Delivery-Partner Delivery Service Proposal

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Delivery-Partner Delivery Service Proposal

Executive summary

Delivery-Partner is an online based delivery service specializing in delivery of good bought from online store. The business is a service provider linking online store and their consumer to help overcome the challenges that have been experienced with traditional delivery companies. the business will hive both online existence and virtual existence and will use store located close to bust terminal or easily accessible points where good will be dropped and the customers can pick them up easily and conveniently. The delivery service will be offered to both business and consumers thus serving B2B consumers and B2C consumers. this proposal analyses the viability of this business in the industry using a SWOT analysis and proposes a marketing strategy the will enable the company to gain a market share in the delivery industry.

Contents

TOC o “1-4” h z u HYPERLINK l “_Toc332080787” Introduction PAGEREF _Toc332080787 h 3

HYPERLINK l “_Toc332080788” Company overview PAGEREF _Toc332080788 h 3

HYPERLINK l “_Toc332080789” Vision PAGEREF _Toc332080789 h 3

HYPERLINK l “_Toc332080790” Mission PAGEREF _Toc332080790 h 4

HYPERLINK l “_Toc332080791” Company organization PAGEREF _Toc332080791 h 4

HYPERLINK l “_Toc332080792” Management PAGEREF _Toc332080792 h 4

HYPERLINK l “_Toc332080793” Staffs PAGEREF _Toc332080793 h 4

HYPERLINK l “_Toc332080794” Operation model PAGEREF _Toc332080794 h 4

HYPERLINK l “_Toc332080795” Outsourcing PAGEREF _Toc332080795 h 5

HYPERLINK l “_Toc332080796” Marketing PAGEREF _Toc332080796 h 5

HYPERLINK l “_Toc332080797” Market Segmentation PAGEREF _Toc332080797 h 5

HYPERLINK l “_Toc332080798” Market definition PAGEREF _Toc332080798 h 5

HYPERLINK l “_Toc332080799” Marketing strategy PAGEREF _Toc332080799 h 6

HYPERLINK l “_Toc332080800” SWOT analysis PAGEREF _Toc332080800 h 6

HYPERLINK l “_Toc332080801” The 4Ps PAGEREF _Toc332080801 h 7

HYPERLINK l “_Toc332080802” Product PAGEREF _Toc332080802 h 7

HYPERLINK l “_Toc332080803” Place PAGEREF _Toc332080803 h 7

HYPERLINK l “_Toc332080804” Price PAGEREF _Toc332080804 h 7

HYPERLINK l “_Toc332080805” Promotion PAGEREF _Toc332080805 h 8

HYPERLINK l “_Toc332080806” Financials PAGEREF _Toc332080806 h 8

HYPERLINK l “_Toc332080807” Capital estimation PAGEREF _Toc332080807 h 8

HYPERLINK l “_Toc332080808” Fixed Assets PAGEREF _Toc332080808 h 8

HYPERLINK l “_Toc332080809” Transportation PAGEREF _Toc332080809 h 9

HYPERLINK l “_Toc332080810” Human Resources PAGEREF _Toc332080810 h 9

HYPERLINK l “_Toc332080811” Technology setup PAGEREF _Toc332080811 h 9

HYPERLINK l “_Toc332080812” Miscellaneous PAGEREF _Toc332080812 h 9

IntroductionOnline business is among the fastest growing forms of business around the world. According to internet world statistics, internet usage worldwide rose by 400% between 2000 and 2010. This is an interesting development which undoubtedly encourages many service providers and sellers of commodities to sell the merchandise online. In most instances, companies or business are establishing B2C business creating web stores or online stores that sell commodities directly to customers. B2B which involves business selling goods or services to other business is also common. There is also an increase in the number of companies that have restricted their operation on the internet alone. All these companies encounter numerous challenges when it comes to delivering physical goods to customers. There are several delivery service which in unfortunately increase the cost of delivering good to the customer thus in turn increasing the costs incurred by the sellers. As usual this cost are also transferred to customers who end up parting with more that they intended or would have wished to acquire a product. This business proposal proposes a delivery business model that aims at enhancing the delivery process, increasing efficiency and convenience, and reducing the costs involved in the delivery of the goods.

