JaipuriaoInstitute of0Management,

VineetpKhand, GomtioNagar
Lucknow – 226p010

AcademicoYear 2nd year

Batchu 2020-22
Trimester 4th
Programme PGDM-RM
(PGDM / PGDM-FS / PGDM-RM)9
Name of4Course Managing online retail
Sectionh E
Name of Faculty Shalini Singh

Natureoof Submission ASSIGNMENT

(Assignment / Project Report)
Topic-of Assignment / Project Grofers

Deadline foroSubmission 25th

Maximum Marks Allotted
 Grofers (Introduction)

Grofers is the company which deals in online retail store category of the FMCG sector. The
company provides all the daily needs to the consumers or say daily customers for the
fulfillment of their daily needs. There are certain products in which the company is dealing in
which are as follows-:

 Grocery and Staples

 Vegetables and fruits
 Personal care
 Household items
 Kitchen and dining needs
 Biscuits snacks and Chocolates
 Beverages
 Breakfast and dairy
 Noodles, Sauces, and instant foods
 Home furnishing and décor
 Eggs, meat, fish, and frozen items
 Pet care
 Baby care
 Home improvement and accessories
 Fashion and lifestyle
 Home appliances
 Books, stationary, toys, and games

So, all these are the following things that the company is currently dealing in. As we can see
these are the plethora of things to satisfy the needs of the daily customer. Another new thing
that the company is thinking about is to connect with the local shops or say kirana shops and
do some business with them too in the partnership agreement. This will not help Grofers
solely but also to these local shops which are in search of the business expansion and the
reach of the customers.
 History of the company

If we talk about the history of the company then it would go as Mr. Saurabh Kumar and Mr.
Albinder Dhindsa founded the company in the year 2013 in the month of December i.e. 7
years ago. They never thought that the company will turn into a $535.6 million company (as
per the data of 2018).

If we talk about the meaning of the name then it is portmanteau of the word grocery gophers.
The name finally comes when Albinder Dhindsa and Saurabh Kumar met and decide to make
it a name of their company. Both of them met in the same company in which they were
earlier working for, and the name of the company was Cambridge Systematics. They decided
to enter the online grocery market in the late 2010s. at that time their major goal was to solve
the problems face by the customers as well as by the merchants as well. Earlier the company
took its trial in Delhi itself before it came to many other cities. In the early days the prime
focus of the company to deliver the products on time because most of the products in which
they were dealing in are perishable like fruits and vegetables etc. and they focused more on
the deliver with fresh products as well.

Value proposition of the company

If we talk about the value proposition of the company then I would like to add that it is a very
new and unique idea to give a service in this kind of way. Nobody has thought of it earlier
that what would be happen if there would be a whole retail market on the online platform.
The company anyhow managed to get the nerves of the customers by providing them all of
the items in a single go and the public also liked it as well because there were no other major
player and they were also providing discounts and offers as well. So if we talk about the
value proposition in points then it would be as follows-:

 In house delivery
 Availability of all the products related to the FMCG sector.
 Discounts and offers
 Fresh delivery of the products
  Fast delivery
 Same day delivery to the merchants as well.
 Attractive schemes for the customers.

Segmentation

If I talk about the segmentation of the company the company did it well through the RFM
analysis. It is a kind of analytics which is being used to keep the data for the huge customer
base which currently all the companies have. They keep the public engaged by the kind of the
ads they use for the app and the kind of the data analytics that is being required to find out the
level of engagement that how much the customers are engaged while they are on the
website/application of the company.

In short, if I say that it is basically a tool through which the company is able to find out the
best customers and so that they can execute a well-organized and managed marketing
campaigns and that to by the statistical rankings and by categorizing them in the on the basis
of the Recency, frequency and monetary (RFM). The criterion that is used for the RFM
analysis is as follows:

 Recency: it tells that what are the recent times when the customer is visiting the
website/app and also it tells that if the visiting time is higher and purchasing of the
products is low as well then this means the customer is using the website/app for the
information purpose only and not for the shopping purpose. Secondly, we could find
that what are the things that are attracting the customers to come and shop from the
website and what are the things that are making them loyal towards the website of the
company.

