WCC AERONAUTICAL AND TECHNOLOGICAL COLLEGE

Binalonan Airfield, Binalonan, Pangasinan

Business Plan

Grocery On The Go

Business Plan Prepared by

Banda, Pj Joshua P.
Bermudez, Charles Ferfranz N.
DeGuzman, Dominique Leila G.
Dela cruz, Julio Jerino
Honsayco, Yssah Camille C.
Mangali, Brandon Isaac B.
Mata, Emmanuel G.
Monilla, Tephanie Shayne A.
Tamsac, Jhermae Lou A.

May, 2022
 BUSINESS OVERVIEW

Grocery On The Go is a commodities truck loaded with typical

grocery items such as canned food, fruits, vegetables, meat products,
beverages, cleaning products, toiletries, etc. are to roam around the
different barangays in the city. Since there are barangays that are away
from the marketplace, this business will be feasible for them. The truck
would have its own schedule and itinerary, which will be posted on the
internet, and once the truck has passed through the given barangay, it
will display a calendar with the days the truck will be visiting again.

This business will provide convenience to people because they

would no longer need to go to city markets to shop for groceries, which is
great, especially for the elderly and the PWD. This is also a good time to
start this business because there are still many people who are afraid to
be near strangers due to the Covid-19 Pandemic, and through this truck,
they would no longer have to incur risks simply to meet their basic
needs. This business is open for all, especially to those who live in far
barrios, the elderly, and people with disabilities.

Problems may arise such as not being able to go to all the

destinations of the day due to traffic, delay of supplies, or problems with
the truck itself. Following the schedule would also be a challenge and
that is why we would conduct surveys and check our target customers’
preferences before we start. Our edge is that we are millennials and we
have expertise in social media that would play a big part in our
marketing. And our advantage over normal grocery stores is that ours
come to our customers and not the other way around. This type of
business also requires a lower initial investment and lower operation cost
as you don’t need to have a large workforce, has a lower tax rate, and
only requires little maintenance and repairs over time.

MARKET ANALYSIS

Despite the relaxation of the restrictions imposed due to the

current health crisis in the country, the movement of consumers across
different establishments remains far from the pre-pandemic movement.
Grocery On The Go is born of the notion that people should be able to
acquire their necessities without having to worry about their health
and safety. To further emphasize the market that the proposed
business is targeting, this section provides an overview of the potential
consumer group, as well as the current status of the mobile grocery
industry and the potential competitors in the market.

Industry Analysis

The demand for convenience in purchasing products and services

is increasing due to the further advancement of technology and the
mental and physical effects of the current health crisis. Most people
around the globe are aware and use online delivery apps to purchase
food and grocery items without the need to go out of their homes. From
a global perspective, mobile grocery businesses exhibited a growth of
$6 billion since their entry to the food market in 2019.

However, the same cannot be said for mobile grocery stores,

which are a more beneficial means of safe acquisition of food and
grocery needs. In the Philippines, mobile grocery usually comes in a
kariton (wooden push cast) that contains different products, including
fruits, vegetables, fish, and even things like belts, clothes, and
mattresses. Kariton vendors offer their products around streets and
villages in rural and urban areas. Little is known about the statistics of
the mobile grocery industry in the Philippines, but it is safe to assume
that this type of business seemed like a good idea in the midst of the
COVId-19 pandemic.

In 2015, the Philippines Department of Labor and Employment

developed the NegoKart project, a program that aims to support kariton
vendors by providing capital, hosting trainings, and offering other
relevant assistance. At present, the different streets in the Philippines
still witness kariton vendors roaming around to a wide array of
products to Filipino households.

Target Market

Grocery On The Go differs from the kariton business in terms of

two aspects. First, Grocery On the Go is exclusive to grocery items,
such as perishable goods, cleaning products, and toiletries. Second, the
vehicle that will be used for this business will have a fixed route around
barangays that are relatively far from the marketplace and grocery
stores.

On a specific note, Grocery On The Go aims to cater to the

grocery needs of Lingayen residents, particularly five barangays:
Maniboc, Balangobong, Malimpue, Pangapisan, and Aliwekwek. As of
2020, the aforementioned barangays are home to 8,149, 1,294, 3,872,
10,293, and 1,549 people, respectively. The entire province of
Pangasinan is under Alert Level 2, which means that residents are
allowed to go out given that they wear face masks and bring other
requirements mandated by the local government unit. Considering that
a large portion of the population in Lingayen is composed of individuals
aged 14 and below, the relatively lax movement protocols might expose
many residents to a high risk of contracting and transmitting COVID-
19. In addition, residents from the five barangays need to commute for
a long period to reach the market and commercial areas. Aside from
exposure to the environment, the residents also suffer from the
additional charge on the fares (i.e., pandemic fare) asked by public
utility drivers. Therefore, encouraging the people to reduce the
frequency of going out by bringing the grocery store to them will not
only protect their health and safety but also reduce the cost of
commuting to the market.

Potential Competition

Currently, Grocery On The Go has no dominant competitor in the

area, except for other kariton vendors that sell products that the mobile
grocery does not carry. However, the same business idea has been
circulating in other provinces, including Laguna. Sierreza is an
agricultural food store that adopts the same idea of a mobile grocery to
support local farmers while bringing healthy food to the residents of
Los Baños.

Despite the absence of a primary competitor, Grocery On The Go

might have close encounters with several online food delivery
businesses (e.g., Grab and Foodpanda) and other local grocery delivery
services around Lingayen.

COMPETITIVE ANALYSIS

At present, Grocery On The Go has no identical competitor in the

target areas, except for other kariton vendors that sell products not
included in the offerings of this mobile grocery. However, the same
business idea has been circulating in other provinces since the onset of
the COVID-19 pandemic.

