1. 1
Table of Contents
Proposal with completed dates……………….……2
Market Research ……………………………….….5
Survey Results………………………………….….6
Key Competitor Analysis……………………….…7
Potential Issues/Suggested Improvements…….…..9
Time and Lifestyle Concerns………………….…..9
Financial Concerns…………………………….....11
Conceptual Concerns……………………………..13
Conclusion………………………………………..16

2. 2
September 30, 2015
Ms. Jena Mielke
President
A-List Food Market
690 Westfield Way
Pewaukee, WI
Dear Jena:
It was a pleasure to meet with you last week. Thank you for the opportunity to consult for A-List
Food Market. A-List Food Market is a unique grocery shopping experience. The goal of A-List
Food Market is to fulfill the huge gap in the grocery market between the traditional stores and
online grocery services. The company is interested in hiring Whitewater Small Business
Consultants (WSBC) to complete market research to figure out who its target market is, send out
a survey to the prospective customers, and assist in providing information that would help get the
business started successfully.
Objective:
To conduct market research, figure out a target market and increase awareness of A-List
Market’s services.
Responsibilities of the client:
● To provide us with a structured outline regarding how to tackle requested services
● To provide us with a list of services rendered
● To provide us with constructive criticism in a timely manner
● To be available for communication with consulting team

3. 3
Task Description Target
Completion
Date
Completion
Date
Phase 1 Market Research 9/30/2015
Industry Research Gathering data to determine the
best target markets
9/30/2015
Identify Identify potential competitors 9/30/2015
Phase 2 Market Analysis and Survey 10/14/2015
Compilation and
Analysis
Look at data retrieved from the
market analysis
10/5/15
Determine biggest competitors 10/7/15
Determine how to be better
than the competition
10/14/15
Survey Review and adjust survey client
has proposed
10/28/15
Hand out survey to potential
customers and/or those in the
target market
11/11/15
Phase 3 Infographic, Survey Results
Survey Results Look at survey results to
determine what needs to be
changed based on information
received
10/21/2015
Infographic Create an infographic based on
results from survey
11/18/2015
Recommendations Create a list of
Recommendations for the client
11/30/2015
Create Presentation Create a visual accompaniment
for the final submission
11/30/2015
Presentation Final meeting and Presentation
to Urban Rescue Market
12/9/2015

4. 4
Project Phases:
The project is divided into three separate phases.
Phase 1:
Market Research - In this phase we will direct our efforts to finding the best target
audience for specific services rendered. We will also identify potential competitors.
Phase 2:
Market Analysis and Survey- In this phase we will compile and analyze the data from
phase 1 to review and edit. In addition, we will distribute the survey our client has for potential
customers.
Phase 3:
Infographic, Survey Results, - In this phase we will analyze survey data and complete an
infographic with that information. In addition, we will create a list of the concepts that the
competition is executing well.
Fees:
$9,000 includes: 120 work hours plus travel fees. To be paid in full upon completion. There will
be a 25 percent down payment required upon acceptance of A-List Market’s proposal. 25 percent
of the total bill will be paid upon completion of each phase.
Please let us know if modifications are needed. Thanks again for the opportunity to work with
you on this project.
Sincerely,
University of Wisconsin-Whitewater Student Consultants
Austin Finn
Amanda Rodgers
Jordan Wileman

5. 5
Market Research
Market research is a key element of putting together a successful business. In essence,
market research is discovering more about the potential customers you have as well as those who
are competing with you for those customers. Through our previous phone conversations with the
client, A-List Food Market, and our own market research we discovered that there are two target
markets. The first is young working professionals. This is a demographic that cares about eating
healthy, staying fit and doesn't have much free time to prepare healthy meals. The second would
be upper middle class who live in urban areas. This market most likely has disposable income,
children to feed and prefer a more personalized experience. Through this report we will discuss
the potential problems that we see this business model facing, the market research we have done
and the customer research we have completed.

