Identifying changed consumer behavior due to the COVID-19

pandemic.
“Chaldal”
MKT 201 (Section 01)

Prepared For

Dr. Salma Akter

PhD (UK), MSc (UK), FHEA (UK), MBA (DU), BBA (DU)
Assistant Professor, Department of Business Administration
East west University

Prepared By
Name ID
Rabiya Islam Sumaiya 2021-1-10-167
Mehnaz Parveen 2020-1-10-126
Nasrin Akter 2021-1-10-168
Most. Hosneara Anonna 2020-1-10-034
Md. Hameemur Rahman Himon 2020-1-10-055
Tasnimul Hossain Safin 2020-3-10-066

East West University

19th of April 2022
Letter of Transmittal:

Dr. Salma Akter

Assistant Professor
Department of Business Administration
East West University
Aftabnagar, Dhaka-1212, Bangladesh

Sub: Term paper on Identifying changed consumer behavior due to the COVID-19 pandemic
“chaldal”

Greetings, Madame
It brings us great pleasure to present to you the report on "Chaldal". Identifying changed
consumer behavior due to the COVID-19 pandemic. A company that is operating online, has
apps, does business through social media, provides home delivery, or does business in the
healthcare sector.

We concentrated on the issue while creating the paper, attempting to absorb and present the most
detailed data available. We feel, it will provide you a clear picture of the situation of the service,
how both consumers changed purchasing patterns plus that particular company's challenges and
opportunities created due to the pandemic situations.

We appreciate your enabling us to write a term paper on a novel concept. This will undoubtedly
benefit us. We gained experience that we can apply in our working lives. We shall be ready at all
time to assist and resolve any questions you may have about this report.

Sincerely
Md. Hameemur Rahman Himon
ID: 2020-1-10-055
On behalf of the group
Acknowledgement:

We would like to express our heartfelt gratitude to everyone who assisted us and gave us with
the opportunity to compile and deliver this report.

First and foremost, we would want to express our gratitude to Dr. Salma Akter, our MKT201
faculty supervisor, Assistant Professor, East West University's Department of Business
Administration for giving us the chance to study and examine such a fascinating issue and for
giving us supervision, unwavering guidance, and useful counsel when needed.

We'd also want to express our gratitude to Chaldal's website and Wikipedia for their assistance.

We were able to get all of the information we required for this report. Above all, we must thank
Allah, the Almighty, for providing us with the strength to labor.
Executive Summary:

Chaldal.com is one of Bangladesh's best online grocery stores. They began their journey in 2013
and have been rapidly expanding since then. There were only five of them at start. Chaldal
presently employs over 1200 people, thanks to the growth of the company. The idea of
purchasing from Chaldal had to struggle at first since they had to get groceries online, which was
a new thing at the time. Customers should be educated about internet food buying. Customers
nowadays are highly aware of Chaldal and internet shopping are rapidly increasing market share.
Dhaka residents place a high value on their time, the majority of their time is lost due to traffic,
bargaining, and other inconveniences shopping for groceries. Chaldal succeeds in these
locations, where inhabitants may avoid the headaches of shopping for fruit and other essentials
while also saving time. Chaldal delivers groceries and other supplies to customers' homes,
allowing them to relax and enjoy their weekends rather than getting up earlier than usual and to
go to the market. Chaldal supplies vegetables through their own network. Their supply chain
methods are distinct from those of others. Despite the fact that Chaldal has several excellent
aspects. Every day the number of competitors grows as everyone wants a piece of the digital
market. Supermarkets such as Shwapno and Meena Bazar now provide home delivery and an
online shopping platform, creating new challenges to Chaldal. Chaldal, on the other hand, has
several advantages that they may use to obtain a competitive advantage. Chaldal is dedicated to
giving its consumers the finest online grocery shopping experience possible, and they are taking
the necessary measures to expand.
Table of Contents:
Chapter 1 Introduction Page 01
Chapter 2 Company Overview Page 2-4
Mission
Vision
Chapter 3 Target Marketing Page 5-6
Chapter 4 Operational Activities Page 7-10
Supply chain Cycle
Distribution strategy
Promotional Strategy
Chapter 5 Business Operation Page 10-12
Chaldal Vegetable Network
Micro-Warehouses
Investment cookups
Refugee Empowerment
Chapter 6 Competitor of Chaldal Page 13-16
Barriers for new entrants
Chapter 7 Customer Loyalty Page 17-19
Reasons why customer are loyal to
chaldal
Chapter 8 E-Business in Chaldal Page 20-25
E-business models
E-business application service
Best E-Business of 2017
Chapter 9 Consumer buying behavior towards Page 26-30
online shopping
Consumer changed purchasing behavior
due to covid-19
Challenges and opportunities created
due to COVID-19
Chapter 10 Future of Chaldal Page 31
Chapter 11 Conclusion & Recommendation’s Page 32-33
Chapter 13 References Page 34-35
Introduction: Chaldal.com is the first online grocery shop in Bangladesh. It provides each
and every item a human need in a day starting from oil to rice, vegetable, meat, fish etc.
Previously it had a branch in only Dhaka, but now it has branches at Chattogram, Narayanganj
and Jessore. They serve more than 20,000 families per day, and 5000 are only in Dhaka.
Chaldal.com debuted as an online grocery store in Dhaka, Bangladesh, in November 2013. They
offer around 4000 items and 500 brands to choose from. They deliver daily supplies to the
doorsteps of Dhaka residents. Chaldal manages inventories in nine warehouses ranging in size
from 5,000 to 7,000 square feet using a cloud-based inventory management system. To ensure
one-hour delivery, Chaldal.com has 14 micro warehouses around Dhaka. Some of its warehouse
locations are Hajaribag, Banani, Rajarbag, Mirpur, Uttara, Dhalibari, Kallyanpur, and Rampura,
Fakirbari, Panthapath, and Badda. These warehouses stock the entire product line.
Representatives arrange and handle supplies in preparation for delivery.
In 2015, Chaldal.com was ranked ninth among the top 500 companies in the globe. 'Y
Combinator', a startup accelerator run by Forbes Magazine, came up with the grade. It was also
named The Daily Star's 2017 E-Business of the Year. The name of the company that won the
2018 Financial Times/International Finance Corporation Transformation Business Award.
Anyone can buy products from the comfort of their own homes and have them delivered by a
delivery guy using chaldal.com's online service, and can pay in cash or make an online payment.
In the beginning of March 8 2020, Bangladesh was hit by a COVID-19 epidemic. Many people
could not leave the house or carry out their daily chores because of the pandemic since COVID-
19 is a contagious virus that spreads through human contact. People then purchased each and
every item from Chaldal.com by just tapping their app or by dialing 16710. Chaldal.com has
made it easier for individuals to use their services at Covid-19 situation.
Moreover, Chaldal.com has added a part about washing hands, staying away from people etc. to
this covid-19. Chaldal.com says, "We’re with you all the way." As a result, we can anticipate
Chadal.com continuing to provide products and services during the outbreak.

