COLLEGE OF HEALTH SCIENCE

SCHOOL OF MEDICINE
DEPARTMENT OF RADIOLOGIC TECHNOLOGY

ENTREPRENEURSHIP

BUSSINESS PLAN
Group Assignment

Name ID No

DAGMAWI GETACHEW UGR/7613/14

EBA SHIFERA UGR/3115/13

LEUL TIZAZU UGR/5975/14

SISAY ABRHA UGR/7241/14

YOHANNES WEREDE UGR/5975/14

Submitted to: Mr. Biruk Mekash

December 5, 2023

Addis Ababa, Ethiopia

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Name of the project: MerkaDorm

Address: Addis Ketema, A.A - Ethiopia

Head quarter: AAU Sefere-selam campus

INTRODUCTION
In today's fast-paced world, convenience and efficiency have become paramount in the lives of
university students. With demanding academic schedules and limited time, the need for
convenient access to essential products has never been more crucial. Recognizing this growing
demand, we present MerkaDorm, a business idea that aims to deliver products directly to
university students at their dorms, revolutionizing the way they shop.
MerkaDorm is a company dedicated to providing a hassle-free and personalized shopping
experience for students. Our mission is to alleviate the stress and time constraints that students
face when trying to obtain essential items. By leveraging motor vehicles and bicycles, along with
the power of technology, we aim to make shopping for everyday necessities as simple as a few
taps on a smartphone.
At MerkaDorm, we understand the unique challenges faced by university students living in
dorms. Traditional shopping methods often require them to navigate crowded stores, carry heavy
bags, and spend valuable time traveling to and from retail locations. Our business model
eliminates these inconveniences by bringing the store directly to their doorstep.
Through our innovative platform, students will have the freedom to choose the products they
need, from textbooks and stationery to snacks and personal care items. Our extensive network of
local suppliers ensures that we can offer a wide selection of high-quality products tailored to the
specific needs of university students. By giving customers the power to decide what we deliver,
we empower them to personalize their shopping experience and save valuable time.
Our delivery fleet, consisting of motor vehicles and bicycles, guarantees prompt and efficient
service. With strategically planned delivery routes and a commitment to timely deliveries, we
aim to exceed customer expectations and provide a seamless experience from start to finish.
Whether it's a last-minute study session, a forgotten essential, or a craving for a favorite snack,
MerkaDorm will be there to fulfill students' needs promptly and reliably.
In addition to convenience and efficiency, MerkaDorm places a strong emphasis on customer
satisfaction. We understand that the needs of university students are ever evolving, and we strive
to adapt and improve continuously. Through feedback and engagement, we will actively listen to
our customers and incorporate their input into our product offerings and service enhancements.

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MerkaDorm's vision is to become the go-to solution for university students' shopping needs,
providing a seamless and personalized shopping experience that enhances their overall well-
being. By combining cutting-edge technology, efficient delivery methods, and a customer-centric
approach, we aim to redefine convenience for the dorm-dwelling student population.
Join us on this exciting journey as we revolutionize the way university students shop. With
MerkaDorm, convenience, efficiency, and personalization are just a few taps away.
In general, College student has many of its problems. One is getting what you want with no
wandering around. You may be new to this city or maybe you don’t have time to get it yourself
or you have agoraphobia and can’t go to the market. Don’t worry merkadorm is here to make
your shopping easier and quicker. Merkadorm is a platform that focuses on shopping and
delivery of permitted products for all AAU university students. It’s a digital shopping center
that aims to strive for perfection.
The term MerkaDorm is coined from two words; Merkato (the largest open-air market in
Africa) and Dorm (to show that we deliver products to students’ dorm).

EXECUTIVE SUMMARY
This business plan outlines the development and implementation of Merkadorm, a digital
shopping center with a delivery system targeting college students living on campus. Our
innovative platform will provide a convenient and efficient shopping experience, offering a wide
range of products that are permitted within the campus compound. Utilizing bicycle delivery, we
aim to meet the unique needs of college students while promoting sustainability.

The Problem:
College students living on campus often face challenges in accessing essential products due to
limited transportation options and time constraints. Additionally, traditional shopping methods
may not cater to the specific requirements and restrictions imposed within the campus
compound. There is a need for a specialized shopping and delivery system tailored to college
students' needs.

The Solution:
Merkadorm will act as a digital shopping center, offering an extensive product range that
complies with the campus regulations. Students will have access to a user-friendly website where
they can browse and order products conveniently. Our delivery system, powered by bicycles, will
ensure fast and eco-friendly delivery directly to the students' dormitories.

Key Features and Benefits:

1. Tailored Product Range: Merkadorm will put together a product list that aligns with the
campus guidelines, providing students with a comprehensive selection of essential items,
including groceries, personal care products, stationery, and more.

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2. Convenient Digital Platform: Our user-friendly website will enable students to browse and
order products with ease, offering a seamless and intuitive shopping experience.
3. Sustainable Delivery: By utilizing bicycles for delivery, we will reduce carbon emissions and
promote environmentally friendly practices, aligning with the sustainability values of college
campuses.
4. Time Efficiency: Merkadorm's delivery system will save students time and effort by
eliminating the need to travel off-campus for shopping, allowing them to focus on their studies
and other activities.

Target Market:
Our target market consists of college students living on campus who seek a convenient and
hassle-free shopping experience. We will initially focus on our university campuses where there
is a high demand for on-campus shopping solutions.

Revenue Generation:
We will generate revenue through various streams, including a percentage of sales from partner
retailers, delivery fees, and potentially, advertising and promotional partnerships with relevant
brands. Additionally, we will explore opportunities for collaborations with campus organizations
and events.

Marketing and Growth Strategy:

Our marketing strategy will primarily focus on reaching college students through digital
channels, campus partnerships, and targeted advertising. We will leverage social media, online
communities, and campus events to create awareness and engage with our target audience.

Financial Projections:
Our financial projections consider factors such as operational costs, delivery expenses, marketing
expenditures, and projected sales. We anticipate reaching profitability within the first two years
of operation.

