1. The Supermarket Age Challenge Proposition
brought to you by LUX team
26 November 2015

2. Sources: ONS
BUSINESS OVERVIEW
1 2
3
~ 33
y.o.
50+ less
profitable
less priority to elderly
people
Problem overview
LACK OF
SERVICE
LACK OF
FACILITY
• no personal assistance
• not friendly
• not age-friendly
equipment and layout
£34,800,000,000
22%
30%
38%
1961 2015 2065
55+ y.o. population growth
8p.p.
AWARE. CARE. SHARE
low-
cost
To provide superior shopping
experience by focusing on age-friendly
facilities and services
£21m

3. 142
495
142
89
175
41
128
38
23
44
22
65
23
12
24
Dundee
Edinburgh
Blackpool
Birkenhead
Southend
Southend
Birkenhead
Blackpool
Edinburgh
Dundee
TOP-5 cities with highest aging
population density (×1000)
Total population
50-69 y.o.
70+ y.o.
Edinburgh has the highest
population density
Sources:
MARKET OPPORTUNITY
1 2
50+ UK
population
23.2M
36%
50+ Edinburgh
population
192,695
39%
Target
Audience
13,500
7%
% of total UK
population
% of Edinburgh
population
% of 50+ Edinburgh
population
Estimated target audience
192,695 70% 10% £1,580
50+
Edinburgh
population
people
who do
shopping
forecasted
market
share
annual
grocery
spent
× × ×
£21,270,000
3 Estimated sales revenue

4. Primary Audience: 50+ Urban Dwellers
Sources: Social Security Bullitin, Later Life in the UK, 2015
CUSTOMER PROFILE
Potential Audiences
What do they spend money on?
1 Food (at home/away)
2 Alcohol/Tobacco
3 Household goods
4 Miscellaneous (incl. presents and pet food)
5 Services
PHYSICAL HEALTH
37% eat recommended
amount of vegetables
66%W
85%M
are obese/
overweight 32% have poor eyesight/
hearing/speech
What do they struggle with?
MENTAL HEALTH
60% experience age
discrimination
suffer from
depression
28%M
28%W
18%
live
alone
Family & Friends
Disabled
Wellness Fans

5. …to older customers and others.
CARE
COMMUNITY
• Helpful Ambassadors
• In-store nutritionist
• Health corner
• Massage corner
• Beauty corner
• Café
• Events and festivals
• Helpful workshops
Sources:
THE PRODUCT
A supermarket “Ol’ Chap” which delivers...
Parking places
Special Bus
Navigation
Magnifying glass
Help buttons
Wider aisles
Anti-slip floors
Customized trolleys
Adjusted lighting
Easy delivery
Proper shelving
Raised platforms
50%
15%
5% 5%
10%

6. MARKETING STRATEGY
• Product Line Pricing
• Loyalty Discount
(membership
pricing)
Channels
• Evangelism
• Direct mail
• Event
• Magazine
• Newspaper ads
• Online
Public Relation
• Partnership
• Near hospital
• Near age &
health institution
• Near competitor
Sources: https://thenounproject.com/search/?q=marketing+startegy

7. Janitor
Finance
Director
ClerkCashier
Optician
Store Manager
Pharmacist
Health
Counsellor
Floor
Assistant Cashier
Barista
Waiter
Chef Sous chef
Café Manager
Chief Executive Officer
Operation
Director
Human Resource
Director
Sales & Marketing
Director
ORGANISATIONAL STRUCTURE
AWARE. CARE. SHARE
1. Multi-skilled
2. Flexibility
3. Reliability
(quality control)

8. • Help to develop
• Freshest
products
• Make use of
UK`s leading
edge food
manufacturing
industry
Sustainability
Relationship Focus
Quality Control
Just In Time Product
Sources：Aldi home page; M&S home page; Gurdian News, 2014; IGD,2010;
VERTICAL CHANNEL & PARTNERSHIP
Supply chain Partnership
55%local
brands 45%foreign
brands
characters:
• Maintenance of
low costs
• Diversification
of product
range
Benefits:
NHS1
Holland
&Barrett
4Age UK3
Networking
More convenient services
Discounts / Promotions
Customers’ loyalty
Pharma2

