2013

GROUP # 6
ECOMMERCE
12/9/2013
ONLINE GROCERY.COM
SUBMITTED BY: GROUP 6
TAIMUR KHAN
RAHEELA FAROOQ
RAMSHA YAQUB
HIRA SAEED
SARMAD LODHI
M TAHA MASOOD


Executive Summary:
Brief Description:
The onlinegrocer.com strategy is to build an impressive shopping website that not only takes
the order but also deliver the goods to the doorstep for housewives, working women and
everybody who want to avoid the rush of shopping mall, traffic and regular going for the retail
shops for their grocery needs. The marketing of the website will build around some core values
and offers that the site will propose. We will be competing with our competitors like
pakistangrocery.com and doorstep.pk by providing several value added services and
achieving our customers satisfaction.
Brief Profile of the Entrepreneurs:
The online business of grocery will be on partnerships and the following six partners contribute
their efforts to bring success to this business:
Taimur Khan:
Taimur khan is a student of Bachelors in Business Administration at Air University Multan
Campus. He possesses good leadership skills so he can manage the team with best of his
efforts. He is currently running his own hospital. .He has also done internship in Pakistan
International Airline . He is currently working with his friend at
Raheela Farooq:
Raheela farooq is a student of bachelors in business administration at air university Multan
campus. She is very strong nerved and has good skills in managing things. She is very competent
and excels in finance. All the classmates ask for her expert advice before submitting any
assignment. She is very prudent and is currently working with her brother in his business. She
has a vast experience of working in teams and is has done a diploma in English language.
Ramsha Yaqub:
Ramsha yaqoob is a student of Bachelors in business administration at Air University Multan
campus. She has very good marketing skills and is helping her father in his business. She has a
good experience of working in teams and has helped his business administration department by
organizing welcome and bonfire. She is also very good in art at art and has a good command on
Microsoft excel and Microsoft word.
Hira Saeed:
Hira Saeed is doing Bachelors in Business Administration from Air University Multan Campus.
She has got very good business skills inherited from her father and also works as his assistant in
his firm. She has benefited from good support, not just from her family, but from her teachers,
advisors. Being the organizer at many of her university functions, she knows how to organize
work and other tasks that ensures profitable and booming eventually. She also says she's got a
strong team with her at Air University.
She thinks that online store will be a profitable business and generate high revenues and will
surely earn first mover advantage in Multan.
Sarmad Naseer Lodhi:
Sarmad Naseer Lodhi is a student of Bachelors in Business Administration at Air University
Multan Campus. He possesses good leadership skills so he can manage the team with best of
his efforts. He is also appointed as a team leader of literary and arts society and knows how to
manage dynamic teams. His goal oriented and motivated thinking has induced optimism that
that the efforts of his team will surely provide people of Multan quality products.
M Taha Masood:
M Taha Masood is also the student of Air University Multan Campus. He has been working with
many organizations up till now like Makhotay, Burgad Al ilam and Bedari. He proved himself as
a good manager and tackles and manages things at ease. He is associated in this business
because he thinks that this business will serve the people of Multan in very good and
appropriate manner and increase the employment in Multan region.
Project Contributions to the Economy:
The basis for estimating the economic contribution is the direct value added and employment
contributed by capital and labor inputs employed directly by onlinegrocery.com in the provision
of its goods and services. These outputs are the retail services offered in the sale of various
goods including grocery, staples, frozen meat, dairy products, bakery, and general merchandise.
The value added is the most appropriate measure of the economic contribution to GDP. It is the
sum of the returns to the primary factors of production labor and capital and can be
calculated by adding the gross operating surplus and wages paid to employees. This is then
combined with a selection of input-output economic multipliers to determine the indirect or
flow-on contribution to the economy. The indirect contribution is a measure of the demand for
goods and services produced in other sectors of the economy as a result of the direct economic
activity of onlinegrocery.com. The size of the flow-on activity is determined by the extent of the
linkages with other sectors of the economy.

