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QUARTER FINAL | BUSINESS CASE - BCS 04

Leader Submission BCS 04

NMO 2020

Daily Need Delivery- Business expansion, Marketing & Promotion Model

Submission Date & Time : 2020-03-23 03:23:01

Submitted By: Akash Girishchandra Raval - Leader From Team Earth

Case UnderstandingDaily need delivery is currently working in 3 major cities of India those are Delhi, Bangalore and Hyderabad to deliver mainly 4 products Milk, Paneer, curd and cheese to doorstep of consumers according to their requirements and schedule on which day of week and on what time they want. DND delivers products in the morning from 5 am to 8 am but it are continuously working throughout the day to provide convenience to consumers, assurance of delivery, quality products and reliable service. DND is purely an app based business where customers put their orders on application and put schedule, which product to be deliver and how much quantity they require on which day of week and address. All these data is useful for DND to make an efficient, reliable and assured service to consumers so that every customer becomes happy. DND has efficient working team of IT, Marketing, Warehouse people, Operation people, delivery executives and consumer grievance team.DND supports BHIM UPI for the payments from consumers, so DND promotes digital India campaign and it will use many platforms like Paytm, Gpay and other so that every consumer can pay anytime, anywhere to DND.
BCS Solution SummaryDND is working on 3 cities along with 4 products, and it is working on home delivery system which purely an ecommerce business. The case has many aspects regarding finance, marketing, customer grievance and quality of the products. Main issue is also the retention rate of consumer is matter of concern, though new customers are coming but what about the existing customers? Why they left? Where were the loopholes? Which part need to be resolved? All these things need to be addressed. Also marketing strategies has to be made in order to penetrate in the newer market. Existing plans are not sufficient to grab more customers, but some new offers, new contest; customer engagement through guerilla marketing can fetch new customers. For the product expansion, DND will focus on bakery products, which are also a part of many Indians’ diet. So bread, toast, biscuits, cake all these products will be consider as cross selling products along with our main dairy products. DND should have major working on below parts: 1. Immediate response to Customer grievance 2. Active on social media platform 3. More promotional offers and contest 4. Better quality products 5. 24*7 Delivery 6. Employee satisfaction and training part 7. Route optimization 8. Government standard and regulations to be followed 9. Sample checking 10. Feedback from customer All these issues are there and after solving these, DND can approach new market with new products.
Solution

Vision Document for the next 5 years

1.Introduction

1.1 Purpose

The purpose of this document is to acquire the data about daily needs of dairy products in the Indian culture. It mainly covers dairy, bakery, management staff, delivery staff to complete a whole chain. This document is purposefully made to give the idea about business, needs and stakeholders who are directly or indirectly involve in this business.

1.2 Scope

This vision document is about the Daily Need Delivery services which are developed to serve the customer. The team has developed an iOS and Android base application to run this service and this application is the main coordination part of business as it connects all the departments under one umbrella and it monitors all the products those are to be delivered, delivery boys who go for deliveries and products those are to be ordered to serve the customer. This application can be supported by any android and apple devices.

1.3 Definitions, Acronyms and Abbreviations

CQAR – Convenience, Quality, Assurance, and Reliable

DND – Daily Need Delivery

2.Positioning

2.1 Business Opportunity

Milk, Curd, Paneer and cheese, all these dairy products are involve in daily consumption of Indian culture and it involves many stakeholders to reach to the end consumers. Like food, Medicine, Electronics and many other industries now involves in Home delivery of products and dairy products are not in range because it involves very crucial timings and quality supply each and every day. And DND is providing this service to consumers in the major three cities and also want to expand its business by looking for major opportunity in the newer markets in other metropolitan cities of India. This business will provide more convenience and assured delivery to the consumers.

2.2 Problem Statement

The problem of

Morning hassle for buying Milk, Curd

Affects

Daily valuable time of working women in morning

The impact of which is

Overall schedule of the day and inefficient work

a successful solution would be

A flexible, assured and daily delivery service which can help to reduce the hassle of working women and of other family members for going out daily to purchase milk. This can involve adjusting your timing, products consumer needs and convenient payment process. It will be able to reduce the cost and time of consumer for this daily routine.

