Marketing Mix of Mumbai Dabbawala and 7Ps (Updated 2024)

The Marketing mix of Mumbai Dabbawala analyses the 7Ps of Mumbai Dabbawala, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Mumbai Dabbawala. Mumbai Dabbawala is associated with the food industry via delivery services. It was started in 1890 because a Parsi banker wanted to eat hot and homemade food even at his workplace. In the same year, Mahadeo Bhavaji Bachche began a delivery service for Tiffin with a workforce of one hundred men. It currently offers services to nearly 130,000 people in the metro city of Mumbai. Mumbai Dabbawala provides 100% customer satisfaction to its clients.

About Mumbai Dabbawala

• Type: Lunchbox delivery service
• Industry: Foodservice
• Founded: 1890, Mumbai, India
• Founders: Mahadeo Havaji Bachche
• Headquarters: Mumbai, India
• Area served: Mumbai, India
• Current CEO: Self-organized group of workers
• Number of employees: Over 5,000
• Major products: Home-cooked lunches

Mumbai Dabbawala Product Strategy

Mumbai Dabbawala is integral to Mumbai, as life without them is inconceivable. It is a delivery system where a dabbawala collects a lunch box from a particular place, delivers it to his customer’s workplace, and returns it on the same day.

They work on a coding system that helps them identify and avoid mistakes. It is a unique organization where a dabba changes hands nearly six times till there is no error. This service is carried out within a specific timeframe of almost six hours every day, six days every week, and for fifty-one weeks every year regularly, completing nearly 260,000 transactions, including up and down services. The main criteria for becoming a dabbawala are that he must be a native of Marathi and not be highly educated, as most are illiterate. Ancillary products of this organization are Gandhi Cap, Dabbawala T-shirt, Dabbawala Mug ad CD, or Video on Dabbawala.

The product mix of Mumbai Dabbawala in 2024 is as follows (Source).

1. Home-Cooked Meal Delivery: This is their primary service. Dabbawalas collect freshly cooked meals in lunchboxes (dabbas) from the customers’ homes and deliver them to their workplaces before lunchtime. After lunch, they return the empty boxes to the customers’ homes.
2. Reverse Logistics: Along with delivering meals, they also manage the reverse process of collecting empty lunchboxes and returning them to the respective households.
3. Corporate Tie-ups: Some dabbawalas have extended their services to corporate clients, offering meal delivery solutions for employees in large organizations.
4. Catering Services for Events: Leveraging their logistics and network, some dabbawalas have offered catering services for various events and functions.
5. Guest Lectures and Workshops: Due to their unique and highly efficient supply chain model, dabbawalas are often invited to educational institutions and businesses to conduct guest lectures and workshops about their management and operational strategies.
6. Merchandise and Branding: The Mumbai Dabbawala brand itself has become iconic, and there are instances of merchandise or branding opportunities, although this is less common.
7. Tourism and Cultural Experiences: The dabbawala system has attracted global attention, leading to opportunities in tourism where people can observe or experience the dabbawala operations as part of cultural immersion tours.

Mumbai Dabbawala Pricing Strategy

Mumbai is India’s financial and technology hub and helps generate a sizeable portion of income. Supposedly, the organizational turnover of Mumbai Dabbawala is nearly 36 crore rupees annually. Its service cost varies from rupees 300 to nearly rupees 1,000. Each dabbawala earns nearly 8,000 rupees per month and, as a Diwali bonus, receives one month’s extra pay from its clients. Its official website takes orders as well as payments via online modes. Mumbai Dabbawala has adopted a very reasonable and affordable pricing system that helps its clients get the best and impeccable services at inexpensive and pocket-friendly rates.

The pricing strategy of Mumbai Dabbawala is an example of value-based pricing, where prices are tailored to meet the needs of their diverse customer base while maintaining the essence of their service. Here’s a breakdown of their strategy:

1. Affordable Pricing: The core of the Dabbawala pricing strategy is affordability. They cater to a wide demographic, from office workers to students, ensuring the price is reasonable and accessible for the average Mumbaikar.
2. Subscription-Based Model: Mumbai Dabbawalas primarily operates on a monthly subscription model, ensuring a steady income flow and fostering long-term customer relationships.
3. Uniform Pricing Structure: Remarkably, the Dabbawalas maintain a uniform pricing structure across various parts of Mumbai despite the distance and travel time variations. This uniformity in pricing upholds simplicity and fairness, contributing to their high levels of customer satisfaction.
4. No Hidden Costs: Transparency is key in their pricing strategy. There are no hidden or additional charges for delivery, which builds trust and reliability among customers.
5. Flexibility for Scale and Customization: While the basic service remains consistent, there is room for flexible pricing based on specific corporate tie-ups or bulk orders.

Mumbai Dabbawala Place Strategy

Mumbai Dabbawala is an organization of Indian origin, as the name suggests, and is based in Mumbai. It has also opened its online services and takes orders through it and SMS. Mumbai Dabbawala has a pervasive and powerful distribution channel that includes services of nearly five thousand dabbawalas, and each one is a shareholder of this system. Six hundred thirty-five are senior employees, and everyone, including their president, works together.

