Online Grocery Store


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Online Grocery Store

  1. 1. 2013 GROUP # 6 ECOMMERCE 12/9/2013 ONLINE GROCERY.COM
  3. 3. Executive Summary: Brief Description: The™ strategy is to build an impressive shopping website that not only takes the order but also deliver the goods to the doorstep for housewives, working women and everybody who want to avoid the rush of shopping mall, traffic and regular going for the retail shops for their grocery needs. The marketing of the website will build around some core values and offers that the site will propose. We will be competing with our competitors like “ and” by providing several value added services and achieving our customers satisfaction. Brief Profile of the Entrepreneurs: The online business of grocery will be on partnerships and the following six partners contribute their efforts to bring success to this business: Taimur Khan: Taimur khan is a student of Bachelors in Business Administration at Air University Multan Campus. He possesses good leadership skills so he can manage the team with best of his efforts. He is currently running his own hospital. .He has also done internship in Pakistan International Airline . He is currently working with his friend at RaheelaFarooq: Raheela farooq is a student of bachelors in business administration at air university Multan campus. She is very strong nerved and has good skills in managing things. She is very competent and excels in finance. All the classmates ask for her expert advice before submitting any assignment. She is very prudent and is currently working with her brother in his business. She has a vast experience of working in teams and is has done a diploma in English language. RamshaYaqub: Ramsha yaqoob is a student of Bachelors in business administration at Air University Multan campus. She has very good marketing skills and is helping her father in his business. She has a good experience of working in teams and has helped his business administration department by organizing welcome and bonfire. She is also very good in art at art and has a good command on Microsoft excel and Microsoft word. Hira Saeed: Hira Saeed is doing Bachelors in Business Administration from Air University Multan Campus. She has got very good business skills inherited from her father and also works as his assistant in his firm. She has benefited from good support, not just from her family, but from her teachers,
  4. 4. advisors. Being the organizer at many of her university functions, she knows how to organize work and other tasks that ensures profitable and booming eventually. She also says she's got a strong team with her at Air University. She thinks that online store will be a profitable business and generate high revenues and will surely earn first mover advantage in Multan. SarmadNaseerLodhi: Sarmad Naseer Lodhi is a student of Bachelors in Business Administration at Air University Multan Campus. He possesses good leadership skills so he can manage the team with best of his efforts. He is also appointed as a team leader of literary and arts society and knows how to manage dynamic teams. His goal oriented and motivated thinking has induced optimism that that the efforts of his team will surely provide people of Multan quality products. M TahaMasood: M Taha Masood is also the student of Air University Multan Campus. He has been working with many organizations up till now like Makhotay, Burgad Al ilam and Bedari. He proved himself as a good manager and tackles and manages things at ease. He is associated in this business because he thinks that this business will serve the people of Multan in very good and appropriate manner and increase the employment in Multan region. Project Contributions to the Economy: The basis for estimating the economic contribution is the direct value added and employment contributed by capital and labor inputs employed directly by in the provision of its goods and services. These outputs are the retail services offered in the sale of various goods including grocery, staples, frozen meat, dairy products, bakery, and general merchandise. The value added is the most appropriate measure of the economic contribution to GDP. It is the sum of the returns to the primary factors of production – labor and capital – and can be calculated by adding the gross operating surplus and wages paid to employees. This is then combined with a selection of input-output economic multipliers to determine the indirect or flow-on contribution to the economy. The indirect contribution is a measure of the demand for goods and services produced in other sectors of the economy as a result of the direct economic activity of The size of the flow-on activity is determined by the extent of the linkages with other sectors of the economy. In Pakistan’s scenario grocery industry is one of the most dominant industries and the country previous trends show that supermarkets are playing an implicative in country’s economy. The price of food and staples has a day to day impact on consumer’s behavior. Our online business will employ a significant number of workforces and will link to several other businesses like
  5. 5. agriculture, transport, IT and manufacturing businesses. As far as online grocery store is concerned, it will surely be contributing best to Pakistan’s economy. As the literacy rate is very low in Pakistan, people don’t get jobs. But not only there is a problem to adjust uneducated people in employment. Highly educated people are also not getting good jobs, consequently they move to other countries and initially they hired by good firms after sometime side by side they initiate their own business in the same country. In order to facilitate those people in their own country, will hire recent graduates from management and technical colleges and help them in training so they can retain in their country and have opportunity that they can serve their country well which eventually contributes towards the growth of our country GDP. So precisely economic contribution of onlinegrocery.comon economy is measured in terms of: value added which is the contribution to GDP, and includes wages paid to employees and the gross operating surplus generated (including taxes); and Employment which is measured by full-time equivalent jobs. The economic contribution is the sum of the direct and indirect value added by the economic activity undertaken by In addition, there is trade ‘facilitated’ by Marketing Plan Brief Description of “”: will be an online business of selling grocery and other household products that will provide 24/7 service of ordering and delivering products. It will initially operate in Multan. It will be the first of its kinds in Multan. The website has a user friendly design and easily accessible to everyone is Pakistan.The only thing which is required is an internet connection and by lowest possible clicks one will get everything he/she needs at his/her doorstep. There is trend in Pakistan that people usually don’t inform before coming to someone’s house. This makes the hosts sometimes worry what to offer the guests? By our online business, people can order whatever eatable or drinkable when the guests shock them by their sudden appearance and our service fulfills order in an instant and with no time the desired items will reach the house. is an online business that will have a complete range of house hold and house usage products for its customers, from tooth pick to dining table. Users can buy the items from the following categories:
