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Introduction
Dabbawala, (One who carries the box) , is a person whose job is to carry and deliver
freshly made food from home in lunch boxes to office workers. Tiffin is an old-fashioned
English word for a light lunch, and sometimes for the box it is carried in. Dabbawalas are
sometimes called tiffin-wallas.Every day, battling the traffic and crowds of Mumbai city,
the Dabbawalas, also known as Tiffinwallas, unfailingly delivered thousands of dabbas to
hungry people and later returned the empty dabbas to where they came from. The
Dabbawalas delivered either home-cooked meals from clients' homes or lunches ordered
for a monthly fee, from women who cook at their homes according to the clients'
specifications.
Instead of going home for lunch or paying for a meal in a café, many office workers have
a cooked meal sent from home or by a caterer. The meal is delivered in lunch boxes
which are later collected and re-sent the next day. This is usually done for a monthly fee.
The meal is cooked in the morning and sent in lunch boxes carried by dabbawalas, who
have a complex association and hierarchy across the city.
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BACKGROUND NOTE
The origin of the Dabbawalas' lunch delivery service dates back to the 1890s during the
British raj. At that time, people from various communities migrated to Mumbai for work.
As there were no canteens or fast food centers then, if working people did not bring their
lunch from home, they had to go hungry and invariably, lunch would not be ready when
they left home for work.
Besides, different communities had different tastes and preferences which could only be
satisfied by a home-cooked meal. Recognizing the need, Mahadeo Havaji Bacche
(Mahadeo), a migrant from North Maharashtra, started the lunch delivery service.
For his enterprise, Mahadeo recruited youth from the villages neighboring Mumbai, who
were involved in agricultural work. They were willing to come as the income they got
from agriculture was not enough to support their large families, and they had no
education or skills to get work in the city. The service started with about 100 Dabbawalas
and cost the client Rs.2 a month. Gradually, the number of Dabbawalas increased and the
service continued even though the founder was no more
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COMPETITORS ANALYSIS:
There are no specific competitors for Dabbawalas because they operate on a small scale.
But still there are some that can be considered as the competitors of the Dabbawalas.
Price: Dabbawalas have much more low price than any other any
competitors
InMacdonalds, they charge atleast Rs.40 for a happy meal so
according to monthly calculation we can say that it will charge
nearly to Rs.1200.
Quantity: In both Dabbawalas quantity of the food provided is enough to
fulfill the needs of the customers.
In macdonalds, quantity is small so cannot fulfill the need of all
customers
Quality: In Dabbawalas food quality is better because food is prepared in
the houses of the food suppliers.
Macdonalds prepare the food in their place premises so quality
may not be according to the standards decided by them.
Delivery: Dabbawalas deliver their product on anytime, at anyplace.
Mcdonalds don’t deliver the food at any destination.
Attrition: Customer of Dabbawalas rarely divert their minds because they
get good services from the Dabbawalas.
Macdonalds customers can be diverted towards other food
station
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ELEMENTS OR TOOLS
When we go for searching tools of marketing mix we can say that there are 4 p’s of
marketing which are very popular such as
PRODUCT
The main & only product of dabbawalas is a tiffin box or in marathi it is called as
dabba.These dabbas are get prepared in houses of these dabbawalas or in some jointly
working catering industry.So it becomes possible for many people to work at any place
without having food with them because they have to just order a tiffin & get it at the time
they
FEATURES:
1. Good Hyeigine
2. Prepared at houses.
3. Variety in food.
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5. Delivery on time .
BRANDING
K-BO-10-19/A/15.
K is the identity letter of the Dabbawalas.
BO means Borivali i.e. the area from
where the tiffin is to be collected
The figure of 10 refers to Nariman point
area.
19/A/15 refers to the 19th Building and
the 15th floor in Nariman point area where
the tiffin is to be delivered.
