NMO S5 Final | BUSINESS CASE SCENARIO - 15
Submission BCS
Daily Needs Delivery LLP: Tackling Sales and Marketing Challenges for Sustainable Growth
Submission Date & Time: 2023-12-03 10:29:28
Event Name: NMO Season 5 Final
Solution Submitted By: Sounak Bandyopadhyay
Assignment Taken
Daily Needs Delivery LLP: Sales and Marketing: Identifying problems related to sales and marketing, providing solutions, and preparing the marketing plan for the next financial year.Case Understanding
Founded by Sam Malhotra and Rajish Gupta in 2020, Daily Needs Delivery LLP (DND) set out to transform daily needs delivery with an app. In some of the most densely populated cities like Bengaluru, Delhi, and Hyderabad, DND quickly became prevalent as it offered an easily accessible option for ordering daily household necessities. While the celebrations marked the organization's one-year anniversary, there were interferences from time to time in the sales and marketing department. A closer look at this scenario reveals some challenges that hinder the smooth operation of this most crucial element of DND's business. To begin with, the ongoing issue of delivery shortfall sets off discord, affecting customers’ faith and ultimately negatively affecting the overall customer experience. Not only is customer retention put at risk, but it also incurs significant financial loss since failed deliveries translate into a loss of revenue. Furthermore, customer complaints relating to the quality of a product, such as foul smells and poor taste, make the situation more complicated. The reduction in customer satisfaction and the shame of the brand image caused by these issues can lead to negative customer feedback and loss of customer loyalty. Lastly, a lack of confidence or willingness to commence services in less dense areas develops to become a major problem in operations. It also makes it possible for the competition to exploit under-served markets, which pose a danger to DND's market share. Finally, perishable products and their daily loss amounting to 0.2% of the sourced inventory quantity result in more financial losses. Efficient inventory management and delivery logistics are critical to counter this continuous challenge and lessen losses incurred due to wastage. The essence of business case scenario analysis is to underscore the necessity for implementing strategic interventions within the sales and marketing function. These include improving delivery processes, bettering product quality, widening service coverage, and strengthening customers' attachments.BCS Solution Summary
Sales and marketing problems are addressed through a multi-pronged Daily Needs Delivery strategy. This includes real-time tracking that updates deliveries in real-time to enhance operational efficiency and route planning. Total Quality Management involves strict tests for quality in different phases of a supply chain. This leads to permanent consumer satisfaction and prevents the problem of quality. According to strategic planning principles, DND will expand in phases into non-dense areas as it shows its resolve for sustainability. In this case, the model initiates service provision based on strategic measures, effectively utilizing resources, and a systematic growth model. In addition, DND will concentrate on supply chain optimization and loss control through good inventory management practices, especially for perishable products. This lowers financial impact and goes hand in hand with sustainable and cost-effective principles. In conclusion, DND's overall strategy, which emphasizes the use of technology, quality, expansion, supply chain, and sustainability, ensures that the company remains competitive even in the future, thereby solidifying its position as a market leader.Solution
Proposed Solutions for Sales and Marketing Challenges
DND could provide strategic management-based solutions for the sales and marketing problems identified in the business scenario. All suggested strategies aim to improve customer satisfaction and operation efficiency and maintain strong market competition.
Leveraging Technology for Operational Efficiency
To solve the problems related to missing deliveries, DND may use an electronic tracking system that will be built into their app. This solves the management principle that uses technology to enhance productivity. A real-time tracking system demonstrates the principle of management by technology. The principle of technological leadership stresses that technology should be utilized to simplify systems and improve the entire process. According to Gellweiler & Krishnamurthi (2022), this system gives customers accurate information about the status and position of their delivery and, in doing so, builds customer confidence and transparency and also enables effective route planning for delivery partners, thereby reducing chances of missed deliveries.
