cases in indian management · have included two cases – case 5 ‘long live ‘the old monk’...

Cases in IndianManagement

(Volume V)

Dr. Bal ChansarkarM.Sc., M.A., Ph.D., FRSS, MMRS.

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First Edition : 2019

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Preface

This volume V of ‘Cases in Indian Management’ like previous volumes, continues to includecases contributed by students. There was considerable interest and response from the students. Ihave included two cases – Case 5 ‘Long Live ‘The Old Monk’ and Case 8 ‘Kansai Nerolac PaintsLimited- Painters Ki Khoj’. Also, included is an example of teaching a functional area – Marketing –using a case study approach.

Volume V has 10 cases:

Case 1: The Dubbawallas of Mumbai – End to End Collaborative Supply Network.

A. Rangnekar

Case 2: Managing ‘A Development Organisation’.

B. Chansarkar

Case 3: Aditya Birla Nuvo Grasim – Case Study.

R. Aurora, A. Khaiwale and A. Negi

Case 4: Bujurg Sewa Mandal – A Need For?

K. Mistry

Case 5: Long Live ‘The Old Monk’.

S. Revankar.

Case 6: Fusion for Confusion – Launching of Domino’s Pizza Burger

S. Mishra.

Case 7: Amazon – Innovation for India.

A. Rangnekar.

Case 8: Kansai Nerolac Paints Limited – Painters Ki Khoj.

S. Kamble.

Case 9: On Launching ‘Ladies Fizzy Drink’

B.A. Chansarkar

Case 10: Teaching Marketing with Case Study Approach

A. Rangnekar

Like previous volumes, guide to questions is not included, as this encourages both the studentsand faculty to consider different aspects of management, creating discussions and the need ofadditional secondary information.

I gratefully acknowledge the co-operation of both the authors and the publisher HimalayaPublishing House Pvt. Ltd., for getting the volume published so promptly and efficiently.

I am confident the readers will find the cases in this volume beneficial and valuable in teachingand resolving management issues in the Indian context.

August 2018 Professor B.A. ChansarkarEditor

Mumbai and London

About Authors

Dr. R. Aurora has been teaching from the last 28 years. He has research and corporate trainingexperience of more than 15 years and has also headed various B-Schools in Mumbai for 10 years.Dr. Aurora has written nearly 15 research articles and presented papers in various forums. He hasbeen conferred order of merit by IMCI and Shiksha Bharati Puraskar All India Achiever’s Foundation.He has written four books on Management and two are being written. Email: [email protected]

Professor B. Chansarkar holds a M.Sc., M.A. and a Ph.D. He has been with Middlesex University,London since 1972. He was Director of Middlesex University Dubai Campus and Middlesex UniversityMauritius Campus. Prior to joining the University he was Senior Market Research Executive withWatney Mann Ltd., Brewers in London. Dr. Chansarkar has authored several books, and alsopublished extensively in International journals. He has lectured in Europe, Middle East, Far East andAmerica. His research interests include marketing, student assessment and multi-country productimage. Email: [email protected]

S. Kamble is an MBA (Marketing) from Vidyalankar School of Business and is certified in‘Consumer Analytics’ from University of Pennsylvania, USA. Email: [email protected]

A. Khaiwale completed PGPM in 2018 from IBS Mumbai. He is currently employed asRelationships Manager, Reliance Nippon Life Insurance Limited.

S. Mishra is Associate Professor (Marketing) at IMT, Ghaziabad, Uttar Pradesh. She is a strongproponent of andragogy as a prerequisite for developing educational leadership through efficientacademic delivery. Her research interests include consumer behaviour, retail marketing and ruralmarketing. She has contributed several research papers. Email: [email protected]

K. Mistry is a retired banking professional. She has been actively involved in social welfare andhelping retired citizens to enjoy their old age. She has helped in establishing similar organisations incities in India. Email: [email protected]

A. Negi completed PGPM in 2018 from IBS Mumbai. He is currently self-employed.

Dr. A. Rangnekar is an MBA (Marketing) and Ph.D. (Business Strategy) from NMIMS with25 years of pharmaceutical industry experience. He has been a visiting faculty at Mumbai’s leadingB-Schools for 15 years, having added value to over 10,000 MBA students across India and Europe. Hiswebsite www.dramitrangnekar.com and blog have crossed a million hits, and contain a repertoire ofinsightful notes and compelling case studies. His research interests revolve around marketing,branding and business strategy in pharmaceuticals, FMCG, automobiles, luxury, technology andservices. E-mail: [email protected]