SWOT ANALYSIS
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Good relations with Only one Can capture the Threat Of New
the customer product market in near
Entrants
i.e.dabba future due to high
Low price of the efficiancy
product Operate on a Current
small scale Competition
High efficiancy in
delivery
Bargaining Power
Homemade food
Of Buyers
Variety in food
Substitute product
PROMOTION
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A few years ago, US business magazine Forbes gave Mumbai’s Dabbawalas a Six
Sigma performance rating, or a 99.999999 percentage of correctness — which means
one error in six million transactions. Six Sigma is a process that helps organizations
focus on Delivering near-perfect product services. If
you use six sigma you can measure how many defects there are in a process and can
systematically figure out how to eliminate them and try and achieve zero-defect.
Application of this six sigma has enabled the dabbawals to deliver the dabba’son
time to respective recipients.
PRICE
FEATURES:
1 Low price than the competitors such as hotels or MacDonalds, any other food
providers
PACKAGING
Dabbawalas pack their products or meal in the dabbas or Tiffin that are given by the
customers. So there are very less chances of attracting people through the packaging
style. But still Dabbawalas have made it very clear that they don’t want to attract their
customers but they want to give them the best service that they can give
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PLACE
In case of Dabbawalas we can say the place doesn’t matter for them because they
have work places at many destinations in Mumbai such as
Churchgate ,Borivli ,Andheri & at many more places. So they have no problem in
handling the pressure of excess demand by the people as their distribution channel is
widely spreaded
Points to be noted :
2 Main distribition places are situated at some main stations where more
customers are there.
PHYSICAL DISTRIBUTION
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1 That's one error in every 8 million deliveries, or 16 million if the return trip is
included.
2 They have divided the entire city of Mumbai to 6 major sectors and each are
further divided into 56 minor sectors. The focus of this paper is on
benchmarking the distribution network of the Dabbawalas for logistics.
Supply Chain Structure is a network which consists of various members of the network
and the links between the members. To identify the supply chain structure three structural
aspects should be considered:
1) The members
2) The structural dimension and
3) Types of process links across the supply chain. The supply chain of the
Dabbawalas is analyzed using this framework.
MEMBER
The members of the supply chain are identified as primary and secondary members.
Primary Members
• Collection of the dabbas
• Sorting done by the Dabbawalas
• Transportation using the various modes of transport like train, bicycles and pull
carts
• Delivery to the respective destinations of the lunch boxes i.e., offices or schools
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Sorting entirely done in the railway station associated with the main centers.
A total of 200000 dabbas are transported on a day from the households to the respective
destinations and back to the households. The charge for this service is just 150 rupees
($3.33) per month. The Dabbawalas have to pay Rs.60 per crate and Rs.120 per man per
month to the Railways of Mumbai for transportation. An average dabbawala gets about
Rs.3250. Of that sum, Rs.10 goes to their Association. After minimal expenses, a rest of
the Rs.50000 a month, the Association of Dabbawalas collects to a charitable trust that
feeds the poor.
Supporting Members
The supporting member in this supply chain is identified as the Mumbai Metro Railway
System. It has three lanes, which include the central, western, and the harbor lanes.The
train timings and the associated constraints play an important role in the reliability of
supply chain of the Dabbawalas.
BORIVALI, KURLA Collection from areas NARIMAN point DW Nariman Pt. FORT
DW Fort FOUNTAIN DW Fountain CHURCHGATE Station Sorted at CHURCHGATE.
As per station VILE PARLE Sorting according to residential areas:
Residential Area1 Residential Area2 Residential Area3
TRANSPORTATION:
The Mumbai Metro Railway primarily does the entire transportation of the dabbas
system. The precise timing and the frequency of the system aid the Dabbawalas to be
exact in maintaining the schedule. The railway transportation system of the Mumbai
Metro Railway is identified and the entire system is classified into 6 major sectors. Each
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sector is further divided into 56 minor sectors for the advantage of distribution. The
dabbas are sorted in the places where the different systems meet.
