5 C Analysis

Company-
Online grocery delivery store, which delivers across 18 major cities in
India. Orders are taken through mobile app and website and delivered at
home. Company was founded in Dec 2013 and has raised $ 521.8 million
till date and latest valuation reported by August 2019 is $ 567 million.
Major investment is from Sequoia, Softbank, Tiger Global and others.

Collaborators-
Local grocery stores, delivery staff, local fresh vegetable mandi, FMCG
companies, manufacturers and packaging companies for private labels,
Farmers, warehousing and distribution partners.
 5 C Analysis cont.
Customers-
• Working population in metro cities and tier-1 cities
• Price conscious customers
• Ease of delivery and comfort seeking target segment
Competitors-
• Online grocery market has grown big in India, with every supermarket
trying to go online apart from new startups coming to this space
• Main competitors (revenue in million) are bigbasket.com ($ 232.1),
Amazon Pantry (NA) , Milk Basket ($ 7), Nature’s Basket ($ 48.5), Satvakart
($ 2.4), iorderfresh ($2), etc
Context-
• Change in social environment and nuclear families
• Double income families with no or less time to spend on grocery shopping
• Scheduled and ease of delivery
• Low cost internet and enabled devices. Increase in availability and ease of
adoption of technology
 Value proposition
• Grofers is discounted wholesale prices
• Eliminating the retail commission & retail costs
• Home delivery at no extra cost
• Wide variety of products
• 100% return and replacement policy
• Price guarantee with supermarket and wholesale shops
• Scheduled and on-time delivery
• Majorly the company is into B2C type of operations
 Marketing Mix (4 P’s)
Products-
• Grocery & staples products sourcing from the local stores and fresh farm
produce from local mandis
• Tie-ups with the manufacturers and thus eliminating all the middlemen and
retail costs.
• Grofers have also started its own line of private label for almost all the
items

Place-
• Operating in 18 cities,
• Orders are placed through online mode using website and mobile app
Company takes order and process it through their local warehouses/store
 Marketing Mix (4 P’s) Cont.
Price-
• Lower than that of supermarket
• They have eliminated the middlemen and retail costs by delivering the
products direct from the supplier to customers
• Offers free delivery for the orders exceeding Rs 250 and Rs 49 as
delivery charges for order value less than Rs 250
• Company price their private label strategically at a lower price point.

Promotion-
• Grofers connects with its customers using mass media using TV
Commercials, Social media using Twitter and Facebook
• Several offers and incentive and discounts
• Discount with tie-up from banks and other payment gateways
 Marketing Strategy and Promotions
• Cashback- Grofers have managed to reel in sales over INR 400 crores on the
backing of cashbacks in grand orange bag days

• Orange Bag day Sale- It’s a sale promotion strategy offered by grofers twice
a year with additional discounts and cashback up-to 100% capped at Rs
5000 and targets to acquire new customers for its platform

• Expansion- Company has planned to open more warehouses to cater the

demand and hire 5000 employees for working in warehouse and front-end
operations.

• Private Labels- Low price inhouse brands is another strategy for gaining
competitive advantage. Happy day, Happy home, mothers choice and G-
fresh milk are some of the inhouse brands. Private labels accounted for
about 40% of the total sales