Econprojectppt
- 1. Awesome Express 2010-2011 Business Model Jeffrey Liang David Truong Kevin Nguyen Matthew Barnes Tai Tran
- 2. Introduction We are Awesome Express, a new delivery business that delivers anything, anywhere, at anytime. We offer blazing fast deliver speeds, ranging from 3 minutes to 24 hours. The great thing with a delivery service is that we cater to every age group, male or female. Anyone that wants to buy products online or through a catalog requires a delivery service to deliver their purchased item. Here is a breakdown of our targeted consumers:
- 3. Our Mission “ To introduce the new Gold Standard of delivery; to bring about a delivery service that is not only reliable but faster than the human mind can fathom; to create a service that will reinvent the concepts of speed, reliability, and satisfaction; to give our customers the best option possible when choosing to deliver or receive a package .
- 4. Targeted Consumers Men and Women -> Age Groups 3-10 : People of this age group would buy items such as action figures, coloring books, elementary school supplies, items our service can easily deliver. 11-16 : People of this age group would tend to buy more expensive items, such as electronics ( computers, video games, mp3s) and clothes, all items that can easily be delivered. 17-35 : In this age group, people will generally buy the same types of things they bought before, but most likely at a more frequent rate as they now have jobs and a source of income to purchase items. This is most likely our premier age group as the individuals are just beginning to find jobs and not deep into marriage, allowing more freedom in purchasing expensive items, such as TVs, laptops, ect. Also, this age group tends to be more trendy and prefers to buy their everyday items online, where it is more convenient and sometimes a better deal. With us as their choice of delivery service, these individuals are guaranteed very fast and reliable shipments to their home. 35-55 : This age group is where we target married couples who purchase home furniture, such as beds, couches, and dinner tables. After purchasing their item through a dealer, big items require large trucks and multiple workers to haul these heavy objects. Our state of the art delivery vehicles can handle large objects with ease and our workers are powerful individuals who can carry such items by themselves.
- 5. Targeted Consumers Companies and Industries Our aim is to establish contracts with every major retailer and company that requires some type of delivery service. Starting small, we would first like to establish connections with local retail stores, and then expand to the online market such as Amazon and Ebay. This is where our source of revenue will come from, so establishing a strong local base will improve our chances of long term success.
- 6. Competition UPS : As a large company founded in 1907, UPS has been a household name in the delivery service market. Known to be reliable and convenient, UPS is currently one of the six largest couriers in the world and commands a huge portion of the market. Advantages : - Wide variety of services ( UPS Express, UPS Next Day) which ranges delivery times from 48 to 8 hours, all at different rates depending on weight and size of item
- 7. Competition DHL : Although this company is much smaller in size, it's name is just as well known as UPS and is also one of the Big 6 in the courier industry. While services may be cheaper than other couriers while offering just as many options in delivery services, this company has a history of problems delivering on time, due to the size of their company and the demand of packages during the seasons of high demand, such as the holidays. Advantages : - Also offers wide variety of services (DHL Express, DHL Same Day). A cheaper alternative than UPS and Fedex in most services and also speedy with their delivery.
- 8. Competition UPSP : The 2 nd largest civilian employer in the nation, this courier has been existence since the founding of America. This independent agency of the United States Government is responsible for serving all the postal service needs of the American Citizens. While its services is not as fast nor as reliable than the previously stated companies, UPSP serves all Americans who have delivery needs regardless of geography, all at uniform price and quality Advantages : Obligated to serve all Americans wherever they might live at a uniform price.
- 9. However... Disadvantage of All 3 Services: WE DELIVER EVERYTHING AND ANYTHING IN SPEEDS UNFATHOMABLE BY TODAY'S STANDARDS OF DELIVERY
- 10. We are Awesome Express
- 11. Salary: 50k/Year We will start with one driver and hopefully expand to three by the end of one fiscal year. The driver, who handles the Vehicle-X must be a driver of extreme caliber. The learning curve of driving our vehicle is steep, since the speed of our vehicle can approach what we call “warp speed”. At such high intensity, handling of our very expensive vehicle is very important, as it not only carries years upon years of research and technology, it also carries the customer's package. The starting salary is thus far greater than the typical 35k entry level delivery truck drivers our competitors offer.
- 12. Salary: 40k/Year Starting as a small company, we will only require the manpower of two persons. This position will be only for physically fit and capable individuals who can lift large objects and equipment regularly without tiring out. This job doubles as a sales clerk, responsible for receiving shipment orders and documenting them down. Seeing as this job doubles as one, we are looking for a couple very qualified persons to fit this position and are offering a very generous starting salary.
- 13. Salary: ??? As the designers of our rocket propulsion technology, our two engineers (who we will not reveal to maintain confidentiality) work tirelessly around the clock in order to improve and maintain our Vehicle-X. Vehicle-X is unlike any vehicle seen by man, as it is not only the size of a modern sedan but also as fast as the space shuttle Challenger. While we cannot disclose the amount they make to the general public at this time, their time committed to this company is purely and investment they hope will pay off in the long run.
- 14. Salary: 40k/Year Because our initial revenue stream will tend to be small due to the small size of our start up company, we will only require the help of one accountant. Our accountant will take care of all the paperwork that goes around the office as well as manage the finances (total revenue, profits, cost of production) of the company. This position, as all other positions, will grow in time as the company expands, but for now, one accountant is all we need.
- 15. Marketing Strategies TV Commercials : With a commercial already developed using a on-hand camera and workers as actors, there was no cost for the production of our video. Editing was done by an employee who had prior knowledge on video editing. We will, however, be buying TV Ad spots on popular TV networks such as CBS and Fox, not during national prime-time coverage. Cost of 30 second local TV commercial: $500 Estimated Total Cost of Commercials: $10000 (over 1 month time) Fliers : We will be mass printing fliers to pass out in our local area, hoping to gain exposure by word-of-mouth and attention-grabbing posters. Cost of Printed Fliers: $0.10 per flier x 5000 fliers =$50
- 16. Business Finance Office Space: Tully Business Center -> $15/Square Foot, 24000 Square Feet Total Cost: $360,000/Year Desks, Chairs, Shelves, Other Furniture Total Cost: $1,000 Electricity -> PG&E @ Standard Rates Total Cost: $300/Month Internet -> ATT DSL @ Elite Pro Speeds Total Cost: $35/Month Internet -> ATT DSL @ Elite Pro Speeds Total Cost: $35/Month Company Website -> Hosted by GoDaddy.com Total Cost: $30/Month Fuel Cost -> Averaging 10k Miles/Month Total Cost: $1500/Month Total Initial Cost: $383,380/Year (does not include salaries)
- 17. Meeting Our Costs Bank Loans: $100k Personal Savings: $50k Outside Investments: $25k Research Grants: $500k-$1Million Total Estimated Finances: $675k