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Let's put some structure to this document 🤓-

• Basic Understanding of the Space
• • Value Prop
• User Background
• TAM$
• • What does it mean for Dunzo
• Acquisition Channels
• • Organic
  • Referral
  • Paid
  • Product Integration
  • Content Loops

Let's get the basic understanding in place 😁 -

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Approximately $850 billion is spent annually on goods by Indians, of which $550 billion is spent on food and groceries alone.

But grocery shopping is no longer done with a preplanned schedule. The way that consumers behave has fundamentally changed. This increasing trend no longer has the taste for incumbents. Quick commerce generated $100 million in income in December 2021 (https://restofworld.org/2022/quick-commerce-is-reshaping-user-behavior-in-india-and-thats-a-problem/), with only three cities accounting for 70% of this total.

Furthermore, the Indian Quick Commerce market is expected to reach a valuation of $5.5 billion by 2025, a fifteen-fold increase from its current size, and it will lead other economies, including China, in terms of client acceptance. little steps that lead to the bigger picture. India's entire addressable market for speedy commerce is currently valued at approximately $45 billion.

This shift is fueled by Dunzo, which provides a quicker, more affordable, simpler, and superior method of grocery shopping. The revolution in fast trade has started.

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Value Proposition 💪🏼

• In a moment, guests will arrive, but did you forget to order that one shopping item?
• Too lethargic to reach down and grab that bread packet?
• The closest shop is too far away?
• Need to cook something fast but don't want to place an order? (but too famished to descend and retrieve it)
• On a busy workday, and all of a sudden, your assistant shows up in the kitchen with just that one old apple?
  
  
  We never have enough time to do everything we want to do when we live in a city.
  
  Dunzo transforms your shopping and moving experiences and gives you unprecedented access to your city. With our app, you may choose the closest delivery partner that can make purchases, pick up goods from any restaurant or retail location in the city, and deliver them right to your door.
  
  Making purchases or dropping off shipments is never easy when you're preoccupied with work, caught in traffic, or you might even forget about it altogether.
  
  You only have to do this:
• Give us directions, a list of things to do, and a deadline.
• What takes place after that? Let us worry about the task at hand while you relax.
• We could be said to be always in motion on your behalf.
  
  Just DUNZO your groceries, and get everything DUN.

Understanding our average Users such as Joe 😎-

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Demographics
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What is the TAM $? Addressing the 🐘 in the Room -

In India, the eGrocery market has a TAM of 293B USD! Let’s look at that calculation.

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🖐🏼 Wait - What does this mean for Dunzo?

As a fairly early-stage offering in this market, Dunzo is still only able to service the Tier 1 audience and is aiming at a smaller TAM within this overall pie. Since we do not have the $ value data for spending across households - We will calculate Dunzo’s TAM using # of households.

Hence Dunzo’s 2020 TAM for households is 20M and will grow to 32M with linear market growth.

Assumptions:

• Current Households consist of only eGrocery aware or willing to try.
• Consider only 40% of all current households are in Tier - 1 cities.
• Consider only 39% of the households in the Tier - 1 cities to be convenient first.

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Now let's ACQUISITION ✊

What should be the channel preference for the Dunzo Acquisition Strategy ?​

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Organic

Low search volume for Dunzo and competition names along with their use cases. People are not looking for such options online as they have a traditional way to solve the problem of grocery-related issues at home.

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Audience Demographics

Based on market research, the demographic data for Dunzo is shown in the following figure. This comprises the demographics of the three target audiences—urban millennials, time-pressed urban professionals, and WFH/family men—as well as their age, location, gender, job title, and frequency of use.

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Referral

Platform currency

Dunzo offers a referral program that rewards you and your friend with 50 Dunzo Cash each when you refer your friend to the app and they sign up.

What are the weaknesses of the current Dunzo referral program?

1. Discovering the Referral program is difficult since it is only available through Dunzo Cash and the order delivery page, which is located at the end.
2. The message sent to potential users is not strong enough, resulting in decreased conversions.
3. Users are not incentivized to make incremental referrals, and the total benefit is limited to Rs 500 Dunzo cash, which leads to a low average number of referrals per user.

What can they do to create a referral program and use in-app currency better?

Zepto has a much superior and evolved program for referrals.

Some strengths of Zepto’s program are below

• Referral code is easy to copy-paste and has a one-click sharing functionality to WhatsApp.
• The dashboard has all past referrals in one place to make this an effective one-stop solution for all things referral.
• Very clear communication of what users can expect for every referral.

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Let's understand this better:

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To increase the referrals with can give incremental cashback on more referrals:

• Goal-based milestone planning for more referrals
• The reward may not be cash based

Paid Acquisition

Although there are no major issues with usage or products, we need to use paid advertising such as brand promotions, social media ads, search engine ads, YouTube ads, and programmatic ads.

• CAC:LTV = 8.4

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Product Integration

Consumer feedback indicates that consumers would like to be able to purchase groceries while seeing an Instagram video or recipe, or when they receive diet recommendations from fitness and health applications.Dunzo can investigate possible integrations that capture users during their captive periods in order to fulfill this requirement. To do this, one must set off events at the appropriate moment, location, and group of people. The following are some possible integrations Dunzo may look into:

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Instagram:

• The highest time spent by target users would be on Instagram
• Via stories and promoted ads

Some amazing creative ideas from Dunzo

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Content Loops 🤖

Our ICP is primarily sharing content via Social Media and consumes decent amounts on YouTube right from know-hows to slapstick comedy.

• Instagram Reels
• YouTube Channel

Content Ideas: Celebrity Cook-Off, Quick Recipes, Delivery Personnel Showcase. Healthy alternatives are available on Dunzo.

OKAY, BYE 🙋‍♂️