RATION-WALE

Category: Profit and People. Team: Prayas Team Members: All from Welingkar Institute of Management development and Research. Parveen Kumar, parveen.dangwal@hotmail.com, 07676663798.User ID: Dangwal. Puneet Singh Verma, Punit.thakur4209211@gmail.com, 08880757247. Harmanpreet Singh Anand, bonu.anand@gmail.com, 07204297754.

Indian grocery retail market was worth US$ 299. especially women. . Use of technology in retrieving past order and delivering order within promised time will lend a touch of personalization and great customer service. We intend to target people who either do not like visiting a grocer or just do not have time for their groceries.2 billion in the year 2008. The idea is crude yet simple and that is where our strength lies. We understand that people still order grocery through phone at local kirana stores or at their more sophisticated counterparts likes More or Reliance mart. According to Institute of Grocery distribution. IGD a UK based nonprofit organization. by making them part of this business model. retailing only and directly through phone will be a much more evolved business model and our order taking. delivery and customer service model will set us apart from other retailers in the market. We also want to uplift poor sections of society.Executive Summary The success stories of Wal-Mart internationally and Big Bazaar domestically has turned retail sector into a gold mine. service oriented and profitable plan. But. these details are minute but they are indispensable in our business plan. They will be trained and employed by Ration-wale in various capacities like front line operators. Ration-wale is attempt to revolutionize phone retailing of groceries through an inclusive. they can be a great asset to our business. Women are naturally adept at talking about and picking up groceries so. warehouse operatives and supervisors etc. Though. Every big Indian business house from Ambanis to Birlas and more wants to claim its share of the retail sector. This is a brick and mortar set up where technology is used where necessitated by operations.

This can give us a significant cost advantage over other retail players. Number of workers are 3.40.422 out of which 2.003 are females.Opportunity Kirana stores and organized retailers are proving an alternate of taking order on phone and delivering it to the customer but it remains an alternate not a primary business model. Local departmental stores sometimes take more than 24 hours to deliver the goods whereas we will handle everything professionally and keep our delivery promise.06. Some of the key observations about grocery shopping in Chandigarh are listed below: A typical household shops for entire month’s grocery at once.8 live in urban areas. Our model does not require showcasing of the goods and therefore.419 are males and 50.5% of the total population. Most of our workforce will come from slums. . grocery shopping is done by women who have to be dependent either on husband or children to buy and carry the grocery home. They will be given training on computer and on communication skills for operator’s job. The reasons for doing it include familiarity with the market and demographics. out of which 89. Online grocers cannot penetrate through the masses because internet users in India still make up for 8. Their primary business comes from customer walking into the stores and doing shopping which requires a lot of infrastructural investment and that too at expensive areas frequented by people. for warehouse operation they will be provided appropriate training.84. Target Audience and Market Size We plan to start operations of Ration-wale in Chandigarh. We will take time from the customer instead of appearing at his place at our whims. paying rent of an expensive and strategically located trading area can be done without. Even the delivery boys or girls will be trained to talk politely and patiently with the customers. In majority of households. Similarly. According to a 2010 CII study total number of households in Chandigarh are 2.465. Illiterate people are out of their reach for obvious reasons and sometimes even the literates are more comfortable talking to someone than browsing through a sea of options. Working couples are reluctant to take time out to visit a grocer for such a basic and mundane need. Apart from generating revenue we are also very keen on improving lives of the poor.

Paying guests. People prefer to fix a grocer and may stick to him for years. An account will be created for the first time callers so. Considering the above mentioned points we intend to target following segments: Housewives dependent on someone in the family to buy grocery. flour. Customer will generally call us when they are free because grocery shopping is never a on top to do list of anybody. Rice. Product/Service Description and Value Proposition Our focus is to get people shop for their grocery over the phone instead of visiting a departmental store. The next time they call operator will already have much of their grocery list. whether it is before going to . where the order will be assembled. We estimate the initial delivery time to be less than 6 working hours and we intend to cut it down to 3 hours as the business grows. that it is easy to keep track of their routine items. Operator will then send the copy of the order to the warehouse. Customers will be also be given the freedom to change the delivery time if for any reason they might have. Working couples who do not have time for visiting a grocer. therefore desire to touch and feel the product before buying it is really not there. Many customers buy lose and not branded commodities. To cover maximum free time of the customers. Items that may vary from month to month are items bought lose like rice.Most of items on a grocery list are same every month. spices etc. The service will be customized for such customers. packed and loaded on the delivery truck. Most available varieties of these items and weight balance will be there on the truck all the times to cater to such customers. Right from taking the order to delivering it we will make it a delightful and personalized experience for the customer through great customer service. Convenience of free delivery is a major value addition. flour and spices are examples of such commodities. Which will increase efficiency of the overall system and save time of the customer. Operator can also read out various categories which customer might have missed. generally people who are clear about which products and brands they use every month.

