A study on consumer buying behavior of groceries

from online channel i.e., Deep Rooted.

A Summer Internship Report

Submitted To

International Management Institute

Bhubaneswar

In Partial Fulfilment for The Award of

Post Graduate Diploma in Management

By

Gyayak Jain
21PGDM-BHU036
2021-23

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 Acknowledgements

I would take this opportunity to express my heartfelt gratitude to my institute,

International Management Institute, Bhubaneswar for providing such a viable and
integrated learning opportunity through the induction of the Summer Internship Program
of two months in our course curriculum. These two months of learning has enabled me
to invigorate my future perspectives. I would also like to express a sincere gratitude to
Mindscapes Enhance, for giving me this opportunity to shape my learning curve and
bolster my knowledge through practical expedition. My sincere gratitude to the Director
of Mindscapes Enhance Mr. Ranadeb Paul and my corporate guide, Mrs. Deepti Bajpai
for constant support and guidance. I also, express a most profound gratitude to my
esteemed faculty guide Prof. Supriti Mishra, for his indispensable and unadulterated
counsel. His constant support and encouragement have enabled the completion of this
study.

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 Student’s undertaking

I, Gyayak Jain bearing Institute Roll No. 21PGDM-BHU036, declare that the summer
project A study on consumer buying behavior of groceries from online channel i.e., Deep
Rooted, is my original work and completed under the supervision of Mrs. Deepti Bajpai
of Mindscapes Enhance and Prof Supriti Mishra of IMI Bhubaneswar. Further, I also
declare that the report being submitted herewith is free of any textual plagiarism.

Signature:

Date: 18 / 06 / 2022

Place: IMI Bhubaneswar

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 Certificate of Internship

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 Approval of the Faculty Guide

Recommended that the Summer Internship Report on “A study on consumer buying

behavior of groceries from online channel i.e., Deep Rooted” is prepared by Gyayak Jain
under my supervision and guidance be accepted as fulfilling this part of the requirements
for the award of Post Graduate Diploma in Management. To the best of my/ our
knowledge, the contents of this report did not form a basis for the award of any previous
degree/ diploma to anybody else.

Date:

Signature:

Name of the Guide: Prof. Supriti Mishra

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 Index

1 Executive Summary 7

2 Introduction 8

3 SIP Organisation Details 9

4 Client Details 10

5 Objectives 11

6 SWOT Analysis 12-14

7 Porter’s Five Force Analysis 15-16

8 PESTEL Analysis 17-18

9 Competitors Analysis 19-20

10 Research Methodology 21

11 Questions asked from respondents 22

12 Pictorial representation of collected data 23-25

13 Analysis of Frequency Table Data 26

14 Chi Square Tests 27-29

15 Limitations 30

16 Conclusions & Findings 31

17 References 32

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 Executive summary

The company and online grocery super market are introduced in this summer internship
report on "Awareness and Perception of the Consumer." The primary justification for picking
this project was the extensive study's scope. Additionally, it provides an overview of the
brand's product specifications. The organization has also undergone SWOT and PESTEL
analyses, as well as industry analysis using PESTEL and Porter's Five Force Model in the
Fast-Moving Consumer Goods sector. The online grocery sector is incredibly cutthroat.
Consumers constantly want to find high-quality, diverse products at fair prices. However, it
might be difficult for an online grocery business or organization to offer the correct
combination of features in order to draw in and keep clients. Therefore, there must be a
genuine desire to comprehend how consumers view a brand's products in comparison to
those of its rivals. The online supermarket must not only strategy for the present but also for
the future in this climate of rapid change. In modern economy, where competition is fierce
and growing daily, it is exceedingly challenging for Deep Rooted to draw in and keep clients.
Therefore, it is crucial to comprehend how consumers view Deep Rooted in comparison to
its rivals.

The primary source for this study is primary research. Data have been gathered from
primary data. The information was gathered through a standardized questionnaire that was
administered to a sample of consumers. the programmed utilized for statistics in this study.
The goal of this project is to comprehend the fruit and vegetable market potential as well as
the product life cycle. This project is being undertaken to get real-world experience and a
sense of the market dynamics. This project primarily focuses on measuring Deep Rooted
brand awareness.