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Company Profile: Chaldal Founded Mr. Waseem Alim (CEO), Mr. Zia Ashraf (COO),
and Mr.Tejas ViswanathanCOT).

The organizational structure of the company is headed by the CEO of Chaldal.com, Waseem
Alim, CTO, Zia Ashraf and COO, Tejas Viswanath, Mizanur Rahman, Nayef Ahmed
Chowdhury, Lusbun Uditi,Md. Sumon Mallik, Shahed,Asad Nour and 6 other members are the
executive team who have been running Sheba.xyz since 2013. They are a team of dedicated
people spread across the globe and working round the clock to bring about rapid progress in the
Bangladeshi E-commerce ecosystem.

As of May 2021, it has 25 active warehouses, all of which are open 24 hours a day, seven days a
week to provide the best possible service. Here, Chaldal believes that people of all districts,
especially Dhaka and Chittagong have value of their time. If they need to buy something, they
can just tap into the app, and can book whatever they want, and the product will reach their
doorstep. This is why Chaldal provides everyone with everything everyone requires at no
additional cost. Though they are in the lead, they are a work in progress, but they expect it to

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improve with time. They believe that technology can help Bangladesh to improve, and they will
continue to push the country's technological boundaries.
Like other business organizations, Chaldal also has their goal to achieve. Their goal is related to
their valuable customers, which is Save Money, Save Time. This motto means that they will
keep the price of the goods as low as possible in order for clients to save money. On the other
hand, “We take orders through our website in a matter of minutes”, removing the need for
customers to go out and waste time shopping. Their goal is to stock a huge inventory of low-cost,
high-quality complete products and deliver them to your house in under an hour. After the
mission, it's time to focus on the vision. A vision statement describes what a company wants to
achieve in the long run, usually five to ten years, but sometimes even longer. It gives a clear
direction for establishing and implementing corporate-level plans by painting a picture of the
company's future appearance.

Chaldal.com keeps its warehouses small and strategically placed across Dhaka in order to reach
as many customers as possible. As of June 2015, the company was able to deliver to 8 to 10% of
Dhaka residents within one hour. They believe in leveraging technology and education to
develop Bangladesh, and they will continue to put up every effort to push technology's frontiers.
Groceries and houses in Dhaka are likely a $4 to $5 billion market per year, and they aspire to be
one of Bangladesh's largest merchants if they offer competitive prices and more variety.

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Mission: Our mission is to provide best of the baby items at the lowest prices with great
online shopping experience and Prompt customer service. We always want to provide our
customers with a physical stores shopping experience; online, without the hassles of driving out
and run through the traffic.

Vision: Chaldal’s goal is to give customers the experience of shopping in a big-box store with
a huge selection. Chaldal’s vision is “To be the best online and offline grocery store and earn
customer satisfaction”.

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Target Marketing: A target market is a business plan focused on growing sales and brand
awareness within a specific group of customers. In order to generate sales and expand their
customer base, businesses strive to attract the ideal audience for their brand. Businesses can
achieve this by creating a target marketing strategy that focuses on attracting a certain consumer
segment. Learning how to create a target market plan can help anyone come up with new ways to
improve the market share of a product or service. Companies partition huge markets into smaller
segments based on common qualities shared by current and potential customers to find potential
target markets. Businesses can target a certain market segment to create targeted marketing
efforts, make precise sales forecasts, and boost revenues by increasing product sales.
Chaldal.com is one of the biggest e-commerce grocery shops operated in our country that
delivers products to customer’s doorstep, which is helping to rebuild the country's grocery
channel online because of their dedication and supply chain. For example, the company has an
end-to-end platform that includes logistics planning and fulfillment.
Like Shwapno, they also have large storerooms at Dhaka, Chattogram, Jessore and Narayanganj
where they have kept more than 8500 types of products. They are very cautious about their
customer needs and wants. They often give offers like BOGO, discount etc. for saving their
customers purchasing power and by giving this kind of offers, people like to buy more from
them.
Not only grocery items they have, but also pet food, clothes, meat, vegetables, dairy products.
They have made an app for their online shop, which is Chaldal.com. Anyone can order from here
by downloading their app. It can be downloaded in both Android and iOS. Besides the app,
customers can order through the phone. By preparing to reach a certain market, businesses can
also define and clarify their brand's message. This can benefit other approaches, such as social
media posts and advertising initiatives. Target market tactics allow them to target a specific
audience and gain their trust as an expert in the industry. If anyone searches for new ways to
address client needs, it can also spur beneficial internal transformation and creativity. At present,
Chaldal.com plans to run about 50 Nano-warehouses in cities in and outside of Asia, and this
will allow the company to fulfill orders in about 15 minutes.

