Your personal grocer

TEAM 11:
Nidhi Sharma
Nikhil Singla
Oluwaseun Oyinsan
Stephanny Peral
Vahid Majidian

AGENDA
1. Unique Value Proposition
2. Situation Analysis
3. Marketing Strategy
4. Sales Enablement
5. Strategic Analysis
6. Recommendations

AGENDA
1. Unique Value Proposition
2. Situation Analysis
3. Marketing Strategy
4. Sales Enablement
5. Strategic Analysis
6. Recommendations

UNIQUE VALUE PROPOSITION

WHO:

Young professionals and housewives from

Mexico City

NEED:

Groceries delivered to their doorstep or place

of business

OFFER:

Online platform with catalogues of all the

major supermarkets

BENEFIT:

Less stress and more personal time

EXPERIENCE:

Quick and easy ordering as well as a timely

delivery service

DIFFERENCE:

Expertly handpicked products sourced from

multiple retailers

AGENDA
1. Unique Value Proposition
2. Situation Analysis
3. Marketing Strategy
4. Sales Enablement
5. Strategic Analysis
6. Recommendations

RATIONALE FOR BUSINESS

Mexico is a lucrative market for Instacart
Key statistics show a positive trend in online
grocery shopping
Sizable gap between customers new shopping
behavior and services available in the market
There is no similar competition = Early adopter
Breakeven in Year 2 with conservative financial
assumptions

CORPORATE STRATEGY
1. Vision
Provide online shopping
platform for retailers to
increase their POS
Be the leader in the
online grocery shopping
market

2.
LT partnerships with
Strategy
retailers

Customer relationships
Innovation in delivery
service
Unique pricing (mark-up)
model

3.
International expansion
Goals
Diversify non-grocery
products
Increase market share

4. Initiatives
Building:
Network of specialized
grocers
Relationships with retailers
Intuitive website / app

Mexico
City

MACROECONOMICAL FACTORS
Others

Millions

14%

11%
40.6

Job search

45.1

Blogs

51.2

8%

19%

Shoppingonline

20%

Search info

42%

16%

Online bank ops

Instant msn (chats)

$USD Bn

13%

57%
55%
72%
77%

Social networks

2011

2012

2013

The number of Internet users

has had double digit growth

6
%

80%

E-Mails

20% internet users

shop online

Increase in
grocery
expenditure in
2013

83
%

1.8

2.8

2009

2010

4.1
2011

9.2
6.4

2012

2013

E-commerce has exceeded

40% yearly growth in the last
4 years

Increase in
online grocery
shopping in
2013

CUSTOMER ANALYSIS
To find what's trendy
Onlywayto find aproduct
Home Delivery
Can shop imported products

Can't find what I'mlooking

16%

Delivery takes too long

21%
52%
45%

More variety
Ischeaper
Saves me

4%

Not interested

9%

Too high delivery costs

9%

Mistrust in product delivery

66%

More prac cal

3%

14%

Uncertainty of product delivery

11%

Mistrust in sharingpersonal data

44%

17%

Scared of sharingcard informa on

46%

17%

Don't have credit card

66%

In 2013 Mexican internet users shop online

for its convenience, practicality & delivery
service

3% of the users wont shop online again:

Overpromise & under delivered
Fraud
Negative shopping history

Don't know how to shop online

11%
4%

Personal data & delivery mistrust are the

principal challenges for E-Commerce in
Mexico

7 out of 10 internet users feel

more secure when they see
the AMIPCI seal in the sites
they shop at

COMPETITIVE ANALYSIS
Instacart Superama Sumesa

Walmart

Comercial
Soriana
Mexicana

City
Market

Chedraui
Chedraui
Select

Aurrera

10

10

10

10

10

10

10

Premiumcharge

10

10

10

10

10

10

Deliverycost

1hour deliveryservice

10

10

10

10

10

10

Multiple store oders

10

Modifyingthe order after it

hasbeen placed

Errorsin shoppinglist

10

10

10

78

63

63

50

60

64

65

Expertise in grocery shopping

Convenience shopping
(Home delivery)

Friendlypersonal shopper
and orderingexperience
Access to Costco even
without membership

TOTAL

Considering the attributes above, Instacart has potential to become the leader for online grocery
shopping

