Post Covid-19 Business Plan for X Grocery Store: Home Delivery of Groceries
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This report discusses the post covid-19 business plan for X Grocery Store, UK which focuses on home delivery of groceries. It includes an industry analysis, operations and management team, marketing mix, financials and more.
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BUSINESS PLAN
BUSINESS DESCRIPTION / MARKET OPPORTUNITY
Home delivery is now widely used after covid-19 pandemic, with respect to this the post covid-19 business plan is selected in this report is
home delivery of groceries and company name is X grocery store, UK. According to research, there is an increasing trend in grocery industry
and innovation such as speedy checkouts, book groceries online with speedy application and others. After covid-19, people are more
concerned about price, quality and their purchasing situation, so, the company has targeted the audience who likes to purchase online or want
home delivery of food items.
Mission statement- The company’s main purpose is to provide wide range of products and focusing on health and fitness of people in order to
save planet from illness.
Vision statement- To Be the destination for audience to purchase healthy food and make the world a better place by offering discounts and
quality services.
Values- The company sells good quality and fresh products in order to satisfy customers, promoting team work within the company’s culture
and create prosperity. The major focus is to care about people’s health and make eco-friendly environment which is beneficial for planet.
BUSINESS DESCRIPTION / MARKET OPPORTUNITY
Home delivery is now widely used after covid-19 pandemic, with respect to this the post covid-19 business plan is selected in this report is
home delivery of groceries and company name is X grocery store, UK. According to research, there is an increasing trend in grocery industry
and innovation such as speedy checkouts, book groceries online with speedy application and others. After covid-19, people are more
concerned about price, quality and their purchasing situation, so, the company has targeted the audience who likes to purchase online or want
home delivery of food items.
Mission statement- The company’s main purpose is to provide wide range of products and focusing on health and fitness of people in order to
save planet from illness.
Vision statement- To Be the destination for audience to purchase healthy food and make the world a better place by offering discounts and
quality services.
Values- The company sells good quality and fresh products in order to satisfy customers, promoting team work within the company’s culture
and create prosperity. The major focus is to care about people’s health and make eco-friendly environment which is beneficial for planet.
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INDUSTRY ANALYSIS- It is a business tool through which company can understand the market position of its business by comparing other
companies position that produce same goods or services. An effective strategic planning is necessary to understand the market force and
customer trends in retail and groceries industry.
Threat of new entry- According to porters’ theory, if it is easy for competitive business or company to enter the similar market, this also
includes brand equity, access to distribution channel, price advantages and funds requirements, policies made by government (Verbeke and
Yuan, 2021). Here, the existing players in grocery industry might impose barriers to entry for new start-ups business. For example- due to
pandemic, there has been an increasing trend in online servicing and home delivery of groceries. Therefore, people are more focused on social
distancing and differentiation strategy.
Threat of substitutes- Due to heavy competition and existence of substitutes, customers are having more options to purchase things from
different companies. This factor has definitely affect the attractiveness of the company and impact the profitability. This is just because
options for product and services influence the cost of goods and demand for the goods and services from the audience as well. Therefore, after
coronavirus the threat from the substitutes in retail and grocery industry is very high as compared to other industry. The buying behaviour and
willingness is totally dependent upon factors like cost of goods, quality, facilities, discounts, offers and substitute products performance.
companies position that produce same goods or services. An effective strategic planning is necessary to understand the market force and
customer trends in retail and groceries industry.
Threat of new entry- According to porters’ theory, if it is easy for competitive business or company to enter the similar market, this also
includes brand equity, access to distribution channel, price advantages and funds requirements, policies made by government (Verbeke and
Yuan, 2021). Here, the existing players in grocery industry might impose barriers to entry for new start-ups business. For example- due to
pandemic, there has been an increasing trend in online servicing and home delivery of groceries. Therefore, people are more focused on social
distancing and differentiation strategy.
Threat of substitutes- Due to heavy competition and existence of substitutes, customers are having more options to purchase things from
different companies. This factor has definitely affect the attractiveness of the company and impact the profitability. This is just because
options for product and services influence the cost of goods and demand for the goods and services from the audience as well. Therefore, after
coronavirus the threat from the substitutes in retail and grocery industry is very high as compared to other industry. The buying behaviour and
willingness is totally dependent upon factors like cost of goods, quality, facilities, discounts, offers and substitute products performance.
