Introduction - Unni Kailas C V

Introduction

Good afternoon all,

In most developing nations, the highest contribution to the GDP comes

from the unorganized sector i.e. the businesses that aren't registered and
pay taxes. In India, the unorganized sector contributes a larger part to
the GDP and hires almost 80% of the workforce.

The street vendors that we see in our neighborhoods, they haven’t

graduated from any business school or training related to business skills,
yet they manage to run their tiny businesses and also expand them in
their locality.

They can work with very less resource. A street vendor doesn’t need any
PC, files, printouts or even basic office setup to sell his product.
Salesman should be ready to work with least resources.

Likewise there are lot of things that we can observe and study from these
vendors.

In our business school, we have been studied many concepts regarding

marketing management, hr and finance but from the streets of India we
can get lot of examples which can contribute to concepts of marketing,
operations , hr etc.
So in this session, we are trying to connect some of those theoretical
concepts with practical ones by showing some real life examples from the
streets.

Next slide

Why this topic / Significance of unorganized sector

The unorganised sector constitutes largest portion of India’s economy in

terms of value addition, savings, investments etc. The share of organised
sector is around 12-14 percent in our national income while that of
unorganised sector is more than 30 percent.

The unorganised forms of organisations are major players in such

activities as manufacturing, construction, transport, trade, hotels and
restaurants, and business and personal services.

The informal sector plays a significant role in the economy in terms of

employment opportunities and poverty eradication. This sector generates
income-earning opportunities for a large number of people. In India, a
large section of the total workforce is still in the informal sector, which
contributes a sizeable portion of the country's net domestic product.

Thus the unorganised sector has a crucial role in our economy in terms of
employment and its contribution to the National Domestic Product,
savings and capital formation.
Now, let's get into the streets….
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Adaptation concept - Jefry V Joseph

The management lessons learned from a tea stall vendors are -

1) Product – A great product with a great experience is what it wins. Make

the customers attracted towards the product. Anybody can make tea at
home but if we experiment with different ingredients like ginger, saffron
flavoured tea then it would have a different value and we could attract more
customers towards us.

2) Know your Customer well and serve them well – We should know
the customer well. Once the customer comes to the tea stall if the tea is good
there are chances that he might visit the stall frequently so we must know
the customers preference and tastes.

3) A great product creates its own community : A good product or

service creates its own following. And can be a great leveler. At the tea-
stall every Sunday, you’d find people coming in luxury cars, in two
wheelers, and on foot. To avail of the same product. For the short
period of time they were there, social differences would be forgotten,
and they would all be members of the same community – lovers of the
tea stall.

4) Stay true to your brand : The tea stall stood for a few things. Modest,
humble tea at great taste and prices. Even after it started making more
money, it didn’t bother to convert itself into a fancy restaurant of sorts.
 Because it didn’t want to lose the very essence which was a crowd-
puller in the first place.

(next slide)

Next we will be discussing Prafull Billore and how he increased the value of
his brand. He is the founder of a tea stall known as MBA Chai wala.

· He is an MBA drop out who started a tea stall in Ahmedabad. The

guy who didn’t make a tea for himself at home had the courage to
start a tea stall. On the first day he didn’t have any customers.

· So he started to go to the customers with his tea and he started

getting many sales and he got many contacts because most of the
customers were interested in hearing his life story.

· Then he thought that the customers should not only come for
having tea but this should be a platform for interaction among them.
So he placed a white board in front of his tea stall and if anyone is
looking for jobs they can write in the board and if any other
customers are looking to hire people can connect. So this is a
newspaper article taken from Deccan Chronicle.

· He had the ability to convert an idea into various opportunities.

So in this way his business expanded and the MBA Chaiwala has
become one of the most popular tea stall in India.

Video link -
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Smart Planning concept - Anjana S

For any business, big or small planning is the most important factor. Business
plans include information that helps to improve your business, through market
analysis, competitive analysis, customer segmentation etc. Proper planning
helps in better allocation of time and resources. These are some of the planning
lessons we can take from the street vendors-
1. The time and location of business-
The vendor who is seen selling chai in the morning near places where you go for
jogging, might be seen in the evening near parks selling icecream. The stalls will
be located near areas which are easily accessible to pedestrians, near popular
landmarks, tourist spots and near IT hubs etc. so as to attract more people. Also
most of the sales happens during evening and night time.
2. Customer Convenience- is another important factor. There are movable
stalls that provides you service at your home, like we all know vegetables
and fruit sellers that regularly comes to your home on a weekly basis.
3. Unique and different- what makes your product stand out is how unique
and differentiated it is when compared to other similar products.
Customers prefer to get unique products at affordable rates.
4. Customization- is another factor. The customers' needs and preferences
are met through smart planning.
5. Economical - on a daily basis, people naturally gets attracted to low priced
affordable products.

