Marketing Mix Of Grofers and 7Ps (Updated 2024)

The Marketing mix of Grofers analyses the 7Ps of Grofers, which includes the Product, Price, Place, Promotion, people, physical evidence, and process of Grofers. Grofers is a private company of Indian origins. It is associated with the internet industry and is an on-demand service for delivering grocery items. The company was founded in December 2013 by its co-founders, Saurabh Kumar and Albinder Dhindsa, and has its headquarters in Gurgaon, India. Grofers has targeted the working section of society as its customers who are too busy for daily shopping. Some competitors are as follows –

• Nature’s Basket
• Big Basket
• Indbazaar

About Grofers

• Type: Online grocery delivery service
• Industry: E-commerce
• Founded: 2013
• Founder: Albinder Dhindsa and Saurabh Kumar
• Headquarters: Gurugram, Haryana, India
• Area served: India
• Key people: Albinder Dhindsa (Chairman) and Aditya Burman (CEO)
• Number of employees: 40,000

Grofers Product Strategy

Grofers is an online commerce establishment that connects medium m-commerce between customers and offline retailers through its excellent and prompt services. Local shopping by users becomes easy, pleasant, and hassle-free by using the mobile app.

It is a marketplace for daily shopping items. One can shop via a mobile app from the local store, and delivery is guaranteed within a timeframe of just ninety minutes. Bakery items, groceries, vegetables, fruits, flowers, baby care items, and meat can be ordered with a single click. A customer can schedule delivery time according to their personal preference. The company plans to add categories like cosmetics brands, electronics, and pharmacy to its product list.

The new Product Mix of Grofers in 2024 is as follows (Source).

1. Groceries and Staples: This includes daily essentials such as pulses, flour, spices, rice, dry fruits, nuts, and oils.
2. Fruits and Vegetables: Fresh produce, including fruits, vegetables, herbs, and organic options.
3. Personal Care: Products ranging from skincare, hair care, and oral care to personal hygiene items.
4. Household Needs: This includes detergents, dishwashing essentials, household cleaners, and other cleaning supplies.
5. Beverages: Various teas, coffees, juices, soft drinks, and water.
6. Snacks and Packaged Foods: Chips, biscuits, noodles, cereals, and other ready-to-eat snacks.
7. Dairy and Bakery: Milk, bread, eggs, butter, cheese, and other dairy and bakery products.
8. Frozen Foods: Ice creams, frozen vegetables, and non-vegetarian items like chicken and fish in frozen form.
9. Baby Care: Diapers, baby food, skincare products, and other essentials.
10. Pet Care: Food and grooming products for pets.

Grofers Place Strategy

Grofers is an e-commerce organization whose network is spread to various markets in several parts of India. It is served by a highly efficient workforce of nearly two thousand employees. Its operations were spread to twenty-six cities, but the company has halted its operations in nine to make its operation count currently to seventeen towns. Places where operations are on are Mumbai, Kolkata, Pune, Lucknow, Jaipur, Hyderabad, Delhi NCR, Chennai, Bangalore, Ahmedabad, and others, and places where the company offers workings have been stopped are Visakhapatnam, Rajkot, Nashik, Mysuru, Ludhiana, Kochi, Coimbatore, Bhubaneswar and Bhopal.

Customers order grocery items online using the mobile app. Employees of the company take down the order, secure it from either local stores or stores where they have an account, and later deliver it to their customers. The reach offers free delivery even of a local merchant is limited to 2-3km radius but collaborating with Grofers gives then access to stores in a wider radius. Moreover, the company has solved one of the major problems of a merchant by hiring delivery boys and sending food from them to customers. The distribution network of Grofers includes these delivery boys and employees recruited for units like tech, marketing, operation, and taking down orders.

Here’s the place strategy of Grofers.

