BUSI3018

Entrepreneurship Management and Business Practices

PHASE 1-Business Concept

Prepared for:

Instructor: Neal Alleyne

Prepared by:

Jesurun Mohammed 68640

Glacier Ramkissoon 74665
Teshant Manoo 73621

Submitted on 13th February 2020

The product that was chosen is a smart shopping device that will be attached to shopping
carts. It will facilitate ease of payment and offer a convenient shopping experience for the
shoppers. We can make money from this item when the advertisers pay us to show their
products on our device when individuals are shopping while there are on certain lanes and via
the sale and installation of the device. The retailer would gain customers because any delay in
bill generation will be eliminated, allowing for an increase in shoppers, therefore, increasing
supermarkets’ revenue. A unique selling point of this product is that it creates value for the
customer by addressing the issues associated with the long queues and delays for making
payments for your grocery items. This device is a hardware system that is outfitted into a
small box. Internally it would consist of electrical components on a small circuit board along
with an LCD screen. The LCD screen would contain advertisement space which advertises
products related to what is being currently bought by the customer. It may even offer coupons
to provide specific discounts for certain products based on the advertisers’ choices. This
fulfills a need for location and product-specific advertisement while grocery shopping which
is a relatively unexploited niche. We would target local grocery owners who typically are of
age groups 40 to 65 that are within the Princes Town area. There are approximately 13
supermarkets that are currently operating in this area. We plan to target the two supermarkets,
Harris Megastore and Persads Food Stores Limited. According, to employees working at
these grocery stores, there are approximately 80 to 90 trolley carts in each. The initial market
size for the advertisers would be at least three (3) initially. We hope to cover three ubiquitous
basic grocery item categories with these advertisements: food, beverage, and household
items.
Revenue would be earned from the installation of the devices which would cost us $300 per
cart and we would charge $450 per cart. This would create a large margin of $150 per cart
which will cover transport, installation, and taxes. Apart from that, we will earn reoccurring
revenue from offering maintenance, replacement of parts and technical advisement on its
operation. Considering that we installed our product within two target supermarkets within a
year we can expect an IRR of 40%. The growth in advertisers would naturally occur due to
the increase in customer traffic and when this product reaches other supermarkets. Revenue
would be received from advertisers purchasing advertisement space and upgrading each
shopping cart. The LCD screen size can be increased to allow for more advertisements to be
shown simultaneously to include a larger number of advertisers. Currently, in Trinidad, the
mode of cashing has not been revolutionized and seems to have not progressed. An
automated shopping cart has not been implemented on a large scale in any other country.
However, an app was designed for android phone users to scan groceries as one shop. There
are limitations to this idea since not all customers of grocery stores can be considered
technologically savvy or may not have the budget for this type of phone. We plan to upgrade
our system to not only target grocery businesses but shopping centers as well which will give
us a greater variety in our customer type so there will not only be advertisers for food items
or beverages but also shopping brands. This idea can be implemented by individuals that are
skilled in electrical engineering. Once we’ve made an impact on a few common supermarkets
within the local area we plan to perform customer case studies which will display how our
business has benefited supermarkets and advertisers, join groups on LinkedIn and
continuously upgrade this product to tailor future needs. We hope to pursue a long-term plan
of connecting with larger stores and other franchises such as Massy and Penny-wise shopping
center. Once this is executed our business will set its sight on international markets.