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Market Plan Report
Of
STORE TO DOOR (S2D)
Submitted To:
Dr. Ritu Talwar
(Competitive Marketing)
Submitted By:
Section: FA
Mayank Garg : 466
Astha Laghate : 383
Sagar Manocha : 414
Akanksha : 377
Kunal Goyal : 396
New Delhi Institute of Management
Store to Door Marketing Plan
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TABLE OF CONTENTS
Executive Summary
Service Description
Environmental Analysis
Competitive Analysis
SWOT Analysis
Market Analysis
Market Segment
Perceptual Map
Target Segments
Service Product Description
Distribution Channels
Integrated Promotional Plan
Pricing Analysis
Cost Analysis
Pricing List
Break-Even Point
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EXECUTIVE SUMMARY
Store to Door (S2D) is an interactive grocery delivery service that will shop and deliver groceries
to its members. Members are able to place their grocery order by phone, website or by
downloading S2Ds easy to use app for smartphones. Groceries will be delivered within 4 hours
of placing their order. Members will have the option to pick up their order at the store or S2D will
deliver to their preferred address.
Currently there is little to no competition in India for a grocery delivery service. This is surprising
since the county has a large market that would benefit from this service. Elderly residents, busy
professionals, families, and college students would benefit from a grocery service.
Elderly residents may have trouble reaching stores in the area due to inclement weather or lack of
mobility. These residents would benefit from a delivery service which is tailored to their needs and
delivers right to their doorstep.
Time is valuable and no one is more understanding of that than busy professionals, families, and
college students. S2D will save time and allow these members to devote their time to other
activities that they enjoy. With S2Ds unique partnership with local area grocery stores we will
bring a much needed and wanted service. S2D is affordable, dependable and timesaving.
SERVICE DESCRIPTION
Store to Door (S2D) will offer an interactive grocery shopping experience. Members of S2D will
be able to grocery shop without leaving the comfort of their own homes. Members will be able to
create a shopping list and order their grocery items by phone, online, or by using the S2D app for
smart phones. Once their order is placed a S2D grocery specialists will shop for their items.
Members can chose if they want to pick up their items at the store or S2Dwill deliver the items to
the members preferred address.
S2D eliminates the need for senior citizens to manoeuvre massive grocery store parking lots and
drive when the weather is poor. Mothers will no longer have to lug their small children from the
car to the store in the rain, snow and ice. College students will no longer have to break from their
studies to grocery shop. Busy professionals will come home after a long day of work to find their
groceries on their door step.
S2D will eliminate the dreaded chore of grocery shopping. No more waiting in line.
This service was chosen to review due to group interest. The group felt that shopping for groceries
was one of the most undesirable chores we complete.
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ENVIRONMENTAL ANALYSIS
Social/Cultural Changes:
• As more women enter the workforce there is a need for an “extra hand” with the
household duties.
• Due to the economy some working professionals are under employed and often
need two jobs to bring home the same salary that they use to make prior to the
recession. These professionals are looking for time saving services.
Business Trend Changes:
• As the economy struggles to move out of recession consumers are tightening their
budgets.
• They may not have the budget for services that they can accomplish themselves.
Information & Technology Changes:
• When consumers do purchase services they are looking for more information on
the services they purchase. They are also looking for the latest technology to
accomplish tasks. Web and app services will need to be fast and work as expected
each time a consumer places an order.
• Software will need to be up to date and maintained.
Government/Political Changes:
• The government may decide to increase the price of fuel or increase taxes on small
businesses using fossil fuels.
• Government mandated healthcare may impact our service business. Small
businesses may have to provide healthcare to all employees. This would be an
enormous cost to the business.
COMPETITIVE ANALYSIS
The competition for our service will come from four main areas; brand competition, service
product competition, budget competition, and do it yourself. There will be some indirect or
substitute competition for companies such as Big Basket who deliver groceries and food services
to the home, and traditional grocery store models. Our service, however, will offer a different
shopping experience than anything available currently.
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The first type of competition is brand competition which is competition from similar product or
service but with different companies, such as Coke-a-Cola vs. Pepsi. Because our service is unique
by having no other company offer what we do, brand competition initially will not be much of a
factor. If there is any brand competition, it would come from Big Basket because their service is
the closest relation to ours.
Service product competition is completion that comes from the same service being offered. There
again is little service product competition because we are a unique service. The little competition
that would be present would most likely be from grocery stores which do not have our service in
them. We would need to persuade customers to use our service over using traditional methods of
shopping.
One of the biggest competitions we would be facing is budget competition. Many people try to
keep cost as low as possible when shopping so our service, which would cost a little extra, would
have focus more on the benefits in order to compete.
The other major form of competition would be from “Do it yourself”. Most everyone already does
their own shopping and has time already set aside for shopping. This will have to be overcome by
convincing people that their time is valuable and our service makes shopping way more
convenient.
SWOT ANALYSIS
Strengths
• We have excellent customer service available 24 hours per day 7 days per week.
• Provide three options to customers when ordering. Phone, web or app.
Weaknesses
• Being a start-up company we do not have a reputation in the area.
• Employees may not be well trained or difficult to hire.