In Pakistans scenario grocery industry is one of the most dominant industries and the country
previous trends show that supermarkets are playing an implicative in countrys economy. The
price of food and staples has a day to day impact on consumers behavior. Our online business
will employ a significant number of workforces and will link to several other businesses like
agriculture, transport, IT and manufacturing businesses. As far as online grocery store is
concerned, it will surely be contributing best to Pakistans economy. As the literacy rate is very
low in Pakistan, people dont get jobs. But not only there is a problem to adjust uneducated
people in employment. Highly educated people are also not getting good jobs, consequently
they move to other countries and initially they hired by good firms after sometime side by side
they initiate their own business in the same country. In order to facilitate those people in their
own country, onlinegrocery.com will hire recent graduates from management and technical
colleges and help them in training so they can retain in their country and have opportunity that
they can serve their country well which eventually contributes towards the growth of our
country GDP. So precisely economic contribution of onlinegrocery.com on economy is
measured in terms of:
value added which is the contribution to GDP, and includes wages paid to employees
and the gross operating surplus generated (including taxes); and
Employment which is measured by full-time equivalent jobs.
The economic contribution is the sum of the direct and indirect value added by the
economic activity undertaken by onlinegrocery.com. In addition, there is trade
facilitated by onlinegrocery.com.
Marketing Plan
Brief Description of onlinegrocery.com:
Onlinegrocery.com will be an online business of selling grocery and other household products
that will provide 24/7 service of ordering and delivering products. It will initially operate in
Multan. It will be the first of its kinds in Multan. The website has a user friendly design and
easily accessible to everyone is Pakistan. The only thing which is required is an internet
connection and by lowest possible clicks one will get everything he/she needs at his/her
doorstep.
There is trend in Pakistan that people usually dont inform before coming to someones house.
This makes the hosts sometimes worry what to offer the guests? By our online business, people
can order whatever eatable or drinkable when the guests shock them by their sudden
appearance and our service fulfills order in an instant and with no time the desired items will
reach the house.
Onlinegrocery.com is an online business that will have a complete range of house hold and
house usage products for its customers, from tooth pick to dining table. Users can buy the
items from the following categories:
Grocery (Fresh Fruits and Vegetables)
Staples (Pulses, Seeds and Grains)
Snacks and Confectionary (Biscuits, Crisps, Desserts)
Spices
Frozen Food (Ready to cook, Fully Cooked)
Household (Laundry, Insecticides, Household consumables, Household Cleaners,
Dishwashing Bars)
Personal Care
Baby Care
Dry Fruits
Meat (Fish, Chicken, Mutton, Beef)
Kitchen and Dining Room Accessories.
Apart from this the company is also thinking to serve organic grocery and CFCs free household
products in order to provide healthy lifestyle and bring awareness among people about the
harms of CFCs containing products. This strategy will soon be launched after the initial business
will launch.
Our service will also help people to avoid the stress and hassle of having to drive to the grocery
store, circle around the parking lot buying for a parking space, dragging the screaming and
restless kids to the store, meandering through the crowded isles while trying to avoid a collision
or traffic jam with other shopping carts, standing in a long line at the checkout counter, loading
and unloading the car trunk with the groceries while leaving the store and arrive at home.
Location:
Although the business will be making transactions online but there is an intense need of huge
area where the grocery and other items inventory will be placed and also space to locate an
office where employees will work day and night with their supervisors and managers to stay
connected via internet (website, calls) with their customers and suppliers and ensures quality
and innovation. For this purpose the Khan Centre is chosen as best place for both the office and
warehouse and store. As Khan Centre is located at Multan Cant, it will be easy to deliver
products and orders in all areas of Multan in very less time. It is one of the most convenient
places for both office and warehouse.
Moreover, it is convenient for the partners of the firm to manage both their studies and
business at the same time. The office and warehouse will have the hidden security cameras as
well as highly advance security system that will protect against any theft and robbery. Thus, the
place is equipped with both security and safety tools.
In the current scenario of Multan there is continuous load shedding. To overcome this issue the
standby generators are also placed that ensures continuous supply of the electricity which
enables workers and staff to work effectively without any challenge regarding facilities and
resources.
The office is designed in very effective way. To avoid communication gap there are no cabins
rather the concept of open system is kept in mind while making design, which will magnify
employer and employee relationship and that chance encounters and conversations on the job
promote cooperation and innovation, and our company crafts our floor plans and cultures with
this in mind.
TEN WORKPLACE DESIGN CONSIDERATIONS
Groceryonline.com has set ten fundamental design elements can positively impact the work
place environment and support the work being done:
Thermal Comfort and Temperature
Access to Nature, Views and Daylight
Sensory Change and Variability
Color
Noise Control
Crowding
Human Factors and Ergonomics
Indoor Air Quality
Choice
Employee Engagement
These considerations while designing a work place will increase employee productivity.
Market Area:
Market area initially will be Multan. Later on the market is expand to Karachi, Islamabad,
Faisalabad, Lahore and other major cities of Pakistan. We are going to target our market
geographically and demographically. Working women and single parent will be our customers.
Working women, as busy cannot manage to spend lot of time in shopping. So by single click we
will serve everything at their doorstep. It is very difficult for single parent to manage both
everyday shopping and home. Our first class design and user friendly design are critical to our
positioning and that will be fundamental to our future sales. However the core experience for
every household have always been better and better design team and the better financing will
help our online grocer to grow in market. The online grocers will distinguish itself from its
competitor as a full capacity center, rather than just a store front. We will carry on the colorful
and extremely well branded design of our company literature and logo. The site will have a
colorful and intelligent design taking the campaign and product art into interactive medium on
the web. Traditional marketing practices have been transformed and the old supply chain has
changed. Continuing strong growth in business to consumer and business to business is
changing fast and has the market scenario is changing continuously with time. New skills
knowledge and strategies are in high demand in the business world. As our sevice is new we are
going to sell it at a nominal price so we can grow in market and acquire some of the market
share.
Pricing strategy
Pricing strategy usually change as product passes through its life cycle. Two pricing strategies
will be used are as follows
Market skimming pricing
Market penetration pricing
From these two strategies we are going to use market penetration pricing strategy. At start we
will set low price so that we can gain more market share after gaining market share we are
going to increase our price after achieving the task of gaining marketing share we will increase
our prices by doing so we can achieve following benefits . It creates cost reduction and cost
control pressure from the start as sales volume increases and lead to greater efficiency. We will
also offering discounts for new buyers and those who are interested in buying in bulks and also
it varies from buyer for big marts huge stores we have big discount and for small stores it
differs. We are also giving seasonal discount as well. On eid and Ramzan we will be giving
special discount so that the buyers will have additional benefits and will retain. We use
marketing research to understand customer satisfaction and purchasing behavior which helps
us to assess market potential and market share or to measure the effectiveness of pricing,
product, and distribution and promotion activities.
Main Customers:
As discussed earlier our major customers will be housewives and working women. Housewives
in a manner, they are busy in their everyday work that they dont prefer to leave the house
work and go for shopping. Similarly, working women can gain advantage of our service by
sitting in their offices and get access to our site and order the desired grocery and household
usage products.
Online grocery will also launch its application on Google play. Consumers can download it free
on their mobiles and by using the application they can also give orders by connecting to
internet.
Similarly, students living in hostels can also take advantage of our service by ordering things in
simple and easy way.
Total Demand:
Total demand of online grocer will be high in Multan because it is first ever business in Multan.
The businesses like this are now operating in Lahore and Karachi as doorstep and
makropakistan.com. To raise more demand of customers onlinegrocery.com needs to sustain
the quality of products rather bring innovative changes in the website design and strategies.
Sales Forecast:
As far as sales are consider, trends of supermarket in Pakistan shows that super markets
generate more revenue. But if supermarket goes online it will be generating more revenues and
thus the sales will be more and opportunity that the company will be profitable.
In todays world people prefer comfort and convenience over other things. Therefore, if
consumers are sitting in their homes and offices and getting comfort by sitting on their own
place and get what they want.
Marketing Strategy:
Following Marketing Strategies will be used:
Advertisements:
All sorts of mediums will be used for advertisements, like print media, podcasts, broachers, bill
boards.
Once the customer awareness will be created the following will be done for customers to gain
customers and build strong positing of the onlinegrocer.com.
Discount Coupons
Membership cards
Bulk discounts
Gifts on high purchase.
SWOT Analysis:
SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of
planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses,
opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and
threats are external factors.
STRENGTHS:
It includes internal capabilities, resources and positive situational factors that may help the
company to serve its customers and achieve its objectives.
Onlinegrocerry.com has best quality products.
Ensures hygienic and salubrious product supply
Prices will be feasible
Availability of all the products
Almost no competitors (in Multan)

