PRODUCT CASE STUDY

Bhanu Prakash

Contents:
1. Introduction
2. User Persona
3. Pain points
4. Solutions and opportunities
5. New Features
6. Prioritization (RICE)
7. Dark Stores
8. Metrics – KPIs
9. Conclusion

Introduction:
Time is money – and things take time. That's where Dunzo comes in, to get
things dun. Dunzo is a lifesaver for a lot of people living a busy life in metro
cities of India. Dunzo helps its user to get a lot of things done, including but
not limited to buying groceries, getting food delivered, sending
couriers/parcels in the city, ride-hailing and much more.
Dunzo started off as a platform that solved the needs of people who wanted
to save their time getting these small tasks done. Now, it has emerged as a
big name in the hyperlocal delivery space with the intent of capturing the
market in the grocery delivery niche.
Even though Dunzo classifies its target audience as "anyone with a mobile
phone", the majority of Dunzo's user base consists of working-class GenZ
and millennials.
Based on this information, here are the user personas for Dunzo:

1. Anuj:
- 15-22 years old
- School/college student
- Lives off of pocket money
- Lives in a hostel
- Typically uses Dunzo for delivering food/snacks and monthly supplies
- When at home, uses Dunzo for groceries and essentials.
- Likes his food delivered quickly

2. Tanay:
- 20-35 years old, bachelor/single
- Works a 9-6 job, earns enough to pay for monthly expenses
- Saves for annual vacation and a rainy-day fund
- Lives in a rented flat with roommates
- Uses Dunzo frequently for food delivery and groceries, sometimes for
ride-hailing too.
- Has both time and money constraints

3. Shreya:
- 30-50 years old, married with two young kids
- Both spouses work a 9-6 job, has a pet dog
- Earn more than enough for themselves + savings
- Live in their own house, owns a car
- Uses Dunzo for groceries, pet supplies and meat
- Needs to schedule her delivery, since she's not always available at her
home

4. Niranjan:
- 50+yrs old, married
- Retired/about to retire, pension fund takes care of expenses
- Lives with son and daughter-in-law
- Son takes care of most needs
- Uses Dunzo for medical supplies and utilities
- Prefers good quality and experience over time and money invested
Pain Points

1. Delivery charges for small order quantities –

Delivery charges take up a considerable proportion of total order value
when the order value/quantity is small. This is a big concern for users like
Anuj and Tanay. Due to the same issue, Shreya also refrains from buying
her daily groceries like milk and meat from Dunzo.

2. Freshness/quality of groceries –
Users are often unsure about ordering veggies and other groceries
(unpackaged, bought whole) because they are not sure about the quality
and freshness of the items. Users like Tanay and Shreya share this
problem.

3. Sending valuable through Dunzo –

Users are sceptical of having their valuables delivered via Dunzo. Users
don't feel confident about providing valuables like keys, documents and
electronics fearing mishandling/loss of the item.

4. Customer Support –
A 4.7 star rating on google play store proves that users love the Dunzo
experience.
However, if an order is mishandled or some items are lost, customer
support is terrible, as obtained from reading user reviews on the play
store.
Dunzo resolves 48% of its customer via text (which is the preferred mode
of communication for the target audience). Still, the rest of the grievances
handled by call support aren't very efficient at resolving the issue, which
leads to negative reviews and negative referrals for Dunzo.

5. Delivery scheduling issues –

Users like Tanay and Shreya are, for the most part of the day, not at their
homes. They instead have to get up and order early in the morning while
rushing to their work and wait for the order to get delivered before they
leave, or they have to make sure to order before the closing time of the
shops. In such cases, placing and receiving an order itself becomes a task.
This can simply be resolved by allowing users to schedule their delivery
for a specified time.
Solutions and Opportunities

1. Clubbing orders for orders that are not time-sensitive –

This could be an excellent solution to the first pain point, i.e. delivery
charges taking up a significant fraction of the total order value.
Clubbing orders sure does increase delivery time, but if a group of people
in the same neighbourhood are ordering items from the same/nearby
store, their orders can be clubbed and delivered together, leading to lower
delivery costs!
However, this only works for orders that need not be delivered ASAP, so
it should be an optional feature.

