G2 Business Plan 12 - .hhgc,hnbnm PDF

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E.G.O (E - Grocers Opt)

Part I: INTRODUCTION

I. Executive Summary E.G.O (E-Grocers Opt) is an online grocery system that will accommodate thousands of households here in Cagayan de Oro City. It is an online portal that is available and can serve customers every day by facilitating easy and convenient shopping or buying of goods. E-commerce/Online Stores have already been known even before the advent of the pandemic, but because of the surprising occurrence of the pandemic, the popularity of Online stores sprang up rapidly beyond expectations. Knowing that we are now in the 21st century where technology has become an integral part of our day-to-day living, it is not a mistake to say that online shopping is somehow innate to us. The terror brought upon by the pandemic has created a huge turn of events when it comes to buying the necessities we need for everyday living. Many customers find it difficult to go outside to buy in physical stores due to the health protocols that need to be followed accordingly. Due to the hassle brought upon by the protocols, individuals who need something for survival settled then on online shopping, which as of now has been in the mainstream. E.G.O (E-Grocers Opt) is an online grocery store that will bring convenience right at your doorsteps. The business aims to lighten up the burdens of the Kagay-anons and the inhabitants of the city by providing them a one-of-a-kind experience in online grocery. The products that will be listed in the online grocery store are: General grocery items, Produce, Beverages, Wet Goods, Deli and Health and Beauty products. The use of social media as a tool to supplement the daily functions of a human person is what our business is trying to fulfill. As the end of the pandemic comes with uncertainty, our team has developed an idea to reduce motion under the population to aid the spread of a deadly virus. E.G.O(E-Grocers Opt) offers a safe, fast, and convenient way to shop for all your daily necessities. We partnered our company with all of the valued grocery stores/markets to satisfy our shoppers, needs. Our company prioritizes the safety of all populations. As we start this business from one city, we hopefully foresee our success to affect a safe and healthy environment one step at a time. With the integration of technology and the internet,

our users would highly benefit from the convenience that we offer of bringing their goods right to their doorstep. For we believe that as long as we got the technology, life will then be easy.

II. Nature of the Business E.G.O (E-Grocers Opt) is a merchandising and service type business. It is a merchandising type of business in the sense that our business will acquire products and sell them on demand. Since it is an online grocery business, customers will order online and it will be delivered to them which is considered a service type of business.

Designed for:

Designed by:

Date:

Version:

Business Model Canvas Key Partners

Key Activities

Value Propositions ●

● ●

● ●

Grocery Stores Delivery Service Providers Payment Processors Promoters/Infl uencers

Establish a working relationship with grocery establishments ● Hire a delivery service ● Create a delivery system and maintain control over the delivery provider ● Manage the customer's order and the delivery procedure ● Customer obtainment ● Getting feedbacks from to customer to constantly develop Key Resources ●

● ●

●

●

Streaking fast delivery in any weather No minimum order concept Various payment methods are available Accessible and Convenient buying of groceries through online transactions Discounts Promos

Customer Relationships ● ● ● ●

●

Social Media Promo Codes Complaint Portal Customer Support Chat Option Self-Service (App)

Channels

Customer Segments

●

●

For customers who don't have time to go grocery shopping and want groceries delivered to their door via the internet. For customers who do not want to go grocery shopping.

● ● ● ●

Technology (online app., internet, etc.) Grocery Stores Delivery Services Providers Brand

● ●

App Store Digital Marketing thru Technological Tools/Gadgets (Mobile Phones, Tablet, Laptop, Computer etc.)

● Cost Structure

Revenue Streams

Advertising and Marketing ● Standard delivery fee Technology ● Grocery product Payroll expenses (employees and delivery ● Advertising and Marketing partners) ● Cost of Revenue - Customer Service - Payment processing fees - Advertising Cost - Delivery Cost - Operation Cost Designed by: The Business Model Foundry (www.businessmodelgeneration.com/canvas). Word implementation by: Neos Chronos Limited (https://neoschronos.com). License: CC BY-SA 3.0 ● ● ●

E.G.O (E - Grocers Opt)

Part II: MARKETING PLAN

Market Analysis The City of Cagayan de Oro (Dakbayan sa Cagayan de Oro) is a 1 st class highly urbanized city located in the north cental cost of Mindanao island facing the Macajalar Bay and is bordered by the municipalities of Opol to the west, Tagoloan to the east, and provinces of Bukidnon and Lanao del Norte to the south. The city is geographically located and is the capital of the province of Misamis Oriental but in terms of administrative governance, it is independent from the provincial government. The city covers 13.9% of the total land area of the entire Misamis Oriental province which includes a 25 km of coastline and a harbor. The city is also frequently categorized according to geographic factors; the 1st district which consist of 24 barangays that are mostly suburban, and the 2nd district consisting of up to 17 barangays including the city proper barangays 1-40. Cagayan de Oro also serves as the regional center and business hub of Northern Mindanao, and part of the growing Metropolitan Area. It became a charted city on June 15, 1950 during the Presidency of Elpidio Quirino. The city is the 10th most populous city in the Philippines, covering a total population of 728,402 based on the 2020 census. The economy of the city is also largely based on industry, commerce, trade, services and tourism.

