Startup idea: Online grocerystore(India) Our startup idea is E-Z grocery (e-tailer for Groceries ). Groceries form a major chunk of sales in retail markets and these are unorganized mom and pop shops run by family members in India. And now with the growth in working urban couples, internet friendly shoppers, rising disposable incomes and rising ecommerce reliability, times are changing. There are quite a few benefits of shopping online for groceries. Working/Busy customers can save time in terms of commuting, waiting in long queues at billing counter.
Executive Summary With the busy lives that most of us lead these days, anything that saves time is a boon. e-z grocery is a fantastic and extremely convenient way to shop groceries. We provide a free home delivery service which saves you on wasting your precious time in traffic snarls, browsing through the product lines, payment queues . Imagine all the things you could do with all the time saved, like spending quality time with the kids, or perhaps even catching the movie you have been meaning to see. We also have a huge variety of products line up which a normal brick-mortar grocery wouldnt house. We are very customer obsessed and believe in providing the best service.
Personal Story We (Harshad, Rachit, Neha, Varun and Mihir), obviously want to become entrepreneurs and it is this quest that brought all of us together through this technology entrepreneurship course. We are young and talented bunch of people who really want to make difference in peoples lives. Our team is a nice blend of experience, fresh blood, tech savvy and domain experts
Marketing1.Website first2.Social Media marketing3.Local search engine optimization4.Blog writing and marketing5.Weekly newsletter6.Geo targets7.Chain marketing offers
Partners and AlliesThe partners of our enterprise would be the people would help us to transport the goods from the source to our storage. This would be logistic companies. Logistic companies will help us procure and deliver our goods. Suppliers like farmers and companies that manufacture grocery products would be partners. Even local bakeries and dairies would be useful partnerships
PartnersHowever our approach initially would be to approach the middlemen. We would like to eliminate some middlemen while working with a few so as to eliminate cost. Yet eventually the goal would be to reduce the middlemen to give the cost advantage to the consumer.
DistributionOur initial distribution would be through partners. This could be various companies or people who are already into delivering one thing or the other(like private mail companies). However, most convenient and cost effective method would be to do it directly by us. Firms that handle logistics would be very useful partners in this as well.
CostsThe cost would have to bear is that of building a reliable website that would be easy to use and intuitive. This would require building a good team of designers. The team would build websites and applications. Transportation would be a regular cost which can only become more cost effective with biggers sales. We would like to reduce costs by eliminating the middleman as far as possible. This would reduce the distribution of margins making the end product cheaper while increasing our and our partners’ profit margins on any product.
Revenue ModelThe revenue would be through different modes of payment that we would like to offer our costumers. Options like prepaid, postpaid, and cash on delivery would be good options. We would like to encourage our customers to use the prepaid option by offering incentives like coupons or discounts. Prepaid would give us capital with which we can procure larger quantities of goods. This would give us the power to negotiate and get better deals on certain goods. The other payment modes would be convenient to the user and would contribute to overall experience of shopping with us.
Risks The consumer not buying certain goods would be a risk if it is stocked up in inventory. We would have to carefully estimate what the consumer would like to buy and to advertise and promote slowly moving goods. The risk is bigger with perishables. Quality- Bad experience in terms of quality of goods or the quality of delivery can ruin the over feel of the whole experience. Training suppliers and distributors would be a key to improving quality and regular monitoring of these to maintain the quality will take care of the risk
Funding Initially, this venture will be self-funded with individual contributions from each of the founders and funding from Angel Investors’ will also be sought. Based on the growth we achieve and our future plans, funding from venture capitalists will be sought.
What We Did? Value Preposition of Online store Market Volume analysis Market sentiment(Investor Sentiment about the idea) Customer Survey High fidelity prototype Present rivals and their analysis
Test And Survey Customer Feedback Survey We asked more than 30 people what problems they face while doing grocery shopping and what according to them can make the whole system more efficient. Website Usability We made a website for the online store and asked customers to use it and give us feedback about what parts are to be improved Competitor Survey We also visited all the local grocery stores and online grocery websites to understand how they work and where do they fall short.
What Changes will convince you to order groceries onlin0% 10% 20% 30% 40% 50% Wont use online groceries Other More products offered Faster Turnaround time My house in the delivery radius My grocery offering those services Tengible incentives(freebies,discounts) Better web design that would make it easier to buy Lower Fee
High Fidelity Prototype http://www.freewebstore.org/EZGrocery