Bargaining power of customers- Buyers can be company, people, customers, retailers and industrial buyers who are the ultimate purchaser
of company’s goods and services. A buyer’s purchasing and bargaining power is high when the scope for switching from one vendor to
another is more. When the customer feels there is another available option for product and services they are going to buy without any further
thinking (Quenum and et.al., 2021). Because of available goods with better and reasonable price or discount, cost sensitivity and poor loyalty
towards brand will influence the bargaining power and tend to be very high in this competitive market. For example- if customer will get
options of food items availability at reasonable price with better quality, then this sensitivity towards the cost will influence the bargaining and
buying behaviour of customers.
Bargaining power of suppliers- suppliers basic role is to supply the required goods or service to the industry, so, this can be in the form of
raw material, technology, financial support and others. There are many factors which influence the bargaining power of the suppliers such as
quality of raw material, cost, uniqueness of products. This factor will increase the capacity and interest of suppliers to bargain. For example- if
supplier will get availability of groceries items at reasonable price and requires quality as per the trend and demand of audience, then their
bargaining power will increase.
Competitive Rivalry:
Name of competitor Differentiation
Walmart The company is utilizing marketing strategy where people will get everyday low prices and providing facility of
one-stop shopping in order to attract customer. X grocery stores utilizes discount pricing strategy where the
customer will get discount if they make purchase in bulk rather than purchasing a single item.
The fresh
supermarket
The fresh market focus on quality service and providing fresh items to its audience. The main goal of this company
is to motivate people to make everyday eating fresh. The firm have good distribution channel with 130+ physical
of company’s goods and services. A buyer’s purchasing and bargaining power is high when the scope for switching from one vendor to
another is more. When the customer feels there is another available option for product and services they are going to buy without any further
thinking (Quenum and et.al., 2021). Because of available goods with better and reasonable price or discount, cost sensitivity and poor loyalty
towards brand will influence the bargaining power and tend to be very high in this competitive market. For example- if customer will get
options of food items availability at reasonable price with better quality, then this sensitivity towards the cost will influence the bargaining and
buying behaviour of customers.
Bargaining power of suppliers- suppliers basic role is to supply the required goods or service to the industry, so, this can be in the form of
raw material, technology, financial support and others. There are many factors which influence the bargaining power of the suppliers such as
quality of raw material, cost, uniqueness of products. This factor will increase the capacity and interest of suppliers to bargain. For example- if
supplier will get availability of groceries items at reasonable price and requires quality as per the trend and demand of audience, then their
bargaining power will increase.
Competitive Rivalry:
Name of competitor Differentiation
Walmart The company is utilizing marketing strategy where people will get everyday low prices and providing facility of
one-stop shopping in order to attract customer. X grocery stores utilizes discount pricing strategy where the
customer will get discount if they make purchase in bulk rather than purchasing a single item.
The fresh
supermarket
The fresh market focus on quality service and providing fresh items to its audience. The main goal of this company
is to motivate people to make everyday eating fresh. The firm have good distribution channel with 130+ physical
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stores where customer can buy things. Unique facility such as providing positive atmosphere to its customer where
they play classical music and employee offer a warm welcome in order to greet people and receive great
assistance. X grocery store provides different programs to attract their customers such as meal pack ideas, vacation
package idea, marketing strategy like video conferencing in order to engage clients.
Kroger the company provides wide range of goods and service to its customers in US, includes home products, organic
foods. The firm has different stores in various locations, it allows customers to buy what they require and satisfy
their needs. X Grocery store provides online business for easy shopping so that clients can make purchase based
on their needs by adding things directly to special discount cart.
Natural grocers The company provides high-quality goods at reasonable price with wide range of presence in various locations
having 65 stores. The firm also offer free health and health related information that may increase interest of clients
to make purchase. They offer organic food and natural food by focusing on eco-friendly environment which is
beneficial for everyone. X grocery store is now focusing on organic food and offer various discount to those
clients who are more concerned about health and fitness. The firm is offering free health advice to covid-19
patients and providing them quality services if necessary.
they play classical music and employee offer a warm welcome in order to greet people and receive great
assistance. X grocery store provides different programs to attract their customers such as meal pack ideas, vacation
package idea, marketing strategy like video conferencing in order to engage clients.
