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    Pramod Shendige
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    25 views21 pages

    Dunzo Case Study

    Uploaded by

    Pramod Shendige

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 21
    THE PRODUCT FOLKS INCREASING A.O.V. IN DUNZO ACase study eh About Dunzo is @ Bangalore based, hyperiocal on demand logistics marketplace. tt primarily owns the discovery, logistics & payments in the value chain. Started off as a concierge app, Dunzo Is backed by venture partners such as Tiger Global, Accel inci, Matrix Partners India ete. Breakdown ‘LDunzo Dally : Operates in the cegment with TAM valued at over $48n 2.Dunzo for Business : Caters to Businesses & HoReCa Segment with TAM valued at over $22 Bn 2.Dunzo Conelerge Funding & Financials '$ 700 Mn Series E Competitors Be= Sem. Highlights operational Dynamics | F¥20, the cach burn wat $46MN. Which implies in aggregate, Dunzo spent $13 toeain $1 EBITDA negative IX of the revenue ‘To become a S108N business it needs SIEN revenue "BN orders (28HN/day) Assuming 10 deivrie/partner/ay -> 280K cdsivary partners challenges Mower AOV 2.Daep cecounting to incentivize purchase 3.cancetotion/Retuis -20% ‘4.loner fet utilation Footprint ‘order Flow vores tne ers Poet} eee ee) Cee ered Peery Neer ea Coad ere ores Highlights operational ynatnice Unlike ride hailing, instant delivery start-ups, are vertically integrated ‘and have neighbourhood as the key atomic unit Each fulfillment center, usually serves 11.5 miles given ~19 minute delivery window. In case of Dunzo, its contribution margin is positive in several neighbourhoods of Bengaluru with Mumbai and Chennai, following a similar trajectory. Apart from this, Dunzo has built @ powerful flywheel for, customer acquisition Lit has higher LTV : CAC .lower CAC : Added 700K users through WOM b.Has higher retention ~80% 2.High order frequency from power users 3.0ver 70% purchases are from repeat users Highlights Consumption pattern across geographies Dunzo operates in 7 cities, namely Bangalore 2.Pune 3.Gurgaon 4 Hyderabad 5.velhi 6.chennai 7.Mumbai However the consumption pattern varies, a lot across geographies. = tin. ‘2K pYf?7 User Persona Identifying Ideal Customer Persona In case of Dunzo, digital age is a much better indication of consumer intent than the classical socio - demographic segmentation. ee Cass aa Consumer behaviour and spending patterns tend to shift with income rise Elite | Affluent tite and AMiuent segments tend to have higher cigposebie income. The purchase requeney is higher and is eonvenience driven, ‘This make them ideal customer persona for ABV ner Aspirers | Next Bilion ‘Aspire and west eions spend clove to 36x of thei income on grocetiee tend to have ower dispoeable income. The purchase frequency slower and User Persona Discovering personas, not creating them. ® ra 4 ae User Needs maveruagerenency ser Story hoogernoner es ® a The Product Folks Problem Statement Dunzo Dally is the grocery delivery business of Dunzo. Try to devise some product strategies/features or growth campaigns that will help Dunzo increase its Average Order Value ~ J The Product Folks Problem Identification Opportunities Linear User Flow Upselling Opportunity Focus on Product Dis Cross selling Opportunity vee eit on ail com \rerogeg bude on ine enc oooe lng e Purchase Profiling Product Substitution Opportunities The Product Folks Solution Mapping KPIs to Improve Product Discovery Margin Contribution Product Relevance Purchate Profling seetlon Duration Net Margin Contribution Bounce Rate etal Page views # Bundled Search Conversions cross sell Conversions CcSAT Scorer 4 substitutions Product Alfinity Product Relationship Profiling CTR Context Specific Search Improving Product Discovery on Dunzo Search is one of the key customer touchpoints responsible for driving product discovery on Dunzo. The current implementation, fails to account for differences in user intent and fails to align with the user's needs Hence, despite having radically different needs throughout the user journey, the search experience remains same throughout the app improving product discovery atfects top of the Funnel and could yield higher basket size. Context Specific Search Context aware recommendation driving product discovery Cptimias for impulee Aecount or recent brea ying purchases, During is stage, he Core ‘opens up avenues tor Divers ave Novety coe eating, Product Discovery ———+ Product Follow p+ Closing Search. Context Specific Search Resolving friction during User Journey At present the Dunzo caters with 3000 - 4000 skus. Due to lack of product availability, consumers are nudged to switch to Dunzo Concierge. The migration is usually manual and user is forced to abandon his current orders on Dunzo Daily Due to higher friction, « sizeable portion of the users look for viable alternatives within Dunzo's catalog by performing repeated search queries. Context Specific Search Evolving product substitution ‘The current iteration makes the product discovery accessible to users and maintains the state of flow. It enables users to discover alternatives within the Dunzo catalogue. The feature also enables to discover alternatives when the current search don't yield relevant results. Product Upselling Exploring avenues for direct upselling can narenconoton Upselling encourages customers to switch to a product with a higher margin contribution Furthermore, margins tend to vary a lot with-in oe products in same category. vor By recommending products from higher margit mueed mes bracket, Dunzo could improve it's bottom line despite wcanmarn _ nN keeping basket size constant.

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