The real-time tracking system is evidence of the use of technology by DND for enhanced operation. Hence, this will involve incorporating a complex tracking system into what is already there. Therefore, DND changes its operational landscape by responding to the challenge of non-receipt of deliveries. This solution is based on the strategic principle of using technology as a tool and a driver of increased performance.
Total Quality Management of Product Quality
DND should establish a strict quality control system to deal with customer complaints about bad taste and foul smells. This aligns with the management concept of Total Quality Management (TQM), proposed for its regular quality control, which conforms with TQM principles. DND will adopt a holistic approach to the maintenance and improvement of product quality, which will involve the addition of quality checks at different stages in the handling of products. DND must conduct routine quality checks throughout the supply chain, starting from sourcing to delivery, to provide customers with genuine quality products. Chen et al. (2020) argue that it will also address existing quality issues and form a forward-looking position of ensuring and improving product quality for sustained customer satisfaction.
DND's determination to TQM can be portrayed in installing a strict quality control system. This entails putting a very extensive system of audits at every point in the chain (Chen et al., 2020). In all these dimensions, quality is an uncompromisable factor. This fits perfectly with TQM, where quality is not a departmental issue but an all-organization effort.
Strategic Planning for Expansion
DND would need a strategic policy on expansion to cope with the challenges of providing unstarted services in non-dense places. This corresponds to the management philosophy of strategic planning. According to Kabeyi (2019), in the strategic planning principle for the phased rollout plan in non-dense service areas, DND will expand using the priority criteria, providing a proper process system. DND can, therefore, develop a phased rollout plan by prioritizing services focusing on potential demand and operational feasibility. Additionally, the plan must be communicated transparently to customers in non-dense areas to set the expectation of service initiation and demonstrate commitment to its commencement (Kabeyi, 2019). In this direction, resources are used while considering the need to grow and be fiscally responsible.
Strategic planning is exemplified through the phasing out strategy with regard to non-densely located services. Unlike the one-size-fits-all approach, DND will focus on service initiation depending on anticipated demand versus the feasibility of operational performance. The latter is an approach that assumes the diversity of markets and a systemic expansion process. DND expansion will be guided by strategic criteria, which is evidence of sustainable development.
Supply Chain Optimization for Perishable Products
The DND should introduce effective inventory management toto reduce the losses the company suffers due to the perishable nature of the products. This matches the management principle of supply chain optimization. Inventory optimization conforms to the principle of supply chain optimization. As Mirabelli and Solina (2022) explain, this will involve the effective management of resources and processes in the supply chain leading to cost-effectiveness and minimum waste. DND will ensure that it closely monitors product shelf life, demand patterns, and delivery schedules to allow the organization to optimize stock levels and minimize unnecessary loss. In addition, examining strategic alliances with regional providers for real-time purchasing can also diminish inventory holding charges (Lejarza & Baldea, 2022). The solution goes beyond the cost implications and fosters sustainability through reduced food wastage.
Supply chain optimization also involves optimizing inventory management. This is evidenced by DND's commitment to efficiently managing resources and processes within the supply chain. It includes tracking shelf life and predicting future demand trends to develop innovative strategies toward just-in-time sourcing of products. This will help DND reduce useless expenses, making it economical and sustainable.
In conclusion, Daily Needs Delivery LLP faces various issues in its sales and marketing area, such as operations, customer satisfaction, and market position. To combat these difficulties, DND needs a broad-based solution firmly grounded in strategic management concepts. The initial strategy will involve using technology to have a real-time tracking system that addresses the ongoing problem of missing/lost deliveries. DND needs to adapt this technological solution to build customer trust, enhance reliability, and foster continued operations refinement. The second part of the proposed solutions centers on applying TQM principles to guarantee product quality. DND's commitment to the quality issue is manifested by rigorous checks at different supply chain stages. The checks are aimed at tackling current quality challenges and adopting a forward-looking strategy towards perpetual customer delight. DND must put strategic planning at the forefront as it tackles the obstacle of introducing services in non-dense areas. DND can undertake its rollout plan in phases based on strategic criteria through which it considers both potential demand and operational feasibility while showing commitment to sustainable growth. Finally, DND seeks to curtail losses associated with incurred perishables through effective supply chain management and inventory control. This method aims to create a cost-effective and sustainable supply chain optimization approach. These strategic interventions set DND up for long-term success and operational excellence within the cutthroat daily needs delivery market.