Kroger the company provides wide range of goods and service to its customers in US, includes home products, organic
foods. The firm has different stores in various locations, it allows customers to buy what they require and satisfy
their needs. X Grocery store provides online business for easy shopping so that clients can make purchase based
on their needs by adding things directly to special discount cart.
Natural grocers The company provides high-quality goods at reasonable price with wide range of presence in various locations
having 65 stores. The firm also offer free health and health related information that may increase interest of clients
to make purchase. They offer organic food and natural food by focusing on eco-friendly environment which is
beneficial for everyone. X grocery store is now focusing on organic food and offer various discount to those
clients who are more concerned about health and fitness. The firm is offering free health advice to covid-19
patients and providing them quality services if necessary.
OPERATIONS AND MANAGEMENT TEAM
OPERATIONS
X grocery store operations and management involves a variety of methods that are majorly focused on inventory and managing the supply
chain in order to satisfy customer by giving them goods and services. The business process of the firm includes sales performance, marketing
strategy and employee’s performance. The firm cover decision making process for areas of operations management team. These decisions
pertain to the major issues that the managers deal on the daily basis to optimize the resources related to the e-commerce business operations.
Processes will include designing of goods, packaging, delivery on time period, quality management, location strategy to satisfy preferences to
shop, job design, supply chain management, maintenance.
In order to find out grocery store suppliers’ company would understand distribution network by managing relationship Professionally with
others will be helpful. With the help of research, company needs to try the list of manufacture by getting specific in online searches. The firm
will look for B2B and B2C marketplaces and take subscriptions to trade publications will definitely work (Indrawati and et.al., 2021). There
are many equipment which is important such as refrigerators, grocery shopping baskets, disposable bags, racks and others. The management
team will start by shipping fresh materials and final products to a packaging house where the items are run through a business process to
prepare them for attractive packaging using paper bags. The best way to achieve customer satisfaction is to use successful distribution
strategy. This strategy is one of the most important tasks in which company uses elements of marketing mix and totally relies upon home
delivery, sales and quality servicing. So, by choosing this channels company can reach their target customers and group of people.
How would you generate revenue for your business?
The company management team will collect important business information and gather the related ideas about real time issues by confirming
the services (WILTON, 2021) Later the firm will collect payments for reimbursement and further consider offering a coupons and discounts
by understanding the needs of clients.
OPERATIONS
X grocery store operations and management involves a variety of methods that are majorly focused on inventory and managing the supply
chain in order to satisfy customer by giving them goods and services. The business process of the firm includes sales performance, marketing
strategy and employee’s performance. The firm cover decision making process for areas of operations management team. These decisions
pertain to the major issues that the managers deal on the daily basis to optimize the resources related to the e-commerce business operations.
Processes will include designing of goods, packaging, delivery on time period, quality management, location strategy to satisfy preferences to
shop, job design, supply chain management, maintenance.
In order to find out grocery store suppliers’ company would understand distribution network by managing relationship Professionally with
others will be helpful. With the help of research, company needs to try the list of manufacture by getting specific in online searches. The firm
will look for B2B and B2C marketplaces and take subscriptions to trade publications will definitely work (Indrawati and et.al., 2021). There
are many equipment which is important such as refrigerators, grocery shopping baskets, disposable bags, racks and others. The management
team will start by shipping fresh materials and final products to a packaging house where the items are run through a business process to
prepare them for attractive packaging using paper bags. The best way to achieve customer satisfaction is to use successful distribution
strategy. This strategy is one of the most important tasks in which company uses elements of marketing mix and totally relies upon home
delivery, sales and quality servicing. So, by choosing this channels company can reach their target customers and group of people.
How would you generate revenue for your business?
The company management team will collect important business information and gather the related ideas about real time issues by confirming
the services (WILTON, 2021) Later the firm will collect payments for reimbursement and further consider offering a coupons and discounts
by understanding the needs of clients.
MANAGEMENT TEAM
Name Skills What do they bring to the firm
Marketing team Online and email marketing, content
creation, problem solving, attention to
customer needs.
This team plays an important role in the
company, as they the responsible people to
attract more audience with their marketing
skills.
