CHAPTER-I

INTRODUTION AND DESIGN OF THE STUDY

INTRODUCTION

Flip kart is an e-commerce company founded in 2007 by

Sachin Bansal and Binny Bannsal. It is registered in singapore and it
operates in india, where it is headquartered in Bangalore, Karnataka.
Flip kart has launched is own product range under the name “Dig Flip”
with products including tablets, USBs, and laptop bags. In May 2014,
flip kart received $210 million from DST Global and in July it raised $1
billion led by existing investors Tier Global and South Africa’s media
group Naspers. Flip kart’s last fund raising round in December had
pegged its valuation $12 billion.

Online shopping was introduced in western countries then it

spread in india. India in 1994 IBM (International Business Machines
Corporation) started the agency. Through this agency IBM initiated its
solution regarding to e-commerce and e-business through internet
online shopping or online retailing is a form of electronic commerce
which allows consumer to directly by goods and services from a seller
over an internet using web browser. Alternative names of this online
shopping are: e-shop, internet shop, web shop, web store, online store,
virtual store.
INTERESTING STATISTICS ABOUT THE COMPANY

 As of today, Flip kart employs over 4500 people.

 It experiences 2 million unit sales and 4 million unique visitors
per month with sales growing at 25% per month, eyeing a $50
million run rate.
 With close to 11.5 million titles, Flip kart is the largest online
books retailer in india with 80% market share.
 It has a registered user base of two million customers and
ships out as many as 30,000 items a day, clocking daily sales of
Rs 2.5crore.
 Flip kart is rapidly expanding its network of warehouses,
distribution centers, procurement operations and 24/7
customer support teams. The company even has its own
delivery network in 27 cities and is set to expand this even
further by next year.

SCOPE OF THE STUDY

 The study was conducted among the internet users.

 The geographical area covered was Namakkal district.
 The study was based on a Schedule of Questions.
 The scope of internet shopping.

It was a time of past to spared your business in market

by conventional methods. Old market is today converted in
high tech markets, Today if you want to purchase any item
from abroad you need not to go or you need not to call them
for a sample. You can find their products and see the
catalogue on internet. Internet enables you to shop
throughout world from the comfort of your home. Internet
has some special characteristics which no other medium
have. Only internet can provide you such special information
even no salesman can help you as internet helps. Countless
people can see products at a single movement, as well as
they can purchase the product same time. You can compare
various product and choose which is more useful for you, You
have the facility to visit websites as much as you link no
restriction on you here you will find approximately all world
class brands and their products you have the facility to
compare them, arrange according to many types like by
price, by size, by category, by most sailable item and many
more. This facility enables you to choose.

This way of shopping provides a new way of shopping.

You get to identify the products, compare the prices and
quality and view the products from different angles.
Testimonials and reviews arte the unique feature of shopping
where you can share your experiences with other
users/consumers. The most exciting aspect of internet
shopping is that it is a 24*7 affair! And you’re free to shop on
your leisure hours and even holiday are useful for shopping
for you. Your time is best valued here. You need not to go
market so no tension of conveyance, pollution, traffic etc.

The other dimension is that you directly purchase the

items from originals merchant in online shopping no
 mediator comes between you and merchant so it becomes
cheaper to purchase item. Fewer mediators less price.
Merchant will also save his money by selling of goods on
internet. Merchant need not to spent for staff, showroom
other expenses. He can sale by less resources and less
expenses, some online store do not have their physical
showroom they display their product and services online and
deliver goods on customer’s door such merchant save a lot of
expenses and they work in less capital that’s why they are
able to sale goods on low prices internet has a very bright
future. If you want to increase your business and cross the
boundaries of region you need to take help of internet.
Without going online you can’t think about your progress
worldwide. In this regard you can see all large scale business.
Big brand, big shopping store are online. Online shopping is
the demand of today’s modern time. Time and quality is the
main subject of online shopping. Today everybody is running
to save time and who saves times automatically save money.
Day to day needed item is now available on internet and
people prefer to shop online. Not only for progress but also
to survive in this competition era business internet help.

