Decoding growth process for Dunzo in 2020

Every generation has something to offer be it good or bad it's a matter of perspective.

So this GenZ has mastered/slew social media channels (TikTok), to gaming, to ordering food, paying bills or payments to book tickets, to learning online.

They are notoriously termed/attributed as the lazy generation of a kind who is smart, witty, and lazy. Name a transaction or service which cannot be done online.

And they don't mind being called lazy as if they have accepted the tag and are proud of it and even prove it. Even Bill Gates cannot deny the fact.

So this lazy generation has not only promoted these internet slangs and short forms, but they have also given rise to a new society and a new revised economy that business and marketplace that is quick in response, address their needs, use tech, trustworthy, freebies, coupons n discounts.

All the above parameters that gave birth to startups like Swiggy, Flipkart, Ola, Uber, etc.

These are startups that have molded the market already and have given way to hyperlocal platform startups.

So what is hyperlocal?

The Platform-to-Consumer Delivery market segment focuses on online delivery services that provide customers with meals from partner restaurants that do not necessarily have to offer food delivery themselves. In this case, the platform (e.g. Dunzo) handles the delivery process, sends homemade dabbas or the famous Irfan khan's Lunch box to your office /address.

Categories include pick up and drop packages, groceries, food, medicines, pet supplies, wellness, fruits, vegetables, meat, gifts, and electronics.

Check here and here for more information

Gone are the days when every household used to have "Ramu kaka" to do all their errands and bucket list.

Now in this era, everybody is as busy with their goals and we are in times that we desperately need him. So technology has given a digitalized and efficient version

of Ramu kaka and we now call it DUNZO.

It all started one afternoon in 2015 at a restaurant in Bengaluru. Kabeer Biswas, who had completed his earlier startup Hoppr's transition to Hike, was in the city. He thought how nice it would be "if there was someone who could complete your list of tasks for you — just tell someone what you need finished and it is done.

D for Dunzo, D for delivery

On 24th April 2020 in association with The Product folks, we had the privilege of talking to our guest Sai Ganesh - Marketing Head, Dunzo, ex Zomato on Product conversations

Was again an unusual start to the session, that is Sai reverse engineered to QnA first as he insisted on being an interactive session rather a slides session.

Started with Sai's experience and learnings from Zomato.

Zomato is an Indian restaurant aggregator and food delivery startup that provides information, menus, and user-reviews of restaurants, and also has food delivery options from partner restaurants in select cities.

The Dunzo

Google prompted this definition

So what is Dunzo in Indian terms?

Dunzo is a hyperlocal concierge application design top automate the process and the focus on users to do list. A delivery service that brings anything and everything from across the city right to your doorstep.

Dunzo offers uncontested convenience to the user for getting the tasks done and running errands.

Following are some of the categories they cater to

Business Strategies

They manage all things by themselves from taking an order from the customer, fulfillment of the order from their partners, their delivery, and payment.

How Dunzo Earns:

1. Earn from delivery charges.

2. Commissions from the partner's store.

3. Surge Pricing (also called demand pricing).

The Brand Story

Dunzo had an initial marketing strategy with a focus on service and creating a good customer experience, which, in turn, created strong word of mouth for the brand.

In the initial years, they spent very little on marketing. Even their customer acquisition was mainly based on their strong user base.

  • Creating awareness or educating consumers on the category
  • Consumers can send from the lunch box to documents anywhere else in the city
  • Top of the mind recall ( be it food, medicine, documents ) dunzo should be the first choice. The choice is based on multiple factors (pricing plays a major role)
  • Dunzo uses the hack of Moment marketing and try and relate the authenticity in their social media or their transactions.

At the moment there is no such tool where we can track brand awareness as a KPI.

Learning and Takeaways

  • So here Sai adds that multiple experiments to be encouraged not all experiments see the day of the light, however brainstorming and researching or tracking the right metrics for the entire funnel i.e from Awareness – Final preference – Loyalty
  • The easiest form of going from step 0 to Step 1 is to look for organic traffic. Be it organic traffic on your website on your play store, installs, and even the organic searches on google to be tracked to be analyzed for 45-90 days.

Established research projects take Inmobi as an example a detailed tracked on funnel analysis.
The possibility and scope of that data are limitless. The fact that Dunzo does not limit itself to verticals opens it to almost everything under the sun.

Check here for information on how Dunzo operates.

How to achieve the ROI factor

Sai stresses on the below-mentioned facts or the KPI's that should be considered

1. Top of mind awareness.

2. Engagement metric.

3. Resources to be used effectively.

4. Measure the gap in attributing what type of content is working.

5. What are the brand's tone and character? Eg well-crafted puns on current affairs will work on Twitter rather than on Instagram.

6. How do you want your consumer to perceive your content. Instead of just making content on engagement and services, try to relate it as nearest as possible to the life of a common man. For ex In the morning one might be a gym person, in the day you are a professional by evening you don the hat of a cook. The same your brand should reflect so with Dunzo they have content on data, their partners, current affairs, new inspiration, talk of the town ( w.r.p.t startups),

7. So the strategy to follow is Rinse and repeat the content that works through engagement or social mentions.

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8. Their campaigns on #Dudewithasign #Nariwithasign #Partnerwithasign also got so many views and conversations that other brands are also adopting it.

Inspiration is derived from other brands, individuals, influencers, folks popular on social media, investors, startups, partners, and their weekly marketing ketchup meeting.

9. The Key is to inspire more UGC content without any ads. Make engaging content which user wants to see eg GOT based graphics or Memes on Bollywood.

