Methodology

The process above shows the steps of how we proceeded into our research for the project. We will explain each segment for the methodology above, how we went about it, the output obtained and the conclusions drawn from it in detail now.

Secondary AnalysisData Analysis and Environment ScanGrocery shopping forms an elemental part of Indian households where it is typically a monthly ritual. The phenomena is strong throughout the nation in urban as well as rural areas. The key features of this exercise seen in all sections of the society as listed:

- Bulk basket purchases - Shopping carried out during the beginning of every month- Repetitive behaviour exhibited in store selections (kiranas or modern retail stores) - Planned grocery list- Fixed budgets

The urban cities however have come a long way in their media of grocery shopping. Dominated initially by local kirana stores, modern retail hit the metros of India in during the millennium year and soon trickled down to some smaller towns. But despite the general acceptance of the MT channel its penetration has been very poor as can be seen. India stands last when compared to its counterparts in the subcontinent. Reasons attributed to this dismal performance are:- No credit facility- Proximity to households- Delivery issues- Perceived as expensive-Limited product portfolio

Overcoming the deterrents this channel is here to stay as urbanization climbs uphill and government policies attract investments in this sector. It goes to show that Indian are open to considering new channels.

Lately the growing younger, technological advanced, time starved and convenience seeking population has paved the path for a new channel for grocery shopping: E-tail. The online market in India is booming and e-tail constitutes a major part of this as seen below.

The other segments in this being travel industry, banking and classifieds which have managed the space well leading to most of their revenues coming from this sector. What it goes to prove is that doing things online is the new way to go.

Secondary Analysis

Identification of factors Primary Analysis Indepth Study Recommendation

The target is typically the younger, technologically advanced populations.

Also with greater awareness the average time spent by an individual in the e-tail sphere is up to 3 hours, 55% of which is accessed by mobile phones. Online grocery though well established in the western markets is at its nascent stage in India but is well received with traffic growing steadily over months.

Online Grocery Site Rank Online Grocery Site Rank Online Grocery Site RankBigbasket 355 Zopnow 1647 Citykirana 51375LocalBanya 1570 Onekirana 23826 Grofers 1120

Owning to the lucrative proposition even the big players like Amazon and Flipkart have joined the frenzy with their grocery sections which are operative during the first few days of every month as the key features listed above hold ground in this channel as well. The environment scan included extensive experimenting with the existing portals functioning in India to understand their patterns. Based on this we have been able to define the online grocery model which functions differently compared to the online marketplace models. The differences are explained below:

Online Grocery (eg. Bigbasket) Online Marketplace (eg. Amazon)

Construct Dedicated City based business model National Store with courier fulfillment

Inventory Holding Self owned, ~14 days Retailer does not own inventory, sellers manage their own

Product Assortment Basic Wide

Shopper Purchase Frequency

Regular: Monthly/fortnightly Frequent browsing for a variety of product types

Type of Trip Stock-up/Basket buy Browsing

Delivery Time 2 days maximum ~ 14 days

Research Limited High

Key Reason Convenience AssortmentOverall we were able to find certain features across all the e-grocery portals which are listed below:

1. City Specific Portals: The evolved sites direct consumers to offerings according to their city. Though the reason for this is the city specific inventory model, it enables them to give consumers quick delivery and city specific offers.

2. Free Home Delivery: This feature carries on from most of e-tail counterparts albeit above a certain basket cost. What is different however, the delivery time which is much shorter (~1day) owning to the nature of goods.

3. Easy Login: Not letting registration be a hassle, consumers can login from popular portals (facebook, google) allowing the customer to access personal information.

4. Basket Deals: Promotions here are of the nature of basket deals rather than discounts, single product/range features pushing consumers to purchase more.

5. Delivery Slots: Understanding that consumers are time starved and need to accept orders in persons, portals allow consumers to choose convenient delivery slots.

6. Saved Shopping Lists: Grocery being a repetitive, planned purchase where items remain constant (more or less) over time, allowing consumer to save their previous lists is an added benefit which saves time.

Identification of Factors: The list of triggers and barriers that work in a consumers mind while doing grocery shopping online are given as:

Drivers BarriersTime - -Consumers have liberty to take their time and build their

Trust--Authenticity of the new e-stores

order whenever and where ever. -It saves them the time of going to a store, searching & comparing products and waiting in lines for payment

-Duplicate brand selling possible-Adulteration of food items is a major concern

Convenience --Comfort of your home-Home delivered-Delivery at convenient time-Different modes of payment

Perishables--Accustomed to buying offline-Freshness/quality check not possible-Handpicking best/ripest pieces not possible

Social Status --Shopping mode of new age advanced people -If she can do it so can I

Homemaker Image -Grocery shopping qualifies as one of the primary responsibilities of a housewife and doing it online challenges her position

Assortment --Wide variety -Premium to middle end goods-Fresh produce also available

Last Mile --Additional information required at last minute-Mode of payment-Failure of gateway-Elaborate registrations

Shopping & delivery-No restricted shopping hours-A lot of offers, deals and discounts available-Delivery slots as per convenience

Limited Delivery AreaPeople find store shopping “ an enjoyable and engaging experience”

Saves Fuel-Saves fuel even if the store is nearby-Don’t have to worry about parking the car

Family TimeGoing to a grocery store is a good family time for ladies, and they feel good when they touch the products then buy it. They are feel proud.Rates-The rates are perceived to be higher-The local seller gives discount, credit.-Cannot bargain

All the above factors fall under those defined by the Technology Acceptance Model I: Attitude, Ease of Use and Perceived Usefulness.

Primary ResearchTo understand the significance of the factors listed above surveys and in-depth interviews on online consumers were conducted. Further. To learn about the impact created when they played together, we employed Conjoint Analysis. Here 3 major groups of factors were identified namely: Trust, Convenience and Add-on features. Playing with them, 6 unique combinations were created, stories were spin around them and user opinions were noted. For eg. The story of a customer which is strong in the first two features but weak on the third would be like: Orange.com is now an old and sought after online grocery store. Their superior customer support and authentic products have made them a favourite. They go the extra mile for their customers enabling easy Facebook logins, cash on delivery and choice delivery slots the record breaking delivery time being 3 hours! However, the site is pretty primitive with no frills like save for later and compare. They also do not have a mobile app to allow user access from smart phones.

To enrich our data gathering and analysis we are still working on what other frameworks and methods can be used.

https://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/BBG-Retail.pdf

http://www.economist.com/news/business/21625799-modern-food-retailing-has-struggled-win-customers-indias-old-fashioned-merchants-long