Marketing Plan For the Next Financial Year
DND must create a comprehensive marketing plan for the new fiscal year to navigate the changing environment, exploit emerging opportunities, and address current obstacles. This strategic plan highlights major marketing objectives and initiatives in different marketing aspects with DND's overall corporate plans.
Customer Education and Product Quality
DND is a company that sincerely strives to enhance the sense of belonging and satisfaction among its customers. DND must recognize informed consumers' importance in building permanent relationships with brands. Therefore, it must roll out an educational campaign via various channels to reach as many people as possible. This will be based on how this information will be passed across important campaign points (Varadarajan, 2020). The conduits that will channel this education are the DND mobile application, social media platforms, and regular emails or letters. Engaging content on the DND mobile app, a direct connection with the user, will explore different aspects of quality assurance. Specifically, this will involve analyzing how the products are sourced, the strict quality control processes undertaken, and how integrity and freshness are maintained along the supply chain (Zhong and Moon, 2020). The DND app will use interactive abilities that help the customers know the intricate processes that ensure top-notch quality of their daily supplies.
At the same time, DND will use the vast social media network to increase its educational message. The brand will share strategic posts, engaging visuals, and informational videos on social media outlets to demonstrate its pledge to offer nothing but the best products. These efforts are aimed at informed customers and will impact new customers and create a positive image of the company. Newsletters will also be another important part of this educational campaign, offering a more individual and direct type of communication. Subscribers' understanding of the thorough procedures behind DND's product quality will be enhanced through periodic updates comprising articles and success stories. This multidimensional educational campaign is expected to transcend mere information provision. It will aim to develop a deep association between DND and the customers on the principle that DND is not just a seller but a reliable guardian of quality, honesty, and trust. These combined efforts will enable DND to ensure confidence in their products and develop a credible and reliable brand that speaks to their loyal customers.
Social Media Engagement
Social media has become the defining feature in an era where virtually all interactions are conducted digitally (Shawky et al., 2019). As such, DND's strategy for expansion includes bolstering its social media presence as a critical means of fostering interaction and building strong brand awareness. Given the landscape change in online platforms, DND will employ a sophisticated approach to engaging its audience regularly with the most relevant content. This social media strategy’s core is centered on delivering intriguing and insightful posts across several channels (Shawky et al., 2019). DND plans to use its social media space to display various products. Posts will be regular and cover the variety of the day-to-day goods offered on the platform and promotions, ensuring consumers know the items they can buy at lower costs. Going beyond promotional materials, DND aspires to deliver interesting stories about everyday necessities. This means that companies should provide relevant content and mix it with something entertaining in their audience's everyday lives (Santini et al., 2020). DND aims to be a reliable source of information as it contains information related to dietary nutrition per day, recipe videos, and house managing tips, among others.
Importantly, DND will forge partnerships with influencers in the daily needs and delivery industry. DND could exponentially multiply its reach by partnering with those who carry weight in this space. According to Myers et al. (2022), these influencers who have already established credibility and followers will create a buzz about the brand in a natural way. This collaboration approach allows DND to access different communities and creates a loyal following for their brand. The reason for such a social media engagement strategy is not only to get many followers but also to create an active online community. DND sees its social media channels as going beyond being promotional platforms but as vibrant places for interaction and exchanges and to relate to a brand that meets their daily requirements. Through this digital journey, DND stands to enhance its online presence and design a virtual domain that epitomizes the essence of its pledge to efficient and high-quality everyday commodities.
