product, the
results of marketing research and market research, and the characteristics of the
product's target market. Marketers must then choose which strategies, such as the
use of coupons and other pricing inducements, will be utilised to promote the
product after these factors have been established. The commercial process of
discovering, predicting, and meeting consumers' needs and wants is known as
marketing, also referred to as "attracting customers," and it integrates knowledge
obtained through studying the management of trade relationships.

OBJECTIVES OF STUDY

1. To do comparison between Amazon and Flipkart.

2. To conduct a comparative analysis of Amazon and Flipkart.
3. To compare Amazon and Flipkart with its competitors in terms of sales.
Finally to conclude the findings and suggest the necessary corrective measures
and recommendations for improving the market position of Amazon and Flipkart.

RESEARCH METHODOLOGY
Research methodology refers to the particular steps or methods used to locate,
pick, process, and evaluate data on a subject. The methodology portion of a
research allows the reader to assess the overall validity and reliability of the study.
This topic is a major part of my research because it is significant to both the
organisation and me. I discovered merchant opinions about goods and services
during my research.
I, therefore, tried to determine the market share of Flipkart and Amazon, both of
which are significant. I looked up Amazon's and Flipkart's sales figures. Because
so many elements were controllable during the investigation, I do not assert that
my research is 100% accurate. I made an effort to do my study with the highest
level of accuracy possible. So, I firmly believe that my research is important in
every way. This research is beneficial to businesses, merchants, and customers.
5. DATA COLLECTION:
To achieve the objectives, the primary as well as secondary source of data is used.
The primary source includes the retailers and company officials through
questionnaires.

The secondary source of data includes the past records of the company. The data
were collected through the following methodical techniques in the present project
work.
1. Through questionnaires
2. Through an interview
3. Through observation

DATA SOURCES

 PRIMARY DATA: Primary data is a kind of information that is gathered

by researchers directly from primary sources using methods including
trials, surveys, and interviews. The best type of data for the study is
considered to be primary data, which is typically gathered from the
original source from which the data was first obtained.
In order to satisfy the objectives or requirements of specific research, the
sources of primary data are typically precisely chosen and modified. Prior
to selecting a data gathering source, factors including the research's goal
and its target audience must be determined. Given that it is unbiased, the
sampling technique used was random.

 SECONDARY DATA: Data gathered from earlier studies is the

foundation of research. Secondary research is built on tried-and-true data
that has already undergone analysis and filtration. The data may or may
not meet a researcher's requirements. As the information is already
available, secondary research takes little time. A researcher should be
aware of where to go for the most relevant data. Also, the reporter's
researcher did the same and gathered secondary data from a variety of
websites. The reporter's researcher also went to a number of libraries to
gather information for the introduction section.
 6. Marketing Management: Meaning, Definition, application

The marketing management team is directly responsible for identifying any areas where the
company's 20 products and services fall short of meeting consumer expectations and needs. They
must then launch aggressive marketing campaigns to deliver the desired satisfactions that
consumerism has explicitly demanded. For the greatest long-term advantages of the firm itself,
marketing management's nature and goals will have changed significantly to become much more
consumer-oriented and much less product- or corporate-oriented.

The process of marketing management entails the analysis, planning, execution, and control of
products, services, and concepts. The concept of exchange serves as the foundation for marketing
management.

The 4Ps:

The 4Ps of the marketing mix stand for product, price, place, and promotion

Product:

The product-related components of marketing are concerned with the details of the actual goods
or services and how they connect to the needs and desires of the end user. Product design, new
product innovation, branding, packaging, and labeling make up the product element. A product's
scope typically includes ancillary components like warranties, guarantees, and support. The
numerous ways of communicating a brand identity for the product, brand, or organisation are
referred to as branding, which is a crucial component of product management.