6. 6
Survey Results
We took a look at our client’s survey and gave her some suggestions regarding specific
questions. The majority of changes we made, dealt with wording of questions, grammar, and
flow of the survey. We felt that the survey may have been too lengthy for the audience, because
we wanted to make sure we got accurate feedback and limit skipped questions. Based on
conversations we had and several online sources we found that most people are only engaged in
a survey for about five minutes. After this amount of time, questions begin to get skipped or
answered untruthfully. It is estimated that the best length for a survey is somewhere around 10
questions, because it shouldn’t take the audience more than five minutes to complete and a wide
variety of data can still be collected. Due to this research, we took nine questions from our
client’s original survey in which we thought summarized it best. We made sure that the survey
was conceptually the same as the original survey and we looked at the feedback that was
received. The major takeaways from the survey included that most consumers want a focus on
inexpensive and healthy groceries. A large portion of consumers also said they were at least
some level of likeliness to try this type of grocer. The main reason why consumers said they
weren’t willing to try was because they have no issues with the current way they shop. Lastly,
the majority of consumers were interested in pre-ordering recipes and picking them up at the
store or potentially getting them delivered. (Our results to specific questions can be found in our
slide presentation near the end of our report.)

7. 7
Competitive Analysis
Company
Name
Strengths Weaknesses
Aldi
● Generic Product lines only
● Budget friendly
● More efficient shopping/
Easier to maneuver in store
● Shorter lines closer parking
● Employees are paid better
● Not a lot of brand names
● Limited variety of products (30,000 items
traditionally vs 1,400 at Aldi)
● No credit cards accepted
● Smaller sized items at times compared to
regular brands
● Many processed foods/ Not a huge selection
of fresh fruits and meats
● Limited hours of operation
Pick N Save
● Huge variety
● Pharmacy, Bakery, Deli, Alcohol
selection
● Both high-quality and low price
items
● Weekly specials, rewards
program
● Health & Beauty products
● Floral department
● Less customer service than smaller stores
● Lines to check out
● Recipes not openly promoted
● Overwhelming variety
Meijer
● 213 Locations
● Large variety through multiple
industries (food, automotive,
sporting goods, electronics,
gasoline, etc.)
● Buy in bulk options provided
● Most locations open 24/7
● Cleanliness/ Convenient
● Poor customer service reviews
● Food not as fresh as other stores
● More expensive than similar competitors
● Very large stores to navigate

8. 8
Company
Name
Strengths Weaknesses
Sendik’s
● Known for higher end products
● Now eco-friendly with
InSinkErators installed to reduce
food waste
● Opened up a Fresh2GO store
which focused on deli and fresh
foods for health conscious
consumers
● Awarded for outstanding
independent produce,
● Large variety of specialty items
● More personal service
● Can be quite pricey
● Upscale grocer compared to competitors
● Only 12 locations
● Stores are all located in the greater Milwaukee
area making it inconvenient for some shoppers
who may not live there
Trader Joe’s
● Market leader in organic and
fresh food grocers in US
● High pay for employees
● Average store size 8,000-12,000
square ft. and designed to be
modular
● High end supermarket feel
● Customer friendly monthly
newsletter
● Less variety
● Don’t have name brand products
● Small package sizes
● Stores can be small and crowded at peak
hours
Hello Fresh
● Deliver directly to your doorstep
● Products are able to stay fresh in
delivery
● Free shipping
● Vegetarian-only membership
option (cheaper than regular
membership)
● No brick and mortar stores
● Only three recipe options per week

9. 9
Potential Problems/ Suggested Improvements
Time and Lifestyle
In an industry which has many competitors, customer needs, and a continual demand for
improvement, the grocery industry has a lot of potential for success, but also for failure as well.
The grocery industry has a market the size of most of the population, which creates many
different demands that each store must attempt to tailor too. Consumer demands can vary in
selection, quality, price, customer service, customizability, health awareness and countless
others. For these reasons it is very difficult to establish a successful business in this industry.
There are so many big players already and many varied customer demands in which must be
addressed.
The A-List Food Market falls in between a traditional grocery store and an online
delivery grocery service. Due to this, one of the biggest challenges might be the amount of time
that must be spent adjusting to this style of grocer. Many consumers value their time and do not
intend to spend a great deal of their time choosing and purchasing groceries. This could
potentially create an issue for A-List Food Market as consumers must choose from recipes which
change over time. This process may take more time for consumers from start to finish then a
traditional grocery store experience would. Because this is a unique shopping experience it
would take additional time for consumers to find out and adjust to how the process works. Once
consumers understand the process it may not take as much time, however, until then, the entire
process will be much more time consuming for most than the grocery store(s) they currently use.
This leads to the next potential issue of entering into the grocery industry, which is how
likely consumers are to switch from their current stores. Many consumers tend to shop at the
same one or two stores for whatever preferences they have which creates barriers for new

