Groc_Friend: An Online Grocery Application for Australian Market

This report outlines the idea of Groc_Friend, an online grocery application for the Australian market. It discusses the market problem, benefits, proposed business model, critical success factors, and feasibility plan for the idea. The application allows consumers to view grocery items from different supermarkets and make purchases based on cheapest offers and nearest stores.

Running head: IDEA GENERATION
IDEA GENERATION
Name of the Student
Name of the University
Author Note

1IDEA GENERATION
Introduction
The e-commerce industry has not taken the Australian food retail market by storm and
therefore, it has become comparatively important for the different entrepreneurs to take an
opportunity of this and come out with an idea which will benefit the different consumers and
allow the idea generator to earn a large amount of profits (Anantadjaya, 2013). The report will be
outlining one such idea of a grocery application which will allow the consumers to view the
different grocery items being offered by the different supermarkets and allow them to make
purchases based on the cheapest offers as well as the stores nearest to the customer. Free delivery
among a designated checkout purchase will also be allowed. Hence, in lieu of this, the market
problem will be discussed which will then be followed by the benefits of the business idea to the
customers. Moreover, the proposed business model and the critical success factors with respect
to the idea will also be identified. This shall be followed by the feasibility plan which shall assess
whether the idea will be successful or not.
Market problem
The Australian grocery market is highly competitive in nature. There exists a presence of
various grocery retail stores in the country where cut throat competition exists and they
continuously engage in price wars which makes the situation very difficult for the different
consumers as they tend to get confused as to which retail store they need to purchase their
product from. Moreover, as the working population of Australia has been increasing due to the
expansion of various multinational companies and diverse workforce, more expatriates have
been coming to Australia to settle down (Boons & Lüdeke-Freund, 2013). These expatriates have
a tight work schedule whereby they cannot take out time to visit the different grocery stores to
fulfill their daily shopping needs. Moreover, they also do not get adequate time to visit these

2IDEA GENERATION
stores and understand which stores are offering the most discount and the best products. Hence,
the given app Groc_Friend will provide the different consumers with adequate information about
the different grocery retail stores which are the closest to them and also help them to make orders
directly from the application (Brigham & Houston, 2013). As the life of the consumers have
become quite hectic in nature, this application will be assisting the different consumers and
helping them to ensure that they are being able to have an access to the best product quality, with
the best product prices and the best offers. Moreover, as the different expatriates are new to the
country, this will also save them from any fraudulent activities which might take place.
Along with the popular supermarkets, different local stores can also offer their goods on
the application and thereby ensure that the customers are presented with a wide number of
options (Zott, Amit & Massa, 2011). This way the grocery stores will just be a click away for the
consumers and they can make use of the application available on Android as well iOS domains
in order to ensure that fresh grocery is being delivered at their doorsteps.
Benefits of the business idea
The benefits of the Groc_Friend application will be as follows:
1. Shopping convenience: The Groc_Friend application will allow the different consumers
to ensure that the have convenience while making the different purchases. This is because
the orders can be easily made through the online application without actually having to
visit the stores. This saves the time as well as money of the different shoppers (Chan, He
& Wang, 2013). Moreover, it also helps them to shop as per their needs and not rely
solely on fast foods.

3IDEA GENERATION
2. Good offers: The application provides good offers to the different consumers. Due to the
high cut throat competition which is present in the business environment, the different
retail stores tend to come up with various offers which can be availed through the
application by the different customers (Nilsson et al., 2015). These offers will allow the
different customers to save considerable costs and get the same product at the best price
available.
3. Unified approach: The different customers will have an access to the different stores on
the same application. In this manner, the customers will be able to check out all the offers
available in a single domain which will then permit the best product purchase at the best
price which is available.
4. Easy delivery: The customers will be able to have an access to an easy delivery option
which shall allow the customers to get the products which they have purchased, delivered
to the convenience of their homes.
5. Avoidance of long queues: Moreover, with the help of this, they will not be required to
waste long hours in the queues (Christensen et al., 2016). This shall save time as well as
energy.
6. Equal Opportunity to the sellers as well: Additionally, the application will also allow the
different sellers an opportunity to sell on equal grounds to the different consumers
(Chwolka & Raith, 2013).
7. Rising opportunity for local stores as well: Lastly, as the application will also be a
platform for the different local stores to sell their products, this will serve as a rising
opportunity for the different local shops as well and allow them to compete with the
international brands.

