3M Basket App, Grocery Shopping and Delivery, Grocery Mobile App, (SILICONE VALLEY, STATE OF CALIFORNIA)
Table of Contents
II.Optimized Delivery Services
Market Analysis and Competitor Analysis
Operations & Required Resource
Concept Overview
The online availability of grocery’s tuffs is increasing. This industry is immense and is continuously growing through all measures. Grocery and retail distribution services and companies have routinely appeared and some have achieved considerable success with their delivery solutions on demand. Two industry leaders include grocery companies Instacart, which operates in 40 U.S. States and Shipt, which operate in over 257 cities. Amazon has recently announced a two-hour free supply for prime customers of Whole grocery products in several US cities and intends to expand this company in the near future. In more than 800 shops, Walmart Grocery Delivery will now be available and 800 more in 2019.
Following the trend our concept is to create a mobile app where user can sort their desired grocery items to make a purchase online and accordingly the delivery will be made at their door-step, there will be grocery items from three different stores to increase choice and variety for the customer so that they can search their required items, compare the items, and then select according to their choice and need, upon proceeding to the cart the app will ask them the personal details ( name, address, contact ) and then will proceed towards payments, after receiving the item the delivery will be made according the item and store they have purchased from, the app will be integrated with the three grocery stores, these stores can list their products along with quantity available and price so that the shelf can be managed according to the sale and supply, while surfing for grocery items the user will be asked to look into their desired store from the set of three and then accordingly one of our shopper will collect the items and will deliver the items at given address
Market Need
More than ever today everyone is looking for solutions, such as money or time, to save its resources, to manage its everyday routine. Care for several homework problems could be quite stressful, so state-of-the-art technology can help with this. People enjoy grocery shopping apps; such platforms showcase grocery shopping lists to get required stuff. People with no shopping opportunities will happily be able to enjoy online grocery applications. For those who cannot pick up what they order from the supermarket, grocery shopping apps with delivery options will be indispensable, these services are so popular. Statistics show 79% of purchasers use their mobile phones for shopping. 39% of all eCommerce transactions took place via smartphone during holidays in 2018. 80% of customers use mobile devices, search item ratings, compare prices, and look for other shops in the near vicinity. Today, some 10 billion mobile-connected active devices are available, mobile phones are taking control over a number of activities related to the user, self-smart and user-centered operating versions are allowing the business to practice online, moreover, this current pandemic gives it a boom according to the survey currently about 90% business worldwide are thinking to shift on digital. In our business idea, we have two types of customers
1- The buyer (customers that buy grocery items)
2- The seller (the grocery stores that have to sell grocery items)
people having a busy routine, some found grocery shopping an unpleasant routine, moreover, they are used to practices many purchases online through their cell phone, and in a current given situation it is their need, so by creating this mobile app we are going to solve a number of issues users are facing moreover we will provide them a pleasant experience of grocery shopping, some of the key benefits listed below
1- The app will save the time of the customer
2- The app will provide the customer with more variety
3- The app will provide price comparisons
4- User will have a guaranteed quality product
From seller end
Rapid transformation from physical to digital has created a competition for each business sector to survive each segment have to focus on digital sector to experience their products and services on, we are designing a platform for grocery stores to help them to showcase their products to reach to a bigger audience with ease, key benefits stores will have
1- 24/7 sales
2- Competitive advantage
3- A wider audience
4- Online presence
5- Customer satisfaction
6- Sales forecast
7- Inventory plan
About the Solutions (Digital App)
We will design a mobile app for both android and iOS where stores can create their online presence to showcase their grocery items and deals, customers can see, sort and purchase those items after creating their personal accounts.
1- A customer creates a list of groceries and pays.
2- A personal shopper gets this order and collects the groceries.
3- The shopper pays the bill on the behalf of customer.
4- The shopper delivers these products to the customer.
Any business prosperity, including a grocery one, is characterized with an app presence (or absence), in our case, a grocery one. Designing a decent shopping and delivery service is the way to succeed. Simply remember that with every passing year the number of online shoppers is increasing considerably.