Market Size E.G.O focuses its marketing activities in servicing the residents of Cagayan de Oro City who find it a hassle to go outside and buy the necessities needed, specifically, with the age group ranging from 18-54 years old. The services will only be exclusively available within the city, which consist of 80 barangays and is a home for 728,402 residents (2020 census).

PESTEL POLITICAL Sales Tax Policies Government protocols conforming to COVID 19 Competition regulation and deregulation

ECONOMIC Inflation Supply and demand Recession and Fluctuation Delivery rate

SOCIAL

TECHNOLOGICAL

ENVIRONMENTAL

LEGAL

Consumers’ preferences

E-commerce growth and development

Availability of renewable goods

Acquisition of permits and licenses for the operation of the business

Shift on consumer’s behavior Social classes Lifestyle and buying habits

Weather/ Climate E-monetary transactions Internet connectivity that affects streamline services

Workplace efficiency Availability of economic-friendly packaging

Reliability in terms of security

Further restrictions

Consumer law (protect consumers from fraudulent company) Import/Export

Technological restrictions (integration to existing protocols)

law Employment law (dictates how employees be treated) Health and safety law

PORTER’S 5 FORCES Rivalry among existing competition is high due to the existence of competitors who have the same nature as the business. Most of the competitors also have established a firm foundation since they came into the limelight first. Most of the competitors also have built a firm relationship with the target customers. The threat of new entrants is high due to the continuous popularity of online businesses. According to a survey conducted by Global Web, about 48% of Filipinos plan to do more online shopping after the pandemic, so there is a very high

possibility that an increasing number of individuals will engage in online business and service. The bargaining power of buyers is high due to the characteristics of the business. A wide range of online businesses engaging in grocery merchandise and deliveries are present in the city, making the customers have a variety of options to choose from as long as it is cheap. Moreover, the internet has made customers empowered and informed, which enables them to easily browse through the prices of the products they needed online. The bargaining power of suppliers is low due to the nature of the business. The business is a merchandising one and in the vicinity of the city, a lot of grocery stores are present which is advantageous to the business due to the variety of options, thus making the suppliers into an disadvantageous state in pricing the products. The threat of substitutes is medium or average, considering the nature and characteristics of the business. There are already existing online businesses also dealing with the same nature as E.G.O that could be an option for target customers to be an alternative. Out of the 5 forces, 3 are considered high, 1 is medium and 1 is low. Therefore, deeper considerations regarding the outside factors that may have a significant impact on the business should be looked into intently to cater the needs and wants of target customers.

Competitor Analysis Food Panda In

the

Southeast

Asian

region,

Foodpanda is a leading provider of express

meal

delivery

services.

Its

significant regional presence, owing to powerful technology and good client experiences, has developed and grown the company in recent years. Foodpanda is up against stiff competition from not only other food-delivery services, but also the convenience of simply going to neighboring

hawker

restaurants.

This

environment

centers

and

competitive

necessitates

a

comprehensive marketing strategy that can help the company develop across multiple sectors. Deliveroo, Grabfood, and Honestbee are the three main competitors in food/groceries delivery services. Foodpanda is focusing on developing a marketing strategy to improve relationships with stakeholders and

merchant-partners,

improve

customer

as well

retention

as and

relationship, because it is critical for Foodpanda to expand in order to gain greater market share while also retaining customers

by

increasing

customer

lifetime value in order to grow a sustaining and profitable business while

staying competitive. Grab is a Singapore-based startup that provides transportation apps in six Southeast Asian countries. It provides ride-hailing and logistics services, as well as food delivery and courier services, using

smartphone

cloud-based

technologies. The goal of this research is to identify and examine the challenges that exist within the Grab company. Customers

could

also

rate

their

satisfaction with the services using the app.

Grab

has

also

worked

with

consumer brands in Southeast Asia to sell

the

services,

including

Baskin-

Robbins, Coffee Bean, Tea Leaf, and others. Grab gives drivers and partners another

way

to

supplement

their

revenue. By delivering groceries in between passenger journeys, the driver can reduce idle time and increase earnings. Grab sees itself as a facilitator and will leverage the cooperation to ensure the company's future growth. Grab provide quality customer service which is “speed, safety and certainty” to all the customers. This can make sure the customers enjoy the brief journey and their services.

My Suki My Suki is an online grocery pick-up and delivery service that connects you directly in the stores in your area with payment options via Credit/Debit Card or Cash-on-Delivery. All you need is the store code of their partner store to shop from the My Suki app. It is also an ecommerce

platform

designed

for

retailers who want to create an online channel to complement their stores. It is built by Retail Technology Experts in which it provides digital transformation for the entire fulfillment process – from receiving orders online, to picking the goods, to checking the order, all the way to delivery and pick-up management. With the recent challenges brought about by the pandemic, they're helping retailers by offering My Suki as a licensefree platform with no license fees, no transaction fees and no surcharges. They only offer professional services to help retailers

setup

their

E-commerce

operations easily and enables retailers to Sell Online, Deliver Orders and Offer Order Pickup. Moreover, it protects retailers from price wars in a way that unlike online market places where retailers are made to compete with one another, My Suki Platform gives online capability to retailers without exposing

their customer base to their competitors. My Suki is able to make the e-commerce fulfilment process of cost-neutral to retailers. It is not like the typical ecommerce

platforms

additional

resource

which

require

investments

to

operate. Also, it is easy to setup compared to a typical e-commerce project where if built by a retailer from scratch, it will take 6-8 months to setup at best but My Suki can get a retailer online with basic setup in just one day! And a full-blown fulfilment process setup in just 4-6 weeks.