Mumbai Dabbawala either walks or uses cycles to reach a place of collection and later assembles at their collection point by 9.30 am. These boxes are then transported from one local railway station to another station and from here to the actual destination by lunchtime. Then, the reverse process starts, taking the boxes back to the original starting point so they can be reused and delivered the next day.

The marketplace strategy of Mumbai Dabbawala is as follows:

1. Local Coverage in Mumbai: Mumbai Dabbawalas primarily operate within the city limits of Mumbai, covering a vast area that includes significant business districts, office areas, and residential zones.
2. Use of Public Transportation: They extensively utilize Mumbai’s public transportation system, especially the local trains, which are integral for timely and efficient delivery across different parts of the city.
3. Decentralized Pickup Points: Dabbawalas collect lunches from various homes across the city, making their service accessible to many customers irrespective of their specific residential locations.
4. Centralized Sorting Places: The system involves centralized sorting places, typically at railway stations, where dabbas are sorted for delivery according to their destined area, ensuring efficiency and minimizing errors.
5. Last-Mile Delivery on Foot or Bicycle: For the final leg of the journey, dabbawalas often deliver the lunchboxes on foot or by bicycle, enabling them to navigate through crowded or narrow areas where vehicles cannot reach.

Mumbai Dabbawala Promotion Strategy

Mumbai Dabbawala is a well-known organization in Mumbai, as they have been in this industry for nearly 125 years. They are a prevalent force and have adopted mouth publicity for their business. A satisfied customer is a significant advertiser who automatically promotes the brand by talking to a second person. They advertise their promotions through their website to maintain brand awareness. Mumbai Dabbawala participated in a TV program called Deal Ya No Deal Contest by popular TV channel Sony Entertainment.

Several acclaimed brands use it to promote their products. Reliance Power is a recognized company that sent its IPO application to every Dabba. The Maharashtra Government has roped them in to spread awareness about Aids. Even people from the film industry use them to promote their movies. Mumbai Dabbawala has registered its name in the Guinness Book of World Records and received a World Record in Best Time Management from Forbes Magazine. It has received a Six Sigma Rating because of its high data accuracy.

The Mumbai Dabbawala’s promotion strategy is predominantly grounded in word-of-mouth and reputation, augmented by media coverage and academic interest. They rely on their exceptional service reliability and efficiency to generate organic referrals from consumers, while global recognition through documentaries, case studies, and news articles further enhances their brand visibility. Additionally, their unique operational model has become a subject of study in business and management courses worldwide, serving as an indirect but consequential promotion.

Some Recent Video ads and Print ads of Mumbai Dabbawala are:

Mumbai Dabbawalas chart a new path, providing home-cooked meals to customers | TOI Original – Times of India Videos (indiatimes.com)

Mumbai Dabbawala People Strategy

The Mumbai Dabbawala system is a highly efficient and unique service that delivers home-cooked meals to office workers in Mumbai. The success of this service largely hinges on its people, who are the backbone of the entire operation. Here are key points about the people aspect of the Mumbai Dabbawala service marketing mix:

1. Highly Skilled Workforce: Dabbawalas is known for its efficiency and almost error-free delivery service. This is due to their skill in logistics, time management, and local geographical knowledge, which they often acquire through years of experience.
2. Training and Knowledge Transfer: New Dabbawalas undergo informal training under the guidance of experienced ones. This apprenticeship model helps transfer tacit knowledge and skills crucial for the seamless functioning of their delivery system.
3. Teamwork and Coordination: The entire operation depends on meticulous teamwork and coordination among the Dabbawalas. They work in groups, each responsible for a specific area. This collaborative effort ensures that every lunch box reaches its intended recipient on time.
4. Customer Relationship: Dabbawalas builds strong personal relationships with its customers. This bond is based on trust and personal interaction, an essential aspect of their service appeal.
5. Uniform and Identity: Dabbawalas are easily recognizable by their white cotton kurta-pajamas and Gandhi caps. This uniform gives them a distinct identity and instills a sense of pride and belonging among the members.
6. Organizational Structure: The Dabbawalas operate in a flat organizational structure, with each member playing a crucial role. Despite the lack of formal education, they follow a complex coding system to sort and deliver the lunch boxes, demonstrating their organizational skills.
7. Cultural and Ethical Values: The workforce is predominantly made up of individuals from the Varkari sect of Hinduism, which emphasizes values like hard work, punctuality, and commitment. These cultural and ethical values are deeply ingrained in their work ethic.
8. Adaptability and Innovation: Despite their traditional methods, Dabbawalas have shown adaptability to change and innovation, incorporating technology and new methods to improve their service while keeping the core of their traditional practices intact.
9. Community and Welfare: The Dabbawalas operate as a service and a community. They have welfare associations and participate in social and cultural activities, strengthening their bond and commitment to their work.
10. Recognition and Global Appeal: The Dabbawalas have received global recognition for their operational excellence, adding to their appeal. They are often invited to share their knowledge and practices at business schools and corporations worldwide, showcasing the importance of people and community in business success.