App features
1. Easy registration
The signup process will be easy and quick, Registration via social media link is now common. Our registration process also includes this feature. Additional options include e-mail identification and mobile number. Once registered through the social media Shopping list
The app will save the record of the recent searches of the customer to facilitate the customer in
the next purchase
2. Ability to track spending
To track and save the records of the spending made by the customer to give him useful insights to maintain and plan their budgets
3. Grocery update reminders
Based on the uses previous consumption history the app will track the customer's inventory to give the remainders about the items that are going to end
4. Coupons and loyalty programs
To offer special discounts to loyal customers based on the monthly spending
5. Basket on Hold
If the customer doesn't want to buy the product after searching and to save it for later buying, a quick list can help the customer in this process. The customer can save these things here for future use. This function can contain various options such as a favorite list, scanned barcode list, a recording list, etc.
6. Search
Through this feature, users can select things from the app for convenience. In order to make it easy for users to find a preferred product quicker in the list, the app will have filters of various kinds.
7. Basket Tracking
Effective GPS tracking feature will provide the ease for the customer to track their orders, this will increase customer satisfaction as well as will provide more convenience
8. Delivery scheduler
This feature will help the customer to schedule their delivery, for example upon check out a customer wants to add a specific time and date in which He/She wants to receive the order they can plan it through the delivery scheduler
9. Quick reorder or repeat order
This feature will allow the App to save the previous history of purchase based on that it can forecast as well as suggest what to buy while going for a next purchase
10. Push notifications
To send constant updates about new offers or new products. Push notifications serve this purpose.
11. Recommended products
You have experienced on many sites even on google the feature of “similar searches” in suggestions this feature will help customer to browse with more convenience for similar products, this feature will assist as well as urge our customers for purchasing relevant products
12. Payment Options
The secure multiple payment options will include card payment, cash on delivery, or mobile wallet. This will make the purchase easy for them as per their convenience. Multiple options will be integrated with the app to provide multiple payment options to the customer
13. Share shopping lists
This feature will allow the user to share the shopping lists with other users. By this the customers can share it with other family members to know if anything extra is to be added to the list.
14. Price comparison
The price comparison feature will enable customers to quickly know what other brands are priced at for similar products. This will help them compare the prices for similar items instead of going back and forth on the complete page.
15. 17. Reward points
Rewards points will be added to the customers’ accounts each time they purchase through our app this help customer retaining as well as customer loyalty
16. Advance Scheduling
This feature will help the customers to schedule their purchases for daily, weekly to monthly basis, for example, a customer need following items ( fresh vegetables, fruits, juices, milk, bread, and eggs ) on daily basis, He/She can create a basket based on these items and will schedule it with daily option along with selected timings and delivery will be made accordingly on daily basis
17. Optimized Delivery Services
We have 5 years’ experience in logistics and 10 years of experience in engineering services combine these two and with the help of required outsourced resources, we have designed the plan for Optimized Delivery Services With the Digital Dispatch, Smart Journey plans, Real-time route optimization and proof of delivery feature, manage the delivery cycle in a much more effective way.
Market Analysis and Competitor Analysis
In 2019 more than one in five adults will use a grocery app for the order of grocery at least once a month, according to a recent eMarketer prediction. This is almost 23 million men, up 25%.
More than 30 million adults will use an application to buy groceries before 2022. The company is also claiming. Patricia Orsini, the senior analyst at the eMarketing firm, said that sales in onliner groceries account for only 2.8% of all U.S. e-commerce sales.
Instacart now offers easy checkout, a revision of its "tipping" and service fee to make it much more clear for customers, and now has more than $1.5 billion. My favorite company Shipt puts customer service first and aims to match shoppers with the same company who picks grocery and delivers it for every order – an immense bonus for building a partnership.
Today many retailers want to remove the broker to provide the distribution service to secure the relationship of the shopper. A study says that grocery stuffs do not need to advertise their apps as heavily as they only need to let people know they do exist. This could be as easy to use as a one-time discount.
The report notes that with evolving technology and with retailers adding more features, there are also possibilities in-store that will increase the use of apps such as personalized products, pricing and locating, and probably even mobile check-outs. In between, applications can also be used as pre-planned shopping and/or checking coupons in advance, using an application before going to the store.
