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Click and Pick - Online Android Application - Business Plan Example

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From the paper "Click and Pick - Online Android Application" it is clear that International Coffee Organisation for the year 2014 confirms that over a period of time, United Kingdom's coffee market is very much changed. It takes a new shape and develops by changing customers' taste in tea…
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Extract of sample "Click and Pick - Online Android Application"

Click and Pick AFFILIATION: Table of Contents Executive Summary Click n Pick 2 Mission 2 Why this business? 3 Target Market 3 How will you deal with competition and what is our market strategy? 4 SWOT analysis 5 PESTLE analysis 5 Marketing Mix 6 Financial Forecasts and Business Operations 7 Financial Forecast 10 References 13 List of Tables Table 1 10 Table 2 12 Table 3 12 Executive Summary Click n Pick is an online android application based business which actually is targeting all those coffee lovers who are using smart phones. The basic role of this business is that the software available in the markets guides you about the location of coffee shops but did not make any kind of booking which confirms that you just have to pick it without waiting in the line after reaching coffee shops. Click n Pick understands the worth of your time and provides you the solution of this problem through an android application installed on your smart phone. Just go to the application which through GPS locates you and provide a list of nearest coffee shops of five big coffee chains. Now you have to decide from which shop you have to purchase coffee and at which time. Payment is made at the time of order booking. However, no charges are deducted if the order is canceled at least 30 minutes before agreed time. Click n Pick The world turned into a digital village in which cell phones are very prominent. Conventional telecom infrastructure is outdated now because now communication is not just the only function these devices are performing. This open door to new business opportunities for an entrepreneur to develop such application which run on smart phones and provide further ease to the user. Astonishingly this development brings large business opportunities in which large cellular companies are just a piece of whole cake which attracts new lot to come up and bring something new. Click n Pick is one step further in this case in which a new android app is developed which help to facilitate all business professionals, academics, researchers, students etc having smart phones. Now they just select online through their cell when they want coffee and from which of the nearest five major coffee chains in United Kingdom. Apps through GPS get your location coordinates and provide you a list of the nearest five coffee points. This android application can provide you facility to online purchase before time from Starbucks, Costa, Caffe Nero, Preta Manger. You purchase online by selecting time on which you will be going to pick it up and not have to wait in line at peak hours. Most important thing in all this process is to facilitate the client. As it is online business so payment is made through credit card at the time of order however if you as a client want to cancel the order then it is free of charge. No charges will be deducted if the cancelation is made at least Thirty (30) minutes before agreed time otherwise client has to pay full charges. Mission The mission of our business is "60% of Coffee sales are by Click n Pick till 2020". Why this business? The answer to this question is increasing demand for coffee in United Kingdom over the period of time. According to the report of Mintal (2014) coffee is now the nation’s favourite hot drink as tea. Previously tea had an edge over coffee. About 80 percent of English people use coffee (Mintel, 2014).There are more than 50% of the people who use to take more than two cup coffee per day. According to report of International Coffee Organisation for year 2014 confirmed increasing demand of coffee over the period of time. Along with that, new more organic types of coffee are researched which are going to be launched in the market in near future (International Coffee Organisation, 2014). International Coffee Organisation for year 2014 also confirms that over the period of time, United Kingdoms coffee market is very much changed. It takes a new shape and develops by changing customers taste of tea. The point raised here is why we are using android app platform for doing this business. The reason behind this is its cost effectiveness. It reduces the burden of initial boat strapping of financial investment needs to start a business. Android as open source provide us help to customise the application very easily. Target Market One of the most important questions before predicting about the success and failure of any business is to have a clear idea about target customers, what are their likes and dislikes. How they are considered to be in our target market and how we are going to satisfy them. In case of Click n Pick our target customers are all those students, professionals, researchers, white collar working class people, transporters and academics which are main targeted customers of coffee chains while one more necessary condition for considering in a target market is having a smart phone to use