10. The next online trend will be on Vernacular content.

11. Adopts 70:20:10 strategy i.e 70 denotes the % your content will work the safest bet to consider,20 denotes the % where the content might work or might not, risky affair. Other folks have tried, replicate the work .10 denotes the % you keep it open for current affairs, perspective, changes things which the brand has never tried.

12. On teamwork

Give freedom and the liberty to explore. Here also need to adopt 80:20 strategy

i.e 80 denotes the % that defines your tactical work aligned to the team member

20 denotes the % that defines in which the individual or the team member is proud of

13. Also, the lazy generation is the Dunzo generation. Having said that it's just not millenials are using Dunzo or resonates more with Dunzo. Parents who live alone in the nucleus city are also a part of Dunzo generation i.e urban middle-class consumers i.e the mainstream audience.

14. Using the Tactical design Approach i.e get deliveries in 30 mins

15. Major performance marketing or CPA is to drive the next million users i.e the middle-class common man. So classification on the social media channels and the usage depends on Audience –Audience and medium – medium

16. If your brand and the tonality is not on the serious note would request to add humor

Eg Pepsi Vs Coke and Burger King have a profound effect on shaping his knowledge spectrum.

17. Most loved consumer brands for inspiration are

  • Zomato ( creating a love for food, design n copy)
  • Netflix (drive conversations )
  • Spotify ( data to make marketing interesting)
  • Burger King ( Cheeky, humor based)

18. Also clarified the myth that tier 1 cities are only the potential buyers, no matter the % will be high however the rural areas are still adopting the trend with the advent of mobile and internet in their lives and making the most of it.

19. The best sign that your Campaign is hit, that is getting picked up by the press.

20. Brands should be interesting and mysterious

21. In Quality Vs Quantity

     Quantity or the frequency one puts out content is more important than the quality.

Check here more on twitter engagement

Just Dunzolt and Humans of Dunzo

How to do marketing with Low budget

As Sai commented on how to come up with ideas on content

  • That a lot of it is actually planning and pipeline of ideas and ideas need to be rejected as well
  • To know your goal one needs to know the Target Audience first.
  • One should not zero on only one group of TA Target Audience, it should be Powers users and Next million users.
  • This is based upon the SEC i.e Socio-Economic Classification

The SEC Classification is the classification of Indian consumers on the basis of parameters. Traditionally the two parameters used to categorize consumers were: Occupation and Education of the chief wage earner of the households.

For more information on SEC check here and here

Persona Segmentation

          Power Users                                                                  Next Million Users

       Dhruv/ Deepika                                                                Manjunath/Manjula

    Banker /Indiranagar                                                            Hardware Store, Ulsoor

 Apple, Uber, Netflix, Spotify                                                 Micromax, Paytm, Youtube,

Face-id, passion-based wallpaper                                pattern lock, Family/temple wallpaper

    Dunzo + Concierge                                                               Dunzo + Delivery

             GOT                                                                             Big Boss Kannada

         Values Time                                                                       Values Money

  • Track your campaigns or data for 45-60 days.
  • Find out your users.
  • Where are the users spending the maximum amount of time?
  • What kind of content they are consuming.
  • Don't spend your money within the first 90 days. Push out as much as content in various forms.
  • Create a community, reach out to power users. Make efficient use of Whatsapp and Google groups.
  • Ask Celebrities to give a shoutout.
  • Sai's also mentioned if you want to scale things outsource them and things that are creative in nature or content should be done in house.

Bonus tip: The turnaround time TAT is much faster than an agency. Sai also stressed the importance of research and asking the right questions to the right person i.e psychologists and anthropologists for consumer behavior for more insights rather than talking to an agency or overemphasizing data.

Book recommendation on  Archetypes.

Push Notifications

  • Initially don't have to complicate with lots of metrics.
  • Have a value-based proposition by offering offers, discounts should be upfront, the structure of the message.
  • Track the data for 30 days.
  • Check the order rate.
  • Social mention (though could not be measured)

Check here more on push notifications.

Some shade from our guest-

Meta point is the keyword.

Hate when people agree with him.

Look for suggestions on how better things can be done.

Passionate about Quizzes.

Check out the web series here and reach out to him here.

Catch more from Sai here and here.

Sai's take on Marketing and the future for Dunzo

Marketing is an intuitive function. Exercise it for your branding.

Future of Concierge market in India.

Is to be the pipeline or the Logistic layer for the city.

The aim is to improve unit economics.

Sai's take on budding/ experienced product marketers/service marketers

  • No MBA's required.
  • Starting early – Do internships.
  • Starting as a secondary stint: Try to find the niche and pivot.
  • Get and Be interesting.
  • Find your RTB Reason to Buy. As a marketer one have every reason to get to know how social medium works. Pick 1 or 2 goals and carve out a niche out of it.

Sai's take on best brand marketers that he follows

Andrew Chen – Insights around Marketing

Kunal Shah

Check here and here more on brand or growth strategy.

Product strategy

This is how the product evolved in years

2014 – 2015 – Services on WhatsApp groups

2017 – 2018 – Consumer Version of the App

2018 – 2019 – No revenue

2019 – 2020 – still going strong

"Dunzo has a unique business model for India; it is solving a local problem. It addresses two things: India's huge infrastructure problem and younger people who give more of a premium on their time," says K Vaitheeswaran, founder of Indiaplaza, one of India's early e-commerce ventures.

Check here for Product roadmap

This is how the world of Dunya and Harri is all about. Let us know what you all think.

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