The study did the research objective full justice and gave me a sense of the market's
potential. This project has been crucial since it has allowed me to more effectively use and
use marketing technologies, which has improved my understanding. This project has proven
to be a significant turning point in terms of putting academic knowledge into practice and
educating me on how consumers view a Deep Rooted.

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 Introduction

To begin with, as a part of the curriculum, a summer internship program was to be

conducted for a period of 60 days. Given a choice, one was allowed to choose the field
in which students were interested. As my interest and curiosity was in Marketing, I
choose to work with a company named Mindscapes Enhance one of the reputed media
marketing in India. It has really been an enriching experience while working as a
Marketing intern with Mindscapes Enhance one of the best media marketing companies
in India, here I did a field work for 60 days and during my field work I used to visit the
societies and meet the senior level employees and these instructions helped me in
getting a real-life exposure to the Marketing sector and closely learn how it works. I
learnt how to communicate and convince, and also helped company in finding High and
low potential societies to do business, my area was to look after perishable business, I
came to know about perishables, its types, how it works, and also interacted with
customers using, learnt what were their perspective toward Deep-rooted and analyses
what was the satisfaction level. It was indeed a great learning experience. Apart from
this, my internship also included analysis of competitor’s product and to find their market
share in the southern region, so a competitive analysis was conducted to know how
company strategies to market and position their product, and to know the satisfaction
level of Deep-rooted and potential opportunities and gaps to work on,

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 SIP Organisation Details

Mindscape enhance ltd is a multi-discipline brand marketing & brand experience

consultancy - that promotes companies across pan India and advises them in various
marketing techniques. Headquartered in Bangalore, the company has a presence &
operations across the country in all key regions & markets.
It has worked with various clients across India and helped companies to reach several
heights. They have worked with red bus, Ixigo, Allen Solly, Incredible India, Deep
Rooted, etc.
Mindscapes Enhance Communications Private Limited, incorporated on 16 Jun, 2011.
It's a private unlisted company and is classified as ‘company limited by shares.
Company's authorized capital stands at Rs 1.0 lakhs and has 100.0% paid-up capital
which is Rs 1.0 lakhs. Mindscapes Enhance Communications Private Limited last annual
general meet (AGM) happened on 15 Jun, 2017. The company last updated its
financials on 31 Mar, 2017 as per Ministry of Corporate Affairs (MCA). Mindscapes
Enhance Communications Private Limited is majorly in Business Services business from
last 11 years and currently, company operations are active. Current board members &
directors are RANADEB PAUL, SUMALI PAUL and DEEPTI BAJPAI. Company is
registered in Bangalore (Karnataka) Registrar Office. Mindscapes Enhance
Communications Private Limited registered address is No 204, Money Chambers No 6,
K H Road, BANGALORE KA 560027 I

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 Client Details

The name Deep Rooted co. comes from Clover, an agri-tech start-up with a rapidly
expanding greenhouse. By fostering trust among them, the Company hopes to strike an
equal balance between farmers and consumers. The company delivers fresh, clean, and
residue-free produce in less than 24 hours and serves a booming $100 billion F&V sector
through its omnichannel presence.

Avinash BR, Arvind M, Gururaj S Rao, and Santhosh Narasipura formed Clover in 2018. The
startup, which has its headquarters in Bangalore, is backed by Accel, Omnivore, Mayfield,
and Alteria Capital.

Avinash BR, the co-founder of Deep Rooted.Co, and Krishi Jagran had a brief interview in
which he spoke on his business.

Fruits and vegetables of the highest calibre, free of contamination, are grown and sold by
Deep Rooted.Co (F&V). In August 2020, we launched the brand in Bangalore and
Hyderabad. We are creating India's largest network of horticulture farmers for F&V by
collaborating with small family farmers. Over 120 acres of farms, largely peri-urban small
landholding farms, are under our management in and around the two cities. By fostering trust
among them, we are also achieving an equal balance between farmers and customers during
this process.

We are a one-stop shop for all a consumer's fruit and vegetable needs with over 200+ F&V in
the catalogue. Customers can place orders by logging in to our website or by downloading
our app, "Deep Rooted." We are also accessible on a few digital sites run by third parties.
We want to make our fresh, spotless, contaminant-free vegetables very accessible to all
types of customers via an omnichannel strategy. We stand apart from typical grocery stores
and e-tailers due to our only focus on fresh produce, which enables us to offer the best value
while enhancing the traceability, accessibility, and availability of fresh and clean product to a
larger ecosystem.

