The University of the West Indies

Mona School of Business and Management

Master in Business Management
Cohort 6

Idea Generation
SBCO6190: New Ventures and Entrepreneurship
ID #:620053114

Lecturer: Dr. Sandra Palmer

Date of Submission: June 2, 2016

Idea One Grocery Delivery Service

Vision
We will strive to provide the most affordable and convenient service to our
customers in Jamaica who will also receive the highest quality customer service.

Value Proposition
Our company will offer the service of delivering groceries to people who are
unable to conveniently grocery shop themselves. We take the hassle out of
shopping in store, while still bringing the same great quality of your favorite
products right to your front door.

The Significant Problem/Need

Jamaica has an enormous number of consumers and in recent years has
seen an increase in the number of chain stores such as MegaMart,
Loshusan, ShoppersFair etc. However, despite the increase in both
Jamaicans propensity to spend and the number of stores to buy from,
there is yet to be a widely popular and effective home delivery service for
grocery products. This problem is further compounded by the fact that
heavy traffic in peak hours sometimes makes it extremely inconvenient
for customers to go to their preferred store to buy what they want, when
they need it. They may therefore be forced to resort to alternatives such
as corner shops and open markets where purchased goods have less
quality.
Is it enough to pay a premium?

The seeming lack of a popular and efficient delivery service may persuade one to believe that
the service is not much sought for but that is not the case. The results of a market survey
show that not only do people who fall within our target market want this service, they are also
willing to pay for it.

The Existence of Opportunity

As e-commerce becomes more popular in Jamaica, winning over tech-savvy consumers
depends on meeting logistical challenges of online food sales coupled with an understanding
of customer needs and desires. As a pure-play online retailer, we will have an edge with our
business flexibility and speed to market and we also plan to have a physical presence which
remains crucial for connecting with customers. We plan to to develop online-specific
strategies and tactics to capture growth and share, ensuring leverage of digital assets while
integrating with retailer web and mobile go-to-market platforms.

Concept & Entry Strategy

The idea is to create a delivery service that emphasizes speed, convenience and reliability
following five steps
Step 1: Consumer downloads our mobile app for free
Step 2: Consumer makes order via the mobile app
Step 3: Our agent receives the order and calls the customer for confirmation
Step 4: A delivery man is sent to the consumers address
Step 5: The product is delivered and the paid for on receipt
We plan to partner with the larger supermarkets first and eventually expand our services. The
target market will be: Educated, middle to upper class Jamaicans especially those within the

ages of 20 55 who use smart phones, these customers are considerably tech savvy and
comfortable enough to take advantage of our delivery service and have the willingness to pay.

Quick Screen Idea One

Likert Scale:
1
2
3
4
5

I.

Strongly disagree
Disagree
Neutral
Agree
Strongly Agree

Market and Margin Related Issues

Criterion

Higher Potential

Lower Potential

Need/want/proble
m

Identified

Unfocused

Rate
(1-5)
5

Customers

Reachable and receptive

Unreachable/loyal to others

Payback to users

Less than one year

More than 3 years

Value added or
created
Market size

IRR 40% +

IRR less than 20%

$50-100 million

Less than $10million or + $1 billion

Market growth rate

More than 20%

Less than 20%, contracting

Gross margin

More than 40% and durable

Less than 20% and fragile

Comment
Grocery is one of the largest segments in
retail and the delivery service is expected to
play an increasingly important role in
grocery retail.
Consumers are readily available and
willing to pay for convenience.
Consumers receive immediate gratification
as they will save time and effort.
With the implementation of this service,
value will be created to consumers.
Jamaica has a relatively small population of
approximately 2.7 million people. Not
everyone will be willing to pay for this
service, even if the price charged is not
exorbitant.
The market has great potential and has been
relatively unpenetrated so there is potential
for growth especially when compared to the
USA which has a booming market valued at
billions of dollars.
This business will not have every large
start-up costs and has the potential to be
extremely profitable.

Overall Potential
1. Market Higher_____________________ Avg__________________________ Lower
______________________________
2. Margins Higher_____________________ Avg__________________________ Lower
______________________________

II. Competitive Advantages

Higher Potential
Fixed and Variable Costs

Lowest

Lower
Potential
Highest

Rate

Comment

Variable cost for the business are fuel and delivery

men while fixed costs are calling plans.

Degree of Control

Prices and Cost

Channels of Supply and

Distribution
Barriers to Competitors Entry

Proprietary Advantage

Lead time advantage (product,

technology, people, resources,
location)
Service Chain

Stronger

Weaker
4
3

In this market, I will have high price control since

there is limited competition.

Can Create
Defensible
Slow
Competition

Weak/none
None
None

2
3
4

There are no barriers to entry for this industry.

Strong Edge

No Edge

Contractual Advantage

Exclusive

None

Contacts and Networks

Key Access

Limited

Networks will be made with the large grocery

retailers in Jamaica.

