The document proposes an online grocery marketplace called Mygrocerylist.com that connects customers to local neighborhood grocery stores. It allows customers to shop for groceries online through their local stores. The platform gives neighborhood grocery stores (kirana stores) a technology solution to list their inventory, prices, discounts and payment options to attract younger customers. Customers can create shopping lists, view store locations and ratings, track purchase history and expenses. The proposal discusses targeting customers in Pune initially and then expanding to other cities. It also proposes developing a mobile app in the future.

2.  When the big supermarket chains rolled in, most people thought
that would be the end of the mom-and-pop stores in India. But
don't 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.

3.  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.

4.  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.

5. Advertisements

6.  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.

7.  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.

8. Sr. Department In source / Out # of staff
No. source
1 Management In Source 3
2 HR and Training In Source 2-3
3 Technology Out Source Fixed cost / time and
effort basis
4 Finance and In Source 1
Accounting
5 Marketing In Source 2-3
6 Service/Call Centre In Source 2-3
7 Legal In Source 1
8 Office boy/House In Source 1
keeping

9. Year Service Expense Profit Against
Revenue in Investment
Lacs
1 20 30 Negative
2 25 32 Negative
3 35 35 Nil
4 40 35 5
5 50 35 15
We may need to remove this and show financial
planning and Capital budgeting in Excel spread
sheet.

10. We may need to remove this and show financial
planning 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%

11.  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.

12.  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.

13.  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.

14. Mohammed Azam
Kapil Kaushal
Abhijeet Chandak