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 Objectives

 To create a Competitive Marketing Analysis. (SWOT, Porter’s Five Force,

PESTLE) which will help the organisation to get a clearer picture while
implementing new strategies.

 To identify the factors that influence the customer to download the application
(Gender, Age, App interface, etc.)

 To evaluate various factors which influence the customer behaviour towards

buying fruits and vegetables online from Deep Rooted.

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 SWOT Analysis

SWOT

Strength Weakness Opportunity Threat

Exotic Range Delivery Time Market Size High

Discounts High Variable Grocery Growth Competition
Convenience Cost Expansion Bigger Players
Minimum order Cross selling Smaller Players
quantity/price Customer
compulsion Retention

Strengths in the SWOT Analysis

 Exotic Range:
Deep Rooted provides exotic fruits, vegetables, and imported foods that are difficult to
find in surrounding retail stores. This offers them an advantage when trying to attract
clients who enjoy purchasing such items.

 Discounts:

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Deep Rooted provides significant rebates on a range of goods. Additionally, they use the
product bundling strategy to increase sales and give clients the biggest discounts
possible. They are therefore a profitable alternative for clients to purchase.

 Convenience:
Deep Rooted provides an alternative to the bother of waiting in mall lines or travelling far
to retail establishments. They deliver the goods right to the customer's door and provide
a variety of payment methods.

Weakness in the SWOT Analysis

 Delivery Time:
Deep Rooted delivers the groceries the next day. Many retailers have started the facility
of home delivery to nearby societies and customers in just few minutes to hours. So
customers prefer this instead of waiting for 24 hours.

 High Variable Cost:

Cost of running many delivery guys, delivery trucks, storage for perishable items,
wastage during transportation makes the business run at a high variable cost. They have
to bleed more money and will take longer to break even.

 Minimum order quantity/price compulsion:

Deep Rooted does not offer home-delivery below a certain set order price limit. This
means that customers would be forced to add a product or two just to avail the service.
This makes them lose customers.

Opportunities in the SWOT Analysis

 Market Size:
The Indian retail market is worth approximately $550 million, with grocery accounting for
60% of this total. As a result, it's a massive market with numerous businesses to
accommodate and customers to satisfy.

 Grocery Growth:
India is the world's sixth largest grocery market. The e-commerce grocery market is
rising at a 19% year on year rate.

 Expansion:

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Many small cities are still underserved by these firms, which Deep Rooted might target
to acquire a first-mover advantage. They can grow their market by expanding to tier 3
cities.

 Cross selling and Value Packaging:

Deep Rooted benefits greatly from cross-selling because it may offer numerous products
by product bundling. It directly affects in increasing their sale by doing this.

Threats in the SWOT Analysis

 High Competition:
It has a tiny presence in terms of cities covered, hence it faces stiff competition from
other startups such as Grofers, PepperTap, Nature's Basket, Zop Now, Aaram Shop,
Mera Grocer, and others which are currently serving more places than Deep Rooted.

 Bigger Players:
Larger players, both financially and physically, have also entered this profitable market.
Amazon and Flipkart have also entered this industry. This could make it difficult for
smaller players like Deep Rooted to compete with them in terms of finances and staff.

 Smaller Players:
Many other localised shops have taken up on this trend and begun offering home
delivery service to neighbouring clients, thereby killing off groups of target customers in
different regions and towns.

 Customer Retention:
Customer retention is really challenging in this type of business. They are more likely to
choose the service provider that gives the largest discounts.

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 Porter’s Five Force Analysis

The bargaining
power of
suppliers
(LOW)

The threat of
The threat of Industry Rivalry substitute
new entrants products or
(HIGH) services
(HIGH)
(HIGH)

The bargaining
power of
customers
(HIGH)

 Competitive Rivalry - High

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 This force examines how intense the competition is in the marketplace. It
considers the number of existing competitors and what each one can do. Rivalry
competition is high when there are just a few businesses selling a product or
service, when the industry is growing and when consumers can easily switch to a
competitor’s offering for little cost. When rivalry competition is high, advertising
and price wars ensue, which can hurt a business’s bottom line. Competition is
very high even many big players like amazon and flipkart are also operating in
the same business for the same pool of customers and many small local level
vendors are also eating up the share of the market.

