Project On Online grocery_MBA Marketing

''Brick & Mortar' to 'Brick & Click': Perception study of
retailers and customers; in grocery industry, Bangalore
Submitted in partial fulfillment of the requirement of the
Master of Business Administration [MBA] Course of
Jain University
Submitted by
SAGAR. K
3rd
semester
Under the Guidance of
Prof. Krishna Koppa
2013-2015
319, 25th Main, 17th cross Rd, JP Nagar VI Phase, J. P. Nagar, Bengaluru,
Karnataka 560078

DECLARATION
I, hereby declare that this summer internship programme-“''Brick & Mortar'
to 'Brick & Click': Perceptionstudy of retailers and customers;in grocery
industry, Bangalore .” Forpartial fulfillment of the requirement of the Masters
in Business Administration Programme offered by Jain University is prepared
by me during the academic year 2013-2015 underthe guidance of Prof.
Krishna Koppa
This project is not based on any previously submitted project for the award of
any degree or diploma offered by any university. It is the result of my own
effort.
Name: SAGAR. K
SEM: 3
Sec: ‘B’
Reg. No. : 13MBA63079
Date: 15/10/2014
Place: Bangalore
Signature

Acknowledgement
I would like to express my deep gratitude to Prof. Krishna koppa my mentor
and CMS BUSINESS SCHOOL for giving me this opportunity, guidance,
enthusiastic encouragement and useful critiques for the completion of this
project.
I would like to thank Mr. Chandra the CEO of Kirana Sales for allowing me to
study this project.
Finally, I wish to thank my parents for their support and encouragement
throughout the study.
Date: 15/10/2014 SAGAR.K
Place: Bangalore
13MBA63079

TITLE OF CONTENTS
CHAPTER TITLE OF CHAPTER PAGE NO
1 Introduction to study
 Background
 Literature review
 Gaps identified
 Research objectives
 Research methodology
 Limitation of study
1-7
2
3-5
6
6
7
7
2 Industry & Company profile
 Retail Sector Executive Summary
 Retail Market Size of India In 2012
 Introduction
 Types of retailers
 A quick market overview
 Retail penetration in India
 Mall penetration in India
 Growth drivers for the Indian retail market
 Critical issues faced by India retail
 Ecommerce Industry in India
Company profile
 About the company
 SWOT analysis
 Strategic Group mapping
 Business growth strategy
8-39
9
10
11
12-15
16
17
18
19
20-21
22-26
27-39
27-30
31
32-34
34-39

3 Analysis & Interpretation
 Retailer Questionnaire
 Customer analysis
40-77
40-56
57-77
4 Findings Recommendations and conclusion
 Findings from retailer
 Findings from customers
 Recommendations
 Conclusion
 Scope of the study
78-87
79-80
81-82
83-85
86
87
Bibliography 88
Appendix 89-95

Abstract
Project may be divided into three parts mainly into at first the report talks about the
literature review which I have done by going through articles and identifying the gaps
in the online grocery industry which states that the main reasons why many
established and small brands coming online this may be seen to increase the brand
awareness of the company or retain the customers by giving them convince and
adding value to customers. This part also mention the way I have collected the
questionnaire from retailers and customers and the study was conducted on according
to the company interest. The objective of the study was to find the retailers perception
of online grocery stores and the hurdles faced by them to list the company online. And
from customer end it was to find how comfortable where they to buy groceries online
and from local retailer where they regularly buy.
The second part of the report talks about retail sector and specifically catering to
grocery industry and ecommerce industry. It is seen that the retail industry is of size $
450 billion in 2013 and is growing at a steady phase. But when we look at the
organized retail it contributes only 8% of total market size and online is only 0.3%
according to the report of E&Y in 2013.The major contribution to online growth is
apparels and electronics. But grocery is at last and it is growing at slow phase in
online
The third part of the report says that the problems faced by retailers and customers to
come online. By this company can come up with solutions where it can build a
platform to retailers by adding value to them. From the customer end it seen that the
major reason for not buying groceries online is because of no touch and feel of the
product this can be overcome by building the trust among the customers and making
them as repeat purchasers. Finally this report talk about company up pick up points
where customers can pick there order booked online from the stores or any other
pickup points setup by the company by which company can gain efficiency in
operation and make quick delivery to customers.

Chapter-1
Introduction to the study

Background
Brick and mortar or B&M model
in simplest term means the
physical presence of buildings or
other structures. The term brick-
and-mortar business is often used
to refer to a company that
possesses buildings, production
facilities, or store for operations.
The name is a metonym derived
from the traditional building materials associated with physical buildings: bricks and
mortar. The term was originally used by Charles Dickens in the book Little Dorrit.
Some stores such as Best Buy, Wal-Mart, and Target are primarily known as brick-
and-mortar businesses but also have online shopping sites.
Brick and click aka clicks and a brick is a business model by which a company
integrates both offline (bricks) and online (clicks) presences, sometimes with the third
extra flips (physical catalogs). Additionally, many will also offer telephone ordering
as well, or at least provide telephone sales support. A popular example of the bricks
and clicks model is when a chain of stores allows the customer to order products
either online or physically in one of their stores, also allowing them to either pick-up
their order directly at a local branch of the store or get it delivered to their home.
Many of the traditional retailers are following Brick and Mortar model but slowly they
are moving to Brick and Click model, because the customer needs and wants are
changing at a rapid phase. For eg a retailer may have different customers visiting his
stores all have different types of needs, few need touch and feel of products remaining
customers want it to be convince to shop by sitting at home. And retailers want to
improve their brand presence by entering into online. Has the penetration of smart

phones and Internet is at peak in India, all want to be part of this movement by having
their own share in it.
So my research talks about adding value to retailers by providing them a platform
through which they can come online and reach large part of customers. As kirana sales
wanted to know the means by which it can build a solid website which can be used by
retailers without much of complexity, time and means by which they can increase
their revenue.
Literature Review
1. Burton, Walt (April 20, 2014). What increased e-commerce means for
brick-and-mortar stores. Blog, Guest
Blogger.
The article talks about how the brick and click
model is affecting the traditional brick and
mortar model. It states that the number of
people visiting malls have decreased from 5 in
2007 to 3 recently which amount to 40 percent drop in the customers entering stores
and malls
As a result of which many store are closing down its operations due to high overhead
cost that they incur on rent, labour, salaries etc. But successful retailers are enhancing
store experience by giving customers live demo of the products increasing lighting
and making customers shopping a memorable one
Because of this the stores the small retailers are closing down where as established
retailers are finding new ways to add value to customers. But can my research find a
solution to the small retailers who closing down by coming online.

2. Roggio, Armando. (June 22, 2013), Four Reasons Small Brick-and-mortar
Retailers Need an Online Store. Business Strategist.
This article talks about the reasons why a retailer must come into online and has listed
out main four reasons for the same.
Customers are already online and about 88 percent of customers browse online before
making an actual purchase in store. Some of the items are staples which can be bought
easily through online eg papers, pens, branded groceries etc. By buying online
customers are being more social they can make their friends and relatives know about
what they shopping. And finally it provides stores to add value to customers by
providing better customer services at all times.
This can be told that even small retailers must come into online space but the question
relies the same whether customer will be willing to adopt the new technology in India
if so how far can he adapt it.
3. Nair, Radhika, P. ET Bureau, Apparel brand Soch to launch E-store.
Economic Times
This article talks about how a brick and mortar company is planning to go online to
attract it customers by giving them convenience of shopping online and exchanging
the dress material online which will add value to customers.
They even have mentioned that online market is set to grow about 32 billion (over Rs
1.9 lakh crore) in the next six years, according to a report by retail advisory
Technopak.