2.3 Product Position Statement

For

Household, Restaurants, Corporate

Who

Feel the need for a home delivery of dairy products every day

Daily need Delivery

 Delivery service

That

Provides the consumer a home delivery of dairy products every day at door step on a one click in the application

Unlike

Current service provide by local distributor according to their time and quality also payment mode

Our product

Gives consumer a convenience, Reliable and timely delivery of what asked, how much asked and when to asked throughout the day with promotional offers which also gives the easy payment methods

3 Stakeholder and User Descriptions

3.1 Market Demographics

The target market segment includes all the households, restaurants, local tea vendor and corporate. The users are anticipated to be consumers who already use this type of other delivery services in food, medicines, clothes and electronics. DND has market in 3 cities and want to penetrate in the newer markets where opportunities are rich and profit margin is high.

3.2 Stakeholder summary

Non- User Stakeholders

Name

Description

Responsibilities

IT technical

This is a stakeholder that handles all the Application and data related work

Responsible for the application build up, resolve malfunction, key technical issue resolver and new update implementation

Market analyst

Identify the current market for the penetration of product

Ensures the product will have demand and more customer business will get from new market

Operation optimizer

Identify bottlenecks in the system and run operation smoothly

Ensures at minimum cost delivery happens by doing route optimization and manages leftover inventories in warehouse or cold storage

 

HR

Identify structure of an organization and resolve issue amongst employee

Ensures each and every person of organization is well aware of work and understand the culture of organization

Customer Relationship Management

Identify consumer complaints and forward it to concern department

Ensures all the consumer complaints to be resolved as soon as possible on its end and if not then forward it to concern department

3.3 User Summary

Name

Description

Responsibilities

Stakeholder 

Households/Domestic/Commercial

End user of the service

Give order on the application of DND of dairy and bakery products and do payments on time

Self

Customer care

End user of application

Monitors daily consumer complaints and try to resolve it in this end and if not possible then forward it to concern department

DND

Delivery Executives and delivery boys

End user of application

Tracks on details like address, timing and quantity to be delivered and work according to that.

DND

3.4 User Environment

The users will use DND application on their android/Ios devices and from any location by putting an address where the products need to be delivering. And any user that has already used home delivery system application and payment processes will find it easy to use as this application is user friendly and also dashboard of this app is as featured with many options handy like to edit time, address, product quantity and products itself. So convenience will be there while using Application. Also payments are made from BHIM UPI so a secured platform is being used here to ensure a zero mischief in the payments

3.5 Stakeholder Profiles

3.5.1 Households/Domestic/Commercial

Description

An individual who use application for home delivery of  dairy products

Type

A customer who takes service and pays the charge

Responsibilities

Gives order, delivery time, address and regular payment

Success Criteria

If data given right, payment done regularly DND surely successfully delivers product on time

Involvement

Data has to be given otherwise DND cant not proceed further

3.5.2 Customer Care

Description

An individual who assist consumers with application and also resolve issues raise by consumers

Type

A DND representative

Responsibilities

Ensures all the issues raised by customers should be resolved within timeframe and also concern department need to be informed

Success Criteria

If issue is not big like miss delivery or wrong product then problem can be solved at this end successfully, but issue regarding expired product or bad quality then concern department will take care for this.

Involvement

DND will have customer care members on board to help and evaluate to resolve the queries of customers

3.5.3 Delivery Executives and delivery boys

Description

An individual who keeps data of all the consumers and give deliveries according to requirements of consumers

Type

A DND representative

Responsibilities

Ensures all the deliveries to be made on time within time limit and with zero miss delivery

Success Criteria

If data given by consumer is right and consumer is available at home then timely delivery can be happen.

Involvement

DND will have delivery boys and they report to delivery executives to ensure a successful delivery chain.

  1. Alternative and competition

Local dairywala and milkmen who daily supplies milk to consumers are main existing competition in the market. But here opportunity is they are not organized but scattered also quality product is the still concern in the consumer’s mind.

4 Product overview

4.1 Product Perspective

DND Application: Below flowchart describes how an application is simply run on some algorithms and within few steps customer book order and pays through application.

Flowchart of Order flow ( Flowchart is attached as image, kindly refer that section)

4.2 summary of capabilities

Customer Benefit

Supporting features

Convenient use of application

Anyone with android/Ios phone can use DND application to book order

Secured payment

BHIM UPI secures the payment from consumer to DND

Consumer portal

A portal where customer can put their FAQs and get the information

Customer chat

DND executive will chat with customer for their small issues

Timely delivery

Delivery boys do delivery according time given by consumers

Quality products

DND ensures every product which are up to mark and fresh

Cashback and promotional offers

Marketing team does promotion and gives discounts on referral base.