 The bargaining power of suppliers - Low

It assesses the number of suppliers of raw materials and other resources that are
available. The fewer supplier there are, the more power they have. Businesses
are in a better position when there are multiple suppliers. The deep rooted mostly
sell its own grown products so they are less dependent on the suppliers and can
expect good amount of profits.

 The bargaining power of customers – High

This force examines the power of the consumer, and their effect on pricing and
quality. Consumers have more power when there are fewer of them, but when
there are plenty of sellers and switching is simple. When consumers purchase
things in small volumes and the seller's product differs significantly from that of its
competitors, buying power is low. Customers' bargaining power is high in this
market because there are numerous firms and they may simply switch between
competitors based on their offerings and discounts.

 The threat of new entrants – High

This force takes into account how simple or challenging it is for rivals to enter the
market. The risk of a market share loss for an established business increases
when new competitors find it simpler to enter the market. Absolute cost
advantages, access to inputs, economies of scale, and strong brand identity are
a few of the entry-level barriers. Due to the huge development potential of this
market and the emergence of new competitors both locally and across all of
India, there is a high risk of entry.

 The threat of substitute products or services - High

This force studies how easy it is for consumers to switch from a business’s
product or service to that of a competitor. It examines the number of competitors,
how their prices and quality compare to the business being examined, and how
much of a profit those competitors are earning, which would determine if they can
lower their costs even more. So, there are many competitors in same category

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 competing for the same set of customers. So, it has a very high threat of
substitutes as the consumer will be easily able to switch in such an environment.

PESTEL Analysis

 Political factors
India, one of the world's biggest democracies, has a federal system of government. The
actions of the government, the personal interests of politicians, and the philosophies of
various political parties all have a significant impact on the political environment.
Additionally, the government supports free enterprise and influences privatisation
through a number of initiatives. Through privatisation, the nation has made many
initiatives to lessen governmental or political meddling in businesses, start-ups, and
corporate activities in general. This undoubtedly contributed to Deep Rooted's expansion
and smooth operation.

 Economic factors:
These elements influence a company's profitability and aid in setting both short- and
long-term objectives. Businesses can expect to grow as a result of the nation's rising
GDP. India's free industrial policies have enabled significant foreign investment in the
country since the economic reform in 1991, particularly following the founding of FIBP.
The economy has seen a boost as a result. Deep Rooted has benefited from the
taxation policy of the Indian government and all of these other aspects.

 Social factors:
These elements significantly affect how people behave and make purchases in different
countries, which has a significant impact on businesses. The population of the nation
helps the businesses. Since the majority of the population is employed, it is simpler for
businesses to find labourers and negotiate fair labour rates. Another reason why
businesses select this nation for business expansion is the size of its domestic market.
The reasons for this include an improved standard of living and changing lifestyles.
Therefore, these elements have influenced how Deep Rooted manages its business in
India.

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  Technological Factors:
The development of technology is crucial to the expansion of the economy. Technology
awareness, innovation, and automation have an impact on corporate operations. It
affects consumer communication, distribution, and production. The IT sector in India is
expanding steadily. The nation boasts one of the most developed IT sectors, which
guarantees ongoing software development. These technological advancements have
made it easier for online-based businesses like Deep Rooted to operate.

 Legal Aspects
Recent regulatory reforms in India, including those affecting recycling, raising the
minimum wage, and prohibiting discrimination against people with disabilities, have had
a noticeable impact on corporate operations. Therefore, Deep Rooted must follow the
regulations and rules that are unique to each state or location in which they operate.

 Environmental Factors
When it comes to environment, the quality of air in India has been adversely affected by
industrialization and urbanization, also resulting in health problems. As a result, there
have been establishments of environmental pressure groups, noise controls, and
regulations on waste control and disposal. So Deep Rooted must introduce the plan for
sustainability like recycling, better waste management system, and more as a part of
CSR Activity and earn its goodwill.

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 Competitors Analysis

Competitive analysis helps identify the prominent market players, determine what
strategies they use to succeed, and identify resources your company could use to
dominate the market. The goal of a competitor analysis is to equip you with insights to
inform your product development and marketing decisions

The four competitors which have been selected for the analysis are Dunzo, Bigbasket,
Fraazo Fresh to Home. These four brands are also involved in a similar business as
Deep Rooted.

