Q1.

Identify any product or service that you would like to introduce in the
market. Why do you think this product or service will work (support your
case with facts & figures from primary/secondary data). What would be your
order winner & order qualifier attributes?
❖ We started a grocery delivery service known as Kirana express. We developed an app
called Kirana express. As grocery delivery services are becoming increasingly popular,
there are a number of reasons why. Here are a few:
➢ Convenience: Grocery delivery services save people time and effort. They can order
their groceries online or through an app and have them delivered to their door at a time
that is convenient for them. This is especially appealing to people with busy lifestyles,
such as working parents or seniors.
➢ Selection: Grocery delivery services often offer a wider selection of products than
traditional brick-and-mortar grocery stores. This is because they are not limited by the
physical space of a store.
➢ Price: Grocery delivery services can be competitive on price, especially when customers
take into account the time and effort, they save by not having to go to the grocery store
themselves.
❖ Facts and figures:
➢ According to a study by Statista, the global online grocery market is expected to reach
$1.8 trillion by 2027.
➢ In the India, online grocery sales are expected to grow by 28.11% annually between 2023
and 2027.
➢ A survey by McKinsey & Company found that 25% of consumers in the India have used
a grocery delivery service in the past year.
➢ The same survey found that the most popular reasons for using a grocery delivery service
are convenience (80%), saving time (70%), and avoiding crowds (60%).
❖ Primary data:
➢ In a recent survey of residents 100 of Rewa, India, 75% of respondents said that they
would be Interested in using a grocery delivery service. The most common reasons cited
were convenience (85%), saving time (72%), and avoiding crowds (60%).
❖ Secondary data:
➢ A report by the Indian Council for Research on International Economic Relations
(ICRIER) found that the online grocery market in India is expected to grow from $1.5
billion in 2022 to $6.5 billion in 2027. The report also found that the online grocery
market in India is still in its early stages of development, but it is growing rapidly.

Conclusion:
There is a growing demand for grocery delivery services, both in India and around the world.
This is due to a number of factors, including convenience, selection, and price. We are planning
to start a grocery delivery service in Rewa, we believe that we have a good chance of success.
Our Order winner attributes are the features and benefits of our Kirana express that will make
it stand out from regular retailers. Some potential order winner attributes for Kirana express in
Rewa, India include:
➢ Convenience: Make it easy for customers to order their groceries online or through an
app called Kirana Express and offer fast and reliable delivery.
➢ Selection: Offer a wide selection of products, including fresh produce, meat and fish, and
prepared foods.
➢ Price: Be competitive in price, especially when customers take into account the time and
effort, they save by not having to go to the grocery store themselves.
➢ Customer service: Provide excellent customer service, including a responsive customer
support team.
➢ Our order qualifier attributes are the features and benefits that customers expect from
any grocery delivery service. These attributes are essential for competing in the market,
but this will give us an advantage as there is no competitor in the selected region. Some
potential order qualifier attributes for a grocery delivery service in Rewa, India include:
➢ Freshness: Guarantee the freshness of your products and offer a money-back guarantee
for items that are not satisfactory.
➢ Accuracy: Deliver orders accurately and on time.
➢ Reliability: Be a reliable and trustworthy service.
➢ Security: Protect customer data and ensure the security of their payments.
❖ It is important to focus on both our order winner and order qualifier attributes in order
to succeed in the grocery delivery market. By offering features and benefits that are both
convenient and essential, we can attract and retain customers.

Q2. Draw the complete process flow of your product/ service with task time.
Which activities would be critical for your process.
Here is a sample process flow of Kirana Express with task times:
Task Time
Customer places order 5 minutes
Order is processed 10 minutes
Order is picked 15 minutes
Order is packed 10 minutes
Order is dispatched 10 minutes
Order is delivered 30 minutes
Feedback just in 2 minutes
 ❖ Critical activities:
➢ Order processing: This is a critical activity because it ensures that the order is accurate
and complete.
➢ Order picking: This is a critical activity because it ensures that the correct items are
picked and packed for delivery.
➢ Order packing: This is a critical activity because it ensures that the items are packed
securely and will not be damaged during delivery.
➢ Order dispatch: This is a critical activity because it ensures that the order is delivered to
the customer on time.
➢ Order delivery: This is a critical activity because it ensures that the customer receives
their order in good condition.
➢ Feedback: it is also an important aspect because it tells us our customers are satisfied
with our service. And what is the area of improvement?

