BUSINESS PLAN:

SHANNON LOWERY
ERIN FAIGHT
CHRISTINA RULLO
ALEC ROBERTSON

LEGAL NAME:
Groceries-R-Us

BUSINESS DESCRIPTION:
Our company will offer the service of delivering groceries to people who are unable to conveniently grocery shop themselves.
We will take orders via phone and online and fulfill the orders before delivering the items to customers. For a la carte
orders, customers will pay the fee of the groceries plus a percentage of interest which will be the profit for our service.
We also will offer special packages for target groups such as a family-friendly, college focused, and health-enthused
customers.

FORM OF BUSINESS OWNERSHIP:

Multi-Partner Partnership

LOCATION:
One Oxford Center, 301 Grant Street, Suite 4300, Pittsburgh, Pennsylvania, 15219

VISION AND MISSION STATEMENT:

Groceries-R-Us will strive to provide the most affordable and convenient service to our customers in Allegheny County who
will also receive the highest quality customer service. We take the hassle out of shopping in store, while still bringing the
same great quality of your favorite products right to your front door.

COMPETITIVE MARKET ANALYSIS

WAL-MART

NETGROCER

Strengths

Strengths

Strengths

-A huge brand name

-Very inexpensive

-Large selection of brand name products

-- Already have a well established customer base.

-- Simple website layout

-- Wide variety of product choices and categories of

products

-Already own and distribute groceries in store, so

they will not be a middle man for the grocery
delivery process

-Solid social media integration

-Simple easy to use website

-- Service all 50 states

-- Services exclusively to Western PA

-- Inexpensive

Weakness

Weakness

- Great social media following

-Unknown company

Weakness

-- Very limited brand selection

-Not well advertised

-Delivery outsourced by FedEx

-- Limited selection of groceries and brands

-- Does not service Allegheny county

- Not able to focus marketing efforts specifically on

groceries because they have a wide selection of
products and product categories

BEST GROCERY DELIVERY

-Unknown company
- Ugly website design
-No social media
-- Very limited delivery areas
- Expensive

INDUSTRY PROFILE
SWOT ANALYSIS
Strengths

Opportunities:

-Our company will be unique because unlike our competitors we also will offer special
packages for target groups such as a family-friendly, college focused, and healthenthused customers. This will provide a quicker and more effective buying process for
our target market that will fit in well with their busy lifestyle.
-Another great selling point for our business is the fact that the products that we are
distributing will be purchased from Foodland, this grocery store already has a loyal
customer base and a reputation for reasonably priced products. Our service will add
on to the benefit that Foodland already provides its customers.
-Finally we will sell exclusively to Allegheny County ensuring our customers that our focus is
local and not like a corporation who can sometimes forget about segments of its
geographic market.

Weakness and Planned Resources

Our biggest anticipated challenge is getting Foodland on board with the partnership. we hope
that our business model along with the fact that we will provide service for only their
customers will sway them into accepting our offer. The biggest resource we have in this
case is exclusivity for Foodland.

The biggest opportunity that we see is being able to

provide healthy lifestyle bundles, based on statistics
and sociocultural analysis we have concluded that
consumers want healthier food options but it is clear
to us that they dont have the time to research what is
healthy or not so we step in and do the legwork for
them.

Threats:
The largest environmental factor for our company is
the rising gas prices, it is hard to determine where
gas will be at the end of every quarter therefore it is
hard to determine our costs. If we are paying
extremely high gas prices we will have to raise our
delivery charge for customers in order to make any
sort of profit and this will cause a loss of business.

Our next concern is whether or not people will choose to use our business over that of a
national chain like Wal-Mart because we are the middle man for Foodland, while WalMart already has access to its own product. Our hope is that the added benefit of the
packaging/ bundling option will make our company stand out above that of our
competition. The resources that make this a challenge we can overcome is the fact
that the delivery process is not outsourced like our competition, we have our own
trucks and delivery equipment making the prices comparable.

Industry Description

- Our business is a grocery delivery company in the service industry because we provide the
service of grocery delivery as well as bundling groceries for different individual or family needs
and wants. Our growth potential is very high because based on a study by seekingalpha.com,
focus on consumer health is one of the leading trends in 2012. Our bundling service provides
the consumer with the option of choosing a healthy lifestyle bundle. Being able to offer the
consumer healthier options at the click of a button, without the hassle of doing their own
research into healthier food options will give us a huge edge in the grocery delivery industry.

