Business Adviser 1 Submission BCS

Advisory note on expansion of Daily Needs Delivery LLP Start-Up.

Submission Date & Time: 2020-03-22 11:35:11

Event Name:

Solution Submitted By: Ayan Dutta

Assignment Taken

Case Understanding

Company background:- a)Daily Needs Delivery LLP(DND) is an Indian daily need delivery start-up, it was founded in 2017. It uses an app-based ordering system where customers can order for their daily needs and subscribe for monthly deliveries, which helps them to get hassle free home deliveries. DND has its presence in three cities Bengaluru, Delhi and Hyderabad currently. b) Main Products:- DND has mainly three products :- i)Milk, ii)Paneer (cottage cheese), iii)Curd. c)Challenges:- • Consumers are not getting deliveries. • Ineffective distribution networks. • Non-report to duty in the morning and delivery gets affected. • Weak feedback system. • Complaints regarding foul smell and bad taste have been received. • Company does not know its target market and audience. • No after sale service in non-dense areas to its subscribers. • Subscribers are on the verge of uninstalling the app and claiming for refund. • Company is also making financial losses.

BCS Solution Summary

BCS Solution Summary:- • Quality checking of the product. • Preventive measures needs to be taken to address the issue of foul taste. • Market segmentations and list out the potential customers. • Training and orientations for delivery partners. • Performance based remuneration. • Awareness programs through different methods. • Ensure the feedback mechanism. • Partnering with new distributors, delivery partners, restaurants etc. for expansion purpose. • Recruit new delivery partners for existing and expansion for both purposes. • Special attractive offers and discounts. • Updated app with new features. • Analysis of market and consumer behavior. • CSR activities. • Extension of product line.

Solution

Business Development Plan:-

Before developing or expanding a business one must ensure that existing business should be sustaining its existing business part and it should not be hampered.

Therefore there are two major steps for expanding a business without hampering the existing ones. Two steps are : i)Sustainability and ii)Scalability.

i)Sustainability –

a) Quality Assurance and Control:-

  • Quality checking before the delivery of the product is mandatory.
  • While taking the products from the supplier it should be checked.
  • Use cooling boxes and wrap it with foil papers (for example paneer) to address the issue of foul smell and bad taste.
  • We should hire a quality control manager to check the quality standards of each product.

 

b) Marketing and operations part:-

  • Firm must decide their market segments and their target audience
  • Keep the current customers updated with sales promotions, give them general informations about the business,offers etc.
  • Provide training to the delivery partners.
  • Incentive based payments should be given.
  • Extension of product line from three to seven with butter milk, butter, cheese and creams to generate the profit.
  • Strict actions must be taken to address the problem of non-delivery of products and non-reporting of the duty like if the delivery boys don’t report to the duty in the morning then the salary will be deducted.
  • For consumer feedback make sure that every consumer get the official mail id to give any kind of feedback.
  • Analysis of consumers behaviour is another important part that should be taken care of. 
  • App must have the feature of tracking system of the delivery.
  • Must create awareness program to aware customers for the products.

 

ii)Scalability-

  • For starting the business in the non-dense areas we should recruit the local boys of the respective areas will reduce the cost.
  • Build a list of targeted potential customers and contact with them to convert them from potential customers to our subscribers. It will help in the existing areas as well.
  • Contact with local distributors to get the required products and contact with the delivery partners of that locality to deliver the product.
  • Partnership or deal must be done with restaurants as well.
  • Special coupons exclusively for the early bird customers.
  • Use social media to engage more subscribers for the business.
  • We can do CSR activities by giving the unsold products to orphanages. It will only help to advertise our company.

 

Management of principles that helped to derive the solutions :-

  • Division of Work:- In practice, employees are specialized in different areas and they have different skills. Different levels of expertise can be distinguished within the knowledge areas. It helps to manage the work within the group of employees for smoother function of management and to implement all the above mentioned solution.
  • Unity of Direction:- It is all about focus and unity. All employees deliver the same activities that can be linked to the same objectives. All activities must be carried out by one group that forms a team. These activities must be described in a plan of action.It will help to co-ordinate the whole work properly and deliver the product in time.
  • Remuneration:- Motivation and productivity are close to one another as far as the smooth running of an organization is concerned. The remuneration should be sufficient to keep employees motivated and productive. Incentive based payment solution derived from this principles.
  • Scaler chain:- Hierarchy presents itself in any given organization. This varies from senior management (executive board) to the lowest levels in the organization. This can be seen as a type of management structure .It will only help to address the problem of delivery on time and regular reporting at morning.
  • Stability of Tenure of Personnel:- Management strives to minimize    employee turnover and to have the right staff in the right place. Focus areas such as frequent change of position and sufficient development must be managed well.
  • Esprit de Corps:- This stands for striving for the involvement and unity of the employees. Managers are responsible for the development of morale in the workplace; individually and in the area of communication. Esprit de corps contributes to the development of the culture and creates an atmosphere of mutual trust and understanding. It will help to reach our desired goal of sustain and expansion.

Marketing Mix:- It will help us for the marketing purpose. The four P’s of marketing mix will help us to reach maximum clients. The four P’s of marketing mix are – i) Product, ii) Price, iii) Place and iv) Promotion.  

Conclusion
We have to develop constantly, adapt to even the smallest changes on the market. Keeping the business alive doesn’t have to be difficult and exhausting, as many people suppose. If you follow a certain pattern, it is easy and, above all, satisfying. Rather thinking about the results too much we should set our goals as a whole organizations and give our best to do the required process for achieving the desired goals. The proper business growth and expansion can be really easy if we implement our process right. Moreover, it will bring many benefits to our company and help us to prosper.
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