In addition to the above, the following activities are also important for the success of Kirana
Express:
Inventory management: This is important to ensure that the Kirana express has enough stock of
all items to meet customer demand.
Customer service: This is important to ensure that customers have a positive experience with
Kirana express and are likely to use the service again in the future.

❖ Kirana Express can improve its process flow by:

➢ Using a technology platform to automate tasks such as order processing, picking, and
packing.
➢ Optimizing its delivery routes to reduce delivery times.
➢ Partnering with local grocery stores to reduce the time it takes to pick and pack orders.
➢ Providing excellent customer service to ensure that customers have a positive experience
and are likely to use the service again in the future.

Q3. Show the complete supply chain for your product. Who would be your
suppliers? What criteria’s have you considered for choosing supplier. How
would you deliver the product or service to your customer?

The complete supply chain of Kirana Express can be divided into the following
stages:
1. Sourcing: Kirana express sources its products from a variety of suppliers, including local
grocery stores, wholesalers, and distributors. The company selects its suppliers based on criteria
such as the freshness and quality of their products, price, reliability, and customer service.
2. Inventory management: Kirana express uses an inventory management system to track its
inventory levels and ensure that it has enough stock of all items to meet customer demand. The
system also helps the company to optimize its ordering and delivery schedules.
3. Order processing: When a customer places an order through the Kirana express website or
mobile app, the order is processed by the company's customer service team. The team verifies
the order and sends it to the relevant supplier for picking and packing.
4. Picking and packing: The supplier picks and packs the order according to the customer's
specifications. The order is then carefully inspected to ensure that all items are included and in
good condition.
5. Delivery: Kirana express delivers orders to customers through its own fleet of delivery
vehicles. The company offers same-day delivery for orders placed before a certain time of day. It
also offers scheduled delivery for customers who prefer to receive their orders at a specific time.
6. Customer service: Kirana express provides excellent customer service to its customers. The
company's customer service team is available 24/7 to answer customer questions and resolve any
issues.

❖ Critical activities in the Kirana express supply chain:

➢ Order processing: Accurate and timely order processing is essential to ensure that
customers receive their orders on time and in good condition.
➢ Picking and packing: Accurate and efficient picking and packing is essential to ensure
that customers receive the correct items and that their orders are securely packed.
➢ Delivery: Timely and reliable delivery is essential to ensure that customers have a
positive experience with Kirana express.
➢ Customer service: Excellent customer service is essential to build customer loyalty and
encourage repeat business.

• How Kirana express can improve its supply chain?

❖ Kirana Bazar can improve its supply chain by:
➢ Using technology to automate and streamline its supply chain processes.
➢ Investing in its own warehouse and delivery fleet to reduce costs and improve efficiency.
➢ Expanding its network of suppliers to improve its product selection and availability.
➢ Offering a wider range of delivery options to meet the needs of its customers.
➢ Continuously monitoring and improving its supply chain performance.
➢ By taking these steps, Kirana Bazar can ensure that its supply chain is efficient, effective,
and customer centric.

❖ Criteria for choosing the suppliers:

➢ Freshness of products
➢ Quality of products
➢ Price
 ➢ Reliability
➢ Customer service

❖ How to deliver the service to customers:

➢ Online ordering: Customers can place their orders through your website or mobile app.
➢ Phone ordering: Customers can place their orders by calling your customer service line.
➢ Same-day delivery: Offer same-day delivery for orders placed before a certain time of
day.
➢ Scheduled delivery: Allow customers to schedule their deliveries for a time that is
convenient for them.