(next slide)
This concepts can be analysed through an example. This is man in Mumbai, who
has been selling pizza dosa for 25 years.. He sells his product near parks and IT
hubs during evening and night and at other times he rides his cycle through
housing areas and streets. This way he is covering the concepts of time and
location and customer convenience. The man is combining an Italian dish, the
pizza with Indian dosa thereby making it unique and it is served for Rs 100
which is affordable. Also the pizza dosa is customised as per the customers
preference of taste.

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Dabbawala Concept - Kartika B Nair

Introduction

A Dabbawala sometimes called as tiffin-wallahs, is a person in the Mumbai

City whose job is to carry and deliver freshly made food from home in lunch
boxes to office workers. There are about 5000 employees in number and
delivers approximately 2,00,000 tiffin boxes every day.

(next slide)

Journey of Dabbawalas.

The day of a dabbawalla starts at around 9:30 am where they visit the
residence or the caterers and collect the tiffin’s and gather them at Anderi
railway station.

At 10.25 am they start their journey in the local train towards their destination
station.
At 11.20am the tiffins are unloaded and sorted at the destination station itself.

At around 12.30 pm the tiffins are delivered to its customers and empty tiffin’s
are collected back at around 1.15pm.

Then the journey of the empty Dabbs starts at around 1.15 pm. The Dabbawalas
with the empty tiffin’s travel to the destination station and reach at about
2.50pm and empty dabbs are returned at 3.30pm.

(next slide)

Coding system
We have already learned in business communication that the sender encodes
the message and the receiver decodes the message. Similarly in Mumbai
Dabbawala concept the Sender(Dabbawala) will collect homely food from
homes and they encode it at a particular location and from there they decode it
and again they will do the process of encoding and will send it to the next
point. This process continues and in this logic they are moving.
The Mumbai dabbawalas followed an accurate coding system to avoid any
mistakes involving interchange of lunch boxes, that is, wrong Tiffin boxes
reaching the customer.

As given in the Diagram, the Coding system can be explained as follows:

VLP: a suburb in Mumbai. This denotes the residential station

9E12: Code for Dabbawalas at destination.

12: Floor Number

E: Code for Dabbawala at residential station

3: Code for Dabbawala at Destination station.

(next slide)

Six Sigma is a process that helps to focus on developing and delivering perfect
products and services by achieving “zero defects” as possible.
There is no chance that Dabbawalas would make a mistake. Through their
proper coding system, they are able to deliver the tiffins to the right customer
at the right time, thereby satisfying the six sigma concept. The error rate is 1 in
16 million transactions which is better than the configuration of the six sigma
concept.
The Dabbawallas use minimal investment in technology. They do not have a
head office; they have no managers to manage them. In this era of Wi-Fi and
high end technology the organization till date believe in simplicity. All the
tiffins are picked and carried in bicycle, handcarts and local trains. Except the
local trains every step is handled manually and no technology is involved.
Depending on the distance to be travelled, the Dabbawalas charge a minimal
amount between 800 to 1000 Rs per month for their service.

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Zero waste Management Concept - Irein

Why was it so hard for everyone to reuse and recycle???

This is a big question we need to ask everyon e.
In the initial days of the lockdown,We were all shocked to see the amount of
waste being generated.The real waste was the packaging waste which mainly
includes plastic.So in order to reduce that waste we should practice zero waste
management concept from the street vendors of india.They practice Eco-
friendly packaging.
Now we can see a simple example of serving fruits in fruit shell:
● A cafe in Bengaluru is now India’s first zero-waste juice bar.
● Eat Raja, a cafe located in Bengaluru’s Malleshwaram does not serve juice in
plastic cups or straws. Instead, you will be served your refreshing beverage
in fruit shells with straws made of banana leaves.
● Anand Raaj, the man behind the zero-waste juice bar was a successful radio
jockey, who quit his job to take over his father’s old juice shop. He
transformed it into a zero-waste venture.
● The rest of the scraps from fruits go to making compost or are fed to cows.
So this idea to serve fruits in fruit shell was followed by several juice shops.

(next slide)

Now we can see some other common packaging in the streets of India:

1.Leaf Packaging :Banana leaves are 100% environmentally-friendly and sustainable,they

degrade just like any other plant matter once they've been discarded.