● Offerings and Brands: Chaldal addresses their customer needs by putting forth a value
proposition, a set of benefits that satisfy them
buyers for their service. Previously, Chaldal was a normal online business; but after
COVID-19 pandemic, it has become an actual brand because they served their customers
nicely when the world was afraid of coronavirus. Their delivery man, online service etc.
was so appropriate that consumers became satisfied.
● Marketing Channels: The main media of Chaldal is cell phone, Viber, Gmail, etc. They
send messages to their customers whether new or old through the message option. They
also call the cellphones sometimes, but it makes customers irritated. Those who are their

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 loyal customers, they try to buy everything starting from egg to pet food, every single
thing from Chaldal.

● Paid, Owned, and Earned Media: This point means the way how a business is getting to
its customers. It has three processes:

1. Paid Media: It includes TV, magazine, and display ads.

2. Owned Media: Owned media is a communication channel that marketers own like
brochures, website, Facebook page etc.
3. Earned Media: When customers or media or other outsiders voluntarily
communicate something about the brand, buzz or viral marketing, then it is earned
media.

As Chaldal is itself an online business platform, and it serves customers online, it is basically
targeting its customers through owned media. Recently in November 30 2021, they launched
their TVC casted by Bangladeshi actress Nusrat Faria, Abul Hayat, Dr. Ejajul Islam, which
telecasts both in TV, and Facebook. At last, it is clear that they are operating their target
marketing strategy in all ways, but mainly in earned media.

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Supply chain cycle of chaldal: Today is the modern technology era. Technology
makes our life easy to easier. We are busy with our day to day life. Now we prefer online
shopping at first. As more and more businesses and consumers become comfortable using online
shopping, The share of Bangladesh commerce that takes place online has progressively expanded
over the last ten years. This expansion has created significant opportunities in the digital
commerce market, like Chaldal, a online based grocery business, is eager to seize.

Chaldal is a online based shop where people can find their needy products .Today, it has
established not only a strong online grocery business, but also an end-to-end grocery supply
chain with direct backward and forward links to farmers and smallholder retailers, giving it
additional clout in the grocery supply chain.
Chaladal don’t manufacture their products. They purchase or collect products from different
different manufacturer company or brands, where they work as replenishment. The goal of
replenishment is to keep inventory moving through the supply chain by keeping order and line
item fill rates as high as possible. After that, they divide their service into two parts. They deal
directly with small retailers and sell a huge number of units at the daily market pricing, which
called business-to-business (B2B). Second, they offer their products directly to customers based
on orders placed on their website,Chaldal.com.

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Distribution Strategy of chaldal: After receivig orders from customers, they
provide products via home delivery. They provide flexible home delivery in 1 hour. They don’t
take cash in advance. Chaldal takes cash on delivery. The organization now delivers more than
4000 orders every day.
Now the company says it is the country’s second-largest grocery player and the largest grocery
e-commerce platform, with 27 warehouses located in four cities. Chaldal.com’s distribution area
is not only Dhaka, it is also available in Chattogram, Jashore, Khulna, Sylhet, Gazipur, Rajshahi
and Narayanganj.
Chaldal.com provides their product to customers by their own delivery man or rider. They have
delivery van and cycle. They use van for large quantity of deliver and for less quantity, they use
motorcycle or van. Customers get their order delivered within 1 hour at their door-step.
There is a BDT 20 delivery fee if the order value is BDT 300 or more. If the order value is less
than BDT 300, we charge BDT 39 delivery fee.

Promotional strategy of Chaldal: Creating awareness, encouraging people to try

items, giving information, maintaining loyal consumers, expanding product usage, and
discovering potential customers are all promotional goals, as is providing potential service
consumers what they want and need to "co-create" the services provided.
Chaldal doesn’t use analog system of marketing. They use digital marketing to promote business
and to reach to customers. It is a online based platform, so they use internet to promote their
business by facbook marketing, email marketing ,google ads.

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Sales promotion:

Premiums: Chaldal.com gives offer on their products. They gives gift to their customers after
purchasing. When they provide this kind of offer, customers got attracted and ready to purchase
products.

Price pack of cent off deals: almost everyday chaldal provides different types of offers to
customer. They offer 5 to 15 % off on their products from the market price. Sometimes they
offer more than that amount on their website.

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Buy 2 get 1 offer: Chaldal also offer buy 2 or 3 get 1 offer. Customers attracted by this offer and
purchase to grab the opportunity.

Business operation of Chaldal:

Chaldal wants to extend GoGo Bangla, an on-demand logistics solution for small e-commerce
enterprises, as well as the Chaldal Vegetable Network, which connects producers to retailers
directly. It also planned to open a pharmacy that sells directly to consumers.

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Chaldal Vegatable Network (CDVN): Chaldal made the choice to invest heavily in the
vegetable supply chain around a year ago. Chaldal Vegetable Network (CDVN) was formed as a
result of the decision, which works directly with farmers to develop a direct backward linkage
for Chaldal, giving it greater control over the supply chain. CDVN also works with smallholder
merchants across Dhaka, supplying them with products that they would otherwise have to
purchase from wholesale marketplaces like Kawran Bazar. Chaldal Vegetable Network, which
connects producers to retailers directly. Chaldal gains more power in the vegetable supply chain
as a result of CDVN's ability to aggregate demand from smallholder retailers.

Chaldal micro-warehouse-led marketplace business: Most Chaldal users are familiar with the
Chaldal marketplace. It's Chaldal's market-driven grocery store. It is divided into three sections.
One is the Chaldal website, where you can place an order. Two, micro-warehouse that enables
online marketplace business. Three, logistics that enable Chaldal to deliver goods at the doorstep
of customers.
Chaldal describes its micro-warehouse, which powers the Chaldal marketplace, as a separate
thing within the Chaldal system. If it does not have to pay for its technology, the company claims
that its micro-warehouse model is profitable. In the future, the organization has immense plans
for micro-warehouses.
With efforts such as the Chaldal Vegetable Network and logistical operations Go Go Bangla,
Chaldal has expanded its platform beyond the marketplace and micro-warehouse model, firmly
establishing itself into the supermarket supply chain.
Today, the company operates 12 micro-warehouses throughout Dhaka and a 30,000-square-foot
mothership warehouse, with outstanding order growth. Chaldal has established micro-
warehouses throughout the city with the goal of improving delivery speed, logistical efficiency,
and reducing cost. Chaldal collects products from all the trusted producers, manufacturers,
wholesalers and importers. This mother warehouse has been launched to bring an incredible
change in the E-commerce industry in Bangladesh.

