Abstract
The report deals with the analysis of design and implementation strategy adopted by an Indian Grocery retailer iTadka, based in Perivale, UK. This is a small yet very promising Organization in terms of growth, with an accomplished online business. The report will analyze the effectiveness of the current online business strategy followed by the company. It will also look into the issues this company faces in terms of its resourcing capabilities, followed by the recommendations that can promote its online presence.
iTadka: The Company Profile
An independent Indian grocery store located in Perivale, UK, iTadka started its business 5 years back in 2009, and continued to grow as a leading online retailer of Indian groceries, fruits and vegetables over the forthcoming years. The complete retail business of this merchant is based on online orders from customers across Europe and UK (Itadka.com, 2014). It supplies the ordered merchandise with next day delivery option. The company presents a perfect example of the unit that has possessed reputation and growth solely through online business establishment, and has become a common name across Indian families based in and around Manchester.
The Case Study
Use of Social Media to promote Product Awareness – Wikipedia, Facebook, Twitter profiles
Dealing with over 3000 products is not easy. iTadka sells all the varieties of Indian groceries. Not just this, it procures the local produce of vegetables and fruits from the wholesale marketers in Manchester (iTadka.com). The website of iTadka is excellently designed with easy-to-use options, clearly categorized based on various products. It connects to its intended audience through Wikipedia, Facebook and Twitter as the medium other than its own website.
- Optimally designed website
As an online business retailer, it is mandatory for the company to make it presence online through all the options available to itself, in order to reach far and wide. To achieve this, iTadka has the website designed based on SMO recommendations (iTadka.com). Social marketing optimization helps the company to appear on top of the listings when online users search various search engines for online grocers in Manchester or UK. The Organization is conscious of the aspect that web is the biggest contributor of its growing business, and has continuously kept its website up-to-date with frequent hits through Facebook and Twitter as the sources. It never fails to hit the first page, no matter which search engine is being queried for the Indian grocers offering home delivery.
- Frequent Press Releases
Wikipedia and Facebook keep the buyers up-to-date on what is new and exciting on iTadka. Online presence is an excellent way of reaching millions of web users through a single click. However, there is a sort of authentication awarded if the Organization is picked up by the reliable source backing it up for good reasons (Scott, 2007). The same stands true for iTadka, which is in news frequently for its quick service and overall high quality of services. It has been published in The Times and The Guardian many times, that has helped the Organization to gain better relevance among its customers, and win new buyers as well (iTadka.com).
Press Releases help the company to gain a serious standing among its rival grocers spread across Manchester in huge number. PRs also work as the reminder for the interested buyers to keep looking at this company with a trustworthy view about iTadka that gives weight age to the authenticity and reliability factors.
- Interviews on News Channels
As a relatively new and progressive firm, the company attempts to make a significant appeal through the news channels as well. Management interviews on Zee News and NDTV News in Manchester are part of the promotional strategies that the Organization employs to increase product awareness. Twitter account of iTadka keeps the interested buyers in link with what is ON.
- Affiliate Marketing
The company invests a good portion of its earnings in maintaining its website, and staying in touch with its customers. It sends monthly newsletters with frequent offers and discounts on most of its merchandise. There are loyalty points accumulated towards every purchase, which can be later redeemed for future transactions (itadka.com).
Recently, there is the new program called ‘Refer a friend’ which entitles a buyer to receive the merchandise worth 20 pounds from iTadka for free, whenever his referral makes the first online purchase with the store. The referral himself is rewarded with 1 pounds of discount on his first purchase (iTadka.com). This is great for the buyers from instantaneous perspective and the store from the long-term view of business.
Planning and Implementation Issues with the current business strategy
Though the company is doing incredibly well in terms of expanding its online business, there are certain issues that hinder the progress of the firm, especially during the implementation stage:
- Lack of accessibility: iTadka is one of the very few Indian grocery stores in UK which offer home delivery at extremely nominal rates. This becomes troublesome in cases where the delivery is to reach a remote location with no proper roads laid out. Considering the country-side location around Manchester, the problem becomes grave.