  6. 6. Grocery (Fresh Fruits and Vegetables) Staples (Pulses, Seeds and Grains) Snacks and Confectionary (Biscuits, Crisps, Desserts) Spices Frozen Food (Ready to cook, Fully Cooked) Household (Laundry, Insecticides, Household consumables, Household Cleaners, Dishwashing Bars) Personal Care Baby Care Dry Fruits Meat (Fish, Chicken, Mutton, Beef) Kitchen and Dining Room Accessories. Apart from this the company is also thinking to serve organic grocery and CFC’s free household products in order to provide healthy lifestyle and bring awareness among people about the harms of CFC’s containing products. This strategy will soon be launched after the initial business will launch. Our service will also help people to avoid the stress and hassle of having to drive to the grocery store, circle around the parking lot buying for a parking space, dragging the screaming and restless kids to the store, meandering through the crowded isles while trying to avoid a collision or traffic jam with other shopping carts, standing in a long line at the checkout counter, loading and unloading the car trunk with the groceries while leaving the store and arrive at home. Location: Although the business will be making transactions online but there is an intense need of huge area where the grocery and other items inventory will be placed and also space to locate an office where employees will work day and night with their supervisors and managers to stay connected via internet (website, calls) with their customers and suppliers and ensures quality and innovation. For this purpose the Khan Centre is chosen as best place for both the office and warehouse and store. As Khan Centre is located at Multan Cant, it will be easy to deliver products and orders in all areas of Multan in very less time. It is one of the most convenient places for both office and warehouse. Moreover, it is convenient for the partners of the firm to manage both their studies and business at the same time. The office and warehouse will have the hidden security cameras as well as highly advance security system that will protect against any theft and robbery. Thus, the place is equipped with both security and safety tools.
  7. 7. In the current scenario of Multan there is continuous load shedding. To overcome this issue the standby generators are also placed that ensures continuous supply of the electricity which enables workers and staff to work effectively without any challenge regarding facilities and resources. The office is designed in very effective way. To avoid communication gap there are no cabins rather the concept of open system is kept in mind while making design, which will magnify employer and employee relationship and that chance encounters and conversations on the job promote cooperation and innovation, and our company crafts our floor plans and cultures with this in mind. TEN WORKPLACE DESIGN CONSIDERATIONS has set ten fundamental design elements can positively impact the work place environment and support the work being done: Thermal Comfort and Temperature Access to Nature, Views and Daylight Sensory Change and Variability Color Noise Control Crowding Human Factors and Ergonomics Indoor Air Quality Choice Employee Engagement These considerations while designing a work place will increase employee productivity. Market Area: Market area initially will be Multan. Later on the market is expand to Karachi, Islamabad, Faisalabad,Lahore and other major cities of Pakistan. We are going to target our market geographically and demographically. Working women and single parent will be our customers. Working women, as busy cannot manage to spend lot of time in shopping. So by single click we will serve everything at their doorstep. It is very difficult for single parent to manage both everyday shopping and home. Our first class design and user friendly design are critical to our positioning and that will be fundamental to our future sales. However the core experience for every household have always been better and better design team and the better financing will help our online grocer to grow in market. The online grocers will distinguish itself from its competitor as a full capacity center, rather than just a store front. We will carry on the colorful and extremely well branded design of our company literature and logo. The site will have a
  8. 8. colorful and intelligent design taking the campaign and product art into interactive medium on the web. Traditional marketing practices have been transformed and the old supply chain has changed. Continuing strong growth in business to consumer and business to business is changing fast and has the market scenario is changing continuously with time. New skills knowledge and strategies are in high demand in the business world. As our sevice is new we are going to sell it at a nominal price so we can grow in market and acquire some of the market share. Pricing strategy Pricing strategy usually change as product passes through its life cycle. Two pricing strategies will be used are as follows Market skimming pricing Market penetration pricing From these two strategies we are going to use market penetration pricing strategy. At start we will set low price so that we can gain more market share after gaining market share we are going to increase our price after achieving the task of gaining marketing share we will increase our prices by doing so we can achieve following benefits . It creates cost reduction and cost control pressure from the start as sales volume increases and lead to greater efficiency. We will also offering discounts for new buyers and those who are interested in buying in bulks and also it varies from buyer for big marts huge stores we have big discount and for small stores it differs. We are also giving seasonal discount as well. On eid and Ramzan we will be giving special discount so that the buyers will have additional benefits and will retain.We use marketing research to understand customer satisfaction and purchasing behavior which helps us to assess market potential and market share or to measure the effectiveness of pricing, product, and distribution and promotion activities. Main Customers: As discussed earlier our major customers will be housewives and working women. Housewives in a manner, they are busy in their everyday work that they don’t prefer to leave the house work and go for shopping. Similarly, working women can gain advantage of our service by sitting in their offices and get access to our site and order the desired grocery and household usage products. Online grocery will also launch its application on Google play. Consumers can download it free on their mobiles and by using the application they can also give orders by connecting to internet.
