Zepto Online Grocery in India know the full detail Review: Zepto Grocery Review, Zepto Owner detail read the full post to have an extensive information and ideas.
Grofers, Big basket, Swiggy, Danzo & even Amazon pantry, do you know that a thing is common in all these companies which is, “Disloyal customers”. If you use Grofers, then definitely you will be using Big basket as well. In fact, you might be ordering your groceries somedays from Swiggy as well. Now question arises; why customers of these companies are not loyal with them? So reason to this is a thing which is common in all these companies which is,”Proposition of discounting”. Customers keep all the apps downloaded whether its Swiggy, Grofers or Big basket. But they order from where they are getting most discounts.
Start of Zepto grocery India and Zepto grocery founder
All these thing were going on in the market, But then two 19 year old guys jumps & shake the roots of all these companies.September 2020, Aadit Palicha & his friend Kaivalya Vohra together start a startup, whose name use to be “Kirana Mart” as it’s a grocery delivery startup exactly like Big basket & Grofers. But till the arrival of January 2021, it becomes Zepto.
Acheivements of Zepto grocery owner.
Aadit Palicha & Kaivalya Vohra the owner and founder of Zepto grocery in India created a milestone in Zepto online grocery delivery business. In only 11 months with 60% return customers, Zepto is growing with a growth rate of 200%. And I guarantee if you use Zepto atleast once then chances are that you never use Grofers & Big basket. But the question arises is that what these two 19 year old guys did? That people are ordering from Zepto today instead of Grofers & Big basket?
Zepto grocery review for the business lessons.
What are those business strategies Zepto is using? To compete with well funded startups like Grofers & Big basket. And most important, what are those business lessons? We will do Zepto grocery review today. Which we can learn from this case study & can implement in our business.
Start of Zepto online grocery.
On 24th March 2020, Prime Minister Narendra Modi announces lockdown in whole country, due to which Aadit & Kaivalya gets stuck into a flat in Mumbai, two bachelors with life skills in a flat and if order grocery from anywhere then delivery time of alteast 2-3 days, anyone will get frustrated man. And this frustration gave birth to, “Kirana Kart”.
It’s model was very simple, as most of the people were locked in their house during covid, and were unable to go out so Kirana kart will deliver groceries to your house. While running Kirana kart, slowly slowly a pattern was observed. Whichever delivery is completed in 45 mins to 1 hour, repeat order of those customers is placed 20% of the times. But the deliveries completed in 20-30 minutes, return order of those customers is placed 40-50% times. This is the point from where game of whole grocery delivery changes.
What Aadit & Kaivalya Founder and Owner of Zepto Grocery discovered studying these patterns for a month?
By regularly studying these patterns for a month, Aadit & Kaivalya discovered a lot of things about Indian consumer behavior. And after that they shut down Kirana kart totally & started Zepto. As both of Big basket & Grofers are billion dollar companies, and hence to compete with them Zepto used these 3 business strategies.You need to find answers for only 3 W’s to study consumer behavior of any industry. Find answer to these 3 things & you will get a pattern.
First W – What
- What do consumers want?
- What do consumers need?
Second W – What
- Meaning for this what is what will they pay for?
- What’s that thing for which they will give money?
Third W – What
- What is available in the market?
Consumer behavior in grocery shopping is something like this, First what, i.e, what do consumers want? Answer is quick deliveries & discounts. Second – What customers are paying for? Answer is for convenience. And third – What is available in the market? For which answer is Grofers, Big basket, Danzo, Swiggy instamart & others.
As customer’s want for quick delivery was unfulfilled in grocery delivery business, none of the options available in the market is able to fulfill this want so people adapted with this and slowly grocery delivery completion in 2-3 hours became a consumer behavior. Customers were impatient but due to lack of much options in the market they weren’t able to do anything. But as Zepto brought it’s concept of 10 min delivery the whole game & scenario got changed. And this impatience of people was monetized by Zepto through it’s 10 min delivery value proposition.
How Zepto is able to deliver in 10 mins?
The question here is, when companies like Grofers & Big basket take 1-3 hours for delivery, Then how Zepto is able to deliver in 10 mins? And this brings us towards the second strategy of Zepto which is, “The dark store model“
Whichever area Zepto enters into, these things are done firstly in that area.
1. Buying patterns
Whichever area Zepto enters into first buying pattern of that area is analyzed. First it’s observed that what people want to buy & after that they observe. What’s the purchase frequency/buying frequency of people & how frequently they purchase those things.
2. Spending power of customers.
What’s their total spending power & how much money they can spend in total?
After analyzing all these things, the second thing done is called, “Location engineering” Zepto whenever enter into a new area then they analyze traffic routes of that area and calculate what will be their average lead time if they deliver here. And after that they check the real estate prices of that area.
After doing these two things then they finalise a dark store on a centralized location. Dark stores are mainly mini warehouses that has the capacity to serve all the customers within the radius of 3 kms. This lead to reduce in delivery time compare to other market players. In a particular area Swiggy instamart delivers to the houses in 15-20 min whereas Zepto in 6-10 mins.
Why is there such a great difference in the delivery time of both the companies?
Success of dark store model is hidden in PPB formula for Zepto online grocery
- 1st P – Picking – which is very fast in all the stores of Zepto. In their dark stores, all the employees have tablets as when order is placed it comes to central hub, from that hub the order reaches dark store, and from their it’s given to employees as all things are reflected on their tablets,that what are the items in this order & which item is placed on which place, which shelf.
- 2nd P – Packing – All the items are collected & packed quickly.
- 3rd B – Bagging – As the delivery agent gets the order in hand agent need to leave the warehouse. Zepto ensures that the lead time of all three activities picking, packing & bagging should be 60 seconds. Which means after giving order till you click on check order tab till then you order will be dispatched from warehouse.
But question arises that all these things can be done easily by Grofers & Big basket as well very easily. Then how will Zepto will compete with these companies? So answer to this is hidden in their third strategy whose name is, “Hyper focus”.
A thing is common in all these three companies Swiggy, Big basket & Grofers Which is that “They all compete on price”. Where customers get most discounts, they like to order from there only, but Zepto is hyper focused on speed.
Customer acquisition strategy of Zepto grocery india.
In fact, customer acquisition strategy of Zepto is different compare to competitors. So how does Zepto acquire customers? You need to understand this very carefully. Consider if you are ordering for the first time from Zepto online grocery what you will be getting.
- Firstly you will be promised a delivery time of 7-10 mins based on your location.
- You will be given great discounts of 25-30% or in fact upto 50% off.
- And you will get free delivery.
- Whatever your order, it will be delivered in next 10 mins to your house.
Now you forget the discount & you only remember that your delivery was done in only 10 mins and too free of cost. And that’s why where other competitors (to get orders from customers) keep doing cash burn, and keep on giving discounts whereas Zepto only do cash burn once or twice, acquires & retains the customer.
What business lessons we can learn from this case study & can implement in our business?
First lesson – Customers are loyal toward the value & not the brand.
Any customer today is attached with the value provided by the brand instead of the brand itself. As customer is loyal to value provided by the brand instead of brand, so that’s why continuously improving value proposition is the only option left for companies to survive in market.
Second lesson Tapping the untapped.
In every market, every sector; every business something is always left untapped. Like if we look into this case study of Zepto online grocery then there was an untapped want of people of their impatience. By taking advantage of what Zepto has established it’s whole business.
Hope you like the deep analysis of Zepto grocery India? Please do share your thought on this.
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