3M Universe
Our target market will be areas within a radius of 20km surrounding these five stores we are going to the partnership with
a) COSTCO
b) SAFEWAY
c) WALMART
d) TARGET
e) SPROUTS
The 20km of area around these five stores covers the almost 10,000 households, mostly profession is IT, goes for grocery shopping twice in a month, very useful to online grocery shopping and about 90% use Instacart for this purpose
According to our short market survey with a population of 100 participants, we have gathered some insights to configure the potential gaps and issues users are facing with existing platforms
There were 100 participants included in our short market survey 40% were men and 60% women, age between 30 to 50 mostly working in the sector of IT and Business, through our designed survey we have asked following information from these participants
1) How often you go for groceries?
80% of the participant says they go for grocery shopping twice in a month 10% say thrice in a month and 10% do not follow any regular routine
2) What stores you prefer for grocery shopping?
a. COSTCO ____ 20%
b. SAFEWAY____10%
c. WALMART___30%
d. TARGET______20%
e. SPROUTS_____20%
3) Have you experienced online grocery shopping?
100% answered in Yes in current given situations especially
4) Name the App/Web you have purchased online groceries
Instacart _____40%
Doordash_____20%
uber eat______25%
Others_______15%
5) How was your experience with these online platforms please rate?
a. User-friendly – easy to use
b. Affordable
c. Product Quality
d. Seller communication
e. Delivery
6) Any Issues you faced with online grocery shopping?
1. weak customer support
2. shopper does not care about quality
3. late delivery
4. shopper does not care about quality
7) Any features you wish to add in online grocery platforms?
1. track shopper online
2. daily update items
3. discounts coupons
SWOT ANALYSIS
strengths | Weaknesses |
· We are able to respond very quickly as we have no red tape and no need for higher management approval · We are able to give really good customer care as the current small amount of work means we have plenty of time to devote to customers · We can change direction quickly if we find that our marketing is not working · We have low overheads so we can offer good value to the customer · Due to COVD19 business is transforming from physical to digital and there is a huge acceptance which increases our chances to be the customer priority over physical · People are already used to online purchases in each category so it will not be an unknown experience for them to fear from · | · Market giants like Instacart and shipt are holding the market which creates barriers for new entrants · Relatively to the other famous apps we are new with no brand name · Diverse market with diverse needs will be challenging to satisfy each type · Our market has little market presence · We have a small staff with a shallow skills base in many areas · we are vulnerable to vital staff being sick or leaving · our cash flow will be unreliable In the early stages
|
Opportunities | Threats |
· Our business sector is expanding with many future opportunities for success · Local government wants to encourage local business · People are having a busy routine which minimizing the opportunities to go for groceries on a weekly and semi-weekly basis · The market is diverse so do the user needs which provides the opportunity to new entrants to understand the customer and fulfill their needs · People are having higher purchasing power for them time matters more this is another factor which gives us strength
| · Development in technology may change this market beyond our ability to adapt · A small change in the focus of a large competitor might wipe out any market position we achieve
|
Marketing Strategy
To create awareness about our app among our targeted segments we will consider following marketing strategies,
Community-Based Marketing
We will consider the option to market the product based on our relationship’s community gatherings, talking with others, family seminars, and especially will focus to increase words of mouth marketing
Collaboration with Stores
As we will have collaboration with stores so we will insist them to for instore branding to our mobile app, also we will push store sale teams for signups on our mobile app by offering them some reward in return of signups
Social Media Marketing
Using the power of social media to promote the app is the most effective segment of digital marketing. Social media provide very powerful tools to get the exact audience of the required niche. We will post unique content and graphics on social media for effective social media marketing. By posting unique content highlights our app and makes it catch the eye of the customer among our competition. given social media insights, statistics suggest us to go with the channels that have a higher level of usage among age 30 and above because our survey results tell us this is the age group who mostly held responsible for grocery purchasing
Search engine optimization (SEO) | YouTube |
is an important component in gaining visibility online on a local level. SEO comes down to being 100% efficient with your website and your voice in order to be visible in the pages of the search when people are conducting local search queries. Search engine optimization will build power and influence to your website over time giving your website a great deal of SEO power and ranking abilities. There are many different areas where your grocery store can and should be listed online to gain local SEO power online. Launching PR is also an important part of SEO that will help you gain strength in your community.
