Deligroce: Grocery Delivery App Business Plan

This assignment outlines a business plan for Deligroce, a mobile application that connects local grocery vendors with customers for convenient online ordering and doorstep delivery. It details the app's benefits, including time and cost savings for consumers and an expanded market reach for vendors. The plan analyzes the target market, Adelaide's youthful and tech-savvy population, and its competitive advantage in a relatively untapped market compared to established cities like Sydney. Furthermore, it proposes a revenue model based on commission sharing with vendors and delivery charges collected from customers.

Running Head: Fundamentals of entrepreneurship
Fundamentals of entrepreneurship
Elevator pitch

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Contents
Introduction......................................................................................................................................1
Benefits of the app...........................................................................................................................1
Selecting vendors.........................................................................................................................1
Saves time and cost......................................................................................................................1
Product comparison......................................................................................................................2
Industry development...................................................................................................................2
Selection of city:..............................................................................................................................2
Business Model:...............................................................................................................................2
References:......................................................................................................................................4

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Introduction
Increased internet usage and ecommerce market is the basis on which this business model is
prepared. Internet is a backbone of ecommerce marketing (Sharma, 2015). Deligroce is an online
platform which bridges local vendors and their customers through a mobile application. This
provides grocery buyers with an opportunity to buy monthly or weekly groceries without
stepping out of their house, solely via an application on their mobiles. This leads to saved time,
cost and increased convenience for the customer. This provides the vendors with an online
platform and access to a large customer base on a single screen.
Benefits of the app
Selecting vendors
Customers can select the product that they want and the vendors from whom they want their
groceries. This is extremely beneficial especially in the case of perishable goods as these local
suppliers have overtime earned a certain level of trust and developed their loyal customer base.
Moreover, consumers also feel more comfortable in buying from the vendors that they know
from before as this gives them an assurance that the product they receive will be of a desired
quality (Bisztray, 2016). On the other hand, unlike other ecommerce platforms, Deligroce does
not harm or impact the business of these vendors rather gives them an online platform and makes
them available to a larger audience.
Saves time and cost
Consumers often spend over an hour for weekly grocery shopping. Many times, all the products
required are not available at one store and hence they fulfill these needs by going to two,
sometimes more grocery stores. This consumes a lot of their time (Mittal, 2013). An online
application, makes all the products available on a single screen and they can select the products
that they want and they get delivered at their doorstep. Moreover, products are provided to
customers at a lower cost than their retail price. Various discounts, membership cards and
seasonal offers would be introduced by Deligroce to attract a larger customer segment.

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Product comparison
Before the app, consumers were visiting on store and buying their goods. They practically has no
idea if any other nearby store was offering a better quality or a lower prices product. With the
help of this app, before buying any product customers can perform a comparative analysis about
stores offered price for a particular product. This makes them a more aware consumer and helps
save cost (Currim, 2015).
Industry development
Innovations like Deligroce lead to an overall development of industry as all other players of the
market then try to match up to that level. This leads to increased efficiency in customer delivery
and hence their satisfaction. Such developments are an important part of any economy as they
bring about a fresh wave of innovation and lead to overall growth (Cusumano, 2015). Also, at
the moment, grocery stores form a much unorganized sector. There are many vendors who open
small shops at every nook and corner of the city. This development will lead to organization in
this sector.
Selection of city:
The city selected for the commencement of this venture is Adelaide. This is because the city is
comparatively small and the crowd is youthful and tech savvy. The advent of internet started
with this demography of people and hence they are ideal customers for Deligroce and would be a
perfect audience to start with (Lian, 2014). Also, cities like Sydney are already a red ocean
market for such ecommerce business introduction. Adelaide is still untapped and hence it would
provide for a good learning experience for Deligroce. Once the Adelaide market is reasonably
captured, other cities of Australia would be targeted with the same technology and business
model.
Business Model:
An application based portal would be designed where people would come and place their orders
from their desired grocery shop around them through DELIGROCE APP. The pricing of the total
purchase would show to them through the electronic calculation methods. And the order would

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be placed to the seller, our DELIGROCE APP will allocate the nearest Delivery partner to pick
up the order from the shop and deliver to the customers house address. Grocery seller would
provide a share percentage to the grocery online services (DELIGROCE) and DELIGROCE will
collect minimal delivery charges from customer as per kilometer between shop and customer
house. From the total profit earned from each delivery will be shared 25% to DELIGROCE and
75% to our Deliver partner

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References:
Sharma, S. (2015). Internet Marketing: The Backbone of Ecommerce. International Journal of
Emerging Research in Management &Technology, 4(12), 200-202.
Lian, J. W., & Yen, D. C. (2014). Online shopping drivers and barriers for older adults: Age and
gender differences. Computers in Human Behavior, 37, 133-143.
Bisztray, M. (2016). The effect of FDI on local suppliers.
Currim, I. S., Mintz, O., & Siddarth, S. (2015). Information accessed or information available?
The impact on consumer preferences inferred at a durable product E-commerce website. Journal
of Interactive Marketing, 29, 11-25.
Cusumano, M. A., Kahl, S. J., & Suarez, F. F. (2015). Services, industry evolution, and the
competitive strategies of product firms. Strategic management journal, 36(4), 559-575.
Mittal, A. (2013). E-commerce: It’s Impact on consumer Behavior. Global Journal of
Management and Business Studies, 3(2), 131-138.

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