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Strategic investment in Cookups:
Cookups, an online home-cooked food delivery business, gets a strategic investment by Chaldal.
Cookups interacts with women who manage modest home micro-kitchens and sell home-cooked
food to businesses and consumers. Chaldal will be able to get new clients for both CDVN and
the Chaldal marketplace as a result of the strategic move. Chaldal is able to sell products to both
Cookups clients and home cooks.

Rohingya Camp: Empowering refugees:

Chaldal's current focus is the Rohingya Camp, where the company is a supplier to the World
Food Program. It is in charge of various WFP distribution centers. While the World Food
Programme is the company's primary customer, it also works directly with 26,000-30,000
families. These families go to Chaldal distribution locations to get food. Chaldal is in
responsibility of the supply chain and backward linkage for this. According to the organization,
the refugee camp operation is the third-largest pillar of Chalddal's current operations.

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Competitors of Chaldal: Finding time to buy groceries is quite hard and also have to bear in
mind the hustle to go to the store and also carrying it back to home is tough. So chaldal.com is the first e-
commerce platform that sells grocery items online. It is one of the best ways to make peoples life a little bit
easier by delivering groceries to home. People have a lot of things to be worry about than just thinking of
what grocery items can buy. Online businesses are a huge help in terms of making peoples life easier and
time saving.

Shwapno is one of the big competitors of chaldal.com. As it sells grocery to everything and it is
one of the biggest departmental store businesses in Bangladesh. It has gained peoples trust from
a long back and now has over hundreds of stores nationally. It has a big family of loyal
customers and now also they are selling their goods online with home delivery.

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Agora is another big competitor of chaldal.com and also doing businesses from a long time back
and still have the trust of the customers. People can trust what items can be found there and the
staffs are really helping in terms of people finding their products. That is why it is another big
departmental store that has a lot of chains around the country and is thriving the grocery market.
They have also started doing business online because it is the future for businesses to have an
option for the customers.

MeenaClick is a cornerstone of Bangladesh’s thriving e-commerce sector, building upon the

capabilities and reputation of Meena Bazar, one of the largest retail chains in the country. With a
diverse range of product offerings, a committed 90 minutes home delivery service, cashless
payment facilities, 8 favorable delivery slots, send products as a gift option, dedicated 365 days’
call centre operations and the best support from delivery partners, MeenaClick is prioritizing
customer needs and assuring the indisputable quality of service.

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Khaas food, in addition to Chadal.com, is another online grocery store. Khaas food, which
began as a grocery store, has always been about providing people with pure and fresh food to
consume. Khaas food's major purpose is to teach people how to eat nutritious foods. The
website is well-designed and simple to navigate. The top menu's Products option will show you a
variety of healthy products. You can select that option to learn more about them. Honey, food,
dry fish, fruits, and juice are just a few of the items that are frequently available for purchase.
Pure Ghee and a variety of other grocery goods are available. There are also many spices and
organic teas to choose from. Khaas cuisine includes a special area for Ramadan products.

There are a lot of competitors of chaldal.com nowadays. Back in the beginning there were not
that many other platforms where people can go online to buy grocery items. Dokani.com is a
new comer in online grocery store and has been competing in this market for a while. Another is
ghorebazar.com which has made quite a name in Bangladesh and is becoming bigger day by
day. Foodpanda, pathao food, shohozfood, hungrynaki have also started delivering greoceries
to the people of Bangladesh and have taken a part in this market. And also there are many online
stores like chaldal.com doing the same business and their will be more businesses like this in the
future. So, for chaldal.com there are a lot competitors for it and is still trying their best to be the
market leader.

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There was no competition when chaldal.com first started out, but now numerous well-known
businesses are giving it a run for its money. Many potential contestants are seeking for an
opportunity to compete. The market is small, and the customers may be able to be counted. The
more competitors who enter the market, the more market share is distributed. Opening an online
shop is not difficult, as many firms are doing it, and it does not require a large investment.
However, because chaldl.com has its own farm and farmers, as well as a delivery system and low
pricing policy, it is giving current competitors a tough time and acting as an entry barrier. For a
potential competitor, covering that up with the amount of merchandise chaldal.com has is
challenging.

There are few more barriers for new entrants:

 Brand loyalty: Brand loyalty is when a customer is loyal to the company. Loyal
customers trust the company’s products and buys from only them. So, to stay in business
for a long a time creating brand loyalty is really important. Chaldal.com is known for
their trust and loyalty. Comparing to all the online businesses of groceries chaldal.com is
in the number 1 among all companies as the most trusted brand.

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Reasons why customers are loyal to chaldal:

 They provide the best quality goods that they can offer to their customers.
 They understand what customers want and give them the best service possible and keep in
mind the feedback after delivering the food.
 Some products cannot be found in many places in the city but chaldal can provide their
customers with that product.
 They provide great deals so that people are more eager to buy from them and they also set
their prices low in some products.
 They advertise their products good enough to attract more customers and to stay in touch
with the customers.

So above all they try to make their customers as happy and satisfied as they can so that they can
sell their trust and people be loyal to their brand.

 Government regulations: While this obstacle isn't particularly substantial, it could be

regarded. Because starting a new firm necessitates adhering to specific government laws.
Furthermore, selling food items necessitates additional laws. As a business to be running
smoothly it needs to follow government regulations carefully. As in the covid-19
lockdown chaldal has provided people with their groceries while maintaining government
instructions to avoid the spreading of the virus. They always ensure their customers are
getting hygienic and organic fresh products.