Pricing:

This refers to the method used to determine a product's price, including any reductions. The cost
need not be monetary; rather, it can simply be what is given up by the customer in exchange for
the good or service, such as their time, effort, or attention. The cost that a customer bears,
whether it is monetary or not, is the product's price. Pricing science focuses on techniques for
determining prices.
Place:

This refers to the distribution channels and middlemen, including wholesalers and retailers, who
make it possible for clients to access goods or services in a practical way. In addition to referring
to the channel through which a good or service is sold (for example, online vs. retail), which
geographic area or industry, to which segment (young adults, families, business people), etc., this
third P has also occasionally been referred to as Place or Placement. It also refers to how the
environment in which the good or service is sold can affect sales.

Promotion:

This covers all facets of marketing communications, such as public relations, personal selling,
product placement, branded entertainment, advertising, sales promotion, and promotional
education. It also covers event marketing, trade shows, and exhibits. The emphasis of the fourth
P is on communicating with customers in order to elicit a response. A tale is used in the message
to raise awareness or to convince.

The 4Cs

In response to environmental and technological changes in marketing, as well as criticisms

towards the 4Ps approach, the 4Cs have emerged as a modern marketing mix model.

Consumer:

The consumer refers to the person or group that will acquire the product. This aspect of the
model focuses on fulfilling the wants or needs of the consumer.

Cost:

Cost is what is given up in exchange for the goods. The monetary worth of the goods makes up
the majority of the cost. Cost also includes any additional expenses incurred by the consumer in
order to obtain the product, such as travel time or money.
Convenience:

Convenience is the same as "Place" in the 4Ps model and refers to the location of the product's
sale. Yet this doesn't just apply to actual businesses; it also applies to whether a product may be
purchased offline or online. The emphasis on convenience centers on making it as simple as
possible for the customer to obtain the goods, increasing their likelihood of doing so.

Communication:

Communication is the term used to describe how consumers learn about a product, much like
"Promotion" in the 4Ps model. In contrast to promotion, communication includes both the two-
way communication possible through social media and the one-way communication of
advertising.
7. MARKETING STRATEGY

7.1 FLIPKART

Flipkart's business model is much deeper and much more 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

The first step in creating a solid strategy around which the organizational structure
is developed ensures that all three processes are exceptionally well connected.
They, therefore, have a plan and a supporting framework to implement their plan.
Technology's role as an enabler is Flipkart's third crucial success reason. The
organization's main information systems drive visibility and end-to-end
integration across all of its supply chain processes (inbound, operations, and
outbound), creating a well-oiled, productive machine.

Flipkart should be considered a logistics firm rather than a retailer. Although it

sells goods to consumers and is therefore academically categorized as a business
to consumer (B2C) business, the company's key competency is its effective
logistics, which enables it to offer goods at competitive costs.
Its selling talents, however, do not give it a competitive advantage. In fact, that
part of the e-commerce industry is not sustainable because it is easily copied.
Flipkart's logistics and operations infrastructure, which has a very high barrier to
entry due to its significant capital investment and challenging to reproduce
strategy, structure, and culture mix, constitute its durable competitive advantage.

Cons: There's a chance that the original will supplant the copy.
It's vital to consider the fact that Flipkart's founders, the Bansals, effectively based
their company's operations on Amazon's business approach. So, it is reasonable to
conclude that Flipkart partially copied Amazon's business model. Governmental
oversight and trade constraints (read: retail FDI limits) have prevented Amazon
from yet being able to compete with Flipkart on an equal footing. Rather than
being a merchant, Amazon works as a marketplace. Flipkart's infrastructure,
culture, and technological enablers are all present at Amazon, albeit on a far
greater scale.
They also own enormous financial strength, which is far greater than Flipkart's.
Amazon would pose a serious challenge to Flipkart once the restrictions on FDI in
retail are eased. In addition, Flipkart has been acquiring businesses to beef up and
prepare for the competition it confronts.

