Food delivery mobile app business plan
The relevance of research
The segment for the delivery of food from restaurants in India is still underdeveloped and therefore promising. It should be noted that the prospects of the market are obvious - people tend to reduce the effort, time and energy that they spend on shopping and cooking, and restaurants - to increase sales without increasing costs.
Content
PROJECT SUMMARY
1. RELEVANCE OF THE PROJECT
2.MARKETING RESEARCH OF THE MARKET OF MOBILE APPS
2.1. Overview of the mobile application market in India
2.1.1. Key Features of the Indian Smartphone Market
2.1.2. Key Features of the Indian Mobile App Market
2.1.3. Assessing Factors Affecting the Indian Mobile App Market
2.1.4. Market Volume and Capacity Dynamics
2.1.5. Market structure by types of mobile applications
2.2. Competitive Analysis of Mobile Food Delivery App Market in India
2.2.1. The Biggest Players in the Mobile Food Delivery Market in India
2.2.2. Market shares of the largest competitors
2.3. Analysis of consumption in the food delivery application market
2.3.1. Market structure by users of food delivery applications
2.3.2. Forecast of demand for food delivery services through mobile applications
2.4. Recommendations and conclusions
3.MARKETING PLAN
3.1. Marketing strategy
3.2. Enterprise business model
3.3. Assortment and pricing policy
3.4. Advertising and promotion
3.5. SWOT analysis
4. ORGANIZATIONAL PLAN
4.1. Location of the enterprise. Stages of project implementation
4.2. Organizational structure and staffing
4.3. Legal, tax and information support of the project
5. PRODUCTION PLAN
5.1. Main characteristics of production
5.2. Calculation of the cost of fixed assets
5.3. Calculation of the cost of direct costs
5.4. Working capital
6. FINANCIAL PLAN
6.1. Key financial plan assumptions
6.2. Project financing
6.3. Sales analysis
6.4. Analysis of the structure of direct costs
6.5. Analysis of the structure of general and administrative costs
6.6. Analysis of the structure of tax payments
6.7. Analysis of the structure of the total cost
6.8. Financial results of the project
6.9. Cash flow statement
6.10. Dynamics of working capital
6.11. Discount rate calculation
6.12. Investment efficiency indicators
6.13. Break even analysis
6.14. Sensitivity analysis
6.15. Conclusions on the feasibility of the project
7. RISK ANALYSIS
7.1. Description and ways to minimize risks
7.2. Project risk profile
Application. financial model
An excerpt from a business plan
1. RELEVANCE OF THE PROJECT
The transition of the food business from offline to online is a global trend. According to Food Tech Connect, the volume of investments in the international food tech market (technologies and services related in one way or another to food) amounted to about $2016 million by September 665, slightly more than half of this amount is associated with the IPO of the Dutch online food delivery platform Takeaway. com.
Today, IT technologies are used in the delivery of fresh products and ready meals, menu designers for every day, in joint projects with restaurants. There are benefits from the emergence of a single mobile aggregator application for both food consumers and food suppliers.
2.MARKETING RESEARCH OF THE MARKET OF MOBILE APPS
2.1 India Mobile Application Market Overview
2.1.1 Key Features of the Indian Smartphone Market
In October 2016, StatCounter recorded a fact: worldwide, the number of Internet connections using mobile devices for the first time in the history of observations exceeded the number of accesses to the global network made from personal computers.
Diagram 1. Dynamics of the popularity of devices for accessing the Internet in the world from 2009 to 2016,%
The smartphone market is gradually starting to recover from the effects of the devaluation of the rupee, and users are starting to get used to new realities and adapt to new device prices.
Figure 3. Dynamics of increasing the diagonal of smartphones in sales in the Indian market
2.1.2. Key Features of the Indian Mobile App Market
In order to characterize the Indian mobile application market in light of the creation of an online food ordering service, we should first note the situation with the penetration of the Internet and mobile applications into the lives of Indians.
2.1.3. Assessing Factors Affecting the Indian Mobile App Market
Unlike India, abroad, the capitalization of food delivery services through mobile applications reaches several billion dollars. Compared to the West, food delivery in India is underdeveloped. …
2.1.4. Market Volume and Capacity Dynamics
According to a study on the turnover of the public catering market, conducted by RBC in 2015, among the countries:..
Diagram 6. Dynamics of the average check for ordering food through online food services in India from 2010 to 2016, Rs.
2.1.5. Market structure by types of mobile applications
A mobile application is a program installed on a particular platform that has certain functionality that allows you to perform certain actions. According to technological performance, native, web and hybrid applications are distinguished ...
2.2. Competitive Analysis of Mobile Food Delivery App Market in India
2.2.1 Biggest Players in the Mobile Food Delivery Market in India
As in the case of the introduction of any innovation in India is in the first place, so with online food delivery services, it was ahead of all other cities. Therefore, most of the mobile applications on the market - food delivery aggregators work on.
2.2.2. Market shares of the largest competitors
The secrecy of the data of many companies in the food tech market in India does not allow a detailed assessment of their scale of activity and calculation of the market share of food ordering services. At the same time, a rough idea of this can be made based on the number of restaurants that have connected to a particular service.
Chart 9. Share of large Indian food ordering aggregator services in 2013-2015
2.3. Analysis of consumption in the food delivery application market
2.3.1. Market structure by users of food delivery applications
Online food ordering in India has become very popular over the past few years. The widespread use of the Internet and gadgets, the transfer of reality into the virtual space and the ever-increasing pace of life have ensured active development for the food delivery business. The reason for this is the mutual interest of all participants in the process.