S. Revankar is an MBA (Marketing) from Mumbai University. He has been felicitated by ModernEducation Society for being topper in Bachelor of Management Studies. His interests revolve aroundbrand positioning and rebranding strategies for different industries. Email:[email protected]

Contents

Case Number Title Page Numbers

1 The Dabbawallas of Mumbai – End to End Collaborative SupplyNetwork

1 – 9

2 Managing ‘A Development Organisation’ 10 – 14

3 Aditya Birla Nuvo Grasim – Case Study 15 – 24

4 Bujurg Sewa Mandal – A Need For? 25 – 30

5 Long Live ‘The Old Monk’ 31 – 36

6 Fusion for Confusion – Launching of Domino’s Pizza Burger 37 – 45

7 Amazon – Innovation for India 46 – 60

8 Kansai Nerolac Paints Ltd. – Painters Ki Khoj 61 – 73

9 On Launching ‘Ladies Fizzy Drink’ 74 – 81

10 Teaching Marketing with the Case Study Approach 82 – 105

Case Volumes 106 – 109

CCASE1THE DABBAWALLAS OF MUMBAI – END TOEND COLLABORATIVE SUPPLY NETWORK

A. Rangnekar

AbstractThe dabbawallas are a common sight in Mumbai during lunch hour, but how

do they manage to affordably deliver dabbas or lunch boxes, with 99.9967 per centaccuracy, without using any technology whatsoever? They use a passionate end toend collaborative supply chain network.

BackgroundIn 1890, Mahadu Bacche pioneered dabba delivery to cater to customers

working in Mumbai’s textile mills, stock market, merchant markets and docks. Thefirst clients of the dabbawallas were Parsis, a community which has contributed themost to Mumbai’s development. By the 1950s, the dabbawallas were wellestablished with 2500 dabbawallas delivering 100,000 dabbas daily to offices, mills,docks and traders in Mumbai. Today, 5,000 dabbawallas deliver close to 200,000tiffins daily, a number which has not grown since the late 1980s. Raghunath Medge,President of the Dabbawallas Association, is huddled in a meeting with his office-bearers, mulling on the growth strategies and the way forward for the dabbawallas.He pauses to think on the journey so far.

OperationsThe dabbawallas provide the service of picking up dabbas from homes,

delivering dabbas to the customer’s office, and returning empty dabbas back home.

Cases in Indian Management-Vol V2

The food as well as the outer and inner dabba cases are from the customer’s house.The dabbawallas charge ` 800-1,200 per month for this service or ` 35-40 perworking day, which is very affordable and deters competition. The same activity ifdone by a courier would cost at least ` 300-400 daily. Each customer keeps twosets of dabbas, one for today’s dabba which is freshly made at home and deliveredby the dabbawalla during lunch. The customer then returns yesterday’s dabbawhich he has washed and cleaned and kept in his office. The dabbawalla does nothave the time to wait for the customer to finish his meal and due to busy schedules,there is no guarantee the customer will start or finish his meal during lunch hours,hence two dabbas are used.

Figure 1: Supply Chain Frameworks

The end to end collaborative supply chain1 (Figure 1) differs from a normalsupply chain in many ways. The traditional supply chain transfers the raw materialfrom suppliers to manufacturers who process them and then distribute themthrough trade channels to the customer via the retailer (kirana). The organisedretail supply chain cuts down on the trade margins and delivers directly to thecustomers through physical chain stores (Big Bazaar). The online retail supplychain cuts down on the trade margins as well as the physical chain stores anddelivers directly to the customers based on online orders (Amazon). The servicessector provides services directly to the customer (banks) without any intermediary.A courier service picks up the consignment from the sender and delivers it to thecustomer (Blue Dart). The dabbawallas pick up dabbas from the sender (housewife),deliver it to the customer, pick up the tiffin from the customer, and deliver it backto the housewife, where different dabbawallas collaborate at every stage from end toend, to complete the loop.