| YouTube’s usage by gender leans more towards men with: 78% of men using YouTube, 68% of women using YouTube, the breakdown of demographics by age include: · 90% of 18–24-year old use YouTube · 93% of 25–30-year old use YouTube · 87% of 30–49-year old use YouTube · 70% of 50–64-year old use YouTube · 38% of 65+-year-old use YouTube
|
Facebook | LinkedIn |
Except for those aged 65 and older, the majority of Americans in different age groups use Facebook. However, it’s important to note that usage among teens has dropped in favor of YouTube, Instagram, and Snapchat. The network also leans more towards women with 75% of women and 63% of men using the platform. The breakdown of demographics by age include: · 51% of 13–17-year olds use Facebook · 76% of 18–24-year olds use Facebook · 84% of 25–30-year olds use Facebook · 79% of 30–49-year olds use Facebook · 68% of 50–64-year olds use Facebook · 46% of 65+-year-olds use Facebook
| Because above-given statistics of social media usage showed that by age group LinkedIn and is preferable to advertise your product to the industry professionals, furthermore we know that Linked n’s target market is corporate professionals so this channel will be the best choice for Plan C, the breakdown of demographics by age include: · 17% of 18–24-year old use LinkedIn · 44% of 25–30-year old use LinkedIn · 37% of 30–49-year old use LinkedIn · 24% of 50–64-year old use LinkedIn · 11% of 65+-year-old use LinkedIn
|
Operations & Required Resource
Here is a list of operation that will be involved to run this startup
Fixed Asset Requirement
1- Office
2- IT equipment
Human Resources Details
a. Software engineer
The software engineer will be responsible to maintain and update the stocks and to ensure the smoothness of the app to configure possible errors and for bug fixing
b. Order Taker
A resource will be required to take orders from the app and to notify the relevant shopper about the required items and other details
c. Office boy
Responsible to maintain the office stuff
d. Delivery Boy
The shopper who will respond to purchase required items to make deliveries at customers' doorstep
e. Project Manager
The person who will be responsible to supervise overall operations
Execution
Following phases will be the path in the execution of this project start with business registration to web and app development then testing and soft launch and final will be setting up the office and hiring the required resource to get into the market
Phase
| Task | Duration | Cost |
Phase 1 | Documentation / Registration | 2 weeks | -- |
Phase 2 | Website & App Development | 8 weeks | -- |
Phase 3 | Testing and Soft Launch | 2 weeks | -- |
Phase 4 | Office setting & Team Hiring | 2 weeks | -- |
Financials
COST ANALYSIS
| Category | Resource | Quantity | Estimated Cost | Duration | Total | Sub- Total |
| Fixed Asset | Office | 1 | $200 | 12 | $2,400 | |
| IT equipments/ laptop | 3 | $2,000 | 1 | $6,000 | ||
| Office Furniture | 1 | $2,000 | 1 | $2,000 | $11,600 | |
| Stationry | 1 | $100 | 12 | $1,200 | ||
| Human Resource | Software Engineer | 1 | $400 | 12 | $4,800 | |
| Shoppers /Delivery Boy | 2 | $400 | 12 | $9,600 | ||
| Office Boy | 1 | $300 | 12 | $3,600 | $34,800 | |
| Order Taker | 1 | $400 | 12 | $4,800 | ||
| Project Supervisor | 1 | $600 | 12 | $7,200 | ||
| Marketing Executive | 1 | $400 | 12 | $4,800 | ||
| Marketing | Brochures | 1 | $100 | 4 | $400 | |
| 1 | $100 | 12 | $1,200 | $3,800 | ||
| Youtube | 1 | $100 | 12 | $1,200 | ||
| SEO | 1 | $1,000 | 1 | $1,000 | ||
| Development | Web Development | 1 | $3,000 | 1 | $3,000 | |
| Mobile App Development | 2 | $4,000 | 1 | $8,000 | $15,000 | |