4IDEA GENERATION
Proposed business model
The proposed business model shall be identified and formulated based on the use of the
Business canvas model. The business canvas model shall allow the understanding of the different
aspects which the Groc_Friend business will be allowed to consider before going ahead with the
business idea.
The first aspect which has to be considered by them is the Key partners of the business.
In the given scenario, the key partners of the business shall be the App developer and the
delivery partners of the organization, the delivery partners form a key aspect of the firm as they
will assist the business in carrying out its basic operations (Arnold, 2013). Next, the key
activities of the application will involve advertising of the products as given by the different
stores, delivering the products being ordered to the different consumers, ensuring that it carries
out marketing on behalf of the different consumers and making shopping easier.
The channel which will be used by the application is the online channel. The application
will be only taking orders online and in addition to this, it will be delivering the products to the
different consumers physically at their homes though their delivery partner. Moreover, the key
resources of the organization comprise of its application, human resources, and contacts with the
different retailers and the registered office in Melbourne.
The value proposition which the application aims to offer to the different employees are
products to the convenience of their homes, good offers, good prices and free delivery offers
(Osterwalder et al., 2014). To maintain this value proposition the online application will be
maintaining healthy relationships with the customers with the help of social media marketing and
telephone customer service.

5IDEA GENERATION
The different customer segments which the firm aims to target are the different
individuals and expatriates who do not get adequate time to purchase the products online
(Armstrong et al., 2015). Moreover, it will also be catering to the needs of those customers who
do not get time to make purchases online.
The app will be earning through subscription fees from customers and stores alike along
with a commission structure. Moreover the cost structure of the firm from its marketing,
application development and delivery costs. (Refer to Appendix 2)
Critical Success Factors to be considered
Critical success factors can be essentially described as those factors the occurrence of
which is necessary to carry out a business plan successfully. The critical success factors which
are essential for the achievement of the idea and the execution have been stated as follows:
Good delivery partners: The organization needs good delivery partners in order to ensure
that the idea is successful. Ordering online business can only be successful in a scenario whereby
the delivery will be done online. Moreover, if the delivery is not made on time, it may bring
about a bad name to the organization.
IT Development: Moreover, another success factor in consideration of the online grocery
application is that there needs to be an application which is user friendly in nature with less
complexity (Osterwalder & Pigneur, 2010). If the application is very complex in nature then, the
users will not be able to make use of it and this will ultimately lead to a failure on the side of the
company. Hence, to ensure success the company needs to ensure that they have an access to an
application which functions adequately and is user friendly as well.

6IDEA GENERATION
Availability of adequate funds: During the execution of the idea, the funds hold the
utmost importance and for this purpose, the business needs to ensure that it has an access to a
large funding source (Mullins, Walker & Boyd Jr, 2013). In this manner, they will be
successfully able to ensure that whenever there arises a need, they are being able to meet with it
successfully and moreover, they also ensure that none of their objectives are deviated from.
Aligning of the goals with metrics: the Groc_Friend has an objective of achieving
maximum success with respect to the maximum downloads and in order to ensure that the firm is
successful in this aspect, it needs to design certain metrics against which the firm will be
measuring the success of its goals and objectives (Webalive.com.au., 2018).
Engaging in analysis prior to execution: analysis which needs to be performed prior to
the execution is very important and crucial as this helps in understanding whether the business
will be successful in its operations or not.
Agreement from the stores: Moreover, in order to be successful in this domain, the online
app needs to ensure that it has adequate assistance from the stores who will be actually
responsible for the purchasing of the items. If the stores fail to cooperate with the app, the idea
would not be successful.
Feasibility Study
Testing the feasibility of an idea helps the business enterprise to understand the fact
whether the business will be able to gain success in the long run or not. The feasibility tests can
be conducted by the organization with the help of various aspects (Baden-Fuller & Haefliger,

7IDEA GENERATION
2013). These domains with respect to which the feasibility of the business idea can be tested are
as follows:
Product or service evaluation
The Groc_Friend would be required to evaluate whether there exists any other business
which allows the same (Johnson, Christensen & Kagermann, 2008). Although various stores like
Woolworths, Coles and Aldi have online applications and now with the advent of Amazon,
shopping has become comparatively easier for the different companies, however, Groc_Friend
provides a single solution for all the stores which is unique.
Understanding customer base
The customer base which is being catered to comprise of the expatriates who have
recently shifted to Australia and do not get time to shop physically and hence, this application
will be a boon for them, Moreover, the e-commerce trends must be increasing considerably and
hence, the idea is suitable.
Analysis of Resources
Moreover, Groc_Friend has an access to a variety of resources which will make it useful
for them to invest in this segment.
Growth potential of the business
The e-commerce in Australia has been expanding considerably and moreover in 2017, the
Australians spent a total of $1.95 billion every month on shopping (Statista.com ., 2018). The
annual growth rate of the market is 6% which is fairly adequate (Refer to Appendix 1)