AGENDA
1. Unique Value Proposition
2. Situation Analysis
3. Marketing Strategy
4. Sales Enablement
5. Strategic Analysis
6. Recommendations

2014

2015E

MARKETING OBJECTIVES
MEXICOTOTAL(mnUSD)
Retailing
Store-based Retailing
Grocery Retailers
Target Grocery Retailers
Non-Store Retailing
Internet
Retailing
MEX
ICOTOT
AL(mnUSD)
Target
Grocery Retailers
Retailing

2019E

CAGR

$
$
$
$
$
$
$
$

229,801.40
216,231.60
117,864.00
35,830.66
2
014
13,569.80
3,653.20
112.96
229,801.40

$ 237,560.90
$ 222,766.90
$ 121,027.10
$ 36,792.24
15E
$ 20
14,794.00
$
4,488.50
$
136.52
$ 237,560.90

$ 288,173.20
$ 266,118.70
$ 143,787.30
$ 43,711.34
19E
$ 20
22,054.40
$
9,373.40
$
268.82
$ 288,173.20

4.9%
4.5%
4.4%
4.4%
C10.5%
AGR
20.2%
18.5%
4.9%

Store-based Retailing
$
MEGrocery
XICO PERetailers
RHOUSEHOLD(USD)$
Retailing
$
Target Grocery Retailers $
Store-based
Retailing
$
Non-Store Retailing
$
Grocery Retailers
$
Internet
Retailing
$
Non-S
tore
Retailing
$
Target Grocery Retailers $
Internet Retailing
$

216,231.60
117,864.00
7,567.70
35,830.66
7,120.80
13,569.80
3,881.40
3,653.20
446.90
112.96
120.30

$
$
$
$
$
$
$
$
$
$
$

222,766.90
121,027.10
7,694.10
36,792.24
7,214.90
14,794.00
3,919.80
4,488.50
479.10
136.52
145.40

$ 266,118.70
$ 143,787.30
$ 43,711.34
8,802.10
$
$
8,128.50
$ 22,054.40
$
4,391.90
$
9,373.40
$
673.60
$
268.82
$
286.30

4.5%
4.4%
3.4%
4.4%
3.0%
10.5%
2.9%
20.2%
8.9%
18.5%
18.5%

7,567.70
13,097.44
7,120.80
56.48
3,881.40

$
$
$
$
$
$
$

7,694.10
13,012.37
7,214.90
68.26
3,919.80
1.70
479.10
2%
145.40

$
$
$
$
$
$
$

8,802.10
15,939.86
8,128.50
134.41
4,391.90
23.86
673.60
18%
286.30

3.4%
5.2%
3.0%
18.5%
2.9%
26.5%
8.9%*

13,012.37
68.26
1.70
2%

$
$
$

15,939.86
134.41
23.86
18%

5.2%
18.5%
26.5%*

MEXICO PERHOUSEHOLD(USD)
MEXICOCITYTOTAL(mnUSD) $
Retailing
Market
Size Retailing
$
Store-based
$
Addresable
Market
$
Grocery Retailers
$
Market
Share
Non-Store
Retailing
$
Market
S
hare
(%
)
Internet Retailing
$

446.90
120.30

18.5%

* Considers calculation from 2016-

ME
XICOCITYTOTAL(mnUSD)
2019
Market
Size
$ 13,097.44
Source:
Euromonitor International
Addresable Market
$
56.48
Market Share
Market Share (%)

$
$
$

4,347 delivers per

week
52% NY 1st week

TARGET MARKETS - PERSONAS

1. WORKING PROFESSIONAL: Stephanny
Men / Women
25 45 years
Single / Married
No children
SES Med-High / High
30K 80K USD
10 hrs work
3 hrs commuting
Weekends for family &
friends
Hates Lety
grocery shopping
2. HOUSEWIVES:
Women
35 60 years
Married
+2 mischievous children
SES Med-High / High
Single income family 60K 120K USD
24/7 tied up taking care of kids
Fussy about family food

The online grocery retail growth is

generated by the segment of urban
working men and women with busy
lifestyles who seek convenience
and timeliness for their grocery
shopping/delivery experience.

Stay at home women lack hours of

the day to focus on their children
and other responsibilities. Instacart
will solve this problem by offering a
stress-free and quick delivery of
groceries directly to their
residence.

