Executive summary
The business plan is a development of an online grocery store that sells groceries and consumer goods. The mission of the business is to provide fast and reliable delivery of groceries and consumer goods to all the esteemed customers at the comfort of their homes.
The goal of the business enterprise is to realize a market share in the UAE through the facilitation of grocery shopping for individuals and the society. The objectives of the business are as follows:
- To establish an online grocery that meets the customers in the United Arab Emirates (UAE).
- Achieve a new market where it will be able to make profits
- Introduce new shopping strategy and become the largest market shareholder
- Meet the consumer demands and satisfactions by delivering the products in time to all customers
- Achieve the organizational goals and objectives as well as making profits.
- Use the internet and social networking sites as well as the mobile phones to market the company’s products
- Create a positive company image and repetition so as to place itself above the par of other competitors.
- Become the leading online grocery store in UAE in a period of six months.
The business targets the whole population of United Arab Emirates. The groceries and other consumer goods will be delivered at the customers at comfort of their homes under no extra costs. This would attract large consumer base and make the company have a large market share.
The business will capitalize this and provide fast and reliable services that are. The business projects a profit of 250,000 dirhams at the end of the first financial quarter. The projection is low but because of the competition, entry costs and other barriers, this is good start for the business.
Introduction
The E-Commerce Online grocery would be designed to enable consumers from the United Arab Emirates to make their shopping online with ease, at the click of a button.
The products would be delivered to their premises or requested places at no delivery or transport fee but at the same prices as those at the grocery store. Products like groceries, health supplies, pet foods, cleaning products and detergents, among other consumer products, would be provided. Consumers would be able to shop at their convenience and the goods delivered at the comfort of their homes.
General Company Description
Business concept/Idea
The business concept behind the business plan is to provide an online shopping platform to the population of United Arabs Emirates. It would involve selling of groceries and other consumer products and delivering them to the customers upon purchase.
The concept is the first of its kind in the region in the sense that customers will not be charged delivery fee. Instead, the products will be delivered at the same price as that of the local grocery stores. The speed, convenience, and fast delivery after shopping online would be used as an advantage to capture a large customer clientele.
Mission statement: the mission of the business enterprise is to provide fast and reliable delivery of groceries and consumer goods to all the esteemed customers at the comfort of their homes.
Company Goals and Objectives: the goal of the business enterprise is to realize a market share in the UAE through the facilitation of grocery shopping for individuals and the society.
Business philosophy: the online grocery store will offer unique services to its customers at a lower prices because it beliefs in customer satisfaction and loyalty.
As a grocery products provider, the business will employ the SMART principle in making its objectives when entering the new market (Mulin, 2010). The following are the business objectives’
- To establish an online grocery that meets the customer care in the United Arab Emirates (UAE).
- Achieve a new market where it will be able to make profits.
- Introduce new and become the largest market shareholder.
- Meet the consumer demands and satisfactions by delivering the services in time to all customers.
- Achieve the organizational goals and objectives as well as making profits.
- Use the internet and social networking sites as well as the mobile phones to market the company’s products.
- Create a positive company image and repetition so as to place itself above the par of other competitors.
- Become the leading online grocery store in UAE in a period of six months.
The business enterprise targets all the segments in the population. However, the largest target groups are those customers who cannot have adequate time of visiting the local grocery stores. The company will also target internet users who can make online shopping and who cannot travel to the shopping centers because of the distance and commitments.
In general, the business targets the whole population because the world has changed to technological services and nobody should be left out. Online shopping and marketing has become predominant in other countries but this would be of its kind in the UAE. Online shopping and marketing is growing and becoming more competitive.
It is deemed to be fully competitive and congested in the next five years as we are living in the technological era. It will also take advantage of being first of its kind and earn a market share. The company will provide the grocery products to its clients at the same price as that of grocery stores at their convenience saving their time and energy. By keeping time it will be possible to expand and maintain market share.