2. Daily/weekly subscription-based service – Stuff like milk, meat, fruits

are ordered in small quantities, especially in nuclear families. A
subscription-based service can be implemented, drastically reducing
delivery charges (by clubbing orders using smart algorithms) and
overcoming a major pain point for most customers.
Note: Dunzo Daily was recently introduced in Bengaluru.

3. Partner stores for groceries/vegetables with strict quality checks. It will

also help to pre-process the order and thus reducing delivery time.
This will guarantee that only fresh and good quality items are delivered.
Note: already being executed as "Dark Stores" in Bangalore under
Dunzo Daily.

4. Incentivizing delivery partners to pick fresh veggies. Customers may

add an extra tip for the delivery partner's effort in picking/choosing fresh
veggies. Delivery partners will reciprocate and put in the efforts if they've
been tipped before delivery. It will also promote brand loyalty among
customers, and customers will be more confident in getting fresh
groceries delivered.

5. Scheduled orders – Users can be allowed to schedule their orders for a

specified time for easier pick-ups. Saving a draft of cart items before
ordering could also resolve the pain point no. 5. Alternatively, users could
add items to their cart and be reminded later when they want it to be
delivered (removes the hassle of saving a draft).
 6. Building trust through ratings – On average, there is 1 Dunzo delivery
partner for every 400-500 Dunzo users. Even if a frequent user orders 80-
100 times in a year, there is a tiny chance that they get the same delivery
partner again.
Users should have an option to connect with the delivery agents they've
previously ordered with and have a good experience.
Users can rate a delivery agent after delivery and later request delivery
agents with the best rating (given by the individual user) for future orders,
subject to availability. This would promote brand loyalty and ensure a
consistent experience on Dunzo.
Note: Whide is an Indian start-up aiming to deliver similar services

7. Improved Customer Support – This is an obvious solution and

probably the most important one of them all. While the text-based
resolution of issues works well, on call support on Dunzo needs has many
negative reviews and leads to bad popularity. Customer support is
undoubtedly an important area of improvement/investment for Dunzo.

New Features:

1. Daily and weekly subscription for groceries and essentials

2. Instant delivery of fresh groceries from Dark Stores (Dunzo Daily)
3. Free/cheaper delivery for Plus customers (membership)
4. Only deal with trained and experienced delivery partners of Dunzo
5. Can choose a delivery partner that has already worked them (with a
positive rating) for upcoming orders.
6. Option to schedule orders
Prioritization:
Goal: Increase user retention
Framework used: RICE
Assumptions :
- Total user base = 100 Million

1. Daily/weekly subscription –
a. Reach: Out of the 100 million users, only the ones that order daily
needs like milk, meat and fruit from Dunzo would use this feature,
which should be approximately 60 million users
b. Impact: In my opinion, this feature is likely to impact how these
users use Dunzo substantially.
c. Confidence: Some of these users might already be using a similar
service and might not want to switch to Dunzo Daily.
d. Effort: An algorithm needs to be trained/developed for smartly
assigning the most efficient delivery route. This would require a
month of developers' work. It'd also be more efficient if small
trucks are used for delivery. (30+40)

2. Instant Delivery –
a. Reach: Everyone except users like Niranjan would need this
feature, which should be about 80 million people.
b. Impact: High impact. This feature would positively impact most of
these people since their problems are being resolved much faster
than earlier. They can even trust the freshness and quality of the
product delivered.
c. Confidence: The only downside is that it requires a lot of capital
investment and may fail if competitors can provide faster/better
service
d. Effort: Buy/build and manage multiple warehouses in each locality
of the city. Do quality checks and pre-process the orders. All this
requires capital investment and labour. (100+50)

3. Free/cheaper delivery for Plus members –

a. Reach: Most frequent user would like to take advantage of this
feature (approximately 60-70 million users). Only the ones that
don't use Dunzo very often would prefer the regular experience.
 b. Impact: It would be a relief not to have to worry about the delivery
charges, and it will undoubtedly drive up the engagement and
retention of the app. Even though, in terms of savings, it doesn't
create a huge difference.
c. Confidence: High confidence.
d. Effort: Launching and advertising the membership program and
creating UI/UX and back-end work would require a month of dev's
work. (20+15+15)