4. Kamath, Raghavendra. (May 31, 2014), Reliance Retail to go online.
Economic Times
The above article tells us that reliance which has 1,691 stores in 141 cities is planning
to come up in online space and making the competition fiercer, they have their own
retail store and planning come with wholesale stores very shortly.
5. Nanditha. (2012). Bricks, clicks and mortar business model.
This model talks about the advantages of click and brick model the main points listed
are Core competencies, supplier network. The brick and mortar business model
certainly won’t be fading into obscurity; virtual store fronts have opened a new world
of opportunities for would-be businessmen and women with big ideas but little capital.
6. Dalal, Mihir. (2014). E-commerce boom hurts brick-and-mortar retailers.
Live Mint.
The above research articles state that the coupon discounts that are offered by online
e-commerce stores are affecting the sales of brick and mortar stores. And many
established offline store are coming online to increase their sales. But small offline
stores are finding it difficult to come online has there is no expertise knowledge on
online store.
7. Mukherjee, Writankar. & Malviya, Sagar. Offline retailers try to compete
with Flipkart, Snapdeal by offering discounts, swift delivery.
Economic Times March 19, 2014.
In this article we can see that the online retail is growing at a steady phase at 1 percent
YOY, which is fastest, growing channel across the industry. So give a tuff competition

to online stores even offline store are coming up with their own online presence and
by offering discounts to the customers
Gaps identified:
After doing my literature review, I found that many of the retailers are planning to
come online; it may be not only to increase the sales but also to increase the brand
awareness of the company. Major companies that are seeing opportunities in online is
established companies in the market and are leaving no stone unturned to miss the
boat of online journey that as began in India. But when it comes to small companies
who want their stores to be listed online and keep it running is daunting task, my
project talks about retailers perception of
coming online and whether they will be
interested to come online and value to
customers. And major literature review
talks about customers and large institution
but my study focuses on small retailers
coming online and challenges faced while
listing the company online.
Research Objectives
1. To study the perception of grocery retailers towards brick and click model in
Bangalore.
2. To understand the challenges faced by retailers to adapt brick and click model.
3. To understand the customer willingness to purchase grocery online from local
retailers.

4. To study whether kiranasales.com can come up with pick up points where
customers can collect groceries directly from these pick up points.
Research Methodology
1. Secondary data is collected from Journals, Articles, and Reports on industry
compiled by research companies, Industry websites, and Companies website.
2. Sample size of 70 customers and 35 retailers will be collected by way of
questionnaire method and the tools used to interpret the primary data will be
excel, charts, bar diagrams, and SPSS package will be used up to a certain
extent for statistical calculation
3. Questionnaire will consist of both open ended and closed ended questions.
4. Questionnaire from customers will be collected through online by monkey
survey.com
5. A literature review will be conducted for finding the reports, magazines,
articles and other sources for information on online grocery store.
Limitation Of Study
1. The project is being carried out in various parts of Bangalore and may not
represent entire city or Karnataka.
2. The data collection is for a particular time period and data is expected to
change with respect to time
3. The study is limited to grocery industry

Chapter-2
Industry & Company Profile

Retail Sector Executive Summary
Retailing is emerging as a sunrise industry in India and is presently the largest
employer after agriculture. India retail is the fifth largest retail market globally with a
size of INR 16 trn, and has been growing at 15% per annum. Organized retail
accounts for just 5% of total retail sales and has been growing at 35% CAGR1. The
Indian retail market, currently estimated at $490 billion, is project to grow at a
compounded annual growth rate of 6 per cent to reach $865 billion by 2023. The total
organised retail supply in 2013 stood at approximately 4.7 million square feet (sq ft),
witnessing strong year-on-year (y-o-y) growth of about 78 per cent over the total mall
supply of 2.5 million sq ft in 2012. It is estimated that online shopping industry will
probably touch USD 34.2 billion by 2015. It is also expected that by 2015 number of
mobile phone users in India will reach to 1800 million.
The retail boom 85% of which has so far been concentrated in the metros is beginning
to percolate down to these smaller cities and towns. The contribution of these tier-II
cities to total organized retailing sales is expected to grow to 20-25%. In the year
2004, Rs 28,000 Crore organized retail industry had Clothing, Textiles & fashion
accessories as the highest contributor (39%), where as health & beauty had a
contribution of 2%. Food & Grocery contributed to 18% whereas Pharma had a
contribution of 2%.
1 Source : E &Y Report, 2012

Fig 2.1; Retail Market Size of India In 2012
In year 2012, (refer to fig1.1) states the total market size reached US$ 518 billion,
thereby registering a compound annual growth rate (CAGR)2 of 7 per cent since 1998.
2 Source: www.ibef.com, sept ,21st 2014

Introduction
Retailing includes all activities involved in selling goods or services directly to final
consumers for personal, non-business use. A retailer or retail store is any business
enterprise whose sales volume comes primarily from retailing.
Any organization selling to final consumers – whether a manufacturer, wholesaler or
retailer- is doing retailing. It does not matter how the goods or services are sold (by
person, mail, telephone, vending machine or internet) or where they are sold (in store,
on the street, or in consumer's home)
Evolution of Retail in India.
Historic/Rural
reach
Traditional/Per
vasive reach
Government
Supported
Modern Formats/
International
Weekly Market
Village Fairs
Melas
Convince Store
Mom and Pop/
Kirana stores
PDS outlets
Khadi Stores
Co operative
EBO’S
Super Markets
Department
stores
Source of
entertainment
Neighbourhood
stores
Availability/Lo
w
Cost/Distributi
on
Shopping
Experience
Efficiency

There are 3 types of retailers:
1. Store retailer
2. Non Store retailer
3. Retail Organization
From the assortment point of view, Store retailers are of 4 types:
1. Specialty Store
2. Departmental Store Super market
3. Convenience Store
4. Discount Store

Specialty Store: Narrow product line with deep assortment, viz apparel stores, book
stores etc. A clothing store would be a single line store, men's clothing store would be
limited line store & men's custom-shirt store would be a super specialty store.
Example: The limited, The Body Shop.
Departmental Store: Several products lines-typically clothing, household goods,
home furnishings- with each line operated as a separate department managed by
specialist.
Example: Sears, Bloomingdale's.
Supermarkets: Relatively large, low-cost, low-margin, high volume, self-service
operation designed to serve total needs for food, laundry & household maintenance
products.
Example: Big Bazar, Hyper City, More.
Convenience Stores: Relatively small store located near residential area, open long
hours, seven days a week and carrying a limited line of high- turnover convenience
products at a slightly higher price
Example: 7-Eleven, Circle k.
Discount Store: Standard merchandise sold at lower prices with lower margins and
higher volumes. True discount stores regularly sell merchandise at lower prices and
offer mostly national brands
Example: Reliance stores

Off-price retailer: Merchandise bought at less than regular wholesale prices & sold
at less than retail; often-leftover goods, overruns and irregulars obtained at reduced
prices from manufacturers or other retailers.
Factory outlets are owned and operated by manufacturers and normally carry the
manufacturer’s surplus, discounted or irregular goods
Example: Brand Factory
From customers service point of view:
1. Self-service retailing: Many customers are willing to carry out their own locate-
compare-select process to save money
2. Self-selection retailing: Customers find their own goods, although they can ask for
assistance.
3. Limited service retailing: These retailers carry more shopping goods, and
customers need more information and assistance. The stores also offer services such
as credit & merchandise-return privileges.
4. Full service retailing: Sales people are ready to assist in every phase of the
locate-compare-select process.
Although majority of goods & services is sold through stores, non-store retailing has
been growing much faster than store retailing.

Major non-store retailer types:
1. DirectSelling: It deals with door-to-door or at home sale parties i.e. it involves
one-to-one or one-to-many selling.
Example: Eureka Forbes, Amway, Mary Kay Cosmetics.
2. Automatic Vending: Example: ATM
3. Buying services:Is a store less retailer serving a specific clientele-usually
employees of large organizations-who are entitled to buy from a list of retailers who
have agreed to give them discounts in return for membership.
Example: Amazon.com
4. Directmarketing: It involves direct response marketing. The different forms of
direct marketing are: Direct mail, catalog marketing, telemarketing, television direct
response marketing and electronic shopping.
Example: Dell Computers

A Quick Retail Market Overview
Retail Market
Vs. Grocery
market
• Total retail business
value = $450 billion
for 2011
• In 2011 70% of the
retail industry was
grocery market and
out of which 92%
comes from
unorganized grocery
• Growth rate of retail
market 15-20%
• Total retail sales
expected grow to
US$ 804.06 billion by
2015
Online &
Organized Retail
• Growth rate of online
retail market is 35%
• Unorganized retail is
expected to grow at
5% and reach a size
of US$ 650 billion
(76%)
• While organized
retail is expected to
grow at 25% and
reach a size of US$
200 billion by 2020
as per the sector
profile by Federation
of Indian Chambers
of Commerce and
Industry (FICCI)
• The organized retail
segment in India is
projected to be 9% of
total retail market by
2015 and ~20% by
2020
E-Grocery
• Share of spend for
grocery Traditional
Vs. Modern formats
90:10%
• Share of grocery
spend in online web
stores – among
modern methods =
Around1%.