MARKET RESEARCH
INITIAL RESEARCH:

A market survey was conducted on 55

Mexico City habitants matching the target
personas.

87%
82%Multiple store shopping
Friendly personal shopper &
80%ordering experience

The main positive responds were:

Expertise in grocery shopping

Positive first reaction to the business

proposal
Attributes highly graded

NEXT STEPS:
1. Personal interviews
(more in depth
analysis)

2. Day In The Life

(shopping experience)

3. Focus Groups
(understand difficulties w/
app)

4. A/B Testing
(marketing campaigns)

BRAND
BRAND MAP
PERSONALITY:
Innovative, simple, fun,
flexible, reliable,
friendly, fast
MESSAGE:
Expert personal grocer
(friendly)
Multi store shopping (flexible)
PROMISE:
Non-stressful & friendly shopping
experience
On time delivery
VISION: Provide an easy to use flexible
online shopping platform for time sensitive
consumers who look for a combination of
expertise and home delivery

POSITIONING MAP
High
Quality

Instacart

Chedraui Selecto

City Market

Wal-Mart

Low
Price /
Delivery

Superama,
Sumera,
Comercial Mexicana

Chedraui, Aurrera

Low
Quality

High
Price /
Delivery

MARKETING MIX - OVER

OFFERING

VALUE

EXPERIENCE

RELATIONS
HIP

Website/applicati Convenience
Cordial interaction
User friendly
on based
with grocers
(little effort)
interface
Free delivery for
grocery
Time saved =
Stress free
shopping
1st time users
more personal
grocery
Multiple store
Membership
time for other
shopping
shopping
options
activities
Friendly Customer
capability
1 hr home
Service
delivery
PHYSICAL
Grocery
PEOPLE
PROCESS
EVIDENCE
shopping
Easy to use
Fresh groceries
experts Bonus link to
online platforms
Quality products
performance
Processes
Compensation
aligned with US
packages above
HQ
market
standards
TQM

MARKETING CAMPAIGNS
The marketing strategies will include efforts in both traditional and digital
media:

* Detail information about marketing budget is included in the financial section.

AGENDA
1. Unique Value Proposition
2. Situation Analysis
3. Marketing Strategy
4. Sales Enablement
5. Strategic Analysis
6. Recommendations

SALES
BUYING CYCLE
TOUCHPOINTS
Loyalty
Upgrades

Confidence

GROCERS IMPORTA
Epiphany

Web Site

The overall performance affect

the customers perception and
satisfaction.

It is important to ensure their

performance by:
Training
Motivation
- Compensation
- Recognition and
Rewards

Pre-purchase
Advertising
Experience

Buying
Cycle
Shopping cart

Customer
Care

Training

The grocers are the face for the

company.

Awareness
Interest

Word of
Mouth

Give- aways

PostTechnical purchase
Support Experience

Purchase and
Usage
Experience Expertise

in shopping

Service &
Delivery

Interest
Confidence

AGENDA
1. Unique Value Proposition
2. Situation Analysis
3. Marketing Strategy
4. Sales Enablement
5. Strategic Analysis
6. Recommendations

SWOT ANALYSIS
Home delivery

W/H

Fresh quality
productsdelivered

Highlight asbrand
value proposition

Expertise
shopping

W/H

Emergencyservice

Highlight asbrand
value proposition
Highlight asbrand
value proposition

1hr delivery
service
Multiple store
shopping
Non partner
store order

Expertise
shopping

W/H

W/H

Shoppingcart
diversity

Increase share of
wallet

Allign with
corporate strategy

W/H
W/H
W/H

ACTIONS

Train grocersin
packagingand
transportation
Create policy
Qualityis
focusingon service
subjective
etiquettes
Difficultyduring Establish visible
peak hours
caveats
Shoppingcart
Establish visible
diversity
caveats
Shoppingcart
Partner with all
abandoned
relevant palyers
Need internet
Provide facilityfor
connection
phone orders
Customerswould Match price with
prefer to self
the value of
shop
service perception
Customerswould
Create markup
prefer to self
strategies(%vs$)
shop
Broken Items

