Good 2 Go: Food Delivery ServiceGood 2 Go: Food Delivery Service

Audrie Bielskis, Adam Willis, Mike Audrie Bielskis, Adam Willis, Mike Butler, Sirah CamaraButler, Sirah Camara

Executive SummaryExecutive SummaryGood 2 Go is an independent, online food delivery service. This business would be Good 2 Go is an independent, online food delivery service. This business would be based in Adrian, MI and would deliver food from various restaurants to customers in based in Adrian, MI and would deliver food from various restaurants to customers in the Adrian area. Customers would go online and order food through our website the Adrian area. Customers would go online and order food through our website from area businesses such as Taco Bell, Fricker’s, Alpha’s Coney Island, Applebee’s, from area businesses such as Taco Bell, Fricker’s, Alpha’s Coney Island, Applebee’s, etc. We would then delivery this food to our customers for a small fee and tip for the etc. We would then delivery this food to our customers for a small fee and tip for the driver. Our main focus would be on evening/late night delivery, especially to college driver. Our main focus would be on evening/late night delivery, especially to college campuses. One of our objectives is to establish a presence in Adrian in college areas campuses. One of our objectives is to establish a presence in Adrian in college areas in 2014 and agreements with at least 25% of Adrian’s food establishments. We in 2014 and agreements with at least 25% of Adrian’s food establishments. We would also like have at least 70% of Adrian College and Siena Heights University would also like have at least 70% of Adrian College and Siena Heights University students report they have used our service at least once in a survey at the end of students report they have used our service at least once in a survey at the end of 2015. 2015. We feel our company Good 2 Go can excel in this market mainly because of this We feel our company Good 2 Go can excel in this market mainly because of this growing online food ordering trend and large number of college students in the area.growing online food ordering trend and large number of college students in the area. We will compete with companies such as GrubHub, Seamless, Jimmy Johns and other We will compete with companies such as GrubHub, Seamless, Jimmy Johns and other food establishments that deliver. However, our company is at an advantage as none food establishments that deliver. However, our company is at an advantage as none of our main independent food delivery competitors, such as GrubHub, have entered of our main independent food delivery competitors, such as GrubHub, have entered the market of Adrian yet. The only competition we may face in Adrian is pizza the market of Adrian yet. The only competition we may face in Adrian is pizza delivery and other restaurants that delivery, but this competition will be fairly delivery and other restaurants that delivery, but this competition will be fairly minimal as our business is quite unique from these. minimal as our business is quite unique from these.

Market Trends/GrowthMarket Trends/Growth

• According to a study by the National Restaurant According to a study by the National Restaurant Association, 39% of consumers say they would Association, 39% of consumers say they would use electronic ordering to buy meals if it were use electronic ordering to buy meals if it were availableavailable

• This same study reported that 36% of Americans This same study reported that 36% of Americans have placed an order online, with 46% saying have placed an order online, with 46% saying they would order via a smartphone app if that they would order via a smartphone app if that option was offeredoption was offered

• The Online Food Delivery Market Grows at a Rate The Online Food Delivery Market Grows at a Rate of 12% Annuallyof 12% Annually

U.S Consumer Trend Survey from Statisa.com: U.S Consumer Trend Survey from Statisa.com: In the next six months, will you spend more or In the next six months, will you spend more or

less when ordering food for takeout or less when ordering food for takeout or delivery? delivery?

CompetitionCompetition

GrubHub GrubHub

SeamlessSeamless

ChowNowChowNow

Campus SpecialCampus Special

Delivery.comDelivery.com

Pizza DeliveryPizza Delivery

Jimmy John’s Delivery, etc.Jimmy John’s Delivery, etc.

StrengthsStrengths• First in the area to provide this serviceFirst in the area to provide this service• Customers can have a wide variety of food deliveredCustomers can have a wide variety of food delivered• We would deliver food mainly during late night, which is We would deliver food mainly during late night, which is

when college students are least satisfied with on campus when college students are least satisfied with on campus dining selectionsdining selections

• Employees would probably be easy to find because there Employees would probably be easy to find because there are so many students in the area in need of jobsare so many students in the area in need of jobs

• Similar businesses have already proven successful in other Similar businesses have already proven successful in other college towns such as East Lansing and Ann Arborcollege towns such as East Lansing and Ann Arbor

• Saves people with busy schedules time and gas moneySaves people with busy schedules time and gas money• We save area restaurants the trouble of making their own We save area restaurants the trouble of making their own

online ordering websites and/or applicationsonline ordering websites and/or applications

WeaknessesWeaknesses• Costs more than just driving to get it yourselfCosts more than just driving to get it yourself• Making initial profits will be difficult because Making initial profits will be difficult because

only a few dollars are made each deliveryonly a few dollars are made each delivery

OpportunitiesOpportunities• Niche.com campus dining rating of Siena Heights University Niche.com campus dining rating of Siena Heights University

is C and of Adrian College is C+. Late night options have is C and of Adrian College is C+. Late night options have poorest rating for both collegespoorest rating for both colleges

• Four colleges in Adrian (Siena, Adrian, Fiser’s College of Four colleges in Adrian (Siena, Adrian, Fiser’s College of Cosmetology, JCC)Cosmetology, JCC)

• College students are 87% more likely to order late-night College students are 87% more likely to order late-night meals than the average personmeals than the average person

• On average, a college student is 28% less likely to order a On average, a college student is 28% less likely to order a healthy meal when compared to the average personhealthy meal when compared to the average person