Opportunities
• Time is of value to most consumers.
• Large number of people without mobility.
• Less competition.
• Smartphones are popular and consumers would like using the app to order.
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Threats
• Consumers may see the service as a luxury.
• Consumers may not have the budget to use this service.
• Competition will enter the market if service is successful.
MARKET ANALYSIS
Mangalore Region
Population Information
• Population: 288,566
Household Information
• Households: 110,413
• Households with children under 18 years old: 30,044
• Male Households w/o wife present with children under 18 years old: 2,929
• Female Households without husband present with children under 18 years old: 8,896
• Householders living alone; Male over age 65: 3,525
• Householders living alone; Female over age 65: 8,957
Income Information
• Per Capita Income: ₹ 13,31,520
Student Enrolment:
• College Undergraduate as of 2015: 20,333
• Graduate, Professional School as of 2015: 4,065
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MARKET SEGMENT
Seniors – This market is going to want this service mainly due to their lack of mobility (such as
trouble walking), and also because they may have a hard time finding all of the items that they
need.
PROS:
People are living to be much older, and may be a loyal customer for years.
- Older people are having more trouble walking, therefore making our service more useful to them.
CONS:
- They may not be able to drive in order to pick up their groceries.
- Some may even forget that they placed an order, and not show up to receive items.
- Their kids may do the shopping for them already.
- They may be in a retirement home, where they don’t need groceries.
College Students: This market will greatly appreciate our service due to lack of time they have
to grocery shop.
PROS:
- There is a large group of college students in Erie County.
- Most use their parent’s money, and will buy a lot more groceries than most consumers.
- College students don’t have a lot of time to spend in grocery stores.
CONS:
- They may make prank calls and waste our time, which leads to missed profit elsewhere.
- Their peers may make comments about them using this service.
- They might bring groceries back from home, and not need to shop while at school.
- College students may have a meal plan and may not need other groceries.
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Families: This group also has a lot of responsibilities and may not have enough time to go
grocery shopping.
PROS:
- The divorce rate is getting higher, which leads to the population of single mothers increasing.
- They require a large amount of groceries for their kids.
- They are likely to become loyal customers if they like our service.
CONS:
- Single mothers may have a nanny that can go shopping for them, or watch the kids while she
shops.
- They may not have the extra money to spend on our service.
PERCEPTUAL MAP
Our service currently does not have any competitors. We are a start-up business and we are the
first to provide this type of service. Since we cannot create a perceptual map we will explain how
we will create a perception of our service.
We want people to perceive our service as very convenient. We believe this is the most important
characteristic. Our team also views price as an important variable. Our customers should see our
service as a great value to them, as well as close enough geographically to them. We think that
our customers should have easy accessibility to our service, and have that available to them for a
reasonable price.
In summary, we would create a perceptual map using the following factors: Convenience/Price,
Value/Location, Accessibility/Price, and Customer Service/Service Performance.
TARGET SEGMENTS
The S2D grocery service option eliminates the dreaded household chore of grocery shopping.
Rated high as the most disliked household chore, grocery shopping is time consuming, tedious,
and tiresome. Our service will eliminate this activity for stressed college students, over worked
professionals, busy families, and the senior markets.
The key market segments for grocery services as follows:
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College Students: In the county there are approximately 25,000 college or graduate students.
Highly focused on their studies these students do not have the time to shop and cook for themselves.
These students can use our technology to order their grocery needs in an easy convenient way right
from their smartphone or computer. These students will be eating healthier while saving time.
Professionals/Work Force: There are approximately 125,000 employed individuals. These
individuals are busy, juggling home chores with work-loads and family lives. Seeking to stretch more
free time into their busy schedules these consumers would benefit from grocery service.
Busy Families: Over 30,000 households have children under the age of 18. Time is also limited
for these families. Between school activities, their children’s social lives, and family chores these
households are looking for time saving services. With a grocery service busy families do not need
to drag their young children in and out of the car during rain or snow storms. Instead the family
can stay warm and cosy in their own homes while their groceries delivered to them.
Seniors: There are over 11,000 residents over the age of 65. Grocery shopping can be difficult
for this segment of the population. For seniors it is more difficult to physically navigate the large
parking lots and the mammoth stores. The weather in Erie also provides a challenge. Some seniors
do not want to venture out of their homes and risk dangerous road conditions when the weather is
poor.
Our focus for the grocery service would be college students, families, working residents and seniors.
With the exception of the college students, we will focus on households with incomes over ₹
30,00,000/year. This is 43% of the 109,388 households in Mangalore or 47,000 households.
SERVICE PRODUCT DESCRIPTION
Our service is a shopping helper service. For many people, there is not enough time to do your day
to day activities and do all the grocery shopping. This is why our service will do the actual shopping
for you inside the grocery stores that you preferably shop.
Our service will start with the customer browsing a store’s many items and adding them to the
customer’s virtual shopping cart via our mobile app or our website at the customer’s convenience.
Our shopping representatives will receive your order at the location of the customer’s choosing
along with his/her desired pickup time and they will go throughout the store gathering the items
the customer have selected. When all of the items have been collected, the groceries will be waiting
at the pickup centre outside of the store at the time specified for pickup.