app. About 80 percent of English people use coffee and there are more than 50% of the people who use to take more than two cup coffee per day (Mintel, 2014). How will you deal with competition and what is our market strategy? The major strength of this application is online ordering facility which is not yet introduced in the coffee market. As a first mover advantage we will develop sound association with the major five coffee chains all over the United Kingdom and extend our business by taking other small and medium enterprises that operate under the umbrella of Click n Pick. We also offer discount on our service charges to regular customer however we diversify our business into fast food industry as well because initially it will be operating in London for 2 years and then it will be extended in the entire United Kingdom by the end of 4th year of its operation (Walsh, 2011). We will issue a coupon to our loyal customers on the basis of which they can purchase anything up to the price of a coupon. The purchases are delivered to customers by Click n Picks official along with company printed promotional stuff. In order to retain a warm attention of customers, company collects information about customer’s birthday and sends a birthdays card to his or her. All the social media places like Facebook, twitter and Instagram are used in order to inform a customer about this new business. Alongwith, the website of Click n Pick is developed and its links are shared on social media as well as on the websites of the five coffee chains (Thomas, 2014). SWOT analysis The strength includes the quality and innovation the Click n Pick is offering, not only as a guide to the coffee locations but a purchasing tool that helps you to enjoy your favourite coffee; just a click away. The flexibility of prices does not demand extra treats and heavy catch; instead you can even cancel your order within the required time. The weaknesses are minimal because if the competitors do not offer the same value added services like we are going to offer. As it is an android app, so the chances of poor location is not at all a problem which could be otherwise, that is one of the biggest advantage of the platform; World Wide Web. The opportunity includes that it is faster, better and easier. It is innovative with the new service that reduces the cost to travel to the location first, or even searching for the desired coffee shop. The threats may include a new competitor in the market but the services we are going to offer are innovative and newer in sense, so this shouldn’t be a problem. Perhaps, we are creating this app to create new market demand, hence new customers and improved profitability. The change in technology could also be a threat but as we know the “www” is a big market platform and technologies and businesses are trying to move completely towards this shift, so this is not a problem for this app, at all. PESTLE analysis The political influence causes the change in the Tax policy, Regulations and Infrastructure questions that in long term will affect Click n Pick. As modifications and growth is a part of the business, so as the app is developed for more than one location and country, the political influence changes accordingly. But, the services are the same, as we know that the kind of service we are offering is way much innovative and catchy as compared to other less adaptable Android apps. The Economic aspect includes the inflation which is always a bad omen for the businesses and an uncertainty we neglect. The business cycle for effective success should be continuous and adaptable with the relative market. The labour costs are minimum because of the business platform that we are using, World Wide Web. The social aspects favours the app as in the developed countries like UK, Europe and USA the coffee is always in high demands and a very “likeable” drink. The level of education and the cultural norms are the social aspects and they also favour the use of this app, especially in UK. It is the emerging app with increased way of communication between the customers and the coffee shops, which is analysed after careful research and development efforts in the market. As this is the app that requires the customer to search and order the favorited coffee, so the legal influence and law is not that much of a concern, although with any kind of lawsuit and violations in marketing can be dealt accordingly with the local laws of the area. The ecological aspects includes the available transport energy systems and their availability for the customers, that creates the driving force to use this app. Better the vehicles, more the transport system availability to the customers, better the chances of success of this app. The climate variations and sudden fluctuations such as heavy rainfall, thunder storms, tornadoes, high speed winds etc are the factors that may affect the app usability. Marketing Mix The marketing mix includes the product or services that satisfy the customer’s demands and needs, and this app is the best example for the Android users. The price is cost effective and in line with the demands of the customers. Coffee is their favourite drink, so let’s find a place nearby, not only this; let’s order it with a single click. The promotion includes the marketer’s strategy to communicate information about the app for the customers. The best way is with the help of Internet media. Wherever the most successful