Marketing Mix of Flipkart 7Ps

A brief introduction to Flipkart ( Indian e-commerce website)

Flipkart is an Indian E-commerce website that was launched in 2007 by two IIT alumni - Sachin Bansal and Binny Bansal - who formerly worked for the leading international e-commerce brand Amazon. Like Amazon, Flipkart also started with selling books and slowly expanded the line of products sold on its website to include music, movies, and mobiles within 3 years of its launch. The company has its headquarters in Bangalore, Karnataka, India. In its short lifespan, Flipkart also made several acquisitions of which the most notable one was Myntra is an online fashion and home furnishing brand. In all these years, the brand has expanded its product line as well as distribution capabilities and strengthened its presence in the Indian market enormously. The growth of the Indian economy and growing use of the internet and e-commerce in India have also helped Flipkart find faster growth in the local market. It is the biggest rival of Amazon India. However, Walmart acquired a majority stake in Flipkart in 2019. According to sources, the stake of Walmart in Flipkart is now 81.3% which stood at 77% in the beginning. Other equity stakeholders in Flipkart include Tencent Holdings, Tiger Global, Binny Bansal (founder), Microsoft, Accel, Iconiq Capital, Temasek, and UBS. Following Walmart, Tencent Holdings had the largest stake in Flipkart according to the report above 5%. Sachin Bansal exited Flipkart following the acquisition by Walmart while Binny Bansal continues to serve the company.


Flipkart entered the e-commerce market as a bookseller but widened its product mix to include music, movies, and mobiles within three years. Over the years, it has continued to grow its product mix. The company has extended its portfolio through acquisitions including Myntra. Flipkart sells more than 80 million products on its digital marketplace in more than 80 categories. The main product categories include electronics, televisions and home appliances, men’s products (including fashion products, footwear, and accessories), products for women, babies and kids, as well as home furnishing products and grocery apart from other product categories like sports-related products, books, auto accessories, and fitness products. Flipkart is the largest online retailer in the Indian e-commerce market that enjoys a larger market share than Amazon India at 31.9% (S&PGlobal). While Amazon is not very far behind with a market share of 31.2%, Flipkart’s popularity in certain product segments like electronics and home appliances is very high. About 100 thousand sellers that sell their products online on Flipkart. You can imagine the scale of sales from the number of page visits on the Flipkart website and app as well as the number of registered users on the web site. Every day, the website, and app receive 10 million page visits and there are 100 million registered users on Flipkart. The website had crossed the milestone of 100 million registered users back in 2016.


Flipkart’s business spans entire India and the company has established an efficient distribution channel that apart from tier 1, 2, and 3 cities in India also delivers to smaller towns as well as rural areas. The company has its headquarters in Bangalore (one of four metropolitan cities in India), in the South Indian state of Karnataka. Flipkart’s warehouses serve 22,000 Pincode locations across India. One of the largest warehouses of Flipkart is located on the outskirts of Hyderabad, the capital of South Indian states of Telangana and Andhra Pradesh. This warehouse, apart from being the largest in India is also the first fully automated warehouse in the country. The growth of e-commerce in India depends to a large extent on how well the leading players manage their distribution systems. Making deliveries possible to remote areas in various Indian states requires that the company establishes modern and hi-tech warehouses in various corners of the nation. The Hyderabad warehouse of Flipkart is a hi-tech warehouse that relies on advanced technologies like IoT equipped automated conveyor belts, IT-based packaging, and tracking solutions, digital inventory management systems as well as other forms of digital solutions that enable swift movement of goods and services from one part of India to another.


Growing competition in the physical retail and e-commerce industry has brought the focus back on prices. While product quality and speed of delivery are important factors affecting the market share of e-commerce players in India, pricing is most central to popularity. The Indian consumers are highly price-conscious and compare prices before going for a purchase. Flipkart, Amazon India, Snapdeal, and other major e-commerce players in India are engaged in a bitter price war. Walmart is also present in the physical retail space in the Indian market. To win in the Indian e-commerce market, it is important for the brand to use competitive pricing. Walmart is already well known for its EDLP pricing strategy. In India also it uses a competitive pricing structure. However, the level of success it has tasted in e-commerce here or in physical retail in the US could not be matched by its physical retail division in India.


The e-commerce industry in India is marked by a remarkable level of competition. The e-commerce brands in India apart from competing on the basis of price, run regular marketing campaigns to drive sales and grow their customer base. Marketing and promotions are key drivers of sales and revenue growth for Flipkart. However, it has become the leading digital retail brand in India and a household name in most corners of the country. Due to its growing penetration of the rural areas of the country, the company is now gaining more ground in the local market. Flipkart’s growth is also driven by its focus on brand image and consistent branding. Its growth over the previous few years is a result of strong branding and growing focus on marketing. Digital marketing is the main channel used by Flipkart to grow its customer base. Apart from its own websites and apps, the company uses digital promotions as well as other traditional channels like print media and outdoor promotions to grow sales.


As of 2016, Flipkart employed 30,000 people. The company has continued to expand its business fast over recent years. The company calls its employees Flipsters. The company focuses on managing its human capital in a manner that maximizes employee and customer satisfaction. Employees’ happiness is the key to business growth. The company invests in its employees’ training and growth. Apart from that, it has created human resource policies that help maximize satisfaction for its workers and help them achieve a better balance between their career and personal lives. The CEO of Flipkart is Kalyan Krishnamurthy.


The e-commerce industry is marked by heavy competition and companies have to manage business processes in a manner to ensure higher efficiency and productivity. Flipkart has acquired a lot of growth within the last few years. The company had managed to achieve a strong position in the Indian e-commerce market prior to its acquisition by Walmart. From its website to the warehouses and fulfillment centers, the company focuses on business process efficiency to achieve stronger results. The company generated a revenue of around $6.1 billion in 2019 which was around 42% higher than the previous year. The company has been investing in technology and expansion of its physical infrastructure to achieve superior financial growth. Technology plays a key role in ensuring the operational efficiency of the company from its website to its warehouses. While Flipkart is continuously improving its website and apps to make them more shopper-friendly, it is also investing in making its warehouses technologically advanced and best in class so as to improve their capacity. It ensures that the customers have a superior shopping experience and products are delivered to the customers faster.

Physical Evidence:

Physical evidence denotes the physical proof of the products and services of a company. If a company makes hardware or other products, the product itself can count as physical evidence. However, if the company offers services or creates software or something like streaming services then physical evidence may not be as readily available as in the case of the brands making physical products. So, while it may be easy to find physical evidence related to Apple, it may be difficult to find physical evidence related to Google because the other is largely a services company. However, there is a lot apart from the physical infrastructure and branding related material that still provides the physical evidence of business.

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