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A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 1
EXECUTIVE SUMMARY
This report is about my internship program with Opinio (Moonshots Internet Private Limited)
in South Bangalore Region. It's an organisation for last mile delivery service for food,
grocery, bakery, peer to peer and more. In this comprehensive report, I have discussed about
every major aspect of Market Potential of Opinio, which I observed and perceived during
my internship program during September 25th
, 2015 to November 25th
, 2015.
In the first part of the project report, the general information of the Industry and the
organization has been collected. Information is gathered through the primary and secondary
source as well. In the second part of the report, contains the specialized subject study. Along
with it, the processes, policies and procedures of the organization are also discussed in detail.
During my internship program, I mainly worked on Business Development and Sales of Last
Mile Delivery Services of Hyper-local Markets mainly in Bangalore and ensuring Customer
Satisfaction by providing post sales services.
As the main purpose of the internship is to learn by working in the practical environment and
apply the knowledge acquired during the studies in the real world scenario in order to tackle
the problems using the knowledge and skills learnt during the academic process, In this
report detailed analysis of organization is done and all the major aspects have been evaluated
to analyse the current position of the delivery systems.
This internship report covers many important aspects which are basically related with the
operations and technological aspects of the organization. My focus while working in the
organization was on how to reach the target customer and communicate them about the
services and its advantage and provide them with a long term value. After deciding the way
next step is to select the appropriate medium so as to reach to the maximum possible target
audience by utilizing minimum resources.
Today, people live in an environment that is increasingly moving towards services based
economy. The concepts of service quality and satisfaction in marketing activities during the
past decades have been the focus of attention, and last mile delivery service is like a new
cherry that everyone is running behind. There are so many new companies have come up
during the period of 18 months like Groffers, Road Runner, Shadowfax, Quickli, Townrush
and a lot more. But Sustaining in a market like Bangalore is not an easy job, this is the reason
that a lot of major players like Tiny Owl and Pickingo had to quit the market as they were
unable to sustain. This study is based on the strategies of Opinio of how they are still thriving
in the market, and also the limitations that needs to be rectified.
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NATIONAL SCHOOL OF BUSINESS Page 2
1. INTRODUCTION
An Analysis on the Market Potential of adopting & implementing ― Integrated Lastmile
Delivery Service‖ with special reference to OPINIO-HyperLocal Logistics
Company,Bangalore-68.
1.1 PROBLEM DEFINITION
Market Potential is the entire size of the market for a product at a specific time. It
represents the upper limits for the product in that market. Market Potential is usually
measured by either Sales Volume or Sales Value. For example the market potential
for ten speed bicycles may be worth USD 5,000,000 in sales each year. On the
otherhand, the market potential for motorcycles may be 5,00,000 units each year,
which is a measure of sales volume rather than sales value.
Analysis of Market Potential :- Determining the market potential of a product is a
part of successful marketing process & requires marketing research. We will need to
examine atleast 3 factors viz- Potential Customer base, Competitor Analysis &
analyzing the current Environmental Conditions.
Analyzing Customer Base- We need to determine the size & demographic
conditions of your potential customers, important information to obtain includes the
population size of your target market, their product preferences & their median
annual household income.
We can assess our product’s potential customer base by analyzing Secondary data
such as demographic data collected by Survey organizations on household
demographics of each state. We may also collect Primary data to analyze the market
potential of a product. Typical means of collecting Primary data include Telephone
Surveys using a Random sample of households drawn that we believe match our
target.
Analyzing Competition- It is important to assess the number of your
competitors, their respective shares of the current market share & how can our
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NATIONAL SCHOOL OF BUSINESS Page 3
product be different to them. This research can be undertaken using both Primary &
Secondary data research. Secondary data sources may include Industry survey,
membership directories of industry organizations, data collected by Local chamber of
commerce & state agencies. Primary data can be collected by simply shopping around
& examining your competition from the perspective of not only a competitor but as a
customer.
Analyzing Current Environment- Market Potential is not a static concept- it
changes with the general economic & political environment. For example- if interest
rate goes up, people may not be using credit to purchase bif-ticket items like cars.
This will lower the demand for those products & decrease the overall market potential
of the product. A change in tax rates may also suppress spending as less money is
available for discretionary purchases, thereby reducing the overall market potential of
a product.
MARKET POTENTIAL & MARKET SIZING ANALYSIS:-
Market analysis services from Mapping Analytics help us to know the economic
opportunity available to us in any geographic market, whether we sell to consumers
or business or both, market sizing provides intelligence we need to deploy Sales &
marketing resources effectively.
Benefits of Market Potential Analysis-
1. Understand market potential for a single store, network of stores or a single
market.
2. Deploy resources effectively by ranking markets in priority order.
3. Forecast total opportunity in terms of number of customers & revenue potential.
4. Estimate your market share.
Elements of a Market Potential Analysis:-
1. A Customer Profile to understand where to find more like them.
2. Market Penetration & Market Share reports showing performance in existing
marlets & expected performance in new markets.
3. Market Ranking reports allows to prioritize resource deployment into new markets.
4. A Geographic view of market opportunity on detailed maps.
Strategies for Sizing Market:- Market Potential can be expressed as a function of –
A. The number of Customers Purchasing
B. Amount Purchased
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C. Frequency of Purchase
In other words, Market Potential = (How many*How much*How often)
BOTTOM UP or TOP DOWN MARKET ANALYSIS??
 A Bottom up approach to market sizing starts with customers- How much & often do
they buy? What is their profile? How many potential customers do we have in the
market based on Customer profiles? How can we reach them?
 A Top down approach starts with market & industry data. It takes a close look at a
geographic market area & profiles the Consumers and/or Businesses to let us know
their propensity to buy our products & services.
CLUSTER ANALYSIS for MARKET SIZING
We often use lifestyle clustering systems to size consumer markets. Clustering systems
operate under the premise that ― birds of same feather flocks together‖. That means people
with similar buying behavior & demographic profiles tend to live close together. This helps
you identify neighborhoods or markets where your potential is high.
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1.2 COMPANY PROFILE
About the service:
We are an On-Demand Delivery service provider. Our services can take care of the entire
delivery aspect of your business.
Process: Simple and Efficient.
 Get your order from whichever portal preferred (phone orders, online portals)
 Our web page opens like any other website on Google Chrome, like Facebook or
Gmail and so on. Enter the details of the customer on our web page such as
 Total order amount
 Amount to be collected
 Phone number and
 Address
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 Then you can request for a delivery boy, known as Ground Pilots. Once you’ve
hit the button, you will notice a small window on the right that shows you the
details about our ground pilot
 The Estimated Time of Arrival (ETA) information in the website gives you a
close estimate of the time it will take our Ground Pilot to reach your restaurant
once you’ve requested for one.
 After you press the ―Request Ground Pilot‖ button, our Ground Pilot will arrive at
your restaurant/shop, he will check the amount, ensure that all the packages are
secured, to avoid any kind of spillage or other accidents; after which he will place the
package snugly into his thermal insulated bag that we provide to them, check the bill
amount and settle the amount with you on the spot (below Rs.1000). After which he
will go deliver the order to the customer’s address.
 After our ground pilot has made the delivery, the window on the right hand side of
the place will deleted automatically on our page, indicating the fulfilment of the
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delivery. You can see the completed delivery details with the ―History‖ button. Below
is a screenshot of the same:
 We have Hub Managers to oversee the entire process, from a request being raised to it
being completed. Any delay in the process is tracked and remedied immediately by
them, thus eliminating any need for you or your team to track these orders.
 Our GPs are well trained in every aspect of the process, right from using their ―Pilot
App‖, to interpreting addresses accurately, co-ordinating with all connected parties and
ensuring swift and precise service.
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ESTEEMED CLIENTS:-
Recognition in Letsintern.com among “Top 5 startups to look out for”: Published on
January 4th
, 2016
1. Social Helpouts
2. Urban Ladder
3. Opinio
4. CaratLane
5. Murmur
Recognition in yourstory.com:
“How hyperlocal logistics startup Opinio is differentiating itself with an online delivery tracker
feature”. Published on September 16th, 2015
Within seven weeks of starting operations in July, 2015, Opinio raised a
seed fund of USD 1.3 Million from Accel Partners and Tracxn Labs.
In its Series A funding from logistics company Delhivery, Sands Capital,
and Accel Partners, the company raised USD 7 Million. The investments
was to be used for expansion in multiple cities while strengthening their
technology platform and their product portfolio.
FUNDINGS
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COMPANY DESCRIPTION:-
Registered Name Moonshot Internet Private Limited
Founded May 2015
Key People Mayank Kumar (CEO)
Lokesh Jangid (CTO)
Industry HyperLocal Last-mile Delivery Service
Total Deliveries 1,50,000 (till Jan 16)
Website www.opinioapp.com
Funding Partners Accel Partners,Tracxn Labs, Sands Capital,
Delhivery
Business Partners Khan Saheb, Tinyowl, California Burrito,
Foodpanda, Zomato
Area of Operations 9 cities
1.3 INDUSTRY PROFILE
The HyperLocal Logistics Business encompasses around connecting the local
vendors to public through technology. It operates under different sub-heads based on
their mode of operation & the commodities they are dealing with. The genres under
them are:
A. Concierge- Anything to Anywhere
B. Horizontal- Integrating the Local vendors for delivering Groceries, Medicines,
Confectionaries & Food
C. Prepared Food- Collecting orders & Delivering food from local Restaurants.
D. Chefs- Collecting & Delivering food from Home-Made chefs.
E. Groceries- Delivering groceries from Local Stores,Wholesale Stores &
Supermarkets.
F. Business Facing- Provide Delivery Boys to businesses.
The trend of HyperLocal Logistics started in India from 2013(funded & un-funded) with an
opening of 25 startups,2014(55) & 2015(39). India’s retail market Gross Merchandise Value
is estimated to be $525bn of which Groceries alone accounts for 60% amounting to $ 350bn.
Indian Food Market is around INR 23Trillion of which Food Delivery is valued at $ 15bn.
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Online Food Delivery & Application market grew niche by 40% from 2014-15 whereas the
Smartphone penetration in India is predicted to be 200mn by the end of 2016.
Hyperlocal Start-up scene is hotting up in India, home grown solutions are solving local
problems in a very unique manner, leading to order books bloating. Some of the recent
ventures that have done noticeably well range fom grocery to food delivery to cashless
transaction. The hyperlocal market is being making revolution this time in Indian ecommerce
market. New rising ecommerce startups in this sector and increasing interest of investors in
this area has made delivery of entirely food stuffs to electronic gadgets to anything, from the
stock close to your home easily. The appeal in hyperlocal markethas made rising with users
and clients now more smart and familiar with the technology. Users and clients feel good by
getting anything and everything with a click. The hyperlocal market is growing strongly in
pharmacy, food, grocery and may other sectors.
HyperLocal Market:
Hyperlocal describes a very specific area, very close to home or your place of business.
Examples include the people in your office, local park, driving down main street, and
everyone else within walking or driving distance to a particular destination or that are united
somehow into identifiable community.In reference to Opinio, we considered hyperlocal to be
5-7 kilometres of distance from the merchants location to the customer’s door steps. These
merchants may be a restaurant, grocery store or a chemist.In other words, Hyperlocal =
Local Community.
Last Mile Delivery:
Last mile is a term used in supply chain management and transportation planning to describe
the movement of people and goods from a transportation hub (Merchant in this case) to a
final destination (Customer).Hence Last mile delivery in hyperlocal market in this case may
be described as Movement of goods from the merchant to the customer within 5-7 kilometre
radius from the merchant’s place of business to the customer’s door steps.
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Some of the HyperLocal Logistics Startups of India are categorically mentioned below:-
A. GROCERIES= Zopnow, Peppertap, Jiffstore, Instafresh, Ninjacart
B. Food – Restaurants= Tinyowl,Swiggy,Justeat.in,Tap tap Meals
C. Food-Chefs= Holachef,Biteclub
D. Medicine= 1mg,Pluss App
E. Horizontal= Grofers,Delyver,Lazylad
F. Concierge= StreetJumper,Bhejjo
G. B2B= Roadrunnr,Grab,Shadowfax,Gray Routes,Opinio,LataHun,TownRush,Pickingo
H. Discovery/Deals= Wooplr,Niffler,Crownit,MadPiggy
I. Others= Zopper,StoreWalk
1.4 RECENT TRENDS IN HYPERLOCAL MARKETPLACES
A. Location-based data: With the use of real-time data by incorporating GPS &
customized Map-integrated softwares, the tracking of On-going Delivery &
recording of data has become very optimized & useful. With the extensive use of
technology(Hardware & Software) the traditional model of delivery &
marketplace has changed remarkably.
B. Direct Marketing News Post: With the increase of E-mail Marketing, the
discussion forums have opened up for the consumers as Vendors continuously
send information regarding delivery, offers, payment details etc. However the
communication medium has brought a significant change in shopping as to
building a greater relationship with the customers.
C. Marketing Intelligence: With the use of Data Mining tools,Feedback tools &
Extensive Communication with the customers, Companies are able to churn out
millions of data in a short time & henceforth building future strategies to tackle
the forthcoming situations.
D. Customer Acquisition to Retention: In today’s scenario, improving Customer
Lifetime Value is the next pivotal battleground for companies through Retention
rather than Acquisition by posting heavy discounts. Loyalty Marketing is the
engine for Retention which is taking over the traditional Deal-Based models that
dominate today.
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1.4 COMPETITOR PROFILING of various HYPERLOCAL LOGISTICS:
Name Roadrunnr Pickingo Delyver Shadowfax
Founders Arpit Dave,
Mohit Kumar
Piyush
Sharma,
Rahul Gill
Afsal Salu,
Praful
Thachery
Abhishek Bansal,
Vaibhav Khandelwal
Launch Year 2015 2014 2010 2015
Operational
Cities
11 6 3 3
Products B2B
HyperLocal
Logistics
On-demand
Delivery
Logistics for
offline
retailers
On-demand logistics
Delivery
Time
40min 30min 60min 30min
Funding $11mn $1.3mn $1mn $8.5mn
Total
Delivery
Boys
400-500 300 100 250+
What is Business Development?
For Different people, this term has different meanings, such as:
“Business development is sales,” some will say, concisely.
“Business development is partnerships,” others will say, vaguely.
“Business development is hustling,” the start-up executives will say, evasively.
In the words of Mr. Scott Pollack, a contributor for the topic for Forbes Magazine,
“Business development is the creation of long-term value for an organization from
customers, markets, and relationships.”
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In my own words, “Business Development is the combination of all the major aspects of
business i.e. Marketing, Sales, HRM, Finance, Admin and Operations where the long term
value for the organization and the customer is created by co-ordination of all these
functions of the business.
1.5 CHALLENGES FACED BY HYPERLOCAL LOGISTICS COMPANIES
A. Ensuring quality of service & product in new locations is one of the most commonly
faced issue for every HyperLocal company as it becomes operationally intensive.
