DND is a delivery startup showing sales growth but still operating at a loss. It faces challenges from competition, an unclear expansion plan, unreliable delivery partners, and poor customer service. The advisor proposes solutions including a 3-year expansion plan targeting break-even, entering new large cities like Mumbai and Kolkata, feasibility studies, improved customer service, and adding new product categories to expand offerings. Key elements are developing local supplier relationships, hiring local delivery executives, and ensuring cross-departmental collaboration in implementing changes.

1. Advisory note on Business expansion plan of DND
Case Understanding
It is a case of a Delivery startup named “Daily needs delivery LLP” (DND) which
is founded by two college friends. It basically deals in delivery of mainly 3
products including Milk, Paneer (cottage cheese) and Curd. DND uses an app
based ordering system where customers can order for their daily needs
accordingly. Itcurrently has presencein cities like Delhi, Bengaluru and Mumbai
only.
Although the organization is showing a good growth as its total sales have
increased from Rs. 67211000 in financial year 2017-18 to Rs. 117450000 in
financial year 2018-19 keeping in mind that it is still in its initial phase but
currently it is running under Operating Loss of Rs. (6855000) approximately
annually. Like all start-ups DND too is facing certain challenges which are as
follows:
1. Increasing competition from Traditional competitors and new entrants in
the market. They are taking advantage of non-availability of services in
Non-dense areas by DND.
2. Company is clueless about its expansion plan as to how should it expand
its operations in other cities of thecountry.Also,the management is quite
hesitant as it fears that it will not even recover the cost incurred.
3. Non-cooperation of Delivery partners as sometimes delivery executives
do not reportto duty in the morning and due to deliveries get affected in
that particular area. Also, there are certain cases of missing deliveries.
4. DND is not having a strong customer servicenetwork as some customers
are facing difficulty in complaining or giving feedback through
website/app.
Summary of the solution
In response to the problems stated above and the expansion needs of the
company, I, as a Business Advisor of DND have proposed some of the solutions
and steps which should be implemented and also certain things which have to
be keptin mind while expansionin my main solution part. Someof my proposals
include entering into new markets (in other cities), working towards achieving

2. break-even in sales, carrying out feasibility studies for new target markets,
organized customer service for better grievance handling and adding new
products like Bread, eggs and Cheese into its delivery base for catering to large
number of customers. All the solutions are described in detail below.
Solution
By taking the current situation of the company in mind and analysing all the
challenges it is facing, I am proposing following solution as an advisory note for
the expansion plan:
1.) Themanagement of the Company shouldcome up with a 3-yearplan and set
some targets to achieve in these three years. DND should strive towards
achieving Break Even (Sales = Cost) in coming years so that it can recover all the
cost incurred and further focus on its expansion plan. Here, the principle of
“Authority and Responsibility” is used as the management has the authority to
take decision and to give order but also has certain responsibilities to fulfill.
2.) Currently it has presence in 3 cities which are Delhi, Bengaluru and
Hyderabad. It should look into the market of other metropolitan cities too like
Mumbai, Kolkata and Chennai.
City Population
(As per census 2011)
Mumbai 1,24,42,373
Chennai 46,81,087
Kolkata 44,86,679
Asthe table abovesuggests,thesecities havehigh population and a hugemarket
which gives DND an opportunity to grow and expand further through these
markets. As per a reportby Hindustan studies, Mumbai is the largest consumer
of processed cheese, accounting for 30 percent of cheese sold in the country,
followed by Delhi (20%), Kolkata (7%) and Chennai (6%).
3.)Beforeexpanding its operations in other cities and in Non-denseareas, a Pilot
testing shouldbe conducted in these particular areasto make surethat whether
it will be feasible to operate in these cities or not.
4.) Other daily need products should also be included in the portfolio of DND
such as Bread, eggs, processed cheese, etc. As discussed above, there is a high

3. demand and consumption of processed cheese specially in metropolitan cities
like Mumbai, Delhi, Kolkata, etc.
5.) Establishing good Business relationship with local vendors including
Wholesale suppliers, merchants, etc. in all the cities whereDND is operating so
that it can procure good quality products at reasonable price. It will also help
the company in getting an upper hand over other competitors in the market.
6.) Proper Customer service centre should be introduced for handling
customer’s grievances and feedback. A chatbot can also be introduced who will
be working on the queries of customers and a team of 3-4 people (in every
district) will also be there for manually operating. In this way customers willnot
face any language related problem too. Also, for setting up of this a certain
investment will be needed on which finance department should work on.
7.) Majority of the delivery executives should be hired from the local area as
they will be having a good knowledge of the routes and the traffic situation in
that particular area. In this way, DND will solve many of the delivery related
problems as route optimization will be there and therefore, faster and on time
deliveries can be achieved.
Conclusion
The top level management of the company should set certain targets for itself
to achieve in the next three years and prepare a three-year expansion plan. It
should work according to this plan and also keep in mind all the challenges and

4. opportunities in the market. It is evident that the company is in dire need of
expansion at this stage but there are certain problems which are needed to be
solved and fixed before exploring new markets like Mumbai, Kolkata, Chennai,
etc. All the departments such as Finance, Marketing and Human Resource
should work collaboratively to achieve break-even point of the company and
work upon the proposals listed above for expansion strategy. The management
has to make surewhether all the things are in place while implementing these
solutions. For example: a concrete marketing plan should be there for entry in
these new markets, taking care of finance needs of the investment required in
procurement of assets and other expenses and the recruitment and training of
people by Human Resource department.