7.1.1 MARKETING MIX OF FLIPKART

Product in the marketing mix of Flipkart-

Online store Flipkart started out by selling books. It only sold books online for
two years since handling and delivering them was so much easier. After its
growth, it added to the standard selection of electronics by starting to sell things
like air conditioners, washing machines, air coolers, lifestyle products, office
supplies, cellphones, computers, calculators, microwaves, water purifiers, laptops,
cameras, audio players, health care products, dishwashers, and e-books. The
brand's warranties apply to both purchases made outside of a showroom and those
made on Flipkart. A brand of personal products called "digiflip" has just been
released. This brand sells items such as headphones, pen drives, camera bags, and
computer accessories. In July, Flipkart debuted its own line of tablet PCs and
networking routers under the "digiflip" brand. On February 5, 2014, Flipkart
provided a venue for the launch of "moto-g" in a novel relationship with Motorola
Mobility.
Online shoppers went crazy when this smartphone was announced. In a short
amount of time, due to this incredible response, about 20,000 mobile phones were
sold. They continued their affiliation on March 19, when the Android smartphone
"moto x" was unveiled. When "moto e" was unveiled on May 13 in the same
place, the same response was elicited.
As part of a collaboration with Xiaomi Tech, the "Xiaomi mi3" was released on
Flipkart's platform, extending this success. On July 22, the first phase, which took
just 39 minutes to complete, sold every phone. On July 29, the second phase,
which took just 5 seconds to complete, sold every phone. The transaction was
completed on August 5th in approximately two seconds. This incredible response
and hypermania have been extremely beneficial to Flipkart.

Place in the marketing mix of Flipkart –

Flipkart is based in Bangalore, a beautiful city in Karnataka, and conducts all of

its business there. It is owned and registered in Singapore by a corporation there.
A foreign corporation is not permitted to conduct e-retailing in India in
accordance with its foreign policy. Flipkart therefore uses an Indian retailer to sell
the products in India. In addition, Flipkart offers its own platform to other
businesses who want to market their products. Very user-friendly and hassle-free,
the website. Browsing, keeping track of things, getting evaluations, ordering
goods and payment methods are quite handy for the individuals. Flipkart initially
ran on a consignment arrangement, whereby they physically purchased and
couriered the book. Subsequently, other warehouses were opened, where the
commodities were securely kept. Bangalore was the first city to open a
warehouse, followed by Delhi, Mumbai, Chennai, Hyderabad, Pune, Noida, and
Kolkata. More than 500 vendors are currently employed by Flipkart. At least 80%
of orders are processed and managed through warehouses. The actual middlemen
in this system are shipping and courier firms. The organisation has been
successful in making a name for itself in the Indian market because of its efficient
and well-organized service. Their distribution network spans 37 cities, making
delivery feasible in every nook and cranny.

Price in the marketing mix of Flipkart –

Flipkart began its business effort with a little INR 400,000 investment, but as a
result of daily growth in sales, it now has a net value of around INR 1 Billion. It
still generates 50% of its earnings from online book sales. Because of Flipkart,
electronic commerce has experienced tremendous growth. Since most of its
business is done online, its pricing policy is relatively lenient. The amount to be
charged is decided after taking into account a large number of costs, such as
transportation costs, supplier costs, packaging costs, courier fees, shipping costs,
office costs, maintenance costs, discount allowances, depreciation costs, taxes,
and advertising costs.
Periodically, discounts of up to 35% are permitted to increase sales and keep
prices competitive. Flipkart accepts payments using credit cards, cash after
delivery, debit cards, swiping cards at the time of delivery, e-gift cards, net
banking, and debit cards.