4.3 cost and pricing

Cost of service will be charged according to the products, but with more products charge will go down.

5 constraints

5.1 Miss delivery

Delivery boys will deliver products according to address but problem is whether customer getting the product or not. There is no feedback in the system, just a consumer complains but what if consumer complains on wrong mail id. Then to track if delivery is going good or not is a matter of concern here.

5.2 capacities

Currently only 3 cities have been covered but when the expansion will increase with the newer cities then more stakeholders will arrive in system and for that with more customers a storing capacity must increase.

5.3 Franchise base model

Currently no scope for any franchise to expand in new market but when it comes to enter into the broader market then franchise base model has to be implemented to reduce cost and manpower effort.

6 Other Requirements

6.1 Applicable Standards

The guidelines are part of directives issued by the regulator to re-operationalise licensing and registration of ecommerce food companies.

Norms those are to be followed like

  1. Anytime sampling
  2. Indicative images on platform
  3. Food should have remaining shelf life of 30% or 45 days before expiry at time of delivery
  4. Mandatory info mentioned in FSS act must be provided to consumer
  5. Only fresh food to be delivered

Source:https://m.economictimes.com/news/economy/policy/food-inspector-tightens-ecommerces-safety-belt/articleshow/67280363.cms

 

6.2 system requirements

DND application mainly works on GPS system where tracking of products and delivery boys happens. So main legal Google Maps permission and licensing to be undertaken and after that it should be implemented on application.

6.3 Environmental Requirements

Our delivery system is on motor cycle and it is on petrol driven, so government norms to be followed in order to make less polluted environment. Proper vehicle registration and PUC has to be taken care in order to be under guidelines of the government.

6.4 Labeling and packaging

To prevent from adulteration proper packaged food has to be supplied to consumer. So proper packaging of products with proper labeling to give certainty to the consumers about safeguarding of a product.

 

SWOT analysis of Daily Need Delivery

Daily need delivery is the one of delivery distribution system to your doorstep who involves in the delivery of dairy products daily in morning. It offers various ranges of dairy products like milk, cheese, curd, paneer and also wants to expand its market by increasing product ranges from dairy to bakery. As in Indian metropolitans cities there are many households where women are working in corporate so she carries responsibility of home and office both. So, Indian daily delivery is one who reduce hassle of women and many other commercials by providing doorstep dairy services.

Below is SWOT analysis of DND: ( SWOT Image is attached)

BCS Submission 04 NMO

 Strength:

 

  1. Dairy Products: DND offers a wide range of dairy products which has most usage in the household of Indian culture and it will expand with more and more dairy products.
  2. Daily faster delivery service: In morning milk is provided by delivery boys according to the demand of customer as DND services starts from early in the morning and delivers on time.
  3. Domestic & commercial: As our customer base is not only restricted to domestic households but also it will cover corporate (who has canteen) and commercials like restaurants, tea vendors and many other businesses. So all ranges of customers will be covered in our business.
  4. Less holding cost: As DND does business of perishable products so it has to be preserved before it goes not eatable. But our order is as per customers’ demand so very left commodities which are cancelled is being leftover and also it will be used in next orders, so after all it will reduces holding cost. Fewer inventories with less storage cost.
  5. Strong distribution system: Strong distribution network of delivery system is key factor of success of DND. Timely delivery with no wrong delivery is the main motto behind all the deliveries.
  6. No current competition: As no one in the market who daily specially deliver dairy products to the consumers to doorstep. So DND has a hold on this business and have better experience in this. And DND can be a business leader in this sector in near future.

 

Weakness:

 

  1. Timely delivery: early morning reporting of delivery boys is main concern of DND. As main key persons are Delivery boys, if they are not coming on time then overall delivery schedule will affected and also products are perishable in nature so it is be preserved until it is delivered to destination points. Another thing is new address comes then it must under eyes of delivery boy otherwise product will go in wrong destination and one customer will dissatisfied and business will affected. 
  2. Route optimization:  Many families are under one area and many other are spread across different areas. So making a perfect route in order to save time and fuel to make it a successful delivery is a biggest challenge. And delivery boy has to reach destination point in time from shortest route and make it happen so that next delivery doesn’t hamper.
  3. Perishable products: The more it is in open environment, the more it will spoil product. So it has to be under preservation area or it is to be on hand of consumer. So, if distributor gives order in hand then it must be out for delivery so that cost of holding will get reduced and less inventory and more liquidity in hand.
  4. Miss delivery: chances of miss delivery are address not found and that is due to not known area for delivery boy or wrong address given by consumer in app. So both this things has to be rectifying before our product goes for delivery. If this not done then overall delivery schedule will affected and last consumer will get late delivery.
  5. Storage of leftover inventory: if order gets cancelled or no address found or customer is not home then parcel will come to storage house as it has to be kept under preserved area like in refrigeration so that it doesn’t get spoil, but after all it is under DND and it causes cost to company. So minimum leftover inventor is the challenge for DND.