Promotional Campaigns in Low-Density Areas
DND plans to start offering delivery services for Daily Needs in the non-dense regions while promoting its products and ensuring it establishes its stronghold in these emerging markets. DND's approach is based on introducing incentives, discounts, and offers specifically targeted at areas of low population density. DND will not only venture into non-dense areat to spread its footprints but also to produce appealing and customized offerthat match the peculiaritiesent in these markets. The promotional campaigns will be custom-made and addressed to the specificities of non-dense areas, with consideration that they cover the different needs and tastes of the residents (Zwerin et al., 2020).
According to Zwerin et al. (2020), the strategy will also provide regional-specific incentives targeting attention, interest levels, and potential customers in these regions. Such incentives may include discounts at the local level or special offers on goods that correspond with the residents' daily needs and preferences. DND will offer special incentives to get initial attention and build lasting customer relationships by recognizing their value. Further, DND will also move beyond mere product offers by mining non-dense areas from the perspective of their demographics and psychographics. Knowing the demographics of people in these regions will help prepare promotions that are suitable for them (Bengtsson and Edlom, 2021). In essence, DND will endeavor to establish a personal relationship with the community by offering discounts on locally preferred products and promotions tailored to specific cultural and lifestyle aspects.
Another important aspect of DNDs’ promotional strategy is its focus on exclusivity. DND will seek to make its customers feel loved and valued by providing special offers to people who live outside the densely populated areas. DND will be different from its competitors because this approach will distinguish them, communicate their priorities, and meet the specific needs for these markets. DND's promotional strategy for non-dense areas is a well-thought-out idea of customization, localization, and exclusivity. DND will attempt to go beyond adoption by ensuring that the company's offerings align with the specific needs and demographics within the non-dense areas, to become a part of the daily existence of those residing in those areas.
Local Influencer Collaborations
Working with local influencers can drastically enhance DND's brand visibility and trustworthiness. Ye et al. (2020) argue that finding influencers with a local following in target cities can offer real-time endorsements for DND so that the audience can relate to it. The brand will utilize the influencer's outreach to express its key value offerings to a broad audience. DND will partner with locally popular influencers to boost the brand’s recognition and trust. This approach recognizes the significance of local personalities in forming opinions on their communities. In order to do so, however, DND will identify various influencers with a large fan base in particular cities. Authenticity comes from local influencers who deeply connect with their communities (Ye et al., 2020). The honest endorsements by these individuals could bring DND closer to customers and make the brand more relatable to a local audience. This collaborative effort is not merely about exploiting influencers’ networks but also about exploiting the bond forged by influencers with their followers.
These collaborations will help DND to express its brand value proposition. Being trusted individuals within their neighborhoods makes influencers great mediums through which DND's dedication to providing quality, convenience, and customer satisfaction is communicated. The goal is to use the influencer's platform to depict how DND fits into the way of life and taste of local community members. The strategy is multi-dimensional and involves not only broadening the brand’s range by the influencer’s audience but also penetrating a broad customer base (Ye et al., 2020). This will be a mutually beneficial relationship wherein influencers enjoy credibility for associated products/services, and DND reaches an engaged and diversified audience. Eventually, DND’s partnership with local influencers will eventually help weave the company's brand into the fabric of local communities, thus using influencers as cultural bridges to connect with the audience on a more emotional level.
Feedback System Enhancement
DND understands that feedback from customers is critical in the process of improving and offering better services. The purpose of doing this is to enhance the usability of the feedback system that is present within the app. DND will work to make it easier and to have more customers give opinions so that a more broad and complete view of their experiences is achieved. This improvement will simplify the feedback process so users can easily give their opinions and ideas. This will show the DND's dedication to continuous improvement by committing to regularly analyzing customer feedback. However, analyzing feedback systematically is beneficial as it deals with current issues and highlights wider trends/areas for improvement (Yin et al., 2019). Due to this data-driven approach, DND can proactively identify emerging trends leading to a responsive and agile service framework (Yin et al., 2019). In essence, enhancing the customer feedback system is more than just handling the issues case by case; it creates a solid feedback mechanism that will help develop an ongoing improvement culture within the DND. The strategy allows the company to listen to customer needs, adjust to changing tastes, and operate with a customer-focused orientation.