Accounting team Spreadsheet proficiency and maintaining
accounting report to analyse the business
position and market share.
Providing industrial knowledge and
maintaining accounts to the firm with the
help of strong financial reporting abilities,
so, that financial team can make important
decisions.
Operational team technical and analytical skills The ability to communicate with top level
management to discuss operational activities.
Financial team Skills like cash inflow and outflow
management, capital budgeting and
management report to support company.
Providing finance control, risk management,
payroll and financial decisions
Human resources department Foster organisational culture They create positive company culture with
the help of their basic job responsibilities
such as payroll, recruitment, selection,
performance management, team work.
MARKETING:
Marketing mix is a strategy used by company to put the right goods at right price in a right place at right time to its customers as per their
preferences, trend, needs and requirements (Lim, 2021).’ X ‘Grocery store uses its marketing mix which emphasizes product quality and
relations of public
Product
Name Skills What do they bring to the firm
Marketing team Online and email marketing, content
creation, problem solving, attention to
customer needs.
This team plays an important role in the
company, as they the responsible people to
attract more audience with their marketing
skills.
Accounting team Spreadsheet proficiency and maintaining
accounting report to analyse the business
position and market share.
Providing industrial knowledge and
maintaining accounts to the firm with the
help of strong financial reporting abilities,
so, that financial team can make important
decisions.
Operational team technical and analytical skills The ability to communicate with top level
management to discuss operational activities.
Financial team Skills like cash inflow and outflow
management, capital budgeting and
management report to support company.
Providing finance control, risk management,
payroll and financial decisions
Human resources department Foster organisational culture They create positive company culture with
the help of their basic job responsibilities
such as payroll, recruitment, selection,
performance management, team work.
MARKETING:
Marketing mix is a strategy used by company to put the right goods at right price in a right place at right time to its customers as per their
preferences, trend, needs and requirements (Lim, 2021).’ X ‘Grocery store uses its marketing mix which emphasizes product quality and
relations of public
Product
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The company needs to identify what customer want from the company as product or service. The retail company deal in grocery items
providing facilities and services to its customers (Purohit, Paul and Mishra, 2021). As a grocery and health food business and home delivery of
food items, X grocery store has a wide range of goods. They deal in fresh food, pulses, cereals and other related groceries products according
to taste and demand of audience. The store deal in products which are eco-friendly and focus on special dietary needs for customers who are
more concerned about their health. The firm provides special and healthy food items online and offline specially for patients who needs more
fresh items and healthy food.
Price:
A pricing strategy is the method used by the company in order to set the cost of products and services in this competitive world. Specially
after coronavirus. The company utilizes discount pricing strategy in which price of product is decreased in order to increase customer base,
driving sales and moving inventory (Marketing mix, 2021). Nowadays people are more concerned about price so here, audience are drawn to
lower cost in order to satisfy them. For example- customer may agree to buy a cereal which costs, $20 a for 1 year every month, and then he
would get a discount cost of $3. Therefore, another customer may agree to purchase cereals in bulk at one time and get a discount in order to
satisfy their own needs.
Promotional Mix
“X” grocery store deal in varieties of product or service so, the company uses different method to promote its brand name, depending on the
market conditions and weather conditions. Due to covid-19, every business is using online marketing to attract more customers and create
market position with the help of new technology and innovative ideas. There are different promotional activity which is used by company such
as direct selling, sales promotions, advertising, online marketing, social media. Although the brand also uses market campaigns for those
people who are more concerned about health and physical fitness. The company also gets involves in public relations programs such as save
covid-19 patients. In addition to this, the firm offers coupons and discounts as a form of sales promotions in order to attract more audience.
Place (Distribution strategy
“X” grocery store expanding its business by adding more distribution channel and locations so that people can purchase varieties of goods and
providing facilities and services to its customers (Purohit, Paul and Mishra, 2021). As a grocery and health food business and home delivery of
food items, X grocery store has a wide range of goods. They deal in fresh food, pulses, cereals and other related groceries products according
to taste and demand of audience. The store deal in products which are eco-friendly and focus on special dietary needs for customers who are
more concerned about their health. The firm provides special and healthy food items online and offline specially for patients who needs more
fresh items and healthy food.
