M2 Group 2

download M2 Group 2

of 13

Transcript of M2 Group 2

  • 7/26/2019 M2 Group 2

    1/13

    BUSINESSC

  • 7/26/2019 M2 Group 2

    2/13

    Introduction

    OUR BUSINESS

    Foodler is an online megamarket thatconnects consumers with local grocerymerchants in the neighbourhood.

    It offers the widest range of products forinstant delivery through its mobile app.

    The app provides the users the choice toorder goods from nearby local stores andget those delivered within 90 minutes ofplacing the order.

    OUR MISSION

    To provide seamless and convenientconsumer experience in purchasing

    the household and grocery itemsthey need across different retailers

  • 7/26/2019 M2 Group 2

    3/13

    BusinessFram

  • 7/26/2019 M2 Group 2

    4/13

    Situationanalysis

    PROBLEM

    Consumers are spending hours of theirpersonal time roaming around shelves insearch of required product.

    Consumers are forced to compromise onselection and quality, because they are limited

    with selection available in one particularsupermarket.

    SOLUTION

    The application will allow the consumers topurchase preferred items across different

    stores/outlets from a single platform

  • 7/26/2019 M2 Group 2

    5/13

    TargetAudienceandValueProposition

    Consumer Supermarkets Brands

    Profile Maximum market size (TAM):2,597,000 people aged 20-64 YO

    Total of 1,225,000 households(Locals, expats Singapore)

    Target market (SOM) 245,000downloads

    Supermarkets of any size,including specialised ones likebakeries.Meidi-ya Supermarket, Giant,Fairprice, Mustafa, The OrganicGrocer, others

    TAM: Major Chains

    SOM: All available supermarkets

    Any brand selling in anysupermarket

    SOM: 20% on top of mainrevenue stream.

    VP Streamline search and purchase

    process in an App.

    - National cuisine for expats

    - Vegan/vegetarian/organic

    - Hassle free

    1. Widen customer reach.

    2. More effective marketing

    1. Wider customer reach

    2. More cost-effectivemarketing andpromotion options

    Trend

    Customers are getting used to buy through aggregators.

    Rising middle class driving food retail growth. ( ASEAN Grocery Retail - DBS)

    KPMG: http://www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/Documents/Retailing-

    http://www.meidi-ya.com.sg/en/http://www.meidi-ya.com.sg/en/http://www.giantsingapore.com.sg/http://theorganicgrocer.com/http://theorganicgrocer.com/http://theorganicgrocer.com/http://theorganicgrocer.com/http://theorganicgrocer.com/http://theorganicgrocer.com/http://theorganicgrocer.com/https://www.google.com.hk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwj2yeCdn5_NAhWDm5QKHWtUBxQQFggiMAE&url=https://www.dbs.com.sg/treasures/aics/pdfController.page?pdfpath=/content/article/pdf/AIO/150722_insights_whetting_asean_appetite.pdf&usg=AFQjCNG0zacBselqPFysR9hUFCk0jcc2Tg&sig2=Zkd_tcDE3o9TA5mluXUvJQhttp://www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/Documents/Retailing-Asia-Pacific-200610.pdfhttp://www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/Documents/Retailing-Asia-Pacific-200610.pdfhttp://www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/Documents/Retailing-Asia-Pacific-200610.pdfhttps://www.google.com.hk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwj2yeCdn5_NAhWDm5QKHWtUBxQQFggiMAE&url=https://www.dbs.com.sg/treasures/aics/pdfController.page?pdfpath=/content/article/pdf/AIO/150722_insights_whetting_asean_appetite.pdf&usg=AFQjCNG0zacBselqPFysR9hUFCk0jcc2Tg&sig2=Zkd_tcDE3o9TA5mluXUvJQhttp://theorganicgrocer.com/http://www.mustafa.com.sg/http://www.fairprice.com.sg/http://www.giantsingapore.com.sg/http://www.meidi-ya.com.sg/en/
  • 7/26/2019 M2 Group 2

    6/13

    CompetitionHonestBee Singapore (direct competitor)

    - HonestBee dont own any inventories. What happens with HonestBee is

    that you place your orders on the site for the groceries you want, and theplatform dispatches runners (or bees) to get the groceries and deliverthem to you.

    - The user experience on Honestbee is exactly what youd expect of anonline grocer: simply choose the items which you want and add them toyour cart, choose a delivery timing, and your groceries will be on their way.Currently, Honestbee supports items from Cold Storage, Isetan and ShengSiong, which are some of the largest supermarket chains in Singapore.

    - HonestBee weakness: A rather expensive delivery.

    What makes us stand out?A comprehensive online aggregation of all major supermarkets.Quality of delivery and customer service will take over

  • 7/26/2019 M2 Group 2

    7/13

    START

    Scalability

    3 years forecast (Mid-term)

    - Focus to grow the market share in Singapore.- Establish strong following for Foodler.

    - Improve on the functions that Foodler provides.

    Long term plans (4 years on)

    - Target neighboring regional countries such as:Indonesia (249.9 mil)

    Malaysia (29.72mil)Thailand (67.01 mil)Hong Kong (7.188 mil)Taiwan (23.48 mil)

    - These countries have a sizeable potential household size.- These countries face the same problem of a congested urban living conditions witlifestyles thus making Foodler relevant.- Foodler also has an opportunity to enter these markets as the consumers have ad

    technology making Foodler's entry more seamless.

  • 7/26/2019 M2 Group 2

    8/13

    Commission

    PremiumMembership

    (PaidSubscription)

    AncillaryRevenue

    Advertising

    RevenueStreams

    Commissionbased from

    sales of

    products andgoods ranging

    between 2-5%.

    Consumer payfor advancedfeatures. i.e.:

    advancedsearch

    options, ads-free, newproducttasting.

    Productplacementand other

    advertisingspace forbrands.

    Revenue fromthe retailers

    who will have

    the opportunityto feature theirhighlights/promotions on a

    monthly basis.

  • 7/26/2019 M2 Group 2

    9/13Sales&Distribution

    ReachingoutConsumersforBusiness Tie-upwithSuperm

  • 7/26/2019 M2 Group 2

    10/13

    OrganisationC

  • 7/26/2019 M2 Group 2

    11/13

    DevelopmentStrategy

  • 7/26/2019 M2 Group 2

    12/13

    Financial$

    Start-up period (zero revenue): 6 months

    Assumptions:

    2 purchase / week by each active user80 SGD - average cheque

    Year 1 Year 2

    Fixed Cost -$2,742,806.35 -$11,757,099.23

    Revenue $85,809,676.80 $775,412,000.00

    Margin (commission) $1,712,768.00 $23,040,000.00Margin (Memberships) $500,000.00

    Margin (advertising) $85,638.40 $4,608,000.00

    Ancillary margin $85,638.40 $2,304,000.00

    Profit (Loss) - 858,761.55 18,694,900.77

  • 7/26/2019 M2 Group 2

    13/13

    Thanks!Business proposal

    prep red by

    M2 Group 2

    Name Email

    Sanjay Rawlani [email protected]

    Neville Chesan [email protected]

    Eugene Reznikov [email protected]

    Janet Hu [email protected]

    Zach Tan [email protected]

    Grace Maung [email protected]

    mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]