In conclusion, DND's marketing plan for the next fiscal year is an all-inclusive strategy to enhance market share, boost customer engagement, and grow. DND seeks to develop an effective marketing strategy consistent with its vision of the future by educating customers, increasing social media engagement, targeting campaigns for non-dense areas, partnering with local influencers, and improving feedback. The plan will keep DND in the competitive daily needs delivery sector for sustained and future success.
Budget for the Next Financial Year
Budget Components |
Allocated Budget In INR |
Customer Education and Product Quality |
|
Educational Campaign (App, Social Media, Newsletters) |
2,500,000 |
Content Creation |
1,000,000 |
Newsletter Production and Distribution |
500,000 |
Total |
4,000,000 |
Social Media Engagement |
|
Social Media Content Creation and Management |
2,000,000 |
Influencer Collaborations |
3,500,000 |
Sponsored Posts and Ads |
1,500,000 |
Total |
7,000,000 |
Promotional Campaigns in Low-Density Areas |
|
Customized Offers and Discounts |
3,000,000 |
Regional-Specific Incentives |
2,000,000 |
Demographic Analysis and Campaign Tailoring |
1,500,000 |
Total |
6,500,000 |
Local Influencer Collaborations |
|
Identification and Collaboration |
2,500,000 |
Content Creation and Partnership |
2,000,000 |
Sponsored Events and Campaigns |
1,000,000 |
Total |
5,500,000 |
Feedback System Enhancement |
|
Technology Enhancement for Feedback System |
1,500,000 |
Data Analysis Tools and Software |
1,000,000 |
Continuous Improvement Initiatives |
1,000,000 |
Total |
3,500,000 |
Grand Total Marketing Budget |
26,500,000 |
Table 1
The budget for the financial next year of Daily Needs Delivery LLP in the Sales and Marketing Department was carefully planned according to the presented plans and goals. Table 1 below illustrates disaggregation of the budget. The budget recognizes the requirements of comprehensive marketing across multiple channels, involvement of influencers, and purposeful promotion including periodic improvement via customer feedback. This is about establishing a reputable brand image in the market, penetrating low density parts of the country, and engaging customers for life. Also, this budget provides flexibility to adapt to new trends and changing market conditions to enable Daily Needs Delivery LLP remain competitive and achieve the marketing objectives of the next financial year.
References
Bengtsson, L., & Edlom, J. (2021). Mapping transmedia marketing in the music industry: a methodology. Media and Communication, 9(3), 164-174.
Chen, R., Lee, Y. D., & Wang, C. H. (2020). Total quality management and sustainable competitive advantage: serial mediation of transformational leadership and executive ability. Total Quality Management & Business Excellence, 31(5-6), 451-468
Gellweiler, C., & Krishnamurthi, L. (2022). IT business value and competitive advantage: Integrating a customer-based view. Information Systems Management, 39(4), 363-385.
Kabeyi, M. (2019). Organizational strategic planning, implementation, and evaluation with analysis of challenges and benefits. International Journal of Applied Research and Studies, 5(6), 27-32.
Lejarza, F., & Baldea, M. (2022). An efficient optimization framework for tracking multiple quality attributes in supply chains of perishable products. European Journal of Operational Research, 297(3), 890-903
Mirabelli, G., & Solina, V. (2022). Optimization strategies for managing perishable supply chains: A literature review. Journal of Industrial Engineering and Management (JIEM), 15(1), 58-91.