 Capital requirements: Groceries, for example, are not always easy to resell. It is
necessary to purchase and store inventories. We can't always guarantee grocery
availability in the market, and the difference between our promised price and the current
market's offering price won't be preserved. As a result, a huge number of inventories
must be saved. And preserving a huge number of supermarket items necessitates a unique
working environment that is difficult to achieve. As a result, putting together this much
capital acts as a barrier to future entrants.

 Economies of scale: When a company's production becomes more efficient, it benefits

from economies of scale. Expanding output and lowering expenses are two ways to attain
economies of scale. This happens because costs are spread among a larger number of
commodities. There is no need for chaldal.com to have a physical location. Furthermore,

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 by growing their own crops and vegetables, they remain one step ahead of their
opponents. And now they are delivering things in a more cost-effective manner than
others, allowing them to offer a low delivery fee. Some products are found in
chaldal.com that are nowhere to be found of.
 Customer switching costs are cheap when it comes to online shopping because
customers don't have to go anywhere and can verify and submit their orders from the
comfort of their own home. However, devoted customers will never want to change.
Chaldal.com's service satisfies customers, and they do not want to switch in order to
maintain that commitment. Chaldal wants people to not have the hustle to buy groceries
from the long working day. They want to have the trust of customers and want to satisfy
them as to their best ability.

 Demand condition: As the world's population grows, it's more important than ever to
serve it. And, more importantly, food is required for survival. However, because the
population of Dhaka is currently more than planned, there is no chance of increased
product demand until consumers transfer inside companies. As a result, there is no
increase in industrial demand. Because demand is reasonably stable and not growing
rapidly, it will act as an entry barrier. Existing customers must be considered as target
customers for Cause Potential, as they are already being served by existing businesses.

Also, consumer have first chosen brand. Suppose consumer will choose shwapno,
meenabazaar and chaldal first. If they don’t find these companies then they will look for
alternative. As long as they can find these companies serving, they won’t go to any other
companies.

 Exit barriers: Exit barriers are affected by a variety of circumstances. Emotional and
financial factors may play a role. If exit barriers remain high, the company will continue
to operate even if it is losing money.

 The website chaldal.com is valuable, but they may not be able to sell it for that price
because the name has a real impact and will not be marketed abroad.
 Any other company could not utilize the app or the website for any other reason.
 The fixed cost is high since chaldal.com has a farm where they cultivate their own food
and employ farmers; employees are committed to the company, thus emotional
attachment is high, which creates an exit barrier.

 Buyer’s power: In a market with a high product price and a small target market, the
buyer has greater power than the vendor. If an industry has many sellers but few
customers, the buyers will have more purchasing power and will be able to offer a better
deal. However, in this market, the buyer has no pricing power. Because the price and
quality of a product are nearly identical from one rival to the next, the customer in this
business does not have much bargaining power.

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 The merchandise sold by chaldal.com is not pricey per piece or per lot. Despite the fact
that there are multiple sellers in the market, the number of buyers is enormous, which is
the most crucial factor in the buyer's lack of bargaining power. However, there are some
advantages for business buyers.
Chaldal.com's products is not expensive per piece or per lot. Despite the fact that there
are various sellers on the market, there are a large number of buyers, which is the most
important aspect in the buyer's lack of bargaining power. There are, nevertheless, some
benefits for corporate buyers. They do, however, have some negotiating power. They are
given free shipping and discounts since they purchase a significant number of items.

 Supplier’s power: In this industry, supplier has the major power, in terms of choosing
price, promotions and offer etc. Suppliers are the one who provide the goods to the
company in bulk so that the consumers can buy their desired products. In order to do
business, the company needs to have good connection with the suppliers so that they can
compete with the competitors.

 As chaldal.com is mainly selling vegetable products and in terms of buying

vegetables consumers don’t seek for substitutes
 Though buyer has the power to switch, but still they rely mostly on service that is
provided by chaldal.com.
 Chaldal.com has the power of changing price.

In online vegetable market the number of companies is 5/6. So still supplier has the power in
terms of modifying price.

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E-Business in Chaldal: E-Business (electronic business) is any process that a business
organization conducts over a computer-mediated network. Business organizations include any
for-profit, governmental, or nonprofit entity. Their processes include production-, customer-, and
internal- or management-focused business processes.
When Chaldal.com launched in Dhaka eight years ago, it first picked up orders from local grocery
stores. But most retailers in the city are very small and Chaldal.com was unable to guarantee
items would be available for its customers. As a result, it decided to start building its own network
of warehouses. Now the company says it is the country’s second-largest grocery player and the
largest grocery e-commerce platform, with 27 warehouses located in four cities. Receiving orders
from buyers online and delivering products to buyers very quickly has been a great success. They
do not charge for delivery of goods. And this gives the company an advantage over all other
competitor

E-BUSINESS MODEL

Chaldal follows two E-business models:

 Business to Consumer Model: Through this model Chaldal.com receives orders directly
from their buyers. If the buyer feels the need for a product, they order directly through the
website created by Chaldal.com, and Chaldal.com ensures that buyers receive their
products through their automated system.

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  Business to Business Model: Business to business is another model of Chaldal. In this
model they sell product for intermediate seller in huge quantity. After that the
intermediate seller sell their product for final consumers.

Management process of e-business: However, e-business can attract buyers very quickly. But
this is very difficult to do business management. Here you have to constantly think about the
preferences of the buyers, think of different ways to attract the buyers, be aware of what steps the
competitors are taking.