1. Dunzo: -

In major cities, the Indian company Dunzo provides food and other needs, fresh
produce and meat, pet supplies, food, and medications. Additionally, it offers a
different service for picking up and delivering packages inside the same city.
Eight Indian cities, including Bangalore, Delhi, Gurgaon, Pune, Chennai, Jaipur,
Mumbai, and Hyderabad, currently provide Dunzo's delivery services. In
Gurgaon, the business also runs a bike taxi service. Ankur Agarwal, Dalvir Suri,
Mukund Jha, and Kabeer Biswas created Dunzo in 2014; its headquarters are in
Bangalore. Dunzo has taken part in 16 fundraising rounds since it was launched
in 2014. Dunzo has raised $406.8M in total. Dunzo's most recent round of
fundraising, totaling $240.0M, was in January 2022.

2. Bigbasket:-

Bigbasket.com: What is it? Indian online food and grocery retailer bigbasket.com
(Innovative Retail Concepts Private Limited) is the biggest. We have more than
18,000 products in our inventory, representing more than 1000 companies, so
you may find whatever you need. Everything from fresh fruits and vegetables,
rice and dals, spices and seasonings, beverages, personal care items, and meats
are available in our store. Choose from a variety of selections in each area that
have been carefully chosen to help you locate the highest quality products at the
most affordable costs. Anywhere in Bangalore, Hyderabad, Mumbai, Pune,
Chennai, Delhi, Noida, Mysore, Coimbatore, Vijayawada-Guntur, Kolkata,
Ahmedabad-Gandhinagar, Lucknow-Kanpur, Gurgaon, Vadodara,
Visakhapatnam, Surat, Nagpur, Patna, Indore, and Chandigarh Tricity, your order
will be delivered right to your doorstep during the time slot you choose.

3. Fraazo: -

Creator of a platform for the direct delivery of groceries from the farm, including
fresh fruits and vegetables. Through a network of micro-fulfilment stores, the
business delivers fresh groceries right to consumers' homes using a farm-to-fork
business model in which it owns the whole back-end supply chain, beginning with

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 farmers. Fraazo uses a farm to fork business strategy, owning the full back-end
supply chain and selling consumer’s fresh produce. It distributes about 2,000
tonnes of fresh food per month to Mumbai via its app and platform. Through a
network of micro-fulfilment stores, Fraazo conducts business.

4. Fresh to Home: -

An online grocery store called Fresh to Home offers its customers a selection of
meat and fish. The variety of products available on the internet includes fish,
poultry, mutton, steaks, and fillet. Fish are classified as freshwater, marine, and
shellfish. Additionally, it enables vendors to provide the website with their meat
and fish. Owner of an online meat and grocery delivery service whose goal is to
provide customers with wholesome, fresh meals. The business's online store
provides customers with access to a platform that lists chemical- and
preservative-free vegetables, fish, seafood, meat, poultry, steaks, fillets, and
other marinated foods. It also offers delivery services, allowing customers to have
the food brought to their door at an affordable price.

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 Research Methodology

 My research goal is to conduct a descriptive study.

 The data is gathered from primary sources. Through interviews and
questionnaires, primary data was collected directly from a pool of customers. To
conduct an appropriate analysis, independent variables are selected.
 The Sample Size is 114.
 The southern region of India is picked for customer research because of the fact
that the organization is present in southern region only.
 Analysis tools such as SPSS is used to carry out the research study.

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 Questions asked from respondents for conducting the research

1. Age.
 18-25
 26-35
 36-45
 46-55
 56 & above

2. Gender.
 Male
 Female

3. Do you like to buy fruits & vegetables online?

 Yes
 No

4. How is the quality of product when purchased from Deep Rooted?

 Very good
 Good
 Average
 Not good
 Bad

5. Did you find Deep Rooted app easy to use?

 Very easy
 Easy
 Neutral
 Difficult

6. Would you recommend others to purchase products from Deep Rooted?

 Yes
 No

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 Pictorial representation of collected data on the basis of data
collected

1.Age (in years)

56 & Above
2%

46-55 18-25
13% 15%

36-45
33% 26-35
37%

18-25 26-35 36-45 46-55 56 & Above

2.Gender

48.20%
51.80%

Male (55) Female (59)

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 3.Do you like to buy fruits & vegetables online?

