Zepto
Zepto
Today we are going to discuss online grocery delivery business customer places an
order on app ,company receives the order the order delivery boy would collect
and deliver it on cx doorsteps.
But In every market ,in every sector ,sometimes is always untapped.
For example when there were multiple online grocery apps in the market
There was untapped want of people of their impatience .
Zepto took advantage of that and we introduced the notion of 10 min delivery
system. And established ist whole business with the help of our dark store model
and PPB formula picking packing bagging in 60 seconds. And rev the market with
this new concept
Dark stores are their mini warehouses where they stock their products and are
located within 2-3 kms radius of customers
.We are hyper focused on speed.
If Zepto is doing so good why are we talking about
But why re we talking about Blinkit today.
Before disusing about the current scenario and lets rewind a little bit and dis cuss
the pre covid scenario.
They set up their own warehouses in metro cities which gave them 3 super
powers
A Super inventory—As grofers is a technology business they have data from
which they know what products cx order and what products cx don’t usually
order hence they can stock up their best selling products
Stock able items- Keep only those items which can be stored for long.This resulted
in low storage cost.
Good margins – there were 2 reasons now there is no middle men involved so
margins are higher as compared to if they have a middle men
And keeping private label products which gave them higher margin.
The competition is market is so big and this market can be won by just pouring in
money into the market .
If u ask me the one company that has been very lucky and worked hard equally to
back investment always at the right time is Blinkit.
As a goal, thus if we have to acquire larger market share we have to match the
rate of scale of Blinkit.
How would we do it ????
Proper hiring :
Experienced folks vs college hires. (Referrals play a lot here).
You do not want to hire someone and train them for 6 months after which they
are only being productive.
SOP efficient:
Business & engineering processes should be minimal and efficient like
1) Expanding to new cities should be easily configurable in our tech systems
with minimal/ ideally no code changes (except new features).
2) if we are onboarding a new kiryana store, we should have minimal
onboarding process for store owners requiring bare minimal steps enabling
us to scale better.
Extensible:
While designing products and coming up with processes, we should keep future
extension in mind with dimensions like scale, new use cases etc but we should do
this not sacrificing existing delivery at hand.
How to manage in resource crunch ?
1) Identifying key feature deliverable with maximum ROI.
2) Optimising the use of resources according to skill set and projects
requirement.
3) Making best use of time for SDEs so that they can focus on coding without
worrying about business and product.
I will rewind back a little bit lets see what we were discussing .
We are comparing Blinkit with zepto across various dimensions and trying to
gather improvement areas for us
We prev covered market economic scenarios now we are going to cover 2 more
scenarios dimensions and product:
Lets start with hyd as an example and o and discuss the business strategy
Customer demographics
In the interest of time I have used recent govt surveys but ideally we should rely
on similar product surveys for better reliability.
I would quote as Indian customers are the most pampered customers.They need
the best of prices with no additional costs this brings us to the famous topic of
discounts
We know that both Zepto and Blinkit offer good amount of discounts and there is
no clear winner sfor now. If u see their user interface as a product
U can clearly see the focus difference between
The first thing when u say is Blinkit app is D D D
On contract when u open z app the first thing u see is 10 min delivery.
I as a customer can tolerate 20 min delivery but I will prefer a provider who gives
me additional 10 discount with free delivery.
Blinkit is one of the largest company targeting this huge marketplace which we
have not yet explored .Penetrating this market later would be difficult because
Blinkit had already gained customer trust by that time and customer behaviour
would have been set by using blinkiyt for so long
Replacement ia very critical factor I as indian customer have guest at home and
want something very urgently without caring about refunds or anything
3)
Greek yogurt brand Epigamia and Zoomcar team up a channel to reach
Millennials through comedy web series "What The Folks!"
Nikhil, the main character is a big fan of Epigamia Greek Yogurt and
introduces it to the rest of the family.
The brand and its key values were tastefully integrated in every episode of
the series
increase in brand search traffic, website traffic, app downloads, increase in time spent on app,
how much time your users are spending in your app per individual session.
Acquisitions represent the number of users who download and install your app
from a certain location, paid campaigns or in-app referrals. This metric is
especially important to track when you run campaigns through paid partners like
Facebook to promote app downloads.
Retention is measured as the percentage of users who return to your app
Analyzing retention allows you to determine what’s working and what isn’t in
your app over time as updates occur. If you released a new version, one of the
first things you should identify is whether or not your retention has changed.
So, we have lots of challenges we discussed above, which we want to solve for. I
would discuss a generic approach we need to follow for overcoming each of these
challenges.
Accept the problem. This is a principal which applies to individuals & Businesses
equally, that unless we accept a problem, we cannot improve ourselves. Many
companies (or individuals for that matter) are blind sided to their short comings
just like the case of Nokia, it did not change with market demand of Smart Phones
and in no time they were out of the market. I guess case studies like these is the
first step in accepting our short cm=omings.
Having a data driven approach based on key customer metrics is the key to
identify the root cause. Why is this important because it will help us track if our
solutions are helping is if we track them against these metrics.
We have already discussed some of the solutions before and we are consolidating
them here in this slide.
For priority, I wanted to identify it using two dimensions, critical and low hanging.
Critical are those which are must haves for us. Low Hanings are the ones with
maximum ROI with minimal effort and can be easily implemented.