Prior to the launching of the company, several factors which are essential in establishing would be put into consideration. These would be achieved through the use of SWOT analysis. The use of the SWOT analysis helps in the recognition of external and internal factors with a view to realizing the company’s marketing objectives (Dooley, 2006).
Operational plan
The operation of the company shall be based on the designed website, employees, the delivery of services, and consumer goods.
Website content and feeling
The website for selling the products will be designed in such a way that all the needs of the customers are met and addressed. It will be easy to access online shopping in a more reliable manner and in the shortest time possible. The website will be captivating and appealing to the eyes and it will also act as a branding of the company.
The website will also be designed to make the customers feel that they were shopping directly from a grocery store. This would make them feel at home and at the right online shopping grocery store. The website would include the following contents:
- A homepage that will include the grocery products and other consumer goods to be availed to customers upon request
- Pictorial samples of some of the available goods
- The prices of grocery products and other consumer goods
- The mode by which the orders or purchases would be made
- The mode of payment either through credit cards or any acceptable banking services cards.
- Tabs of special offers available to esteemed customers and new customers as well
- Several tabs will be availed to individuals who do home baking or cooking to place their products in the website.
- Phone numbers for customers care service will also be placed to allow our customers make claims, calls, or make any comments.
- An open discussion forum tab will be featured to allow the customers to discuss how the company is offering its products and what needs to be improved.
Equipment/Machinery/Cars
The company will have a grocery store with modern refrigeration system to keep perishable goods. It will also partner with other groceries stores to sell their products online to the esteemed customers. So as to make deliveries in time to the customers, the company is planning to acquire five motorcycles for supplying groceries and other consumer goods to the customers.
The reason why motorcycles will be used is their ability to navigate to the rural and inaccessible areas that cannot be accessed by motor vehicles.
Other than the use of motorcycles, the company will acquire three vans that are capable of transporting bulky grocery products and consumer goods to hospitals, schools, police stations, and schools across the United Arab Emirates. Within a period of two years, the company is planning on acquiring a refrigerated truck that can transport perishable groceries like vegetables.
Marketing plan
The marketing plan would be based on the 4ps of marketing strategy to aid in achieving the company’s goals and objectives. According to Mullin (2010) marketing objectives should be based on the SMART principle so as to realise the market share and organisational goals. The SMART principle comprise of the following acronyms: specific, measurable, achievable, reliable and time conscious/bound.
The prices of the products would be same as those of the local grocery stores. The company would provide groceries and other consumer goods and would be located online. The products would be distributed and delivered to the customers at their convenience and requested time.
Management and Organization
The management team shall comprise of the partners, whereby one will be in charge of the finances. He will oversee the financial transactions and keep all the financial records. The second will head the operations and offer technical services to the customers. The third partner will deal with the customer care department and be responsible for talking orders and calls.
He/she will foresee the daily running of the enterprise and maintain the customer clientele and the expansion of the enterprise. The professional and advisory support will include, management advisory board, attorney, accountant, insurance agent, banker, consultant, mentor and other advisors.
The company shall have extra 6 employees whereby 3 shall be motorcyclists, 2 will be van delivery van drivers, and one messenger. Overall the company would be having 9 people that would ensure the goals and objective of the company is realized.
Financial plan
The financial plan would entail a 12 month profit and loss projection, cash flow projection, a balance sheet, and break even analysis. The first year profits are estimated to be 250,000 dirhams.
The major assumption is that competition shall be stiff and as such, it would be impossible to make abnormal profits. Other expenses to consider are web designing and hosting costs, as well as the delivery cost that would be accounted for by the company. All the costs and expenses will be included in the financial plan.
Reference List
Dooley, D. (2006). Business. Book 2. Oxford: Heinemann.
Mullin, R. (2010). Sales promotion: how to create, implement & integrate campaigns that really work. Philadelphia: Kogan Page Limited