Conclusion:
Merkadorm aims to revolutionize the shopping experience for college students living on campus
by providing a digital shopping center with convenient bicycle delivery. Our platform will cater
to the unique needs of students, offering a wide range of permitted products and promoting
sustainability. With a strategic marketing approach and a focus on customer satisfaction, we are
confident in our ability to establish Merkadorm.

BUSINESS CONCEPT
Title: Merkadorm - Shopping and Delivery System for College Students
MerkaDorm is an innovative shopping and delivery company that aims to provide a convenient
and sustainable solution for college students living in campuses. By utilizing bicycles for
deliveries, Merkadorm aims to reduce carbon emissions and promote a greener mode of
transportation. The company focuses on offering a range of products permitted by campus rules

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and regulations, providing students with essential items and services. With its user-friendly
website and strategic partnerships with sellers and retailers, Merkadorm strives to enhance the
shopping experience for college students.

Objective:
The primary objective of Merkadorm is to address the unique needs and challenges faced by
college students living in campuses. The key objectives of the business are as follows:
1. Convenience: Merkadorm aims to provide a hassle-free shopping experience for college
students. By offering a comprehensive range of products permitted by campus rules, students can
easily access essential items without having to leave the campus premises. The bicycle-based
delivery system ensures quick and efficient delivery, saving students valuable time and effort.
2. Sustainability: Merkadorm is committed to promoting sustainability and reducing carbon
emissions. By utilizing bicycles for deliveries, the company aims to minimize its environmental
impact and contribute to a greener future. The use of eco-friendly packaging materials further
reinforces this commitment.
3. Student-Centric Approach: Merkadorm understands the unique needs and preferences of
college students. The company strives to tailor its services to meet their requirements, offering
products and services that are specifically permitted by campus rules and regulations. This
student-centric approach ensures that Merkadorm remains a trusted and reliable shopping and
delivery option for the college community.
4. Partnerships: Merkadorm plans to establish strong partnerships with specific sellers and
retailers to expand its product offerings. By collaborating with local businesses, the company can
provide a diverse range of products to cater to the varying needs of college students. These
partnerships also create opportunities for mutual growth and support within the local business
community.
5. User-Friendly Interface: Merkadorm's website serves as a user-friendly platform for students
to browse and order products. The website is designed to showcase the complete product lists,
ensuring that students have a wide selection of permitted items to choose from. The interface is
intuitive and easy to navigate, allowing for a seamless shopping experience.
6. Time Efficiency: Merkadorm aims to save college students valuable time by providing a
streamlined shopping and delivery service. By offering a wide selection of permitted products
and a user-friendly website, students can quickly and conveniently browse, order, and receive
their items, allowing them to focus more on their studies and other activities.
7. Cost-Effectiveness: Merkadorm strives to offer competitive pricing for its products and
services. By leveraging partnerships with sellers and retailers, the company can negotiate
favorable pricing and pass on the cost savings to the students. This objective ensures that
Merkadorm remains an affordable option for college students, helping them manage their
budgets effectively.

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8. Customer Satisfaction: Merkadorm places a strong emphasis on customer satisfaction. The
company aims to provide exceptional service, addressing any concerns or issues promptly and
effectively. By actively gathering feedback from students and continuously improving its
operations, Merkadorm aims to exceed customer expectations and build long-term relationships
with its customer base.
9. Community Engagement: Merkadorm seeks to actively engage with the college community
beyond its shopping and delivery services. The company plans to organize events and initiatives
that promote sustainability, health, and well-being among college students. By actively
participating in campus activities and contributing to the community, Merkadorm aims to foster a
sense of belonging and loyalty among its customers.
10. Expansion and Growth: While initially focusing on AAU campuses, Merkadorm has a
long-term objective of expanding its operations to other campuses and universities. By
demonstrating its success and value proposition at the AAU campus, the company aims to
replicate its model in other educational institutions, catering to a broader student population and
establishing a strong presence in the market.
11. Continuous Innovation: Merkadorm recognizes the importance of staying ahead of the
curve in a rapidly evolving market. The company aims to continuously innovate its services,
exploring new technologies and strategies to enhance the shopping and delivery experience for
college students. By embracing new trends and adopting cutting-edge solutions, Merkadorm
aims to remain a leader in its industry and adapt to the changing needs of its target market.
12. Social Impact: Merkadorm aims to make a positive social impact by promoting
sustainability and environmentally friendly practices. The company strives to raise awareness
among college students about the importance of reducing carbon emissions and adopting eco-
conscious lifestyles. By actively engaging in sustainable practices and encouraging students to
do the same, Merkadorm aims to contribute to a greener and more sustainable future.
In summary, Merkadorm has a comprehensive set of objectives that encompass convenience,
sustainability, customer satisfaction, community engagement, and long-term growth. By focusing
on these objectives, the company aims to provide a superior shopping and delivery experience
for college students while positively impacting the environment and the communities it serves.

Product Range:
Merkadorm focuses on offering a range of products that are permitted by the campus rules and
regulations. The company provides essential items and services required by college students,
including but not limited to:
➢ Groceries: Merkadorm offers a wide selection of groceries, including fresh produce,
pantry staples, snacks, beverages, and household essentials. Students can conveniently
order these items and have them delivered directly to their dormitories or designated
pickup points on campus.
➢ Personal Care Items: Merkadorm ensures that students have access to personal care
products such as toiletries, hygiene products, and cosmetics. By partnering with reputable

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 brands and retailers, the company ensures the availability of quality products that meet
the specific needs of college students.
➢ Stationery: Merkadorm understands the importance of stationery items for students'
academic pursuits. The company offers a range of stationery, including notebooks, pens,
pencils, markers, and other writing instruments, ensuring that students have easy access
to these essential supplies.
In addition to groceries and personal care items, Merkadorm plans to collaborate with local
businesses to provide additional services. These may include laundry services, pharmacy
deliveries, and meal deliveries from nearby restaurants. By expanding its service offerings,
Merkadorm aims to become a comprehensive solution for all student needs.

