BUSINESS PLAN I.

Cover sheet
Name: Express Market Address: Mendiola Manila Contact number:02 987 34 56 Name of corporate officer: Jason Esguerra Address: Las Pinas Phone number: 0906 244 13 88 Name of corporate officer: Mykeana Naval Address: Binan Phone number: 0906 249 19 82 Month and year planned: November 2011 Name of preparers: Jason Esguerra and Mykeana Naval Copy number of the plan: 1

II. Table of Contents III. Executive Summary

a. Your Company (introductory overview - who, what, where it is and why it is unique) b. Market Opportunity (opportunities your company is positioned to take advantage of) c. Capital Requirements, Breakdown of Uses of Funds, Repayment of Loan or Benefits to Investors. (include only if you are seeking funding) d. Mission Statement e. Management (who they are and strengths each one brings to the company) f. Competitors (direct and indirect); list their strengths and weaknesses. g. Your Company's Competitive Advantages h. Financial Projections (summary of Income Statement Projections for next 3 years)

IV. Organizational Plan

A. Summary Description of the Business
Express Market is an online-based courier company that offers delivery of grocery goods. It has a website containing animated features of an actual supermarket. In a matter of an hour, a deliveryman will transport the ordered goods at the doorstep of the customer. Express Market is a new independent business formed because of the need to respond to the needs of the market as well as to ride on the growth of e-commerce. Apparently, the Philippines have not yet been introduced clearly with this convenient service. Mission As a short-term objective, it is our intention to launch our business in the most cost effective way in order to achieve the greatest market penetration. This will be achieved by beginning with a press release to all of the specialist business magazines and publications. It is our mission to ensure on-time delivery. When our business has become a fully established, we will expand to a bigger market up to the point of delivering goods outside the Philippines. In order to develop that system, constant monitoring and adapting to advertising and marketing methods will help to achieve this. Business model The market for this kind of service will increase through advertisements. As potential customers familiarize themselves with this kind of service being available in the Philippines, the greater the chance they will avail to such. The service that Express Market will provide, a 100% customer satisfaction, word of mouth about how great it is will be a factor on how customers will find Express Market. There are competitors that are also engage in the same kind of business. However, Express Market has an edge over them. Learning from their wrong doings, this company will do better. An interactive website, easy steps on how to purchase online, the waiting time before the customer receives the goods is just an hour and the fixed delivery price (amounts of the goods in the website are the actual prices provided in the market).

Convenience is the value why customers pay for the services offered by Express Market. This company will spare a lot of time to the customers for other important activities especially work and let the grocery shopping be our job. To be able to persuade customers, Express Market offers guarantees as to the status of the goods (fresh, not expired, etc.) and the accuracy of time delivery. Delivery of products will be a direct sale. Using an automobile (mini truck or motorcycle), goods will be immediately delivered to the customers. In case of unsatisfied customers, the website offers a chat box and live cam to be entertained by an employee. There will also be a hotline provided in the site. Express Market ensures on-time delivery of goods! Strategy Training for every employee to ensure their competency regarding the Strategic relationships (tell about any existing strategic relationships) SWOT Analysis (strengths, weaknesses, opportunities, and threats that your company will face, both internal and external) B. Service (Describe your services List future products or services you plan to provide)

C. Administrative Plan
1. Intellectual Property Address Copyrights, Trademarks, and Patents Back up in Supporting Documents with registrations, photos, diagrams, etc. 2. Location Describe your projected or current location. Project costs associated with the location. Include legal agreements, utilities forecasts, etc. in Supporting Documents. Note: If location is important to marketing, cover in Part II - The Marketing Plan.

3. Legal Structure Describe your legal structure and why it is advantageous for your company. List owners and/or corporate officers describing strengths (include resumes). 4. Management List the people who are (or will be) running the business. Describe their responsibilities and abilities. Project their salaries. (Include resumes in Supporting Documents) 5. Personnel How many employees will you have in what positions? What are the necessary qualifications? How many hours will they work and at what wage? Project future needs for adding employees. 6. Accounting & Legal Accounting: What system will you set up for daily accounting? Who will you use for a tax accountant? Who will be responsible for periodic financial statement analysis? Legal:Who will you retain for an attorney? (Keep 'Murphy's Law' in mind.) 7. Insurance What kinds of insurance will you carry? (Property & Liability, Life & Health) What will it cost and who will you use for a carrier? 8. Security Address security in terms of inventory control and theft of information (online and off). Project related costs.