2.3.2. Forecast of demand for food delivery services through mobile applications
According to App Annie, the mobile app industry has generated a whopping $41,1 billion in gross annual revenue and is expected to grow to $50,9 billion. …
2.4. Recommendations and conclusions
The monitoring of the state of the Indian food tech market, conducted by Gidmarket, allows us to state its prospects and, at the same time, evaluate the success of this project as quite high with proper planning and adherence to a clear development strategy. It should be noted such key points in the application market for ordering food delivery: ...
3.MARKETING PLAN
3.1 Marketing strategy
The mission of the company is to create a convenient, fast and unified way to order food at home for residents of the target region.
The main objective of the project is to become a leader in the online food delivery segment in its region of India…
3.2. Enterprise business model
The business model of the project is a conceptual description of entrepreneurial activity, and in the case of the created service, it will be based on the function of a link between food customers, its manufacturers and suppliers.
3.3 Assortment and pricing policy
Assortment Policy
The range of existing apps tends to focus on ""top"" dishes, with pizza and sushi being the leaders.
3.4. Advertising and promotion
To promote a mobile application - aggregator and website, you can use the following channels: ...
3.5. SWOT analysis
4. ORGANIZATIONAL PLAN
4.1. Location of the enterprise. Stages of project implementation
The region of location of the enterprise and the geography of the project implementation are 3-4 regions of India, in which the existing large players are least represented. For example, the implementation of the project in the Far East is seen as promising.
Table 2. Leading mobile app developers in India
4.2 Organizational structure and staffing
Business organization is carried out in the form of a limited liability company. The staff working with the application should be divided into 2 groups: ...
4.3 Legal, tax and information support of the project
To implement the project, it is planned to create a limited liability company. To create an LLC, it will be necessary to go through the appropriate state registration procedure with the registering body of the Federal Tax Service at the place of the legal address of the LLC. …
5. PRODUCTION PLAN
5.1 Main characteristics of production
The key processes in the operation of a mobile application - an aggregator for ordering food - are the connection of partners to the application, the process of updating data on the site, order processing (reception, delivery, payment, payment with the application), technical support of the application.
5.2 Calculation of the value of fixed assets
To start the project, the development process is preceded by the rental of server equipment (or hosting) and a domain.
Table 5. Calculation of the cost of server equipment and domain rental services for the site
5.3 Calculation of direct costs
The direct costs that will be associated with this project are related to the implementation of delivery services by our own courier service. The cost of the delivery service, in addition to the pledged income of the service, will be increased due to the cost of the courier's labor and the cost of fuel.
5.4 Working capital
The structure of current assets and current liabilities with the maximum turnover period is shown in table 11.
Table 11. Working capital
6. FINANCIAL PLAN
6.1. Key financial plan assumptions
The financial plan of the project is based on the following assumptions: the forecast period is 10 years, services are provided in the domestic market. The calculation is carried out in constant prices.
6.2. Project financing
6.3 Sales analysis
To represent the growth dynamics of the company's revenue through the implementation of the project to create a food order aggregator service, the period from 0 to 24 months of the project was chosen, when it is possible to track the development period, the launch of the site and the subsequent launch of the aggregator in the mobile application.
The predominant share of all costs for the operation of the aggregator service is the cost of service personnel, since 75% of all orders are planned to be served by our own couriers using our own transport.
6.4 Analysis of the structure of direct costs
The structure of direct production costs is as follows:
Diagram 12. Structure of direct costs, %
6.5 Analysis of the structure of general and administrative costs
Diagram 13 shows the structure of general and administrative costs for launching a food ordering aggregator service.
Diagram 13. Analysis of the structure of general and administrative costs, %
6.7. Analysis of the structure of the total cost
The structure of the total cost is dominated by direct material costs, which account for 58%. This is due to the size of the wage fund for the work of their own courier service.
6.8. Financial results of the project
According to the forecasts of GidMarket experts, in 2019, when the enterprise begins to operate fully, the enterprise will begin to receive net profit.
6.9. Cash flow statement
The cash flow statement allows you to see the possibility of successfully managing the company's liquidity. Attention should be paid to the stability of the cash flow from operations, as it reflects the sufficiency of available funds to repay potential loans and maintain the productive capacity of the aggregator service.
6.10. Dynamics of working capital
The dynamics of working capital for the period from 2018 to 2029 is indicated in the comparison of net assets and net liabilities …
6.11. Discount rate calculation
The discount rate that takes into account the risks of the project (D) is determined as a percentage according to the formula: ...
6.12. Investment efficiency indicators
6.13. Break even analysis
Break-even analysis is one of the most important pieces of information used in evaluating the effectiveness of projects. It shows the investor at what volume production breaks even, i.e. what is the critical point, below which the printing house will lose income, and above - to receive them.
6.14. Sensitivity analysis
Sensitivity analysis consists in assessing the impact of changing the initial parameters of the project on its final characteristics, which are usually used as the internal rate of return or NPV. The technique of sensitivity analysis is to change the selected parameters within certain limits, provided that the other parameters remain unchanged. The larger the range of parameter variation, in which NPV or the rate of return remains positive, as in this diagram, the more stable the project.
6.15. Conclusions on the feasibility of the project
In general, the project has a high level of investment efficiency: net present value (net present value) for the project implementation period …
7. RISK ANALYSIS
7.1. Description and ways to minimize risks
The launch of a technically complex project in the progressive niche of the food tech market in the presence of a number of players with large capitals requires the development of a clear action strategy and a combination of high-quality execution of a large number of different operations, well-coordinated interaction of all project participants (from couriers and marketers to the restaurants themselves and technical support), and slight negligence of even one of them, especially at the start of the project, can result in financial losses and reputational risks. To do this, the possible risks of activity are analyzed in advance, evaluated and ways to minimize them are developed.
7.2 Project risk profile
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