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Submitted by:Rakesh PanghalBUSSINESS MODEL,MARKETING MIX,OPPORTUNITIES

Grofersis an on-demand delivery service that connects consumers with local merchants in the neighborhood.

Itoffers a wide assortment of groceries, fresh fruits & vegetables, cosmetics, electronics, bakery items, baby care products, pet care items, flowers and much more.

Grofers started its operations with Delhi NCR and currently operates in a total of 17 cities across the India.Introduction

The company started working on a B2B model before becoming a hyperlocal B2C delivery model.In October 2015, Grofers temporarily halted operations in certain parts of NCR due to operational issues in 9 cities.

Products At Grofers

Grofers has raised $46.5 Million till date after 3 rounds of funding bySequoia CapitalandTiger Global.

Grofers was founded on December 27, 2013 by Saurabh Kumar and Albinder Dhindsa. Saurabh Kumar is a graduate fromIIT Bombayand holds an MS fromUniversity of Texasin Austin.

Saurabh was the head of operations at Rasilant Technologies in Mumbai and prior to that worked as an engineer atCambridge Systematicsin New York.

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Grofers is changing the way local commerce finds its way to your doorstep.

It is providing hyper-local logistics that enables smoother transactions between local merchants and consumers.

They started operations on January 1st of 2014 and within a year, the company has processed over 150,000 local transactions.

The biggest advantage we have is a well spread out delivery network that services over 170 merchants across the three cities.

More About company

InventoryNO, grofers has no inventory and no warehousing. As grofers is into grocery items which are mainly FMCG and has very less shelf life, there is no use of stocking them upfront. Stocking products may lead to expiration etc. It also increases costs.

Grofers follows full automated and computerized way. A virtual inventory is uploaded on the serves which a person can see in the application, and can place an order. Once the order is placed, the product is purchased from the LOCAL RETAILERS (Kiryanawals) and the delivered to the final consumer.

Because of this virtual inventory, they are saving in the cost of warehousing as well as reducing wastage risk.

PaymentsThere are by 2 ways a customer can pay at Grofers.

CASH ON DELIVERY : A customer pays the cash when the executive brings the grocery. The only disadvantage of COD is, discounts cannot be availed while using COD as payment option.

BY CREDIT CARD / PAYUMONEY : One can easily pay by using his credit or debit card. The payments by cards are secured by SSL certificates to avoid any payment frauds. Also, a costumer can choose to pay by payumoney which is an online payment gateway like CCAVENUE but it gives an additional discount of 1%.

Grofers is a hyperlocal service provider. They promise to deliver grocery in 90 minutes. To make this possible they have designed a order chain management system.

While placing an order via application, a customer enters his or her location in the address section, once order is placed successfully, that order is received by the SUB STATION of that area. Once the order is received, it is sent to the field delivery executive, they have a specially designed application for the executives which serves the delivery information etc. Field executive procures the groceries from the store, then with the help of GPS enabled device, they locate the address and deliver the product.

Delivery

Grofers has raised $46.5 Million after 3 rounds of funding:

Seed Funding: $0.5 Million from Deepinder Goyal, Founder ofZomato, andSequoia Capitalin September 2014

Series A: $10 Million was closed in February 2015 bySequoia CapitalandTiger Global

Series B: $35 Million was announced in April 2015 bySequoia CapitalandTiger GlobalFinancials

My Green Box: Grofers acquired a Delhi NCR based grocery delivery mobile app, My Green Box, for an undisclosed amount.

A 15 member team along with Varun Khurana (Founder - My Green Box) joined Grofers with Varun Khurana as the CTO.Acquisitions

On demanded delivery start ups Grofers has raised Rs 62 crore ($10 million) in venture capital funding led by investment firm Tiger Global Management.

It was the good and reliable amount of money that can nearly help the organization to grow more in near future.

Infact , Grofers has decided to expand there manpower so that they can work more effectively and efficiently.Investors

Business ModelCommission Revenue ModelGrofers has tie ups with different merchants . Since Grofers is making it is possible for these merchants to access more consumers via the app, these merchants pay Grofers a commission of 8% on orders below 500-700 and above it charge 12% to 15% on orders between 700-1000.Grofers business model generates revenue for us through merchants. We charge a small percentage for every sale we get for them. For our consumers, the delivery is free of cost if their order is more than 250. Else, we charge them 49.

Sales RevenueIn some product category Grofers take a part as revenue from the merchant as the some part of the total sale.The revenue depends upon the agreement between Merchant and the Grofers.

Advertisement RevenueGrofers charges merchants for display there product on top of the app. Grofers is also charging for search function in which when a customer search for a grocery then the paid merchants product is shown first. Grofers is not charge as on now for the store listing on Grofers app. It is totally free of cost.

Marketing MixProductsGroceryFruits and vegetablesBakeryElectronicsBeautyHome electronicsBaby and kidsPet careFlowers These are the products categories in which Grofers deals.

Price and PromotionPrice Grofers earns revenue by Commission making commission between merchant and customer.Promotion Grofers focus on delivering the best customer service to our customers.We believe there is no better marketing than having your customer speak about your service. Promoting through discount offersPromotion through Google Adsense

PlaceCurrently operating in 17 Indian cities and counting. AgraChennaiJaipurMumbaiVadodaraAhmedabadDelhi NCRKanpurNagpurBengaluruHyderabadKolkataPuneChandigarhIndoreLucknowSurat

Retail Sector/ Online Grocery Analysis

Online Grocery Market estimated to be less than $100M in 2014 is expected to grow by 25- 30% to cross $20B by 2020- IDGCurrent India Retail Market is $925 Billion that grew by 5.8% in 2010-2014 is set to reach $1.3 Trillion by 2020- AT Kerney69% of Retail Industry is Food and GroceryRetail industry of India is amongst the top 5 of the world and Online Grocery Market is expected to grow at a decisive pace in the current future

Target Audience Categorization

Women(30- 35) Students (20- 25)

Website Competitive Analysis WebsitesGlobal RankingIndian RankingBounce RateSearch Visit %Total Sites Linking In grofers.com16178118515.50%10.991localbanya.com19784166434.60%19.7157peppertap.com40185318810.60%1653zopnow.com19809151632.80%26.4173zopper.com47692443158.4%31.6409bigbasket.com460731020.9%19.5504onekirana.com1390701492044.1%39.230

Grofers.com is the second best online grocery website, with a good Bounce Rate. However Search Traffic, and Total Sites linking in can be improved

Website Traffic Source: Search

Source: SimilarWebBidding on relevant keywords can improve the ratio of Paid Searches

Major Competitors

Pepper Tap

Major Grocer

Grocer Max

Big Basket

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