V.

Marketing Plan
a. Overview and Goals of Your Marketing Strategy
Using technology as a mean to connect to customers is undeniably effective. One of which is the Internet. The emergence of ecommerce as a new medium for the exchange of goods and services has been met with great excitement. Express Market will take advantage of Internet as a medium to transact with customers.

The main goal is to achieve 100% customer satisfaction for every delivery of goods. To attain such, a method of sale and distribution is aligning with a planned logistics. High-tech devices and software will be used to orderly execute delivery on time and guaranteed quality of ordered goods. Widespread advertisements will appear before every potential customer s eyes. Promotions to conquer long-term clients will be available. By the next year after implementation, a wide range of products will be offered to deliver through a managed delivery system by Express Market. b. Market Analysis i. Target Market DEMOGRAPHICS The main target demographic of our service is the household who has Internet connection and landline. The reason why our target demographic is the household is because they are the people who do most of the grocery shopping and they would be the ones who can most benefit from the convenience that our website can offer. The reason for the Internet connection and landline use is that Internet connection is the basic necessity for the household to reach our service since the service is made available online. Landline use is for the important order confirmation that is integral in proofing our service against prank calls and ensuring legitimacy of all orders. PSYCHOGRAPHICS Among those who bought groceries online with home delivery, most did so as a matter of convenience (65%) or to save time (58%). Today s consumers are seeking solutions that allow them to maximize their free time and disposable income, and spend more time doing the things they value. The convenience trend is driven by this desire to create more leisure time. The consumers believe in the value of convenience and that if a firm provides for a service that would be very beneficial to them in terms of convenience, they would patronize it. The entrepreneurs service allows for such convenience by allowing the consumers to go grocery shopping without having the need to actually be in the supermarket. There are a lot of factors that go into grocery shopping such as the distance between the shopper and the store, the number of items to be bought, the weight of the total items

bought and even the condition of traffic between the store and the shopper. NICHE Target niche is the city of Manila. As of the 2007 census, the population of the city was 1,660,714 making it the second most populous city in the Philippines. Also, it is the capital of the Philippines. A capital physically encompasses the offices of the seat of the government, which means it s the center of the country s activities. Also, busy work of the households heads is a factor. According to a survey in the US conducted by FGI, people use online grocery shopping to save time.The niche focuses on households in Manila with busy heads of the family. Through this, the maximization of the benefits that this service will provide would be used. ii. Competition Philgrocer.com is also engage in the same kind of concept. It is the first online supermarket in the Philippines, which gave them an advantage of seniority that results to having customers ahead of this proposed service at hand. For that reason, PhilGrocer.com has already experienced the actual management and process encounter. As of now, the apparent weaknesses of PhilGrocer.com are the dullness of the website, the complexity of how to order in their site, no innovative capacity since there is no sign of development of their service and the lack of advertisements. Philamfood.com is also an online supermarket in the Philippines. Its website contains a chat box wherein a consumer can consult his troubles or inquiries. Prices offered by Philamfood are 5 times the original price in actual supermarkets. Their website is dull and complex to use. iii. Market Trends A. ENVIRONMENTAL SCANNING As customary traditions or usual activities of people are changing fast as these adapt to new technology, improved services and newly made ways that made lives so much easier are now present. The online supermarket will affect the demand of consumers and the opening of a new market.

TECHNOLOGICAL Technology trend is a part of this service since developments that grow out of this spawn or wipe out many new ventures; technology serves as the mean of the service. Yahoo-Nielsen provided that the number of Internet users in the Philippines is a staggering 30million people where ages 10 to 39 are the predominant users and that is an approximate. People use the Internet for numerous reasons. It may be for checking onessocial network account, researching for a project or homework, browsing some interesting stuff or online shopping. ECONOMIC Supermarkets are big business in the country. An industry report cited that there are about 5,000 supermarkets in the Philippines in 2007 with estimated sales of over P100B; only a few companies dominate supermarket sales. In fact, only 15 companies engaged in retail selling in supermarkets were listed in Business World s Philippines Top 1000 Corporations. In 2006, these supermarkets generated revenues of about P87 billion. Based on Peapod, an online grocery in the US, proponents of the online grocery model point to numerous factors that they say makes the model appealing from an economic standpoint. They argue that because they don t need to pay for checkout clerks, display cases, or parking lots,onlinegrocerscandropprices below those of retail stores and remain profitable. 5 Key factors determining success for the online grocery model includes scalability, membership size, order frequency, and order value.