Opportunity

  1. More metropolitan cities: DND has spread business in Delhi, Bangalore and in Hyderabad. But it has also more opportunities in Mumbai, Kolkata, Ahemedabad, Pune, Surat and in Nashik where more nuclear families reside and more working women are there. So DND has more scope of expanding daily need delivery business.
  2. Cross selling: Currently DND is focusing on dairy products but it can expand it with adding bakery products and eggs. Cross selling is always having an opportunity for any business to enter into in new product range. Adding more and more products definitely have more key partners but overall customer base will also increase.
  3. Bakery products: Busy lifestyles, changing eating habits and western influence has reflected in strong demand for Bread, Toast, Biscuits, Cakes, Pastry. By 2025 it will have almost US $ 13.3 billion market. All these bakery items are more consumed by the Indians who have very less time to prepare breakfast in morning and want some fresh food in morning. So bakery products will have consumer along with dairy products.
  4. 24*7 Delivery: Currently only 3 hours of distribution channel is available by the DND, but this type of channel is already done by local distributors so by doing it daily as well as order and delivery type at any point of time then it can have more opportunity to fetch more customers.

Threats

  1. Local Milk Distributor: Main competitors are local milk distributors from them customers are used to purchase milk from long time. So to grab those customers is very difficult for DND. As customer have trust on their local Dudhwalas and purchase it at any cost because they don’t want to make any compromise on quality side. So to build trust and convenience is both difficult tasks for DND.
  2. Customer dissonance: Late delivery, Wrong product, insufficient quantity, Quality issues all these factors lead to not retention of existing customer and it will ultimately impact the main business.
  3. Adulteration: Cases of adulteration in food delivery system is more, so people get aware when they order food online and when it comes to talk of milk products it is very sensitive case, as it harms more than any other, so mindset of people is a challenge. Also to keep our product to be delivered from adulteration is challenging task as it will impact overall image of DND.
  4. Quality: What is asked should be deliver, this is the thing what customers always want, if they want particular type of butter from particular company then it must be deliver. If asked and expire products or different companies product is given then that customer will have complained and customer retention rate will decrease.
BCS Submission 04 NMO
BCS Submission 04 NMO
BCS Submission 04 NMO
Optional Assignment

Content write-up for promotion with design

Indian Daily need delivery service is emerging start up which has around 4000 active application and focusing on all customers from all generation be it generation X, be it generation Y and be it Millennial. So, overall 360 degree promotion is required to cover the market. And it is essential that this plan should be well implemented and be well promoted so that every customer gets benefit from all the schemes.

Our marketing plan is to give schemes that we will implement in near future to each and every customer and will not restrict to some lucky viewers, as every customer is valuable for our business.

The tag line itself depicts about the delivery of products every day as our business model is about CQAR that is convenience, Quality, Assurance and Reliability. So our marketing plan will be around these 4 forces and marketing will also be based on this.

Marketing on both platforms will be done.

  1. Online mode
  2. Electronic media
  3. Regular or conventional approach

Online mode:

Online platforms like social media, news portals, daily insights portal and blogs are considered for the advertisement of our business. Through this medium we will have major benefit that 24*7 promotions will happen and more and more millennials will cover under social media and news portals.

Short stories:

 As mentioned CAQR is main force where our business lays, so stories that our advertising team will make of around 20 to 30 seconds and it will be uploaded on social media and on youtube advertisement.

Social media posts:

Our social media accounts be it facebook, twitter, instagram will have all the promotion  regarding schemes that our marketing team will implement to increase business.

Memes:

Memes are considered as main shooters to convey any message. Our main instagram page will done promotion through memes those are on recent trend. Also image of our brand will be build according to quality of our memes as like other communities like zomato, dineout, swiggy do promotions of events on platforms.