Partnerships with Sellers and Retailers:

Merkadorm acknowledges the value of partnerships with specific sellers and retailers to enhance
its product range and cater to a wider variety of student needs. By collaborating with trusted
local businesses, the company can offer a diverse selection of permitted products. These
partnerships also provide an opportunity for local businesses to reach a targeted audience and
increase their visibility within the college community.
Merkadorm's partnership model involves establishing mutually beneficial agreements with
sellers and retailers. The company ensures that the products offered are in line with campus rules
and regulations, maintaining compliance and upholding the reputation of both Merkadorm and
its partners. Through effective communication and collaboration, Merkadorm aims to build long-
lasting relationships with its partners, promoting growth and success for all parties involved.

User-Friendly Website:
Merkadorm's website serves as a user-friendly interface for students to explore product lists and
make orders. The website is designed with a clean and intuitive layout, ensuring easy navigation
and seamless user experience. Students can access the website through their computers, laptops,
or mobile devices, providing flexibility and convenience.
The website showcases the complete range of permitted products, with detailed descriptions and
images to assist students in making informed purchasing decisions. Students can create accounts,
add items to their carts, and proceed with secure online payments. The website also offers
features such as personalized shopping lists, quick reordering options, and a chat support system
to address any queries or concerns that students may have during their shopping experience.

Headquarter:
Merkadorm's headquarter is strategically located at the AAU Sefereselam campus, positioning
the company at the heart of its target market. This central location allows for efficient operations
and seamless coordination with campus authorities, local vendors, and students.
The proximity of the headquarters to the campuses enables Merkadorm to maintain a strong
presence within the college community. It also facilitates effective communication and
collaboration with campus administrators to ensure compliance with rules and regulations. By

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having a physical presence on campus, Merkadorm can actively engage with students, gather
feedback, and continuously improve its services.

Conclusion:
Merkadorm is a pioneering shopping and delivery company that focuses on providing a
sustainable and convenient solution for college students living in campuses. By utilizing bicycles
for deliveries, the company promotes eco-friendly transportation and aims to reduce carbon
emissions. Merkadorm's objective is to offer a diverse range of permitted products and services
that cater to the specific needs of college students. Through strategic partnerships with sellers
and retailers, a user-friendly website, and its headquarters at AAU Sefereselam campus,
Merkadorm strives to enhance the shopping experience for college students, making their lives
more convenient and sustainable.

THE PRODUCT AND SERVICES

A, Delivery services
Variety of delivery services are given at Merkadorm. We categorized them as follow:
✓ Meal deliveries from nearby restaurants
✓ Laundry roundtrip
✓ Equipment delivery
✓ Grocery delivery
B, Products
We will offer a range of products that are permitted by the campuses rule and regulations. Few of
them are listed below but it is not limited to this.
✓ Grocery ✓ Hygiene products
✓ Any kind of meal ✓ Stationery items
✓ Personal care equipment ✓ Books and newspapers
✓ Cosmetics ✓ Clothes and shoes
✓ Electronics and accessories ✓ Other specialized products

PLAN

Marketing plan

Situational Analysis:
The market for delivering products to university students at their dorms presents a significant
opportunity for MerkaDorm. The market size is substantial, with a growing number of students
residing on campuses across the country. According to recent statistics, the number of students

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living in dormitories has been steadily increasing, indicating a large potential customer base.
With more students seeking convenient solutions for their daily needs, the demand for efficient
and timely delivery services has never been higher.
Current trends in the market also favor the growth of businesses like MerkaDorm. Today's
students are accustomed to the convenience of online shopping and on-demand services. They
expect the same level of convenience when it comes to purchasing essential items. With the rise
of e-commerce and the increasing popularity of delivery services, students are actively seeking
innovative solutions that cater to their busy lifestyles.

Competitive Landscape:
To successfully navigate the competitive landscape, MerkaDorm must be aware of existing
players in the market and their strengths and weaknesses. While the market for delivering
products to university students at their dorms is relatively new, several competitors have already
emerged. But they are sole proprietors who work for themselves.
To enhance its competitive advantage, MerkaDorm can explore potential partnerships and
collaborations. Forming alliances with on-campus stores or university administration could
provide exclusive access to students and streamline the delivery process. By working closely
with these entities, MerkaDorm can gain valuable insights into student preferences and tailor its
product offerings accordingly.
Additionally, partnering with local suppliers and brands can help MerkaDorm offer a diverse
range of products to cater to students' needs. Collaborating with well-known brands can also
enhance the company's credibility and attract a wider customer base.
Furthermore, leveraging technology and data analytics can be a key differentiator for
MerkaDorm. Developing a robust platform that allows customers to easily customize their orders
and track deliveries in real-time can provide a seamless user experience. By leveraging data on
student preferences and purchasing behavior, MerkaDorm can offer personalized
recommendations and promotions, further enhancing customer satisfaction and loyalty.
In summary, while there are existing players in the market for delivering products to university
students at their dorms, MerkaDorm can differentiate itself through strategic partnerships, a user-
friendly platform, and a focus on customization. By understanding the strengths and weaknesses
of competitors and capitalizing on potential collaborations, MerkaDorm can establish a strong
foothold in the market and become the go-to solution for students' delivery needs.

Market Trends:
An analysis of market trends reveals several patterns that strongly support MerkaDorm's
business idea of delivering products to university students at their dorms. Firstly, there is a
growing demand for on-demand delivery services among consumers, particularly among the
younger demographic. This shift in consumer behavior can be attributed to the rapid
advancements in technology and the increasing expectation for convenience and efficiency. By
leveraging motor vehicles and bicycles for delivery, MerkaDorm can capitalize on this trend and
offer a fast and reliable service that aligns with students' expectations.

