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GroupOn Sells Onion

GroupOn Sells Onion. Presented By Group 1 Ambuj Sinha Anshul Kumar Rai Kishore Gopale Prabina Chetri Rajeev Nayan Shoumya Ghosh Sreetama Dutta. AGENDA. The deal being offered The Process Flow Procurement Price Payment Packaging Delivery Some issues related to Delivery

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GroupOn Sells Onion

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  1. GroupOn Sells Onion Presented By Group 1 AmbujSinha Anshul Kumar Rai KishoreGopale PrabinaChetri Rajeev Nayan ShoumyaGhosh SreetamaDutta

  2. AGENDA The deal being offered The Process Flow Procurement Price Payment Packaging Delivery Some issues related to Delivery Pilferage Cost to be borne Terms and Conditions

  3. The Deal being offered In the current Indian market where Onion prices are sky rocketing, GROUPON is offering a kilo of onion at a price of Rs 9/kg Each address can order one kg only Delivery to be taken over by SaltnSoap No cash on delivery facility available Delivery to be done within 9-10 days Predicted sale would be 1000kgs

  4. The Process As SaltnSoap not being a large scale company, we suggest the company to outsource the delivery operation Making use of a well established courier company for the delivery is the solution SaltnSoap will procure the Onions from the wholesale market Packaging will be done by us and handed over to the courier company The demand of the onions received per day is to be informed by Groupon so that the courier company can be intimated from time to time and thus plan accordingly Delivery is to be made on the 9th and 10th day

  5. The Procurement The deal starts on day one We approach both the wholesale market and Metro cash n carry to compare prices and quality Then we select the better option and decide on the source On Day 7 we will purchase the onions in bulk and bring it to our place (office/personal premises) for packaging By the evening of day 8 we transport the packaged goods to the warehouse of the courier company ready to be delivered

  6. Price The price at which we will sell to Groupon will be Rs 60/kg The current mandi price is prevailing at around Rs 45-Rs 47 The difference in amount will be our share of profit This price would be fixed on the day of the contract ie Day 0

  7. Payment Groupon will pay us for the whole deal ie procuring, packaging and delivery This payment is to be made as 75% in advance and balance 25% after completion of all deliveries The mode of payment chosen is RTGS, facilitating real time transfer of money thus we have the bulk of liquid cash before purchasing and packaging We in turn would pay the courier company 50% in advance and remaining 50% after completion of the deliveries For the packaging materials, we will pay the vendor after delivery of the packaging products

  8. Packaging This is to be undertaken by us It would facilitate standardization in weight of each 1kg packs and also would allow us to supervise the quality of the onions being delivered It will be done by four unskilled labors, hired for this purpose supervised by the manager of our company The material chosen for packaging is thin jute/nonwoven bags, with logos of Groupon and SaltnSoap printed on them. This packet would be designed and accepted both parties to be done within a single day The bags being eco friendly, durable and re useable would ensure prolonged branding The vendor is ready to deliver the packets within 3days after receipt of the order. Hence we expect to receive the same within day 5. Sample

  9. Delivery by courier company The courier company will be contacted for delivery of the goods thus hedging risk on our part Once the contract is entered with Groupon, we will be meeting with the different courier company and offer them to carry out the operation for us throughout the city The company quoting the lowest selected and a contract is entered with them A market study shows that a company like first flight would charge us Rs 35 for an intra city delivery All obligations of delivery will be borne by them

  10. Some issues related to delivery We will be asking GroupOn to issues sms to the customer after they purchase that will contain a code This code will be used as an authorization which will be cross checked by Groupon and us thus proving that delivery has been done The codes generated need to be send to us before the delivery starts Any goods not delivered, the courier company will be charged and sued upon Incases where the customer is not at home the courier company will charge 20% the amount for a revisit (only one revisit)

  11. Pilferage As we are outsourcing the materials to the courier company, we are hedging the risk of pilferage A document would be signed by the company after they receive the goods from us thus authorizing that they have received 1000kgs of onion at proper conditions Any disputes that further come up, the courier company would be responsible Goods not delivered on revisit would be bought back by saltnsoap at half of current market prices

  12. Costs to be borne by GroupOn on per Kg of Onion Cost of the materials Rs 60/kg Transportation cost Rs 35 of each pack Packing cost Rs 2.4 @Rs 2.4/Pack Labor cost@Rs 300 Rs 2.4 per employee Transportation Rs 1.2 @Rs 600/trip of vehicles TOTAL Rs 99.60

  13. Terms and Conditions The detailed terms and conditions for Group on : GroupOn Details The details of the terms and conditions for FirstFlight Courier services: First flight details

  14. Thank You

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