SOCIOCULTURAL Consumers often simply engage in autopilot purchasing of groceries, which leads to more habitual buying. Speed shopping is a trend that reflects the more selective, sometimes disengaged approach that consumers adopt to ensure that the shopping process is as efficient as possible. LEGAL On 14 June 2000, President Joseph E. Estrada signed into law R.A. 8792 "An Act Providing For The Recognition And Use of Electronic

Commercial And Non-Commercial Transactions, Penalties For Unlawful Use Thereof, And Other Purposes, also known as the "Electronic Commerce Act." E-commerce transactions in thee Philippines should likewise be covered by applicable taxes like income tax for whatever gain realized, value added tax or percentage tax for business sales and documentary stamp tax for contracts covering the e-commerce transaction as commonly applied on traditional transactions (nondigitized transactions). For companies based online, a Computer Assisted Audit Tools and Techniques (CAATTs) Laboratory was created manned by computer audit experts that will enable the efficient and expedient process of completing an auditin an environment where taxpayersare mandated to submit records and documents inelectronic form by providing independent data analysis or interrogation on taxpayer s electronic data or information. DEMOGRAPHICS In a survey conducted in America by FGI, among the online shoppers who spend $500 or more per month on groceries, approximately one third buy all of their groceries online. Although there are just a handful of them, the online groceryshopperswho buy 100% of their groceries online are those who spend $1,000 or more on groceries every month. In other words, the most loyal online grocery shoppers are those with the highest grocery expenditures. 25-44 year olds with children are most likely to be shopping online for their groceries, it is also growing among other groups such as young couples with busy work lives. GLOBAL Another fact is, since the South Korea during 2008 increased in economy through broadband and provided the largest productivity gains, the Global Information and Communication technologies (GICT) Department of the World bank published in January 2010, Building broadband: Strategies and policies for the developing world . This applies to the Philippines where everything is nascent. The Internet is the most monumental invention inhumanhistory to date that drivesmarket growth. This means that the use of broadband for business is highly recommendable.

B. INDUSTRY ANALYSIS a. Threat of New Entrants There is a need to access proprietary technology, take a hold of the distribution of channels, a significant upfront capital is needed (for the conduction of market research ofe-commerce,hiring of a professionalsto executethe website plan of the proposal, creation ofdifferent departments to manage the service etc.) are all entry points of the service wherein new competitors will encounter difficulty in entering the industry. The foundation of the online supermarket is the website. A minimum of S799 for just making an online store of your own, additional capital needed if a professional web maker and designer is to be hired. Also, these factors must be considered: cost of sale, professional fees, technology costs, administrative cost, sales and marketing costs, and wages and benefits. b. Substitute Services If the consumer chooses to buy groceries online chances are there are no other substitute services available besides actually going to the supermarket and buy groceries. A substitute service is low. Considering the travel time and effort of actually going to a supermarket, there is no substitute to grocery shopping online and receiving the goods in a matter of minutes at the front of your door.

c. Rivalries There are small numbers of firms in the industry and a lack of strategic diversity among competitors, which based on these show that intensity of rivalry is low. d. Suppliers The cost of switching from one suppliers product to another s product is low and a more buyer price sensitivity in the industry. These indicate that suppliers powertodemandhighpricesislow. e. Buyers Buyers are less concentrated than sellers and the switching cost is high. Buyers cannot be so powerful to demand low prices.

iv. Market Research (describe methods of research, database analysis, and results summary) Survey method of research was conducted to further study the target market. We conducted a personal in-home survey. There are 9 questions in the survey. 50 respondents who are all residents of Manila answered. The researchers used ordinal-polytomous type ofclose-ended questions, where the respondent has more than two ordered options, which they can pick an answer from a given number of options.

Do you have an internet connection and landline?

Yes No Internet only Landline only A (38/50)100 = 76% Yes C (4/50)100 = 8% Internet only B (2/50)100 = 4% No D (6/50)100 = 12% Landline only

Who does your grocery shopping?

You, alone With family and friends Househelp

A (13/50)100 = 26% B (27/50)100 = 54%

C (10/50)100 = 20% D (0/50)100 = 0%

How far is the nearest supermarket?

