Business Plan KADS: The Online Grocery Store

 

NAME: the online grocery store KADS (Knock At Door Service)

CATEGORY: service

TARGET CUSTOMERS:  everyone with an internet access and/or smart phone.

 

1)   PROBLEM-OPPORTUNITY-NEED

o   Purchasing everyday consumer products is a time consuming and tiring task

ü  Worsening traffic conditions

ü  Busy lifestyles

ü  Frequently recurring tasks

o   Large consumer market can be targeted using the internet and Smartphone

o   Lack of service providers supplying groceries with fast delivery.

2)   SOLUTION

A company that offers the following services

o   Selection of items to be purchased through a website or a mobile app

o   Fast delivery (approximately 1hr) of selected items at your door steps

o   Delayed delivery at time of your choice

o   Flexible payment options: Online or Cash on Delivery

o   Competitive prices

3)   A PRACTICAL SCENARIO

• A working person with a 9am-6pm job has to bring groceries on his way back from office.
• Option 1: The Traditional Way
• Option 2: KADS 

4)   KADS VS RETAIL OUTLETS

o   Expensive shop front property is not required

o   Can be operated through a warehouse situated at a location where property is less expensive

o   No need to maintain air conditioned and appealing outlet

o   Less number of staff required as opposed to retails outlets

o   Easy to Outsource products in case they are out of stock

o   Delivery costs will balance the extra costs of retail outlets hence competitive pricing is possible

o   Area of coverage can be increased sequentially

5)   ANALYSIS OF THE MARKET AND CUSTOMERS

o   Rapid increase in the target customers due to the proliferation of smart phones

o   Shopping for groceries is perpetual requirement of every household

o   Lack of competition from similar services

o   Monopoly of large retail chains

o   Tendency of customers to resist change

6)   VISION STATEMENT

 “KADS will change the concept of online shopping and will entertain its customers with best ever shopping experience where everything is available at their doorsteps within least time possible and they can order the things from the place where they want to order.”

7)   MISSION STATEMENT

KADS’ mission is to provide daily household items to our targeted customers. Delivery time will be much less than other online services. It could be run with lesser staff than a traditional grocery store. Growth rate of the business can be easily controlled. This service will have online payment facility (by debit card, credit card etc.) as well as cash on delivery. Smart phone users can order through android app which will be freely available on Google Play Store. In this option, the payment can be made through their cell phone credit.

8)   BUSINESS CONCEPT

Today everyone is busy in his hectic routine. Nobody has enough time to go to super store or any other local grocery store to buy daily house-hold items. But we will spend our time to save their time. This service will provide each and every thing at the door of target customers within minimum possible time. This service is known for its unique idea. No doubt there are a many services promising the same thing. Conventional online services target a large area and consequently have longer delivery time. But the one point which differentiates this service from others is TIME. This service will be introduced gradually in different areas and will provide very fast delivery times. KADS promises to provide items at doorsteps in an average time of 2 hours (depending on the location of destination). Other online grocery stores require at least 24 hours for delivery.

9)   NEED FOR THIS BUSINESS 

o   People now a days lead a busy lifestyle where time is money. This service can enable the clients to save time

o   Traffic issues are experienced in most parts of the city especially in rush hours. As buying groceries is a frequent occurrence in every household, clients can avoid the hassle of traffic by ordering online

o   The service will enable the clients to buy groceries at the most competitive prices from the comfort of their house or office and have those delivered in the time that it would take them to buy them from a conventional store

o   The advent of Smartphone’s has brought access to modern technology to the masses. This business will exploit the Smartphone and internet technology

 

10)  NATURE OF COMPANY

This company will be initiated by 5 members holding equal shares. The next step is the advertising of the company and expansion of business which requires funding and sponsorships. For that, investors will be required. So the shares will be equally dissolved by some percentage.

11:MARKETING TOOLS

Price: offering products at reasonable prices and also provides gifts/discounts

Place:  products - different manufacturer to its online website/portal and then delivers directly at the doorstep of customers under KADS policy..

Promotion: advertisements - various webportals, facebook (new marketing technique)

12:SWOT ANALYSIS

Strengths:

ü  High safety measures in-terms of security

ü  realistic modes of Payment

ü  Diverse well-known products in spices category

Weaknesses:

ü  small profit limits

ü  Operates in few categories

OPPORTUNITIES:

         •    increasing E-commerce sales
        •    growth in internet leads to more customers

 Threats:

         •    protection issue
         •    Increase in online retailers efficiently and effectively positioned itself on the top of customers mind

               It provides user friendly interface, easy navigation etc through which it gained customer satisfaction

13) FINANCIAL MANAGEMENT -1

For this business, costly property is not required. There is no cost of maintaining air-conditioned halls for the clients like in a traditional grocery store. This service can even be started by taking a small room at rent.

14) FINANCIAL MANAGEMENT -2

• The initial investment of KADS will be a warehouse of about 5 Marla located near any populated area of city.
• This warehouse will be used as storage of grocery items and will not be visited by our customers. (Cost: approx. 30k-rupees for renting the property) 
• One person will be hired as a web-developer (initial salary:20k rupees) 
• Three persons will be hired for delivery (initial salary: 12k rupees each) 
• Three bikes will be arranged (cost: 1.5 lac rupees)  Getting the rights of website and web-server allotment (cost: 2k rupees) 
• Maintenance charges of about 10k-20k rupees per month

15)CONTROLS:

In the first 3 months we will realize either we should go with this project or retaliate it. Its not easy to run a new business. In start u face many complications that may leads to your business in downfall but you have to select a target market and make / implement a strategic rules/ policy that occur in complex situation.

I am sure that this business “KADS” first time we are introducing in the whole world well its unique and if we give time, energy than we may get better result in favor of its success and if it success than we will further move with it

 

 

 

 

 

 

 

 

 

 

 

 

 

THANK YOU!

(I HOPE YOU LIKE IT) !