in and others have limited market accessibility. after coming from the office or after dinner we will take orders from 8 am to 10 pm. Sr. Even for literates ordering something over the phone is quicker. Our target is to give as much autonomy as possible at every level of organization. there is enough chance to establish yourself without clashing head-on with another player. Landmark. At the present moment we are talking about starting our operations in a single city. Centers within a state can be operated from the state unit which in turn can be operated from zonal unit. They also do not have to make a new list every month and in case they forget anything operator is always there to help them out. that even the smallest unit selfreliant and profitable. Competitive Landscape The local departmental stores and players in organized retail are all competition for us.no 1 2 3 4 5 Designation Operator Warehouse staff Driver Delivery boy Supervisor No of people 4 8 4 4 2 . There is no such limitation for a business done over the phone because according to TRAI number of mobile phone users in country has already reached 764 million and it is only increasing. As organized retail players. From this model customers are getting flexible order timings. Workforce engaged in the center is given as below. E-grocers like groceryshop. So. still have just 2% of the market. after sending children school.the office. Big Bazaar etc. Number of centers in a city depend upon the size of the population and ease of navigation through an area. But the possibility of a direct clash with competition is very bleak initially because they will all wait and watch for reaction to the offering. timely delivery and convenience of having grocer at door-step. convenient and uncomplicated. Various operations can be run and controlled by a single center. Team Composition and Structure The structure of the company is very decentralized. Through phones we also easily reach illiterates.

Sales and Distribution Model Though we will develop a website for Ration-wale from where customers can order grocery it will not be a primary revenue generator. Gradually we will expand operations in industrial cities of Haryana and Punjab like Ludhiana. restaurant and dhabas. once we have smoothened our logistics we will start focusing on these establishments as well. Customer is already getting superiors service and convenience of door-step grocer so. Financials We do not intend to make huge infrastructural investments so. MRP. They offered heavy discounts for capturing more market share and because of that ran into losses. For that we will have to deliver better turnaround time. Many eretailing websites are facing the same situation today. We are targeting northern India in the first phase. Following is the break-up of initial investment (this the investment in a single center. he will not have any problem paying the same amount that he pays to a grocer i. Growth and Scalability We plan to grow in a very orderly fashion. in phases to be specific. Patiala.e. Getting our brand accepted in a metropolitan will open other A-grade cities for us as people will already have the awareness of and confidence in our brand. Revenue Model and Pricing We are doing pure retailing. Panipat. Site mainly will increase visibility of Ration-wale and direct customer to our phone number. As mentioned already operations will start from Chandigarh. we will rent office and warehouse rather than buy them. Delhi is an important market for us because it is a metropolitan and people still buy grocery in a very traditional Indian way. Therefore. Majority of sales will happen over the phone. We do not want to slash the prices because that way business itself does not remain profitable and therefore sustainable. Many a time an eatery runs of ration stock all of sudden and then they are in urgent requirement of the new stock. Once the customer has placed the order it will be delivered by company owned delivery tempo or truck within 6 hours initially and then gradually we plan to cut it short to 3 hours. during expansion we will have to account for technological investments for intercenter and inter-unit connectivity). After establishing Ration-wale at the household level we want to cover hotels. Grocery will be sold at MRP. .

Investments Office rent Warehouse rent Tempo(on hire) operators supervisor Warehouse staff Driver Delivery boy Fixed cost Miscellaneous Total Cost 25000 10000 10000 4000 8000 4000 6000 5000 400000 500000 Number 2 4 2 8 4 4 Time 12 12 12 12 12 12 12 12 Total 300000 120000 240000 192000 192000 384000 288000 240000 400000 500000 2856000 Without being overconfident about our marketing strategies we hope to start making profit in the first year itself.00. . Average order per caller 1000 Rs So.60.000 Rs. in the first year itself. revenue for one day should be 100000 and therefore for one year will be 3. Break-even point should be crossed in 10 months. Our target is to receive 100 calls in a day on a average. Even by a very conservative profit margin of 10% we should be able to make a profit of 3600000 Rs.

economictimes.com http://articles.mycii.indiatimes.htm www.internetworldstats. . http://www.pdf CII study of the demographics of Chandigarh-2010.com/2011-01-25/news/28433753_1_subscriber-basewireline-market-user-base Philip Kotler’s Marketing Management.internetworldstats.in/image/eventimages/eventmainimages/E000003069_CII%20Chandigarh%20 Fair%20Bk%20Paper.com/asia/in.References: http://www.

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