Less than 10 minutes 11-30 minutes

A (26/50)100 = 52% B (17/50)100 = 34% C (4/50)100 = 8% D (3/50)100 = 6%

How often do you do your grocery shopping in a

Once Twice

A (4/50)100 = 8% B (28/50)100 = 56% C (11/50)100 = 22% D (7/50)100 = 14%

How much is your monthly budget for your grocery?

Php5,000 or less Php5,001Php8,000

A (9/50)100 = 18% B (14/50)100 = 28% C (14/50)100 = 28% D (13/50)100 = 26%

What is your usual mode of payment when grocery shopping?

Cash Credit/Debit card A (36/50)100 = 72% B (14/50)100 = 28%

Would you avail of an online service that delivers your goods

Yes No

A (45/50)100 = 90% B (5/50)100= 10% C (0/50)100 = 0% D (0/50)100 = 0%

How would you like to pay for this kind of service?

Fixed charges Percentage of total amount

A (45/50)100 = 90% B (5/50)100= 20% C (0/50)100 = 0% D (0/50)100 = 0%

How much are you willing to pay for this kind of service?
Less than Php200 Php201-400 Php401 and above

A (30/50)100 = 60% B (16/50)100 = 32% C (4/50)100 = 8%

c. Marketing Strategy i. General Description (budget % allocations on- and off-line with expected ROIs) ii. Method of Sales and Distribution Our service will be distributed through a website. The web site will provide for the goods that can be bought in the supermarket. The delivering of goods at the doorstep of the consumer is the service of Express Market. Direct distribution channel will be used. The service goes directly from the service provider to the consumer. There will be company-owned offices that will be located beside a supermarket, dealerships with supermarkets such as savemore, shopwise, etc. and infomercials to make known the service which will be uploaded on YouTube. The online customer will choose goods in the website and follow the instructions to finish transaction. The customer may choose to pay cash upon delivery or via credit card to be done after choosing the goods in the website. After the customer had finished shopping, an employee will confirm the orders via phone call to the landline number of the customer s residence. Then a shopper, which is an employee of Express Market, is provided with the list of goods that the online customer had confirmed of. After which, the bought goods in a supermarket (different company) is transferred to a mobile of transportation (either a mini truck or a typical delivery type motorcycle depending on its quantity). The deliveryman takes hold of the goods and immediately delivers it to the house of the online customer. After the confirmation of the ordered goods, a maximum of 1 hour is set before the customer receives the goods. A courier tracking technology will be used. The software will enable the company not only to pinpoint the exact location of each package, but also the whereabouts of drivers and

trucks/motorcycles. The deliveryman will surrender the payment (if the customer paid in cash) to the cashier of Express Market located at the main office. There will be an inventory for encoding the customer s name, goods bought, address, landline number, mode of payment, shopper s name, deliveryman s name and the time before and after delivery. In processing the orders, an online software will be used as it is encoded in the website. The website s features has a corresponding programs attributed to the employees of Express Market. iii. Packaging Packaging for the grocery goods is no longer needed since supermarkets provide for it. The packaging for Express Market is the look of the website. It will be the main attraction of the service. Its features will contribute to put an edge over other online groceries available in the Philippines. Features: 3D look of an actual supermarket Interactive way of online grocery shopping An avatar that represents the online customer Goods to be bought will be dragged to the cart (looks like an actual cart) Options of using a chat box or live cam with an agent of Express Market An actual cashier for declaration of mode of payment by the customer (cash/credit card) Survey sheets for feedbacks and comments (customers who experienced Express Market s service) Top 20 goods rated by online customers Customers can create an account to save their grocery list A corner for recipes (customers with accounts can add too) Tracking device number to locate the deliveryman Section for the names and photos of shoppers and their profile Advertisements for goods

iv. Pricing Cost:Php 150.00 /delivery The price is a middle of the road. Considering the target market (households in Manila with busy at work heads) Php 150.00 is reasonable. Since the target market that will avail Express Market s service has a job, Internet connection and landline, they can afford such price. Also, the competitors of Express Market (Philgrocer and Philam food) marked up all of the goods at almost x5 than the usual price in the market, a fixed price for delivery is more favorable. Breakeven Analysis: Fixed Cost Payroll Rent Electricity Phone Bill Internet Bill Variable Cost Fuel Price (Service Delivery) Price Php 150.00 Fuel 43/L 150 43 = M M = Php107 Fixed cost/M Fixed Cost per day = Php 7, 516.66 7,516.66/107 71 = delivery services should be done per day to meet the Php 225,500.00 (Php 195,000.00) (Php 20,000.00) (Php 5,000.00) (Php 1,000.00) (Php 1,500.00) (Php 43/L per delivery) Php 150.00

amount of fixed cost. v. Branding Brand: Express Market Tagline: You click, we deliver!