The pickup will be very quick and easy. There will be no need for money to change hands at that
moment because the account will be charged when the order is placed, minimizing the time at pick
up. We guarantee the groceries will be freshly taken from the store and stored in an appropriately
conditioned area to prevent spoiling and rotting of sensitive products.
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DISTRIBUTION CHANNELS
Our distribution channels will all be located at grocery stores. Our business will work alongside the
already existing grocery stores by adding a more convenient way to shop. We will have our own
employees working in the various store locations doing the shopping. Because we will have locations
at many stores, customers will have access to more products and they can choose the most convenient
location for them.
For our customers, they will be able to access our service either from a mobile app or our website.
Both of them will have the ability to show all available products, allow the customer to choose a
pickup time and pay for the groceries and service. This will allow for the customer to do his/her
shopping at their convenience.
INTEGRATED PROMOTIONAL PLAN
PROMOTIONAL PLAN
To reach the target market, S2D will produce the following materials:
Website
Facebook Page
Sales Brochure
Print Ad
WEB PLAN
The S2D web site will offer information for current members and for potential members. The web
site will have complete information on how to use the S2D membership as well as the S2D app,
membership and usage costs as well as the benefits of using the service.
The web site will include the following information:
• Membership Fees
• Service Rates
• Customer Service Contacts
• Services
• Delivery Options
• FAQs
• App Download
• Calendar
• Membership form
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The website will target college students, working professionals and busy families. S2D will create
its own website, Facebook and twitter account without costs to the company. The website will be
marketed in the following ways:
• Facebook-we will use FB to add friends and access college accounts to add members
• Search Engine
Target goal of 500 new memberships in six months measured by new memberships.
Personal Selling S2D will sell our service to local grocery stores (B2B). Partnering with local stores will improve
customer service, allow for store pick up and allow S2D access to store coupons and discounts.
S2D will improve store sales and give consumers choice for shopping. Personal selling information
will include:
• App instructions
• Expectations for increased store sales
• Sales Packet
Personal selling will target local area grocery store chains. Target goal of all major grocery chains
obtained in 6 months measured by store agreements.
Print Ad Our print ad will target seniors, busy professionals and families. The print ad will be used in local
newspapers. To reduce the risk that may be associated with our service we are offering free delivery
for the first purchase. We will also reach out to our target market by placing billboards in strategic
locations.
S2D’s print promotional advertising will include the following:
• Billboard
• Print Ad
The print ad will target all segments of our market by reaching out to prospective members at
locations they are most likely to be. With this ad and featured promotion, our objective is to get
the local shopper to try our service to see first-hand how easy and convenient our service is. This
is the most effective and low cost promotion of our service. We expect this promotion to compel
consumers to try our service at least once by offering free first time delivery. This promotion will
be measured by the number of new memberships and the free delivery code. We will be able to
quantify how effective this promotion is by seeing the percent response rate with increase in new
memberships.
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PRICING ANALYSIS
S2D’s closest competitor is Big Basket delivery service. While Big Basket’s is not a direct competitor
to S2D since Big Basket’s does not offer local grocery store items, we have listed the competitor
pricing as follows:
COST ANALYSIS
Labour Costs:
Employees (This assumes labour is a fixed cost)
3 Shopping Specialists
1 Delivery Specialist
1 Customer Service Specialist
• ₹ 450/hr.- In store shopping specialist
• ₹ 450/hr. - Delivery specialist
• ₹ 450/hr.- Customer service specialist
• 20% of payroll-Administrative/benefit costs
Labour is based on 8 hour day (assumes no lunch or vacation)
Other Expenses:
• ₹ 60,000/month- permission to have specialists in stores and store pick-up
• ₹ 15,000/month – delivery truck payment (includes gas)
• ₹ 60,000/year – insurance
’s .
. )
Big Basket Home
Delivery
Store - 2 - Door
Orange Juice - 192 ̀ 11.99 * 7.47*
Strawberries - lbs 2 7.67* 5.00*
Pizza - serves 8 7.70* 5.49*
Fettuccini Alfredo - serves 2 10.48* 5.00*
Delivery Charge 1.79* 10.00*
Total 39.63 $28.01
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• ₹ 3,00,000/year – advertising
• ₹ 30,00/annually - equipment
PRICING LIST
Time to complete tasks:
• ½ hr. = time per order
• ½ hr. = delivery time Frequency of tasks:
• 7 days a week, 52 weeks per year = frequency of grocery delivery
• Estimated current orders: 35 orders per day
• Estimated current deliveries: 12 per day
• Estimated members: 1,000 per month Current pricing:
• ₹ 1200 per month membership fee
• ₹ 600 per trip delivery fee
BREAK-EVEN POINT (in ₹)
Labour Costs = 65,52,000
Admin Costs = 13,10,400
Other Expenses = 12,90,000
BREAK-EVEN POINT = 91,52,400
Revenue = 1,70,20,800
Net Income = 78,68,400
MAX OUTPUT:
Membership fee 1,69,34,400
Delivery: 34,94,400
Total: 2,04,28,800
