The Online delivery sector is one of the few segments that was continuously booming during the pandemic. In the UK alone, the delivery business has grown by 11.5% while other businesses struggle to keep their doors open. This has created a huge demand to create an on-demand delivery app for Fast Moving Consumer Goods due to ever-increasing demand.
Here is the complete SWOT Analysis of the Online FMCG delivery industry
- Low Entry Barriers
- Early Mover advantage
- Customer loyalty
- Brings ease to daily needs
- Quick access to your services/products
- Owning the Supply Side
- Rising need to match algorithm of demand and supply
- Technological Assistance
- Tracking the delivery agents
- Huge Target Segment
- Grow your customer base
- Forward Collaboration
- Low investments
- High risk of competition
- Unexpected lag in regulation/ execution
- Incompetent delivery app
- Serving customers on time
Blue Print for The Business Plan
STUDY YOUR AUDIENCE
Before stepping ahead, study your audience’s pattern and preferences. Understand their needs and try catering to the latest technology. Study and add products after conducting a survey. Find the right platform to serve your app expectations. By conducting extensive market research, it would be easier for you to know how to make an on-demand delivery app for your business that can cater to your target audience’s requirements efficiently.
Identify your Target Segment
Start by asking the question “Who am I creating value for?”. This would define your customer segments. Let’s turn this question towards FMCG Sector and understand if the initial product is a perfect fit for the market or not.
Point of Differentiation (POD)
Understand whether you are fulfilling the needs of Target Segment which were previously unfulfilled or you are catering to those needs in a new advanced way, if not either, your business is lacking a POD.
Identify the type of BUSINESS MODEL
Whether you want to be an aggregator or you want to own the supply side of the business, the choice depends on you. Both businesses have their own set of merits. While owning the supply-side gives more freedom for the business on the other hand being an aggregator reduces the financial leaks in the system.
Identify the revenue sources with a pricing structure. There are 3 mains types of pricing Strategies
- Premium – High Premium is charged, this pricing strategy is used when the competitive advantage is attained in an industry.
- Economy Pricing – Also known as cost-plus pricing, the service provider just puts a markup of x% on the manufacturing cost. Plain and Simple.
- Penetrative Pricing – To gain market share, pricing is kept artificially low.
This is the most critical step of any business today, your technology partner should, at the very least, understand the industry you are working in. Discuss the challenges that you want the technology partner to look upon. Starting a delivery business in FMCG business is all about speed and accuracy, along with the means to justify the small financial leaks in the system.
How can technology partners help you combat the weakness of your delivery app?
Think about giving your business a delivery software to help you have a hold onto your business activities from tracking to schedule, from assigning to managing routes, and what not! Such software not only assists you with management but also your customers to track their order progress in real-time. From placing the order to getting it delivered, from ordering service to getting it fulfilled, one can track down all here!. Let’s read more to know how this software can be at your service:
- Quick Task Automation: Let all your worries be on the software because it will save you from the hassle of matching the supply and demand algorithm. Auto assignment of tasks will help to assign to the nearest delivery agent.
- Customer Ordering App: Enable your customers to order digitially with a powerful platform that facilitates direct to brand interaction
- Get the real-time tracking: Now delight your customers even more, because the software can also help them to track their order status from the delivery app itself.
If you’re interested in the business idea, click here to discuss it.