Other competitors wont have agreements with the

retailers, therefore we will have an advantage

Overall Potential
1. Costs Higher _________________________ Avg__________________________ Lower _______________________
2. Channel Higher _________________________ Avg__________________________ Lower _____________________
3. Barriers to entry Higher _____________________ Avg_________________________ Lower _____________________
4. Timing Higher _________________________ Avg__________________________ Lower
________________________
III. Value Creation and Realization Issues
Higher Potential
Profit after tax
10-15% more and durable
Time to breakeven
Less than 2 years

Lower Potential
Less than 5%; fragile
More than 3 years

Rate
4
4

Time to positive cash flow

Less than 2 years

More than 3 years

ROI potential

40-70% +, durable

Less than 20%, fragile

Value

High strategic value

Low strategic value

Capitalization requirements

Low-moderate; fundable

Very high; difficult to fund

Exit mechanism

IPO, acquisition

Undefined, illiquid investment

Comment
Since start up costs are relatively low,
we should breakeven within the first
year.

The market has great potential and we

expect to receive high returns
especially as we expand to other areas.

Start up costs only include the mobile

app , website and hiring deliverymen

Overall value creation potential

1. Timing Higher _________________________ Avg__________________________ Lower _______________________
2. Profit/free cash flow Higher ______________________ Avg____________________ Lower
_______________________
3. Exit/liquidity Higher _________________________ Avg________________________ Lower
_______________________
IV. Overall Potential
Go
1. Margins and markets

2. Competitive advantages

3. Value creation and realization

4. Fit: O + R + T

No Go

Go, If

5. Risk-reward balance

6. Timing

7. Other compelling issues: must know or

likely to fail
a.
b,
c.
d.
e.

Idea Two- Assisted Living Facility

Vision
The company desires to create an assisted living facility that becomes the longterm care
operator of choice for elderly residents in Jamaica.
Value Proposition
An aging population coupled with evolving consumer preference for more home-like
assisted living options is driving demand for new concepts in retirement living representing
an excellent business opportunity long into the future. We will provide exceptional care at an
affordable price, implementing industry best practices to enhance the quality of life for
residents.
The Significant Problem/Need
The need becomes apparent when the prospective residents health begins deteriorating to the
point where it is apparent they will no longer be able to care for themselves. Oftentimes, this
is accompanied by loneliness as well given family are unable to spend sufficient time caring
for them or keeping them company.
Is it enough to pay a premium?
The community will offer unbundled services to elderly residents. This will be a key point of
differentiation from other nursing homes in Jamaica. With this concept, residents will no
longer need to leave the premises each time they wish to enjoy a gourmet coffee, a glass of

wine at the bar, a new seasonal shirt or the latest movie releases in a theatre setting. The idea
is to create a unique, almost village-like, experience for the residents where they can enjoy
some added leisure services without having to leave the premises.

The Existence of Opportunity

The opportunities that are available to assisted living facilities are unlimited considering the
fact that we have growing aging population in Jamaica and as the population ages, more
elderly people will require the services of assisted living facilities.

Concept & Entry Strategy

Instead of large institutional-feeling designs that are both cold and sterile, the facilities will
emphasize a homelike feel that marries the comforts of home with some of the oversight and
personal care consistent with a nursing home. We intend to develop a niche segment to the
usual nursing home.

Idea Three- University Coffee Shop

Vision
To create a welcoming environment where students can meet and build relationships on
University campuses nationwide and become a leader in the foodservice industry by
committing to a culture of quality, excellence, integrity and passion for all things brewed.
Value Proposition
Tocreateauniqueenvironmentwherestudentscansocializewitheachotherinacomfortable
andrelaxingenvironmentwhileenjoyingthebestbrewedcoffeeorespressoandpastriesin
town.Wewillbeinthebusinessofhelpingourcustomerstorelievetheirdailystressesby
providingpieceofmindthroughgreatambience,convenientlocation,friendlycustomer
service,andproductsofconsistentlyhighquality.
The Significant Problem/Need
Students dont necessarily have a relaxing space, away from home, classes and distractions
where they can enjoy brewed coffee, soups, sandwiches and high speed internet all in one
space.
Is it enough to pay a premium?
Yes, the market hasnt been penetrated and it is a very profitable one. The coffee shop
industry is seemingly attractive because of low costs of entry and exit.

The Existence of Opportunity

Anicheexiststhathasyettobefilledforaqualitydrivencoffeehousewithawarm,inviting
atmosphere.Despiteeconomicdownturnsinrecentyearsthespecialtycoffeebusinesshas
beenabrightspot.Whileliterallyhundredsofbusinessesinmanycategoriesarefacingpoor
sales,negativebalancesheetsandevenbankruptcy,coffeechainscontinuetoshowstrong
growth.
Concept & Entry Strategy
The concept of the coffee shop will be:
The creation of an exclusive, stylish, innovative environment that will distinguish us
from other coffee shops.

The creation of a comfortable and casual environment that will bring people with
different interests and backgrounds together for socialization.

High-quality coffee and bakeries at a reasonable price.

Free access to online services.

We plan to open cafes on university campuses across Jamaica by forming business

relationships. A successful coffee shop must have an attractive location and distinctive
products that entice consumers.