Retail Penetration in India
Apparel and textile
Has the highest contribution towards retail penetration after the first round of changes
in the FDI policy for single-brand retail in 20063 ( refer to fig 2.2), retailers ventured
into the market with EBOs across categories such as footwear, personal products, food
services and entertainment, thus making this format a popular choice in
the Indian organized retail market.
3 Source: E&Y retail report 2012.
Entertainment
3%
Textiles
38%
Jewellery
3%Watches
3%
Footwear
10%
Health & Beauty
1%
Pharmaceuticals
2%
Consumer
durabels
9%
Mobiles
3%
Furnishing
6%
Food and
grocery
12%
Catering & Services
7%
Books music and
gifts
3% 0%
Fig 2.2; Retail Penetration in India 2012

Fig 2.3; Mall penetration in India 2012
In year 2012 the mall penetration in India is dominated by hypermarkets by 21%
followed by apparel stores of 19%4, (refer to fig 2.3)
Indian Retail Quick facts
4 Source: www.ibef.com
Market size
INR 15.5 trn
Organised
retail
penetratio-n
5-8 %
Unorganise
d retail
market
12mn
Kiranas
Growth rate
15-20%
Retail
density 6%

Growth drivers for the Indian retail market
Growth in the Indian retail market is driven by a combination of demand, supply and
regulatory factors. The three pillars are expected to continue being the growth engines
of the Indian consumer and retail market.
Demand Factors Supply Factors Regulatorychanges
Increasing urbanization and
migration to towns and cities
The contribution of urban areas
to India’s GDP is expected to
increase from 60% in 2001 to
70% in 2018
Rapid real estate and
infrastructure development
Mall space supply across metro
cities is expected to increase 40%-
50% between 2012 and 2017
Liberalization ofFDI policies
for
Retailing
Between 2006 and 2012, the GoI
has progressively liberalized the
FDI policy for retailing
Rising disposable income and
consumption expenditure
Consumption spending is
expected to increase from
US$1077 billion in 2012 to
US$2046 billion in 2017
Easy availability of credit
Number of credit cards was
estimated at 18 million in 2012,
and it is expected to increase to
28 million in 2014
Introduction to GST
The GOI has proposed GST and
is close to a consensus on this.
Once implemented, it will simplify
the supply chain and bring down
prices to consumers
Growing number ofworking
women and young population
India’s median age (26 years in
2011) is the lowest among major
economies (BRIC, the US, the
UK),and it is expected to be 31
years in 2025.
Women employment grew at 20%
from 2010 (22.8 million) to 2012
(27.3 million).
Creating a differentiated
experience
Leading modern trade stores
stock products/brands procured
by local importers; some of them
directly partner with leading
foreign consumer product
companies to exclusively retail
and distribute their products in
the Indian market
Introduction ofDirect Tax Code
DTC is expected to be rolled out
by 2014
Changing consumer preferences
Increase in foreign travel and
exposure to Western lifestyle
have resulted in a shift in
consumption habits, leading them
to uptrade
Introduction ofinnovative
formats
Specialty format: e.g., wedding
malls
Luxury format: high-end malls for
retailing luxury goods
Transit format: near airports and
metro stations

Critical Issues faced by India retail
Faster expansion: In the year 2006 many companies entered retail sector, and
invested huge cash inflow for expansion which made in result of which, Debt was
taken by the companies to make this expansion and currently due to less supply many
are facing huge crisis in retails and shutting down
High Rental costs: Indian economy saw a boom in real estate prices in year 2006
during which prices of land went touched rocket high as a result the rent need to be
paid by companies increased drastically which ate up the major portion of the revenue.
Operational inefficiencies: Retail industry is facing a major problem in managing
the stock and logistics which led to decrease in the revenues of the retail companies.
Many in the unorganized sector dint have expertise or knowledge in the field of
operation which as a result led to
 High inventory
 Expiries
 Stock- outs
 Shrinkages
Manpower issues: Retail as an industry is facing a high retention of employees due
to new opportunities in other sectors, Most of the retail industry pay a salary which is
less then industry standards which make them to shift their job on a regular basis.
No proper business model: Many of the unorganised retail do not follow an fixed
business model which is applicable in all areas it keeps on changing from industry to

industry as a result it is hard to generate revenue from this model. Organised retail
players find it difficult to follow a fixed business model.
Political uncertainties: Many of the retail companies need to get state approvals if
the business scale is small or should get a nod from central government if it’s backed
by foreign players which make difficulty in setting new retail industries.

Ecommerce Industry in India
India has an Internet user base of about 250.2 million as of June 2014. The penetration
of e-commerce is low compared to markets like the United States and the United
Kingdom but is growing at a much faster rate with a large number of new entrants.
The industry consensus is that growth is at an inflection point. The internet penetration
in India is about 19%5 and mobile user active is about 886 million about 70% of
Indian population
Fig 2.4; Digital Market In India 2014
5 Source : www.wearesocial.com , Sep 2013

Unique to India (and potentially to other developing countries), cash on delivery is a
preferred payment method. India has a vibrant cash economy as a result of which 80%
of Indian e-commerce tends to be Cash on Delivery. However, COD may harm e-
commerce business in India in the long run and there is a need to make a shift towards
online payment mechanisms. Similarly, direct imports constitute a large component of
online sales. Demand for international consumer products (including long-tail items)
is growing much faster than in-country supply from authorized distributors and e-
commerce offerings.
Market size and growth
India's e-commerce market was worth about $2 billion in 2013, it went up to $6.3
billion in 2011 and to $14 billion in 2012. It is estimated that the market will grow up
to 8bn by year 20156 (refer fig 2.5) About 75% of this is travel related (airline tickets,
railway tickets, hotel bookings, online mobile recharge etc.). Online Retailing
comprises about 12.5% ($300 Million as of 2009). India has close to 10 million online
shoppers and is growing at an estimated 30% CAGR vis-à-vis a global growth rate of
8–10%. Electronics and Apparel are the biggest categories in terms of sales7 (refer fig
2.6).
Bank specializing in digital media and technology sector, the Indian e-commerce
market is estimated at Rs 28,500 Crore ($6.3 billion) for the year 2011. Online travel
constitutes a sizable portion (87%) of this market today. Online travel market in India
is expected to grow at a rate of 22% over the next 4 years and reach Rs 54,800 Crore
($12.2 billion) in size by 2015. Indian e-tailing industry is estimated at Rs 3,600 crore
(US$800 mn) in 2011 and estimated to grow to Rs 53,000 Crore ($11.8 billion) in
2015.
6 Source: Acel Patners 2014
7 Source: E&Y report 2013

Fig 2.5; Overall market size of ecommerce industry
Executive summary
4
$2Bn
2013
$8.5Bn
2016P
Online Shopping defined in this presentation does not include travel, ticketing and food or dering – only physical goods commerce
Online shopping of physical goods in India, will gr ow to $8.5Bn in 2016.
Number of online shoppers in India will mor e than double to 40M.
Key finding
2x Indian shoppers X 1.1x number of or ders per year per shopper X 2x average or der value
63% CAGR
KEY FINDING
25% CAGR
20M
40M
CY2013 CY2016P
Indian online shoppers will double
Accel estimates and Industry sources

Fig 2.6; Split of organized retail 2012

The organized retail online is just in its embryonic stage and contributes only 0.2% of
the total retail industry in year 20128 (refer to fig 2.6), but it will grow in year 2013 to
marginally higher of 0.3% of the total retail industry.
Fig 2.7; Ecommerce split in India
8 Source: Acel Patners 2014

About the company:
Company was launched in the year 2013 by
Chandrasekhar R Pallaka who is presently
CEO and Director of the company who
started with an initial investment of 20
lakhs INR, the company is registered under
the name Bhavitha retail solution according
to companies act. Presently there are around
5 interns and 3 full time employees working
under director.
Company main function is to provide platform for retailers to sell groceries online
and it’s the bread and butter for the company by which kirana sales earn major part
of its revenue. The retailers by this come online and order groceries by sitting at
home or at their convenience.
1. Business Model
Kirana sales follow a market place model where it does not store any kind of
inventory at their warehouses but tie up with local hypermarket and super stores
for selling of groceries online, for which
company charges certain amount of
commission from the retailers. The
commission is based on the sales that the
retailer makes through online.
Completely automated inventory and order
management platform, which help the
retailers to update the inventory without

much of computer knowledge, suppose for example if there is a change in price of
a product the retailer just has to update the billing software by which the price gets
automatically updated in the website by the software which built by the company
2. Location specific partnerships
At present company partners only with one
supermarket within a radius of 3km to 5 km.
These supermarkets are selected based on
various parameters such as number of years the
store is doing business in the locality, customer
base, number of items in the stores to name a
view of those. At a later stage supermarket
employees will be trained on how to handle a
delivery on daily basis and a quick time
ensuring quality
3. Track record
 Currently partnered with 6 supermarkets, 3 are in operational and 3 will be
added in June 2014.
 2 orders per day and avg. order total is INR1150
 Orders delivered within 40 minutes to 3 hours.

