Business Adviser 1 Submission BCS

Improvisation of Hierarchy

Submission Date & Time: 2020-03-23 06:08:14

Event Name:

Solution Submitted By: Kush Malukani

Assignment Taken

Case Understanding

 Daily needs delivery (DND) a startup founded by Sam Malhotra and Rajish Gupta in 2017 as an Indian daily need product deliveries in the initial year of startup DND used to deliver milk, paneer and curd in three states Delhi, Hyderabad and Bangalore between 5 AM to 8 AM. DND was a total app based delivery system where customers used to allot their monthly orders and the deliveries were placed accordingly supported by BHIM and UPI as a payment mechanism. The financial chart of DND in initial years was not that well but the startup was adopted well by the states they had 80 delivery partners and 10 corporate employees in each state.  But DND faced many problems as customer were complaining about the wrong product delivered or missing deliveries, foul and smelly products moreover the corporate offices were also complaining about the absentism of delivery partners. They also required app expansion as well extension of product categories and moreover expand their services into non dense areas. Thus a proper work allocation and new system of operating was required by the startup.

BCS Solution Summary

 Draft a Advisory Note on expansion of the startup by generating solutions. Solution summary:  The solution summary of DND is quite deep as we can see there were many complaints from the customer about wrong deliveries as they complained that they ordered paneer and curd was delivered regarding that DND needs to take various precautions on app expansion by providing proper tracking of the deliveries. There were complaints about the missing deliveries thus DND needs to look deep into it by providing proper training to the delivery partners and the corporate employees to maintain excellence relationship within the organization and keep an eye on delivery schedule of the customers as well as look upon delivery partner’s task to deliver it timely. DND served only in three states and now needs to look upon the firm expansion and product extension DND needs to target the states where this kind of startups are adopted well by the people moreover they also need to start serving in the non dense areas by tying up with the local females for the product as females are more excellent and compatible with dairy products to cut competition and to spread and get to more and more people. Moreover about the product extension DND needs to expand its product category they can add up various dairy items and start serving sweets depending on the climatic condition of the states. DND also need to look upon app expansion and marketing. In the case of app expansion DND can improve the app facilities to delight the customer with various attractive bonus and offers, by giving in app tracking product facility and various other improvements. DND also lacks in marketing as they are only serving in three states so the need to adopt various marketing strategies to pitch the customers. Solution to that is given below

Solution

BCS Submission 04 NMO

Solutions to the Problems!

 

  • Firm Expansion

 

  1. Every firm is eager to expand its business to generate more revenue to earn more profit and grow its brand further but in the case of DND they were only operating in three states Bangalore, Delhi, Hyderabad and that too not in the non-dense areas as we can make out that there delivery partners were limited to expand it in other areas. As a solution the firm can tie up with the local women’s for the product delivery as females are more compatible in working of dairy products moreover the local people will trust more on their local citizens thus will help in easy working and boost up sales, but that depends on the state .But the question comes in mind that already the total costs of the company was more than the revenue so adding up more delivery partners may add up the cost and the inventories, so the solution to that is the company can expand itself now to other states after evaluating the necessity of the product in the states and as we can see that in the above three states the company was accepted well due to its pricing thus they can expand further in the states where these kind of business are adopted by the people quickly thus more revenue will be generated, total costs per consumer decreases thus the profit increases so expansion should be soon adopted by DND.

 

  • Product line Extension

 

  1. Not only the firm expansion make it but the firm also needs to look after the product extension as till now the firm only deals with milk, curd, paneer but now after 2 years of its working the firm can also expand their product category by including various other dairy items and sweet items depending upon the climatic conditions of the states the can also grow a visionary towards grocery products  that are sheer necessity in the rural as well as urban areas the firm can look into varities to delight its customers thus a wide range of choice can be made available but the firm need to take utmost care while choosing the products to be made available and the acceptance of it in the market, competition, pricing, supply chain and various other factors.

 

 

 

  • Marketing Strategies

 

  1. In my view point if finance is the lifeblood of the business then marketing is also the base and the core of the business, without proper marketing strategies no brand sustains and in the segment of FMCG strong marketing is required to diversify the product from others so marketing strategies can be :
  • The firm can set up hoardings at the mall and grocery markets and at various other crowded places and can show their small video showing the disclaimer about the products, the way in which delivery is taken place, the corporate atmosphere, customers satisfaction after receiving the product, various taglines, content, design etc. Thus customer will have trust on the firm and the product thus loyalty of the customer increases and this is the only method to get in the mind of mass audience
  • Competition also plays a major role in marketing as now there are many firms and the market consist of multiple firms dealing with the same products thus DND can market itself through differentiating itself from the competitors in this strategy the firm need to differentiate itself in the terms of packaging, quality and the quantity the firm needs to show its diversification in the products also as DND has got benefit that its sells two types of milk cow and buffalo thus diversification of the product also helps in marketing and differentiating itself from the competition.
  • Moreover the firm can also adopt various marketing strategies like BTL(Below the line marketing), the firm can host different campaigns at the supermarket and the malls and cinemas conduct a marketing research by making the customers aware about their services, conducting a survey based on their daily needs and inform them about their brand and the benefits they can offer thus a superficial image will be formed in the mind of the customers that helps the brand to attract more customers

 

  • App Innovation
  1. Only the firm expansion won’t make it the firm also need to look upon the App expansion and innovation as the whole business was app based but the customer complained that the products were delivered wrong and also the products not received by the customer so solution to that can be similarly we can generate an app based  live location tracker  with the name of the shipper, the product he is delivering, where he is delivering to whom he is delivering through which the customer as well as the firm can also keep a track on the deliveries thus there thus we need an order tracking setup as well as a delivery confirmation system over the app for our customers.
    Along with that, we also need a customer grievance management system for complaints and post delivery services integrated within our app thus easily the firm as well as the consumer can track the order thus there will be no wrong deliveries and the status of product delivered or left can also be checked by this. Moreover various improvements like OTP for the customers. Cashback offer, new buyers offer various badges like gold, Premium can be allotted on the number of kg bought by the consumer in a given month, this attracts consumer to buy more and thus loyalty towards the firm increases.

 

Conclusion
CONCLUSION  The firm owners and the general management should look after various policy decisions regarding expansion of the firm as well as extension of the product lines to grow the brand further.  An advisory note is drafted to the marketing department to advertise its product on various platforms by adopting various marketing strategies.  The finance department should look after the prices of the products and manipulate them according to the demand and supply scenario in the market.  The IT department needs to look after the expansion and innovation of the app by taking various steps to make it easier for the consumer to use it and also look about the consumer satisfaction while using the app.  Similarly the HR department needs to work upon proper recruitment, training and development of the delivery partners and the corporate working to make them aware about maintaining excellence relationship with the consumer, to provide them with proper training to avoid deviations. Management Principles Used  Division of work -According to departments  Authority and responsibility- Assigned to top level and managers  The degree of centralization- To maintain hierarchy  Order- by providing the employees with the right guidance and proper information  Esprit de corps – To develop proper communication channel between the departments that helps in maintaining excellence relationship with the customers
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Participant

Kush Malukani

GLS institute of Business administration

A undergraduate management student expertising the field of marketing management. Also enhancing myself in performing arts and public speaking.