Organised Retail

Pick-upPick-up

The Dabbawallas of Mumbai – End to End Collaborative Supply Network 3

Figure 2: End to End Collaborative Supply Chain

The Figure 2 illustrates the end to end collaborative supply chain used by thedabbawallas, where different dabbawallas use a baton relay system2 to deliverdabbas to customers. A dabbawalla D1 begins collecting dabbas from thecustomer’s house at around 8am and collects 40 dabbas which he brings to theorigin station by 9am. The dabbawalla’s colleagues also bring their 40 dabbas eachat the origin station, which are then sorted by their destination station. Till thisstage only the group dabbas are handled. As each group does not have themembers to cater to all destinations and areas, they collaborate with other groupswho specialise in different areas. A different dabbawalla D2 either from the same ordifferent group, now carries the dabba from the origin to the destination station bytrain. The dabbas are sorted at the destination station of their local area bydabbawalla D3 from a different group which specialises in delivery to that local area.Dabbawalla D4 delivers the dabba to the customer and carries back yesterday’sempty tiffin. The dabbawalla then has his own lunch with dabbawallas fromdifferent groups. D4 then delivers the empty tiffins to the destination station wherethey are sorted by dabbawalla D5 and routed on the return journey by train wherethey are carried by dabbawalla D6, who hands over the dabba to the original groupat the origin station. The dabbawalla D1 who picked up the filled dabba nowdelivers the empty dabba back home to the customer. So, each dabba is handled byminimum six dabbawallas, hence there are 12 lakh movements of dabbas in a dayalmost without any error, and without using any technology.

8:30-10:00 10:00-10:30 10:30-11:30 11:30-12:00

12:00-14:00

Pick-up

16:00-17:00 15:30-16:00 14:30-15:30 14:00-14:30


Hub and Spoke Model3

The key enablers of the dabbawallas success are illustrated in Figure 3.Mumbai’s 165-year old local train service, the cheapest, fastest and most reliablemode of transportation, carries 76 lakh passengers daily across 150 stations on thewestern, central and harbour lines. The 5,000 dabbawallas consist of multiplesmaller groups of 8-20 dabbawallas who ally with each other to deliver dabbasefficiently.

Figure 3: Key Enablers

Dabbas are collected from homes and segregated at multiple stations, butdelivered to office goers from few hubs or major stations. The smaller stations calledspokes are covered from the hubs on foot using haath gadi (handcart) or paati(overhead cart) or by cycle (Figure 4 Hub and Spoke Model). Each dabba weighsaround 1.5-2 kg when filled, so every dabbawalla carries 60-80 kgs, and 5,000dabbawallas carry 300,000 kilos or 300 tonnes of food every day. Over 80,000dabbas are sorted outside Churchgate station daily during lunch hour4.


Figure 4: Hub and Spoke Model

Each dabbawalla picks up 40 dabbas from households in the morning andbrings it to a hub station, say Vile Parle, where other dabbawallas from the samegroup also get their dabbas. All the dabbas are then sorted by their destinationstations and each dabbawalla carries 40 different dabbas to the destination station,say Churchgate. These dabbas are then sorted at the destination station by anotherset of dabbawallas by their local area, say Nariman Point and each dabbawalla isthen assigned an area within Nariman Point, say Air India Building, where thedabbas are finally delivered by a different set of dabbawallas. The customer returnsthe empty dabba to the dabbawalla, who collects 40 empty dabbas, on the returnjourney, to deliver the dabba to the customer’s home before 5pm. If two dabbas arehandled per customer per day, it results in 4 lakh transactions daily, 1 croremonthly, and 12 crore annually. That the dabbawallas with an average education of8th standard, make only one error in 1.6 crore transactions, without using anytechnology, is mind-boggling and a tribute to their passion and dedication. Theirerror rate is lower than the most technically and technologically advancedcompanies in the world. The dabbawallas have been conferred the prestigious SixSigma certification5, without ever applying for it!!

A Mukadam (supervisor) controls the seamless collection and delivery, andcoordinates deliveries with other groups. He fills in for a dabbawalla on leave, andknows the home and office address of each customer. The dabbawallas believe inequal pay for equal effort and total group earnings are equally shared between theMukadam and the dabbawallas. Each dabbawalla earns around ` 30,000 a monthand additionally gets one month pay as ‘Diwali’ bonus from grateful customers,


which is also shared. Each dabbawalla donates ` 30 per month to the DabbawallasTrust which makes him a part of the Dabbawallas Association. The unique thingabout the dabbawallas is that right from the president and general secretary of theassociation to the dabbawalla, every one delivers dabbas daily!