Price:
A pricing strategy is the method used by the company in order to set the cost of products and services in this competitive world. Specially
after coronavirus. The company utilizes discount pricing strategy in which price of product is decreased in order to increase customer base,
driving sales and moving inventory (Marketing mix, 2021). Nowadays people are more concerned about price so here, audience are drawn to
lower cost in order to satisfy them. For example- customer may agree to buy a cereal which costs, $20 a for 1 year every month, and then he
would get a discount cost of $3. Therefore, another customer may agree to purchase cereals in bulk at one time and get a discount in order to
satisfy their own needs.
Promotional Mix
“X” grocery store deal in varieties of product or service so, the company uses different method to promote its brand name, depending on the
market conditions and weather conditions. Due to covid-19, every business is using online marketing to attract more customers and create
market position with the help of new technology and innovative ideas. There are different promotional activity which is used by company such
as direct selling, sales promotions, advertising, online marketing, social media. Although the brand also uses market campaigns for those
people who are more concerned about health and physical fitness. The company also gets involves in public relations programs such as save
covid-19 patients. In addition to this, the firm offers coupons and discounts as a form of sales promotions in order to attract more audience.
Place (Distribution strategy
“X” grocery store expanding its business by adding more distribution channel and locations so that people can purchase varieties of goods and
have more options to choose. This place defines the location or venue through which goods are provided to customers such as online stores,
physical stores (Mintz and et.al., 2021). These are the main places for distributing the goods and services, customers can make purchase online
through its website and mobile application. for example- if customer wants to purchase anything, he can go to its website named as X grocery
store, by adding items to card and make online payment.
FINANCIALS
Sources of funds: where would you be getting funds from?
Funding for start-ups- there are various sources of funds which the company uses retained earnings from various business operations in order
to expand its business with the help of capital, debt capital and other sources. For initial funding the company will take debt from friends and
relatives and business loan from bank.
Use of funds
($) Month 1 $ Month 2 ($) Month 3 Month 4 Month 5 Month 6
Revenue (from
your operations
and marketing
section)
5000 6000 7000 5000 5000 8000
Fixed Costs 2000 2000 2000 2000 2000 2000
physical stores (Mintz and et.al., 2021). These are the main places for distributing the goods and services, customers can make purchase online
through its website and mobile application. for example- if customer wants to purchase anything, he can go to its website named as X grocery
store, by adding items to card and make online payment.
FINANCIALS
Sources of funds: where would you be getting funds from?
Funding for start-ups- there are various sources of funds which the company uses retained earnings from various business operations in order
to expand its business with the help of capital, debt capital and other sources. For initial funding the company will take debt from friends and
relatives and business loan from bank.
Use of funds
($) Month 1 $ Month 2 ($) Month 3 Month 4 Month 5 Month 6
Revenue (from
your operations
and marketing
section)
5000 6000 7000 5000 5000 8000
Fixed Costs 2000 2000 2000 2000 2000 2000
(List out your
fixed costs)
EQUIPMENT
LOAN
MATERIALS
Variable Costs
(List out your
variable costs)
PRODUCTION
SUPPLIES
LABOR
($)
1000 1000 1000 2000 1000 1000
Profit 2000 3000 4000 1000 2000 5000
Market research
Political- Government has made free trade agreements for grocery store in UK, SO, this is major opportunity in order to improve its standards to
ensure proper labelling of organic goods (Pestle analysis, 2021). It has positive impact on business expansion now the firm can expand its
production in new locations too.
Economic- Due to rising labour costs in developing countries the company has to face threat because supply chain is depended on producers in
developing markets. The firm has opportunity to grow its business and maintain economic stability by providing jobs to needy people in US.
fixed costs)
EQUIPMENT
LOAN
MATERIALS
Variable Costs
(List out your
variable costs)
PRODUCTION
SUPPLIES
LABOR
($)
1000 1000 1000 2000 1000 1000
Profit 2000 3000 4000 1000 2000 5000
Market research
Political- Government has made free trade agreements for grocery store in UK, SO, this is major opportunity in order to improve its standards to
ensure proper labelling of organic goods (Pestle analysis, 2021). It has positive impact on business expansion now the firm can expand its
production in new locations too.
Economic- Due to rising labour costs in developing countries the company has to face threat because supply chain is depended on producers in
developing markets. The firm has opportunity to grow its business and maintain economic stability by providing jobs to needy people in US.