Company overviewIn a nutshell the idea is to put up a delivery business that will act as an intermediary between online shop, e-shop, e-store, Internet shop, web-shop, web-store, online store, or virtual stores and their customers. The key elements of this business will be faster delivery and affordability.

VisionDuring the firsts year of operation the business will aim at gaining a good reputation by offering affordable prices, unbeatable customer service and fast delivery.

The company will also realize long term business partnership with online shops, e-shop, e-stores, Internet shops, web-shops, web-stores, online stores, or virtual stores and achieve a steady cash flow.

MissionTo be a trusted and reliable delivery service worldwide.

Company organizationManagementThe business will sue the service of a qualified manager with minimum of an MBA. The manager will have an assistant who will have a minimum of a bachelor’s degree in management.

StaffsThe other member of staff the will be instrumental provision of our services will be there office assistant, a receptionist, five drivers, and ten potters.

Operation model

The business will adopt an operation model that is both convenient to the online store and their buyers. Be an online business, customers purchasing goods online will have the option of choosing our delivery service while purchasing their good from an online store. When a customer chooses our delivery service he/she will be directed to our website where they will be requested to enter their information: name, cell phone number, email address, the order number of the goods bought from the online store, customer location and desired point of collection. Once this information has been entered, the customer will be directed to checkout where they will pay a nominal fee. In turn the customer will receive a receipt for payment both as a main in the email and as a SMS in his/her phone. Once the information is received in our system, the office assistant will issue it to the driver the details. The driver using the information will collect the goods from the physical location or warehouse of the online store and deliver it to the customers preferred collection point. When the customers go to the collection point, they will be required to produce some form of identification, the SMS receipt for payment of the goods or a print out of the receipt emailed to their mail.

OutsourcingThe business will outsource warehousing and storage services. These services will be outsourced from stores located close to bus terminals or easily accessible place in urban and suburban areas. it is these storage point or warehouses that the customers will chose from when selecting their convenient collection point.

MarketingMarket SegmentationThis section focuses on establishing the various divisions in the market consisting of groups with different needs. The main segmentations are buyer of fragile goods and the not fragile goods. Fragile goods such as electronics will require extreme care to ensure that they arrive in proper condition

Market definitionIn short, delivery-partner will focus on online sellers who want to minimize the cost the incurred in paying delivery companies to deliver goods to their customers and online shopper who want to minimize the amount to money the pay to have the goods they have purchase online delivered. Many shoppers incur expense up to 20% over what they paid for their goods. Delivery expenses incurred by online sellers also increase the operation costs. However this service will be a double edged sword cutting costs incurred by both the sellers and the buyer.

Marketing strategyIn order for delivery-partner to be successful, a functional marketing strategy must be used. A marketing strategy is an instrument that will evaluate the resources at our disposal and use them publicize our delivery service to give it a competitive advantage over its competitors. It consists of various market analysis instruments that will provide information necessary to create a functional marketing strategy. The analysis strategy will be SWOT analysis examining both internal and external dynamics of the business (Kern, 3). Using the SWOT analysis results the marketing strategy will emphasis the use of the 4Ps to reach the target market (Barker & Charles, 138).

SWOT analysis

Strengths Weaknesses

Strong business model.

Affordable service.

Reliable and convenient service. Little difference from other delivery services.

Since this is a competitive segment, the market share growth is limited

The brand might be dependent on endorsement by online sellers.

Opportunities Threats

There is great room for geographical expansion.

Online shopping is growing since many people are opting to shop online.

Many online shopper and seller need affordable and reliable delivery services. Stiff competition from already developed companies.

Continuous increase in oil prices will have a strong impact on delivery costs

Low operating costs will continue to encourage new entrants to join the industry.

The 4PsProduct

Product stands for the good or service that a business offers to the consumers. The product should meet the needs of the market segment that it intends to serve (Barker & Charles, 139). The product we offer to consumers is a delivery service the will ensure that they can receive goods purchase from online store at their convenience. There are many delivery service companies delivering goods to buyers worldwide. However, our service is different from what the other organizations offer. Our service will involve collecting goods bought from the sellers warehouses and taking to convenient store close to bus terminals where the buyers can pick the on their way home. Good can also be take to stores of customers’ choice where they can be accessed easily.