coffee shops are, the app is best use for navigating and ordering the coffee. This app is the aroma of coffee beans emerging from your Android sets/phones as you login to this app; Go grab it. Financial Forecasts and Business Operations The Cost associated with establishing this business is about 50,000/- pounds. This amount is raised for three years period at the interest rate of 8% per annum. It makes total liability on business is 62985.6/- pounds. The business will operate according to monthly deposit principle and interest payments; and on the regular basis from the second month. Monthly loan payment (Interest amount + Principle amount) is 1749.6/- pounds but business will deposit 2000/- pounds per month regularly to be relaxed from loan payment in crisis situation by prepaid instalments. Although this is a huge amount for a first time start up but this initial cost is the first and only hurdle after that business generate its revenue in a very quick way and soon after one month business started earning profit. The most powerful feature of this business is its quick payback period which is less than one year. The tax rate on profit is straight 7% per year is charged in prediction as worst-case scenario rate. Revenues of the business are generated by charging 1/- pounds to the customer for the provision of services. Our business actually deducts the cost of the coffee order with 1pound charges per order. The Cost of coffee is paid to the coffee shop when they provide coffee to the customer in time. According to International Coffee Organisation for year 2014, more than fifty percent people use to drink coffee twice a day on regular basis. On that basis, we assume out of these at least thirty thousands of these order needs to be achieved in first month of business. The thirty thousand orders are minimum required level which means one thousand orders per month. Revenue in the middle of the year faces initially downturn because of weather conditions. According to the International Coffee Organisation for year 2013 it is clearly mention that people in hot days avoid coffee previously but now a days, taste are changed but still we forecasted all the financial data on reporting of International Coffee Organisation for year 2013 and 2014. Actually the composition of total cost includes, purchase, employee wages, rent of building, electricity charges, transport and parking charges, telephone charges ,loan and interest payment with owners drawings, tax charged and finally the total cost. Now coming toward purchases initial purchase order include the cost of android application development charges. Total charges of android application are 30,000/- pounds which we have to pay the software developer in three monthly payments. First is of 20,000/- pounds and after that 5000/- pounds each next months. However, tables confirm increasing purchase expense over the period of months because it includes the purchase of stationery, office furniture, office equipment etc. Initially, we are going to select two workers who work on shift for eight hours then he or she is replaced by another worker. After five months, we are going to hire college students as part-time workers as per growing business need. We made a rent agreement in a small house of my friends at rent agreed amount of 8000/- pounds per month. In the start, electricity charges are few but as the new office equipment are purchased from computers, printers the expenses increases so we put aside a good amount of money aside. Transport and parking expenses also include those expenses which we have bear while visiting coffee chains in case of any problem or delivering gifts purchased on coupon to the customer. Telephone expenses are the main expense of the business because whenever customer orders coffee then a query is generated in our system as well as in coffee outlet. Our employee called coffee chain to get acknowledgment of order booking and called again once again to remind before 30 minutes to avoid any problem with clients. Now in case customer cancels the order at least before 30 minutes of agreed time than an employee will communicate it to coffee chain official and get the acknowledgment. Customer is refunded the entire amount charged without any deduction. Again it is important to make it clear that after 30 minutes charges deducted from the customer on order booking is not refunded. The Loan payment and interest payment actual portion of the monthly payment of bank loan of 50,000/- pounds is for three year period at 8% interest rate. Initially, there is no owners drawing for the year because all the profits are reinvested to develop the business strength and also to bring improvement in the android application by proper updating and protection from cybercrime. All these costs are included in purchase category in future years. Tax rates are applied to revenue at 7% per annum at straight to avoid confusion in forecasting. However, the tax amount is deducted from loan payment and interest payment to third year because after that business has no loan and interest payments. Financial Forecast M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12  SALES                         Sales by value 20000 22000 28000 31000 34000 30000 27000 23000 35000 40000 62000 78000                           Receipts Sales-Cash 17000 19000 24000 26000 29000 27000 22000 20000 30000 35000 54000 65000 Sale-Debtors 3000 4000 4000 5000 5000 3000 5000 3000 5000 