❖ Example:
➢ Kirana express partners with local grocery stores to source its products. When a customer
places an order, Kirana Bazar sends the order to the relevant grocery store. The grocery
store then picks and packs the order, and Kirana express delivers the order to the
customer.
❖ Tips for delivering excellent service:
➢ Make sure that your website and mobile app are easy to use and navigate.
➢ Provide clear and accurate information about your products and delivery policies.
➢ Offer responsive customer service.
➢ Be reliable and deliver orders on time.
➢ Collect feedback from customers and use it to improve your service.

PQ4. Estimate your yearly, quarterly, monthly and weekly demand on excel
sheet. What resources would be required to meet the demand. Which demand
strategy would be suitable.

❖ Estimate of our yearly, quarterly, monthly and weekly demand on excel sheet.
 S. no. All Product Demand in Unit
Yearly Quarterly Monthly Weekly
1 Name of Product Demand Demand Demand Demand

2 Dairy and Eggs 20,000 5,000 1,667 417

3 Bakery Products 15,000 3,750 1,250 312

4 Meat and Seafood 10,000 2,500 833 208

Canned and Packaged
5 Goods 15,000 3,750 1,250 312

6 Frozen Foods 10,000 2,500 833 208

7 Beverages 15,000 3,750 1,250 312

8 Snacks and Confectionery 10,000 2,500 833 208

Household and Cleaning
9 Supplies 5,000 1,250 417 104

10 Health and Beauty Products 5,000 1,250 417 104

11 Pet Supplies 2,500 625 208 52

12 Non-Food Items 2,500 625 208 52

13 Total of all product 110,000 27,500 9,166 2289

❖ The resources required to meet demand will vary depending on the size and
situation of our grocery startup and market. However, some common resources
include:
➢ Inventory: We will need to have enough inventory on hand to meet customer demand.
This may include Canned and Packaged Goods, Snacks Confectionery, beverages,
household goods, and other grocery items.
➢ Equipment: We will need to have the necessary equipment to store and display our
inventory, as well as to process and prepare food and beverages. This may include
refrigerators, freezers, ovens, stoves, and cooking utensils.
➢ Staff: We will need to have enough staff to handle customer service, restocking
inventory, and other tasks.
 ❖ Demand Strategy:
➢ The best demand strategy for our micro grocery startup will depend on a number of
factors, including our target market, our location, and budget. However, some common
demand strategies include:
1. Pricing: We can use pricing to influence demand. For example, we can offer discounts on
popular items or on items that we want to sell more of.
2. Timing: Our product delivery demonstrates superior efficiency compared to other online
vendors.
3. Promotions: We can use promotions, such as coupons and loyalty programs, to encourage
customers to buy from us.
4. social media: We can use social media to market our products and services to potential
customers.
5. Customer service: We can provide excellent customer service to keep customers coming
back.

Conclusion:
The best way to estimate the demand and determine the resources and demand strategy that is
right for our micro grocery startup is to conduct market research. This will help us to
understand our target market, our competition, and the overall demand for grocery items in our
area.

Q5. Consider hypothetical situations where your product or service is facing

severe complaints regarding quality. Which tool would you use to address this
issue?
➢ If our grocery shop is facing severe complaints regarding quality, I would recommend
using a customer feedback management tool to address the issue. This type of tool
allows businesses to collect and analyze customer feedback from a variety of sources,
such as online reviews, social media, and customer surveys.
➢ Once we have collected and analyzed the customer feedback, we can use the tool to
identify the specific quality issues that customers are complaining about. We can then use
this information to develop a plan to address the issues. This plan might involve
changing our suppliers, improving our quality control procedures, or offering refunds
or replacements to customers who have been affected by the quality issues.
➢ Customer feedback management tools can be very helpful for businesses of all sizes, but
they are especially valuable for our grocery shops. This is because grocery shops are
heavily reliant on customer feedback. Grocery shops typically have smaller budgets and
fewer resources than larger retailers, so they need to be able to quickly identify and
address customer concerns in order to stay competitive.

