BUSINESS CASE

Introduction
OUR BUSINESS
Foodler is an online megamarket that
connects consumers with local grocery
merchants in the neighbourhood.
It offers the widest range of products for
instant delivery through its mobile app.
The app provides the users the choice to
order goods from nearby local stores and
get those delivered within 90 minutes of
placing the order.

OUR MISSION
To provide seamless and convenient
consumer experience in purchasing
the household and grocery items
they need across different retailers

Business Framework

Situation analysis
PROBLEM
Consumers are spending hours of their
personal time roaming around shelves in
search of required product.
Consumers are forced to compromise on
selection and quality, because they are limited
with selection available in one particular
supermarket.

SOLUTION

The application will allow the consumers to

purchase preferred items across different
stores/outlets from a single platform

Target Audience and Value Proposition

Profile

Consumer

Supermarkets

Brands

Maximum market size (TAM):

2,597,000 people aged 20-64 YO

Supermarkets of any size,

including specialised ones like
bakeries.
Meidi-ya Supermarket, Giant,
Fairprice, Mustafa, The Organic
Grocer, others

Any brand selling in any

supermarket

Total of 1,225,000 households

(Locals, expats Singapore)

Target market (SOM) 245,000

downloads

SOM: 20% on top of main

revenue stream.

TAM: Major Chains

SOM: All available supermarkets

VP

Streamline search and purchase

process in an App.
- National cuisine for expats
- Vegan/vegetarian/organic

1. Widen customer reach.

2. More effective marketing

1. Wider customer reach

2. More cost-effective
marketing and
promotion options

- Hassle free

Trend
Customers are getting used to buy through aggregators.
Rising middle class driving food retail growth. ( ASEAN Grocery Retail - DBS)
KPMG: http://www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/Documents/Retailing-Asia-Pacific-200610.pdf

Competition
HonestBee Singapore (direct competitor)
- HonestBee dont own any inventories. What happens with HonestBee is
that you place your orders on the site for the groceries you want, and the
platform dispatches runners (or bees) to get the groceries and deliver
them to you.
- The user experience on Honestbee is exactly what youd expect of an
online grocer: simply choose the items which you want and add them to
your cart, choose a delivery timing, and your groceries will be on their way.
Currently, Honestbee supports items from Cold Storage, Isetan and Sheng
Siong, which are some of the largest supermarket chains in Singapore.
- HonestBee weakness: A rather expensive delivery.

What makes us stand out?

A comprehensive online aggregation of all major supermarkets.

Quality of delivery and customer service will take over

Scalability
3 years forecast (Mid-term)
- Focus to grow the market share in Singapore.
- Establish strong following for Foodler.
- Improve on the functions that Foodler provides.

Long term plans (4 years on)

- Target neighboring regional countries such as:
Indonesia (249.9 mil)
Malaysia (29.72mil)
Thailand (67.01 mil)
Hong Kong (7.188 mil)
Taiwan (23.48 mil)

START

- These countries have a sizeable potential household size.

- These countries face the same problem of a congested urban living conditions with busy
lifestyles thus making Foodler relevant.
- Foodler also has an opportunity to enter these markets as the consumers have adopted
technology making Foodler's entry more seamless.

Source: World Bank

Revenue Streams
Commission

Commission
based from
sales of
products and
goods ranging
between 25%.

Premium
Membership
(Paid
Subscription)
Consumer pay
for advanced
features. i.e.:
advanced
search
options, adsfree, new
product
tasting.

Advertising

Product
placement
and other
advertising
space for
brands.

Ancillary
Revenue

Revenue from
the retailers
who will have
the opportunity
to feature their
highlights/pro
motions on a
monthly basis.

Reaching out Consumers for Business

Tie-up with Supermarkets

Sales & Distribution Model

Organisation Chart

Development Strategy

Financial $
Year 1

Year 2

Fixed Cost

-$2,742,806.35

-$11,757,099.23

Revenue

$85,809,676.80

$775,412,000.00

$1,712,768.00
$85,638.40
$85,638.40

$23,040,000.00
$500,000.00
$4,608,000.00
$2,304,000.00

-$858,761.55

$18,694,900.77

Margin (commission)
Margin (Memberships)
Margin (advertising)
Ancillary margin
Profit (Loss)

Start-up period (zero revenue): 6 months

Assumptions:
2 purchase / week by each active user
80 SGD - average cheque

Thanks!
Business proposal

prepared by

M2 Group 2
Name

Email

Sanjay Rawlani

sanjay.rawlani@iprospect.com

Neville Chesan

neville.chesan@indiquest.co.uk

Eugene Reznikov

Er@artellect.net

Janet Hu

Janet.hu@ihg.com

Zach Tan

zach.tan@sonymusic.com

Grace Maung

ecarg_bliss@hotmail.com