Innovation And Entrepreneurship For Online Groceries Business

Online Groceries Business

The business goes by the name Online Groceries.com. This is an innovative business plan meant to give a great services and products on online groceries customers who buy wide range of groceries for their homes from the comfort of their phones or computers. The orders are done online and the deliveries are done in a matter of minutes through our delivery guys (Cañeque, & Hart, 2017). This is a great venture that ensures that a customer gets fresh deliveries without ever going to the shops or supermarkets to buy. Our produce are sourced directly from the farms as we have a contract with farmers country wide on the methods of deliveries, the type of products needed and the amounts to be paid. This ensures that the farm produce are quality and will always have fresh deliveries very time.

Online Groceries.com, is a company registered to operate in all the Australian cities. The registered Australian number is As55567 for a company dealing with groceries and has various modes of operations (Dees, 2017). The main business operates and is headquartered in Sydney due to the fact that it is the capital of the country. The date that the business was established is 10^th January 2018. There are more than 10 business owners who have experience ranging from retail to technology to logistics. Online groceries.com provides online sales and deliveries of fruits, vegetables, meat and all groceries needed in day to day kitchen activities (Drucker, 2014)

Online groceries .com target everybody who is involved in day to day cooking, either as a family or as a business wishing to cook for its customers like a restaurant or a hotel. Others include stay at home mums who only wants deliveries done to their homes due to home commitments. Also targeted are office staff who are busy in their offices but only wants groceries to be delivered to them and carry them home.  Basically the target market is everybody who is willing to take a phone or a computer and buy groceries online at his or her convenience(Eesley, & Miller, 2017).

Basically the list of targeted customers are

• Stay at home mums
• Restaurants and hotels
• Schools and hospitals
• Office workers who are busy during the day and are tired to go to shopping by the time they leave their workstations.

Marketing strategy:

The market strategy is first of all advertising the platform. The advertising budget is quite high due to the need to inform our target market about the business and our operations. We will enter the market through free distributions on the first week or a discounted distribution throughout the first week. We intend to attract more customers by selling at discounted prices in the first week, having promotional offers and increasing their marketing time (Edwards-Schachter, García-Granero, Sánchez-Barrioluengo, Quesada-Pineda, & Amara, 2015). Attracting the intended customers to attract will only be done through social media marketing, online campaign strategies and having promotional offers. The way all this will work is by increasing the company’s ability to be seen and therefore making it ware for people to work more.

The Market and Target Market

The Future

Vision statement

To be an all convenient bestseller online grocery store offering the best quality at affordable prices any day any time.  

The relevance of the topic in principle is determined, firstly, by the key role of the marketing strategy in the success of the organization. The development and adoption of tactical decisions today takes place in the presence of instability, market uncertainty and marketing environment; in these conditions, Australian companies rarely use a strategic approach in business. Strategic planning is designed to reduce possible risks and bring chaotic tactical actions into the mainstream of a single successful strategy (Galindo, & Méndez, 2014).

Secondly, the real need to use new information technologies in combination with the latest marketing technologies. New information technologies in marketing activities contribute to the effective study of the demand and needs of the market, reducing the costs associated with promoting goods to the market, improving the structure of distribution channels, help consumers reach the direct producers much faster, bypassing numerous intermediaries (Hung, Chen, & Huang, 2014).

Thirdly, the need to improve the methodological and applied aspects of the development of an online store strategy. There is no single strategy for all companies. And at the same time, there are some fundamental points that allow us to speak of generalized principles for the development of behavior strategies and the implementation of strategic management, which is very important in conditions of intense competition (Khan, Liang, & Shahzad, 2015).

The above indicates the relevance on the formation of an Internet strategy of a trading company (for example, the market of sales of grocery nutrition). Development, which is not only scientific, but also of practical importance (Leong, Pan, Newell, & Cui, 2016). 

The finance of the business will come from the individual people with shares in the company. They gave out the capital with the ability that is proportionate to their ability. 40% of the capital came from internal financing while the rest comes from private equity and loans from banks. As an online company, the capital required and the financing necessary is quite huge for the hardware of the business. there are also local stores at strategic places where delivery will be placed. 

Financing Item	Amount (AUD)	percentage
Personal capital	4,000,000	40%
Private equity	4,000,000	40%
Bank loans	2,000,000	20%

The degree of elaboration of the problem. A large number of studies and publications of foreign and Australian scientists and specialists are devoted to various aspects of marketing activities. The theoretical foundations of marketing are developed by such foreign scientists as:

Marketing Strategy

Various aspects of marketing on the Internet are devoted to research:

However, the use of Internet resources in the marketing system, especially trade marketing, has not been given enough attention. The applied areas of marketing research, in particular, the problems of using foreign experience in developing marketing solutions based on new information technologies, have not been adequately reflected. The solution of all these problems is an objective necessity, both in scientific and in practical terms.