Figure 5: Area Coding

The Dabbawallas Coding System6

The dabbawallas use a coding system as shown in Figures 5 and 6. The shortforms used in the code are the same as used on electronic indicators on Mumbai’srailway stations. Hence, Vile Parle the origin station is coded as VLP, and E is thearea code for Hanuman Road within Vile Parle. The origin station and area coding isalphabetical only, while the destination station has alphanumeric coding (Figure 5Area Coding). The destination is Churchgate and 3 denotes the Nariman Point areawithin Churchgate. The code 9AI12 denotes that the dabba would be delivered bydabbawalla number 9 within the Churchgate team and AI means Air India buildingin Nariman Point and 12 means the 12th floor (Figure 6 Dabbawallas CodingSystem).


Figure 6: Dabbawallas Coding System

With just these bare details, two lakh dabbas are intuitively delivered tocustomers on time every time, using only human technology. The coding on thedabbas do not contain the pickup or delivery address nor the customer’s mobilenumber. Different dabbawallas pick up, sort, transport, deliver, pick up and returnthe dabba. The pickup person does not know the delivery address, and the deliveryperson does not know the pickup address, yet the dabbas are delivered correctly.Each group has a different colour coding system, and hence if multiple dabbas aredelivered to the same office by different groups, then the owner only has to identifyhis own dabba by the colour code, which is the key.

The Dabbawallas Association enforces a strict code of conduct and levyfinancial penalties on dabbawallas for not carrying identity card, not wearing whitecap, smoking on duty, availing leave without intimation, etc. What binds thedabbawallas together is they all are part of a proud heritage, most being second orthird generation dabbawallas. They are from five talukas within Pune district, areeither related or known to each other. Most are from the ‘Warkari’ sect, followsimilar traditions and customs, and are devotees of Lord Vithoba of Pandharpur.They work as a team, sharing and caring, and supporting each other. In 128 years,the dabbawallas have never ever gone on strike!

Opportunities and ChallengesThe dabbawallas have leveraged Mumbai’s efficient rail system and a simple

scalable business model for decades, which needs no technology, only humanpassion. Despite delivering a consistently reliable and affordable service, thebusiness of the dabbawallas is not growing. The key reasons are - the customer isnot keen on home-cooked food, availability of multiple eating out options on mobile


apps and around office areas, an aspirational shift to two-wheelers and four-wheelers from public transport. Also, with everyone in the family working, there isno time to prepare the morning dabba. The generation next of the dabbawallas isnot keen to join the profession, and the average age of the dabbawallas is over 50years!

However, opportunities for growing the dabbawallas service abound. There isgrowing health awareness among customers, leading to home-cooked tiffins. Thedabbawallas have targeted school tiffin delivery and cater to 22,000 school childrendaily. The dabbawallas can franchise or replicate this model in other cities, or getinto delivery of online food orders. Since the dabbawallas meet two lakh housewives,and two lakh office goers daily, their services can be used by FMCG companies tointroduce and sample their new products to four lakh customers. The dabbawallashave also tied up with different community kitchens to deliver dabbas to theworking migrant population in Mumbai, who have no access to home-cooked food.

EpilogueMr Raghunath Medge, President of the Dabbawallas Association, is optimistic

on the future and says, “Some clients may move away, but children will continue togo to school and people to offices. As long as people feel the desire for home-cookedfood, the dabbawallas would always deliver”.

References1. Dont tweak your supply chain - Rethink it end to end, Hau L Lee, Harvard

Business Review. October 2010.2. Dabbawalas of Mumbai

http://home.ac.im/~pmehta/scmqip07/Dabbawalas%20of%20Mumbai-.pptRetrieved 2 January 2017.

3. Mumbai’s models of service excellence, Stefan Thomke, Harvard Business Review,November 2012.

4. Interview Gangaram Talekar, Secretary, Dabbawallas Association, Mumbai, 18April 2013.

5. World-class logistics operations: The Case of Mumbai Dabbawallahs, N.Ravichandran, WP No 2005-09-01.

6. Interview Raghunath Medge, President, Dabbawallas Association, Mumbai, 16March 2017.


Questions1. Despite providing an efficient service at affordable rates, why are the dabbawallas

not growing?2. Can the dabbawallas use technology to deliver a better customer experience?

3. Should the dabbawallas tie up with online delivery agencies like Swiggy to deliverfood during work days and holidays?

4. Should the dabbawallas deliver online orders of online retailers like Amazon andFlipkart?

5. Design a social media campaign for the dabbawallas.

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