Online shopping

W/H

DeliveryCost

W/H

Markup cost

W/H

Riskof partners
being
competitors

N/A

Lossof clients

Riskof model
replication

N/A

Lossof clients

Mom& Pop
shops

N/A

Lossof clients

Create fair
lucrative
partnership terms
Keep innovating
and manage churn
rate
Incorporate CRM
program

WEAKNESSES

Highlight asbrand
value proposition

W/H

Expand to non
groceryareas

PARTICULARS WIIFM IMPLICATIONS

Stressfree shopping

Home delivery

1hr delivery
service
Multiple store
shopping

ACTIONS

THREATS

OPPORTUNI
TIES

STRENGTHS

PARTICULARS WIIFM IMPLICATIONS

AGENDA
1. Unique Value Proposition
2. Situation Analysis
3. Marketing Strategy
4. Sales Enablement
5. Strategic Analysis
6. Recommendations

RECOMMENDATIONS
MARKETING:

Invest in branding in line with corporate strategy

Leverage on early adopter for WOM publicity
Co-brand with strong brand to protect our market share
Use inspirational videos for brand promotion e.g. cola cola
Include clear delivery promise message inn the advertising
Customer referrals & feedback important to spot gaps in
services
More emphasis on pull marketing rather than push to create
awareness
Measure the effectiveness of the marketing efforts

ORGANIZATION
:

Incorporate CRM program

Performance development programs for employees & grocers
Clear reporting hierarchy for staff within Mexico and with US HQ
TQM programs for grocers

BUSINESS
INTELIGENCE:

Monitor changes in Marketing segments

Monitor the buying cycle of customers to identify gaps in
services
Monitor the competitors efforts and innovations
Continuously nurture the relationships with partners
Create a partner incentive model (Bonus for sales volume
per partner)
Diversify into non grocery products

TECHNOLOGY:

Incorporate latest updates in software

Incorporate EDI programs for real time price update

BACK UP SLIDES

EXHIBITS

PRO FORMA P&L

2015

2016

2017

2018

2019

ASSUMPTION
S:

P&L($'000MXP)
REVENUES
Revenues
RetailersRevenue
Instacart Revenues
Memberships
Normal Delivery
1Hr Delivery
TOTALREVENUES

$
-$
$
$
$
$
$

13,071.21
11,882.92
1,188.29
26.80
246.95
9.88
1,471.92

$
-$
$
$
$
$
$

181,367.84
164,879.86
16,487.99
670.24
3,169.74
126.79
20,454.76

$
-$
$
$
$
$
$

274,611.71
249,647.01
24,964.70
1,372.45
4,401.05
176.04
30,914.24

$
-$
$
$
$
$
$

324,577.66
295,070.60
29,507.06
2,041.72
4,753.61
190.14
36,492.54

$
-$
$
$
$
$
$

367,499.16
334,090.14
33,409.01
2,151.68
5,218.38
208.74
40,987.81

Delivery
Administrative Exp
Salaries
OfficeRent
OfficeExp
MarketingExp
Digital Media

$
$
$
$
$
$
$

1,061.03
413.44
369.00
15.00
29.44
2,000.00
1,000.00

$
$
$
$
$
$
$

14,375.24
1,171.10
747.00
15.00
409.10
2,000.00
1,000.00

$
$
$
$
$
$
$

21,133.50
1,565.28
927.00
20.00
618.28
1,545.71
927.43

$
$
$
$
$
$
$

24,253.14
1,789.85
1,035.00
25.00
729.85
1,824.63
1,094.78

$
$
$
$
$
$
$

26,624.37
1,920.76
1,071.00
30.00
819.76
2,049.39
1,229.63

You tubevideo

$
$
$

200.00
250.00
150.00

$
$
$

200.00
250.00
150.00

$
$
$

185.49
231.86
139.11

$
$
$

218.96
273.69
164.22

$
$
$

245.93
307.41
184.45

1Deliveryfree coupon for app download

$
$
$
$

150.00
50.00
200.00

$
$
$
$

150.00
50.00
200.00

$
$
$
$

139.11
46.37
185.49

$
$
$
$

164.22
54.74
218.96

$
$
$
$

184.45
61.48
245.93

Traditional Media
TrainingExp
TOTALCOSTS

$
$
$

1,000.00 $
73.60 $
3,548.06 $

1,000.00 $
1,022.74 $
18,569.07 $

618.28 $
1,545.71 $
25,790.21 $

729.85 $
1,824.63 $
29,692.24 $

819.76
2,049.39
32,643.90

EBIT
Taxes

-$
$

2,076.14 $
$

1,885.69 $
603.42 $

5,124.03 $
1,639.69 $

6,800.30 $
2,176.09 $

8,343.91
2,670.05

NETINCOME

-$

2,076.14 $

1,282.27 $

3,484.34 $

4,624.20 $

5,673.86

Total Revenues:
Mark up: 10%
Membership: $1,485 MXP
Normal Del: $25 MXP
1 Hr Del: $49 MXP

