Team Name: Conexus

College Name: SCMHRD

Journey Map Step wise strategy:
• Get grocery stores in the
loop
• Crowdsourcing
Product Categorisation:
• Technological changes in
• Frequency of purchase
the existing Flipkart app
• Value proposition
• Implement Go-To-Market
• Degree of differentiation
strategy
• Product diversity
• Agile implementation

Benchmarking:
Target Consumer • Ocado
Products offered:
Segments/Profile: • Tesco
• Grocery
• Best • Amazon
• Farm produce
• Spender • Grofers
• Poultry products and fish
• Average • BigBasket
• Dairy products
• Frequent • Walmart
• Bread
• Uncertain • Snapdeal
Hyperlocal Model
Starting point Last Storage pickup
location of
Mile Supplier

Pickup at
Place of Delivery distribution centre
or shop
Home Deliveries
Technology
And
Analytics
Platform
Flipkart Services Flipkart Self Pick Flipkart Express Flipkart Daily Flipkart Subscribe

Instant Delivery Daily Morning

Customer can Slotted delivery in
within 30 mins. Delivery of
Specific pick up his order
between 6-9 pm
Extra premium
Window of 3
hours
products like Milk,
charges Bread, Eggs.
Supply Chain Model Explained
Services
Flipkart Subscribe
• This includes delivery of products like
Milk, Bread, eggs on daily basis ,
• Customer can subscribe for these
items on daily basis
Flipkart Daily
• 1. Same day delivery from
• Delivery in time slots of 3
hours window
• customer can set reordering
frequency for monthly items
• 2. Pick up from store from 6-9 pm
Flipkart Express
• Deliveries done within 30 mins of order
placements
• Premium is charged because of high cost
Details
Partner Selection Strategy
• Find a vendor for one area
• vendor has 100% ownership of inventory
• promise to consume more than 75% of
inventory
• He will get half of the profit margin
• Promise to give high volume sale and high
discounts from suppliers
Pricing Strategy
• Low Cost for Flipkart Subscribe
• Moderate cost for Flipkart Daily
• High cost for Flipkart Express
• No extra charges for pick up
Delivery Fleet
• 3 shifts of 6 hours
• From 6 am to 12 am
• Hiring based on gig economy
concept
IT System
• Leverages Flipkart’s Existing Technological
capabilities
• It connects Vendors with customers and delivery
boys.
• Optimises the delivery route for Slotted delivery
• Helps vendor in managing and picking the
inventory
• Gives customer reminder to buy products based
on past purchases
• Divides customers in various segments to give
customised offers to attract him
• helps vendor to order inventory according to past
local demand
Offers and Promotions
• Initial launch with express delivery
• Discount on long term subscription
Financial Analysis
Target Market Assumptions
Representative city Chosen Pune Revenue Share model with Retailers Assumptions
Population density (per sq km) 5600 secondary research indicates on an
Family density (per sq km) 1400 Family size of 4 Average margin on products 12% average the margin is 12%
Assuming 5% of all families in a Half of the margin of the retailer will be
Orders in a week (per sq km) 70 sq km use the service Margin share demanded by Flipkart 6% demanded by Flipkart
Area of city (sq km) 331 Assuming Pune Target Average Merchandise Value 400 Excludes Delivery cost of INR40
Assuming we divide Pune in 10 Yearly Gross merchandise value 48,19,36,000
Number of zones 10 zones Revenue of Flipkart 2,89,16,160
Area of a zone 33.1
Order in a zone per week 2317 Income Statement
Total revenue 7,71,09,760
Orders in a year per zone 1,20,484 Delivery charges 4,81,93,600
Orders in a year in Pune 12,04,840 Margin share agreement 2,89,16,160
INR, for express delivery, order
Cost of delivery per order 40 reaches within 30 minutes Expenses 4,76,64,000
Delivery charges per year (INR) 4,81,93,600 Delivery fleet payment 4,76,64,000
Technologies -
Delivery Cost estimates
Deliveries done per day per boy 15 EBITDA 2,94,45,760
Deliveries done per zone 331 D&A -
Number of delivery boys in a EBIT 2,94,45,760
zone 22
Tax 88,33,728
Number of delivery boys in a city 221
Current Tax@30% 88,33,728
Avg. salaries(fuel+incentives) INR 18,000
(Net) Deferred Tax -
Yearly total salaries 4,76,64,000
PAT 2,06,12,032
Future Scope & Scalability
Phase Stages 1 2 3 4
Year 2020E 2021E 2022E 2023E

Population
serviced(in Mn) 3.31 19.6 35.6 48.1
Population
serviced 1x 6x 11x 15x
Growth % 492% 82% 35% Phase-wise expansion plan

• We can expect exponential growth in the next few years as newer cities are added to the service
• We can reach Total Gross Merchandise Value upwards of 700Crs resulting in a Profit after tax of 30Crs by 2023
• The Hyperlocal business shares the low margin similarity with a traditional retail setup but is asset light in
nature which makes it an interesting proposition to be in

• Future launch of private label goods for better Margins