Promotions in the marketing mix of Flipkart –

In India, Flipkart has revolutionised the idea of online multi-brand product

retailing. Due to its enormous success, other businesses have found it to be an
inspiration. It primarily uses word-of-mouth promotion to operate. Their best
advocates have been happy consumers. Flipkart has used the services of 26
google ad-words and SEO specialists to gain a firm grasp on the internet market.
They have become well-known thanks to these marketing strategies. Getting
alerts about current promotions, order status, price cuts, recent debuts, and other
gift codes is made easier by downloading the Flipkart-exclusive app.
Flipkart has also enlisted the aid of innovative and captivating commercials to
build public knowledge of and confidence in their website. Their initial television
ad featured the idea that books might be delivered with only one click. Recently,
an advertisement with the slogan "no kidding no concerns" was released to
promote social visibility. To adequately carry out their duties, trained people are
hired. It is admirable how carefully thought out and how much work was put forth
to reach such heights.

7.2 AMAZON
7.2.1 SEGMENTATION

The marketplaces are segmented by e-commerce behemoths like Amazon using

demographic and psychographic data. Amazon's categorization is based on actual
purchase activity, not what customers may have indicated they might be interested
in. By focusing on each consumer individually, Amazon's micro-level
segmentation enables the corporation to turn visitors into loyal, high-value
customers. Creating personas for buyers who behave in a certain manner and
purchase particular goods is a common step in customer segmentation.
Similar to this, Amazon targets middle-class and upper-class consumers who are
familiar with basic technology but lack the time or prefer convenience over
purchasing at brick-and-mortar stores. Amazon has established itself as a
successful glocal (go global, act local) e-commerce behemoth where customers
can purchase anything and have it delivered to any area. They have furthered their
ability to carve out a distinct place in the minds of the consumer by using the
slogan #aurdikhao in their most recent campaign in India.

7.2.1 MARKETING STRATEGY

The corporation bought many technology and e-commerce start-ups, including

pets.com, audible.com, junglee.com, imbd.com, zappos.com, woot, etc., in an
effort to set itself apart. Which enabled them to offer their consumers excellent
value at a low cost by utilizing the already-existing technology of the acquired
partners. Through its wide range of products, which includes 27 different
electronics, toys and games, clothes, DIY, and more, Amazon has also acquired
economies of scale. By maintaining low prices, these services enable Amazon to
pass the savings on to customers. Amazon has a competitive advantage over their
rivals thanks to their solid customer-centric approach to the analysis of customer
purchase behavior based on preferences. At Amazon.com, repeat customers make
up more than 50% of all customers. Also, Amazon has been active in the internet
market for a very long time and is well-established in both the US and Europe.
The company's ability to grow into new markets is aided by this bottom line.
Brand equity in the marketing strategy of Amazon – In order to build a better
brand and have more brand equity, Amazon.com continuously boosted its
spending on advertising and promotion from being only an e-book provider to
becoming the second-largest e-commerce company in the world. The value of the
Amazon.com brand as of April 2015 was US$ 176 billion. "A company's brand is
comparable to a person's reputation. You get a reputation by attempting difficult
tasks. More than 55% of customers are return customers, thus the statistics speak
for themselves. It is one among the top 13 brands in the world (Forbes list).