ORGANIZATIONAL
CHART

Business Owners:
Christina, Erin, Alec and Shannon
-Create vision of business, oversee
operations, handle hiring of
FINANCIAL MANAGER:
management
OPERATIONS MANAGER:
regulates cash -low; keeps
records of revenue,
expenses, assets, and
liabilities; advises owners
on business operations
based on -inancial status;
manages assistants

Assistants to the
Financial Manager: Offer
help and assistance to the
-inancial manager with in-
of-ice tasks (-iling,
answering phones, etc.);
assistant with building
annual cash -low
statement and budget
statement

PROMOTIONS: This area

will strive to spread the
name and mission of the
business under the
direction of the operations
manager. Tasks of this part
of the business may
include public relations
and promotional events as
well as advertising.

oversees how the business

is working to achieve the
mission statement in the
areas of customer service,
use of resources, service
operations, and
promotional activities

Online: Under the

direct
management of
the operations
manager, the
workers of the
website will build
and update the
website as well as
manage online
orders.

Phone: Under
the direct
management of
the operations
manager, the
in-of-ice phone
operators will
take orders via
telephone.

CUSTOMER SERVICE:
This area of the business is
directed by the operations
manager. Customers can
call the of-ice with any
questions or concerns
regarding the business and
its services/products.
Customer service will also
keep polls and statistics of
customer satisfaction
ratings regarding the
business.

3 year goal:
To be recognized as the areas premier provider for grocery delivery
service.
To increase company size to 12 employees (4 owners and 8 delivery
drivers) over the first 3 years of operation.

CODE OF ETHICS
1.

Respect, honesty and fairness

must be maintained with the
highest priority in all working
relationships

2.

All delivery commitments must be

handled promptly and courteously
by our staff.

3.

We will continue to make the

business grow through common
goals and teamwork.

4.

Employee safety will be held in high

priority

To increase delivery vehicle fleet to 8 vehicles.

To make a profit of $500,000 during year 3 operations.
To expand service area to include a 30 mile radius around the City of
Pittsburgh.

5 year goal:
To expand delivery hours to include 7 days per week.

SOCIAL RESPONSIBILITY

To increase delivery vehicle fleet to 12 vehicles.

To increase company size to 16 employees (4 owners and 12 delivery
drivers) over the first 5 years of operation.
To make a profit of $1,500.000 during year 5 operations.

Hybrid Delivery
Vans

Reusable Shopping
Bags

Recycling Program

MARKET RESEARCH AND PLANNING

Target Market

Pricing

Busy working professionals

Pricing is a straight 30% gratuity added to the total grocery bill

College Students

Prices are higher than other grocery delivery services in the city

Seniors on a fixed income

Higher price for a higher level of service and leave room for discounts

Product Feature
Customers will be able to choose their products by
simply checking a box on our website
Customers can request specific packages- health
food- diabetic diet-food allergies

Advertising and Promotion

ValuPak- Coupon distribution service that has the ability to deliver up
to 10,000 homes in your particular target market for a fee.
Flyer distribution- Senior centers, collage campuses, and grocery
stores

Product Differentiation

Google, Yahoo, and Bing profile

Comprehensive list for packages to create a

customer profile

Google ADWORDS

Phone orders
Delivery time will be predetermined by the customer

Distribution
Our service will be available online and over the phone.
The products will be delivered straight to the customers door.

FINANCIALS

Projected Order Cost/ Profit

Weekly Cost

Source of Capital/Financing
Source Of Capital

Responsible Party
Investment Amount
Faight, Erin (25%)
$25,000.00
Lowery, Shannon (25%)
$25,000.00
Owner's Investment
Robertson, Alec (25%)
$25,000.00
Rullo, Christina (25%)
$25,000.00
Bank Loan
Start Up Bank Loan
$100,000.00
Total Capital
$200,000.00

initial Start Up Costs

Start Up Item
Office Space (Deposit)
Salaries & Wages
Supplies: Technological,
Equipment, Furniture, Other
(computers, software, copy
machine, desks, chairs, etc.)
Advertising & Other Promotions
Utilities: Telephone, Internet
Insurance
Deliver Vehicle Purchase
Total Start Up Costs
Total Capital
Difference

Estimated Cost
$1,476.00
$17,833.33
$10,000.00
$1,500.00
$800.00
$800.00
$80,000.00
$112,409.33
$200,000.00
$87,590.67

Age-gender groups Low-Cost Moderate-

Average-
Plan
Cost Plan
Cost Plan
Male:
$53.20
$67.40
$60.30
19-50
$50.70
$62.70
$56.70
51-70
$50.50
$62.10
$56.30
71+
Female:
$46.70
$57.80
$52.25
19-50
$45.50
$56.50
$51.00
51-70
$45.30
$55.90
$50.60
71+
Familes of 2
$110.50
$137.70
$124.10
19-50
$105.90
$131.10
$118.50
51-70
Familes of 4
Couple 19-50 and
$198.00
$179.05
children 2-3 & 4-5 $160.10
Couple 19-50 and
$235.70
$212.45
children 6-8 & 9-11 $189.20
Average store cost per order
$96.13
Average delevery charge per order
$33.64
Average expense per order
-$10.00
Average profit per order
$23.64
Data Recource:
http://www.cnpp.usda.gov/Publications/FoodPlans/2012/
CostofFoodAug2012.pdf

