Value Proposition The thrust of our idea is that most grocery shoppers in Lagos, Nigeria did not enjoy their shopping experience due to the state our of markets and hence are in a need of an improved shopping experience. Our value proposition is to provide an avenue for improved shopping experience, hygienic and consistent quality for grocery shopping in Lagos.Our Hypothesis 1)Nigerian grocery shoppers mostly who are women did not like their shopping experience and wanted a better shopping experience 2)We hypothesised that shoppers would be willing to pay more for an improved shopping experience. 3)Online shopping and home delivery for groceries was an option they were considering 4)That shoppers would be able to pay 20-50% more of original prices for improved hygiene and better shopping experienceOur ExperimentAn online survey was conducted using www.freeonlinesurveys.com, our questionnaire was hosted at(http://freeonlinesurveys.com/s.asp?sid=nmpfnbyzbnb58ma59496) and our live result of the survey ishosted at (http://freeonlinesurveys.com/app/item-liveresults.asp).
Result of Questionnaire Gender Marital Status 33.30% 28.20% Male Female Single Married 66.70% 71.80% Age Bracket How much worth of grocery do you consume in a week80.00% 71.80%70.00% 82.10%60.00%50.00%40.00%30.00%20.00% 15.40% 10.30% 10.30%10.00% 5.10% 2.60% 2.60% 0.00% 0.00%0.00% 15-25 25-35 35-45 45-55 55-65 N5,000-N10,000 N15,000-N20,000 N1,000-5,000 N10,000-15,000 Others
Result of Questionnaire Where do you currently shop for groceries? How often do you shop for groceries? 46.20% 38.50% 28.20% 30.80% 20.50% 20.50% 12.80% 2.60% 0.00% Local Community Markets Others Twice a Week Once a MonthLocal Specialised Market Specialised Malls Once a Week More than twice a week OthersHow best do you describe your shopping experience? Are you willing to pay for a better shopping experience 53.80% 25.60% Yes 23.10% No 15.40% 5.10% 2.60% Very Stressful Stressful Enjoyable Very Enjoyable Others 74.40%
Result of Questionnaire How much additional are willing to pay for an improved experience? 75.90% 24.10% 0.00% 0.00% 10% of cost 20% of cost 30% of cost OthersDo you think online and home delivery of groceries would work for you. 2.60% Yes 35.90% No Others 61.50%
Interpretation of Questionnaire Results Hypothesis 1 69.7% of respondents stated that their shopping experience was stressful and not enjoyable and just 27.2% of respondents answered that their shopping experience was enjoyable. This validated our initial hypothesis that shopping for groceries in Nigeria is a stressful past time for most shoppers hence validating the need for improved shopping experience for Nigerian grocery shoppers Hypothesis 2 78.8% of the 69.7% of the respondent who said shopping was a stressful experience for are willing to pay more for a better shopping experience hence validating our second hypothesis Hypothesis 3 72.7% of total respondent stated that they are willing to pay more for outsourced purchasing and home delivery of groceries and another 57.6% of total respondent stated that they were online shopping was feasible solution they were considering hence validating our initial hypothesis Hypothesis 4 76.0% of respondent stated that they would only be able to pay 10% of overall cost more for improved shopping experience hence this disproved our initial estimate of 20-50% of overall cost.
Market Share Analysis:Grounds upFood Consumption, a National view High Estimated Market Sizes Value of Total Food Consumption 2010 % QSR and FSR (service component of food consumption) $126B 2011est. -5% $120B 2011est. Source : Nigeria Bureau of Statistic 2010 % food consumed in Agriculture % Agriculture in GDP Nigerias GDP Figure component of GDP 39.49% 80% $194B 2011est. $88B 2011est. % Wholesale & Retail Trade in % food consumption in wholesale GDP & retail trade in GDP 19.87% 60% Source: WWW.TRADINGECONOMICS.COM -| IMF Imported Processed Food including grains Retail Food Import Into Nigeria 10.0% Local unprocessed Food $900M 2011est. 85.5% Source: Steady Growth of Nigerias Retail Food Sector 2011, USDA GAIN report Local Processed Food $9B 2011est. 4% Others 0.5% Low
Market Share Analysis: Lagos Analysis Average Density in Estimated Food Industry Assuming our Mall serves size in Nigeria Metropolitan Lagos is an area of 10 sq. km 20,000 person per sq. km $120B % Consumption in Lagos Assuming an Average Source: Nigeria Bureau of Statistic family size 4 persons 9% 2010 Consumption Report Estimated Food Industry Implies 50, 000 Size in Lagos households within a 10 square km range ~$10BAssuming a consumption Consumption period of 50 pattern of N2,500 per Target Market $417 weeks in a year week i.e.$17 per week million which is equivalent ~4.33% of the Lagos Market Revenue accruable will be $417 million
Zeroing in on our Target Market $120 Billion The available Food market in Nigeria spanning over 36 states. $10 BillionOur Initial servedFood market in Lagos $417 Million Our target market serving households living within 10 sq. km of the Mall