Myers, S., Sen, S., Syrdal, H., & Woodroof, P. (2022). The impact of Persuasion knowledge cues on social media engagement: A look at pet influencer marketing. Journal of Marketing Theory and Practice, 1-18.
National Managemet Olympiad, (2023). NMO S5 FINAL I BUSINESS CASE SCENARIO – 15.
Santini, F., Ladeira, W. J., Pinto, D. C., Herter, M. M., Sampaio, C. H., & Babin, B. J. (2020). Customer engagement in social media: a framework and meta-analysis. Journal of the Academy of Marketing Science, 48, 1211-1228.
Shawky, S., Kubacki, K., Dietrich, T., & Weaven, S. (2019). Using social media to create engagement: A social marketing review. Journal of Social Marketing, 9(2), 204-224.
Varadarajan, R. (2020). Customer information resources advantage, marketing strategy, and business performance: A market resources based view. Industrial Marketing Management, 89, 89-97.
Ye, G., Hudders, L., De Jans, S., & De Veirman, M. (2021). The value of influencer marketing for business: A bibliometric analysis and managerial implications. Journal of Advertising, 50(2), 160-178.
Ye, G., Hudders, L., De Jans, S., & De Veirman, M. (2021). The value of influencer marketing for business: A bibliometric analysis and managerial implications. Journal of Advertising, 50(2), 160-178.
Yin, C., Ding, S., & Wang, J. (2019). Mobile marketing recommendation method based on user location feedback. Human-centric computing and information sciences, 9(1), 1-17.
Zhong, Y., & Moon, H. C. (2020). What drives customer satisfaction, loyalty, and happiness in fast-food restaurants in China? Perceived price, service quality, food quality, physical environment quality, and the moderating role of gender. Foods, 9(4), 460.
Zwerin, A., Clarke, T. B., & Clarke III, I. (2020). Traditional and emerging integrated marketing communication touchpoints used in Effie award-winning promotional campaigns. Journal of Promotion Management, 26(2), 163-185.
Conclusion
Daily Needs Delivery (DND) faces various challenges in its sales and marketing area, such as operations, customer satisfaction, and market position. To address these challenges, a comprehensive marketing plan is proposed for the next financial year. This plan includes strategies for customer education, social media engagement, promotional campaigns in low-density areas, local influencer collaborations, and feedback system enhancement. These strategies are designed to improve DND's market share, boost customer engagement, and ensure sustainable growth. Customer Education: DND will launch an educational campaign to inform customers about its commitment to quality and sustainability. This campaign will be conducted through various channels, including the DND mobile app, social media platforms, and email newsletters. Social Media Engagement: DND will strengthen its social media presence to engage with customers and build brand awareness. This will involve creating engaging and informative content, partnering with influencers, and running targeted promotions. Promotional Campaigns in Low-Density Areas: DND will introduce customized promotional campaigns to expand its reach into low-density areas. These campaigns will offer incentives and discounts tailored to the specific needs and preferences of residents in these areas. Local Influencer Collaborations: DND will partner with local influencers to boost brand visibility and trustworthiness. These influencers will provide honest endorsements of DND's products and services to their followers. Feedback System Enhancement: DND will enhance its feedback system to make it easier for customers to provide feedback. This feedback will be used to identify areas for improvement and ensure that DND is meeting the needs of its customers. Overall, DND's marketing plan is designed to address the company's challenges and ensure its long-term success. By implementing these strategies, DND can improve its market share, boost customer engagement, and grow its business.Comments
Article Type: Business Case Scenario, Case Study Solution Submission
Business Case Detail
Title: NMO S5 Final | BUSINESS CASE SCENARIO - 15
Type: Case Study
Stream: Management
Participant
Research Scholar, Indian Institute of Management Shillong
Team Strategic Achievers - NMO S5 Final
Total Team Points: 121000
Team Agile Strategists - NMO S5 Final
Total Team Points: 126500