B. Heavy expenditure in Infrastructure building & Software development, acquiring
Human Resources.
C. Many large E-commerce companies (Amazon & OlaStore) are building their own
Logistics wing so as to cut down the costs while outsourcing to other firms.
D. There is a possibility of consolidation over the next years as the number of start-ups
are booming in this sector & hence Survival of the Fittest will be the thumb rule for
every company.
E. In order to be successful the HyperLocal start-ups have to focus on Unit economies
& Per Order Profitability.
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1.6 OBJECTIVES OF THE STUDY:
PRIMARY:
A. To study & analyze the overall HyperLocal Logistics business
B. To find the key drivers towards Operational Growth & Profitability
C. To find the success rate of customers
SECONDARY:
A. To find the challenges faced by HyperLocal Logistics companies
B. To form strategies for Future Development
1.7 NEED OF THE STUDY:
A. An Overall understanding of the Industry: As this project has been done so as
to encompass every side of the HyperLocal Logistics industry, hence a thorough
understanding can be derived out of it so as to form the base of any upcoming
start-ups.
B. Decision driven findings: As the questionnaire has been set so as to cover all the
basic point of operations & service, hence the study was done extensively keeping
in mind the real-time feedbacks of Merchants & those are incorporated in the
reports. So based on real-time feedback it will be easy for OPINIO to tackle the
problems & thereby generate solutions for them.
C. Tool to achieve Organisational Growth: Based on real-time information
OPINIO can build up their future strategies so as to minimize their faults &
improve the service. Hence it will further contribution towards Organizational
Growth, Stability & Profitability.
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1.8 SCOPE OF THE STUDY:
This study was done with respect to OPINIO (HyperLocal Last-mile Delivery service)
in Karnataka, Bangalore city. So analysis was done keeping in mind its competitors strategy
& growth potential by which they are operating in Bangalore. Also the study was done so as
to find the Market Potential & Success of Integrated Delivery Service by OPINIO.
1.9 RESEARCH METHODOLOGY:
Research comprise defining and redefining problems, formulating hypothesis or
suggested solutions; collecting, organizing and evaluating data; making
deductions and reaching conclusions; and at last carefully testing the conclusions
to determine whether they fit the formulating Hypothesis. In short, the search for
Knowledge through Objective and Systematic method of finding solutions to a
problem is Research.
1.9.1 RESEARCH DESIGN TYPE OF RESEARCH:-
DESCRIPTIVE RESEARCH - Descriptive research includes Surveys and fact-finding
enquiries of different kinds. The main characteristic of this method is that the researcher has
no control over the variables; he can only report what has happened or what is happening.
DATA SOURCES - There are two types of data. Source of primary data for the present
study is collected through questionnaire and answered by consumers of sports product. The
secondary data is collected from journals, books and through Internet search.
 Primary research
Interviews (coach, players, sports teacher, shops)
Questionnaire (open ended questions)
 Secondary research
Past data
Research papers
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PRIMARY DATA - The data that is collected first hand by someone specifically for the
purpose of facilitating the study is known as primary data. So in this research the data is
collected from respondents through questionnaire.
SECONDARY DATA - For the company information I had used secondary data like
brochures, web site of the company etc. The Method used by me is Survey Method as the
research done is Descriptive Research.
RESEARCH INSTRUMENTS - Selected instrument for Data Questionnaire. Collection for
Online survey is QUESTIONNAIRE DESIGN FORMULATION Under this method, list of
questions pertaining to the survey are prepared consumers of sports goods. Questionnaire has
structured type questions as well as unstructured type questions. Structured objective type
questions are prepared for the respondents with fixed response categories. Some of the
questions are of multiple-choice type. The questions have more than one alternative. TYPES
OF QUESTION INCLUDED: DICHOTOMOUS QUESTIONS which has only two answers
―Yes‖ or ―No‖? MULTIPLE CHOICE QUESTIONS where respondent is offered more than
two choices. IMPORTANCE SCALE A scale that rates the importance of some attribute.
RATING SCALE A scale that rates some attribute like from ―highly satisfied ‖ to ―highly
unsatisfied‖ or ―very inefficient‖ to ―very efficient.
SAMPLING UNIT- Who is to be surveyed? The marketing researcher must define the
target population that will be sampled. The sample Unit taken by me: 50 respondents of
different age group, different gender and different profession.
SAMPLE SIZE- Consumers of Restaurant Services =50
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1.9.2 STEPS FOLLOWED IN COMPLETING THE STUDY
(i) Internet sites containing information on Opinio & competitors are browsed.
(ii) Sample survey was conducted.
(iii) Data was thoroughly checked for error.
1.9.3 DATA PROCESSING METHODOLOGY
(i) Once the primary data have been collected, they are edited – inspected,
corrected and modified.
(ii) Tabulation – bring similar data together and totaling them in meaningful
categories.
(iii) Questionnaires are edited. The responses are thoroughly checked in home for
incorrect, inconsequential or contradictions categories are developed only
often the replies has been reviewed. This review provided a feel for the pattern
of answers and thus determine what categories best represent the answers.
(iv) The collected data are placed into an order. Percentages of respondents
answered similarly are calculated and placed in a table. Then this is
interpreted. This involved drawing conclusion from the gathered data.
Interpretation changes the new information immerging from the analysis into
information that is pertinent or relevant to the study.
Conclusion was drawn based on the survey findings .
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1.9.4 LIMITATIONS OF THE STUDY
1. Due to shortage of time, the merchants were unavailable to be questioned.
2. Also some of the responses were in common hence the interpretation was same in
return.
3. Some of the responses was biased due to absence of the person in concern to be
asked.
4. Some of the merchants denied to comment due to their secretive work culture.
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Chapter- 1
Literature Review
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An Analysis on the Market Potential of adopting & implementing “
Integrated Lastmile Delivery Service” with special reference to
OPINIO-HyperLocal Logistics Company.
Market Potential Definition:-
Market Potential is the valuation of Sales Revenue from all the supplying
channels in a market. Market Potential is the population that is interested in the
product/service that is being made or offer by an organization.
In other words, it is the potential money making capability of a firm if it
capitalizes all advantages and everything goes its way.
It is a subset of the total population, where market potential is the population, all
of whom can be potential consumers of the product or service. Market Potential is
the maximum population which would be interested in the product/service, and
gives a good insight on the growth possibility as well.
Approaches:-
On the basis of the following questions Market Potential for a product/service is
ascertained-
1) Is this product/service I have in my hand is going to satisfy a market need?
2) What competition is out there? Is it direct or indirect, local, national or
international?
3) How distinct is my product from what is being offered in the market of same
category?
4) Can the product stand the test of changing trends or take advantage of it
before it dies out?
5) Does the law of the land allows for such a business to be established?
6) At what prices are consumers prepared to buy the product and can I make any
profit out of it?
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IMPORTANT TERMS:-
Sales Potential- This is the share of market potential allocated to a specific geographic area
for a particular product, or the share of the total market potential that a manufacturer can
reasonably expect to sell. The overall figure is always optimistic & must be pruned down by
other factors.
Sales Quota- Often this is the percentage of Sales Potential assigned to a particular territory.
Sales Projection- Using historical sales to project future sales.
Last Mile Logistics - a Disrupter's Market
―Service providers, couriers and retailers have been doing last mile for decades. But times are
different now. Consider: omnichannel, Amazon's game-changing free and same-day delivery,
and Sears creating an offering service for third parties. The last two years also saw disrupters
who were previously unknown enter the logistics market. But traditional transportation
technology firms are fighting back. 2016 will show dramatic changes in the market.‖ – Ann
Grackin, CEO ChainLink Research
Home delivery markets are not new. The practice is ancient. But these services were paid for.
Free is not cheap. The economics of transportation show that between 25 percent to 75
percent of the transportation costs occur for direct to consumer logistics. With so much
money entering into last mile, new regional carriers are expanding, and iconic newer
disrupters, funded by investors, have entered the market, offering on-demand approaches.
In 2016, retailers will struggle to find profit or at least be cost neutral. Retailers and service
providers need to apply some strategic thinking here. Tacking on some service and posting
standards rates won’t be enough any longer.
Home delivery requires scheduling a delivery that contributes to the firms. And it is also
about service, not easy in this always on 24/7 and mobile world. Many category retailers, de
facto, have to provide services due to the nature of their products—the need for assembly and
installation, for example. Specialty retailers know that an extended service relationship under
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their brand creates loyalty and long-term relationships. But customer service can have a
negative effect if not done well. Winning at home delivery takes skill and smart technology.
The technology for last mile can be seen in home-grown solutions in ecommerce, idea-
generating software from disrupter service providers, and logistics technology providers who
support these sectors.
So what will it take?
• Continuous Route Optimization—specific to the last mile challenge. In the service world,
unlike longer haul logistics, new requests keep popping up, so systems have to be responsive
and avoid the old-style cut-off points. In 2016, traditional TMS route optimizers will
scramble to revise their offerings to meet this challenge.
• Dynamic Incentivized Scheduling—the ability to develop economic models and dynamic
schedules to provide attractive choices to the customer and profitability to shipper. This is the
gold standard in technology that only a few providers offer.
• Mobile and Telematics for Last Mile—GPS and AVL for precise locating and directing
of vehicles. These technologies are blended into the solution to provide driver instructions,
monitor delivery status, and link to execution for real-time routing changes.
• Electronic Confirmation and Proof of Delivery—Not just mobile signatures. The system
confirms appointments while en route to the customer; validates presence (they came and
you were not home); electronic proof of delivery; and follow-up on customer satisfaction on
the process.
2016 will see more TMS+ providers try to understand the features and needs for last mile, as
more end-users seek better solutions. More acquisitions will emerge with omnichannel
pressures mounting.
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Last Mile: The New Frontier in the Retail Supply Chain
If your supply chain strategy includes last-mile delivery, your success will begin with a
review of how your inventory is deployed, postponed, configured and distributed across
various channels.
E-commerce sales have become ubiquitous. According to e-marketer, worldwide e-
commerce sales will increase 20% this year to reach $1.5 trillion. Fueling retail’s expansion
into untapped markets, the e-commerce fire is putting immense pressure on retailers to
seamlessly meet customers’ expectations across devices, platforms and locations on a global
scale.
Further fanning the flames is a driving need to offer expanded delivery capabilities, while
increasing convenience without passing along any visible price increases to the customer.
Whether consumers are researching, evaluating, or purchasing products online or in a store,
their expectations about product availability, delivery charges and flexibility, return policies,
and payment options are on the rise. To complicate matters, these preferences can vary by
region, demographics and a myriad of other factors that will continue to evolve over time.
Behind this e-commerce conundrum lies a mass of fulfillment, inventory deployment, supply
chain network design and omni-channel distribution challenges. Even gargantuan high-
profile e-tailers—while having succeeded in offering customers inexpensive and same-day
delivery options—are still struggling to maintain efficient last-mile solutions in a cost-
effective and profitable manner.
As retailers strive to offer a near-perfect shopping experience, leveraging the right data and
information across multiple channels becomes paramount as reliance on their network’s last-
mile capabilities and efficiencies is amplified. And since each retailer varies in the value and
range of SKUs offered online vs. in-store, there is no one-size-fits all solution to implement
across the industry to prepare for this new frontier.
Despite retailer-specific last-mile delivery nuances, there are steps all companies can take to
determine what supply chain strategies will make the most financial sense in the race for an
effective and efficient last-mile experience.
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Six Elements to Consider Across Your Last-Mile Frontier
If your strategy includes last-mile delivery, your success will begin with an extensive review
of how your end-to-end supply chain network is designed and how your inventory is
deployed, postponed, configured and distributed across channels to meet 21st century
customers’ shopping and delivery preferences. The six considerations below are the tip of the
iceberg. But they can aid you in your strategic decision-making and provide insight into the
real cost impact of last-mile delivery so you can frame an efficient last-mile solution and get
your supply chain network headed in the right direction.
1. Never lose sight of what actually matters to the customer.
First and foremost, you need to start with a full understanding of your customers’
requirements and expectations and how these subsequently influence their buying behaviors.
According to comScore’s 2014 ―Pulse of the Online Shopper‖ survey (commissioned by
UPS), a whopping 93% of shoppers have taken some type of action while shopping online to
qualify for free shipping. But consumers change both their online and in-store shopping
patterns and preferences based on value-added benefits that range from low or no-cost
shipping to loyalty programs to generous returns policies.
Keeping your finger on the pulse of customers’ wants and delivery preferences and offering
them flexible and appealing shopping options—from specific delivery windows to certain zip
codes, to in-store pick-up or convenient nearby drop-off and pick-up locations where items
can be left securely—will prove beneficial. For example, return preferences vary
dramatically across geographies with European consumers (66%) preferring to ship return
items directly to the retailer compared to Brazilian consumers (71%), who prefer to return
items directly to the store. Tying customer behavior, marketing data and metrics back into
your supply chain network strategically can produce revenue-generating results.
2. Explore innovative approaches, like bundled product shipments.
Last-mile delivery introduces a whole new layer of complexity to a product’s sales margins
and exacerbates the ―shipment density dilemma‖ that has challenged shippers for decades.
Fifty eight percent of customers abandoned their online shopping carts because shipping
costs were more than expected, and half abandoned because they didn’t qualify for free
shipping. Traditionally, high-margin items like cell phones and laptops can justify traditional
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small parcel courier costs; but low-margin SKUs cannot easily recover or absorb these costs
and still remain profitable.
The main issue is how to alter customer expectations to make last-mile deliveries profitable.
To compensate for customers’ free shipping preferences, retailers may want to consider
consumer incentives to bundle products—say a phone with household items or clothing—to
raise revenue per order and density per shipment. If possible, postponing orders until
multiple products can be shipped together to generate enough revenue and density to justify
free delivery is an option to offset last-mile transportation cost impacts. Until delivery
density can be maximized to ensure profitability, managing customer expectations is an
excellent interim measure to make last-mile deliveries profitable.
3. Explore non-traditional distribution capabilities.
Retailers who have grown through brick-and-mortar store sales have an imperative to ensure
these assets are leveraged to their fullest in the face of e-commerce. Consumers value brick-
and-mortar stores for the physical shopping experience, instant gratification and the ability to
see, touch and feel merchandise before making final buying decisions. However, there are
substantial real estate and labor costs associated with a store’s operation.
Your last-mile strategy can be designed to maximize your existing brick-and-mortar assets
and capitalize on in-store inventory. By incorporating stores into distribution nodes or
fulfilment points within your retail distribution network, you can make same-day fulfilment a
viable and cost-effective option offering potential savings in transportation costs.
Other options to explore include using a third-party logistics provider (3PL) for fulfillment or
last-mile capabilities and assessing minimal lease requirements to ensure your network can
remain flexible. And of course, you’ll want to innovate in the delivery options you offer over
time to adapt to consumers’ changing needs and maintain the highest possible margins.