10. 10
entrants to gain a portion of the market. In A-List Food Market’s case, the consumer must not
only choose to switch from their store, they most likely would be choosing the experience as
well. This may appeal to some, however there will always be those consumers who won’t try
anything new because they don’t have any issues with their current experiences. Also, because
A-List Food Market is a unique experience, they will not have as many options/products
available so consumers will likely need to shop at other stores as well to get the products in
which A-List Food Market doesn’t provide. This may create more of a hassle for many
consumers which goes back to being a time issue for this type of experience.
With many different lifestyle trends becoming more popular, it is tough to provide
enough options for every different lifestyle demand. In order to tailor to specialized lifestyle
trends as well as the average consumer, stores must provide a large amount of products and carry
countless brand name options. A-List Food Market may have potential issues providing enough
recipe options for these different lifestyles. NutriFit is an example of a company that does a great
job with custom meals based upon the consumer’s lifestyle. Although A-List Food Market is a
slightly different concept, they must have more custom options if they do want to appeal too
many of those lifestyle trends.
Once A-List Food Market has set up a customer base they may need to provide more
recipe options in order for customers to order more than a few days of meals. Especially for
families, they will demand more of a selection so they won’t have to repeat the same meals
within the same week. If recipes change bi-weekly and families intend to buy enough meals for
the entire week, consumers may need more options or they may go somewhere else to buy
groceries. The pressure to provide more options may drive costs up, however, if it can be done, it
may be very beneficial for customer needs.

11. 11
In today’s day in age where trends are constantly changing and new ones are popping up,
it is extremely important to be aware and adjust to these trends. Being aware of the current trends
around can really help with business’s success if they find ways to appeal to those trends. For A-
List Food Market, which is a unique grocery experience, it may be important to keep an eye on
current trends, especially in the future as they change. Just as trends continue to change so will
consumer demands, which is why it will be extremely important for the A-List Food Market to
make sure they adjust to changes.
Financial
To implement the business model that A-List Food Market is. We feel that there are far
too many start-up and long-term costs than the revenue that can be expected. There are many
expensive long-term obligations, such as rent, and other start-up costs, like fridges and freezers
to store all of perishable items, that will put this business model so far into debt that A-List Food
Market will be forced to increase prices. This will in effect turn away potential customers, who
will just go to a competitor who won’t cost them as much. Starting out at such a disadvantage to
other competitors in the market, will not allow the A-List Food Market to grow at a sustainable
rate.
Suggestions:
● Don’t invest in a long term lease
● Keep large projects to a minimum at the beginning of the business. If the revenues
continue to grow, then you can invest in big ticket items
There are other expensive aspects to this business model as well, such as the constant
food samples that will further force the business to increase prices on customers. We are also not
convinced that there is a need for personal assistants to help customers put together grocery list.

12. 12
Don’t get us wrong, it is important that there be employees, such as cashiers and stockers, to
sustain the business. But we are concerned that a massive staff could make this business model
even more unsustainable.
At the outset of this new business, we are concerned that with so few customers it will be
hard to sell inventory before it expires. If the customer base continues to grow, this shouldn’t be
a problem, but in the very beginning of the company there is likely to be lots of waste and
inefficiency in inventory on hand.
Suggestions:
● Keep staff to a minimum and don’t hire staff to help customers develop grocery
lists
● Try to keep samples to a minimum, so to reduce waste
● Keep a low inventory, at least at the outset, so there isn’t huge waste
Another issue that we found is with the design of the company website. The way that we
understand it, the client would like to customers to be able to go to the website to create a
shopping cart, which can be used for the customer when they come into shop or to have the
groceries ready when the customer comes for pick up. We see a problem with the cost of this
website, because it becomes extremely more expensive with the increased content that the is
placed on the website.
The crux of our concern comes down to whether or not customers continue to come
through the door or if they come at all. It is important to come up with a plan to get the target
market to walk through the door. A-List Food Market then needs to develop a plan that will keep
those customers coming through the door. It is important to also keep the cost of doing business
to a minimum in the beginning, until you know how large the customer base is.