  9. 9. Similarly, students living in hostels can also take advantage of our service by ordering things in simple and easy way. Total Demand: Total demand of online grocer will be high in Multan because it is first ever business in Multan. The businesses like this are now operating in Lahore and Karachi as doorstep and To raise more demand of customers needs to sustain the quality of products rather bring innovative changes in the website design and strategies. Sales Forecast: As far as sales are consider, trends of supermarket in Pakistan shows that super markets generate more revenue. But if supermarket goes online it will be generating more revenues and thus the sales will be more and opportunity that the company will be profitable. In today’s world people prefer comfort and convenience over other things. Therefore, if consumers are sitting in their homes and offices and getting comfort by sitting on their own place and get what they want. Marketing Strategy: Following Marketing Strategies will be used: Advertisements: All sorts of mediums will be used for advertisements, like print media, podcasts, broachers, bill boards. Once the customer awareness will be created the following will be done for customers to gain customers and build strong positing of the Discount Coupons Membership cards Bulk discounts Gifts on high purchase. SWOT Analysis: SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors.
  10. 10. STRENGTHS: It includes internal capabilities, resources and positive situational factors that may help the company to serve its customers and achieve its objectives.  has best quality products.  Ensures hygienic and salubrious product supply  Prices will be feasible  Availability of all the products  Almost no competitors (in Multan) WEAKNESS: It includes internal limitations and negative situational factors that may interfere with the company’s performance.  will be first served in Multan. In order to expand the business in other cities the company needs to bring innovative strategies to meet the competitive edge.  Its promotion and positioning is very difficult, because people still believes that the online selling and retailing is a deceit. OPPORTUNITIES: These are favorable factors or trends in the external environment that the company may be able to exploit to its advantage.  Currently there is no online grocery business, its great opportunity to capture the market.  Increasing demand.  Growing trend of using readymade products.  In today’s health conscious society, we are introducing health base product.  Profit margin will good. THREATS:  These are unfavorable external factors or trends that may present challenges to performance.  Entry of upcoming rivals.  Change in government policies such as taxes, rules, etc.  Lack of resources  Failure of product is possible if people don’t buy it.  Change in consumer’s demand.  Changing technology.
  11. 11.  Increase in rate of inputs. CONCLUSION OF SWOT ANALYSIS: The strengths and opportunities of outweigh the weaknesses and threats therefore the has a long way to go supported by extensive promotion and advertising to create demand and position. In modern era product innovation is becoming necessary for the organization because of the globalization people are becoming aware about the changes being taken place around then so inorder to handlesituation the company focused on product innovation by introducing a new servicesof which also includes innovation to make healthy living. Production Process: The grocery products like vegetables and fruits will get directly from farms and ensures freshness and health. Staples will be bought directly from suppliers who bought staples from renowned factories and are clean. Other confectionary items will be made by highly professional bakers with good quality measures. Other products like spices, eatables and drinkables will be purchased from the suppliers and wholesalers. Organization Structure: Organization will consist of Chief executive officers followed by Chief marketing officer. He used to make all strategic plans. Under him there are three managers who report the chief marketing officer; they are like Sales Managers, Advertising Manager and Promotion. Sales manager is take control over the sales department of marketing section. He uses to generate the report regarding sales in particular time period. Advertising and promotion manager use to look over the main part that play big role in doing the marketing of any Buzzing Bee product in different markets.