Professional Documents
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Groceries R Usfinalpresentation
Groceries R Usfinalpresentation
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.
LOCATION:
One Oxford Center, 301 Grant Street, Suite 4300, Pittsburgh, Pennsylvania, 15219
NETGROCER
Strengths
Strengths
Strengths
-Very inexpensive
-- Inexpensive
Weakness
Weakness
-Unknown company
Weakness
-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.
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
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.
2.
3.
4.
5 year goal:
To expand delivery hours to include 7 days per week.
SOCIAL RESPONSIBILITY
Hybrid Delivery
Vans
Reusable Shopping
Bags
Recycling Program
Pricing
College Students
Prices are higher than other grocery delivery services in the city
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
Product Differentiation
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
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
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
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
Jan
Deliveries
$3,364
Cost of Deliveries
$500
Feb
Mar
Apr
$1,500
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
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
$247,820
$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
-$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