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Team Eclectic #29 Presents "Q-Less"

#wearesquared Module 2 team 29,

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Team Eclectic #29 Presents "Q-Less"

  1. 1. Q-LESS DIGITAL PROPOSAL M2 #29: THE ECLECTIC MIX
  2. 2. Company Purpose Revolutionising the concept of ‘coffee on-the- go’ for both retailers and consumers.
  3. 3. Problem & Solution  Long queues at coffee outlets during peak times.  Lost revenue for retailers whose potential customers don’t have time to buy.  A purchase process which takes too long.  A real-time, cashless geolocation triggered ordering system.  Consumers save precious minutes on their journey.  Retailers fully capitalise on their unit’s revenue potential. The Problem Our Solution
  4. 4. The Product An application using geolocation technology and open source transport data to send an automatic order to the retailer as soon as the customer comes within a certain distance/time of the retail unit. With Q-LESS, you can queue less!
  5. 5. Why Now? Why now? Right now: An average of 30 coffee retailers are opening in the UK each week In the future: Research suggests that by 2025 the UK coffee shop market will exceed 30,000 outlets and £15 billion turnover Every single day: Over 2 million takeaway cups of coffee are purchased in London alone Elsewhere: Competitors are explore ordering technology, but with limited success Review on Apple’s App Store for Starbucks’ app http://www.hospitalityandcateringnews.com/2015/12/booming-uk-coffee-shop-market-heads-30000-outlets/ : http://www.britishcoffeeassociation.org/about_coffee/coffee_facts/ http://metro.co.uk/2014/05/07/want-to-know-more-about-london-25-need-to-know-facts-told-in-numbers-4719600/
  6. 6. Competition Starbucks app allows customers can pre-order and pre-purchase coffee, then skip the queue and collect at the Starbucks most convenient to them. Limited to Starbucks & high cost Traditional way of purchasing coffee by queueing up and waiting without utilising an app. Customers have to queue and can’t pre-pay. High cost. Low cost disposable coffee cups from Azera. Take-away coffee is pre- paid and easy to use. Customers have to bring from home and purchase in advance. Coffee that is brought from a customer’s house, removing the need to purchase coffee on the go. Customers have to bring from home and can’t throw away the cup. Coffee purchased from by vending machine or coffee machine located inside a retail outlet. High cost, potentially low quality and difficult to find.
  7. 7. Competitive Environment High Threat of new Entrants Threat of Substitute Products is High (There’s several alternatives on the market) Low Bargaining Power of Buyers (Coffee Drinkers) High Bargaining Power of Buyers (Suppliers) Intensity of Competition is High
  8. 8. Market size £80bn £7.9bn £237m Total Available Market – Coffees drunk worldwide Service Available Market – Market size of the UK Service Obtainable Market – Independent Coffee shops in the UK http://www.wevio.com/research-and-analysis-articles/global-coffee-industry-facts-statistics-of-2014-2015/ http://www.hospitalityandcateringnews.com/2015/12/booming-uk-coffee-shop-market-heads-30000-outlets/
  9. 9. Business model • Retailers pay a yearly membership fee to join the network Joining fee • Q-LESS charges 10% of the value of successful orders from retailer. Commission • Retailers have the choice to be listed and advertise them in the app. Top Ranking/ads The App is free of charge for end users. Our revenue is mainly generated for the service of the retailers
  10. 10. Revenue Stream a 10% commission We take a 10% commission • Year 1 = £2.7m • Year 2 = £10.9m • Year 3 = £31.9m And a yearly subscription fee from outlets • Year 1 = 1,000 shops • Year 2 = 3,000 shops • Year 3 = 7,000 shops (34% of UK coffee retailers) Plus advertising packages • Average PPC: £2 • £2k minimum spend • ROI: 25%
  11. 11. Financials Funding Annual revenue Yearly ROI breakdown Funding £500,000 Partners*2 £200,000 A loan from bank £300,000 Costs Annual revenue Amount Year 1 £3.4m Year 2 £13m Year 3 £36.4m Annual cost Amount Year 1 £1.3m Year 2 £3.5m Year 3 £9m Annual ROI Amount Year 1 £2m Year 2 £9.4m Year 3 £27.4m
  12. 12. Scalability and growth Year One Total Active Users - 30k Shops - 1000 Total Revenue - £3.4m Year Two Total Active Users - 120k Total Shops - 3000 Revenue - £13m Year Three Total Active Users - 350k Total Shops - 7000 Total Revenue - £36m
  13. 13. Sales, Distribution and Partnership  Print ads  Leaflets at stations  Online banners on train timetable apps  Social media advertising  Testimonial campaigns  Coffee roasters  Equipment rentals  Annual Barista competition  Coffee Bloggers outreach  Email campaigns  Sales team Drive awareness and engagement Drive awareness and acquisition
  14. 14. Q-LESS Team Anne-Luce Sales & Distributor Carl Business Developer Crissie Product Developer Josh Competitive whizz kid Lizzie Commercial developer Selena Financial Maestro Nina Marketing Guru

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#wearesquared Module 2 team 29,

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