STATEMENT OF THE PROBLEM

Nowadays our old is going on the path of digitalization. Payment,
purchase, sales such all transactions are done through internet. So it is
recommended to use online transactions for best results of a business. In
the area of marketing , online facility is very much useful. Presently,
every business concerns prefer online for their marketing. “An
increasing number and variety of firms and organizations are exploiting
and increasing business opportunities in internet”-Liao and cheung
(2001:299)[1]. This clearly defines the growth of e-shopping. Cut throat
competition in this field forces the marketer is to analyses what actually
motivate the customer to shop online. In order to analyses needed details
of sales encounter, delivery and demonstration, product performance,
after sales service and complaints handling. These above information
will help the company to plan its future activities and strategies to
compare competition in the market.
OBJECTIVES OF THE STUDY
 To study the socio-economic background of sampling of
respondents.
 To examine performance of flip kart shopping
 To increase traffic and boost sales and revenue through
integration of mobile apps, Display , Pay per click and search
engine optimization.
 To discover the factors influence that purchase intention in
online shopping.
 The main target is stronger supply chain and aggressive
acquisitions
RESEARCH METHODOLOGY
Research is an art of scientific investigation. Research is an
academic activity and as such the term should be used in a technical
sense the term research refers to systematic method consist of
enunciating the problem, formulating a hypothesis, collecting the data,
analysis the facts and reaching certain conclusion either in a form of
solution towards the concerned problem or in certain generalization for
some theoretical formulation.
 The population is all elements that meet certain criteria for
inclusion in study the respondents in the Namakkal town are in units in
the population sampling subjects of the population selected for a
particular study member at the Namakkal are in town in the study
objects. The sample size 100 the total population initially divided in and
around Namakkal convenient sampling is felt to appropriate for the
present study because convenience sampling is a strategy is felt to
strategy is a has present as subjects for the present study.
RESEARCH DESIGN
A research design is purely and simply the framework or plan for
that guides the collections and analysis of the data.
The research design adopted for the present study is research on a
design.
EXPLORATORY RESEARCH DESIGN
The exploratory study is particularly helpful in breaking board and
vague problem to smaller statement, hopefully in the form of specific
hypothesis
SAMPLING
Sampling can be defined as “the selection of some part of an use a
aggregate or totally on the basis of which a judgment or influence about
the inference about the aggregate or totally is more.
SAMPLE SIZE
Sampling size refers to the few items taken the population the
researches are called a sample size.
The sample size for the present study is 100 respondents.
SAMPLING METHOD- CONVENIENCE SAMPLING
When the population elements are selected for inclusion in the
sample based on the ease of access, it can because.
“CONVENIENCE- SAMPLING METHOD”
Sampling method for the present study adopted in convenience –
sampling.

SOURCES OF DATA

 Primary data
 Secondary data
Primary data
Primary data are which are collected a fresh and for the first time,
and thus, happen to be original. Primary data are present on by preparing
a well- structured questionnaire was on a distributed to the customers
and responses were received from a customer.
Questionnaire is the term that refers to self-administrated on process
whereby the respondents himself or herself reads the question and a
record his or her answer without the assistance of an interviewer.
Secondary data
Secondary data are those data, which are collected by someone and
which have already been passed through the statically process.
Secondary data for this study were collected from website, on a
News papers, Text books and Magazines.
TOOLS FOR DATA ANALYSIS
 The data that research have collected need to be analyzed and
processed to generate meaningful and useful information , to serve this
purpose, simple percentage analysis and chi square test analysis were
used. Data collected if not subjected to analysis is subjected is
meaningless. For the purpose data offer collection diagrams and graphs.
It is only offer presentation that data can be analyzed, interpreted and
inferences can be drawn.

 Percentage analysis
 Chi-square test
Simple percentage method
The collected data is analysis by using simple percentage method.
Under this method, percentage is used to compare the data collected.
Simple percentage = No.of Respondents
-------------------------- x 100
Total No. of Respondents
Chi – square test
Chi-square test is applied in statistic to test the goodness of fit to
verify the distribution of observed data with assumed theoretical
distribution. Therefore it is a measure to study the divergence of actual
sampling studies. Where we export a doubted co- incidence between
actual and expected frequencies and the extent to which the different can
be ignored because of fluctuations in sampling.
If there is no difference between the actual and expected
frequencies x2 is zero. This the chi square test describes the discrepancy
between theory and observation.
 The x2 may be defined as
The x2=? {(O –E)}
-------------------------------
E
=Observation frequencies
=Expected frequencies
LIMITATIONS OF THE STUDY
The study is confined to the selected particularly in Namakkal and
hence conclusion must drawn with due care. When an attempt is made to
generalize the results. In-spite of constant effort and care taken
administering the questionnaires some of the respondents properly. The
study sample size is restricted to 100.
CHAPTER SCHEME
CHAPTER-I
It deals with the introduction, scope of study, statement of the
problem, objectives, methodology and limitations of the study.
CHAPTER-II
Empirical studies relating to the present research work
CHAPTER-III
It concentrates with the highlights about profile of the company.
CHAPTER-IV
Investigates the received information in the form of data
analysis.
 CHAPTER-V
It discuss about the summary of findings and conclusion of the
study.
 CHAPTER-II
REVIEW LITERATURE
Introduction
The study of the activities which are happening on the internet
are email and instant messaging or browsing, reading news. Hence the
researcher interested to discuss relevant research works done by various
researcher in the review of literature, which are close to the present
study.