WEAKNESS:
It includes internal limitations and negative situational factors that may interfere with the
companys performance.
Onlinegrocery.com will be first served in Multan. In order to expand the business in
other cities the company needs to bring innovative strategies to meet the competitive
edge.
Its promotion and positioning is very difficult, because people still believes that the
online selling and retailing is a deceit.

OPPORTUNITIES:

These are favorable factors or trends in the external environment that the company may be
able to exploit to its advantage.
Currently there is no online grocery business, its great opportunity to capture the
market.
Increasing demand.
Growing trend of using readymade products.
In todays health conscious society, we are introducing health base product.
Profit margin will good.

THREATS:
These are unfavorable external factors or trends that may present challenges to performance.
Entry of upcoming rivals.
Change in government policies such as taxes, rules, etc.
Lack of resources
Failure of product is possible if people dont buy it.
Change in consumers demand.
Changing technology.
Increase in rate of inputs.

CONCLUSION OF SWOT ANALYSIS:
The strengths and opportunities of onlinegrocer.com outweigh the weaknesses and threats
therefore the onlinegrocery.com has a long way to go supported by extensive promotion and
advertising to create demand and position.


In modern era product innovation is becoming necessary for the organization because of the
globalization people are becoming aware about the changes being taken place around then so
in order to handle situation the company focused on product innovation by introducing a new
services of which also includes innovation to make healthy living.
Production Process:
The grocery products like vegetables and fruits will get directly from farms and ensures
freshness and health. Staples will be bought directly from suppliers who bought staples from
renowned factories and are clean. Other confectionary items will be made by highly
professional bakers with good quality measures. Other products like spices, eatables and
drinkables will be purchased from the suppliers and wholesalers.

Organization Structure:
Organization will consist of Chief executive officers followed by Chief marketing officer. He used to make
all strategic plans. Under him there are three managers who report the chief marketing officer; they are
like Sales Managers, Advertising Manager and Promotion. Sales manager is take control over the sales
department of marketing section. He uses to generate the report regarding sales in particular time period.
Advertising and promotion manager use to look over the main part that play big role in doing the
marketing of any Buzzing Bee product in different markets.