2.Glass packaging:Glass containers are not usually treated with chemicals for durability
which makes them excellent for the recycling process.
3.Metal Packaging:Foods filled in metal packaging do not lose their nourishing
properties and keep their original taste for long.Metal packaging waste is collected and,
after automatic separation from other waste materials, is ultimately returned to the metal
manufacturers for re-melting and it can be reused.

4.Cloth packaging:Due to the fact that the cloth bags are not transparent; you
can store and carry food and beverages, spare shoes, office supplies and all
your personal belongings.Most importantly, cloth bags are nature friendly and
can be recycled.

5.CornStarch:Corn starch is made from fermented sugars, usually from

cornstarch. If disposed of correctly, packaging material made from cornstarch
will break down into carbon dioxide and water within several months.

6.Edible cups:An edible cup is simply defined as a thin continuous layer of

edible material formed on, placed on, or between the foods or food
components.The package is an integral part of the food, which can be eaten as
a part of the whole food product.

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Business lessons in festival or celebration seasons

A beautiful element that binds a vast nation like India is its diverse
festivals celebrated with enthusiasm throughout the year. It is a fact
that amidst festivities people are willing to spend much more than
they would on usual days.

(next slide)

Normally in August we see a lot of street vendors with national flags,

caps with tricolour in the week of Independence Day. But after Aug
15th it totally disappeared. Then during Navaratri and Durga poja in
North Indian Street were with many sweet selling street vendors and
painters who painting Durga idols and selling it. Usually dress shops
were not open at the night time and they only sold normal dress
materials. But during Navaratri one of the specialties is Navaratri
night market. With lots of multicolored dresses. And during
December many of the street vendors were selling Christmas face
masks, caps, x mas-new year cards in the streets. During the month
of February many of the street vendors will be selling small gifts,
cards and amazing handicrafts for Valentine’s day.

(Next Slide )

During Holi most of the street vendors are selling packets of colours
and there are some shops for holi special bhang. In Kerala during
Vishu many of the children sell Kanikonna and crackers in the
streets through bicycles. There is a street in Mumbai called
Mohammad Ali road. It’s known as the Iftar heaven of India. During
Ramadan the shops in this road are opened at 3 am with a variety of
foods.So, while analysing changes in the streets during festival and
celebrations. We get some of the business lessons such as Street
vendors are changing their products according to the demand of the
current time. They are pre-planned about the coming festivals and
preparing for the special products. They set a target and try to their
maximum level of convincing power towards the customer. And they
are focused on their customers. There are lots of walking vendors,
they know where the places they have to choose for getting their
targeted customers.

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Afnan Afsal-Hard core sales

We would like to raise a question in front of you...

Consider yourself as marketing and sales executives how much time is

needed to convince a customer to buy your product…

5 minutes??? 10 minutes???

Well here we are showing an example of sales person who are having one
minute or sometimes less than that to convince the customers…

(next slide)

Yes you can see them in traffic signals..

When stuck in traffic, there are tons of street vendors who sell a variety
of products i.e. car shade, phone holder, toys.. etc…………….they display
the hard core sales technique. Street vendors don’t just wait for
customers to come to their store. They take their store and goes towards
the customer. They know on which locations there is the most traffic and
take their goods to sell to all those people that are stuck and don’t have a
lot of other options.

· Hard core sales is a technique by which we are going straight in to

the point and start to try to sell your product without any skill, and you
are valuing or evaluating your customer’s needs. It is simply telling your
prospective buyer that he should buy your product. It is designed to get a
consumer to purchase a good or service in the short-term, rather than
evaluate his or her options and potentially decide to wait on the
purchase.

This is a technique which cannot be easily done by organized sector but

for them it is their necessity and matter of survival. They don’t just wait
for the customers. They Know where the potential market is and how to
cater them.

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Conclusion - Arsha C P
● Approximately 30% of India's GDP is contributed by this unorganized
market.
● This unorganized industry employs close to 80% of our workforce.
● Hence there are lots of things that we can adopt from the streets of India.
● Such as change management, for example a Man who sells holi color
powder won’t sell the same thing continuously over a year. He will change
that into flowers when the onam festival comes, and then to crackers when
Vishu comes, then to Indian flag when Independence day comes.
● Likewise Change occurs continuously in his Business in a super fast
manner. Which we can’t see in an organized firm. They took at least 5-7
years to make a change.
● Hence the distribution of wealth in the informal sector is far more
equitable than the formal sector.
● Certain Slots has to be reserved, for example before Christmas We can't
launch anything, only the related products.
● All these are happening without any software, planning division and
committees.
● The potential that we think we have to be great managers, great strategies,
great leaders. It must be first tried and implemented in India because any
idea that works in India creates an orbit shift.