Mumbai Dabbawala Process Strategy

The process element of the service marketing mix for the Mumbai Dabbawala operation is crucial in understanding how this intricate system functions so efficiently. Here are vital points detailing the process of the Mumbai Dabbawala:

1. Coding System: Each lunch box (dabba) has a specific code that denotes its collection, sorting, and delivery details. This alphanumeric color-coded system indicates the source, destination, and dabbawala responsible for the delivery, ensuring accuracy and efficiency.
2. Collection: Dabbas are collected from homes across Mumbai between 9:00 am and 10:00 am. Using bicycles, carts, and local trains, Dabbawalas pick up the dabbas from customers’ homes.
3. Sorting: After collection, the dabbas are taken to a central location and sorted according to their delivery area. This sorting process involves a quick and efficient system where dabbas are grouped and rearranged without delay.
4. Transportation: The sorted dabbas are transported mainly via Mumbai’s local train network, the backbone of the dabbawala delivery system. The use of public transportation for the bulk of the delivery process is a crucial feature of their eco-friendly and cost-effective model.
5. Local Delivery: Once the dabbas reach their respective stations, they are collected by the local dabbawalas, who deliver them to specific workplaces using bicycles or handcarts. The delivery process is timed so that the dabbas reach their destinations just in time for lunch.
6. Return Journey: After lunch, the process is reversed. Dabbawalas collect the empty dabbas from the workplaces, sort them again at the local train stations, and deliver them back to the respective households by late afternoon.
7. Error Management: Despite the complexity, errors in delivery are sporadic, thanks to the robustness of their coding and sorting system. Any errors are quickly rectified through their network.
8. Flexibility: The process is flexible to accommodate last-minute changes in delivery locations. Customers can communicate changes through SMS or call, and the dabbawalas adjust the delivery accordingly.
9. Use of Technology: While the core of the dabbawala process relies on manual sorting and a physical coding system, they have gradually incorporated technology, such as mobile phones and apps, for better communication and operational efficiency.
10. Sustainability: The process is inherently sustainable, relying on human power and public transport, minimizing carbon footprint. The reuse of tiffins also contributes to environmental sustainability.
11. Training and Knowledge Transfer: New dabbawalas are trained on the job, learning the coding system and the routes from experienced members, ensuring the continuity and efficiency of the process.
12. Quality Control: Continuous monitoring and informal peer reviews help maintain high service standards. The community-based structure of the dabbawala network fosters a sense of responsibility and accountability among its members.

Mumbai Dabbawala Physical Evidence Strategy

The physical evidence in the service marketing mix refers to the tangible or visible cues that customers use to evaluate the service before, during, and after its delivery. Physical evidence plays a significant role in creating trust and ensuring service quality for the Mumbai Dabbawala system. Here are key points highlighting the physical proof of the Mumbai Dabbawala:

1. Uniform: Dabbawalas are recognized by their white cotton kurta pajamas and the Gandhi cap. This uniform helps identify a professional image and instills a sense of unity and pride among the dabbawalas.
2. The Dabbas (Lunch Boxes): The stainless-steel lunch boxes are the most crucial physical evidence. Their design, durability, and cleanliness reflect the quality and reliability of the service. The dabbas symbolize the home-cooked meals that are delivered with care.
3. Coding System: The color-coded system used for sorting and delivering the dabbas is physical evidence of the dabbawalas’ organizational skills and operational efficiency. The codes, comprising of alphabets and numbers, are painted or tagged on the dabbas, showcasing the complexity and precision of their system.
4. Bicycles and Handcarts: Using bicycles and handcarts to transport the dabbas through congested city streets and local trains is a visible testament to the dabbawalas’ dedication and hard work.
5. Transportation: Mumbai’s local trains, used by the dabbawalas for the bulk of their dabba transportation, serve as moving physical evidence of the service. The sight of dabbawalas boarding trains with large crates of dabbas is familiar to Mumbaikars.
6. Branding and Media Coverage: The Mumbai Dabbawala logo, along with extensive media coverage in newspapers, documentaries, and online platforms, serves as physical evidence of its global recognition and credibility.
7. Awards and Recognitions: Certificates, awards, and recognitions received by the dabbawalas from various national and international organizations are tangible proof of their service excellence and efficiency.
8. Customer Testimonials: Written and verbal testimonials from satisfied customers are physical evidence of the high level of customer satisfaction and the personal touch the dabbawalas bring to their service.
9. Social Media and Website: For a service rooted in tradition, their online presence through a website and social media platforms provides physical evidence of their adaptability and modern outreach efforts.
10. Public Appearances and Talks: Appearances of dabbawalas at public events, conferences, and educational institutions, where they share their knowledge and work process, further solidify their presence and credibility.
11. Collaborations and Partnerships: Any collaborations or partnerships with other businesses or educational institutions also act as physical evidence of their operational model and business ethics.
12. Community Engagement: The dabbawalas’ involvement in social and cultural activities within Mumbai provides evidence of their deep-rooted community ties and social responsibility.

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