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belong to and to keep track of the people and their destined address to which each dabba
is assigned. This is attained by their superb
Cognitive Memory Structure. The dabbas are collected from the respective households
The dabbas are carried by the carriers by the most appropriate transportation method The
dabbas are classified based on the regions to which they are directed The dabbas are
distributed to the various destinations
POSITIONING
This includes the segmentation done by them for launching the product at the place where
it is needed the most.
TARGETS:
Working population
Old age peoples
School children
PEOPLE
The final P of the marketing mix is people. Developing the habit of thinking in terms of
the people inside and outside of your business who are responsible for every element of
your sales and marketing strategy and activities.
The most important factor applied by the Dabbawalas is that they first of all "got
the right people on the bus, and the wrong people off the bus."
They have developed the habit of thinking in terms of exactly who is going to
carry out each task and responsibility.
Then pay little attention to the fact that every single decision and policy has to be
carried out by a specific person, in a specific way.
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Threat Of New Entrants: According to Porter, the threat new entrants is dangerous
to any organisation as it can take away the market share the organisation enjoys.
Started in 1880, the experience curve of the 125-year-old dabbawalla service serves
as a huge entry barrier for potential competitors.
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Besides, it would be difficult to replicate this supply chain network that uses
Mumbai's jam-packed local trains as its backbone.
Current Competition:
The delivery rates of the dabbawallas are so nominal (about Rs 300 per month) that one
simply wouldn't bargain any further. Also, their current monopoly negates any scope of
bargaining on the part of their customers.
Thus, we encounter a perfect win-win combination for the customers as well as the
dabbawallas.
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As substitutes to home cooked food are not seen as a viable alternative in the Indian
scenario, the threat to the dabbawalla service is not an issue at least in the foreseeable
future. This gives them a leeway to probably expand their already existing network
into newer cities as demand increases in these places as well.
AN INTERVIEW
• Your operations are so complex that if even one thing goes out of place, it would
lead to chaos, so much so that even when Prince Charles came to visit you, you
didn’t delay your operations.
It would be difficult to explain how we function, this honour has come to us after 114
years but we get our satisfaction from our work of delivering food to people.
• So you achieved the same perfection as Lata Mangeshkar has in singing or Johnny
Lever has in comedy, but a lot of people like me believe that the food you deliver is
also cooked by you.
We only deliver food to the people of Mumbai. Food which is cooked in their homes by
their wives, sisters or mothers, whatever be their caste, creed or religion.
• Does the tiffin box that the food is delivered in also belong to the customer?
Yes, the food and the tiffin box both belong to the customer. We have a unique colour
coding system that we put on the boxes. Our ancestors started by first using coloured
threads. Then they switched to using pieces of cloth and now we use oil paint and
symbols.
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• Can you please explain to us your coding system with the help of these tiffins here.
The yellow colour symbolizes a ‘group’. A group comprises 10 to 20 people who service
one station. Just like a cricket team there are a few substitutes in case someone falls ill.
• You assign numbers for 2 lakh tiffins and there is never any confusion, do you feed
the numbers into a computer?
No, we never use computers or any other technology, in fact most of us are uneducated.
Our computer is our head and our Gandhi Cap is the computer cover to protect it from the
sun or rain.
• How often do you get complaints of someone’s tiffin getting mixed up or lost ?
Once in a month or two we get a complaint. On following up on the complaint we
generally find that it was stolen by a hungry beggar. Our people then keep a lookout for it
in the market and on spotting it buy it back and return it to the rightful owner. We never
misplace anything due to any confusion on our part.
• How have you managed to reach such levels of efficiency with such an untrained
work force?
It just depends on hardwork and sincerity, only when you fly high can you reach the stars.
The uneducated have an ability to memorize and retain more as opposed to the educated
who are used to writing down everything.