TEAM
Team Qualification
Supplychain/Logistics Lead:
M.Sc.(SupplyChainManagement)in
Universityof Coventry(UK). Worked
for ASDA retail store(Wal-Mart family)
for1 yearandWorked forPWCfor6
months. Handlinginventoryand order
processes.
Solution Consultant: MTech from
IITChennai. 10 years in IT
industry.Workingfor top aviation
company as Solution Architect.
Looking after Backend integration
with super markets and cloud
infrastructure
Marketing Consultant:Result
oriented approach to marketing
and publicity based on ROI.
External consultantwith over a
decade of experience in IT/ITeS/
Ecommerce domains.
Team
5 full time employees 2 Interns 2 Consultants 2 freelancers
Director: ChandrasekharR Pallaka
BE( Electricals) fromNIT, Durgapur in 1998.Worked 13 years in IT industry for ASPL, TCS, HP, Comcast,
AT&T. 9 years’experience in USA. Has Functional domain experiencein Wireless and Retail.

SWOT Analysis
Strengths
• Quick Home Delivery – within 2 hours
• Grocery business is location dependent.
• Helps local & neighborhood supermarkets
• Integrate with supermarkets POS for inventory and order management
Weakness
• No direct control over price, quality, stock and delivery time
• MultiplePOSes to integrate
Opportunities
• Organized retail market share of grocery industry is 10%
• E-Grocery share of organized retail grocery is 1%
• Growth of online retail market is 35% for next 5 years – need to be verified with source
• Employment is centralized around tier-1 and tier-2 cities and hence high traffic
Threats
• High Competition
• No Employment growth
• High Inflation

Strategic Group Mapping Based on Business Model
Strategic group 1 Strategic group 2
Strategic group 3

Integrated Business model followed by kirana sales
In this model company not only try to provide local super markets with I.T services
but also helps them in back end services like operations, delivery, maintaining quality
which were not present under the market model. And works on the basis of
commission based on the volume of order.
Advantages
Helps in quick delivery
 In this model company stress retailers on quick delivery and tracks the order till
it reaches the end customer.
Fixed costs and Overheads are low
 These costs are very minimal or negligible as it does not involve major cost to
the business
Scalability
 When compared to warehouse model the scalability may be faster but when it
comes to market model it may be a bit slow as there are many procedures and
careful scrutinizing of super markets must be done

Try to convert customers to be high loyal
 This model strives at converting customers to be more brand loyal by providing
them with quality and quick service
 Analytics on products sold can be shared with supermarket so that will help
them to make better decisions
This model is derived out of the other two strategic group and tries to fill in the
gaps/loopholes in both of the model
 No Inventory Carrying Cost
 Automated system
An automated system may be provided to supermarkets so that they can update the
information about the products and can have track over the prices.
Disadvantages
Less Bargaining powerover customers and buyers
 The supermarkets may bargain more as they have invested huge amount on the
business and will not be ready to compromise on margins
 Profits mainly depends upon supermarket online revenue
Easy for customers to switch over other
 The customers may discontinue the service if he finds the model is not adding
any extra revenue to the business and this will not take much of a time.
Less control over price and delivery time

 This model may have a less control over the prices of products as the hyper
market fixes most of the prices.
Suppliers need to be educated
 The main challenge is that supplier needs to be educated on using the
technology and how the website is going to add value to customers
Business Growth – Strategy
Criteria for Expansion to other cities:
 IT should have agile product to quickly integrate with multiple POSes
 Challenges should have been resolved for on time delivery
 Good progress is required on Inventory standardization
 Standardize the retail operations execution model
Strategy:
 Launch in cities: Bangalore, Mumbai, Delhi, Noida-Gurgaon by FY 2017 since
e-commerce growth is higher
 Launch in cities: Chandigarh, Hyderabad, Chennai, Calcutta, Ahmadabad,
Pune, Mysore by FY 2019.
 Tie up with supermarket chains because we can quickly launch in multiple
locations

Team size
City wise Expansion Plan
0
100
200
300
400
500
600
2014 2015 2016 2017 2018 2019
Cities
Supermarkets
Team Size
Team size includes Full time employees,
Consultants, contractors & interns. We will hire
contractors, interns, consultants as need basis not
exceeding 50% of number of full time employees

Sales & Marketing
Sales & Marketing Strategy:
 This Strategy is to promote KiranaSales as B2B product to supermarkets and as
B2C service to consumers
Our Position
 We do Express Delivery within 2 hours
 We are helping local & neighborhood businesses
Supermarkets
 Identify supermarkets based on potential areas for online consumption
 Tie up with supermarket Chains
 Tie up as sales channel partner with retail POS companies
Challenges
 Convincing supermarket to give us inventory data for website. Usually
supermarket business owners are hesitant to give sale/discount price
information.
 Solution: We provide same inventory in website as in the supermarket. By
adding sale price to website, we can promote your discounts to consumers that
increases order amount and by knowing the stock, we will have less hassle after
customer places an order and order fulfillment will be higher.
Consumers
Demography: Identify potential areas such as where traffic is high or no or less home
delivery options are available and presence of higher middle class.

DirectReach
Do BTL activities such as pamphlets, posters and campaigns where higher middle
class presence is located
 Conversion: Video display about KiranaSales.com in supermarkets
 SEO
 Google Adwords
 Social Media
 Blogs
 KiranaSales on wheels: Ex: advertisement on city buses, Taxi.
 Radio
 Newspaper
Challenges
 BTL Activities require huge man power. Difficult to do these activities in
larger scale.
 Solution: Advertise in local newspaper editions

Chapter-3
Analysis & Interpretation

Retailer Questionnaire
A sample of 35 questionnaires was collected from hyper and super market over a
period of 2 weeks and the primary was compiled into excel, after which analysis was
done according to the objectives.
Analysis
1. Are you aware of online grocery stores?
a. Totally aware
b. Moderately aware
c. Somewhat aware
d. Not at all aware
Totally
Aware
Moderately
aware
Somewhat
aware
Not at all
aware
27% 47% 17% 10%
8 14 5 3

Fig 3.1
 About 47% of respondent told that they are moderately aware of online
groceries stores which mean that the respondents know that there is something
called as online grocery stores and the products can be sold through online.
 About 27% of them have told that they are completely aware of the online
grocery business out of 27% interesting fact shows that above 88% of them
have already doing business online and own a website.
Awareness level of online grocery stores
Moderately aware47%
Totally aware 27%
Som ewhat aware17%
Not at all aware 3%

Fig 3.2
2. Is your store doing business online?
a. If “Yes” what is the website name………………
b. If “No” any plans of coming online in future (Time frame)
 1-6 months
 6-12 months
 1-2 years
 Not at all interested
If not at all interested what may be the reason
a. Thin margin
b. Lower revenue
c. Psychological environment

d. Any other please specify………………
c. If it was doing business online before and got closeddown (website name &
reasons for closing)
Existing
Customers
1-6 months 6-12 months 1-2 years Not at all
43% 13% 3% 23% 17%
13 4 1 7 5
Fig 3.3

 About 43% of retailers said that they are doing business online and own a
website which is dedicated for doing business online.
 About 39% of respondents replied that they will are planning to come online in
future over a period of 2 years
 And finally about 17% of them have told that they will not at all come online
due to various reasons
Fig 3.4
 Out of 43% who told they are doing business online about 31% of them use jiff
stores and zip circle respectively, and about 15% told they use kirana stores as
a platform to do business online remaining 23% do it by their own or have
different other platforms like aram shop, Zarorate.com etc.