COSTS

Website/App development
Private blogs(paid)
Testimonals, successstories, offer descriptions
References, peer recommedations
Facebook development

2%
5%
100%
Paid
Paid
Paid
Paid
Earn
Paid/Earn
Paid

20%
25%
15%
15%
0%
5%
20%

5%

Costs:
Grocers Commission:
$100 MXP
RH: City Launcher,
Marketing Manager,
Engineers, Customer
Service Reps
Marketing Exp: Fixed $2
mn MXP 2015 & 2016,
5% of Total Revenues
2017 onward
Social Media: 50% of
Marketing budget for the
first 2 years and 60%
onward
Training Exp: 5% of Total
Revenues

MARKETING OBJECTIVES
(DETAILED ANALYSIS)
2014
MEXICOTOTAL(mnUSD)
Retailing
Store-based Retailing
GroceryRetailers
Target GroceryRetailers
Non-Store Retailing
Internet Retailing
Target GroceryRetailers

2015E

2019E

CAGR

$
$
$
$
$
$
$

229,801.40
216,231.60
117,864.00
35,830.66
13,569.80
3,653.20
112.96

$
$
$
$
$
$
$

237,560.90
222,766.90
121,027.10
36,792.24
14,794.00
4,488.50
136.52

$
$
$
$
$
$
$

288,173.20
266,118.70
143,787.30
43,711.34
22,054.40
9,373.40
268.82

4.9%
4.5%
4.4%
4.4%
10.5%
20.2%
18.5%

MEXICO PERHOUSEHOLD(USD)
Retailing
$
Store-based Retailing
$
GroceryRetailers
$
Non-Store Retailing
$
Internet Retailing
$

7,567.70
7,120.80
3,881.40
446.90
120.30

$
$
$
$
$

7,694.10
7,214.90
3,919.80
479.10
145.40

$
$
$
$
$

8,802.10
8,128.50
4,391.90
673.60
286.30

3.4%
3.0%
2.9%
8.9%
18.5%

MEXICOCITYTOTAL(mnUSD)
Market Size
$ 13,097.44 $ 13,012.37 $ 15,939.86
Addresable Market
$
56.48 $
68.26 $
134.41
Market Share
$
1.70 $
23.86
Market Share (%)
2%
18%
* Considers calculation from 2016-2019
Source: Euromonitor International

5.2%
18.5%
26.5%*

JUSTIFICATIO
Instacart
Foray:
NS:
- 10% weekly growth
New York Foray (1st week):
- 300 grocers
- 4 delivers per grocer
- 8,400 delivers per Week
Mexico City Forecast
assumptions:
- 15 grocers
- 4 delivers per grocer
- 1st year weekly growth:
Q1: 10%, Q2: 8%, Q3:
6%, Q4: 4%

2015: 408 delivers per

week
2019: 4,347 deliver per
week
(52% vs NY 1st week)

REFERENCES

https://www.amipci.org.mx/estudios/habitos_de_internet/
Estudio_Habitos_del_Internauta_Mexicano_2014_V_MD.pdf

https://www.amipci.org.mx/estudios/comercio_electronico/131
028_-_Comunicado-Estudio_Comercio_Electronico2013-ProyectoV3__REV.pdf

http://www.portal.euromonitor.com/ portal

http
://www.foodtechconnect.com/2014/04/02/how-instacart-is-growi
ng-its-grocery-delivery-by-15-20-percent-a-week
/

http
://www.forbes.com/sites/briansolomon/2015/01/21/americas-most

THANK YOU !

ENJOY THE BREAK

TEAM 11:
Nidhi Sharma
Nikhil Singla
Oluwaseun Oyinsan
Stephanny Peral
Vahid Majidian