• When did you realize that home cooked food is also a brand and maybe a stronger
one than even a McDonalds or a Pizza Hut?
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Till one is 25-30 years old, you can eat anywhere, but after that home cooked food is
what suits the the stomach and health. Our clients now send water along with their tiffins.
• In fact,I have heard of stories of people sending their cheque books and pens along
in their tiffins and nothing ever gets misplaced or stolen tiffins and nothing ever gets
misplaced or stolen
No, our workers have so much to do that they don’t have the time to open the tiffins.Even
if someone in their family falls ill, they first deliver the food and then attend to them.
• Aren’t you worried that, if a case of food poisoning comes up, your reputation
would be dented.
Yes, we are worried. Our main aim is customer satisfaction.
• How many hands does the Tiffin pass through before it gets delivered?
It goes through 3 to 4 hands before reaching its destination.
• I have heard that earlier you had workers but now all the people who work with
you are shareholders.
Yes, till 1980 it was a worker-employer relationship. There used to be a contractor who
would employ 20-25 workers under him. But the railway strike of 1975 under Datta
Samant that lasted for 20-22 days caused huge losses for us. The Mill Strike further
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compounded our losses. That made us think that what would happen if our workers were
to go on strike?
• Is it true that all the people who work with you come from your village or are your
relatives?
Yes, all of us belong to Pune and adjoining areas. Our ancestors fought in Shivaji’s army
and just the way they had to climb mountains while fighting, we have to climb stairs to
deliver to climb stairs to deliver the Tiffin’s.
• How do you think you can expand your business? Will it be limited to just lunch
Tiffin’s? Or do you have something else in mind?
We have started advertising on our Tiffin boxes by putting stickers on them. This brings
in extra income. Till the time there are people, they will feel hungry and till the time they
feel hungry our business will keep growing.
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• Does your business model work in Mumbai just because of the local trains or will
it work in other cities like Delhi, Bangalore or Calcutta as well?
When I went to Delhi for a CII conference, a lot of people asked me this question. I don’t
think we would be successful in other cities because in Delhi for example, the Metro is
not fully functional; I have no idea about Calcutta as I have never been there and in a city
like Bangalore people have very similar eating habits.
• What are the challenges your business is facing? I have heard that every year your
business grows by 25,000 to 30,000 boxes.
We lose a few customers too each year but are more than compensated with the additions.
We grow annually by about 10%.
• You have International recognition now. Has that helped your community in any
way?
Even Prince Charles came to meet us. It seems that people study for so many years and
then get a degree; it is the opposite for us. After 114 years of work we are getting this.
• I have heard that now you even go abroad to give speeches on your business
model?
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Yes, Dr Vandana Shiva took us to Italy for a meeting on organic food. We didn’t like the
food there, as the people there do not cook fresh food. They all eat tinned foods.
CONCLUSION
Considering the supply chain management we have eight key inter-firm processes:
Demand Management
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Order Fulfillment
The first priority of any service is to provide timely and accurate delivery with a high
degree of order fulfillment. For the end customers the order fulfillment is 100%. Around
5000 Dabbawalas deliver 200,000 lunches everyday and take the empty dabba back.
They make one mistake in 2 months. This means there is one error on every 16 million
transactions. This is thus a six-sigma performance the quality assurance for the
percentage of correctness of 99.999999.
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Since the Dabbawalas don’t focus on the product development it doesn’t need any
significant mention here. Some of the advertisement companies use the lids of dabbas for
small levels of promotion. This could fetch some additional income apart from their
charges.
Returns
The cheaper and the effective distribution attract a lot of customers from the urban areas
in Mumbai for the distribution of their lunch. Exact timing and the quality of service
rendered by them have contributed for the success of this distribution system.
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BIBLIOGRAPHY
Marketing management-Philip Kotler
Economic Times – 3 issues –JULY month
WEBLIOGRAPHY
www.mydabbawala.com
www.ISB.com