 Frequency: here if we talk about the frequency then it shows us that how many times
the customers actually made a purchase. And it also studies about the loyalty of the
customers that if he/she have made a purchase then is it worth it or not to come back
again on the site or not.

 Monetary: through the monetary analysis we are able to find that what is the amount
of the money that the customer is spending on the website/app and what is the
frequency of that. Generally it is assumed that if a customer’s spend a good amount of
money on a particular brand/company then there are huge possibilities that the
customers may come back again for the shopping/purchase function.
 Competitive environment

If we talk about the competitor analysis of the company then in India they have two major
competition which is as follows:

Swiggy: it is a very prominent player in this game it is basically a food delivery app, and it
has also launched its own concept of delivering anything from any of the store in the FMCG
sector they can bring you anything from any of the store and will charge the deliver amount
only. This thing has become a real challenge for the company because it is hindering their
process of delivery from their online platform as the customers are choosing their preferable
store via swiggy app.

Bigbasket: bigbasket is also a very major player in this process it is just like grofers
delivering all the required products as requested by the customers. They are also in all the
sectors of the products where the grofers is. It also provides great discounts and offers on
their products and brands. Thus, it is a very great competition for the Grofers.

Competitive advantage

If we talk about the competitive advantage for the company then it would be on a very good
position. Because what grofers is offering that is offered by no one else as good as them in
the market. Here are some of the competitive advantages of the company which are as
follows:

 Fast delivery
 Same day delivery of the perishable item to the customers as well as to the merchants.
 Plethora of the products available with the company
 All variety of the products if we talk in the FMCG sector.
 Very attractive discount rates for the customer on the specific days and as well as for
the merchants as well.
 Smooth and user-friendly interface of the website as well as of the application.
 Marketing mix of the company

if we talk about the marking mix of the company then it would be like the company has
followed all the four parameters very beautifully to promote the company in the best possible
way they can. I would like to describe all the 4 factors in the following bullet points which
are as follows:

 Product: keeping this factor in the mind the company has kept all the products which
were demanded by the public in the FMCG sector. The products are for all the
category of the people as well so that people from every income group can purchase
it.

 Price: here the company played a really good game it kept all the factors in the mind
and studied all the factors of the India market as well that what are the days in which
they are providing discounts or say addition discounts to the customers. So, after this
detailed analysis the company really found out that the company have to provide the
discounts on the same day as it is being followed in the Indian markets. So, the
company did the same and provided the discounts of course and is doing pretty well
in the market with discounts and offers.

 Place: the company not only paid attention to these specific factors but they also did
some of the place thing as well they studied the various geographic needs, footfalls of
certain rival stores etc. and after all this they launched their store with the same name
i.e., Grofers and these stores are doing much better than some of the other stores as
well.

 Promotion: here the company played a very good role as well. It targeted all the
newspaper which mostly read by the readers and printed their beautiful
advertisements, and they also did a great digital marketing as well. Because of all
these factors the company is touching new heights.
 Revenue model of the company

The revenue model of the company is like that they are majorly earning the income by the
merchandise that they are offering obviously. But on the other hand, they are also earning the
revenues from some of the retail outlets which they had opened recently. And the other part
of the revenue of the company comes from the value that is being provided by the company.
 Operations model of grofers

The operation model of grofers sits pretty well and the company is dealing into all the
category of the FMCG sector and is catering to the customers as well as the merchants. The
believe that they should deal in the perishable items in the same day only so that there would
be no loss situation for the company as well as for the merchants/customers but that depends
on the sales as well.

Grofers not only present in the big cities but also it is present in all the other small tows as
well where the internet is accessible. On the contrary the company is also opening the
physical outlets as well and they too are doing pretty good. These physical stores are present
in almost the tier I cities. But the company also launched some of their physical stores in the
tier II and tier III cities as well.

The quality of products, the product offerings, the delivery schedule, and finally the sales
service are the four success criteria in this sector. The company also offers a strong value
proposition at the low prices and that’s where the company wins and stands out as well.

Suggestions

As we all know that this is the time for the e-commerce apps and websites. As of now the
company is doing great and it should remain constant in the providing the high value
proposition at the same low cost. So that more and more customers could take out benefit
from and the growth of the company would also be remain intact in this way.