4. Optimize transportation solutions to meet last-mile demands.
The most uncertainty and opportunity lies in the nuts and bolts of how a product/package’s
chain of custody is outsourced and moved throughout the last mile. This is truly where we
see total cost-to-deliver dynamics and innovative approaches make the most sense. New,
small experimental entrants like Uber, Instacart and Deliv are emerging at the forefront.
However, as we move away from traditional carrier delivery models there is a need to
provide more extensive tracking and beefed-up package security to meet customer
expectations, perception, consistency and quality. As a result, route auctions and technology
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that offers increased visibility into network options will become extremely important over the
next few years.
For their part, small-parcel couriers like FedEx and UPS have traditionally optimized their
freight movements and density as freight travels from many origins to like zip code
destinations, but are now faced with the large hurdle of trying to efficiently optimize what is
known as many-to-one freight movements (picking up from a distribution center and
delivering to a single residential or other address). The burden of cost for these one-to-one
shipments is shifting to the shipper and, by default, to the customer, evidenced by the recent
dimensional weight pricing changes enacted by FedEx and UPS in 2014.
These unsustainable last-mile freight costs will eventually be shared among all supply chain
participants by some combination of having them pay directly for the costs, through package
optimization or order consolidation, or by creating demand density through time-definite
deliveries or sweep distribution. Until innovation on the product side happens and density
can be efficiently factored into the equation, though, having some type of customer
incentive will help to offset these transportation costs.
5. Consider inventory’s form, function and placement within your supply chain.
Visibility into forward-distribution based demand signals will become critical in this new
frontier, as retailers seek to literally think outside the box to manipulate and repurpose
inventory as close to the point of need as possible. To ensure the best inventory deployment,
configuration and strategy, advanced inventory planning and scheduling will present the
opportunity for more dynamic forecasting than we’ve ever seen, along with inventory
regulations, rules and structure that will accompany success.
Traditional inventory management helped to hedge supply and demand’s peaks and valleys,
using safety stock as a buffer. With today’s short shipping windows, social shopping, online
reviews and price matching, inventory placement will become a major cost driver if not done
right. Keeping inventory flexible and generic up until the actual point of need will become a
strategic advantage.
Eventually all inventory will need to become ―ubiquitous‖ as in-store inventory availability
and specific packaging requirements fall to the wayside to gain the necessary flexibility to
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allow visibility and deployment across multiple distribution channels. Rethinking inventory
policies, repurposing traditional channels, harnessing unstructured data and connecting it into
global inventory systems in near-real-time with accurate points of inventory availability will
result in better inventory placement and deployment throughout the supply chain network.
By circumventing point–of–sale (POS) systems—and replacing them with systems that
provide inventory points of availability and/or points of presence—and tying that data back
to the points of distribution will help to create a truly omni-channel inventory planning
system. Maintaining ubiquitous inventory across every network ―node‖ will help you
determine the optimal location from which to source the order and ensure your last-mile
success.
6. Focus on returns management efficiency.
Most companies have focused on the forward distribution struggles this last-mile equation
provides, and rightfully so. Historically, resources spent on returns have been viewed as
unrecoverable losses. But returns management really need to be a core part of your last-mile
strategy, not only to provide your customers with a simple, no-hassle returns experience but
also so your inventory flows smoothly and efficiently back into your network.
At the end of the day, the only way to make the returns process efficient is to reduce the
number of touch points. Returns efficiency can be addressed by having drivers who are
located near customers pick up returns on their return routes or by encouraging customers to
return items back to storefronts or strategic drop-off points.
If all of this sounds overwhelming, that’s because it is. Some forward-thinking companies are
plowing ahead with supply chain strategies that include real-time visibility into inventory
across every channel or ―node,‖ accessing both in-store and online inventory assets for
fulfillment, as well as exploring alternative last-mile delivery methods.
Despite these advancements, most companies still have at least some unanswered questions
regarding their own last-mile frontier.
Few things are certain as we approach this new frontier. However, one thing is for sure—
last-mile networks will be in flux for the next three to five years. Those companies who want
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to begin—or continue—to build out their last-mile capabilities will need to analyze and
model different distribution scenarios to better understand their true cost to serve and gain
core last-mile competencies, all of which will require ongoing supply chain network
modelling and inventory optimization to adequately define new distribution points.
There is a clear link between supply chain proficiency and confidence in revenue growth. It
all comes down to having inventory at the right place, in the right form, at the right time; an
innovative flexible network as close to the point of need as possible; and a transportation
solution that delivers to customers’ high expectations, with the most product and revenue in
each delivery as possible, along with a simple and accountable returns process and
methodology to keep them coming back for more.
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Findings
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As discussed in the earlier parts of the report, Business Development is a combination of all
the facets of the business working towards the common goal, that is providing a long term
value to the organization by the customer, markets and relationships. Hence I’ll guide you
through all the functions I got to work for or observed during the course of my Internship in
OPINIO.
Sales:
I was working as a sales executive for OPINIO in southern part of Bangalore, where I was
responsible for end to end sales of the OPINIOAPP in the market to the concerned
prospective clients. It followed the same personal selling steps of:
 Prospecting and qualifying
 Approach
 Presentation
 Overcoming Objections
 Closing
 Post Sales Services
Prospecting and qualifying:
During the course of my internship in OPINIO, we used to generate the leads through
zomato.com for a particular region, searching for the keyword of home delivery.
After collecting the list of the restaurants, we used to approach over there to qualify using the
questionnaire while talking to any of the representative present over there and used to update
a sheet like below for further processing.
After creating the chart, qualifying was done so as which merchant to approach for
onboarding and which not to.
The qualifying depended upon the category in which the merchant fell into. It was decided on
the basis of number of orders received by him for home delivery on daily basis.
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Approach, Presentation and Objection Handling
After the qualifying was done and we were given a green flag from the operations side that
we can start services in the given area, we approached the merchants for final meeting and he
was given the final presentation.
After the presentation, if there were any ambiguity in the merchant’s mind regarding the app,
it was explained and then we arrived at the close.
Closing
After all this processes only, the client was closed on the deal and onboarded to the system
using the company dashboard as shown in the following snapshot. The details incorporated in
this form were the address, expected orders for home deliveries and contact details. After that
the services were immediately started.
After onboarding, the merchant was asked to sign a Service level agreement, and only after
that the services were started. This agreement consisted of all the data about the delivery
services.
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SERVICE LEVEL AGREEMENT
Date: ____ ____ ________
Greetings,
This is to bring in your kind attention - after successful first level talks - we are pleased to on
board you for our services.
Restaurant/Merchant Details:
Registered Name – ___________________________
Registered Address – ___________________________ _________________________
______________
Owner Name – ___________________________
Phone Number – ___________________________
Email Address – ___________________________
(MERCHANT SIGNATURE)
For Opinio (Moonshots Internet Pvt. Ltd.)
On-Boarded by – ___________________________
Authorized by – ___________________________
Date of Agreement: ____ ____ ________
(AUTHORIZATION’ SIGNATURE)
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ANNEXURE 1
Standard Pricing:
Delivery Distance in Kilometres Price in INR
0 – 4.5 20/25 *
4.5 and above 20/25 + an additional 05 for every extra
Kilometre
*20 for internet booking / 25 for miss call booking.
The distance mentioned stands for the distance travelled by the Ground Pilot from merchant
to delivery location.
Note:
 For bulk deliveries, we have a maximum cap of 5* per Ground Pilot. For such bulk
deliveries, we charge for, Number of deliveries (bulk) -1 (minus 1), subjected to Min
2.
 The service timings are 11.00 am to 11.45 pm (last order)
 All cash payments up to Rs.1000 will be paid on the spot to the merchant. Any
payment more than Rs.1000 will be settled by EOD latest.
 The Ground Pilots will be responsible for picking up and delivering the items in a
timely and safe manner. The packaging/billing/tallying shall be done by the merchant.
 This pricing will be applicable for 60 days after the end of the trial period (7 days).
Trial period will start from the ―Date of Agreement.‖
 Invoicing – An Invoice will be raised to the Merchant in the 1st
week of every
calendar month against services rendered in the previous calendar month. Merchant
will have to clear invoice within 7 days of invoice date.
*Standard Logistic Delivery Constraints Applicable
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Service Level Agreement
Distance from
merchant
Arrival at
merchant
Drop Completion
(Single Drop)
Drop Completion
(Multiple Drop)
Worst-
Case
Best-
Case
Worst-Case Best-Case Worst-Case
0-1 km 15 mins 5 mins 20 mins 5-10 mins 30 mins
1-4.5 km 15 mins 5 mins 30 mins 15-20
mins
45-60 mins
>4.5 km (up to 6
kms)
15 mins 5 mins 45 mins 25-30
mins
NA
These are our best-effort scenarios. These numbers can vary, depending on external factors.
1. The ―Arrival at merchant‖ time is calculated from the time the Ground Pilot accepts
the request.
2. The ―Drop Completion‖ time is calculated from the time the Ground Pilot leaves after
making the pick till they complete the delivery.
3. If the order has been picked up by the Ground Pilot and then is cancelled for reasons
other than the order reaching late, it will be chargeable to the merchant.
4. In case it is cancelled before the Ground Pilot makes the pickup, it is not chargeable.
5. ―Multiple Drop‖ will be defined as one Ground Pilot making a pickup from the same
merchant and delivering parcels to multiple addresses. These addresses can be in the
same society/business park/locality.
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6. Multiple drops will be accepted only if they are in the same locality. The Ground
Pilot cannot accept drops located more than 1 km from each other. The Ground Pilot
can only accept up to a maximum of 5* drops in a Multiple Drop.
7. It is the merchant’s responsibility to ensure the order is correct in terms of packaging,
matching of items to bill and keeping the parcel ready for pickup. The Ground Pilot
will check the packing and match the item quantities with the bill and alert the
merchant if there is any issue with either of them.
8. In case the Ground Pilot does not complete the task during the worst-case time
mentioned, it will be noted the first time and an attempt to eliminate such an incident
will be made. If it happens again after this incident, Opinio shall not charge for that
particular delivery.
9. The Ground Pilot cannot accept any delivery that has been requested through
mechanisms other than the ones provided by Opinio. (Merchant App / Call Based).
The merchant is requested to adhere to this policy strictly.
10. The Hub Manager will be responsible for tracking the Ground Pilot from the time the
order is assigned to them till it is completed. For any query/issue resolution, the
merchant is requested to call the Hub Manager for their area, whose phone number
will be provided to them at the time of on-boarding.
11. The merchant is requested to request for the Ground Pilot through their merchant app
in such a way that they will not be required to wait at the premises for more than 10
minutes.
12. The business hours for Opinio Ground Pilots will be from 11 am till 11.45 pm i.e. the
Ground Pilots can take requests for deliveries till 11.45 pm only. The merchant is
requested to not make any requests post 11.45 pm
Contact Information for Operation related enquiries (Ground Pilot delivery)
Name: ___________________
Number: ____________________
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Contact Information for Sales related enquiries
Name: ___________________
Number: ____________________
Post Sales Services:-
Post sales services involved:
 Getting feedbacks from every client at a regular interval
 Visiting the clients at a regular interval
 Collaborating with the Operations department to check the availability of required
number of GP’s in a given location.
 Preparing and delivering the monthly invoices to all the clients every month.
 Grievance handling of the customer.
 If there is any GP related problem or app related problem, consult to the respective
department of Operations or IT to solve the problem asap and get back to the client.
 Keep track of weekly variation in customer’s demand.
Limitations:-
 Lack of regular sales meeting
 Lack of involvement of junior sale staff in decision making
 Lack of proper structure in strategizing
 Unavailability of invoicing software
 No dedicated customer support staff
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Operations Department:-
Operations department is basically responsible for all the ground pilot related activities, such
as:
 Deployment of GP’s at a required location in the required number
 Training of GP’s
 Orientation meeting with all the GP’s in a particular hub
 Keeping track of all the GP’s using GPS based location software
 Solving customer grievances related to the GP’s as late delivery, non-connectivity
with the server to call the GP or any wrong behavior of the GP towards the client or
the customer.
Operations executives work on the basis of virtual hubs created for a particular geographic
location to serve particular customers. Every executive is responsible for their particular hub
for the availability of GP and all other GP related activity.
All the sales executives also had to consult the operations executives every time before
onboarding any new client in that particular hub, because before starting the service for that
particular merchant, the GP’s need to be recruited by the HR department and trained by
operations just to make sure that the services run smoothly
For grievance handling also, the client only called the sales point of contact and the sales
executive now needed to collaborate with the operations executive to solve the problem.
For example, I was working in the South Bangalore region under Banashankari Hub. Now if
any client, suppose Olive Era had any Gp related problem as the person can’t be approached,
their manager called me, stating all the problems and now I needed to talk to Vikram, the
operations executive at Banashankari hub, he made sure that the GP reaches the restaurant
within 5 minutes and then informed me. Then I informed the merchant that the GP will be
there within 5 minutes.
Hence all the activities carried out by Sales and Operations team was purely collaborative
and none can be done properly without mutual support. They were two complementary
functions.
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Limitations:
 Network loss in GP’s Phones
 Lack of proper territory training in certain cases
 GP negligence
 Lack of proper morning orientation
 Late reporting of GP’s
HR Department:
HR Department in Opinio has two separate divisions,
 One for the white collar employees
 The other just for Ground Pilots
The team working for the white collar employees was headed by Ms Swati Singh in the
Bangalore office which took care of all the aspects of HRM for the executives in the office.
The digital footprints of the company whether for new job opportunities or wishing Birthdays
or other occasions were also made very regularly and in a very attractive manner on all the
major social networking sites and emails. Some of such examples are shown below:-
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The team working for ground pilots was headed by Mr. Mercy Bhattacharya in Bangalore
office, where his services were dedicated to new GP recruitment and their grievance
handling.
A lot of attractive schemes were available for GP’s, such as:
 Highest salaries among other competitors
 Attractive incentive structures
 Company provided power source for mobile charging and mobile bill payment
 Part time work option available
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Limitations:
 High employee turnover
 Unavailability of literate GP’s
 High training cost
 Conflicts among GP’
Marketing Department:-
Marketing department always kept contact with the whole of the staff through emails and
kept sharing all the new developments in the organization through emails and social media,
such as:
OPINSPIRATION
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Sharing new updated
Strategic Tie-Ups:-
Opinio has a lot of strategic tie-ups with different organizations in all the cities they are
active. But talking about Delhi/NCR region, the following are the main strategic tie-ups:
Delhivery:
Delhivery is a very well known logistics brand all across the country and Opinio has a tie-up
with them in a number of cities such as Delhi, Hyderabad, Pune and Chennai. They have a
huge network of clients available and through this tie up, Opinio got a chance to share the
clients with them and they got to use the technology that Opinio had in their app.