E-Business revenue model:

Chaldal.com is one of the top online E-commerce businesses in Bangladesh. The company is
averaging more than 600 deliveries a day in Dhaka city. They are constantly increasing their
operation in different area of Dhaka city. For an E-commerce business revenue model plays an
important role. To maintain operation efficiently every E-commerce business needs a potential
revenue model. Chaldal.com generate their revenue in different way. Details of their revenue
model is given below:

 Sales Bases Revenue Model: Chaldal.com follows sales-based revenue model. the
company makes money by selling different types of house fold products and services to
customer. They are also selling groceries product. Customers can browse the site or use
their search engine to find desired products, then add them to customers shopping cart
and click on place order. By selling various company’s product, they receive a percentage
from all sells.

 Own Product: Chaldal.com sells some of their products. They directly manage these
products from first party, who are producing and manufacturing these products. For
example, Eggs and Vegetables. As Chaldal.com buying these products directly from first
party and selling them to their customers, they generate good amount of revenue from
these sells.
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  Advertising Revenue:

 Sponsored Content: In Chaldal.com website, each product category has a sponsored

section. Vendors or independent advertisers pay a certain amount of fee to get sponsored
in a section. The sponsored content can also be shown in search results within their
website. Chaldal.com can get extra charge from vendors and advertisers to get their
products featured in the sponsored section including the homage, search results and each
category page.

 Sponsored Email: Chaldal.com also generate revenue from sponsored email. Email
marketing is one of the best ways to promote any product or services. Chaldal.com
charging money to adverts placement in newsletter or delivering a separate email on
behalf of the advertisers.

E-business platform/infrastructure:

E-business applications are online applications that can be used or utilized to perform a specific
task for organizations. Basic e-business applications give an organization a path to connect with
the customer on the web or perform particular tasks to reach customer needs. Similarly, Chaldal
also uses specific E-business applications with data mining techniques to utilize the information
gathered and provide the customers with the smoothest experience to improve the business
relationship. As a platform, Chaldal has both website and a mobile application. Below is the E-
business application that Chaldal uses to interact and gather information to know about their
customers.

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  Customer Relationship Management: It is the procedure of managing and analyzing its
interaction with its customers. The business relationship can be improved, achieving
customer loyalty, and a good spread of words. As a platform, Chaldal.com has its website
divided and categorized with detailed information making online shopping the most
convenient and easy way of shopping. Their service of delivering products within 1 hour
steals the spotlight even their refund policy proves that they are more of a customer
orientated organization. Customer help and hotlines are always available, adding that a
confirmation call for order makes shopping safer. This represents how Chaldal.com
performs CRM as a tool to achieve its aims.

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  Enterprise Resource Planning: It is a procedure that organizations use with the help of
ERP (Enterprise Resource Planning) software to integrate or combine specific processes
of the organization with running or operating using a particular system. Here
Chaldal.com uses an ERP (Enterprise Resource Planning) software known as Magento,
popular software that makes Chaldal’s website as convenient as possible with a hassle-
free checkout experience. Their helpline options and quick chat makes it more easy and
friendly.

E-business application service: Chaldal.com Company has launched its own website to receive
orders from buyers. Where demand-driven products are easily available. For mobile users,
Chaldal.com company has created useful apps for mobile use. So that buyers can order from
their used mobile phones in a very short time.

Chaldal.com Company has arranged apps for the buyers as well as the delivery men. Through
which the delivery man can know the details of the products ordered by the buyers, the place of
delivery, price etc.

It uses for e-business application internet: In Chaldal.com For all modes of communication,
they use the internet and all of their business applications and software are designed on the basis
of internet communication protocol. Chaldal.com Company accepts all types of local and
international banking cards for transactions. Such as: Visa Card, Master Card, Debit Card, Credit
Card etc. The company also offers cash on delivery facility which is offered by every online
store in Bangladesh.

Chaldal.com getting featured as best E-Business of 2017: Chaldal.com is proud to announce

that, as a popular online grocery site in Bangladesh, it received awards as best e-business of
2017, among the best entrepreneurs of Bangladesh. Chaldal.com aimed to reduce the hassle of
grocery shopping by saving time for the Dhaka residents, and established the e-store in 2013. As
customers do not have to visit to the shops and they can also buy their necessaries by using
computer or smart phone which saves valuable time. And thus, Chaldal.com gives the customer’s
a huge convenience. Chaldal.com has so far received many orders during this time. Shoppers can
just click and place orders. Just using the technology for delivering the grocery products,
Chaldal.com was awarded as “Best E-business of 2017.” Finance Minister Abul Maal Abdul

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Muhith handed over the prizes to Zia Ashraf, Chief Executive Officer. Chaldal.com has already
taken many steps to make customer service more advanced and enriched. In the last years,
Chaldal.com gained a lot of growth and hoping this will continue in the upcoming years. Also,
unwaveringly believes that, by using

technology Chaldal.com can improve the futurity of Bangladesh. Moreover, Chaldal.com

believes to continue to invest its effort in pushing the boundaries of the technologies.
Daily Star offers this award to encourage entrepreneurs working on information and
communication technologies nationwide and to encourage their activities. Finance Minister Abul
Maal Abdul Muhith was present as the chief guest and Junaid Ahmed Palak was Present as a
Special Guest at the program. ICT has shown in the country’s overall success. And Chaldal.com
will continue to add more to this sector in the future that is the expectation of everyone.

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Consumer buying behavior towards online shopping: Online shopping
was invented in pioneered in 1979 by entrepreneur Michael Aldrich in the United Kingdom.
Aldrich was able to connect a modified domestic television to a real-time multi-user transaction
processing computer via a telephone line. The system was marketed in 1980 and offered as
business-to-business systems that were then sold in the UK, Ireland, and Spain. 

