1. DAFC01/6999/2020 Noah Roy Kibet.

2. DAFC01/4901/2020 Irine Kambua.

3. DAFC01/4740/2020 Margaret Njeri.
4. DAFC01/6836/2020 Faith Mwikali.
5. DAFC01/7161/2020 Gloria Chomba.
6. DAFC01/0634/2018 Martha Wairimu.
7. DAFC01/4679/2020 Gloria Jepchirchir.
8. DAFC01/6712/2020 Scott Walter.
9. DAFC01/0599/2018 Marvine Okello.
TITLE: HYPER LOCAL GROCERY
BUSINESS MODEL.
 1. Give brief description about the business plan.

A large initial capital investment will allow our store to provide its customers with a fully
featured grocery store.

A unique, upscale, and innovative environment is required to provide the customer with an
atmosphere that will inspire continued use. The successful operation of year one will
provide our store with customers that will allow it to be self-sufficient in year two.

Our competitive edge, along with new retail techniques and technology, puts our store in
the forefront of the retailing of perishable and non-perishable consumer goods. We are
living in an age where unique grocery store environments are in great demand. Our store
will differ from the traditional grocery store because of our added personal touch.

Hyperlocal means a market that enters to the need of limited geographical area. Hyperlocal
grocery business is a grocery shop that offers perishable and non-perishable goods which
are mostly foods that are packaged in bottles, boxes and cans. Some hyperlocal groceries
have bakeries, butchers, delis and fresh produce.

The capital of starting a hyperlocal grocery business model is not intensive. The main secret
to a successful business is having the products liked by the customers. As the demographic
of grocery store customers includes all social economic spheres, it’s important to find niche
when you start the business in order to be unique.

In Hyperlocal grocery business model, it’s important to have business plan which will enable
you to run the business effectively.

There are legal requirement needed before or to start a business. Which includes:

 Federal Employment Identification Number.

 Certificate of Incorporation.

In grocery business model you need to set up a strong reliable network of distributors to
supply goods for your store and find marketing strategies.
As a leading wholesale distributor, our commitment is to provide quality products and
services in a cost-effective manner, enabling our business to excel in serving our customers.
A clean environment in which to shop and:

 A safe place to shop

 Value
 Great, friendly service
 Our shop will be good neighbours and will be involved in the community
 Our store will be at least 25,000 square feet’s

Our most fundamental philosophy is the concern for people. This strong belief in people is
the determining factor that motivates our operations in developing our relationship with
our employees and customers.

We believe that our responsibility for customer satisfaction is not focused solely on the sale
of a product, but rather is the total relationship a customer experiences when interacting
with our organization. We believe in honesty and truth in all transactions and in providing
products of the highest quality and at fair prices. We should do everything possible to
provide outstanding service in marketing the products we sell.

Our philosophy of concern for people gives our grocery Store the drive to be a good
corporate citizen. We believe we have a responsibility to be a good neighbour in
maintaining our property in first-class condition and by making the appearance of our plant,
facilities, equipment, and grounds as attractive as possible, making them an asset to the
communities that support our business.

Our nice pledge campaign includes an intense training session for all of our employees, and
a firm understanding and commitment to deliver these pledge points at the grocery store.
Hours of Operation

Store hours will be 7 days a week from 10:00 A.M. until 10:00 P.M. Checks and all major
credit cards will be accepted. A food stamp policy along with other policies will be in place.

PRODUCTS

The store will sell over 40,000 private label and national brand products to the community.

2. Explain how you’re going to market the products.

I. Ways of marketing the products.

By household size, grocery spending ranges from an average of 510 per week in one person
households to 1300 per week in households of five or more. Per person spending is
inversely correlated with household size.

To make our advertising and printing dollars work their smartest, we need a team that will
work its hardest. Our Creative Services Department is ready to meet those needs by
providing everything from concepts and design to printing and signage.

II. Our intensive marketing strategy.

Creating Loyalty Program - loyalty programs help to earn repeat customers who will remain
loyal to the grocery. By shopping with us in every product they purchase they will earn
points where by if a client has a lot of points he or she can redeem them and use them to
purchase something without using his own cash.