CDO Online Mart CDO Online Mart is an E-Commerce grocery that enables individuals to purchase their needs from the comfort of their homes. They aim to provide excellent service and products at the best price, in order to make shopping an ease & life more convenient. To order they have three options – visit their website, use their IOS or android app or text them your orders on FB Messenger or 09171599000. After that, add items to your cart, checkout and pay then receive your order. Their delivery rate is 30 pesos for first 3KM from VIP Hotel, Don Apolinar Velez St. For on the day deliveries, orders must be placed directly

before 2PM. Any order beyond the indicated time will receive their orders on

the

next

day

immediately.

Furthermore, your personal data are safe in inputting it to their website because it is secured with an SSL Certificate that keeps your private information such as contact information and order history private and inaccessible from hackers. In addition, what makes this app different from other online grocery stores is that they guarantee the prices of the their products are for their customers to get the best deal as possible. Compared to other online grocery sources, they make sure that their items are not far off the rates of supermarkets, making it ideally affordable. Moreover, majority of their non-grocery products have no mark ups from store price. Bonbunny.ph Inc. It is an online grocery store that sells a variety of products including fresh foods, canned and processed meals, snacks, drinks, personal hygiene, household items, and much more! Bonbunny's simple, fast, and convenient smartphone interface makes shopping a breeze, so you

can

purchase

anywhere you choose!

whenever

and

Ehatid Online Grocery This business service is safe, fast and affordable. They let you buy groceries and fresh goods from your favorite local stores. EHATID is in partnership with Julmar grocery. When you first purchase and use this application you can get free delivery on your first order. This app is an easy to use app convenient to all the shoppers and users.This is very reliable, good processing of the service and also the riders are very polite. To use this app and how to order. Here's the steps. First, download the app and sign up. Second, choose your favorite local store. Third, choose your chosen items. Fourth, wait for the delivery. Lastly, pay through GCASH or you can pay via COD. Their delivery fee rate is 39.00 Pesos for deliveries within 2 km from the store and 10.00 per additional km up to 5 km. beyond 5 km, the fee per additional km is 15.00 per km up to 20 km within CDO.There is also a 5% Convenience fee which will be charged to the customer, on top of the delivery fee. That is, 5% of the total purchase amount.

Konbini This business service was solidified on March 4, 2019. KONBINI services are the first online grocery and services in Cagayan de Oro City. They make shopping fun and convenient to the shoppers with their easy-to-use app and fast delivery. This app applies to all android and iOs users. KONBINI shoppers and users may also order from the following merchants. Fat chef restaurant, Gwela roastery, Steve's barbecue, and Mimi's catering. KOMBINI app users their delivery schedule is 3-8 PM and grocery order cut off is 2 PM. As for October 2021’s delivery fee was being updated, the delivery service charge of Konbini still depends on how far the location, either inside the city or outside the city. KONBINI is very reliable and has good services. This app is easy to use. Staff members

are

trustworthy

and

responsive. Also, this app may save time for those shoppers and users who do not have time. KOMBINI users may use cashless

payments

options

through

online bank transfers such as BDO, PNB, METRO BANK, CHINA BANK, PAYPAL also it's available in a mobile payment option which is GCASH.

SWOT Analysis Strengths Internal

⚫ ⚫ ⚫ ⚫ ⚫ ⚫

Time saving Cost effective Fast exchange of information Faster buying procedure Accessibility Nature of the business is currently on the mainstream.

Weaknesses ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫

Security Long delivery timing Impossibility of physical examination Customer’s satisfaction Fraud Lack of experience Weak market image Inadequate Financing capabilities

External

Opportunities ⚫ ⚫ ⚫ ⚫ ⚫ ⚫

Increasing number of user/growing market Advertising Wide business growth High availability Innovation/further technological improvements Potential expansion

Strength-Opportunities Strategy ⚫

⚫ ⚫

Create more partnerships to make more connections to enable faster growth. (5-1,3,6) Produce multi-product line with many options to choose from and in different price classes. (2-4) Making our own application. Our company aims to grow its market and be competent by providing our own app for a better user experience. (5-5,6)

Weaknesses-Opportunities Strategy ⚫ ⚫

Create a time frame for deliveries and a business hour limitation for orders. (2-1,4) Create a dedicated customer service network to cater customer’s inquiry and establish a secured online system.website to keep customer’s information private and inaccessible to hackers (SSL certificate). (1,3-5)

Thr...