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Social- As people are more concerned about health, the company has opportunity to grow its business by providing them good quality
products and satisfy the healthy lifestyle trend going on right now.
Technological- Due to heavy competition in technologies and new innovative ideas, the firm has opportunity to increase automation and usage
of mobile technology.
products and satisfy the healthy lifestyle trend going on right now.
Technological- Due to heavy competition in technologies and new innovative ideas, the firm has opportunity to increase automation and usage
of mobile technology.
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REFERENCES (AT LEAST TEN REFERENCES)
Lim, W. M., 2021. A marketing mix typology for integrated care: the 10 Ps. Journal of Strategic Marketing. 29(5). pp.453-469.
Mintz, O. and et.al., 2021. The right metrics for marketing-mix decisions. International Journal of Research in Marketing. 38(1). pp.32-49.
Purohit, S., Paul, J. and Mishra, R., 2021. Rethinking the bottom of the pyramid: Towards a new marketing mix. Journal of Retailing and
Consumer Services. 58. p.102275.
Wacker, J. G. and Samson, D., 2021. Beyond supply chain management: jointly optimising operations/supply and the marketing mix. Operations
Management Research, pp.1-16.
WILTON, B., 2021. BUSINESS PLAN.
Sudjatmoko, A. and Suprapto, A.T., 2021. Facilitating consolidation and development of village unit cooperative business plan in Central
Java. Journal of Community Service and Empowerment. 2(3). pp.127-132.
Liu, C. and Kong, D., 2021. Business strategy and sustainable development: Evidence from China. Business Strategy and the
Environment. 30(1). pp.657-670.
Indrawati, M. and et.al., 2021. Household Business Strategy during the Covid 19 Pandemic. Journal of Management Information and Decision
Sciences. 24(1). pp.1-12.
Verbeke, A. and Yuan, W., 2021. A few implications of the covid-19 pandemic for international business strategy research. Journal of
Management Studies. 58(2). pp.597-601.
Quenum, A. and et.al., 2021. Resilience of business strategy to emergent and future conditions. Journal of Risk Research. 24(7). pp.870-888.
Online
Marketing mix. 2021. [Online]. Available through: <https://mailchimp.com/marketing-glossary/marketing-mix-7ps/>
Pestle analysis. 2021. [Online]. Available through: <https://www.analyticssteps.com/blogs/what-pestle-analysis>
Lim, W. M., 2021. A marketing mix typology for integrated care: the 10 Ps. Journal of Strategic Marketing. 29(5). pp.453-469.
Mintz, O. and et.al., 2021. The right metrics for marketing-mix decisions. International Journal of Research in Marketing. 38(1). pp.32-49.
Purohit, S., Paul, J. and Mishra, R., 2021. Rethinking the bottom of the pyramid: Towards a new marketing mix. Journal of Retailing and
Consumer Services. 58. p.102275.
Wacker, J. G. and Samson, D., 2021. Beyond supply chain management: jointly optimising operations/supply and the marketing mix. Operations
Management Research, pp.1-16.
WILTON, B., 2021. BUSINESS PLAN.
Sudjatmoko, A. and Suprapto, A.T., 2021. Facilitating consolidation and development of village unit cooperative business plan in Central
Java. Journal of Community Service and Empowerment. 2(3). pp.127-132.
Liu, C. and Kong, D., 2021. Business strategy and sustainable development: Evidence from China. Business Strategy and the
Environment. 30(1). pp.657-670.
Indrawati, M. and et.al., 2021. Household Business Strategy during the Covid 19 Pandemic. Journal of Management Information and Decision
Sciences. 24(1). pp.1-12.
Verbeke, A. and Yuan, W., 2021. A few implications of the covid-19 pandemic for international business strategy research. Journal of
Management Studies. 58(2). pp.597-601.
Quenum, A. and et.al., 2021. Resilience of business strategy to emergent and future conditions. Journal of Risk Research. 24(7). pp.870-888.
Online
Marketing mix. 2021. [Online]. Available through: <https://mailchimp.com/marketing-glossary/marketing-mix-7ps/>
Pestle analysis. 2021. [Online]. Available through: <https://www.analyticssteps.com/blogs/what-pestle-analysis>
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