Providing discount coupons. clients usually go for products that enable them to save.
Offering discounts for different products will increase sales since it will attract more reliant
clients.
Offer tasting-products like fruits, the business will have free samples where clients who
come to purchase products from the store get a chance to taste the fruit and depending
with the client he or she will know whether to purchase or not. This service helps in getting
feedback from the client which is healthy for the business and also the client can help in
promotion if he or she finds the product nice.

III. Target Market Segment Strategy

Our store will meet the grocery needs of the surrounding neighbourhood of female or male
head of households earning 15,000 per year or more.

We will reach our consumers by taking full advantage of our Stores' single clearing house for
manufacturers' coupons, our grocery business and manufacturers coupons, and warehouse
damage coupons. Our redemption programs will include gift certificates, selling-show
vouchers, and mail-in rebates. Other services include the Gift Certificate program

IV. Technology: Electronic Marketing.

We will be committed to keeping up with technology changes, thereby gaining a

competitive edge in the marketplace. Computers and other information systems are
integrated to provide management information and time saving tools.

These include:

 E-mail systems
 Standard accounting software
 Computer-based training

Support is always available to answer system and software development questions, or

provide programming solutions as new industry developments appear.

To support our retail stores, electronic marketing allows us to access complete data analysis
and marketing services. These services include data storage, strategic planning and
consultation, sourcing for card key tag manufacturing, custom marketing program
development, promotions and campaigns, electronic marketing training and education,
retailer-specific data analysis, and support of third-party programs.

The program focuses on these major areas:

 Internal and external store appearance

 Product availability
 Point-of-purchase materials
 Food service
 Uniforms
 Most importantly, the quality of service received at the register

Each store is visited by a mystery shopper once a month, making sure that all shifts are
experienced at least twice a year. Employees are eligible to earn cash incentives and top
stores are honoured with awards quarterly.

In order to portray the professional image that our x Stores' customers have come to
expect, a selection of uniforms are available. Uniform requirements are facilitated with the
use of a contracted distribution and laundry service.

3. Describe the management of the business.

Our strategy to manage a grocery store will help us grow and develop our store. Building a
new store or undergoing expansion can be a tremendous challenge for retailers, especially
when trying to run a business at the same time. Our store development services include
everything from securing real estate and financing to construction and decor. It's another
area in which we help retailers solidify strong market positions.

In addition to our store will be space available for two other retail establishments.

For a better management, we will be able to provide a service which helps us manage the
information related to our retail business more effectively. In giving intensive programs to
complete integration of pricing, promotions, scanning, receiving, and electronic payment
systems, including EBT and human resource functions at store and corporate levels.
Their commitment to putting retailers in the fast lane with state-of-the-art, point-of-sale
technology keeps us on the leading edge.

Our store will sell mostly the local grocery brands instead of the national brands. We feel
this is a growing trend amongst shoppers.

The people we employ are also a major investment in our company. It is their goal to help us
fully capitalize on this investment. Our store will hire one Manager, one Assistant Manager,
four Cashiers, four Labourers and four Administrative Workers. Our Store Manager will have
a college degree and several years of experience with managing a retail store.

The personnel plan is included in the following table. It shows the Manager's hourly pay,
followed by that of the rest of the staff. Each of these positions will overlap to make sure
the customers are receiving excellent customer service and that adequate help is on hand.

4. State the sources of capital and how it will be used in the business.

Sources of capital

 Loan from financial institutions

 Savings from sources of income
 Proceeds from sales of groceries products

The capital will be used in purchasing of the entities transportation vessel as the business
will require one to move from the point of origin entry to the customer. Apart from the
transport cost the capital will be used in the obtaining of licenses and cater for the legal
framework and advertisement of the business products and services.

Storage and warehousing is another key factor of consideration to the business when
starting a hypothetical grocery business one will need to have a warehouse in which to store
the goods in search for a market. The proceeds from the sales of the product may be used
to pay for the short-term liabilities like fueling the transportation vessel.