8IDEA GENERATION
Conclusion
Therefore, from the given analysis it can be stated that Groc_Friend`s idea of the online
application is considerably unique and feasible. The different analysis done in this section with
respect to the business model and other domains, given an idea that in the long run of the
enterprise, if all the planning is executed well, the idea will be a success in Australia.

9IDEA GENERATION
References
Anantadjaya, S.P., (2013). Entrepreneurs vs. Business Plans: A study of Practicality and
Usefulness.
Armstrong, G., Kotler, P., Harker, M. & Brennan, R., (2015). Marketing: an introduction.
Pearson Education.
Arnold, G. (2013). Corporate financial management. Pearson Higher Ed.
Baden-Fuller, C. & Haefliger, S. (2013). Business models and technological innovation. Long
range planning, 46(6), pp.419-426.
Boons, F.& Lüdeke-Freund, F. (2013). Business models for sustainable innovation: state-of-the-
art and steps towards a research agenda. Journal of Cleaner Production, 45, pp.9-19.
Brigham, E.F. & Houston, J.F. (2013). Fundamentals of financial management. Cengage
Learning.
Chan, H.K., He, H. & Wang, W.Y. (2013). Green marketing and its impact on supply chain
management in industrial markets. Industrial Marketing Management, 41(4), pp.557-562.
Christensen, C., Hall, T., Dillon, K., & Duncan, D. (2016). Know your customers' "jobs to be
done" . Harvard Business Review, 54-62.
Chwolka, A. & Raith, M.G. (2013). The value of business planning before start-up—A decision-
theoretical perspective. Journal of Business Venturing, 27(3), pp.385-399.
Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing your business
model. Harvard Business Review, 86(12), 50.
Mullins, J., Walker, O.C. & Boyd Jr, H.W. (2013). Marketing management: A strategic
decision-making approach. McGraw-Hill Higher Education.
Nilsson, E., Gärling, T., Marell, A. & Nordvall, A.C. (2015). Who shops groceries where and
how?–the relationship between choice of store format and type of grocery shopping. The
International Review of Retail, Distribution and Consumer Research, 25(1), pp.1-19.

10IDEA GENERATION
Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. Hoboken, New Jersey: John
Wiley & Sons Inc.
Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value Proposition. Hoboken,
New Jersey: John Wiley & Sons Inc.
Statista.com ., (2018) Ecommerce. [online] Available at:
https://www.statista.com/outlook/243/107/ecommerce/australia (Accessed on: 5. Sept.
2018)
Webalive.com.au., (2018) E-commerce Australia-2018. [Online] Available at:
https://www.webalive.com.au/ecommerce-australia-2018/(Accessed on: 5. Sept. 2018)
Zott, C., Amit, R., & Massa, L. (2011, July). The Business Model: Recent Developments and
Future Research. Journal of Management, 37(4), 1019-1042.

11IDEA GENERATION
Appendices
Appendix 1: E-commerce statistics
(Adapted from: Statista.com, 2018 and Webalive.com.au.,2018).
Appendix 2: The Business Canvas Model
Key Partners
 Delivery
Partners
 IT Partners
Key Activities
 Providing unique
options of
Value Proposition
 Free
delivery
at
Customer
Relationships
 Maintena
nce of
Customer
Segments
 Expatri
ates

12IDEA GENERATION
grocery
 Free delivery
 Additional offers
 Maintenance of
application
doorstep
for orders
above $50
 Unique
offers for
bulk
purchases
 Easy
shopping
 Saving
time and
costs
consumer
relationshi
p through
social
media
 Customer
service
helpline
who
want
good
product
at the
conven
ience
of their
homes
 House
wife’s,
student
s
 Restaur
ants
 The
differe
d
stores
Key Resources
 Office space
 Technology for
the application
 Contacts
 Human
resources
Channels
 Online
ordering
through
applicatio
n
available
on iOS
and
Android.
 Physical
channel of
delivery
Cost Structure
 Delivery partner expenses
 Maintenance
 Marketing
 IT Partners
 App maintenance
Revenue Streams
 Subscription fees and commissions
 Advertising
 Delivery charges for low price orders