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Uploaded byVincent Furlong
Grocery Guru
The document proposes a mobile application called GroceryGuru that allows customers to scan grocery items with their phone as they shop and pay without waiting in checkout lines. Currently, the average shopping trip takes 41 minutes with 7-10 minutes spent waiting in line. GroceryGuru aims to reduce this wait time by enabling customers to scan items, view their virtual cart, and pay using pre-registered payment methods. The application would be universal across stores and offers a premium version with purchase analytics and loyalty rewards.
Grocery Guru
- 1. GroceryGuru Emily Schucker, TonyWu, Vincent Furlong, Jonathan Kerr
- 2. “ When grocery shopping, wholooks forward to standing in line at the checkout registers? 2
- 3. Let’s Talk Queuing Theory Danishtheory developed in the early 1900s that states that one giant check-out line would theoretically offer the least amount of wait time per customer. GroceryGuru Why not abolish the line all together? Scan and go technology identified to cause disruption in the grocery industry. Average Shopping Trip The average shopping trip takes 41 minutes. Of the 41 minutes, 7-10 minutes is spent in a checkout line or 2 minutes at self-checkout. Annual American Spending Americans are spending $638 billion in supermarket sales. 65% of which is spent at a traditional grocery store. 3
- 4. 839,810 Cashiers U.S. GroceryIndustry Employs $16,317,508,300 Grocery Cashier Annual Average Salary $19,430 Annually U.S. Bureau of Labor Statistics, Occupational Employment Statistics 4 Grand Total of U.S. Cashier Salaries Annually
- 5. Financial Benefits 5 Development Sales, Marketing, andAdvertising Hosting and Other Services Users 1% Total Purchase Transaction Fee Year TwoYear One Year Three -$72,800 $0 $0 -$25,000 -$1,400 351,000 $31,575,960 $31,476,760 -$25,000 -$25,000 -$1,500 -$1,800 460,000 526,000 $41,381,600 $41,355,100 $47,363,940 $47,337,140 13,500 Grocery Shop a Week in America $173 Weekly Average Shopping Trip
- 6. Current Process 6 Place Itemsin Cart Cashier Scans Items Wait in Line Payment
- 7. Our process iseasy 7 Select Store/Location Scan QR to Obtain Receipt Scan Items
- 8. 8 GroceryGuru Application Here thecustomers create their account and log-in to the app.
- 9. 9 GroceryGuru Application Here arethe various menus after logging-in. Customers can view their information or change their store and payment methods.
- 10. 10 GroceryGuru Application The customerthen begins to scan items and add them to their cart. The app uses their preferred payment method automatically then provides a QR code to scan at a register or at self-checkout.
- 11. Why We AreDifferent GroceryGuru Scan-and-Go application is universal. Premium version which costs $1 a month. Provides detailed analysis of your purchases. Customer loyalty program where customer receives rewards based on how much is purchased. 11 Competitors Scan-and-Go applications are store specific, such as Walmart and Sams Club. Amazon used Scan-and-Go for their Amazon Go store debut, Amazon currently only has one store located in Seattle. Other applications have similar programs where shoppers scan their items for rewards, such as Fetch. There is no checkout process in place.
- 12. Desired Outcomes 12 Reduce timespent in checkout lines Efficiency Increase customer satisfaction Reduce grocery store expenses 2 3 4 1 Reduce by 7 minutes Scan-and-Go technology Reduce by $400,000 annually in Cashier salaries Remains efficient regardless of purchase size
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- 19. Process Model 19 InventoryDatabaseMobileApplicationProductsCustomer Customer enters grocerystore Customer sees a grocery product Does the customer want to add the grocery product to their cart? Scans barcode from the grocery product into the application Grocery product is accounted for within the individual stores database Customer decides if they are done shopping Customer selects their payment method and checkout is complete
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Editor's Notes
- #4 http://www.delish.com/food/news/a41500/grocery-store-wait-times/ Case Study: Using 10,000 customers in a grocery store with 10 cashiers and 3 minutes of wait time. The queuing theory model shows that a single-line model means shorter waits than multiple check-out lines. Average Shopping Trip: 2.2 days a year spent in a grocery store according to the Time Use Institute Annual American Spending: Around $415 billion spent at a traditional grocery store If you multiple that by 1.5 trips per week on average that’s over 53 hours per year you’re spending in the grocery store.