1. Sierreza (Los Baños, Laguna)

Figure 1. Logo of Sierreza

Sierreza is a livelihood program founded by Engr. Che Abrigo in

2016 to support local farmers and producers. From its founding year to
the early part of 2020, Sierreza served as an agricultural hub where
farmers can sell their produce. When the pandemic set in, the hub was
converted into a mobile grocery that served Los Baños residents who
were affected by the series of lockdowns in Luzon. When the restrictions
relaxed, Sierreza reverted to being an agricultural hub during weekdays
and continued serving as a mobile grocery during weekends. The
management even expanded the delivery area to some parts of Metro
Manila, including Alabang, Makati, and Parañaque.
 2. Mobile Palengke (Pasig City, Metro Manila)

Figure 2. One of the mobile palengkes deployed in Pasig City

According to Pasig Mayor Vico Sotto, this initiative aims to

supplement the strict implementation of social distancing rules in
different marketplaces, supermarkets, and grocery stores in the city. In
March 2020, the Pasig City government officially launched Mobile
Palengke in the form of five roving stores that cover all barangays in
Pasig.

3. Vegetables on Wheel (Iriga, Camarines Sur)

Figure 3. Vegetables on Wheel Project

 Headed by the city agriculturist of Iriga, Ruben Delos Santos, the
Vegetables on Wheel project consist of two vehicles that roam around
the 36 barangays in Iriga City, Camarines Sur to sell the vegetables
produced by the local farmers in the area. The city government
purchases the harvest of the farmers and sells the goods at low prices
to the citizens to address the shortage in vegetables due to the closure
of the border between the city and the areas from which Iriga sources
fresh goods.

Indirect Competitors

Despite the absence of a primary competitor, Grocery On The Go

belongs to the same domain as online food delivery businesses. Some of
the prominent players in this industry include GrabMart and
Foodpanda, both of which are mainstream food delivery services at the
national level. Foodpanda, however, delivers only food items from food
shops and fast food branches. Hence, this service can be considered a
far indirect competitor of Grocery On The Go. On the other hand,
GrabMart offers delivery services for grocery orders, food and toiletries
included. This resembles the business model of Grocery On The Go,
but GrabMart provides a limited number of shop options in its catalog.
For instance, consumers can order only from the shops that are
registered as official vendors under GrabMart. Moreover, the delivery
fee in GrabMart is relatively high, which is why low-earners do not
prefer to use this delivery service. In comparison, Grocery On The Go is
more beneficial than GrabMart in terms of product variety and pricing
due to the former’s non-vendor-specific offerings and low markup.

It is worth noting that various local grocery delivery services are

also available in different areas in Pangasinan. Some of these services
include GreenMart, CSI e-Supply Online Shopping, and Lingayen
Online. Although these grocery delivery services offer the same types of
grocery items as Grocery On The Go, they require pre-ordering and/or
reservations. This means that there is a chance that the orders may not
be complete upon delivery to the consumers when the supply from the
source grocery or supermarket is insufficient. These processes are not
required by Grocery On The Go, thereby ensuring that consumers can
readily purchase any item from the mobile grocery.

Barriers Analysis

One major concern to this business is the supply chain. Finding

long-term suppliers and product sources is especially challenging
because of the limited volume of goods produced in line with the
production limits associated with COVID-19 protocols. Major suppliers
tend to prioritize businesses with well-established names to ensure
consistent sales. Grocery On The Go might encounter difficulties in this
aspect due to its nature as a young business. To address this barrier, the
management must develop a procurement plan that can guarantee
suppliers a consistent and long-term procurement relationship.

Grocery On The Go could also encounter poor road conditions, as

the Philippines does indeed have high roadways issues including
potholes, construction work zones, slippery roads, confusing signage,
and community activities. These all could end up making our business
difficult to manage since we need to transport goods to different
barangays. And if this does happen, our revenues would then fall;
therefore, to address this barrier, the management will have to prepare
days or weeks before the delivery and try to look for alternate routes.
 SALES AND MARKETING

Grocery on The Go will primarily serve barangays with limited

availability to the marketplace. People in each barangay will be able to
get their groceries for the week because our business will be a moving
truck. As a moving truck, it will visit several barangays throughout a
city. Grocery On The Go will include all of the essentials that people
require and desire for the entire week. Customers can also select certain
specific items that they want to purchase and use. Because food is one of
the most basic human necessities, it will be the major product of our
company.

Unlike grab food or other food outlets, Grocery on the Go will also
contain other essentials such as toiletries, cleaning supplies, and so on.
Making it even more remarkable and one-of-a-kind. In addition, the
management will also provide the most approachable and pleasant
personnel for customers to contact with questions. We will also choose a
volunteer in each barangay to ask families in a form of a survey of what
they require and prepare a list of all basic household supplies. That
representative will communicate with our staff on a regular schedule.
Every week, we will go in and out of each barangay to ensure that they
do not run out of what they require in the following weeks. We will make
sure that the customers will be satisfied with our work. This will enable
us to respond to changes in this market much faster than our
competitors.

We also want to ensure that people are safe, especially given the
present pandemic, which makes leaving the house risky. As a result, we
will not charge a high price because we recognize that every family
operates on a weekly budget and we want to keep our pricing as low as
possible. We want to be accessible and economical at the same time. Our
main goal is to help people with their financial obligations on a weekly
basis. Overall, the purpose of Grocery On The Go is to ensure that every
family has a better and more convenient home. Our company will make a
difference in the lives of families who are no longer relying on the market.