Q-LESS DIGITAL PROPOSAL M2 #29: THE ECLECTIC MIX
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Q-LESS DIGITAL PROPOSAL
Q-LESS DIGITAL PROPOSALM2 #29: The Eclectic mix
Company PurposeRevolutionising the concept of coffee on-the- go for both retailers and consumers.
Problem & SolutionLong queues at coffee outlets during peak times.Lost revenue for retailers whose potential customers dont have time to buy.A purchase process which takes too long.
A real-time, cashless geolocation triggered ordering system.Consumers save precious minutes on their journey.Retailers fully capitalise on their units revenue potential.
The ProblemOur Solution
The ProductAn application using geolocation technology and open source transport data to send an automatic order to the retailer as soon as the customer comes within a certain distance/time of the retail unit.
With Q-LESS, you can queue less!
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Why Now?
Right now:
An average of 30 coffee retailers are opening in the UK each weekIn the future:
Research suggests that by 2025 the UK coffee shop market will exceed 30,000 outlets and 15 billion turnover
Every single day:
Over 2 million takeaway cups of coffee are purchased in London alone
Elsewhere:
Competitors are explore ordering technology, but with limited success
Review on Apples App Store for Starbucks app
http://www.hospitalityandcateringnews.com/2015/12/booming-uk-coffee-shop-market-heads-30000-outlets/:http://www.britishcoffeeassociation.org/about_coffee/coffee_facts/http://metro.co.uk/2014/05/07/want-to-know-more-about-london-25-need-to-know-facts-told-in-numbers-4719600/
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Competition
Starbucks app allows customers can pre-order and pre-purchase coffee, then skip the queue and collect at the Starbucks most convenient to them. Limited to Starbucks & high cost
Traditional way of purchasing coffee by queueing up and waiting without utilising an app. Customers have to queue and cant pre-pay. High cost.
Low cost disposable coffee cups from Azera. Take-away coffee is pre-paid and easy to use.Customers have to bring from home and purchase in advance.
Coffee that is brought from a customers house, removing the need to purchase coffee on the go.Customers have to bring from home and cant throw away the cup.
Coffee purchased from by vending machine or coffee machine located inside a retail outlet. High cost, potentially low quality and difficult to find.
There are 5 major types of competitors in the coffee market. Only one of these; the Starbucks App actually competes against the Q-less app. However, all potential alternatives have been considered.
Talk through each option6
Competitive Environment
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Market size
80bn
7.9bn
237mTotal Available Market Coffees drunk worldwide
Service Available Market Market size of the UK
Service Obtainable Market Independent Coffee shops in the UK
http://www.wevio.com/research-and-analysis-articles/global-coffee-industry-facts-statistics-of-2014-2015/http://www.hospitalityandcateringnews.com/2015/12/booming-uk-coffee-shop-market-heads-30000-outlets/
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Business modelThe App is free of charge for end users. Our revenue is mainly generated for the service of the retailers
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Revenue Stream
a 10% commission
Total Revenue:Year 1 = 3.4mYear 2 = 13mYear 3 = 36.4m
We take a 10% commission Year 1 = 2.7mYear 2 = 10.9mYear 3 = 31.9mAnd a yearly subscription fee from outletsYear 1 = 1,000 shopsYear 2 = 3,000 shopsYear 3 = 7,000 shops (34% of UK coffee retailers)Plus advertising packagesAverage PPC: 22k minimum spendROI: 25%
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FinancialsFundingAnnual revenueYearly ROI breakdownFunding500,000Partners*2200,000A loan from bank300,000
CostsAnnual revenueAmountYear 13.4mYear 213mYear 336.4m
Annual costAmountYear 11.3mYear 23.5mYear 39m
Annual ROIAmountYear 12mYear 29.4mYear 327.4m
Scalability and growth
Year One Total Active Users - 30kShops - 1000Total Revenue - 3.4mYear TwoTotal Active Users - 120kTotal Shops - 3000Revenue - 13mYear ThreeTotal Active Users - 350kTotal Shops - 7000Total Revenue - 36m
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Sales, Distribution and Partnership
Print adsLeaflets at stationsOnline banners on train timetable appsSocial media advertisingTestimonial campaigns
Coffee roastersEquipment rentalsAnnual Barista competitionCoffee Bloggers outreachEmail campaignsSales team
Drive awareness and engagement
Drive awareness and acquisition
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Q-LESS Team
Anne-LuceSales & DistributorCarlBusiness DeveloperCrissieProduct Developer
JoshCompetitive whizz kid
LizzieCommercial developer
SelenaFinancial Maestro
NinaMarketing Guru
com.apple.VoiceMemos (iOS 10.0.2)
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