Market Analysis:

Customer Profile:

As we have stated that we are providing groceries to people at their door step. We just one step away to
our customers as they can give us online orders through our business website. Our business GreenMart
targets each and every person and currently we are providing the groceries in the Lahore city.

We are providing both products and delivery service to our customers which is easy for them as we have
mentioned the prices of each and every grocery product. Especially the women working in the houses
could be more benefited with this as they don’t have to go to the market and purchase the grocery
items after bargaining with the shopkeeper. As stated that we are working currently in the Lahore city
and making plan to open outlet in Lahore in the coming future. We will open the outlet in Gulberg 3 in
Lahore which benefits the people of the respective area but our online service benefits the whole city.

Moreover, we will save the data of the customers and know about their preferences. As we our business
model is B2C so every house and every small food chain will be our customer. We will also conduct
timely surveys to improve our services and address the complaints filed by the customers.

Market Segment:

As mentioned that we are currently providing our products in the Lahore city. Furthermore, we will
trace the behaviors of the customers with CRM (Customer Relationship Management). With the help of
CRM we will identify the loyal and timely customers. This is the best way to identify the purchasing
trend of our customers.

Market Size/Trends:

The E-commerce grocery stores in Pakistan is 6% of the total E-commerce market in Pakistan. In a few
years, like from 2017 Pakistan online market reaches $700 million and surpass $1 billion in the year
2018, which pulls the online grocery to $42 million. The market is expected to increase in the next 5
years. According to latest survey, the most sold item of grocery store is milk and afterward the staple
foods like bread, eggs, butter etc. These staple items are mostly used in every house.

Competitors:

There are many of the online grocery competitors that are working throughout the country but we are
concerned with the Lahore city as we are providing the products in the Lahore city. There are many
startups working in Lahore but the main competitors are:

Selly.pk which has outlet in Gulberg 3, TAZAonline.com which is working in liberty market, Rashan Pani
online grocery store etc.

Target Market and Demographics:

As above mentioned, that online grocery store is 6% of the E-commerce business in Pakistan. We are
targeting the rest of the customers of the Lahore city. In the future we are working to open outlet in the
Gulberg 3 where the most target market will be the people of the near localities like people near gulberg
and areas near the outlet. As above mentioned we will determine our customers with the help of CRM
(Customer relation management) and assess their behavior and buying patterns.
Industry Analysis:
For industry analysis, we are making the following models:

1. SWOT Analysis
2. Porter Five Forces Model

SWOT Analysis:
In SWOT Analysis, we discuss the Strengths, Weaknesses, Opportunities and Threats.

Strengths:

 The more benefit of the online grocery service is that it provides the data of each and every
customer whether a potential or a timely customer which helps to determine the formulation of
business.
 Prices as compared to outlets are feasible.
 The other main advantage is that almost all the products are available and customer can order
through our official business website.

Weaknesses:

 There are many online grocery stores are working in Lahore, in order to compete with them we
need more innovation and changes in order to compete with the market.
 Another point is that many of the people do not prefer to buy products through online medium,
they prefer to buy the products from the stores.

Opportunities:

 We are living in the ear of technology, in which most of the business start making their
businesses online. So, this is a need of a society.
 Many people are more health conscious and our business is providing hygienic products.
 Online platforms are earning good profit margins.

Threats:

 The main threat is that there are no barriers to entry in this online business, everyone can come
up with this startup which will increase competition.
 There are also threats for changes in technology in the coming future.
 The changes in policies regarding taxation may result in loss in profits.
Porter Five Forces Model:
In Porter Five Forces model, we make analysis on the following points:

 Threat of new entrants

 Buyer Power
 Supplier Power
 Threat of Substitution
 Competitive Rivalry

Threat of New Entrants:

In the online grocery store, there are no barriers to entry. So, anyone can enter into the business
without any hurdle. We need more innovations and more changes to make our business more
competitive.

Buyer Power:

As we have discussed that there are many people starting the online grocery store. So there is no room
for the entity to set the prices of their own. There is strong competition among the entities. The
switching cost of the buyers is very low, so buyers can switch to any platform.

Supplier Power:

There are a lot of suppliers as wholesalers in the grocery market. They cannot charge their prices of their
own. The suppliers cannot force the entities for the prices. So, they have less power towards entities to
convince for their own prices.

Threat of Substitution:

At present, most of the business are expanding and earning high margins on online business. Therefore,
there is less threat from retail stores as many people start to purchase products online. May be in the
coming future there will be more strong substitutes.

Competitive Rivalry:

At present, in Lahore there are a lot of competitors that are providing online grocery services. Like
Selly.pk, TAZAonline and Rashan pani etc. They attract customers with high cost cuts.