Business location: 

As an online company, the amount of space required is not as much as a physical shop. Most of its operations will be done through the internet than in physical locations although some activities will be done in their shops for those who have close proximity. The company wishes to operate 5 strategic shops in strategic cities. The first will be its headquarters in Sydney. The next will be Melbourne and three will be in Queensway. This will be important for strategic operations of delivery and collection points for the groceries. The required size of the shops is not big as they are holding points for the groceries fitted with refrigeration equipment. As an online company most of the operations will require internet connectivity and a login account for the traffic to our online portal and websites for shopping and delivery and final payments. The customer number has been increasing overtime and the site has been frequented more than our competitors. 

The five shop premises are leased over a period of 10 years for the company to run smoothly before the end of the lease agreement. Depending on the level and amount of customers the shops or leased premises might be expanded or the company may acquire additional premises. The facilities required will be shelves and refrigeration required in internet marketing.

Organisation Chart. 

Names of owners: 

Chairman of Board- John Osaga

Directors; Mary Leaky

                  Bill Oleilly

   Martin Snell

CEO: Brenda Smith

Marketing manager; Steve Kerr

Office Manager:    Klay Durant

Online manager: Boogie Cousins 

Details of management & ownership: 

The chief executive officer will run the day to day activities of the business on behalf of all the original shareholders and founders of the company. The activities of the CEO is to run the day to day operations of the company. Each founder comes with a vast experience of knowledge and skills that will be required to running the day to day activities and improving the operational efficiencies of the company.

The Future – Vision Statement and Goals and Objectives

Current staff

Experience: 

Key personnel	No of years of experience	areas
John Osaga	24 years	Technology and supplies
Mary leaky	10 years	finance
Bill Oleilly	12 Years	tech
Martin Snell	5 years	retail
Brenda Smith	13 years	Online sales and distribution
Boogie Cousins	10 years	Data management and tech

The analysis of practice and the development of directions for improving the strategies of Internet marketing of a trade organization. The main objectives of the study. The purpose and logic of the study determined the formulation and solution of the following tasks:

• on the basis of summarizing the literature, present a modern understanding of the organization’s strategy, marketing strategy and the process of their development; 

• explore the use of information technology in the system of modern marketing;
• to characterize the groceries nutrition market of the Sydney region;
• clarify, taking into account current trends, the main elements of online store marketing;
• consider the methodological aspects of the development of marketing strategies in the functioning of the online store;
• to develop applied areas for improving the marketing activities of a trade organization in the field of Internet technologies.

The required will be obtained through.

1. advertising on local newspaper
2. online advertising
3. poaching from online companies/ head hunting from online companies

On the basis of generalization of the literature, a modern understanding of the organization’s strategy is presented and the process of its development is investigated. A comparative analysis of conceptual approaches to the definition of an organization’s strategy has been carried out; a rationale has been developed for choosing an organization’s strategy in combination with the main components of its target orientation: mission and purpose. The theoretical foundations of the marketing strategy are described as the core strategy of the organization, which is the basis for planning I and the orientation of the production activities of the organization, providing it with the highest efficiency and profit.

The necessity of the analysis of internal and external factors in the process of developing the marketing strategy of the organization is revealed, a characteristic of the technology of such analysis is given. The substantiation of the marketing research and the main directions (stages) of its implementation has been completed (Malecki, & Spigel, 2017).. 

Marketing research involves: research and evaluation of the actual state of the market, the development of a forecast designed to define and clarify the goals of the organization’s development strategy. The questions of using information technologies in the system of modern marketing are investigated (Ogonowski, Montandon, Botha, & Reyneke, 2014). Analysis of marketing activities of trading firms dealing with a large product range of competing brands showed that in most cases the company is unable to analyze the range and prices of competitors in sufficient detail, as well as the time to develop its own product and price strategy, since the time to collect and the processing of the necessary information, in most cases, will exceed the time during which the product mix of competing brands will change.

In such conditions of competition, one of the possible outcomes for a trading company could be the use of “relationship marketing (Sahut, & Peris-Ortiz, 2014).. The essence of this concept is that when interacting with a client through any channel, a company employee has access to full information about all relationships with clients, and he makes a decision based on it. 

Product/Service	Description	Price
groceries	Any vegetables used in cooking	$ 800
Deliveries	Bike or vehicle deliveries of products	$ 200
billing	Login into the system	nil
meat	Per kilogram	$ 56

The scientific novelty of the dissertation research lies in the development of conceptual and methodological issues of organizing Internet marketing of a trade organization in a virtual environment and, in particular, on the example of the groceries nutrition market in the Sydney region. The main scientific results (the specific personal contribution of the applicant to the development of problems to be defended) are as follows (Schmitz, et al ,2017) 

Finance

Market position:

The products are targeted for everybody. The market position is at 40% market share.