Talking about Delhi, Delhivery used to do all the deliveries for Opinio’s clients and all there
clients were also given Opinio’s app to call the ground pilots.
This tie-up took place when they played a major role in the arrangement of Series A funding
for Opinio for USD 7 Million.
Zomato:
Second major tie up was with Zomato, where we got to have all the delivery orders from
Zomato. And as it is the most well known website for food aggregation in India, this tie up
gave a tremendous brand recognition for Opinio as well.
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Yum Foods:
Yum food is a company which owns all the Pizza Hut outlets in Delhi/NCR Region, and this
tie up was done right by the time my tenure with Opinio was finishing, but this must have
given a huge boost to the number of orders they were getting before as an average Pizza Hut
dispatches 80-100 home delivery orders on a daily basis.
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Chapter- 2
FINDINGS = GRAPHICAL
PRESENTATION OF DATA
1. How old is your restaurant?
A. 0-3 B. 3-5 C. 5-7 D. More than 8
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A. 0-3 25
B. 3-5 10
C. 5-7 9
D. More than 7 6
As represented in the graph, most of the restaurants in South Delhi Region are relatively new
because of the fierce competition in the market and the survival rate of restaurants is not
much as they are not ready to change as fast as the consumers’ taste and preferences.
Some of the restaurants who keep themselves up to date as the consumers’ tastes and
preferences, they are thriving for a much longer time.
The reason for us to keep this question in the questionnaire was just to assess the stability in
the market and only after making sure that the restaurant will sustain, we used to associate
our brand with them.
25
10
9
4.5
Series 1
0-3
3-5
5-7
More than 8
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2. Do you provide Home Delivery service?
A. Yes B. No
Yes 44
No 6
The food market of Bangalore now is mainly dependent upon the home delivery services
because of the busy life people lead in this region. Even on the weekends also they prefer to
order food home and have in their own place just because they don’t want to waste even a
second of rest they can take out of their busy schedule.
6
44
Sales
No
Yes
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3. If Yes do you have your own Delivery Service?
A. Yes B. No
Yes 5
No 45
As constituting a Delivery force in a restaurant of own costs a lot to the owner
regarding payment of Salaries, Technological Assistance, Infrastructure costs,
Supervision etc. Hence outsourcing the activity to 3rd
party Logistics company
has a become a common phenomenon in HyperLocal Market. So these startups
are getting huge responses from the merchants due to their innovation
4. If Yes ,up to what distance & orders u handle?
5
45
0
5
10
15
20
25
30
35
40
45
50
Yes No
Response
Response
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A. 1-2 A. 0-5
B. 2-3 B. 5-10
C. 3-4 C. 10-15
D. 4-5 or more D. 15-20 or more
1-2km 40nos
2-3km 20nos
3-4km 15nos
4-5km or more 10nos
Hence we can observe that for short durations merchants don’t hesitate to
deliver orders mostly through their own Delivery boys but for long
distances they generally don’t accept orders considering a minimum
order value of Rs. 500 or more. Hence there is a huge opportunity to
untapped the market potential of HyperLocal Deliveries.
5. If No , are you interested at Integrated Delivery Service?
40
20
15
10
Orders
1 to 2km
2 to 3km
3 to 4km
4 to 5km
Distance(kms) Orders (qty)
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A. Yes B. No
Yes 47
No 3
Due to improved & innovative Technological Upgradation & efficient
Manpower Planning, hence many of the merchants agreed to adopt
Integrated Delivery Service so as to cut down costs & have greater
Market Share than competitors.
0
5
10
15
20
25
30
35
40
45
50
Yes No
Responses
Responses
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6. Do you have any past experience with Last Mile delivery service?
A. Yes B. No
Yes 6
No 44
The above statistics reveal the past experience of merchants with some of them
tried with startups like Townrush, Roadrunnr,etc due to service failure in most
of the cases & high price margin forged them to withdraw their association with
the delivery partners. Further the high cost margin restricts the spreadout of the
network only to few selected merchants.
0 10 20 30 40 50
Yes
No
6
44
Responses
Responses
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7. Are you interested with Opinio Hyper-local Logistics Service?
A. Yes B. No
Yes 42
No 8
As some of the merchants were previously unhappy with their delivery partners,
hence knowing about the Business Model, Price margin, dedicated Hubs at
prominent locations & huge Manpower availability finally convinced most of
the merchants to adopt & experience the service of Opinio.
42
8
Sales
Yes
No
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8. How will u rate our Business Model?
A. 5- Highly Innovative
B. 4- Innovative
C. 3- Average
D. 2- Need Improvement
E. 1- Not Efficient
Massive Funding, Huge Manpower, Best-in class technology & infrastructure
enabled Opinio to get huge positive responses from the merchants. Also the
Price factor compelled the merchants to get tie-up with Opinio so as to expand
their market & profit through Home Deliveries.
0
2
4
6
8
10
12
14
16
18
20
5 4 3 2 1
10
20
12
5
3
Rankings
Rankings
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9. What mode of operation you want to follow?
A. Online B. Offline
Online 20
Offline 30
Due to non-availability of Technological Infrastructure some of the merchants
wish to do the offline service by giving specialized mode of Delivery option to
them whilst most of prominent merchants wants the fundamental way of
delivering as what Opinio used to do in general so as to ensure Real-time
tracking of delivery.
10. What is your expectation level from Opinio?
20
30
Mode of Operation
Online
Offline
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A. 5- Very high
B. 4- High
C. 3- Average
D. 2- Low
E. 1- Very Low
Very High 5
High 4
Average 3
Low 2
Very Low 1
With new technology up gradation & huge manpower most of the merchants
have higher expectations from Opinio whereas due to failure of other
HyperLocal Logistics company, some has expressed dissatisfaction regarding
this Business model.
Responses
0
5
10
15
20
25
Very High
High
Average
Low
Very Low
25
10
7
6
AxisTitle
Responses
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11. What additions you want from Opinio?
A. Android App B. Tablet C. Smart phone
D. Permanent Ground Pilot E. Faster Delivery
Android App 15
Tablet 10
Smartphone 8
Permanent GP 26
Faster Delivery 40
With the number of increasing Home Delivery orders & immense competition
to retain customers, Merchants expect Faster Delivery to be happened first,
whereas those who get regular orders want Permanent GP in their outlets to
avoid the rush of late delivery. The techies want devices with custom Opinio
app built-in to ensure timely deliveries.
15
10
8
26
40
Sales
Android App
Tablet
Smartphone
Permanent GP
Faster Delivery
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 56
Chapter- 3
Summary of Findings
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 57
Now to summarize the findings I got during my course of work in Opinio, I
would like to list it out as:
 Any organization, especially a startup cannot really develop the business
until there is collaboration and coordination between all the departments.
 During my course of work there I also had a realization about Blue
Ocean and Red Ocean theory, that blue ocean is not necessarily
beneficial in every cases, like in this case, we were among the last to
enter the South Bangalore Market, but our business model and services
were rather more acceptable in the market than the other competitors.
 We had an upper hand because we could customize better according to
the customers’ need. The missed call option is the biggest example for
the same.
 I got to learn that business development is not only sale but actually
understanding the need in the market and efficiently delivering. An
example for this would be the option for Single Pickup and multiple
drop, or the new option of POS also where the customer can easily make
card payments directly to the ground pilot.
 The face of the food industry is completely different now since the
advent of these last mile delivery services, as the merchants now don’t
even recruit their staff for deliveries because they are getting better
services for much lower prices.
 Merchants today are not afraid of trying new opportunities as long as
they see long term benefit in that.
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 58
Chapter- 4
CONCLUSION
&
RECOMMENDATION
Conclusion
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 59
I would like to conclude the report by just summarizing what I have been
talking about through all the report, that:
 The only way to develop in such a competitive market like Delhi/NCR is
to collaborate and coordinate within all the departments. Inter department
rivalry will just give rise to conflict, no good can ever come out of it.
 The atmosphere the top management has created of flat organizational
structure where everyone is considered the same and the company has
given rise to the first name culture is definitely a very bold step, but will
definitely garnish an atmosphere of friendship among the employees
which will definitely end up being profitable to the organization.
 I would like to conclude by just saying that the emergence of services
like hyper local last mile delivery will definitely change the face of the
retail sector in this country if it has not already.
Recommendations
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 60
Following are some of the few points I would recommend to the company:
 Every alternate day meeting of sales team
 Once in a week common meeting of all the departments
 Regular training and development sessions at least every fortnight
 A well-structured sales pitch
 Revision of delivery rates after a certain period of time
 Provision of a structured invoicing software that can create an automatic
invoice every month and redirect to the respective merchant
 Strict rule about the dress code, at least for the sales team
 Better incentives for the sales team
 Starting of operations in the breakfast hours also so as to serve more
customers
 Provision of shift job for operations executives
 Recruitment of non-local ground pilots to avoid conflict and for
betterment of training programs
 Strict rules for ground pilots to be on time and avoid negligence
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 61
ANNEXURE- 1
QUESTIONNAIRE
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 62
(H.O- Concept Business Tech Park, B-Block, Bomanahalli, Bengaluru,
Karnataka)
Personal Details:
Name:
Address:
Business Type:
Contact No:
1. How old is your restaurant?
A. 0-3 B. 3-5 C. 5-7 D. More than 8
2. Do you provide Home Delivery service?
B. Yes B. No
3. If Yes do you have your own Delivery Service?
A. Yes B. No
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 63
4. If Yes ,up to what distance & orders u handle?
A. 1-2 A. 0-5
B. 2-3 B. 5-10
C. 3-4 C. 10-15
D. 4-5 or more D. 15-20 or more
5. If No ,are you interested at Integrated Delivery Service?
A. Yes B. No
6. Do you have any past experience with Last Mile delivery service?
A. Yes B. No
7. Are you interested with Opinio Hyper-local Logistics Service?
A. Yes B. No
8. How will u rate our Business Model?
A. 5- Highly Innovative
B. 4- Innovative
C. 3- Average
D. 2- Need Improvement
E. 1- Not Efficient
Distance(kms) Orders (qty)
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 64
9. What mode of operation you want to follow?
A. Online B. Offline
10.What is your expectation level from Opinio?
A. 5- Very high
B. 4- High
C. 3- Average
D. 2- Low
E. 1- Very Low
11.What additions you want from Opinio?
A. Android App B. Tablet C. Smart phone
D. Permanent Ground Pilot E. Faster Delivery
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 65
ANNEXURE II
SERVICE LEVEL
AGREEMENT
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 66
Date: ____ ____ ________
Greetings,
This is to bring in your kind attention - after successful first level talks - we are
pleased to on board you for our services.
Restaurant/Merchant Details:
Registered Name – ___________________________
Registered Address – ___________________________
_________________________ ______________
Owner Name – ___________________________
Phone Number – ___________________________
Email Address – ___________________________
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 67
(MERCHANT SIGNATURE)
For Opinio (Moonshots Internet Pvt. Ltd.)
On-Boarded by – ___________________________
Authorized by – ___________________________
Date of Agreement: ____ ____ ________
(AUTHORIZATION’ SIGNATURE)
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 68
ANNEXURE I
Standard Pricing:
Delivery Distance in Kilometres Price in INR
0 – 4.5 20/25 *
4.5 and above 20/25 + an additional 05 for every
extra Kilometre
*20 for internet booking / 25 for miss call booking.
The distance mentioned stands for the distance travelled by the Ground Pilot
from merchant to delivery location.
Note:
 For bulk deliveries, we have a maximum cap of 5* per Ground Pilot. For
such bulk deliveries, we charge for, Number of deliveries (bulk) -1
(minus 1) , subjected to Min 2.
 The service timings are 11.00 am to 11.45 pm (last order)
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 69
 All cash payments up to Rs.1000 will be paid on the spot to the merchant.
Any payment more than Rs.1000 will be settled by EOD latest.
 The Ground Pilots will be responsible for picking up and delivering the
items in a timely and safe manner. The packaging/billing/tallying shall be
done by the merchant.
 This pricing will be applicable for 60 days after the end of the trial period
(7 days). Trial period will start from the ―Date of Agreement.‖
 Invoicing – An Invoice will be raised to the Merchant in the 1st
week of
every calendar month against services rendered in the previous calendar
month. Merchant will have to clear invoice within 7 days of invoice date.
*Standard Logistic Delivery Constraints Applicable
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 70
Service Level Agreement
Distance from
merchant
Arrival at
merchant
Drop Completion
(Single Drop)
Drop Completion
(Multiple Drop)
Worst-
Case
Best-
Case
Worst-
Case
Best-
Case
Worst-Case
0-1 km 15 mins 5 mins 20 mins 5-10
mins
30 mins
1-4.5 km 15 mins 5 mins 30 mins 15-20
mins
45-60 mins
>4.5 km (up to
6 kms)
15 mins 5 mins 45 mins 25-30
mins
NA
These are our best-effort scenarios. These numbers can vary, depending on
external factors.
13.The ―Arrival at merchant‖ time is calculated from the time the Ground
Pilot accepts the request.
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 71
14.The ―Drop Completion‖ time is calculated from the time the Ground
Pilot leaves after making the pick till they complete the delivery.
15.If the order has been picked up by the Ground Pilot and then is cancelled
for reasons other than the order reaching late, it will be chargeable to the
merchant.
16.In case it is cancelled before the Ground Pilot makes the pickup, it is not
chargeable.
17.―Multiple Drop‖ will be defined as one Ground Pilot making a pickup
from the same merchant and delivering parcels to multiple addresses.
These addresses can be in the same society/business park/locality.
18.Multiple drops will be accepted only if they are in the same locality. The
Ground Pilot cannot accept drops located more than 1 km from each
other. The Ground Pilot can only accept up to a maximum of 5* drops in
a Multiple Drop.
19.It is the merchant’s responsibility to ensure the order is correct in terms
of packaging, matching of items to bill and keeping the parcel ready for
pickup. The Ground Pilot will check the packing and match the item
quantities with the bill and alert the merchant if there is any issue with
either of them.
20.In case the Ground Pilot does not complete the task during the worst-case
time mentioned, it will be noted the first time and an attempt to eliminate
such an incident will be made. If it happens again after this incident,
Opinio shall not charge for that particular delivery.
21.The Ground Pilot cannot accept any delivery that has been requested
through mechanisms other than the ones provided by Opinio. (Merchant
App / Call Based). The merchant is requested to adhere to this policy
strictly.
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 72
22.The Hub Manager will be responsible for tracking the Ground Pilot from
the time the order is assigned to them till it is completed. For any
query/issue resolution, the merchant is requested to call the Hub Manager
for their area, whose phone number will be provided to them at the time
of on-boarding.
23.The merchant is requested to request for the Ground Pilot through their
merchant app in such a way that they will not be required to wait at the
premises for more than 10 minutes.
