Voonik Case Study

B2B or Direct Marketing?

B2B is our solution!
B2B Sales Voonik supplying goods to wholesalers through their Online platforms in tier 2 and 3 cities
Advantages over Direct Sales
Customers Perspective

Reducing time to the market & thus speeding up the business activities by shortening buying cycle

Increased options in terms of variety and availability (unlike visiting the mom and pop stores only during
day times when your own business is also running)

JIT delivery and efficient tracking system

Vooniks Perspective

Increased usage of internt /Smartphone /technology penetration in Tier 2 and Teir3 cities

Large volume sales-higher transaction over B2C

Long term customer loyalty due to consistent demand from the same customer

Decreased Inventory costs

Less employees required

Decreased order processing cost(associated with phone calls, data entry, etc)

Smaller customer base compared to B2C- ease of managing/maintaining customer relations and
improving customer buying experience

Lower risk of loosing out on customer due to bad word of mouth over the B2C ecommerce (problems with
unsatisfied customers)

Cost of customer retention per customer is low

The only disadvantages of B2B are

Reluctance of buyers over security issues (credit/debit card transactions over payment servers)

To change the target customer perception to switch on to B2B ecommerce over the traditional visits to
brick and morter stores.
How to deal with disadvantages -

Direct Marketing
Part time or Full time labours for Prototype Full time is the option!!

Permanent delegation of task

Full time labour more accountable

Long term commitment to work

Training efforts wont go wasted

Reliability in terms of maintaining transparency

Hourly wage of a full time employee is lesser than a contract worker

In case of increased workload, the existing emploess will accomodate it, but in case of contractor,
you need to think about

Direct control over how tasks are performed

More engagement with the organisations mission and vision and objectives

Further sending skilled manpower in the field will not only help to sell more, but will form an
impotant part for market generated research.
The problem is how to hire ?

Hiring employees on contract basis for a period of few months, gauging the performance and then
confirming as full time employees

Carefully identifying the people for the job-i.e not hiring overqualified people (will lead to
unsatisfaction as per the capabilites) and underqualified (Voonik will have to spend too much cost in
training and managing)

Since the model will be similar to Big Bazar direct model, the work involved will be from collating
orders from franchisee, maintaining authentic record of the same, to quick processing of the order
and preparing it from disptach by properly checking it till the last mile delivery point.

Further, since we are dealing with end customer, we need to have a complete Customer
Relationship Centre(not calling it complaint centre, because it gives a negative connotation).

From the collating order phase to delivering order, softwares could be used which facilitate tracking
the entire process.
So, before hiring the workforce, proper seggregation of work activites needs to be done.

Success Criteria for the prototype

Pricing Strategy

Inventory and Cost Allocation Modeling