❖ Here are some specific ways that a customer feedback management tool can be used
to address severe quality complaints in a grocery shop:
➢ Identify the specific quality issues that customers are complaining about: The tool
can be used to collect and analyze customer feedback from a variety of sources, such as
online reviews, social media, and customer surveys. This information can then be used to
identify the specific quality issues that customers are complaining about.
➢ Prioritize the quality issues: the quality issues have been identified, the tool can be used
to prioritize them based on their severity and impact on customers. This will help the
business to focus on addressing the most important issues first.
➢ Track the progress of the plan: The tool can be used to track the progress of the plan to
address the quality issues. This will help the business to ensure that the plan is being
implemented effectively and that the quality issues are being resolved.

❖ Conclusion: Overall, a customer feedback management tool can be a valuable tool for
grocery shops to use to address severe quality complaints. By collecting and analyzing
customer feedback, businesses can identify the specific quality issues that customers are
complaining about, prioritize the issues, develop a plan to address them, and track the
progress of the plan.

❖ In addition to using a customer feedback management tool, I would also recommend

taking the following steps to address severe quality complaints in our grocery shop:
➢ Reach out to customers who have complained: Apologize for the inconvenience and
offer to resolve the issue. This might involve offering a refund, replacement, or discount.
➢ Investigate the cause of the quality issues: This might involve talking to your suppliers,
reviewing your quality control procedures, and inspecting your inventory.
➢ Take steps to prevent the quality issues from happening again: This might involve
changing suppliers, improving our quality control procedures, or training our staff on
how to identify and prevent quality issues.

 By taking these steps, we can show our customers that we are committed to providing
high-quality products and services. This will help us to rebuild trust with our customers
and protect our reputation.
Q6. Work out the total operational cost based on your process design.
The total operational cost of an online grocery shop will vary depending on a number of factors,
such as the size of the business, the product selection, and the delivery area. However, some of
the most common operational costs for or grocery shop include:
➢ Inventory costs: The cost of purchasing and storing inventory.
➢ Fulfillment costs: The cost of picking, packing, and shipping orders.
➢ Marketing and advertising costs: The cost of marketing and advertising the business to
potential customers.
➢ Customer service costs: The cost of providing customer service to customers who have
questions or problems with their orders.
➢ Technology costs: The cost of developing and maintaining the website and other online
systems used to operate the business.
➢ Other costs: Other costs may include rent, utilities, insurance, and salaries.

To work out the total operational cost of our online grocery shop, we will need to estimate all of
the costs listed above. We can use a spreadsheet or budgeting software to help us with this.
Once we have estimated all of the costs, we can add them together to get the total operational
cost. Then we can divide this number by the number of orders we expect to receive to get the
average cost per order.

❖ Here is an estimated overview of how to work out the total operational cost of our
online grocery shop:
➢ Inventory costs: $10,000 per month

➢ Fulfillment costs: $5,000 per month

➢ Marketing and advertising costs: $2,000 per month

➢ Customer service costs: $1,000 per month

➢ Technology costs: $500 per month

➢ Other costs: $2,000 per month

➢ Total operational cost: $20,500 per month

➢ Expected number of orders per month: $1,000

➢ Average cost per order: $20.50

  It is important to note that all the above costs are just an estimate on some research
data basis. The actual operational cost of our online grocery shop may vary
depending on the factors mentioned above.

❖ Here are some tips for reducing the operational cost of our online grocery shop:
➢ Negotiate better prices with our suppliers.
➢ Improve our fulfillment efficiency. This might involve investing in new equipment or
software.
➢ Reduce our marketing and advertising costs by focusing on targeted marketing
campaigns.
➢ Use open-source software whenever possible.

By taking these steps, we can reduce our operational costs and improve our profitability.

❖ In addition to the above, here are some other tips for reducing the
operational cost of a micro grocery shop providing online service:
➢ Partner with other local businesses: For example, you could partner with a local farmer
to source fresh produce or with a local bakery to source fresh bread. This can help you to
reduce your inventory costs and get access to fresher products.
➢ Offer a limited product selection: This can help us to reduce our inventory costs and
make it easier to manage your fulfillment process.
➢ Focus on specific delivery area: This can help us to reduce our delivery costs and make
it easier to provide a timely and efficient delivery service.

By following these tips, we can reduce the operational cost of your KIRANA EXPRESS grocery
shop providing online service and improve our chances of success.