24.The business hours for Opinio Ground Pilots will be from 11 am till
11.45 pm i.e. the Ground Pilots can take requests for deliveries till 11.45
pm only. The merchant is requested to not make any requests post 11.45
pm
Contact Information for Operation related enquiries (Ground Pilot delivery)
Name: ___________________
Number: ____________________
Contact Information for Sales related enquiries
Name: ___________________
Number: ____________________
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 73
Thank You…
Bibliography
Books:
 Business Statistics – G.C. Berry
 Marketing Management – Philip Kotler
Websites and Journals:
 Deliver.opinioapp.com
 Opinioapp.com
 Iamwire.com
 Yourstory.com
 Andrewdumont.com
 Industryweek.com
A Study on the Market Potential of Integrated Delivery Service
NATIONAL SCHOOL OF BUSINESS Page 74
 Talkinglogistics.com
 Livemint.com

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Jintu final

  • 1. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 1 EXECUTIVE SUMMARY This report is about my internship program with Opinio (Moonshots Internet Private Limited) in South Bangalore Region. It's an organisation for last mile delivery service for food, grocery, bakery, peer to peer and more. In this comprehensive report, I have discussed about every major aspect of Market Potential of Opinio, which I observed and perceived during my internship program during September 25th , 2015 to November 25th , 2015. In the first part of the project report, the general information of the Industry and the organization has been collected. Information is gathered through the primary and secondary source as well. In the second part of the report, contains the specialized subject study. Along with it, the processes, policies and procedures of the organization are also discussed in detail. During my internship program, I mainly worked on Business Development and Sales of Last Mile Delivery Services of Hyper-local Markets mainly in Bangalore and ensuring Customer Satisfaction by providing post sales services. As the main purpose of the internship is to learn by working in the practical environment and apply the knowledge acquired during the studies in the real world scenario in order to tackle the problems using the knowledge and skills learnt during the academic process, In this report detailed analysis of organization is done and all the major aspects have been evaluated to analyse the current position of the delivery systems. This internship report covers many important aspects which are basically related with the operations and technological aspects of the organization. My focus while working in the organization was on how to reach the target customer and communicate them about the services and its advantage and provide them with a long term value. After deciding the way next step is to select the appropriate medium so as to reach to the maximum possible target audience by utilizing minimum resources. Today, people live in an environment that is increasingly moving towards services based economy. The concepts of service quality and satisfaction in marketing activities during the past decades have been the focus of attention, and last mile delivery service is like a new cherry that everyone is running behind. There are so many new companies have come up during the period of 18 months like Groffers, Road Runner, Shadowfax, Quickli, Townrush and a lot more. But Sustaining in a market like Bangalore is not an easy job, this is the reason that a lot of major players like Tiny Owl and Pickingo had to quit the market as they were unable to sustain. This study is based on the strategies of Opinio of how they are still thriving in the market, and also the limitations that needs to be rectified.
  • 2. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 2 1. INTRODUCTION An Analysis on the Market Potential of adopting & implementing ― Integrated Lastmile Delivery Service‖ with special reference to OPINIO-HyperLocal Logistics Company,Bangalore-68. 1.1 PROBLEM DEFINITION Market Potential is the entire size of the market for a product at a specific time. It represents the upper limits for the product in that market. Market Potential is usually measured by either Sales Volume or Sales Value. For example the market potential for ten speed bicycles may be worth USD 5,000,000 in sales each year. On the otherhand, the market potential for motorcycles may be 5,00,000 units each year, which is a measure of sales volume rather than sales value. Analysis of Market Potential :- Determining the market potential of a product is a part of successful marketing process & requires marketing research. We will need to examine atleast 3 factors viz- Potential Customer base, Competitor Analysis & analyzing the current Environmental Conditions. Analyzing Customer Base- We need to determine the size & demographic conditions of your potential customers, important information to obtain includes the population size of your target market, their product preferences & their median annual household income. We can assess our product’s potential customer base by analyzing Secondary data such as demographic data collected by Survey organizations on household demographics of each state. We may also collect Primary data to analyze the market potential of a product. Typical means of collecting Primary data include Telephone Surveys using a Random sample of households drawn that we believe match our target. Analyzing Competition- It is important to assess the number of your competitors, their respective shares of the current market share & how can our
  • 3. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 3 product be different to them. This research can be undertaken using both Primary & Secondary data research. Secondary data sources may include Industry survey, membership directories of industry organizations, data collected by Local chamber of commerce & state agencies. Primary data can be collected by simply shopping around & examining your competition from the perspective of not only a competitor but as a customer. Analyzing Current Environment- Market Potential is not a static concept- it changes with the general economic & political environment. For example- if interest rate goes up, people may not be using credit to purchase bif-ticket items like cars. This will lower the demand for those products & decrease the overall market potential of the product. A change in tax rates may also suppress spending as less money is available for discretionary purchases, thereby reducing the overall market potential of a product. MARKET POTENTIAL & MARKET SIZING ANALYSIS:- Market analysis services from Mapping Analytics help us to know the economic opportunity available to us in any geographic market, whether we sell to consumers or business or both, market sizing provides intelligence we need to deploy Sales & marketing resources effectively. Benefits of Market Potential Analysis- 1. Understand market potential for a single store, network of stores or a single market. 2. Deploy resources effectively by ranking markets in priority order. 3. Forecast total opportunity in terms of number of customers & revenue potential. 4. Estimate your market share. Elements of a Market Potential Analysis:- 1. A Customer Profile to understand where to find more like them. 2. Market Penetration & Market Share reports showing performance in existing marlets & expected performance in new markets. 3. Market Ranking reports allows to prioritize resource deployment into new markets. 4. A Geographic view of market opportunity on detailed maps. Strategies for Sizing Market:- Market Potential can be expressed as a function of – A. The number of Customers Purchasing B. Amount Purchased
  • 4. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 4 C. Frequency of Purchase In other words, Market Potential = (How many*How much*How often) BOTTOM UP or TOP DOWN MARKET ANALYSIS??  A Bottom up approach to market sizing starts with customers- How much & often do they buy? What is their profile? How many potential customers do we have in the market based on Customer profiles? How can we reach them?  A Top down approach starts with market & industry data. It takes a close look at a geographic market area & profiles the Consumers and/or Businesses to let us know their propensity to buy our products & services. CLUSTER ANALYSIS for MARKET SIZING We often use lifestyle clustering systems to size consumer markets. Clustering systems operate under the premise that ― birds of same feather flocks together‖. That means people with similar buying behavior & demographic profiles tend to live close together. This helps you identify neighborhoods or markets where your potential is high.
  • 5. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 5 1.2 COMPANY PROFILE About the service: We are an On-Demand Delivery service provider. Our services can take care of the entire delivery aspect of your business. Process: Simple and Efficient.  Get your order from whichever portal preferred (phone orders, online portals)  Our web page opens like any other website on Google Chrome, like Facebook or Gmail and so on. Enter the details of the customer on our web page such as  Total order amount  Amount to be collected  Phone number and  Address
  • 6. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 6  Then you can request for a delivery boy, known as Ground Pilots. Once you’ve hit the button, you will notice a small window on the right that shows you the details about our ground pilot  The Estimated Time of Arrival (ETA) information in the website gives you a close estimate of the time it will take our Ground Pilot to reach your restaurant once you’ve requested for one.  After you press the ―Request Ground Pilot‖ button, our Ground Pilot will arrive at your restaurant/shop, he will check the amount, ensure that all the packages are secured, to avoid any kind of spillage or other accidents; after which he will place the package snugly into his thermal insulated bag that we provide to them, check the bill amount and settle the amount with you on the spot (below Rs.1000). After which he will go deliver the order to the customer’s address.  After our ground pilot has made the delivery, the window on the right hand side of the place will deleted automatically on our page, indicating the fulfilment of the
  • 7. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 7 delivery. You can see the completed delivery details with the ―History‖ button. Below is a screenshot of the same:  We have Hub Managers to oversee the entire process, from a request being raised to it being completed. Any delay in the process is tracked and remedied immediately by them, thus eliminating any need for you or your team to track these orders.  Our GPs are well trained in every aspect of the process, right from using their ―Pilot App‖, to interpreting addresses accurately, co-ordinating with all connected parties and ensuring swift and precise service.
  • 8. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 8 ESTEEMED CLIENTS:- Recognition in Letsintern.com among “Top 5 startups to look out for”: Published on January 4th , 2016 1. Social Helpouts 2. Urban Ladder 3. Opinio 4. CaratLane 5. Murmur Recognition in yourstory.com: “How hyperlocal logistics startup Opinio is differentiating itself with an online delivery tracker feature”. Published on September 16th, 2015 Within seven weeks of starting operations in July, 2015, Opinio raised a seed fund of USD 1.3 Million from Accel Partners and Tracxn Labs. In its Series A funding from logistics company Delhivery, Sands Capital, and Accel Partners, the company raised USD 7 Million. The investments was to be used for expansion in multiple cities while strengthening their technology platform and their product portfolio. FUNDINGS
  • 9. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 9 COMPANY DESCRIPTION:- Registered Name Moonshot Internet Private Limited Founded May 2015 Key People Mayank Kumar (CEO) Lokesh Jangid (CTO) Industry HyperLocal Last-mile Delivery Service Total Deliveries 1,50,000 (till Jan 16) Website www.opinioapp.com Funding Partners Accel Partners,Tracxn Labs, Sands Capital, Delhivery Business Partners Khan Saheb, Tinyowl, California Burrito, Foodpanda, Zomato Area of Operations 9 cities 1.3 INDUSTRY PROFILE The HyperLocal Logistics Business encompasses around connecting the local vendors to public through technology. It operates under different sub-heads based on their mode of operation & the commodities they are dealing with. The genres under them are: A. Concierge- Anything to Anywhere B. Horizontal- Integrating the Local vendors for delivering Groceries, Medicines, Confectionaries & Food C. Prepared Food- Collecting orders & Delivering food from local Restaurants. D. Chefs- Collecting & Delivering food from Home-Made chefs. E. Groceries- Delivering groceries from Local Stores,Wholesale Stores & Supermarkets. F. Business Facing- Provide Delivery Boys to businesses. The trend of HyperLocal Logistics started in India from 2013(funded & un-funded) with an opening of 25 startups,2014(55) & 2015(39). India’s retail market Gross Merchandise Value is estimated to be $525bn of which Groceries alone accounts for 60% amounting to $ 350bn. Indian Food Market is around INR 23Trillion of which Food Delivery is valued at $ 15bn.
  • 10. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 10 Online Food Delivery & Application market grew niche by 40% from 2014-15 whereas the Smartphone penetration in India is predicted to be 200mn by the end of 2016. Hyperlocal Start-up scene is hotting up in India, home grown solutions are solving local problems in a very unique manner, leading to order books bloating. Some of the recent ventures that have done noticeably well range fom grocery to food delivery to cashless transaction. The hyperlocal market is being making revolution this time in Indian ecommerce market. New rising ecommerce startups in this sector and increasing interest of investors in this area has made delivery of entirely food stuffs to electronic gadgets to anything, from the stock close to your home easily. The appeal in hyperlocal markethas made rising with users and clients now more smart and familiar with the technology. Users and clients feel good by getting anything and everything with a click. The hyperlocal market is growing strongly in pharmacy, food, grocery and may other sectors. HyperLocal Market: Hyperlocal describes a very specific area, very close to home or your place of business. Examples include the people in your office, local park, driving down main street, and everyone else within walking or driving distance to a particular destination or that are united somehow into identifiable community.In reference to Opinio, we considered hyperlocal to be 5-7 kilometres of distance from the merchants location to the customer’s door steps. These merchants may be a restaurant, grocery store or a chemist.In other words, Hyperlocal = Local Community. Last Mile Delivery: Last mile is a term used in supply chain management and transportation planning to describe the movement of people and goods from a transportation hub (Merchant in this case) to a final destination (Customer).Hence Last mile delivery in hyperlocal market in this case may be described as Movement of goods from the merchant to the customer within 5-7 kilometre radius from the merchant’s place of business to the customer’s door steps.
  • 11. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 11 Some of the HyperLocal Logistics Startups of India are categorically mentioned below:- A. GROCERIES= Zopnow, Peppertap, Jiffstore, Instafresh, Ninjacart B. Food – Restaurants= Tinyowl,Swiggy,Justeat.in,Tap tap Meals C. Food-Chefs= Holachef,Biteclub D. Medicine= 1mg,Pluss App E. Horizontal= Grofers,Delyver,Lazylad F. Concierge= StreetJumper,Bhejjo G. B2B= Roadrunnr,Grab,Shadowfax,Gray Routes,Opinio,LataHun,TownRush,Pickingo H. Discovery/Deals= Wooplr,Niffler,Crownit,MadPiggy I. Others= Zopper,StoreWalk 1.4 RECENT TRENDS IN HYPERLOCAL MARKETPLACES A. Location-based data: With the use of real-time data by incorporating GPS & customized Map-integrated softwares, the tracking of On-going Delivery & recording of data has become very optimized & useful. With the extensive use of technology(Hardware & Software) the traditional model of delivery & marketplace has changed remarkably. B. Direct Marketing News Post: With the increase of E-mail Marketing, the discussion forums have opened up for the consumers as Vendors continuously send information regarding delivery, offers, payment details etc. However the communication medium has brought a significant change in shopping as to building a greater relationship with the customers. C. Marketing Intelligence: With the use of Data Mining tools,Feedback tools & Extensive Communication with the customers, Companies are able to churn out millions of data in a short time & henceforth building future strategies to tackle the forthcoming situations. D. Customer Acquisition to Retention: In today’s scenario, improving Customer Lifetime Value is the next pivotal battleground for companies through Retention rather than Acquisition by posting heavy discounts. Loyalty Marketing is the engine for Retention which is taking over the traditional Deal-Based models that dominate today.
  • 12. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 12 1.4 COMPETITOR PROFILING of various HYPERLOCAL LOGISTICS: Name Roadrunnr Pickingo Delyver Shadowfax Founders Arpit Dave, Mohit Kumar Piyush Sharma, Rahul Gill Afsal Salu, Praful Thachery Abhishek Bansal, Vaibhav Khandelwal Launch Year 2015 2014 2010 2015 Operational Cities 11 6 3 3 Products B2B HyperLocal Logistics On-demand Delivery Logistics for offline retailers On-demand logistics Delivery Time 40min 30min 60min 30min Funding $11mn $1.3mn $1mn $8.5mn Total Delivery Boys 400-500 300 100 250+ What is Business Development? For Different people, this term has different meanings, such as: “Business development is sales,” some will say, concisely. “Business development is partnerships,” others will say, vaguely. “Business development is hustling,” the start-up executives will say, evasively. In the words of Mr. Scott Pollack, a contributor for the topic for Forbes Magazine, “Business development is the creation of long-term value for an organization from customers, markets, and relationships.”