Competitive analysis in the marketing strategy of Amazon – Depending on

which business area Amazon is being considered, a short list of its competitors
may be created. When it comes to the delivery of books or content like books,
movies, periodicals, and audiobooks, Apple would be the main rival. Because of
Apple products like the iPad, iPhone, and Macbook, the iTunes Store will always
pose a challenge to the Amazon Store. Google would be the biggest rival when it
comes to web services. As news of numerous attempts to compete with the major
online retailer pours in, Walmart is the largest threat to Amazon in the United
States. There are rumors that Walmart is experimenting a locker system where
customers may order online, pay, and pick up their purchases whenever it's
convenient for them. Walmart, the fourth-largest online retailer, is still
experimenting with same-day delivery in four cities. Amazon more than doubles
Walmart's online sales in a quarter, which total approximately $9 billion.
Amazon, on the other hand, does not have the same physical foundation as
Walmart. Both in industrialised and developing nations, there are numerous local
portals that compete fiercely with Amazon. Snapdeal and Flipkart are two
competitors of Amazon, for instance. Similar to Groupon, first cry is specialised
e-commerce sites that compete with Amazon for customers. As a result, each
country's regional rivals respond significantly to Amazon's arrival. The worldwide
e-commerce market is still in the development stage, according to market research
for Amazon's marketing plan. Customers are now more at ease with online
purchasing thanks to the adoption of technology in developing economies.
Competition from major firms like Alibaba, eBay, start-ups, and local e-
commerce players like Flipkart and Snapdeal is fierce, which is healthy for the
industry as a whole.
Customer analysis in the marketing strategy of Amazon- Upper and middle-
class socioeconomic groupings that prefer to use e-commerce sites and are at ease
with online buying make up the majority of Amazon clients. The majority of
consumers are seasoned businessmen who are preoccupied with their work and
find it more comfortable to shop online in order to save time and money than to
visit a physical store. Additionally, it's possible that customers are the ones
looking for discounts. As a result, the portal is well recognised for having certain
days when it offers its customers significant discounts.

7.2.3 MARKETING MIX

Product in the marketing mix of Amazon-

Amazon is a global online retailer that enables its consumers to browse and buy
things right away using connections to the internet from various devices including
phones and tablets. Then, through delivery service providers, these products are
sent to the customer. Amazon has amassed a vast product selection and offers
practically everything, including the Kindle, books, DVDs, smartphones, tablets,
gaming consoles, kids' clothing, jewelry, and gardening supplies. At first,
Amazon sold simply books, and it continues to be the largest bookseller
worldwide. Amazon also introduced the Kindle for this reason. Amazon also
introduced the Kindle for this reason. Due to the ease of reading on the Kindle
ebook reader, Kindly, an Amazon product is the driving force behind the
publishing industry's massive conversion of hard copies to digital ebooks.
Amazon launched Kindle Fire, its own tablet computer, in response to the success
of the Kindle. It's likely that Amazon will have what you need in stock and be
listed when you enter a search for a specific product in a search engine. More and
more products are being added to their inventory as they expand. Amazon
aggressively moved to other products after becoming established in the book
business in order to maintain its foothold there. Amazon is recognised for
knowledgeable products, but eBay is known for technological products. With the
release of its very own Fire phone in July 2014, Amazon entered the smartphone
industry as it continues to grow its product line. The phone came after Amazon's
set-top box, the Amazon Fire tv, which has speech recognition for searching and
allows streaming from a variety of channels, was released a month earlier.

Place in the marketing mix of Amazon-

Due to the lack of confidence while making purchases online, websites like
Indiaplaza and all school stuff were recently forced to close. However, Amazon's
reputation as a trusted brand makes it possible for it to have a global presence, and
the company's financial health allows for significant research and development
efforts to safeguard the website. In many of the nations where it operates online,
Amazon has customer care centers, the majority of which are in the various US
states. The Amazon workforce is laid back and welcoming.

Promotion in the marketing mix of Amazon-

Even though Amazon has broadcast television ads, they mostly target the
American market. Amazon uses billboards and other smaller forms of advertising,
but their primary form of advertising is online. Additionally, Amazon makes use
of online advertising networks, so if you search for something on Amazon, you
will see an advertisement for it elsewhere, on a different website. Another clever
marketing tactic used by Amazon is search engine optimization, which involves
pushing the company's name up the search engine results pages. When starting the
business, Amazon's founder decided that it should begin with an "a" with this in
mind. Amazon appears to rely on word-of-mouth advertising in India, which is
the best form of advertising there is. People recommending the website to others
or praising it favorably is a surefire technique to gain a new client. However, there
are several print media advertisements to get attention from the public. However,
as Flipkart is quickly stealing Amazon's traffic, Amazon India needs to do much
more in the way of promotions.