Trademark:

vi. Database Marketing Personalized emails will be sent to customers to inform them about sale and promotions of Express Market. Email addresses can be acquired when customers register an account online. vii. Sales Strategies Express Market will use the single-segment strategy. The marketers recognize the existence of several distinct market segments such as teenagers who live in a dormitory but will focus on the most profitable which are the households in manila with busily working heads since they are earning money. The sales strategy will be based on turning prospective customers into long-term clients. An outline of all the different services will be provided to the customers. This will attribute to a personalize attention for customers.

viii. Sales Incentives/Promotions 1. There will be a card provided for every customer. The card will look like this:

This is called the 8th for Free promo. Every 8th purchase of the customer will be free of delivery charge. The customer will only pay for the goods bought. The deliveryman will stamp on the card every after delivery. Upon the 8th purchase, the customer should declare the card s serial number indicated at the back for verification to the order sheet provided in the website during the finishing of purchase. Regardless of the residence, for so long as the purchase is by the customer who owns the card, 8th for free is applicable. 2. Every 500th customer who avails Express Market s service receives a 50% discount off the delivery charge. The customer will only pay for Php 75.00. After the winner, the counting of customers will go back to zero.

ix. Advertising Strategies Strategies on how to advertise Express Market: Flyers attached to Meralco Bills Reason:Meralco supplies Households in Manila electricity. All of them receive their Meralco bills. Heads of the family are the ones checking and paying them every month. There is a 99% chance that they will get to read the flyer advertising Express Market s service. Posters at LRT/MRT station Reason: Many people ride the LRT/MRT and most of them are residents of Manila who are busily working 6x a week. Booths of Express Market located at supermarkets Reason: Potential customers are the ones who are actually shopping in supermarkets. They can have the opportunity to inquire to an employee of Express Market regarding the service personally.

x. Public Relations Express market will focus on personal selling. Using this, representatives will go house-to-house in Manila to introduce the service. Radio stations will be paid for advertising the service too. They will site a scenario and attract customers to avail the service. Banner Ads at the side of facebook, google and yahoo will be maximized. Since the main medium of the service is the Internet, Internet users are the market of the Express Market. xi. Networking Customers may register an account in Express Market s website.

d. Customer Service Description of Customer Service Activities

Step by step on how to purchase goods online is provided at the top of the Express Market s website to avoid complexity and hardness to use by the customer. Express Market s website will contain a chat box and live cam to talk to an employee for their concerns. An employee will assist the customer as much as possible. Customers are free to place comments on Express Market s website for reviews and/or suggestions. The deliveryman, upon delivery, will check one by one the goods bought by the customer then a confirmation of the good standing of the goods will be signed by the receiver. If there will be a defect on the goods, Express Market will replace it with a new same product. There will be emails sent to customers for updates about products that will interest them, top 10 healthiest meals which ingredients are available for delivery, good food for the kids health and many more trivial facts. Also, promotions are sent through emails. For easy on the go decisions of what meals to cook, Express Market will also provide for recipes in the website. And once clicked, the ingredients to be used automatically appear on the cart. A hotline number for troubles and inquiries is also placed in the website to entertain customers needs. - Expected Outcomes of Achieving Excellence Achieving excellence will attract many customers to avail Express Market s service. Trust and loyalty of customers will be attained. There will be a good relationship between Express Market and the market.

e. Implementation of Marketing Strategy In-House Responsibilities Employees of Express Market are bound to act within the rules of the company. The no. 1 rule is, to attain 100% customer satisfaction for every delivery. 1-hour time delivery starts after confirmation via phone call. Out-Sourced Functions Public relations to be implemented in a 6-week cycle will be managed under the advertising agent of Express Company.

f. Assessment of Marketing Effectiveness

VI. Financial Documents VII. Supporting Documents