  • 13. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 13 In my own words, “Business Development is the combination of all the major aspects of business i.e. Marketing, Sales, HRM, Finance, Admin and Operations where the long term value for the organization and the customer is created by co-ordination of all these functions of the business. 1.5 CHALLENGES FACED BY HYPERLOCAL LOGISTICS COMPANIES A. Ensuring quality of service & product in new locations is one of the most commonly faced issue for every HyperLocal company as it becomes operationally intensive. B. Heavy expenditure in Infrastructure building & Software development, acquiring Human Resources. C. Many large E-commerce companies (Amazon & OlaStore) are building their own Logistics wing so as to cut down the costs while outsourcing to other firms. D. There is a possibility of consolidation over the next years as the number of start-ups are booming in this sector & hence Survival of the Fittest will be the thumb rule for every company. E. In order to be successful the HyperLocal start-ups have to focus on Unit economies & Per Order Profitability.
  • 14. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 14 1.6 OBJECTIVES OF THE STUDY: PRIMARY: A. To study & analyze the overall HyperLocal Logistics business B. To find the key drivers towards Operational Growth & Profitability C. To find the success rate of customers SECONDARY: A. To find the challenges faced by HyperLocal Logistics companies B. To form strategies for Future Development 1.7 NEED OF THE STUDY: A. An Overall understanding of the Industry: As this project has been done so as to encompass every side of the HyperLocal Logistics industry, hence a thorough understanding can be derived out of it so as to form the base of any upcoming start-ups. B. Decision driven findings: As the questionnaire has been set so as to cover all the basic point of operations & service, hence the study was done extensively keeping in mind the real-time feedbacks of Merchants & those are incorporated in the reports. So based on real-time feedback it will be easy for OPINIO to tackle the problems & thereby generate solutions for them. C. Tool to achieve Organisational Growth: Based on real-time information OPINIO can build up their future strategies so as to minimize their faults & improve the service. Hence it will further contribution towards Organizational Growth, Stability & Profitability.
  • 15. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 15 1.8 SCOPE OF THE STUDY: This study was done with respect to OPINIO (HyperLocal Last-mile Delivery service) in Karnataka, Bangalore city. So analysis was done keeping in mind its competitors strategy & growth potential by which they are operating in Bangalore. Also the study was done so as to find the Market Potential & Success of Integrated Delivery Service by OPINIO. 1.9 RESEARCH METHODOLOGY: Research comprise defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating Hypothesis. In short, the search for Knowledge through Objective and Systematic method of finding solutions to a problem is Research. 1.9.1 RESEARCH DESIGN TYPE OF RESEARCH:- DESCRIPTIVE RESEARCH - Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. DATA SOURCES - There are two types of data. Source of primary data for the present study is collected through questionnaire and answered by consumers of sports product. The secondary data is collected from journals, books and through Internet search.  Primary research Interviews (coach, players, sports teacher, shops) Questionnaire (open ended questions)  Secondary research Past data Research papers
  • 16. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 16 PRIMARY DATA - The data that is collected first hand by someone specifically for the purpose of facilitating the study is known as primary data. So in this research the data is collected from respondents through questionnaire. SECONDARY DATA - For the company information I had used secondary data like brochures, web site of the company etc. The Method used by me is Survey Method as the research done is Descriptive Research. RESEARCH INSTRUMENTS - Selected instrument for Data Questionnaire. Collection for Online survey is QUESTIONNAIRE DESIGN FORMULATION Under this method, list of questions pertaining to the survey are prepared consumers of sports goods. Questionnaire has structured type questions as well as unstructured type questions. Structured objective type questions are prepared for the respondents with fixed response categories. Some of the questions are of multiple-choice type. The questions have more than one alternative. TYPES OF QUESTION INCLUDED: DICHOTOMOUS QUESTIONS which has only two answers ―Yes‖ or ―No‖? MULTIPLE CHOICE QUESTIONS where respondent is offered more than two choices. IMPORTANCE SCALE A scale that rates the importance of some attribute. RATING SCALE A scale that rates some attribute like from ―highly satisfied ‖ to ―highly unsatisfied‖ or ―very inefficient‖ to ―very efficient. SAMPLING UNIT- Who is to be surveyed? The marketing researcher must define the target population that will be sampled. The sample Unit taken by me: 50 respondents of different age group, different gender and different profession. SAMPLE SIZE- Consumers of Restaurant Services =50
  • 17. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 17 1.9.2 STEPS FOLLOWED IN COMPLETING THE STUDY (i) Internet sites containing information on Opinio & competitors are browsed. (ii) Sample survey was conducted. (iii) Data was thoroughly checked for error. 1.9.3 DATA PROCESSING METHODOLOGY (i) Once the primary data have been collected, they are edited – inspected, corrected and modified. (ii) Tabulation – bring similar data together and totaling them in meaningful categories. (iii) Questionnaires are edited. The responses are thoroughly checked in home for incorrect, inconsequential or contradictions categories are developed only often the replies has been reviewed. This review provided a feel for the pattern of answers and thus determine what categories best represent the answers. (iv) The collected data are placed into an order. Percentages of respondents answered similarly are calculated and placed in a table. Then this is interpreted. This involved drawing conclusion from the gathered data. Interpretation changes the new information immerging from the analysis into information that is pertinent or relevant to the study. Conclusion was drawn based on the survey findings .
  • 18. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 18 1.9.4 LIMITATIONS OF THE STUDY 1. Due to shortage of time, the merchants were unavailable to be questioned. 2. Also some of the responses were in common hence the interpretation was same in return. 3. Some of the responses was biased due to absence of the person in concern to be asked. 4. Some of the merchants denied to comment due to their secretive work culture.
  • 19. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 19 Chapter- 1 Literature Review
  • 20. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 20 An Analysis on the Market Potential of adopting & implementing “ Integrated Lastmile Delivery Service” with special reference to OPINIO-HyperLocal Logistics Company. Market Potential Definition:- Market Potential is the valuation of Sales Revenue from all the supplying channels in a market. Market Potential is the population that is interested in the product/service that is being made or offer by an organization. In other words, it is the potential money making capability of a firm if it capitalizes all advantages and everything goes its way. It is a subset of the total population, where market potential is the population, all of whom can be potential consumers of the product or service. Market Potential is the maximum population which would be interested in the product/service, and gives a good insight on the growth possibility as well. Approaches:- On the basis of the following questions Market Potential for a product/service is ascertained- 1) Is this product/service I have in my hand is going to satisfy a market need? 2) What competition is out there? Is it direct or indirect, local, national or international? 3) How distinct is my product from what is being offered in the market of same category? 4) Can the product stand the test of changing trends or take advantage of it before it dies out? 5) Does the law of the land allows for such a business to be established? 6) At what prices are consumers prepared to buy the product and can I make any profit out of it?
  • 21. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 21 IMPORTANT TERMS:- Sales Potential- This is the share of market potential allocated to a specific geographic area for a particular product, or the share of the total market potential that a manufacturer can reasonably expect to sell. The overall figure is always optimistic & must be pruned down by other factors. Sales Quota- Often this is the percentage of Sales Potential assigned to a particular territory. Sales Projection- Using historical sales to project future sales. Last Mile Logistics - a Disrupter's Market ―Service providers, couriers and retailers have been doing last mile for decades. But times are different now. Consider: omnichannel, Amazon's game-changing free and same-day delivery, and Sears creating an offering service for third parties. The last two years also saw disrupters who were previously unknown enter the logistics market. But traditional transportation technology firms are fighting back. 2016 will show dramatic changes in the market.‖ – Ann Grackin, CEO ChainLink Research Home delivery markets are not new. The practice is ancient. But these services were paid for. Free is not cheap. The economics of transportation show that between 25 percent to 75 percent of the transportation costs occur for direct to consumer logistics. With so much money entering into last mile, new regional carriers are expanding, and iconic newer disrupters, funded by investors, have entered the market, offering on-demand approaches. In 2016, retailers will struggle to find profit or at least be cost neutral. Retailers and service providers need to apply some strategic thinking here. Tacking on some service and posting standards rates won’t be enough any longer. Home delivery requires scheduling a delivery that contributes to the firms. And it is also about service, not easy in this always on 24/7 and mobile world. Many category retailers, de facto, have to provide services due to the nature of their products—the need for assembly and installation, for example. Specialty retailers know that an extended service relationship under
  • 22. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 22 their brand creates loyalty and long-term relationships. But customer service can have a negative effect if not done well. Winning at home delivery takes skill and smart technology. The technology for last mile can be seen in home-grown solutions in ecommerce, idea- generating software from disrupter service providers, and logistics technology providers who support these sectors. So what will it take? • Continuous Route Optimization—specific to the last mile challenge. In the service world, unlike longer haul logistics, new requests keep popping up, so systems have to be responsive and avoid the old-style cut-off points. In 2016, traditional TMS route optimizers will scramble to revise their offerings to meet this challenge. • Dynamic Incentivized Scheduling—the ability to develop economic models and dynamic schedules to provide attractive choices to the customer and profitability to shipper. This is the gold standard in technology that only a few providers offer. • Mobile and Telematics for Last Mile—GPS and AVL for precise locating and directing of vehicles. These technologies are blended into the solution to provide driver instructions, monitor delivery status, and link to execution for real-time routing changes. • Electronic Confirmation and Proof of Delivery—Not just mobile signatures. The system confirms appointments while en route to the customer; validates presence (they came and you were not home); electronic proof of delivery; and follow-up on customer satisfaction on the process. 2016 will see more TMS+ providers try to understand the features and needs for last mile, as more end-users seek better solutions. More acquisitions will emerge with omnichannel pressures mounting.
  • 23. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 23 Last Mile: The New Frontier in the Retail Supply Chain If your supply chain strategy includes last-mile delivery, your success will begin with a review of how your inventory is deployed, postponed, configured and distributed across various channels. E-commerce sales have become ubiquitous. According to e-marketer, worldwide e- commerce sales will increase 20% this year to reach $1.5 trillion. Fueling retail’s expansion into untapped markets, the e-commerce fire is putting immense pressure on retailers to seamlessly meet customers’ expectations across devices, platforms and locations on a global scale. Further fanning the flames is a driving need to offer expanded delivery capabilities, while increasing convenience without passing along any visible price increases to the customer. Whether consumers are researching, evaluating, or purchasing products online or in a store, their expectations about product availability, delivery charges and flexibility, return policies, and payment options are on the rise. To complicate matters, these preferences can vary by region, demographics and a myriad of other factors that will continue to evolve over time. Behind this e-commerce conundrum lies a mass of fulfillment, inventory deployment, supply chain network design and omni-channel distribution challenges. Even gargantuan high- profile e-tailers—while having succeeded in offering customers inexpensive and same-day delivery options—are still struggling to maintain efficient last-mile solutions in a cost- effective and profitable manner. As retailers strive to offer a near-perfect shopping experience, leveraging the right data and information across multiple channels becomes paramount as reliance on their network’s last- mile capabilities and efficiencies is amplified. And since each retailer varies in the value and range of SKUs offered online vs. in-store, there is no one-size-fits all solution to implement across the industry to prepare for this new frontier. Despite retailer-specific last-mile delivery nuances, there are steps all companies can take to determine what supply chain strategies will make the most financial sense in the race for an effective and efficient last-mile experience.