 Out of 17% who told that they not interested in online about 40% of them have
told that it’s due to lower revenue which they make in the store, 20% have told
that it’s because of the thin margin that they earn
 Remaining 40% of them have given various other reasons like
1. No awareness of online grocery,
2. No time to take care online business
3. No business online
4. Less ambitious
3. What are the major difficulties listing your store online/ challenges that you might
have faced while listing your store online?
Rank on a scale of 1-8 where 1 being extremely difficult and 8 being least difficult
Particulars Rank
1. Cost of setting up website
2. Additional skilled manpower required to maintain website
and delivery
3. Difficulty in extra order fulfilment
4. Additional transportation cost
5. Easy mode of payments
6. No min order limit
7. Giving discounts on website
8. Technology issues (Assessing website, internet slowdown)

Rank Cost Add man
power
Extra
order
Transport Easy
mode
No min
limit
Giving
discounts
Tech
1 7 6 2 7 6 6 3 2
2 2 3 8 5 1 7 2 4
3 3 5 3 2 4 2 6 4
4 3 6 4 5 3 5 2 1
5 6 3 3 3 2 7 2 3
6 5 2 3 3 9 1 3 2
7 1 3 5 4 4 1 7 3
8 3 2 2 1 1 1 5 11
Rank Cost of
setting
up
website
Additional
skilled
manpower
Difficulty
in extra
order
fulfillment
Additional
transportation
cost
Easy
mode of
payments
No
min
order
limit
Giving
discounts
on
website
Technology
issues
1 23% 20% 7% 23% 20% 20% 10% 7%
2 7% 10% 27% 17% 3% 23% 7% 13%
3 10% 17% 10% 7% 13% 7% 20% 13%
4 10% 20% 13% 17% 10% 17% 7% 3%
5 20% 10% 10% 10% 7% 23% 7% 10%
6 17% 7% 10% 10% 30% 3% 10% 7%
7 3% 10% 17% 13% 13% 3% 23% 10%
8 10% 7% 7% 3% 3% 3% 17% 37%

Fig 3.5; Cost of setting website
Fig 3.6; Additional skilled manpower required to maintain
website and delivery
23%
7%
10% 10%
20%
17%
3%
10%
0%
5%
10%
15%
20%
25%
1 2 3 4 5 6 7 8
1 2 3 4 5 6 7 8
20%
10%
17%
20%
10%
7%
10%
7%
About 23% of them have told that
cost of setting website is a major
issue while coming online
Other 37% feel that cost is not an
issue as long it’s convenience for
customers.
About 20% feel that maintaining
additional manpower and delivery
may be a major concern
About 67% of retailers have ranked
it to be in a range of 1 to 4 rank
which a be major area of concern

Fig 3.7; Difficulty in extra order fulfilment
Fig 3.8; Additional Transportation cost
1 2 3 4 5 6 7 8
7%
27%
10%
13%
10% 10%
17%
7%
1 2 3 4 5 6 7 8
23%
17%
7%
17%
10% 10%
13%
3%
About 27% of them have told that
there may be difficulty in extra
order delivery and have ranked 2nd
And rest have given it 3,4,5,6 rank
with 10% and 13% respectively
About 23% of them have
ranked add transportation as
major concern while coming
online

Fig 3.9; Easy mode of payments
Fig3.10; No min order limilt
1 2 3 4 5 6 7 8
20%
3%
13%
10%
7%
30%
13%
3%
1 2 3 4 5 6 7 8
20% 23%
7%
17%
23%
3% 3% 3%
About a 30% of them have given
rank 6 for easy mode of payments
i.e retailers get their money from
online after certain set of days and
commission will be deducted
Retailers have rank this as the
least concern for coming online
and about 50% of them have
ranked it from 6 to 8

Fig 3.11; Giving discounts on webiste
Fig 3.12; Technology issues (Assesing website)
0% 10% 20% 30% 40%
1
2
3
4
5
6
7
8
About a 90% of retailers said
that it is difficult for them to
deliver to customers without a
min order limit and have ranked
between 1 to 5
10%
7%
20%
7%
7%
10%
23%
17%
1
2
3
4
5
6
7
8
About 37% of them have told
that technology issues like
system and internet slow down
have told it as least concern.

4. How important are the below mentioned website features to you while coming
online.
Particulars Extremely
important
Moderately
important
Slightly
important
Not at all
important
User friendly site
( easily updating website, stock
information)
Maintenance of website
Confidentiality
( stock information, price, customer
information)
Communication channels
(To communicate with customers
regarding delivery time, tracking
orders, discounts, mails etc)
Quick Reports
( daily stock reports, monthly
reports, customer buying behaviour
etc)
Integration with billing software
(POS)

User friendly
site
Confidentiality Maintenance
of website
Communication
channels
Quick
Reports
Integration
EM 57% 40% 83% 50% 63% 50%
MI 33% 40% 13% 40% 10% 40%
SI 0% 20% 3% 10% 27% 7%
NAI 10% 0% 0% 0% 0% 3%
 About 83% of retailers have told that confidentiality is the main feature that
website must have while they come online, this may be the customers personal
information which is ranked at the top, Even this include stock information of
retailers.
 About 63% of them told quick report as second most important feature, which
includes daily reports, monthly reports, and consumer buying behavior report.
57%
40%
83%
50%
63%
50%
33%
40%
13%
40%
10%
40%
0%
20%
3%
10%
27%
7%
10%
0% 0% 0% 0%
3%
User friendly Maintenance of
website
Confidentiality Communication
channels
Qucik report Integration with
pos
Fig 3.13; Features of website
EM MI SI NAI

 Rest other features is also given a greater importance like user friendly,
Maintenance of website, communication channels and integration with pos.
 But most the features are given a rating of extremely important or moderately
important least retailers have given slightly important or not at all important.
5. Would you be willing to pay a monthly subscription fees for listing your store in
online portals (Example just dial, zomato, just eat .in etc)
a. Definitely subscribe
b. Probably subscribe
c. Not certain
d. Probably not subscribe
e. Not at all subscribe
Definitely subscribe 1 3%
Probably subscribe 5 17%
Not certain 10 33%
Probably not subscribe 4 13%
Definitely not subscribe 10 33%

Fig 3.14; Subscription Model
6. Will you be willing to partner with online portals on sales commission basis?
a. Definitely partner
b. Probably partner
c. Not certain
d. Probably not partner
e. Definitely not partner
Definitely partner 10 33%
Probably partner 9 30%
Not certain 5 20%
Probably not partner 0 0%
Definitely not partner 6 20%
DS
4% PS
17%
NC
33%
PNS
13%
DNS
33%
About 80 % of the
retailers told that they will
not willing to subscribe to
such an model

Fig 3.15; Patnership Model
DS PS
NC
PNS
DNS
33%
30%
20%
0%
20%
We can see that 63% of the
retailers have told that they
will partner with the
company to sell the
groceries online.

Customer analysis
1. How often do you buy groceries?
Answer Options Count Response
Percent
Once in 3 days 15 21%
Once in a week 18 26%
Once in 15 days 9 14%
Once in a month 28 39%
Fig 3.16
14%
21%
26%
39%
Frequency of purchse
Once
in
15
days
Once
in
3
days
Once
in
a
week
Once
in
a
m
onth

4 members in a family buying pattern
Once in 3 days 6 14.3%
Once in a week 11 31.4%
Once in 15 days 4 11.4%
Once in a month 16 45.7%
Fig 3.17; How often do you buy groceries by 4 memebers in
family
From the above chart we can tell that four people in family is maximum number of
respondents and about 45% of them buy groceries once a month and about 31%
percent once a week
14.3%
31.4%
11.4%
45.7%
Once in 3 days Once in a week Once in 15 days Once in a month
About 39% of the customers told that they buy grocery once in a month and 26% of people
have told that they buy grocery once in a week and remaining of them have told it may be
once in 3 days and a week.

2. Where do you make big purchases of groceries for households?
Answer Options Response
Percent
Count
Local kirana stores
14% 11
Local Super market
31% 24
Malls and Hyper stores (Like Hyper city, Reliance
fresh, Big bazar)
24% 18
Wholesale stores
23% 18
Online stores
4% 3
Fig 3.18
`
4% online stores
23% Wholesale stores
24% Hyper stores
31% Local super market
14% Kirana stores
Poin t Of Pu rchase
17.4%
21.7% 21.7%
43.5%
7% 14%
30%
32% 32%
Per cent age Of Female and Males Point
of pur chase
0%

 About 31% of the customers told that they prefer to buy groceries from Local
super market
 About 24% and 23% of them told that they prefer to go to malls or buy it from
organised retailers in the market respectively.
 14% of the customers have told that they would buy groceries from local kirana
stores and remaining 4% in online stores
 And rest of 3% say that it may be cash and carry stores.
No of females purchasing groceries in local retail market which is our TG
Local kirana stores 21.7% 5
Local Super market 43.5% 10
Malls and Hyper stores ( Like Hyper city,
Reliance fresh, Big bazar)
21.7% 5
Wholesale stores 17.4% 4
Online stores 0.0% 0

Fig 3.19; Big purchases of groceries for households (females)
No of males purchasing groceries in local retail market
Local kirana stores 14.0%
6
Local Super market 32.6%
14
Malls and Hyper stores ( Like Hyper city,
Reliance fresh, Big bazar)
30.2%
13
Wholesale stores 32.6%
14
Online stores 7.0%
3
21.7%
43.5%
21.7%
17.4%
0.0%
Local kirana stores Local Super market Malls and Hyper
stores ( Like Hyper
city, Reliance fresh,
Big bazar)
Wholesale stores Online stores