• 90 Restaurants in Adrian, MI90 Restaurants in Adrian, MI• Owners who offer online ordering experience a rise in Owners who offer online ordering experience a rise in

order frequency, mostly for take-out mealsorder frequency, mostly for take-out meals• Most restaurants don’t have mobile applicationsMost restaurants don’t have mobile applications• Cornell University reports that 40% of all adults have placed Cornell University reports that 40% of all adults have placed

restaurant orders through a form of online softwarerestaurant orders through a form of online software

ThreatsThreats

• CompetitionCompetition• College students spend 10% less than the College students spend 10% less than the

average dineraverage diner• Adrian is a fairly small market, there’s not Adrian is a fairly small market, there’s not

much room for expansionmuch room for expansion• Most cities where this type of service has Most cities where this type of service has

proven successful are much bigger and have proven successful are much bigger and have much larger colleges/universitiesmuch larger colleges/universities

Marketing ObjectivesMarketing Objectives

• Objectives: Objectives: 1.1. To establish a presence in Adrian, especially in To establish a presence in Adrian, especially in

the area colleges, during 2014. Make delivery the area colleges, during 2014. Make delivery agreement with at least 25% of Adrian’s food agreement with at least 25% of Adrian’s food establishments.establishments.

2.2. In survey given at end of 2015, have at least 70% In survey given at end of 2015, have at least 70% of Adrian College and Siena Heights University of Adrian College and Siena Heights University students report they have used our service at students report they have used our service at least once.least once.

Target Market Potential/Sales ForecastTarget Market Potential/Sales Forecast

• Adrian College Full-time enrollment: 1,556Adrian College Full-time enrollment: 1,556• SHU Full-Time enrollment: 1,032SHU Full-Time enrollment: 1,032• Percentage of family households in Adrian: 57.9%Percentage of family households in Adrian: 57.9%• 1,532 people in college/university student 1,532 people in college/university student

housing in 2010 in Adrianhousing in 2010 in Adrian• Number of full-service restaurants in Adrian: 69Number of full-service restaurants in Adrian: 69• In the U.S., GrubHub turns over nearly US$300 In the U.S., GrubHub turns over nearly US$300

million each yearmillion each year• The income potential is $25,000 and upThe income potential is $25,000 and up• The average customer orders $46 worth of food The average customer orders $46 worth of food

every month at restaurants using ChowNowevery month at restaurants using ChowNow

Marketing MixMarketing Mix• Product Strategy: Product Strategy: – Target: Working couples, singles, busy families, employees Target: Working couples, singles, busy families, employees

working late, college campusesworking late, college campuses(main target market)(main target market)

– Focus on evening/late night deliveryFocus on evening/late night delivery– Deliver foods that would not normally be deliveredDeliver foods that would not normally be delivered

• Promotion:Promotion:– Place ads on radio and cable television stations, in local Place ads on radio and cable television stations, in local

newspapers, college newspapers, telephone directories, newspapers, college newspapers, telephone directories, and local parent’s publicationsand local parent’s publications

– Print and distribute lists of the restaurants you deliver for Print and distribute lists of the restaurants you deliver for in a direct mail campaign to organizations, hotels, college in a direct mail campaign to organizations, hotels, college campuses, businesses and area residentscampuses, businesses and area residents

– Referrals from restaurants whose food you serveReferrals from restaurants whose food you serve

Marketing Mix ContinuedMarketing Mix Continued• Pricing:Pricing:– $10 order minimum$10 order minimum– $3 to $4 delivery fee depending on distance$3 to $4 delivery fee depending on distance– Gratuity for driverGratuity for driver– Pricing is competition based. This is about the Pricing is competition based. This is about the

same price competitors chargesame price competitors charge

• Distribution/Place: Distribution/Place: – Located in downtown Adrian and would deliver Located in downtown Adrian and would deliver

anywhere in city of Adriananywhere in city of Adrian– Hourly delivery drivers using their own carsHourly delivery drivers using their own cars

Implementation/ConclusionImplementation/ConclusionWe would need to have someone create a user-friendly, We would need to have someone create a user-friendly,

simple website and mobile phone application. We could simple website and mobile phone application. We could probably find a computer programming student who probably find a computer programming student who could do this for a good price. We can also hire an art could do this for a good price. We can also hire an art student to create a logo for a fair price. We would then student to create a logo for a fair price. We would then need to speak with the restaurant owners in the area to need to speak with the restaurant owners in the area to explain/promote our business and to try to come to explain/promote our business and to try to come to agreements with those who are interested. We would agreements with those who are interested. We would not publish our website/app until we had finalized not publish our website/app until we had finalized agreements with at least 4 restaurants, but we would agreements with at least 4 restaurants, but we would like to have it already designed so we can show like to have it already designed so we can show potential business partners how simple and easy it is. potential business partners how simple and easy it is.

Implementation/Conclusion Cont.Implementation/Conclusion Cont.

We would aggressively promote the business with flyers, ads, We would aggressively promote the business with flyers, ads, and referrals as discussed in the promotions section of this and referrals as discussed in the promotions section of this paper. Customers would go to our website and select their paper. Customers would go to our website and select their restaurant of choice from a dropdown list. They would then restaurant of choice from a dropdown list. They would then put a check in the box next to the food they would like and put a check in the box next to the food they would like and write any special instructions in a blank box at the bottom of write any special instructions in a blank box at the bottom of the page. Finally, they would enter their payment information the page. Finally, they would enter their payment information and the address and a phone number for where the food is and the address and a phone number for where the food is being delivered to. To avoid taking out a larger loan than being delivered to. To avoid taking out a larger loan than necessary, one of us would make the deliveries ourselves until necessary, one of us would make the deliveries ourselves until we had enough profits to hire help. We would need to take we had enough profits to hire help. We would need to take out a loan for start-up costs, but we will try to keep this out a loan for start-up costs, but we will try to keep this minimal.minimal.