  • 24. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 24 Six Elements to Consider Across Your Last-Mile Frontier If your strategy includes last-mile delivery, your success will begin with an extensive review of how your end-to-end supply chain network is designed and how your inventory is deployed, postponed, configured and distributed across channels to meet 21st century customers’ shopping and delivery preferences. The six considerations below are the tip of the iceberg. But they can aid you in your strategic decision-making and provide insight into the real cost impact of last-mile delivery so you can frame an efficient last-mile solution and get your supply chain network headed in the right direction. 1. Never lose sight of what actually matters to the customer. First and foremost, you need to start with a full understanding of your customers’ requirements and expectations and how these subsequently influence their buying behaviors. According to comScore’s 2014 ―Pulse of the Online Shopper‖ survey (commissioned by UPS), a whopping 93% of shoppers have taken some type of action while shopping online to qualify for free shipping. But consumers change both their online and in-store shopping patterns and preferences based on value-added benefits that range from low or no-cost shipping to loyalty programs to generous returns policies. Keeping your finger on the pulse of customers’ wants and delivery preferences and offering them flexible and appealing shopping options—from specific delivery windows to certain zip codes, to in-store pick-up or convenient nearby drop-off and pick-up locations where items can be left securely—will prove beneficial. For example, return preferences vary dramatically across geographies with European consumers (66%) preferring to ship return items directly to the retailer compared to Brazilian consumers (71%), who prefer to return items directly to the store. Tying customer behavior, marketing data and metrics back into your supply chain network strategically can produce revenue-generating results. 2. Explore innovative approaches, like bundled product shipments. Last-mile delivery introduces a whole new layer of complexity to a product’s sales margins and exacerbates the ―shipment density dilemma‖ that has challenged shippers for decades. Fifty eight percent of customers abandoned their online shopping carts because shipping costs were more than expected, and half abandoned because they didn’t qualify for free shipping. Traditionally, high-margin items like cell phones and laptops can justify traditional
  • 25. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 25 small parcel courier costs; but low-margin SKUs cannot easily recover or absorb these costs and still remain profitable. The main issue is how to alter customer expectations to make last-mile deliveries profitable. To compensate for customers’ free shipping preferences, retailers may want to consider consumer incentives to bundle products—say a phone with household items or clothing—to raise revenue per order and density per shipment. If possible, postponing orders until multiple products can be shipped together to generate enough revenue and density to justify free delivery is an option to offset last-mile transportation cost impacts. Until delivery density can be maximized to ensure profitability, managing customer expectations is an excellent interim measure to make last-mile deliveries profitable. 3. Explore non-traditional distribution capabilities. Retailers who have grown through brick-and-mortar store sales have an imperative to ensure these assets are leveraged to their fullest in the face of e-commerce. Consumers value brick- and-mortar stores for the physical shopping experience, instant gratification and the ability to see, touch and feel merchandise before making final buying decisions. However, there are substantial real estate and labor costs associated with a store’s operation. Your last-mile strategy can be designed to maximize your existing brick-and-mortar assets and capitalize on in-store inventory. By incorporating stores into distribution nodes or fulfilment points within your retail distribution network, you can make same-day fulfilment a viable and cost-effective option offering potential savings in transportation costs. Other options to explore include using a third-party logistics provider (3PL) for fulfillment or last-mile capabilities and assessing minimal lease requirements to ensure your network can remain flexible. And of course, you’ll want to innovate in the delivery options you offer over time to adapt to consumers’ changing needs and maintain the highest possible margins. 4. Optimize transportation solutions to meet last-mile demands. The most uncertainty and opportunity lies in the nuts and bolts of how a product/package’s chain of custody is outsourced and moved throughout the last mile. This is truly where we see total cost-to-deliver dynamics and innovative approaches make the most sense. New, small experimental entrants like Uber, Instacart and Deliv are emerging at the forefront. However, as we move away from traditional carrier delivery models there is a need to provide more extensive tracking and beefed-up package security to meet customer expectations, perception, consistency and quality. As a result, route auctions and technology
  • 26. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 26 that offers increased visibility into network options will become extremely important over the next few years. For their part, small-parcel couriers like FedEx and UPS have traditionally optimized their freight movements and density as freight travels from many origins to like zip code destinations, but are now faced with the large hurdle of trying to efficiently optimize what is known as many-to-one freight movements (picking up from a distribution center and delivering to a single residential or other address). The burden of cost for these one-to-one shipments is shifting to the shipper and, by default, to the customer, evidenced by the recent dimensional weight pricing changes enacted by FedEx and UPS in 2014. These unsustainable last-mile freight costs will eventually be shared among all supply chain participants by some combination of having them pay directly for the costs, through package optimization or order consolidation, or by creating demand density through time-definite deliveries or sweep distribution. Until innovation on the product side happens and density can be efficiently factored into the equation, though, having some type of customer incentive will help to offset these transportation costs. 5. Consider inventory’s form, function and placement within your supply chain. Visibility into forward-distribution based demand signals will become critical in this new frontier, as retailers seek to literally think outside the box to manipulate and repurpose inventory as close to the point of need as possible. To ensure the best inventory deployment, configuration and strategy, advanced inventory planning and scheduling will present the opportunity for more dynamic forecasting than we’ve ever seen, along with inventory regulations, rules and structure that will accompany success. Traditional inventory management helped to hedge supply and demand’s peaks and valleys, using safety stock as a buffer. With today’s short shipping windows, social shopping, online reviews and price matching, inventory placement will become a major cost driver if not done right. Keeping inventory flexible and generic up until the actual point of need will become a strategic advantage. Eventually all inventory will need to become ―ubiquitous‖ as in-store inventory availability and specific packaging requirements fall to the wayside to gain the necessary flexibility to
  • 27. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 27 allow visibility and deployment across multiple distribution channels. Rethinking inventory policies, repurposing traditional channels, harnessing unstructured data and connecting it into global inventory systems in near-real-time with accurate points of inventory availability will result in better inventory placement and deployment throughout the supply chain network. By circumventing point–of–sale (POS) systems—and replacing them with systems that provide inventory points of availability and/or points of presence—and tying that data back to the points of distribution will help to create a truly omni-channel inventory planning system. Maintaining ubiquitous inventory across every network ―node‖ will help you determine the optimal location from which to source the order and ensure your last-mile success. 6. Focus on returns management efficiency. Most companies have focused on the forward distribution struggles this last-mile equation provides, and rightfully so. Historically, resources spent on returns have been viewed as unrecoverable losses. But returns management really need to be a core part of your last-mile strategy, not only to provide your customers with a simple, no-hassle returns experience but also so your inventory flows smoothly and efficiently back into your network. At the end of the day, the only way to make the returns process efficient is to reduce the number of touch points. Returns efficiency can be addressed by having drivers who are located near customers pick up returns on their return routes or by encouraging customers to return items back to storefronts or strategic drop-off points. If all of this sounds overwhelming, that’s because it is. Some forward-thinking companies are plowing ahead with supply chain strategies that include real-time visibility into inventory across every channel or ―node,‖ accessing both in-store and online inventory assets for fulfillment, as well as exploring alternative last-mile delivery methods. Despite these advancements, most companies still have at least some unanswered questions regarding their own last-mile frontier. Few things are certain as we approach this new frontier. However, one thing is for sure— last-mile networks will be in flux for the next three to five years. Those companies who want
  • 28. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 28 to begin—or continue—to build out their last-mile capabilities will need to analyze and model different distribution scenarios to better understand their true cost to serve and gain core last-mile competencies, all of which will require ongoing supply chain network modelling and inventory optimization to adequately define new distribution points. There is a clear link between supply chain proficiency and confidence in revenue growth. It all comes down to having inventory at the right place, in the right form, at the right time; an innovative flexible network as close to the point of need as possible; and a transportation solution that delivers to customers’ high expectations, with the most product and revenue in each delivery as possible, along with a simple and accountable returns process and methodology to keep them coming back for more.
  • 29. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 29 Findings
  • 30. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 30 As discussed in the earlier parts of the report, Business Development is a combination of all the facets of the business working towards the common goal, that is providing a long term value to the organization by the customer, markets and relationships. Hence I’ll guide you through all the functions I got to work for or observed during the course of my Internship in OPINIO. Sales: I was working as a sales executive for OPINIO in southern part of Bangalore, where I was responsible for end to end sales of the OPINIOAPP in the market to the concerned prospective clients. It followed the same personal selling steps of:  Prospecting and qualifying  Approach  Presentation  Overcoming Objections  Closing  Post Sales Services Prospecting and qualifying: During the course of my internship in OPINIO, we used to generate the leads through zomato.com for a particular region, searching for the keyword of home delivery. After collecting the list of the restaurants, we used to approach over there to qualify using the questionnaire while talking to any of the representative present over there and used to update a sheet like below for further processing. After creating the chart, qualifying was done so as which merchant to approach for onboarding and which not to. The qualifying depended upon the category in which the merchant fell into. It was decided on the basis of number of orders received by him for home delivery on daily basis.
  • 31. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 31 Approach, Presentation and Objection Handling After the qualifying was done and we were given a green flag from the operations side that we can start services in the given area, we approached the merchants for final meeting and he was given the final presentation. After the presentation, if there were any ambiguity in the merchant’s mind regarding the app, it was explained and then we arrived at the close. Closing After all this processes only, the client was closed on the deal and onboarded to the system using the company dashboard as shown in the following snapshot. The details incorporated in this form were the address, expected orders for home deliveries and contact details. After that the services were immediately started. After onboarding, the merchant was asked to sign a Service level agreement, and only after that the services were started. This agreement consisted of all the data about the delivery services.
  • 32. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 32
  • 33. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 33 SERVICE LEVEL AGREEMENT Date: ____ ____ ________ Greetings, This is to bring in your kind attention - after successful first level talks - we are pleased to on board you for our services. Restaurant/Merchant Details: Registered Name – ___________________________ Registered Address – ___________________________ _________________________ ______________ Owner Name – ___________________________ Phone Number – ___________________________ Email Address – ___________________________ (MERCHANT SIGNATURE) For Opinio (Moonshots Internet Pvt. Ltd.) On-Boarded by – ___________________________ Authorized by – ___________________________ Date of Agreement: ____ ____ ________ (AUTHORIZATION’ SIGNATURE)
  • 34. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 34 ANNEXURE 1 Standard Pricing: Delivery Distance in Kilometres Price in INR 0 – 4.5 20/25 * 4.5 and above 20/25 + an additional 05 for every extra Kilometre *20 for internet booking / 25 for miss call booking. The distance mentioned stands for the distance travelled by the Ground Pilot from merchant to delivery location. Note:  For bulk deliveries, we have a maximum cap of 5* per Ground Pilot. For such bulk deliveries, we charge for, Number of deliveries (bulk) -1 (minus 1), subjected to Min 2.  The service timings are 11.00 am to 11.45 pm (last order)  All cash payments up to Rs.1000 will be paid on the spot to the merchant. Any payment more than Rs.1000 will be settled by EOD latest.  The Ground Pilots will be responsible for picking up and delivering the items in a timely and safe manner. The packaging/billing/tallying shall be done by the merchant.  This pricing will be applicable for 60 days after the end of the trial period (7 days). Trial period will start from the ―Date of Agreement.‖  Invoicing – An Invoice will be raised to the Merchant in the 1st week of every calendar month against services rendered in the previous calendar month. Merchant will have to clear invoice within 7 days of invoice date. *Standard Logistic Delivery Constraints Applicable
  • 35. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 35 Service Level Agreement Distance from merchant Arrival at merchant Drop Completion (Single Drop) Drop Completion (Multiple Drop) Worst- Case Best- Case Worst-Case Best-Case Worst-Case 0-1 km 15 mins 5 mins 20 mins 5-10 mins 30 mins 1-4.5 km 15 mins 5 mins 30 mins 15-20 mins 45-60 mins >4.5 km (up to 6 kms) 15 mins 5 mins 45 mins 25-30 mins NA These are our best-effort scenarios. These numbers can vary, depending on external factors. 1. The ―Arrival at merchant‖ time is calculated from the time the Ground Pilot accepts the request. 2. The ―Drop Completion‖ time is calculated from the time the Ground Pilot leaves after making the pick till they complete the delivery. 3. If the order has been picked up by the Ground Pilot and then is cancelled for reasons other than the order reaching late, it will be chargeable to the merchant. 4. In case it is cancelled before the Ground Pilot makes the pickup, it is not chargeable. 5. ―Multiple Drop‖ will be defined as one Ground Pilot making a pickup from the same merchant and delivering parcels to multiple addresses. These addresses can be in the same society/business park/locality.
  • 36. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 36 6. Multiple drops will be accepted only if they are in the same locality. The Ground Pilot cannot accept drops located more than 1 km from each other. The Ground Pilot can only accept up to a maximum of 5* drops in a Multiple Drop. 7. It is the merchant’s responsibility to ensure the order is correct in terms of packaging, matching of items to bill and keeping the parcel ready for pickup. The Ground Pilot will check the packing and match the item quantities with the bill and alert the merchant if there is any issue with either of them. 8. In case the Ground Pilot does not complete the task during the worst-case time mentioned, it will be noted the first time and an attempt to eliminate such an incident will be made. If it happens again after this incident, Opinio shall not charge for that particular delivery. 9. The Ground Pilot cannot accept any delivery that has been requested through mechanisms other than the ones provided by Opinio. (Merchant App / Call Based). The merchant is requested to adhere to this policy strictly. 10. The Hub Manager will be responsible for tracking the Ground Pilot from the time the order is assigned to them till it is completed. For any query/issue resolution, the merchant is requested to call the Hub Manager for their area, whose phone number will be provided to them at the time of on-boarding. 11. The merchant is requested to request for the Ground Pilot through their merchant app in such a way that they will not be required to wait at the premises for more than 10 minutes. 12. The business hours for Opinio Ground Pilots will be from 11 am till 11.45 pm i.e. the Ground Pilots can take requests for deliveries till 11.45 pm only. The merchant is requested to not make any requests post 11.45 pm Contact Information for Operation related enquiries (Ground Pilot delivery) Name: ___________________ Number: ____________________
  • 37. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 37 Contact Information for Sales related enquiries Name: ___________________ Number: ____________________ Post Sales Services:- Post sales services involved:  Getting feedbacks from every client at a regular interval  Visiting the clients at a regular interval  Collaborating with the Operations department to check the availability of required number of GP’s in a given location.  Preparing and delivering the monthly invoices to all the clients every month.  Grievance handling of the customer.  If there is any GP related problem or app related problem, consult to the respective department of Operations or IT to solve the problem asap and get back to the client.  Keep track of weekly variation in customer’s demand. Limitations:-  Lack of regular sales meeting  Lack of involvement of junior sale staff in decision making  Lack of proper structure in strategizing  Unavailability of invoicing software  No dedicated customer support staff
  • 38. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 38 Operations Department:- Operations department is basically responsible for all the ground pilot related activities, such as:  Deployment of GP’s at a required location in the required number  Training of GP’s  Orientation meeting with all the GP’s in a particular hub  Keeping track of all the GP’s using GPS based location software  Solving customer grievances related to the GP’s as late delivery, non-connectivity with the server to call the GP or any wrong behavior of the GP towards the client or the customer. Operations executives work on the basis of virtual hubs created for a particular geographic location to serve particular customers. Every executive is responsible for their particular hub for the availability of GP and all other GP related activity. All the sales executives also had to consult the operations executives every time before onboarding any new client in that particular hub, because before starting the service for that particular merchant, the GP’s need to be recruited by the HR department and trained by operations just to make sure that the services run smoothly For grievance handling also, the client only called the sales point of contact and the sales executive now needed to collaborate with the operations executive to solve the problem. For example, I was working in the South Bangalore region under Banashankari Hub. Now if any client, suppose Olive Era had any Gp related problem as the person can’t be approached, their manager called me, stating all the problems and now I needed to talk to Vikram, the operations executive at Banashankari hub, he made sure that the GP reaches the restaurant within 5 minutes and then informed me. Then I informed the merchant that the GP will be there within 5 minutes. Hence all the activities carried out by Sales and Operations team was purely collaborative and none can be done properly without mutual support. They were two complementary functions.
  • 39. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 39 Limitations:  Network loss in GP’s Phones  Lack of proper territory training in certain cases  GP negligence  Lack of proper morning orientation  Late reporting of GP’s HR Department: HR Department in Opinio has two separate divisions,  One for the white collar employees  The other just for Ground Pilots The team working for the white collar employees was headed by Ms Swati Singh in the Bangalore office which took care of all the aspects of HRM for the executives in the office. The digital footprints of the company whether for new job opportunities or wishing Birthdays or other occasions were also made very regularly and in a very attractive manner on all the major social networking sites and emails. Some of such examples are shown below:-
  • 40. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 40 The team working for ground pilots was headed by Mr. Mercy Bhattacharya in Bangalore office, where his services were dedicated to new GP recruitment and their grievance handling. A lot of attractive schemes were available for GP’s, such as:  Highest salaries among other competitors  Attractive incentive structures  Company provided power source for mobile charging and mobile bill payment  Part time work option available
  • 41. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 41 Limitations:  High employee turnover  Unavailability of literate GP’s  High training cost  Conflicts among GP’ Marketing Department:- Marketing department always kept contact with the whole of the staff through emails and kept sharing all the new developments in the organization through emails and social media, such as: OPINSPIRATION
  • 42. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 42 Sharing new updated Strategic Tie-Ups:- Opinio has a lot of strategic tie-ups with different organizations in all the cities they are active. But talking about Delhi/NCR region, the following are the main strategic tie-ups: Delhivery: Delhivery is a very well known logistics brand all across the country and Opinio has a tie-up with them in a number of cities such as Delhi, Hyderabad, Pune and Chennai. They have a huge network of clients available and through this tie up, Opinio got a chance to share the clients with them and they got to use the technology that Opinio had in their app. Talking about Delhi, Delhivery used to do all the deliveries for Opinio’s clients and all there clients were also given Opinio’s app to call the ground pilots. This tie-up took place when they played a major role in the arrangement of Series A funding for Opinio for USD 7 Million. Zomato: Second major tie up was with Zomato, where we got to have all the delivery orders from Zomato. And as it is the most well known website for food aggregation in India, this tie up gave a tremendous brand recognition for Opinio as well.