5000 8000 13000 Capital Introduced 6000 5000 4000 4000 5000 3000 3000 4000 3000 5000 6000 8000 Grant & Loans 2000 3000 3300 2000 2000 4000 3000 3000 2000 6000 2000 5000 VAT 2000 2000 1000 2930 2923 3013.85 3452.62 3208.34 3170.84 5122.09 2958.72 3846.33 Total (A) 30000 33000 36300 39930 43923 40013.85 36452.62 33208.34 43170.84 56122.09 72958.72 94846.33 Cost 36500 28500 24000 27200 30400 34100 40000 30000 33200 36400 39600 43300 Profit -6500 4500 12300 12730 13523 5913.853 -3547.38 3208.337 9970.838 19722.09 33358.72 51546.33                           Payments                         Purchase 20000 10000 5000 8200 11400 14600 20000 10000 13200 16400 19600 22800 Employee Wages 3000 3000 3000 3000 3000 3500 3500 3500 3500 3500 3500 3500 Rent 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 Advertisement 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 Electricity 1500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 Transport & Parking 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 Telephone 3000 3000 3500 3500 3500 3500 4000 4000 4000 4000 4000 4500 Loan Payment Interest Payment   2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 Drawings 0 0 0 0 0 0 0 0 0 0 0 0 Tax (7% per Year) -3791.645 624.985 5174.959 5425.791 5888.372 1449.728 -4069.29 -128.481 3816.289 9504.486 17459.14 28068.52 Total Cost 36500 30500 26000 29200 32400 36100 42000 32000 35200 38400 41600 45300 Balances Cash INC (dec) (A-B) 65000 2500 9700 10730 11523 3913.85 5547.38 1208.34 7970.84 17722.09 31358.72 49546.33 Table 1 M13 M14 M15 M16 M17 M18 M19 M20 M21 M22 M23 M24  SALES                        Sale by Value 80000  100000  140000  110000  100000  95000  70000  160000  300000  560000  1050000  1800000 Receipts Sale-Cash 65000 85000 105000 90000 80000 75000 58000 115000 250000 500000 980000 1700000 Sale-Debtors 15000 15000 35000 20000 20000 20000 12000 45000 50000 60000 70000 100000 Capital Introduced 20000 30000 40000 40000 40000 35000 40000 40000 50000 60000 55000 80000 Grants & Loans 16000 25000 20000 25000 15000 15000 20000 25000 35000 40000 30000 50000 VAT 7300.2 5290.3 8377.4 12539.7 13785.7 6907.1 6716.4 7417.9 10110.4 11687.7 6869 11177 Total 123300.2 160290.3 208377.4 187539.7 168785.7 151907.1 136716.4 232417.9 395110.4 671687.7 1141869 1941177 Cost 59000 102200 55400 54000 54000 61200 64400 67600 270800 574000 577200 580400 Profit 64300.23 58090.3 152977.4 133539.7 114785.7 90707.12 72316.41 164817.9 124310.4 97687.7 564669.1 1360777                           Payments                         Purchase 26000 29200 32400 30000 30000 33200 36400 39600 42800 46000 49200 52400 Employee Wages 3500 3500 3500 3500 3500 5000 5000 5000 5000 5000 5000 5000 Rent 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 Advertisement 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 Electricity 4500 4500 4500 5500 5500 5500 5500 5500 5500 5500 5500 5500 Transport & Parking 1500 1500 1500 1500 1500 2000 2000 2000 2000 2000 2000 2000 Telephone 5000 5000 5000 5000 5000 7000 7000 7000 7000 7000 7000 7000 Loan Payment Interest Payment 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 Drawings 10000 50000 0 0 0 0 0 0 200000 500000 500000 500000 Tax (7% per Year) 35508.25 31885.81 87236.3 75897.68 64957.93 50912.18 40184.33 94143.22 70513.99 54984.16 327388.4 791782.3 Total Cost 61000 104200 57400 56000 56000 63200 66400 69600 272800 576000 579200 582400 Balances Cash INC (dec) (A-B) 62300.2 56090.3 150977.4 131539.7 112785.7 88707.1 70316.4 162817.9 122310.4 95687.7 562669 1358777 Table 2 Income Year3 Year4 Year5                 Revenue 3008825 4663679 7228702 Cost 2394000 3110000 3882000 Profit 614825 1553679 3346702         Payments       Purchase 480000 600000 720000 Employee Wages 78000 78000 198000 Rent 114000 114000 234000 Electricity 78000 114000 114000 Transport & Parking 36000 60000 72000 Telephone 108000 144000 144000 Loan Payment 12000     Interest Payment 12000     Drawings 1500000 2000000 2400000 Tax (7%) 334645.9 906307.5 1952232 Total Cost 2418000 3110000 3882000 Table 3 References . al, L.M.e., 2014. Research and Development of Mobile Application for Android Platform. International Journal of Multimedia and Ubiquitous Engineering, pp.187-98. GFK, n.d. PRESS RELEASES. [Online] Available at: http://www.gfk.com/uk/news-and-events/press-room/press-releases/pages/telecommunication-ifa-2014-english.aspx [Accessed 6th April 2015]. Independent, T., 2011. Food and Drink. [Online] Available at: http://www.independent.co.uk/life-style/food-and-drink/features/britains-caffeine-boom-why-cant-we-wake-up-without-smelling-the-coffee-2342104.html [Accessed 6th April 2015]. Kind, C., 2011. News. [Online] Available at: http://coffeekind.com/reading-room/news/british-specialty-coffee-craze-too-much-one-coffee-drinker [Accessed 6th April 2015]. Mintel, 2013. Coffee-Uk-August 2013. [Online] Available at: http://store.mintel.com/coffee-uk-august-2013?cookie_test=true [Accessed 6th April 2015]. Mintel, 2014. Store. [Online] Available at: http://store.mintel.com/C?cookie_test=true [Accessed 6th April 2015]. Organisation, I.C., 2014. World coffee trade (1963-2013): A review of the markets, challenges and oppurtunities facing the sector. London. Telegraph, T., 2014. Leisure. [Online] Available at: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/11084328/Why-coffee-shops-are-replacing-pubs-in-Britain.html [Accessed 6th April 2015]. Read More
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