9. FINANCIAL OVERVIEW
10
15
20
25
30
7500 10000 12500 15000 17500
# of customers
Revenue Costs
13,000
Break-even analysis
1
Sales, £ 000,000
21.27
32.35
43.28
0.8%
1.2%
1.6%1.0%
1.5%
2.0%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
10
20
30
40
50
1 2 3
Sales Revenue PAT (%) EBIT (%)
Sales, £ 000,000 EBIT (%), PAT (%)
Forecasted revenue
2
Year after launch

10. Considered Options
Angel
Investor
Venture
Capital
Grants/
Subsidies
24%
19%
19%
8%
8%
22%
£3.75m
CAPITAL REQUIREMENTS & FINANCING
Cost of
facility
Others
Starting
inventory
Rent
Salary Age-friendly
customisation

11. Sources:
BARRIERS TO ENTRY
3
Competition
Capital Intensity
Life Cycle Stage (Mature)
Technology Change
Concentration
Regulation and Policy
Barriers to entry in this industry are medium
High
Low

12. EXPANSION PLAN
Establish franchising
Start to open own new shops
2017
JF MA MJ JA SO ND
Search for partners
Organise promotional events
Move to the office
Hire additional stuff
Buy 2 buses as property
Launch / update taxi service
2018
JF MA MJ JA SO ND
2019
JF MA MJ JA SO ND
Launch beauty saloon

13. Players
Facilities Services
1 2 3 4 5 6 7 8 9 10 11 12 13 1 2 3 4 5 6 7
Ol’
Chap
√ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √
Kaiser √ √ √ √ √ √ √ √ √ √
Tesco √ √ √ √ √ √ √ √ √ √ √ √
1. Age-friendly optimized parking places
2. Bus
3. Age-friendly optimized navigation
4. Magnifying glasses on several points
5. Floor Assistant Help buttons
6. Wider aisles
7. Anti-slip floors
8. Age-friendly optimized
trolleys
9. Adjusted lighting
10. Easy delivery service
11. Optimized shelving
12. Raised platforms
13. Age-friendly sign
Sources: http://www.dailymail.co.uk/news/article-1050195/Tesco-reveals-Britains-pensioner-friendly-supermarket--magnifying-glasses-seats-trolleys.html
COMPETITIVE ANALYSIS
Facilities
1. Escorted shopping service
2. In-store nutritionist
3. Health corner
4. Massage corner
5. Café
6. Events and festivals
7. Community workshops
Services

14. SUPPLIERS
NHS
AGE UK
PROVIDING
SUPERIOR
SHOPPING
EXPERIENCE BY
FOCUSING ON
AGE-FRIENDLY
FACILITIES AND
SERVICES
50+ URBAN
DWELLERS
FAMILY&FRIENDS
DISABLED
WELLNESS FANS
SUPERMAR
KET SALES
SERVICES
WORKFORCE
CONNECTIONS
FINANCES
VALUES
AWARE.
CARE.
SHARE.
WORD OF
MOUTH
EVENTS
MAIL
KEY PARTNERS KEY ACTIVITIES
KEY RESOURCES
VALUE PROPOSITION
CUSTOMER
RELATIONSHIPS
CUSTOMER SEGMENT
PROMOTION
CHANNELS
COST REVENUE
£21,270,000£3,747,500
IN A NUTSHELL (BUSINESS MODEL)

15. THANK YOU FOR YOUR ATTENTION
ANAIS ANAIS
WENYANG MIN
PRITHIV GHOSAL
DMITRII ISHUTIN
ADLEY LEE JING CHAN
VIKTORIIA ANDRUKHNENKO