13. 13
Conceptual
While reviewing the business model, there were a few things we ran across that seemed
to be conceptual problems, or perhaps just misunderstandings in need of clearing up. To simplify
these problems would aid the potential consumer as he/she tries to understand the concept, as
well as give them motivation to make a change in the current grocery shopping system they have
implemented.
One problem we discovered with the store is that it only has limited grocery options. This
means that people need to make yet another stop to get all of their items. If you are trying to save
peoples’ time, how do you plan to promote that even though more stops are needed, this concept
and store saves time?
The A-List Food Market is pricier than Wal-Mart and other low cost stores. How will you
get people committed to spending money on groceries at a pricier place when they have to go to
another store anyways to pick up basics and will see the prices of the items they just bought
available at a lower price?
Suggestions:
● Stock more basics including paper products
● Keep costs down with having not all organic options; some people just don’t care
enough to spend that extra money
● Pick a specific target market and only market to them at first. People who have
substantial income don’t typically care about costs for certain items so long as it is
what they need
● By having a specific target market, it guarantees some income and dedicated
people not just people who will try it once or twice to say they did it

14. 14
The concept seems to not clarify whether people get the items themselves or if they have
to wait in the store (if they order in store) while other staff go get the items. Is the goal to have
them purchase juice and coffee while they wait for their items to be gathered? Typically, grocery
shopping is hassle and takes a lot of time. People will not be interested in sitting around watching
their items be gathered. In store ordering seems like a good idea, but it does not save much time,
which is what was mentioned frequently as a store goal.
Suggestions:
● Make online ordering as easy as possible
● Focus on getting people to order online so store pick up is easy and fast
● While it is good to offer options to customize the menu, having too many hoops to
jump through takes longer for the customer and causes frustration
● Pizza Hut has a good website for allowing customization
○ They have limited drop down options, but enough to satisfy the broad
ranges of consumers
What is the purpose of the juice/coffee bar? Juice spoils fast, as do the fresh fruit and
vegetables needed to make the juice. Is the juice made fresh when the customer orders it? People
can be exceptionally picky when it comes to juice. For example, in the orange juice section there
are many kinds: low pulp, some pulp, added vitamin C, no pulp, etc. Is it cost effective to have
the juice bar at all, especially in the beginning?
Coffee does not spoil as fast, but how many consumers will be purchasing coffee from
you? It is available literally everywhere with every store specializing in different types and
sources. Perhaps it is not cost effective.

15. 15
Suggestions:
● To keep costs down, making the investment at the beginning to purchase juicing
materials and coffee roasters, etc. may not be worth it
● See if there is enough interest first before diving into that market
● Make sure consumers will be okay with only a few varieties as that is all you will
be able to make to still be profitable
The model does not seem to clarify if the consumer will be required to cook the food
from scratch such as the Hello Fresh model, or simply reheat already prepared food. It is also
fuzzy on the concept of whether or not the ingredients are already portioned out or if they will
still be in their original packages needing to be measured by the consumer. Hello Fresh is
successful because the ingredients are already perfectly proportioned and there are detailed
instructions on what to do. Other companies that simply require the food to be reheated are
successful because it is a one step process for dinner and there is no measuring or portioning out
involved. How do you intend to blend the two concepts? There is a concern that ingredients that
are unused, if they are perfectly portioned out, will spoil fast, especially if they are chopped up or
removed from their original packaging. If a consumer is purchasing a week’s worth of meals,
how will you ensure that the ingredients stay fresh for the whole week?
Suggestions:
● Create a list of the order to eat the items in that leads the consumer to eat the
fastest spoiling meal first
● Determine if your market wants to cook the meal from scratch or simply reheat a
pre-cooked one
● For those consumers that will not often have time to cook from scratch, offering
pre-cooked meals can be a big hit

16. 16
Amazon Fresh, PeaPod, and many other services offer home delivery. While these
services do not offer a large variety of pre-packaged or prepared meals, they are a convenient
alternative with some selection. How do you plan to compete with such big names? Amazon
Fresh has not made it into the Midwest, but PeaPod is in Milwaukee and all around southeast
Wisconsin.
Suggestions:
● It is important to find key distinguishing characteristics to market to
people
● Focus on specialty products perhaps
● Look into offering delivery within a certain radius
Conclusion
In conclusion, with the aforementioned information, Jena Mielke is now able to make
better informed decisions that will guide that will guide A-List Food Market! Through this
report, we have laid out our market research, the results from our survey, and the research that
we did on potential competitors. Further, we discussed some potential issues that we found with
this business model and some solutions that can be taken to correct them. While we are not the
final arbiters of A-List Food Market’s future, we suggest that Jena take a hard look at our
research, as well as areas of concern and solutions to decide whether or not it is worthwhile to
continue planning for A-List Food Market’s entrance into the grocery market.