COVID-19 has great impact on

global marketing as well as on
consumers behavior and attitude. In
Bangladesh, the effect of COVID-19
also brought some major changes in
consumers lifestyle, purchasing and
consumption pattern. People are now
avoiding in-store purchase and
looking for alternative channel of
product sources. The purpose of the
study is to explore the factors
influencing the rapid growth of online shopping during COVID 19 pandemic time in Dhaka City,
Bangladesh. Retail marketing of Dhaka city has been significantly narrowed due to unexpected
lockdown and restriction on human movement. Therefore, change in buying behavior of
consumers is comprehended due to the influence of COVID 19. The factors those are
encouraging consumers to go for online shopping and to ensure contactless purchase and
payment are examined in this research. Specifically, the research explores how mass consumers
of Dhaka city preferred online shopping over in-store purchase during this pandemic. A
structured questionnaire was used to collect data from September 15, 2020 to October 29, 2020.
Data was collected from 154 Bangladeshi online consumers who live in Dhaka city through
Google form. Judgmental sampling technique was used to select the sample. Descriptive
statistics analysis and principal component factor analysis were used to analyze the data. Result
of this research revealed that online shopping by the mass consumers has increased significantly

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during the pandemic time. After conducting principal component factor analysis, it is found that
three major factors labeled as Benefits of Online Shopping, Technological Supports and
Convenience influenced consumers of Dhaka city to go for online shopping. Among these
factors, the first factor which is Benefits of Online Shopping found the most significant factor to
explain the rapid acceptance of online shopping by the consumers of Dhaka city. This study has
some implications for online marketers regarding e-marketing strategies and importance of
online retail marketing.

Consumer changed purchasing behavior due to covid-19:

Consumer attitudes, intentions, and purchasing behaviors changed substantially as a result of the
COVID-19 outbreak. Globalization—the connectivity of markets and countries—and its
unparalleled coverage by traditional and digital media made this global disaster stand out.

The world is facing historic challenges as a result of the COVID-19 pandemic, for which no
preparation has been made. The COVID-19 epidemic has prompted significant changes in
consumer habits all across the world as a result of the inescapable economic crisis, which has
forced the closure of several trade and industrial enterprises. Because of the pandemic's

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infectious nature, it has caused significant changes in consumer purchasing and consuming
behavior as a result of lockdown, social distance, and worry about the future. The impact of a
pandemic epidemic on consumer purchasing and consuming behavior in a developing country
like Bangladesh was explored in this study. People enjoy going inside stores to look around, pick
up items, and converse with the employees. Because many of them have elected to shop from
home to avoid becoming infected with the virus, they are more inclined to order food by phone.
In this economic downturn, e-commerce businesses offer a fresh opportunity to make money.
People were no longer buying non-essential things; therefore, 90 percent of e-commerce stores
couldn't generate as much money as they used to. Buyers place more than 30,000 orders a day.
Most of the order come from Dhaka and its surroundings area. Chaldal. Com made 200 percent
more money with a conversion rate of 150.as per it is coveted period and people are no longer
able to get out of their homes but they need groceries as their daily demand and buyers of
chaldal.com are increasing day by day.

Challenges and opportunities created due to COVID-19: Because of the

coronavirus outbreak, not only Bangladesh, but practically every country in the world is on
lockdown. Ecommerce businesses are also facing difficulties as a result of transportation
restrictions and consumer fears of being infected by delivery men. Chaldal.com is a supermarket
retail e-commerce site. Before the pandemic, businesses like Direct Fresh, Khass Food, and
Meena Click were booming. They got a huge number of orders during the initial stages of
lockdown, and it took them more than one day to deliver the merchandise in some situations.
The number of deliveries on the online grocery market place is increasing by double digits,
according to the market insider. The number of orders placed by Chaldal’s on a daily basis is
expanding at an exponential rate.

Opportunities created by COVID 19:

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 In Bangladesh, the business closures and lockdowns exacerbated existing food insecurity and
caused previously secure middle- income households to become vulnerable to poverty and
malnutrition for the 1st time, as the largest e-grocer in Bangladesh. Even through you don’t.t need
to leave the house to be elected, you still need to buy food to keep alive. In a lockdown situation,
you may be able to buy food keep alive.
Retailers rose to the occasion, not only by encouraging more online purchases, but also by
embracing developing technology that allowed them to engage with customers and improve their
customer experience.
New product categories that are on the rise:
The second week of March 2020 saw a surge in grocery ecommerce. "The supermarket
ecommerce environment in North America accelerated by three to five years in a matter of
months," noted McKinsey experts, who also gave the following data:
During the peak of the pandemic, 20-30% of company shifted online.
By the end of 2020, online grocery penetration had reached 9-12 percent.
Walmart's digital grocery business expanded in 2021, and e-marketer predicts they'll outsell
Amazon in that category this year, thanks to the broad expansion of product categories buyers
are likely to order from online merchants.

Coronavirus-friendly fulfillment:

While some customers opted for digital shopping, others took advantage of new or extended
pick-up or delivery options at their local stores.

Third-party delivery providers like Instructor joined with grocery stores to expedite delivery
services, while food delivery companies like Door Dash and Uber Eats began to include grocery
delivery as well, thanks in part to grocery stores allowing online sales.

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Challenges created by COVID 19: As the coronavirus outbreak spreads across the
globe, many governments are implementing non-therapeutic preventive measures such as travel
bans, remote office operations, country lockdown, and, most crucially, social isolation. However,
in Bangladesh, a lower-middle-income country with one of the world's densest populations, these
efforts meet obstacles. In many parts of the country, social distance is difficult, and
implementing mitigating measures with the country's limited resources would be extremely
tough. On a local level, mobile sanitization facilities, temporary quarantine sites, and healthcare
facilities could assist limit the pandemic's impact. With international aid and timely, supportive,
and empathic engagement between the government, citizens, and health specialists, the country
can reduce the pandemic's impact.

