Conquestum

Round 2
Instructions:
Selected Teams should make presentations on the solution for the given case in this
document.

Teams should have maximum 8 slides in presentation (excluding Title slide, Table of
Content and References). Any other files (including spreadsheets) can also be sent.
The title slide should carry
1) Team Name
2) Details of the Team members (Name, Course, Email IDs, Phone nos.)
The naming convention to be used for presentations is
TeamName_CollegeNam.ppt/pptx.

The deadline for submission of the case solution is 05th January 2017, 11:59 PM
All the files shall be directly mailed to conquestum.ojas@spjimr.org or
pgp16.mukhar@spjimr.org, with subject Conquestum Case Study Submission

Case Study
You are CEO and founder of a food aggregator company- Spice and Spoon
based in Mumbai, which was founded in 2015. The company is operational in 5
major cities of India namely Delhi, Hyderabad, Pune, Bangalore and Mumbai.
The company was running absolutely fine until September 2016, after which
company started facing some issues, which primarily included loss of sales. It
was in December 2016 when you noticed that funds have been depleting
significantly. The total funding which you had was of Rs. 200cr of which Rs.
155cr had been burnt till Dec 2016. The break-up of expenses is provided in the
exhibit. In these 5 cities you have overall 1000 employees, the break-up of which
has been provided in exhibit. The average monthly salary of employees is Rs.
30000. The ratio of executives & technical to the field-executives is 1:4 in each
city.
The current food service market is estimated to be Rs. 10000cr, growing at 16%
YOY growth. Of this only 11% is being tapped by various players available in the
market. The existing players like Foodpanda, Swiggy, Zomato operating on
B2C model and Zesty and Miles operating on B2B model are also trying to tap
the maximum market share.

The figures given above are invented for the purpose of this case

The current business model includes collecting all the food orders via APP and
then orders are delivered by the field-executives. It is assumed that the system
has been optimized, so that as soon as the field-executive reaches the
restaurant, the order is ready to be collected. As soon as the order is delivered,
the field-executive becomes available again to be assigned to another order.
From the time an order is assigned to a field-executive, the average time taken
for the field-executive to complete the order is 30 minutes, i.e. a field-executive
can drive to the assigned restaurant, pick up the food, and deliver it to the
customer in 30 minutes.
The company earns a share of 10% of the total bill amount on each order. The
average amount of an order is Rs 400. The no. of orders in a city is in proportion
to the no. of workers in that city. Also the admin cost (fixed cost) is in proportion
to the current no. of workers in each city.
Devise a strategy with which you can compete with your competitor and turn
around your company by increasing your contribution and market share. With the
current rate of burning capital you have 10 months to revive your business.
Strategy can include both changes in current operations and changing the entire
business model. Explicitly mention points of differentiation with your competitors
and the expenditure of the remaining capital.
Note: Specifically mention all the assumptions taken for data and while calculation of finances.
Do mention the sources of your data.

Exhibit

Nature of expense

Cost

Delivery fee per order paid by

customer

Rs. 30

Delivery cost per order

Rs 50

Commission on each order

10%

Overhead expenses per order

Rs 30

Customer retention cost

Rs 100 per customer

City

No. of employees

Delhi (NCR)

220

Hyderabad

120

Pune

120

Bangalore

245

Mumbai

295