XAVIER INSTITUTE OF MANAGEMENT AND

ENTREPRENEURSHIP, BANGALORE 

         HUL E-commerce Live Project Challenge 2022

TEAM NAME- NOT FAST, JUST FURIOUS

TEAM LEADER -
Mayuri Kumari

TEAM MEMBERS - 
Medha Mahto 
Deepak Arumugam
Innov8 Idea – “UCart”
Introducing a customized basket of HUL products, where customers can choose their monthly supplies, which
can be highly personalized in terms of product size, quantity, brands, and so on. Recommendations by our AI
powered engine based on studying customers purchase & re-purchase patterns. Reminders for repurchase,
Option to reorder automatically for repetitive purchases. Categories of Pre-made need-based Carts as per
Industry demands with an Option to edit a few items from the basket saving the hassle of customizing/ creating a
whole new cart.
Target Customers - Catering both B2B & B2C segments. Main TG are the business buyers including
businesses, apartments & complex maintenance according to their needs. Ex - Basket of products for restaurants
-floor cleaning essentials, toiletries, dishwashing essentials like scrubbers & gels and laundry essentials to keep
their curtains & table cloth clean. (We’ll be focusing 70% on B2B as it’s relatively stable and 30% on B2C model as a trial run and would
iterate as per responses from the customers)
Competitors – Direct competition, online grocery shopping apps (marketplace model) like Zepto, Dunzo, BlinkIt, Swiggy Instamart,
BigBasket, JioMart, FlipKart. Indirect competition – Hypermarkets, Supermarket & even the local Kiranas Ex- RelianceMart, D’mart

Product - Customizable Product Bundling tailored to suit each individual/ business buyer needs.
Price - Penetration pricing initially in the awareness stage. Later, discounted pricing on the basis of number of products, the size and
quantity in their order basket. Offer standardized discount slabs on total basket price. Credit options for business buyers.
Promotion -B2B- Direct marketing & personal selling. B2C - Digital first customers, hence focus on Online channels. Surprise boxes (help
in testing product innovations too) which the customer can order at lower prices 1, PR, Social media Marketing & Influencer marketing
Instagram, Youtube2 etc. Google Ads, Marketplace ads, Ads in YouTube & OTT Platforms such as Netflix, Amazon Prime, Disney Hotstar
etc. Snapchat filter campaign catching HUL products in the cart & get 50% off3
Place - Potential mapping of cities through the available data. Leasing warehouses in high potential locations (say a few tier-1 cities,
where the usage of online grocery shopping is high). Creating a robust supply chain to ensure speedy delivery at the convenience of the
customer. Rapid expansion as per customer response. (For delivery we can use the gig workers or have our own porters as per
feasibility).
Proposition - Leave the hassle of repetitive, time consuming monthly grocery shopping with “UCart”.
5-year growth plan
Year 1- Investing in R&D for product Innovation->Identifying high potential cities -> Establishing warehouses -> Promotions -> Grand
launch -> Starting Operations in the selected few cities-> Ensuring max. Awareness & Reach via various promotional channels mentioned
above.
Year 2- Customer Acquisition -> Expansion of warehouses-> Adding more distribution channels -> New product development
Year 3- Rapid expansion nationwide-> Ensuring last mile delivery -> Growth marketing
Year 4- Retention strategies-> Recommendations & Reminders, Attractive pricing, Same day delivery
Year 5- Launching of store in metaverse

Breakeven for investors - Assuming ABC Ltd. is a market leader like HUL, let’s take the profits from the 1st year just a mere 2-4% of
total revenue made in 2022 (i.e., ₹51586Cr), which would amount to ₹1031Cr -₹2063Cr, assuming the profit margin as thin as 5%, which
normally would be ₹52Cr-₹103Cr approx. But in the 1st year it won’t make that much profits as a lot of promotional costs & establishment
charges are involved. For calculation purpose, let’s take the profits be as low as ₹50Cr in the first year. Most of it would be reinvested in
the business for the next year. Projected CAGR 27-30% as given in the case study. Worst case scenario, even if the y-o-y growth is as
low as 15%, it’ll grow to ₹57.5Cr in the 2nd & ₹66Cr->₹76Cr in the subsequent years. Profits will most probably be visible around the 1st
quarter of year 3 even if we drain a lot of cash in expansion, promotions, sales & distribution channels. As per estimates, breakeven to the
investors can easily be achieved around year 3.
Expenses – Spend Analysis of 1 Cr funding (Year 1)
Percentag
Particulars Cost ₹ (in lacs) e
Market Research 8,00,000 8%
R&D (Product Innovation) 11,00,000 11%
Website hosting &
development 1,00,000 1%
Sales & Marketing
(Promotions) 32,00,000 32%
Warehouse & Inventory Mgmt. 18,00,000 18%
Employee Cost (Permanent +
Temp.) including gig workers 18,00,000 18%
Miscellaneous 3,00,000 3%
Reserves 9,00,000 9%
Remarks – The costs & revenues mentioned above are estimates to the best of our knowledge & pre-research and are subject to
approximations.