Local Banya (Understanding the Strategy of Local Banya, and implementing the new one)
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Transcript of Local Banya (Understanding the Strategy of Local Banya, and implementing the new one)
About Localbanya is India’s premier online convenience store with services across Mumbai (including Thane & Navi Mumbai), Pune, Hyderabad, Delhi, Noida, Ghaziabad & Gurgaon.
Founders Karan Mehrotra Co-Founder & CEO
Rashi ChoudharyCo-Founder & COO
Amit NaikCo-Founder & CTO
Since May 2012, Local Banya have aimed to revolutionize the grocery shopping experience with a single minded focus to make each step of the shopping process – from its website to the customer’s home –
Industry Interface Although the retail market is very old concept, but at the same time it is the biggest market. In India it accounts For 70% of total market
E-grocery is relatively new concept in India, but it’s getting pace day by day since the inception of e-grocery Business like LocaBanya.com
While BigBasket and Zopnow dominate in Bangalore, Bigbasket and LocalBanya have been evangelizing the Mumbai market.
The expected player in this e-grocery may be the big giant/business houses like Reliance fresh and Future group
E-grocery market is very big, and still it has been covered only up to 7-8%. So, still there are huge potential notOnly for existing players but also for new entrants as well as for offline big grocery giants
Current Game Theory Simultaneous
Local Banya’s competitors are bigbasket.com, aaramshop.com, zopnow but they are far behind from Local Banya.
Currently Local Banya is not considering it’s competitors while making decisions. They are focusing on their core business, and are focusing on customer satisfaction, and expanding their business in to different regions/cities.
Since the opportunity in e-grocery business is sky-hi. So every one has a great opportunities to grow in this market simultaneously. And, Local Banya is trying to sophisticate it’s business for the customerwithout considering what others are doing
Current Rules of Game Level Playing
In India out of total market, 70% is of retailing market
As of now all the offline as well as e-tailing has been able to penetrate only 7-8% of total retail market
E-grocery is a kind of new concept in this grocery/retail business, and still they would need to do a lot to capture the market in different parts of country. So it’s not only Local Banya but also all the e- groceries existing as well as new entrants which might come will have an ample opportunities to participate in this e-grocery business. So, they can not only compete & survive but also can grow together.
Current Warfare Strategy Guerrilla
Though e-grocery is new concept in retail business but we can’t not exclude the offline business entity
Local Banya has started it’s operation in Mumbai, and concentrated in Mumbai for nearly 1 and ½ year exclusively, and then they started expanding in other cities like Hyderabad, Pune and Delhi areas, so, Local Banya is using Geographic Guerrillas as warfare strategy
FIT THEORY
1) Basic Consistency
2) Value Reinforcement
As every value in value chain network amplifies the another value in order to enhance the efficiency of that second valuewhich ultimately enhance the overall value chain network. As for as local banya is concerned value chain like Multifaceted Source helps to just-in-supply system which ultimately reduce delivery time and improves efficiency ofwhole system. And, not Holding inventory helps to cut down the cost which benefits not only to customer but Local Banya as well to quote low price
As a e-tailing grocery, Local Banya’s prime responsibility is to service customer in the best way or as per customer’srequirement. Basic focus areas are 1) hassle free buying for customer 2) providing Branded/no-branded productsat optimal price 3) delivering good as fast as possible and as per time slot chosen by the customer
Discounted price Strong
supply/chain
Single stop grocery shop
Customer preference/s
atisfaction
Multifaceted
Sourcing
Large no. of listed
products
No inventory holding
Quality check before
delivery
Just-in-time
partner for fruit & vegetable
Social Media
Mkt/WOM Mkt
User-friendly
web interface
Fast delivery/flexible
time slot
Central ware
house for packaging
Partnership with offline retailerMore &
more buyers
Customer’s data manage
ment
Activity Map
PLC
Intro
GrowthMaturity
2013 2015-34 2035 expected
IFE (Internal Factor Evaluation)
Strength
Weakness
1) Strong supply-chain network2) Multifaceted sourcing3) Tie-up with offline retailers4) Online delivery rate 97%5) Fill rate 99%6) Fast & Flexible delivery time slots
1) Reverse logistic is difficult2) Free delivery of less than Rs.500 is not affordable
EFE (External Factor Evaluation)
Opportunities
1) Business expansion in other cities2) Improve customer & merchant relationship3) Tie-up with more retailers4) Targeting people who are not e-tailing friendly
Threats
1) New entrants2) Competition from traditional retailers3) Contempt from local vegetable seller4) Introduction of law for e-tailing can hamper growth
Factors Evaluation
IFE MATRIXS.No.
Particulars Rank (a)
Reverse Rank (b)
Weightage (based on ranking)
Rate Weighted Score
Strength
1 Strong Distribution network 1 8 0.22 4 0.88
2 Multifaceted sourcing 2 7 0.19 4 0.76
3 Tie-up with offline retailers 6 3 0.08 2 0.16
4 Online delivery rate 97% 5 4 0.11 3 0.33
5 Fill rate 99% 7 2 0.05 3 0.15
6 Fast & Flexible delivery time slots 3 6 0.16 4 0.64
Weakness
1 Reverse logistic is difficult 8 1 0.03 1 0.03
2 Free delivery of less than Rs.500 is not affordable
4 5 0.14 2 0.28
Total 36 36 3.23
Formula for weightage=(1/Σa)*b
Ex. (100/36)*8=
EFE MATRIXS.No.
Particulars Rank (a)
Reverse Rank (b)
Weightage (based on ranking)
Rate Weighted Score
Opportunities
1 Business expansion in other cities 1 8 0.22 4 0.88
2 Improve customer & merchant relationship 4 5 0.14 4 0.56
3 Tie-up with more retailers 5 4 0.11 3 0.33
4 Targeting people who are not e-tailing friendly
3 6 0.16 3 0.48
Threats
1 New entrants 2 7 0.19 3 0.57
2 Competition from traditional retailers 6 3 0.08 3 0.24
3 Contempt from local vegetable seller 7 2 0.05 1 0.05
4 Introduction of law for e-tailing can hamper growth
8 1 0.03 1 0.03
Total 36 36 3.14
IE MATRIX
4 2
2
4
31
3
1
IEF Matrix Score
EFE
Mat
rix S
core Grow & Build
Hold & Maintain
Harvest & Divest
Creating A Blue Ocean
Customer preference is prime priority
Providing goods at lower price
Customer Value
Low Cost
Creating A Blue Ocean Introducing Ballot Box
Bus S
topborivali
Local Banya Ballot Box
3
232
Local Banya Ballot Box
People can write the required product and post it here
Local banya’s worker will collect at definite time
Local Banya’s packing warehouse
Local Banya Membership Card
xxxxxxxxxxxxxx
Creating A Blue Ocean Tie-up with Restaurant, Gym & College’s Canteen
Thank you