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Furthermore, the preference for customized product selection has become a prominent trend in
the market. Students today value personalization and the ability to tailor their shopping
experience to their individual needs and preferences. By providing a platform that allows
customers to choose the products they want to be delivered, MerkaDorm taps into this trend and
offers a level of flexibility that sets it apart from traditional delivery services. This not only
enhances customer satisfaction but also establishes a strong sense of ownership and control over
the shopping experience.
Moreover, the rise of e-commerce and online shopping has significantly influenced consumer
behavior, especially among the tech-savvy student population. Students increasingly rely on
digital platforms to fulfill their shopping needs, as it provides convenience, accessibility, and a
wide range of options. MerkaDorm's use of a platform to facilitate product selection and delivery
aligns perfectly with this trend, providing students with a seamless and intuitive shopping
experience that mirrors their online shopping habits.
In summary, the analysis of market trends highlights the increasing demand for on-demand
delivery services and the preference for customized product selection among university students.
By aligning its business model with these emerging patterns, MerkaDorm can position itself as a
market leader, catering to students' evolving needs and preferences. By leveraging motor
vehicles and bicycles for efficient delivery and providing a user-friendly platform for
personalized shopping, MerkaDorm can establish a strong presence in the market and meet the
growing demand for convenient and customized delivery services for university students

SWOT Analysis:
A SWOT analysis examines MerkaDorm's internal strengths and weaknesses as well as external
opportunities and threats. This analysis provides insights into the company's competitive position
and guides the development of effective marketing strategies.
SWOT Analysis of MerkaDorm's Business Idea:
STRENGTHS:

Convenience and Efficiency: MerkaDorm's business idea of delivering products to university

students at their dorms offers convenience and saves valuable time for students. By utilizing
motor vehicles and bicycles, MerkaDorm can ensure efficient and prompt deliveries, enhancing
customer satisfaction.
Customization and Personalization: MerkaDorm's platform, which allows customers to decide
the products they want to be delivered, provides a unique selling point. This customization aspect
caters to the individual preferences and needs of students, enhancing their overall experience and
fostering customer loyalty.
Technology Integration: MerkaDorm's use of a platform for order placement, tracking, and
personalized recommendations leverages technology to streamline operations and improve the
overall customer experience. This technological integration can give MerkaDorm a competitive
edge in the market.

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WEAKNESSES:

Limited Market Reach: MerkaDorm's business model focuses specifically on delivering

products to university students at their dorms. This limited target market may restrict the
company's growth potential compared to broader delivery services that cater to a wider consumer
base.
Operational Logistics: Managing an efficient fleet of motor vehicles and bicycles, along with
coordinating delivery routes, can pose operational challenges. Maintaining a reliable and timely
delivery service is crucial to MerkaDorm's success, and any disruptions or inefficiencies in
logistics may impact customer satisfaction.
OPPORTUNITIES:

Growing Student Population: The increasing number of students residing in dormitories

presents a significant opportunity for MerkaDorm. As the student population continues to grow,
so does the potential customer base for MerkaDorm's delivery services.
Partnership with in Campuses: Collaborating with universities or establishing partnerships
with on-campus stores and administration can provide exclusive access to students and enhance
MerkaDorm's credibility. These partnerships can also offer valuable insights into student
preferences and help tailor products and services to meet their specific needs.
THREATS:

Competitive Landscape: The market for delivering products to university students at their
dorms may attract competition from existing players or new entrants. MerkaDorm needs to stay
vigilant and differentiate itself through its unique value proposition, efficient delivery, and
customer-centric approach.
Regulatory and Legal Considerations: Adhering to local regulations and ensuring compliance
with licensing and permits for operating motor vehicles and bicycles is essential. Failure to
comply with legal requirements can lead to penalties and disruptions in service.
By capitalizing on its strengths, addressing weaknesses, leveraging opportunities, and mitigating
threats, MerkaDorm can position itself as a leading provider of convenient and personalized
delivery services for university students.

Target Market Analysis:

▪ Demographic Analysis:
MerkaDorm's business idea of delivering products to university students at their dorms targets a
specific demographic: college students. This demographic is characterized by young adults
between the ages of 18 and 27 who are pursuing higher education. College students often have
busy schedules, limited transportation options, and a desire for convenience. The platform that
allows customers to decide the products they want to be delivered aligns with the preferences of
tech-savvy students who are accustomed to personalized and on-demand services. This
demographic analysis highlights the potential of MerkaDorm's business idea, as it taps into the

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specific needs and preferences of university students, providing them with a convenient and
customized delivery service that enhances their overall experience.
▪ Psychographic Analysis:
MerkaDorm's psychographic analysis of university students reveals several key traits and
preferences. Firstly, college students often lead busy and hectic lives, juggling academics,
extracurricular activities, and social commitments. As a result, they value convenience and time-
saving solutions. MerkaDorm's delivery service directly addresses this need by bringing products
directly to their dorms, eliminating the need for students to make additional trips to stores.
Additionally, university students are a diverse group with varying preferences and lifestyles.
MerkaDorm's ability to cater to individual needs by offering a wide range of products ensures
that students can find items that align with their specific dietary restrictions, preferences, or
unique requirements.

Marketing Objectives:
MerkaDorm's business idea of delivering products for university students at their dorms comes
with specific marketing objectives to drive its success. Firstly, the company aims to acquire a
significant number of active users within a defined timeframe, such as reaching 500 active users
within the first six months of operation. This objective focuses on building a strong customer
base and establishing brand awareness among the target market.
Secondly, MerkaDorm aims to achieve a certain percentage of market share in the delivery
service industry for university students. For example, the goal might be to capture 65% of the
market share within the first year of operation. This objective emphasizes the company's
ambition to become a dominant player in the market and position itself as the go-to solution for
students' delivery needs.
Lastly, MerkaDorm strives to increase customer satisfaction ratings by delivering exceptional
service and meeting or exceeding customer expectations. The company may set a target of
achieving a customer satisfaction rating of 4.5 out of 5 or higher on customer feedback
platforms. This objective emphasizes the company's commitment to providing a seamless and
superior customer experience, which will ultimately drive customer loyalty and positive word-of-
mouth referrals.
By setting these marketing objectives, MerkaDorm aims to measure and track its progress,
focusing on acquiring a substantial user base, capturing market share, and ensuring high levels of
customer satisfaction. These objectives provide a clear direction for the company's marketing
efforts and help drive its growth in the competitive market for delivering products to university
students at their dorms.