Fig 3.20; big purchases of groceries for households
- From the above comparison we can tell that about 43.5% of females buy
groceries in local hyper and super market and zero percent online
- But when it comes to males it more or less equally divided about 32% among
local super market, malls and wholesale stores and about 7% tell they buy
online
3. How often do you buy groceries online?
Answer Options Response
Percent
Count
Extremely often 1%
1
Quite often 7%
5
Moderately often 11%
8
Slightly often 20%
14
Not at all 60%
41
14.0%
32.6%
30.2%
32.6%
7.0%
Local kirana stores Local Super
market
Malls and Hyper
stores ( Like Hyper
city, Reliance
fresh, Big bazar)
Wholesale stores Online stores

Fig 3.21; Purchase of groceries online
 It was interesting to see that about 60% of them have told that they never buy
groceries online
 About 20% have told that they order slightly often and only 1% of respondent
told that they buy groceries extremely often
Extremely
often
Quite often Moderately
often
Slightly often Not at all
1%
7%
11%
20%
60%

Fig 3.22
Females buying behavior online
Extremely often 0.0% 0
Quite often 0.0% 0
Moderately often 8.7% 2
Slightly often 8.7% 2
Not at all 82.6% 19
About 60% never purchase
groceries online
48%
82%
Pur ch ase o f gr o cer ies o nl ine
About 82% of female and 48% of males said t hey
never purchase grocery online
About 75% females and
50% males don't
purchase online due to
no touch & feel
About 35% and 38% respectievly due to not reliable;
H ur dles Faced by cust om er s
t o buy gr ocer ies online

Males buying behavior online
Extremely often 2.2% 1
Quite often 10.9% 5
Moderately often 13.0% 6
Slightly often 26.1% 12
Not at all 47.8% 22
About 82% of females said that they never buy groceries online when compared to
48% of males and about 26% of males told they buy groceries slightly often online.
4. If you not at all buying groceries online, then what may be the reasons for it?
Answer Options
Response
Percent
Count
No touch and feel of product online 50% 20
Not reliable 31% 15
Credit facility given by local kirana/supermarket
stores
7% 5
Not well worth with internet and online
shopping
7% 5
Other (please specify) 4% 2

Fig 3.23; Online drawbacks for grocery purchases
 Out of 60% of them who told that they never buy groceries online, 50% told
that No touch and feel of product make them not to purchase groceries online
 31% of them told that online grocery is not reliable may in terms quality,
delivery time, less awareness and others
 Remaining 19% told that it may be because of credit facility given by kirana
stores, not well worth with online, No quick delivery of day to day items.
No of females
Answer Options
Response
Percent
Count
Not reliable 15% 7
stores
5% 1
shopping
5% 1
50%
31%
7% 7% 5%
No touch and
feel
Not reliable Credit facility
given
Not well
worth
Others please
specify

No of males
Answer Options
Response
Percent
Count
Not reliable 38% 12
stores
4% 5
shopping
4% 5
5. How do you place order for groceries online
a. Logging through computer/laptop 49% 15
b. Logging through mobile/Smartphone 27% 8
c. By mobile app given by company 25% 5

Fig 3.24
 Out of 40% who told that they buy groceries online 49% of them told that they
log on to computer to buy groceries online and remaining 51% of them told
that they buy groceries through mobile or the app given by the company
6. How comfortable are you buying groceries online from a local supermarket/hyper
market where you frequently purchase
Extremely comfortable
20% 13
Quite Comfortable
31% 20
Moderately comfortable
22% 14
Slightly Comfortable
13% 8
Not at all comfortable
14% 9
Channel used t o pur chase online
Lor em ipsum dolor sit am et , consect et ur adipisicing elit ,
sed do eiusm od t em por incididunt ut labor e et dolor e m agna
smart phone
49%
27% 25%
49% of t h em t ol d t h at t h ey l og on t o compu t er t o pu r ch ase gr ocer i es
Remai n i n g 27% an d 25% u se smar t ph on e an d app r espect i v el y

Fig 3.25; Buying groceries online from local hyper market
Females buying online from local hypermarket
Extremely comfortable 21.1% 4
Quite Comfortable 36.8% 7
Moderately comfortable 21.1% 4
Slightly Comfortable 10.5% 2
Not at all comfortable 10.5% 2
20%
31%
22%
13%
14%
Extremely comfortable
Quite Comfortable
Moderately comfortable
Slightly Comfortable
Not at all comfortable But if it comes to buying
groceries online from local
hyper market about 20%
have told they find it
extremely comfortable
About 31% of them find it
quite comfortable and 22%
have told moderately
comfortable

Fig 3.26;buying groceries online from a local supermarket/hyper
market (females)
1. About 36.8% of females when it comes to local super market coming online
told that they are quite comfortable in buying online from them
2. And about 21% of them told they are extremely comfortable and moderately
comfortable respectively.
3. Above they had said that about 90% will not buy groceries online
21.1%
36.8%
21.1%
10.5% 10.5%
Extremely
comfortable
Quite Comfortable Moderately
comfortable
Slightly Comfortable Not at all
comfortable

7. What are your top priorities while ordering groceries online?
 About 90% of them told that quality of the products is extremely important
when they order groceries online as there is no touch and feel of product
 About 60% odd customers feel that easy mode of payment, confidentiality and
packaging is extremely important while purchasing groceries online
35%
61%
90%
38%
64% 67%
60%
38%
45%
31%
5%
38%
21% 19%
36%
45%
12%
5% 5%
17% 12% 14%
5%
14%12%
2% 0%
7%
0 2% 2% 2%
Fig 3.27; Top priorities to buy groceries online
Extremly Imp Moderately Imp Slightly Imp Not at all Imp
Price
(Discounts,
Quick
Delivery
Quality User
Friendly
website
Easy
Modes of
payment
Confidentiality Packaging Brand
name of
website
Extremely
Imp
35% 61% 90% 38% 64% 67% 60% 38%
Moderately
Imp
45% 31% 5% 38% 21% 19% 36% 45%
Slightly Imp 12% 5% 5% 17% 12% 14% 5% 14%
Not at all
Imp
12% 2% 0% 7% `2% 2% 2% 2%

 But it was surprise to see that about only 35% of them told that price and
discounts on website as important factor for buying groceries online
 About 93 % of males and 84% of females have told that quality is the top
priority while purchasing groceries online
 Secondly its confidentiality and easy modes of payments but 63% of females
told its quick delivery.
Fig 3.28
Fig 3.29
93% said
qualit y
70% said Confident ialit y
and easy modes of payment s
67% said
Quick delivery
60% said
Packaging
Top Priorities of Males An d Fem ales while pu rchasin g groceries
on lin e
84% said
qualit y
63% said
Quick Delivery
55% said
Confident ialit y
45% said
Packaging

About 35% of males and 23% of females are least concerned of the prices when they
buy groceries from local supermarket
Least Pr ior it y Pr ice
23% females said price is least concern
35% males said price is least concern

8. Name the website from which you purchase groceries online/ willing to purchase
in near future?
 About 86% of the customers told that they may use big basket to buy groceries
online and may use it in future, 10% of customers use Zopnow.com and
remaining 4% by local players like jiff stores, kirana sales etc.
9. Tick main reasons that make you order groceries from the above mentioned website
a. Price (Discounts, Coupons etc) 53.3%
b. Quick Delivery 55.6%
c. Quality 42.2%
d. User Friendly website (design, mobile app) 24.4%
e. Easy Modes of payment 26.7%
f. Confidentiality of customer information 13.3%
g. Packaging 24.4%
h. Brand name of website 20.0%
Any other please specify 10.00%
86%
10%
4%
Fig 3.30; Website used to buy groceries
Big basket.com Zopnow.com Others

Fig 3.31; Reasons to buy online
 About 55% odd respondents told that the price and quick delivery as the two
main factors that make them to buy groceries online
 42% of them told that quality as the main reason to buy groceries online from
the mentioned above website
 About 25% odd respondents have told that easy mode of payments, packaging,
brand name of website, user friendly website are important factors while
purchasing groceries online
Comparison of quick delivery V.S working class of respondents.
a. Price (Discounts, Coupons etc) 58.3%
b. Quick Delivery 75.0%
c. Quality 33.3%
d. User Friendly website (design,
mobile app)
41.7%
e. Easy Modes of payment 50.0%
f. Confidentiality of customer
information
25.0%
g. Packaging 33.3%
h. Brand name of website 16.7%
53.30%
55.60%
42.20%
24.40%
26.70%
13.30%
24.40%
20.00%
10.00%
a. Price (Discounts, Coupons etc)
b. Quick Delivery
c. Quality
d. User Friendly website (design, mobile app)
e. Easy Modes of payment
f. Confidentiality of customer information
g. Packaging
h. Brand name of website
Any other please specify