| Animation ads | 2 | $1,000 | 2 | $4,000 | ||
| Company Registration and Trademark | ||||||
| $1,000 | ||||||
| Compnay Name | 1 | $1,000 | 1 | $1,000 | ||
| Utilities / Fuel | Utilities | 3 | $100 | 12 | $3,600 | $5,087 |
| Fuel | 1487 | $1 | 0 | $1,487 | ||
| Total Estimated Cost / Year 1 | ||||||
| $71,287 |
SALES FORECAST
| Month | 1 | Month | 2 | Month | 3 | Month | 4 | ||||||||||||
| Orders | Average order price | Earning % | Orders | Average order price | Earning % | Orders | Avarage order price | Earning % | Orders | Avarage order price | Earning % | ||||||||
| 20 | 540 | 1.50% | Customer End | 26 | 540 | 1.50% | Customer End | 34 | 540 | 1.50% | Customer End | 44 | 540 | 1.50% | Customer End | ||||
| Sale | Revenue | 3.50% | Store End | Sale | Revenue | 3.50% | Store End | Sale | Revenue | 3.50% | Store End | Sale | Revenue | 3.50% | Store End | ||||
| 10800 | 162 | 14040 | 210.6 | 18252 | 273.78 | 23727.6 | 355.914 | ||||||||||||
| 378 | 491.4 | 638.82 | 830.466 | ||||||||||||||||
| Total Revenue | Total Revenue | Total Revenue | Total Revenue | ||||||||||||||||
| 540 | 702 | 912.6 | 1186.38 | ||||||||||||||||
| Month | 5 | Month | 6 | Month | 7 | Month | 8 | ||||||||||||
| Orders | Average order price | Earning % | Orders | Average order price | Earning % | Orders | Avarage order price | Earning % | Orders | Avarage order price | Earning % | ||||||||
| 57 | 540 | 1.50% | Customer End | 74 | 540 | 1.50% | Customer End | 97 | 540 | 1.50% | Customer End | 125 | 540 | 1.50% | Customer End | ||||
| Sale | Revenue | 3.50% | Store End | Sale | Revenue | 3.50% | Store End | Sale | Revenue | 3.50% | Store End | Sale | Revenue | 3.50% | Store End | ||||
| 30845.88 | 462.6882 | 40099.644 | 601.49466 | 52129.5372 | 781.943058 | 67768.3984 | 1016.525975 | ||||||||||||
| 1079.6058 | 1403.48754 | 1824.5338 | 2371.893943 | ||||||||||||||||
| Total Revenue | Total Revenue | Total Revenue | Total Revenue | ||||||||||||||||
| 1542.294 | 2004.9822 | 2606.47686 | 3388.419918 | ||||||||||||||||
| Month | 9 | Month | 10 | Month | 11 | Month | 12 | ||||||||||||
| Orders | Average order price | Earning % | Orders | Average order price | Earning % | Orders | Avarage order price | Earning % | Orders | Avarage order price | Earning % | ||||||||
| 163 | 540 | 1.50% | Customer End | 212 | 540 | 1.50% | Customer End | 276 | 540 | 1.50% | Customer End | 358 | 540 | 1.50% | Customer End | ||||
| Sale | Revenue | 3.50% | Store End | Sale | Revenue | 3.50% | Store End | Sale | Revenue | 3.50% | Store End | Sale | Revenue | 3.50% | Store End | ||||
| 88098.91787 | 1321.483768 | 114528.5932 | 1717.928898 | 148887.1712 | 2233.30757 | 193553.323 | 2903.299838 | ||||||||||||
| 3083.462125 | 4008.500763 | 5211.05099 | 6774.366289 | ||||||||||||||||
| Total Revenue | Total Revenue | Total Revenue | Total Revenue | ||||||||||||||||
| 4404.945893 | 5726.429661 | 7444.35856 | 9677.666128 | ||||||||||||||||
| Year 1- Total Calculations | |||||||||||||||||||
| Order Growth Rate | Total Orders | Average Order Price | Earning | % | |||||||||||||||
| 30% | 1487 | 540 | Customer End | 1.50% | |||||||||||||||
| Store End | 3.50% | ||||||||||||||||||
| Total Revenue | Total Cost | Profit | |||||||||||||||||
| 40136.55 | 71286.53901 | -31149.99 | |||||||||||||||||
| Year 2- Total Calculations | |||||||||||||||||||
| Order Growth Rate | Total Orders | Average Order Price | Earning | % | |||||||||||||||
| 20% | 1784 | 540 | Customer End | 1.50% | |||||||||||||||
| Store End | 3.50% | ||||||||||||||||||
| Total Revenue | Total Cost | Profit | |||||||||||||||||
| 97043.44 | 55287 | 41756.90 | |||||||||||||||||
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