Place

Place stand for the location where the business can be found (Barker & Charles, 140). Our business will be online, and our clients will be able to reach us through our website. The will be able to order for our delivery services online. Other contact will also be on the website. These include our fax, email and telephone number. The business will also have a physical location where we will have an office with staff to act on the customs instructions. The other physical locations for our company will be our outsourced collection points.

PricePrice is what we will charge our customers for the services we provide them (Barker & Charles, 141). Price must be high enough to meet the costs of operation and low enough to attract customers to our services. At the start however we will not be keen at making the price. We will take penetration pricing strategy which will involve deliberately offer services at low prices to attract customers to use our delivery services. Once the business gets a ‘toehold’, our pricing strategy will change to a cost plus pricing strategy. This is common pricing strategy which involves totaling all cost involved in delivering the service the adding a margin for profit.

Promotion

Promotion involves making customers aware of the product (Barker & Charles, 142). When choosing a pricing strategy we will base on the target market and the cost incurred in creating the awareness. Since the business will start as a localized service provide operating only in a limited geographical area, advertisements will be conducted in local newspapers, radio stations, yellow pages, billboards and by word of mouth. Advertisements will also be conducted on the websites of the most popular online sellers in the area. Social media will also serve a s tool for advertising the business and popularize it.

FinancialsDelivery partner not only require online start up, but will also need a brick and mortar set up. The set up for the business will be minimal to enable realistic growth in future. The setup will cover a single metropolis and then incrementally take on strategic location in neighboring metropolitans.

Capital estimation

The initial set up will be based on renting space rather than buying it or building our own. This will certainly enhanced the flexibility of the business. For startup we will need the following:

Fixed AssetsA corporate center in New Jersey which will serve as the hub management, and monitoring and business development

Office furniture and computers

Outsourced storage or warehousing around the 50 bus terminals in the city.

TransportationWe will be equipped with four vans for collecting goods for sellers’ warehouse service providers to customers’ collection points.

Human ResourcesThe business will have Manager, an assistant manager, an ICT specialist, three office assistants a receptionist and five drivers, and ten porters.

Technology setupTechnological setup will include 7 computers of which three will be used by the top management and three by the office assistant to monitor movement of goods as well as track the customer orders for delivery. On e of the computers will be lead to the reception desk. We will outsource webhosting service from a reliable webhosting service provider.

MiscellaneousThis includes all other costs incurred in operating the business such as the inventory costs.

Start up and operational costs.

Investment Rate ($) Number Time (In Months) Total

Coordination office 400 pm 1 12 4800

Storage space (outsourced) 250 pm 10 12 30000

Total Infrastructure       34800

Transport Vans (Used Vans) $2,495 7 17465

Office Car 1 3000

Total Transportation Assets       20465

Manager 42000 1 12 504000

Assistant Manager 30000 1 12 360000

ICT specialist 25000 1 12 300000

Office Assistants 18000 3 12 648000

Receptionist 15000 1 12 375000

Drivers 15000 5 12 720000

Potters 15000 10 12 1800000

Total Human Resource Cost       4707000

Computers 200 7 1400

Website Setup 1000 1000

Webhosting 10 10

Internet $50 50

Software 40 40

Total ICT infrastructure Cost       2500

Vehicles 50000 50000

IT infrastructure 10000 10000

Total Maintenance cost       60000

Miscellaneous 20000 20000

Miscellaneous       20000

TOTAL       4844765

Funding sources

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References

Barker, Rachel. & Charles, George. Integrated Organisational Communication. Cape Town : Juta Academic, 2006.

Internet World Statistics. Internet Usage Statistics: The Internet Big Picture World Internet Users and Population Stats. Web. August 7, 2012 HYPERLINK “http://www.internetworldstats.com/stats.htm” http://www.internetworldstats.com/stats.htm

Kern, Russell. S.U.R.E.-Fire Direct Response Marketing: generating business-to-business sales leads for bottom-line success. New York: McGraw-Hall, 2001.