Price in the marketing mix of Amazon-

Amazon's prices are competitive, and it has few strategies for edging out its rivals
in the market. If you want to buy a book, for instance, Amazon provides you with
both new and used copies, replete with pricing and condition information.
Another strategy is to subscribe to a premium account, which guarantees quicker
deliveries. Amazon uses workers, which allows them to maintain competitive
prices. Online prices reflect the savings from the lack of overhead thanks to
minimum staffing levels that are also highly skilled. The competition for online
retailers like Amazon.com will become more intense as more individuals in India
have access to internet connections and can go online. Amazon will be seeking to
maintain its costs as low as possible to capture a portion of the expanding market.
Due to its brand image, Amazon's stealthy debut in India has seen some growth
thus far. Snapdeal, Flipkart, and eBay are just a few of the fierce competitors it
has to contend with.
8. SWOT ANALYSIS

8.1 FLIPKART

Strengths:

1. India’s largest e-commerce retailer: The largest e-commerce startup in India,

Flipkart, has so far sold goods worth $1 billion in gross merchandise value.
2. Experienced founders: Former Amazon workers Sachin and Binny Bansal are
the founders of Flipkart. The founders' prior e-commerce experience enabled
them to strategize effectively and set their company apart in a fiercely competitive
field.
3. Acquisition: With its string of acquisitions, including those of lets buy.co,
chakpak.com, weread.com, mine360, and most recently, myntra in 2014, the
company has been able to grow in the e-commerce sector and utilise the skills and
resources of acquired companies.
4. High brand recall: Through television advertisements, online branding, and its
presence on social media, Flipkart has become a well-known e-commerce
company in India. Brand activations like "Big Billion Day" have significantly
improved business brand memory.
5. Own payment gateway & logistic arm: Owning its own logistics division, e-
Kart, and payment processor, Payzippy, has enabled the business to keep costs
under control. transferring the advantages to the final clients.
6. Exclusive & broad range of products: The company has been able to
differentiate and localise its offers thanks to having exclusive rights to launch
specific products, including the Motog Motox, Xiaomi Mi3, and personal
designers sectors in the clothing market.

Weaknesses:

1. Limited distribution channel reach: Although Flipkart's logistics division has

managed to keep costs down, the company's reach has been compromised. Global
behemoths like Amazon and eBay are able to ship products anywhere in the
nation because of outsourcing. Flipkart is still having trouble in this area, though.
2. Cost of acquisition: Flipkart obtains a lot of customers through online 39
advertising, which raises the cost of acquisition because of the market's intense
competition and low customer retention. According to data from Flipkart, the
business spends an average of Rs. 400 to bring in new consumers.
3. Power in the hand of buyers: The number of participants in this market
means that consumers have a wide range of possibilities. Since customers may
simply switch services from one online retail company to another, switching
expenses are also reduced for them. Numerous online retail websites will display
the same products. When there is essentially no product differentiation, the
competition is based solely on price.

Opportunities:

1. Expansion of business: Companies can boost their sales and achieve

economies of scale by focusing on other rising areas.
2. Expanding their product categories: As a result, their customer base will
grow and their acquisition and retention costs will go down.
3. Changing mentality of Indian customers: There is enormous potential in this
market as more consumers become accustomed to online shopping and as the
number of internet users in India rises.
4. Supply chain: They can compete with the other companies and control the lost
sales as a result of not being able to make the goods available due to delivery
restrictions by optimising their supply chain.
5. Establishing in other developing economies: Like Amazon, Flipkart can
gradually begin to leave India and develop operations in other nations, which will
boost sales.

Threats:

1. Competition: Strenuous rivalry from local firms like Snapdeal, Tolexo, and
Shopclues as well as international players like Amazon, eBay, and both, who are
constantly vying for customers.
2. Government regulations: The growth of the Indian e-commerce business has
been significantly hampered by the fdi concerns in multi-brand retail.