30.70%

69.30%

Yes (79) No (35)

4.The quality of product when purchased from

Deep Rooted?
2.60%

7.90%
17.50%

23.70%

48.20%

Very Good (20) Good (55) Average (27) Not Good (9) Bad (3)

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 5.Did you find Deep Rooted app easy to use?

7%

25%

25%

43%

Very Easy (29) Easy (49) Neutral (28) Difficult (8)

6.Would you recommend others to purchase

products from Deep Rooted?

26.30%

73.70%

Yes (84) No (30)

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 Analysis of these Frequency Table Data

1. The age of the respondents lies mostly in the age bracket of 18- 45. Very less
percentage of respondents lies above 46 i.e., 15% only. So it shows that younger
are showing more interest in these kind of services than the older people so, the
company must have to take care of this age segment.

2. The gender ratio is pretty close but the females are slightly more in numbers than
the males. It may be due to the fact female often cooks in their homes. So
females should be given more focus when compared to male.

3. The majority of the respondents have told that they like to buy fruits and
vegetables online. So, these should be handled with due care so they may
remain loyal to such services.

4. The major portion of the respondents gives a positive reaction to products offered
by the deep rooted. So, the must continue on these lines and try to know the
cause of unsatisfied group.

5. The majority of respondents agrees to the fact that the app interface is easy to
use. So, the company should follow the same interface by implementing some
minor changes by knowing it from the population who are facing issue while using
the same.

6. The parameter of existing customers referring it to others will help the Deep
Rooted to increase its customer base rapidly. It is a good sign for the Deep
Rooted.

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 Chi Square Tests

Hypothesis Test 1: -
Hypothesis test to find out the relationship between likeliness to buy the product online
and recommending it to others.

Null Hypothesis (H0)- There is no relationship between likeliness to buy the product
online and recommending it to others
Alternative Hypothesis (H1)- There is a relationship between likeliness to buy the
product online and recommending it to others

Analysis & Findings: -

As the P value is 0.000 which is less than 0.05. hence, the null Hypothesis is
rejected and the model is statistically significant. Therefore, there is a
relationship between likeliness to buy the product online and
recommending it to others.

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 Chi Square Tests

Hypothesis Test 2: -
Hypothesis test to find out the relationship between likeliness to buy the product online
and Age.

Null Hypothesis (H0)- There is no relationship between likeliness to buy the product
online and Age.

Alternative Hypothesis (H1)- There is relationship between likeliness to buy the product
online and Age.

Analysis & Findings: -

As the P value is 0.877 which is greater than 0.05. hence, the null Hypothesis is
accepted and the model is statistically insignificant. Therefore, there is no
relationship between likeliness to buy the product online and Age.

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 Chi Square Tests

Hypothesis Test 3: -
Hypothesis test to find out the relationship between accessing the app easily and Age.

Null Hypothesis (H0)- There is no relationship between accessing the app easily and
Age
Alternative Hypothesis (H1)- There is relationship between accessing the app easily and
Age.

Analysis & Findings: -

As the P value is 0.000 which is less than 0.05. hence, the null Hypothesis is
rejected and the model is statistically significant. Therefore there is a relationship
between Accessing the app easily and Age.

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 Limitations

 Geographically area limited to south region only.

 The price of the fruits and vegetables is expensive as compare to market.
 Measuring and interpreting the company’s customer satisfaction was also a
difficulty.

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 Conclusions & Findings

Based on the respondent’s answers and the performance of chi-square test the
company must implement these steps: -

 The company must incentivise their customers to spread the word of mouth as
there is a positive relationship between recommending it to others and buying
online.

 The company must focus on each and every age group as there is no
relationship between Buying the product online and Age.

 There is relationship between accessing the app easily and Age. So the company
must have some additional features in the app like voice assistant so the old age
group people can access it easily.

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 References

1. https://deep-rooted.co/seed-to-home

2. https://deep-rooted.co/

3. https://krishijagran.com/interviews/in-conversation-with-co-founder-
of-deep-rootedco/

4. https://economictimes.indiatimes.com/company/mindscapes-
enhance-communications-private-limited/U74900KA2011PTC059165

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