4. Trained and experienced delivery partners –

a. Reach: Everyone would like to deal with experienced delivery
partners, but the younger users may not care much as the older
ones who value a better experience than money.
b. Impact: Newer delivery partners are usually not any worse than
the experienced ones; this only gives reassurance to the user of a
better experience and builds brand value
c. Confidence: This feature might make the regular Dunzo
experience look worse.
d. Effort: Train delivery partners through workshops, and incentivize
those who've been working with Dunzo for a long time. (30)

5. Delivery Partner choice –

a. Reach: Niche use case, only frequent users who sometimes need to
deliver valuables or ever need to ensure a great experience would
need this; regular experience is more than satisfactory for the rest.
b. Impact: High impact for the power users for a few orders.
c. Confidence: Low; too niche of a use case
d. Effort: Develop UI/UX for the feature, work on back-end for
maintaining a database of delivery partners for each user. (20+20)

6. Order Scheduling/cart reminders –

a. Reach: Quite a niche use case; only the busiest users would need
this. Cart reminders seem more reasonable for a lot of people.
b. Impact: Medium impact, since it only solves a very niche problem
c. Confidence: May face logistical issues.
d. Effort: Either coordinate with stores to keep the items ready during
delivery time, or the delivery agent picks up the order, puts it in
storage and then picks it up and delivers at the scheduled time.
Both of these solutions are high effort. Cart reminders only need a
bit of UI and back-end development. (90+10)
Feature Reach (in millions) Impact Confidence Effort RICE Score
Daily/weekly subscription 60 2 80 70 137.1428571
Instant delivery (Dark stores) 80 3 100 150 160
Free delivery for Plus member 70 1 100 50 140
Trained + experienced drivers 50 0.5 50 30 41.66666667
Delivery partner choice 25 2 80 40 100
Order scheduling/reminders 25 1 80 100 20

Priority:
"Instant Delivery (Dark Stores)" comes out as the top priority
"Free Delivery for Plus members" and "Daily/Weekly subscription" come in a
close second and third.

Dark Stores – the backbone of hyperlocal delivery :

What are Dark Stores?
- Dark Stores are Dunzo's partner stores/warehouses, scattered across a city
with ideal locations which instantly fulfil the demands of Dunzo users.
These stores are strategically located at places such that no place in the
serviceable zone is farther than 4kms, thus reducing the delivery time.
Why do we need them?
- To reduce delivery time. Delivery time is one of the most important
deciding factors for hyperlocal delivery users. These stores will also help
cut operational costs.
How do they function?
- In these stores, groceries, fruits, veggies, dairy and meat are stored,
quality checked, pre-packaged and kept ready for delivery. This way, the
time taken for a shop to process an order is minimized. Delivery partners
are readily available at Dark Stores, which guarantees the fastest delivery
experience.
Who is our target audience?
- Working-class GenZ and millennials living in Tier 1 and 2 cities of India.
Where should it be launched?
- This service is currently only available in Bangalore. The demand would
be highest in tier 1 cities which is where we should be launching, in a
stage-wise manner.

User Journey – What is the ideal user journey?

Dunzo Daily is the default tab out of the 4 tabs when the Dunzo app is
launched, as it should be. This is what the user journey should look like.

Key Metrics to track

KPIs for Dunzo Daily –
i) No. of new sign-ups – Activation
ii) Total time spent on the app per user per month – Engagement
iii) No. of orders per square km per day – Engagement
iv) WAU/MAU – Retention
v) No. of orders per month per user - Retention
vi) Total cart value of orders per month per user - Revenue
vii) No. of cancellations per order per user – Retention
Conclusion
As a PM at Dunzo, I would focus my efforts and the company's resources on its
prime offering: Dunzo Daily.
Dunzo Daily not only provides faster delivery, but it also solves the problem of
delivery charges on small order quantities.
This feature has a lot of potential and is already proving to be a success in
Bangalore. Hyperlocal delivery has turned out to be a very competitive market.
I would want to release this feature in other metro cities before the competition
catches up.
Dunzo has already differentiated itself from platforms like Swiggy, Instamart
and Big Basket by providing customers with a plethora of choices. While these
brands have a niche product (Swiggy - food, Instamart - instant groceries, Big
Basket - groceries), Dunzo provides all of those services under one roof. Dunzo
stands out from the rest because of its various offerings, and as Dunzo sets into
a niche with Dunzo Daily, it is only a matter of execution before it stands out as
the best choice.

*****

Thank you,
Bhanu Prakash

*****