Some challenges created by COVID 19:

 Social Distancing Protocol is Tough to Maintain in Many Areas of Bangladesh

 Inadequacy of COVID-19 Testing Facilities
 Mitigation Measures to Fight COVID-19 With Limited Resources
 Coping With Mental Stress Due to COVID-19

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Future of chaldal: When Chalda.com initially opened its doors in Dhaka eight years ago,
it took orders from local grocery stores. However, because the majority of stores in the city are
small, Chaldal was unable to ensure that things will be available for its clients. As a result, it
decided to start constructing its own warehouse network.
Chaldal.com is also branching out into other sectors, such as collaborating with the World Meal
Programmed in the Rohingya refugee camp, making a strategic investment in home food
delivery startup Cockups, and rebranding its marketplace technology as Chaldal.com Systems.
Chaldal.com has witnessed significant growth in product acceptance and sales as a consequence
of its product innovation efforts, and has expanded its product offerings across the full grocery
shopping stack. The organization now distributes over 10,000 orders per day. With projects like
Chaldal Vegetable Network and logistical operations Go Go Bangla, Chaldal.com has expanded
its platform beyond the marketplace and micro-warehouse model and firmly integrated itself
within the grocery supply chain. People from chaldal.com work together as a team of more than
1200 people. Some 200 people work in Jessore.
"When we first started, Instacart was still the dominating approach," co-founder and CEO
Waseem Alim told TechCrunch. "But we took a different stand and stated we want to distribute
from our own warehouses because that leads to better inventory control." Chaldal.com is
developing a set of enterprises that will allow customers to buy groceries at a lower cost and
enhance Bangladesh's whole grocery supply chain. From working directly with farmers to
working with smallholder retailers to micro-warehousing and shipping, these companies handle
it all. Mr. waseem says,” we are probably the largest employer in any government high teach
park at this point.” we have been able to get best people in Jessore to work for us.

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Conclusion: Chaldal is the first online grocery store of Bangladesh and now it is the most
popular online grocery store in Dhaka City. They provide their services in the whole Dhaka city
and that makes them most popular. They focus on providing services to mass people. Anyone in
Dhaka can get their product within one hour after ordering from their website and that is the
reason, they get huge numbers of orders regularly which is a great benefit for them. Nowadays,
people are very busy and don’t have much time to go to a shop physically and buy products. It is
also very tiring for people to go grocery shopping after doing their daily work. And that’s why
Chaldal targets those customers by providing fresh and chemical free products to their doorsteps.
They try their best to maintain their quality of products, especially ensuring that vegetables,
fruits, meat and fish would deliver fresh to the customers.
In the coming future, the people of Bangladesh will get used to online shopping and there will be
a great opportunity for online stores in Bangladesh. It has a very good potential to grow in future.

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Recommendation:

 Delivery process: we know chaldal’s delivery process is online dependent. Because their
entire business is focused on the internet, chaldal.com. Com improves their delivery
system using the most recent security system. So that everything can be delivered to the
buyer in timer.

 E-business Management: Chaldal.com can improve their internal and external

management system with a proper hierarchy.

 Reword for repeat purchase behavior: chaldal.com can arrange offers on their page at
some times. Those who buy from here all the time can be arranged different types of
rewards.

 Expanding Business: chaldal.com expands their business outside Dhaka like Chittagong,
sylhet, Rangpur etc.

 Security system: chaldal.com a must have a high-quality system because the whole
system depends on online. Therefore, it is necessary to have high quality internet
facilities at all times and its security system should be update by experienced people.

 Packet filter: packet filtering mechanisms identify the source, destination and filter the
flowing traffic. This should be used wireless networks in warehouse.

 Firewall: Firewall is a system or a collection of components placed between two

networks to insulate a private network from a public network. Only the authorized traffic
defined by chaldal’s security policy will be allowed to pass through the firewall. This will
be very much helpful for them to protect their network.

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References:

(Book) Marketing Management, Philip Kotler and Kevin Lane Keller; 15th edition,
Pearson Education

Mohammadruhulkader (2020). How Chaldal Works: Unpacking Chaldal’s Scope,

Operation, and Strategy - Future Startup. [online] Available at:
https://futurestartup.com/2020/07/23/a-chaldal-insider-story [Accessed 19 Apr. 2022].

Chaldal. (n.d.). Chaldal Online Grocery Shopping and Delivery in Bangladesh | Buy

fresh food items, personal care, baby products and more. [online] Available at:
https://chaldal.com/

Wikipedia. (2021). Chaldal.com. [online] Available at:

https://en.wikipedia.org/wiki/Chaldal.com.

The Business Standard. (2022). The Chaldal story: They dreamt of serving 30 orders a
day. Now they are eyeing one lakh daily orders. [online] Available at:
https://www.tbsnews.net/features/panorama/chaldal-story-they-dreamt-serving-30-orders-
day-now-they-are-eyeing-one-lakh-daily [Accessed 19 Apr. 2022].

www.youtube.com. (n.d.). কনভিনিয়েন্স মানে চালডাল. [online] Available at:

https://www.youtube.com/watch?v=DPXg18YUG0s [Accessed 19 Apr. 2022].
‌
Coursehero.com. (2022). [online] Available at:
https://www.coursehero.com/file/p53aags/Requirement-30-E-business-Platform-and-
Infrastructure-31-E-Business-Application/ [Accessed 19 Apr. 2022].

ResearchGate. (n.d.). (PDF) Factors influencing the rapid growth of online shopping

during covid-19 pandemic time in Dhaka City, Bangladesh. [online] Available at:
https://www.researchgate.net/publication/353447848_Factors_influencing_the_rapid_gro
wth_of_online_shopping_during_covid-19_pandemic_time_in_Dhaka_City_Bangladesh
[Accessed 19 Apr. 2022].
‌Mohammad Anisur Rahman, Md. Aminul Islam, Bushra Humyra Esha and Sujan
Chakravorty (2018). Consumer buying behavior towards online shopping: An empirical
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 study on Dhaka City, Bangladesh. [online] ResearchGate. Available at:
https://www.researchgate.net/publication/327349424_Consumer_buying_behavior_towar
ds_online_shopping_An_empirical_study_on_Dhaka_City_Bangladesh.

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