Fig 3.32; Working class main reason to buy groceries online
 About 75% of working class respondents told that more than price Quick
delivery is more important for them and then comes the discounts about 58%
9. Given an option, can you pick up the groceries by yourself at pickup points set by
the online grocery stores, (Like pickup point at your office location, Outside
supermarkets or any others at your convince)
Answer options Percentage
Yes 65.1%
No 34.9%
58.3%
75.0%
33.3%
41.7%
50.0%
25.0%
33.3%
16.7%
a.Price(Discounts,Coupons
etc)
c.Quality
e.EasyModesofpayment
g.Packaging

Fig 3.31
 About 65% of respondent said that they will be willing to pick the groceries
from delivery points that set up the grocery companies
 Out of which 45% of them are employed respondents
 When we see the males it is about 65% and females it’s about 61%
Pick up points for delivery
65% 35%
Yes No
Yes Yes
61%
65%

Chapter-4
Findings, Recommendations and
Conclusion

Findings from retailers
1. Study found about 90% of the retailers told that they are aware about online
grocery business and only 10% told that they are not at all aware of the online
business.
2. The analysis found that 27% of retailers told that they are completely aware of
online grocery store out of which 88% of them have already doing business
online and own a website.
3. Analysis showed that about 43% of retailers are doing business online and
about 39% of them have told they will be willing to come in future to online
over a period 6 months to 2 years time frame.
4. Analysis found that about 17% of retailers told that they will not be willing to
come online. In depth analysis of the same showed , 40% because of lower
revenue, 20% thin margin that grocery industry have to offer and various other
reason like
 No awareness of online grocery
 No time to take care online business
 No business online
 Less ambitious
5. The study showed that about 31% of them are using jiff store and Zip circle
respectively as platform for doing business online. About 15% have told it’s
kirana sales and rest 23% through various sites like aram shop, Zarorate.com.
6. The analysis found that about 90% retailers find it difficult to do home delivery
without any min order limit on the basket size purchased by customers.
Followed by the additional manpower required for delivery, transportation,

skilled manpower for maintaining website as the major concern to list their
store online. Retailers have ranked the above challenges from 1 to 5
7. Analysis showed that 50% retailers are least concerned giving discounts online
followed by Cost of setting website, Giving customers convince to swipe
credit/debit card for making payment which the retailer will be charged a
commission on sales, or delivering the extra order that comes through online
8. This clearly states retailers are trying to add value to customers and they are
least bothered of the above challenges as long they satisfy customer and
increase revenue through online.
9. Again about 83% of them told that maintaining confidentiality about
customer’s information like personal data, card pin numbers and stock related
information most important feature that a website must have and told that this
feature is extremely important.
10. About 63% of them told quick report as second most important feature, which
includes daily reports, monthly reports, and consumer buying behaviour report.
Rest other features is also given a greater importance like user friendly,
But most the features are given a rating of extremely important or moderately
important least retailers have given slightly important or not at all important.
11. The study revealed that about 80% of retailers told they will not be willing to
pay a subscription fees for hosting website. But 63% told that they will be
willing to partner with the website and pay commission based on sales basis.

Findings from customers
1. The study found that about 39% of them buy groceries once a month, which
may be big purchases and remaining once in three days or once in a week. And
four members in a family about 45% buy groceries once in a month, 31% once
in a week.
2. Analysis showed that 31% of them make their grocery purchase in local hyper
stores, 24% in organized retail stores and only 4% make purchases online.
3. In depth study showed that more number of females enter to local super market
then males, about 43.5% to 32% respectively. And 0% females make big
purchases online when it’s 7% in males.
4. About 60% of them have told they never buy groceries online and about 38%
said that they use it but not quite often it may be for experimental purpose.
When it’s divided on the basis of gender analysis shows that 82% females have
told they will never buy groceries online compared to 48% of male
respondents.
5. In depth study showed us that 50% won’t prefer to buy groceries online
because of no touch and feel factor when its further divided based on gender
about 75% females and 50% of males.
6. About 31% said its because the lack of trust customers have towards online
companies when further classified its about 35% females and 38% males.
7. Analysis showed that about 49% of them login through laptop/computer to buy
groceries online and remaining 25% through smart phone logging directly to
website and rest through mobile app.

8. The study revealed that 82% of females told they are not comfortable in buying
groceries online, but when it comes to buying it from local hyper market online
about 36.8% are quite comfortable and 21% of them are extremely comfortable
buying from the known source then buying from a unknown source online.
9. Analysis showed that about 90% of them told that quality is top priority for
ordering groceries online because of no touch and feel factor associated with
the online. Followed by packaging, confidentiality and quick delivery.
10.An in depth analysis showed that about 93% of males and 84% of females said
quality is top priority when they purchase groceries online followed by
confidentiality and easy modes of payments by males and quick delivery by
females.
11.It was showed that price dint matter to many customers and which as least
priority to them
12.About 86% of them told they will be using/ currently using big basket.com for
making groceries purchase online. The main reason for it because of price,
quick delivery and quality associated with the brand
13.Study was conducted to see if quick delivery is related to profession and it’s
found that about 75% of working respondent told it’s the top most priority
while purchasing groceries online then the price which is about 56%.
14.The study showed that about 65% of them are willing to pick up the groceries
from pick up points identified by the company. Out of which 65% of them
where males and 61% where females.

Recommendations
1. Kirana sales must work on creating awareness among retailers about the store
coming online will help them make there presence felt on digital platform,
which in return not only increase the revenues but also build the trust and brand
equity of the store among customers. As customers of this age have
information at the tip of there hand and would like to see there usually
purchasing store coming online.
2. Though 48% of retailers told that they are doing business online only handful
retailers said they are making sales online and many said that they are planning
to close down the websites because of low revenue made. The main reason for
this from customer point of view many females enter the store for big
purchases and mainly working professional look at buying groceries online, it
will be helpful if company target this niche customer segment.
3. As the findings show that a large part of population till not ready to buy
groceries online and mainly females are not at all comfortable in buying
groceries because of no touch and feel of products and same in case of males
online and more often males come online to experiment on how online grocery
works then returning to website for second time. Which is a major challenge
that the retailer and company face, to sell groceries online. So the company
should create awareness by telling customers that the stores where they
frequently purchase are selling the products online and the quality issue is
taken care of. And females are slightly comfortable buying groceries online
from known source.

4. The main difficulty of coming online is no minimum order limit, the company
may look at keeping a min order limit on basket size so that it help retailers to
increase the sales of hyper market
5. Following which they said that additional transportation cost, manpower
required for delivery, skilled manpower to operate system are major challenges
Customers said its quality, quick delivery and confidentiality of customers
information which is top priority. Retailers feel they will loose out customers
because of this and company should work on operation that will ensure that the
delivery takes place efficiently and add value to customers and retailers.
6. Company should concentrate on coming up with pick up points where
customers can walk-in and pick the deliveries ordered online or appoint
delivery boys in each store who deliver groceries to the vehicles of customers
as they order groceries in the morning through online and take there order back
while returning from work from local hyper market where they usually
purchase. Which will helps in solving quick delivery and quality issues up to a
certain extent.
7. Kirana sales should look at promoting the pick up points by giving discounts
on such purchases initially and the transportation cost savings must be passed
on to customers at initial stages so as to increase awareness and word of mouth.
8. The retailers are least concern about the challenges which add value to
customers like easy mode of payments to customers, cost of setting website,
giving discount etc. And customers want to have a better user interface, price
and packaging. The company may look on capturing this and come out with
innovative features to enhance the experience for customers so that retailers
will be confident enough to do business with kirana sales.

9. It is clear that retailers want to serve customers in a better way and are ready to
spend on anything that will them to retain the customers and add value to them.
Instead of acquiring new customers which is additional cost to the company.
Even customers feel that they are quite comfortable to buy groceries online
from known store.
10.Retailers said any feature on website related to customer must be given first
preference and are extremely important than any other features. From this
kirana sales must build a strong platform on which they secure customers
personal information and must assure retailers that all data related to customers
are safe and no compromise on the same
11. Other features must also be given a greater importance like user-friendly site,
12.The retailers are only willing to partner with the website only if they see sales
coming out of it, the company may initially stress on not charging the retailers
any amount and can try the service for few months for free after which they can
start charging commission on sales.