- Inability to handle out-of-stock products: many times, the products shown available online actually do not exist in the current stock held with the company. In such cases, the rest of the list is delivered to the customer, along with the printed bill, which is handed over to the buyer through driver delivering the merchandise. However, there are two common issues which arise in such scenarios:
- The printed bill is usually the copy of the invoice generated online, with no modification or reimbursement mentioned towards the undelivered product. This demands a further follow-up with the customer care unit in iTadka that is unanticipated delay in the process (iTadka.com/customer_reviews).
- The buyer is seldom annoyed with the missing product, even if the bill amount is generated. Sometimes, that specific product becomes his prime criterion for the complete shopping that he decided to do online (iTadka.com/customer_reviews).
- Lacking logistics: The company works with limited number of vans used for hoe delivery of the items. During festive season and special occasions, when the orders are huge, lesser number of drivers becomes the biggest nightmare for the company to fulfil the orders.
Recommendations to promote the business and tackle current problems
There is no doubt and no denying of the fact that iTadka has been maintaining an incredibly huge number of products, which are well organized on its website for easy viewing and purchasing. However, the company needs to work on the aspects which are weaker in comparison, and thus pose a threat for further business in specific cases.
Here are some recommendations which seem to fit the business model that iTadka has currently, while making sure that its current functioning is not affected by the changes:
- Tie-up with local merchants:
This has proved out to be a magnificent success formula, where the smaller firms have grown large by proper tie-ups, saving good deal of money on transport and local purchase (Fiore, 2000). iTadka can follow the similar lines through its tie-up with the local merchants for most of its products which demand freshness. For example, a deal with the farmer based in Macclesfield, the country-side of Manchester, can help the firm supply fresh vegetables at low cost to the buyer. For this, the company may have to work a little on maintaining reach ability between the two parties (Sheehan, 2010), which it can accomplish through a small office in Macclesfield or over phone call for every online order placed.
- Cash-back over a certain amount:
Cash crediting into the buyer’s account in the form of ‘cash-back’ reward works miraculously in cajoling him make another purchase (Sheehan, 2010). iTadka can work on this strategy very well, with the amount and percentage fixed for cash-back transactions.
Indirectly, there is an emphasis for elaborate purchase aimed through this step in specific. For example, a 5% cash-back offer on the purchase of 50 pounds will lure the customer to extend his intended purchase of 40 pounds. The company sells products worth 10 pounds extra this way, while giving back just 5 pounds overall. This margin increases as the selling capability increases.
- An annual catalogue:
Big brands have used this method to establish a commendable reputation and a better planning technique. M&S for example publishes its bi-annual catalogue every year in advance, which gives an in-sight to the customers about what is in store for them for the coming 6 months (Scott, 2007). It is an attractive way of presenting complete stock in advance, and senses the consumer’s mind for a better planning.
With an annual catalogue, buyers will be aware of the new additions in the store, even if they never had a chance to ‘search’ through these options while making their purchase online (Sheehan, 2010). Many may be excited to find some of the rare commodities and place an order for those in advance. Many may ask for the missing items which they wished the store had, and iTadka can plan over accumulating those just in time.
Conclusion
In brief, iTadka is an excellently performing online business that is now known to most of the Indian families spread across Europe. The firm has been adding fresh stock over the time, and has invested a good deal on reaching the intended customers through its website and the monthly newsletters. However, the biggest contributors of the company’s sales numbers have been Facebook and Twitter accounts so far. Almost, all of the aspects of Social Media are utilized through proper technology in place.
Few stumbles and turn-offs which persist due to the confined operation of the store can be fixed by widening its reach to other merchants. The company can plan on logistics front by employing new vehicles or have additional drivers who can finish off the deliveries in their personal vehicles, and continue to do so during emergencies.
References
De Stricker, U. and Dysart, J. (1989). Business online. Toronto: John Wiley in association with the Canadian Institute of Chartered Accountants = Institut Canadien des comptables agreÌeÌs.
Fiore, F. (2000). The complete idiot's guide to starting an online business. Indianapolis, Ind.: Que.
Itadka.com, (2014). Indian Groceries Online UK | Online Indian Grocery Shop UK | Indian Grocer UK. [online] Available at: http://iTadka.com [Accessed 23 Nov. 2014].
Scott, D. (2007). The new rules of marketing and PR. Hoboken, N.J.: John Wiley & Sons.
Sheehan, B. (2010). Online marketing. Lausanne: AVA Academia.