1. Localized Warehouses and Distribution Centers: Grofers leverages localized warehouses and distribution centers to ensure quick and efficient delivery of goods. This strategy enables the company to stock products closer to customers, reducing delivery times and costs.
2. Partnership with Local Stores: Grofers expands its product availability and reach by partnering with local stores and vendors. This collaboration allows for a more extensive network for distribution and delivery, tapping into the local demand more effectively.
3. Online-Only Presence: Grofers operates with an online-only model, focusing on their mobile app and website for customer orders. This digital-first approach helps cover a wide geographical area without needing physical retail outlets, making shopping accessible and convenient for customers.
4. Strategic Location Selection for Warehouses: The company carefully selects warehouse locations based on customer density and order patterns. This ensures that the most demanded products are readily available in areas with the highest demand, optimizing delivery speed and service quality.
5. Expansion to Tier 2 and Tier 3 Cities: Initially focusing on metro and tier 1 cities, Grofers has strategically expanded its services to include tier 2 and tier 3 cities. This expansion strategy aims to capture a broader market base, addressing the growing demand for online grocery shopping in less urbanized areas.

Grofers Pricing Strategy

By the end of the financial year 2015-16, Grofers raised an estimated 165.5 million dollars from its investors like Sequoia Capital and SoftBank. Grofers is a product that features a business model established to help people meet their specific demands, especially working-class consumers who do not have the time to shop daily. The company’s business model offers its customers a payment mode; for instance, they can pay via e-wallet, debit card, credit card, or cash-on-delivery.

Grofers (now known as Blinkit) employs a dynamic pricing and marketing strategy designed for its target market and offers competitive value to its customers while ensuring sustainable business growth. Here’s a breakdown of its pricing and marketing strategy from a marketing perspective.

1. Competitive Pricing: Grofers sets its prices in direct comparison with local supermarkets and online competitors. This approach ensures that customers receive the best deals, making Grofers a go-to option for grocery shopping. By constantly monitoring competitor prices, Grofers adjusts prices to stay competitive, attracting price-sensitive customers.
2. Volume Discounts: Grofers offers volume discounts to encourage bulk purchases, where the price per unit decreases as the quantity purchased increases. This strategy boosts sales volumes and enhances customer loyalty by providing value for money on bulk orders.
3. Dynamic Pricing Models: Utilizing advanced analytics and data, Grofers employs dynamic pricing models that adjust prices in real time based on demand, supply, and other market conditions. This flexibility allows Grofers to optimize profit margins while remaining attractive to customers through deals and discounts during off-peak times.
4. Membership Programs: Introducing membership programs like Grofers Orange Bag offers customers free delivery and exclusive product discounts. This subscription-based pricing model fosters customer loyalty and increases the frequency of purchases by providing significant savings over time.
5. Promotional Pricing and Offers: Grofers frequently runs promotional campaigns, offering discounts, cashback offers, and unique product pricing. These promotions are strategically timed, often around festivals, holidays, or special events, to maximize customer engagement and sales.

Grofers Promotion Strategy

Grofers is a relatively new company and has adopted several marketing and advertising policies to create positive brand awareness. It had launched a new type of service that demanded a great marketing and advertising effort to convince customers to understand and use its concept. The company has launched a mobile app and has decided to connect with its customers on social media via platforms like Twitter and Facebook.

Grofers brand has offered consumers several offers and incentives that can be viewed on different portals. Some of its lucrative incentives include 15% cashback per transaction, but the cashback has a maximum limit of 200 rupees, 100 rupees cashback on using the MobiKwik wallet, and 25% cashback on daily items. All offers are time-based and tend to change from time to time. Grofers has recently launched its maiden commercial on television, promoting advertising and marketing its products and creating brand visibility.

Some Recent Video ads and Print ads for Grofers are:

Grofers People Strategy

The “People” aspect of the sales and service marketing mix for Grofers is a crucial element that significantly influences customer experiences, brand loyalty, and satisfaction. Here’s how Grofers excels in this area.

1. Customer-Centric Staff: Grofers emphasizes the importance of a customer-centric approach among its staff. From delivery personnel to customer service representatives, employees are trained to prioritize customer satisfaction, ensuring a positive shopping experience. This focus on customer-centricity helps build a loyal customer base.
2. Skilled Workforce: Grofers invests in training and development programs to equip its workforce with the necessary skills for efficient service delivery. This includes training in technology tools for managing orders and deliveries and soft skills training for customer interaction. A skilled workforce ensures seamless operations and enhances service quality.
3. Efficient Delivery Personnel: The efficiency and friendliness of delivery personnel play a significant role in the overall customer experience. Grofers’ delivery staff are trained to handle orders carefully and deliver them promptly, which is critical in maintaining customer trust and satisfaction, especially for perishable goods like groceries.
4. Responsive Customer Service: Grofers has a team that promptly addresses inquiries, complaints, and feedback. By ensuring quick and effective resolution of customer issues, Grofers enhances customer satisfaction and loyalty, vital for repeat business and positive word-of-mouth.
5. Employee Satisfaction and Retention Strategies: Recognizing the importance of employee satisfaction to customer experiences, Grofers invests in employee welfare and retention strategies. This includes providing competitive salaries, benefits, and a positive work environment. Happy employees are likelier to deliver better customer service, contributing to a positive brand image.