Conclusion
Retail industry is growing at a slow phase after its initial few years of growth, but the
online retail is growing at rapid phase and it is at embryonic stage where competitors
are slowly entering into the industry. If we see the organized retail sector it accounts
only 8% of the total retail market size, which will change drastically in the coming
years with entrant of new foreign players. When we look at the online grocery store it
only contributes to 1% of total ecommerce industry which is dominated by apparels,
mobiles, electronics and books the main reason for this is because of the no touch and
feel of the products which is important factor in grocery purchases this mind set may
take more time to change in the mind of the customers.
Kirana sales must try in adding value retailers by providing them the platform where
they can sell the groceries online this can built by providing retailers and customers a
solid platform which will help both of them. Most of the customers tell that they don’t
shop online because of the no touch and feel of the product kirana sales must first try
to build the trust among customers and make them repeat purchasers to the site. The
main hurdle faced by retailers coming online is that the additional manpower required
delivering to customers in time and the additional transportation cost that is involved
in delivering such groceries.
Kirana sales must first try building the trust of retailers by providing them the best
experience of coming online and should concentrate on making deliveries to
customers in a stipulated time by coming up with pick up points at certain places
where the sales of groceries is highest and by the way of giving discounts on such
pickups initially until the trust is built among customers.

Scope of the study
The study may be used by industry experts for any kind of suggestion that may be
required by them on grocery industry. The professors and students can use the study
as reference in case of any project on retail or groceries need to be prepared by them.
The academicians who are pursuing PHD can use this project in their research project
for any kind of reference of the industry. The companies or research agencies who are
in the same industry and need any kind of reference about the grocery industry can be
used by them. Finally the report may be used by kirana sales for improving the
companies and using the suggestions that are come out of extensive research.

Bibliography
 Kotler, Philip and Keller, Kevin lane; Marketing Management, 14th edition:
United states: Pearson Education, Inc, 2012
 Gilber, David; Retail management, Pearson, 2006.
 Piercy, David and Cravens, David; Strategic Management, Tata McGraw-Hill,
8th edition, 2009
 Aaaker, A David; Building strong brands, The free press, 2012.
 Aaaker, A David, and V. Kumar, Marketing research, John Wiley & Sons,
Inc,7th edition.
 Burton, Walt (April 20, 2014). What increased e-commerce means for brick-
and-mortar stores. Blog, Guest Blogger.
 Roggio, Armando. (June 22, 2013), Four Reasons Small Brick-and-mortar
Retailers Need an Online Store. Business Strategist.
 Nair, Radhika, P. ET Bureau, Apparel brand Soch to launch E-store. Economic
Times
 Kamath, Raghavendra. (May 31, 2014), Reliance Retail to go online. Economic
Times
 Nanditha. (2012). Bricks, clicks and mortar business model.
Dalal, Mihir. (2014). E-commerce boom hurts brick-and-mortar retailers. Live
Mint
 Mukherjee, Writankar. & Malviya, Sagar. Offline retailers try to compete with
Flipkart, Snapdeal by offering discounts, swift delivery. Economic Times
March 19, 2014.
 Retail in India, 21 September 2014 <htpp://www.ibef.com>
 Digital India, 2nd Oct. 2014 <htpp://www.wearesocial.in>
 E&Y Report on Retail, 2012
 Acel Patners, Growth of retail in India, 2013

APPENDIX
Retailer Questionnaire
DearSir/ Madam
I am student of CMS Business School, Jain University studying 2nd semester MBA.
As a part of internship activity, I am doing Market survey on online grocery stores.
Hence it will be helpful if you can take few minutes in filling the questionnaire and
provide relevant information which would be treated as confidential and used for the
academic purpose only.
Name :
Store Name:
No of years after store opening: ………………….
No of Branches: ………………….
Location: B’lore North B’lore South B’lore central
Address and phone number of store:
…………………………………………………………………………………………
……
1. Are you aware of online grocery stores?
a. Totally aware
b. Moderately aware
c. Somewhat aware
d. Not at all aware
2. Is your store doing business online?
a. If “Yes” what is the website name…………………………………………………..

b. If “No” any plans of coming online in future (Time frame)
 1-6 months
 6-12 months
 1-2 years
 Not at all interested
If not at all interested what may be the reason
e. Thin margin
f. Lower revenue
g. Psychological environment
h. Any other please specify…………………………………………………………
c. If it was doing business online before and got closeddown (website name &
reasons for closing)
………………………......................................................................................................
..........................................................................................................................................
.....................
3. What are the major difficulties listingyour store online/ challenges that you might
have faced while listing your store online?
Rank on a scale of 1-8 where 1 being extremely difficult and 8 being least difficult
Particulars Rank
9. Cost of setting up website
10. Additional skilled manpower required to maintain website
and delivery
11. Difficulty in extra order fulfilment
12. Additional transportation cost

13. Easy mode of payments
14. No min order limit
15. Giving discounts on website
16. Technology issues (Assessing website, internet slowdown)
Any other please specify
…………………………………………………………………………………………
………
4. How important are the below mentioned website features to you while coming
online.
Particulars Extremely
important
Moderately
important
Slightly
important
Not at all
important
User friendly site
( easily updating website, stock
information)
Maintenance of website
Confidentiality
( stock information, price, customer
information)
Communication channels
(To communicate with customers
regarding delivery time, tracking
orders, discounts, mails etc)
Quick Reports
( daily stock reports, monthly
reports, customer buying behaviour
etc)
Integration with billing software
(POS)

5. Would you be willing to pay a monthly subscription fees for listing your store in
online portals (Example just dial, zomato, just eat .in etc)
a. Definitely subscribe
b. Probably subscribe
c. Not certain
d. Probably not subscribe
e. Definitely not subscribe
6. Will you be willing to partner with online portals on sales commission basis?
a. Definitely partner
b. Probably partner
c. Not certain
d. Probably not partner
e. Definitely not partner
If not willing to go for both the models than what may be reason for it
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
……………………
Any Comments
…………………………………………………………………………………………
……………………………..............................................................................................

CUSTOMER QUESTIONNAIRE
Dear Sir/ Madam
I am student of CMS Business School, Jain University studying 2nd semester MBA. As a part
of internship activity, I am doing Market survey on online grocery stores. Hence it will be
helpful if you can take few minutes in filling the questionnaire and provide relevant
information which would be treated as confidential and used for the academic purpose only.
1. How often do you buy groceries (May be 2 or more options)
Once in 3 days Once a week Once in 15 days Once a month
Any other please specify………………………….
2. Where do you make big purchases of groceries
a. Local kirana stores
b. Local Super market
c. Malls and Hyper stores ( Like Hyper city, Reliance fresh, Big bazar)
d. Wholesale stores
e. Online stores
3. How often do you buy groceries online
Extremely often Quite often Moderately often Slightly often Not at all
4. If you not at all buying groceries online, then what may be the reasons for it?
a. No touch and feel of product online
b. Not reliable
c. Credit facility given by local kirana/supermarket stores
d. Not well worth with internet and online shopping
Any other please specify………………………………………………………….
5. How do you place order for groceries online
a. Logging through computer/laptop
b. Logging through mobile/Smartphone
c. By mobile app given by company
6. How comfortable are you buying groceries online from a local supermarket/hyper market
where you frequently purchase
Extremely comfortable Quite Comfortable Moderately comfortable
Slightly Comfortable Not at all comfortable

7. What are your top priorities while ordering groceries online?
Particulars
Extremely
Important
Moderately
Important
Slightly
Important
Not at all
Important
Price (Discounts, Coupons etc)
Quick Delivery
Quality
User Friendly website (design, mobile app)
Easy Modes of payment
Confidentiality of customer information
Packaging
Brand name of website
Any other please specify…………………………………………………………….
8. Name the website from which website you order groceries online very frequently
………………………………………………………………………………………………
9. Tick main reasons that make you order groceries from the above mentioned website
a. Price (Discounts, Coupons etc)
b. Quick Delivery
c. Quality
d. User Friendly website (design, mobile app)
e. Easy Modes of payment
f. Confidentiality of customer information
g. Packaging
h. Brand name of website
Any other please specify…………………………………..

6. Given an option, can you pick up the groceries by yourself at pickup points set by the
online grocery stores, (Like pickup point at your office location, Outside supermarkets or
any others at your convince)
a. Yes b. No
Any other comments
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………………………………………………….
Date:
Place:
Signature:
Age Group: Below 20 20-30 30-40 Above 40
Gender: Male Female
Family Size: 1 2 3 4 5+
Location: B’lore North B’lore South B’lore central
Address:
…………………………………………………………………………
……………………...…...……………………………………………..
………………………………………………………………………….

Project On Online grocery_MBA Marketing

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Destacado

Destacado (15)

Similar a Project On Online grocery_MBA Marketing

Similar a Project On Online grocery_MBA Marketing (20)

Último

Último (11)

Project On Online grocery_MBA Marketing