Solution to Case Study 1 : Grofers Assignment 2
The Grofers business model has been successful in a short span of time by solving the problem of a working couple’s or young professional’s grocery shopping needs in developed metros. During the week these people hardly have any time to go to a neighborhood grocery store or hypermarket to do essential shopping after work. Grofers solves this problem by delivering groceries to the shoppers doorstep. Payment is by cash on delivery or by credit card.
The major limitation which Grofers faces, is from the housewives segment. This large segment prefers to do its shopping physically, by going to the store rather than via mobile apps. This is traditional behaviour which will be very difficult to change. Specifically, for perishable items like vegetables, meat, fish and sea food, diary products and milk, housewives would like to see the products physically to make a buying decision based on freshness.
The solution would be two fold -
- Grofers will have to open offline / physical stores to display perishable items.
- To constantly increase the assortment of products offered at lower prices. They can do this (as Albinder remarked in his video) the Chinese way. Where Grofers, acts on behalf retailers (more the better) to negotiate best prices from the Brand manufacturers. This will help the retailers to get the lowest possible rates, benefit of which in turn is passed on to consumers.