Unique selling position:

The selling position for the groceries are centered on online selling and delivery.

Anticipated demand:

Anticipated demand will increase to 45%.

Pricing strategy:

The pricing strategy is based on demand and supply and the 4Ps of pricing.

Value to customer:

Addition of value to customer by adding some sales services for the products.

Growth potential

Due to ability to sell the fresh groceries at any point, the growth anticipated is 20 % in the next year and by double (40%) in the next year.

Research & development (R&D)/innovation activities

Data on this, in turn, is also stored and available for all subsequent acts of interaction. It has been established that for economic reasons it is more profitable for online stores to retain existing customers than to make efforts to attract new ones. The introduction of the principles of “relationship marketing” and the personalization of the service in online trading can increase the efficiency of these companies. The current state of the groceries nutrition market in the Sydney region has been analyzed, which made it possible to identify problems encountered by business entities when they organize business communications in a real-virtual market network.

In particular, the absence of successful behavioral, age and gender segmentation of consumers was revealed, which makes it difficult to identify target groups of the population, their motivation when using groceries nutrition and offering products in accordance with the needs of each of the groups.4. The classification of consumers of online stores by the types of their behavior. The study identified the main factors that attract visitors to online stores and explain their motivation when shopping: convenience, variety, time saving and price. On the basis of attracting factors, behavioral styles characteristic of visitors were identified.

Risk	Likelihood	Impact	Strategy
Financial Risk	Likely	High,	Putting the finances in order
Transactional risk	Highly Likely]	[High,	Having an audit department to trail transactions
Technological risk	Highly Likely]	[High,	Having data and transactional backup
Legal risk	[Highly Unlikely,	Low]	Following the legal guidelines and requirements

Visitors to online stores who make purchases can be classified into the following categories: “lovers of bargaining”, “acting on the principle of making life easier”, “inclined to compare”, “acting out of curiosity”. The category of people who do not make purchases, but who visit online stores, can be divided into: “information seekers” and “acting out of curiosity.” 5.

A model of a phased evolution of online store visitors to its regular customers has been developed. This model is based on trust in an online store based on a number of attractive factors. The author proposed a chain of phased evolution of online store visitors to its one-time buyers and later to regular customers. This model should ensure the effectiveness of feedback online store with users on the Internet.

Business Premises – Location and Lease

To this end, the motivation for making purchases in an electronic store by network users was clarified, as well as the reasons for which consumers refused to make a purchase. Established features and formulated the tasks of organizing Internet marketing in the market of sales of groceries nutrition, consideration of which showed the need to use, in terms of the virtual sale of goods, methodology and tools of “relationship marketing (Singh, & Cancel, 2016). . 

Competitive advantages have been determined and approaches have been proposed for conquering a certain segment of the groceries nutrition market of the Sydney region by an online store. Online groceries has proposed the creation of an online store with the functions of a consulting center to get a segment of consumers in need of advice when choosing groceries nutrition.

This choice is due to: a) the lack of a unified information service for receiving qualified assistance and advice; b) low degree of awareness and knowledge of consumers about the types, classification and brands of groceries nutrition; c) the need for advice and assistance in the choice of groceries nutrition (Suchacka, & Chodak, 2017). The current requirements for the online groceries nutrition store have been clarified, taking into account current trends: a) recognizable brand; b) assortment, constantly updated with new products; c) focusing the attention of the buyer on the fact that he will save a lot of time and buying in this online store; d) providing customers with easy assistance; e) proposing a mechanism for finding answers to questions; e) a clearly formulated list of frequently asked questions and answers to them; g) providing customers with timely and accurate information; h) the ability for customers to send emails; i) confirmation of receipt of e-mail; k) facilitating the receipt of assistance directly.

 The practical significance of the research results lies in the fact that the main provisions that constitute the novelty of the dissertation work are conveyed to specific recommendations on the formation of a marketing strategy for a commercial enterprise on the Internet. With their help, developed reasonable proposals for the implementation of Internet marketing.

Ultimately, an effective concept of Internet marketing with the use of new information technologies has been created. Testing the results of work. The methodological recommendations contained in the dissertation research on the development and implementation of the Internet marketing strategy were used in the development of the marketing strategy (Zhou, 2015)

Marketing management strategy is the tracking and selection of general directions of the company’s behavior in the market in the long term, taking into account the specific value orientations of the company. On the basis of generalization of the literature, the paper presents a modern understanding of the organization’s marketing strategy and studies the process of its development (Zhou, 2016)..

Organisation Chart

Payment systems in the Internet environment and security of payments” Marketing management strategy is the tracking and selection of general directions of the company’s behavior in the market in the long term, taking into account the specific value orientations of the company.

References

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