The purpose of Mundi is the provide an easier grocery shopping experience through mapping out items in the store, providing a digital shopping list, and allowing users to interact and share recipes on the app.
Women take longer in the grocery averaging 42-minute versus men averaging 39 minutes and those under the age of 30 take an average of 43 minutes. Adding to that, 6 out of 10 women reported they spent more than 1 hour in the store. After looking at these statistics and hearing personal stories from the women in my life about the time it takes to find even 1 item at the grocery store, I knew there had to be an easier way to navigate the grocery store. After deciding the issue was navigation and not having a clear path to where things are in the grocery store, the next step was figuring out the high traffic days and low traffic days that people frequent the grocery store. An obvious trend is that the weekend is a busier time than week days, and This website shows interesting facts about how much time the average person spends in the grocery store, 41 minutes, and what day of the week is the most popular, Saturday and Sunday unsurprisingly, with less frequent days being Monday and Tuesday. With the name of Mundi being Latin meaning "World," the app seeks to help the shopper navigate the world of the grocery store with easy and logical steps to cross off all the items on the in-app grocery list. The in-app grocery list also allows, like the next section below goes into more detail, for the user to create a more digital personalized experience. Having all of your information for the grocery store in one place allows for an easier user experience.
In the digital age, even the simplest of tasks have begun to have a technological feel to them. Why can’t a grocery store experience have that too? According to this article, one of the top trends for grocery shopping in 2017 is going to be “More Digital Engagement.” Mundi lets shoppers do this with the virtual shopping list and linking up to items in the store through location services. The added feature of being able to chat and share recipes gives Mundi a social media aspect, but more centralized into one topic rather than any topic. Business Insider states that 2 of the top 4 trending ideas for grocery stores is variety in shopping at different stores for specific items, and more product curation is wanted. Instead of a customer having to look through thousands of different items to find something they want, they have a desire to have their grocery shopping experience feel more personalized. Mundi does both of these things by having multiple store layouts available, and letting the interactive grocery list act as a personal shopping assistant to show you exactly where each item is located. Another trend on the rise is online shopping. While it can be more convenient, it is actually more expensive according to Time magazine. Online stores are offering grocery products 24.6% higher than in-store options. Mundi combines the efficiency and organization of an online grocery shopping experience with the lower prices of a traditional grocery store.
Progressive Grocer shares data that says 67% of the time women handle most of the grocery shopping and 75% of the time still make grocery lists. While the target audience of Mundi is women, when men do shop they are less likely to have a list and tend to spend less amounts of time in the store. Mundi’s main advantage to it's competitors is the in-app list, because statistics show that 69% of women say they bring a list to the store versus 52% of men who do not. Another factor in determining the target audience is age. The average age of all grocery shoppers is 44, but the average age of women shopping is 47. I found a good range to be from 30-47 years old as the target age demographic for Mundi. With the profile now built of a middle-aged woman that shops on the weekend gathered as a starting point, the last piece of information I needed to complete my profile was the annual income. Are these women in middle-class families? Extremely wealthy? Or just upper-middle class? According to Time Use Institute, a study conducted in 2008, data showed the average familial income to be around $50,000. And this is the updated 2016 version of the previous Time article. The median income upped from $50,000 to $51,000 and a trend was found that those that have the highest income shop from 4-7pm. My complete profile of my target audience is now:
· Gender: Female
· Age: 30-47
· Status: Middle-class
In this demographic, Facebook is the main form of social media used according to this article which further confirms that 83% of female internet users are on Facebook. In order to increase awareness through Facebook, Mundi will offer a share code that unlocks coupons when the user's personalized code is engaged.
When developing the Mundi app, consideration was given that there would already be similar ideas in use. I The existent apps that most resemble Mundi are: Aisle Finder, Ziplist, and Bytelight. Aislefinder allows navigation throughout grocery store, but received poor reviews on the Apple store due to customer complaints that there was no list available on it. Ziplist allows creation of lists and sharing among friends, but does not provide the layout of the grocery store needed for navigation. As a side note Ziplist went out of business in December of 2014. And finally, Bytelight used a series of "Smart light bulbs" to guide users to different products in the grocery store by having the lightbulbs light up when the item was close by. The app depends on the grocery stores installing the LED lightbulbs. After researching these 3 apps Mundi incorporated the weaknesses of each into 1 application by providing an interactive grocery list, a navigation of the grocery store providing a route to each item, and having a chat room feature where users can share recipes.
Starting with purchases, I would make a 1-time purchase from the apple store for $99 to put my app on the store that is required by Apple. The outside service fee would be for the initial creation and programming of the app, with the cost explanation here and line 15 with supplies for the office is set-aside at $50 for pencils, staples, etc. Because my whole company is based online and on an app, I set aside $500 a month so that tech specialists would be on hand and be available to help in the case that the app crashes or bugs need to be fixed. The main priority is making sure the app stays up and running. Advertising is set at $10,000 initially and peaks in August when I believe stay at home moms will be frequenting the grocery store again at a more scheduled time due to kids going back to school and I also increased advertising at the holiday times around Thanksgiving and Christmas. Both times people need to be able to navigate the grocery store quickly and efficiently. Accounting and legal is set at $5,000 initially to hire a lawyer to help me set up the company and copyright the name and general patent. The $650 in March is to hire a CPA to handle my taxes that are due in April. Rent is usually $500 a month, but if I were only using 1/5 of my 2-bedroom apartment for my company, I would only pay 1/5 rent from company expenses and the telephone is $100 for my own phone plan. The utilities are, again, 1/5 of $250 for utilities due to the use of only 1/5th of the space plus paying totally cost for Wi-Fi at $75 a month because that’s what my company depends on. Insurance is a commercial general liability policy of $62 a month.
The escrowed is based on a $34,000(W-2 @ 15%) salary and an estimated net income of $70,000(K-1 @ 30%) at the end of the year. So my tax liability is a combination of my W-2 and profits from my K-1. The interest paid on loans and loan principal payment information and data can be found here for my $50,000 loan at 6% for 5 years. Equipment purchases would include a computer and router for the company and any other software needed, and I set reserves at $500 a month to set back money for future company growth. The owner’s salary is at $2500 for the first 4 months, and then increases to $3000 once the company starts making profit.
Profits will come from in-app advertising and money per download. I plan for advertising and profits to increase at the end of August/early September as stay-at-home moms are getting readjusted with school schedules and are looking for an easy way to utilize their time efficiently at the grocery store. Profits and advertising funds are expected to increase again in late November/early December due to Thanksgiving, Christmas, New Years, and any other holiday that usually brings families together and requires lots of meal planning occurs.
The cash position at the end of year 1 expected to be $184,606 which will be used for expanding my business and moving into an office space. I will also hire a team to help with specific parts of the app like monitoring the chat area, managing advertising, etc. I will invest more money in advertising and app development. With these expansios I plan to explore deals with the grocery stores that are used on my app.
The video below is a commercial I produced to go alongside my pitch. It shows who Mundi is relevant too, a setting where it would be used, and how easy it is to use it.
My full presentation for my pitch can be found here.