8.2 AMAZON

Strengths:
1. Strong background and deep pockets: Amazon has expanded its product
categories to include electronics, toys, games, home and kitchen, white goods,
brown goods, and much more as a result of its early success with books. In the
past two decades, Amazon has grown into a major global player in e-commerce.
2. Customer-centric: In order to meticulously capture information on customers'
purchasing patterns, the company's sophisticated CRM has developed customer-
centric processes. Depending on the preferences shown through purchases or
products viewed, they can then offer specific items, or related items, or package
them together as an offer. Additionally, the business asserts that 55% of its clients
are repeated customers, resulting in a cheap acquisition cost for new clients.
3. Cost leadership: The company has formed a number of strategic relationships
with other businesses to provide better customer service in an effort to set itself
apart. The most significant strategic alliances are with cost-controlling logistics
providers. Amazon is able to shorten the time it takes for its inventory to restock
because of the usage of economies of scale.
4. Efficient delivery network: In order to make the goods accessible even in far-
off places, Amazon has built a strong and structured network with the help of its
strategic partners and Amazon fulfillment centres. Additionally, there are no
shipping fees in some regions.
5. Global strategy: Amazon is able to compete with domestic e-commerce
companies by acquiring and developing partnerships with supply chain
companies, adhering to the maxim "go global, act local." The branding is also
done to suit regional preferences. For instance, Amazon is now encouraging
people to browse more of its products in India with the "aur dikhao" campaign.
6. Acquisitions: The e-commerce behemoth has found that acquiring businesses
like zappos.com, junglee.com, imbd.com, woot.com, and others has been
profitable.

Weakness:

1. Shrinking margins: Amazon's margins are decreasing as a result of price

competition and its huge delivery network, which is causing additional losses. In
India, Amazon lost $359 crores during the 2013–14 fiscal year.
2. Tax avoidance issue: Because of its tax evasion in nations like the United
States and the United Kingdom, Amazon has received bad press. These mature
markets provide for the majority of its revenue.
3. High debt: Amazon continues to struggle in many developing countries to turn
a profit, which has a negative impact on the group's total profitability and led to
excessive debt.
4. Product flops: The Fire phone, which was introduced by Amazon in the US,
was a huge failure. Kindle Fire did not get as much traction at the same time as
Kindle. As a result, a number of products failed, which hurt Amazon's enormous
resources.

Opportunities:
1. Backward integration: Amazon has the ability to create its own brands across
a variety of product categories. They may also make their offering stand out. This
will enable them to turn a profit in the fiercely cutthroat e-commerce business.
2. Global expansion: Amazon will benefit from expansion, particularly in
developing and Asian markets, which have little e-commerce industry
competition and are not as saturated as established ones.
3. Acquisitions: It is possible to lower the level of competition and utilise the
other company's specialised capabilities by acquiring e-commerce businesses.
4. Opening physical stores outside the US: By doing this, Amazon can
encourage customer interaction with the brand, which will improve repeat
business and the number of devoted customers.

Threats:

1. Low entry barriers of the industry: Low entry barriers have an impact on
present players' businesses because increased competition, price wars, declining
margins, and losses as a result of these factors make players' long-term viability
uncertain.
2. Government regulations: A significant barrier to the success of e-commerce
operators in many developing countries has been the lack of clarity on the issues
linked to FDI in multi-brand retail.
3. Local competition: In India, domestic e-commerce companies Snapdeal and
Flipkart are capturing the majority of the market. Similar to this, there are other
regional competitors who syphon off market share, making it difficult for a major
company like Amazon to turn a profit.
 9. Data Analysis and Interpretation

Analysis based on the questionnaire:-

……………
INTERPRETATION- Majority of the people prefer Amazon over Flipkart. Out of 67 responses
50 of them use amazon, 10 use Flipkart, and 7 people either don't use any of them or use some
other platform.