Marketing Strategies:
▪ Product Strategy:
MerkaDorm's business idea revolves around delivering essential products to university students
at their dorms, ensuring convenience and quality. To achieve this, the company will carefully

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curate a range of essential items that meet the specific needs of students, including groceries,
toiletries, cleaning supplies, and other everyday necessities. By selecting a diverse range of
products, MerkaDorm aims to cater to the varied preferences and requirements of its target
market.
To ensure a steady supply of products, MerkaDorm will establish partnerships with local
suppliers and vendors. These partnerships will enable the company to access a wide variety of
high-quality products and maintain a reliable inventory. Partnering with local suppliers also
supports the local economy and fosters community engagement.
Efficient delivery is a key aspect of MerkaDorm's business model. The company plans to utilize
motor vehicles and bicycles for delivery, allowing for quick and reliable service. By optimizing
delivery routes and leveraging technology, MerkaDorm aims to ensure timely deliveries that
meet the expectations of time-pressed students.
▪ Pricing Strategy:
MerkaDorm, a business idea focused on delivering products to university students at their dorms,
aims to foster customer loyalty and encourage repeat purchases through various strategic
initiatives. One such initiative is the implementation of discounts and promotions. MerkaDorm
plans to offer attractive discounts and promotional offers on a regular basis to incentivize
students to choose their delivery service over competitors. These discounts could be tied to
specific products, seasonal promotions, or targeted campaigns, providing value and savings to
customers.
Another strategy MerkaDorm intends to employ is a subscription-based model. By offering
subscription plans, students can enjoy the convenience of regular deliveries of essential products,
such as groceries or personal care items, at a discounted rate. This model not only encourages
repeat purchases but also builds long-term relationships with customers, fostering loyalty and
ensuring a steady revenue stream for MerkaDorm.
Furthermore, MerkaDorm's platform will provide personalized recommendations based on
customers' preferences and purchase history. This tailored approach helps students discover new
products or offers that align with their needs, driving engagement and increasing the likelihood
of repeat purchases.
By combining discounts, promotions, and subscription-based models, MerkaDorm aims to create
an attractive value proposition for university students. These strategies not only encourage repeat
business but also enhance customer satisfaction and loyalty, positioning MerkaDorm as a
preferred and trusted provider of delivery services for dorm-dwelling students
▪ Distribution Strategy:
By mapping out delivery routes, optimizing logistics, and ensuring timely and reliable service,
MerkaDorm aims to provide a hassle-free and convenient experience for university students.
This commitment to efficient operations and customer satisfaction positions MerkaDorm as a

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trusted and dependable provider of product delivery services, catering specifically to the needs of
students in their dorms.
▪ Promotion Strategy:
MerkaDorm's promotion strategy for delivering products to university students at their dorms
involves a multi-faceted approach to increase brand awareness, engage with the target audience,
and drive customer acquisition. The company plans to leverage digital marketing channels, social
media platforms, and targeted advertising campaigns to reach the student population effectively.
MerkaDorm will invest in social media marketing to connect with students and generate buzz
around its services. Engaging content, including informative posts, student-centric promotions,
and user-generated content, will be shared to create a strong online presence and encourage
sharing and interaction.
In addition, influencer partnerships will be pursued to leverage the power of student influencers
and their networks. Collaborating with popular student influencers, vloggers, and campus
organizations will help MerkaDorm tap into their followers and gain credibility and trust among
the target market.
To incentivize students to try MerkaDorm's services, the company will launch promotional
campaigns offering discounts, referral programs, and limited time offers. These tactics aim to
create a sense of urgency and encourage students to take advantage of the benefits and savings
offered by MerkaDorm.
MerkaDorm will prioritize word-of-mouth marketing by ensuring exceptional customer
experiences and actively seeking and responding to customer feedback. Positive customer
reviews and testimonials will be highlighted on the company's website and social media
platforms to build trust and credibility.
Overall, MerkaDorm's promotion strategy focuses on a combination of digital marketing, social
media engagement, influencer partnerships, and attractive promotional offers. By employing
these strategies, MerkaDorm aims to establish its brand, expand its customer base, and position
itself as the go-to delivery service for university students, ultimately driving business growth and
success.

Implementation Plan
MerkaDorm's implementation plan for delivering products to university students at their dorms
encompasses several key steps to ensure a smooth and successful launch.
• the company will focus on developing a robust and user-friendly platform that allows
customers to easily browse and select the products they need for delivery. The platform
will incorporate features such as personalized recommendations, real-time tracking, and
secure payment options to enhance the overall customer experience.
• MerkaDorm will establish partnerships with local suppliers to ensure a diverse range of
high-quality products are available for delivery. Negotiating favorable terms and

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 agreements with suppliers will be a priority to secure reliable inventory and competitive
pricing.
• To optimize the delivery process, MerkaDorm will map out efficient routes and
implement logistics management systems. This will involve leveraging technology to
track and manage deliveries, minimizing delivery times, and maximizing efficiency. The
company will also hire skilled delivery personnel and provide them with comprehensive
training to ensure professional and reliable service.
• In terms of marketing and promotion, MerkaDorm will execute targeted digital marketing
campaigns, leveraging social media platforms, influencer partnerships, and targeted
advertising to reach and engage with the student demographic. The company will also
implement promotional offers, discounts, and referral programs to incentivize student
participation and drive customer acquisition.
• Additionally, MerkaDorm will prioritize customer feedback and implement a feedback
loop to continuously improve its services. This will involve actively seeking and
responding to customer input, monitoring customer satisfaction metrics, and making
necessary adjustments to enhance the overall customer experience.
By following this implementation plan, MerkaDorm aims to launch a successful and efficient
delivery service for university students. The combination of a user-friendly platform, strong
supplier partnerships, optimized logistics, effective marketing strategies, and a focus on customer
feedback will contribute to the overall success and growth of MerkaDorm