BREAKEVEN ANALYSIS
Break Even Analysis
Number of Deliveries per month
Fixed Cost Assumption
Variable Cost Assumption per Delivery
Total Cost per Delivery
Projected Delivery Revnue
Revenue

1
$21,931.00
$5.00
$21,936.00
$33.64
-$21,902.36

500
$21,931.00
$2,500.00
$24,431.00
$16,821.88
-$7,609.13

600
$21,931.00
$3,000.00
$24,931.00
$20,186.25
-$4,744.75

700
766
800
900
1000
$21,931.00 $21,931.00 $21,931.00 $21,931.00 $21,931.00
$3,500.00 $3,830.00 $4,000.00 $4,500.00 $5,000.00
$25,431.00 $25,761.00 $25,931.00 $26,431.00 $26,931.00
$23,550.63 $25,771.11 $26,915.00 $30,279.38 $33,643.75
-$1,880.38
$10.11
$984.00
$3,848.38 $6,712.75

1100
$21,931.00
$5,500.00
$27,431.00
$37,008.13
$9,577.13

1200
$21,931.00
$6,000.00
$27,931.00
$40,372.50
$12,441.50

12-MONTH PROFIT & LOSS STATEMENT

Jan
Deliveries

$3,364

Cost of Deliveries

$500

Feb

Mar

Apr

$6,729 $10,093 $20,186 $13,458

$1,000

$1,500

Office Space Rent (includes utilities) $738

$738
$738
Salaries & Wages
$17,833 $17,833 $17,833
Advertising & Other Promotions
$500
$500
$500
Utilities: Telephone, Internet
$160
$160
$160
Insurance
$800
$800
$800
Bank Loan
$1,700 $1,700 $1,700
Delivery Vehicle Maintenance
$200
$200
$200
Total Fixed Expenses
$21,931 $21,931 $21,931
Net Profit / Loss

Q1

$3,000

$2,000

$2,214 $738
$53,500 $17,833
$1,500 $500
$480
$160
$2,400 $800
$5,100 $1,700
$600
$200
$65,794 $21,931

-$19,067 -$16,203 -$13,338 -$48,608 -$10,474

May

Jun
Q2
Revenue
$16,822 $20,186 $50,466
Variable Expense
$2,500 $3,000 $7,500
Fixed Expenses
$738
$738 $2,214
$17,833 $17,833 $53,500
$500
$500 $1,500
$160
$160
$480
$800
$800 $2,400
$1,700 $1,700 $5,100
$200
$200
$600
$21,931 $21,931 $65,794
Net Profit / Loss
-$7,609 -$4,745 -$22,828

Jul

Aug

Sep

Q3

Oct

Nov

Dec

Q4

Year to Date

$23,551 $25,771 $26,915 $76,237 $30,279 $33,644 $37,008 $100,931

$247,820

$3,500 $3,830 $4,000 $11,330 $4,500 $5,000 $5,500 $15,000

$36,830

$738
$17,833
$500
$160
$800
$1,700
$200
$21,931

$738
$17,833
$500
$160
$800
$1,700
$200
$21,931

$738
$17,833
$500
$160
$800
$1,700
$200
$21,931

$2,214
$53,500
$1,500
$480
$2,400
$5,100
$600
$65,794

$2,214
$53,500
$1,500
$480
$2,400
$5,100
$600
$65,794

$8,856
$214,000
$6,000
$1,920
$9,600
$20,400
$2,400
$263,176

-$1,881

$10

$984

-$887

$3,848 $6,712 $9,577 $20,137

-$52,186

$738
$17,833
$500
$160
$800
$1,700
$200
$21,931

$738
$17,833
$500
$160
$800
$1,700
$200
$21,931

$738
$17,833
$500
$160
$800
$1,700
$200
$21,931

EMPLOYEE SALARY

Employees

Hourly Salary

Faight, Erin
Lowery, Shannon
Robertson, Alec
Rullo, Christina
Driver 1
Driver 2
Driver 3
Driver 4
Total Compensation

$17.07
$17.07
$17.07
$17.07
$8.65
$8.65
$8.65
$8.65
$102.88

Estimated
Estimated Yearly
Monthly Salary
Salary
$2,958.33
$35,499.99
$2,958.33
$35,499.99
$2,958.33
$35,499.99
$2,958.33
$35,499.99
$1,500.00
$18,000.00
$1,500.00
$18,000.00
$1,500.00
$18,000.00
$1,500.00
$18,000.00
$17,833.33
$213,999.96

BALANCE SHEET