CONSULO – CASE STUDY COMPETITION

DELHI TECHNICAL UNIVERSITY (DTU), NEW DELHI

Presented By
Group- 5
Dipannita A.
Participant: Rohan Shandilya
Saketh P.
Team Name: Team U Rohan S.
Email ID: [email protected] S. Shivam
Institute: Indian Institute of Management, Udaipur Hrushikesh C.
 CONTENTS

E- Groceries Strategies for

Market
01 06 Expansion

Suggestions for
Zepto 02 05 Long Run

Proposed
Business Model
& Strategy
03 04 Operational
Improvements
 E-Groceries Market
Global India

Penetration percentage of E-Groceries in 2021 E-Groceries Potential in India

Average E- Grocery Delivery Time Forecasted E-Groceries Growth Trends for India

*Market Size in US $BN

 Zepto- Groceries delivered in 10 minutes

About Zepto Market Share

 Zepto Name: Denotes a factor of 10−21

 Founder: Aadit Palicha and Kaivalya Vohra
 Valuation: $ 900 Million
 X-factor: Delivery under 10 Minutes

Zepto’s Journey

*as on Jan-22

Major Competitors

Source: ET Research, PGA Labs Competitive intelligence

 Business model and the supply chains strategy of Zepto
Inventory Based Model of Zepto

Products from Transportation Dark Store Packaging of Transportation Delivery of

Farm, of products to products as per of products products to
Mills, the Dark Store customer customer
Consumer orders Zepto
goods
companies Dark Store

Supply chain and Operational strategy for Inventory Based Model of Zepto

02 04 06 08
User Friendly Delivery on Two- Customer
Wheelers Smart Basket Satisfaction
Website
03
01 Concept of Shortest 05 07
“Farm to Home” Path for Picking and Dark Stores Marketing
Experience delivering Campaign
 Q1) How can Zepto improve its operations and beat established giants like Big
Basket and Swiggy Instamart to differentiate themselves in this competitive
quick commerce sector?
Following measures shall further improve Zepto’s Operation:-
 Increase Dark store density in Tier 1 cities.

 The order details should directly reach to the nearest dark store, instead of being channelized through the central hub.

 Though Zepto has the best customer satisfaction statistics in comparison to BigBasket and Swiggy Instamart in India, they
should further reduce the customer complaints to improve the gap of customer satisfaction in comparison to their
competitors. Like provision of discount for the next order upon any delay of delivery.

Source: Clootrack
Q2) What changes can you suggest in Zepto’s business model such that they can
make sustainable profits in the long run?

Following measures shall further support Zepto to sustain their profits in long run:-

 They should adopt Omni-channel strategy i.e. combination of dark store and local store. Since more than 95% grocery
transaction are through traditional buying, it would help them gain more profits and channelize those profits in improving
their target of 90% of online order deliveries to further extent. This could also help them in enhancing store density to
reduce the delivery time.

 Service option of planned ordering for days/weeks/months could be provided to customers, it would improve customer
retention and help in better planning of delivery of goods.

 Since the majority of the dealing is with perishable goods, the delivery of the goods for which 75% of their fresh life has
been consumed could be used to fulfil the requirements of the local dhabas and vendors. Therefore, such tie ups could
help in reducing the wastage and improving the customer base.
Q3) Zepto is currently operating only in tier 1 metropolitan cities. What
strategies should they adopt to expand to tier 2 and tier 3 cities?

Following strategies shall support Zepto to expand in tier 2 and tier 3:-

 Population dense areas shall be targeted first when entering into tier-2 and tier-3 cities.

 Omni-channel strategy should be adopted to compensate the online demand difference between tier 1 and tier 2 & 3 cities.

 Strategy of recurring discounts could be offered to capture market and expand the customer base at pace.

 A chain of Distribution centre and combined distribution should be practiced to reduce the transportation cost.

 They could equip the local vendors with training and technology in the less dense area reduce the huge investment of dark
store creation. Like Ola and Uber has expanded.
THANK YOU