  • 43. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 43 Yum Foods: Yum food is a company which owns all the Pizza Hut outlets in Delhi/NCR Region, and this tie up was done right by the time my tenure with Opinio was finishing, but this must have given a huge boost to the number of orders they were getting before as an average Pizza Hut dispatches 80-100 home delivery orders on a daily basis.
  • 44. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 44 Chapter- 2 FINDINGS = GRAPHICAL PRESENTATION OF DATA 1. How old is your restaurant? A. 0-3 B. 3-5 C. 5-7 D. More than 8
  • 45. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 45 A. 0-3 25 B. 3-5 10 C. 5-7 9 D. More than 7 6 As represented in the graph, most of the restaurants in South Delhi Region are relatively new because of the fierce competition in the market and the survival rate of restaurants is not much as they are not ready to change as fast as the consumers’ taste and preferences. Some of the restaurants who keep themselves up to date as the consumers’ tastes and preferences, they are thriving for a much longer time. The reason for us to keep this question in the questionnaire was just to assess the stability in the market and only after making sure that the restaurant will sustain, we used to associate our brand with them. 25 10 9 4.5 Series 1 0-3 3-5 5-7 More than 8
  • 46. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 46 2. Do you provide Home Delivery service? A. Yes B. No Yes 44 No 6 The food market of Bangalore now is mainly dependent upon the home delivery services because of the busy life people lead in this region. Even on the weekends also they prefer to order food home and have in their own place just because they don’t want to waste even a second of rest they can take out of their busy schedule. 6 44 Sales No Yes
  • 47. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 47 3. If Yes do you have your own Delivery Service? A. Yes B. No Yes 5 No 45 As constituting a Delivery force in a restaurant of own costs a lot to the owner regarding payment of Salaries, Technological Assistance, Infrastructure costs, Supervision etc. Hence outsourcing the activity to 3rd party Logistics company has a become a common phenomenon in HyperLocal Market. So these startups are getting huge responses from the merchants due to their innovation 4. If Yes ,up to what distance & orders u handle? 5 45 0 5 10 15 20 25 30 35 40 45 50 Yes No Response Response
  • 48. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 48 A. 1-2 A. 0-5 B. 2-3 B. 5-10 C. 3-4 C. 10-15 D. 4-5 or more D. 15-20 or more 1-2km 40nos 2-3km 20nos 3-4km 15nos 4-5km or more 10nos Hence we can observe that for short durations merchants don’t hesitate to deliver orders mostly through their own Delivery boys but for long distances they generally don’t accept orders considering a minimum order value of Rs. 500 or more. Hence there is a huge opportunity to untapped the market potential of HyperLocal Deliveries. 5. If No , are you interested at Integrated Delivery Service? 40 20 15 10 Orders 1 to 2km 2 to 3km 3 to 4km 4 to 5km Distance(kms) Orders (qty)
  • 49. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 49 A. Yes B. No Yes 47 No 3 Due to improved & innovative Technological Upgradation & efficient Manpower Planning, hence many of the merchants agreed to adopt Integrated Delivery Service so as to cut down costs & have greater Market Share than competitors. 0 5 10 15 20 25 30 35 40 45 50 Yes No Responses Responses
  • 50. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 50 6. Do you have any past experience with Last Mile delivery service? A. Yes B. No Yes 6 No 44 The above statistics reveal the past experience of merchants with some of them tried with startups like Townrush, Roadrunnr,etc due to service failure in most of the cases & high price margin forged them to withdraw their association with the delivery partners. Further the high cost margin restricts the spreadout of the network only to few selected merchants. 0 10 20 30 40 50 Yes No 6 44 Responses Responses
  • 51. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 51 7. Are you interested with Opinio Hyper-local Logistics Service? A. Yes B. No Yes 42 No 8 As some of the merchants were previously unhappy with their delivery partners, hence knowing about the Business Model, Price margin, dedicated Hubs at prominent locations & huge Manpower availability finally convinced most of the merchants to adopt & experience the service of Opinio. 42 8 Sales Yes No
  • 52. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 52 8. How will u rate our Business Model? A. 5- Highly Innovative B. 4- Innovative C. 3- Average D. 2- Need Improvement E. 1- Not Efficient Massive Funding, Huge Manpower, Best-in class technology & infrastructure enabled Opinio to get huge positive responses from the merchants. Also the Price factor compelled the merchants to get tie-up with Opinio so as to expand their market & profit through Home Deliveries. 0 2 4 6 8 10 12 14 16 18 20 5 4 3 2 1 10 20 12 5 3 Rankings Rankings
  • 53. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 53 9. What mode of operation you want to follow? A. Online B. Offline Online 20 Offline 30 Due to non-availability of Technological Infrastructure some of the merchants wish to do the offline service by giving specialized mode of Delivery option to them whilst most of prominent merchants wants the fundamental way of delivering as what Opinio used to do in general so as to ensure Real-time tracking of delivery. 10. What is your expectation level from Opinio? 20 30 Mode of Operation Online Offline
  • 54. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 54 A. 5- Very high B. 4- High C. 3- Average D. 2- Low E. 1- Very Low Very High 5 High 4 Average 3 Low 2 Very Low 1 With new technology up gradation & huge manpower most of the merchants have higher expectations from Opinio whereas due to failure of other HyperLocal Logistics company, some has expressed dissatisfaction regarding this Business model. Responses 0 5 10 15 20 25 Very High High Average Low Very Low 25 10 7 6 AxisTitle Responses
  • 55. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 55 11. What additions you want from Opinio? A. Android App B. Tablet C. Smart phone D. Permanent Ground Pilot E. Faster Delivery Android App 15 Tablet 10 Smartphone 8 Permanent GP 26 Faster Delivery 40 With the number of increasing Home Delivery orders & immense competition to retain customers, Merchants expect Faster Delivery to be happened first, whereas those who get regular orders want Permanent GP in their outlets to avoid the rush of late delivery. The techies want devices with custom Opinio app built-in to ensure timely deliveries. 15 10 8 26 40 Sales Android App Tablet Smartphone Permanent GP Faster Delivery
  • 56. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 56 Chapter- 3 Summary of Findings
  • 57. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 57 Now to summarize the findings I got during my course of work in Opinio, I would like to list it out as:  Any organization, especially a startup cannot really develop the business until there is collaboration and coordination between all the departments.  During my course of work there I also had a realization about Blue Ocean and Red Ocean theory, that blue ocean is not necessarily beneficial in every cases, like in this case, we were among the last to enter the South Bangalore Market, but our business model and services were rather more acceptable in the market than the other competitors.  We had an upper hand because we could customize better according to the customers’ need. The missed call option is the biggest example for the same.  I got to learn that business development is not only sale but actually understanding the need in the market and efficiently delivering. An example for this would be the option for Single Pickup and multiple drop, or the new option of POS also where the customer can easily make card payments directly to the ground pilot.  The face of the food industry is completely different now since the advent of these last mile delivery services, as the merchants now don’t even recruit their staff for deliveries because they are getting better services for much lower prices.  Merchants today are not afraid of trying new opportunities as long as they see long term benefit in that.
  • 58. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 58 Chapter- 4 CONCLUSION & RECOMMENDATION Conclusion
  • 59. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 59 I would like to conclude the report by just summarizing what I have been talking about through all the report, that:  The only way to develop in such a competitive market like Delhi/NCR is to collaborate and coordinate within all the departments. Inter department rivalry will just give rise to conflict, no good can ever come out of it.  The atmosphere the top management has created of flat organizational structure where everyone is considered the same and the company has given rise to the first name culture is definitely a very bold step, but will definitely garnish an atmosphere of friendship among the employees which will definitely end up being profitable to the organization.  I would like to conclude by just saying that the emergence of services like hyper local last mile delivery will definitely change the face of the retail sector in this country if it has not already. Recommendations
  • 60. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 60 Following are some of the few points I would recommend to the company:  Every alternate day meeting of sales team  Once in a week common meeting of all the departments  Regular training and development sessions at least every fortnight  A well-structured sales pitch  Revision of delivery rates after a certain period of time  Provision of a structured invoicing software that can create an automatic invoice every month and redirect to the respective merchant  Strict rule about the dress code, at least for the sales team  Better incentives for the sales team  Starting of operations in the breakfast hours also so as to serve more customers  Provision of shift job for operations executives  Recruitment of non-local ground pilots to avoid conflict and for betterment of training programs  Strict rules for ground pilots to be on time and avoid negligence
  • 61. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 61 ANNEXURE- 1 QUESTIONNAIRE
  • 62. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 62 (H.O- Concept Business Tech Park, B-Block, Bomanahalli, Bengaluru, Karnataka) Personal Details: Name: Address: Business Type: Contact No: 1. How old is your restaurant? A. 0-3 B. 3-5 C. 5-7 D. More than 8 2. Do you provide Home Delivery service? B. Yes B. No 3. If Yes do you have your own Delivery Service? A. Yes B. No
  • 63. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 63 4. If Yes ,up to what distance & orders u handle? A. 1-2 A. 0-5 B. 2-3 B. 5-10 C. 3-4 C. 10-15 D. 4-5 or more D. 15-20 or more 5. If No ,are you interested at Integrated Delivery Service? A. Yes B. No 6. Do you have any past experience with Last Mile delivery service? A. Yes B. No 7. Are you interested with Opinio Hyper-local Logistics Service? A. Yes B. No 8. How will u rate our Business Model? A. 5- Highly Innovative B. 4- Innovative C. 3- Average D. 2- Need Improvement E. 1- Not Efficient Distance(kms) Orders (qty)
  • 64. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 64 9. What mode of operation you want to follow? A. Online B. Offline 10.What is your expectation level from Opinio? A. 5- Very high B. 4- High C. 3- Average D. 2- Low E. 1- Very Low 11.What additions you want from Opinio? A. Android App B. Tablet C. Smart phone D. Permanent Ground Pilot E. Faster Delivery
  • 65. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 65 ANNEXURE II SERVICE LEVEL AGREEMENT
  • 66. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 66 Date: ____ ____ ________ Greetings, This is to bring in your kind attention - after successful first level talks - we are pleased to on board you for our services. Restaurant/Merchant Details: Registered Name – ___________________________ Registered Address – ___________________________ _________________________ ______________ Owner Name – ___________________________ Phone Number – ___________________________ Email Address – ___________________________
  • 67. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 67 (MERCHANT SIGNATURE) For Opinio (Moonshots Internet Pvt. Ltd.) On-Boarded by – ___________________________ Authorized by – ___________________________ Date of Agreement: ____ ____ ________ (AUTHORIZATION’ SIGNATURE)
  • 68. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 68 ANNEXURE I Standard Pricing: Delivery Distance in Kilometres Price in INR 0 – 4.5 20/25 * 4.5 and above 20/25 + an additional 05 for every extra Kilometre *20 for internet booking / 25 for miss call booking. The distance mentioned stands for the distance travelled by the Ground Pilot from merchant to delivery location. Note:  For bulk deliveries, we have a maximum cap of 5* per Ground Pilot. For such bulk deliveries, we charge for, Number of deliveries (bulk) -1 (minus 1) , subjected to Min 2.  The service timings are 11.00 am to 11.45 pm (last order)
  • 69. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 69  All cash payments up to Rs.1000 will be paid on the spot to the merchant. Any payment more than Rs.1000 will be settled by EOD latest.  The Ground Pilots will be responsible for picking up and delivering the items in a timely and safe manner. The packaging/billing/tallying shall be done by the merchant.  This pricing will be applicable for 60 days after the end of the trial period (7 days). Trial period will start from the ―Date of Agreement.‖  Invoicing – An Invoice will be raised to the Merchant in the 1st week of every calendar month against services rendered in the previous calendar month. Merchant will have to clear invoice within 7 days of invoice date. *Standard Logistic Delivery Constraints Applicable
  • 70. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 70 Service Level Agreement Distance from merchant Arrival at merchant Drop Completion (Single Drop) Drop Completion (Multiple Drop) Worst- Case Best- Case Worst- Case Best- Case Worst-Case 0-1 km 15 mins 5 mins 20 mins 5-10 mins 30 mins 1-4.5 km 15 mins 5 mins 30 mins 15-20 mins 45-60 mins >4.5 km (up to 6 kms) 15 mins 5 mins 45 mins 25-30 mins NA These are our best-effort scenarios. These numbers can vary, depending on external factors. 13.The ―Arrival at merchant‖ time is calculated from the time the Ground Pilot accepts the request.
  • 71. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 71 14.The ―Drop Completion‖ time is calculated from the time the Ground Pilot leaves after making the pick till they complete the delivery. 15.If the order has been picked up by the Ground Pilot and then is cancelled for reasons other than the order reaching late, it will be chargeable to the merchant. 16.In case it is cancelled before the Ground Pilot makes the pickup, it is not chargeable. 17.―Multiple Drop‖ will be defined as one Ground Pilot making a pickup from the same merchant and delivering parcels to multiple addresses. These addresses can be in the same society/business park/locality. 18.Multiple drops will be accepted only if they are in the same locality. The Ground Pilot cannot accept drops located more than 1 km from each other. The Ground Pilot can only accept up to a maximum of 5* drops in a Multiple Drop. 19.It is the merchant’s responsibility to ensure the order is correct in terms of packaging, matching of items to bill and keeping the parcel ready for pickup. The Ground Pilot will check the packing and match the item quantities with the bill and alert the merchant if there is any issue with either of them. 20.In case the Ground Pilot does not complete the task during the worst-case time mentioned, it will be noted the first time and an attempt to eliminate such an incident will be made. If it happens again after this incident, Opinio shall not charge for that particular delivery. 21.The Ground Pilot cannot accept any delivery that has been requested through mechanisms other than the ones provided by Opinio. (Merchant App / Call Based). The merchant is requested to adhere to this policy strictly.
  • 72. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 72 22.The Hub Manager will be responsible for tracking the Ground Pilot from the time the order is assigned to them till it is completed. For any query/issue resolution, the merchant is requested to call the Hub Manager for their area, whose phone number will be provided to them at the time of on-boarding. 23.The merchant is requested to request for the Ground Pilot through their merchant app in such a way that they will not be required to wait at the premises for more than 10 minutes. 24.The business hours for Opinio Ground Pilots will be from 11 am till 11.45 pm i.e. the Ground Pilots can take requests for deliveries till 11.45 pm only. The merchant is requested to not make any requests post 11.45 pm Contact Information for Operation related enquiries (Ground Pilot delivery) Name: ___________________ Number: ____________________ Contact Information for Sales related enquiries Name: ___________________ Number: ____________________
  • 73. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 73 Thank You… Bibliography Books:  Business Statistics – G.C. Berry  Marketing Management – Philip Kotler Websites and Journals:  Deliver.opinioapp.com  Opinioapp.com  Iamwire.com  Yourstory.com  Andrewdumont.com  Industryweek.com
  • 74. A Study on the Market Potential of Integrated Delivery Service NATIONAL SCHOOL OF BUSINESS Page 74  Talkinglogistics.com  Livemint.com