When the big supermarket chains rolled in, most people thought that would be the end of the mom-and-pop stores in India. But dont count the little guy out yet. They have become more aggressive about their delivery. While they are still popular with our Mom-and-pop generation, they are loosing ground @ younger generation.Idea Mygrocerylist.com/Merakirana.com We propose an online grocery bazaar with a local twist. It lets you shop for your groceries online but through your neighborhood kirana store. We aspire to give a technology edge to the Kirana business to attract this generation.
Each local Kirana Store gets to create its own shops by listing items, prices, discounts, delivery and payment options, etc. (We understand that Local Kirana shops are not tech savvy and hence we will have to help them doing that initially. Computer infrastructure needed for this can be made available @ a very economical cost of Rs. 3000 and monthly recurring expense of 300.) Each customer gets his/her own login which will maintain his history of lists, choices of his shops, history of his expenses, his location, address and other important details. A customer can also set and alarm, reminders and use or amend the previous list. This will also help them track the rates of each individual items over the period and will help them analyze expenses over the period.
Location of Kiraana shops on Maps, with the reviews and rating. This bazaar will categorize customer’s list on “Packaged and branded” items and “Loose and unbranded items”. For a customer, just like Super markets, everything will be available single roof. Offer discounts for customers to encourage usage.
Kirana/Grocery is a basic need of every house hold. Independent kirana stores control about 95 per cent of FMCG sales in India. However, their share has been dipping in recent years. According to a report by Hindustan UniLever, 20 to 25 per cent of trade in urban centres has moved to large format retail stores. Add to this the growing presence of online grocery retail and these stores are up for some real competition. 210 Kiraana sops in Pune are present on Sulekha.com. Our estimate is there are more than 1500 shops. Pune has sizable number of technology savvy population with easy access to computers and internet. Urban lifestyle, more time spent on road, lesser quality time for family demands such services.
Pune Pune Population Literacy Rate 61 lac 81% The population of Pune mentioned here is from PMC’s website; however we anticipate it be ~80 Lacs. We intend to start with Pune; however soon want to go to other cities once this concept has made foot hold in Pune.
Sr. Department In source / Out # of staffNo. source1 Management In Source 32 HR and Training In Source 2-33 Technology Out Source Fixed cost / time and effort basis4 Finance and In Source 1 Accounting5 Marketing In Source 2-36 Service/Call Centre In Source 2-37 Legal In Source 18 Office boy/House In Source 1 keeping
Year Service Expense Profit Against Revenue in Investment Lacs1 20 30 Negative2 25 32 Negative3 35 35 Nil4 40 35 55 50 35 15 We may need to remove this and show financial planning and Capital budgeting in Excel spread sheet.
We may need to remove this and show financialplanning and Capital budgeting in Excel spread Estimating Start-Up Capital Your Company, Inc. August 11, 2012 Monthly Cash Needed % of Expenses to Start Total Source of Estimate MONTHLY COSTS Salary of owner-manager 20,000 40,000 0.6% call center staff & support All other salaries and wages 500,000 1,500,000 23.8% staff Monthly rent for the call center 25,000 75,000 1.2% Initial budget would be Advertising 500,000 1,500,000 23.8% high Admin cost-telephone,elect 5,000 15,000 0.2% Transport 10,000 30,000 0.5% For employees Insurance 20,000 20,000 0.3% Considering the loan amnt Interest 5,000 15,000 0.2% of 5,00,000@1%/PM Maintenance 5,000 15,000 0.2% Legal and other professional fees 5,000 15,000 0.2% Lawyer/consulting fee Miscellaneous 2,500 7,500 0.1% Subtotal 3,232,500 51.3% ONE-TIME COSTS Portal development cost 3,000,000 47.6% Decorating and remodeling 1,000 0.0% Installation charges 500 0.0% Deposits with public utilities 10,000 0.2% MSEB deposit Legal and other professional fees 10,000 0.2%sheet. Licenses and permits 10,000 0.2% Advertising and promotion for opening 10,000 0.2% Cash in hand 25,000 0.4% Other 1,000 0.0% Subtotal 3,067,500 48.7% TOTAL ESTIMATED START-UP CAPITAL 6,300,000 100%
Segmentation – Identify population which has access to computer and internet and target them. Working women, men, youths. Place – Majorly web space, Viral tools like emails, links, Social networking sites. Also, pamphlets can be kept @ local kirana stores. Price – This is a free service for customers. Promotion – Discount coupons/Codes, Loyalty points, tie ups, etc.
Market risks - New concept and hence resistance from Customers and Grocery shops, existing online grocery shops, Super markets from cash rich corporate enterprises, New entrants to the market, slower than expected adoption. Operational risks - Complicated Portal, in apt space management on portal, up time of the portal, Performance of the portal, Poor Customer service, staffing risks Financial risks - Liabilities, poor contract negotiations with Vendors, customers and investors causing investor pull outs, poor accounting practices Managerial Risk - Unclear Vision, poor planning and improper executions We have considered these risks while Marketing, Portal and financial planning.
Other Cities – Once this concept has gathered foot hold in Pune, we intend to go to the other cities with the help of local experts in that city and launch it in cities across India. Smart Phones and Tablets – Almost parallel to this, we intend to launch an application which will be native to smart phones and tablets to enable customers to use this app on the Go. A B2C flavor . Shops and Customer database – This will help us gather data of customers wrt their choices of products, preferable time of buying grocery, buying habits, brand/product loyalty, pocket sizes, etc. This data can be very crucial to market analysis. We do not have expertise in market analysis; hence we can either sell this or can given an attempt to do analysis and sell the reports. The later approach sounds better wrt not giving away customer’s personal information. A B2B flavor . Consulting for shops – While the data pertaining to a particular shop will always be available to the shop; however we understand that not all the shop owners are tech Savvy and hence we can offer consulting them on stocking, delivery options, etc at a minimal price.