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Business Model Group On Sells 9/- Group 4 Aneesh Srivastava Akanksha Singh Nishant Kumar Rajat Malakar Sangita Karar Silky Lohia Ujwal prasad.

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Presentation on theme: "Business Model Group On Sells 9/- Group 4 Aneesh Srivastava Akanksha Singh Nishant Kumar Rajat Malakar Sangita Karar Silky Lohia Ujwal prasad."— Presentation transcript:

1 Business Model Group On Sells Onion@ 9/- Group 4 Aneesh Srivastava Akanksha Singh Nishant Kumar Rajat Malakar Sangita Karar Silky Lohia Ujwal prasad

2 Segment the city into four zones On the basis of the order that we receive on 6 th we would segregate the demand according to the locality in that particular zone We would map the beat of the locality and then move ahead with the delivery (say North and East) We will provide GroupOn with 3 options in terms of packaging: Option1: We will provide with Salt and Soaps Packet and ask GroupOn to send stickers Option2: We will ask GroupOn to provide with packets and embed Salt and Soap’s name in it Option 3: We will design low cost white packets and ask GroupOn to design a sticker( which would include the name of both the companies) and then we would paste it onto the packet Methodology

3 Keeping in mind that Salt and Soap does not store inventory we would procure onions in two days On the first day, we would procure onions according to the demand of two zones and then deliver in those zones On the second day we would again repeat the process We would procure red onions, medium in size(A sample would be shown to GroupOn before bulk Purchase) Procurement Process

4 We would require ten vehicles(Tata Ace/Mahindra Geo) per day for two zones( four vehicles per zone). We would hire a vehicle on a single day basis for two days. We would ask Groupon to inbox a mail to its consumers and ask them to have a print copy of it. Once Salt and Soap delivers the Onions to the consumer, the delivery boy would take that photocopy from the consumer and submit it finally to the manager. This would ensure that there is no pilferage of stock. We would hire the vehicle from a reliable source(a reputed firm) which would ensure that there would be no loss from the driver’s side. No warehouse is required. Onions will be procured and then delivered immediately in the two zones/day. We would have a contract with the local sabji mandi vendor (who would have a storage facility), and would take the unsold stock from us at a lower price.While returning back after delivery the left over stock would be sold to the vendor. We would hire four temporary staffs for two days Delivery :2 Days

5 Advance received from Group On: We would ask for cost of purchase in advance from GroupOn on the first day itself Revenue from sale of unsold stock : These stock will be sold to the Local Sabji Mandi vendor at a price lower than market value We would take the margin money after completion of the delivery Major Revenue

6 Rent for Vehicle: Rent is assumed to a maximum of Rs.1200 for each vehicle and we would pay the diesel cost on km basis. Packaging Expense: Packaging Expense will depend upon the option that GroupOn would like to prefer. All the options are as follows Option 1 : Rs.3 Option 2 : Rs.2.5 Option 3 : Rs.4 Procurement Cost: This cost of purchase of Onion will be received from GroupOn prior to purchase Manpower Cost (temporary): We have taken the manpower expense a maximum of Rs.500 per employee/day Major costs

7 Terms And Conditions Cost of Purchase of Raw Material : Groupon will make an advance payment to us on first day itself. Packaging Expenses : The cost of the packets will be borne by Groupon GroupOn is required to send an email to every customer and ask them to keep a print out of that particular mail, so that when Salt and Soap comes with the delivery package it could be handed over to the right person. The customer needs to know that the delivery will happen only once, they will be informed about the tentative date and time before one day. In case of default, salt and soap will not take any responsibility. Groupon will bear the loss on the leftover stock(if any). Force Majeure : This frees us from liability or obligation when an extraordinary event or circumstance beyond our control, such as a war, strike, riot, crime, or an event described by the legal term act of God (such as hurricane, flooding, earthquake, volcanic eruption, etc.), prevents us from fulfilling our obligations under the contract.

8 FINANCIALS LSCM EXCEL.xlsx

9 ` Salt and Soap will continue with its regular business simultaneously so there is no trade off in this aspect This contract will act as an advertising strategy for Salt and Soap which if done otherwise would cost them higher As Salt and Soap will be the point of contact to the end customers it has an opportunity of developing its customer base Pros of Deal

10 Thank You


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