Grofers Process Strategy

The “Process” aspect of the service marketing strategy mix for Grofers (now known as Blinkit) refers to the methods and procedures employed by the company to deliver its services. This encompasses everything from product design to order placement and customer delivery. Here’s a detailed look into the process management strategies employed by Grofers.

1. Streamlined Online Ordering System: Grofers provides a seamless online ordering experience through its website and mobile app. The user-friendly platform allows customers to browse products easily, add items to their cart, and complete their purchases with a few clicks. This efficiency in the ordering process enhances customer convenience and satisfaction.
2. Real-Time Inventory Management: Grofers employs advanced inventory management systems that provide real-time updates on product availability. This ensures that customers have accurate information on the stock status of items, reducing the chances of order cancellations or delays due to out-of-stock situations.
3. Efficient Order Fulfillment and Logistics: Grofers utilizes a sophisticated logistics network to ensure efficient order fulfillment once an order is placed. The company operates localized warehouses and employs a route optimization algorithm for its delivery fleet, which minimizes delivery times and ensures that customers receive their orders promptly.
4. Flexible Delivery Options: Grofers offers flexible delivery options, including same-day delivery and scheduled deliveries, to accommodate the varying needs of its customers. This flexibility allows customers to choose a delivery slot that is convenient for them, enhancing the overall service experience.
5. Customer Feedback and Continuous Improvement: Grofers encourages customers to provide feedback on their shopping experience after delivery. This feedback is then used to improve service processes continuously. Whether it’s enhancing the website interface, streamlining the delivery process, or expanding product offerings, Grofers actively works on integrating customer feedback into its operations.
6. Transparent Communication: Grofers ensures transparent communication with customers throughout the ordering and delivery. This includes notifications about order confirmation, dispatch, expected delivery time, and any delays or issues. By keeping customers informed at every step, Grofers builds trust and manages customer expectations effectively.

Grofers Physical Evidence Strategy

The “Physical Evidence” aspect in the service marketing mix of the Grofers marketing strategy plays a pivotal role in shaping customer perceptions and trust towards the brand, especially in the online grocery retail sector where physical interaction with the product is minimal until delivery. Here’s how Grofers’ marketing strategy addresses physical evidence.

1. Brand Identity and Website/App Design: The visual design of Grofers’ website and mobile app, including its logo, color scheme, and layout, serves as the initial touchpoint of physical evidence for customers. A user-friendly interface that is visually appealing and easy to navigate reinforces the brand’s professional image and commitment to customer convenience.
2. Packaging: The packaging of delivered items is a critical form of physical evidence. Grofers uses branded packaging that ensures the safety and integrity of the products during transit and enhances brand recognition and perception. The quality of packaging material and the presentation of the goods upon delivery contribute significantly to the overall customer experience.
3. Delivery Vehicles: Grofers’ delivery vehicles, often branded with the company’s logo and colors, serve as mobile billboards that enhance brand visibility and awareness. The condition and appearance of these vehicles also reflect the company’s professionalism and commitment to quality service.
4. Uniforms of Delivery Personnel: The uniforms worn by Grofers’ delivery personnel are markers of professionalism and brand identity. Uniforms contribute to the trust and security customers feel when receiving their orders, as they quickly identify the personnel as representatives of Grofers.
5. Customer Communication and Receipts: Physical evidence also extends to the communication materials provided to customers, such as order confirmation emails, delivery notifications, and purchase receipts. These materials are designed to be clear, informative, and reflect the brand’s identity, reassuring customers about their order status and transaction details.
6. Quality of Products Delivered: The condition and quality of the products upon delivery are perhaps the most direct form of physical evidence. The freshness of produce, the expiry dates of packaged goods, and the overall quality meet the promises made by Grofers, reinforcing customer trust and satisfaction with the brand.

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