Budget Allocation:
MerkaDorm's budget allocation for delivering products to university students at their dorms will
be strategically distributed across several key areas to ensure effective operations and maximize
business growth.
A significant portion of the budget will be allocated to technology development and
infrastructure. This includes the development, maintenance, and enhancement of the platform
that allows customers to browse and select products. Investment in robust e-commerce
capabilities, user interface design, and secure payment systems will be prioritized to provide a
seamless and user-friendly experience.
Another important allocation will be towards marketing and advertising efforts. MerkaDorm will
allocate funds for digital marketing campaigns, social media advertising, influencer partnerships,
and targeted promotions to build brand awareness, drive customer acquisition, and engage with
the student demographic effectively. This includes the creation of engaging content, paid
advertising on relevant platforms, and collaborations with influencers and student organizations.
Logistics and delivery operations will also receive a significant portion of the budget. This
includes the acquisition and maintenance of motor vehicles and bicycles, fuel costs, insurance,
and any necessary equipment for efficient and reliable deliveries. Additionally, investments in
logistics management systems, route optimization software, and tracking technology will be
made to streamline operations and ensure timely service.

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Supplier partnerships and inventory management will be another key budget allocation area.
MerkaDorm will allocate funds to establish partnerships with local suppliers, negotiate favorable
terms, and ensure a consistent supply of high-quality products. This includes costs associated
with inventory management systems, warehouse space, and ongoing relationship management
with suppliers.
Lastly, a portion of the budget will be allocated to customer service and support. MerkaDorm
recognizes the importance of providing exceptional customer experiences, and thus, investments
will be made in customer service training, communication channels, and tools to address
inquiries, resolve issues, and gather valuable feedback from customers.
By strategically allocating the budget across these areas, MerkaDorm aims to create a solid
foundation for its operations, marketing, logistics, and customer service. This ensures efficient
and reliable delivery services while laying the groundwork for business growth and success.

Conclusion:
MerkaDorm's business idea centers around delivering products to university students at their
dorms, utilizing motor vehicles and bicycles for efficient transportation. The company's platform
empowers customers to choose the products they want to be delivered, ensuring a personalized
experience. The marketing plan focuses on increasing brand awareness, engaging with the target
audience, and driving customer acquisition through digital marketing, social media, influencer
partnerships, and attractive promotional offers. MerkaDorm emphasizes its commitment to
customer satisfaction, convenience, and continuous improvement. By delivering products
directly to students' dorms, MerkaDorm aims to provide a convenient and hassle-free experience,
establishing a strong market presence and becoming the preferred choice for university students.
Overall, this comprehensive marketing plan provides a roadmap for MerkaDorm to successfully
deliver products to university students and gain a competitive advantage in the market. By
implementing the strategies outlined in this plan, MerkaDorm can effectively target the dorm-
dwelling student population, build brand awareness, and drive customer loyalty.

Operational plan
MerkaDorm is a delivery service company aimed at providing convenient and efficient product
delivery to university students residing in dormitories. Our mission is to offer a wide range of
products and ensure timely and reliable delivery, enhancing the overall convenience and
satisfaction of our customers.

Service Offering:
a. Product Selection Platform: Develop a user-friendly online platform or mobile application
that allows customers to browse and select products from various categories, including groceries,
snacks, personal care items, and stationery.
b. Motor Vehicle and Bicycle Fleet: Establish a fleet of motor vehicles and bicycles for delivery
operations. Motor vehicles will be used for larger orders and longer distances, while bicycles will
be utilized for shorter distances and to navigate through crowded areas.

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Delivery Process:
a. Order Placement: Customers can place orders through the MerkaDorm platform, selecting
their desired products and providing delivery details such as dormitory name, room number, and
preferred delivery time slot.
b. Inventory Management: Maintain a well-organized inventory system to track product
availability, ensuring that popular items are always in stock. Regularly update inventory levels to
avoid stockouts and provide accurate information to customers on product availability.
c. Packing and Preparation: Once an order is received, dedicated staff members will gather the
selected items, ensuring accuracy and quality control. Products will be appropriately packed to
prevent damage during transportation.
d. Delivery Routing: Utilize advanced routing software to optimize delivery routes, considering
factors such as distance, traffic conditions, and delivery time preferences of customers. Efficient
route planning will minimize delivery time and maximize productivity.
e. Delivery Execution: Dispatch delivery personnel equipped with GPS-enabled devices to track
their locations and provide real-time updates to customers. Delivery staff will follow safety
protocols, adhere to traffic regulations, and ensure prompt and professional service.

Customer Experience:
a. Communication Channels: Establish effective communication channels such as phone
support, email, and live chat to address customer inquiries, provide order updates, and resolve
any issues that may arise during the delivery process.
b. Delivery Notifications: Implement an automated system to send delivery notifications to
customers, including order confirmation, estimated delivery time, and updates on the delivery
status. This will keep customers informed and reduce uncertainty.
c. Feedback and Reviews: Encourage customers to provide feedback and reviews through the
MerkaDorm platform. Actively monitor and respond to customer feedback to improve service
quality and address any concerns promptly.

Partnerships and Expansion:

a. Supplier Relationships: Develop partnerships with local suppliers, supermarkets, and
convenience stores to ensure a diverse range of products and maintain competitive pricing.
Negotiate favorable terms to ensure consistent availability and reliable delivery.
b. Dormitory Collaborations: Collaborate with university dormitory administrations to
establish seamless delivery processes and streamline access to dormitory premises. Establishing
strong relationships with dormitory staff will facilitate smooth operations and enhance customer
satisfaction.
c. Expansion Opportunities: Evaluate opportunities to expand the service to other universities
and educational institutions. Conduct market research to identify potential demand and tailor the
service to meet the specific needs of different student populations.