.
Flipkart – Company Profile
Founded in October 2007, Flipkart is one of India’s
leading e-commerce marketplaces, with headquarters in
Bengaluru. Flipkart was founded by Sachin Bansal and Binny
Bansal and the company initially started as an online book store.
Later, as the company’s popularity grew, it also started selling
other items such as music, movies and mobile phones. As the e-
commerce revolution gained momentum in India, Flipkart grew at
an accelerated pace and added several new product ranges in its
portfolio. As of now, the company offers more than 80 million
products spread across more than 80 categories such as mobile
phones & accessories, computers and accessories, laptops,
books and e-books, home appliances, electronic goods, clothes
and accessories, sports and fitness, baby care, games and toys,
jewelry, footwear, etc.

Flipkart has 100 million registered users and more than 100
thousand sellers on its e-commerce platform. The company has
invested in 21 state-of-the-art warehouses to ensure prompt
delivery to its customers. The Flipkart website attracts 10 million
page hits every day and around 8 million shipments are
processed every month. Flipkart has also introduced its mobile
app, which has become quite popular, with more than 50 million
app users. Flipkart is a billion dollar company and its valuation in
2016 was Rs 15,129 crore (US$2.3 billion). It employs more than
33,000 people.

History:
Flipkart started as an online bookstore in October 2007. The
founders Sachin Bansal and Binny Bansal left their jobs at
Amazon.com to launch their own company. It was a risky move,
since the e-commerce sector in India was mostly non-existent at
that time and there was no certainty about its future. However, the
founders took the risk and now it has turned out to be a huge
success. One of the major problems that Flipkart tackled during
its initial years was online payments. At that time, people in India
were averse to make online payments to a virtual store. Flipkart
solved the problem by launching its ‘Cash on Delivery’ service,
which helped build confidence among online buyers. Flipkart also
made significant efforts to improve the supply chain system,
which helped the company to ensure timely delivery to customers.
In 2013, the company created a record by selling one lakh books
on a single day. In 2016, Flipkart had crossed the 100 million
mark in registered customers.

Funding:
Flipkart has received more than $ 4.5 billion in funds till date,
with the biggest funding coming in July 2014 worth $ 1 billion and
in April 2017 worth $ 1.4 billion. Some of the top investors in
Flipkart include Naspers, Steadview Capital, Tiger Global
Management, DST Global, Accel Partners, Dragoneer Investment
Group, Baillie Gifford, GIC, Greenoaks Capital, ICONIQ Capital,
Microsoft, Morgan Stanley, Qatar Investment Authority, and
Sofina.
Acquisitions:
With fierce competition in the e-commerce market, a slew
of mergers and acquisitions have been witnessed in the e-
commerce sector in recent years. Flipkart has acquired a range of
businesses in recent years to boost its product and service
offerings. Some of the key acquisitions made by Flipkart include
Myntra, eBay India, PhonePe, Jabong, Letsbuy.com, WeRead,
Mime360, chakpak.com, Appiterate, FX Mart, and ngpay. The
most recent acquisition was Snapdeal that was a competitor to
Flipkart. Snapdeal has been acquired at a cost of $950 million.

Competition:
With Snapdeal in its kitty, Flipkart now has only one major
competitor Amazon India. However, having only one is enough
since Amazon is betting big on India’s e-commerce revolution and
has committed $5 billion investments in Amazon India. The
company has already received $2 billion in funding and $3 billion
more are planned. Amazon India has been consistently
competition for Flipkart.

About the Founders:

Flipkart founders Sachin Bansal and Binny Bansal are both
IIT graduates. Both come from Chandigarh, but they are not
relatives, even though they share the same last name. It was
Sachin Bansal that got Binny Bansal to join Amazon.com, but
later they both quit and decided to launch Flipkart. Sachin Bansal
is now the Executive Chairman of Flipkart whereas Binny Bansal
has been promoted to the Chief Executive officer(CEO).
Online shopping:
The number of internet users is on a rapid rise worldwide
and is used by people of all age and types. Internet has become a
major medium for communications, entertainment and is in the
process of replacing traditional entertainment, promo products,
and informative medias. Some businesses are finding that
handing out a promo product such as pens, business cards, and
mugs are too costly and yield little results. Likewise, traditional
marketing forms such as television, radio, newspaper, magazines,
etc., are becoming a thing of the past.

Internet has also become a major and effective medium for

advertising and it has be predicted that the online advertising and
marketing is soon going to replace the advertising through
traditional medias such as television, radio, newspaper,
magazines.