INTE
RPRETATION- Out of the 50 people who prefer amazon over Flipkart, 26 people order
monthly, 11 order weekly, 2 order daily, and 11 order rarely.
INTERPRETATION-Majority of the people prefer amazon over flipkart because of its fast
deliveries, the second best feature is that amazon is more reliable an the third main reason for
choosing amazon is because of its low prices.

INTERPRETATION- The level of satisfaction given to the consumers by Amazon is quite better
than Flipkart.
 INTE
RPRETATION- People don’t always recommend amazon to others frequently but whenever a
query is raised, they recommend amazon to others.

INTERPRETATION- Most common methods of payment among consumers are cash on

delivery and UPI payments.
 I
NTERPRETATION- Majority of the people tend to buy products within a day and some people
need more than a day to research the product before buying.

INTERPRETATION-Majority of the people have the problem of cash on delivery being

unavailable and 24%of the people have no problem with amazon’s method of functioning.
INTERPRETATION- Many people prefer Flipkart over Amazon because Flipkart offers low
prices but still the reliability of Flipkart is very less compared to Amazon.

INTERPRETATION- Flipkart even with having less number of consumers than Amazon, has
many consumers who buy products from the platform on a monthly basis.
INTERPRETATION- Flipkart provides a lesser level of satisfaction to its consumers.

INT
ERPRETATION- Not many users of Flipkart recommend the app to others.
INTERPRETATION- Same as Amazon the majority of Flipkart’s consumers prefer shopping by
cash on delivery and UPI payments.

I
NTERPRETATION- Many Flipkart consumers take an hour to a day to research before buying
anything but still a significant percentage of the consumers take 1-3 days.
INTERPRETATION- Among the consumers of Amazon and Flipkart, the consumers of Flipkart
face many issues with the app whether it's an issue related to delivery cost, COD unavailable, or
any other issues.

9.1 FINDINGS

 Both male and female respondents express an equal interest in internet shopping.
 Despite being slightly more costly, customers prefer purchasing quality goods
from e-commerce websites.
 Flipkart is working extremely hard to overtake Amazon India, but the rivalry is
fierce.
 In every survey factor, including price, preference, and recommendation to peers,
Amazon comes out on top.
 Flipkart and Amazon had a significant effect on consumers and attracted a
following of devoted customers.
 All consumers are prepared to recommend their online store to the rest of their
peers.
 Both Flipkart and Amazon India advertisements were very innovative and
attractive.
 Both businesses spend a lot of money on promotions and promoting.
 People of all ages are intrigued by offers, regardless of whether they need
something or not.
9.2 SUGGESTIONS

Flipkart is doing alright, but not well enough. In so many situations, people have thought
that packing might have been a preferable option. No matter how large or small,
expensive or not, a product needs to be handled carefully. Some goods, primarily apparel,
are shipped with the supplier's original packaging, which demonstrates their negligence.
Amazon has distinguished itself among us in this matter because, regardless of the
product, its packaging will undoubtedly be safe and secure.
 10. CONCLUSION

The research included all of Flipkart's and Amazon's work processes, two of the largest
Indian e-commerce players. It has been described how they operate flawlessly and
perform well in a competitive environment. It is commendable that they are using
innovative thinking to reach a growing number of customers. In an effort to serve as
many customers as possible, they expanded their network as much as they could. They
made it easier and more comfortable for customers to work. In this cutthroat market, one
must take the initiative, and the others will follow. Based on customer surveys, Amazon
emerged as the clear winner. Despite being a multinational corporation, it developed
deeper foundations in India thanks to its deep understanding of Indians. Even though
Flipkart is a much younger company than Amazon, it is still offering the latter a very
tough fight. They may need some time to get over it, but they are undoubtedly succeeding
in the Indian e-commerce industry.
 11. REFERENCES

https://blog.measurable.ai

www.timesnownews.com

www.dnaindia.com

www.nagpurtoday.in