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Operational Efficiency:
a. Technology Integration: Leverage technology solutions such as route optimization software,
inventory management systems, and data analytics tools to streamline operations, improve
efficiency, and make data-driven decisions.
b. Staff Training and Development: Provide comprehensive training to delivery personnel on
customer service, product knowledge, and safe driving practices. Continuous training and
performance evaluation will ensure high-quality service and professionalism.
c. Continuous Improvement: Regularly analyze operational data, customer feedback, and
market trends to identify areas for improvement. Implement strategies to enhance efficiency,
minimize delivery errors, and optimize the overall customer experience.
By implementing this operational plan, MerkaDorm can establish a reliable and efficient delivery
service that caters to the needs of university students, providing convenience, a wide product
selection, and timely deliveries to their dormitories.

Organizational plan
Organizational Structure:
I. CEO: Oversees the overall operations, strategic planning, and business development of
MerkaDorm.

II. Operations Manager: Manages day-to-day operations, including delivery logistics,

inventory management, and staff coordination.

III. IT Manager: Handles the development and maintenance of the online platform, ensuring
its functionality and user experience.

IV. Sales and Marketing Manager: Leads marketing campaigns, customer acquisition
strategies, and partnerships with suppliers and dormitory administrations.

V. Human Resources Manager: Responsible for recruitment, training, and managing

employee relations within the organization.

VI. Delivery Staff: Responsible for product delivery, following assigned routes and
maintaining excellent customer service.

Responsibilities and Duties:

a. Founder/CEO:
✓ Develops the overall business strategy and sets goals for MerkaDorm.
✓ Oversees financial management, budgeting, and resource allocation.
✓ Builds partnerships with suppliers, dormitory administrations, and other stakeholders.
✓ Provides guidance and support to the management team.

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b. Operations Manager:
✓ Manages delivery logistics, including route planning, vehicle maintenance, and inventory
management.
✓ Coordinates with the IT Manager to ensure the platform aligns with operational
requirements.
✓ Monitors performance metrics, identifies areas for improvement, and implements
operational enhancements.
✓ Ensures compliance with safety regulations and industry standards.
c. IT Manager:
✓ Develops and maintains the online platform or mobile application for product selection
and ordering.
✓ Collaborates with the Operations Manager to integrate the platform with delivery
logistics and inventory management systems.
✓ Manages data security and privacy measures to protect customer information.
✓ Addresses technical issues and provides ongoing support for the platform.
d. Sales and Marketing Manager:
✓ Develops and executes marketing strategies to attract and retain customers.
✓ Identifies potential partnerships with suppliers, supermarkets, and convenience stores.
✓ Collaborates with the IT Manager to optimize the platform for customer engagement and
product visibility.
✓ Conducts market research to identify customer preferences and trends.
e. Human Resources Manager:
✓ Develops and implements recruitment strategies to attract qualified delivery staff.
✓ Conducts interviews, selects candidates, and facilitates the onboarding process.
✓ Designs and delivers training programs to ensure delivery staff are well-equipped to
provide excellent customer service.
✓ Manages employee relations, addresses concerns, and ensures compliance with
employment laws.

Manpower Plan:
a. Delivery Staff: Determine the number of delivery staff required based on projected order
volume and delivery frequency. Consider factors such as peak hours, semester schedules, and
projected growth. Allocate staff to different routes and shift schedules to ensure efficient
coverage.
b. Administrative Staff: Assess the need for administrative support, such as customer service
representatives, accounting personnel, and data entry staff. Determine the appropriate number of
personnel based on the scale of operations and administrative workload.

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Employment Laws:
A. Compliance: Ensure compliance with labor laws, employment contracts, and regulations
related to employee benefits, working hours, and safety standards.
B. Employee Contracts: Develop comprehensive employment contracts that outline job
responsibilities, terms of employment, compensation, and benefits.
C. Health and Safety: Implement measures to ensure the safety of delivery staff, such as
providing necessary safety equipment, training on safe driving practices, and adhering to traffic
regulations.
By following this organizational plan, MerkaDorm can establish an efficient and legally
compliant structure, ensuring smooth operations, effective manpower utilization, and a positive
employee experience.

Financial Plan

A) Projected sales of the first year

• Weight less than or equal to 3 Kg - 9.8 % of the product price

Weight > 3kg 12.8% of the price
Laundry (Round trip) any type of cloth -30 ETB

Month 1: 6,000 ETB

Month 2: 7,500 ETB
Month 3; 10,500ETB
Month 4: 14,000 ETB
Month 5: 18,000 ETB
Month 6; 15,000 ETB
Month 7; 17,000 ETB
Month 8; 20,000 ETB
Month 9 ; 20,000 ETB
Month 10; 21,000 ETB
Month 11; 24,000 ETB
Month 12; 27,000 ETB

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 30000

25000

20000

15000

10000

5000

0
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Projected sales

B) Projected income and expenditure statement

Year: 2024/25
Projected income statement:
Revenue:
• Delivering fast foods (like ertib, felafil…) from partner sellers- 73,000ETB
• Delivering clothes, cosmetics, and other products- 122,200 ETB
• From laundry (taking clothes to laundry and bringing them back to customers)-4800ETB
Total Revenue- 200,000ETB

Expenses
Bicycle price- 5 second-hand bicycles (each 7500) 37,500ETB
Technology development 30,000 ETB
Marketing and advertisement 12,000 ETB
Equipment and vehicle maintenance 12,000 ETB
Miscellaneous expenditure 5000 ETB
Total expenditure 96,500 ETB

Net Income (Total revenue- total expenditure) = 200, 000 ETB – 96,500 ETB=103,500 ETB

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 C) Projected break-even point (In deliveries)
Fixed cost- Vehicle maintenance and equipment=1000 ETB/month
Variable costs= 5 ETB/delivery
Average delivery fee= 10 ETB/delivery
Contribution margin /delivery=Delivery fee - variable cost per delivery= 5 ETB
BEP= monthly fixed cost/contribution margin per delivery= 1000/5 =200 delivery

D) Projected Ratio
Projected ratio= Annual Profit/Annual Revenue= 103,500/ 200,000 = 0.518 or 51.8%
*Based on our calculation, our projected profit ratio is approximately 51.8%. Which implies that
for every 1 ETB of revenue generated, our business is projected to make a profit of around 0.518
ETB.