Promotional offer:

Promotional offers like discounts for new sign ups, refer a friend or buy 2 get 1 free or giving goodies from DND like giving wallet cash or some coupons of restaurants or any.

News portal/Food blogs/Youtube channels:

News portals like Inshorts, Times of india, the hindu and many more will be used as promotion of our brand where a small poster or video will be sufficient to create a branch image. Also some famous blogs be it food blogs, philosophy blogs, fitness blogs are considered for the promotion as these blogs have separate readers and by promoting brand on blog will fetch us a good amount of viewers of our brand.

Contest:

Sometimes events cover more people than an advertisement. A 1 month daily dairy products festival in which participants will get exciting offers through promotion of our application on any media. Customers who take part in this festival and share their experience on blogs of DND, upload stories on application will get goodies from DND. This will keep our customer attached to our brand for long time.

Electronic media:

Conventional TV commercials and Radio advertisements, both electronic media we will consider for the promotion of our brand.

Offline Mode:

Newspapers and magazines both have more readers, so for the promotions of a half page or full page coverage will do to create brand image.

Sources: https://images.app.goo.gl/4t3xJytRLLdP3dSb7, https://images.app.goo.gl/4t3xJytRLLdP3dSb7, https://www.123rf.com/photo_98857767_hand-drawn-sketch-with-basket-with-milk-bottles-.html

  

PicsArt_03-22-07.20.09.jpg ( Design is attached in image section kindly refer that)

 

Organization Tagline

 

"GHAR BEAITHE PAYE DUDH, DAHI AUR PANEER,

KYUNKI AB AAPKI SEWA MEI HAI DND HAR DIN"

Customer convenience & Reliable delivery.

DND is constantly working on convenience to the customers by providing daily delivery of their needs of dairy products. The main products of DND are Milk, Curd, and Paneer and it delivers every day at the doorstep of the customer according to their requirement.

It works on application base so on one click customer can make a schedule of order and DND will deliver order according to that. So customer gets order at home and can have delivery every day.  And tagline is also according to those fundamentals on which DND is lying which is CQAR. And DND is aggressively working on these four forces to attain maximum business from the market.

Business Model Canvas

Business model of DND is delivery service of products. And as discussed products are dairy and bakery products.

DND business has key persons, who handle, all the business, IT people who takes care of technology related issues, Delivery boys who handle deliveries, Dairy and bakeries who provide all the products which are asked by consumers, CRM who manages consumer grievances.

DND business a fully grown business which has a proper vision plan to grow in different sectors and according to that cost structure is made.

Marketing team is working to fetch new businesses from the market for which they will use online and offline channels for promotion and advertisement.

Consumer Relationships Management is one of the crucial department of DND as it takes care of intensive issues of consumers like miss deliveries, quality issue, or wrong product.CRM is actively working on these issues which are raised by consumers and it is aggressively working on reducing this type of issues.

Revenue generation is main part of any business, so main revenue from the payments from consumers is essential to run business successfully.

Below is the Business model canvas of DND LLP. (BMC Image is attched in image section, kindly refer that)

ConclusionAs DND is working on 3 major cities and focusing on more metropolitan cities of India where it can have better opportunity to grow and expand in the newer business. From the SWOT analysis we can find that DND has more opportunity and strength than weakness and threats, and by improving CQAR, DND can overcome on weaknesses. DND’s marketing plan is to penetrate in the new market by going through promotions and exciting offers, and it will drag more customers under the umbrella of DND. DND ensures convenience, quality, assurance and reliable delivery to the customers. DND finance team working on capital funding from various sources and build a revenue model to reduce the cost of capital. DND’s marketing team working on market and production expansion by implementing promotional offers. Also team is active on social media and update all the offers on the social media post. DND IT team constantly working on improving application and it is always ready to approach for the new challenges. and our HR team is working on employee satisfaction by providing a better wages and training. DND is aggressively working in 3 cities and eyes for the new 5 emerging markets and aims for the more new 5 lakh customers across india
Attached File Details

Comments

me

Dr Saroj Kumar Dutta

Very detailed submission , It could have been more precise ..very good effort .

me

Akash Girishchandra Raval

Thank you sir for your feedback, can you throw some light on write up for promotion?







Participant

Akash Girishchandra Raval

Torrent Power LTD., Executive

Candidate of MBA-2019-21 Energy & infrastructure at SPM,PDPU. Worked with Torrent power for 2 years as distribution engineer.