CRITICAL RISK
While MerkaDorm's business idea to deliver products for university students at their dorms holds
great potential, there are critical risks that need to be considered.
• The potential for logistical challenges. Delivering products to various dormitory locations
within a university campus can be complex. Factors such as traffic congestion, limited
parking spaces, and restricted access to certain areas can pose challenges for delivery
vehicles. MerkaDorm must establish efficient routing systems, leverage technology for
real-time tracking and optimization, and continually evaluate and adjust operations to
ensure timely and reliable deliveries.
• Risk of customer adoption and retention. While MerkaDorm's platform allows customers
to choose the products they want, it is crucial to ensure that the platform is user-friendly,
intuitive, and offers a wide range of products that meet students' needs. Additionally,
maintaining high levels of customer satisfaction and addressing any concerns or issues
promptly is vital to retain customers and foster positive word-of-mouth.
• Regulatory compliance is a critical risk that MerkaDorm must navigate. Various
regulations, permits, and licenses may be required for operating delivery services,
especially when using motor vehicles. Ensuring compliance with local, state, and federal
regulations related to transportation, safety, and data privacy is crucial to avoid legal
issues and maintain a trustworthy brand image.
• The potential for fluctuating demand and seasonality. University campuses experience
periods of high and low student populations throughout the year, such as during breaks
and vacations. This fluctuation in student numbers can impact the demand for
MerkaDorm's services. During low-demand periods, the company may experience
reduced order volumes, which could impact revenue and profitability. MerkaDorm must

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 anticipate these fluctuations and develop strategies to mitigate the effects, such as
diversifying its target market or offering additional services during slower periods.
• The potential for delivery delays or disruptions. Factors such as inclement weather, road
closures, or unforeseen events can impact the ability to make timely deliveries.
MerkaDorm must have contingency plans in place to handle such situations, ensuring
alternate routes, communication channels, and backup delivery methods to minimize
disruptions and maintain reliable service.
• Risk associated with customer satisfaction and quality control. As MerkaDorm relies on
suppliers for the products it delivers, there is a possibility of receiving subpar or incorrect
items. Ensuring consistent product quality, accuracy, and reliability is crucial to maintain
customer satisfaction. MerkaDorm must carefully select and manage supplier
relationships, implement quality control measures, and have effective mechanisms in
place to address any customer concerns or issues promptly.
• Additionally, data security and privacy are significant risks in the digital age.
MerkaDorm's platform collects and stores customer data, including personal information
and payment details. Protecting this sensitive information from cyber threats, data
breaches, or unauthorized access is paramount. The company must invest in robust
cybersecurity measures, implement encryption protocols, and comply with data
protection regulations to safeguard customer information and maintain trust.
To mitigate these risks, MerkaDorm must conduct thorough market research, develop a strong
value proposition, invest in robust technology and operational infrastructure, and implement
effective marketing and customer retention strategies. By proactively addressing these critical
risks, MerkaDorm can position itself for long-term success in the competitive market of
delivering products to university students at their dorms.

EXIT STRATEGY
As MerkaDorm embarks on its business idea of delivering products to university students at their
dorms, it is essential to consider an exit strategy in the long term. While the goal is to build a
successful and sustainable business, circumstances may arise that necessitate an exit or
transition.
One possible exit strategy for MerkaDorm could be a strategic acquisition. As the
company establishes its brand, customer base, and operational infrastructure, it may
attract the attention of larger companies in the delivery or e-commerce industry. These
companies may see the value in acquiring MerkaDorm to enhance their own capabilities
or expand their market reach. An acquisition can provide an opportunity for
MerkaDorm's founders and investors to realize their financial objectives while leveraging
the resources and expertise of the acquiring company for further growth.
Another exit strategy could involve an initial public offering (IPO). If MerkaDorm
achieves significant growth, establishes a strong market presence, and demonstrates a
solid financial track record, it may consider going public. An IPO can provide access to
additional capital for expansion, increased brand visibility, and liquidity for shareholders.

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 However, going public involves rigorous regulatory compliance, transparency, and
ongoing reporting obligations.
Alternatively, MerkaDorm's founders may choose to sell their ownership stakes to a
private equity firm or venture capitalists. This can provide an opportunity to secure
additional funding for growth or facilitate a transition of leadership within the company.
Private equity firms or venture capitalists bring expertise, industry connections, and
financial resources that can support MerkaDorm's continued expansion and development.
It is important for MerkaDorm's founders and stakeholders to carefully evaluate their objectives,
market conditions, and potential opportunities when considering an exit strategy. Seeking
professional advice from legal and financial experts can help navigate the complexities of an exit
and ensure the best outcome for all parties involved. Having a well-defined exit strategy in place
demonstrates foresight and prudent planning, even as MerkaDorm focuses on its initial growth
and success in delivering products to university students at their dorms.

APPENDIX
A. MerkaDorm: Business Idea Overview
MerkaDorm is a proposed business venture aimed at delivering products to university students
directly at their dorms. The company's primary focus is to provide convenience and a seamless
shopping experience for students by offering a wide range of products delivered right to their
doorstep. The name "MerkaDorm" reflects the combination of "Merka" (derived from
"Merkato") and "Dorm" (short for "dormitory"), emphasizing the company's core value
proposition.
B. Delivery Methodology
Motor Vehicles: MerkaDorm plans to utilize a fleet of motor vehicles for efficient and timely
product deliveries. These vehicles will be equipped with the necessary infrastructure to securely
transport a variety of goods while adhering to safety and regulatory requirements.
Bicycles: In addition to motor vehicles, MerkaDorm intends to incorporate bicycles as an eco-
friendly and agile delivery option. Bicycles will be used for shorter distance deliveries, allowing
for swift navigation through university campuses and congested areas.
C. Customer-Centric Platform
MerkaDorm's business model revolves around a user-friendly and intuitive platform that
empowers customers to decide the products they want delivered to their dorms. The platform will
provide a seamless browsing experience, secure payment options, and personalized product
recommendations. It will also feature order tracking capabilities, enabling customers to monitor
the progress of their deliveries in real-time.

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